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Lear's subsidiaries outside North America would not be part of the bankruptcy filing.
The company has received commitments from a syndicate of secured lenders, led by J.P. Morgan and Citigroup, for $500 million in new money debtor-in-possession financing.
The CARS law calls for the turned in vehicle to be destroyed. This should translate into a jump in the number of vehicles that will be delivered to auto shredders.
The nation's franchised auto dealers will play a critical role in educating consumers about the CARS, aka Cash for Clunkers voucher program. Moreover, because a limited number of vouchers - valued at up to $4,500 - will be given to automobile buyers before November 1st, it is estimated that car buyers will move quickly to take advantage of the program. Dealix, a division of Cobalt and the largest provider of new car and used car automotive sales leads to dealers and car manufacturers, and Edmunds.com, the premier online resource for automotive information, have teamed to provide resources to help dealers prepare to take action on the new law.
More offcial information will be released shortly on the cars.gov website.
The new CARS law allows consumers to receive up to a $4,500 voucher to trade in their old gas guzzlers for a more fuel-efficient new vehicle. Qualifying vehicles are considered passenger cars, mini vans, SUVs and small light-duty trucks that get less than 18 mpg, and large light-duty trucks that get less than 15 mpg city/highway combined. For passenger cars, if the new vehicle is at least four mpg more fuel efficient than the old vehicle, consumers will receive a $3,500 voucher toward a new vehicle. If the new vehicle is at least 10 mpg more fuel efficient than the old vehicle, the voucher is good for $4,500.
CARS is the acronym for "Consumer Assistance to Recycle and Save Program," and is Title XIII of Bill H.R. 2346. The program will receive an initial allocation of $1 billion funded by the U.S. government as a part of a War appropriations bill. The program is set to begin on July 1 and last through Nov. 1. CARS will be implemented by the National Highway Traffic Safety Administration (NHTSA), which has 30 days from the approval of the bill to post all program details online.
Automakers are very supportive of the new bill.
Suzuki issued a press release saying: ""We applaud President Obama on signing this extraordinary bill, which will help provide financial relief for Americans across the country and further assist with the economic recovery of the automotive marketplace," said Kevin Saito, president of American Suzuki. "With an added incentive for new car buyers to focus on fuel-efficient vehicles, Suzuki is poised for an increase in dealer traffic thanks to the CARS program. Better yet, we not only offer these people more efficient vehicles, we offer cars, trucks and SUVs that are fun to drive and look great on the road."
For more information on obtaining a CARS voucher for purchase of a new vehicle, consumers can visit www.cars.gov
As part of a phased production ramp-up, the following assembly plants are scheduled to resume production at the end of the month:
Sterling Heights Assembly Plant (Sterling Heights, MI) – Chrysler Sebring and Dodge Avenger
Warren Truck Assembly Plant (Warren, MI) – Dodge Ram and Dodge Dakota
St. Louis North Assembly Plant (Fenton, MO) – Dodge Ram
Toledo Supplier Park (Toledo, OH) – Jeep® Wrangler and Jeep Wrangler Unlimited
Brampton Assembly Plant (Brampton, Ontario, Canada) – Chrysler 300, Dodge Charger and Challenger
Windsor Assembly Plant (Windsor, Ontario, Canada ) – Chrysler Town & Country and Dodge Grand Caravan
Toluca Assembly Plant (Toluca, Mexico) – Dodge Journey and Chrysler PT Cruiser
Chrysler Group's Powertrain and Stamping facilities that supply these assembly plants will also be operating. Chrysler's Conner Avenue Assembly Plant, which builds the Dodge Viper, resumed production on June 15.
All Chrysler Group plants will be closed during a previously announced two-week Summer Break the weeks of July 13 and 20.
Re-start of production at other Chrysler Group assembly plants will be announced at a later date.
CarGurus(R) (http://www.cargurus.com/), a leading online automotive community, announced the results of its latest survey of 1,693 online automotive consumers worldwide.
When asked which of the four GM brands they want to survive planned elimination, forty-four percent of respondents selected Pontiac, and 27% chose Hummer. Saab was chosen by 20% of respondents, and Saturn by 9%.
Total deliveries amounted to 556,700 compared to 548,500 the same month a year ago.
For the first five months, VW sold 2.49 million vehicles, down 7 percent, according to the company. Worldwide, the auto market was down about 20 percent in the period.
In North America, VW vehicle sales were 42,200, down 10.7 percent, the company said. VW has said it wants to triple the number of cars it sells in the United States, hitting 1 million by 2018.
Now generally referred to as Cash for Guzzlers, a downsized Cash for Clunkers bill is on its way to becoming law as of June 18. Approved 91-5 in the Senate the bill retains its original offer of $3,500 to $4,500 cash vouchers given for about 3½ months to consumers who trade in their cars for new, more fuel-efficient vehicles. The program would go into effect a month after the president signs the bill and extend until Nov. 1.
Congressional Budget Office data suggest the bill would result in the sale of 150,000 new cars, said Nichole Francis Reynolds, chief of staff to Rep. Betty Sutton, D-Ohio. Sutton sponsored the original bill. Scrappage programs in Western Europe have led to 500,000 additional passenger vehicles sold in the region from January through May 2009, according to recent analysis by R. L. Polk & Co. Programs have been implemented in Austria, France, Germany, Greece, Italy, Portugal, Spain, the Netherlands and the United Kingdom. "Nearly one million additional vehicles would be sold in the U.S. in 2009. We'll watch the debate unfold as it continues to be reviewed," said Lonnie Miller, director of industry analysis at Polk.
Chrysler's three vehicle brands, Chrysler, Dodge and Jeep, as well as the Mopar parts unit have new presidents of their operations. The new model resembles that of Fiat Group Automobiles, where Fiat, Alfa Romeo and Lancia brands each have executives responsible for their own financials.
Jim Press, formerly Chrysler LLC Vice Chairman & President, will be Deputy CEO and Special Advisor to CEO Sergio Marchionne.
Chrysler and Fiat announced June 10 that the two automakers have finalized their strategic alliance, forming Chrysler Group LLC to be headed by Fiat's CEO Sergio Marchionne. Marchionne is a lawyer with both Canadian and Italian citizenship. Robert Kidder, an engineer and a former CEO of battery maker Duracell and consultant to Ford, is to be named chairman.
Chrysler Group LLC, will be owned 20% by Fiat, 9.85% by the U.S., 2.46% by Canada and 67.69% by a United Auto Workers union retiree health care trust fund. "This is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole," Marchionne stated.
The US Supreme court rejected appeals filed by three Indiana pension funds, a coalition of consumer groups, and a few individuals, to block Chrysler's sale on June 9.
Chrysler's assets can now be sold to the Fiat-led (new) Chrysler Group LLC for approximately $2 billion. This move brings the fast track bankruptcy proceding essentially to an end.
Chrysler case is viewed as precedent for GM, which is attempting a similar "quick rinse" strategy to emerge from Chapter 11.The Supreme Court said those seeking to put the deal on hold "have not carried that burden" (to justify action). The court's action was not a decision on the merits of the underlying legal issues, the justices said, meaning they may or may not concur if GM's procedings are challenged, however there was no recorded opposition to lifting the stay by any of the justices.
The action represents a major victory for the Obama administration. White House spokesman Robert Gibbs said "the actions that this administration has taken now have kept plants open, have saved jobs," Gibbs said.
To read Justice Ginsburg's previous one page stay order--now lifted--- click here.
Separately Chrysler dealers had petitioned the bankruptcy court for more time to unwind their businesses, and keep them open in order to clear inventory and provide warranty services, but on June 9---the day they were scheduled to close---Judge Arthur Gonzalez ruled the affected dealers will no longer be able to sell new Chrysler cars, provide repairs or use the Chrysler name or trademark. Judge Arthur Gonzalez said his order, which allows Chrysler to reject all 789 dealer contracts, was effective immediately.
The U.S. General Services Administration is one step closer to fulfilling its responsibilities outlined in President Obama’s economic recovery legislation. On June 1, 2009, the agency ordered 14,105 fuel efficient vehicles for the Federal fleet using $210 million of funds from the American Recovery and Reinvestment Act (ARRA).
The CRA continues to oppose the insurance industry’s AB 1200 which has been rewritten to do more damage to the state’s anti-steering law. The bill is slated to be heard Wednesday, July 1, 2009 by the Senate Banking, Finance and Insurance Committee at 1:30 p.m. in Room 112 of the State Capitol. At this late date members should email their opposition to the committee’s consultant: \n This e-mail address is being protected from spam bots, you need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Attached below is the bill followed by the CRA’s latest letter of opposition.
BILL NUMBER: AB 1200 AMENDED BILL TEXT
AMENDED IN SENATE JUNE 25, 2009 AMENDED IN ASSEMBLY APRIL 29, 2009
INTRODUCED BY Assembly Member Hayashi
FEBRUARY 27, 2009
An act to amend Section 758.5 of the Insurance Code, relating to motor vehicle insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 1200, as amended, Hayashi. Motor vehicle insurance: direct repair programs.
Existing law prohibits insurers from requiring that an automobile be repaired at a specific automotive repair dealer. Under existing law, an insurer may suggest or recommend a specific automotive repair dealer under certain specified circumstances.
Insurance Commissioner Steve Poizner announced June 24 the arrests of Ruben Andrade Sr., 48; his son, Ruben Andrade Jr., 18; Cristina Ramirez, 20; and Gustavo Hernandez, 20; all of Sacramento, in connection with insurance fraud charges.
Hernandez was arrested at his Sacramento residence on June 19. Andrade Sr., his son Ruben, and Ramirez turned themselves into authorities on June 20. All individuals were booked into Sacramento County Jail.
“It does not pay to purposely vandalize or destroy your vehicle to cash in on insurance money,” said Commissioner Poizner. “Breaking the law to make a buck will put you behind bars and cost you thousands of dollars.”
Since late 2008, Southern California shops have been prevented from installing a new spray booth or from modifying their spray booth from its existing permit condition, including moving an existing booth to a new location, or adding an air make-up system for waterborne paint.
The reason is due to a moratorium on such actions imposed by the South Coast Air Quality Management District (SCAQMD). The moratorium started in late 2008 and affected parties were officially notified in January, 2009. See letter here.
Attempting to aid affected shops this month is SB 696, sponsored by California Senator Rod Wright. SB 696 was heard June 17 by the Senate Energy, Utilities and Communications committee in Sacramento and is specifically designed to end the moratorium on issuing permits in the SCAQMD. The bill was narrowly passed by a vote of 6-3, with 2 abstentions. Those voting “aye” were Senators John Benoit, Ron Calderon, Dave Cox, Alex Padilla, Tony Strickland, and Rod Wright. Those voting “no”, were Senators Corbett, Kehoe, Lowenthal and Simitian. Senators Ellen Corbett and Pat Wiggins were absent, abstaining, or not voting. It will next be heard in the Environmental Quality Committee.
Over the past few years our industry has seen a major change regarding the process we use to put the “final touch” on a refinished vehicle. Although once referred to as "Color Sand & Buff", we now more accurately describe this process as "Finish Sand and Polish".
With advancements in vehicle design, multiple air bags and passenger restraint systems, first responders to an accident need additional training. They are seeing more hybrids at the scene of accidents and need familiarity with high voltage vehicles. “Learning about the wiring and voltage on hybrids provided invaluable experience to our team,” stated City of Henderson Battalion Chief Jeff Lytle.
Chuck Sulkala, Executive Director of the National Auto Body Council (NABC) was present to see the events over the two day period. "This program was fantastic, from Toby Chess talking about the new metals, to observing the various airbags being deployed, to seeing the First Responders ‘suit up.’ It was really great to see them in action. It was an awesome display that was appreciated by everyone."
“We rarely, if ever, get the opportunity to practice cutting apart late model vehicles. Our team members, especially the younger ones, need as much practice as possible. This training will definitely save time and save lives,” Chief Lytle stated.
Patrick O’Neill, 911 Collision Centers Co-Founder and Operations Manager concluded, “This training will help save lives right here in our own neighborhoods. We are committed to hosting these classes in the communities we serve and challenge other repairers to get involved and host a class in their community.”
About 911 Collision Centers
911 Collision Centers received the National Auto Body Council’s “Pride Award” for its commitment to community service. It has also received such notable accolades as runner up in the Better Business Bureau’s International “Ethics in Business” award and AAA’s “Top Shop” awards for service and repair excellence. Additionally 911 Collision Centers was honored with the DuPont Joe Jackson award for community service.
911 Collision Centers commitment to customer satisfaction has placed the company among the top five percent of collision repair providers in the United States. The company plans to continue its expansion throughout the Southwest. For more information visit: www.911Collision.com or call (520) 791-9119.
After working in the casino industry in marketing for 17 years, Reno resident Forrest Bietz decided to make a career change, and he purchased a franchise business, ColorAll Technologies, aimed at providing minor truck and auto body repair and painting -- targeted to car dealerships and fleet operations. Bietz wanted a business that would offer less stress and give him more control over his professional activities.
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Unlike traditional auto body repair shops, which focuses only on collision repair, BumperDoc offers a wide variety of cosmetic repair services for automobiles. Their distinctive "one-stop shop" model chooses to recondition (repair) versus replacing parts by all means necessary, which enables customers to save time and money. BumperDoc offers customers 7 other services for their auto appearance needs.
Automotive Reconditioning Franchises, Inc., who owns the nation's first auto appearance & body repair franchise known as BumperDoc, announced the hiring of Brent Winn, who joins the company as President of Franchise Operations. Mr. Winn brings an impressive track record of sales and operations experience to the BumperDoc franchise team.
DuPont and D’Angelos, industry leaders in RV Paint and refinishing products manufacturing and distribution, have signed on to help make an ALS-afflicted RV enthusiast’s dream come true.
RV Buddies has been following the heartwarming and inspirational story of longtime Bakersfield resident Sandy Oliver as she battles ALS (better known as Lou Gehrig’s disease), a deadly disease for which there currently is no cure.
This is your opportunity to join one of the "101 Best and Brightest Companies to Work for in Chicago" 2007 & 2008
A top Chicago software company is seeking a Senior Collision Software Analyst (Pathways) to join our team in Cerritos, CA!! If you are looking to get your foot in the door with a leading-edge software development company this might be the opportunity for you!
Gerdau Ameristeel Corp. is suspending production at its Sayreville, NJ steel mill and closing its rolling mill in Perth Amboy, NJ, due to lower demand for its products resulting from the downturn in the economy. The company said these actions are expected to occur gradually over the next several months. The company indicated that it would restart operations at the Sayreville facility when business conditions warrant.
The company is also entering into discussions with the United Steel Workers regarding the potential closure of its Sand Springs, OK., steel mill.
The Sayreville facility will continue to carry a full range of products in inventory available for shipment or customer pickup until production resumes.
On June 17, Gov. Bobby Jindal and Louisiana Economic Development Secretary Stephen Moret joined executives from V-Vehicle Company, or VVC, Kleiner Perkins Caufield & Byers, or KPCB, partners, local businessmen and local officials to publicly announce that VVC, a new American car company headquartered in San Diego, will begin assembling cars in Monroe, La. The project will create over 1,400 direct jobs at an average annual salary of nearly $40,000, plus benefits, as well as a capital investment of at least $248 million.
Gov. Jindal said, "What we are here to officially announce today is not a typical economic development project. Most business recruitment projects for the state involve large, long-established companies building another plant similar to one they already have - similar to facilities that other companies in their industry already have. Those are great projects and we appreciate the jobs they provide, but today's announcement is different.
Cheery "Gettin' Outta Dodge" banners mostly mask the sense of betrayal at Frank Kent Dodge in Fort Worth, TX.
The store, part of the Frank Kent Auto Group, is one of eight in the area that bankrupt Chrysler LLC is closing as it seeks to eliminate about a fourth of its dealers nationwide. The 789 dealerships being cut are supposed to cease operations June 9.
click for Dallas Morning News Story
On May 29, Texas enacted legislation strengthening the state's current child restraint law that requires children 4 and younger to be in a child safety seat. When the law goes into effect on Sept. 1, 2009, Texas will join 23 other states requiring children at least 7 and younger to be in a child passenger restraint system.
Cover articles: Most Important Week for GM and Chrysler 1
State Associations Exchange Updates on Legislation 1
Amaradio column - Do Insurers Really Want to Know ? 24 ASA 2009 Collision Committee 21 ‘Cash for Clunkers’ Causes Clash Between Auto Groups 25 Causey column - Controling Free Enterprise 8 Chrysler Affected Dealer Blogging 21 DuPont’s Cromax Pro 6 Evans column - The H2O Knight 18 Franklin - To Pay or Not to Pay 12 Franklin column- Refinish Materials Calculators 26 GM to be passed by Ford 30 Going Waterborne is Eased with Cromax Pro 10 Hey Toby! - Understanding Motivation 15 I-CAR Advantage - The Chevrolet Corvette ZR1 23 Increased Use of Advanced High-Strength Steels 2 iPhone App Created by Nationwide 21 LKQ in the Southwest 7 McGee column - ‘Be Proud’ 4 Most Important Week for GM and Chrysler 1 PMCLogic Gains 22 State Associations Exchange Updates on Legislation 1 Texas Volkswagen Dealers 16 Volkswagen of America 27 Yoswick - Helping Vocational Schools 31 Yoswick - Repairers Decry Bumper Refinish Prompt 9
A total of Chrysler Franchises to Close in OK, NM, and LA are identified in the following list.
Louisiana - 17
New Mexico - 4
Oklahoma - 12
Dealerships HERE
The Chrysler Bankruptcy court has receieved a list of franchise closings to take effect by June 9, 2009. Steven Landry, Chrysler's executive vice president of sales, said the company used a "data-driven matrix" to make the decisions as to which Chrysler franchises to close, assuming the court approves, but some dealers who hold multiple franchises are concerned that the media reports will impact those as well.
The list of Texas Chrysler franchises to close, sorted by Town and City, is here
For a complete national list and summary
SAN MARCOS, Texas – Automotive and collision repair shop owners and service managers were recharged on shop management and communication skills May 2, 2009 when the Texas Independent Automotive Association sponsored the first-ever Texas Automotive Summit at the San Marcos Convention Center.
CLICK HERE for the news go to the TIAA Web Site and get the news about this great event.
To read this article in PDF format with photos, click here
A special recognition dinner event was held last month at Lakeside Country Club in Houston, TX, to celebrate Westside Lexus as the recipient of the 2008 Toyota/ Lexus Certified Collision Center of the Year. Westside was selected from among the 168 nationwide Toyota and Lexus Certified Collision Center (TCCC/LCCC) dealers and is the first Lexus dealer collision center to have won the award.
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Are your customers finding what they need? What do page visits and page views really mean to your sales and profits? Do you know why your online sales are increasing, decreasing or remaining flat?
With three previous years of rave reviews, the Society of Collision Repair Specialists (SCRS) is pleased to announce the dates of their fourth annual Affiliate Leadership Conference, taking place at the I-CAR World Headquarters in Hoffman Estates, Illinois. Based on feedback and increasing participation of the SCRS' affiliate associations, the once one-day event has expanded to a two-day series, and is scheduled to run from 10:00 a.m. to 5:00 p.m. on Wednesday, September 16thand 8:00 a.m. to 12:00 p.m. on Thursday, September 17th, 2009.
For information about the upcoming Affiliate Leadership Conference, please contact Executive Director Aaron Schulenburg at (302) 423-3537 or via email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it You may also contact the SCRS administration office at (877) 841-0660 or via email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Through its direct members and 34 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS including other news releases is available at the SCRS web site: www.scrs.com. You can e-mail SCRS at the following address: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .
PSA - Corvette Dream Giveaway to benefit sick children Corvette Dream Giveaway, a Dream Giveaway™ sweepstakes will benefit children confined to hospitals nationwide.
In cooperation with sponsors including, Summit Racing, Moroso Performance, Corvette Central, Paragon Corvettes, Zip Products, Volunteer Vette and many others, Kids Wish Network will be giving away a beautifully restored tuxedo black 1967 Corvette 427 roadster and a one-of-a-kind 2009 638 HP ZR1 Corvette to one lucky winner on December 25th, 2009. Commissioned by the Charity with the cooperation of Tom Wallace, then Vehicle Line Executive for the Corvette Division of General Motors, the “Hero Edition ZR1” serial #1 of 1 is a spectacular and priceless piece of automotive history, created to honor the courage and spirit of the hospitalized children the charity serves. At $3.00 a ticket this one’s a no brainer! Go to www.winthevettes.com to enter or call 1-866-WIN-BOTH (946-2684).
I-CAR will extend its registration deadline to July 24 for the upcoming I-CAR 30th Annual Industry Conference at the Omni Shoreham hotel in Washington, DC, July 28 – 31 as the training organization continues to receive interest from the inter-industry.
The conference begins with a Collision Inter-Industry Tradeshow on July 28 and officially opens on July 29 with keynote speaker Dr. Martin Regalia, Chief Economist for the U.S. Chamber of Commerce.
This course is designed to introduce students to the Planet Color System. It will include classroom discussions, instructor led demos and hands-on application. This class will instruct the student on how to properly mix the custom effect materials, procedures needed to create custom colors and custom effects, and the beginning steps to custom painting. This training is approved for I-CAR Gold Class points through the I-CAR Industry Training Alliance Program and as such, qualifies each participant to apply for 2.25 I-CAR Gold Class points.
click for schedules and locations
This is the only course which will certify painters for S-W Lifetime Guarantee Program. The course will instruct the student in the proper application and usage of the Ultra System and the AWX Waterborne System. The objective is to improve production targets and maintain the highest quality repair. This training is approved for I-CAR Gold Class points through the I-CAR Industry Training Alliance Program and as such, qualifies each participant to apply for 4.25 I-CAR Gold Class points.
click here for schedules and locations
Lee Amaradio
Janet Chaney
Toby Chess
Dan Esperson
Rich Evans
Tom Franklin
David McClune
Tom McGee
Richard Steffen
Dick Strom
John Yoswick
1. Background The CIC Database Task Force (DTF) has consumed significant time and energy engaging CCC on this issue during the past several years. During this original process, and on other more current issues or requests, CCC appeared to have taken the position that their estimating product was obligated to reflect OEM approved procedures, and so to help illustrate the DTF’s objection to the use of the bumper prompt, a thorough review of the approved application procedures for the major paint brands was completed. At the end of this process, CCC concluded that the bumper prompt was in conflict with approved procedures, and publicly announced that the bumper prompt would be fully removed.
CLICK for PART FIVE (Feb 09)
The WATERBORNE PAINT PRIMER pull-out sections PARTS 1-4 published in 2008 are downloadable below. Each part is 16-24 pages and separated into A and B sections for convenient download. The page numbering is continuous. See CONTENTS for each part.
PLEASE OPEN and then SAVE to your desktop. Requires PDF reader.
CONTENTS for PART ONE
CLICK for PART ONE A
CLICK for PART ONE B
CONTENTS for PART TWO
CLICK for PART TWO A
CONTENTS for PART THREE
CLICK for PART THREE A
CLICK for PART THREE B
CLICK for PART FOUR A
CLICK for PART FOUR B
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