August 2010 Newsletter
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Ford: Aftermarket Bumpers Used in Repairs Often Inferior
A comparison of aftermarket replacement parts for critical safety components such as bumpers and vehicle supports found they often are inferior to parts made by automakers, Ford Motor reported July 21.
Please CLICK HERE to read the rest of the article.
California mandates tire pressure checks except for body shops
The California Air Resources Board (CARB) has mandated that all service centers are required to check and inflate customer’s tires to the manufacturer’s recommended pressure--regardless of whether or not the car’s service has anything to do with tires. California’s goal is to reduce greenhouse gas emissions from cars driving around with under-inflated tires, which have higher rolling resistance. These circumstances result in cars using more fuel and thereby emitting more greenhouse gasses. Initiated in 2009, the law’s intent is to help car owners to have their vehicle’s tire pressure checked every time the car comes in for service.
In its third and latest revision, the regulation applies to all automotive service providers who do maintenance or repair service, but excludes certain automotive repair shops including auto body, auto glass installer, auto dismantlers, and auto parts retailers.
There could be gray areas if a service provider offers a mix of services, such as repair and body shop work. Also, consumers who have nitrogen filled tires can decline inflation service if the shop does not have nitrogen filling capacity. Shops would be required to keep accurate pressure gauges to check tires, but how they would ensure gauge accuracy is unclear. Questions remain on checking tire pressure in traditionally cold and hot states, as well as determining the responsibility of deciding if the tire is unsafe when performing the service.
Consumer Reports Says 'Tests show aftermarket replacement parts can present safety risk'
Recent articles in the mainstream news are publicizing the recent testing done on some A/M parts by OEMs. Consumer Reports has written a July 22 article saying:
If your car was repaired with cheap bumper replacement parts not made by the original automaker, your air bag may not deploy as expected if you get into another crash, according to computer-simulated crash tests conducted by Ford.
U.S. Senate Committee on Energy and Natural Resources Passes High-Tech Vehicle Legislation
The U.S. Senate Committee on Energy and Natural Resources met July 21 for a markup of Senate Bill (S.B.) 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 last month, 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, “The National Plug-In Electric Drive Vehicle Deployment Program,” 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.
Introduced last year, S.B. 2843, “The Advanced Vehicle Technology Act of 2009,” sponsored by Sen. Debbie Stabenow, D-Mich., seeks to promote federal aid for developing and promoting new vehicle technologies. The main purposes of this legislation include:
-Developing and promoting the deployment of technologies and practices that:
A. Improve the fuel efficiency and emissions of all vehicles produced in the United States.
B. Reduce vehicle reliance on petroleum-based fuels.
-Supporting domestic research, development, demonstration, deployment, engineering and commercial application and domestic manufacturing of advanced vehicles, engines and components.
-Enabling vehicles to move larger volumes of goods and more passengers with less energy and emissions.
-Developing cost-effective advanced technologies for wide-scale utilization throughout the passenger, commercial, government and transit vehicle sectors.
-Allowing for greater consumer choice of domestic-made vehicle technologies and fuels.
-Shortening technology development and integration cycles in the domestic vehicle industry.
-Ensuring a proper balance and diversity of federal investment in domestic-made vehicle technologies.
-Promoting the integration of intelligent vehicle technologies with infrastructure-based information and communications systems and the electrical grid.
-Strengthening partnerships between federal and state governmental agencies and the private and academic sectors.
To view a complete summary of the legislation, along with the full text, visit the “Track Legislation” section of ASA’s legislative website, www.TakingTheHill.com.
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA’s headquarters is in Bedford, Texas. ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA’s legislative website at www.TakingTheHill.com.
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Collision Centers Get More "Green" From Enterprise Rent-A-Car
Collision centers that work with Enterprise Rent-A-Car may get more than they expected when it comes to going “green.” In addition to repair center customers driving off in some of the most fuel efficient rental cars on the road today, paperless technology helps streamline the rental car process between collision repair centers, insurance companies and Enterprise. In terms of going “green,” it’s a win-win situation for everyone.
With the world’s largest fleet of fuel efficient vehicles, Enterprise is helping reduce the nation’s carbon footprint and giving more drivers the opportunity to experience fuel efficient vehicles. Nearly 450,000 cars in the combined fleet of Enterprise, National Car Rental and Alamo Rent A Car average a highway fuel efficiency rating of at least 28 mpg; nearly 230,000 average 32 mpg or better; and nearly 425,000 have earned the U.S. Environmental Protection Agency’s SmartWay certification mark – a distinction the EPA grants to vehicles that emit relatively low levels of both regulated pollutants and greenhouse gases such as CO2.
To reduce paperwork, as well as lower costs, save time and enhance service with insurance companies and car owners, Enterprise offers free of charge to collision centers the ARMS® Automotive and ARMS® Automotive Exchange applications. Widely recognized as two of the most effective tools available to the collision repair industry, ARMS® Automotive updates the status of car repairs, while ARMS® Automotive Exchange automates labor hours and provides free cycle time reporting.
Pacific Collision Centers Says Relationship with PPG a “Wise Move”
Steve Vettel, owner of Pacific Collision Centers, with six locations located in five Southern California counties, learned the collision business by working at the dealership level for many years, and gleaned much knowledge from that perspective.
To view this article as a PDF please CLICK HERE.
Since then, Vettel’s shops have flourished and consistently generated rave reviews, while establishing a reputation for embracing the latest technology and operating on the cutting edge. His relationship with PPG, his paint supplier for more than a decade, is one of the reasons why Pacific Collision has hit impressive numbers, even during a recession.
Together, Pacific’s six locations repairs an average of approximately 500 cars monthly, operating out a total of 140,000 combined square footage and employing 100 people, including 25 paint crew members, Vettel told Autobody News.
At his peak, Vettel said he was repairing 750 cars per month, but the recession dropped his numbers, just like everyone else’s in the country. “So much has changed within the last 18 months that we don’t know where we’re headed right now. The larger operations will survive and a lot of the smaller independents will be closing or getting absorbed by the larger chains. That’s the reality of it, so we need to prepare for these developments if we want to survive and stay profitability.”
One of the things Vettel calls a “smart move” involves his 12-year relationship with PPG. “They’ve helped us in so many ways,” he said. “We’ve used their assistance on how to dial in our processes and we’ve tapped into their knowledge and experience time and again. PPG is a great supplier, because they have a good product, Envirobase® High Performance, but they also help us on so many different levels.”
Corvette Re-Initialization Procedures
The most basic vehicles today are pretty much computers on wheels. The more sophisticated the car, the more computers and systems that need to be re-initialized each time you work on them. The complexity and the confusion grows with each new model year. Take, for example, one of the icons of the American automobile industry, the Chevrolet Corvette. From 1953 to present, the Corvette has evolved into a remarkable machine. But, like any other vehicle on the road, Corvettes suffer collision damage, and upon repair, there are many systems that need to be re-initialized.
To view a PDF of this article please CLICK HERE.
ALLDATA Collision provides manufacturers’ (OE) collision and mechanical repair information for Corvettes, as well as the other makes and models you see in your shop. OE is the gold standard when it comes to collision repair. It provides an indisputable blueprint for sectioning and working with new materials, such as ultra high strength steel, aluminum and advanced plastics. ALLDATA Collision also specifies re-initialization procedures for all those complex systems. Here are five initialization/calibration procedures for a 2009 Corvette:
I. BRAKE PEDAL POSITION SENSOR CALIBRATION
Calibration Criteria
Important: Do not apply the brake pedal during the brake pedal position sensor calibration procedure. Any movement of the brake pedal during this procedure will cause the calibration procedure to fail. If this occurs, the brake pedal position sensor (BPPS) calibration must be repeated.
What Do We Do Now?
We all have worked really hard the last two years in anticipation of an upturn in the economy. What now? I haven’t seen much of an upswing. Although, as a matter of fact, I haven’t seen things get any worse either. We have made our adjustments and we just seem to be plugging along.
My problem is that I want things to return to the pre-recession economy. I find myself sitting on my hands wishing and waiting, instead of preparing for things to remain as they are. Things really could be much worse. Life is just life and as business owners we cannot beat ourselves up too badly when we find ourselves struggling in these tough times. If you are surviving in today’s economy you are getting ahead.
But I am not in business just to survive. I went in business to prosper. I have been in business for over 30 years and, if I were to add it up, at least half of those 30 years have been spent in the survival mode. It has taken me a lifetime to learn one thing and that is business and life will always have its disappointments, so enjoy the good times while they last.
Business is much like a marriage. You really need to take the time to appreciate it when things are good, because tough times are coming.
That’s life. I can’t tell you why we never reach the top of the food chain, but I can tell you that you never will. Look at people like Bill Gates. You would think that he doesn’t have much to worry about but his life offers no more satisfaction then yours or mine.
Answering the Bell (‘I don’t got a gun’) and Remembering Old Sarge
On a warm spring afternoon about 15 years ago, my shop was busy with jobs. It was just another day, working ‘till it was quitting time. Even the phone seemed to have a pleasant ring that day. My wife, Le Ann, was in the office working on the daily office paper work. I was in the shop turning wrenches and humming to the always constant radio in the background.
To view a PDF of this article please CLICK HERE.
The shop was busy and things were going along without a hint of trouble. It was a story book day of blissful repairs. I even stopped for a moment to reflect on the wonderful day that it was… “Ah, it’s a fine day, a fine day indeed. Nothing could bother me today.”
I looked outside at the street in front of the shop. Hmm, police cars… two of them, driving slowly. Then, in the far distance, I could hear more cars coming this way, sirens blazing away. I looked back just in the nick of time to see the two squad cars that were in front of the shop tear down the street at high speed. Then two more came from the opposite direction, slowing down just in front of the shop. I walked towards the garage door when suddenly a figure flew by me. This guy was on a flat out run for the furthest point away from those cop cars. You should have seen it; those cops were on this guy like a swarm of bees. The guy ducked around the corner with the cop cars in full pursuit. He didn’t stand a chance.
Where’s the wife? I need to go tell her about all of this… why, this is exciting… I can’t wait to tell her. As I reached for the door knob to the front lobby, my wife threw open the door. She was so frantic she could hardly speak.
Building a Pinewood Derby Race Car
This month I’ve got a really cool project that’s gonna take us out of the big garage and put us in the small garage. I know you guys have heard of the Pinewood Derby races, usually involving the Boy Scouts. Now we have something called SEMA Pinewood Races Builder Race.
To view a PDF of this article please CLICK HERE.
The Hotrod Industry Alliance HRIA is presenting the 2010 Pinewood Builders Race. For the first time ever, over two dozen world-class hot rod and custom car builders will be put to the test with miniature wooden pinewood race cars. Each builder will be given a small block of wood to create a one-of-a-kind pinewood race car. There are no rules and no limits on creativity. The cars will be raced at the annual SEMA Banquet in Pasadena California on July 24. One winner will be crowned the race champion and one car will be voted most popular. In November all of these collectible and autographed pinewood cars will be on display at the annual SEMA show in Las Vegas, NV and will be auctioned for two children’s charities, Child Help and Victory Junction Camp.
I was asked to be one of the builders and said ‘yes’ right away. I mean anything having to do with charity, I’m all about; no rules, I’m all about, and a race? Who could say no? So it’s a combination of stuff that sounds really cool; one block of wood, a few rules, how can you go wrong? You’ve just got to carve out a little bit of time, it allows you to get out of your element and get a little creative. You know me; I like to get creative.
Matrix System Automotive Finishes Adds Low VOC and Waterborne
Matrix System Automotive Finishes, a subsidiary of Quest Specialty Chemicals, not only provides painters with a wide array of primers, clearcoats and solvent-based paints, it now produces waterborne and other low-VOC paints.
To view a PDF of this article please CLICK HERE.
Founded in 1983, Matrix System employs over 115 full-time associates in a 52,000 square foot modern production facility in Commerce Township, MI. The corporate headquarters, warehouse and training facility are located in Walled Lake, MI.
Matrix System became the first aftermarket paint manufacturer to introduce a successful intermix system of toners, pearls and companion products shortly after the company’s inception. All of Matrix System’s aftermarket clearcoats, primers, hardeners and reducers are produced in the United States—making it one of the last American-made paint companies.
Aqualution™ is Matrix System’s new high performance waterborne basecoat system. Matrix System provides 66 Aqualution toners and pearls to provide maximum color matching capabilities. Aqualution is designed to meet future and current VOC requirements. Aqualution™ also provides easy application, quick coverage in less coats, faster cycle times, a smooth satin appearance and over 25,000 color possibilities.
Aqualution™ does not require any new equipment since toners are simply shaken prior to use. Aqualution toners can be stored on common shelves at a constant temperature and minimal training is needed to work with Aqualution™ paints.
“In most cases we’ve had people up and running within a few hours,” Ken Papich, Western Regional Manager for Matrix System, told Autobody News.
Auto Body Guru Helps Body Shops One Click at a Time
If you don’t know SEO from [a] CEO, and PPC could be a new type of paint, or if ‘organic search’ sounds pretty much like a hunt for fresh but pricy vegetables, you might want to pay some close attention to Auto Body Guru. Don’t be embarrassed if you lack internet skills. Instead take a little while to understand what you might be leaving on the table, by ignoring the potential benefits to your business.
To view a PDF of this article please CLICK HERE.
Body shops need to know how to fix cars while navigating around the many obstacles that can get in the way of doing a good job while still making a profit. That’s why it makes sense to understand the benefits of using a company like Auto Body Guru to figure out the proper ways to position yourself on the Internet and get results.
“Body shop owners know how to run their businesses, but when it comes to Internet marketing, they will admit they need assistance,” Rony Mirzaians, the founder and owner of Auto Body Guru explained. “Would you hire a body tech to create your Web site and then optimize it for search? I don’t think you would. The best thing a body shop owner needs to know is what he or she doesn’t know. Delegate your online marketing to an expert and you’ll succeed. Do it part-time or hire a hobbyist to do it, and you’re setting yourself up for failure.”
Most body shop owners will admit that they just don’t have sufficient time to do marketing. And that’s why Mirzaians knows the game plan when it comes to getting shops customers via online, he said.
Specialty Paint & Body Repair in Athens GA—A Recycling Specialist
Thomas Durrence’s Specialty Paint & Body is growing—and his “green” efforts are making other things grow in the Peach State.
To view a PDF of this article please CLICK HERE.
Since 1987, his full-service shop, 11542 Jefferson Road in Athens, Ga., has been providing auto body repair in the Athens and Jefferson areas. The 13,100-square-foot-shop, an I-CAR Gold Class service facility, repairs more than 800 cars and trucks annually. About 91 percent are insurance referrals, and the shop is also referred from several area dealerships, explains Durrence, who started Specialty after working in the collision industry for several years.
Old-fashioned business virtues have primed his success, he notes: “Our primary goals are quality repair, fair prices, and customer convenience, and our well-trained employees are committed to quality, honesty and integrity.”
At the same time, he and his 10 employees use the latest estimating and management software and advanced equipment for body repair and painting — ensuring a quality product for the customers. For instance: “We blueprint the repair for individual cars so as to minimize waste and maximize efficiency,” Durrence says. “We seek to understand our customers and give them the repair they desire as well as educate them on the repair process.”
He notes, too, that Specialty Paint & Body is one of the few facilities in Athens designed as a body shop: “This allows us to repair cars in assembly-line fashion with as little down time between steps as possible.”
21st Century Collision in Oklahoma City Relies on Chief Equipment
A long-time collision repair professional knows that the right equipment can make his job easier. But if a lift or another piece of shop equipment can fail during a busy period, it can break the business and cause chaos trying to meet those highly critical cycle times. Lee Haney, Jr., owner of 21st Century Collision, a 13-year-old shop in Oklahoma City, can cite equipment manufactured by Chief Automotive Technology as being a great asset to the overall success of his operation.
To view a PDF of this article please CLICK HERE.
“I’ve worked with quite a few great suppliers and vendors over the years,” Haney, Jr. said. “If you can identify the best products and build an ongoing relationship with these companies, you can get an advantage in this industry. I’ve been very fortunate to be associated with companies like Chief. Without the proper equipment, you won’t survive long in this business.”
21st Century is a busy collision repair facility, but it’s not just a “body shop”, according to Haney, Jr. “I don’t like to call us a body shop, because we do so much more. In these times, with the technology we have, the industry has changed and body shop just doesn’t describe what we’re doing to get these cars back to pre-existing condition.”
21st Century Collision fixes approximately 250 vehicles monthly, Haney Jr. said. The business operates out of a 20,000-square-foot shop and employs 23-25 people. When the weather turns nasty, 21st Century sees a spike in business, when huge hailstones rain on the area.
ECO-Friendly Auto Center in Oakland Park, FL, Walks the Talk
When Sully Dawson opened ECO-Friendly Auto Center in Oakland Park, FL 3 months ago he wanted to leave no environmentally friendly stone unturned.
To view a PDF of this article please CLICK HERE.
“I made a conscious effort to be green from the inception,” said Dawson, “I took the best of everything I could find out there.”
The 6,000 square-foot shop has 3 employees and sees about 350 cars a month. ECO-Friendly has only been open for about 3 months, but Dawson anticipates the repair shop will bring in about $400,000 this year. The shop does major mechanical repair work as well as regular maintenance like oil changes and tire repairs but does not do any body work.
According to Dawson the shop recycles everything possible including, metal, batteries and paper. The shop also uses a service called Safety-Kleen which takes their used oil and antifreeze, cleans it and returns it to the shop for reuse.
ECO-Friendly also provides customers with the option of using G-Oil Green Motor Oil. G-Oil is made from animal fat and is completely biodegradeable. ECO-Friendly is the only shop in the state of Florida to offer this option which is American Petroleum Institute certified. According to Dawson, G-Oil is a little more expensive but well worth the cost. He also said he is seeing that about half of his customers coming in are making the switch from regular motor oil to G-Oil.
The shop also sells other biodegradeable automotive necessities; from engine degreasers to car wax to window cleaners, customers can find everything they need to be environmentally conscious when it comes to their vehicles.
Georgia Collision Industry Association Releases its Labor Rate Survey Results
The Georgia Collision Industry Association has completed and released the results of its labor rate survey.
To view the results chart in PDF format please CLICK HERE.
The results show an average year on year increase of 3.15% for 2010 over 2009 in five categories: Sheet Metal, Refinish, Mechanical, Frame, and Paint & Material. The 2009 rates had an average increase of less than 1% over 2008.
The largest increase was in the paint and material rate (4.60% over 2009) followed by the frame rate which averaged 4.1% over the prior year. The lowest increase was in the mechanical rate.
The 4th Annual GCIA Labor Rate Survey began on Monday, April 26, 2010. GCIA conducted the survey by mailing a postcard to all Metro Atlanta Shops that included a link to the online survey website. The association then followed up and called all shops in metro Atlanta. A total of 137 shops completed the online version and 154 shops were contacted by telephone for a total of 291 total survey responses.
Shop identities will not be published with the results of this survey and will remain confidential. Names were used to track demographics and ensure that only one survey was cast per Repair Facility location. No rates were used that may exist between a repair facility and any contracted customer such as a Fleet Account or Insurance DRP Program.
Texas Attorney General, Greg Abbott, Tells Travelers to Stop Airing ‘Deceptive’ TV ad
The Texas Attorney General ordered insurer Travelers Cos. Inc. to stop running a television advertisement that he called deceptive. Attorney General Greg Abbott said that the Travelers ad improperly tells Texas homeowners that they should buy additional automobile insurance to prevent losing their homes.
“Texans are protected by robust homestead laws that insulate homeowners from the losses depicted in Travelers’ advertisements,” Abbott said in the release.
The Texas Constitution (Article 16, Section 50) strictly prohibits the forced sale of a person’s homestead except in narrow circumstances, clearly protecting homeowners from just the type of situation outlined in the Travelers television ad.
If Travelers continues to air the ad, the company will face legal action by the state, Abbott said. Abbott’s action comes two days after Texas Watch, a consumer advocacy group, asked Abbott and Texas Insurance Commissioner Mike Geeslin to take action against the company.
Texas DPS Takes 1,738 Vehicles, 160 Drivers Off the Road
During the Texas Department of Public Safety’s Roadcheck 2010, which ran from June 8 through June 10, DPS troopers inspected 6,906 commercial vehicles.
Twenty-five percent of them, or 1,738, were placed out of service because they were found to have serious enough safety violations to be removed from service until repairs could be made.
Troopers took 160 of the drivers (2.3 percent) out of service for violations ranging from not properly tracking their hours of service to suspended, expired or cancelled driver licenses. Four drivers were placed out of service for drug or alcohol violations. Troopers issued five tickets for seat belt violations.
DPS Commercial Vehicle Enforcement troopers, along with highway patrol troopers and other inspectors who have received specialized training in commercial vehicle inspection, stopped commercial vehicles to inspect safety equipment and check driver licenses, endorsements and log books. Troopers also looked for possible drug or alcohol use.
The annual Roadcheck program stretches from Mexico to Canada.
A Brief History of Oklahoma Auto Body Association
The Oklahoma Auto Body Association may have started as a fellowship group five years ago, but today it is spending its time fighting for the rights of its collision-industry members.
“The ‘same six guys’ have always gotten together through the last 25 years and put together some sort of affiliation,” says Jeff Leatherock, President of OKABA and Owner of Hammer & Dolly Body Shop in Oklahoma City, OK. “This is the latest—and the best.”
In addition to Leatherock, these founders are Gary Wano Jr., owner of G W and Son Auto Body, Oklahoma City; Brian Shellem, Advanced Automotive Equipment and Prestige Automotive Refinishes, Oklahoma City; Chris Donnelley, Body Works, Oklahoma City; Doug Reinhardt, Car Craft Auto Body, Oklahoma City; and Mickey and Shannon Varner, Jay’s Body Shop, in El Reno, about 20 miles outside Oklahoma City off Interstate 40.
Prior to OKABA, a number of associations served the Oklahoma collision industry, including an ASA chapter and the Fellowship of Concerned Repairers of Oklahoma, or FOCRO, Leatherock says. Tulsa also has a loose fellowship, he adds.
“I believe the association can bring a united voice as well as a conduit of communication among shops, insurers, legislators, vendors, and anyone else involved in the collision industry,” says Shellem, an OKABA boardmember since 2006. His Advanced Automotive Equipment is one of the largest Celette dealers in the country, he says, and supplies a full range of equipment to the collision industry, primarily in Oklahoma, Kansas and Texas. Prestige provides automotive finishes to Oklahoma City shops.
Nevada Gets New Insurance Commissioner, Brett J. Barratt
Nevada Department of Business & Industry Director Dianne Cornwall announced the appointment of Brett J. Barratt as the new Commissioner of the Division of Insurance.
Barratt replaces Scott J. Kipper, who resigned the position in June.
Barratt, an attorney, has extensive experience in insurance regulation. Beginning in February 2005, he served as the Insurance Counsel/Hearing Officer for the Division. In October 2009, he became the Chief Insurance Assistant for the Division.
“Mr. Barratt comes to us with extensive knowledge of insurance regulation as well as strong legislative expertise and legal experience,” Director Cornwall said. “He has already proven his ability to lead during a transition, and I look forward to his ongoing oversight of this dynamic agency.”
The Division regulates and licenses insurance producers, brokers and other professionals; sets ethical and financial standards for insurance companies; and reviews rates.
The Division also reviews programs operated by self-insured employers for workers’ compensation, and investigates claims of insurance fraud.
California Ends Hybrids’ HOV Status for Singles
According to the California Environmental Protection Agency's Air Resources Board, hybrid vehicles with the yellow Clean Air Vehicle stickers will no longer have access to High Occupancy Vehicle (HOV) or carpool lanes with only one occupant.
The EPA decided to allow only white Clean Air Vehicle sticker carrying vehicles in HOV lanes with a single occupant after the popularity of hybrid vehicles has become too much for HOV lanes to handle.
California law allows single-occupant use of HOV lanes by qualifying clean alternative fuel vehicles. Use of these lanes with only one occupant requires a Clean Air Vehicle Sticker issued by the California Department of Motor Vehicles (DMV).
There are two types of stickers; White Clean Air Vehicle Stickers are available to an unlimited number of qualifying Federal Inherently Low Emission Vehicles (ILEVs). Cars that meet these requirements are typically certified pure zero emission vehicles (100% battery electric and hydrogen fuel cell) and compressed natural gas (CNG) vehicles. Assembly Bill 1500 extended the expiration of white stickers to January 1, 2015.
A Brief History of Collision Repair Association of California
In the fall of 2006, five independent-minded shop owners in Northern California agreed that the collision industry needed steering —toward better protection for shop owners and consumers, that is.
“They were tired of the manner in which industry issues were being addressed and wanted to take a more aggressive stance on the issues,” says Lee Amaradio, CRA’s second president and owner of Faith Quality Auto Body in Murietta. “We lobby our positions vigorously,” says Amaradio.
Those founding members are current board members and shop owners Roy Carnevale, Anthony’s Auto Craft, San Rafael, and Blake Andros, Blake’s Auto Body, with shops in Marin and Sonoma counties, as well as Byron Orris, Byron’s Auto Body in Napa, an owner and general member.
Two of the original founders, Todd Bishop and Gene Crozat, are no longer members. Crozat, the original president and owner of three G&C AutoBody shops in Northern California, had been critical of CRA’s direction even before his departure.
“The association grew out of frustration with the way industry issues were being addressed,” says Allen Wood, executive director for CRA. Owner of a consulting business, he was formerly a program manager for the California Bureau of Automotive Repair.
Ford Presents Comparison With Aftermarket Parts at CIC Meeting
Ford Motor Company representatives presented the results of tests conducted on aftermarket structural parts at the Collision Industry Conference (CIC) in Chicago July 21 that raised some serious safety concerns related to the use of replacement parts and their ability to adequately replace OEM parts.
Paul Massie, Ford Customer Service Division, said the carmaker launched an investigation of selected aftermarket copy structural parts after Ford employees attending a CIC meeting witnessed the aftermarket parts demonstrations presented by Toby Chess in November 2009 and January 2010. Massie said that the car company felt that its customers' safety may be at risk after watching the results of Chess going at aftermarket and OEM parts with his reciprocating saw.
After Chess' demonstration, Ford engineers conducted a series of scientific tests that compared aftermarket parts to original equipment parts by measuring a wide range of properties including; material weight and thickness, manufacturing processes used to construct the part, dimensional and structural integrity, impact performance and identification of the raw materials used to make the part.
Ford tested the 05-09 Mustang front and rear bumper beams, 08-09 Focus front and rear bumper beams, bumper isolators for both above vehicles, 04-07 F-150 Bumper brackets and 04-07 F-150 Radiator Core support. There were significant structural differences between the aftermarket copy parts and the OEM parts. In addition, the aftermarket parts were found to be thinner, lighter and manufactured with inferior production processes.
Industry Pioneer Earl Scheib, Inc. Folds After 75 Years Painting Cars
Nationally famous for its low-priced paint jobs, Earl Scheib, Inc. ceased operations nationwide on Friday, July 16 as the company closed its doors for good in order to turn control of its company-owned stores over to individual owners.
The company has been owned since 2009 by the San Diego-based private equity firm of Kelly Capital, LLC who acquired in 2009 for an estimated $8 million, and relaunched the corporate operations as New Earl Scheib Paint & Body Shop.
The California-based chain consists of more than 175 stores in about 150 U.S. cities. About half of the company’s facilities are in California, but the company had stores in 16 other states as far east as New York, Virginia and Washington D.C.
Though the stores are primarily known for economically priced, production auto painting services, body and fender repair services are also offered. Earl Scheib manufactures its own paint at a company-owned facility in Missouri. The company established a fleet sales division in 1998. The Earl Scheib brand became well known largely through founder Earl A. Scheib, a pioneer of advertising.
The company was founded in 1937 by its namesake, Earl A. Scheib who opened the first Earl Scheib Paint and Body in Los Angeles. Scheib decided to paint a few cars in his gas station’s garage during the evening hours when the station was closed. What began as a small, after-hours endeavor soon blossomed, and Scheib could not keep up with demand.
How I Made It: Hot-rod designer Chip Foose
Considered by many to be the world's top hot-rod designer, Foose credits his ferocious work ethic and passion for cars to his dad, Sam.
Parts for Profit 4—Developing Your Wholesale Business Partners
A customer is a person you see only a few times a year. Someone who does business with you over and over again, on a regular basis, is more than just a customer. This person is more properly defined as a business partner.
The difference is the relationship you have with each other. A retail customer is seldom known by name, and the communications between you are limited to the business at hand. This person might be seen four times a year; at most. A wholesale customer on the other hand, will be heard from several times each month. This repeat business can create a relationship between you that is more than just business. I define it as a partnership. This is the best relationship you can have with another business.
In a partnership, both parties rely on the other to do their part, and trust the other completely. A partnership is hard to establish, but even harder to sever. In your business, I recommend that you work hard to establish the philosophy of partnership. If you follow this philosophy, and think of your best customers as partners, you will never lose them. And most of your wholesale business will develop from customers, to partners.
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Voices of IBIS—The Annual International Body Shop Conference
Organizers of the annual International Bodyshop Industry Symposium (IBIS), face a difficult assignment: bringing together two days of presentations on industry issues that will be of interest and value to a diverse group of attendees—insurers, repairers and industry vendors—hailing from about two dozen different countries.
The 10th annual IBIS, held in London in June, included as many presenters from outside the industry as it did collision repair experts. The goal, conference director David Lingham said, was to offer some fresh perspectives and a look at how comparable issues are being addressed in other industries.
Here is a wrap-up of some of the more striking and interesting comments and insights offered from the IBIS podium this year.
Future view of the OEMs
Prof. David Bailey, an automotive analyst with the Coventry Business School in the United Kingdom said that despite the growing interest in electric-powered vehicles, collision repairers can expect to see plenty of diesel and gas powertrains for the foreseeable future. Even by 2020, he predicted, only about one-third of new cars will have electric powertrains.
Although 10 automakers currently account for about 75 percent of the vehicles currently being produced, Bailey said he expects to see even further consolidation among automakers through mergers, acquisitions and alliances (such as OEMs sharing more jointly-developed platforms across multiple auto lines). Some automakers may get out of the assembly process altogether, he said, focusing on developing and branding vehicles that are actually manufactured by suppliers.
Using Fraud And Fear As Marketing Tools
A while back, Ford used the following headline in their magazine ads: “Only Your Mother Cares More About Your Safety.” With the media today telling consumers about manufacturing defects and recalls, faulty repairs by shops, and even huge amounts of fraud, the prospective repair customer may fear for her and her children's lives if she chooses the wrong shop. Today many people are more motivated by fear than by positive motives. This may be a good time for a wise shop-owner to use this perception to his or her advantage.
Every successful shop owner needs to educate the customer about the importance of doing a quality repair and why his or her shop is the best place to get it. And maybe a few shop owners make some comments about the poor quality of a competitor. But now it may be time to talk seriously about the dangers of faulty repairs. Accelerator pedals that stick, brakes that fail to stop a vehicle, welds that don't hold, and—perhaps worst of all—repairs that were paid for and never done. These are all legitimate sources of fear that a shop owner can capitalize on when selling the reliability and integrity of his or her shop.
Recently more than fifty shop owners and estimators in Orange County were charged with fraud. This is not a new problem. An article in the January 30, 2007 Los Angeles Times [controversially] reported that an investigation by the State of California BAR “has found that billing for 43% of cars inspected so far, after being repaired had evidence of fraud with an average of $586 in overcharges for parts not used or labor not performed.” The article further reported that “about 13% of the repaired vehicles had structural issues that would indicate inadequate or defective repairs to car frames… Those inadequacies included improper welds and failure to rust-proof key parts.” It goes without saying that many of these deficiencies compromise the safety of the driver and passengers of the vehicle repaired. [Ed—the numbers cited in this article were later walked back by Sherry Mehl, the BAR chief appointed at about the time the article was written, citing flawed methodology in the survey.]
Women's Industry Network Holds Employment Webinar July 27
The Women's Industry Network (WIN) in partnership with the national labor and employment law firm, Littler Mendelson, will launch its first employment webinar, "Demystifying Discrimination, Diversity and the Evolving Workforce," on July 27, 2010 at 1:00 p.m. central time.
The one-hour interactive program will enable members to ask questions of the presenters. The session will focus on best practices for recruiting and hiring top notch talent and navigating the 21st century workforce, with an emphasis on discrimination and harassment in the workplace, diversity in action and emerging issues in employment law.
"We are extremely proud to be working with Littler Mendelson to offer this type of educational content to our members and sponsors. We know that businesses that are enlightened about employment law issues are good for women and good for the collision industry," said Kim White, FinishMaster, who serves as WIN's Chair.
If you are not a current WIN member or sponsor and would like to participate in this webinar, go to the website at www.womensindustrynetwork.com and download the membership application.
Software maker Solera leaving San Diego for Dallas
Solera Holdings, a maker of claims software for auto insurers and collision repair shops, said Wednesday that it is moving its headquarters from San Diego to the Dallas-Fort Worth area. The move is not expected to result in major layoffs at Solera’s 165-employee operation in San Diego because only a handful of the company’s top executives are relocating.
Collision Industry Conference MEETING SCHEDULES
| Collision Industry Conference Meeting Schedule and Agendas |
| FOR COLLISION INDUSTRY EVENT CALENDAR, CLICK HERE |
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Collision Industry Conference (CIC) meetings are held four or five times a year, each in a different region of the country. In January of each year, there is an additional planning meeting for the coming year that is open to everyone. Participation in CIC is open to all individuals who share an interest in the collision industry. There are no "members" of CIC, only participants. All participants share an equal standing. Questions or issues for discussion should be submitted in writing (preferably in advance of the meeting) for consideration to the CIC Chairperson, the chairpersons of the appropriate CIC Committees, or any member of the "New Business and Issues Committee," which is composed of past CIC chairpersons. Anti-trust Guidelines are read prior to each meeting and are strictly enforced. |
Collision Industry Conference
Meeting Schedule
| All room blocks are available until 45 days prior to the function at which time they are dropped. Reservations after this date are subject to non-group rates and room availability. Meeting agendas will generally be available within a month preceding meeting. |
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Meeting Fee of $40.00 for all Non-Gold Pin Attendees ***There is no "pre-registration" required for CIC meetings, simply check in at the door.*** |
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2010 |
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JULY 21/22: (WEDNESDAY / THURSDAY) CHICAGO, ILLINOIS Hotel: Intercontinental Chicago O’Hare Meeting held in conjunction with I-CAR Meetings. Reservations (847-544-5300) (CIC Rate: $169.00)
Reception: BASF Coffee Breaks: 1-800-Radiator & A/C, Audatex, a Solera Company; AKZO Nobel Coatings, Body Shop Business, CSi Complete, ChemSpec USA, DuPont Performance Coatings, Enterprise Rent-A-Car, LKQ Corporation, Mitchell International, PPG Industries, QRP MidWest, Symphony Advisors / The Romans Group, United Recyclers Group
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NOVEMBER 3: (WEDNESDAY) LAS VEGAS, NEVADA Meeting held at: Las Vegas Hilton Hotel General Meeting held prior to SEMA
(NOTE: All meetings held at the Las Vegas Hilton)
Reception: Open Meeting Space Sponsored by: SEMA Coffee Breaks: 1-800-Radiator & A/C, Audatex, a Solera Company; AKZO Nobel Coatings, Body Shop Business, CSi Complete, ChemSpec USA, DuPont Performance Coatings, Enterprise Rent-A-Car, LKQ Corporation, Mitchell International, PPG Industries, QRP MidWest, Symphony Advisors / The Romans Group, United Recyclers Group
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2011 |
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JANUARY 12/13/14 (WEDNESDAY/THURSDAY/FRIDAY) Planning Session Meeting Reception: CCC Information Services Lunch: The Hertz Corporation Coffee Breaks: CSi Complete
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MARCH 17 (THURSDAY) General Meeting Reception: Open Meetings Space: Society of Collision Repair Specialists Coffee Breaks: 1-800-Radiator & A/C, Audatex, a Solera Company; AKZO Nobel Coatings, Body Shop Business, CSi Complete, ChemSpec USA, DuPont Performance Coatings, Enterprise Rent-A-Car, LKQ Corporation, Mitchell International, PPG Industries, QRP MidWest, Symphony Advisors / The Romans Group, United Recyclers Group
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Chrysler to Recall 22,000 Dodge and Jeep Vehicles
Chrysler has issued a recall for about 22,000 vehicles due to a problem with hydraulic brake tubes on certain 2010 models.
The recall affects the 2010 Ram 1500, Dodge Nitro, Jeep Liberty and Jeep Wrangler. These vehicles could have hydraulic braking problems that could lead to a loss of brake fluid and reduced braking performance, increasing the possibility of a crash.
The recall is expected to begin sometime in August. Dealers will inspect and replace the brake tubes for free. Owners may contact Chrysler at 800-853-1403 or the National Traffic Safety Administration’s hot line at 1-800-327-4236.
NCOIL Takes No Final Action on Model Parts Bill
The National Conference of Insurance Legislators (NCOIL) Property-Casualty Insurance Committee took no final action on its proposed Motor Vehicle Crash Parts and Repair Model Act today at the NCOIL summer meeting in Boston. The committee will continue discussing the Model Act at its annual meeting this fall in Austin, Texas.
ASA opposes the NCOIL Motor Vehicle Crash Parts and Repair Model Act because of concerns about the provisions regarding aftermarket part certification, the lack of a written consent process for the use of replacement crash parts by consumers, and the equating of certified parts to original equipment manufacturer (OEM) parts.
Georgia Will Try a Region-by-Region Tax to Raise Money for Roads
Georgia's infrastructure has not kept pace with their monumental growth over the last three years; Georgia ranks 49th among the 50 states in infrastructure-spending per capita. Its petrol tax—which funds highway, road and bridge maintenance—is the second-lowest in the country. Georgia’s legislature has long been sharply divided between Atlanta and the rest of the state: telling voters in the rural south, for instance, that they will have to pay higher taxes to fund road improvements in the urban north is politically unpalatable. Georgia’s governor Sonny Perdue signed a comprehensive transport bill on June 2nd that was three years in the making, hoping to bridge all of Atlanta together to help strengthen infrastructure statewide.
The bill divides Georgia into 12 regions, and gives each the power to decide on its own transport projects. Voters in each region will decide by referendum whether to approve a one-cent increase in the sales-tax to pay for those regional projects. Atlanta stands to see as much as $790 million through the new tax.
The bill may also help MARTA, Atlanta’s urban-rail system. It is the largest in the country that does not receive any state funding; it relies instead on passenger revenue and a 1% sales tax in the two counties it serves.
Mercedes Benz USA Opens Major Facility in Jacksonville Florida
Mercedes-Benz USA announced the opening of a new state-of-the-art facility in Jacksonville, Florida that will house four business units including Sales Operations Southern Regional Office; Parts Distribution Center (PDC); Quality Evaluation Center (QEC); and Learning & Performance Center (LPC).
The newly constructed building totaling 415,000 sq. ft. is a leased facility located off of Interstate 95 at 13470 International Parkway. MBUSA plans to take official occupancy in July. Approximately 160 employees are in the new facility, which incorporates innovative environmental systems and design.
A new addition to MBUSA's operation in Jacksonville, the Parts Distribution Center (PDC) supports approximately 70 MBUSA dealers in the Southeast with parts supply. The PDC will house about 15 percent of MBUSA overall parts inventory, shipping over 1.3 million lines annually. MBUSA has four other Parts Distribution Centers in U.S.: Carol Stream, IL, Fontana, CA, Fort Worth, TX and Robbinsville, NJ.
The Learning & Performance Center is a state of the art training facility for dealership and MBUSA personnel. MBUSA facilitates over 120 classes per year in the Jacksonville Learning & Performance Center, with a total of about a thousand participants from across the Southeastern United States. MBUSA operates five Learning & Performance Centers in the U.S.: Houston, TX, Itasca, IL, Jacksonville, FL, Montvale, NJ, and Rancho Cucamonga, CA.
Heartland Automotive to move HQ to Dallas
Heartland Automotive Services Inc., the largest franchisee of Jiffy Lube, said it will move its corporate offices to Dallas by the end of 2010.
The company, which operates about 400 auto servicing centers under the Jiffy Lube name, said it chose the Dallas location because of its proximity to the Dallas Fort Worth International Airport.
Heartland Automotive Services said that all corporate office staff will be able to stay with the company if they relocate from the current headquarters in Omaha. The company will still operate a division office in Omaha.
The move is expected to begin late summer or early fall and be completed by year-end.
Oklahoma Agent Announces Run for Insurance Commissioner Post
Mark Croucher, an insurance agency owner in Jenks, Okla., has announced his candidacy for the office of state insurance commissioner.
Croucher, who specializes in health, life and senior oriented insurance products, began his career in the insurance industry in 1997. He has been an independent insurance agent since 2004, and established The W.H.Y. (We Help You…that's WHY!) Insurance Agency LLC in 2007.
Croucher, a Republican, said his understanding of health insurance, and concern for his fellow Oklahomans during these tough times, led to his decision to enter the race for Oklahoma Insurance Commissioner.
Croucher has worked with and trained agents throughout Oklahoma. The agency works with clients from all over the state.
Toyota Recalls 17,000 Lexus HS 250h For Fuel Leak
Toyota’s luxury division Lexus is recalling its first hybrid-only model, the HS 250h, due to a problem with its fuel system.
Toyota will recall 17,000 2010 Lexus HS 250h vehicles after discovering excess fuel leakage during rear-impact crash tests. During an impact that involves the car rotating 90 degrees, an excessive amount of fuel can leak out and, if ignited, result in a fire. The automaker has not identified a remedy for the problem.
Toyota filed the recall with the National Highway Traffic Safety Administration June 25, owners can call Lexus at 800-255-3987 or NHTSA’s hot line at 888-327-4236 for more information.
Massachusetts Senate approves Right to Repair Act
After months of debate, the Massachusetts Senate quietly passed a proposal allowing independent auto mechanics access to the same repair information available to dealership mechanics.
The measure, known as the Right to Repair Act, was approved this morning during an informal session with no objections from Senate legislators. It will now head to the House for another vote.
Advocates of the bill said the measure will help consumers get their cars repaired more inexpensively because consumers will be able to get their cars fixed at independent mechanics' shops where they will have access to the same diagnostic information as dealership mechanics. Dealership mechanics generally charge more. The bill's backers include the Automotive Aftermarket Industry Association, which represents companies like Napa and Auto Zone and Napa. The Coalition for Auto Repair Equality, which represents Midas, Jiffy Lube, and others also supports the bill.
Opponents said the measure is a way for generic auto parts makers like Auto Zone and Pep Boys to get information that will allow them to reverse-engineer parts and manufacture them generically.
"This bill is about parts, not repairs," said Charles Territo, a spokesman for the Alliance of Automobile Manufacturers, a national group of 11 auto companies. "We're disappointed that despite all the opposition, the Senate still passed the legislation and we look forward to moving this battle to the House."
Nevada Subcommittee Seeks Tire Pressure Check Law
A Nevada legislative subcommittee has agreed to seek a bill requiring auto shops to check the air pressure in customer vehicles.
State Sen. Mike Schneider, a Las Vegas Democrat, says it will increase highway safety, save gas and reduce air pollution.
The bill would be considered during the 2011 legislative session.
Not all lawmakers were for it.
Republican Assemblywoman Heidi Gansert of Reno said while checking air pressure in tires is a good idea, she opposed mandating tire checks, saying it comes down to personal responsibility.
Department of Energy Announces $24 Million for Algal Biofuels Research
The U.S. Department of Energy (DOE) announced June 28 the investment of up to $24 million for three research groups to tackle key hurdles in the commercialization of algae-based biofuels. The selections will support the development of a clean, sustainable transportation sector-a goal of the Department's continued effort to spur the creation of the domestic bio-industry while creating jobs.
"Partnerships such as these focus the creative powers of the public, private and academic sectors on key challenges facing the development of renewable energy for transportation," said Assistant Secretary for Energy Efficiency and Renewable Energy Cathy Zoi. "The United States must find effective ways to hasten the development of technologies for advanced biofuels made from algae and other renewable resources to reduce our need for foreign sources of oil." Zoi made the announcement while speaking June 28 at the Biotechnology Industry Organization (BIO) 2010 World Congress on Industrial Biotechnology and Bioprocessing.
The consortia consist of partners from academia, national laboratories and private industries that are based across the country, broadening the geographic range and technical expertise of DOE partners in the area of algal biofuels. Projects are expected to continue for a period of three years. Together, they represent a diversified portfolio that will help accelerate algal biofuels development with the objective of significantly increasing production of affordable, high-quality algal biofuels that are environmentally and economically sustainable.
Mazda Announces Launch of Certified Pre-Owned Program
Mazda North American Operations July 6 announced the launch of a NEW Certified Pre-Owned (CPO) program designed to maximize the value of a pre-owned Mazda. Under the program, Mazda dealers will follow a rigorous multi-point inspection and reconditioning program to ensure that Certified vehicles are as close to the quality of a new car as possible, and Mazda will offer warranty protection over and above any existing factory warranty.
All 2006-2010 Mazda cars, SUVs and trucks with less than 60,000 miles are eligible for the program, as long as they meet the rigorous standards for quality.
"Mazda's new Certified Pre-Owned program is designed expressly to make the process easy and affordable for customers shopping for a high-quality pre-owned vehicle," said Ron Stettner, VP, Sales, for MNAO. "As Mazda was recently recognized by ALG for holding one of the highest residual values in the industry, our new CPO program allows us to provide a never-before-offered level of warranty security that goes with the value for money already packaged into every new Mazda."
CPO vehicles will be identified on dealers' lots by point-of-sale materials which will outline the warranty details and program benefits. Every Mazda CPO vehicle will offer either the remaining balance of the factory warranty or an additional 12-month/12,000-mile comprehensive warranty, as well as a seven-year/100,000-mile powertrain warranty. As with all new-car Mazda warranties, there is no deductible or co-pay for warrantable repairs.
Volkswagen Launches VW-Certified Collision Repair Program
Volkswagen of America, Inc. June 29 announced a VW-Certified Collision Repair Facility program for U.S. dealer-affiliated and independent body shops. This program provides VW-certification for collision repair facilities performing repairs in accordance with Volkswagen’s high safety standards and specifications.
“Volkswagen is excited to partner with both dealer-affiliated and independent collision repair facilities to increase repair quality and customer satisfaction with the Volkswagen brand,” said Matthew McCauley, Collision Program Manager for Volkswagen of America. “This program benefits Volkswagen owners by providing the peace of mind that comes from knowing that when a vehicle is involved in a collision, VW-Certified Collision Repair Facilities will maintain the brand’s safety standards and specifications.”
Volkswagen conducted a pilot with a group of fifteen repair facilities to maximize program benefits for body shops before launching the program nationally. Technicians at Volkswagen Certified Collision Repair Facilities must undergo training in the proper use of the factory-approved repair equipment, tools, and technologies to meet Volkswagen’s exact safety standards and specifications. Repair facilities must also use Volkswagen-approved tools. Volkswagen will visit repair facilities to provide annual program certification and will list VW-Certified Collision Repair Facilities as they become certified on www.vw.com.
California Assembly Allows Crash Parts Bill to Die
The California Assembly Committee on Business, Professions and Consumer Protection did not take up Senate Bill 350, a bill regulating aftermarket crash parts. This replacement crash parts legislation prohibits insurers from mandating the use of non-original equipment manufacturer (non-OEM) aftermarket crash parts (ACPs) unless the following requirements are met:
• The parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit and performance.
• The insurer specifying the use of non-original equipment manufacturer aftermarket crash parts shall pay the cost of any modifications to the parts that may become necessary to affect the repair.
• The insurer specifying the use of non-original equipment manufacturer aftermarket crash parts shall warrant that those parts are of like kind, quality, safety, fit and performance as original equipment manufacturer aftermarket crash parts.
• All original and non-original equipment manufacturer aftermarket crash parts manufactured on or after Jan. 1, 2011, when supplied by auto body repair shops, as defined in Section 9889.51 of the Business and Professions Code, shall carry sufficient permanent, non-removable identification so as to identify the manufacturer. This identification shall be accessible to the greatest extent possible after installation.
See July Autobody News for more details on this bill
ASA Tours Thatcham Facility in UK
Representing the Automotive Service Association's (ASA) Collision Division, Jerry Burns, AAM, ASA chairman, and Denise Caspersen, manager of ASA's Collision Division, recently toured the Motor Insurance Repair Research Centre - or Thatcham, as it is more widely known - in Berkshire, United Kingdom.
The tour was scheduled to coincide with ASA's participation in the International Bodyshop Industry Symposium (IBIS) in London June 9-11. The theme of IBIS 2010 was "Raise the Standard."
Standards developed by Thatcham involve all stakeholders and industry segments, including repairers and insurance companies, said Burns. "It alleviates conflict between the two groups while ensuring each vehicle is repaired to specification from the vehicle manufacturer," he said. Thatcham's ability to move the standards issue forward is something ASA has been monitoring for some time.
The main aim of Thatcham is to carry out research targeted at containing or reducing the cost of motor insurance claims, while maintaining safety and quality standards. Thatcham was established in 1969 by British insurers.
"ASA's board of directors and Collision Division Operations Committee continue to see value in industry standards," said Caspersen. "In addition to alleviating conflicts between repairers and insurance companies, these standards lead to an outstanding level of consistency in processes, skills, equipment and materials. ASA's Collision Division Operations Committee first began discussions with Thatcham regarding standards during the International Autobody Congress & Exposition (NACE) in 2007."
Employing more than 150 people, the Thatcham center is well-equipped with a range of collision repair equipment used for both research and training purposes. It also has a vehicle impact testing laboratory and a sled facility for nondestructive testing.
ASA Announces Dates Location for 2011 Annual Business Meeting
The Automotive Service Association (ASA) has announced it will hold its next annual business meeting May 9-11, 2011, at the Gaylord National in Washington, D.C. ASA members nationwide will meet to share ideas, network and tend to association business. The culmination of the annual business meeting will be ASA’s “Taking the Hill” Day May 11 allowing ASA members to meet with policymakers on Capitol Hill to discuss key industry issues.
Activities leading up to “Taking the Hill” Day will include open meetings of the ASA board of directors and affiliate assembly. Ron Pyle, ASA president and chief staff executive, will deliver a state-of-the-association address, and a new ASA chairman will be sworn in.
Additional information about the 2011 annual business meeting will be announced as it becomes available. Be sure to visit the Events section on ASA’s website, www.ASAshop.org, for the latest details. Online registration for the event is slated to launch this fall.
NCOIL Continues Discussions of Model Parts Act at Summer Meeting
The National Conference of Insurance Legislators (NCOIL) will hold a hearing July 8 at its summer meeting in Boston on the proposed Model Act Regarding Motor Vehicle Crash Parts and Repair. The Automotive Service Association (ASA) opposes the Model Act.
ASA raised concerns with two sections of the proposed act at the NCOIL spring meeting. The Property-Casualty Insurance Committee delayed a decision until the NCOIL summer meeting. First, the Model Act fails to include a formal consumer written consent for the use of all replacement crash parts. Second, the Model Act attempts to establish that there are no differences between original equipment manufacturer crash parts and certified aftermarket crash parts.
ASA encourages independent repairers to go to the ASA legislative website, www.TakingTheHill.com, and send a letter to NCOIL's Property-Casualty Insurance Committee in opposition to the Model Act. Previous ASA testimony submitted to NCOIL can also be viewed on the website.


