WESTERN NEWS (330)
California, Arizona and Nevada
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Caliber Collision Centers, operator of collision repair facilities in California, Nevada, Arizona and Texas, announced Feb. 1 that it has acquired 101 Collision, a five shop MSO with locations along the Southern California coast: Westlake Village, Burbank, Oxnard, Santa Barbara and Simi Valley.
“Today’s announcement is a Caliber Collision milestone with an acquisition that brings Caliber to 100 centers. This acquisition further cements our strategic expansion plans across core markets as we provide our insurance clients with the customer focus, cost management, and operational consistency they require in today’s competitive insurance market” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer.
“We recognized that 101 Collision and its management team provided Caliber with the perfect opportunity to expand our market presence along the Southern California coast behind a high quality brand committed to complete customer satisfaction” added Grimshaw.
Another MSO acquisition is likely to be announced shortly.
Inland Empire CAA Holds Tech Appreciation and Education Night
Written by Staff
The Inland Empire chapter of the California Autobody Association (CAA) held a Tech education and appreciation night on January 25th at the Spaghetti Factory in Rancho Cucamonga.
This was the first meeting of 2012 for the Inland Empire chapter, and new President Tim Brown from Auto Center Auto Body in San Bernardino was on hand to introduce the night's speaker.
The meeting's speaker was Tom McGee, the Collision Industry Relations Manager for ALLDATA. Tom spoke about ALLDATA S3500, the company's updated software version. This is a newer platform that is easier to navigate. Tom also guided attendees through the repair procedures and symbols to help ensure that techs have a better understanding of the procedures outlined by a vehicle manufacturer to perform a proper repair.
The event had 60 people in attendance and 13 were technicians. Very generous associate members of the CAA donated prizes to be raffled off to technicians only, and all 13 in attendance went home with some great prizes.
Also each Tech who accompanied an Owner or Manager to the event received a complimentary meal.
For more information about the next Inland Empire meeting please contact Cindy Shillito the Southern CA CAA Rep at 714-944-4028.
ASCCA and CAWA to Host Third Annual Joint Summit in February 2012
Written by StaffThe Automotive Service Councils of California (ASCCA) and California/Nevada/Arizona Automotive Wholesalers’ Association (CAWA) are hosting the third annual Aftermarket Summit on February 18, 2012, in Sacramento. The summit continues to grow, and the two organizations expect to attract participants representing both independent repair facilities and aftermarket parts and manufacturers and distributors.
Issues to be discussed include:
• Strength in industry unity;
• Sharing legislative agendas;
• AWDA’s work on warranties and labor claim form – best practices;
• Industry training: what’s available; how to encourage participation; scholarship giving;
• What is the image the industry wants to project; what attracts people to enter the industry; incentives;
• The industry is transforming, particularly technologically, in the conduct of business between suppliers and customers.
Tracy Renee, 2012 ASCCA President, noted the following about the summit, “The rate of technological changes in our industry, and environmental influences, as well as legislative and regulatory impacts, will continue to grow exponentially. The outcome of these factors will shape our individual and collective futures as well as the industry. Together we must reflect that growth to be effective in protecting our interests and having our collective voices heard, respected, and acted upon.”
Steve Sharp, Chair of CAWA’s Board of Directors, stated, “As manufacturers, distributors and retailers, we find it informative and valuable to have thought-provoking discussions with the repair segment of our industry. These discussions strengthen our respective businesses and builds unity throughout the aftermarket distribution channel.”
For additional information regarding the summit, please contact CAWA CEO Rodney Pierini, at 800.332.2292, ext. 1; or ASCCA Executive Director Jackie Miller, at 800.810.4272; 916.924.9054.
Insurers: “It appears these regulations would merely benefit vendors, like auto body repair shops"
Written by staff and ACIC press releaseInsurer representatives' reaction to the California Department of Insurance (CDI) Jan 25 meeting to discuss proposed labor rate survey and steering regulations has been critical of pro-shop benefits, saying "these regulations would merely benefit vendors, like auto repair shops."
The Association of California Insurance Companies (ACIC) says proposed labor rate survey regulations create new standards on how insurers conduct surveys, which could increase costs for auto repairs. See related articles HERE.
CDI’s proposed steering regulations could also inhibit insurers from informing policyholders where they can obtain repair estimates. ACIC testified in opposition to these proposed regulations during the workshop in Sacramento, California. In its testimony, ACIC requested that CDI provide information on its rationale for considering this regulation. ACIC specifically requested how many and the types of consumer complaints CDI has received related to this regulation.
“Absent this consumer data from CDI, we don’t understand how the regulations benefit consumers,” said Armand Feliciano, ACIC vice president. “It appears these regulations would merely benefit vendors, like auto body repair shops. Given California’s shaky economy, now is not the time to propose laws that could increase the cost of auto repairs.”
“CDI is attempting to legislate through the regulatory process with these proposed labor rate survey and steering regulations,” said Feliciano. “Regulations must have statutory authority granted by the Legislature for them to be valid; CDI does not have legislative authority to make these policy changes.”
Under current law, labor rate surveys are voluntary in California. Some insurers conduct these surveys to determine how much auto body shops are charging for labor in a certain area. This helps insurers to predict repair costs and establish premium levels. Current law also prohibits insurers from telling policyholders to go to specific repair shops. Policyholders have the choice to take their car to any shop they choose.
“Any major policy changes like what CDI is contemplating should be considered through the legislative process,” said Feliciano.
About the ACIC:
The Association of California Insurance Companies (ACIC) is an affiliate of the Property Casualty Insurers Association of America (PCI) and represents more than 300 property/casualty insurance companies doing business in California. ACIC member companies write 41.8 percent of the property/casualty insurance in California, including 57.3 percent of personal auto insurance, 45.7 percent of commercial automobile insurance, 40 percent of homeowners insurance, 32.5 percent of business insurance and 43.4 percent of the private workers compensation insurance. PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association.
Full Text of California DOI’s Proposed Amendments to Insurance Code
Written by StaffProposed additions to the current text of regulations are in bold text and proposed deletions to the current text of regulations are indicated in strike-through text.
Title 10, Chapter 5, Subchapter 9, Article 7
Amend section 2698.91 as follows: Section 2698.91
Auto Body Repair Labor Rate Surveys
(a) Section 758(c) of the Insurance Code provides that any insurer that conducts an auto body repair labor rate survey to determine and set a specified prevailing auto body rate in a specific geographic area shall report the results of that survey to the department which shall make the information available upon request. The survey information shall include the names and addresses of the auto body repair shops and the total number of shops surveyed. Section 790.03(h) of the California Insurance Code enumerates sixteen claims settlement practices that, when either knowingly committed on a single occasion, or performed with such frequency as to indicate a general business practice, are considered to be unfair claims settlement practices and are, thus, prohibited. The practices prohibited include failing to the attempt in good faith to effectuate prompt, fair, and equitable settlements of claims Section 790.10 of the California Insurance Code provides that the commissioner shall, from time to time as conditions warrant, after notice and public· hearing, promulgate reasonable rules and regulations, and amendments and additions thereto, as are necessary to administer this article 6.5 (Unfair Practices). The Insurance Commissioner has promulgated these regulations in order to accomplish the following objectives:
Hitting the Streets with the G & C Auto Body Meter Beaters
Written by Ed AttanasioIt all began 20 years ago as a knee-jerk reaction to a bad experience with a parking meter maid, but today it has been lauded as a successful social experiment while evolving into a highly effective viral marketing endeavor. The G & C Meter Beaters are a Santa Rosa, California, based creation of Gene Crozat, the owner of G & C Auto Body, with seven locations in the Northern Bay Area, with an eighth opening in June.
To view a PDF of this article please click HERE.
During the 10 days right before Christmas, the G & C Meter Beaters save drivers from getting parking penalties by feeding their meters before the City of Santa Rosa’s parking enforcement officers are able to nail them with a $33 parking ticket. It’s a program that Crozat began when he was upset over what he felt was an unfair parking ticket he received two decades ago.
“I was rushing back to my car after shopping and the meter maid was sitting there waiting for the meter to expire,” Crozat said. “She saw me coming, but she gave me the ticket anyway. I was really mad, so I went to the bank and got a bunch of quarters. I told my kids—get out there and put money in all these meters before they expire. That’ll show ‘em.”
But brilliant ideas don’t always gain traction overnight and the Meter Beaters were a prime example. To say that the powers-that-be in Santa Rosa weren’t enamored with Crozat’s idea was a major understatement. “They threatened my kids and told them ‘your daddy is going to jail’, ” Crozat explained. “They didn’t like the fact that we were stopping people from getting parking tickets and said we were interfering with their operation. The media flocked to the story and pretty soon the city backed off.”
Oregon Shop’s Parts Manager Performs Heroic Deed to Save a Life
Written by Ed AttanasioWould you step up and be a hero if you were in an emergency situation with little time to think? Many of us have asked ourselves this same question, but few ever get the opportunity to find out.
To view a PDF of this article please click HERE.
James Bray, a parts manager at Fix Auto Portland East in Oregon was tested in a big way when he was called upon to pull a man out of a burning car and save his life.
If Bray ever had any doubts about his courage or his ability to act heroically, they were all answered at 2 a.m. on December 3. In a highly stressful situation requiring quick thinking and quicker action, Bray was able to think fast and take lifesaving action. That early morning a BMW hit a utility pole right in front of Bray’s house in Vancouver, Washington. Normally, Bray would have been asleep, but luckily for the driver, he was still awake, playing computer games.
Sounds in the night are mostly weather or animal-related in Vancouver, but this one caught Bray’s attention immediately. “It was a very deep pop sound and I had no idea what it might be. So, I went to the window in the living room and that’s when I saw the car wrapped around the light pole.”
CA/NV/AZ Automotive Wholesalers Association (CAWA) Delivers Rebuttal to Letter of Opposition to “Imitation” Aftermarket Crash Parts Legislation
Written by StaffThe CA/NV/AZ Automotive Wholesalers Association (CAWA) announced their response to a letter of opposition to “imitation” or aftermarket crash parts legislation written by the Alliance of Automotive Manufacturers, CA New Car Dealers Association, California Autobody Association and Consumer Attorneys of CA to CA senators and assembly members on December 5.
The letter sent by these organizations to their senators and assembly members states; “The above-identified organizations and signatories write to inform you of their collective opposition to legislation that promotes non-OEM (original equipment manufacturer) crash parts as the functional equivalent of OEM parts. [Nonoriginal Equipment Manufacturer (Non-OEM) crash parts are parts made by a party other than the original car manufacturer without the dimensions, design specifications, tolerances or other information known to the original equipment manufacturer.]
“Existing law requires insurers that compel consumers to accept non-OEM parts when vehicles are repaired to inform consumers that “imitation” parts will be used and to warrant the “imitation” parts are “oflike kind, quality, safety, fit and performance” as OEM parts. For years, the insurance industry and off-shore, aftermarket parts industry have tried to weaken the law so they may compel unsuspecting consumers to accept inferior non-EOM parts.
“We support existing law and oppose efforts to weaken it for the following reasons:
● Existing law promotes disclosure and fair repair practices.
● Too many non-OEM parts are clearly inferior to OEM parts. For example, see the Bureau of Automotive Repair study on this issue. Also, Consumer Reports has debunked the argument that aftermarket “tin” parts are comparable to OEM parts.
● Use of non-OEM parts may impair warranties and reduce the value of used vehicles.
● Vehicles are increasingly complex, designed to dissipate crash energy by collapsing as engineered, and rely on multiple sensors to immediately deploy airbags upon contact. The use of “imitation” parts may impair these highly-integrated functions and endanger passengers.
“If approached to author legislation to unfairly promote the use of “imitation” crash parts, please contact us. We request the opportunity to discuss this important consumer protection issue with you before introduction.”
2012 NABC Annual Fundraiser Held in Conjunction with CIC in Palm Springs, CA
Written by StaffThe National Auto Body Council (NABC) held their annual golf event fundraiser on January 11, 2012, at the Tahquitz Creek Golf Resort in Palm Springs, California. A total of 133 golfers registered for the scramble format. The event was able to raise $55,000 this year and was held in conjunction with the NABC’s open board meeting, which took place the previous day, January 10, as well as the Collision Industry Conference (CIC), which took place January 11, 12, 13.
The annual fundraising event plays an integral part in providing the resources that support the organization in its mission of improving the image of all dedicated collision industry professionals because it is a major source of funding for the group. Not only does it help NABC implement the programs and activities that define it and give shape to this purpose, it helps reduce the cost of NABC’s programs for participants, making them more affordable.
The fundraising committee comprised of current NABC board members worked together throughout last year in setting higher goals and expectations for this year’s golf fundraiser, success that translated into additional revenue. “Every sponsorship opportunity available was taken advantage of and every golf slot was filled equating to the higher revenue,” stated David Merrell, NABC golf committee chair.
California’s DOI Calls Meeting, Drafts Reforms to Labor Rate Surveys, DRPs, and Steering
Written by StaffIn a letter to ‘Certain Interested and Affected Parties’ the California DOI has taken a second step to address concerns of collision industry stakeholders. In November the DOI’s legal division hosted a meeting to discuss proposed revised aftermarket part regulations. The results of that discussion are under review by the department (see http://tiny.cc/ydvp6). Now the DOI, under Commissioner Dave Jones, is taking on the issue of Labor Rate Surveys, DRPs, and Steering. Departmental attorney, Teresa R. Campbell has organized a January 25th meeting (10–12:00 noon at the DOI in Sacramento, and has drafted contemplated revisions to the California Code of Regulations, impacting Direct Repair Programs and Labor Rate Surveys. Steering is also addressed in language concerning insurer recommendations of automobile repair dealers. Although welcoming input and discusssion, the ‘rulemaking file’ will not be opened until formal notice is given by DOI and that comments must be submitted during the formal public comment period.
The language (complete text follows) proposes that insurers shall report the results of any labor rate survey within 30 days to the department which will in turn make the results available. The survey information will include names and addresses of the auto body shops and the total number of shops surveyed. The 16 current unfair claims settlement practices detailed in Section 790.03(h) of the California Insurance Code will be prohibited, including ‘failing to the attempt in good faith to effectuate prompt, fair, and equitable settlements of claims’.
Following are selected quotes from the proposed language:
CARSTAR Launches Expansion Effort in California, Sees “Tremendous Opportunity”
Written by StaffFor drivers in California, the risk of an auto accident is higher than many other parts of the country because California has more licensed drivers than any other state—more than 22 million drivers on the road. It’s no wonder then that there are close to 6,000 active shops in California, and more that do some custom or occasional repair work. While some also say California is also the hardest place to run a profitable shop due to legislative and othe factors, CARSTAR is looking for franchise opportunities in the golden state.
Last fall CARSTAR announced a new business development team, appointing Mark Behrens, Director of Network Development for California, and saying he would focus on expansion of the CARSTAR brand into California and adding new franchise partners to existing CARSTAR markets.
Now CARSTAR Auto Body Repair Experts has announced an agressive expansion effort in California to offer select body shop owners an opportunity to join North America’s largest MSO network with over 400 stores in the United States and Canada. As a member of CARSTAR, the company says franchisees can offer an array of services and products for collision repair, including the latest in repair technology, rental vehicles, nationwide warranties on repairs and turnkey service for their customers.
“There is a tremendous opportunity for body shop owners in the California marketplace, as the heavy traffic and enormous number of drivers create a constant need for quality collision repair,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “But it’s a competitive environment where store owners must meet strict environmental standards, manage insurance relationships and deliver high KPIs, drive sales and margin improvement on tight budgets and continually provide excellent auto body repairs. These store owners are looking for the business services and resources that only CARSTAR can provide, and we’re looking forward to adding a select group of these shop owners to the CARSTAR Nation.”
CARSTAR says that California shop owners who become 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.
California shop owners who become 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.
California shop owners interested in learning more about opportunities with CARSTAR Auto Body Repair Experts can contact Keith McCrone, CARSTAR Director of Network Development–California, at (858) 859-1511.
Interested shops can also visit www.carstar.com for more information.
