INDUSTRY NEWS (896)
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Quality Parts Coalition Applauds Newly Introduced Legislation to Protect Consumer Access to Alternative Collision Repair Parts
Written by StaffThe Quality Parts Coalition (QPC) has announced its support for collision repair parts legislation introduced February 2 by U.S. House Judiciary Committee Members Darrell Issa (R-Calif.) and Zoe Lofgren (D-Calif.). The QPC urges quick passage of the bill by the House Judiciary Committee in early 2012 and is looking forward to working with members of the U.S. Senate Judiciary Committee to introduce a companion bill very soon.
The new House bill – Promoting Automotive Repair, Trade, and Sales (PARTS) Act – would amend section 271 of title 35 of current U.S. design patent law, reducing from 14 to 2.5 years the period during which car companies can enforce their design patents on collision repair parts against alternative suppliers. The period for such enforcement would begin upon the first offer for sale of the car model containing the design patented part in any country. This amendment would enable relatively quick access to affordable substitutions for American car owners. Australia and a number of European countries have already passed similar repair clause laws.
“The Quality Parts Coalition praises U.S. Representatives Issa and Lofgren for their leadership in protecting the rights of American drivers,” said Eileen Sottile, executive director of the QPC. “We urge Congress to pass this bill so that consumers can continue to have access to affordable, quality alternative replacement parts.”
According to the QPC, American consumers have benefited from the availability of quality, lower-cost alternative auto replacement parts to repair their damaged vehicles for more than 60 years. On average, competition in the collision parts industry saves consumers approximately $1.5 billion a year, according to economists at the Microeconomic Consulting & Research Associates. But car companies, which control more than 72 percent of the market, are trying to block competition. They are getting and enforcing design patents against the alternative collision parts industry – at the expense of consumers and businesses. If they succeed, American car owners will be left with very limited options and added costs and insurance premiums when repairing their vehicles. If Congress does not act, many older and lower-income Americans will also end up paying higher prices for parts and insurance premiums or will forgo repairing their vehicles all together. In some cases, the higher cost would lead to insurance companies declaring more damaged vehicles as “total wrecks.” As a result, these consumers may be forced to replace a repairable vehicle with a new car – a purchase that for many is not feasible.
The QPC has launched a “Write Congress” widget on its website – powered by award-winning e-advocacy company POPVOX – to encourage consumers, seniors and industry leaders to tell Congress they support this bill.
SCRS and Northern Michigan Body Shop Association Now Affiliated
Written by SCRS staffThe Society of Collision Repair Specialists (SCRS) said the Northern Michigan Body Shop Association (NMBSA) is its newest affiliate association member.
Founded in 2008, the NMBSA’s primary focus is collision repairers located in Michigan’s Upper Peninsula and the northern tip of the state’s Lower Peninsula, although it has begun to extend into other areas in the state.
“When we first formed, a lot of shops in our area felt they were losing control over their businesses due primarily to insurance influence,” stated Sue Allor, a founding member of NMBSA who now serves as the association’s secretary. “I felt strongly, as did many others, that we had to educate ourselves to succeed in the face of our challenges—to find out what tools and processes would help us operate better; to hear what our peers had gone through and how they had met and overcome difficulties; and most importantly to become aware of our rights and protections under the law, and understand that the customer is the vehicle owner, not the insurer.”
I-CAR named Doug Schlueter National MSO Manager and Rene Rodarte as Schlueter’s successor as South Central Regional Manager.
Jeff Peevy, I-CAR Senior Director, Field Operations and Segment Development, said, “Doug will be instrumental in his new role as National MSO Manager at I-CAR. He will focus on growing the Multi Shop Operator (MSO) segment and will establish and maintain relationships, as well as work to improve operational efficiencies.
Through serving in the role of South Central Regional Manager since 2009, Schlueter has gained a clear understanding of the needs of the MSO segment and has the skills necessary to help I-CAR and the industry achieve its goals.”
Mitchell Parts Index Sheds Light on Parts Trends Post Japan’s Tsunami
Written by Greg Horn, Mitchellby Greg Horn, Vice President
Industry Relations Mitchell International
When we created the Mitchell Collision Parts Price Index (or MCPPI) a few years back, it was to serve as a barometer to measure parts inflation both in aggregate and split out by part type and vehicle country of origin. The MCPPI was created with the Consumer Price Index as its model as the Consumer Price Index (CPI) is best known to most Americans as the general rate of inflation.
To view a PDF of this article please click HERE.
The CPI is one of the most closely watched economic indicators because it tracks the rate of inflation for a wide sampling of goods we routinely buy. Just in the way the CPI measures a “basket” of goods and services and compares the prices month to month. This basket contains hundreds of different types of goods and services ranging from the inexpensive to very expensive.
In creating the Mitchell Collision Parts Price index, we used a similar approach of taking a collision ‘market basket. We selected the top 20 most replaced collision parts for the following categories: Hood, fenders, headlamps, turn signals and side marker lamps. We pulled data from 2003 through the third quarter of 2011. We then created weighted average prices for these parts in aggregate, setting the base year at 2003 and equal to 100. This allows us to compare inflationary trends by part type. All part types are retail prices, in the case of LKQ/used parts, are calculated with the mark up included in the pricing.”
40 Technicians Honored at ASE 2011 Annual Meeting in Charlotte, NC
Written by StaffForty automotive professionals were recognized on November 16, 2011, at the Fall board meeting of the National Institute for Automotive Service Excellence (ASE) held at the Marriott City Center in Charlotte, NC.
The annual awards banquet spotlights top scorers on the ASE Certification Tests. Thirty different companies from both OEM and Aftermarket segments sponsored the individual technician recognition awards in the Auto, Truck, Collision and Parts categories, along with three instructor awards. In addition to looking for top scores on ASE tests, award sponsors examine on-the-job excellence, community service and other factors when selecting honorees.
This year’s celebration in Charlotte was enhanced by a visit from five former Team ASE drivers, who volunteered their time to sign autographs and meet the award winners in person. NASCAR drivers Kasey Kahne, Jason Leffler and Mike Bliss were joined by Ted Musgrave and Jimmy Spencer to help make the reception a memorable affair. In addition, there were two new award sponsors this year, one being the first ever from the military, representing the US Air Force.
“ASE has been honoring the best of the best in our industry for more than 30 years, and this year we recognized forty outstanding individuals from all across the nation,” said Tim Zilke, ASE President & CEO. “We couldn’t do this without the support of our many award sponsors, whose ranks include some of the best-known names in the industry. Their commitment to excellence is reflected in the talented individuals we recognize each year.”
Mitchell Announces Wicklunds CARSTAR as Winner of Get-a-Life Dream Vacation
Written by Staff
Mitchell, a San-Diego-based provider of technology, connectivity and information solutions to the Property & Casualty claims and Collision Repair industries, announced the winner of Mitchell’s Get-a-Life Dream Vacation contest held in 2011.
Mitchell’s RepairCenter™ team presented Gabrielle Kephart of Wicklunds CARSTAR and Glass in Liberty, MO with a check totaling $5,000 in late December 2011, for an all expenses paid trip to Maui, Hawaii. RepairCenter is the industry’s first Shop Workspace™ solution that manages the repair, the customer, and the business, all from a single personalized workspace, helping body shops manage their businesses so well that they have time to “get a life.”
“Congratulations to Wicklunds CARSTAR for winning Mitchell’s Get-a-Life Dream Vacation,” said Jim O’Leary, Mitchell’s Vice President of Repair Solutions. “We are pleased to empower shop employees to ‘get a life’ by simplifying every aspect of complex auto collision repair business environments. Mitchell’s RepairCenter auto shop management software streamlines key repair processes to help body shops be more efficient.”
O’Leary added, “We believe that a trusted partnership―founded on listening, responsiveness and collaboration―is the cornerstone of Mitchell’s and our clients’ success, and we will continue building on the value we deliver to the collision repair industry.”
Women’s Industry Network Accepting 2012 Board Applications
Written by StaffIn keeping true to their motto, “Driving the Future for Women in Collision Repair,” the WIN Nominating Committee is now accepting applications for seats on the WIN Board.
The Board consists of various industry segments including but not limited to: shop owners, jobbers, suppliers, consultants, paint companies and insurance companies. Aside from the WIN annual Conference in May volunteer WIN Board members work together to foster an environment that encourages the education, recruitment, retention and networking of women in the collision repair industry.
“Within a short time, the Women’s Industry Network has grown in size, produced informative and motivational events, and become a recognized industry association through volunteer efforts, industry sponsorships and the enthusiasm of the WIN membership. WIN is all volunteer. Volunteering for the WIN Board is an outstanding opportunity to have a present and future influence on our industry. If you are motivated to “drive the future for women in collision repair, apply for the WIN Board.” said Denise Caspersen, of ASA, chair of the WIN Nominating Committee.
The deadline for applications is February 24, 2012. For application requirements and further details go
to womensindustrynetwork.com. Completed applications should be mailed or PDF copy emailed to WIN Nominating Committee; c/o ASA – Denise Caspersen; 8190 Precinct Line, Suite 100, Colleyville, Texas 76034. For further information please contact Denise Caspersen, phone: (817) 514-2906; email:
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To find out how you can become involved and support WIN or for information on becoming a member or sponsor of WIN, please contact Victoria Jankowski at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Jeanne Silver at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
WIN is also offering scholarships to female collision industry students, instructors and shop employees to attend its 2012 conference May 6-8 in Atlanta.
Scholarship applications must be submitted through mail by March 9. Visit womensindustrynetwork.com for additional details on scholarship requirements and the application mailing process.
Columnist Mike Causey Announces Candidacy for Commissioner of Insurance Position in North Carolina
Written by StaffMike Causey, a sometime Autobody News columnist, announced his candidacy for North Carolina’s Commissioner of Insurance position in Greensboro in early January. Causey chose Dare County to launch his campaign he said, “…to bring focus on the problem of insurance in the coastal counties. Premiums for household insurance, especially windstorm insurance, have skyrocketed in recent years in eastern North Carolina, worse yet in the coastal counties.”
Causey said he was urged by North Carolina Republican leaders to seek the office this year because of widespread and bipartisan criticism of how the State Office of Insurance has been administered.
Causey is also known as a consumer advocate and lobbyist for the Independent Auto Body Association (IABA) as well as healthcare groups and Organic farming and Healthy Eating advocacy.
This will be Causey’s fourth attempt at the position, after losing in the general election in 1992, 1996 and 2000 to Democratic incumbent Jim Long.
Causey, a Greensboro native, will run under the Republican ticket. He currently serves as commissioner on the North Carolina Public Officers and Employees Liability Insurance Commission and is a member of the Guilford County Agricultural Advisory Board. Current Democratic Commissioner Wayne Goodwin is also seeking re-election.
In an interview in the Beaufort Observer, the interviewer expressed a “high level of frustration of residents of Beaufort County with the insurance business in our county. Many residents in Beaufort County experienced severe problems with insurance companies following Hurricane Irene and even more have experienced difficulty in obtaining satisfactory coverage at a reasonable price. We asked him what he proposed to do about those problems if elected.”
“One of the main reasons I’m running is that I want to help people who are having problems with insurance companies,” said Causey. “That would be one of my top priorities in building a “customer-oriented” Insurance Department. As for the problem of difficulty in getting reasonable coverage, particularly comprehensive homeowners’ and mobile homeowners’ policies, I would work with the Legislature to address that problem. One of the specific things I would want to look at is the idea of making every policy equally available across the state. That would broaden the risk pool and I think that is something we need to take a hard look at.” He added: “we need a more competitive insurance industry in North Carolina and that is another thing I would want to work on.”
Mike Causey is not to be confused with another Mike Causey, who is a senior correspondent for Federal News Radio. He covers federal employee pay and benefits issues and writes a daily column about these topics.
You can read our Mike Causey’s columns at autobodynews.com/columnists/causey-mike.html.
I-CAR Names Insurance Organization Gold Class Professionals®
Written by StaffErie Insurance, an I-CAR Gold Class Professionals® business, has equipped its staff of Auto Physical Damage Appraisers with the latest training available in the industry, providing them with the knowledge and skills needed to help increase CSI scores, improve operational efficiencies, and minimize repair mistakes.
I-CAR, the Inter-Industry Conference on Auto Collision Repair, has announced January 12 that Erie Insurance is now one of only five insurance organizations to have achieved the industry-recognized I-CAR Gold Class Professionals® designation as a corporation. Insurance businesses can earn the Gold Class designation at a corporate level, as Erie has, or at a business location.
John Van Alstyne, I-CAR CEO & President stated, “By achieving the Gold Class designation, Erie Insurance has shown a dedication to both customers and employees by investing in training that will provide valuable services. Through Erie’s commitment to I-CAR training, Erie Auto Physical Damage Appraisers now possess role-based knowledge that can improve estimating accuracy and help reduce cycle time, both of which lead to increased customer satisfaction.” Van Alstyne further added, “With the rapid rate of change in vehicle technology, continuous role-relevant training is essential. It is another key driver to customer satisfaction, and, ultimately business success.”
Jim Brown, Erie VP and Manager, Material Damage Department, said, “Erie Insurance is committed to delivering top notch service to our customers and is focused on providing our staff with the training and resources needed in today’s collision repair industry. By providing our customers with accurate estimates, we can improve claims accuracy, which will allow us to continue providing our policy holders that have been in automobile accidents with the best repair plan possible.”
Businesses that have earned the I-CAR Gold Class Professionals® business designation are required to achieve high levels of training as well as maintain ongoing annual training.
“I-CAR is pleased to designate Erie Insurance as a Gold Class business and provide the staff at Erie with a training path that will improve their overall operational efficiencies,” explained Joyce Kasmer, I-CAR Director of Business Development.
For more information please visit www.i-car.com.
SCRS Responds to Article on Insurer Involvement in Setting Rates
Written by StaffIn a letter released December 20th, 2011, the Society of Collision Repair Specialists (SCRS) provided commentary on an article written by USA Today contributing editor, Adam Belz, and entitled, Auto body shops say they, not insurers, should set costs.
The letter from SCRS counters points raised in the initial article, and provides information supporting the assertion that the property & casualty insurance industry's direct influence over collision repair market pricing, has impacted both the consumer and the small businesses that make up the collision repair industry. Several key components of the letter identify that:
- Property and casualty insurance carriers have become increasingly involved in activities that extend beyond the business of insurance, while interjecting themselves into collision repair business activities.
- The responsibility to compensate for fair and reasonable costs of the loss is significantly different than defining what is fair and reasonable.
- Average gross collision appraisal values have remained stagnant comparing the first and third quarters of 2009, 2010 and 2011, and older data indicates that the average appraisal value has remained flat for at least the last 7 to 8 years; meanwhile, consumer auto insurance premium costs continue to rise and the Insurance Information Institute recently reported that private auto insurance is the most profitable line of insurance coverage in the United States.
- The insurance industry's approach to establishing a singular prevailing labor rate charge for all businesses within a market fails to recognize the existence of reasonable variance between competitive businesses.
- When the repair shop has entered into both the DRP contract with the carrier, and an authorization to repair contract with the vehicle owner, it is not necessarily as simple as insurers "promoting poor quality work," but it becomes a question of who has more influence over the repair facility's decision making in the repair process, and whose interest drives those decisions.
In summary, the association states that, "the question is not IF insurance carriers directly impact collision repair market pricing, but rather IF their approach and purpose is appropriate. Are we really talking about saving consumer's money, or are we talking about increasing insurance company profits at the expense of their policyholders and the small businesses who serve them?"
For more information please visit www.scrs.com or email
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.
Meguiar's Makes $600,000 Donation to Collision Schools Through the Collision Repair Education Foundation
Written by StaffMeguiar’s Inc., a 3M Company, has come to the aid of 676 secondary and post-secondary collision programs across the country by donating sets of their Unigrit Fine Grade Blending and Finishing Discs through the Collision Repair Education Foundation. The donation, in total equaling a retail value of $600,000, will ease collision department budgets by providing students the opportunity to work with up-to-date supplies. The gift from Meguiar’s helped the largest amount of schools in one donation in the Collision Repair Education Foundation’s history.
“Since 2008, 3M has provided over $2 million in product donations to the Collision Repair Education Foundation and these have greatly impacted instructor’s ability to properly instruct collision students,” stated Collision Repair Education Foundation Executive Director, Scott Kruger. “On behalf of collision students and instructors nationwide, we thank Meguiar’s and 3M for their continued support and invite additional collision industry businesses to follow 3M’s lead in providing product donations to secondary and post-secondary collision school programs.”
Northern Virginia Community College (Alexandria, VA) Collision Repair Instructor Geoffrey Brown said, “Thank you so much for Meguiar’s very generous donation. These sorts of donations really help our program by being able to expose our students to products and techniques that we could not afford to provide out of our limited budget. The students are already excited about being able to get to use them and are now looking forward to next semester where I am sure we will put them to good use. Thank you Meguiar’s!”
“Being able to assist in the development of our nations young professionals is an extremely gratifying feeling and one that our company is proud to be able to take part in” explains John Dillon, Global Vice President of Meguiar’s Professional and Marine Division. “We are excited at the ability of collision repair students that are supported by this foundation to have the opportunity to have first hand experience with our product and to learn the proper techniques to use them. It is a complete win-win opportunity for everyone involved.”
For additional information about 3M visit www.3m.com/automotive and to find out more about Meguiar’s Car Care Products visit www.meguiars.com
Industry members and companies interested in supporting secondary and post-secondary school’s collision programs through monetary and/or in-kind product donations should contact Associate Director of Development, Brandon Eckenrode at
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or 847-463-5244.
