INDUSTRY NEWS (977)
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Future Vision: Will Driving Become Too Safe to Insure?
Written by Stephanie K. JonesBy Stephanie K. Jones
What would happen to the auto insurance industry if automobile safety improves to the point that vehicle collisions become relics of the past?
That’s the question explored by global consulting and research firm, Celent, in a new report that envisions a future of increasing emphasis on safety in the automobile industry and among government entities that leads to a massive drop off in auto insurance premium for U.S. property/casualty insurance companies.
The sixth annual Women’s Industry Network Conference kicked off Monday morning in Atlanta with over 200 women from all segments of the collision repair industry. The first day included a keynote address on “Extreme Change: Adapt, Overcome & WIN as One” by Robyn Benincasa, World Champion Adventure Racer, San Diego City Firefighter and Founder of World Class Teams and Project Athena Foundation. Dr. Linda Gravett of Gravett and Associates inspired conference attendees with her strategies for managing stress and maintaining inner peace utilizing exercises borrowed from Tai Chi, Yoga and Tae Kwon Do. The afternoon session included an update on vehicle design and collision avoidance technology and its impact on the industry presented by Kim Hazelbaker, Senior Vice President, Highway Loss Data Institute.
BMW is recalling 24,340 vehicles equipped with diesel engines from the 2009-11 model years that may fail to meet U.S. and California emission control requirements.
About 2,740 2011 and 2012 model year X5 xDrive 50i and X6 xDrive 50i vehicles, and 21,600 3-series diesel models, will be recalled, the automaker said. The recalls were scheduled for May 9, with a customer letter to follow, BMW North America spokesman Dirk Arnold said.
The vehicles were manufactured at factories in Spartanburg, S.C., and Germany.
BMW said certain emissions components, including the SCR catalyst, the DEF mixer and the EGR valve, may improperly overstate vehicle mileage, causing emissions standards to be exceeded and the illumination of the "Service Engine Soon" light.
BMW said the repair will require the inspection and replacement of one or more of the emissions components and the reprogramming of the vehicle's engine control unit.
AIM Autosport FXDD Racing With Ferrari Claims Second Victory in a Row
Written by staffAIM Autosport FXDD Racing With Ferrari placed first on May 13 at New Jersey Motorsports Park, securing two victories in a row for the Canadian team. The team has retained their first place lead in the Grand AM Rolex Sports Car Series GT Team and Driver Championship Standings with an outstanding eight points.
The team's racers, Jeff Segal and Emil Assentato say they couldn't be more pleased with their win.
Chris Evans Appointed Chairman Emeritus on the Collision Repair Education Foundation Board of Trustees
Written by staffThe Collision Repair Education Foundation announced the unanimous appointment of Chris Evans, State Farm Insurance Companies, to Chairman Emeritus on the Board of Trustees in recognition and appreciation of his service to the Foundation.
Carroll Shelby International, Inc., announced that Carroll Hall Shelby, a man whose vision for performance transformed the automobile industry, has died at age 89. Mr. Shelby passed away yesterday at Baylor Hospital in Dallas. The cause of death was not disclosed.
Born on Jan. 11, 1923, Carroll Shelby was one of America’s greatest success stories. Championship-winning racecar driver, “flying sergeant” wartime pilot, philanthropist, entrepreneur, car manufacturer and racing team owner, he embodied the ingenuity, tenacity and grit to overcome any obstacle. He is perhaps the only person to have worked at a visible level with all three major American automobile manufacturers.
Repairers Have Their Say at SCRS NIIF in Oklahoma
Written by SCRS staffThe industry has its troubles, and it is up to repairers to change things for the better.
This was the overriding message evident at the 20th annual Society of Collision Repair Specialists (SCRS) National Industry Issues Forum (NIIF). Held April 25th in Oklahoma City exclusively for SCRS members and repairers, the three-hour "town hall" gathering offered a truly unique opportunity for attendees to speak their minds about the industry issues that matter most to them without the presence of insurers and other non-repairer entities. SCRS representatives welcomed and encouraged this direct feedback, which they use to calibrate their messaging and carry on to other industry events on behalf of their membership.
Unsurprisingly, the majority of views expressed during the Forum represented the overwhelming sense of frustration felt throughout today's collision repair industry. Like a frog in a cooking pot, repairers in attendance openly expressed their growing discontent with the current state of the industry, and the overwhelming and intrusive pressures placed upon their businesses.
Service King Plans to Acquire Auto Body World's eight locations in AZ
Written by Terry Box, Dallas NewsRichardson-based Service King, in its first acquisition outside Texas, plans to buy a chain of body shops in Arizona the company announced this morning.
Terms of the deal with Auto Body World Inc. were not disclosed. The transaction, which should be completed in July, will give Service King a total of 58 shops and annual revenue approaching $300 million.
"This will move us from sixth in the U.S. to the third largest collision-repair company," said Service King CEO Cathy Bonner.
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I-CAR, the Inter-Industry Conference on Auto Collision Repair, has introduced a new series of online courses that provides foundational knowledge on the basics of the collision repair process for professionals across the collision repair inter-industry.
The Intro to Collision Repair Series is designed for such roles as entry-level technician, entry-level appraiser, front office staff, customer service rep, sales staff, call center agent and vo-tech student.
The intro series includes a set of 14 one-hour online courses that covers topics such as vehicle parts terminology; mechanical repair terms and vehicle protection; tools, equipment and attachment methods; and collision repair process overview. The intro series is customizable to a business, and staff members can take all the courses or only the ones they need. Upon purchase, the courses remain in the trainee’s secure online myI-CAR account, available whenever a quick refresher is needed.
Upon completing the courses, individuals will have the knowledge needed to understand certain aspects of collision repair technology, more clearly explain the collision repair process to customers, reduce customer hold time and call transfers, field customer questions about vehicle repairs and efficiently interact with customers.
“Efficiency is key to running a successful business, and ensuring that your team has a solid understanding of the basics of the collision repair process can benefit a business in several areas,” said John S. Van Alstyne, I-CAR CEO and president. “Training from the intro series empowers non-technical staff to interact with customers more confidently and will allow them to continue providing value in their role at a collision repair business. ”
Special introductory pricing of 30 percent off the total purchase price of the entire set of 14 courses is available through July 30, 2012.
SCRS Weighs In on State Farm Parts Ordering Program
Written by Chasidy Rae SiskState Farm first began testing a parts-ordering program with DRP shops in California and Indiana in 2007–2009. Auto manufacturers granted State Farm a parts discount through the electronic parts-ordering program. In April 2011, the insurance company released an online video discussing future parts-ordering initiative. As parts sales represent 33% of the collision industry, or around $10 billion annually, it is no surprise that insurance carriers seek control over the parts procurement process. An article in “Insurance and Technology” in April 2011 references a report by Stephen Applebaum and the Aite group which states “State Farm is leading the way to greater control of the auto repair procurement process with its announcement of a new electronic parts-ordering initiative.” The question shop owners should ask is: do you want the insurance company to have greater control over parts procurement?
When State Farm began testing in Arizona and Alabama early this year, they sent a letter to their parts suppliers stating that all repairers in the Select Service program have agreed to use their automated replacement parts system and will be required to use PartsTrader. Their letter also claims that “suppliers registered with PartsTrader will have the ability to provide competitive pricing on the entire parts order through the quoting process which may provide opportunities to increase sales volumes.” Repair facilities received communications regarding the electronic parts ordering and workflow process which begins with writing an estimate and uploading it to PartsTrader which will pull the parts list before shops forward the quote request to the part suppliers in the program. Once the quotes are received, sometime later, shops can review the quotes, order the selected parts and update the estimate accordingly.
In April 2011, State Farm Auto Claims Consultant George Avery claimed the program will benefit the repairer, the supplier, the customer and the insurance company. Though State Farm will obviously save money through the program, the benefit to shops, suppliers and customers is a bit more elusive. In exploring this concept of the benefits for shops, SCRS gathered information pertaining to a sample scenario in parts quotes were requested to repair front-end damage on a job requiring four parts: three bumper components and a lamp. For this example, quotes result in a loss of $95.88 to the repair facility and savings of $239.85 for the insurance company if the cheapest parts are selected, compared to if all parts were ordered using traditional OEM MSRP.
In addition to decreased profit regarding parts, this program also incurs additional expenses in time as the repair facility must wait to receive quotes on parts and then manually re-enter the estimate before it can be committed. SCRS’s press release points out “this particular example only has 4 parts; how much administrative cost is associated with that task if there are 40 parts? What is the cost of potentially dealing with multiple suppliers to maintain the most ‘competitive price’?”
So, how does this parts bidding program benefit you, the shop owner? Do your research, and be vocal if you find this will negatively affect your business. It is your industry, and you are the only ones who can defend it. More information about SCRS’s sample above, including a breakdown of the losses incurred for each part, can be found at their website, www.scrs.com.
CCRE 2012 Seminar—Taking Back the Collision Repair Industry
Written by Chasidy Rae SiskE-NEWSLETTER SIGN-UP
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