W 1013 issue web

According to a recent California ap-pellate court decision, an employercan be liable for an employee whodrank too much at a company party,made it home safely, and then killed aman in a drunk driving accident afterhe left his house again to drive an-other employee home.

“It is irrelevant that foreseeableeffects of the employee’s negligentconduct (here, the car accident) oc-curred at a time the employee was nolonger acting within the scope of hisor her employment,” the court ruled.

Michael Landri was a bartenderat the Marriott Del Mar Hotel. He at-tended the hotel’s annual holidayparty in December 2009, beginninghis celebration with a beer and a shotof Jack Daniels at home. He also

filled a five-ounce flask with JackDaniels and took it with him to theparty, held at the hotel.

At the party, one of the managersacted as a bartender. She filled Lan-dri’s flask on at least one occasion.Another employee drove a group toLandri’s house. Roughly 20 minuteslater (and not having consumed anymore alcohol) Landri left his house todrive another coworker home. Enroute, while driving over 100 mph, herear-ended another car, killing thedriver. Landri had a 0.16 blood alco-hol level. He pleaded guilty to grossvehicular manslaughter and was sen-tenced to six years in prison.

The deceased’s parents broughtsuit against Landri and Marriott. A

by John Yoswick

Whether or not they participate inState Farm’s Select Service program,shops and parts vendors still have lotsof questions and concerns about Part-sTrader as State Farm continues itsroll-out of the program. Here is someadditional information addressingsome of those questions that repre-sentatives of State Farm or Part-sTrader have provided.

Roll-out schedule. PartsTraderrolled out in September in major mar-kets in California, Nevada and Utah,and in October in Michigan and Ohio.It will reach major markets in Wis-consin, Illinois, Indiana, Kentuckyand Tennessee later this year.

Vendor choice. Shops are notrequired to get price quotes fromanyone beyond their designated pre-ferred dealer. In fact, Partstrader’s

Dale Sailer said, the system defaultsto sending a job’s parts list only tothe shop’s preferred dealer, thoughthe shop can expand the search fromthis default. State Farm does not getdata about whether a Select Serviceshop’s parts list for a job went onlyto the shop’s preferred dealer forquotes.

A shop can “direct order” a partthrough the system without waitingfor any parts quotes; State Farm doesknow, however, if a Select Serviceshop does this.

And if a dealer always gives ashop the same discount, the dealer canset the system up to automatically re-spond with that discount to all re-quests for quotes from that shop.

“Dealers don’t have to hire awhole bunch of people to fill outquotes,” Sailer said.

State Farm and PartsTrader Offer More Infoon Roll-Out, Use of the System

See Employer Liable in DUI, Page 22

Employer Found Liable for Employee’s DUIFatal Crash After Employee Got Home

Special SNAPSHOT of the Collision Industry, survey byCollision Repair Educational Foundation and I-CAR p. 6

See More on PartsTrader, Page 16

The Mississippi Collision Repair As-sociation and Parts Suppliers are seek-ing industry support in suit againstState Farm and PartsTrader. Over 30plaintiffs, mostly Mississippi bodyshop owners, have filed an injunctionagainst State Farm and PartsTrader inan attempt to prohibit the insurer fromforcing any Select Service shop inMississippi to use PartsTrader.

The suit was filed Aug. 28 byJackson, MS-based attorney for thenearly three dozen plaintiffs, JohnArthur Eaves, Jr., in the HindsCounty, MS, Chancery Court againstState Farm Mutual Automobile Insur-ance Company and PartsTrader LLC.

Plaintiff include the MississippiCollision Repair Association (MSCRA)OEM parts dealers and other parts sup-pliers and dozens of collision repairprincipals, including prominent local re-pairers John Mosley (Clinton BodyShop) and Doug White (Capitol BodyShop).

The suit seeks the court’s decla-tory judgment and injuction to blockState Farm from requiring the Part-sTrader ordering process in Missis-sippi. The requested injunction is to

1) Prohibit the Defendants fromforcing implementation of Part-sTrader in the State Farm Select Serv-

Mississippi Collision Repair Association andParts Suppliers File Suit Against PartsTrader

See Suit Against PartsTrader, Page 28

Under federal law, employers can meetminimum wage requirements for piece-rate workers by paying them enough sothat their total pay meets the minimumwage, on average, for the hours theywork in a work week, regardless ofwhether each hour was productive. Butnow the California Court of Appealsays that’s not true in California.

In Gonzalez v. Downtown LAMotors, the Court of Appeal held thatemployers who pay on a piece-ratebasis for certain compensable tasksmust also pay a separate minimumwage for non-productive time spentbetween those tasks.

In April of 2013, the CaliforniaCourt of Appeal decided automobileservice technicians should be paidwhile waiting between jobs. The courtheld that the technicians, who werepaid on a “piece-rate” basis, must alsobe paid at least the minimum hourlywage for the time that they are re-quired to wait between their piece-ratepaid repair jobs. The California Courtof Appeal case held that piece-rate-paid employees are entitled to sepa-rate hourly pay for “waiting” time.

On July 19, the CaliforniaSupreme Court refused to review the

California Supreme Court Action in Piece-RatePay Case Puts Focus on Alternative Pay

See Piece-Rate Pay in CA, Page 8

CaliforniaNevadaArizona www.autobodynews.comYEARS3232

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Contents

Publisher & Editor: Jeremy HayhurstGeneral Manager: Barbara DaviesContributing Writers: Tom Franklin, David Brown,John Yoswick, Rich Evans, Janet Chaney,Toby Chess, Ed Attanasio, Chasidy SiskAdvertising Sales: Joe Momber, Sean Hartman,Bill Doyle (800) 699-8251Sales Assistant: Louise TedescoArt Director: Rodolfo Garcia

Serving California, Nevada and Arizona, Autobody Newsis a monthly publication for the autobody industry. Per-mission to reproduce in any form the material publishedin Autobody News must be obtained in writing from thepublisher. ©2013 Adamantine Media LLC.

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

Altracolor Systems . . . . . . . . . . . . . . . . .10Audi Wholesale Parts Dealers . . . . . . . .44Automotive ID . . . . . . . . . . . . . . . . . . . .40Automotive Recyclers Association . . . .33AutoNation Chrysler-Jeep-Dodge-Ram of North Phoenix . . . . . . . . . . . .20

AutoNation Chrysler-Jeep-Dodge-Ram-Fiat . . . . . . . . . . . . . . . . . . . . . . .45

Axalta Coating Systems . . . . . . . . . . . . . .5BASF . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Bill Luke Chrysler-Jeep-Dodge . . . . . . .32Bill Luke Fiat . . . . . . . . . . . . . . . . . . . . . .32Bill Luke Suzuki . . . . . . . . . . . . . . . . . . .33BMW Wholesale Parts Dealers . . . . . . .63Bob Smith BMW . . . . . . . . . . . . . . . . . .12Bob Smith MINI . . . . . . . . . . . . . . . . . . .12Car Bench America . . . . . . . . . . . . . . . .15Car-Part Pro . . . . . . . . . . . . . . . . . . . . . .18Celette, Inc. . . . . . . . . . . . . . . . . . . . . . . .9Certified Automotive PartsAssociation (CAPA) . . . . . . . . . . . . . .31

Chief Automotive . . . . . . . . . . . . . . . . . .27Classifieds . . . . . . . . . . . . . . . . . . . . . . .70DCH Chrysler-Jeep-Dodge-Ram . . . . . .22DCH Kia of Temecula . . . . . . . . . . . . . . .22DJS Fabrications, Inc. . . . . . . . . . . . . . .19Downtown Motors of LA(Audi, VW, Porsche) . . . . . . . . . . . . . .55

Drew Hyundai . . . . . . . . . . . . . . . . . . . .60East Bay BMW-MINI . . . . . . . . . . . . . . . .52Elk Grove Toyota . . . . . . . . . . . . . . . . . .44Enterprise Rent-A-Car . . . . . . . . . . . . . .66Equalizer Industries . . . . . . . . . . . . . . . .10Extractor . . . . . . . . . . . . . . . . . . . . . . . . .16Ford Wholesale Parts DealersAZ, CA, & NV . . . . . . . . . . . . . . . . . . .59

Forklift Wrecker . . . . . . . . . . . . . . . . . . .66Galpin Motors . . . . . . . . . . . . . . . . .26, 43GM Wholesale Parts Dealers . . . . . . . . .64Herkules Equipment Corporation . . . . .48Honda-Acura Wholesale PartsDealers . . . . . . . . . . . . . . . . . . . . .36-37

Hyundai Wholesale Parts Dealers . . . . .40Infinity 3D Laser Measuring . . . . . . . . . .23

Innovative Tools & Technology, Inc . . . .61KBS Coatings . . . . . . . . . . . . . . . . . . . . .21Kearny Mesa Subaru-Hyundai . . . . . . .28Kia Motors Wholesale Parts Dealers . . . .67LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .71Los Gatos Luxury Cars . . . . . . . . . . . . .57Maita Subaru . . . . . . . . . . . . . . . . . . . . .34Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .25Mazda Wholesale Parts Dealers . . . . . .68Mercedes-Benz . . . . . . . . . . . . . . . . . . .29MINI Wholesale Parts Dealers . . . . . . . .62Mitchell International . . . . . . . . . . . . . . . .8Mitsubishi Wholesale Parts Dealers . . . .68Momentum Auto Group . . . . . . . . . . . . .47MOPAR Wholesale Parts Dealers . . . . .51Moss Brothers Chrysler-Jeep-Dodge . . . .11Motor Guard Corporation . . . . . . . . . . . .4Nicolosi Imports . . . . . . . . . . . . . . . . . . .21Nissan/Infiniti Wholesale PartsDealers . . . . . . . . . . . . . . . . . . . . . . . .54

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2PreFab Ads . . . . . . . . . . . . . . . . . . . . . . .4Preval Spray Gun . . . . . . . . . . . . . . . . . .72Renick Subaru . . . . . . . . . . . . . . . . . . . .46Replica Plastics . . . . . . . . . . . . . . . . . . .46Riverside Metro VW-Honda-Hyundai-Nissan-Mazda . . . . . . . . . . . . . . . . . .56

SATA Spray Equipment . . . . . . . . . . . . .14Sherwin-Williams AutomotiveFinishes . . . . . . . . . . . . . . . . . . . .34, 35

Shingle Springs Nissan-Subaru . . . . . .53Sierra Chevrolet-Honda-Mazda-Subaru .49Sonnen BMW . . . . . . . . . . . . . . . . . . . . .30SprayZone.net . . . . . . . . . . . . . . . . . . . .17Starlite Coatings . . . . . . . . . . . . . . . . . .16Subaru Wholesale Parts Dealers . . . . . .69Timmons VW-Subaru . . . . . . . . . . . . . . .65Toyota Wholesale Parts Dealers . . . . . .58Tsunami Compressed Air Solutions . . . .30Valspar Automotive . . . . . . . . . . . . . . . .13Volkswagen Wholesale Parts Dealers . . . .50Volvo Wholesale Parts Dealers . . . . . . .58Walcom USA . . . . . . . . . . . . . . . . . . . . .42Weatherford BMW . . . . . . . . . . . . . . . . .41

Inde

xofAdvertisers

Wes

tern

REGIONAL

CA Air Resources Board Passes Windshield

Requirement to Reduce A/C Usage . . . . . . . . 4

Caliber Collision’s New San Diego Location . . 10

California Supreme Court Action in Piece-Rate

Pay Case Puts Focus on Alternative Pay . . . . 1

CARSTAR Opens First Anaheim Location . . . . 10

Employer Found Liable for Employee’s DUI

Fatal Crash After Employee Got Home . . . . . 1

Everyday Paint Operations Result in Explosion

and Fatality that Rocks the Collision Industry . 14

GA and CA Most Expensive States to

Own a Car . . . . . . . . . . . . . . . . . . . . . . . . . 66

New Body Shop Opens in Yerington, NV . . . . . 10

What Does Tesla’s Record-setting Safety

Rating Say to the Collision Industry?. . . . . . 34

COLUMNS

Attanasio - Is Radio Advertising a Sound

Decision For Body Shops? . . . . . . . . . . . . . 20

Franklin - Development-Appropriate Marketing . 26

Insider - Eliminating the “Have Not” Shops

Will Help the “Haves” . . . . . . . . . . . . . . . . . 42

The 1963 Federal Consent Decree . . . . . . . . . 30

Yoswick - October Retrospective on

the Collision Industry . . . . . . . . . . . . . . . . . 52

NATIONAL

AASP/NJ Announces Support of MCRA Suit . . 18

ABRA Helps Raise $30,000 for Veterans’

Service Dogs . . . . . . . . . . . . . . . . . . . . . . . 68

AMI and ASA Give the 2013 Emil Stanley

Merit Award . . . . . . . . . . . . . . . . . . . . . . . . 56

ASA Launches New Website, Improves

Repairer Tools . . . . . . . . . . . . . . . . . . . . . . 65

ASA President Risley Writes to State Farm’s

Ed Rusk Jr.. . . . . . . . . . . . . . . . . . . . . . . . . 62

ASRW’s New Format Will Be ‘Vastly

Different Experience’. . . . . . . . . . . . . . . . . . 68

Attorney Spearheads Suit Against Carfax . . . . 56

Automotive Instructors Get Special

AAPEX 2013 Invite . . . . . . . . . . . . . . . . . . 65

Best Way to Research New Product

at SEMA Show . . . . . . . . . . . . . . . . . . . . . . 65

BLS Says Collision Industry Production

Rose in June . . . . . . . . . . . . . . . . . . . . . . . 66

BMW Recalls Diesel X5s. . . . . . . . . . . . . . . . . 47

Caliber Collision Opens Two New Locations

in CO and CA . . . . . . . . . . . . . . . . . . . . . . . 65

California Teen Dies in Lock-Jammed Car . . . . . 4

Car Bench America Says Shops Not Ready

to Repair Newest Cars . . . . . . . . . . . . . . . . 32

CCC Launches TRUE® Parts Network,

Integrated with CCC ONE® . . . . . . . . . . . . . 12

Chrysler for 2013 Fiat 500e’s . . . . . . . . . . . . . 47

Chrysler’s Great August . . . . . . . . . . . . . . . . 69

Daimler to Sell Self-Driving Production

Car by 2020. . . . . . . . . . . . . . . . . . . . . . . . 66

Ford Recalls 2012-13 Focus BEVs for

Headlight Wiring . . . . . . . . . . . . . . . . . . . . . 48

Franchitti Reunites with The Henry Ford

and the Jim Clark Lotus-Ford 38/1

Indianapolis Winner . . . . . . . . . . . . . . . . . . 64

GM is Recalling Some Chevy Suburbans

and Tahoes . . . . . . . . . . . . . . . . . . . . . . . . . 9

Group 1 Auto Hits New Highs . . . . . . . . . . . . . 69

Houston’s Randy McGinty First to Complete

Every Collision Course at Chief University . . 46

Indiana Autobody Association Expresses

Support for SCRS Position Statement . . . . . 43

Long Island’s Irv Gordon is about to Pass the

3,000,000 Mile Mark in his 1966 Volvo . . . 58

MD Shop Owners Prevail Against Short

Pays—No DRP, No Problem . . . . . . . . . . . . 60

Mississippi Collision Repair Association and

Parts Suppliers File Suit Against PartsTrader . 1

Mitchell Announces its New Reputation

Manager Package. . . . . . . . . . . . . . . . . . . . 68

Mitchell International Sold to Asset Management

firm KKR For Estimated $1.1B . . . . . . . . . . 57

NABC Partners with ATT on Anti-Texting

Campaign . . . . . . . . . . . . . . . . . . . . . . . . . 66

New SRS Checklist Available . . . . . . . . . . . . . 21

Nissan Will Have Self-Driver Cars on

Road by 2020 . . . . . . . . . . . . . . . . . . . . . . 48

NY Assembly and Senate Hear Bills to Make

Insurance Co. Parts Mandates Illegal . . . . . 50

Ohio Dealership Group is Faced with

Class Action Claim . . . . . . . . . . . . . . . . . . . 40

Recall: Chrysler's 2012 RAMs . . . . . . . . . . . . 69

Recall: Ford Recalls 370K Sedans . . . . . . . . . 49

Recall: GM for 2013-14 Silverados . . . . . . . . . 49

Recall: GM Recalls Some Cruzes . . . . . . . . . . 69

Recall: Hyundai 2013 Santa Fe’s . . . . . . . . . . 49

Recall: Jaguar 2013 Land Rovers . . . . . . . . . . 49

Recall: KIA for Sorrentos . . . . . . . . . . . . . . . . 49

Recall: Nissan 2014 Versas . . . . . . . . . . . . . . 49

Recall: Subaru for Legacys/Outbacks . . . . . . . 49

Recall: Toyota Tacoma Access Cabs. . . . . . . . 49

Record Fundraiser for Education Foundation . . 27

Sherwin-Williams and Online Blueprint

Provider Team Up . . . . . . . . . . . . . . . . . . . . 68

Snapshot of the Collision Repair Industry . . . . . 6

State Farm and PartsTrader Offer More Info

on Roll-Out, Use of the System. . . . . . . . . . . 1

State Farm Donates $70K to CREF, Lifetime

Over $1M. . . . . . . . . . . . . . . . . . . . . . . . . . 53

Team PRP Succeeds Because There’s

No “I” in Team . . . . . . . . . . . . . . . . . . . . . . 54

Tesla Motors Surges, Only Two ‘Galleries’ in

Texas Where Legacy of Franchises Holds . . 44

Three CARSTAR Stores Get Praise for

Outstanding CSI . . . . . . . . . . . . . . . . . . . . . 56

Toyota Highlander Hybrid & RX400h

Inverter Trouble . . . . . . . . . . . . . . . . . . . . . 48

Toyota Recalls About 780K Crossovers/Hybrids

Again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

www.autobodynews.com | OCTOBER 2013 AUTOBODY NEWS 3

Contact: Barbara Davies, General Manager * (800) 699-8251

Autobody News | P.O. Box 1516 | Carlsbad, CA 92018 | [email protected]

www.autobodynews.com

Hitting the target for 32 years

Target Success with Autobody News.

• Autobody News has a 32-year track record of providing more in-depth regional news than any other collision repair publication• Targeted 100% to collision repair• Featuring the collision industry’s top regional columnists, experts and reporters• Read by 35,000 collision professionals every month in five regional editions• Advertising packages that get results by reaching your target market

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The death of a California teen is underinvestigation after she was found deadinside a locked car, and police suspecta jammed lock may have led to theteen’s death.

The 14-year-girl was found deadinside a hot car where temperaturesreached 130 degrees after faulty locksapparently left her trapped inside.

Graciela Martinez was founddead in the backseat of her brother’sBMW outside Madera South HighSchool in Madera, CA, hours after hehad gone inside to class.

He drove his sister to school thatmorning and left her alone in the ve-hicle because he had a 6.40 am classwhile her first lesson began at 7.40am. She had no cellphone, food orwater with her.

When he and another sister fin-ished classes at the end of the day,they found Graciela white and unre-sponsive in the back seat.

For the family of Graciela Mar-tinez, there are questions that maynever be answered, and at the top ofthe list is how someone young andhealthy could be taken from them sosuddenly.

“They took her to the hospitalbut they couldn’t save her,” said thevictim’s sister, Patricia Martinez.

Police said it now appears theMadera South freshman was acciden-tally locked inside her car and was un-able to escape.

“People don’t think of that, Idon’t think of that even after this in-vestigation started, that was the fur-thest thing from my mind,” saidMadera detective Dan Foss.

But things quickly changedwhen Foss made a disturbing discov-ery about the car’s locking system. Hesaid investigators found the doors willsometimes lock on both the inside andoutside when the key is used, dis-abling the horn and making it almostimpossible to escape.

“Would she feasibly be able toget out of the car? It would be verydifficult, she would have to try veryhard,” Foss said.

Officers demonstrated how thecar can unknowingly turn into a deathtrap. Investigators said Graciela’sbrother was unaware of the risk whenhe locked her in only to find her deadhours later.

“It’s just sad, you never reallyknow when it is going to happen.”said classmate Brandon Hernandez.

“She was my only sister. I don’tknow if I can ever get through it,” Pa-tricia Martinez said.

California Teen Dies in Lock-Jammed Car

The California Air Resources Boardrecently passed another mandate forauto manufacturers selling vehicles inCalifornia. As of 2014, all vehiclessold in California will be required tohave windshields which reflect thesun. The windows would have ametallic coating, a window technol-ogy said to be in use for some 20years now.

The board passed the mandate inhopes of not only reducing green-house gas emissions but also improv-ing fuel efficiency. By using thesun-reflecting windows, vehicles willmaintain a cooler temperature andtherefore drivers will use less air con-ditioning. Apparently the windows areable to keep sedan interiors 14 degreesFahrenheit cooler, while keeping atruck or SUV about 12 degrees cooler.

Starting in 2012, one-quarter ofvehicles sold in the state of Califor-nia will require the sun-reflectingwindshields. These windshields mustblock fifty percent of the sun’s heatwhen a car is parked. By 2014, all ve-hicles will be required to have suchwindshields.

Starting in 2016, all vehicles willbe required to block sixty percent of

the sun’s heat. However, car manu-facturers will be allowed to compen-sate for the temperature control insome other way, as long as it meetsthe increased standard.

According to statistics involvedin the decision, the windshieldchange will prevent 700,000 metrictons of carbon dioxide from beingemitted in the year 2020. This is equalto removing 140,000 vehicles fromthe road all year. However, this is justa drop in the bucket when you con-sider the 22 million vehicles in Cali-fornia.

Some are concerned that themetallic coating on the windshieldswill interfere with the working of cellphones, GPS and toll road electronicpasses. However, the windshields aregoing to have a small area in whichthe metallic coating is not placed.This is expected to alleviate the prob-lem, although many are still skeptical.

CA Air Resources Board Passes WindshieldRequirement to Reduce A/C Usage

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See Snapshot of Industry, Page 24


appeal court ruling, making it bindingprecedent. (Gonzalez v. DowntownLA Motors, LP, B235292, April 2,2013). In its ruling, the Court of Ap-peal noted that California law requiresthat employees be paid “not less thanthe applicable minimum wage for allhours worked in the payroll period,whether the remuneration is measuredby time, piece, commission, or other-wise.”

In its decision, the appellate courtnoted that California law provides:“Every employer shall pay to each em-ployee, on the established payday forthe period involved, not less than theapplicable minimum wage for all hoursworked in the payroll period, whetherthe remuneration is measured by time,piece, commission, or otherwise.”

This requirement really means, thecourt ruled, that the minimum hourlywage must be paid for each and everyhour worked, no matter how the em-ployee is normally compensated. Thismeans that employers can no longershow that the required minimum wagehas been paid by averaging the total

compensation over the total number ofhours worked in the pay period as per-mitted by the Fair Labor Standards Act(FLSA) and all other states.

“Hours worked” is defined as“the time during which an employee issubject to the control of an employer,and includes all the time the employeeis suffered or permitted to work,whether or not required to do so.”

Downtown LA Motors (DTLA)had argued that its method of payingtechnicians complied with the plainlanguage of the wage order becauseunder the pay agreement technicianswere paid “not less than” the applica-ble minimum wage for “all hoursworked,” and that compliance wasachieved by paying the difference if atechnician’s piece compensation forall hours on the clock fell below theapplicable minimum wage.

The court noted: “Under DTLA’sflag hour system, technicians earn sig-nificantly more by working on carsthan waiting for vehicles to repair.They will still have the financial in-centive to accrue flag hours in orderto increase their earnings.” DTLAtechnicians accrue flag hours onlywhen working on a repair order.

But the technicians argued that

public policy does not permit piece-rate wages to be averaged across thewaiting time in satisfying the mini-mum wage because the term “allhours worked” really means “each andevery hour” worked only on piece-ratework, and that technicians shouldhave been paid separately, at the ap-plicable minimum wage, for “eachand every” hour of time on the non-piece rate work or time spent waitingfor repair work.

The appellate court held the gen-eral rule that “employers must pay forall hours worked and may not averagepaid, productive hours with non-paid,non-productive hours” applies to piece-rate employees. Therefore, the class oftechnicians was “entitled to separatehourly compensation for time spentwaiting for repair work or performingother non-repair tasks directed by theemployer during their work shifts.”

Federal District Court ConcursThis requirement of the Californiacourts for piece-rate compensated work-ers was also recently adopted by a fed-eral district court in a trucking case.Con-Way Freight v. Quezada, 3:09-cv-03670-JSW (June 27, 2013). In thatcase, the court held that drivers who

were paid a piece-rate based on a pre-setmileage rate and who were also paid onan hourly rate for work performed suchas loading and unloading had not beenpaid any wages for certain non-drivingtasks, such as vehicle inspections andsome waiting time at each stop.

This time spent on non-drivingtasks is time that the company hadcontended was properly included inthe piece-rate compensation system.As in the Downtown LA Motors case,the court ruled that California law re-quired that this non-driving time bepaid at a separate hourly rate, equal toat least the minimum wage.

Court Extension to Commission SalesLast year, a federal trial court reached asimilar result regarding a salespersoncommission plan in the Balasanyan v.Nordstrom case. Nordstrom commis-sion-paid salespersons were required toengage in stocking, pre-opening, andpost-closing activities. The court heldthat those hours were uncompensatedbecause “compensation must be directlytied to the activity being done, whetherit is selling on commission or preparingto sell on commission,” and that “activ-ities only indirectly related to sales orservices must also be compensated.”


Continued from Cover

Piece Rate Pay in CA

These cases may have a profoundimpact upon all commission saleswork in that the plaintiffs had con-tended, and the court appeared toagree, that “stocking” time includesall time other than face-to-face cus-tomer interaction work, which wouldmake all such time separately com-pensable on an hourly basis. In a foot-note to these cases, the district courtindicated that it felt it was constrainedby California law to reach this “pecu-liar result,” which “forces employersto craft hybrid compensation systemsfor commissioned employees wherethey are also paying employees perhour for any activity that is not di-rectly related to earning a commis-sion, even when that activity mightassist in generating future profits.”

As a consequence of these deci-sion, all California employers who payemployees on a piece rate or commis-sion basis, including flat-rate techni-cians and salespersons, should reviewtheir pay plans to mitigate the risksposed by the Gonzalez v. DowntownLA Motors and Balasanyan decisions.

California employers paying on apiece-rate or commission basis mustconsider revamping their pay systemsto separately pay the minimum wage

rate for hours during which employ-ees are subject to the employer’s con-trol and not earning a piece rate orcommission. Employers shouldclosely monitor the further judicial de-velopments in both the Gonzalez andNordstrom cases.

At a minimum, attorneys con-sulted on this issue recommend:● Consulting qualified labor and em-ployment counsel to determinewhether piece rate and commissionpay plans require modification, andwhether any other action is appropri-ate to mitigate risk based on the Gon-zalez and Balasanyan cases.● Modifying piece rate and commis-sion compensation to avoid so-called“uncompensated” hours, but paying atleast minimum wage directly for eachhour worked (including non-piece ratework and work indirectly related tosales);● Reviewing itemized pay statementsto ensure compliance with LaborCode section 226, which requires paystatements to show information, in-cluding total hours worked by em-ployees, the number of piece rate unitsearned and any applicable piece rate,and all applicable hourly rates in ef-fect during the pay period and the cor-

responding number of hours worked.

Additional Case Remains Up forSupreme Court ReviewOne additional possible chance for re-view of the issues related to the re-quirement that minimum wages bepaid for each and every hour workedby employees who are currently com-pensated on piece-rate and commissionsystems remains under considerationby the California Supreme Court. Thatcase is Bluford v. Safeway Stores, Inc.,C066074 (May 24, 2013). In Bluford,the Court of Appeal held that an em-ployer must separately compensatepiece-rate workers at the minimum orcontracted hourly wage for the two 10-minute rest breaks per day that must beauthorized and permitted by their em-ployers under California law. Prior tothis decision, such rest breaks had al-ways been permitted to be included aspart of piece-rate and commissionplans.

This article is for informationalpurposes only and should not be con-sidered as any form of legal advice.Always consult a qualified attorneybefore acting on any such news-basedinformation.


General Motors is recalling certainmodel year 2014 Chevrolet Subur-ban vehicles manufactured July 9,2013, through July 22, 2013; and2014 Chevrolet Tahoe vehiclesmanufactured July 16, 2013,through July 23, 2013; and modelyear 2014 GMC Yukon vehiclesmanufactured July 13, 2013,through July 18, 2013; and modelyear 2014 GMC Yukon XL vehiclesmanufactured on July 22, 2013. Therear brake caliper bolts may not befully tightened. Thus, these vehiclesfail to conform to the requirementsof Federal Motor Vehicle SafetyStandard (FMVSS) No. 135, “LightVehicle Brake Systems.”

Loose caliper bolts may causereduced braking performance andresult in lengthened stopping dis-tances, increasing the risk of acrash. GM will notify owners, anddealers will inspect the bolts onboth rear brake caliper brackets.Any bolts found loose will be re-placed and tightened. This servicewill be performed, at no charge.Owners may contact Chevrolet at1-800-222-1020 and GMC at 1-800-462-8782. GM’s recall numberis 13247.

GM is Recalling Some ChevySuburbans and Tahoes

Caliber Collision Centers continues toexpand in the Greater San Diego areawith its acquisition of San Diego Col-lision. It will now operate as Caliber’sSan Diego North Park.

“Today’s opening of our new SanDiego North Park center increases ourtotal locations in the San Diego regionto 14 as we continue to grow organi-cally and through strategic acquisi-tions across the Southwest,” saidSteve Grimshaw, CEO of Caliber.

“As our clients continue to lookfor improved customer retention, weare committed to adding centers thatprovide the operational consistency,customer focus and cost managementthey need to compete in today’s highlycompetitive insurance market.”

Caliber Collision’s newest 8,000-square-foot collision repair facility islocated at 2505 University Avenue.

Added Mark Sanders, chief op-erating officer for Caliber, “Our newSan Diego center brings Caliber Col-lision’s locations to 130 as we con-tinue to grow as the collision repairprovider of choice in every commu-nity we serve.”

CARSTAR Auto Body Repair Expertsis entering the Anaheim, CA, marketwith its first location – KraemerCARSTAR Collision. Owned by Joel,JoAnne and Jorge Cuevas, KraemerCARSTAR Collision is located at1361 N. Kraemer Blvd in Anaheim.

In 1979, Jorge “George” Cuevasstarted his dream of creating a successfulfamily run auto body shop in a world ofcorporate competitors. His shop has beenproviding one of a kind customer servicefor 34 years. By joining the CARSTARnetwork, Kraemer CARSTAR Collisionwill now offer an array of services andproducts for collision repair, includingthe latest in repair technology, rental cars,national warranties on repairs andturnkey service for customers.

“Southern California, with itsheavy traffic, has a high demand forquality collision repair, and theCARSTAR network is growing rapidlythroughout the region,” said DavidByers, CEO of CARSTAR Auto BodyRepair Experts. “We are thrilled to wel-come the Cuevas family and KraemerCARSTAR Collision as our first colli-sion repair center in the Anaheim area.”


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Filling what he saw as a need, DougFerrin and his partner decided toopen Valley Collision Center in July.

Ferrin owns Fernley Auto Bodywith his partner and moved into thesite of the former Mark’s Collision at705 W. Bridge Street, which closedearlier this year. Valley CollisionCenter does “all aspects of the autobody trade,” he said.

A Fernley resident, as his wifeworks in Reno, Ferrin said he likedthis opportunity as he is from a smalltown and likes the small-town at-mosphere.

He and his partner—who mainlyruns the Fernley shop while Ferrinruns the Yerington location–each have24 years experience in auto paintingand auto body business. Ferrin saidthey decided to open their own shopand then opened Fernley Auto Bodyin 2008. Then more recently he saidthey were looking to expand andfound the local location “and thought

it would be a good fit,” and they sawgrowth opportunities here.

He said they are picky aboutwhat they do in their business andquality is more important than quan-tity. His two local employees, Joseand Tony, have plenty of experiencelocally in the auto body business. Hesaid the two worked at their Fernleyshop first to be sure about their skills.

“We definitely pride ourselveson the work we do.”

He said the local shop will alsobe an Enterprise rental car outlet.

Ferrin said he is a people personand likes to spend money and supporthis community. “I’m a pretty com-munity-oriented kind of guy.”

Ferrin said he was raised on acotton and alfalfa farm in southernArizona, where his grandfatherfarmed for about 75 years. As for hisfree time, Ferrin, the father of two,said he is very family oriented and helikes to work on cars.

New Body Shop Opens in Yerington, NVCARSTAR Opens FirstAnaheim Location

Caliber Collision’s NewSan Diego Location

[email protected] us!write us!write us!

Give us your opinion on matters affecting the industry.

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CCC Information Services has an-nounced the launch of its CCCTRUE™ Parts Network, a parts-fo-cused initiative that is connecting theindustry’s parts suppliers with CCC’sexpansive customer base of repairersand insurance carriers.

The CCC TRUE Parts Networkintegrates with the CCC ONE® Plat-form, providing parts suppliers of allsizes with a suite of solutions to dis-play their parts, provide real timeprice quotes and electronically selltheir available parts inventories as es-timates are being written.

Insurance carriers using CCCONE can view parts and receive realtime quotes. Repairers using the CCCONE™ Repair Workflow solutionhave the same functionality, plus theability to electronically purchase parts.CCC customers write more than 10million repair orders each year andpurchase billions of dollars in parts an-nually. The CCC TRUE Parts Networkis the first in a suite of offerings devel-oped by CCC for auto parts suppliers.

“The dialogue around auto partshas commanded a lot of attention fromall corners of the industry,” said

David Boden, Vice President ofCCC’s Parts Services Group. “As welistened to what was being said, it be-came clear that convenience, controland choice were shared concerns. Be-cause CCC already connects repairersand insurance carriers, supporting mil-lions of claims-related transactions,the CCC TRUE Parts Network is anatural extension of our core business,and one that can create additionalvalue for our existing customers,while creating new opportunities forparts suppliers. Early results from theCCC TRUE Parts Network are verypositive and show that parts suppliersare benefitting from an integratedchannel to parts buyers and repairersare seeing parts performance im-provements.”

CCC TRUE Parts Network Early ResultsThe United Recyclers Group (URG)was an early participant of the CCCTRUE Parts Network. URG’s recy-cled parts data listing service, whichincludes data from its more than 500auto recycler members, has been inte-grated with the CCC ONE Platform,providing users with direct and imme-

diate access to comprehensive recy-cled parts inventory, availability andpricing. According to Don Porter, Ex-ecutive Director for URG, “SinceURG members began displaying theirrecycled parts inventory within CCCONE we’ve seen more of our mem-bers’ recycled parts being added to re-pair estimates. We’re excited with theearly traction we’ve had and look for-ward to future integration with CCC.”

LKQ/Keystone Aftermarket Partswas also an early participant of theCCC TRUE Parts Network. The com-pany has been working with CCC tointroduce quoting and electronic pro-curement of its salvage and aftermar-ket parts with repair facilities acrossthe country. According to Terry Fort-ner, Vice President, Industry Relationsand Market Development for LKQ,“Participation in the CCC TRUE PartsNetwork has put LKQ’s salvage partsand Keystone’s aftermarket parts di-rectly in front of repairers as they aremaking parts purchasing decisions.Because the parts quoting and pro-curement are integrated functionswithin the CCC ONE Repair Work-flow solution, we’re already seeing

more parts orders and fewer parts re-turns.”

From a repairer perspective, ob-taining quotes and purchasing partshas never been easier. MichaelCastillo, Manager of Auto Art Colli-sion Specialists in Escondido, CA, anearly user of the parts procurementfunctionality stated: “I logged intoCCC ONE and the parts quoting andelectronic procurement function justappeared—I didn’t have to do any-thing to start buying the parts I need,when I need them. My Keystone salesrep has been great and is still there if Ineed him and my guys are saving timesince they no longer have to fax orphone-in any orders or follow-up ondelivery status.”

Joining the CCC TRUE Parts NetworkParticipation in the CCC TRUE PartsNetwork is open to all parts suppliers.The current offerings of the CCCTRUE Parts Network include the abil-ity to display parts inventories, pro-vide real time quoting of parts pricingand the ability for suppliers to sellparts electronically. Parts suppliers in-

CCC Launches TRUE® Parts Network, Integrated with CCC ONE®

See CCC True Parts, Page 43



A recent vapor explosion in Missoula,MT, has led to the death of one bodyshop employee and the injury of an-other. Both OSHA and the local Mis-soula fire department are investigatingthe tragic incident.

Two employees of Rick’s AutoBody were injured the morning of Aug19, one fatally, after lacquerthinner fumes exploded in anenclosed area in the back ofthe shop.

Bruce Hall, 44, diedearly the following morningat Harborview Medical Cen-ter in Seattle from third-de-gree burns suffered over 95%of his body.

Missoula City Fire Mar-shal Gordy Hughes said thetwo workers were caught inthe fire when static electricitycaused paint fumes to ignite,and explode.

Hughes said two other employeesrushed to the area after they heardsomeone yell fire, and doused theflames with a fire extinguisher.

The other man had minor burnsand injuries related to inhaling fumes

from the explosion, Hughes said. Hewas hospitalized then released.

Hughes said several items in theshop also caught on fire, but the autobody shop itself sustained minimaldamage.

“We’ll be looking at things likewhat kind of protective system they

have in place,” Hughes said.Rick Booth, who owns Rick’s

Auto Body, said the entire shop is dev-astated by the death of a co-worker.

Hall, who lived in Missoula, hadworked at the shop for five years inthe detail department and provided

customers with rides when their vehi-cles were in the shop, Booth said.Customers were very fond of Hall,whom Booth described as a quiet guywho liked his job.

“It’s a tragedy,” Booth said. “It’snot what we expect to have happenwhen we come to work.”

He said he isn’t sure what OSHAor the fire department will be investi-gating, but said he assumes they arelooking at what caused the elementsto ignite. They may also be looking ata faulty piece of equipment, he said.

Booth said there may be a me-chanical issue with part of the fan thatshuts off when it senses fire. “I wantto find out what it was, so we can fixthe right thing,” Booth said.

Hughes said his inspectors wouldbe looking into the ventilation systemand other safety measures in the build-ing. The fire department’s investiga-tion won’t be completed until nextweek.

Hughes said Rick’s Auto Body is“not negligent as far as the fire de-partment [is concerned.]”

He said that OSHA’s investiga-tion to determine if the building’s

safety code was up to standards willbe released in a couple of weeks, andpotentially an exhaust fan may be partof the issue.

While the shop had safety meas-ures, including training, in place, man-agement acknowledges that theventilation and equipment is stillbeing investigated.

There are a few things to retainfrom this incident:● When transferring flammable liq-uids in a metal container, the containermust always be grounded and bonded.● When transferring flammable liq-uids, ensure it is being done awayfrom potential ignition sources.● Ensure all containers are cappedwhen not being used.● Just because many paints are nowwaterborne does not mean that paintoperations are without hazards; mostclearcoats are still very flammable.● Employees must be trained on theworkplace hazards of their work envi-ronment.

This horrific event is a reminderof the seriousness and significancethat attention to safety has, particu-larly with paint and spray operations.

Everyday Paint Operations Result in Explosion and Fatality that Rocks the Collision Industry

Employees of Rick’s Auto Body on Missoula’s west sidegather outside the shop after the fatal explosion.Credit: Kurt Wilson, Missoulian



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More details on rating system.Vendors and shops using PartsTraderrate one another using a feedback sys-tem. Shops answer five questions torate a supplier based on parts and serv-ice quality; vendors answer four ques-tions to rate shops in terms of paymentpractices, return rates, etc.

Sailer said users of the systemcan expect to spend about one minuteper day responding to feedback ratingquestions about companies withwhich they have conducted partstransactions. Participating in theanonymous feedback rating system ismandatory, he said, because a ratinggiven to a vendor by a shop, for ex-ample, is weighted based on howmuch business that shop does withthat vendor.

“If you represent 50 percent ofsomebody’s business, your feedbackhas to be worth 50 percent of their rat-ings,” Sailer said. “So as a supplier, ifa shop has only ordered from youonce, and he didn’t like you andtrashes you in the feedback, that’sonly one piece of feedback. He can’t

be 50 percent of your feedback be-cause he’s not that relevant to yourbusiness.”

Feedback is not required on everypurchase, however, and the number ofsurveys a shop or vendor must com-plete may vary day-to-day but shouldtake an average of about five minutesa week, Sailer said.

Users can request to providefeedback on a transaction even if notasked, he said.

Only a company’s star-based rat-ing is visible to users of the system,Sailer said, but any additional com-ments that are made about a shop orvendor are batched and sent to thatshop or vendor.

Bad ratings cannot be challenged,he said, but someone giving you a badreview isn’t likely to continue to dobusiness with you, so the reviewwon’t be weighted as heavily in youroverall rating as feedback from thosedoing more business with you.

Customers don’t have to wait.Select Service shops don’t have towait the half-hour to receive quotes ifa customer wants an estimate rightaway, State Farm’s George Avery said.

“There’s no problem with writingyour estimate like you do today and

giving it to them,” he said. “In theevent you’re awarded the job, you cantake that estimate and do your directbuy, or you may choose to put it outfor some quotes. But we certainly un-derstand there are times when a cus-tomer just wants an estimate.”

Buying from non-participatingvendors. Occasionally, Avery ac-knowledged, a shop may need to use aparts vendor who is not on PartsTrader,such as when an uncommon customwheel or flare is needed.

“If it’s a guy down the street whoyou buy from once or twice a year,just an odd part, you’re more thanwelcome to buy that part from him,”Avery said.

Because that part will be shownas not having gone through the sys-tem, it will be flagged as an order notin compliance with Select Serviceguidelines, Avery said, but local man-agement will have leeway to decidehow far from 100 percent complianceis acceptable for shops on the pro-gram.

Getting vendors on the system.The only way a vendor can partici-pate in PartsTrader is if they are“nominated” by a shop using the sys-tem. Avery said during the initial test-

ing of the system in five markets, ashop complained that a vendor fromFlorida—where PartsTrader hasn’tbeen rolled-out—showed up on thesystem. Avery reiterated that onlyshops—not State Farm nor Part-sTrader—control which vendors areon the system.

“It turns out a repairer (on thesystem in another state) had a rela-tionship with that vendor in Florida,”Avery said.

If a shop nominates a vendor,then is unhappy with that vendor, canthe nomination be rescinded? Sailersaid no.

“Two reasons: First, the odds arepretty darn good that someone elsenominated them as well,” Sailer said.“And let’s say no one else did, butsomebody else started using them.The last thing I’m going to do is say tomy users, ‘Well, because Joe doesn’twant to do business with that vendor,you can’t do business with them ei-ther.’ We’re not going to take awayyour choice if they’re already onthere. But no one will make you dobusiness with them.”

Not part of a Select Servicereduction. Some shops in several


More on PartsTrader

See More on PartsTrader, Page 18


markets have dropped out of the Se-lect Service program rather than usePartsTrader. But Avery said the pro-gram is not part of any plan to re-duce the number of shops on theprogram or shift work toward largeMSOs.

“That could happen, but this isnot an effort to drive the number ofSelect Service repairers we have,”Avery said.

He also noted that more than 50percent of Select Service shops are in-dependent single-location businesses,a higher percentage than any otherlarge insurer’s program.

“That’s not a signal to me thatI’m trying to dump the independents,”Avery said. “They are great businesspartners.”

Lawsuit filed. PartsTrader hasn’trolled into Mississippi yet, but repair-ers and parts vendors there have al-ready filed suit in an effort to preventshops from having to use it. The Mis-sissippi Collision Repair Associationand more than two dozen body shops,dealers and other parts suppliers al-

lege in the suit, filed in Hinds CountyChancery Court, that State Farm’s im-plementation of PartsTrader tortiouslyinterferes with existing business rela-tionships that shops have with theirparts vendors.

In addition to an injunction halt-ing State Farm’s implementation ofPartsTrader, the suit seeks a rulingthat State Farm is violating the termsof the 1963 Consent Decree, whichplaced limits on more than 260 in-surer’s activities related to auto in-surance and claims. The suit alsoseeks to prevent State Farm from in-terfering in the relationship betweena shop and its customers by delayingpayments or appraisals, or by placinglimitations on the use of rental vehi-cles.

State Farm said the case is with-out merit and that it will vigorouslydefend against it. See related story thisissue.

John Yoswick, a freelance writerbased in Portland, Oregon, who hasbeen writing about the automotive in-dustry since 1988, is also the editor of theweekly CRASH Network (for a free 4-week trial subscription, visit www.Crash-Network.com). He can be contacted byemail at jyoswick@ SpiritOne.com.


Continued from Page 16

More on PartsTraderThe Alliance of Automotive ServiceProviders of New Jersey (AASP/NJ)has announced its support of the Mis-sissippi Collision Repair Associa-tion’s (MSCRA) recently filed suitagainst State Farm and PartsTrader inan attempt to prevent the insurer frombringing the PartsTrader program toMississippi.

“The collision industry hasclearly rejected the concept of Part-sTrader, yet State Farm is taking theposition that they are going to forcePartsTrader on the collision indus-try,” said Charles Bryant, AASP/NJexecutive director. “State Farm’s at-tempt to create the appearance thatthey are trying to help the collisionindustry solve a problem has clearlyfailed.”

On Aug. 28, MSCRA and twodozen collision repair facility opera-

tors filed a lawsuit in the HindsCounty, Miss., Chancery Court againstState Farm and PartsTrader, stating therequired PartsTrader program candamage their cycle time and therefore,harm customer satisfaction. See nextrelated story.

“If PartsTrader was good for thecollision industry, State Farm wouldhave been able to convince the indus-try to accept the concept by now,” saidBryant.

“We believe the suit is without meritand we intend to vigorously defend thesuit,” said State Farm spokespersonRoszell Gadson.

See also SCRS position state-ment on parts procurement (this issue)and ASA letter to State Farm’s EdRusk, Jr. (this issue). The Indiana Au-tobody Association also commented(this issue.)

AASP/NJ Announces Support of MCRA Suit

at www.autobodynews.com

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Even thought the Internet is continu-ing to explode and cable TV advertis-ing is flourishing, radio is still aliveand well and more body shops areusing it, according to people whoknow—such as: advertising agencies,media buying companies radio sta-tions and body shops themselves.

According to Kantar Media,there are nearly 5,000 AM stations androughly 9,000 FM stations in thiscountry and last year radio advertisingdollars increased by 8 percent at thenational level and 3 percent locally.While the collision industry is alwayslooking for new forms of advertisingand marketing, the word out on thestreet is that good old broadcast radiois still a viable form for body shops,both MSOs and independents.

Phil D’Angelo is a sales managerfor three radio stations in northernCalifornia (KUIC, KKIQ and KKDV)and has seen how radio advertisinghas worked well for body shops in his

regions. “We currently have five bodyshops advertising on KUIC in Vacav-ille, CA, and they’re happy with theresults,” D’Angelo said.

“Radio is more popular now, be-cause it offers so many options forcompanies of all sizes. For regionalcompanies, you’re going to get morebang for your buck with radio, as op-posed to other forms of advertising ormarketing. People wake up in themorning with the radio; drive to workwith the radio and listen to the radioall day at work, so radio travels every-where and some people listen to it8–10 hours and more every day. Also,we’ve discovered that the Internet andbroadcast radio work hand-in-hand,because radio creates demand and theInternet fulfills that demand. If theyhear you on the radio and then see youonline, there’s a good chance you’llget them as a customer.”D’Angelo had to learn the collisiongame in order to better serve his body

shop clients, he explained. “When westarted working with body shops, wediscovered that their business modelis unique, because from what they’vetold us, 80% of all the work comesthrough the insurance companies. So,the advertising we’ve designed forthem conveys a specific message, butbranding is also a big part of it. Wewant the body shop’s name to be inthe listener’s head.

In the radio business, we call itthe consumer’s ‘top-of-mind aware-ness,’ and it’s very important in thecollision repair industry, because get-ting your car fixed is not an impulsebuy. So, when people do get in an ac-cident, they’ve already heard theshop’s name over and over on one ofour stations and that’s who they willmention it to their insurance agent.”

Chuck Jessen is the owner ofPreFab Ads in San Francisco, a com-pany that licenses professionally-pro-duced TV spots to body shops on an

exclusive-by-market basis. Thesecommercials have appeared on 260local television markets throughoutthe country and several have won in-ternational advertising awards andhave been featured on such nationalTV programs as “Reel TV” and“World’s Funniest.”

Jessen is currently producing aseries of radio ads to add to his menuof offerings, because his clients areasking more and more for 30 and 60-second spots they want to air on localstations. “Some body shops areswitching from TV to radio, so thatthey can target their customers morespecifically,” Jessen said.

“In the bigger markets, the costof TV advertising is prohibitive formany independent body shops withmodest advertising budgets. If you’repaying to advertise to a certain marketand a large majority of it is out of yourarea, it doesn’t make sense for any re-gional business to advertise outside

Is Radio Advertising a Sound Decision For Body Shops?

with Ed Attanasio

Social Media for Shops

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

that area. With radio, body shops canget more saturation and coverage insmaller to mid-size markets, so it’sideal for body shops that draw cus-tomers from no more than 10 milesaway.”

Radio has a captive audience andJessen knows from his 30 years of ex-perience what types of radio ads willwork in any market, he said. “Peopleare in their cars a lot and commutersaren’t going away any time soon.We’re producing several differenttypes of radio ad, including humorousand instructional. With our TV ads, wealready know humor works and com-munity service type themes are alwayswell-suited for the collision industry.We produced a radio ad that conveysan anti-texting message and it getsgood reviews, because it’s a warm andfuzzy type of ad that listeners will finduseful.”

Sharon Wicks is the president ofSilicon Valley Media Consulting inSan Jose, CA and has seen a recentspike in her clients’ interest in buyingmore radio advertising time, she said.“Radio is thriving, because it justmakes sense for regional businessesthat can’t afford a heavy television ad-vertising schedule. Radio has gone

full circle and now it’s back in a bigway, especially for companies thatvalue a highly targeted approach.”

Wicks has seen more and more ofher clients asking about Pandora In-ternet Radio, an automated music rec-ommendation service that playsmusical selections of a certain genrebased on the user’s artist selections.The user then provides positive ornegative feedback for songs chosen bythe service, which are taken into ac-count when Pandora selects futuresongs.

“Advertisers like Pandora, be-cause it is more targeted than conven-tional radio,” Wicks said. “Pandorahas specific demographic informationabout every one of its users, so you’regetting exactly who you want to reach.When your ad runs, it appears in apop-up banner-type ad with audio thatcan be either 15 or 30 seconds inlength. Either way, it’s less invasivethan a 60-second radio ad and ofcourse, it’s paired with a visual, whichgives it more impact.”

Rich Villanueva is the marketingmanager at Michael J’s Body Shop,Inc., with three very busy locations inSan Jose, CA. After much planningand research, Villanueva decided that

radio was the best plan for this bur-geoning regional MSO, for severalreasons.

“We found a local FM station(KEZR) that offered a package wewere very comfortable with, so wehired an advertising agency (Kilburg& Associates) that does ads for theSan Jose Sharks NHL hockey team,”Villanueva said. “We decided to gowith humorous ads and almost imme-diately we received a lot of positivefeedback. We’re basically doingbranding with these radio spots, ratherthan doing promotions. Since this isour first radio schedule, we want toget the name out there and connect thedots with our audience.”

Michael J’s had their agency pro-duce seven different ads to run in ro-tation on KEZR and is now going tocreate more ads to leverage the factthat one of their owners is a woman.“We’re targeting women with thesenew commercials, because they repre-sent a large portion of our customerbase,” Villanueva said. “Jamie Ryan isone of our co-owners and she’s a greatspokesperson for what we’re trying todo. In these ads, we position her as anexpert and an advocate, especially forour female market. The message is we

will treat our customers well from be-ginning to end, by providing themwith a stress-free, non-threatening en-vironment when they bring their car toMichael J’s.”


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trial court judge granted summaryjudgment to the hotel. But the appel-late court reversed.

Marriott’s respondeat superior li-ability followed the risk created by theintoxication, the court said, no matterwhere it proximately caused harm.Because he became intoxicated at anemployee-sponsored party that bene-fited Marriott, he was acting withinthe scope of his employment and theemployer could be liable.

The court reviewed two divergentdoctrines of liability from different ju-risdictions addressing similar factualscenarios. In Arizona, Illinois, andKansas, the court noted, an employeris liable only if the accident itself oc-curs at a time when the employee isacting within the scope of his or heremployment.

Another group of states – includ-ing Hawaii, Oregon, and Washing-ton—have found it sufficient, forrespondeat superior liability purposes,that the alcohol consumption occurredwithin the scope of employment.

Aligning California with the lat-

ter position, the appellate court said itsdecision was also in accord with stateprecedent. “[E]xisting California caselaw clearly establishes that an em-ployer may be found liable for its em-ployee’s torts as long as the proximatecause of the injury occurred within thescope of employment,” the courtwrote. “It is irrelevant that foreseeableeffects of the employee’s negligentconduct occurred at a time the em-ployee was no longer acting within thescope of his or her employment.”

Turning to the specific facts of thecase, the court determined that a rea-sonable trier of fact could find thatLandri was acting within the scope ofhis employment when he became in-toxicated at the party. The consumptionof alcoholic beverages by employees atthe hotel “was a customary incident tothe employment relationship,” thecourt said. Employees were allowed tofinish alcohol left over after partieswhile on shift, taste new drinks or havedrinks purchased for them; at the party,managers served hard alcohol and didshots with employees.

Marriott also benefited from theparty because it furthered employer-employee relations and improved em-ployee morale, the court noted.

Marriott argued that allowing itto be liable under the facts of the casewould open the doors to broad poten-tial liability for employers. Its respon-sibility as a result of serving alcoholat the party, it asserted, should haveended when Landri arrived at hishome safely.

The panel rejected that con-tention. “[A] trier of fact could con-clude that the proximate cause of theaccident, Landri’s intoxication, oc-curred within the scope of Landri’semployment,” the court said. “[W]efocus on the act on which vicarious li-ability is based and not on when theact results in injury.”

No reasonable justification existsfor “cutting off an employer’s poten-tial liability as a matter of law simplybecause an employee reaches home,”the court added. Instead, “the em-ployer’s potential liability under thesecircumstances continues until the riskthat was created within the scope ofthe employee’s employment dissi-pates.”

The Purton decision opens em-ployers up to potentially broad liabil-ity under the court’s analysis, focusingthe scope of employment “on the acton which vicarious liability is based

and not on when the act results in in-jury.”

Marriott argued that the decisionwould judicially legislate new law thatemployees drinking at an employerfunction must be escorted home andkept there by escort, in violation ofpersonal privacy and liberties, for em-ployers to avoid liability.

“Not so,” the court said. The em-ployer “created the risk of harm at itsparty by allowing an employee to con-sume alcohol to the point of intoxica-tion.” The court added that Marriottcould have lessened its risk by enforc-ing a drink-ticket policy, servingdrinks for only a limited time period,serving food or instituting a policyprohibiting smuggled alcohol. “Alter-natively, it could have eliminated therisk by forbidding alcohol.” After thecourt’s decision, many employers maychoose the last option to similarlyeliminate the risk of liability. “[I]f acommercial enterprise chooses toallow its employees to consume alco-holic beverages for the benefit of theenterprise, fairness requires that theenterprise should bear the burden ofinjuries proximately caused by theemployees’ consumption,” the courtconcluded.


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Snapshot of Industry

See Snapshot of Industry, Page 38


A while back several new shopsopened in my area. When I asked whatthey were doing about marketing, al-most everyone said Yellow Pages and800 number first. Some had boughtinto advertising mailer packages andothers local magazine ads. Naturallysome were focused on putting to-gether a presentation package to sendto DRP coordinators in the hope ofgetting insurance work. Some werealso going around taking businesscards to agents. Almost no one wasdoing any direct solicitation to get im-mediate jobs in the door.

It occurred to me that many shopowners believe there is a general mar-keting setup that everyone should in-clude right away. It seems no onetakes into consideration how market-ing should differ depending on thestage of growth and development ofthe shop. I’ve always viewed the de-velopment of a business much like thedeveloping stages of a trade profes-

sional: Beginner, Apprentice, Jour-neyman, Professional, and Leader. Ateach stage, both professional proce-dures and marketing procedures mustchange too.

I know of one leading body shopthat runs no ads, does no phone solic-itation, has no program for contactingprior customers, and has no DRPs. Itis allied with multiple dealerships andhas an estimating office at many ofthem. It employs a full-time market-ing professional to maintain optimumrelationships with all of the dealershipprincipals. A shop at a lesser level ofdevelopment couldn’t survive thisway.

A beginning—and even what Iwould call an “apprentice” shop—isalso unlikely to do phone solicitation.If it is just starting out and has no cus-tomer base, it won’t have a programfor contacting prior customers. And itis unlikely to have DRPs at this point.The beginning shop owner needs to

focus on one target public at a time.Dealerships and DRPs may be greatsources of volume business, but com-petition is keen for these sources ofbusiness and pursuing them can be awaste of time unless the owner hasfriends in high places who can helpget a deal. A better use of time wouldbe direct selling: Going to mechanicalshops, commercial firms, governmentagencies, charitable agencies, andother organizations that use vehiclesthat will require body damage repairfrom time to time is much better idea.The key principle at this point is toconcentrate financial and personnelresources on specific contacts that canbring in immediate, actual work.

I would consider a “journeyman”shop one that has survived the initialcritical phase — that eliminates manybeginners — and is now getting or-ganized for the long haul. Building abase of repeat customers should beprimary. Gathering in-depth informa-

tion from each new customer opensthe door to follow-up calls, mailings,special offers, and probing for refer-rals. Some limited ads may be appro-priate but should not take financialresources away from commission orbonus plans that encourage estima-tor/salespeople to tap the customerdatabase and referral sources for im-mediate new business. A shop at thispoint is not yet completely secure.Marketing resources can’t be wasted.Broad, long-term projects like a web-site and social media sites are neces-sary but should not take away fromdirectly focused job-mining efforts.

The well-established professionalshop is in a position to employ a widerrange of marketing efforts. A steadyflow of repeat customers and probablereferral sources like DRPs and dealer-ships ensure sufficient cash flow to af-ford name-recognition marketing. Alesser shop would be foolish to wastemoney on ads that do little more than


Development-Appropriate Marketing

On Creative Marketingwith Thomas Franklin

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


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keep the shop’s name in the publiceye, but at the professional level, it’spossible the owner is consideringopening other locations. At that pointname-recognition is essential. Thismight include radio and TV ads, spon-soring sports and other activities, andparticipating in professional groupslike the Chamber of Commerce.

The leadership shop markets it-self like any outstanding professionalshop, but takes it a step further. Theowner is likely to hold an officer po-sition in an autobody trade associationand be involved in making industryadvances through CIC meetings andother venues. This is not to say thatshop owners at earlier developmentstages shouldn’t participate in indus-try forums and activities. But the col-lision repair industry is highlycompetititve these days and market-ing is a very costly activity. Ad sales-people with expensive promotionalschemes are beating at the door all thetime. Until a shop is very well estab-lished, every marketing move mustproduce a real job coming in the door.When enough of those jobs are sure tocome, there will be plenty of time toplay with those expensive ads andpromotional schemes. But until that

happens, it would be wise to recog-nize what stage of development ashop has really reached and employmarketing resources appropriately.

The Collision Repair EducationFoundation announced that its 12thannual industry fundraiser golf out-ing raised $70,000, a record highfor the event. The fundraiser was aday of golf at South Shore CountryClub in Hingham, MA. A new as-pect of the event, a helicopter golfball drop, raised $12,000 alone.Golf balls, sponsored by individu-als, were dropped from a helicopterabove a green. Closest to the pinwon a $1,000 American Expressgift card. The winning ball wassponsored by Gerber Collision &Glass president and COO TimO’Day, who graciously donatedthe prize back to the foundation.All funds will go toward support-ing scholarships and grants for col-lision schools and students.

Said Clark Plucinski, execu-tive director. “We would like tothank all of the attendees, sponsors,and specifically PPG AutomotiveRefinish for their co-hosting spon-sorship as this event has progressedfrom raising $19,000 in 2009 to$70,000 this year.”

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ice shops,2) Finding the Defendants in

breach of the 1963 Federal ConsentDecree (and thereby voiding the Se-lect Service agreements), and

3) Stopping the Defendants frominterfering in the relationship betweencustomer and shop by delaying serv-ice payments or otherwise limiting theuse of rentals.

The suit alleges that State Farm’simplementation of the PartsTradersystem tortiously interferes with priorbusiness relationships that collisionrepair facilities have with their longstanding parts suppliers. (Tortious in-terference occurs when a person in-tentionally damages the plaintiff’scontractual or other existing businessrelationships.)

In addition, the suit contends thatState Farm is attempting to force thePlaintiffs to breach their legal fiduci-ary (trustworthiness) duty to their cus-tomers, ie. compromising a safe andreliable repair. “The relationship be-tween consumer and repairman hasbeen all but destroyed. The repairman

must do as instructed by the insurancecompany, not the consumer.”

Said attorney Eaves Jr., “Part-sTrader and State Farm will effectuatea ‘race to the bottom’ in quality andsafety.” And though he says the casevery likely will go to court, he is hop-ing for an out-of-court resolution.

“We would love for them not tobring it (the Parts Trader system) toMississippi. But it would be up tothem,” he said. Cheaper parts haveindeed been responsible for multipleinjuries, said Eaves Jr., who is a for-mer candidate for governor of Mis-sissippi.

“Nobody likes to be forced intofiling a lawsuit but this is the largestautomobile insurer in the country andwe have a lot of mutual customersthat will be impacted by this,” saidJohn Mosely, president of MSCRAfrom Clinton Body Shop and a plain-tiff in the suit. “We have investedtons of money in our business andState Farm telling us we have to buythrough PartsTrader system, is notthe best thing for the repair or thecustomer.”

Mosely currently participates inthe Select Service program with StateFarm.

In addition to seeking an in-junction against implementation ofthe PartsTrader system, the suitseeks a declaratory judgment thatState Farm is operating against the1963 Consent Decree, entered intoby several insurance company asso-ciations and the Federal Govern-ment, limiting insurer’s activities incollision repair to influence cus-tomers. Because of this conflict, thesuit seeks to void the Select Serviceagreements between repair facilitiesand State Farm.

Finally, the suit seeks to keepState Farm from interfering in thecontract between the customer andbody shops by “causing or implyingdelay in service payments, appraisalor limitation on the usage of rental au-tomobiles.”

State Farm is requiring use ofPartsTrader for specified shops in itsSelect Service DRP but insists usingthe service is strictly voluntary be-cause membership in Select Service isvoluntary.

State Farm’s public affairs repre-sentative Roszell Gadson said, “Re-pairers participate in Select Service®

on a voluntary basis. Parts Trader is acompany that provides an electronic

parts ordering platform to repairersnationwide. State Farm guidelines forthe use of parts and part types have notchanged due to electronic parts order-ing. Estimates are written and parttypes are chosen by repairers based onconsistent guidelines,” said StateFarm’s public affairs representativeRoszell Gadson.

Barry Lewis of Ridgeland, MS,and owner of European Coachworks,says participating in the lawsuit wassimple common sense for his busi-ness.

“I’m just trying to cover us forthe future,” says Lewis, “becauseeventually it’s going to affect uswhether you’re in the program or not.”The “program” to which Lewis is re-ferring is also a company doing busi-ness as Parts Trader LLC, which wasnamed in the lawsuit as well. WhileParts Trader’s website states that therepairer has the final say in which partthey should use, the MCRA maintainsthat State Farm insists their insureddrivers receive the cheapest partsavailable in order to cut repair and re-placement costs.

State Farm neither confirmed nordenied whether parts purchased


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Suit Against PartsTrader

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through the Parts Trader service wereinferior to those the repair shops claimto use.

“There are thousands of exam-ples where inferior parts led to injury,”Eaves Jr. said, citing his considerableexperience as a trial lawyer. “This

PartsTrader program is the first timethis has been implemented. Most ofthe cheaper parts will be made incountries where quality is not as im-portant,” he continued.

But State Farm says the suit iswithout merit and that the Parts Tradersystem is not yet a reality for Missis-sippi. Preventing it from being imple-mented in Mississippi is, of course,the point of the suit.

“State Farm recently received no-tice of a lawsuit in Hinds County, Mis-sissippi, related to our electronic partsordering initiative and our Select Serv-ice® program. We believe the suit iswithout merit. We intend to vigorouslydefend the suit,” said Roszell. “TheParts Trader program has not yet evenbeen implemented in Mississippi.”

MCRA President Mosley arguesthat parts ordered from off-shore sites

are not upheld to the same standardsof safety as are American-made parts.But the PartsTrader website states un-equivocally that it does not recom-mend specific parts or manufacturers.

“Collision parts suppliers provid-ing pricing within PartsTrader must benominated by repairers like you be-fore we invite them to participate inthis market,” says the PartsTraderwebsite.

Collision repairers and their representa-tives have come up with numerous differ-ent legal theories about why insurersshouldn’t be allowed to create networks.One of them is based on the now little-known Consent Decree.

In November 1963, the U.S. JusticeDepartment settled a class action suit thatit brought against the associations repre-senting some 265 insurance companies,which resulted in their officers signing a“Federal Antitrust Consent Order,” knownas the Consent Decree. A consent decreein general is a written agreement in whicha company or organization under investi-gation by a governmental agency agree to

do or not do something in the future – with-out admitting any past wrong-doing. In thiscase it settled the class action suit withouttrial. The signers, three insurance trade as-sociations and their members agreed toforever refrain from several practices, in-cluding setting prices and steering. Theyadmitted no wrongdoing but agreed toabide by its terms in perpetuity, meaningit’s still binding on its signatories today.

The DOJ filed an action against theassociations alleging that they had formu-lated an “Independent Appraisal Plan” in1947 “to depress and control automobilematerial damage repair cost.” The heart ofthe plan was a scheme to control the work

of independent appraisers who preparedestimates of repair costs and got bodyshops to agree to them. The Govern-ment’s case focused on an insurance in-dustry invention called the CombinedClaims Committee (CCC) which was es-tablished to control collision repair prices.Basically, each CCC member-insurer se-lected one favored appraiser or appraisalfirm in each market area, to the exclusionof others, to receive all of the participat-ing insurer’s adjusting work, as long asthis adjuster worked within the guidelinesthat the CCC established and controlled.

Under the plan, committees ap-pointed by the trade groups would spon-

sor individuals or partnerships to act asappraisers in assigned territories for all as-sociation members. In return for the in-surers’ agreement to use them exclusively,the appraisers would agree to depress andcontrol repair costs by arranging (whenpossible) for shops to agree to estimatesbefore they had examined the damagedvehicles, by “establish[ing] strict labortime allowances,” and by “obtain[ing] thelowest possible hourly labor rate.” TheDOJ alleged that the plan violated theSherman Act. In November 1963 (lessthan a week after John F. Kennedy’s as-sassination) the Government’s case was

The 1963 Federal Consent Decree (www.ican2000.com/documents/1963/)

See Consent Decree, Page 33


Suit Against PartsTrader


by Ed Attanasio

Government mandates for more fuelefficient and safer vehicles haveforced changes in the design and con-struction of all vehicles. The collisionindustry is changing faster than mostbody shops can keep up and stayingon the cutting-edge can be expensiveand time-consuming. And just as im-portantly, you may no longer be per-forming proper repairs on today’snewer models altogether, by either re-jecting new training, systems andequipment, according to Ray Zitzloff,the president of Car Bench America(CBA).

“The OEMs are reducing theweight of these new vehicles by inte-grating a variety of lighter multi-strength materials into their designs,”Zitzloff said. “High strength steel andaluminum will be common in all ve-hicles and they require different repairprocedures and equipment. Aluminumand MIG brazing, riveting and bond-ing, aluminum clean rooms with vac-uum systems are all required. If you’rea body shop owner, you already knowthis all too well, and acutely aware of

the fact that most of these new mate-rials can no longer be heated or pulledto fit. The removal and replacement ofsections of various types of materialsis required.”

CBA has introduced a full line ofequipment called Revolution from 3Mbench to 5.2M all sharing and using thesame universal hardware with state-of-the art laser measuring for virtually alllight trucks and cars sold in NorthAmerica To complement the Revolu-tion CBA has added a complete line ofproducts from Europe necessary to

meet the changing needs of the 21stcentury vehicle, including welders, alu-minum steel kits, plasma cutters, SPRguns, induction heaters, laser measur-ing etc., and more shops will settle for

making improper repairs onthe newer vehicles, becauseto do them right will requiremore training and more so-phisticated equipment, ac-cording to Zitzloff.

Zitzloff can see the futureof structural collision repairand the role his company willbe playing in this whole newapproach to fixing cars, hesaid. “Car Bench is the mostversatile, accurate, and cost-effective structural repairsystem in the world, withmore OEM approvals than

any other system,” Zitzloff explained.“We’ve all heard this statement: ‘Oncea vehicle has been damaged it willnever drive the same again,’ but CarBench can make that statement obso-lete. Vehicles are built on fixtures atthe factory to ensure structural dimen-sional accuracy and ease of assembly.Repairing them on fixtures has always

done the same thing, but that’s not theend of the story.”

When asked why Car BenchAmerica’s Universal fixture system isthe best way to repair today’s cars,Zitzloff is quick to respond. “First off,the Car Bench prototype equipment isused by more OEMs for designing andbuilding vehicles than any other sys-tems. The same prototype equipmentused by body shops is also used by theOEMs for performing repairs. Thismeans that the same cars that werebuilt using Car Bench are being re-paired by using the same equipment.When doing sectioning and replace-ment repairs, the tech is essentially re-building the vehicle.”

Zitzloff also praised other fea-tures of the Car Bench system. “Oursystems provide fast accurate LaserMeasuring (self leveling, no recali-bration, 1MM tolerance) for blue-printing, estimates from virtually anylift,” he said. “And they save time, be-cause they’re faster and provide moreaccurate repairs without re-measuring.For the finest structural repair systemin the world, Car Bench America isleading the way.”


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dismissed, pursuant to an agreed orderunder which the defendant associationswere enjoined from pursuing any programthat had the purpose or effect of “exercis-ing any control over the activities of anyappraiser.”

The Independent Appraisal Plan hasnever been revived, nor has any programor practice which favors chosen damageappraisers or excludes others.

In the words of Silvie Licitra, well-respected collision industry writer and acollision repairer at the time, resultant pay-offs and corruption were rampant becausethe selected appraiser fixed the labor rates,required arbitrary discounts on parts, andheld firm to the labor times published in aguide. These appraisers also had shopswith which they had unwritten agreementsthat their estimates would be accepted,sight unseen. “Those appraisers all hadtheir hands out and if you didn’t pay themoff, they’d write lousy estimates (creating)a take-it-or-leave-it situation, the shopbeing faced with losing the job if they did-n’t play ball (with insurers).”

Frank Stepanek, chairman of theNational Body Shop Committee of the In-dependent Garage Owners (IGO) of Amer-ica (precursor to the Automotive ServiceAssociation), was quoted in a November1963 industry publication: “It’s no longerlegal for many insurance companies to de-mand discounts, set the hourly rates, boy-cott repair shops [and] use specificappraisers.”

A number of trade associations weretargeted in the years following the signingof the Consent Decree. In March of 1964,Allstate Insurance Company filed suitagainst 109 members of the Central JerseyAuto Body Association (CJABA), chargingthem with antitrust violations, conspiracyand price fixing. In July of that year, a judgeordered the association members to sign aconsent decree of their own. The embit-tered members reluctantly settled with All-state, citing lack of funds to finance aprotracted legal battle with the company.

In support of the CJABA, an associa-tion of central New York body shop ownersset up a legal defense fund for the CJABA.

Their spokesman was quoted as saying:“It’s with deep regret that this spirit was notnationwide. I strongly urge every body shopor garageman who looks forward to free-dom in his business to alert himself andseek remedies that will maintain our rightsand freedoms in the industry.”

The legal wrangling went back andforth until the summer of 1967, when acongressional committee called for an in-vestigation into the auto insurance busi-ness. U.S. Sen. Philip Hart of Michiganproposed federal oversight of the indus-try and an amendment to the 1945 Mc-Carran-Ferguson Act as a way to curbinsurance domination of the collision re-pair industry. McCarran-Ferguson effec-tively shielded the insurance industryfrom federal antitrust laws by grantingstates the primary responsibility for regu-lating insurance. Sen. Warren Magnuson,chairman of the Senate Commerce Com-mittee, made additional calls for inves-tigative probes and even threatened tolaunch an independent investigation by aspecial counsel.

Between congressional pressuresand Transportation Secretary Don Boyd’sinsistence the matter be studied by his de-partment, the White House was promptedto step in. In a message to Congress inearly 1968, President Lyndon Johnsoncalled for a thorough investigation into theauto insurance business.

“The Consent Decree was like a Band-Aid,” said Dick Hogg, a suburban Philadel-phia body shop owner who remembered the‘63 action, as well as the business condi-tions that led to its signing. Hogg also re-members that its signing didn’t usher in agolden age for body shops. “It only gave ustemporary relief because like some otherlaws, there was no enforcement. The termsof the Consent Decree were diluted by thestate regulations that are, for the most part,unenforced. The insurance departmentsgive the benefit of the doubt to the insurers.”

Since insurance companies hedgedtheir bets with their chosen appraisal firm,they had control. No auto damage claimswere settled unless they passed through

The 1963 Federal Consent Decree (continued from p. 30)

See Consent Decree, Page 40

by Ed Attanasio

Tesla’s recent perfect 5-star safetyrating is unprecedented and the high-est in the history of automotive safetytesting. It took all the former num-bers and crushed them, when inde-pendent testing by the National

Highway Traffic Safety Administra-tion (NHTSA) awarded the TeslaModel S a five-star safety rating inevery subcategory without exception.Only one percent of all cars tested bythe federal government haveachieved five stars across the board.Furthermore, NHTSA does not justhand out top ratings, so these scoresare significant and have caught the

attention of other carmakers, thepress and the public, as well as colli-sion and mechanical repair shops thatwant to work on these elite vehicles.

Tesla Motors, Inc. is a Palo Alto,California-based company that de-signs, manufactures and sells electriccars and electric vehicle powertraincomponents. The Tesla Model S is thefirst premium sedan built from theground up as an electric vehicle. Thecompany sold 10,500 Model S sedansduring the first six months of 2013,and forecasts that they will be selling40,000 models annually by fourthquarter 2014.

Of all vehicles tested, includingevery major make and model ap-proved for sale in the United States,the Tesla Model S set a new record forthe lowest likelihood of injury to oc-cupants. While the Model S is a sedan,it also exceeded the safety score of allSUVs and minivans. This score takesinto account the probability of injuryfrom front, side, rear and rollover ac-cidents, according to a press releaserecently released by Tesla.

Now the $64,000 question outthere is—how can body shops get cer-

tified to work on these increasinglypopular and very safe cars? Tesla’sCommunications Manager ShannaHendriks recently addressed these in-

quiries about the manufacturer’s newlydeveloped certification program.

“Tesla has a dedicated repair andtraining program that interested bodyshops can go through to become rec-ognized as a Tesla Approved CollisionRepair Center. One of the things thatmakes the Model S unique is that thecar is made of aluminum, so bodyshops need to have aluminum-basedrepair abilities. Body shops can in-quire about the training program bysending an email to [email protected].”

Amato’s Auto Body is proud ofthe fact that they will soon be the onlyTesla-certified collision facility in theSan Diego area, according to Body

Shop Manager Perry An-derson. “It’s an exciting timefor Tesla, so we’re veryhappy to be involved,” he ex-plained. “These vehicles arebecoming more and morepopular and we’re seeingmore of them here in ourshop. Right now, we have sixTeslas that we’re workingon. It’s definitely a privilegeto be able to work on these

exceptional cars.”If other body shops are inquiring

about how to become Tesla-certified,they may have to wait for a while, An-derson said. “It’s invitation-only, fromwhat they’ve told us. Tesla is prettymuch in a position where they canpick and choose who they want work-ing on these cars. Tesla contacted usbecause we were already certified towork on a lot of other high-end luxuryvehicles, so they knew the learningcurve would not be daunting for us.We are factory-trained and certified to


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What Does Tesla’s Record-setting Safety Rating Say to the Collision Industry?

Arduous testing of the Tesla resulted in a5-star rating, the highest in the history ofautomotive safety testing

Amato’s Auto Body is proud of the fact that they willsoon be the only Tesla-certified collision facility in theSan Diego, CA area

work on six luxury brands, includingAston Martin. I think the people atTesla were attracted to us because ofour Aston Martin certification, be-cause both car makers use similar ma-terials and obviously some of therepair techniques are alike in someways. Both of them are made of alu-minum, so the bonding technologyused is very similar. With both, youneed special rivet guns and glue gunsand with aluminum, you have to havea clean room as well.

“The people from Tesla camehere and inspected our facility tomake sure we were capable of repair-ing these cars,” Anderson said. “Oncewe were onboard, we had to invest insome new equipment, including a Fro-nius welder, but the biggest thing has

been the training. Tesla wants us toknow these cars inside; be able tocompletely disassemble them and thenput them back together perfectly.”

By putting several of their shop’s 41technicians through theTesla training, Amato’snow has a core group thatcan work on the cars, butthe process is ongoing.“We have two techni-cians that have gonethrough the Tesla Fit andFinish class and nowhave 80 hours under theirbelts,” Anderson said.“Tesla just recently rolledout new training thissummer, so once wecomplete the rest of the

training within the next few months,we’ll be officially certified and havethe plaque on the wall.”

What does Anderson think aboutTesla’s recent safety numbers? “I’m

not surprised,” he said. “One cameinto the shop one day and it had obvi-ously been hit pretty seriously. Thefront end was caved in and it was atotal loss, but the woman walkedaway without a scratch and even thecar doors opened and closed perfectly.All we said was ‘wow.’ ”

Other interesting facts about theastounding safety ratings earned re-cently by Tesla include:

The Model S has the advantagein the front of not having a large gaso-line engine block, thus creating amuch longer crumple zone to absorba high speed impact. This is funda-mentally a force over distance prob-lem—the longer the crumple zone, themore time there is to slow down oc-cupants at g-loads that do not cause in-juries. Just like jumping into a pool ofwater from a tall height, it is better tohave the pool be deep and not containrocks. The Model S motor is onlyabout a foot in diameter and ismounted close to the rear axle, and thefront section that would normally con-tain a gasoline engine is used for asecond trunk.

The rear crash testing was par-ticularly important, given the optionalthird row children’s seat. For this,Tesla factory installs a double bumperif the third row seat is ordered. Thiswas needed in order to protect againsta highway speed impact in the rearwith no permanently disabling injuryto the third row occupants. The thirdrow is already the safest location inthe car for frontal or side injuries.

The Model S was also substan-tially better in rollover risk, with theother top vehicles being approximately50 percent worse. During testing at anindependent facility, the Model S re-fused to turn over via the normal meth-ods and special means were needed toinduce the car to roll. The reason forsuch a good outcome is that the batterypack is mounted below the floor pan,providing a very low center of gravity,which simultaneously ensures excep-tional handling and safety.

In addition, the lithium-ion bat-tery in the Model S did not catch fireat any time before, during or after theNHTSA testing. It is worth mention-ing that no production Tesla lithium-ion battery has ever caught fire in theModel S or Roadster, despite severalhigh speed impacts. While this is sta-tistically unlikely to remain the caselong term, Tesla is unaware of anyModel S or Roadster occupant fatali-ties in any car ever.


A Tesla pictured with Founder Elon Musk



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The Plan’s sieve, and as you might ex-pect, the dollars that passed throughwere only those deemed allowable by theinsurance industry at large. The typicallabor rate for collision repair was be-tween $5 and $6 per hour.

Essentially, the selected appraiserfixed the labor rates, required arbitrarydiscounts on parts and held firm to thelabor times published in a guide. In addi-tion, the appraiser had shops with whichone had unwritten agreements to accepttheir estimates sight unseen. Accordingto Silvie Licitra, a well-known collision in-dustry writer whose experience datesfrom that era, payoffs and corruptionwere rampant at that time.

“It was a real crazy business backthen,” wroteLicitra. “Those appraisers allhad their hands out, and they were takingmoney like crazy. If you didn’t pay themoff, they’d write lousy estimates. It was atake it or leave it situation because abody shop was faced with losing the jobif they didn’t play ball.”

In question, however, is the specificityof the Consent Decree to individual insur-

ance companies today. The Decree wassigned by representatives of the three majorinsurance associations at the time: Associ-ation of Casualty and Surety Companies(ACSC); American Mutual Insurance Al-liance (AMIA); and National Association ofMutual Casualty Companies (NAMCC), allof which are now defunct.

Also, despite their seniority in busi-ness the majority of the dominant compa-nies today are not on the list of signatoriesso represented. State Farm (1922), Farm-ers (1928) and GEICO (1936) do not, forexample, appear on the list of companiesrepresented.

In addition, communication fromthe DOJ’s Antitrust Division claims thatthe consent decree cannot be enforcedagainst individual insurance companies,since the companies themselves werenot signatories to the decree.

Read the 1963 Consent Decreeht tp : / /www. ican2000.com/docu-ments/1963/

Content herein draws upon articlespublished by Charlie Barone and JohnYoswick.

The 1963 Federal Consent Decree (from p. 33)The Ohio Court of Appeals has upheldclass certification in a suit alleging thatthe arbitration clause in a Cleveland-area dealership group’s sales agreementwas unconscionable and unenforceable,according to Eric Freedmanwriting inAutomotive News.

The 2-1 ruling against GanleyChevrolet and Ganley AutomotiveStores came in a spot delivery-relateddispute that began in March 2001, afterJeffrey and Stacy Felix purchased a2000 Chevy Blazer.

Ganley has asked the appellatecourt for reconsideration and, if that’sunsuccessful, may seek state SupremeCourt review, says dealership lawyerSteven Dever of Lakewood, Ohio.

The plaintiffs contend that Ganleytold them they were approved for 0 per-cent financing and let them take homethe Blazer. But a few days later, Ganleytold them GMAC would approve only1.9 percent financing, which they ac-cepted. More than a month later, theywere told GMAC had rejected them.The dealership then found a bank thatwould provide a 9.4 percent loan, but theFelixes refused to sign a new agreementat that rate, the decision said. The suit al-leges “bait-and-switch tactics,” violationof the state Consumer Sales PracticesAct, misrepresentation, and emotional

distress. It includes individual and class-action claims and challenges the validityof the arbitration provision in the salesagreement. A lower-court judge rejectedGanley’s request for arbitration and ap-proved class-action status on behalf ofall consumers whose sales agreementwith any Ganley store had the same pro-vision. Ganley Automotive Stores has34 franchises in northern Ohio.

The judge found the provision am-biguous and misleading and awarded$200 in damages to each of the “thou-sands of members” of the class. It coverscustomers who signed such agreementsfrom two years before the lawsuit wasfiled in June 2001 until the companychanged the provision in 2007, saidplaintiffs’ lawyer Mark Schlachet ofCleveland Heights, Ohio.

However, only a “handful” ofthose customers went to arbitration,Dever said. He added: “How can youquantify the harm when people had nocomplaint? The analysis is fundamen-tally flawed.” The appeals court heldthat class-action status was appropriateunder the consumer protection law.

Appeals Judge Mary Kilbane saidthe trial judge, who handled the case for11 years, had “conducted a rigorousanalysis into whether the prerequisites forclass certification have been satisfied.”

Ohio Dealership Group is Faced with Class Action Claim


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It wasn’t so long ago that all shopswere created equal. If you had tools,four walls and a sign, you could be abody shop. Actually, I should remove“four walls” from the list; there weremany “shops” repairing cars that did-n’t have one wall, let alone four.

At any rate, the qualifications torepair a car didn’t include specialequipment or training. Starting a bodyshop business required not much morethan proclaiming that you were a bodyman.

At that time, thankfully, direct re-pair programs were virtually non-ex-istent. I can’t imagine what we wouldhave done during that time period ifdirect repair programs were prevalent.How would an insurance companyidentify which shops to refer their cus-tomers to?

Even though shops have evolvedsignificantly since that time, the samedilemma exists for insurance compa-nies today: Which shops do we refer

our customers to? Without having theintimate knowledge of your shop oryour competitors, finding the mostqualified shops in a market is as aboutas easy as developing a national healthcare plan.

Why does an insurance companycare where their insureds have the ve-hicles fixed? There are a lot of rea-sons. The cost of the repair is amotivating factor in finding the rightshop, although it no longer is the mostimportant. Back in the early 1980s

when there were more than 70,000shops in the United States, price wasthe biggest concern. Customer servicewasn’t even on our radar. The qualityof the repair was assumed to be nobetter or worse at one shop than at an-

other down the street. In fact,the biggest concern I hadwith a shop was determiningwhether or not the dog inback lot was chained up so Icould write my estimate.Everyone was assumed to beable to perform a proper re-pair.

For the younger generationreading this, it’s probably dif-ficult for you to understand

what I’m talking about. To put it inproper perspective, some shops wouldneed to wet down the dirt floor beforepainting a car. It wasn’t uncommon tosee shops pulling full-frame vehicleswith anything that was stationary.And one of my personal favorites was

watching the old-time body men use atorch. A torch in the late 1970s andearly 1980s was about as useful asduct tape.

The industry has changed dramat-ically over the past few decades and theunprofessional, uneducated shop ownerhas been replaced. Professional, edu-cated and astute operators have takenthe industry to the next level.

Now customer service is reli-giously the topic of conversation. In-surance executives are facing increasedscrutiny and pressure to improve cus-tomer service scores. Policyholder re-tention is the lowest the industry hasseen. Insurance has become a com-modity where price is the single mostmotivating factor to consumers. Thereare intense battles happening betweenthe Top 10 carriers for policyholders,as evidenced by the marketing dollarsbeing spent.

Ironically, our biggest challengeisn’t finding new customers; it’s keep-


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Eliminating the “Have Not” Shops Will Help the “Haves”

with The Insurance InsiderInside Insurance

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

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ing the ones we have. Retention is di-rectly correlated to customer service.Unfortunately, the collision repair fa-cility and insurance company typi-cally share a common fate relative tocustomer service. If the customer likesthe shop, more often than not, the cus-tomer will like the insurance com-pany. Conversely, if they don’t likeyou, they don’t like us. Thus, the im-portance to us of finding the rightshop to repair our insureds’ vehicles.

Repairing vehicles today poses asignificant challenge to the collisionrepair industry as well as the insur-ance industry. Collision repair shopsneed to make significant investmentsin training to remain current with thelatest technology and repair method-ologies. We recognize that this is crit-ically important to a safe and properrepair. There are still over 40,000shops in the U.S. How do we find theshops that are the best trained andhave invested in their people?

The new and specialty equipmentrequired to properly repair many oftoday’s vehicle should help foster areduction in the number of shops inthe industry. The days of opening up ashop with a tool box and a sign infront of the building are a distant

“bad” memory. The challenge is elim-inating those shops from the market-place. We don’t want our insureds’vehicles in shops that are ill-equipped.

Collision repair shops need towork closely with insurance compa-nies and state and national regulatorsto eliminate the “haves” from the“have-nots.” Those that have theequipment and training must survivewhile those that “have-not” shouldnot. The insurance industry can’t dothis alone. We need help identifyingthe “haves.”

The industry continues to evolveand the upper class of the industry isgrowing exponentially. The middleand lower tier shops are shrinking. Itwould be our desire to increase thepace of this, with the thought that thesurviving shops would be bettertrained and equipped. The sooner weeliminate the “have-nots,” the betterit will be for everyone in the indus-try.

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


The Indiana Autobody Association(IABA) has announced its full sup-port of the Society of Collision RepairSpecialists' (SCRS) recent positionstatement on insurer mandates (see p.8 this issue).

The IABA believes that all repairdecisions, vendor selections and busi-ness processes should be left to thecollision repair professionals whowork on vehicles and have been en-trusted by the vehicle owners to makecorrect repair decisions.

The IABA also believes that theintent of these mandated programs isnot to improve efficiency in any cur-rent business process, or for the ben-

efit of the vehicle owner. It believesthese attempts are solely driven by in-surers and other third parties seekingto make additional profits and gaincontrol of the collision repair businessthrough practices that can be consid-ered extortion and tortious interfer-ence, as previously identified in the1963 Consent Decree (see page 15),and the IABA will pursue to deterthese actions using the fullest extentof the law.

ASA President Dan Risley hasalso made ASA’s position clear that itis against all forms of direct repairprogram requirements to use specificsuppliers or products (this issue.)

Indiana Autobody Association ExpressesSupport for SCRS Position Statement


CCC True Parts

Tesla has chosen to skip the middle-man and open its own dealerships tosell its pricey Model S electric car. Instates like Texas where manufacturer-owned dealerships are not allowed,prospective Tesla customers must re-sort to buying the car online.

StateImpact Texas explains thereason that law has not changed boilsdown to money and a powerful auto-motive dealership lobby which out-spent Tesla in Texas. According to theTesla Motors website, the nearestTesla dealership is in suburban Den-ver. Although you can't purchase aTesla in Texas, you can have yourTesla serviced in Austin, Dallas, orHouston.

Tesla Motors fought legislativefranchise battles with dealers on anumber of fronts this year, but Texasbecame the only state in which theelectric vehicle maker mounted a vig-orous challenge to existing franchiselaws. Tesla lost its fight outright.

Tesla Motors has two Texasshowrooms for its luxury electric cars,one in Austin, the other in Houston,but you can’t call them stores. Texaslaw prohibits carmakers from selling

directly to customers, as Tesla doeselsewhere. Instead, the companiesmust sell through franchise dealer-ships, something Tesla so far refusesto do. Tesla tried to get the state’s lawchanged, to no avail. So instead ofstores, Tesla’s Texas facilities are “gal-leries,” where customers can examinethe company’s $62,400-plus Model Ssedan and talk with Tesla reps aboutthe car’s features. And that’s about it.

“They can’t tell you the price ofthe car, how to buy the car or give youa test drive,” said Diarmuid O’Con-nell, Tesla’s vice president of businessdevelopment. “All they can really dois tell you about electric cars.”

As Tesla expands across thecountry, the company has run into adogged foe: the traditional auto deal-ership and its franchise model. Dealerassociations in several states havetried to shut out Tesla with lawsuitsand legislation, viewing the com-pany’s direct-sales model as a chal-lenge to their way of doing business.They aren’t necessarily worried aboutTesla itself. The Palo Alto companydelivered 5,150 cars in the secondquarter against a forecast of 4,500 and

turned a profit of 5 cents per sharewhile analysts expected a loss of 17cents. It remains tiny by the auto in-dustry’s standards, planning to selljust 21,000 cars worldwide this year.The car dealers don’t want other au-tomakers to follow Tesla’s lead, open-ing company-run stores that wouldcompete with franchisees.

“They feel threatened by this, asthey have when other companies havetried to do this in the past,” said JackNerad, editorial director and execu-tive analyst at Kelley Blue Book.“Dealers are part of a well-developedsupply chain, and they want to keep itthat way.”

To Tesla, the fight represents aclassic Silicon Valley story—an inno-vative startup disrupts an establishedindustry and faces resistance. Thedealer associations, Tesla executivessay, are trying to stifle change in astodgy marketplace that could use alittle shaking up.

“They go to the legislature and say,‘We need protection from innovation,’ “O’Connell said. “There’s really a fun-damental question here: Should thegovernment be prescribing a business

model for automotives? Apply that ar-gument, and we’d still be riding horsesand delivering messages by hand.”

To the dealer associations, directsales could destroy a franchise systemthat they say works for manufacturersand consumers alike, even if manybuyers don’t realize it.

Texas, for example, has autodealerships in 284 cities and towns,according to the Texas AutomobileDealers Association. Of those, 163towns have fewer than 15,000 resi-dents. If the auto industry switched todirect sales, the car companies would-n’t maintain stores and service centersin the smaller communities, said theassociation’s president, Bill Wolters.

“The manufacturers would do ex-actly like the big-box stores have donewith all the other products—theywould only be in the metropolitan areasand big cities,” Wolters said. “The fran-chise system provides a much broadernetwork of dealers than you’d have ifmanufacturers controlled the outlets.”

The ability to sell cars in the hin-terlands was, in fact, one of the mainreasons the auto industry adopted thefranchise model.


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Randy McGinty has worked in thecollision repair industry for more than25 years. He got his start working inindependent body shops before mov-ing to dealerships and eventually

owning his own body shop. Aftermore than a decade of owning and op-erating his own body shop, McGintylost the lease on his building, whichleft him wondering what to do next.His wife suggested he try his hand atbeing an instructor and apply for anopen teaching position at the Univer-sal Technical Institute in Houston.

“I didn’t really know what Iwanted to do next,” McGinty said. “Ihad been teaching people that worked

for me and that I worked beside… Itook all my credentials and everythingelse and presented it to UTI and, aftera series of tests, they decided to hireme. They taught me how to teach, and

I’ve been here ever since.”McGinty teaches both struc-

tural and non-structural automo-tive repair classes at UTI Houston.Earlier this year, McGinty madehistory by being the first person tocomplete every collision repairtraining course offered by ChiefUniversity, the technical trainingarm of Chief Automotive Tech-nologies. For his efforts, he wasgranted the advanced master struc-tural technician and advanced

master structural damage analysisprofessional certifications.

It took McGinty more than 120course hours and nearly 10 years tocomplete all of the collision repairtraining. It’s a feat that McGinty saidjust wouldn’t have been possible with-out the support he received from UTIHouston.

“The only reason I was able totake all of these classes was due to myeducation managers and education di-

rectors here at the Universal Techni-cal Institute,” he said. “Without theirhelp and blessings, this would havenever ever happened.”

When he’s not busy taking classesor teaching students, McGinty and hiswife enjoy riding Harley Davidsonmotorcycles, camping, grilling andwatching movies.

For more information on RandyMcGinty or UTI Houston, call 281-443-6262 or visit www.uti.edu. Youcan also connect with UTI on Face-book and Twitter.

To learn more about Chief Uni-versity classes, call 800-445-9262 orvisit www.chiefautomotive.com. Youcan also connect with Chief Automo-tive Technologies on Facebook, Twit-ter and YouTube.


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BMW is recalling certain modelyear 2009-2010 X5 xDrive35d vehi-cles equipped with a diesel engineand manufactured from June 13,2009, through November 9, 2009.The fuel filter heater, which is usedfor warming up the diesel fuel dur-ing vehicle operation at low outsidetemperatures, could experience anelectrical overload condition and be-come permanently activated. Thefuel filter heater could remain acti-vated even when the ignition is offand lead to a dead battery. The unitcould also overheat, possibly result-ing in a vehicle fire.

BMW Recalls Diesel X5s

Chrysler is recalling certain modelyear 2013 Fiat 500e electric vehiclesmanufactured December 16, 2012,through August 13, 2013. The halfshaft joints may loosen and separatecausing noise and a loss of drivingcapability. A loss of driving capabil-ity increases the risk of a crash.Chrysler will notify owners and Fiatdealers will replace the fasteners at-taching the half shaft inboard joints,free of charge. The recall will beginin August 2013. Owners may contactFiat at 1-888-242-6342. Chrysler'srecall number is N51.

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Toyota announced that it will conducta voluntary safety recall. This in-volves approximately 133,000 MY2006-2010 Highlander Hybrid andMY 2006-2008 Lexus RX 400h ve-hicles. In the involved Toyota High-lander Hybrid and Lexus RX 400hvehicles, IGBT or transistors withinthe hybrid system’s inverter assem-bly can experience heat damage dueto variations in characteristics of thetransistors’ parallel circuits. Shouldthis occur, various warning lights onthe instrument panel will illuminate,and in most cases the vehicle willenter “limp home mode.” In limitedinstances, the hybrid system will shutdown and resulting in the vehiclestopping while the vehicle is beingdriven. Owners of vehicles subject tothese recalls will receive a notifica-tion by first class mail. This invertershown above has been at class foryears explaining why these hybridswere having trouble.

Toyota Highlander Hybrid &RX400h Inverter Trouble

Ford is recalling certain modelyear 2012-2013 Focus BEV vehi-cles equipped with High IntensityDischarge (HID) headlights, man-ufactured September 15, 2011,through May 6, 2013; and modelyear 2013 Focus ST vehiclesequipped with High Intensity Dis-charge (HID) headlights, manufac-tured February 16, 2012, throughMay 7, 2013.

Due to a wiring incompatabil-ity, the front side marker lampsmay not function. Thus, these ve-hicles fail to comply to the require-ments of Federal Motor VehicleSafety Standard (FMVSS) No.108, “Lamps, Reflective Devices,and Associated Equipment.”

Without the proper illumina-tion of the side maker lamps, thevehicle may be less visible in nighttime conditions, increasing the riskof a crash.

Ford will notify owners, anddealers will modify the headlampassembly wiring, free of charge.The recall began on August 16,2013. Owners may contact theFord customer relationship centerat 1-866-436-7332. Ford’s recallnumber is 13C04.

Ford Recalls 2012-13 FocusBEVs for Headlight Wiring

Toyota Motor Corp. is recallingabout 780,000 crossovers and hybridsedans for a second time to fix loose-ness on rear-suspension lower armsthat could cause the threads to rustand wear out, the NHTSA said. Therecall covers 2010 Lexus HS 250hhybrids and 2006-11 Toyota RAV4crossovers. The original recall forboth vehicles was launched in No-vember, but Toyota said it receivedreports from dealers that some vehi-cles experienced the same symptomsas before. Drivers reported hearingabnormal noises from the rear of thevehicles. Toyota said wear on thethreaded part of the arm could causethe arm to separate, which could re-sult in the loss of vehicle control anda crash. Toyota and Lexus sent sim-ilar letters to their dealers on Tues-day, Sept. 3, notifying them of thesecond recall. “Upon investigation,it was discovered that some inspec-tions were not adequate and portionsof the repair procedure may not havebeen performed correctly,” the Toy-ota letter stated. Toyota said it hasrevised the inspection and remedyprocedures and is asking owners togo to dealerships to have the revisedprocedures performed.

Toyota Recalls About 780KCrossovers/Hybrids Again

Nissan Motor Co., Ltd. announcedthat the company will be ready withmultiple, commercially-viable Au-tonomous Drive vehicles by 2020.Nissan announced that the com-pany’s engineers have been carry-ing out intensive research on thetechnology for years, alongsideteams from the world’s top univer-sities, including MIT, Stanford, Ox-ford, Carnegie Mellon and theUniversity of Tokyo. Work is al-ready underway in Japan to build adedicated autonomous drivingproving ground, to be completed bythe end of fiscal year 2014. Featur-ing real townscapes - masonry notmock-ups - it will be used to pushvehicle testing beyond the limitspossible on public roads to ensurethe technology is safe. Nissan’s au-tonomous driving will be achievedat realistic prices for consumers.The goal is availability across themodel range within two vehiclegenerations.

Said CEO Carlos Ghosn. “ Iam committing to be ready to intro-duce a new ground-breaking tech-nology, Autonomous Drive, by2020, and we are on track to realizeit.”

Nissan Will Have Self-DriverCars on Road by 2020

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Toyota is recalling certain model year2005-2010 Tacoma Access Cab vehi-cles manufactured September 14,2004, through March 29, 2010; andmodel year 2011 Tacoma Access Cabvehicles manufactured July 1, 2010,through September 7, 2011. If the ac-cess doors are repeatedly and force-fully closed, the screws that attach theseat belt pre-tensioner to the seat beltretractor can loosen over time. If thescrews loosen completely, the seat beltpre-tensioner and the retractor springcover could detach from the seat beltretractor.

Toyota Tacoma Access CabsSubaru of America is recalling cer-tain model year 2014 Legacy 3.6Rand Outback 3.6R and 2013 Tribecavehicles manufactured June 12,2013, through June 28, 2013 andequipped with 5-speed automatictransmissions. The parking rod maycome loose inside the automatictransmission. If the parking rod de-taches, the transmission may preventthe vehicle from being moved ordriven. The parking mechanism maynot engage, and the vehicle may rollwhile in the “park” position, in-creasing the risk of a crash.

Subaru for Legacys/OutbacksNissan is recalling certain model year2014 Versa Note vehicles manufac-tured April 23, 2013, through July 5,2013. The rear seat latch bolts mayhave been manufactured incorrectly,reducing their strength. If the rearseat latch bolts break, the rear seatsmay not perform as designed in acrash, increasing the risk of injury toback seat occupants. Nissan will no-tify owners, and dealers will replacethe rear seat latch bolts, free ofcharge. The recall began August 19,2013. Owners may contact Nissan at1-800-647-7261.

Nissan 2014 VersasKia Motors Corp. is recalling certainmodel year 2014 front wheel driveSorento vehicles manufactured Janu-ary 7, 2013, through March 12, 2013;and equipped with 2.4 liter engines.Due to a manufacturing issue, the rightfront axle shaft may fracture. A frac-tured front axle may result in a loss ofpower to the wheels. Additionally, ifthe vehicle is parked without the park-ing brake applied, it may roll away. Ei-ther condition increases the risk of acrash. Kia will notify owners, anddealers will replace the front axle shaftassembly, free of charge in September.

KIA for Sorrentos

Jaguar Land Rover North America,LLC (Jaguar) is recalling certain modelyear 2013 XF 2.0L GTDi vehicles man-ufactured July 2012 through May 2013.The hose clamp for the Charge AirCooler (CAC) hose may be out of posi-tion and loose, allowing the hose to de-tach. If the CAC hose detaches, theengine may stall, increasing the risk of acrash. Additionally, steering and brakeassistance may be lost further increas-ing the risk. Jaguar will notify owners,and dealers will inspect the CAC hoseto make sure its clamp is in the correctposition and tight, free of charge.

Jaguar 2013 Land RoversHyundai is recalling certain modelyear 2013 front wheel drive Santa FeSport vehicles manufactured July 13,2012, through March 12, 2013; andequipped with 2.4 liter engines. Dueto a manufacturing issue, the rightfront axle shaft may fracture. A frac-tured front axle may result in a loss ofpower to the wheels. Additionally, ifthe vehicle is parked without the park-ing brake applied, it may roll away.Either condition increases the risk of acrash. Hyundai will notify owners,and dealers will replace the front axleshaft assembly, free of charge.

Hyundai 2013 Santa Fe’sGeneral Motors is recalling certainmodel year 2014 Chevrolet Silveradotrucks manufactured June 1, 2013,through June 30, 2013; and model year2014 GMC Sierra trucks manufacturedJune 4, 2013, through June 30, 2013.Welding on the passenger airbag inflatormay fracture when the airbag is de-ployed, allowing some gas from the airbag inflator to vent behind the instrumentpanel, instead of into the air bag. As a re-sult the air bag may not fully inflate, in-creasing the risk of injury. GM willnotify owners and dealers will replacethe passenger air bag module for free.

GM for 2013-14 SilveradosFord Motor Co. is recalling 370,000Crown Victoria, Mercury Grand Mar-quis and Lincoln Town Car vehiclesfrom the 2005-11 model years to in-spect and repair the lower steering shaft.Ford said corrosion of the lower inter-mediate steering shaft could cause a“loss of steering.” The recall covers355,000 vehicles sold in the UnitedStates and 15,000 sold in Canada. Deal-ers will inspect the vehicle, replace thelower intermediate steering shaft, and ifneeded, will affix a lower steering col-umn bearing and replace the upper in-termediate steering shaft, Ford said.

Ford Recalls 370K Sedans

Two bills before the New York legisla-ture seek to make insurance companyrequirements to use specific vendors orprocess for parts or materials procure-ment illegal.

Assembly Bill 7234 (A7234), In-troduced by Sen. John DeFranciscoand titled ‘An act to amend the insur-ance law, in relation to collision andcomprehensive coverage on motor ve-hicles’ and Senate Bill 5786 (S5786),also sponsored by Sen. DeFrancisco,propose to amend Section 1, Subsec-tion (a) of Section 2610 of the NewYork insurance law generally knownas the anti-steering section that cur-rently makes it illegal for an insurer torequire a specific repair shop.

The bills seek to ban insurancecompany requirements for collision re-pair parts and materials procurementprograms, clearly aimed to block Part-sTrader (see all cover stories this issue.)

AB 7234 AB 7234 amends the insurance lawdirecting that no insurer providingcollision or comprehensive loss shallrequire a repair facility to use a specificvendor or process for the procure-

ment of parts or other materials nec-essary for the repair of a motor vehicle.The proposed language below for thesubsection adds a prohibition againstspecifying vendors or processes. Thetext in all capitals includes the pro-posed amendment.

(a) Whenever a motor vehiclecollision or comprehensive loss shallhave been suffered by an insured, noinsurer providing collision or com-prehensive coverage therefor shallrequire that repairs be made to suchvehicle in a particular place or shop orby a particular concern, NOR RE-QUIRE A REPAIR FACILITY TOUSE A SPECIFIC VENDOR ORPROCESS FOR THE PROCURE-MENT OF PARTS OR OTHER MA-TERIALS NECESSARY FOR THEREPAIR OF A MOTOR VEHICLE.

SB 5786, introduced on June 14,prohibits insurers, providing collisionor comprehensive coverage of motorvehicles, from requiring repair shopsto use specific vendors or processesfor acquisition of vehicle repair partsand materials.

“These bills seek to clearly addresswithin the insurance laws of New York

State that insurance company require-ments to use specific-vendors should beillegal,” said Ed Kizenberger, executivedirector of the New York State Automo-tive Collision Technicians (NYSACT).

“Requiring repair facilities to usean online marketplace to purchaseparts or materials based upon the low-est price could force millions of dol-lars of business to move outside NewYork State. Repairers should continueto source parts and materials fromvendors they know and trust to bestserve the interest of the consumers.”

Kizenberger said that his associa-tion supports efforts around the countryto eliminate insurer mandates. How-ever, while insurers should understandthe potential impact mandating specificvendors or processes would have on acollision repairer’s efficiency whenfaced with multiple mandates, craftinglegislation that would seek to make themandates illegal is the only way to as-sure an efficient market.

“Historically, when it comes tomandated products and processes, in-surance companies don’t see the impactthese requirements have on the industryas a whole,” stated Kizenberger. “When

multiple insurers implement multiple re-quirements, everyone loses, and ulti-mately the consumer is left footing theadded cost created by the insurancecompanies that engage in this practice.”The bills add a prohibition againstspecifying materials purchases, goingbeyond making the specification ofparts procurement processes illegal.

“We wanted to make sure that thebill would address future concerns forthe industry,” Kizenberger added.“There are already examples of insur-ance companies requiring repair facil-ities to use specific brands of paint inother parts of the world.”

The bills have been referred tothe Assembly and Senate’s respectiveinsurance committees.


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20 years ago in the collision repairindustry (October 1993)A proposal was introduced at the Col-lision Industry Conference (CIC) inDenver to develop a third-party eval-uation of how shops are reimbursedfor refinish and other materials.

Steve Nadler, the owner ofPainters Supply Company in Denver,distributed a 2-page memo suggestingthat a national certified public ac-counting firm be hired to study thematerials reimbursement issue. Nadlersaid this study could address the ac-curacy of such practices as basing ma-terials reimbursement on paint laborhours, and establishing “ceilings” or“caps” on material charges.

No data has been identified that canbe used “to support the present reim-bursement methods,” Nadler’s memostates.

He suggested that a CIC subcom-mittee be formed to develop a requestfor proposals for the study from the

nation’s top CPA firms. Nadler saidthat this step would provide the in-dustry with estimates of the cost of the1- to 2-year project.

“I could say it’s not going to be$5,000. I don’t think it would be$500,000,” Nadler said when asked forsome projection of costs. “Ona full-fee basis, it might beanywhere from $100,000 to$150,000. But that’s purelyspeculative on my part, anddepends on the scope of theproject.”

Joe Landolfi of Kem-per Insurance said the studymay put to rest an issue thathas been hotly debated in re-cent years.

“We have listened forquite a while about paint ma-terials reimbursement prac-tices,” Landolfi said. “This may be achance to finally (establish) some de-finitive explanations and patterns.” But

Rick Tuuri of ADP said his companyis all too aware of the expense and riskof undertaking such a research project.ADP completed a massive revampingof its paint labor system several yearsago, only to meet with unprecedentedindustry resistance.

“This is just my personal opinion,not the ADP company line, but it justseems to me that you can spend an

awful lot of money studying some-thing to find an answer that nobodyreally wants to hear,” Tuuri said.

- The project, at least how Nadleroutlined it, does not appear to haveever moved forward.

15 years ago in the collision repairindustry (October 1998)Jack Gillis of CAPA perhaps bestsummed up a demonstration of non-OEM parts at the Collision IndustryConference (CIC) in October when hesaid, “Not one of our better days.”

The demonstration, arranged bythe CIC Parts and Airbags Committee,involved installing several non-OEMparts, including a hood and fender thatbore the CAPA-certified sticker, on anundamaged 1994 Toyota Camry. Fitand other problems with the partswere obvious, and after the demon-stration Gillis said neither of the partswould be listed as certified in the nextCertified Automotive Parts Associa-


October Retrospective on the Collision Industry

with David BrownShop Showcase

with Attorney Martin ZuradaBody Shop Law

with Domenico Nigro

The Community-Focused Body Shop

with Janet CheneyShop Showcase

with Frank SheroskyIndustry Business Beat

with Chasidy Rae SiskAssociations Assembling

with John YoswickHistorical Snapshot —John Yoswick is a freelance writer based in Portland, Oregon, who has a body

shop in the family and has been writing about the automotive industry since 1988.He is the editor of the weekly CRASH Network (for a free 4-week trial subscription,visit www.CrashNetwork.com). Contact him by email at [email protected].

Participants at the Collision Industry Conference (CIC) inthe fall of 1998 had a chance to evaluate OEM and non-OEM parts that were installed on a vehicle during theDenver, CO, meeting

tion (CAPA) directory.The fender, he said, had been de-

certified earlier in the week because ofmore than 20 complaints, includingone the week of the CIC demonstra-tion that was the second complaintafter the manufacturer had supposedlyfixed earlier problems with the part.

—Test fits of parts continued atCIC meetings over the next two years;OEM parts generally were found toscore higher in attendees’ evaluationsof fit and finish, but occasionally non-OEM parts were rated as equalto—and in one case, better than—theOEM.

10 years ago in the collision repairindustry (October 2003)In a special 2-year study of the auto-body repair industry, the CaliforniaDepartment of Consumers Affairs’Bureau of Automotive Repair (BAR)documented that, in nearly half thetransactions it studied, consumerswere charged for parts and labor theydidn’t receive.

The BAR inspected 1,315 vehi-cles that qualified as part of a pilotprogram mandated by legislation. Ofthose, 551, or 42 percent, had parts orlabor listed on the invoice that were

not actually supplied or performed.The average dollar amount of over-billing was $811.93.

“We’re disturbed by the patternof problems we found in some shops,”said BAR Chief Patrick Dorais.

– As reported in Autobody News.While the “42 percent” statistic re-ceived a lot of attention, the NationalAuto Body Council (NABC) noted (inthe article) that the vehicles inspectedwere not randomly selected among allthose repaired in California but ratherwere vehicles brought to the BAR byowners concerned about possiblefraud. “Considering the way the sam-ple was skewed by the BAR’s method-ology, it is more surprising that 57percent of the repaired vehicles showedno problems at all,” Chuck Sulkala ofthe NABC said at the time.

5 years ago in the collision repairindustry (October 2008)At least six shops in the Temple,Texas, area (about 70 miles north ofAustin, population about 60,000) eachnotified State Farm they no longerwould participate in the insurer’s Se-lect Service program.

Mark Holladay, manager of theDon Ringler Chevrolet body shop,

said the final factor contributing to hisdecision was what he viewed as StateFarm’s unwillingness to postpone atraining class (on how to process totallosses for State Farm) that the insurerwas requiring the shops to attend at atime when Holladay and his five tech-nicians were working 60- and 70-hourweeks repairing vehicles damaged in arecent hailstorm.

“All we asked from the very be-ginning was that we be allowed topostpone this (class) for a month ortwo until things kind of got workeddown after that hailstorm,” Holladaysaid. “We were all just at our max. Wewere told straight up, it was just,“No.”

He said he has not seen any sig-nificant change in the amount of StateFarm work the shop is doing. “I thinkit was a good decision,” Holladaysaid.

Gene Sneed, who along with hiswife Barbara, owns and operates B&GCollision and B&G Paint & Body inTemple, also removed his two shopsfrom the Select Service program. Thissummer, he and about eight othershops in the area began jointly spon-soring newspaper ads urging con-sumers to use the shop of their choice.

“They will promise you theworld in order to persuade you to goto one of their direct repair or networkshops,” one of the ads states about in-surers. “Don’t be steered wrong.”

—from CRASH Network(www.CRASHnetwork.com), October6, 2008.


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State Farm Insurance Company re-cently donated $70,000 to the Colli-sion Repair Education Foundation,pushing the company’s lifetime con-tributions to the foundation above $1million. The donation will help sup-port high school and technical col-lege school programs, students andteachers nationwide.

“State Farm’s support of colli-sion repair education is consistentwith our long-term commitment toeducation overall,” said Russ Hoff-bauer, State Farm claims director.“Collision repair education is veryimportant to State Farm and to ourcustomers. As technology in the au-tomotive industry changes rapidly, itis critical to have students enteringthe field and learning the latest repairmethods to be able to provide re-markable service to our customers.”

State Farm Donates $70K toCREF, Lifetime Over $1M

by Ed Attanasio

By realizing that there’s power innumbers, a small group of auto partsrecyclers from Texas, Arizona and

Minnesota startedTeam PRP (Pre-mium RecycledParts) in 2000, forthe purpose ofstrengthening theirrole in the marketand providing a se-ries of warrantiesand other assur-ances body shopscan take advantageof and benefitfrom. After start-ing with just 16 lo-cations, Team PRP

now consists of 134 independently-owned recyclers, covering every statein the Union and maintaining a com-bined inventory of approximately fivemillion parts, with 60 percent consist-ing of collision parts. Each member ofthe team has been added over theyears by invitation-only, after adher-ing to a stringent series of require-

ments and illustrating its ability to fol-low the group’s precepts.

Stacy Bartnik is Team PRP’s ex-ecutive director and a 24-year veteranof the collision industry and believesin the organization’s high standards,she explained. “It all starts with ournationwide standards, because bodyshops want to know that every one ofour members uses an identical assur-ance program that ensures a top levelof quality across the board,” Bartniksaid. “Through our nationwide label,repairers can rest assured that they’regoing to receive high-quality parts,delivered on-time and that their ordersare going to be correct.”

By getting recycled parts fasterthan their competition, body shops canreap a definite advantage by usingTeam PRP, Bartnik said. “All of ourmembers share inventories regionallyand nationally, with a nationwide de-livery system that is both fast and de-pendable. Immediate parts availabilitywith a 24-hour in-stock shipping pol-icy means collision centers get whatthey need quickly. And by paying anysupplements on our parts and commu-nicating with the estimator and re-

pairer there are never any unpleasantsurprises.”

By backing every recycled partsold by its members, Team PRP bringsan additional level of support to bodyshops that buy through the collective,Bartnik said. “Every single part pur-chased for an insurance claim comeswith a minimum six-month, unlimited

mileage parts and labor warranty andmost members also offer one-year,three- year and lifetime parts and laborguarantees. We also offer limitedrental car coverage in the case of war-ranty claim or delayed delivery. Everysheet metal part sold through TeamPRP comes with a lifetime guaranteeagainst corrosion perforation. In addi-

tion, we’re currently offering TeamPRP brand remanufactured enginesand transmissions, complete with 3year/ 100,000 mile warranties. Thebottom line is, we back all of our partsand aren’t going to abandon you ifthey’re not ideal for a repair.”

The parts are always guaranteedand any price quote from a Team PRP

member is also valid for aminimum of seven days. “Ifthe part we quoted has beensold to another customer,we’ll find you another part,”Bartnik said. “It’s all basedon availability, but with ourextensive nationwide cumu-lative inventory, it’s likelythat we’ll have the part foryou. Your call or e-mail willelicit a quick response from

one of our expert salespeople. Andwith our hassle-free return policy, ifyou get a part you don’t want, we’llreplace it without question.”

To find out more about TeamPRP and how they can help you to in-corporate more recycled and re-manu-factured parts into your repairs, visittheir web site at: www.teamprp.com.


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Bellavia Blatt announced today that asof Aug. 23, 2013, more than 420plaintiffs, up from 120, have joinedthe mass action lawsuit filed againstCarfax. The additional plaintiffs re-sulted in Carfax’s increased potentialliability of more than $150 Million, upfrom $50 million previously.

The lawsuit contends that Car-fax’s exclusive contracts with indus-try insiders—among them, Cars.comand AutoTrader.com forced auto deal-ers to sign costly agreements for ve-hicle history reports. The allegedillegal, anticompetitive practices en-abled Carfax to overcharge dealers.

Establishing a monopolistic cli-mate enabled Carfax to publish inaccu-rate and outdated reports. Customers’demands for free Carfax reports, as ad-vertised on television, compelled deal-ers to subscribe to Carfax’s service.Carfax’s anticompetitive practices in-creased costs to dealers, and ultimatelyconsumers, by hundreds of millions ofdollars.

The lawsuit demands a jury trialand seeks treble (three times) dam-ages, interest and attorney’s fees.Consequently, a small dealer would

potentially recover $105,000; amedium size dealer, $216,000; and alarge dealer, $324,000; plus interestand attorney’s fees.

Because of the potential gain,dealers are joining the lawsuit on adaily basis. The lawsuit’s key objec-tives are permitting competition andimproving the accuracy of the reports.

Leonard A. Bellavia of Mine-ola-based Bellavia Blatt is leading thelawsuit. Bellavia serves as generalcounsel to several national, state andregional dealer associations and rep-resents many of the largest dealergroups in the country. The firm hasextensive experience in auto-industrylitigation and serves as co-lead coun-sel in a lawsuit against the federalgovernment on behalf of 150 termi-nated Chrysler dealers.

“Dealers may still join the lawsuitagainst Carfax,” Mr. Bellavia said.“However, they must act quickly.”

To learn more about the lawsuitand to join it, call Bellavia Blatt at516.873.3000, and ask for Brad Stern.For more information, visit Dealer-Law.com. Carfax did not respond to arequest for comment.


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The Automotive Management Institute(AMI) and the Automotive Service As-sociation (ASA) have announced thatMark Steinke, production manager forRydell Collision Center, Grand Forks,N.D., is the recipient of this year’s EmilStanley Merit Award. Steinke hasworked in the collision repair industryfor more than nine years. He is cur-rently completing the necessary re-quirements to earn his AccreditedAutomotive Manager (AAM) designa-tion. When not working in the shop, hecontributes his time to various com-munity and industry organizations. Asthe scholarship recipient, Steinke willreceive $1,000 to be applied towardexpenses to attend educational sessionsand view the latest repair technologiesand equipment during the 2013 Inter-national Autobody Congress & Expo-sition (NACE), Oct. 16-18 in LasVegas. “I am honored to be selected asthe recipient of this scholarship.," saidSteinke. "I’m looking forward to thetraining and networking opportunitiesthat this scholarship makes possible.This opportunity will provide me withnew knowledge acquired from manyof the best instructors in the industry.”The Emil Stanley Award is made pos-sible by a grant from ASA to AMI.

AMI and ASA Give the 2013Emil Stanley Merit Award

CARSTAR Auto Body Repair Expertsshop owners gathered recently in LasVegas to celebrate the company’s 24thanniversary and honor its top perform-ers from across the U.S. Customerservice is a foundation of the culture,and CARSTAR says it maintains anaverage customer satisfaction index(CSI) rating of 98 percent or better.Each year, CARSTAR honors the topstores in customer satisfaction in threetiered sales levels. The CSI ranking re-flects the ongoing survey feedback re-ceived from customers based on theirCARSTAR experiences. For level 1,the winner was City CARSTAR inJanesville, WI, owned by MichaelBuggs. For level 2, the winner wasChampion CARSTAR Collision inHightstown, NJ, owned by Paul Edge-comb. For level 3, the winner wasUtzig CARSTAR Collision Service inJanesville, WI, owned by Al Utzig.

Said David James, vice presi-dent of marketing for CARSTAR,“Customer surveys and our own ob-servations tell us the three store own-ers and their employees receivingthese honors have generated an ex-ceptional level of positive awarenessin their communities and created re-peat customers for CARSTAR.”

Three CARSTAR Stores GetPraise for Outstanding CSI

Attorney Spearheads Suit Against Carfax


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San Diego-based Mitchell Interna-tional, which makes software for theauto collision industry, that it’s beingsold to private equity firm KKR & Co.of New York for an undisclosed price.However, Bloomberg News reportedthe deal valued Mitchell at about $1.1billion. Bloomberg cited sources whorequested anonymity.

Mitchell’s current owner, AuroraCapital of Los Angeles, agreed to sellthe company after several months oflooking for a buyer. Aurora, also a pri-vate equity firm, acquired Mitchell in2007 for more than $500 million.

Aurora acquired Mitchell in fromHellman & Friedman LLC. A littleover a year later, in April 2008,Mitchell and CCC Information Serv-ices announced an agreement tomerge the two companies. The Fed-eral Trade Commission filed suit toblock the merger and in March 2009,a judge ruled in favor of the govern-ment and the companies terminatedtheir agreement to merge.

Mitchell employs about 900workers in San Diego writing soft-ware that helps insurance companiesand body shops manage vehicle re-

pairs. It also makes software for han-dling medical insurance claims fromauto accidents. Finally, it has a prod-uct that helps workers’ compensationinsurers spot claims abuses.

Alex Sun, president and chief ex-ecutive of Mitchell, said the owner-ship change will help the companyexpand globally and boost its productline.

“The current management teamwill stay in place,” Sun said. “Therereally will be no change in the opera-tions or strategy of the company.”

Mitchell expects revenue of $350million to $400 million this year, Sunsaid. Mitchell has annual earnings be-fore interest, tax, depreciation andamortization (EBITDA) of about $90million, other sources said.

Three companies dominate theauto claims software business—Mitchell, Solera Holdings’ AudaEx-plore division in San Diego, andCCC Information Services ofChicago. In January, Leonard Green& Partners LP, another buyout firm,acquired CCC from Investcorp, oneof the Middle East's largest privateequity houses, for more than $550

million.The buyers face a consolidating

auto collision repair market that’s see-ing fewer accidents—thanks tobackup cameras and other accident-avoidance technology.

“That claims shrinkage isn’t overyet,” said Stephen Applebaum, sen-ior analyst at industry consulting firmAite Group. “So you have a lot of peo-ple in this business trying to figure outwhat they’re going to do next.”

For Mitchell, the strategy in-volves expanding into additional areasof property and casualty insurance.That approach mirrors what Mitchelldid over the past decade to break intothe injury claims software business.

The company also has growthpotential overseas. Today, the bulk ofits business is centered in NorthAmerica.

“There are some health care op-portunities because that industry ischanging rapidly, and Mitchell hassome good expertise,” Applebaumsaid. “Then there is the internationalpiece. Mitchell’s name is Mitchell In-ternational, but they are not really in-ternational.”

Mitchell has recently beefed upits international footprint through aninvestment in GT Motive, an autoclaims software firm serving Spainand other parts of Europe.

Mitchell International traces itsroots in San Diego to 1946, whenGlenn Mitchell managed a Chryslermotor parts distributorship and sawthat body shops needed better parts in-formation and pricing data. Hefounded Mitchell Manuals, an autoparts information publishing firm.

Mitchell died in 1971. The com-pany has been sold several times overthe years, as it morphed from papermanuals to digital software and data-bases. Today, Mitchell employs about1,700 people worldwide.

KKR has $83.5 billion in assetsunder management and invests a sig-nificant chunk of its money in tech-nology firms. The sale is expected tobe completed this winter.

KKR & Co LP and Warburg Pin-cus LLC were among the private eq-uity firms competing for Mitchell.Advent International Corp and Black-stone Group LP also participated inthe auction for Mitchell.

Mitchell International Sold to Asset Management firm KKR For Estimated $1.1B

In a journey that has lasted nearly halfa century, spanned the globe andelicited awe from generations of carlovers, Long Island’s Irv Gordon hasa phenomenal achievement in hissight: driving 3,000,000 miles in thesame shiny red 1966 Volvo P1800.

When he drove off the lot in 1966,Gordon began a movement that con-tinues to grow through the collectiveexperience and passion of currentVolvo owners. As Gordon approachesthe milestone, Volvo Cars of NorthAmerica (VCNA) is bringing the na-tion along for the journey with a spe-cial campaign in the months ahead.Consumers can visit 3MillionRea-sons.com for additional informationabout Gordon’s story and a map andimage gallery from his road trip.

“It’s not about getting to the threemillion miles; it’s about the trips thatgot me to the three million miles,”Gordon said. “I never had a goal to getto one million, to two million. I just en-joyed driving and experiencing lifethrough my Volvo.

“The best way to explore Americais by car,” Gordon added. “I challengeeveryone to go out and see as much aspossible. Find your own journey and rea-son to believe because you only have one

life to live. No matter how many roadsI’ve been on, there’s always one I haven’ttaken. That’s what makes it exciting.”

Gordon, a 74-year-old retired sci-ence teacher from Patchogue, N.Y., holdsthe Guinness Book of World Recordsrecognition for most miles driven by asingle owner in a non-commercial vehi-cle, and has driven more than 2.99 mil-lion miles in his shiny red Volvo.

“I bought my Volvo P1800 on aFriday, and immediately fell in love,”Gordon recalled. “I couldn’t stop driv-ing the car. It was a long holiday week-end, and I brought the car back to thedealership the following Monday forits 1,500-mile service.”

With a 125-mile round-trip dailycommute, a fanatical dedication to ve-

hicle maintenance and a passion fordriving, Gordon logged 500,000 milesin 10 years.

Besides being a Volvo, one of themain reasons the car has lasted so longis that Gordon has brought his P1800to the same certified Volvo technicianfor more than 15 years. Nino Gam-bino, a technician with an “A” ratingat Volvoville in Huntington, NY, thesame dealership where Gordon pur-chased his car in 1966, said, “BecauseIrv follows the owner’s manual andtruly cares for and loves his car, I haveno doubt he’ll reach three million. Irvalways says he takes better care of thecar than himself! And he’s fun to ridewith on trips because you don’t need amap.”

In 1998, with a mere 1.69 millionmiles, Gordon made the Guinness Bookof World Records for most miles drivenby a single owner in a non-commercialvehicle. In 2002, he drove the car'stwo-millionth mile down Times Squareto international media attention. Formore information on Gordon’s journey,visit 3millionreasons.com/timeline.

As Gordon points his car to itsthree-millionth mile, “I’m realizingthis will be a record that no one willsurpass,” he said. “So, these next few

thousands of miles will be special andsentimental for me. I’m looking for-ward to visiting my favorite places inbig, beautiful America – from nationalparks to roadside cafes, from the Pa-cific Coast Highway to small roadsthat are miles from the Interstate. Sendme an invite and maybe I’ll meet youfor a cup of coffee.”

Based on his calculations, Gordonplans to reach three million miles inAlaska this September. America’s lastfrontier is one of two U.S. states Gor-don has never visited and a fitting back-drop for his three million mile moment.

“For every mile Irv has logged inhis Volvo, there have been just as manyreasons why he’s been able to doit—from his meticulous care, on-schedule oil changes and his safe driv-ing practices—all the way to Volvo’slegendary attention to engineering,”said John Maloney, president andCEO of Volvo Cars of North America.

“A distant predecessor to today’smodels, the Volvo P1800 and Irv arethe living embodiment that Volvos areenduring and designed around you. Welook forward to following him on thisjourney, and finding ways to bring ourcustomers and car enthusiasts every-where along for the ride.”


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Long Island’s Irv Gordon is about to Pass the 3,000,000 Mile Mark in his 1966 Volvo

Irv Gordon made the Guiness Book of Recordsfor most miles driven back in 1998. Now thesame car has nearly doubled that mileage


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Anyone who has been involved withthe collision repair industry for anyamount of time knows how frustratingit can be when insurers refuse to paythe full amount billed for a repair.Many repairers count their losses andmove on to the next vehicle, but MarkSchaech Jr., co-owner of Mark’s BodyShop in Baltimore, MD, refuses to takethis insult lying down. While he andhis partner, his father, would prefer toavoid the necessity of taking legal ac-tion, he’s definitely “not taking it any-more!” Schaech knows this is acommon problem that shop ownersface, so he’s glad to share his experi-ence and advice with collision repair-ers across the nation.

In May 2013, Schaech won hisfirst short-pay lawsuit against GEICOfor $392.95. Since then, Schaech wona case against State Farm when the in-surer filed a replevin lawsuit (replevinis a legal remedy for a person to re-cover goods unlawfully withheld fromhis or her possession) against him,claiming his charges for storage wereunreasonable and not competitive

within the market area. Mark’s BodyShop was holding a car while await-ing payment, but when State Farm set-tled with the car’s owner and tooktitle, they refused to pay Schaech. Therepair contract was the deciding fac-

tor in Schaech’s victory, playing ahuge role “like it does in any othercase,” according to Schaech, whoadded that “it is so important that yourdocuments are in line.” In addition tobeing paid the full amount owed,Schaech was also reimbursed for hisattorney’s fees. He feels the victorywas very important since a loss wouldhave given State Farm, and possiblyother insurers, precedent for refusal topay on total losses.

Schaech credits the CCRE (Coali-tion for Collision Repair Excellence)for his knowledge of such legal actions,noting that “the first time I heard of ashop taking control of their businesswas at a CCRE meeting.” He followedthat up by hiring an industry consult-ant, Barrett Smith, of Auto DamageExperts and a good Maryland attorney,Anthony DiPaula to support his ef-forts to take control of his own busi-ness. He is also grateful to all of the“attorneys fighting a successful fight.”His next case involved an assignmentof proceeds, ammunition he obtainedfrom industry lawyer Erica Evers-man, but it doesn’t stop there! Schaechis currently pursuing numerous law-suits, including one involving an olderclaim of two short-pays from GEICOand a similar suit against State Farm.

The lawsuits that Schaech is cur-rently pursuing are older claims sincehe has not had any recent problemswith GEICO, which he attributes tohis successful case in May. Most in-surers are paying his operation costs,though labor rates with insurers refus-ing to pay his full labor rate continueto be a problem. The one exception he

notes is State Farm who always leavesa short-pay, but for now, the customersare paying the difference. Schaech isnot taking any additional assignmentsof proceeds at this time as he has sev-eral in progress.

Schaech notes, “I would say that90% of the time, insurers in our marketrefuse to reimburse our customer fortheir entire repair bill. These short paysare for reasonable and necessary ratesand procedures required to repair ourcustomers’ vehicles to pre-loss condi-tion to the best of human ability. Itseems that the larger the carrier, theworse the behavior. It seems like asopposed to fairly paying claims, thesecarriers would prefer to spend thosedollars on advertising campaigns.”

Regarding what may cause him tohesitate before filing a lawsuit, Schaechadmits that it can be expensive andtime-consuming to sue an insurancecarrier, especially when the short-paysare small amounts, but one way to com-bat that is to pile several claims into onecase, making it more efficient. His ul-timate goal is to handle these cases onhis own; as he attends the trials, he iseducating himself via his attorney in


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Mark Schaech Sr. with his son Mark, Jr.

hopes of being able to handle futuresuits in small claims court on his own.“All I will have to spend is time whichI’m more than willing to do in order toensure my customers are being takencare of,” Schaech notes.

The short-pay lawsuit in Maywas the first that Schaech actually pur-sued to trial. Because these types ofcases are new to the Maryland courtsystem, “it takes a bit of educating thecourts that we are contracted by ourcustomers to provide a proper and saferepair and do not have any contractwith any insurance companies. Butthe misconception is that, because theinsurance company is paying the bill,they have a right to inject themselvesinto the repair process when this issimply not the case. Because we arethe experts, we carry all of the liabil-ity associated with the repair. We arethe ones who have to provide a war-ranty to our customers and stand be-hind the repairs. We are the ones whoknow our cost of doing business.Therefore, only a shop can know whatto charge for a given repair. The dutyof the insurance company, by contract,is to make the customer whole, not tocontrol the price or dictate the repairmethodology, all while not sharing in

the liability for those repairs.”Though most insurance compa-

nies insist that they don’t pay for cer-tain operations or that a shop isovercharging, Schaech insists, “thecollision repair community knows thatthese are word tracks that insuranceadjusters have been trained to use foryears, and in most cases, these carri-ers do pay for that, and the shops thatare asking to be compensated are notthe only ones asking for these opera-tions and rates.”

Schaech was happy when thejudge ruled in his favor: “It felt goodthat the Judge got it. I also feel confi-dent that the courts will continue to findin our favor as courts are in many otherstates all over the country. It takes aclose look at the law and the insurancepolicies to realize that determining thecost of repairs and the repair methodol-ogy is not the business of insurance. Inmany policies, the insurance companyhas the option to take the customer’s ve-hicle and repair it themselves, but ifthey chose that option, they would haveto accept all of the liability that goesalong with the repair which is why theydo not select that option.”

As a proud member of CCRE andSCRS, Schaech strongly encourages

other collision repair experts to stand upfor their rights. “I would encourageother shop owners to know their statelaws and get a good attorney to workwith. There are many shop ownersacross the country who have beenforced to go legal, and these repairershave been an inspiration and have al-ways made time to answer my questionsand lend advice. There is unbelievablesupport available to those who want tolearn.” Schaech’s desire to become moreinvolved has also led him to become in-volved with the Washington Metropoli-tan Auto Body Association (WMABA)where he sits on the Board of Directors.

Schaech also assures other shopowners that the trial itself was not verydifficult. “It was easy for us to explainwho the expert repair professional isand who decides what the Final Billshould be, and the judge agreed thatbecause GEICO doesn’t know ourcosts, they cannot possibly determinewhat we are able to charge.”

It is also important to note thatSchaech’s lawsuit has not really af-fected his relationship with GEICO orany other insurers. His problem isn’twith the individuals that he deals withbut the company’s policies on han-dling claims.

Schaech also takes issue with hisstate’s laws regarding insurance com-panies breaching contracts and howthis affects consumers’ rights.

“If a Maryland Insurance Com-pany breaches their contract with thepolicy holder, and the consumer wantsto hold them accountable in a court oflaw, the consumer is not able to recoverattorney’s fees in our state. This reallyinhibits consumers from taking action,even when it is obvious that they are inthe right… I wish the carrier wouldspend some of those billions of dollarsthey spend on marketing to properlycompensate consumers for quality andsafe repairs. I see a lot of poor repairsthat have been completed in shops whowere not properly compensated for re-pairs, and this is a consumer problem,especially as it relates to consumers’safety and the value of their vehicles.”

When asked what measuresshould be enforced to prevent the ne-cessity of short-pay lawsuits, Schaechnotes, “If insurers would get back tothe business of insurance, selling poli-cies and paying claims, and stay out ofthe collision business, we would nothave to go this route. The reality isthat, by law, consumers have the right


See MD Short Pays, Page 62

to choose the body shop that they feelwill do the best job, and by contract,the insurance company is supposed toindemnify the policy holder whenthere is a loss. So, I say ‘just pay thebill Mr. Insurance Company.’”

In 1975, Schaech’s father openedMark’s Body Shop in a two-baygarage. After six years of refinishingcars through high school and college,Schaech managed the family businessfrom 1999–2002 when they movedinto their current 17,000 square footfacility. At that point, Schaech Jr. be-came his father’s partner.

Though Mark’s Body Shop re-pairs approximately 1000 cars annu-ally, grossing around $3 million insales, they do not participate in anyDRPs, but that wasn’t always thecase. “There was a time when we par-ticipated in as many as five DRP pro-grams, but over the years, theseprograms developed into bargainbasement repair programs. We wereasked to use more aftermarket andjunk yard parts which we find to be alower quality alternative to new OEM

parts. We were instructed to utilize re-manufactured wheel and junkyardsuspension components which we be-lieve to put our customers in harm’sway. Finally, we were asked to workso cheaply that it became difficult toinvest in new equipment and trainingwhich is imperative to repair today’smodern vehicles.”

To shops that are currently facingdifficulties obtaining full payment on re-pairs, Schaech offers the following ad-vice: “There are numerous organizationsand individuals in our industry who re-ally care about consumers and repair fa-cilities. These leaders are only a phonecall or email way and willing to providesound advice when a shop owner or con-sumer needs some sound advice.”

“The reality is not all shops arethe same; we all have different costs,different levels of quality, differentequipment and training, different cer-tifications, and different fixed costs. Itjust doesn’t make sense that we can allwork for the same price.”

Mark’s Body Shop4025 Mortimer Ave.Baltimore, MD 21215410-358-5155www.marksbodyshop.com


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MD Short PaysASA’s Dan Risley has made ASA’sposition clear that it is against allforms of direct repair program re-quirements to use specific suppliers orproducts. In a letter dated September11 to Ed Rust Jr., chairman of theboard and chief executive officer ofState Farm Mutual, Risley commendsthe U.S.’s leading private passengerautomobile insurer for its past deci-sion to eliminate its requirement touse a specific estimating platform byits direct repair shops. The associationalso acknowledges State Farm’s scor-ing system that promotes competitionamong Select Service repair facilities.

However, the association comesout firmly against State Farm’s recentrequirement to use the PartsTrader on-line parts marketplace, stating it willincrease a State Farm shops cycle time,negatively impacting customer satis-faction and increasing the insurancecompany’s costs in the long run.

The letter states, “ASA would liketo acknowledge State Farm as one of thefirst companies in the country to notmandate that a collision repair facility uti-lize a specific estimating platform. Formany years, several top 10 insurance car-riers required a specific estimating plat-form to participate in their direct repairprogram. In addition, State Farm was oneof the first to implement a scoring sys-

tem that allows Select Service repair fa-cilities to compete against each other in atransparent and real-time environment.These decisions clearly elevated StateFarm’s position in the industry as athought leader and facilitated positivechange. The letter continues, “In light ofthe recent announcement of the nationalrollout of Parts Trader, ASA is taking afirm stance against insurance companymandates that limit a repairer’s right tochoose their vendors, distributors andsuppliers.”

ASA includes three suggestionsfor State Farm to consider as a startingpoint to address the industry’s con-cerns.● Immediately eliminate mandates re-quiring collision repair facilities to pur-chase or source parts using a specificthird-party vendor.● Encourage the use of these types ofprograms on a voluntary basis with afinancial incentive.● Heavily weight your scoring systemto reward repair facilities that are lead-ing their respective markets in partscost, alternative parts usage, length ofrental and cycle time. All of which arekey operational metrics that drive over-all repair costs.

The complete text of the letter canbe read and downloaded at www.auto-bodynews.com.

ASA President Risley Writes to State Farm’s Ed Rusk Jr.


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Three years after an emotional run atIndianapolis Motor Speedway, Indy-Car Series star Dario Franchitti hasbeen selected by The Henry Ford toonce again drive one of Jim Clark’smost famous race vehicles in the 2013edition of the Goodwood Revival inEngland, September 13-15.

The popular Scottish driver andthree-time Indianapolis 500 winner,was previously chosen to drive thishistoric car in 2010 when it returnedto the Indy track for the first timesince Clark drove the car to victorythere in 1965.That victory, the first fora rear-engine car, and the first Indywin for Ford Motor Company, helpedchanged the sport of IndyCar forever.

“We are thrilled that Dario ac-cepted the offer to drive the Lotus atGoodwood,” said Christian Overland,executive vice president of The HenryFord. “We know how much the carmeans to him, and also how much thechance to help honor his hero JimClark means to him and his family.”

“The drive at Indy was a high-light of my life,” said Franchitti, whocurrently drives for Target Chip

Ganassi Racing. “I’ve won the Indy500 three times, but to drive that carthere that day was something very,very special. Back in 1965, that carwas cutting edge technology. It stillfeels very sharp and is bloody quick,especially in a straight line. You open

up the four-cam Ford and hear thatglorious noise, it’s just incredible. Iwas driving the car that day in Indyvery much below its capability be-cause it is a one-off, special piece ofhistory. The drive that day was a verypersonal thing for me.”

In 1965, the Lotus-Ford, drivenby Scottish-born Formula One star

Jim Clark, won the Indianapolis500. The Henry Ford acquired thecar in 1977 and in 2009, the Fordengine was removed from the vehi-cle and shipped to Indianapolis,where conservation work began atRace Car Restorations, Inc. The

chassis was restored byClassic Team Lotus runby Clive Chapman, son ofColin Chapman, founderof Lotus.

The creation of theLotus-Ford stands as anexcellent example of inno-vation and collaboration.Lotus and Ford MotorCompany were ultimatelybrought together in theearly 1960s by legendary

American road-racer Dan Gurney. Atthat time, Gurney thought that thesleek, front-engine American Indi-anapolis race cars could be defeatedby proper application of rear-engine,European Formula One technology.He introduced Ford engineers toColin Chapman, founder of Lotus andone of the world’s most innovative

race car builders. The result was alightweight, aircraft-inspired Lotuschassis, with four-wheel independentsuspension and powerful rear-mounted Ford V8 engine. The Lotus-Ford effectively killed the traditionalIndy car and established a new para-digm for American race cars.

“The drive this weekend atGoodwood will be about demonstrat-ing the car for all those fans of Jimmy,and I am excited about doing it,” saidFranchitti, currently seventh in the In-dyCar Series standings with two racesleft. “Goodwood is a fast, fast trackthat hasn’t changed much since backin the day, so I’ll be taking it veryeasy. It’s a demonstration run with abunch of cars that were very importantto Jimmy’s life and his career. I can’ttell you how privileged I feel to beable to do this.”

Franchitti will take the Lotus38/1 on the course during the JimClark Tribute Parade throughout theweekend. The Lotus-Ford 38/1 Indycar will be on display all weekend atGoodwood in the paddock area of theevent.


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Franchitti Reunites with The Henry Ford and the Jim Clark Lotus-Ford 38/1 IndianapolisWinner as Part of Clark Tribute at 2013 Goodwood Revival


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The SEMA Show annually features aNew Products Showcase to provideexhibitors with a designated displayto highlight new product debuts,yearly updates and the latest versionsof their best sellers. All of the prod-ucts entered into the New ProductShowcase are photographed and in-clude product details and key infor-mation on how to locate and contactexhibiting manufacturers. Buyers canobtain a wealth of product informa-tion that will be relevant well into2014 by taking advantage of the freescanners available. Provided via “FreeScanner Pickup” booths locatedaround the New Products Showcase,buyers can scan all of the productsthey are interested in, while examin-ing and researching additional prod-ucts exhibitors have to offer. There isno limit to the number of scans buyerscan conduct, and the information isgathered electronically, allowing forit to be retrieved or printed immedi-ately. With new exhibitor and productinformation in hand, buyers can con-centrate on making deals and spendmore time on the Show floor con-necting with existing partners andnew suppliers. More information isavailable at www.SEMAShow.com.

Best Way to Research NewProduct at SEMA Show

Caliber Collision Centers contin-ues its aggressive expansion withthe announcement today that it hasacquired Mattocks Brothers Auto-body in Denver, CO and opened anew location in Tustin, CA.

“Today’s opening of two newCaliber locations in Colorado andCalifornia reinforces our commit-ment to add centers that providethe operational consistency, cus-tomer focus and cost managementour clients require in today’s com-petitive insurance marketplace,”said Steve Grimshaw, CEO of Cal-iber Collision Centers.

Caliber Collision’s new 13,000square foot West Denver locationopened today at 4171 MorrisonDrive, Denver, CO. Caliber’s new16,000 square foot Tustin locationalso opened today at 5 Auto CenterDrive, Tustin, CA.

“Our new Denver and Tustincenters increases Caliber Colli-sion’s locations to 132 as wecontinue to restore our customersto the rhythm of their lives inColorado and California,” addedMark Sanders, Caliber Colli-sion Centers’ Chief OperatingOfficer.

Caliber Collision Opens TwoNew Locations in CO and CA

The Automotive Service Association(ASA) has provided independent re-pairers access to a web-based advo-cacy program at the federal and statelevels for a number of years. Afterresearching various online advocacyprograms, ASA has been working toremodel its legislative and regulatorywebsite, www.TakingTheHill .com.The new website is more user-friendly and designed to move infor-mation quickly to members and topolicymakers. ASA members are en-couraged to visit the newly designedsite and sign up for free legislativealerts. “With our Washington, D.C.,office on Capitol Hill looking out forrepairers, the industry looks to ASAfor grassroots advocacy and infor-mation. Redesigning this site is onemore step in the association’s com-mitment to provide members withthe tools they need to stay informedand be heard on Capitol Hill,” saidAngie Wilson, ASA’s vice presidentof marketing and communications.The TakingTheHill.com website re-design was donated by Autoshop So-lutions, the website design andInternet marketing agency that re-cently redesigned ASA’s main web-site, www.ASAshop.org.

ASA Launches New Website,Improves Repairer Tools

Automotive instructors are invitedto attend Inside AAPEX for Auto-motive Instructors on Wednesday,Nov. 6 and Thursday, Nov. 7 at theAutomotive Aftermarket ProductsExpo (AAPEX) in Las Vegas, Nev.Attendees will learn about newtechnology, meet with manufacturerproduct managers and trainers, andearn National Automotive Techni-cians Education Foundation(NATEF) credit hours. The programfeatures education sessions offeredas part of the AAPEX LearningForum that address new technologyand timely repair issues including“Direct Injection Update,” “WalletFlushing?” “New Exhaust Tech-nologies Including the New CleanDiesel,” “Wiring Diagram ColorCoding: A Tool for UnderstandingElectrical Circuits” and “TPMSSmart Maintenance and Repair.” Allof the sessions have been approvedby NATEF for continuing educationcredit hours. Each session is ac-credited for one hour. Attendancecertificates will be available at theconclusion of each session. Instruc-tors will have access to the AAPEXshow floor to view products andtalk with manufacturers.

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The cost of buying and operating acar varies from state to state and youmight be surprised to learn whichstate is the most expensive.

Driving in Georgia will take abite out of your pocketbook. A newsurvey by BankRate.com has foundthat Georgia is the most expensivestate in the U.S. to operate a motorvehicle, followed by California.Oregon is said to be the most af-fordable for those hitting the roadseveryday.

The cost of gas, insurance, re-pairs, taxes and fees are all factoredinto what it costs Georgia residentsan average of more than $4,000 pervehicle per year.

Residents of Oregon benefitfrom the lack of a state sales tax, lowauto insurance and the fact that theydrive 16-percent fewer miles thanthe national average. Those factorsland the state on the bottom of thelist at $2,204 annually.

The national average for oper-ating a car is $3,201 according to thesurvey.

GA and CA Most ExpensiveStates to Own a Car

As an advocate of the ‘It Can Wait’movement, the National Auto BodyCouncil issued a call for its membersand others in the collision industryto join the nationwide effort to curbtexting and driving on Drive 4Pledges Day, September 19. Drive 4Pledges Day is a national day of ac-tion that aims to have every drivermake a personal commitment tonever text and drive and to also re-cruit others to do the same. TheNABC is urging drivers to make thepledge online at go-att.us/NABC, adedicated link created by AT&Tspecifically for the National AutoBody Council’s efforts. The cam-paign is a collaborative effort be-tween major wireless carriers AT&T,Verizon, Sprint and T-Mobile. Aspart of the nationwide Drive 4Pledges Day, NABC member com-panies will be implementing a vari-ety of promotional events to educateemployees and the public—particu-larly teens—about the dangers oftexting while driving. While textingis by far the biggest distraction onthe road, NABC notes that any dis-traction is dangerous, includingphone calls, reading e-mails, eating,changing CDs, fixing makeup, etc.

NABC Partners with ATT onAnti-Texting Campaign

According to the latest data from theU.S. Department of Labor Bureau ofLabor Statistics (BLS), the total pro-duction for the auto body repair in-dustry rose in June after declines inboth April and May. The total aver-age weekly production in June in-creased to 6.59 million man hours.The industry’s total production,which we define as the total averageweekly hours by month multiplied bythe total number of production andnon-supervisory workers employedeach month, closed June, 2013 at6.59 million man hours. This repre-sents an increase. from the 6.5 mil-lion man hours reported in May.Production hours in June 2013 stoodat 1.4 percent above 2012. The de-cline came chiefly from an increasein average hours worked each weekby production employees, up to 38.7hours in June from 37.4 hours inMay. The number of production andnon-supervisory employees actuallydeclined in June to 170,300 from173,800 in May. Added together, theaverage weekly production over thepast twelve months now totals 78.96million man hours. That is 3.5 per-cent higher than the 12 month total ayear ago.

BLS Says Collision IndustryProduction Rose in June

Daimler plans to start selling a self-driving car by 2020 to help its Mer-cedes-Benz brand regain the topspot among premium carmakers, de-velopment chief Thomas Webersaid. “We want to be the first tolaunch autonomous functions in pro-duction vehicles. You can be sure wewill accomplish that in this decade,”Weber said. Carmakers and suppli-ers are working on ways to makedriving safer and more comfortablethrough automation and the race ison to bring the technology to themass market. Daimler is focusing onso-called highly automated driving,in which cars master situations suchas cruising the highway or maneu-vering through traffic jams while thedriver relaxes. The car would recog-nize difficult situations such as deal-ing with traffic lights or urbandriving among pedestrians and cy-clists, and hand control back to thehuman behind the wheel. Daimler isnot alone in its ambitions. Nissan,for example, has also announcedplans to launch a car completelyguided by computers this decade.The technology was shown at theFrankfurt auto show, with produc-tion estimate to take 10 to 15 years.

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Sherwin-Williams Automotive Fin-ishes A-Plus™ Network and Vehi-cleOwnersGuide.com, an onlineprovider of blueprint documents thathelp collision repair shops identifyany missed revenues, are providingaccess to the provider’s OpenClaims Gateway™, a full featureclaims portal that includes claimsworkflow, dispatching, estimate re-view, vendor e-Coupons, consumertranslations and analytics. The newdispatching system is already popu-lated with the A-Plus Network’sleading collision repair facilities andwill provide a turnkey repair net-work for insurance companiesthroughout the U.S. and Canada.The Open Claims Gateway portalwill dispatch cars to A-Plus shops,and then these facilities and insur-ance companies can use the systemto manage the claims. “Open ClaimsGateway will be provided free ofcharge to A-Plus Network facilities,and there is no contract to sign. SaysTroy Neuerburg, Director of SalesExcellence at Sherwin-Williams Au-tomotive Finishes, “This system of-fers numerous benefits.” Forinformation call call 1-800-SWUL-TRA (1-800-798-5872).

The Opening General Session, spon-sored by Axalta Coating Systems,will now offer two concurrent ses-sions, one for Collision, one for Me-chanical, that will combine the bestcomponents of a keynote presenta-tion with the industry-specific focusof a forum. The forum’s headliningguest speaker will be Mike Ander-son. Admission to the new OpeningGeneral Session/Industry Forums areincluded in all registrations, and allattendees are invited to attend.

“Vastly different from pastyears, we’ve completely redesignedthe Opening General Session and at-tendees can expect a much differentexperience. Mike Anderson is ex-tremely well-respected, and atten-dees are going to want to hear hismessage,” says Dan Risley, ASApresident. “The format of this keyevent also aligns with our mission tocreate exceptional value for our au-dience and provide invaluable net-working opportunities for theindustry and by the industry.”

“Axalta Coating Systems is ho-noured to sponsor this year’s Open-ing General Session,” said MikeBennett, North America marketingdirector, Axalta Coating Systems.

ASRW’s New Format Will Be‘Vastly Different Experience’

Mitchell has announced the generalavailability of RepairCenter™ Rep-utation Manager. The new packageoffering combines real-time text andemail updates with advanced cus-tomer insights from satisfaction sur-veys and social media data toimprove the repair shop and vehicleowner processes. The tool shouldhelp increase repeat business and re-ferrals by providing actionable in-sight into the customer experience.By adding online customer satisfac-tion surveys and incorporating com-prehensive reporting and analyticstechnology, repair shops can betteridentify steps during the repairprocess that can be improved. “Cus-tomer retention and business growthgo hand-in-hand, but until recently,repair shops haven’t had the breadthof automated tools needed to im-prove upon the customer experi-ence,” said Anlin Sethi, SeniorManager of Product Management,Auto Physical Damage solutions.“By incorporating real-time interac-tion and engagement, alongside ro-bust survey analytics, ReputationManager allows repair shops to im-prove their reputation and buildstronger customer bases.”

Mitchell Announces its NewReputation Manager Package

ABRA Auto Body & Glass helpedto raise more than $30,000 duringthe first annual Bent Creek CharityGolf Tournament to benefit Help-ing Paws Inc. More than 100golfers and guests gathered at TheBent Creek Golf Course in EdenPrairie, MN, on August 12 to sup-port Helping Paws of Hopkins,MN, according to officials.

This inaugural golf event ispart of Helping Paws’ initiative toconnect the healing power of serv-ice dogs with disabled veterans suf-fering from Post Traumatic StressDisorder. The cost of raising andtraining a service dog is estimatedat $30,000. These canine compan-ions can help to transition returningveterans back to civilian life.

“We are absolutely thrilledand proud to partner with importantcharitable organizations like Help-ing Paws,” said Duane Rouse,president and CEO of ABRA. “Werecognize the amazing accomplish-ments of our military veterans whoserved with courage and their un-ending drive to make a differencefor our country. Supporting thesetraining dogs to help heal our he-roes is a privilege.”

ABRA Helps Raise $30,000for Veterans’ Service Dogs

Sherwin-Williams and OnlineBlueprint Provider Team Up


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Chrysler Group LLC reported U.S.sales of 165,552 units, a 12 percentincrease compared with sales in Au-gust 2012 (148,472 units), and thegroup’s best August sales since2007. The Chrysler, Jeep®, Dodge,Ram Truck and FIAT brands eachposted year-over-year sales gains inAugust vs. a year ago. The RamTruck brand’s 29 percent increasewas the largest sales gain of anyChrysler Group brand during themonth, now 41-consecutive gains.

Chrysler’s Great August Shares of Group 1 Automotive Inc.are at a 52-week high of $61, hit onSeptember 13, driven by solid sec-ond quarter results, accretive acqui-sitions and a marked recovery for itslargest customer, Toyota MotorCorp. The $1.38 billion company isone of the country’s largest automo-tive retailers, selling new and usedcars and light trucks; vehicle financ-ing, service and insurance contracts;provides automotive maintenanceand repair services; and sells parts.

Group 1 Auto Hits New HighsGM is recalling certain model year2011-2012 Chevrolet Cruze vehicleswith 1.4L DOHC gas turbo enginesand 6T40 front wheel drive automatictransmissions and an electric vacuumpump to provide supplemental vac-uum for brake assist, when needed. Inthe affected vehicles, the pump maynot activate, resulting in an intermit-tent reduction or loss of brake assist.A loss of braking assistance will re-quire extra pedal force and/or distanceto bring the vehicle to a stop.

GM Recalls Some CruzesChrysler is recalling certain modelyear 2012 RAM 3500 trucks manu-factured May 4, 2012, through Au-gust 7, 2012; and model year 2012RAM 4500 and 5500 trucks manu-factured May 3, 2012, through Au-gust 7, 2012. Due to a loose snapring inside the transmission, theremay be a loss of power transferthrough the transmission to thewheels. An unexpected loss of powertransfer may increase the risk of acrash.

Chrysler Recalls 2012 RAMs


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