SOUTHWEST NEWS (220)
Texas, New Mexico, Oklahoma, and Louisiana
Autobody News SouthWestern print edition is mailed to 7,000 body shops monthly
General Motors announced Jan. 31 that it will start construction within the month on a $200 million stamping plant in Arlington, Texas, creating about 180 jobs. Some of the jobs will be relocated from GM's Parma Metal Center in Ohio.
The plant will be part of the company’s Arlington manufacturing complex, adjacent to the facility that makes the company's full-sized sport utility vehicles, and is scheduled to start production in 2013. It will produce large stamping components for the next generation of Chevrolet Tahoes, Suburbans, GMC Yukons and Cadillac Escalades.
The company has noted that it is inefficient to make parts in Ohio and Michigan and ship them across the country to Texas. In addition to higher transportation costs, parts can get damaged during the long trip, lowering the quality of finished SUVs.
GM plans to add 180 jobs in Texas when the new stamping facility is finished next year. The Arlington plant now employs about 2,500. When the new stamping plant opens, it will take over fabrication of some parts now made at the company's Parma Metal Center.
Last May, GM said it would invest $331 million in the Texas assembly plant for expansion and to purchase tooling and equipment. GM says it has committed more than $6.9 billion of investments to upgrade or expand operation in 12 states since June 2009, creating or retaining more than 17,600 jobs.
GM spokeswoman Kim Carpenter said that won't mean any job losses in Parma. GM is increasing production at several plants in Ohio, Michigan and Indiana over the next few years, and there should be plenty of work for its larger stamping plants, she said.
"Parma stamping will continue making parts for other GM facilities," Carpenter said. "The Arlington announcement is adding capacity to the entire GM system."
Joe Ashton, vice president of the UAW representing the GM department, said in a statement that the announcement was further evidence that the U.S. auto industry is recovering.
“An important goal for the UAW is to increase the number of manufacturing jobs in the United States, and we are pleased that General Motors has decided to make this investment in Arlington,” he said in the statement.
Last month we reported that John Borek, General Manager of Autocraft Bodywerks in Austin, Texas, has filed a complaint with the Texas Department of Insurance against American National Property and Casualty Company (ANPAC) and a claims services company, American Claims Services, alleging that they “knowingly used a fraudulent document to justify their short-pay” of a claim.
In filing his complaint with the Texas DOI Property and Casualty Complaint Department, Borek wrote: “We believe that based on this document, ANPAC/ American Claim Service is knowingly using a fraudulent document to justify their short pay to limit the price paid for repairs to [the] automobile. By not performing these necessary operations, it will result in an incomplete repair. I have spoken today with the field appraiser assigned to this file and he confirmed that he put the needed repair operations on the original estimate although a document generated from ANPAC/American Claim Service shows a zero by all these operations.
In a letter of response to the Texas Department of Insurance, ANPAC said an appraiser working on its behalf used “an outdated document” when denying a supplement for color sand and buff from Autocraft Bodywerks in Austin, Texas, and that the supplement has now been paid. John Borek of Autocraft filed a complaint with the regulator last month after receiving a document that the American Claims Services appraiser indicated was from Audatex showing that color sand and buff is included in refinish times.
In his complaint, Borek called the document “fraudulent” given that Audatex, after searching its “Database Reference Manuals” back to 1993, concluded that the document is “most certainly not from ADP/Audatex.”
After a call asking for an update or comment on the complaint, the Department of Insurance sent Borek a copy of ANPAC’s December 27 initial response letter, saying it will notify him “once we receive additional information that was requested.”
Recently, three of the country’s top independent auto body repair centers around the country have joined the CARSTAR Nation to provide their customers and community members even better service and support.
CARSTAR Auto Body Repair Experts are North America’s largest group of auto body repair experts with some 400 stores in the United States and Canada—and growing. As a member of CARSTAR, these new franchisees will offer a new array of services and products for collision repair, including the latest in repair technology, rental vehicles, national warranties on repairs, and turnkey service for their customers.
As part of CARSTAR’s commitment to customer service, CARSTAR can take care of the entire process of repairing the vehicle for the vehicle owner, from getting the vehicle towed to the facility to coordinating with the insurance company to restoring it to pre-accident condition.
The new CARSTAR franchisees will benefit from the CARSTAR Management Systems, which provide resources to improve key business metrics such as cycle time, participation in CARSTAR’s 17 corporately managed DRP programs, and improved purchasing power from 44 corporately managed purchasing programs.
The three newest stores in the CARSTAR Nation include:
● CARSTAR Collision King, Houston, Texas. Owned by Allen Suleiman, CARSTAR Collision King has been serving the Houston market for more than a decade.
● Auto Masters CARSTAR Collision, San Antonio, Texas
● Auto Masters CARSTAR Collision, Victoria, Texas. Owned by Daniel Baker, Auto Masters CARSTAR Collision is a multi shop owner that has been serving the San Antonio region for 36 years.
“We are extremely pleased to welcome these new members to the CARSTAR Nation and expand our presence in the Houston and San Antonio markets,” said David Byers, Chief Executive Officer of CARSTAR. “They all run great businesses and have strong histories of quality customer service. We’re looking forward to building their business together, helping local car owners get back on the road with fast, reliable collision repairs, and giving back to the community at the same time.”
Texas Independent Automotive Association (TIAA) Holds January Meeting
Written by Staff
The Texas Independent Automotive Association (TIAA) held their monthly members meeting on January 19 at the Barn Door, 8400 N. New Braunfels Ave. in San Antonio, TX.
The meeting was held at 6:30 p.m., starting with a networking period. Speaker Tom Hansis from the UTSA Small Business Development Center was this month’s speaker and he talked to the 50 or so attendees about how shops can benefit from mentoring services that UTSA offers to shops.
UTSA offers online training, workshops and business advising for San Antonio-based small businesses. For more information about the UTSA Small Business Development Center, please visit sasbdc.org.
The TIAA will hold their next meeting on February 16 at 6:30 p.m. at the County Line on I-10. The speaker will be from the State Comptrollers office.
For more information about this meeting and other upcoming events for the association please visit www.tiaa.net.
Autobody News to Co-Host Van Tuyl Group Charity Super Bowl Event in the Dallas-Fort Worth Area Super Bowl Weekend
Written by StaffThe Van Tuyl Group, an Irving, Texas-based company with more than 70 automotive dealerships across the country, has announced the establishment of the first annual Charity Super Bowl flag football tournament in the Dallas-Fort Worth area. The event will be held Saturday, February 4, 2012 at the Stampede Sports Complex in Southlake, Texas—the day before Super Bowl XLVI takes place in Indianapolis.
The Charity Super Bowl will be co-sponsored by the Van Tuyl Group, PPG, and Enterprise Rent-A-Car®. All proceeds are to benefit Trinity River Mission, a volunteer-based, community learning center dedicated to supporting the development of educational success in the children, youth, and families of West Dallas.
The day-long Charity Super Bowl will feature 30 4-on-4 teams competing in a double-elimination tournament. There is an entry fee of $350 per team, with each team allowed to carry a roster of up to eight players. An awards presentation will be held at the end of the day. In addition to enjoying the games, fans attending the Charity Super Bowl can win raffle prizes and participate in a silent auction.
Service King Collision Repair Founder Appoints New Leadership Team
Written by StaffEddie Lennox, Founder, Chairman of the Board, and CEO of Service King Collision Repair Centers, the nation's largest employee-owned operator of collision repair centers, announced new leadership appointments of the company on January 4. Lennox announced that Service King's President, Cathy Bonner, is the new Chief Executive Officer. Lennox will continue as Chairman of the Board of Service King.
Lennox said, "Service King has the best leadership team in the collision industry. Cathy Bonner has added seventeen new locations now covering 70% of the Texas population." Lennox added that Bonner's next goal is to lead the second growth phase making Service King a national company by adding assets beyond the Texas borders.
Moving into the President's role is Chris Abraham, currently Vice-President of the Houston Market. Jeff McFadden will take the role of Executive Vice President.
Also joining the executive leadership team in new positions are Eileen Clark, Chief Financial Officer, and Michael Devendorf, Chief Operating Officer.
"This is the future leadership of Service King and I am so excited about the possibilities for us," said Eddie Lennox. "This leadership team has combined, over one hundred years of corporate business experience."
UPDATE: Houston City Council Delays Vote on Auto Repair Ordinance
Written by StaffThe city of Houston delayed voting on an ordinance to regulate the automotive repair and service industry affecting every type of business that touches a car, whether it’s a body shop, an independent auto repair shop, a dealership or a big store like Wal-Mart. The council rescheduled the vote for February 15, 2012, after more issues were raised at a hearing held on December 20, 2011, when the council was originally supposed to vote on this ordinance.
This delay presents some new problems to both sides lobbying over the bill--they now have an entirely new city council, sworn in January 3, 2012, to update on the issues.
A new list of council members by district can be seen by clicking HERE, find out which district you reside in by visiting http://www.houstontx.gov/planning/2011/index.html. The Houston Auto Body Association (HABA) would like its members to reach out to the new council and make sure their opinions on this matter are heard.
Kathryn van der Pol, Past President of ASA, Houston Chapter, and co-owner of Adolf Hoepfl & Son Garage, is working with the HABA on writing their own version of the ordinance, incorporating what's good about the City's version to present to the new council since Houston Mayor Mayor Annise Parker, wants to pass an ordinance on this issue. Mayor Parker also made some changes to the ordinance, and the version that will be voted on February 15, 2012, can be viewed in its entirety by clicking HERE.
The Texas Independent Automotive Association (TIAA) will hold their monthly members meeting on January 19 at the Barn Door, 8400 N. New Braunfels Ave. San Antonio, TX
The meeting will be held at 6:30 p.m., starting with a networking period. Speakers will begin at 7 p.m. Speakers have not yet been chosen and will be announced shortly before the meeting.
For more information about this meeting and other upcoming events for the association please visit www.tiaa.net.
NWLCRA Hosts Marine Corps, Environmental Safety Company at November Meeting
Written by StaffThe Northwest Louisiana Collision Repair Association held their November monthly meeting at the Country Tavern Barbecue in Shreveport, LA on November 1 at 6:30 p.m.
The meeting’s guest speakers were Sgt. Juan Arias with the United States Marine Corps and Bill Easterling with Environmental Risk Management and Safety. Bill Burnside, Secretary Treasurer for the NWLCRA, introduced Sgt. Juan Arias, the Toys for Tots Coordinator for the United States Marine Corps.
Arias thanked the NWLCRA for helping with the Toys for Tots drive this year. The Marines have been involved with the Toys for Tots for over 60 years. They pick up toys from organizations and businesses all over the United States and deliver them to the Salvation Army. The toys are then delivered to children all over the United States to ensure children can have a happy Christmas. This is a Marine Reserve function, but Active Marines can participate. The goal is to collect as many new, unwrapped toys for girls and boys as possible. December 18 was the last day for individuals, organizations, and businesses to deliver the toys to the Marines. Starting November 1, Marines set up at local Wal-Mart’s to collect toys. Last year they collected over 4,000 toys.
If any business wants to participate, the Marines will come to your location and set up a collection box. Once they are filled, they will pick up the toys. To have your business host a “Toy Drive”, contact Arias by phone at (318) 747-0795 or e-mail him at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
This is a very important cause and the NWLCRA helped this year by having everyone attending their Christmas Party bring an unwrapped, new toy for a boy or girl. A Marine was also at the party to collect these gifts.
The meeting’s next guest speaker was Bill Easterling with Environmental Risk Management and Safety. He talked about the changes on the regulation of personal protective equipment (PPE). He said that employers are responsible for providing PPE for all employees. The employer is NOT responsible for providing items that would be considered normal wear, i.e., boots, prescription classes, etc.
A business can now be cited for each instance of a violation, not just a single violation. If you have 4 employees that are not wearing safety glasses in an area where safety glasses are required, the business will be cited for ALL 4 instances, not just 1 citation for safety glasses.
He also stated that a decision has been made that states penalties have been too low in the past to be a proper deterrent, so now a business will have more citations with higher fines when that business has violations.
He provided a hand-out from attorney Mark Lies, with Seyfarth Shaw Attorneys, that outlines this OSHA change. Mr. Easterling discussed the proper disposal of waterborne paint related waste and the standard operating procedure. He outlined how a business should determine if the waste is hazardous or non-hazardous. Waterborne paint waste CANNOT be disposed of in the city sewer OR discharged to the environment. It must be picked up by a waste hauler for disposal.
Next, he discussed the paint booth filter testing. He said that used paint booth filters must be handled as hazardous waste unless they have been tested and found to be non-hazardous. He said that usually it is cheaper to have the filters tested instead of handling them as hazardous waste. Documentation of the tests results MUST be kept on file for verification. He had multiple hand-outs for everything he discussed and a copy of these hand-outs can be found by visiting the NWLCRA website.
The NWLCRA will hold their next meeting on January 3, 2012 and will be a night meeting beginning at 6:30 p.m. at the Country Tavern Barbecue.
For more information please visit www.nwlcra.org.
Houston Autobody Association Hosts Fundraiser for Senator Mike Jackson’s 2012 Congressional Run
Written by Staff
The Houston Autobody Association (HABA) hosted a fundraiser and reception held for Texas Senator Mike Jackson (R-La Porte) on November 30 at 6 p.m. at the Cadillac Bar and Grille in Houston, TX.
All automotive industry businesses were invited to attend and support Jackson’s campaign for election to Congress next year. Jackson has represented constituents in the Senate District 11, which includes portions of Brazoria, Harris and Galveston Counties, since 1999 and served in the Texas House for ten years before that.
Jackson, who has introduced several automotive industry bills in the past, announced his bid for the Republican nomination in the newly created 36th Congressional District seat back in August.
“Mike Jackson has always been a strong advocate for the collision industry and small business; he understands that there needs to be checks and balances between the Collision Industry and the Insurance Industry,” said James Brown, President of the HABA, “We endorse him as a candidate for the US Congress seat he is running for. In speaking with Senator Jackson last night, he assured me his priorites were going to be the same as they were in Austin, but hopefully on a national level in the next election.”
As a limited government conservative in the Texas State Legislature, Jackson has received numerous awards for his leadership, including: 2011 Champion of Small Business from the National Coalition for Capital (NCFC); 2011 Taxpayer Advocate Award from Texans for Fiscal Responsibility; 2010 Citizen of the Year Award from the Southbelt-Ellington Chamber of Commerce; 2009 ABC Free Enterprise Champion from the Associated Builders and Contractors of Texas; and 2009 Champion of Free Enterprise from the Texas Association of Business.
Jackson is a member of the Texas State Rifle Association, multiple area Chambers of Commerce, and is a licensed pilot. His hobbies include hunting, fishing and riding his Harley.
Please visit: www.mikejacksonforcongress.com for more information.
From standards to stand-offs, economic hardship to successful expansions, the Southwest collision industry has seen its fair share of challenges this year. We asked some repairers and other industry stakeholders to take a hard look at some of the issues they saw in 2011, and some they’d like to see less of in 2012.
Gary Wano, Jr., owner of GW&SON AutoBody, Inc. in Oklahoma City, OK, talked with Autobody News about his views on the collision industry over the past year and where we may be headed in 2012.
One key issue this year was a very uncertain economy, which affected many consumers’ decision to repair their vehicles.
“As for GW&SON, 2010 we performed 444 repairs at a repair average of $1201, this year, with no labor rate increases our ‘light repair’ average has raised to $1588, and we have only close 105 to date. I will admit this is a ‘at surface stat’ without digging any deeper it would appear our small ticket ‘customer pay’ repairs have dropped off by 73%, while the ‘customer pay’ severity has increased by 32.2%. Again, off the cuff I would say our client base is more willing to drive around with a few dents and dings, or $1201 worth of damage, but there is a level, or $1588, in damage that must be hitting out clients’ ‘got to repair’ threshold,” said Wano.
Another big change Wano saw this year was vehicle salvage value and the instances of a vehicle being labeled a total loss.
