Stars are aligning for Detroit 3 surge
Automotive News reporter Mike Colias reports that there are no more excuses for the Detroit 3.
Just two years removed from their near-death experience, U.S. automakers have a glistening opportunity to take back some of the market share they have hemorrhaged over the past two decades.
Toyota’s recall crisis last year cracked open the door just as the Detroit 3 were picking themselves up off the mat. Now Toyota and other Japanese rivals will be hobbled by quake-related production drops of as much as 50 percent in the coming months — just as a recovering U.S. economy is bringing shoppers back into showrooms.
Brad Sowers, a Chevrolet dealer in St. Louis, says Honda and Toyota customers are showing up at his store.
“We’ve been talking about it forever, but we’re actually starting to see it,” says Sowers.
A dearth of colors or trim packages on Japanese brands could be just enough to nudge lifelong import customers — or first-time buyers — into Detroit 3 dealerships. They might be surprised with the rejuvenated product lineups they find.
Facebook, Fun – but sells few cars
Automotive News Reporter Dave Barkholz writes that despite the hype, social media such as Facebook, Twitter and YouTube do little to help dealers sell vehicles.
Just 3 percent of 4,005 new and used car buyers polled last summer said social media influenced their purchase decision, according to a survey by market researcher R.L. Polk & Co. and AutoTrader.com, a car shopping Web site.
“It’s amazing that we put so much priority on social media when it’s not making us a lot of money,” said Kevin Frye, eCommerce director for the nine-store Jeff Wyler Automotive Family in Cincinnati.
Frye said he has experimented for four years with social media — with little success turning that engagement into sales. He’s sticking with it, but he’s doubtful that direct vehicle sales will result.
Dealers across the country are racking their brains to understand what social media can do and how much money they should spend on it.
Many dealers say that social media are good for building relationships and awareness. Many add that that social media’s role in auto sales is bound to grow, so dealers need to jump in. On the social sites, dealers can post videos, pictures, blogs, answer questions and converse with customers on various topics.
South regroups after killer storms
Automotive News Southern Bureau Chief Lindsay Chappell writes that tornadoes last week caused hundreds of deaths, destroyed communities and snarled operations at automotive businesses across several Southern states.
On Friday, April 29, industry sources in Alabama said companies still were coping with widespread power outages and humanitarian concerns. Repeated efforts to reach suppliers and auto dealerships in the path of Wednesday’s destructive storms were unsuccessful, complicated by downed telephone lines, toppled cell towers and a lack of electricity.
“I haven’t been able to get through to any of our dealers north of Birmingham,” said Tom Dart, president of the 300-member Alabama Automobile Dealers Association in Montgomery.
An estimated 1 million people in Alabama were without power Friday morning, interrupting business for companies, including Toyota Motor Corp.’s engine plant in Huntsville.
The power loss shut down the Huntsville plant on Wednesday through the weekend, curtailing output of engines for the Tundra and Tacoma pickups and the Sequoia SUV. Utility officials in the state said power could be out for up to a week in some areas of the state.
In Vance, Ala., 150 miles to the south, winds of up to 100 miles an hour in advance of the more destructive tornadoes caused light damage to Mercedes-Benz U.S. International Inc., which builds the Mercedes M-, R- and GL-class vehicles. The damage did not affect the plant’s operating capability, says spokeswoman Felyicia Jerald. But the plant closed on Wednesday, Thursday and Friday because of supply chain difficulties.
Local Repair Shops, Vendors Refinish San Diego Marine's Mustang
Sgt. Edward Flak II returned from his third tour in Afghanistan on April 22 to find his '94 Mustang GT missing from his garage.
The 26-year-old Marine from Temecula, CA, had purchased the car second hand from a friend about 4 years ago and couldn't afford to repair the vehicle between his tours to the Middle East.
"When he left, the first thing he said about money was save money so I can get my car done when I get back," Flak's wife, Krissy told 10 News San Diego.
Unbeknownst to Flak, Krissy and Janet and Jim Bird of Bird Family Tire and Auto in Temecula decided to repair the car for him while he was gone.
The Birds' daughter attends school with the Flak's daughter and the subject of refinishing Flak's Mustang came up one day. Krissy had been getting quotes of upwards of $10,000 to repair the Mustang while Flak was overseas.
The crew at Bird Family Tire and Auto repaired the car's engine and Bob and Shelley Kantin of Precision Paint and Body Works signed on to do the refinishing through a mutual contact with Jim Bird.
Tornadoes Devastate South: Halting Local Automakers' Plants, Inundating Insurers
Tornadoes that ripped across states in the southeast portion of the US brought destruction April 27. States hit were Alabama, Mississippi, Tennessee, Georgia, Virginia and Arkansas. Alabama was the hardest hit with over half of the fatalities. As of April 28 the confired death toll sits at 250.
To view the full text of this article with photos please click HERE.
"It looked like it was probably a mile wide," Birmingham Mayor William Bell said of the funnel cloud to CNN. Tuscaloosa, AL, mayor Walter Maddox predicted it would take months for the town to recover.
President Barack Obama had already expressed condolences by phone to Alabama Gov. Robert Bentley and approved his request for emergency federal assistance on April 28.
In Hueytown, AL, shop owner Jason Wilson was in his business--Jimmy's Auto--when he heard the tornado warning sirens. He gathered his family, including his two children, and decided to ride out the storm in the shop.
About an hour afterward, Wilson stood in the parking lot, stunned, looking at the roof of the store. The roof had been blown off the building as they huddled inside, he said.
"We was fixing to go home and heard the siren," he said to al.com. "We took cover. It's about all you can do. And then it just blew the roof off."
Are you a body shop with Southern Tornado damage?
If so, contact us, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call 800-699-8251. We'd like to feature your story in our next issue along with others.
Free OSHA classes in 4 Texas cities
In honor of OSHA's celebration of 40 years and in memory of workers who lost their lives on the job, The University of Texas at Arlington OSHA Education Center will be offering the following classes FREE to our constituents.
Classes are scheduled for various Texas cities including Arlington, San Antonio, Austin and Houston.
Registration is online and participation is limited by venue size, so don't delay in registering! Visit the OSHA education Center web site or call 1-866-906-9190 for details on a class in your city!
Philadelphia Body Shop Owner, Manager, Lawyer, Appraisers, and Cop Charged with Insurance Fraud
Eleven people have been arrested in connection with an insurance fraud scheme allegedly involving University Collision Centers of Philadelphia. A Philadelphia police officer, a personal injury lawyer, seven auto damage appraisers and the owner and the manager of a Philadelphia collision repair shop have been charged in an insurance fraud scheme prosecutors say netted them millions over four years, according to reports made by Joseph A. Slobodzian, of ther Philadelphia Inquirer and
Prosecutors are alleging a forklift was modified by attaching one of three types of car bumpers to the tongues to create a variety of scrapes, dents and tears on automobiles. City prosecutors allege that University Collision workers would then report the damages to insurance companies for inflated payouts.
Philadelphia District Attorney Seth Williams and Deputy Police Commissioner Richard Ross announced the filing of felony charges against 11 people, who allegedly worked together to file numerous fraudulent insurance claims, at a Center City news conference.
The charges are the result of a lengthy undercover probe by the DA's Insurance Fraud Unit (IFU) with assistance from Nationwide Insurance Co., GEICO Insurance Co. and the National Insurance Crime Bureau.
"This is not a victimless crime," Williams said. "All Philadelphia consumers are affected."
Among the 11 charged as a result of the 13-month undercover investigation of University Collision Centers by the DA's Insurance Fraud Unit were:
- Philadelphia police officer Gary Cottrell, 44, a 15-year veteran of the force assigned to the 14th District in Germantown and Chestnut Hill. Cottrell allegedly was a "wreck chaser" who traveled throughout the city in uniform to direct accident victims to University Collision. A spokeswoman for the police noted that Cottrell had been suspended for 30 days with intent to dismiss. Cottrell faces a maximum of 152 years incarceration. Deputy Police Commissioner Richard Ross said corrupt officers are a minority of the 6,000-member department: “It’s very sad that all the other men and women on the force have to deal with this.”
- Michael Wolf, 52, of Phoenixville, Chester County, a lawyer with a Philadelphia practice. Wolf allegedly advised University Collision's owner in the fraud and also filed several phony personal injury claims with them. Wolf is a lawyer who has been licensed in Pennsylvania since 1988, and works at the firm of Kotsopoulos & Wolf P.C. They have offices in King of Prussia and Cherry Hill. He allegedly faces 103 years in prison.
- Edward Hildebrandt, 41, of Philadelphia, owner of University Collision, with operations in Gray's Ferry and Manayunk.
- David Coleman, 41, of Chadds Ford, Chester County, identified as manager of University Collision.
The seven vehicle damage appraisers included four from Philadelphia: Arthur Juliano, Addaie Amankwaaw, Cheryl Stanton, and Steve Wilkinson. The others were from South Jersey: Dave Robertson and John Howell, both of Cherry Hill, and Richard Reilly of Mullica Hill,Vicki Markovitz, an Assistant District Attorney, noted that the damage appraisers were independent and reviewed claims for most major insurance companies.
'Confessions of a Paintless Dent Remover' at Edmunds.com
Calling a paintless dent remover instead of taking your car to the body shop can save you significant amounts of time and money. But choose carefully — the job is far trickier than it looks. We managed to track down and speak with the Obi-Wan Kenobi of paintless dent removers, Los Angeles-based Sean McMullan of This e-mail address is being protected from spambots. You need JavaScript enabled to view it , as he massaged a complex ding out of a Subaru Impreza. His keen and entertaining insights are below.
I tell people I'm the McDonald's of the automotive world — I make everyone happy for a lot less money. To be specific, I can usually fix your dent for a third the cost of a body shop. Sometimes it's even a tenth the cost, if you add in the car rental and down time. But you have to know what you're doing, as you almost have to be an artist to know how to do this job. The dent on this Subaru Impreza — caused by a baby seat falling onto the car — looked like it was going to be borderline impossible to fix.
Read the rest of the article HERE
'Confessions of an Auto Claims Adjuster' by Edmunds.com
When you want to get a little more for your car, you can't be nice. The adjuster knows what he can do, he's done it a hundred times before and he won't hesitate to do it again to close that file. But to you, the individual, it's a brand-new thing. And it's money in your pocket.
After my friends get in a car accident, they come to me to ask how to deal with the claims adjuster. Recently, I helped a friend who had totaled her Mini Cooper and she got $1,500 more than what the insurance company first offered her.
You have to know the business and understand the role of the auto claims adjuster and then you can negotiate effectively on your own behalf. It's not that the insurance companies are trying to cheat their clients. Actually, they want you to be happy. But they are in a hurry, with lots of open cases, and don't have the time or inclination to thoroughly research your case.
Read the rest of the article HERE
Mercedes-Benz First Teen Driving School in the United States to Open in Los Angeles
Mercedes-Benz USA announces today that it is opening the company's first Mercedes-Benz Driving Academy in Los Angeles in October 2011, offering a fully integrated driver's education program and school that incorporates online, classroom and behind-the-wheel training for Los Angeles-area teens.
The Mercedes-Benz Driving Academy is unveiling details for its teen driving school at the annual California State PTA Convention, where approximately 2,500 California PTA members are attending from April 28 – May 1, 2011 in Long Beach, CA.
Mercedes-Benz is appointing Carolyn Duchene as Director for the Mercedes-Benz Driving Academy, and she will be responsible for the launch and management of daily operations. A Mercedes-Benz USA employee since 1994, Duchene has held several positions in the areas of marketing, digital media, training and education, and customer service.
"In addition to a unique educational approach, our highly qualified staff will be a key differentiator for the Mercedes-Benz Driving Academy. We are recruiting and hiring the best talent for all areas of operation," said Duchene. "The Mercedes-Benz Driving Academy will connect with students and parents using a personalized, customer-centric approach that truly creates a unique offering among driver's education services for new teen drivers."
'Confessions From the Body Shop' at Edmunds.com
For most consumers, auto body shops are intimidating and mysterious. The good ones restore your beloved car to gleaming perfection. The bad ones hide problems and stick you with a big repair bill.
We talked with three veterans of the auto body industry, two of whom (Brian and Neal) run their own collision repair businesses and the third expert (Andy) who is a well-connected industry observer. Our sources, who spoke on the condition of anonymity, shed light on this shadowy world and offer suggestions on how to manage costs, avoid rip-offs and ensure that sure your car is fixed right.
Read the rest of the article HERE
Chrysler to Repay All Bailout Loans this Quarter
Chrysler announced April 28 that it will repay its U.S. Treasury, Canadian Federal and Ontario aid loans within a few months.
The automaker will achieve this by refinancing that debt in a new term loan facility and through a private offering of newly issued debt securities to institutional investors. The offering will be exempt from registration under the U.S. Securities Act of 1933.
Chrysler said it will use the proceeds of that offering — plus the gains from Fiat’s plans to purchase an incremental ownership interest in the automaker — to completely pay down its debt to the aforementioned U.S. and Canadian governments and take care of the related fees and expenses.
Sergio Marchionne, chief executive officer, said, “We have chosen to accelerate the pace to bring about, in the shortest possible time, the birth of a single group capable of fully leveraging the joint development of the respective international activities.
“Chrysler is undergoing an extraordinary industrial and financial turnaround, and Fiat is ready to take control, in order to bring even greater stability and strength to the relationship in the interests of both,” he added.
Herb's Paint and Body Manager Elected Committee Chairman for State Fair of Texas
Alan Walne, Body Shop Manager at Herb's Paint & Body Shops in Texas, was elected chairman of the board of directors and chairman of the executive committee of the State Fair of Texas during the annual meeting of the board on April 20 at The Women’s Museum in Fair Park. Walne succeeds Ruben Esquivel, who served as chairman from 2007-2011. Esquivel will continue as a member of both the board and executive committee during Walne's term.
Five new members were elected to the board of directors; Sam P. Burford, Levi H. Davis, Robert A. Estrada, Wendy A. Lopez and Craig A. Woodcook will serve on the 55-member board of State Fair of Texas, Inc., the private, non-profit corporation responsible for presenting the annual exposition.
At the luncheon meeting, the board of directors also elected its officers for the coming year. In addition to Alan Walne, chairman, others elected were Errol W. McKoy, president; Lee Winton, CFO/senior vice president, finance; Robert B. Smith, corporate secretary; and Billy R. Allen, Roy C. Coffee, Jr., Thomas M. Dunning, Ruben Esquivel, Roy Gene Evans, Lois Finkelman, Richard Knight, Jr., James M. Moroney III, Alice Murray, Pete Schenkel, John Scovell, George Shafer, Bruce Sifford, and Joel T. Williams, Jr.
ALLDATA Expands Preferred Provider Agreement with FIX Auto USA
ALLDATA LLC announced an expansion to the national account agreement with Fix Auto USA, making ALLDATA Collision(SM) S3500 the preferred provider of OEM repair information to Fix Auto USA members. As part of this agreement, Fix Auto USA members will also have the ability to incorporate ALLDATA Collision S3500's Estimate Integration, which will give member shops the ability to access OEM repair information while building the estimate.
ALLDATA Collision S3500, a comprehensive online database of both OEM mechanical and collision repair information, was developed to meet market demand in the collision industry. It satisfies the industry's long-time need for accurate and affordable vehicle-specific collision repair information. Just as ALLDATA(R) Repair(SM) S3000 meets the needs of mechanical repair shops, ALLDATA Collision S3500 has become an industry standard for collision professionals.
In addition to delivering vehicle-specific collision repair information, ALLDATA Collision S3500 has been enhanced to integrate OEM repair information directly into collision estimates. Estimate Integration works with the three major estimating systems to offer shops detailed OEM repair information specific to the vehicle and procedure, generating accurate repair plans the first time. With Estimate Integration, Fix Auto USA members can properly plan a repair to include any sublet time, ensure they have the proper tools and equipment as they write the estimate, and improve overall productivity in the front and the back of the shop.
"ALLDATA Collision S3500 allows collision repair facilities to repair vehicles to original equipment manufacturer standards," said Wayne Mitchell, ALLDATA Director of Sales and Operations. "By offering ALLDATA Collision S3500 to its members, Fix Auto USA can help its members cut cycle times, reduce supplements and provide proper documentation to consumers and insurers. We are thrilled that Fix Auto is using ALLDATA Collision S3500 to help their members increase their overall profitability."
Fix Auto USA Director of Membership, John Bosin added, "ALLDATA is a clear choice for our members' electronic repair information needs. I am not surprised that ALLDATA has reached the 80,000 subscriber milestone, and I am sure they will be adding more. Fix Auto USA is looking forward to expanding our relationship with ALLDATA."
Mercedes-Benz USA Ranked One of Best Places to Work in NJ
Mercedes-Benz USA (MBUSA) announced April 27 that for the second consecutive year, it has been ranked one of the "Best Places to Work in New Jersey" according to NJBIZ Magazine, New Jersey's primary business journal covering the state. This award was designed to identify, recognize and honor the best places of employment in New Jersey, benefiting the state's economy, its workforce and businesses. The award program, created in 2005, is produced by NJBIZ and sponsored by Gibbons, P.C. and Novo Nordisk and is in partnership with Garden State Council SHRM, The New Jersey State Chamber, Employers Association of New Jersey and the New Jersey Economic Development Authority.
9% of Californians Talk or Text While Driving According to Observational Study
An estimated 9 percent of California drivers talk or text on their cell phone while driving — despite state laws that prohibit such actions, a recent study has shown.
In the first-ever survey of its kind, the California Office of Traffic Safety found that an estimated 9 percent of California drivers talk or text on their cell phone while driving. Officials also announced that, with approximately 55 percent of law enforcement agencies reporting in, at least 20,455 were cited for handheld cell phone use and texting during the first two weeks of a Distracted Driving Awareness Month campaign.
“This study is highly significant for California,” said OTS Director Christopher J. Murphy. “It gives us a base to measure against in years to come as we combat this serious threat to safety on our roadways.”
The observational study had researchers fan out to more than 130 intersections in 17 counties to observe whether drivers had a phone to their ear, were wearing a Bluetooth or headset device, were manipulating a handheld device, or were talking while holding a phone in their hand but not to their ear. Of the 5,413 drivers observed across the state:
Man Wanted in Connection With Death Of Point Loma Auto Repair Shop Owner
Authorities are asking the public for help in finding a man suspected of fatally shooting his former boss at a San Diego auto repair shop the victim owned and operated on April 19.
A customer of the business who was dropping off her car came across the body of Jalal "Joe" Abou around 7:30 a.m. in the parking lot of his shop, Joe's Auto Repair, located on 1930 Rosecrans Street.
Abou's body was found next to a silver Toyota with the driver side door still open.
Witnesses reported hearing gunshots at the location at around 7:15 a.m. Nicolas Rosales, 47, a former mechanic at Joe's Auto Repair on Rosecrans Street, allegedly shot 63-year-old Abou to death at the garage around 7:30 a.m. that morning, according to San Diego police.
Officers arrived to find the victim lying in a parking lot at the garage with several Good Samaritans trying to revive him with CPR, homicide Lt. Ernie Herbert said. Paramedics took over the lifesaving attempt before pronouncing the man dead at the scene.
''MILLION PLEDGE MISSION'' AIMS TO STOP 1,000,000 DRIVERS FROM TEXTING AND DRIVING
TXTNG KILLS
Texting and driving caused almost 400,000 injuries and deaths last year across the United States and is quickly becoming America's fastest growing killer, but there's a growing mission to drive those numbers down.
What started off as a wearable reminder to be text free while driving has grown into a national mission to make the roads safer for everyone. Earlier this year, a Colorado family started giving local teens a "TXTNG KILLS" thumb band to make them aware of the dangers of texting and driving. Just a few months later, national attention of the texting crisis has the Edgin family sending out over 30,000 bands per month and working with schools, community groups and police agencies across North America to collect 1,000,000 signatures on their text free driving pledge.
"Texting and driving makes you 23X more likely to crash and causes more accidents than drinking and driving", says Robert Edgin (founder of the Million Pledge Mission), "even though it's illegal to text and drive in most states, very little has been done to educate drivers of just how dangerous it is - until now." The laws across the US and Canada have become increasingly strict in dealing with texting and driving and a number of drivers have been charged with vehicular homicides in recent years for deaths they caused while texting behind the wheel.
Texting and driving TXTNG KILLS thumb band
The problem, according to Edgin, is that an overwhelming number of drivers make texting a normal part of their daily commute and end up spending more time looking at their phones than they spend looking at the roads. "Texting takes your eyes off the road for an average of 5 seconds at a time. At 55 mph, that's the same as driving the length of a football field blind", says Edgin.
The Million Pledge Mission kicked off the first week of April to educate drivers across North America of the dangers of texting and driving and collect 1,000,000 signatures from drivers who commit to be text free behind the wheel. Schools, colleges and a number of police departments and community groups are giving away "TXTNG KILLS" thumb bands to drivers who sign the pledge as a wearable reminder to stay text free while driving. Anti-texting campaigns have grown by the thousands across the nation over the past 12 months and schools are making an extra effort to promote text free driving as prom and graduation seasons (the 2 deadliest weekends of the year for teen drivers) is getting under way.
"This is a problem that every driver in the country has to deal with every time they get in their car", says Edgin. "Most of the people who die in texting and driving accidents are just innocent people who were in the wrong place at the wrong time. It's time for people to do the right thing and put an end to all of these preventable accidents." You can sign the pledge online at www.millionpledgemission.com or by downloading the pledge to print and sign it.
About the Million Pledge Mission
The Million Pledge Mission (www.millionpledgemission.com) is run by the TextingThumbBands company. TextingThumbBands is a family run company that provides silicone TXTNG KILLS thumb bands as well as text free driving pledges and informational material to individuals and groups across North America.
www.TextingThumbBands.com
www.textingwhiledrivingbands.com
719-930-3510
ASRW Partners with Muscle Car Network of Florida
Automotive Service & Repair Week (ASRW) is pleased to announce a new partnership for 2011 with the Muscle Car Network of Florida. ASRW, comprised of the International Autobody Congress & Exposition (NACE) and the Congress of Automotive Repair & Service (CARS), is scheduled for Oct. 6-8 at the Orange County Convention Center in Orlando, Fla. (with the education tracks scheduled to begin Oct. 5).
The Muscle Car Network plans to display approximately 80 vehicles on the ASRW show floor at ASRW, during the expo. The display includes rare, exotic and hot rod vehicles, which belong to members of the network. Additionally, the Muscle Car Network plans to make a donation to a local automotive charity Saturday, Oct. 8, to further education and training for the next generation of automotive service and repair professionals.
“Our audience has a true passion for automobiles, and we know they’ll appreciate this collection of vehicles. We’re pleased to be partnered with this group, and to have something new and exciting to offer at the show this year,” said Ron Pyle, Automotive Service Association (ASA) president and chief staff executive. “We’re grateful for the opportunity to give back to the local Orlando-area community, in appreciation of our time there.”
Auto Insurance Fraud in NY Remains at Crisis Levels & the ‘Fraud Tax’ Exceeds $200 Million for second consecutive year
Allstate responded April 26 to the Insurance Information Institute’s (III) announcement that fraud and abuse in New York State’s no-fault auto insurance system remains at crisis levels. III also revealed the estimated ‘fraud tax’ that New Yorkers paid in 2010 was $204 million—an amount exceeding $200 million for the second consecutive year. The New York State Senate Insurance Committee is holding a hearing on April 26 to examine the issue more closely.
Krista Conte, New York spokesperson for Allstate Insurance Company, said in response to the III announcement:
"We agree with the Insurance Information Institute that the scale of fraud and abuse in New York State's no-fault auto insurance system today has reached crisis levels. Not only is no-fault fraud (auto accident fraud) costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk.
"Those who would commit this type of crime are taking advantage of the broken no-fault system and they are organized, calculating and part of a big business. In essence, the perpetrators of this crime are imposing a 'fraud tax' on honest, hard working New Yorkers by gaming the auto insurance system.
"Without the support of lawmakers, incidents of fraud will continue to increase. Responsible citizens are the victims. We urge lawmakers to enact comprehensive, meaningful no-fault insurance reform that puts citizens of New York first."
Study Says Most U.S. Consumers Want to Buy an Electric Vehicle (Eventually)
Plug-in electric vehicles may just be entering the market, but most U.S. consumers are ready to buy them. E Source recently analyzed data from the Nielsen Energy Survey and found that 85 percent of U.S. consumers say they would purchase a battery-driven car either right away (3 percent), when their current car needed replacement (57 percent), or when the technology is proven and it becomes more mainstream (25 percent). The caveat is that consumers strongly prefer (58 percent) plug-in hybrid electric (PHEV) versions such as the Chevrolet Volt. PHEVs have greater range than electric-only cars like the Nissan Leaf and only 8 percent of consumers prefer them. "We are seeing a substantial willingness for drivers to move to plug-in electric vehicles, but only if the manufacturers can provide the easy extended range of travel that Americans are used to," says Bill LeBlanc, senior advisor at E Source.
E Source also reports that younger drivers are more willing than older drivers to purchase the electric-only cars, and people who describe themselves as liberals are similarly more inclined to desire the all-electric cars than those classified as conservatives. "We see that all ages and all political mindsets like the plug-in hybrid vehicles equally," says LeBlanc. "But when it comes to the all-electric car, it appears to be seen as more of a 'green' purchase, rather than as a practical upgrade to a more-efficient vehicle."
Another factor that E Source looked at was how far people drive each day and how that affects their desire for a plug-in electric vehicle. Daily driving habits don't seem to affect desire for the all-electric vehicle; however, desire for the PHEV grows as people spend more time in their cars. "Overall, the survey supports the existence of a huge untapped market for electric vehicles that can be charged at night at home. People seem very ready to move to the next generation of cars and dramatically decrease the frequency of their visits to the gas station," reports LeBlanc.
New York is in an Auto Accident Fraud Crisis, Broken Laws Need to be Fixed Now, NYIA to Testify at Senate Hearing
Immediate reform of New York's fraud-riddled no-fault automobile insurance system is needed to stop criminals from cheating the state's citizens out of hundreds of millions of dollars a year, says the New York Insurance Association, Inc. (NYIA).
In testimony prepared for delivery April 26 at the New York State Senate Insurance Committee regarding no-fault auto insurance fraud, Ellen Melchionni, president of NYIA, identifies how the broken no-fault auto laws are forcing New Yorkers to paying for the fraudulent activities of criminals. Costs are spiraling out of control because bogus medical mills and unscrupulous medical providers, predominantly in the New York City area, are billing for treatments that were never performed, unnecessary or excessive.
"Criminals are committing rampant fraud, imposing a 'fraud tax' on honest, hardworking New Yorkers," Melchionni said. "Meaningful, comprehensive reform of the laws is necessary to fix the broken system that criminals are blatantly exploiting for their personal gain. There is not a silver bullet to solve this problem. Auto accident fraud is a moving target. The state needs to be vigilant in fighting this vast problem and cracking down on criminals who have created a 'big business' of fraud to cash in at the expense of New York residents."
"NYIA supports the substantive reform introduced by Sen. James Seward and Assemblyman Joseph Morelle, S2816A/A6286," Melchionni said. "This bill contains numerous remedies including giving insurance carriers adequate time to investigate fraud, encouraging efficient and fair settlement of disputes and creating tougher penalties for fraud."
"NYIA also supports two bills that would help stop staged auto accidents," Melchionni said. "We believe the majority of staged accidents occur during the first 60 days of a newly issued policy. Sen. Martin Golden and Assemblyman Carl Heastie have introduced S4507/A6346A, which would allow insurers to cancel new policies purchased with phony checks or credit cards—minimizing the opportunity for fraud. Another piece of legislation, S1685 sponsored by Sen. Seward, was passed in the Senate and now needs to be taken up in the Assembly by passage of A6177 sponsored by Assemblyman David Weprin, to create a necessary deterrent for criminals who prey on innocent motorists by staging car crashes."
"If there is not comprehensive reform, we are concerned that the present crisis will become progressively worse, leading to a system that is not only broken, but beyond repair," Melchionni said.
The New York Insurance Association (NYIA®) is a state trade association that has represented the property and casualty insurance industry for more than 125 years. For more information visit www.nyia.org.
SOURCE New York Insurance Association
GM's Volt, Nissan Leaf get top marks in IIHS crash tests
The Insurance Institute for Highway Safety (IIHS) crash tested the two first generation 2011 plug-ins for the first time and both earned top safety ratings, an endorsement of the automaker's view that you do not have to sacrifice safety for better fuel economy.
The Volt and Leaf earned the top rating of good for front, side, rear, and rollover crash protection. With standard electronic stability control, they qualify as winners of TOP SAFETY PICK, IIHS' award for state-of-the-art crash protection. GM's plug-in hybrid Chevy Volt and the Nissan's all-electric Leaf clearly save on fuel , but the size and weight of their battery packs add significant crash protection as well. The strong marks for front, side and rear crash protection also indicate automakers are using the same safety engineering in electric cars as they do in traditional gas-powered vehicles.
The Volt and Leaf are classified as small cars in terms of their overall length, width, and carrying capacity; however, their hefty battery packs put their curb weights closer to midsize and larger cars. "The Leaf and Volt's extra mass gives them a safety advantage over other small cars," said Joe Nolan, chief administrative officer for IIHS, on April 26. "What powers the wheels is different, but the level of safety for the Volt and Leaf is as high as any of our other top crash test performers," Nolan said.
The addition of the 2 electric cars brings to 80 the number of award winners so far for 2011, including 7 hybrid models. That lifts GMs’ current model tally to 12 and Nissan’s to 3.
GM and other manufacturers have lagged Toyota and other Asian manufacturers in developing fuel-saving gasoline/electric hybrids, which account for only a fraction of the U.S. sales market.
They hope their plug-in variants will better compete and catch on with those consumers demanding improved mileage performance in their daily commutes, especially with pump prices steadily rising and averaging $3.88 a gallon nationally. Gas in some areas already exceeds $4.
The Volt and the Leaf are classified as small cars but their battery packs raise their weight closer to mid-size and larger ones.
The Leaf weighs 3,370 pounds while the Volt is about 3,760 pounds. Most midsize cars are in the range of 3,200 pounds and the Chevy Impala, a large family car, 3,500 pounds. Heavier cars generally do a better job of protecting people in crashes but do less well on fuel savings.
The findings also contrasted with a lackluster Volt endorsement earlier this year from Consumer Reports on efficiency. David Champion, director of Consumer Reports auto test center told Reuters in February that the Volt was fun to drive but did not make sense financially to operate. He said consumers seeking value and top fuel efficiency would be better off buying a top-performing hybrid like Toyota's Prius or a Fusion by Ford Motor Corp. GM responded at the time that the review was hasty.
CA Senate Passes Airbag Fraud Bill Doubling Potential Penalties
California Senate Bill 869 was passed in committee (9-0) on April 25. The bill modifies the state's Business and Professions Code saying that a repairer who "fails to repair and fully restore the airbag to its original operating condition," where the customer has paid for the airbag as provided in the estimate, is guilty of a misdemeanor punishable by a fine of $5,000 or by one year in prison, or both. Existing law caps penalties at $1,000, by imprisonment not exceeding 6 months, or by both fine and imprisonment.
It is already fraudulent and a violation of the Automotive Repair Act to state on an invoice that an auto repair shop will repair or replace a part if it fails to do so. This bill strengthens the existing penalties on that violation specifically for airbags which are being replaced.
The Senate analysis of the measure suggests that possibly in the future some consideration should be given to strengthening the law even further. The analysis asks, "Should there be a requirement to repair or replace a deployed airbag?" Currently, there are no statutes requiring that an auto repair shop replace a deployed air bag, but the analysis suggests a law requiring that any vehicle entering an auto repair shop which has a deployed airbag must leave that repair shop in good working order.
A previous bill SB 427, tabled in 2009 would have established the same misdemeanor with the same penalties for a violation as this bill and would have additionally required the parts invoice for any replacement airbag installed to be attached to the final repair invoice. That bill was vetoed by the Governor, citing that it was duplicative of existing law and, therefore, added very little additional benefit to consumers.
The California Autobody Association (CAA) and the California New Car Dealers Association (CNCDA) opposed the 2009 measure citing the same administrative issues acknowledged by the Governor.
The CAA and the CNCDA support this new measure. The CNCDA states that it has had an interest in curbing the nefarious practice of parts switching and, therefore, support this bill since it narrowly targets the most egregious example of such conduct.
see previous story here
Your Local School's Auto Body Program Could Receive a $50K 'Makeover'
Applications Due August 31st
You can help your local secondary and/or post-secondary collision program receive a $50,000 Makeover through the Collision Repair Education Foundation's 2011 Ultimate Collision Education Makeover school grant. The application is available to download online and must be postmarked by August 31, 2011.
The winning school will be announced during SEMA 2011. Instructors are advised to begin the application early due to the required application information. Important Notes Regardless if your local school/college's auto body program wins the $50,000 Makeover grant, those schools that apply for the 2011 Makeover grant are the initial schools that the Foundation goes to when it receives in-kind product and monetary donations throughout the year.
In 2009, the non-winning Makeover grant applicant schools received close to $200,000 in product donation. Yes, the non-winners! Through the Makeover's application, the schools must list an itemized $50,000 wish list and through these lists, the Foundation can seek out industry supporters to donate these requested items for the schools.
Over 50 schools from across the country applied for the 2010 Makeover grant. The Ultimate Collision Education Makeover grant debuted in 2009 when Steel Center Area Vocational Technical School (Jefferson Hills, PA) was chosen as the recipient of the award. In addition to Steel Center AVTS receiving $80,000 from the award, the schools that applied for the 2009 grant still benefited from the Ultimate Collision Education Makeover program.
In total, the 35 schools each received an average of $5,000 in products, supplies, and equipment for a total value over $175,000. Every school that applied for the grant received at least one item to benefit their students and collision program.
In 2010, the award went to Bridgerland Applied Technology College (Logan, UT). The 2010 applicants have already had the opportunity to receive items from Airgas, Fibre-Glass Evercoat, Sherwin-Williams, UltraWiz, as well as Cintas technician shirts.
With the generous support from the industry, the Education Foundation is looking to at least double the total support from 2009 to 2010 for schools that applied for the grant. The Ultimate Collision Education Makeover school grant and other collision student and school support opportunities provided by the Collision Repair Education Foundation are made possible through industry donations. If you are interested in getting involved with the Foundation and joining its efforts to support the future of the collision industry, please contact Foundation Associate Director of Development, This e-mail address is being protected from spambots. You need JavaScript enabled to view it at 847.463.5244.
Sherwin-Williams Automotive Finishes A-Plus™ Network Adds New Estimating Contributor Program
Sherwin-Williams Automotive Finishes A-Plus™ Network is now affiliated with VehicleOwnersGuide.com, an online provider of powerful blueprint documents that helps collision repair shops identify any missed revenues. Its unique estimating analysis tool, EstimateScrubber.com, can be used in the repair planning process to prompt estimators to include commonly omitted items and better identify the repair cost associated with estimate line entries.
EstimateScrubber.com is compatible with most estimating systems used by the leading insurance companies and allows it to print a PDF file of an UltraMate®, Pathways® or Audatex® estimate. When this estimate printout is uploaded to EstimateScrubber.com the A-Plus Network member shop will receive a free, detailed P-Page analysis.
Painting with Waterborne at John Force Racing
by Paul Stoll, PPG Trainer
John Force Racing drivers have won the last five National Hot Rod Association (NHRA) events, dating back into late 2010. You don’t do that without some body damage to your Ford Mustang Fuel Funny Cars.
To view a PDF of this article please CLICK HERE.
John Force Racing has been using PPG’s Envirobase® High Performance waterborne basecoat on their cars for two years now. Envirobase® HP is very easy to use and repair, something that the paint team has the opportunity to do on more than one occasion—when things go bad on the racetrack. PPG waterborne basecoat dries to a thinner film than conventional solvent basecoats, helping the team keep the Ford Mustang bodies light. And PPG’s Envirobase® HP waterborne paint has helped John Force Racing go green.
I had the opportunity to go to the team’s Brownsburg, Indiana shop earlier this winter and spend four days helping paint the Ford Mustang bodies for 2011. I worked with Dean Antonelli, one of John Force’s crew chiefs and general manager of the Brownsburg facility. Paint shop manager and graphic designer Brandon Baker, painter Dave Gregory and Jesse Knox were all part of the team.
PPG’s MVP Spring Conference—Excellent, Entertaining and Informative
PPG hosted its invitation-only Spring 2011 MVP Conference in Palm Springs at the spectacular Rancho Las Palmas Resort March 27 through 29. The theme of the conference was ‘Journey to Excellence’ and excellence on many levels was provided for more than 350 fortunate PPG customers and special guests in attendance.
To view a PDF of this article please CLICK HERE.
Imagine a collision repair training event that combines a golfing retreat at a top-notch Southern California resort, high-end illusionists and magic tricks, nationally known motivational speakers, excellent and abundant food, and of course, serious and substantial shop management training. Add in a spectacular location, beautiful weather, and an intimate cocktail party—with live music—to introduce a continuous two-day trade show, and it’s hard to imagine a collision shop owner who wouldn’t want to be part of it.
Take note, industry, this is the way to hold a collision and refinish conference that leaves the attendees wondering what can possibily be done next year to top it. But it wasn’t just fun and games. In fact a good deal of the fun and games were designed with a serious purpose in mind, either to illustrate good and bad thought habits impacting business, or to invite introspection about running a collision business in an era of change and uncertainty. Clearly a lot of planning, refinement, and foresight went into designing the curriculum that drives the MVP Business Development Series from PPG.
Revisiting Paint by Numbers: A Deep Dive into Refinish Data
by Greg Horn, VP Mitchell
Recently, I published an article on refinish times broken down by vehicle type, age and origin in the Q1 Mitchell Industry Trends Report (ITR). I wanted to see if all vehicles received the same treatment in the refinish process regardless of these factors. “Paint by Numbers: A Deep Dive Into Refinish Data,” drilled down into the refinish data for a year’s worth of appraisals and compared these elements to determine if there were significant differences in the refinish process.
To view a PDF of this article please CLICK HERE.
At the outset, I want to state clearly that this article examines the data only and is not intended to be construed as advocating or refuting any OEM refinish procedure or recommendation. I firmly believe that every damaged vehicle is unique and the proper repair procedure must be done on an individual basis. This determination should include the vehicle’s design, age, condition, finish, location and extent of damage, automaker and paint company recommended procedures, and last but certainly not least, the customer’s expectations.
Our data immediately pointed out that there are in fact differences in the refinish process appearing on the appraisals. According to the data domestic made vehicles, including trucks/SUVs and older vehicles, received slightly fewer additional paint operations. Trucks and SUVs have slightly fewer hours added for blending into adjacent panels, averaging 1.35 hours of blend vs. 1.4 on average for passenger cars on estimates where a blend was specified. Surprising? That’s one way to put it.
Getting OSHA-Compliant on Plans, Protection and Painting
As I promised in last month’s article, I have put together a checklist to help you get ready for an OSHA inspection. This a not a complete checklist and you will probably need some outside help to help you achieve total compliance, but it will help you have a better understanding of what is needed to get your facility ready for an inspection.
To view a PDF of this article please CLICK HERE.
You can also call your state agency and they will come out a give you a courtesy inspection. All violations will need to be corrected, but there is no fine/ticket issued at the time of inspection. You should know that they will return to check if the violations have been corrected and you will be on their radar screen. I will need another article to complete this checklist, so stay tuned next month.
To see the OSHA standards, go to Google.com and type in 29CFR 1910. 38. This is the official OSHA web site.
First off, do you have 10 or more employees? If ‘yes,’ you will need a written Emergency Contingency Plan. I took this description from the OSHA Manual:
1910.38(b) Written and oral emergency plans. An emergency action plan must be in writing, kept in the workplace, and available to employees for review. However, employer with 10 or fewer employees may communicate the plan orally to employees.
California Shop Owner Endorses Shop Education and Training
Shawn Saidi, 48, owns Active Auto Body in Sunnyvale, Calif., a highly successful shop whose motto is “Making Friends by Accident.” It might be a catchy slogan, but Saidi has succeeded in the collision industry not by chance or by accident. He’s the current president of the California Autobody Association’s (CAA) Santa Clara chapter, and has enthusiastically embraced the leadership role, because he wants to make this industry better and help other shops in the process.
To view a PDF of this article please CLICK HERE.
Active Auto Body is located in a 13,300 square-foot facility. They fix 75–90 vehicles monthly and have two DRP relationships, from which the company derives approximately 25% off their total business. Saidi works alongside his wife Lisa, who handles payroll and human resources. The shop employs 13 people, including Saidi’s niece Desiree, who works part-time as a receptionist.
Saidi’s journey into collision repair began with his passion for restoring classic cars. “I was relying on body shops to do the body and the paint on these older cars, after I had done all of the mechanical work,” he told Autobody News.
“But, I was running into problems with the body shops, because they would tell me ‘three months’ and the car would still be sitting there a year or more later. Then when I got the cars back, the work wasn’t right, so I would basically lose interest in the vehicle and just eventually sell it. It was very frustrating because it kept happening over and over. I told my wife that if I ever go into business for myself, I’m going to get a body shop, and I’ll make sure we do the job right and meet all our deadlines. We’ll give it back to the customer better than what they were expecting.”
May 2011 Southwest Edition
May 2011 Southeast Edition
May 2011 Northeast Edition
A Day to Reflect—On the Other Side of the Bookstore Counter
Sometime ago I had my first book signing at a local book store. Steve’s Sundry—Books and Magazines. It’s a landmark bookstore in town. Everyone knows Steve’s place. It’s been in town for more than 60 years. It’s a great place for a large malt at the soda fountain, or to browse around the store to find a good book. I’m not a well known author; I’m a mechanic/technician who wrote a book. I really didn’t think there would be a crowd of potential buyers and admirers at the book signing; I’m not that naive to think I would be bringing in a flood of new customers to the book store.
To view a PDF of this article please CLICK HERE.
So, instead, I used the time to study the people that came in and out of the store. What a wonderful place, a book store. In the back of the store is an old counter with a bar and several bar stools. The counter, the soda fountains, and the bar stools are all original 50’s decor. With malt shakes and great sandwiches. You could take the whole day to browse for books while sipping on a shake or coffee. It’s a very pleasant place, nostalgic and modern at the same time.
One regular customer sitting at the end of the bar was sipping away on his coffee while texting messages on his Blackberry. On the other end there was an old couple who appeared to be in their 70’s reading the paper and browsing a book or two. I could see this Norman Rockwell painting of them pictured there for probably the last 40 years doing the same thing.
Rodi’s in Cherry Hill, NJ, Reminds the Customer of their Right to Choose
Walking into Rodi’s Auto Body in Cherry Hill, NJ on a Saturday morning, the first thing I noticed were customers praising the convenience of Rodi’s being open on Saturdays for estimates, unlike other shops in the area. The second thing that caught my eye was the prominent lettering on the rug spread across the floor: “The insurance company CANNOT tell you where to take your car for repairs.” Joseph Rodi, President of Rodi’s Auto Body, reinforces the message repeatedly that auto body work belongs to the auto body shop and the customer, not the insurance company.
To view a PDF of this article please CLICK HERE.
Joseph Rodi moved to the United States from Italy in 1956 when he was seventeen years old. He worked in a bakery fifteen hours a day, seven days a week, before returning to the trade he wanted to pursue, auto body repair. After working for local shops and taking trade classes at Woodrow Wilson High School in Camden during the night, Joseph Rodi was able to purchase a lot and open Rodi’s Auto Body in 1965. He received his Doctorate degree in Business Administration from Somerset University in 2006. As his website proudly states, “the pride he takes in his work has made the difference for thousands in his lifetime and has helped shape his success in achieving the American Dream.”
Insurers Will Continue to Serve “Flavor of the Day” to Shops
The Insider offers an unvarnished look at various issues impacting the collision industry from an insurers’ perspective.
In past columns I have explored many different perspectives on the value of direct repair programs. I believe most DRPs provide value to the vehicle owner as well as the shop, although based upon the responses I’ve received from readers, there are a lot of people who disagree with my position.
To view a PDF of this article please CLICK HERE.
But from my perspective, most vehicle owners reap tremendous value from DRPs. DRPs have raised the bar for body shops; it forces them to provide exemplary customer service and high quality repairs. They also need to continually train their staff and invest in equipment otherwise risk being left behind as technology evolves. As a result, insurance companies don’t want to do business with every shop in the countryand they shouldn’t. They should want the best-in-class repairing their policyholders’ vehicles.
But there is one reason why the current DRP models sucks, regardless of insurance carrier. This exception provides absolutely no value to the shopalthough it does provide a lot of value to the insurance company. Can you guess what the exception is? Okay, it’s actually not just one thing. It can be summarized in four words: flavor of the day.
Summertime Should Mean Event Time For Body Shops
Summer time is nearly here and shop owners who are interested in attracting insurance or other referral business may be considering putting on an event.
These can vary widely in terms of size and cost. I assisted one dealership owner in creating quite a large event to build business for his body shop. In addition to insurance DRP coordinators. Since he did a lot of work for commercial contractors and also local law enforcement, he invited many company owners and managers and also sheriff’s department personnel.
To view a PDF of this article please CLICK HERE.
He put up large umbrellas over picnic tables all along the driveway in front of his body shop work bays. Naturally food and drink vendors were located along there.
Each work bay was converted into a presentation space. By the prep and spray booths, his paint jobber set up demos of spray guns, a color-matching photospectrometer, and various paint supply items.
His 3-M distributor used a bay to demonstrate special materials for everything from windshield repair to simple repairs on plastic and fiberglass auto parts. Another bay housed a paintless dent removal specialist, and some attendees were provided with small dent removals from their vehicles. An ongoing demonstration of the estimating and management systems was provided in the body shop office. Tours of the entire dealership were given every fifteen minutes.
The cost of the event was in excess of $10,000. Was it worth it? One small insurance company representative agreed to add the shop to their DRP list. The dealership got a few orders for new pick-up trucks, but very few new commercial company people came to the event and I didn’t hear of any new commercial contracts. Was the event a wise investment?
Is Your Parts Supplier Purchasing Policy a Benefit or an Expense?
This month let’s take a look at parts ordering considerations that will improve your bottom line. Think for a moment of all your part suppliers both OEM and aftermarket. Do you know what the return parts policy is from each supplier? You should if you want to maximize your business profits.
To view a PDF of this article please CLICK HERE.
What is their return policy on parts that do not fit? Will they reimburse you for full labor or just the part cost and leave you with a “catch you on the next one” policy?
Not too long ago, it was no “big deal” to return parts for credit months later. Some of us may even remember credits issued with certain part suppliers for returns where we did not even produce evidence in the form of an invoice. Well, times have changed considerably when ordering auto body parts. Today we have the option of ordering parts by the traditional voice phone communication or a variety of electronic options which include fax, text, digital and e-mail.
32-year-old N.J. Body Shop Embraces PPG’s Envirobase® HP Waterborne Basecoat
The conversion to waterborne paint in states like New Jersey is a reality for body shops throughout the Northeast, because by 2012 regulations will likely mandate the use of the new paint. While some collision businesses are not enamored with the idea of changing the way they’ve been painting cars for decades, many are happy to say ‘goodbye’ to solvent and ‘hello’ to waterborne. Proactive shops that see the value in making the changeover before they’re forced to do so by law are jumping on the waterborne bandwagon right now.
To view a PDF of this article please CLICK HERE.
One of these proactive shops is Andrews Auto Body in Brick, New Jersey; a shop that has embraced PPG Envirobase® High Performance waterborne paint in a big way.
If you live in or around Brick, you know the name Andrews. This second-generation body shop has been around since 1979, when Rich Andrews, Sr. started his small body shop and built a substantial customer base, many, many years before waterborne paint was even something to consider.
But growth dictates new procedures. In August of 2009, Rich, Sr., and his whole family moved to a new, 6,000 square-foot facility. I say they all “moved” there because the entire family works for the business. Mom (Linda) is the front office manager, her oldest son Keith, 36, is the shop’s manager; Rich Jr., 31, is the shop’s lead painter and their sister, Jennifer, is the shop’s assistant office manager. And dad is still there, watching his sons as they take their shop to a new level—which includes waterborne.
Indiana Shop Owner Favors Chief for Quality, Durability & Support
Jimmy Lefler owns and operates five extremely busy body, mechanical, and glass shops based in Evansville, Indiana, that are repairing more than 200 cars per week, juggling eight DRPs, employing 80 people and doing approximately $9 million in annual sales. So, when it comes to purchasing equipment to run his shops, CEO Lefler expects that his machines will perform day-after-day without breaking down or requiring extensive maintenance. That’s why he’s been buying his racks, computerized measuring systems and lifts from Chief Automotive Technologies, a leading manufacturer of pulling, measuring, anchoring and vehicle specification products.
To view a PDF of this article please CLICK HERE.
Lefler is a third-generation body shop owner whose grandfather, Leroy, founded Leroy’s Paint & Fender Repair as a dirt floor garage in 1952. Times have changed. For almost 60 years, Lefler has been a household name for fixing cars in the tri-state area on the borders of Indiana, Kentucky and Illinois. Leflers has been winning national awards for the family’s contributions to the collision industry, while expanding and succeeding in a very competitive market with more than 60 body shop/collision centers listed in the southern Indiana region.
Jimmy started working in the family’s business in 1986 in the parts department. “I did it all in the beginning—fixed cars, washed vehicles, worked as an estimator and cleaned floors—anything and everything to learn the business. In 1996, I bought out my father and starting running the operation,” he said.
CRA meets with Commissioner, proposes regulatory language to define 'workman like manner of repair'
The Collision Repair Association of California met in late February with the Commissioner of the California Department of Insurance, David Jones and Teresa Campbell, Senior Staff Counsel, and Deputy Commissioner, Geoffrey Margolis.
It was the association's intent not just to discuss issues but to offer solutions. To that end the association asked the Commissioner to consider the following:
There exists a double standard in the preparation of estimates. The repair facility must follow OEM service specifications in repair of vehicles, while insurers have no requirement. This leads to insurers under writing estimates and consumer confusion. Insurers should be required to estimate a repair to same standard as California's collision repair facilities. Section 2695.8 of the C.C.R. states that estimates prepared by or for insurers must allow for repairs to be made in a 'workman like manner.' We proposed that the term 'workman like manner' be defined and 2695.8 C.C.R. be amended as follows:
2695.8. Additional Standards Applicable to Automobile Insurance
(f) If partial losses are settled on the basis of a written estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of the estimate upon which the settlement is based. The estimate prepared by or for the insurer shall be of an amount which will allow for repairs to be made in a workman like manner. 'Workman like' for the purposes of this section shall be defined as being done in accordance with the vehicle manufacturers specifications and procedures, or, if manufacture specifications and procedures are not available, to the industry, nationally distributed and periodically updated service specifications. If the claimant subsequently contends, based upon a written estimate which he or she obtains, that the necessary repairs will exceed the written estimate prepared by or for the insurer the insurer shall:
(g) No insurer shall willfully depart from or disregard accepted trade standards for workman like repair in the preparation of claim settlement offers or estimates prepared for or by the insurer.
California Senate Bill 631 Would Give Insurance Commissioner More Penalty Powers
In February this year, California Senator Noreen Evans introduced legislation expanding the Insurance Commissioner’s restitution authority which at present is only allowed in limited circumstances. Simply put, SB 631 would grant explicit authority to the state Insurance Commissioner to order restitution as part of an administrative enforcement action against an insurance company. The new powers could be used to punish broker-agents and other licensees in all instances where the Commissioner finds any violation of the California Insurance Code.
The expanded authority would protect consumers from what Senator Evans described as the “David and Goliath” dynamics that can occur when a consumer seeks repayment of monetary losses or out-of-pocket costs associated with wrongful insurance company conduct.
SB 631 would allow the Commissioner to “impose upon an insurer, licensee, or other entity or person subject to the commissioner’s authority specified remedies, either by way of settlement or following a hearing, whenever the commissioner finds that there has been a violation of an applicable insurance provision.”
CAA Holds Quarterly Delegates Meeting in Sacramento, Swears in New Board, Award Winners
The California Autobody Association (CAA) held its Quarterly Delegates meeting in Sacramento on March 11 and 12.
To view a PDF of this article please CLICK HERE.
David McClune, Executive Director for the CAA, swore in the new 2011 State Board of Directors which include Gigi Walker, Past President, Dave Picton, First Vice-President, Ben Mendoza, Vice President, Chuck Reyes, 2011 President, Mike Passof, Treasurer, Don Feeley, Secretary.
Linda Holcomb, President of the CAA Glendale-Foothills chapter, was awarded with the organization’s President of the Year, 2010 Award at the groups State Board meeting in Sacramento March 12.
“I have concentrated on bringing back old members who had let their dues expire, and also new members that were not familiar with the CAA. With my knowledge and contacts in the Automotive Industry I have had the opportunity to bring in some excellent guest speakers. The attendance at our meetings are up,” said Holcomb, “It was such an honor to receive the President’s of the Year Award from the CAA.”
In addition, Gene Lopez with I-CAR received the CAA’s annual Darrell Malott Memorial Award for Member of the Year for 2010 and 1-800-Radiator received the CAA Associate Member of the Year award for 2010.
“I was honored to receive the 2010 Darrell Malott annual Award,” said Lopez, “I remember when the first one was given out in 1999.”
The Darrell Malott Award is given each year to the CAA member who contributes most to the organization.
For more information please visit www.calautobody.com.
The Curious Case of Hibbs vs Allstate— Does An Insurer Have the Right to Repair?
Let’s say your car is damaged in an accident and you’re properly insured. Most policies say that an insurer can either pay for the repair or fix the vehicle. You feel that the vehicle is too badly damaged and you want the money so you expect your insurer to total the vehicle and give you a check. But instead, the insurer says it will pay a shop to fix the vehicle. No other compensation is offered or given. In fact the vehicle is ultimately fixed against your will even though you refuse to explicitly authorize it or pick it up. It’s eventually sold at auction—to the body shop owner holding the deductible lien on the repair.
The California Court of Appeal, ruling in this situation (Hibbs vs Allstate), explained that there’s an 1867 case from New York pertaining to a building, in which the insurer opted to repair it but the insured refused to allow the repairs to his building. The appellate court held that the insured could not recover the cost of repairs. It reasoned that when the insurer opted to repair, its insurance policy was converted to a binding contract. So, according to this case, the insurer can do whatever it wants.
However, the court also noted that “modern cases,” including cases in the last century from Missouri (1957) and Colorado (1940), hold that the insured has a right to get the money if she prefers, notwithstanding the policy language. In the Missouri case, the insurer exercised its option to repair a damaged vehicle. The insured refused to allow the repairs. Instead, she demanded payment of the cost. The court recognized that a rule relieving the insurer of liability where the insured refuses to allow repairs might be supported by "cold logic." But, the court stated (in 1957) that such a rule "would neither comport with our conception of substantial justice nor be consonant with the primary purpose of all insurance coverage, i.e., indemnification against loss."
Similarly, in the Colorado case, the court wrote "[t]hat plaintiff should be penalized by a refusal to grant him any reparation under the policy, for which he paid a premium, would not meet with our conception of justice."
The appeals court in California continued: "In most cases an insurer should have no objection to paying its insured the cost of repair. But nothing in Allstate's policy gives the insured such a right."
Collision Repairers in Texas Mourn the Loss of Bob English—Founder, English Color
The collision industry lost one of its leading members at the end of March; James Robert “Bob” English, Jr., founder of English Color in the southern US.
To view a PDF of this article please CLICK HERE.
Bob was raised in Dallas, and took great pride in having graduated from Texas A&M University, Class of ‘46, with a Business degree. Bob was known by his friends for his love of a good Aggie joke, so much so that he was given the nickname “Aggie Bob”, which was how he was identified for decades.
“Bob was just a core Aggie,” said Michael McCabe with English Color, “Our corporate office in Richardson flies the American flag and the Texas A&M flag right below it.”
Bob was an accomplished businessman who founded English Color & Supply, Inc. in 1946. The company has evolved from selling automotive batteries out of a panel truck to becoming one of the largest distributors of automotive paint and supplies with 41 locations in 6 states and representing products from over 100 suppliers. Even after Bob’s retirement, he continued to have an active role in an advisory capacity and strived to maintain a personal relationship with his dedicated employees.
St. Philip’s College in San Antonio Rallies Around Skills-USA-Winning Classmate
Students in St. Philip’s College’s Collision Technology Department have created a Student Organization with officers rallying around one of their classmates, Raymond Tolosa, who placed first at the Texas Skills USA competition in Vehicle Refinishing.
The organization also recognizes the achievements of Jose Palomo, who is also a St. Philips auto collision student and finished second in the competition.
The students are starting a fundraiser for travel expenses for Tolosa to travel to the Skills USA Nationals in Kansas City in June.
The students are also creating a letter announcing the formation of the Student Organization and its purpose including the benefit to the industry and students relating to Skills USA accomplishments.
St. Philip’s College Auto Collision Repair Program is a 2 year state accredited program that offers students three options in their auto collision industry education and career path, including a 2 year Associates in Applied Science degree, a Collision Repair Certificate and a Refinishing Certificate.
NWLCRA Hosts Supply Company to Talk About New Products
The Northwest Louisiana Collision Repair Association (NWLCRA) held their monthly meeting on April 5 in the Magnolia Room at the Louisiana Technical College in Shreveport, Louisiana.
The meeting was hosted by President, Chris Fielder and Secretary-Treasurer, Bill Burnside.
The I-CAR schedule was discussed and the “test out” procedure that is now in place. Students have to register at least 2 weeks prior to the testing.
If the deadline is missed, you won’t be able to test. The test will be given between 5 to 7 PM and the doors will be locked at 5:00 PM.
For more information, contact Bill Burnside or see the I-CAR website.
Houston Auto Body Association, SCRS Association of the Year, Gathers at State Capitol in Austin to Support Senate Bill 1300
The Houston Auto Body Association asked that members of the collision repair industry in Texas contact their Senators in support of SB 1300, which was up for committee hearing on April 12.
To view the full text of this bill please CLICK HERE.
The Texas Senate Business and Commerce committee voted unanimously to pass SB 1300 on that date, which will require more disclosure from insurers about their Direct repair Program policies and requirements.
James Brown, HABA’s President, and many others with the HABA met in Austin April 12 at 7am to show support for this bill.
The Texas Department of Insurance is in full support of this bill as well, according to Brown.
The Committee Substitute version of the bill was passed out of committee, it now heads to the Local & Consent calendar and then it will go to the House Insurance Committee.
“I would also like to extend a special thanks to all those who made phone calls and those who came to Austin in show of support for this Bill. I especially want to thank Larry Cernosek personally for the all the time he spends in Austin on behalf of the HABA and the Collision Industry as a whole,” said Brown. To view the full text of this bill search ‘SB 1300’ at www.autobodynews.com.
Florida Autobody Collision Alliance (FACA) Hosts 1st Annual First-Responder Extrication Training
The Mid-State Chapter of the Florida Autobody Collision Alliance (FACA) provided hands-on training to Central Florida area First-Responders including Fire Department personnel from the areas of Lakeland, Auburndale and Winter Haven on April 13.
To view a PDF of this article please CLICK HERE.
I-Car certified instructor; Steve Laszlo, was on hand to assist in the training and provided information on current vehicle construction technology and related materials.
Training forcused on avoiding areas on newer vehicles where airbags or electrical components could pose a potential risk. Newer hybrid and all-electric vehicles can be dangerous for emergency personnel unfamiliar with the cars mechanics.
Activities took place at 6:30 pm at All Pro Used Auto Parts, 1425 Old Dixie Highway Auburndale, FL 33823-9505.
GCIA Meeting Hosts OSHA Safety and Environmental Compliance Management Presentation
The Georgia Collision Industry Association (GCIA) held their first monthly meeting of the spring on April 14th at 6:30 PM at the Crowne Plaza Atlanta Perimeter.
The group had Chuck Elliott, District Manager with KPA as their guest presenter. Elliott explained the differences between the recent inspections completed by the Environmental Protection Agency (EPA) related to your waste streams within a body shop versus the typical OSHA inspections which are generally about employee safety and compliance.
The night began with a discussion on OSHA and the expectations the organization has when it comes to safety in a collision repair shop. The requirements for shipping hazardous materials with the Department of Transportation was also discussed.
SCRS Industry Achievement Awards: Winners Include NY’s Ed Kizenberger and Greg Coccaro
On March 16, 2011 the Society of Collision Repair Specialists (SCRS) held its Annual Awards Banquet at the Crowne Plaza Meadowlands in Secaucus, New Jersey. As always, the highlight of the event was the presentation of the SCRS Industry Awards, through which the Society recognizes those that demonstrate outstanding service and achievement within the collision repair industry.
“Two Hawaiian words characterize these awards and their recipients,” explained Dale Matsumoto, chairman of the SCRS Awards Committee. “The first, ‘aloha,’ is familiar to us as a greeting and farewell; but it also can be used to mean the giving of one’s self-a lifestyle encompassing a life of giving, sharing, caring and love.”
“The second, ‘kina’ole,” means flawless-as in doing the right thing for the right reason with the right feeling. Most individuals can, and will, do the rights things; but it is the deep feelings in our heart that makes us to things, for the right reason. This year’s winners embody the meaning of both these words.”
Below is a summary of this year’s awards, their recipients, and the achievement being recognized.
New Jersey Green Automotive Repair Program Works with AASP/NJ at Northeast Trade Show
The New Jersey Green Automotive Repair Program (NJGARP) announced in September that the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) joined them as a new organizational partner.
The NJGARP program, launched in April 2009, encourages the State’s automotive repair facilities—including dealerships, independent shops and, soon, auto body shops-—to implement environmentally-friendly business practices and become certified as “green” businesses.
“AASP/NJ is very proud to join with the other organizations in NJGARP as a partner in promoting environmentally-sound business practices within the body repair industry,” said Charles Bryant, Executive Director of the AASP/NJ. “The group has done tremendous work in its first year and I know that our members will be committed to helping promote processes that are good for the environment, good for consumers and good for business.”
‘2011 East Coast Resolution Forum’ Meets in NJ to Discuss Ongoing Efforts and Ideas
Collision repair associations leaders from around the country met in Secaucus, New Jersey, in March to share ideas and discuss state legislative or regulatory successes and efforts. The “2011 East Coast Resolution Forum,” an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASP-New Jersey’s NORTHEAST® 2011 trade show.
Here’s a round-up of some of the news and discussion from the meeting:
Efforts to regulate mobile repairers
Charles Bryant AASP-New Jersey said his group has been working for some time to get the New Jersey Motor Vehicle Commission to regulate repair businesses that are performing work on a mobile basis in violation, AASP-New Jersey contends, with the state’s shop licensing law. That law requires that repairs be made inside a building zoned for autobody repairs and that all paint work be done inside a booth or a room with a filtration system.
Mobile repair work, such as that done on a dealership lot, Bryant said, clearly falls outside these parameters. The Commission, however, had proposed bringing mobile repairers in under the shop licensing program. AASP-New Jersey opposed this action, showing the Commission published ads by mobile repairers indicating they were doing far more than minor cosmetic repairs and paint work.
New Pro-Spray® 3.5 VOC Solvent Basecoat System is an Economical Choice for VOC Compliance
Pro-Spray® Automotive Finishes, a division of Alco Industries, has introduced an economical, quality alternative for meeting low basecoat/clearcoat VOC requirements – the new Pro-Spray® 3.5 VOC Solvent Basecoat System.
“This system is a viable option to waterborne basecoat in VOC-compliant markets, and is an affordable choice for walk-in and non-waterborne collision repair shops,” said Tom Gardner, director – business development. “It utilizes existing Pro-Spray products, so it doesn’t require a major investment.”
For example, the system uses Pro-Spray solvent toners and new low-VOC binders, activators and thinners. The compliant basecoats can be used over Pro-Spray 2.1 VOC sealers and 2.1 VOC primers, and topcoated with any Pro-Spray 2.1 VOC clearcoats, to meet the strictest air quality mandates.
State Farm Parts-Ordering Video
State Farm says in the coming months it will develop a new electronic parts ordering system for its Select Service shops. The new parts ordering plan was rolled out to the DRP shops through an online video. In the video, claims consultant Gregg McDonald outlines State Farm's plans, stating that the company will work with repairers, parts suppliers and technology vendors to develop a new electronic ordering solution.
To view the video please CLICK HERE.
McDonald said the insurer will work with all segments of the industry to develop a system to "reduce the amount of time and effort needed to search for, source and order all part types," and "to give suppliers a better view of the process, and access to complete parts orders." McDonald also said that the system will include a review tool to allow shops and vendors to provide feedback on the parts ordering experience, saying "Supplier choice and decisions regarding which parts are best suited for the individual repair will remain in your hands."
Glendale/Foothill California Autobody Association Upcoming Meeting
The Glendale/Foothill chapter of the CAA will hold their monthly meeting on April 21 from 6 to 9 pm. The dinner meeting will be held at the Brookside Country Club in Pasadena.
The meetings featured speaker is Cory J. King, a partner in the legal office of Fine, Boggs & Perkins in San Diego. King's employment law practice focuses on the preventative side of employment claims as well as litigation relating to employment issues.
King will speak about wage laws and updates, employee rights on overtime and meal time hours, preparing auto repair shops for the employee free choice act, sexual harassment and the slip and fall employee handbook.
Please R.S.V.P. to Cindy Shilito at 714-944-4028 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it or to Linda Holcomb at 310-422-1773.
This meeting is being sponsored by Brian Ekstrand from ALLDATA.
For more information please visit www.calautobody.com.
HABA to Host 1st Annual Shop Owners and Managers Appreciation Event
The Houston Autobody Association (HABA) will host their first annual body shop owners and managers appreciation event on May 19 from 7 pm to 9 pm at the Cadillac Bar in Houston.
The organization will host this event in lieu of their monthly meeting for May.
The event is open to members and non-members alike. Please visit www.habaonline.org and fill out the RSVP information and fax it in so the group can get a head count of those attending.
The hope is for local body shop employees to meet the members of the association and see what they are all about. HABA hopes to interest the local industry in joining their association and becoming part of a great organization that has and will continue in the advancement of the collision repair industry.
Please visit www.habaonline.org for more information.
Download the invitation HERE.
TIAA Alamo Chapter Meeting - Thursday, April 21st
The Alamo Chapter will be holding a meeting this coming Thursday, April 21st! Jayme Mathis of the BankCard Group will be talking about the different aspects of credit card processing and possibly give us some advice on reading our statements. The BankCard Group is our TIAA endorsed merchant processor. Jayme and his group have been a great part of the TIAA program and this presentation should be very informative.
San Antonio, TX 78209-1115
(210) 824-0116
Gunder’s Loses Appeal to State Farm—Court Rules ‘Even if False,’ Claims are Priviledged
On April 7th, 2011 the United States Court of Appeals for the Eleventh Circuit upheld a lower court’s order granting summary judgment in favor of State Farm Insurance in Gunder’s Auto Center’s claim against the nation’s largest personal auto insurer for slander and tortious interference with a business relationship. (See Autobodynews.com for background.)
To recover for slander in Florida, the claimant must show (1) publication of a false statement; (2) about the plaintiff; (3) to a third party; and (4) damage resulting to plaintiff from the publication.
To state a claim for tortious interference in Florida, the claimant must show (1) the existence of a business relationship; (2) knowledge of the relationship on the part of the defendant; (3) an intentional and unjustified interference by the defendant; and (4) damage from the breach of the relationship.
The court found that, “although denied by State Farm, we assume the statements allegedly made by State Farm disparaging Gunter’s were made and are untrue. Nonetheless, we agree with the district court that State Farm’s statements were privileged:
HABA Encourages Members to Contact State Senators About SB 1300
The Houston Auto Body Association is asking that members of the collision repair industry in Texas contact their Senators in support of SB 1300, which is up for committee hearing on April 12. SB 1300 will require more disclosure from insurers about their Direct repair Program policies and requirements. Please call and email the State Senators who will decide whether or not SB 1300 will go to the next phase in becoming Law as soon as possible. By making 8 phone calls you will make a difference when the Committee meets tomorrow.
To view the most recent version of SB 1300 please CLICK HERE.
James Brown and many others will be in Austin Tuesday April 12 at 7am to show support for this bill. Give James a call 832-515-9609 if you plan on being there. The latest version of the bill can be seen below. The Texas Department of Insurance is in full support of this bill as well.
Summer Time Means Event Time
Summer time is nearly here and shop owners who are interested in attracting insurance or other referral business may be considering putting on an event. These can vary widely in terms of size and cost. I assisted one dealership owner in creating quite a large event to build business for his body shop. In addition to insurance DRP coordinators, since he did a lot of work for commercial contractors and also local law enforcement, he invited many company owners and managers and also sheriff's department personnel. He put up large umbrellas over picnic tables all along the driveway in front of his body shop work bays. Naturally food and drink vendors were located along there.
Each work bay was converted into a presentation space. By the prep and spray booths, the paint jobber he used set up demos of spray guns, a color-matching photospectrometer, and various paint supply items. The 3-M distributor used a bay to demonstrate special materials for everything from windshield repair to simple repairs on plastic and fiberglass auto parts. Another bay housed a paintless dent removal specialist, and some attendees were provided with small dent removals from their vehicles. An ongoing demonstration of the estimating and management systems was provided in the body shop office. Tours of the entire dealership were given every fifteen minutes.
CAA Chapter President Supports In-Shop Education & Training
Shawn Saidi, 48, owns Active Auto Body in Sunnyvale, Calif., a highly successful shop whose motto is “Making Friends by Accident.” It might be a catchy slogan, but Saidi has succeeded in the collision industry not by chance or by accident. He’s the current president of the California Autobody Association’s (CAA) Santa Clara chapter, and has enthusiastically embraced the leadership role, because he wants to make this industry better and help other shops in the process.
Active Auto Body is located in a 13,300 square-foot facility. They fix 75–90 vehicles monthly and have two DRP relationships, from which the company derives approximately 25% off their total business. Saidi works alongside his wife Lisa, who handles payroll and human resources. The shop employs 13 people, including Saidi’s niece Desiree, who works part-time as a receptionist.
Saidi’s journey into collision repair began with his passion for restoring classic cars. “I was relying on body shops to do the body and the paint on these older cars, after I had done all of the mechanical work,” he told Autobody News.
Houston Auto Body Association Named SCRS Association of the Year
On March 16, 2011 the Society of Collision Repair Specialists (SCRS) held its Annual Awards Banquet at the Crowne Plaza Meadowlands in Secaucus, New Jersey. As always, the highlight of the event was the presentation of the SCRS Industry Awards, through which the Society recognizes those that demonstrate outstanding service and achievement within the collision repair industry.
The Houston Autobody Association (HABA) was honored with the Affiliate Association Award.
The Affiliate Association Award recognizes an SCRS affiliate that exhibits exemplary actions on behalf of the collision repair professional.
AASP NJ to Hold 7th Annual Golf Outing
The Association of Automotive Service Providers of New Jersey will host their 7th annual AASP-NJ Lou Scoras Memorial Golf Outing on May 23 at the Colonia Country Club.
Lunch will be served at 11:30 and tee-off time will start at 1:00.
The event is dedicated to Lou Scoras of Holmdel Auto Body and part of the proceeds from the outing will go to create a collision industry scholarship fund.
The association is still looking for sponsors for this event, please visit www.aaspnj.org for more information.
CAWA-Backed Proclamation Signed By Arizona Governor
The California/Nevada/Arizona Automotive Wholesaler's Association (CAWA) sponsored gubernatorial proclamation that recognized the contributions of the aftermarket industry provides to consumers was passed and signed by Arizona Governor Janice Brewer last month.
State Farm Announces Revised Electronic Parts Ordering for its DRPs
State Farm Insurance has already experimented with electronic parts ordering in a few states and has language in its select service agreements (with DRP shops) enabling requiring the computerized parts orders. Now the company says it wants to "reduce the amount of time and effort needed to search for, source and order all part types," and "to give suppliers a better view of the process, and access to complete parts orders." In a video Click here the Insurer's Gregg McDonald describes a new review tool to allow shops and vendors to provide feedback on the parts ordering experience. "Supplier choice and decisions regarding which parts are best suited for the individual repair will remain in your hands," McDonald tells Select Service shops in the video.
SCRS and Affiliates Issue Letter to EPA Regional Offices
In a letter released on Monday, April 4th, 2011, the Society of Collision Repair Specialists (SCRS) and 26 of its Affiliate Associations requested more stringent interpretation from the ten EPA regional offices across America in regard to exemptions listed in the EPA rule Subpart HHHHHH- National Emissions Standards for Hazardous Air Pollutants: Paint Stripping and Miscellaneous Surface Coating Operations at Area Sources (Rule 6H.)
To view a copy of the letter please CLICK HERE.
The letter has been issued just weeks after EPA Region 2 representatives discussed the 6H Rule with the industry at a Collision Industry Conference (CIC) meeting held in Secaucus, New Jersey in March; and provides talking points detailing issues seen in markets across the country stemming specifically from the growing use of 3 oz. paint cups to potentially exempt affected businesses. “Unfortunately, the application of the rule has created a practice where some businesses are claiming to be exempt, by filling 3 oz. cups multiple times while doing traditional collision repair operations, in an attempt to continue to perform the work in an uncontained or mobile environment,” the letter states. “It is our position that an exemption which invalidates pollution controls based solely on the size of tool being used rather than the amount of pollution being generated is ineffective and harmful policy; because the rule is silent on refilling of the 3 oz cups, there exists a continued potential to circumvent the rule.”
Florida Autobody Collision Alliance (FACA) to Host 1st Annual First-Responder Extrication Training
The Mid-State Chapter of the Florida Autobody Collision Alliance (FACA) will be providing hands-on training to Central Florida area First-Responders including Fire Department personnel from the areas of Lakeland, Auburndale and Winter Haven.
I-Car certified instructor, Mr. Steve Laszlo, will be on hand to assist in the training and to provide information on current vehicle construction technology and related materials.
Activities will take place on April 13th at 6:30 P.M. at All Pro Used Auto Parts, 1425 Old Dixie Highway Auburndale, FL 33823-9505. All Pro Used Auto Parts is providing the example vehicles for the training. Food and beverage served to participants will be provided by Gunder’s Auto Center and Subs and Such of Lakeland.
For information on how you may participate or provide assistance please contact FACA Mid-State Chapter President, Cherri Surrency at (863) 687-8000 ext 1180.
The Florida Autobody Collision Alliance is a State-wide association of collision repairers and is committed to the future of the collision repair industry. FACA’s mission is to provide the leadership needed to raise the professional image of the industry and to develop new industry leaders. FACA’s goal is to educate, inform and represent the collision repair professional in all aspects of the industry. For more information on FACA please visit: www.FACAFL.com or contact Cathy Mills at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
or (904) 994-6516.
Six New “Moparized” Jeep® Vehicles Ready for 45th Annual Moab Easter Jeep Safari
Each year, thousands of diehard off-road enthusiasts descend upon Moab, Utah, for the Easter Jeep Safari and a week of fun on some of the country’s best and most rugged trails. Jeep® and Mopar are marking the occasion by returning to the annual event – which takes place April 16-24 – with six new customized vehicles.
“The annual Moab Easter Jeep Safari provides us a perfect opportunity to interact with our most loyal fans in a true Jeep setting,” said Mike Manley, President and CEO – Jeep Brand, Chrysler Group LLC. “We are able to demonstrate and test new potential Jeep production and customization ideas at our away-from-home proving ground, while getting instant feedback from our customers.”
More than 30 percent of the people who are in the market for a new vehicle are influenced by the breadth and availability of aftermarket accessories and Mopar comes to the party with a vast selection of accessories that will fit a variety of lifestyles.
“From full engine packages to slush mats, Mopar has everything for the avid off-roader,” said Pietro Gorlier, President and Chief Executive Officer – Mopar, Chrysler Group’s service, parts and customer-care brand. “In fact, Mopar covers the spectrum with more than 280,000 proven quality-tested parts and accessories that allow customers to personalize their Chrysler, Jeep, Dodge, Ram and Fiat vehicles.” Over the past decade, a dedicated group of engineers, designers and fabricators from Mopar and Jeep have customized more than two dozen vehicles and a host of off-road parts and accessories, and showcased them to the enthusiast crowds in Moab.
AkzoNobel Schedules U.S. Launch of Wanda Waterbase Basecoat System
With a successful launch into the Canadian collision repair market segment in February, AkzoNobel’s highly anticipated Wanda Waterbase basecoat system will be available to the U.S. collision repair industry in early second quarter, 2011.
Built on Wanda’s core proposition of simplicity, color and value, the new Wanda Waterbase basecoat system provides an easy-to-use, low VOC option that helps make the process of “going green” easier than ever―and at an affordable price point. Offering simplified mixing ratios, segment-leading color documentation, and “right-the-first-time” color matching capabilities, Wanda Waterbase is ideal for use on small repairs, or total re-sprays.
“We’re very excited about what this system brings to U.S. collision repair professionals because it delivers the same great simplicity, color accuracy and value that our Wanda products are known for,” said Mark Rapson, AkzoNobel’s Business Manager of Trade Brands, North America. “This means body shops can be confident in achieving compliance, without compromising the performance they depend on. And with fewer components to worry about, they’ll also save on inventory costs.”
TIAA: Annual Port Aransas Fishing Tourney May 20
Fish are jumping, biting and ready to be hooked during the annual Texas Independent Automotive Association Scholarship Fishing Tournament at Port Aransas May 20, 2011, which is open to the public.
According to Louie Sirianni, TIAA state president, the annual fishing tourney on the coast is great fun and supports a great cause.
The entry fee for the tournament is $200 per person and food tickets are $20 each.
Harms said those who fish have a super time and usually return to the dock with plenty of fish to take home and fry. He said there are cleaning services available at the nearby marina.
SCRS Membership Program with Education Foundation Generates Huge Success in First Quarter of 2011
In November of 2010, the Society of Collision Repair Specialists (SCRS) announced that the organization would sponsor the cost of membership for educational facilities with collision repair vocational or technical programs as part of a partnership with the Collision Repair Education Foundation. The memberships serve to enhance SCRS' ongoing effort to support industry education and provide added value to the importance that the Education Foundation serves in the industry. To qualify for the sponsored membership, the educational institution simply was required to complete the Collision Repair Education Foundation's online School Solutions Survey.
At the close of the first quarter of 2011, SCRS has currently presented over $21,000 worth of memberships to over 70 participating schools. "It is exciting to be able to offer this support to the educational segment of our industry," shared SCRS Education Committee Chair Paul Val. "Education plays such a pivotal role in today's repair process, and making sure these incoming members of our trade are connected to their association, and that the educators are being kept up to date with the information generated by the association, is a tremendous asset to the repair facilities we serve."
Matrix System® Announces Sponsorship with Inception Motorsports
Matrix System Automotive Finishes is excited to announce that it is one of the associate sponsors for Inception Motorsports and David Stremme, driver of the No. 30 Inception Chevrolet during the 2011 NASCAR Sprint Cup Series (NSCS).
The NASCAR Sprint Cup Series is considered one of the highest levels of motorsports competition in the world and the race cars require coatings that can stand up to the demands of performance, production and durability. From direct to metal light-weight chassis paint to the rich color and deep gloss of Matrix System’s premium base coat clear coat, the opportunity at Inception will provide the team with a good platform to showcase the high performance line of Matrix System Automotive Finishes.
Commenting on the agreement, David Stremme said, “First, I want to thank everyone at Matrix System for believing in our program. Inception is all about building relationships and proving our marketing value to our corporate partners. I look forward to promoting their products and getting a chance to meet some Matrix customers and employees at the racetrack and of course, showing off our cool paint job.”
April 2011 Newsletter
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AAA Urges Passage of Texting Ban, Graduated Licensing Program in Pennsylvania
Citing statistics that show highway fatalities increased in Pennsylvania last year, AAA Mid-Atlantic has urged area lawmakers to support proposals that would strengthen teen driver and seatbelt laws and ban texting, according to reports made by Pennsylvania's Montgomery News.
“There is legislation in Harrisburg that we’ve been urging legislators to support,” Rick Remington, AAA’s Philadelphia manager of public and government affairs, said.
Specifically, AAA Mid-Atlantic urged Southeast Pennsylvania legislators to support House Bill 9, introduced earlier this year by state Rep. Kathy Watson, R-144.
The bill would expand training requirements before a teenager could take a test for his or her license, increasing behind-the-wheel training from the current 50 hours to 65 hours. Ten of those hours would have to be at night and five of those would have to be during inclement weather, according to Watson’s proposal.
House Bill 9 also would limit the number of teen passengers to one in a vehicle operated by the holder of a junior driver’s license, those ages 16-1/2 to 18, with exceptions for family members.
PPG Announces Miller Auto Parts & Supply Company as 2010 Platinum Distributor of the Year
PPG has named Miller Auto Parts & Supply Company, Inc., as its 2010 Platinum Distributor of the Year. The award was announced at PPG’s annual Platinum Distributor Conference, Feb. 24-27 at Loews Royal Pacific Resort in Orlando, Fla. Charlie Lightner, president of the Huntingdon, Pa.-based distributor, accepted the award on behalf of the company.
“I am extremely elated and very proud of our entire organization and thank PPG for this award,” said Lightner. “I attribute our success to our two general managers, Jamey Robertson and Jim McGonigle, and our 250 employees. They’re very knowledgeable and we get tremendous support from everyone at PPG. This is wonderful recognition for everyone’s efforts.”
Bob Wenzinger, director of the PPG Platinum Distributor program, presented the award to Lightner.
Florida House Bill Aims to Repeal Motor Vehicle Repair Registration Law
Florida House Bill 5005, “Deregulations of Professions and Occupations,” sponsored by Rep. Esteban Bovo Jr., R-Dist. 110, includes provisions that would repeal Florida’s law requiring the registration of motor vehicle repair shops with the Motor Vehicle Repair Advisory Council and the regulation of motor vehicle repair.
The Florida Motor Vehicle Repair Act, which became a law, was created to assist consumers with matters relating to motor vehicle repair shops. The Motor Vehicle Repair Advisory Council was created to advise and assist the Dept. of Agriculture and Consumer Services in carrying out and reviewing the rules relating to the Florida Motor Vehicle Repair Act. The law applies to dealers of new and used cars, trucks and motorcycles; garages; service stations; self-employed persons; truck stops; and paint, body, brake, muffler, transmission, mobile repair and glass shops.
Registered shops must post, in a conspicuous location in the customer service area, the registration certificate and a sign advising consumers of their rights under the Motor Vehicle Repair Act and give the department’s toll-free telephone number for assistance or information. Shops must also include in the sign a statement advising consumers they are entitled to the return or inspection of replaced parts, if requested at the time the work order is placed. Finally, shops must include their registration number in any advertisements, announcements, or listings relating to motor vehicle repair in any newspaper, magazine or directory.
2010 Recycled Rides Ride-Away Day Event Provides Positive Media Coverage for Collision Industry Participants
The National Auto Body Council (NABC) is pleased to announce that in 2010 over 100 repair facilities across the nation gifted Recycled Rides® vehicles to families and service organizations in need.
Many collision repair participants—who, at a minimum, donated the labor to refurbish the vehicles—found that the initiative provided a boost in positive media coverage regarding their work on the behalf of others.
Much of the reporting surrounded the program’s Ride‐Away Day event, in which the majority of vehicles are donated simultaneously at different locations throughout the United States on the Monday before Thanksgiving.
Multi-year participant Joe Amodei, from 112 Automotive, is one such example. News 12 Long Island and WLNY TV10/55 covered his 2010 Ride-Away Day event in which he and his fellow Long Island, New York repairers gifted 10 vehicles. “To start the process of developing relationships with Long Island, New York media we simply followed the Recycled Rides workbook and utilized the press releases supplied in our Recycled Rides marketing kit,” he said. “The NABC system works.”
Increased Penalties for Airbag Fraud Specified by Bill Pending in California
In February this year, legislation to quintuple the monetary fines (to $5000) and double the jail time (to a year) that may be levied on any automotive repairer that fails to properly replace a deployed airbag was introduced by California State Senator Leland Yee.
Existing law provides that a person who fails to comply is guilty of a misdemeanor and punishable by a fine not exceeding $1,000, by imprisonment not exceeding 6 months, or by both fine and imprisonment. This bill would provide that an automotive repair dealer who prepares a written estimate for repairs that includes replacement of a deployed airbag, as specified, who fails to repair and fully restore the airbag, as specified, is guilty of a misdemeanor that is punishable by a $5,000 fine, by one year imprisonment in a county jail, or by both fine and imprisonment.
The bill has been assigned to the Senate committee on Business, Professions and Economic Development. The hearing is scheduled to be held on Monday, April 25 at 1:30 p.m. in Room 3191.
The full text of the bill follows:
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 9884.76 is added to the Business and Professions Code, to read:
9884.76. Notwithstanding Section 9889.20, an automotive repair dealer who prepares a written estimate for repairs pursuant to Section 9884.9 that includes replacement of a deployed airbag that is part of an inflatable restraint system, and who fails to repair and fully restore the airbag to its original operating condition, where the customer has paid for the airbag as provided in the estimate, is guilty of a misdemeanor punishable by a fine of five thousand dollars ($5,000) or by imprisonment in a county jail for one year or by both that fine and imprisonment.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
Because this bill would create a new crime, the bill would create a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Mercedes Recalling 137,000 SUVs Over Cruise Control
Mercedes-Benz is recalling 137,000 M-class SUVs because the cruise control doesn't immediately disengage when drivers tap the brake pedal.
Cruise control systems are supposed to immediately shut off the moment the driver uses either the brake or gas pedal...
To read the rest of this article please CLICK HERE.
Tornado Strikes Kentucky Toyota Parts Plant
A tornado struck a manufacturing plant on the southeast side of Hopkinsville, Kentucky, on April 4, tossing pieces of the roof, collapsing part of the aluminum structure and injuring seven people, officials said. The plant, Toyoda Gosei Automotive Sealing Kentucky, makes weatherstripping for Toyota vehicles.
The plant is located between Hopkinsville and Pembroke, Kentucky.
About 184 employees were inside TGASK when the storm arrived shortly before noon, said Paul Ray, spokesman for the Hopkinsville Police Department.
None of the injured had life-threatening injuries, said spokeswoman Jessica Beckham of Jennie Stuart Medical Center. Ray said the injuries were mostly bumps and bruises.
There is also a hail concern mounting in this area as the storm continues.
Toyota Wins Key Unintended Acceleration Case
Toyota has won a much-anticipated case in U.S. District Court in the Eastern District of New York that was seen as an early indicator of the strength of the legal theories behind current unintended acceleration claims against the Company.
After deliberating for approximately 45 minutes, a jury reached a defense verdict in favor of Toyota Motor Sales, U.S.A., Inc. in an alleged unintended acceleration case brought by Dr. Amir Sitafalwalla, who claimed that an unsecured driver’s side floor mat was the primary cause of the crash of his Scion vehicle in August 2005.
During the course of the week-long trial, Dr. Sitafalwalla’s primary expert, Dr. Anthony Storace, withdrew his assertion that the Electronic Throttle Control System in the Scion could also have been a cause of the accident based on his acknowledgment that he had no basis to support that claim.
Ford Sales Beat Out GM for the First Time in Over a Decade
Ford Motor Co. topped rival General Motors in U.S. sales in March, grabbing the No. 1 spot for the first time in nearly 13 years...
To read the full text of this article please CLICK HERE.
Texas Senate Approves SB 944 Allowing For Creation of an Advisory Committee
The Texas Senate voted to approve Senate Bill 944 on March 24. The bill was introduced by Texas Senator Mike Jackson earlier this month before being transferred to the Committee on Business and Commerce. The bill now moves to the House for approval.
The bill would create an advisory committee for the Texas Insurance Commissioner that would make recommendations regarding automobile insurance claims.
The full text of the engrossed* bill can be seen below:
Honda Cuts Daily Output in North America
Honda cut daily output at its U.S. and Canada assembly plants by as much as 50 percent starting on March 29, when it disclosed the plans in memos to employees and suppliers, according to reports by Automotive News.
Even though Honda has a high percentage of North American-supplied content in its vehicles, the cuts in output are evidence that the shortage of even a single part can shut down, or severely hamper, a factory.
"We're not shutting down anything," Honda spokesman Ed Miller said. "While we are continuing to keep all North American plants open, we will be reducing production selectively, on a temporary basis, to cope with parts supply issues."
In the United States, Honda builds the Accord, Acura TL, Acura RDX, CR-V, Element, and Accord Crosstour in Ohio. The Civic is assembled in Indiana. In Lincoln, Ala., Honda manufactures the Odyssey, Ridgeline, and Pilot.
Among the worst hit by Japan's devastating earthquake and tsunami, Honda said it will resume limited vehicle assembly on April 11, after having its plants offline for four-straight weeks.
Honda had previously said its two domestic assembly plants would be down at least through April 4, says both the Sayama and Suzuka factories will be running April 11. Honda cautioned that restored vehicle assembly in Japan will continue at only half its normal rate.
The company will also resume production of parts and replacement parts on April 4 for shipment overseas. That move should help alleviate parts shortages in North America.

























