September 2010 E-Newsletter
Newsletter
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AAIA Defends Aftermarket Parts in Complaint to FTC
A formal complaint has been made to the Federal Trade Commission (FTC) by the Automotive Aftermarket Industry Association (AAIA), responding strongly to recent position statements made by Honda regarding aftermarket parts. AAIA claims that Honda’s statements – failure to use Honda replacement parts will cause consumers to lose warranty coverage on their vehicle – are a violation of the Magnuson-Moss Warranty Act.
In its complaint to FTC, AAIA claims that Honda’s statements are a direct attempt to market replacement parts for Honda under the guise of an unsubstantiated warning to consumers regarding the use of non-original equipment parts.
“We request that FTC take immediate action to require that Honda withdraw the statement and issue a correction that use of non-Honda parts will not cause a owner to violate their warranty,” said Kathleen Schmatz, AAIA president and CEO.
In a statement issued by American Honda for both its Honda and Acura vehicle lines on Aug. 20, they said, “American Honda will not be responsible for any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than Honda Genuine parts purchased from an authorized U.S. Honda dealer.”
“We contend that Honda’s statements are in violation of prohibitions in the Magnuson-Moss Warranty-FTC Improvement Act (Public Law 93-637) from conditioning a consumer warranty on the use of non-original equipment parts, and are misleading to consumers regarding their rights and choices under the law,” Schmatz said. “To our knowledge, Honda has provided no specific evidence to support their claim that there are problems with use of non-Honda aftermarket parts for their vehicles or that use of such parts creates warranty-related issues for their customers.”
September 2010 Southeast Edition (FLASH)
September 2010 Southwest Edition (FLASH)
September 2010 Western Edition (FLASH)
GCIA Drafts a Letter to Claims Managers, Attorney General
The Georgia Collision Industry Association will send letters out this month to all Georgia Claims Managers, the GA Insurance Commissioner and the GA Attorney General detailing the results of the GCIA labor rates surveys given in July. The GCIA hopes to inform these parties about their analysis of the prevailing competitive price. More information can be found at gacollisionindustry.wordpress.com. The full text of the letter is as follows;
August 9th, 2010
To: Georgia Insurance Company Claims Managers
From: The Georgia Collision Industry Association
RE: Collision Labor/Materials Rates in Atlanta Metro Area
The Georgia Collision Industry Association (GCIA) recently completed their 4th Annual Labor & Materials Rate Survey for Metro Atlanta and we are writing to inform you of the results of the research.
The Survey was conducted by CSi Complete to ensure unbiased data collection.
CSi Complete is a provider of customer satisfaction indexing to collision repair, claims and other services industries and you can learn more information about the company by visiting their website at www.csicomplete.com.
Our goal in conducting this annual survey and sharing the results is twofold:
1. To utilize an impartial company to identify and communicate statistically valid figures representing the average labor rate for repair services offered in the Atlanta Metro area, and
2. To communicate the results of the research to both collision repair facilities, insurance carriers and the appropriate involved in serving the consumer in the repair and claims handling process.
The 2010 survey indicates a 3.15% average increase over 2009 rates, bringing labor rates to $42.00 and Materials to $28.00.
The GCIA encourages all Claims Managers and insurance company executives to thoroughly review the 2010 GCIA Labor Rate Survey. We urge you and your company to join the GCIA in our efforts to alleviate the variances between the actual prevailing rates (as shown in our survey) versus the rates some carriers are currently compensating collision repair shops for materials and labor in Metro Atlanta.
The GCIA has conducted this survey for four (4) consecutive years. No other industry association in the U.S. has collected this amount of accurate data on collision materials and labor rates.
This year, nearly 300 shops participated, and the results clearly demonstrate the actual prevailing rate in the Atlanta marketplace.
It is our intention that the information offered be used to ensure your company is fulfilling its obligation to the policyholder, be reimbursing for the actual prevailing rates in Metro Atlanta.
If you have any questions about the GCIA, or the results of this survey, I would encourage you to contact our Executive Director, Howard Batchelor, at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
.
Respectfully,
Board of Directors
Georgia Collision Industry Association
Georgia Collision Industry Association – www.gcia.org
595 Commerce Park Dr Marietta, Georgia 30060 FAX: (770)590-3881 VOICE: (770)770-367-9816.
Record Attendance Forecasted for 2010 SCRS Affiliate Leadership Conference
The Society of Collision Repair Specialists (SCRS) announced August 16 the approach of its fifth annual Affiliate Leadership Conference on Wednesday and Thursday, September 22 and 23 at the Gulf States Toyota (GST) Training Center in Lewisville, Texas. The modern, state-of-the-art facility will provide a stimulating backdrop for the open discussion of activities, successes and challenges that is the conference’s hallmark.
“Our affiliate ranks recently have grown at an accelerated rate and we expect event participation to increase significantly as a result,” says SCRS Chairman Barry Dorn. “It’s exciting, because for the first time many collision repair professionals will get to witness the effective strategies that are forged when SCRS’ national perspective intermingles with the local, grass roots focus of the affiliates.”
The “ground level” industry view of the affiliates forms the bedrock upon which SCRS is formed and keeps the organization attuned to membership needs. The Affiliate Leadership Conference is perhaps the ultimate reflection of this aspect of SCRS.
Attendees gain exposure to, and learn from the experience of, their affiliate peers in other states as does SCRS. Local initiatives often contribute to the formation of solutions that can be applied elsewhere, including on the national level.
“The conference features collective insight to address issues you won’t find anywhere else, and we are grateful to have the opportunity to foster it,” says SCRS Executive Director Aaron Schulenburg. “Our affiliates and the thousands of businesses that support them want workable solutions to trying issues.
The Affiliate Leadership Conference provides the content, context and analysis to provide those answers through candid discussion bred from a forum structured specifically for our affiliate associations.”
The conference will maintain a similar proven format to previous years, with the first day featuring a focused review from each association in attendance. Local market issues and successful approaches to resolving those issues will be reviewed and analyzed through candid peer discussion.
Day two will feature updates from SCRS on its most recent national level activity, targeted discussions on prevailing industry issues, and a conversation on how SCRS can better help assist the collision repair industry. Toyota will make a presentation on Auto PartsBridge™, an electronic parts ordering system that allows body shops to send parts orders to Toyota dealers through a Web-based application.
In addition, CEICA Executive Director Fred Iantourno will join the group to share content from the CEICA Implementation Conference being held the two days preceding the SCRS conference.
“This dynamic forum for experienced affiliate leadership generates an incredible amount of useful content over the course of two days,” adds Schulenburg. “I advise anyone that hasn’t previously attended to bring a pen and the biggest notepad you can find-you will be taking a lot of notes!”
For information about the upcoming Affiliate Leadership Conference, please contact Executive Director Aaron Schulenburg at (302) 423-3537 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . You may also contact the SCRS administration office at (877) 841-0660 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Northwest Louisiana Collision Repair Association Hosts Meeting
The Northwest Louisiana Collision Repair Association held their monthly meeting on August 3 at the Shreveport, LA, Country Tavern, and discussed recycling techniques among several other industry issues.
To view a PDF of this article please CLICK HERE.
Guest speaker Michael Hughes, of Hughes Recycling in Shreveport, LA, gave a speech on recycling in the automotive industry.
Hughes mostly talked about recycling paper and white and clear plastics around a body shop.
“He is also working on finding a way to recycle plastic bumpers,” said Bill Burnside, past NWLCRA president.
Hughes also offered to waive his recycling fees for any business who joins the NWLCRA this month.
The meeting went on to highlight upcoming events for the association, including their annual Christmas party on December 4 which will coincide with a charitable toy drive for Toys for Tots.
The party will be held at Fielders Paint and Body, 521 North Market Street Shreveport, LA.
Next month’s NWLCRA meeting will be on September 7 at 6:30 pm at the Shreveport Country Tavern.
The guest speaker will be Jim Adams who will speak about time management and the company that designed the NWLCRA’s website will give a demonstration on new features and how to use them.
For more information please visit nwlcra.org.
Court Dismisses Suit Challenging CA Commissioner's Actions
California Insurance Commissioner Steve Poizner is considering a recent court decision a victory for consumers, as a lawsuit that attempted to stop the Commissioner from protecting Californians in connection with the Executive Life Insurance Co. was dismissed by the Court, according to reports made by Insurance Journal.
Last year, the Commissioner denied a request for permission to buy a California insurance company from a foreign company whose owner is the defendant in a multi-billion dollar lawsuit brought by Commissioner Poizner.
The sale would have siphoned money out of the United States while a federal court is in the process of determining how much that owner, French company Artemis S.A., ought to pay in compensation for previous fraud, according to the Commissioner. The proposed seller in the transaction, Artemis subsidiary Aurora S.A., subsequently sued the Commissioner for denying the transaction. A court rejected that lawsuit.
“It’s my job to protect policyholders, and when I saw the harm this transaction could cause to former Executive Life Insurance Co. policyholders, I refused to allow it,” said Commissioner Poizner.
San Francisco Superior Court Judge Charlotte Woolard rejected the lawsuit against Insurance Commissioner Steve Poizner, ruling that Commissioner Poizner acted properly when he denied approval of a sale transaction that had the potential to cause harm to former policyholders of Executive Life Insurance Co.
The suit is part of the on-going fallout resulting from the failure of Executive Life in 1991 and the massive fraud that was committed by French companies and companies owned by the French government in the subsequent insolvency proceeding.
The lawsuit concerned an attempt by Reassure America Life Insurance Co., a subsidiary of insurance giant Swiss Re, to purchase Aurora National Life Assurance Co. Aurora National is the life insurance company that was set up in 1992 to take over insurance policies from the insolvent Executive Life.
When it was established in 1992, Aurora National was purportedly owned by a consortium of French and Swiss companies. In 1999, the Commissioner learned that the ownership of Aurora National was a fraud and the true owner was a French government-owned bank, in violation of California and federal law.
The Commissioner sued in federal court in Los Angeles and recovered more than $700 million to date for former Executive Life policyholders. The lawsuit is still pending against one of the defendants, French company Artemis S.A.
While the Commissioner’s fraud lawsuit is pending against Artemis, Reassure America filed for permission to buy Aurora National from Aurora S.A. The timing of the sale would get Artemis’s share of the sale money to France, out of the reach of the Commissioner before he could obtain a judgment against Artemis in federal court. Artemis’ share of the sale will be paid to former Executive Life policyholders if the Commissioner wins his suit against Artemis.
The Commissioner denied the application on the grounds that the sale would harm former Executive Life policyholders and Reassure America demonstrated a lack of integrity in attempting to conclude the sale now, when it knew that harm would occur to its own policyholders.
Judge Woolard agreed, ruling that it was not an abuse of discretion for the Commissioner to consider the interests of Executive Life policyholders in his decision.
San Diego CAA Talks BAR and Insurance Race
The San Diego chapter of the California Autobody Association met July 27 at Tom Ham’s Lighthouse in San Diego. The chapter was able to discuss the BAR code of regulations with guest speaker Peter Vann as well as David Jones’ campaign for CA Insurance Commissioner.
Peter Vann gave a presentation about codes and regulations pertaining to the use of aftermarket parts versus OEM parts and how to properly fill out estimation forms to coincide with insurance company standards. Vann also discussed the BAR equipment requirements for auto body shops, specifically equipment used for structural repair purposes.
The San Diego CAA held a fundraiser to benefit Jones at Parkway Bowl in El Cajon on August 13. PAW PAC is supporting Dave Jones’ campaign for CA Insurance Commissioner.
Dave Jones will be interviewed in the October issue of Autobody News.
