September 2010 E-Newsletter
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AAIA Defends Aftermarket Parts in Complaint to FTC
A formal complaint has been made to the Federal Trade Commission (FTC) by the Automotive Aftermarket Industry Association (AAIA), responding strongly to recent position statements made by Honda regarding aftermarket parts. AAIA claims that Honda’s statements – failure to use Honda replacement parts will cause consumers to lose warranty coverage on their vehicle – are a violation of the Magnuson-Moss Warranty Act.
In its complaint to FTC, AAIA claims that Honda’s statements are a direct attempt to market replacement parts for Honda under the guise of an unsubstantiated warning to consumers regarding the use of non-original equipment parts.
“We request that FTC take immediate action to require that Honda withdraw the statement and issue a correction that use of non-Honda parts will not cause a owner to violate their warranty,” said Kathleen Schmatz, AAIA president and CEO.
In a statement issued by American Honda for both its Honda and Acura vehicle lines on Aug. 20, they said, “American Honda will not be responsible for any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than Honda Genuine parts purchased from an authorized U.S. Honda dealer.”
“We contend that Honda’s statements are in violation of prohibitions in the Magnuson-Moss Warranty-FTC Improvement Act (Public Law 93-637) from conditioning a consumer warranty on the use of non-original equipment parts, and are misleading to consumers regarding their rights and choices under the law,” Schmatz said. “To our knowledge, Honda has provided no specific evidence to support their claim that there are problems with use of non-Honda aftermarket parts for their vehicles or that use of such parts creates warranty-related issues for their customers.”
September 2010 Southeast Edition (FLASH)
September 2010 Southwest Edition (FLASH)
September 2010 Western Edition (FLASH)
GCIA Drafts a Letter to Claims Managers, Attorney General
The Georgia Collision Industry Association will send letters out this month to all Georgia Claims Managers, the GA Insurance Commissioner and the GA Attorney General detailing the results of the GCIA labor rates surveys given in July. The GCIA hopes to inform these parties about their analysis of the prevailing competitive price. More information can be found at gacollisionindustry.wordpress.com. The full text of the letter is as follows;
August 9th, 2010
To: Georgia Insurance Company Claims Managers
From: The Georgia Collision Industry Association
RE: Collision Labor/Materials Rates in Atlanta Metro Area
The Georgia Collision Industry Association (GCIA) recently completed their 4th Annual Labor & Materials Rate Survey for Metro Atlanta and we are writing to inform you of the results of the research.
The Survey was conducted by CSi Complete to ensure unbiased data collection.
CSi Complete is a provider of customer satisfaction indexing to collision repair, claims and other services industries and you can learn more information about the company by visiting their website at www.csicomplete.com.
Our goal in conducting this annual survey and sharing the results is twofold:
1. To utilize an impartial company to identify and communicate statistically valid figures representing the average labor rate for repair services offered in the Atlanta Metro area, and
2. To communicate the results of the research to both collision repair facilities, insurance carriers and the appropriate involved in serving the consumer in the repair and claims handling process.
The 2010 survey indicates a 3.15% average increase over 2009 rates, bringing labor rates to $42.00 and Materials to $28.00.
The GCIA encourages all Claims Managers and insurance company executives to thoroughly review the 2010 GCIA Labor Rate Survey. We urge you and your company to join the GCIA in our efforts to alleviate the variances between the actual prevailing rates (as shown in our survey) versus the rates some carriers are currently compensating collision repair shops for materials and labor in Metro Atlanta.
The GCIA has conducted this survey for four (4) consecutive years. No other industry association in the U.S. has collected this amount of accurate data on collision materials and labor rates.
This year, nearly 300 shops participated, and the results clearly demonstrate the actual prevailing rate in the Atlanta marketplace.
It is our intention that the information offered be used to ensure your company is fulfilling its obligation to the policyholder, be reimbursing for the actual prevailing rates in Metro Atlanta.
If you have any questions about the GCIA, or the results of this survey, I would encourage you to contact our Executive Director, Howard Batchelor, at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
.
Respectfully,
Board of Directors
Georgia Collision Industry Association
Georgia Collision Industry Association – www.gcia.org
595 Commerce Park Dr Marietta, Georgia 30060 FAX: (770)590-3881 VOICE: (770)770-367-9816.
Record Attendance Forecasted for 2010 SCRS Affiliate Leadership Conference
The Society of Collision Repair Specialists (SCRS) announced August 16 the approach of its fifth annual Affiliate Leadership Conference on Wednesday and Thursday, September 22 and 23 at the Gulf States Toyota (GST) Training Center in Lewisville, Texas. The modern, state-of-the-art facility will provide a stimulating backdrop for the open discussion of activities, successes and challenges that is the conference’s hallmark.
“Our affiliate ranks recently have grown at an accelerated rate and we expect event participation to increase significantly as a result,” says SCRS Chairman Barry Dorn. “It’s exciting, because for the first time many collision repair professionals will get to witness the effective strategies that are forged when SCRS’ national perspective intermingles with the local, grass roots focus of the affiliates.”
The “ground level” industry view of the affiliates forms the bedrock upon which SCRS is formed and keeps the organization attuned to membership needs. The Affiliate Leadership Conference is perhaps the ultimate reflection of this aspect of SCRS.
Attendees gain exposure to, and learn from the experience of, their affiliate peers in other states as does SCRS. Local initiatives often contribute to the formation of solutions that can be applied elsewhere, including on the national level.
“The conference features collective insight to address issues you won’t find anywhere else, and we are grateful to have the opportunity to foster it,” says SCRS Executive Director Aaron Schulenburg. “Our affiliates and the thousands of businesses that support them want workable solutions to trying issues.
The Affiliate Leadership Conference provides the content, context and analysis to provide those answers through candid discussion bred from a forum structured specifically for our affiliate associations.”
The conference will maintain a similar proven format to previous years, with the first day featuring a focused review from each association in attendance. Local market issues and successful approaches to resolving those issues will be reviewed and analyzed through candid peer discussion.
Day two will feature updates from SCRS on its most recent national level activity, targeted discussions on prevailing industry issues, and a conversation on how SCRS can better help assist the collision repair industry. Toyota will make a presentation on Auto PartsBridge™, an electronic parts ordering system that allows body shops to send parts orders to Toyota dealers through a Web-based application.
In addition, CEICA Executive Director Fred Iantourno will join the group to share content from the CEICA Implementation Conference being held the two days preceding the SCRS conference.
“This dynamic forum for experienced affiliate leadership generates an incredible amount of useful content over the course of two days,” adds Schulenburg. “I advise anyone that hasn’t previously attended to bring a pen and the biggest notepad you can find-you will be taking a lot of notes!”
For information about the upcoming Affiliate Leadership Conference, please contact Executive Director Aaron Schulenburg at (302) 423-3537 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . You may also contact the SCRS administration office at (877) 841-0660 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Northwest Louisiana Collision Repair Association Hosts Meeting
The Northwest Louisiana Collision Repair Association held their monthly meeting on August 3 at the Shreveport, LA, Country Tavern, and discussed recycling techniques among several other industry issues.
To view a PDF of this article please CLICK HERE.
Guest speaker Michael Hughes, of Hughes Recycling in Shreveport, LA, gave a speech on recycling in the automotive industry.
Hughes mostly talked about recycling paper and white and clear plastics around a body shop.
“He is also working on finding a way to recycle plastic bumpers,” said Bill Burnside, past NWLCRA president.
Hughes also offered to waive his recycling fees for any business who joins the NWLCRA this month.
The meeting went on to highlight upcoming events for the association, including their annual Christmas party on December 4 which will coincide with a charitable toy drive for Toys for Tots.
The party will be held at Fielders Paint and Body, 521 North Market Street Shreveport, LA.
Next month’s NWLCRA meeting will be on September 7 at 6:30 pm at the Shreveport Country Tavern.
The guest speaker will be Jim Adams who will speak about time management and the company that designed the NWLCRA’s website will give a demonstration on new features and how to use them.
For more information please visit nwlcra.org.
Court Dismisses Suit Challenging CA Commissioner's Actions
California Insurance Commissioner Steve Poizner is considering a recent court decision a victory for consumers, as a lawsuit that attempted to stop the Commissioner from protecting Californians in connection with the Executive Life Insurance Co. was dismissed by the Court, according to reports made by Insurance Journal.
Last year, the Commissioner denied a request for permission to buy a California insurance company from a foreign company whose owner is the defendant in a multi-billion dollar lawsuit brought by Commissioner Poizner.
The sale would have siphoned money out of the United States while a federal court is in the process of determining how much that owner, French company Artemis S.A., ought to pay in compensation for previous fraud, according to the Commissioner. The proposed seller in the transaction, Artemis subsidiary Aurora S.A., subsequently sued the Commissioner for denying the transaction. A court rejected that lawsuit.
“It’s my job to protect policyholders, and when I saw the harm this transaction could cause to former Executive Life Insurance Co. policyholders, I refused to allow it,” said Commissioner Poizner.
San Francisco Superior Court Judge Charlotte Woolard rejected the lawsuit against Insurance Commissioner Steve Poizner, ruling that Commissioner Poizner acted properly when he denied approval of a sale transaction that had the potential to cause harm to former policyholders of Executive Life Insurance Co.
The suit is part of the on-going fallout resulting from the failure of Executive Life in 1991 and the massive fraud that was committed by French companies and companies owned by the French government in the subsequent insolvency proceeding.
The lawsuit concerned an attempt by Reassure America Life Insurance Co., a subsidiary of insurance giant Swiss Re, to purchase Aurora National Life Assurance Co. Aurora National is the life insurance company that was set up in 1992 to take over insurance policies from the insolvent Executive Life.
When it was established in 1992, Aurora National was purportedly owned by a consortium of French and Swiss companies. In 1999, the Commissioner learned that the ownership of Aurora National was a fraud and the true owner was a French government-owned bank, in violation of California and federal law.
The Commissioner sued in federal court in Los Angeles and recovered more than $700 million to date for former Executive Life policyholders. The lawsuit is still pending against one of the defendants, French company Artemis S.A.
While the Commissioner’s fraud lawsuit is pending against Artemis, Reassure America filed for permission to buy Aurora National from Aurora S.A. The timing of the sale would get Artemis’s share of the sale money to France, out of the reach of the Commissioner before he could obtain a judgment against Artemis in federal court. Artemis’ share of the sale will be paid to former Executive Life policyholders if the Commissioner wins his suit against Artemis.
The Commissioner denied the application on the grounds that the sale would harm former Executive Life policyholders and Reassure America demonstrated a lack of integrity in attempting to conclude the sale now, when it knew that harm would occur to its own policyholders.
Judge Woolard agreed, ruling that it was not an abuse of discretion for the Commissioner to consider the interests of Executive Life policyholders in his decision.
San Diego CAA Talks BAR and Insurance Race
The San Diego chapter of the California Autobody Association met July 27 at Tom Ham’s Lighthouse in San Diego. The chapter was able to discuss the BAR code of regulations with guest speaker Peter Vann as well as David Jones’ campaign for CA Insurance Commissioner.
Peter Vann gave a presentation about codes and regulations pertaining to the use of aftermarket parts versus OEM parts and how to properly fill out estimation forms to coincide with insurance company standards. Vann also discussed the BAR equipment requirements for auto body shops, specifically equipment used for structural repair purposes.
The San Diego CAA held a fundraiser to benefit Jones at Parkway Bowl in El Cajon on August 13. PAW PAC is supporting Dave Jones’ campaign for CA Insurance Commissioner.
Dave Jones will be interviewed in the October issue of Autobody News.
Drew Ford in La Mesa, CA Hosts Free Extrication Demo for Late Model Cars
Drew Ford in La Mesa, CA, held a free extrication demonstration and seminar on late model cars on August 5. I-CAR Instructor and Welding Specialist Toby Chess led the demonstration after giving a one-hour seminar on how to efficiently and safely cut through damaged and mangled late model and hybrid vehicles.
To view a PDF of this article please CLICK HERE.
Drew Ford put on the seminar for free in their collision center for any firefighters, EMTs, police and first responders that wanted to attend. The seminar was given free of charge thanks to seminar sponsors; State Farm Insurance, DuPont, Auto Club of Southern California, Enterprise Rent-A-Car, West Autowrecking, Ken Industries and the California Autobody Association.
“It’s self-serving; I know this training is necessary,” said Ted Stein, Ford Service Manager at Drew Ford, “These guys need to know how to cut apart new cars.”
Firefighters made up most of the crowd; the event had about 50 confirmed guests who had made reservation prior to the meeting but late comers without reservations were welcomed. San Diego area Fire Departments in attendance ranged from Campo to Elfin Forest.
“It’s hard to get vehicles in this condition to work with,” said Jack Glassford, an Elfin Forest Fire Department Volunteer. Glassford also said the types of vehicles advertised to be at the seminar were a real selling point for him to attend.
“My captain told me I should head down,” said Matt Faddis, a Viejas Firefighter.
The wrecked vehicles were donated from State Farm Insurance, Auto Club of Southern California and West Autowrecking. Several late model vehicles as well as two hybrids were available for attendees to practice cutting on.
“The structure of todays cars are radically different than anything you’ve probably dealt with,” said Ted Stein. Stein introduced Chess’ presentation and thanked firefighters who turned out to learn about new techniques in the industry.
Toby Chess’ presentation focused on how to work with high strength steel and some new electrical components found in late model cars, especially hybrid vehicles.
“Most of these guys have never had the opportunity to work on late model cars,” said Chess, who said he has taught more than 2,000 firefighters the techniques to quickly and safely work with new technologies found in late model cars in the last year and a half.
CDs of Chess’ PowerPoint were provided to attendees after the seminar. Chess’ presentation went over into how to completely cut power in newer vehicles, how to avoid the electrical components around a hybrid car’s battery and how to find the weakest spots on the frames of vehicles made with high strength steel.
“We put a lot of effort into this and we’re happy with the turnout,” said Larry Houk, Drew Ford Collision Center Manager and local CAA chapter president.
While all attendees seemed to understand the seriousness of the material Drew Ford also wanted to make it a fun night by providing a buffet-style dinner and raffle at the end of the night.
All extrication equipment was provided by Holmatro Rescue Equipment. More information can be found at www.holmatro-usa.com.
NCIA Says Totaling at 65% of Cash Value is Too Low a Threshold in Nevada
The Nevada Collision Industry Association (NCIA) was founded in 2004 to promote the interests of those involved in the business of repairing both mechanical and collision-related damage.
Autobody News talked with several of the members and officers to get a better idea of the issues facing repairers in Nevada.
“Although we don’t have separate collision and mechanical repair divisions, we try to represent the entirety of the industry, including paint companies, wreckers, glass companies and even those businesses that sell support services such as estimating software,” says Kurtis Rosborough, chairman of the NCIA and owner of Certified Autobody Center in southwest Las Vegas.
The NCIA holds quarterly meetings to discuss and take action regarding the direction of the association as well as schedules fund-raising events to supplement dues. In addition, the group regularly informs members of any new requirements by federal, state or local governments such as by the EPA and OSHA. Regular I-CAR training sessions are held, and guest speakers also appear at times.
ACIC Seeks to Axe Sacramento Crash Tax Scheme
A proposed crash tax ordinance before the Sacramento City Council sends a message that Sacramento operates like a small-town speed trap, gouging unwary non-resident drivers, according to Sam Sorich, president of the Association of California Insurance Companies.
Sorich intends to testify against the proposed ordinance, which was scheduled to receive a final City Council vote August 17 at Sacramento City Hall but was postponed until September 14, according to the Sacramento Bee.
The ordinance would impose a tax—or what the city calls a fee—on non-Sacramento residents who are involved in traffic accidents within the city limits. The fee would be imposed on at-fault, non-resident drivers.
“Sacramento is rightly proud to be the capital of America’s largest state. It should be welcoming with open arms those from outside Sacramento who work in the city and visitors from around the world.
“Instead, the city plans literally to add insult to injury,” said Sorich.
He noted that Sacramento, like most local governments, faces some tough economic challenges. But taxing out-of-town motorists—including the thousands of workers who commute into the city every day—is dreadfully wrong and unfair. The ordinance anticipates contracting with a third-party billing company that will bill insurance companies. The ordinance’s scheme is based on the notion that insurance companies will pay the bill.
“But the fact is that auto insurance policies were never designed to cover these fees. Therefore, many accident victims will be forced to pay the tax out of their own pockets. The fees could be $2,000 or more. For insurers who pay the tax, it represents an increase in costs—which in turn could affect rates for all drivers.
“One sure thing in all of this is that the billing company that gets the city contract will always get paid first. The billing company takes its cut. Then it sends the rest of the payment to the city,” Sorich said.
ACIC’s president pointed out that the city envisions that the billing company will determine fault. The decision of fault will be made by the same company that profits from the tax.
“Drivers won’t get a fair shake,” said Sorich. He added that the proposed ordinance is in effect double taxation. The emergency services are paid for with property taxes. Sacramento, as a result, will be double-dipping at the expense of motorists. For non-resident drivers who have accidents, its taxation without representation.
“The ordinance also could end up hurting and not helping the city. It anticipates additional revenue but fails to consider the amount of lost sales revenue when residents from surrounding areas and potential visitors decide to stay away to avoid being taxed for just being in an accident.
“The ordinance tells Californians —who come to work in Sacramento, who come to the city for recreation, shopping and entertainment and who come to Sacramento to visit their state capital—that they are second-class citizens,” said Sorich.
'Open Letter' Leads to Lawsuit Involving Aftermarket Carriers
NSF Files Suit Against CAPA
NSF International has filed suit against the Certified Automotive Parts Association (CAPA) and CAPA Executive Director Jack Gillis.
NSF says its suit is in response to an “Open Letter” that Gillis, in his capacity as CAPA’s Executive Director, circulated to members of the Automotive Body Parts Association on July 28, 2010. Attorneys for NSF demanding a public retraction from what they claimed were misstatements of fact and out and out distortions of NSF’s position in relationship to the automotive aftermarket and its certification programs.
In February this year NSF International announced the launch of its new Automotive Parts Certification Program to address concerns regarding consumer safety and compromised automobile crashworthiness from the use of untested aftermarket structural parts. The NSF Automotive Parts Certification Program said it offers independent, third-party certification of steel bumpers, step bumpers, absorbers, reinforcement bars and brackets, and that certification has never previously been available for these aftermarket bumper system components.
NSF said at the time that the program offered by the Certified Automotive Parts Association (CAPA) currently certified plastic bumper covers and facias but not reinforcement beams, brackets, or energy absorbers, and that CAPA currently certified just one of the five categories of parts identified by the Auto Body Parts Association (ABPA) as a structural part: radiator core supports.
Recyclers and Shops Meet to Discuss Used Parts Usage
The two gatherings of auto recyclers and collision repairers took place only one year apart, but they could not have been much further apart, at least initially, in tone and tenor.
“A year ago, a shop owner stood up at the start and all but accused the auto recycling industry of conspiring against shops,” said Mel Hunke of the Quality Replacement Parts (QRP), a coalition of auto recyclers in nine states. “By the end of that meeting, and from the start of the second one, the repairers saw that recyclers were not the enemy, and the recyclers saw that, as an industry, they have some genuine quality and customer service issues they need to address. Everyone came into that second meeting with more of an interest in, ‘Okay, how do we improve the situation?’”
The next of these “Recycled Parts Roundtable” meetings, which are being organized by QRP as part of its effort to discuss and work toward resolution of issues related to the use of recycled parts in collision repair, will be held November 4 in Las Vegas. The meetings have been facilitated by industry consultant Lou DiLisio, and have brought together about two dozen representatives from auto recycling and collision repair companies from around the country.
One of the key topics of discussion at the a recent meeting was the need for more complete and accurate descriptions of recycled parts and their condition. The group agreed that not enough recyclers use—and far too few repairers are aware of and understand —the standards and grading codes developed by the Automotive Recyclers Association to help both recyclers and shops understand the condition of used parts.
CIC Discussions: Repair Standards and Ford Compares OEM to Non-OEM Parts
Let’s say the industry developed a formal set of “repair standards” for collision repair. What then?
This was the question a Collision Industry Conference (CIC) committee introduced at CIC’s meeting in Chicago in July.
Jeff Patti, chairman of the Industry Standards Committee, said his committee felt that, in addition to working on the proposed set of standards, it should also begin the process of considering what might be the next step. He outlined the proposed creation of a non-profit organization that would oversee the final development and implementation of the standards. Although designed primarily to prompt discussion of the topic, Patti’s proposal included details down to the level of potential costs for launching such an organization and possible fees for those wishing to participate.
Such an organization, Patti said, would be limited to one focus: the development and implementation of the standards.
It would work to gain consensus from “all stakeholders in the industry” for the standards, he said, thus following the guidelines established by the American National Standards Institute (ANSI), the body that essentially sets standards for ‘standards development.’
“Its mission would be to establish and manage collision repair standards developed by collision industry stakeholders,” Patti said. “That’s everybody in this room. Everyone will have a say in what goes on. This won’t be limited to any one particular segment.”
Ford Completes Sale of Volvo to Geely
Ford Motor Company August 2 announced it has completed the sale of Volvo Car Corporation and related assets to the Zhejiang Geely Holding Group Company Limited.
The total purchase price for Volvo and related assets set forth in the agreement signed in March 2010 was $1.8 billion, including a $200 million note and the balance in cash, with the cash portion subject to customary purchase price adjustments at closing. Pursuant to the terms of the agreement, Geely today issued the note and paid $1.3 billion in cash to complete the sale.
The estimated purchase price adjustments used at closing are expected to be finalized and settled following final true-up of the purchase price adjustments later this year.
“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely’s ownership,” said Alan Mulally, Ford’s president and CEO.
“At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world.”
Ford will continue to cooperate with Volvo in several areas to ensure a smooth transition, but has not retained any ownership in the Volvo business. Ford will continue to supply Volvo with powertrains, stampings and other vehicle components. Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period.
Agreements between Ford and Geely govern the use of intellectual property; these agreements will allow both Volvo and Ford to deliver their business plans and establish the proper use of each other’s intellectual property.
As previously announced, Stephen Odell, CEO of Volvo Car Corporation, is returning to Ford as group vice president and Chairman and CEO of Ford Europe. Stuart Rowley, CFO of Volvo Cars, is returning to Ford as chief financial officer, Ford Europe.
For more information regarding Ford’s products, please visit www.ford.com.
Senate Committee Passes High Tech Legislation
The U.S. Senate Committee on Energy and Natural Resources met July 21 for a markup of Senate Bill 3495, “The Promoting Electric Vehicles Act of 2010”; S.B. 2843, “The Advanced Vehicle Technology Act of 2009” and S.B. 679, “The Heavy Duty Hybrid Vehicle Research, Development and Demonstration Act of 2009.”
The committee did not finalize its work on S.B. 679 and will address this bill at a later committee meeting. Both S.B. 3495 and 2843 were reported out of the committee.
“The Promoting Electric Vehicles Act of 2010,” sponsored by Sen. Byron Dorgan, D-N.D., introduced in June, aims to reduce the United States’ dependency on foreign oil and significantly reduce greenhouse gas emissions. The main component of the bill is Title I which aims to:
● Reduce the use of petroleum by accelerating the deployment of plug-in electric-drive vehicles in the United States.
● Reduce greenhouse gas emissions by accelerating the deployment of plug-in electric-drive vehicles in the United States.
● Facilitate the rapid deployment of plug-in electric-drive vehicles.
● Achieve significant market penetrations by plug-in electric-drive vehicles nationally.
● Establish models for the rapid deployment of plug-in electric-drive vehicles nationally, including models for the deployment of residential, private and publicly available charging infrastructure.
● Increase consumer knowledge and acceptance of plug-in electric-drive vehicles.
● Encourage the innovation and investment necessary to achieve mass-market deployment of plug-in electric-drive vehicles.
● Facilitate the integration of plug-in electric-drive vehicles into electricity distribution systems and the larger electric grid while maintaining grid system performance and reliability.
● Provide technical assistance to communities across the United States to prepare for plug-in electric-drive vehicles.
● Support workforce training across the United States relating to plug-in electric drive vehicles.
Toyota Announces Recall for Avalons
Toyota Motor Sales, U.S.A., Inc., July 29 announced that it intends to conduct a voluntary safety recall involving approximately 373,000 2000-2004 Model Year Toyota Avalons sold in the United States to address the possibility that the vehicle’s steering lock bar could break under certain conditions. No other Toyota or Lexus vehicles are involved in this recall.
Because of improper casting of the steering lock bar, which is a component of the steering interlock system, there is a possibility that a minute crack may develop on the surface.
Such a crack may expand over a long period of repeated lock and unlock operations, and eventually the lock bar could break. If this occurs, the interlock system may become difficult to unlock when stationary.
If the vehicle while being driven is steered to the right with sufficient lateral acceleration, a broken and loose lock bar may move toward the steering shaft.
If the engagement hole in the shaft happens to line up at the specific time the broken lock bar has moved, this could cause the steering wheel lock bar to engage, locking the steering wheel, and increasing the risk of a crash.
LKQ is Fueling Smarter to Expand its "State of Greenness"
LKQ operates from nearly 300 facilities nationwide and surpassed $2 billion revenue in 2009. It’s an enormous company that could potentially burn many unneccesary thousands of dollars on fuel and electricity every month. But, by staying ahead of the game in its pursuit of ultimate greenness and sustainability in parts recycling, LKQ has quickly become a leader in re-using, remanufacturing and recycling everything it can while using fewer of the world’s natural resources in the process.
To view a PDF of this article please CLICK HERE.
LKQ is a recognized leader in recycled auto parts and uses environmentally friendly business practices and while recycling 492,000 vehicles last year. That is equivalent to recycling about 540,000 tons of steel, 47,000 tons of aluminum, and 13,000 tons of copper, according to the company’s web site. Through its operations, LKQ helped to reduce greenhouse gas emissions by over 890,000 tons, which is about the same as the annual emissions of a city of about 82,200 people.
“In addition, LKQ recently partnered with the Arbor Day Foundation to give its customers and anyone else interested in helping the environment an additional way to be green in the company’s LKQ Get Green promotion, which ran from April 22 to June 30 of this year. Together with its customers, LKQ was able to plant a forest at the conclusion of the program.”
Paul Shaw is LKQ’s Central Region Vice-President, overseeing Colorado, South Dakota, Nebraska, Western Iowa, Western and Southern Missouri, Kansas, Oklahoma, Texas, Northern and Western Louisiana.
Len's Auto Body Endorses Oceanside's Pro Spot Quality Welding Systems
Len’s Auto Body Inc. is in Oceanside, CA—the hometown of Autobody News. It was founded in 1985 and has grown to become one of the largest and most prominent body shops in San Diego’s North County region.
To view a PDF of this article please CLICK HERE.
The shop facility is 38,000 square feet and the property is around 86,000 square feet. Len’s employs about 30 employees including 4 Estimators, 8 auto body technicians, 6 Apprentices, 2 Painters, 3 Prep, 2 Detail, 1 ASE Certified Mechanic, 1 Parts Manager, 1 Production Manager and a complete office staff. Len’s technicians are all I-CAR Gold Class Certified and their mechanics are ASE Certified.
Len’s sees around 200 cars per month and is able to gross about $6 million per year for all operations. Len Verheyen and his wife, Anne, have been running the business as a family team since its founding.
Verheyen was able to learn about the automotive industry from doing body work with his dad in Sydney, Australia in the 1960s. Anne handles the customer service and insurance connections for the business.
In 2002 the shop moved from their original location in Oceanside to a new building about 2 blocks away that Verheyen had designed himself.
Oakland Park, FL's ECO-Friendly Auto Center Receives Green Certification
ECO-Friendly Auto Center in Oakland Park, FL, received Florida State Green Certification through Certified Green Partners (CGP) on August 5. ECO-Friendly received this certification thanks to processes and techniques they use daily in their shop.
To view a PDF of this article please CLICK HERE.
Florida city officials as well as representatives from suppliers attended ECO-Friendly’s Certification Ceremony at the shop on August 5.
“From day one I had being green in mind,” said Sully Dawson, owner of ECO-Friendly Auto Center.
The auto center had to be audited by Certified Green Partners before receiving this certification. The entire shop and all of its processes were looked into by an auditor from CGP to make sure the shop held up CGP’s standards for certification.
ECO-Friendly recycles just about everything possible around the shop from scrap metals to batteries to office papers.
Roy Rogers Body Shop: Old World Craftsmanship, Education in Laurel, MS
Roy Rogers Body Shop in Laurel, MS, has been a family-run business since its founding in 1954. Current Vice President Ann Smith’s father opened the original shop on Mason St in downtown Laurel. Ann and her brother, Thomas Rogers, moved the shop to its current location in 1979.
To view a PDF of this article please CLICK HERE.
“Our business is 56 years old, we’re a family business that is in its third generation of ownership,” said Ann.
Ann felt that being a family run business for so many years had allowed the shop to focus more on their craftsmanship and the quality of work turned out by the business.
Roy Rogers’ facility is just under 15,000 square feet in total; 10,000 of that is collision repair area, 3,000 is for paint and the rest is taken by office space. Roy Rogers employs about 12 employees and sees nearly 120 cars per month for all operations. The shop is able to gross just under $2 million annually.
All Roy Rogers technicians are ASE and I-CAR certified; the company focuses heavily on getting their employees as much education and training as possible.
Access and Use of Shop Data Raise Privacy Concerns for the Industry
Concerns about data privacy prompted the formation this spring at the Collision Industry Conference (CIC) of a taskforce focused on the subject. At CIC in Chicago in July, Tony Passwater, an industry trainer and executive director of the Indiana Auto Body Association, said that the new taskforce that he chairs has in recent weeks been discussing and finalizing its objectives.
To view a PDF of this article please CLICK HERE.
The primary issue, he said, is that as the industry’s information providers move toward “cloud computing” systems—in which a shop’s estimate and even management system information is stored on the system provider’s computers rather than the shop’s— concerns are being raised about access to and use of the data.
“I don’t think the current data privacy policies and terms-of-use address all the ramifications of that,” Passwater said.
OE Repair Information Sets the Standard
From quick fixes to major structural repairs, OE information is the gold standard for collision repair. When you can demonstrate that a vehicle has been repaired to OE standards, you assure the vehicle owner and the insurer that quality and passenger safety are your first concerns.
To view a PDF of this article please CLICK HERE.
Access to affordable OE information, such as that found in ALLDATA Collision, can positively impact your entire operation. Guesswork is eliminated, meaning you never have to worry about the vehicle coming back because it may have been repaired improperly.
Having OE information on hand for every specific vehicle allows for greater efficiencies and accuracy throughout all shop operations, from estimating and parts ordering to production, scheduling and repairing the vehicle. Important benefits may include a reduction in supplements and enhanced negotiations with insurers.
OE repair information also makes it possible to perform mechanical procedures that you may routinely outsource, which may include drivetrain, suspension or steering system repairs. What’s the result? Less money flowing out the door.
I-CAR Announces New Structure to Its Training, Recognition Programs
John Edelen said that three years ago when he stepped out of retirement to take on the role as CEO of I-CAR, someone well-known and respected in the industry asked him why he would “waste his time” with an organization like I-CAR that was “no longer relevant.”
“At first I was stunned, and then I was really … angry,” Edelen said, obviously choosing the adjective carefully, generating laughs among the 200 people gathered in Chicago for an I-CAR event this summer. “I-CAR irrelevant? An organization that was established by the inter-industry 30 years ago to meet the training needs of the inter-industry … irrelevant? After 30 years of efforts by volunteers to provide that training … irrelevant? After the industry had spent $170 million over that period of 30 years … irrelevant? Not if I could help it.”
To view a PDF of this article please CLICK HERE.
Over the last three years, Edelen has overseen I-CAR’s efforts to reach out to the industry to find out what the training organization was doing right and what needed to change to ensure that its training and recognition programs were focused, valuable – and relevant – to shops, insurers and educators.
Edelen said the results of that effort, which were rolled out at the Chicago meeting, is I-CAR’s new “Professional Development Program.”
The Lack of Industry Leadership
I am a member of the CAA, the SCRS and a Gold Pin holder of CIC; I have some questions for all these organizations.
My first question is to the board of the CAA. As a member of the CAA, I want to know where the board stands on aftermarket parts? Do you agree with the aftermarket parts companies when they say they have tested their parts and they are the same as OEM parts according to the law that reads that the parts must be of ‘like kind and quality’ to the OEM’s?
To view a PDF of this article please CLICK HERE.
Or, do you agree with the recent tests that have been conducted by Ford Motor Company that proves that they are not the same? I want to know where you stand on this issue because as this industry issue has come to the forefront at CIC (with Toby Chess and his now famous rebar test) you have been quiet as to where the CAA stands on this issue. It seems that you should have some opinion and I would like to know what it is and why you have chosen to keep quiet on such a controversial industry issue.
As a member of the CAA, I want to feel comfortable that the organization is looking after my best interest as a shop owner.
Three Gallons of Trouble
One of my regular customers brought his adult son into the shop the other day. It was right at opening time and the good old dad made it a point to tell his son, “Gonzo, probably hasn’t had his coffee yet so go easy on the old guy.”
He was right about the coffee, but that still didn’t prepare me for the story I was about to hear.
To view a PDF of this article please CLICK HERE.
The story started sometime earlier, about two years ago… apparently I changed the fuel pump on the son’s car back then. The owner decided his gas mileage had dropped considerably. To the point that he was concerned and very upset that there was obviously something that I had done wrong to cause it. I guess it had been grating on him for two years.
He insisted that the new fuel pump was to blame because he always tracked his mileage by way of his trip odometer. Before the new fuel pump he would get close to 400 miles per tank. His accuracy was noted on his little log book and showed how much gas he would refill his tank with. It was always around 23 gallons and never a drop more than 23 gallons. But now his tank was holding 26 gallons.
His question to me was, “So, where is the other three gallons going?” I had to laugh. I’ve changed a lot of fuel pumps but I never have had anyone come in and tell me that the tank suddenly holds more fuel than before.
'Bird Dogging' -- Guerilla Tactics for Small Body Shops
Some say the recession is over, but from my observations, that recovery hasn’t trickled down to most body shops yet. I see the large shops going after the incidental jobs that used to sustain smaller shops. When some of their DRP work slows down or dries up, they begin to look for ways to pick up jobs that normally went to their smaller competitors.
To view a PDF of this article please CLICK HERE.
I’ve written before about the owner of a small shop in my area who had a direct guerilla strategy for times when business was slow. He drove over to the local college and walked around the parking lot looking for damage on the Lexuses, BMWs and Mercedes affluent parents had purchased for their college-age kids. He would write a rough estimate on the back of one of his business cards and stick in by the driver-side door handle and lock. He told me he always picked up a few jobs to get through a slow time.
I’ve suggested a similar tactic to one of my clients who has come under attack by large competitors who are trying to capture the authorized collision repair status he has enjoyed for many years. At this point he needs a guerilla strategy to counter the big shop warfare advantage he faces from competitors who employ top professional marketing attack dogs. The approach I’ve suggested is an expanded version of the college parking lot solicitations. I described this briefly in an article in 2008, but the economic climate today calls for a more powerful version of this guerilla tactic.
Building A Numbered Car Exactly Like the Red Mist, Part Two
This column is part two of Rich Evans’ column from our July 2010 issue titled Building a numbered car exactly like the Red Mist in Kick Ass.
To read that column go to www.autobodynews.com > columns > Rich Evans.
To view a PDF of this article please CLICK HERE.
Back to the Red Mist project. The car is identical to the one in the movie Kick Ass and is on its way back to Woody Frees and his sons. Paying attention to detail and quality is what it’s all about. Never be in too much a hurry to do a project. Just make sure you get it done right.
Let’s review the steps and procedures that it took to get Woody’s car done and on the road back to Fort Lauderdale, Florida. When we we left off in July I had just widened the rear end 3 inches, installed my body kit, mocked it up, and we used the mar-glass fine hair (from Marson®) to bond the body kit to the 2008 GT Mustang. Now to shape the rear flares so it’s part of the body and also mold in the rockers to the fender and the rocker panel. I’m going to use the mar-glass to blend it because it’s stronger material than the Bondo™. I use the 3M® tape and I’ll align myself about 2 inches away from where I want to mold the two panels together. That way when I’m spreading the mar-glass I’ll be able to pull the tape and not have so much extra sanding work. You’re not really having a heavy build but you have enough build to seam that metal to the fiberglass and not have the seam break loose after primering and painting it. That’s why I chose the mar-glass. It’s a short-strand fiberglass reinforced auto body filler. I’ll apply Bondo™ on top of that. After 2 or 3 days getting these panels shaped up with 36 grit. I’m going to use the Soft-Sanders™ with this body kit. The Soft-Sander™ blocks are an everyday use of mine anyways, but these blocks really truly save me up to 75% of the time because of all the shapes that they come in. So I’m able to get in the grooves. I’m able to sand a continuous stroke and also shape better with the Soft-Sander™ blocks just because you’re able to form them to the radius of what you’re sanding. They come in different sizes: 4-inch, 8-inch and 12-inch. With my body kit it’s really got a lot of shape to it so these blocks are able to get me there quicker. If you go to www.softsanders.com you can get a whole list of their product. I’ve always said time is money and this product is a time and money saver. I wish I had run across it 15 years ago.
California Congresswoman Jackie Speier Talks with Autobody News
Pictured left to right are Jackie Speier, Chad Amaradio, Allen Wood, and Lee Amaradio, Jr. at a meeting in Congresswoman Speier's Sacramento office.
INTERVIEW
California Congresswoman Jackie Speier talked with Autobody News about her long-time consumer interests, including finance reform, insurance andautomotive repair issues, replacement parts and steering.
She knows far more than most politicians about these issues because she’s carried much related legislation in California.
Collision repairers nationwide need to pay attention. In an interview conducted by Ed Attanasio, he asked her:
“You first came to national prominence as a shooting victim —the prelude to the grisly nine hundred murder-suicides in Jonestown, Guyana, in 1978. At that time you were a 28-year old lawyer and legislative aide accompanying Congressman Leo Ryan to inquire about Jim Jones’ Peoples’ Temple cult.
Many of our readers know that five of your party, including Congressman Ryan, were killed, and that you were left for dead for nearly 24 hours before help arrived.
What readers likely don’t know is that after your rescue you endured a dozen surgeries to recover from five gunshot wounds, and that you still had bullet fragments in you when you first ran for Congress.
Tragedy struck again in 1994 when your first husband was killed when his car was hit by an unlicensed driver with faulty brakes.
What no one but you knows is how these horrific experiences shaped your political views and perceptions. Tell us how they did”
To view a PDF of this article please CLICK HERE.
Can you tell us how your views on political or consumer issues may have been shaped by those horrific experiences?
Personal tragedy has strengthened my resolve not to waste a day of my life. I’ve chosen public service as a way to give back. Simply put, I am drawn to finding out the facts when the voice of special interests attempt to drown out the truth—this mindset has frequently put me in the position of protecting consumers.
Tim Morgan Appointed GM at Celette-Elektron
Celette Inc. and Elektron Inc. have announced the appointment of Timothy Morgan as General Manager for both companies. He replaces Matthias Larisch, who left the organization. Morgan most recently served as the Celette-Elektron Director of Sales and Technical Operations. He has more than 30 years of experience in the automotive industry, including more than 15 in collision equipment distribution, marketing and education.
“We will continue the improvements we’ve made over the last eighteen months in customer service, distribution and training. We’re very excited about the opportunities in the U.S. and Canada for both our flagship brands,” said Morgan.
Celette is a leading producer of automobile frame repair benches and measuring devices. Elektron is a respected manufacturer of spot welders and other equipment for the auto body repair industry. Their equipment is specified by most European car manufacturers as well as a large number of Asian and American makes.
HYUNDAI STATEMENT REGARDING COLLISION REPAIR PARTS
FOUNTAIN VALLEY, Calif., 07/22/2010 Hyundai Motor America does not support the use of aftermarket, imitation or recycled collision repair parts. The use of such parts or other non-original Hyundai equipment for the repair of any collision-damaged vehicle may negatively affect crashworthiness and occupant safety during a collision therefore is not supported by Hyundai. Additionally, Hyundai does not support the use or re-use of components removed or recycled from an existing collision-damaged vehicle.
Hyundai vehicles and Hyundai Genuine Parts are designed and manufactured to meet Hyundai’s exact engineering specifications and to protect vehicle occupants in collisions. Genuine Hyundai Parts, including all elements of Hyundai’s air bag occupant restraint systems, are crash-tested to ensure they meet the U.S. government’s rigid collision safety and crash protection standards. Genuine Hyundai Parts work in concert to ensure occupant protection, vehicle integrity, and proper airbag deployment.
CAPA Takes on the Aftermarket vs. OEM Parts Debate
"A recent test conducted by the Certified Automotive Parts Association shows why it’s important to make sure you get automaker-certified replacement parts after an accident. The video shows a last-generation Ford Fusion front bumper in a 6.1 mph collision, the aftermath, and then another collision using a replacement bumper for the car from a third-party supplier.
The stark difference is due to the plastic materials that make up each bumper. The Ford is a composite of polycarbonate polybutylene terephthalate, or PC/PBT. It’s is a relatively elastic plastic that can deform and bounce back to its original shape. The knock-off is made of acrylonitrile butadiene styrene, which is brittle. The knock-off bumper uses a non-spec plastic despite having the words “PC/PBT” disingenuously printed all over it.
The outcome is that the aftermarket bumper will not perform the safety function it was designed to perform — namely, to protect a vehicle from structural damage in a low-speed impact and to cushion the blow to passengers in a high-speed one.
CAPA blames the above incident on a lack of standards in the aftermarket parts business. Non-manufacturer-built replacement parts became popular in the 1980s as auto insurers looked at third-party parts as a relatively cheap way to keep costs down, CAPA says. Some insurers have since then suspended the use of third-party bumper replacements in light of the study."
Texas Insurance Commissioner Reminds Insurers about State Steering Laws
Texas Insurance Commissioner Mike Geeslin issued a bulletin Aug. 2 reminding insurers writing PC insurance about their responsibilities under the state’s steering laws. The notification also specifically stated that it is an “unfair claim settlement practice for insurers to pay claimants an amount for the repair of the vehicle, including parts, that is not a reasonable amount for repairing or replacing the property with other of like kind and quality.”
Why is Camry "B" Pillar Reinforcement Repair Done at the Roof Line
Aloha Toby,
I just got done reading your article (Heat? On a Toyota Front Frame Rail? No Way !) in the July edition of Autobody News. I’ve always considered myself fairly smart and up to date with repair standards but after taking the “test” and feeling a bit foolish, answering only 7 correctly out of the 15 question, I have to agree with you that we can no longer repair vehicles the way we used to. Acquiring the vehicle manufacturer’s repair procedures before you start the repairs and following their recommended repair procedures is the only way to go. Thanks for all that you do, for all of us in this industry… keep up the great work that you do!
Mahalo,
Dale Matsumoto
Auto Body Hawaii
Aloha Dale: Mahalo for the compliments and your honesty. One of the major problems that our industry is facing today is lack of knowledge on “the why” we do certain procedures and not on “the how”. Case in point. Why is the “B” pillar reinforcement replacement on a 2009 Toyota Camry done at the roof line instead of sectioning? Let’s take a look at the why first and then the how.
To view a PDF of this article with photos please CLICK HERE.
Red Green's Solution to Dents and Dings (Comedy)
Parts for Profit 5: Pricing---Sensitive and Often Misunderstood
Pricing is a sensitive and sometimes misunderstood issue. In this month’s article I’ll attempt to cover some basic facts, clear up some misconceptions—and attempt to increase your opportunities for communication with customers and management.
Pricing is an issue with no absolute answers, only guidelines; since a tremendous number of variables make up the final cost. The retail price of parts is fixed and published. Profit is the difference—but how much profit is there, and who gets it?
Committee Prompts Discussion of Means to Implement Future Repair Standards
If the industry developed a formal set of “repair standards,” what then?
That was the question a Collision Industry Conference (CIC) committee attempted to prompt discussion of at CIC’s meeting in Chicago in July.
Jeff Patti, chairman of the Industry Standards Committee, said his committee felt than in addition to working on the proposed set of standards, it should also begin the process of considering what might be the next step.
He outlined the proposed creation of a non-profit organization that would oversee the final development and implementation of the standards. Although designed primarily to prompt discussion of the topic, Patti’s proposal included details down to the level of potential costs for launching such an organization and possible fees for those wishing to participate.
Such an organization, Patti said, would be limited to one focus: the development and implementation of the standards.
It would work to gain consensus from “all stakeholders in the industry” for the standards, he said, thus following the guidelines established by the American National Standards Institute (ANSI), the body that essentially sets standards for standards-development.
Nissan Looks to Mexican Exports, U.S. Plants
According to reports made by Bloomberg, Nissan Motor Co. will boost output capacity in Mexico to about 700,000 vehicles a year and may consider increasing exports from the U.S. as the strong yen makes North American production more competitive.
Nissan, Japan’s third-largest carmaker, is spending $600 million to upgrade two Mexican auto plants and is increasing U.S. production as a stronger yen make exports from Japan less profitable. The yen has risen against all the world’s major currencies in 2010 and is up about 5 percent against the U.S. dollar and 14 percent against the euro this year.
Nissan, based in Yokohama, has declined 20 percent this year in Tokyo trading.
The automaker has already moved some production overseas from Japan, citing the nation’s rising currency. The company has begun assembling its new March small car in Thailand and will start making it in Mexico in 2011.
New Mexico Appoints Franchini Insurance Superintendent
According to reports made by Insurance Journal, the New Mexico Public Regulation Commission has appointed John G. Franchini Superintendent of Insurance by a 4-1 vote. Franchini, a New Mexico native, boasts nearly four decades of insurance industry-related experience and said he looks to use that experience to move the Division of Insurance forward.
"I've devoted the majority of my professional life to guaranteeing and protecting New Mexico policyholders' rights with regards to their insurance," Franchini said. "As Superintendent of Insurance, I will make sure New Mexicans have the protection, cooperation and assistance of the Division of Insurance in handling their insurance questions and needs," he said.
Prior to his appointment, Franchini served as vice president of government and industry affairs for the New Mexico Mutual Group from 2004 to 2010. Before that, he was vice president of Brown & Brown of New Mexico Inc., and from 1984 to 1988, he served as president and owner of Franchini Consolidated Agency, Polson Mercer Insurance & Real Estate, Williams Consolidated, Chama Insurance Services, Consolidated Mortgage, Franchini Travel.
Toyota Launches Tacoma Production in San Antonio
Production of the Tacoma pickup truck began in July but was marked August 6 with a ceremony at Toyota Motor Manufacturing, Texas, Inc. The $100 million investment boosts total investment to $1.4 billion.
Texas Governor Rick Perry joined San Antonio community leaders, team members, suppliers as well as Toyota officials including Toyota Motor Corporation Executive Vice President Atsushi Niimi.
Tacoma’s production move to TMMTX was announced a year ago and adds 1,000 jobs. Today, over 2,800 team members are employed at TMMTX and the plant is fully positioned to ramp up Toyota’s pickup truck production for the American market.
NACE 2010 schedule at a glance
N. Las Vegas Fire Capt. Indicted on Attempted Insurance Fraud
A North Las Vegas fire captain has been indicted on arson charges after his vehicle was found on fire a day after he reported it stolen from a gas station, the Nevada attorney general said.
Attorney General Catherine Cortez Masto said in a statement that Gary V. Stover has been indicted on felony charges of arson, arson with intent to defraud insurer, insurance fraud and two counts of theft.
Ray Gunder Updates his Case Against State Farm
In response to numerous inquiries regarding the status of the Slander and Tortious Interference case Gunder’s Auto Center has against State Farm; we have filed our appellate brief and State Farm has filed their rebuttal and we are currently awaiting the courts ruling relative to a request for Summary Judgment presented in the matter. We anticipate success in this regard and to move forward to achieving the ultimate goal of “having our day in court."
This entire matter hinges on whether any insurer, including State Farm, can merely target a repairer and have the right to say anything they wish with the intent to harm the repairer and disparage their good name in an effort to interfere with the relationship between the repairer and their customer; so long as the insurer does not breach the legal limit referred to as “Expressed Malice”. It is my understanding that according to State Farm, this means they can say anything they wish about me and my company up to the extent that one is a “murderer” or “rapist” etc.!
Customer Satisfaction with Auto Insurance Companies Declines Considerably from 2009
Amica Mutual Ranks Highest among Auto Insurers for an 11th Consecutive Year
After peaking in 2009, overall customer satisfaction with insurance companies has declined significantly in 2010, according to the J.D. Power and Associates 2010 U.S. National Auto Insurance Study released Aug. 3. Overall customer satisfaction averages 777 on a 1,000-point scale, decreasing by 10 points from 20091.
The study measures customer satisfaction with auto insurance companies across five factors: interaction; policy offerings; billing and payment; price; and claims. The decline in overall customer satisfaction in 2010 is largely attributable to declining satisfaction with price, which has decreased by more than 30 index points compared with 2009. At the same time, price has also gained in relative importance as a driver of overall satisfaction.
The study finds the proportion of customers who report experiencing an increase in premiums has increased significantly to 22 percent in 2010, compared with 17 percent in 2009. In addition, six in ten policyholders who have experienced a premium increase indicate they received no advance notice of the change from their insurers.
Mississippi's Toyota Auto Body Confirmed to Supply Toyota Parts
Auto Parts Manufacturing Mississippi, Inc., the U.S. operations of Toyota Auto Body Co., Ltd., will move forward with its plans to provide stamped parts, body weld parts and plastic parts to the Toyota Motor Manufacturing Mississippi plant at Blue Springs.
Governor Haley Barbour announced the restart of construction on the $200 million facility in Baldwyn on July 30.
The plant is expected to employ close to 300 people.
A Japanese newspaper reported the work was resuming two weeks ago, but at the time, local industry experts told WTVA it was just a rumor.
The Governor says he expects other suppliers to the Toyota Mississippi plant in Blue Springs to announce resumption of work soon.
Washington State Auto Glass Shop Charged with Insurance Fraud
Glassbytes has reported that a Washington State auto glass shop owner has been charged with three counts of first-degree theft for allegedly billing State Farm Insurance, MetLife and Allstate a total of approximately $1.5 million between September 2005 and December 2009, according to Rich Roesler, a spokesperson for the Washington state insurance commissioner’s office. Prosecutors allege that Michael Alan Perkins, who owns Autoglass Express Inc. and Premier Auto Glass, both of which are based in his home in Burien, Wash., installed generic or aftermarket glass in approximately 4,800 cases, but charged the insurers for OEM product.
NSF's Auto Aftermarket Parts Certification Program Certifies First Automotive Collision Safety Parts
Diamond Standard Parts LLC’s front steel bumpers, which are manufactured by Reflexxion Automotive and Production Bumper Stamping, Inc. (PBSI), have become the first automotive aftermarket parts to be certified under NSF International’s new Automotive Aftermarket Parts Certification Program.
Reports continue to emphasize the importance of manufacturing replacement structural parts to standards that replicate the safety and damage criteria design of the original vehicle part. NSF International’s Automotive Aftermarket Parts Certification Program offers independent, third-party testing and certification of these aftermarket structural parts to help instill confidence in the performance and quality of these parts.
Mitchell's Latest Industry Trends Report Focuses on Increased Repair Costs for Hybrids
The latest Mitchell ITR Quarterly Feature, "Are Hybrids as Green When it Comes to Their Claims Costs?" by Mitchell's Vice President of Industry Relations, Greg Horn, reveals new information about the claim costs of hybrid vehicles, which in recent years have become a much more common sight on the nation's highways and are appearing in collision repair shops more frequently.
Mitchell's Latest Industry Trends Report Focuses on Increased Repair Costs for Hybrids
The latest Mitchell ITR Quarterly Feature, "Are Hybrids as Green When it Comes to Their Claims Costs?" by Mitchell's Vice President of Industry Relations, Greg Horn, reveals new information about the claim costs of hybrid vehicles, which in recent years have become a much more common sight on the nation's highways and are appearing in collision repair shops more frequently.
California BAR Proposes Retiring Greater Number of Older Vehicles
The California Bureau of Automotive Repair (BAR), within the state’s department of Consumer Affairs, has proposed changes to its Smog Check Program. The BAR wants to update the regulations involved in the Smog Check Program to speed up the retirement of older, high-polluting vehicles. The program was designed to reduce emissions by requiring vehicles to meet certain standards. Owners of vehicles not meeting these standards can retire their vehicles for monetary compensation.
Currently, the regulations involve retiring vehicles for failing biennial smog checks. Among the new regulations is a plan to incorporate off-cycle vehicles into the program. As a result of these new monetary incentives, it is believed that 11,500 additional older vehicles could be removed from the road annually.
The Automotive Service Association encourages independent repairers to visit its legislative website, www.TakingTheHill.com, to view the BAR’s proposed regulation.
i-team Atlanta VIDEO aftermarket parts story
The Fox 5 Atlanta i-team did an indepth investigation of aftermarket parts for their July 29 broadcast.
In the report the team interviewed a consumer who’s truck was being fixed with aftermarket parts at the request of his insurance company.
The Ford F150 owner, Craig Brown, tried to go to his insurance company, Grange Insurance, and request that his truck be fixed with Original Equipment Manufacturer (OEM) parts instead of aftermarket parts.
Brown was turned down by his insurance company several times; the company would only pay to repair the truck with aftermarket parts not Ford or brand name parts.
“This is not a Ford hood, it’s an aftermarket hood and right there you can see things are not lining up the way they’re supposed to be,” said Brown.
David Montanaro, owner of Performance Auto Collision in Alpharetta, GA and former insurance adjuster, believes generic parts are inferior to their OEM counterparts. During the report Montanaro and i-team reporter Dana Fowle attempted to bend an OEM BMW radiator support and an aftermarket radiator support. Fowle could not bend the OEM support but crushed the aftermarket support with ease.
“This is the part that’s supposed to help keep you from getting hurt in an accident,” said Fowle.
Many demonstrations of the difference between aftermarket parts and OEM parts have been cropping up across the country; from industry experts to government officials.
The i-team also spoke to David Colmans, Executive Director for the Georgia Insurance Information Service, about the lack of regulations and standards for aftermarket parts.
“Aftermarket parts are not regulated ... from a federal government standpoint they are not regulated,” said Colmans.
Cosmetic aftermarket parts are regulated by the Certified Automotive Parts Association (CAPA), but the association does not regulate any of the structural aftermarket parts used for repairs.
As the i-team explains, CAPA only regulates cosmetic parts such as grilles and tailgates.
“Structural parts meet no standards at all,” said Fowle.
Although the jury is still out on whether or not aftermarket parts are actually as safe as OEM parts, the i-team also revealed that some car companies may not honor warranties on the OEM parts in a car once an aftermarket part is installed.
The i-team was able to obtain a statement from Ford saying “that if any aftermarket part causes damage to a Ford part that’s under warranty, the warranty will not cover that repair.”
There is still some specualtion about whether or not all car manufacturers will honor warranties when aftermarket parts come in to play.
For more information please visit myfoxatlanta.com.
