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CARS (California Auto Repair and Smog) in Redding will celebrate the new veterans home that is being built in Shasta County with complimentary concierge pickup and delivery for veterans’ vehicles.

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Caddo Career & Technology Center, a vocational high school in Shreveport, LA, was named the Tomorrow’s Technician/Chicago Pneumatic 2010 School of the Year.

CLICK HERE TO READ AS PDF.

Students’ training begins outside the classroom, where instructor Mike Falkner and other instructors greet them at the door with a firm handshake and a good morning. Shirts must be tucked in, name tags must be visible and they’re reminded to look people in the eye when they speak.

“We run our class just as though they were going to work,” said Gary Weese, who with Falkner teaches students about everything under a car from bumper to bumper.

On hand to present the award and tools to the school were representatives from Tomorrow’s Technician, program sponsors Chicago Pneumatic and WIX Filters and custom hot-rod designer, builder and painter Rich Evans of Huntington Beach Bodyworks.        
More than 300 applications from secondary and community colleges were submitted for the contest, which recognizes the top automotive technical schools and instructors throughout the country. This was the first time a high school has won the award.

Stevens said the selection committee received a four-inch binder full of heartfelt recommendations from students, teachers, parents and community members about the school’s program. Student-teacher ratio, graduation rates and awards and recognitions also were considered.

Doug Albin, owner of Body Works Collision Center in Murietta, California, knows paint. He’s been painting cars since he was in high school and has owned a body shop for nearly a decade, so he knows what he’s talking about when it comes to paint and painting systems.

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Body Works Collision Center operates out of a 5,000-square-foot shop, generates $250,000 per month in sales, and performs 65–70 repairs monthly. The company employs 12–15 people depending on workload and seasonal spikes in business.  Body Works specializes in repairing Toyotas, Hondas, Acuras and Mazdas, but they’ll work on any non-exotic vehicle on the road.

Albin, 41, has been in the body shop business for his entire life, as a master tech and a painter. He’s a second-generation shop owner who worked every summer with his father’s body shop while in high school and also completed training to be a master painter shortly thereafter.

“My dad’s shop was called Albin’s Classic Cars in Newport Beach, and he worked restoring high-end expensive cars,” Albin said. “It was a great education, because I was allowed to step in and work on different types of vehicles. Some people are born to follow their parents’ career path and I gravitated toward the body business from day one.”

By doing rather than simply delegating every aspect of collision repair over the years, Albin has a unique and invaluable perspective of how to run a body shop from top-to-bottom and front-to-back.

The Northwestern Louisiana Collision Repair Association (NWLCRA) held several estimating courses May 11, 12 and 13 at the Louisiana Technical School Collision in Shreveport, LA.

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Mitchell International sponsored the courses which were taught by Dave Gauthier and provided basic as well as advanced techniques in the collision repair estimation field.

Two Best Practices beginners’ courses were taught for free as well as an Advanced Estimating course which carried a $25 fee.

Bill Burnside, NWLCRA past president and coordinator of this event, said, “It went fairly well, we had a good turnout.” He also said that the association would not object to holding the courses again in the future if interest was expressed from industry people in the area.

The Northwestern Louisiana Collision Repair Association helps to promote the automotive collision industry as a whole as well as educating the public and people in the industry about proper repairs.

The association also tackles industry issues and news during their meetings to inform members. The NWLCRA meets monthly to talk about news events and learn from industry speakers. More information can be found on their website at www.nwlcra.org.

Precision Body Shop & Detail, with two locations in Colma and San Rafael, CA, has grown rapidly, with more and more cars coming through every month. Having lots of work can be a blessing or a curse, because organizational and production bottlenecks can arise in minutes within a busy work environment.

CLICK HERE TO READ AS PDF.

Precision has not only survived, but thrived during a recession. They give a lot of credit to Mitchell International Inc. and the decision to adopt their market-leading business management systems.

Precision Body Shop & Detail was started 10 years ago with just three employees detailing cars primarily for new car dealerships throughout the Bay Area. In 2004, Precision’s dealerships started inquiring about doing minor body work on their fleets and the company jumped at the opportunity.

“We started out doing primarily paint, panel and hanging bumpers to go with our detailing for dealerships,” Caprini said.“Then, we realized we should do it all. So, starting in ’06, we began pursuing all forms of collision repair and it’s been a great business model for us.”

Caprini and his partner Lou Hanhan have tapped into their complementary skills to create a company that makes a profit and is poised for expansion.

Almost everyone in the collision industry has experienced this scenario: You repair a vehicle – in this case, a Chevrolet® Suburban® – to the highest standard possible. The owner takes delivery and drives off smiling. A few days later, he brings it back with a noise that he insists was not present before the repair. He describes a buzzing noise from the right-hand fender.

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What do you do? If you have OE information, including technical service bulletins (TSBs) available to you, you do a little research. Technical service bulletins are published by automobile manufacturers primarily to identify factory defects, safety related problems and recognized issues for which the manufacturer has published a solution.

As it turns out, the General Motors® had already issued a TSB describing the exact situation I just described.

Body - Buzz/Rattle From R/H Front Fender on Acceleration
Subject
Loud Buzz or Rattle Noise from Right Front Fender Area on Moderate to Hard Acceleration and/or Braking Torquing Around 1800-2000 RPMs or Before 1-2 or 2-3 Shift (Install Closed Cell Foam to Right Front Fender)
Models:
2007-2008 Cadillac® Escalade®, Escalade ESV®, Escalade EXT®
2007-2008 Chevrolet® Avalanche®, Silverado®, Suburban®, Tahoe®
2007-2008 GMC® Sierra®, Yukon®, Yukon Denali®

Get ready for the craziest, most outrageous highly addictive automotive show on television. That’s if and when the pilot for The Autoholics hits the air in the near future.

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Crash Element Entertainment, in Los Angeles, the producers of the new show, is touting The Autoholics as a combination of the “Best Damn Sports Show” meets “Martha Stewart,” and is preparing to pitch it to the major TV networks, Creator, Co-Producer, and Co-Host Diggity Dave told Autobody News.

“We think this show would fit very nicely on Saturday right after the automotive racing. We think it’s worthy to be on one of the major networks where it can hit its prime audience every week. We feel this would be a perfect time of the weekend for automotive fans to watch The Autoholics.”

Each week, The Autoholics will feature a panel consisting of some top names in the automotive and entertainment field, including Diggity Dave (credits include Pimp My Ride, Battleground Earth); Rich Evans (Chop Cut Rebuild, Monster Garage); Comic Billy Gardell (King of Queens, My Name is Earl); Bo Butner (NHRA world champion driver), and “Flames” (Host of Ford Motors Mustang Alley/Gilpin Auto Sports).

This assemblage of automotive expertise will hold court every week on their new and amazing set at Huntington Beach Bodyworks, Rich Evans’ shop, that’s been transformed into a rock ‘n roll romper room.

This month we’re going to cover a little different category than repair steps and procedures or building hot rods or repairing vehicles We’re going to talk about getting creative and using your mind to build with car parts.  I wrote a column in Autobody News (Sept. 09) about building a trophy for a Long Beach car show which was a big charity event last year. Ed Sunkin, an editor from Tomorrow’s Technician (a Babcox company), contacted me saying “I read that article on that trophy you built. We’ve got this school of the year award coming up and we wanted to know if you want to build a trophy?”

CLICK HERE TO READ AS PDF.

I said “You know what, I’m into it. I dig stepping away from everyday routine and trying out something different. I actually had fun when I built the trophy for the Long Beach Car show.”

I started wrapping my head around it and with help from Chicago Pneumatics and Tomorrow Technician, also WIX had joined us for this, our third year into this event and contest. This year there were more than 300 applications nominating more than 163 schools, the four finalists were Arapahoe Community College, Littleton, CO; Caddo Career and Technical Center, Shreveport, LA; Spokane Community College, Spokane, WA; and Carroll County Career & Technology Center, Westminster, MD.

Fasulo’s Paint and Body Shop unveiled their second Texas location in Silsbee, TX, 20 miles north of their flagship shop in Beaumont, this April and was able to receive over $70,000 in repair jobs during just their first month.

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David Fenner, the owner of both locations, couldn’t be happier with the productivity of both shops during this challenging economic period. The Fasulo family originally approached Fenner about buying Fasulo’s Paint and Body a few years ago; Fenner has been renovating and growing the business ever since he purchased it in 2005.

“We’ve actually been growing in Beaumont as well as in the Silsbee location,” said Fenner.

Fenner and his wife, Lisa, have managed to preserve the family-run shop feel while still growing the business and even opening a second location.

“Usually if I’m in one shop, she’s in the other so one of us is always at each location,” said Fenner.

The decision to start up another location during a declining economy came easy to Fenner, who said several insurance companies he works with expressed to him a need for a good repair shop to service clients in the Silsbee area.

The Beaumont location boasts a 22,000 square-foot facility, employing 18 people and pulling in about $2 million in revenue per year. The Silsbee location operates out of a 7,500 square-foot air-conditioned facility and employs 6 people; Fenner hopes this location will be able to draw in about $1 million annually once it gets going.

Writes Randy: “I was born in Cleveland Ohio, and grew up in a small city called Wickliffe where four siblings, a nephew and I were raised by my single mother.  Since I can remember I’ve had a pencil in my hand, drawing. I couldn’t get enough of it and had a passion for cars.

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Nothing can beat old American Muscle cars: Camaros, Cudas, Mustangs, etc. While looking for a way to implement both of my passions into one for a career, I found OTC. Here is where I developed these passions through the collision and repair and custom paint courses.

One day my class was told about a contest to design a picture for a tiger statue for the 2010 Year of The  Tiger Celebration. The Year of The Tiger public art project celebrates Cleveland’s Asian Town community. St. Clair Superior’s blossoming arts district and its thriving business community. The project is in commemoration of the Chinese Year of the Tiger which began with the new moon February 14, 2010.

I knew I wanted to do something noble, strong. A protector. The tiger statue was given to me where the first thing I started ground off the main under the jaw. The second thing was laying out my design. Third, start sculpting the armor out of a material called magic sculpt. This product gets rock hard and needs to be sanded. The wings have a metal frame that is welded together and actually sit over the tiger’s shoulders like a saddle and then I put magic sculpt over the frame. And fourth, I painted and cleared it and the finished product is what you see here.

During this creation I received help and encouragement from some people that I would like to thank, Mr. Downy, Mike Donahue, and Mr. Gold.

Leading automotive trade school Ohio Technical College is excited to announce The Rich Evans Academy; a three-month advanced collision repair and customizing program where students will learn fabrication, welding, water-borne painting and fiberglass molding, among other advanced skills.

Rich Evans, is an Autobody News columnist and owner of Huntington Beach Bodyworks in California, is a custom car builder, painter and TV personality who has appeared on such shows as “Monster Garage” and “Pimp My Ride.”

As part of the new partnership, he will work with OTC to develop a real-world curriculum based on decades of experience designing and building one-of-a-kind vehicles. Evans will also assist OTC in outfitting the Rich Evans Academy shop with the tools, training aids and equipment needed to facilitate the program.

“The new Rich Evans Academy is an advanced, concentrated course designed to give students employable skills that many of their peers will not have after graduation.  We are excited to partner with Rich, who shares his years of experience with our students as well as our instructors,” said Tom King, director of Enrollment, OTC.

California Congresswoman Jackie Speier has been the Collision Repair Industry's staunchest advocate for years.  

She's assisted in the fight against steering, paint capping and faulty aftermarket parts.

Please help her get re-elected to Congress this November.

Join us at a fundraising dinner in her honor in San Francisco.

The event takes place in July.

Join other shop owners and industry representatives in their efforts to keep collision's strongest voice in federal office.  For details concerning the event please contact Peter Bizaca at G&C AutoBody, 707-591-3365 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Although I know better than being surprised about issues that never seem to go away, it still puzzles me how we can hold on to some for as long as we do.

Open clearcoat blends have been attempted and discussed for many years and not once since the departure of lacquer type technology has anybody with technical knowledge decided that they are a really good idea. Granted, from a non-technical, purely financial point of view, they appear worth exploring. Fewer products applied should theoretically lower the cost of the repair, but the reality is quiet the opposite.

Let’s pretend, for the sake of conversation, that an open clearcoat blend within a panel would actually be durable enough to last. Prepping the panel for a successful spot repair is far more involved and labor intensive than a complete refinish of the surface. As a result, it eats up more expenses in labor cost than the additional clearcoat would ever be worth.

Let’s take a closer look into the prep requirement to make this repair happen. After you thoroughly clean the surface and remove any wax or grease, the body tech must repair the damage very carefully. It’s critical to not unnecessarily disturb any paint film surrounding the repair. I know that it is frequently underestimated, but keeping a repair small requires a better trained technician and a higher skill level. It also takes more time to keep it small.

With all the talk about the cars with push button starting systems and the runaway acceleration problems it made me think of what everyone has been talking about as the best method to safely stop a vehicle in these instances.

Most everyone will agree that turning off the ignition is NOT the best solution, however, not everyone can agree on whether or not a driver in a panic situation will remember to put the car in neutral instead of reaching for key, or that they shouldn’t turn the key back to the “steering” lock position.

And for those vehicles with push-to-start, would an operator remember that you have to hold the “start” button down for several seconds before the car will shut off unless it’s in park position.

So a lot of these conversations I’m involved in cycle back to the steering lock mechanism, which, in a panic situation is the deadly “lose control” factor. Let’s not forget that during this so-called emergency situation you might be traveling at close to 100 miles per hour, which could be scary enough without having to worry about shutting the car off.

The conversations I get involved in usually end up with whether or not the “general public” will remember and follow the procedures each and every time they are in an emergency situation.

Autobody News has been reporting for years on what shops are doing, plan to do and need to do to be both “Lean and Green.” Can a modern shop really be one without the other?

CLICK HERE TO READ AS PDF.

We are about to walk the walk, not just the talk, in our upcoming issues.

Starting next month, Autobody News will be doing special country-wide coverage on the “lean and green” issues that shops are implementing both now and in the future. Our summer theme is “what does it mean to be lean and green?” and we will explore the business consequences of what we see as the new norm in collision repair and in business in general.

Future cars will be more sensitive to repair procedures both in efficiency, safety, and performance aspects. Safety will involve both the owner-customer and the shop employees. More attention will be required on how to make your shop operate at peak efficiency. To keep up and make a profitable business operate, will be a challenge and an opportunity for shop owners and managers.

This is Part 3 of a series of articles for parts managers directly managing employees handling both mechanical and collision parts. The same principles apply to parts management in a body shop. To read Parts 1 and 2, see Autobody News, April and May 2010 editions or go online: www.autobodynews.com, Menu: Content > Distinctive Dealerships > Special Interest Articles.

By now, you should have accomplished nearly everything I suggested in order to create the most efficient parts department possible. Your bins are spaced and numbered for fast access; and the bins closest to your front and back counters hold your fastest moving parts. You have no obsolete or unnecessary inventory; since you have cleared out the “trash.” You have a neat shipping/receiving area, and a holding area for cores and returns. All “hot” incoming parts for service and wholesale accounts have their own locations. Inventory counts have verified the location and quantities for all of your parts on hand.

Your people are working in the locations and jobs that are best suited for them. All of your employees are knowledgeable in all aspects of paper flow and controls. Your training schedule assures full certification. Every work station is fully equipped, and set up to cover every need.

You have created a parts department that will return profits of 50% or more, and with proper leadership, it will be a happy workplace. This should be the goal of every parts manager. These guidelines apply to all automotive dealerships.

Your next area of focus should be to increase your sales.

CLICK HERE to read as PDF

A $50 million investment will create a partnership between Toyota Motor Corporation and Tesla Motors to produce electric vehicles and bring jobs back to the former plant owned by GM-Toyota called the New United Motor Manufacturing (NUMMI) plant in Fremont, CA, said the smiling CEOs on May 21.

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CEOs Elon Musk of Tesla and Akio Toyoda of Toyota were joined for the announcement by Governor Arnold Schwarzenegger, who also spoke, saying the deal was aided by tax incentives.

“What we are witnessing today is an historic example of California’s transition to a cleaner, greener, more prosperous future,” Schwarzenegger said.

According to the deal, both giant Toyota and tiny Tesla will be working together to manufacture Tesla model S sedan, which is a high performance electric sedan, competing with cars like the BMW 5-series.

Initially, the automakers are expected to produce 20,000 vehicles. The partnership could create 1,000 jobs initially and eventually as many as 10,000 worldwide. Half of the jobs are expected to be at NUMMI and the other half would be with suppliers, Musk said. Less than a day after the announcement, United Auto Workers (UAW) was urging Toyota to hire workers that were laid off at the old GM-Toyota plant.

UAW president, Ron Gettelfinger, said in a statement, “Our union’s hope is that this venture will give first hiring preference to former NUMMI employees who are already trained and highly skilled.”

On April 20th, an explosion on the Deepwater Horizon while drilling in an oil well off the Gulf Coast of Louisiana left 17 workers injured and 11 missing and presumed dead. Since that day, oil has been spilling from a BP offshore drilling well in the Gulf of Mexico.

The leak is currently discharging 200,000 gallons of crude oil a day, according to the official estimate, and efforts to manage the spill with controlled burning, dispersal and plugging the leak were unsuccessful. It is estimated that more than 6 million gallons of crude oil have spewed into the Gulf so far.

This oil spill is on track to become the worst oil spill in history, surpassing the damage done by the Exxon Valdez tanker that spilled 11 million gallons of oil into the ecologically sensitive Prince William Sound in 1989. Unlike the Exxon Valdez tragedy, in which a tanker held a finite capacity of oil, BP’s rig is tapped into an underwater oil well and could pump more oil into the ocean indefinitely until the leak is plugged.

The oil reached the Louisiana shoreline May 14, posing a serious threat to fishermen’s livelihoods, marine habitats, beaches, wildlife and human health.

The slick has forced the shutdown of the gulf’s rich fishing grounds and could also spread to the busy shipping lanes at the mouth of the Mississippi River, tying up the cargo vessels that move millions of tons of fruit, rubber, grain, steel and other commodities and raw materials in and out of the nation’s interior.

On May 18,  the Federal Court of Appeals in Atlanta, GA, ordered State Farm Insurance to undergo mediation with Gunder’s in an effort to bring a satisfactory resolution to Gunder’s claim against State Farm for Tortious Interference and Slander. (Tortious interference of business occurs when false claims and accusations are made against a business or an individual’s reputation in order to drive business away.) The Appelant court order was  in response to Gunder’s Auto Center’s request for appeal of a Florida courts recent summary judgment.

CLICK HERE TO READ AS PDF.

“If you read recent articles by some industry writers, they’ve made it sound as if we lost our case against State Farm and the matter was over and done with” says Ray Gunder, founder of the 42-year old family owned and operated Gunder’s Auto Center in Lakeland, Florida.

“It would appear that some writer’s intent is to vindicate Sate Farm’s actions and to discourage other repairers from stepping up and defending their good names and their businesses. Our case is far from over! We got knocked back a bit, but not knocked down or out.

“The slander case (which was summarily discharged by the lower court) allowed us a great deal of discovery and through many hours of depositions and review of acquired documentation we uncovered extensive evidence to support our claims.

Storms across Texas and Oklahoma wreaked havoc on the states with tornadoes and large hail; damages are still being calculated.

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Fierce winds and heavy rain caused thousands of power outages across the Texas Metroplex area Friday May 14. While the May 10 tornadoes in Oklahoma produced insured losses in the tens of millions of dollars, the May 16 hail storms caused monumental damage to windshields and structures across the state.

“Tornadoes are kind of hit and miss,” said Jerry Johns, president of the Southwest Insurance Information Service in Austin, Texas. “With a hailstorm, it’s a very concentrated weather event that affects block after block after block.”

Phones at the weather service office in Fort Worth were “ringing off the hook” Friday afternoon with reports of storm damage, said Dan Shoemaker, meteorologist.

Shoemaker reported that roads had to be barricaded in the Wise County community of Chico and in Mineral Wells. Shingles were blown from a roof in Saginaw, he said.

The weather service posted a flash flood watch through Saturday morning because thunderstorms and possible runoff remained in the forecast.

I try to write articles to help others out; articles that try to motivate shop owners and managers to do a better job. I have come under attack many times from some in our industry for voicing my opinion and being the person that is willing to speak up and say the hard truth.

Our industry wants “Change” but no one can agree what that change should be or what direction we need to go to get there. I have shop owners that hate me because I have DRPs and stand up for those insurers that I think are doing a good job. Some shop owners think we need to hate all of the insurers and saying anything less than that makes me a hypocrite.

Some think DRPs are the problem while others think they are fine. Some think the insurance company is our customer while others think the vehicle owner is the customer. Some like aftermarket parts while others stand against them. Some think the insurers are responsible for the repair process while others think it’s the shops liability for the repair. We cannot even agree on some of the simplest things.

The truth is that nothing has changed and it never will because we can’t even decide what change we want. If I were a commanding officer heading to battle and I ordered the troops to go in one direction and they just chose to go their own way and started fighting each other we would certainly lose any battle we were to fight. To win any battle the troops need to all be on the same page and they all need to support one another and have each other’s back, not stab each other in the back. This is why things will never change; we are not in agreement on anything as an industry.

This month we begin a new column in Autobody News which we’re calling Jobber Journal. Our first columnist/contributor is Richard Arnold. In future months we’ll bring you additional opinions and invite contributions from readers.

In my many years of working with a major PBE Jobber in the Southeast, I have observed that many of their shop customers undervalue them. Granted, a small minority of their customers totally understood the value jobbers brought to their shop. Over time I watched how this small minority of shops communicated with the Jobber sales reps and tech reps and used their knowledge and experience to grow their businesses. All the while the large majority of customers just kept on doing the same bad things over and over and getting the same poor results. Albert Einstein called insanity the act of “Doing the same thing over and over again and expecting different results.” I’m no Einstein, but I have to agree on his definition.

I believe a good PBE Jobber is a friend and ally. A PBE Jobber can be a shop’s best friend or vendor partner. I don’t mean “friend” because they give you the biggest discount on paint and materials. I mean “friend” in the true sense of the word. A true friend wants to see you succeed, prosper and be happy. The best PBE Jobbers want to see all of their customers succeed, prosper and be happy. When their shop customers do well, they do well. Make your Jobber your ally and partner.

The collision repair industry is changing at a faster pace now than ever before. New metals, waterborne coatings, lean production process, and multi-media marketing, just to name a few changes. A good relationship with your Jobber can pay big dividends. Consider them a member of your board of business advisors. Ask them for their thoughts and advice. Their answers may surprise and benefit you.

A local collision shop recently set up a table at a Volvo dealer’s Customer Car Care Clinic on a Saturday. While not the exclusive authorized repair facility for the Volvo dealer, the shop does a fair amount of repair work for the dealership’s customers. The cost for the body shop for piggybacking on the Volvo dealer’s event was very little. Two people attended to pass out T-shirts, pens, and other specialty items. They also prompted questions from attendees on the condition of their vehicle’s autobody, and offered a free diagnosis for paint wear, structural problems and more. Several potential jobs came out of these discussions.

With business volume and profits down these days, shops need to look for ways to cut costs and this includes marketing. Generally when business is slow the last expense a shop should cut is marketing, but piggybacking is a great way to stretch those marketing dollars. This same shop took advantage of another opportunity to share in an inexpensive event at a local high school. The school held a driver awareness day sponsored by the Department of Motor Vehicles, the Auto Club and a local TV station. A personal connection enabled the shop to set up an information table during the event. Since schools in this state no longer offer driver training programs, there is a good opportunity for collision shops to promote opportunities for events like this in local high schools. An insurance partner is likely to participate, and it shouldn’t be too difficult to recruit a local driving school and possibly even a towing company to join in.

Another shop has capitalized on a strong relationship with the owner’s church congregation. The church has a high school and the shop provided free repairs on a school bus as a contribution that resulted in an invitation to share in a church’s community event and to be listed in the church bulletin. Other local community events like parades and family fair days can provide a shop with an opportunity to have an information booth and to be listed in any event literature. Most of the costs of attracting attendees to these events have been covered by the hosting organization, and these are the biggest costs in putting on any event. I know of one dealership where about $10,000 was spent on a one-day open house. The cost of catering was far less that the promotional costs. The shop piggybacking on such events incurs practically no costs by comparison.

The U.S. Senate passed the “Restoring American Financial Stability Act of 2010” May 20. S. 3217, authored by Sen. Christopher Dodd, D-Conn., chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, aims to promote financial stability by improving accountability and transparency in the financial system, to end “too big to fail,” to protect the American taxpayer by ending bailouts, and to protect consumers from abusive financial services practices.

S. 3217, which has been amended since originally passing the Senate Banking Committee, establishes an Office of National Insurance within the U.S. Department of the Treasury. The office will be headed by a director who is to be appointed by the secretary of the treasury. The office’s main functions will be:

• to monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system;

• to recommend to the Financial Stability Oversight Council that it designate an insurer, including the affiliates of such insurer, as an entity subject to regulation as a nonbank financial company supervised by the Board of Governors pursuant to Title I of the Restoring American Financial Stability Act of 2010;

• to assist the secretary in administering the Terrorism Insurance Program established in the Department of the Treasury under the Terrorism Risk Insurance Act of 2002

The fallout in recent months from concerns raised about non-OEM bumper and structural parts raised by industry trainer Toby Chess was clearly on the minds of the parts manufacturers and distributors gathered in Indianapolis, Ind., this spring for the Automotive Body Parts Association’s 30th annual meeting.

At the Collision Industry Conference (CIC) this past November and January, Chess  demonstrated key differences between some non-OEM structural parts and the OEM parts they are being sold to replace. The demonstrations have led at least four insurers to pull back from asking shops to use certain non-OEM parts, and has led to new testing and certification efforts related to such parts. Chess’ latest presentation on such parts at CIC in April was halted at the last minute after he said he was threatened with a lawsuit by LKQ Corporation, parent company of Keystone Automotive.

In an unsuccessful bid for a seat on the ABPA board, Rob Wagman, of LKQ Corporation, told attendees if elected he would push ABPA to be more proactive on such issues.

“I reached out to the association in November after the first CIC demonstration, and quite frankly, I didn’t think ABPA did enough to get out in front of this thing,” Wagman told the 150 people attending the ABPA event. “I think on the board I would push to get the association out there, defending its membership and really getting in front of these guys who are coming after the industry. If we don’t act soon, I think we’re in a lot of trouble as an industry. If I was on the board, I’d want to make sure... that everyone knows we’re a quality industry that’s trying to help the [rest of the] industry and not bring it down.”

Keystone Automotive Industries and Transwheel Corp., subsidiaries of LKQ Corp., said a recent series of tests confirmed their wheel reconditioning technologies. All of the wheels tested met or exceeded the SAE J2530 and SAE J175 Technical Standards for dynamic radial and dynamic cornering fatigue, and impact testing.

Keystone and Transwheel employ Independent Test Services (ITS) to monitor their wheel reconditioning capabilities. The reconditioned wheels of Keystone and Transwheel are analyzed by ITS under conditions that are more extreme than those specified by SAE International. All three fatigue and impact tests are performed on each wheel, and at double the required rotation levels for the dynamic cornering fatigue test. Frequent testing enables the subsidiaries of LKQ to ensure their production processes meet or exceed the industry's technical standards.

"We stand behind the quality of our wheel reconditioning program," stated Jim Devlin, vice president of manufacturing for LKQ Corp. "We want installers and auto insurers to feel confident that they are using the highest quality wheels to repair their customers' vehicles. Our wheels are reconditioned using production processes validated to meet SAE's demanding testing requirements."

SAE Technical Standards serve as the fundamental and comprehensive set of common design requirements for the wheel manufacturing industry. Independent Test Services (www.wheeltest.com) has been providing testing services to Transwheel since 2000.

On May 18,  the Federal Court of Appeals in Atlanta, GA, ordered State Farm Insurance to undergo mediation with Gunder’s in an effort to bring a satisfactory resolution to Gunder’s claim against State Farm for Tortious Interference and Slander. (Tortious interference of business occurs when false claims and accusations are made against a business or an individual's reputation in order to drive business away.) The Appelant court order was  in response to Gunder’s Auto Center’s request for appeal of a Florida courts recent summary judgment.

“If you read recent articles by some industry writers, they’ve made it sound as if we lost our case against State Farm and the matter was over and done with” says Ray Gunder, founder of the 42-year old family owned and operated Gunder’s Auto Center in Lakeland, Florida.

“It would appear that some writer’s intent is to vindicate Sate Farm’s actions and to discourage other repairers from stepping up and defending their good names and their businesses. Our case is far from over! We got knocked back a bit, but not knocked down or out.

“The slander case (which was summarily discharged by the lower court) allowed us a great deal of discovery and through many hours of depositions and review of acquired documentation we uncovered extensive evidence to support our claims.

Says Gunder, "No, this is far from over; we just need our day in court to allow a ‘jury of our peers’ to decide who did what to whom and why. I believe this recent ruling by the Appellate court is telling State Farm that our case has merit and you’d better make this go away or else."

They (the court) could have merely declined to address it and they didn’t. We have a great deal of time and resources invested and I’m not giving up until we have exhausted every avenue of the legal system to reconcile the damages and harm State Farm has caused our family, my business, my employees and our customers.”

The mediation is currently scheduled for June 10th in Florida.

Nearly 100 students applied for a Craftsman tool grant through the I-CAR Education Foundation this spring, a record number of applicants for a foundation grant and/or scholarship.

Out of the student applicants, 17 were selected to receive a set of Craftsman tools valued at $575 each. The donated tool kits included a 268 piece Mechanic Tool Set with Lift-Top Lid Case plus Microtork Torque Wrench, a Craftsman 20 piece Super-Duty Punch and Chisel Set, and a Craftsman seven-piece Fiberglass Handle Body and Fender Repair Tool Set.

Sherwin-Williams Automotive Finishes hosts "Winning the Keys"  workshop in Napa.

AVIA Napa Hotel
1450 First Street
Napa, California 94559
United States
Map and Directions

The "Winning the Keys"  workshop focuses on three areas that are of critical importance to a successful collision center:

For more information link

Ford Motor Company is promoting that its vehicles cost less to repair, after a collision on average, than all other vehicles in their segments, according to a new U.S. government report based on insurance claims database. Auto insurance companies often factor in model-specific claims data in setting premium costs. Approximately 78 percent of Ford, Lincoln and Mercury models rated at or better than the industry average, nearly double Toyota's 40 percent (including Scion and Lexus), says Ford.

The National Highway Traffic Safety Administration (NHTSA) 2010 Relative Collision Insurance Cost Information Booklet shows more Ford, Lincoln and Mercury vehicles lead their segments for the lowest collision insurance cost than any other automaker.  The report will be available in all dealerships this spring to help consumers anticipate repair costs that insurers rely on for setting insurance rates.

Ford has 10 segments leaders, including Taurus, Focus and F-Series trucks, from the 2007-2009 model years, more than three times as many as Toyota and Honda combined.  The NHTSA ratings based on claim costs data from the Insurance Institute for Highway Safety.

The following is a joint statement by the Automotive Service Association (ASA) and Automotive Service Councils of California (ASCCA). The organizations are national and statewide membership organizations, respectively, of aftermarket service repair facilities and represent thousands of small business owners.

Recent public relations initiatives by AutoMD, a division of US Auto Parts Network, warrant a strong and clear response from the automotive repair and service industry. The company's recent activities include a press release ranking U.S. cities according to the "honesty" of auto repair facilities in each city, as well as a television segment on the CBS Early Show. In both of these PR efforts the company makes several claims and promotes a set of conclusions that are inaccurate and based on flawed logic and biased methods.

Six industry leaders were honored at the eleventh annual Most Influential Women in the Collision Repair Industry awards program held at the High Museum of Art in Atlanta on Wednesday, April 14, 2010.

Left to right in the photo are:
Marcy Tieger, Irvine, California; Kimberly Hicks, Highland Park, Michigan; Janet Chaney, Stevensville, Montana; Linda Sommerhauser, Kansas City, Missouri; Erica Eversman, Bath, Ohio; and Beth Meckel, Glen Burnie, Maryland.

The awards ceremony marked the eleventh anniversary of the Most Influential Women in Collision Repair.  “In the spirit of sustainability, AkzoNobel is proud to honor an exceptional group of leaders who are working for the betterment of our industry and our global communities and to provide opportunities for future leaders through the I-CAR Education Scholarship Fund,” said AkzoNobel Car Refinishes Americas Director of Marketing, Tim Loden.

Earlier this month Congresswoman Jackie Speier (D-San Francisco/San Mateo) launched her own exploration of the structural differences between certain vehicle safety parts by sawing through an aftermarket reinforcement bar in her San Mateo district office. The reciprocating saw she used didn’t dent the bar from the vehicle manufacturer.

Speier, author of California’s anti-steering law, stated,  “I’m concerned that vehicle owners who’ve been in an accident are unaware that replacing a reinforcement bar with one not designed by the manufacturer may compromise the safety of vehicle occupants in a subsequent collision. Airbag deployment can be thrown off by a reinforcement bar that doesn’t absorb shock in the way intended by the vehicle manufacturer.”

Speier conducted the test with the help of two collision industry experts: Lee Amaradio, president of the Collision Repair Association of California and Allen Wood, the association’s executive director.

Amaradio stated, “The congresswoman has always taken time to hear our industry’s concerns. The issue of aftermarket safety parts is of national importance. Hundreds of thousands of vehicle owners are driving around in repaired cars that won’t withstand a collision the way the manufacturer intended.”

A trio of auto association groups is now serving the Lone Star State: San Antonio-based Texas Independent Auto Association; Austin’s Automotive Parts & Services Association; and, as of 2009, the Houston Auto Body Association, which became an affiliate of the national Society of Collision Repair Specialists in February.

Established in 2009 to serve the greater Houston area, HABA comprises approximately 35 owners and managers of collision centers (Active Members), businesses associated with the collision industry (Associate Members) and like-minded associations that abide by the group’s code of ethics (Group Affiliate Members).

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Meet Mike Anderson, until recently the owner of Wagonwork Collision Centers, two shops located in Alexandria, Virginia. His technical staff is ASE-certified. Mikes serves on the Mitchell and Motor Advisory Boards, and the ASE test review committee. Mike is the past Director of the ASA Collision Operations Division. Mike is active in the industry as a member of WMABA, CIC, SCRS, CAPA and the National Auto Body Council and serves as a Skills USA/VICA Contest Chairman. Mike's received the NABC’s exclusive PRIDE Award for service to mankind above and beyond his business and the city of Alexandria, Virginia's "Heart of the Community Award." As a leading shop owner and an automotive management expert, Mike Anderson is also a featured seminar presenter on numerous topics such as "Profitable Estimating– Educate… Not Alienate" (AMI-approved), "Developing SOP's (Standard Operating Procedures)- Disassembly and Reassembly", "Employee Recruitment-Retention-Reviews", Mike Anderson has presented to groups across the country, including Chicago, Seattle, Denver, Boston, Washington, DC, Canada and Mexico. Participants in Mike Anderson’s seminars consistently rate them as exceeding their expectations and highly recommend his seminars to others, providing CSI results any automotive repair shop would be proud of.

to download registration form, go to: http://www.tascoautocolor.com/images/HoustonPreleanregistrationform.pdf

I-CAR, the Inter-Industry Conference on Auto Collision Repair has announced that online registration for the 2010 I-CAR Industry Conference is now open. The half-day conference will be held on July 21 from 8 a.m. – 12 p.m. at the InterContinental Chicago O’Hare Hotel in Rosemont, IL.

This year’s event will coincide with several other industry meetings being held during the same week. During the conference, I-CAR will introduce its redesigned, role-based curriculum structure to the inter-industry. 

“For the past two and a half years, I-CAR has been allowed to facilitate an industry-wide conversation on the training needs of the auto collision inter-industry. The industry has told I-CAR what is required of I-CAR to deliver on its vision that every person in the collision industry, current and future, has the necessary knowledge and skills relevant to their position to achieve a complete and safe repair,” said John Edelen, I-CAR President and CEO. “I-CAR has focused on clearly defining industry roles, identifying the knowledge and skills needed to be effective in each role, and developing a training and recognition structure that we believe aligns with the direction of the industry,” he continued. “With the introduction of the role-based curriculum, I-CAR will present the outcome of that effort – a significant re-engineering of I-CAR’s training, the organization of its curriculum, its industry recognition programs, and the transition that will take place.”

Jeff Peevy, I-CAR Director of Field Operations said, “These changes will provide tremendous value to a broad range of inter-industry segments. The redesigned role-relevant training model provides organization and structure for career development paths, linking training more closely to the performance of an individual’s role.”

For registration information and event details, visit www.i-car.com/meetings. Questions regarding registration should be directed to Jolinda Ottum at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 847-463-5247.

Standox^® solventborne and waterborne paint systems for cars and commercial vehicles have received approval for the refinishing of Mercedes-Benz vehicles.  In the vehicle refinish sector, Mercedes-Benz USA (MBUSA) trusts the quality of the premium products from Standox^® for the past several years.

Before MBUSA opts for a paint brand, it subjects the refinish products and systems to close examination.  Only after extensive analysis and tests in a wide range of climatic conditions were the high-quality Standox^® products approved.

To download the MBUSA Approved Refinishing Products Bulletin, go to standoxna.com.

The Society of Collision Repair Specialists (SCRS) held their corporate awards dinner on April 13th at the Crowne Plaza Ravinia in Atlanta, Georgia. The focus of this annual event is to celebrate and thank the corporate members that enable SCRS to maintain and increase its level of service to its direct and affiliate members, to purchase the equipment and technology necessary to operate efficiently, and to participate with other associations that are working to better the industry.

A centerpiece of the corporate awards dinner is the presentation of the SCRS Industry Awards, through which the Society recognizes those demonstrating outstanding service and achievement within the collision repair industry.

"It's an opportunity to identify the people and organizations who have given freely of themselves for the betterment of our profession," explained SCRS Awards Chairman Dale Matsumoto. "Their contributions and accomplishments exemplify the passion they have for what they do. There is a Hawaiian word, 'Kina'ole', which means, 'One who has done the right thing, in the right way, at the right time, in the right place, to the right person, for the right reason, with the right feeling . . . the first time.' That's characteristic of the people honored at the ceremony."

SCRS is pleased to summarize the accomplishments of each recipient and the award they received.

The National Lifetime Achievement Award is the highest honor bestowed upon members of the collision repair industry by SCRS. It is reserved for individuals who have given generously to the aid of the industry nationwide, and seeks to honor those whose acts have inspired many within the industry.

This year SCRS had the pleasure of bestowing the award upon two incredibly deserving individuals. The first was March Taylor of Auto Body Hawaii, whose efforts and life exemplified the difference one individual can make on an industry. He volunteered relentlessly to advance the cause of more accurate labor information in the estimating guides, which spawned the creation of the Database Enhancement Gateway. He answered or got answers to database questions from repairers all over the globe. He mentored many others, and in the process, taught many of today's industry leaders the value of the individual's voice.


Pictured left to right is Dale Matsumoto, SCRS National Director; Patty Taylor (accepting the National Lifetime Achievement Award in behalf of March Taylor) and Jeff Hendler, SCRS Past Chairman.

	The SEMA Business Technology Symposium is a premier business development forum that gives participants a competitive advantage through insight on, and implementation of, effective digital and social media strategies.

Automotive specialty-equipment market industry leaders and digital technology experts will convene for a day-long conference composed of panel discussions and keynote speakers, covering topics focused on the newest trends and strategies for conducting business in the digital age at the SEMA Business Technology Symposium, July 23, 2010, at the Pasadena Convention Center in Pasadena, California, from 9:00 a.m.–5:00 p.m.

“Technology has revolutionized how business is conducted, and our member companies are having to change the way they operate,” said Tom Myroniak, SEMA vice president of marketing and member services. “This conference will help participants understand and address the potential opportunities and challenges associated with doing business with new media.”

“Gold Digger,” a stunning 1933 Ford Phaeton sporting a gleaming gold PPG finish, has been named the winner of this year’s coveted Ridler Award. The honor, regarded as the most prestigious in the world of custom cars, was announced at the 58th Detroit Autorama at Cobo Hall in downtown Detroit. The car is owned by Tammy Ray of Dahlonega, GA, making her the first woman to win the celebrated prize.

Ms. Ray has been a hot rod and custom car fan for 12 years. This was her second entry in the Ridler Award contest. In 2006, she made the cut and reached the “Great Eight” Ridler finalist competition, but missed the big prize. This time her entry was a success.

“When they announced the award, I was so excited I was literally breathless!” she said. “We worked on this car for two-and-a-half years. I own a gold mine in Georgia and I wanted the car to be really gold in color. I picked PPG paint because the builder said he likes to use it for the ease of mixing the colors to get what I want.”

Success in today’s world of collision repair is highly dependent on how well owners and managers understand the differing attitudes and preferences in play between today’s four distinct generations. That’s the view of

Cam Marston, noted author and authority on multi-generational communications, speaking at the recent PPG MVP Business Solutions Conference held at San Diego’s Paradise Point Hotel.

The sold-out conference, themed “Beyond Tomorrow,” drew more than 320 PPG-affiliated collision center professionals, making it the most highly attended MVP conference ever.

In his address, Marston noted that preparing for the future includes bringing out the best from employees. With four generations – known as Matures, Boomers, Xers and Millenials – now working side by side, part of that challenge is communicating and managing effectively across generational lines by treating employees as individuals. Marston defined the generations by age, Matures – 65 and older, Baby Boomers – 46 to 64, Gen Xers – 31 to 45, and Millennials – 30 and younger. He went through each generation’s characteristics, their expectations and how those qualities affect their work.

According to Marston, understanding generational differences can ease workplace frustration while increasing teamwork and productivity. For example, most Matures and Boomers put a lot of stock in their work ethic and job commitment, while for Gen Xers and Millenniels, their primary identity is outside the workplace. That doesn’t mean one generation is more productive than another, it simply means each typically has its own way of doing things. Tailoring communications to reflect these distinctions is the key to success. Marston’s words resonated with his audience.

“I was very impressed,” said Sharon Wells, general manager of Collision Clinic, St. John’s, NL, Canada. “We’re so busy just getting the job done, we sometimes don’t think about our workforce as individuals. His information was of paramount importance. I was with two others from my shop – we represented three different generations – and we now understand each other better.”

attention to social media

Another significant difference Marston pointed out is the greater use of social media by Gen Xers and Millennials than by Matures and Boomers. His statistics show 77 percent of Millennials and 61 percent of Gen Xers maintain an Internet social media Web site profile compared to 36 percent for Matures and 46 percent for Boomers. Projections indicate these percentages will grow. This also ties in to the younger generations’ thirst for information. The topic drew plenty of attention.

“In terms of pure numbers, social media plays a big role in how we need to communicate in the future,” said Norm Angrove, senior manager, PPG Value Added Programs, who facilitated a discussion group on the topic. “There are 900 million visitors to social media sites every day. And 74 percent of that is in the United States. Twitter is growing at a 3000 percent pace. Marketing today involves the five “Cs” of social media – content, community, conversation, collaboration and connection. We can’t ignore that. Collision shops have to put their message out there using this new media.”

selling to multi-generational customers

Marston pointed out that shop owners must recognize generational differences when selling their collision repair services: what is learned about communicating inside the collision center applies to cross-generational customers as well, especially now with social media marketing flourishing.

“Social media is already a big part of our marketing mix. It is an essential tool that will help us stay ahead,” said Sal Contreras, marketing director for Mike Rose's Auto Body in Concord, CA. "I heard a lot of great ideas at the conference, so we plan to use the information significantly more in the future to connect with customers, insurance agents and the insurers.”

Additional speakers, seminars and breakout discussion sessions all focused on providing attendees with assistance and tools for improving their business model and preparing their center and employees for success “beyond tomorrow.” Noted industry experts, Chris Miller, senior editor of ABRN Magazine and Githesh Ramamurthy, CEO of CCC Information Services, addressed the conference on the topics of “The State of Collision Repair” and “Data and Analysis the Industry Must Understand” respectively.

For more information about PPG MVP Business Solutions, contact your PPG territory manager, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit www.ppgmvp.com.

The Automotive Service Association (ASA) Parts Safety Task Force met with senior officials from the National Highway Traffic Safety Administration (NHTSA) April 28 to discuss automotive safety defects, ways to raise awareness of safety defects and aftermarket crash parts regulation.

Members of ASA's Parts Safety Task Force are Ron Nagy, AAM, ASA chairman-elect, Nagy's Collision Center, Wooster, OH; April Hernandez Miller, AAM, Hernandez Collision Center, Savannah, GA; Bill Moss, AAM, ASA Mechanical Division director, Ferris Automotive Inc., Warrenton, VA; Eddie Ehlert, Mazdonly Ltd., Chamblee, GA; and Bob Redding, ASA's Washington, D.C., representative.

Of interest for both parties is the increased accessibility of NHTSA's automotive safety-based website, www.SaferCar.gov. Among this website's many features is a tool for consumer complaints on automotive safety defects. The Vehicle Owner's Questionnaire (VOQ) form is used to measure frequency and severity of defects to determine if a recall is necessary. A common goal is to make the VOQ more consumer-friendly and well-known to encourage drivers to report problems. Further, NHTSA and ASA hope to create a compatible form for repair shops.

ASA sent a letter to NHTSA's administrator earlier in the year with regard to the regulation of aftermarket crash parts, stating: "As the new NHTSA administrator, ASA asks that you review why NHTSA does not regulate aftermarket crash parts. Voluntary certification of aftermarket crash parts has not succeeded in the collision repair industry. Congress has given NHTSA the authority to regulate these parts. We ask that NHTSA review its authority and begin an aftermarket crash parts regulatory program as soon as feasible."

ASA's task force also had meetings on Capitol Hill to discuss upcoming safety legislation being considered in the U.S. House of Representatives and Senate.

Transportation Secretary Ray LaHood recently reiterated his praise for the success of last year's Cash for Clunkers program. This time, LaHood's comments came as a reaction to positive reports from the DOT Office of Inspector General and the General Accounting Office.

Federal officials believe Cash for Clunkers successfully completed its top objectives set out by Congress: stimulating the economy and aiding the environment through increased vehicle sales and reduction of older, less fuel-efficient vehicles on the roads. In fact, they contend the program resulted in a 60-percent improvement in fuel economy between the trade-in and new vehicles purchased.

According to the report, more than 18,908 dealers participated in the CARS program. As a result, 690,114 voucher applications were filed and reviewed by the National Highway Traffic Safety Administration, which administered the program.

NHTSA officials stressed that they worked with dealers to correct and complete all applications that were received, ultimately approving 677,842 transactions and denying 12,272 applications.

The California Insurance Commissioner's office has released the following NOTICE, saying, in part, that

"certain aftermarket bumper reinforcement bars may be significantly different in terms of like kind, quality, safety, fit, and performance as compared to the original equipment manufacturer replacement part.  All insurers doing business in California are reminded of the above noted standards for the use of non-original equipment manufacturer (aftermarket) replacement crash parts."


TO:         All Admitted Insurers and Other Interested Parties

DATE:     April 30, 2010

SUBJECT: Important – Requirements of CCR §2695.8(g), Use of Non-Original Equipment Manufacturer Replacement Crash Parts – Please Read

California Code of Regulations, Title 10, Chapter 5, Subchapter 7.5, Article 1, Fair Claims Settlement Practices Regulations, Section 2695.8(g) reads:

g) No insurer shall require the use of non-original equipment manufacture replacement crash parts in the repair of an automobile unless:

(1)  the parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit, and performance;

(2) insurers specifying the use of non-original equipment manufacturer replacement crash parts shall pay the cost of any modifications to the parts which may become necessary to effect the repair; and,

(3) insurers specifying the use of non-original equipment manufacture replacement crash parts warrant that such parts are of like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts; and,

(4) all original and non-original manufacture replacement crash parts, manufactured after the effective date of this subchapter, when supplied by repair shops shall carry sufficient permanent, non-removable identification so as to identify the manufacturer.  Such identification shall be accessible to the greatest extent possible after installation; and,

(5) the use of non-original equipment manufacturer replacement crash parts is disclosed in accordance with section 9875 of the California Business and Professions Code.

Requirement for Permanent, Non-Removable Identification.
Insurers are reminded that CCR Section 2695.8(g)(4) requires that “all original and non-original manufacture replacement crash parts, manufactured after the effective date of this subchapter, when supplied by repair shops shall carry sufficient permanent, non-removable identification so as to identify the manufacturer.”   An admitted insurer shall not require that a repair shop install non-original manufacture replacement crash parts, or limit payment to the cost of a non-original manufacture replacement crash part, unless those parts comply with section 2695.8(g)(4) and carry sufficient permanent, non-removable identification so as to identify the manufacturer.  An admitted insurer shall not limit payment to the cost of a non-original manufacture replacement crash part for any part that does not carry sufficient permanent, non-removable identification so as to identify the manufacturer.

Use of Non-Original Equipment Manufacture Replacement Crash Parts.
Insurers are also reminded that CCR Section 2695.8(g)(1) provides that no insurer shall require the use of non-original equipment manufacture replacement crash parts in the repair of an automobile unless “the parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit, and performance” (emphasis added).  CCR Section 2695.8(g)(3) requires that “insurers specifying the use of non-original equipment manufacture replacement crash parts warrant that such parts are of like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts.”   The required use, or payment of the cost, of a non-original equipment manufacturer replacement crash part that is not equal in terms of like kind, quality, safety, fit, and performance as compared to the original equipment manufacturer replacement part may subject the insurer to further action by this Department. 

It has come to the Department’s attention that certain aftermarket bumper reinforcement bars may be significantly different in terms of like kind, quality, safety, fit, and performance as compared to the original equipment manufacturer replacement part.  All insurers doing business in California are reminded of the above noted standards for the use of non-original equipment manufacturer (aftermarket) replacement crash parts.

Any questions should be directed to Teresa Campbell, Senior Staff Counsel, at (415) 538-4126 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

The California Department of Insurance (CDI) has sent a notice (see also related stories) to all California insurers reminding them of their requirement to warrant all non-original equipment manufacture replacement crash parts to be at least equal to original equipment in terms of kind, quality, safety, fit, and performance. This reinforces their liability in the process. The CDI also warned insurers as to the use of non-compliant parts in settlement offers.

CRA President Lee Amaradio Stated "This official notice was the culmination of numerous meetings with CDI, numerous letters written that required a response from the Commissioner and a press conference that was held by Assembly Member Dave Jones in which Toby Chess was a participant. We have received numerous calls from the Industry asking, why our position is so drastically different than CAA, and why are they claiming that the notice is a result of their efforts.   First and foremost they are entitled to their position. Their position was limited to tracking and identification of parts. The only entity that voiced similar views is the Aftermarket parts industry. Our Position is based on the law and before you make a decision you should take time to review the regulations and statutes that relate to this issue."

Amaradio added, "When Non-compliant parts are used to establish settlement the claim is paid short.  CRA's position is to protect the consumer and have CDI enforce the laws and regulations that require insurers to warrant non-original equipment replacement crash parts are at least equal.  Determinations of parts being equal is manifested in the claims process, prior to repair.

We feel that, to categorize tracking as the most important issue, is to divert attention from the real issue.  Insurers requiring and specifying usage of parts that are non-compliant. It is important to note how the CDI notice tracks with our letters to the Commissioner. If there is a small scale issue it is tracking . Currently  systems exist to track parts. It is not done because insurers chose not to comply. The real issue is vehicle and occupant safety ."