Coccaro Case Takes a Wide Turn as NY Supreme Court Decides Consumers Can Sue Insurers for Steering Damages
The ongoing Greg Coccaro v. Progressive case (formally North State Autobahn, Inc. v Progressive Ins. Group) has taken a wide turn in a NY Supreme Court decision very similar to a recent California Supreme Court ruling (see coverage in Autobody News HERE.) Essentially both the NY (North State) and CA (Hughes) [See Autobody News' coverage of Hughes HERE.] decisions allow the respective State insurance codes, which prevent private parties from suing insurers for steering related damages, to be trumped by overlapping general business law, under which an insurer can, theoretically at present, be sued for steering-related damages.
North State's original case against Progressive had included several causes of action against the insurer, including steering, tortious interference, and injurious falsehood. The first claim, a violation of the state's anti-steering law, had been previously dismissed because New York (and also California) does not provide for a private right of action for such violations. Those violations are actionable only by a state or government agency such as the Attorney General or Department of Insurance.
The June 24, 2011 decision by NY Supreme Court Justice Gerald E. Loehr, in Westchester County, found that North State's claim against Progressive, which is predicated on derogatory statements about North State to its customers in order to steer them toward Progressive's DRP facilities, are not merely "disguised" claims of steering as Progressive argued. Progressive had filed a motion to dismiss the remaining claims against it including alleged violations of the General Business law. They argued that North State's argument was merely a disguised steering claim.
Basically the judge found that, although misrepresentations uttered in connection with a private, business-to-business dispute does not turn the matter into a general business law violation, practices by insurance companies involving routine, widespread marketing and communication with insureds, impacting the public at large, may support a cause of action under NY's general business law, section 349.
ABPA Responds to Volvo Service Bulletin
The Automotive Body Parts Association (ABPA) responded on July 27 to the Volvo Service Bulletin recommending against aftermarket parts (see Volvo story HERE).
The Automotive Body Parts Association (ABPA) continues to advocate for the use of quality, safe alternative parts for consumer vehicle repairs, despite attempts by Volvo and other car companies to limit competition and promote their branded components as the best and only option. Crash testing by the ABPA at low and high speeds has conclusively demonstrated that aftermarket parts provide occupant protection well within the federal motor vehicle safety standards, that energy absorption in a crash is equivalent for aftermarket and car company parts and that aftermarket part performance is comparable and does not impact the timing or deployment of airbags.
LKQ Reports 29 Percent Increase in Revenue
LKQ Corporation reported a 23 percent increase in second quarter income to $46.7 million on record revenue of $759.7 million, a 29 percent increase over the second quarter 2010.
"All of the operating groups performed well during the quarter," stated Robert Wagman, President and Co-Chief Executive Officer of LKQ Corporation. "We believe higher fuel prices and lower miles driven created some challenges for certain segments of our business. Despite those challenges, the company delivered total organic growth of 12.2 percent in the quarter, including 8.4 percent for parts and services," Wagman said.
The company reported a 6.4 percent increase in organic revenue for the quarter in its aftermarket, other new and refurbished products business. For the six month period, organic revenue in the category was up 11 percent compared to the same time last year.
Florida Manufacturer Honored With Broward County Environmental Business of the Year Award
The Broward County (Florida) Board of County Commissioners presented the Emerald Award to Uniweld Products Inc., designating the company as Broward County's Environmental Business of the Year for 2010.
Uniweld Products, a U.S. manufacturing company, is headquartered in Fort Lauderdale, Florida. Established in 1949 on farmland in the Dania Beach area, the company has grown and expanded into one of the major manufacturers in the welding, HVAC/R (Heating, Ventilation, Air-Conditioning and Refrigeration), plumbing, and alloys markets.
The Award commends Uniweld for its continuing adherence to strict environmental friendly business practices and green initiatives. David Pearl II, Uniweld's president, accepted the award on Tuesday, April 12th, 2011.
Reorganized Lehigh Valley Collision Repair Association Now Serves Pennsylvania
The re-energized Lehigh Valley Collision Repair Association is serving eastern Pennsylvania, including cities such as Allentown, Easton and Bethlehem. The one-year-old group comprises 18 auto body repair facilities, jobbers, parts suppliers, information providers and rental car companies, says its president, Matt Dewalt, AAM.
“Our mission is to promote the professional image of our industry through safe, quality and ethical repairs,” explains Dewalt, vice president of Scott’s Collision Centers, which is celebrating its 40th year serving the Lehigh Valley.
“We want to educate and lead our members to better themselves by allowing the free exchange of ideas and assist with ongoing training,” he adds. “It is truly an organization made up of members who want to better our industry.”
His father, Scott, a past and current member of LVCRA, started their business in 1971, and today the two locations, in Easton and Stroudsburg, comprise 34,000 square feet and generate about $5 million in annual sales.
The original LVCRA has roots at least 50 years deep and was very active in the late ‘80s and early ‘90s, sponsoring golf tournaments, hosting monthly meetings and holding I-CAR and other classes, Dewalt says. At the time, Scott participated with his early shop, but membership dwindled and meetings stopped about 10 years ago.
AkzoNobel Honors Five Most Influential Women in the Industry for 2011
AkzoNobel Automotive & Aerospace Coatings Americas (A & AC) hosted industry leaders on July 19th at the elegant Grand America Hotel (the only 5 star hotel in Salt Lake City, Utah) for the presentation of awards to the 2011 Most Influential Women in the Collision Repair Industry (MIW). Five distinguished honourees were recognized. The five comprise a cross section of service areas within the collision repair, from both the United States and Canada, including publishing, industry association, independent shops and multi-shop operations.
The MIW program was established in 1999 by AkzoNobel as an industry honorarium. The goal of the program is to promote the contributions of key leaders as well as grow the future involvement of females within collision repair and raise awareness of their contributions as a valuable resource pool.

(l to r) Barbara Davies, General Manager & Co-Owner, Autobody News - Carlsbad, California; Sharon Mazanec, Collision Industry Business Consultant – Junction, Texas; Jennifer Justice-Hayley, Operations Mgr., Valley Paint & Body Inc. - Amelia, Ohio; Susanna Gotsch, Director, Industry Analyst, CCC Information Services Inc, - Chicago, Illinois; Michelle Rolls, Owner, Queensway Fix Auto Collision - Prince George, BC
AkzoNobel, through the MIW program, collaborates with the I-CAR Education Foundation to provide scholarships to deserving women seeking to advance their education and pursue career opportunities within the collision repair industry. The annual $25,000 MIW scholarship has to date provided scores of students the ability to advance their careers.
Sherwin-Williams Automotive Finishes New Elegance™ Clearcoat Approved on a Global Basis by Chrysler
Chrysler has approved new 1100755 Elegance™ clearcoat from Sherwin-Williams Automotive Finishes (SWAF) on a global basis. Having undergone extensive certification, the clearcoat meets the Chrysler PF-10537 standard that the company sets to assure that vehicles repaired at its dealerships use the highest quality automotive refinish products.
Designed for force-dry/booth applications, Elegance clearcoat offers the ultimate in gloss for high-end refinishing. It provides excellent application properties and buffability, all while delivering a superior appearance. It is recommended for use on multi-panel repairs or overall finishing.
“Elegance clearcoat is a premium clearcoat solution and we’re pleased that Chrysler has recognized the product on a global basis,” said Jason Crager, SWAF OEM Business Development Manager. “We believe Sherwin-Williams offers some of the fastest and highest quality clearcoats, including our HPC15 and HPC21 products, which help collision centers to increase productivity and profitability while saving energy costs.
For more information on the premium Elegance clearcoat, visit www.sherwin-automotive.com or call 1-800-SWULTRA (1-800-798-5872).
August 2011 Southwest Edition
August 2011 Northeast Edition
Lesson Learned—Re-Painting a ‘57 Thunderbird
This month I’m working on a project that I call re-do, nobody likes to do re-dos. About 6 to 8 months ago I did a ‘57 Thunderbird and I repaired the front end. I wrote a story for Autobody News (April 2010, Working On a ‘57 Thunderbird With Old School Tools & Techniques, which you can easily find in my column section at autobodynews.com) about it, but what I want to talk about this month is making choices and taking the extra time to take it all the way back. What I mean is why I made decisions to do it one way and not another and why they came back to bite me: 1) costing me my labor and 2) material, and 3) an inconvenience for the customer. All of the above are red flags for future repairs.
To view the full text of this article with photos please click HERE.
Going back to this ‘57 Thunderbird, I took the hood, we stripped it down around the edges just so I could get the gapping right. I made a decision not to take the paint all the way off because 1) I didn’t want to find more body work and 2) I didn’t want to warp the hood and cause a need for more body work.
What I did was grind and remove about 12 inches of paint on the front where I did the repair and then I took about 3 inches all the way around the hood just to get the build up of the paint. I thought I would come in, Bondo™ around it, true it up right up to the paint where I’m not really causing myself any more work and I’m just blending the Bondo™ into the paint thickness, which wasn’t too bad. So, as I got the Bondo™ to meet up to the paint, the additional paint that I left on the hood—which is a laquer—was kind of gummy. That was another reason why I didn’t want to strip it down.
I was planning to come in with some PCL Primer, which I did, and loaded it up because that pretty much hardens itself and it’s been pretty much bullet-proof since I’ve been using it. Taking it to that point, we blocked the hood, got it painted, put it on the car and sent the car off.
Are Your Repair Methods Ten Years Out of Date?
The other day I received a report form Aaron Schulenberg, the Executive Director of the Society of Collision Repair Specialists, about a study done in Germany on collision repairs. Crash-test results and analysis of the impact of a non-professional repair on the performance of the side structure of a car (VW Passat) by KTI GmbH& Co. of Lohfelden, Germany.
To view the full text of this article with photos please click HERE.
The study took a late model VW Passat, with ultra high strength steel reinforcements in the rocker and “B” pillar, conducted a side impact at about 30mph, detailed all the damage, and rebuilt the vehicle using used parts, MIG welds, and an older Squeeze Type Resistance Welder. They did not use any OEM current replacement data, but they utilized common accepted repair methods used in the collision industry. They referred to those in the article as “10-year old repair methods.”
What was written in the introduction of the study is what I and others have been preaching for years.
“The new materials mean that body shops must continuously ensure that they are conversant with the requirements for new tools, procedures and information about the repair processes. New welding machines need to be used, training is required, and OEM information has to be accessed to make sure that the correct repair methods will be applied. Without this knowledge it is likely that an inadequate repair will be the result, potentially placing the car and its occupants at much higher risk in a later crash.”
“In parallel to the introduction of new materials, single component parts of earlier vehicles have been replaced by highly integrated, multi-material components on more recently designed cars. The production of a modern Body-in-White is characterized by complex manufacturing processes and bonding techniques. Taken together, the technical progress made by the OEM’s has resulted in corresponding new challenges for the repair shops. Repair shops must ensure they have well trained staff and are equipped with appropriate tools to cope with the techniques needed for professional repairs on today’s cars when they are damaged in an accident. If such techniques and knowledge are not available, a nonprofessional repair may lead to a significant reduction in the safety and quality of these cars.”
Reedman-Toll in Langhorne, PA, Finds Ways to Boost its Bottom-Line
By focusing on growth in the service department of Reedman-Toll Auto World in Langhorne, PA, President Bill O’Flanagan has improved the bottom line of his dealership. In fact, he claims that last year was the most profitable year they have seen, despite the economical recession the country is dealing with, and Reedman-Toll is on target to produce even better results in 2011.
To view the full text of this article with photos please click HERE.
When O’Flanaghan and his partners took over the dealership seven years ago, Reedman-Toll was not focused on sales in their service department; however, according to O’Flanaghan, “there is no way to make a business successful unless all of the departments are profitable”. With this mindset, Reedman-Toll has doubled the number of service customers seen each month in the past five years.
Besides offering a wider margin of profits, selling parts also aids customer retention because customers are more likely to buy a second car from the same dealership if they have developed a relationship by servicing their automobile at the same location. O’Flanaghan compares his goal of an all-inclusive relationship with his customers to a consumer’s relationship with Walmart: Reedman-Toll services all of the customer’s needs.
Because O’Flanaghan sees brakes, batteries, tires and windshield wipers as the standard point of defection when a customer breaks their relationship with the dealership, he offers daily deals on these items to encourage customers to turn to Reedman-Toll for all of their service needs. On Mondays, the dealership offers oil changes for $9.95, Tuesdays offer free tire rotations with a minimum of a $50 service visit, and on Wednesdays, oil changes cost the check-in time in 24-hour format (i.e., 4 P.M. is $16). Customers receive free front wiper blades and a complimentary one-day car rental with the purchase of a 30K, 60K or 90K mile service check, and Reedman-Toll offers 15% off the service bill for all 2005 and older models on Fridays.
The Devil in the Details—Measuring Metrics Properly
The Q2 2011 Mitchell Industry Trends Report (ITR) contained a feature I wrote about how repairable estimates can best be executed, “Are You Measuring Your Auto Insurance Claims Metrics Properly?” I argued (persuasively, I hope) that defined metrics and a clear plan can help make your business great, achieving measurably better auto insurance claims processing outcomes in the process.
To view the full text of this article with photos please click HERE.
The key is to understand who your competitors are and if you can replicate their performance. Only then can you have an achievable performance improvement goal that allows you to focus on the person, part and process that can be improved.
Determining what is great estimating performance, and whether this great performance can be replicated, requires a large sample size to allow for a statistically significant evaluation. In addition, the ability to drill down and segregate vehicles by type, age and country of origin as well as factoring in the geography of the repair estimates are all necessary in order to truly have an accurate comparison.
Comparing your performance against the industry average by identifying the best performers isn’t a simple, mindless process, and nor is analyzing the data and setting performance benchmarks. Adding to the complexity is the constantly changing mix of vehicles coming through the repair process.
As an example of how specific metrics need to be in order to be meaningful, consider this—there can be more than an hour difference in labor time in Removing and Replacing a used bumper assembly vs. overhauling an existing damaged bumper system. That hour difference can be important in an area with extremely high labor rates.
Egon’s Auto Repair: A Custom Shop for Custom Work in NJ
Unlike standard production shops, Egon’s Auto Repair of Carneys Point, NJ, specializes in custom auto body work. They are experts at restoring classics: Porsches, Corvettes, BMW, Rolls Royces and so forth. They also perform custom work on boats, planes and motorcycles. According to owner, Egon Necelis Jr., “we’re not high volume, but we’re high quality”.
To view the full text of this article with photos please click HERE.
Egon Necelis Sr. opened Egon’s Auto Repair in Carney’s Point in 1977, and he ran it until his death in March, 1996, at which point his son took over the business. Extending the start given to him by his father, Egon Necelis Jr. is largely self-taught. He began restoring his first vehicle while still in middle school, following in his father’s occupational footsteps, but learning and experimenting a lot on his own.
The Necelis family has done their homework on long-ago projects, following many restorations long after they leave their shop. They recently located the very same 1941 Buick Roadmaster that Egon Sr. and Jr. restored many years ago. The car was sold in the late 1990s, but the family searched for and found the car for sale on EBay in Indiana in 2009. They bought and retrieved the car, and Egon Jr. and his son, Egon III, plan to restore the vehicle to its former competition condition.
Egon’s Auto Repair is comprised of two separate automotive businesses. Half of Egon’s shop is an auto body shop, while the other half is a mechanical shop. The shop consists of two 2400 square foot buildings connected by an office in which Egon displays articles, thank you letters and pictures of custom work he has completed. Two mechanics work at the shop, in addition to Egon, his wife and his son, Egon III. Egon’s used to have more employees in the auto body shop; however, due to the economy, Egon Jr. now does all of the auto body work.
Thin-Film Technology Comes to Collision Repair
If you were asked for a short description for anti-corrosion compound, the material that is sprayed onto the backside of panels and inside rails after repairs, it is likely that “thin film” and “fine mist” would not be included in the wording. However, that is exactly the description given to a new type of anti-corrosion compound now available that uses what is collectively called thin-film technology.
To view the full text of this article with photos please click HERE.
Thin-film technology products are polymer resin-based, anything more descriptive than that is proprietary. They’re a completely aerosol system being distributed by at least two product makers, Bonding Solutions with their Like90 Corrosion Protection System, and Sherwin Williams with their Shield Corrosion Protection System (see Figure 1).
The two systems actually come from the same source that has its origins in the aerospace industry. The same material that’s being recommended for spraying inside rails and panel cavities has been used for years on aluminum welds and sealing joints on aircraft. Besides an anti-corrosion compound, the line also includes a weld-through primer, also polymer resin-based, and a solvent-based cleaner.
Hate the Way the Strings Are Pulled? Don’t Become an Insurer’s Puppet
Thanks to a suggestion emailed from a reader of this column (J.W.), here are my thoughts and insights on the Farmers Insurance Circle of Dependability (COD) direct repair program agreement requirements.
To view the full text of this article with photos please click HERE.
The Society of Collision Repair Specialists (SCRS) recently published the agreement, saying it felt that some of the requirements warranted being made public. As an insurance company executive, I often wonder what the association’s true intent is. My guess is that it’s not because they were trying to foster good relations with insurers.
Personally, I think it’s a childish reaction to a big-boy problem. Hopefully, they feel they accomplished their mission. I can assure you that it doesn’t build trust or confidence with any insurance company or organization looking to build common ground with the association.
But enough of that rant. What I’d like to focus on is some critique of the concerns about the requirements that SCRS raised, and my view of the stupidity surrounding agreements like this one. Suffice it to say, no one shall be spared the rod.
SCRS states that insurance carriers have continued to increase pressure over repair shops to obtain the quickest and cheapest repair. Does that really sound like a bad thing? Anyone operating a for-profit business should be doing the exact same thing. Don’t body shop owners pressure their staff and technicians to perform the quickest, most economical repair?
And You Thought You Knew Ugly Dogs
One of our reporters, Ed Attanasio, recently entered his Chihuahua mix named Ratdog in the 23rd annual World’s Ugliest Dog Contest, held June 24th at the Sonoma-Marin Fair in Petaluma, California.
To view the full text of this article with photos please click HERE.
The first prize was $1,000, which comes with the coveted Ugly Trophy and a year-round modeling contract from House of Dog (which also comes with another $1,000!).
Unfortunately for Ratdog, there was one canine deemed even uglier than Ratdog. A real dog from Sacramento, California named Yoda. Ratdog finished 2nd in the Mutt Division, which was a nice performance by this 14-year-old deaf and toothless rescue mutt.
Pictures of Ed and his dog appeared in newspapers worldwide and were interviewed for television news organizations from the U.S., Germany, Israel, Japan and the UK, among others.
How to Keep Your Cool When Working With HVAC Diagnostics
Leave it to the manufacturers to take a simple thing like heat and air conditioning and turn it into an electronic jungle of wiring, sensors, and computer components.
To view the full text of this article with photos please click HERE.
HVAC units have come a long way from when I started in the business. Not that I want to dwell on the past, but it might be a good idea to make sure we understand the basics before diving into the problem of today’s systems. I always feel that if I understand a system fully before doing any repair work I’m more likely to get it right the first time.
Diagnostics procedures vary from car to car and from year to year. I’m finding more and more these days it’s a lot easier to diagnose the HVAC system with a scanner rather than with a print and test light. With the advent of the electronic door motors and the crazy locations on some of these components I would definitely try to use a scanner when possible.
An interesting fact: even on some of the aftermarket scanners there is a wealth of information on HVAC systems. Before purchasing a scanner I would ask whether or not it covers HVAC units and which years, which models, and how thorough it is. The more information you can have before you have to get your hands dirty the better.
One of the more common repairs I’ve see on both domestic and imports is connections. The manufacturers (in my opinion) have gone to the point of making these connection just barely survivable, but, not for the length of time that consumers are stretching their vehicles useable years on the road.
State and Federal Governments Consider New Insurance Regulations
From California to Massachusetts, the judicial system and lawmakers are tackling related to the auto insurance that pays for much of the work collision repairers do. The federal government is also considering the role it should play in regulating insurers as well.
To view the full text of this article with photos please click HERE.
Here’s a wrap-up of some of the insurance-related news that will likely be of interest to shops.
Feds eye more insurance oversight. Federal legislation (HR 1943) that would partially repeal the McCarran-Ferguson exemption from antitrust regulations for insurers has been reintroduced into Congress by Reps. Peter DeFazio (D.-OR) and Louise Slaughter (D.-NY).
“No matter what political ideology, most can agree that insurance companies should play by the same rules as virtually every other industry in America,” DeFazio said.
A similar bill, which requires only that health insurers operate under antitrust laws, passed the House during the last Congress but was not acted upon in the Senate.
The Automotive Service Association (ASA) has supported such legislation, saying it is a step toward broader repeal of McCarran-Ferguson.
Edward J. Henry & Sons, Auto Body Specialists and Body Generalists
Jet skis, buses, and construction equipment, oh my! While many auto body shops boast that they can do anything, Edward J. Henry & Sons Auto Body Specialists in Wilmington, DE, stands behind their ability to repair any type of vehicle, and even some non-vehicles.
To view the full text of this article with photos please click HERE.
Besides offering collision repair on all foreign cars and trucks, including classics, the shop has done body work on snowmobiles, jet skis, buses, construction equipment, tractors and even an antique stroller that was damaged when hit by a car.
On average, Henry Auto Body works on five cars, or other vehicles, per day. Additionally, they install alarm systems and offer paintless dent repair, as well as other specialty work. They provide storage both inside and outside, depending on the customer’s needs and the length of time they will be storing the vehicle. Customers can also turn to Henry Auto Body for their towing needs and even lawn furniture refinishing.
Edward J. Henry & Sons Auto Body Specialists has been in business since 1943, boasting sixty-eight years of experience through three generations of the Henry family. In 1938, founder, Edward J. Henry Sr., opened a shop on nearby Walnut street with his brother, but when that shop did not survive, Edward rented a small stall in the shop’s current location, a dairy farm at the time. He expanded his business over the years, passing the shop down to his son who turned the business over to his son, Edward Jr. Twenty-five years ago, Edward Jr.’s son and two daughters bought their father out, and they now run the shop, along with one of Edward Jr.’s son-in-laws.
Prestige Imports is a BASF Waterborne Advocate in Colorado
When his customers are spending big money on vehicles costing more than $50,000 and sometimes well into six figures, Jim Frost, the manager at Prestige Imports Collision Center in Lakewood, Colorado, knows his paint jobs have to be top-tier every single time. That’s why he’s enthused on several levels about his conversion to waterborne paint. Frost is pleased about the performance and the finished product he’s getting with Glasurit 90-Line, BASF’s waterborne product, and Prestige is proud to be a Colorado waterborne pioneer—the very first body shop in the Centennial State to adopt the green approach nearly three years ago.
To view the full text of this article with photos please click HERE.
Frost, 41, started working for his father’s shop at age 15. Now his collision center serves three Colorado dealerships: Prestige Imports Porsche Audi, Mercedes-Benz of Littleton and Mile High Honda Acura Mitsubishi. Prestige Imports Collision Center will repair any type of vehicle, but primarily focuses on the European brands its dealership sells, as well as Ferraris, Bentleys, Maseratis and Lotuses, among others. With 19 employees, this 19,000 square-ft. facility has an average repair ticket of approximately $3,300 and at any given point it’s likely that the shop will have more than a dozen repair orders in-house averaging more than $20,000 each.
Frost conducted an in-depth study before he chose BASF as his paint vendor, he told Autobody News. “We decided to change to waterborne and adopt all of the California laws even before they went into effect there. We analyzed all of the waterborne paint lines that were out there starting a little more than three years ago. We discovered that BASF offered an ideal solution for us in our environment. Many of the cars we repair were originally painted with BASF waterborne from the factory. We liked the product and appreciate their support, so that was a big part of the decision.”
What Makes A Dealership Selling Wholesale Parts Distinctive?
What makes a dealership distinctive? By my definition, that dealership must have a greater image of integrity, service, and loyalty than their competition. They have the greatest number of regular customers, and the best word-of-mouth reputation. Even their smallest customers know that their business is appreciated.
To view the full text of this article with photos please click HERE.
I offer you an example, an organization that has not just survived, but has grown steadily based on their customer service. Lasher Auto Group in Elk Grove, CA is an excellent example of the rewards of good service. AJ Killian, the parts manager, was determined to stay active even when others were cutting back or even closing. He now offers eight full time delivery vehicles covering the greater Sacramento area.
This is no sudden success; it has come slowly over the last eight years. Steady, reliable service enabled AJ and his partner customers to grow even in the hardest times. He talked to me about his operation, and I pass along some of his ideas here.
Quicker loading of his delivery trucks happens with a drive-through system that avoids congestion.
AJ handles all the stocking orders, but delegates the customer orders for better service. VW, Honda, and Chrysler programs assist him when Insurance Company demands create excessive use of non-OEM parts. Hopefully other manufacturers will follow their lead, and also help their dealer body to compete.
Carl Owen’s Paint and Body in Tyler, TX, Offers Top Rated Auto, RV and Truck Repair
Carl Owen’s Paint and Body in Tyler, TX, is a family run business that has grown into a business with two area shops; one specializing in auto body work and one in RV and truck work.
To view the full text of this article with photos please click HERE.
Carl Owens Paint and Body has been a family-run business for over 40 years; Carl Owens Sr. opened the Erwin Street shop in 1965 and had all operations running out of one shop for
decades. Carl Owens Jr. took over management in 1981 and was able to open a second location dedicated to just auto repair about 5 years ago. Carl Owens Jr. currently oversees all management operations at both shops.
“This business was started in 1965 by Carl Owens Sr. and it was passed down to Carl Jr. in 1981 who still runs the business today,” said Andy Wood, Manager of Carl Owens RV and Truck Collision Center.
The truck shop is a 9 acre facility and employs about 40 people. The auto shop is a 2 acre facility and employs about 20 people. Between both shops the business sees around 120 cars and various trucks per month and is able to pull in $600,000 gross per month.
“We’re the biggest shop within about a 100 mile radius, from Dallas to Shreveport,” said Wood. Between both locations Carl Owen’s is able to service all sorts of different vehicles.
Shop Owners Share Frustrations Renegotiating Contracts with Information Providers
The experiences of a number of shop owners around the country serve as a reminder to make sure you always understand the terms of any contract you are signing. Failure to read the fine print—or negotiate clauses for additional rights to end even something as seemingly innocuous as a software contract—have cost some shops tens of thousands of dollars.
To view the full text of this article with photos please click HERE.
A shop owner in California, for example, has been disappointed in the response he has received from one of the Big Three information providers to his requests over the past 18 months to renegotiate his software contract. The shop owner, who asked that his name and the provider’s not be used, said he purchased a complete package—hardware and software—from the provider, but realized shortly after he did so that he did not intend to the use the shop management module of the package.
“We’re not a large enough shop to benefit from the time I’d have into using it,” the shop owner said.
While he wants to continue using the company’s estimating system, as his shop has for more than 15 years, the information provider has refused to accept any changes to the 40-plus months that remain on the shop management module contract.
“I’ve never have even had the program turned on,” the shop owner said. “They already have a year-and-a-half of my money. I said they can keep the amount I’ve paid but just cancel it from there on. But they want it all. I know if I ran my business like that I would be out of business.”
August 2011 Southeast Edition
Volvo Issues TSB About Aftermarket Parts
Volvo has issued a TSB saying it does not support the use of "aftermarket, alternative or anything other than original Volvo parts for collision repair."
The bulletin says Volvo also "does not support the use or re-use of structural components from an existing vehicle that has been previously damaged."
See Bullentin HERE.
Chrysler May Aim to Create Repair Requirements
John Yoswick has reported that Doug Craig, collision repair manager for Chrysler, said last week at the Collision Industry Conference (CIC) that Chrysler, Ford and some other automakers are working to "commonize where we can" some of their "approaches to different repairs."
He said Chrysler also will be moving away from "recommendations" to instead offer much more specific "requirements on what process, procedure and/or components...should be used in a repair."
For example, Craig said Chrysler will often say a certain Mopar part number for an adhesive -- "or equivalent" -- should be used. "What is equivalent? That could take a chemical engineer to tell you," Craig said. "I'm sometimes amazed when I take things to our materials engineering folks and ask, 'Is this the same thing?' It turns out some of the snake oil isn't even close to being the same, even if the label or the product rep says it is. We're not trying to drive any costs in the repair. We're not trying to over-simplify repairs. We just want to take some of the judgment calls out of it, so the customer ends up getting an equivalent vehicle back."
Class Action Lawsuit Filed Against Insurers Alleging Control of CAPA
In an amended class action complaint filed in July in federal court in California (Perez et al v State Farm et al) against State Farm, Allstate, GEICO and others, the plaintiffs describe the Certified Automotive Parts Association (CAPA) as an insurer-controlled tool designed to help the defendants compete unfairly against insurers using genuinely high-quality parts in repairs.
It alleges the "consumer group" represented on CAPA's board (Advocates for Highway and Auto Safety) is also insurer-funded. It quotes a State Farm executive as having said at a CAPA meeting that if "the parts were high quality, a public relations campaign would not be necessary."
Without saying when this occurred, the lawsuit (originally filed in 2006) says that "CAPA itself decided to lower its standards," and quotes an internal CAPA memo by Karen Fierst (who left CAPA in 1998) saying the change was done in such a way "to avoid calling attention to this detail."
The suit seeks damages for "at least several hundred thousand" members of the class that it says have been harmed by the defendants' unfair competition and restraint of trade.
San Diego Collision Center Welcomes New Leaders, Name
Carrillo & Sons Collision Center is proud to announce the addition of Tony Jr., David and Daniel Carrillo to the day-to-day business operations combined with the public announcement that the company will assume the new business name of Carrillo & Sons Collision Center (formerly known as Carrillo’s Auto Body) located at 4680 Old Cliffs Road, San Diego, CA.
Carrillo & Sons has been family owned and operated in San Diego since 1981. Tony Jr., David and Daniel Carrillo have been a part of the shop since infancy, and are now fully involved in the day-to-day operations of Carrillo & Sons.
All three brothers have been trained to the highest industry standards and are truly dedicated to provide the utmost in customer service. The staff at Carrillo and Sons Collision Center has over 80 years in the auto repair industry collectively.
“I am so proud to have my 3 sons included in our business,” says Maria Carrillo, President of Carrillo & Sons Collision Center. “My sons have grown up in this garage and have learned that our name is our reputation. My sons and I take great pride in the service and quality that we provide to our customers.”
Carrillo & Sons Collision Center is a state certified green facility that has over 15,000 square feet of covered space inside their garage.
Encinitas, CA, Auto Shop Recognized as Eco-Friendly
After recently celebrating its 30th anniversary, the family owned and operated automotive repair business, Furgerson’s Garage is proud to be named a certified “Green Station.”
The Bureau of Automotive Repair and the state’s Department of Toxic Substances Control officially recognized the shop after its continued effort to prevent chemical waste and pollution.
Designed by the Bureau, the Green Station Recognition Program recognizes businesses that uphold the highest environmental standards. The program advocates for the reduction of our carbon footprint on the world and believes businesses like Furgerson’s Garage should be praised for their environmentally friendly practices.
Furgerson’s Garage owner, Brad Dow, agrees with this advocacy. “As an automotive repair professional in California, I feel it’s my responsibility to do all that I can to protect our environment, not only by properly performing Smog Check inspection and repairs that aid in keeping our air clean, but also handling and disposing of the toxic substances we generate in an environmentally friendly way.”
Furgerson’s Garage is one of two auto shops in the city that has been certified as a “Green Station.” Only 36 auto shops have received certification in California.
BMW May Recycle Ontario, CA, Workforce
Senator Barbara Boxer sent a letter to BMW North America CEO Jim O’Donnell on June 24, asking him to reconsider a poorly thought-out plan to fire BMW’s nearly 100 Ontario, CA employees later this summer and immediately re-open the facility the very next day with a cheaper, inexperienced work force. U.S. Congressman Joe Baca (D-CA 43) sent a similar letter to BMW as well.
The German automobile giant, Bavarian Motor Works AG, America’s most popular automaker for luxury-class autos, booked its richest earnings in its 95-year history this quarter.
BMW had global sales of almost $81 billion in 2010, or about $848,000 per employee, ranking it number 82 on Fortune’s Global 500 Companies. BMW also received over $3.6 billion in secret low-interest loans during the 2008-2009 taxpayer bailout.
Boxer wrote, “As the economic recovery continues, it is deeply disappointing that these loyal employees would be penalized at a time when your company recently reported 2011 first quarter earnings of $1.78 billion —triple that of first quarter earnings in 2010—and first quarter sales 21 percent greater than last year.”
NV: 34th State to Ban Texting While Driving
Nevada has become the latest state to adopt a ban on texting behind the wheel as well as outlawing motorists from being able to use their cell phones while driving.
Ray LaHood, Secretary of the Department of Transportation, praised Nevada’s governor for supporting driver safety.
“I commend Governor Brian Sandoval for signing legislation that will help save lives and put a stop to dangerous distracted driving behavior on Nevada roads,” said LaHood. “In a split second, the consequences of texting behind the wheel can be devastating. There’s no call or text so important that it can’t wait.”
This move makes Nevada the 34th state to ban texting while driving and the ninth to forbid drivers from using a hand-held cellphone behind the wheel.
Violators will be penalized $100 for the first offense, $200 for the second and $250 if they’re ticketed a third time for cellphone use.
Auto insurance premiums may also increase as a result of the infractions.
Service King Opens New Shop in Houston, TX
Service King Collision Repair Centers recently opened a new facility in the uptown Houston area. The 32,000-square-foot shop’s offices are located on a redeveloped former restaurant site and the repair center is behind it.
Service King says the new facility has the ability to repair 450 to 500 vehicles per month and offers a concierge service, continuing education centers for insurance partners, an Enterprise Rent-A-Car location and offices for insurance adjusters.
“We are thrilled to be opening a location in the Galleria area,” said Chris Abraham, vice president of Service King’s Houston market. “This is a prime location for us and we were glad that we were able to use and redevelop an existing vacated building in the area. We really enjoy our customers and partners in the Houston market and we believe this is a great fit for Service King.”
Steve Feltner is the manager at the new facility, Service King’s tenth in the Houston area. Another location is set to open in July.
Founded 35 years ago, Service King has grown to 41 shops in Houston, Dallas-Fort Worth and San Antonio. For more information, go to www.serviceking.com.
Entergy to Bring Charging Stations to College Campuses in LA
Entergy Corporation announced it is working with Coulomb Technologies to fund and donate 16 electric vehicle charging stations at college campuses in and around Entergy’s four-state service area.
The first two Entergy-funded charging stations were unveiled during a special event at Louisiana State University as Entergy and LSU launched one of the state’s first major forays into the electric vehicle market.
The event featured Dr. Michael Martin, LSU Chancellor; Bill Mohl, president and chief executive officer, Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C.; and Allan G. Pulsipher, executive director, LSU Center for Energy Studies.
“Electric vehicles are gaining widespread attention and being embraced as an important technology solution for the nation’s energy future. We know that the infrastructure must be in place to support the evolution of the technology, and we hope Entergy’s donation of EV chargers to LSU will help start that process for the southern region,” said Mohl. “This program is part of our deeper commitment to support technologies that foster environmental sustainability and provide for clean, efficient and affordable power for today and tomorrow.”
The charging stations were donated to LSU through a $160,000 grant by Entergy’s Environmental Initiatives Fund. Entergy is currently working with other universities in Arkansas, Mississippi, Louisiana and Texas to donate additional electric vehicle charging stations throughout the region.
Auto Angels Up to Speed for 2011 Car Giveaway
A mid-year update reveals the ‘Auto Angels’ of Central Florida are on target for this year’s Christmas Give-away of reconditioned vehicles to needy recipients.
David Stewart of Stewart’s Auto Repair in Winter Haven, FL, stated; “Thanks to the support of many sponsors and the collision repairers involved in this program, thus far we have 5 vehicles which will be ready at the end of July.”
These include: 2001 Ford Escort 4dr.,1999 Neon 4dr.,2002 Chrysler Voyager van, 2001 Grand Marquis, and a 1991 Nissan Pathfinder SUV.
The group’s goal, while lofty, is to have 14 to 15 vehicles ready for this year’s Christmas give-away.
Currently the group is seeking donor vehicles and is in discussion with several insurers and others in hopes of getting suitable vehicles as well as sponsors for cash and/or material donations.
Sikes & Stowe Downtown Collision Celebrates 85th Anniversary
Sikes & Stowe Downtown Collision, the oldest independent, family-owned body shop in downtown Jacksonville, is currently celebrating its 85th anniversary.
Founder John E. Sikes Sr. started the business in 1926, his son John E. Sikes Jr. took over in the 1960s until his death in 1999 and grandson, John E. “Bud” Sikes III is the current owner.
The owners have always credited their loyal customer base throughout the years for their longevity of success, and are, as always, committed to the growth and development of downtown Jacksonville.
For more information please visit www.sikesandstowejax.com.
Georgia Collision Industry Association Hosts Consultant at Monthly Meeting
The Georgia Collision Industry Association (GCIA) July meeting was held on July 14th at the Crowne Plaza Perimeter Atlanta NW.
Patrick Delaney from Summit Consulting International was the night's guest presenter. The presentation centered on how to improve performance in your collision shop.
Delaney’s presentation covered how to measurably improve the processes that impact the most vital areas of your business—profitability and customer loyalty.
Delaney spoke about Production Management Foundations, Measuring in Order to Manage and Making an Impact. He also discussed how to set up production controls to address the following four areas; customer interaction, managing repairs, production processes, and administrative processes.
He explained the impact each area has on the production process and how these area can affect the repair planning process. Summit Consulting has a computer program to help shops with their production management.
Refreshments and food began at 6:30 pm.
The group also discussed the upcoming 15th Annual GCIA Golf tournament and the Property and Casualty Insurance Stakeholder Advisory committee meeting scheduled for Wednesday, August 10th at 1:30PM in Atlanta (Location yet to be determined).
Please visit www.summitci.com for more information about Summit Consulting International. Visit www.gacollisionindustry.wordpress.com for updates on the GCIA.
NSF International Launches New Aftermarket Parts Distributor Certification Program
NSF International has launched a new program to certify distributors who sell automotive aftermarket collision parts at the Collision Industry Conference annual meeting this July. The new NSF Automotive Aftermarket Collision Parts Distributor Certification Program is designed to close the gap in the supply chain between part manufacturers and body shops.
The Automotive Body Parts Association (ABPA) sponsored and worked closely with NSF to develop the new program to meet critical supply chain requirements, including parts traceability. The program meets the needs of collision repair shops, insurers and ultimately consumers, as it requires distributors to have quality management systems in place that address traceability, service and quality issues with regard to both certified and non-certified parts.
NSF certified distributors will be required to have records systems and inventory tracking systems in place that can track customer defective part complaints, trace a part to a body shop and trace a part sale. This gives the industry the ability to track all defective part complaints and trace parts from the manufacturer through the distribution channel to the body shop.
“For many years the collision industry has asked for an effective system to track and recall, if necessary, any defective safety parts. The new NSF Distributor Certification Program accomplishes that goal. The NSF program provides collision repairers and their customers’ peace of mind that certified distributors are focused on delivering quality parts and service,” said ABPA Board Chairman Dan Morrissey.
Comprehensive Review of Distracted Driving Research Released
The Governors Highway Safety Association (GHSA) released the first comprehensive overview summarizing distracted driving research for state officials. The report considered research from more than 350 scientific papers published between 2000 and 2011.
GHSA produced the new report—Distracted Driving: What Research Shows and What States Can Do—with a grant from State Farm®. The report summarizes: what distracted driving is, how often drivers are distracted, how distraction impacts driver performance and crash risk, what countermeasures may be most effective and what states can do to reduce distracted driving.
“Despite all that has been written about driver distraction, there is still a lot that we do not know,” said GHSA Executive Director Barbara Harsha, who oversaw the report’s development. “Much of the research is incomplete or contradictory. Clearly, more studies need to be done addressing both the scope of the problem and how to effectively address it.”
The report outlines the following certainties:
• Distractions affect driving performance.
• Drivers frequently are distracted, perhaps as much as half the time.
• Drivers adapt to some extent: they pay more attention to driving and reduce their distracting activities in more risky driving situations.
• Distractions are estimated to be associated with 15 to 25 percent of crashes at all levels from minor property damage to fatal injury.
• Texting likely increases crash risk more than cell phone use.
• Cell phone use increases crash risk.
Hyundai and Kia Both Raise 2011 Sales Forecasts
Hyundai Motor Co. raised its 2011 U.S. sales forecast to 624,000 units, representing a 16 percent gain from last year, the Korean automaker said June 30. Last year, the Hyundai brand's U.S. sales rose 24 percent to a record 538,228. Sales through May are up 29 percent to 263,588 vehicles.
Reuters reported June 29 that Kia Motors Corp. also hiked its 2011 U.S. sales forecast to 433,000 units. That would be a 21.5 percent increase from the 356,268 vehicles the brand sold in the United States last year. Through May, Kia's sales are up 45 percent to 200,060 units from the year-ago period.
Hyundai credited robust demand for current and upcoming vehicles for the higher sales target. Recent vehicle debuts include the redesigned Elantra compact, the 2012 Accent subcompact and a freshened 2012 Genesis luxury sedan. The new 2012 Veloster sports coupe and an updated Equus full-sized luxury car will debut by year end.
In January, Hyundai Motor America said production constraints would limit U.S. sales to around 600,000.
Mike O'Brien, Hyundai Motor America's vice president of product planning, said earlier this month that Hyundai's 2011 U.S. sales would surpass its January estimate, but did not set a specific forecast.
O'Brien said sales of the 2012 Accent are expected to outperform earlier internal forecasts. Hyundai also has boosted production of the Sonata mid-sized sedan and Elantra at its Montgomery, Ala., assembly plant.
Detroit 3 Meet with UAW on Feds New CAFE Standard
Reps from all three Detroit automakers met with the United Auto Workers July 12 to discuss the higher federal fuel-economy standards being proposed by the Obama administration. This was the latest in a series of regular meetings between GM, Ford,. and Chrysler and UAW President Bob King on the issue. The White House is weighing an increase of the Corporate Average Fuel Economy, or CAFE, standards from the current target of 35.5 mpg by 2016 to 56 mpg by 2025. The standards apply to both cars and light trucks.
Automakers are lobbying against the stricter standards. The union is also concerned about the impact the increase would have on its members, because they would likely force an even more dramatic shift away from trucks and sport utility vehicles to small cars than the one already under way.
A recent poll of 800 likely voters in Michigan found that 78 percent favor higher federal fuel-economy standards.
CCAR Honors PA Shop with “GreenLink Shop” Title
The Coordinating Committee for Automotive Repair (CCAR) recognized a Philadelphia, PA, collision repair shop with its “GreenLink Shop” status on June 29.
The shop that received the recognition was Auto Show Collision Center.
The “GreenLink Shop” status promotes consumer confidence in local automotive repair facilities’ environmental and safety awareness and implementation, according to CCAR.
Repair facilities pursuing “GreenLink Shop” recognition must maintain high standards of excellence in environmental, health and safety practices in four categories.
The CCAR initiative recognizes auto service facilities and collision repair shops with separate criteria established for each type of business.
For more information visit ccar-greenlink.org.
GM Plant in NY Gets $33 Million Investment
Additional need for Ecotec four-cylinder engines used in Chevrolet’s fuel-efficient cars and crossovers, including the all-new 2013 Malibu, is driving $65 million in new investment at plants in New York and Tennessee that will create or retain 163 jobs.
“GM is committed to investing in manufacturing and jobs in the U.S.,” said Cathy Clegg, vice president Labor Relations. “These investments in powertrain manufacturing technology will help us meet the growing needs of our customers for high quality, fuel efficient vehicles - both today and in the future.”
In Tonawanda, N.Y., additional capacity is being added for engines used in the Chevrolet Equinox and GMC Terrain crossovers that achieve 32 mpg on the highway and can travel up to 600 miles between fill-ups. GM is investing $33 million that will create or retain 100 jobs.
In Spring Hill, Tenn., the engine plant is adding capacity for direct-injection four-cylinder engines to support the acceleration of the 2013 Chevrolet Malibu. GM Is investing $32 million that will create or retain 63 positions.
Reorganized Lehigh Valley Collision Repair Association Now Serves Eastern Pennsylvania
The re-energized Lehigh Valley Collision Repair Association is serving eastern Pennsylvania, including cities such as Allentown, Easton and Bethlehem. The one-year-old group comprises 18 auto body repair facilities, jobbers, parts suppliers, information providers and rental car companies, says its president, Matt Dewalt, AAM.
“Our mission is to promote the professional image of our industry through safe, quality and ethical repairs,” explains Dewalt, vice president of Scott’s Collision Centers, which is celebrating its 40th year serving the Lehigh Valley.
“We want to educate and lead our members to better themselves by allowing the free exchange of ideas and assist with ongoing training,” he adds. “It is truly an organization made up of members who want to better our industry.”
His father, Scott, a past and current member of LVCRA, started their business in 1971, and today the two locations, in Easton and Stroudsburg, comprise 34,000 square feet and generate about $5 million in annual sales.
The original LVCRA has roots at least 50 years deep and was very active in the late ‘80s and early ‘90s, sponsoring golf tournaments, hosting monthly meetings and holding I-CAR and other classes, Dewalt says. At the time, Scott participated with his early shop, but membership dwindled and meetings stopped about 10 years ago.
Allstate Announces ‘Process Changes’ Designed to Improve Network Cycle Time
Back on July 11, Allstate Insurance Company announced to its DRP participants that shops will be required to honor completion dates or assume all related costs, expedite estimate and upload completion times, and extend their hours of operation, when necessary, for the convenience of Allstate customers.
Now Allstate’s customer service initiative for 2011 has been expanded. The new program requirements were introduced to shops in a series of cycle time web conferences held recently. Those unable to view the web conferences are encouraged by the company to contact their local performance managers.
Allstate is making “several key process changes” within its Good Hands Repair Network that the company says are designed to positively impact customer service and cycle time. The announcement comes in the form of a video released by the company featuring Tracy Tramm, Allstate Claim Service Manager for the Good Hands® Repair Network.
In the video directed at the DRP shops, Tramm says “As you know, reducing auto cycle time is a key component in improving customer satisfaction for Allstate and your facility... as you continue to deliver priority service to our mutual customers.
“It goes without saying, that the quicker you reach out to the customer, the sooner they know, they’re in our good hands. I also want to remind you of four key messages and process changes to the network program in early 2011.
“Compliance with these items remains a core requirement for your participation in Allstate’s direct repair program.
“First and foremost, your shop will give priority service to Allstate customers having their vehicles repaired by you. Estimates must be completed and uploaded within 24 hours of your receipt of the vehicle. Third, your facility will be required to commit to a guaranteed completion date for all vehicles repaired under the Network program. Your shop will be responsible for any and all costs caused by a failure to meet the guaranteed completion date.
And finally, at the customer’s reasonable request, your shop will provide extended hours of operation. Contact your local performance manager to answer questions. You are why it works. Thank you.”
The video can be viewed at www.autobodynews.com by searching this story under the “Insurer Actions and Announcements” section.
Gunder’s Auto Center Alleges State Farm Altered Prevailing Rate Surveys
According to the legal team for Gunder’s Auto Center in their well-known battle with State Farm Insurance, limited documentation surrendered by State Farm in response to a court’s discovery order revealed the results of the insurer’s infamous labor rate survey have been altered.
While the nation’s largest private auto insurer has not provided all the information demanded in the court’s order; the information they did provide is seen by many as the proverbial “smoking gun” and a strong indicator of an even more pervasive nationwide practice.
In review of surrendered documents it was found that response to State Farm’s labor rate survey submitted by Gunder’s Auto Center, along with other local competitors, had been altered by State Farm’s Estimatics Team Manager, Robert “Bob” Davis in an apparent effort to skew the results to best serve the insurer by lowering rates and allowances.
Ray Gunder states: “I am confident this is not an isolated instance and that this is the likely the reason they have failed to supply us all the surveys and other information as ordered by the court. For years, across the entire country, monies have been withheld from repairers under the guise of the so-called survey and “Prevailing Competitive Pricing” by State Farm and all those insurers who follow their lead. Such deceit and unethical business practices have earned State Farm many Billions of dollars in unjust profits. Billions that the consumer never received benefit of through proper and thorough repairs.”
Santa Clara CAA Chapter Golf Tournament Postponed
The Santa Clara Chapter of the California Autobody Association (CAA) has postponed their 18th annual golf tournament from July 13 to August 25 at the Cinnabar Hills Golf Club in San Jose.
Registration will start at 11am followed by Best Ball Scramble and Shotgun Start at 1pm.
Event Fees are $145.00 per player and include Green Fees, GPS Cart, Range Balls, Box lunch, and Banquet Dinner.
Tournament Hole Events will include Hole in one for a car, Longest Drive, and Closest to the Pin.
The event is also looking for sponsors, contact Tabias Padilla (408) 406-7903 or Don Dutra (408) 406-3780 for more information.
Hyundai Motor America Comes Forward To Become Newest SCRS Corporate Member
The Society of Collision Repair Specialists (SCRS) announced that Hyundai Motor America has shown its support of the Society by enrolling as a corporate member.
Hyundai Motor America (HMA) is a subsidiary of Hyundai Motor Company, the Korean vehicle manufacturer which is one of the largest in the world. In today's automotive market, where vehicle design evolves rapidly and it is challenging to stay abreast of the latest required collision repair techniques, a close working relationship between original equipment manufacturers (OEMs) and the collision repair industry is more important than ever. HMA's decision to become a corporate member helps ensure this type of close working relationship can be maintained and strengthened.
"Because of the technological demands the modern vehicle poses, our members-and the collision repair industry, in general-are constantly in need of up-to-date information that assists in ensuring the vehicle is repaired correctly and safely," stated SCRS Chairman Aaron Clark. "As a repair association we are very pleased to add Hyundai Motor America to our healthy list of OEMs that actively participate with SCRS, and are confident that their corporate membership will facilitate a beneficial exchange of necessary information."
CarMD Reveals Car Repair Costs by State
Drivers in Alaska pay the most for car repairs at an average cost of $353.74, which is 16% more than the U.S. average ($305.56), including a whopping 30% more for labor. Mississippi drivers pay the least at $256.47 per transaction, according to CarMD.com Corporation, which analyzed roughly a quarter-million repairs made on vehicles with "check engine" light problems from 1996 to 2010. Analysis of the data also found that the District of Columbia, one of the wealthiest areas in the country, and Mississippi, the poorest state (according to the most recent U.S. Census Bureau), both rank the lowest at 50th and 51st respectively. According to the CarMD® Vehicle Health Index™, the average cost of U.S. automotive repairs is $305.56, including $202.28 in parts and $103.27 in labor costs.
"Through comprehensive data collected via CarMD's nationwide network of Automotive Service Excellence-certified technicians, we are able to provide national and state-by-state transparency into vehicle repair costs," said Art Jacobsen, VP, CarMD.com Corp. "We are releasing this data to empower consumers and mechanics with a better understanding of common repairs and costs, and to call attention to the fact that, regardless of region, drivers who follow a regularly scheduled maintenance program and address small problems early tend to have fewer catastrophic vehicle failures, reducing overall repair costs."
Kia Hires 1,000 New Employees for US Plant
Kia Motors America is ramping up its U.S. production at the manufacturer’s West Point, Georgia, plant. The plant will increase output from the current 300,000 vehicles per year to 360,000 beginning this September.
In a public statement made June 2 President and CEO of Kia Motors America, Ahn Byung-mo, said, "Kia is experiencing unprecedented growth in the U.S., led by the best-selling Sorento. And with demand for the critically acclaimed Optima currently outpacing supply we are proud to add the popular sedan as the second Kia vehicle on the production line."
In anticipation of the increase, Kia has just hired 1,000 new U.S. worker. Byung-mo hopes this expansion will keep up with the high demand for Kia’s Optima sedan and Sorento SUV, best-sellers for the brand. Kia’s Georgia plant will begin producing both models exclusively.
Insurer Group Donate $10K to Memorial Fund for Slain LA Investigators
The nation’s largest association of insurer fraud investigators has contributed $10,000 to a memorial fund honoring two Louisiana investigators who were killed in the line of duty on June 7, according to Insurance Journal.
The board of directors of the International Association of Special Investigation Units authorized the donation to the fund created by the Louisiana Insurance Department in the wake of the murders of Rhett Jeansonne and Kim Sledge last month.
The insurance department investigators were shot by an agent they were seeking to interview in Ville Platte, La.
“They were members of IASIU and dedicated professionals. IASIU appreciates the support of the Louisiana insurance department over the years. The senseless murder of our fellow IASIU members is unimaginable,” IASIU president Dave Rioux, of Erie Insurance, wrote to Louisiana Commissioner Jim Donelon on behalf of the IASIU members.
The fund will be used to purchase and place a permanent memorial on the insurance department’s grounds in Baton Rouge. Any remaining money will go to the estates of Jeansonne and Sledge.
“Kim and Rhett were true Louisiana heroes who lost their lives protecting our citizens and we hope to memorialize their efforts in an appropriate manner. Know that the outpouring of support from our colleagues has been invaluable,” Donelon said to Insurance Journal.
Houston Auto Body Association's June Meeting
The Houston Auto Body Association (HABA) held their monthly members meeting on June 28th at the UTI (Universal Technical Institute) in Houston at 7:00 pm.
The group of about 35 attendees discussed two main topics at the meeting; the bulletin recently sent out by Texas Insurance Commissioner Mike Geeslin and a presentation by I-CAR's Chuck Sulkala concerning changes to the I-CAR program.
Insurance Commissioner Mike Geeslin sent out a bulletin warning auto insurers that some claims settlement practices may be in violation of Texas law. Geeslin's bulletin says that reports of steering, limiting labor/reimbursement rates, and other potential unfair claim settlement practices continue to be received by his department. See the text of the bulletin HERE.
I-Car and the Houston I-Car Committee hosted a special presentation on June 29 on I-Car’s new Professional Development Program with guest speaker Chuck Sulkala, Executive Director of the National Auto Body Council and former Chairman of I-CAR.
Since I-CAR's new program was announced in July of 2010, many questions have been raised regarding the new curriculum and the challenges that it presents to the industry.
Doug Schlueter, I-Car South Central Regional Manager, was also be on hand at the presentation to answer any questions regarding I-CAR’s new training curriculum.
For more information please visit www.habaonline.org.
CCAR Names LA Shop “GreenLink Shop”
The Coordinating Committee for Automotive Repair (CCAR) recognized a Slidell, LA, collision repair shop with its “GreenLink Shop” status on June 29.
The shop that received the recognition was Frank’s Accurate Body Shop.
The “GreenLink Shop” status promotes consumer confidence in local automotive repair facilities’ environmental and safety awareness and implementation, according to CCAR.
Repair facilities pursuing “GreenLink Shop” recognition must maintain high standards of excellence in environmental, health and safety practices in four categories. The CCAR initiative recognizes auto service facilities and collision repair shops with separate criteria established for each type of business.
For more information visit ccar-greenlink.org.
Keenan Auto Body, Inc Raises $28,500 for Philadelphia Charities
Keenan Auto Body, a multi-shop operation with businesses in Pennsylvania and Delaware, held their 12th Annual Charity Golf Outing on June 3. Keenan VP and COO, Michael LeVasseur announced the successful outcome of the outing.
“I am very pleased to announce that we have raised a record amount of $28,500 for the Philadelphia Ronald McDonald House and the Russella Educational Fund. This was the first year that we chose more than one charity to name as the benefactor. $15,000 was earmarked for playground equipment for the PRMH located at front and Erie streets in Philadelphia Pa and $13,500 was given to the Russella Educational Fund, a fund set up for the children’s educations of Bernadette Russella, who recently lost her battle to breast cancer."
"This year’s outing was special”, stated Craig Camacho, Keenan Auto Body’s Marketing Director, “Bernadette LeVasseur Russella is the sister of Mike LeVasseur, Keenan’s VP and COO. It’s a great feeling when you can come together and help those who consistently
without fail help others. Mike is always there for everyone when called upon, it’s a trait his entire family lives by. I want to personally thank everyone that played a part and generously donated making our event a complete success.”
Electric Carmaker Fisker Hiring in Delaware Amid Preparation of Second Line Production
Electric automaker Fisker started the initial stage of a "comprehensive job creation program" during the last weekend of June, advertising for the first positions at the recommissioned Wilmington, DE, plant, according to reports made by the Detroit News.
About 120 engineers, electro-mechanical technicians and early teams of production workers will be hired this year, as Fisker prepares for the launch of its second line of production vehicles, a midsize premium sedan code-named Project Nina, at the end of 2012.
Please visit www.fiskerautomotive.com for more information.
AASP-NJ Announces NORTHEAST™ 2012 Dates
The Alliance of Automotive Service Providers of New Jersey (AASP-NJ) announced June 27 that the 35th annual NORTHEAST™ 2012 Automotive Services Show will take place March 9–11, 2012 at the Meadowlands Exposition Center in Secaucus, New Jersey.
NORTHEAST™ 2012 will look to continue the success and industry praise it has garnered since the show moved to the Meadowlands in 2009.
“Every year we have taken another step up and improved all facets of the show,” AASP-NJ President Jeff McDowell said, “and the attendance, the industry response and vendors have all supported that fact. We are looking forward to providing another fantastic experience for everyone who attends in March 2012.”
NORTHEAST™ 2012 hours are: Friday, March 9, 5pm-10pm; Saturday, March 10, 10am-5pm; and Sunday, March 11, 10am-3pm. For more information on NORTHEAST™, please visit www.aaspnjnortheast.com for more information.
CA Cities Top Eight of 10 Cities With Most Car Thefts
The National Insurance Crime Bureau (NICB) released its annual list of cities with the most car thefts, and Fresno, CA, tops the list. In fact, eight cities in the top 10 are in California, with the remaining two in Washington state.
Right behind Fresno are two other Central Valley cities, Modesto and Bakersfield. Sacramento, Stockton, and an area including San Francisco, Oakland, and Fremont also make the list. Spokane, WA, comes in at No. 4. Surprisingly, Los Angeles is all the way down at 23.
Here are the top 10 cities for car theft in 2010:
1. Fresno, Calif.
2. Modesto, Calif.
3. Bakersfield-Delano, Calif.
4. Spokane, Wash.
5. Vallejo-Fairfield, Calif.
6. Sacramento--Arden-Arcade--Roseville, Calif.
7. Stockton, Calif.
8. Visalia-Porterville, Calif.
9. San Francisco-Oakland-Fremont, Calif.
10. Yakima, Wash.
The city with the least car thefts was State College, PA.
The NICB's list does not indicate how long the cars stay stolen, as GPS is enabling a number of stolen vehicle recovery systems.
For more information please visit www.nicb.org.
Former San Diego Car Dealer Found Dead In FL Home, Police Call Death 'Suspicious'
Police in Fort Lauderdale, FL, are investigating how a former San Diego County car dealer died in his million-dollar mansion on June 30.
70-year old Ronald Vinci, the former owner of Pacific Honda in Kearny Mesa, owned several dealerships in the San Diego area starting in the 1960s. He also owned several Honda dealerships in the 1960s, rose to millionaire status and then later sold his franchises.
Fort Lauderdale police now believe they found out who killed the former San Diegan.
Police arrested Vinci's live-in girlfriend, Catherine Pileggi on July 5, according to NBC San Diego. Detectives said Vinci was trying to break off his relationship with Pileggi at the time of his death. They believe an argument between Pileggi and Vinci turned fatal.
Homicide detectives arrested Pileggi on July 5 after finding several items linking Pileggi to the scene. Pileggi is charged with first degree murder.
10News San Diego also reported that Vinci's body was wrapped in duct tape when it was found discovered inside the home, which is in an upscale neighborhood along Fort Lauderdale's New River.
Neighbors were stunned by the sudden, reportedly suspicious death.
"We moved here because it is real quiet and slow paced and everybody walks their dogs and says hi to each other. It is a real shock to hear something like this has happened," said neighbor, John Anderson to 10News.
Vinci formerly lived in Rancho Santa Fe, CA; reports showed he moved from San Diego to Florida in 2005.
Vinci leaves behind a son and grandson.
Gunder’s Files Appeal With the United States Supreme Court
In April of this year Gunder’s Auto Center received notice whereas the United States Court of Appeals for the Eleventh Circuit upheld a lower court’s order granting summary judgment in favor of State Farm Insurance in Gunder’s claim of slander and tortious interference with a business relationship against the nation’s largest personal auto insurer.
Ray Gunder stated; “after considerable thought, counsel and discussion with family and close friends, and as a result of recent activities on other pending cases against State Farm I decided to proceed with submitting what is referred to as a Petition for Writ of Certiorari to the United States Supreme Court requesting their review and opinion of the lower court’s ruling. As we continue to ‘pound that rock’ I see we are standing on a substantial amount of gravel… and as I’ve said before, we’re all-in and we’re too close to quit now and will continue until we either prevail or exhaust all opportunities to do so!"
A copy of the court’s prior ruling may be found at: http://www.courtlistener.com/ca11/26Fy/gunders-auto-center-v-state-farm/
Sherwin-Williams Automotive Finishes A-Plus™ Network Adds Summit Software & Mobile Solutions Program
Sherwin-Williams Automotive Finishes A-Plus™ Network is now affiliated with Summit Software & Mobile Solutions and its latest digital marketing platform. The two companies expect this will further assist A-Plus™ Network member shops to drive more cars, customers, revenue and profit to their facilities through the latter’s new digital promotion system.
Summit’s Help I Crashed My Car™ website and My Marketplace™ software combine to create an integrated patent-pending technology platform to help body shops retain customers and capture new repair opportunities, while streamlining the auto collision repair process for consumers. The technology was recently awarded a 2011 Innovation Award from Collision Week®.
Helpicrashedmycar.com is a consumer-focused website that has five mobile phone applications consumers can download use for free. These can be utilized immediately when involved in a traffic accident.
Supporting Help I Crashed My Car is Summit’s My Marketplace, a web-based sales, marketing, advertising customer service and communication platform to promote the automotive collision industry. Together, these integrated mobile and web-based technology solutions provide collision repair shops with a powerful tool to increase sales, improve customer service and boost customer retention and loyalty.






