Automaker News (list below)

Sears offering defunct car dealerships auto center franchises
Sears Holdings Corp. plans to expand its Sears Auto Center network by recruiting former car dealers as franchisees. Sears said it is launching the Independent Sears Auto Center franchise program, allowing auto dealers who lost their GM or Chrysler franchises to operate as licensed Sears Auto Centers.

The company said Coleman Auto Group of East Windsor, N.J., is the first car dealership to take advantage of the program and will open a Sears Auto Center March 27 on the site of its former Chrysler dealership.

“Sears designed the new franchise program to help those dealers leverage their facilities by building a set of businesses around parts and services, over-the-counter merchandise, and previously-owned vehicle sales,” Sears said in a statement.

The Sears Auto Center franchise locations will provide the same products and services for automobiles, light trucks and motorcycles that are offered at the nearly 850 company-owned Sears Auto Centers across the country.
Read more...
 
Prius Recall totals 437,000 Worldwide
Automotive News is reporting that Toyota announced, on Feb. 9, a worldwide recall of 437,000 hybrids, mostly of the 2010 Prius, triggered in part by an NHTSA investigation  of braking problems with the 2010 Prius.

NHTSA also is investigating unintended acceleration in a dozen Toyota models, more than 8 million of which have been recalled globally since October.

And since November, NHTSA has been investigating reports of engine stalls in the 2006 Corolla.

Transportation Secretary Ray LaHood has been sensitive to questions raised in Congress about NHTSA's effectiveness. He is scheduled to testify Feb 10 before the House Oversight Committee, and House Energy Committee investigators have requested NHTSA documents dating to 2000.

After Toyota announced its hybrid recall, LaHood issued a statement that said: "When I spoke with Toyota President Akio Toyoda last week, he assured me that his company takes U.S. safety concerns very seriously. The U.S. DOT will remain in constant communication with Toyota to hold them to that promise."

Said Sean Kane, president of the Safety Research & Strategies consulting firm: "Toyota's Teflon image for reliability is going out the window faster than anyone can salvage. … People are logically asking, how can it have problems with so many models?"
 
GM, Ford may be benefiting from Toyota woes

The U.S. auto industry rebounded from last January's sales collapse with one big exception: Toyota, which lost an estimated 20,000 sales after it stopped selling eight models because of defective gas pedals.

Last month, U.S. sales of cars and light trucks to consumers rose 6 percent from a year earlier, thanks to increases in fleet sales and strong demand for newly redesigned vehicles such as the Hyundai Tucson SUV and Buick Lacrosse sedan.  Big winners included General Motors Co., Ford Motor Co., Nissan Motor Co. and Hyundai Motor Co., which all posted double-digit sales increases.

Click for MSNBC story

 
Feds sign off on Toyota gas pedal remedy

Toyota spokesman Mike Michels said the company received feedback from the government, but he would not say what that was or when it intends to start sending out parts. The company has said it plans to announce the fix the week of Feb. 1.

CLICK for MSNBC story

 
Toyota Says It Will Start Fixing Recalled Cars Week of Feb. 1

Toyota Motor said on Feb. 1 that repairs to accelerator pedals in millions of recalled vehicles would begin later this week as it tried to reassure customers and show that it had the situation under control.


Toyota said many dealers would have extended hours and some would stay open around the clock so that the pedals could be fixed as quickly as possible.

CLICK for NYT story

 
Mopar Gives Dealers Cut of Online Orders
Automotive News has reported that Chrysler Group’s Mopar parts brand has opened an online store to sell parts and accessories electronically. Dealers, though, will ship the parts to customers and get paid for handling the sales.
    “We need to recognize that a huge number of people are shopping online for parts and accessories,” says Mopar CEO Pietro Gorlier.
    After a customer orders a part from the Mopar eStore at mopar.com, Mopar will distribute the part to a dealer, who will ship it to the customer. Chrysler dealers who want to participate need to sign up.
    To make ordering friendly to customers, a dealer has 90 minutes to respond once an order is taken online. If that dealer fails to respond, the order automatically shifts to the next nearest dealer based on the ZIP code, says Jim Sassorossi, Mopar director of sales and marketing.
    About 1,000 of Chrysler’s 2,352 dealers have signed up for the program, Sassorossi says. Some initially feared Mopar was trying to bypass them.
 
Toyota recalls top 5.3 million vehicles
Toyota's recall troubles continue to grow, with the total number of vehicles affected by two recalls involving gas pedals growing to at least 5.3 million.

The latest addition to the recalls was announced Wednesday, with 1.1 million vehicles added to the 4.2 million recalled in November to fix a problem in which the gas pedal can become caught on the edge of the removable floormat, causing the vehicle to accelerate uncontrollably.

click for CNN story

 
GEICO has OEM-only policy for Bumper reinforcements

Collision Week has reported that efforts by Autobody News columnist Toby Chess have led to GEICO issuing an order to inform  its staff of the companywide policy change this week citing the recent industry dialog surrounding the quality of aftermarket bumper reinforcements.

The company communication states: "As of today, and until further notice, companywide procedure will be to specify only new OEM or recycled OEM bumper reinforcements, absorbers and brackets. It is important that this message be clearly communicated to everyone on your staff."

For background on what led to this directive, see Toby Chess column, Hey Toby 20, in Autobody News February edition.

 
Toyota Recall is the right thing says NADA

The National Automobile Dealers Association (NADA) issued the following statement today on the Toyota recall:

"Toyota is doing the right thing. The safety of the customer is of paramount concern. Toyota has a reputation for resolving problems quickly. We certainly hope that's the case in this situation as well.

"This is creating a very difficult situation for dealers, in an already tough market. NADA is working with Toyota to identify a plan to help get dealers through this. In the meantime, we are encouraging Toyota dealers to check to see if they have business interruption insurance that might help them weather this crisis.

"For the consumer, Toyota has set up a toll-free number to answer customer's questions. That number is 1-800-331-4331."

NADA, founded in 1917 and based in McLean, Va., represents about 17,000 new-car and -truck dealers, both domestic and international.  

SOURCE National Automobile Dealers Association

 
Honda Hybrids Behind Sales Target
Honda planned on selling 200,000 Insight hybrids worldwide in its first year on the market, but that prospect has dimmed, Honda's executive vice president Koichi Kondo told media sources. The problem with the car is that it's too small for American customers, particularly in the backseat, Kondo explained. U.S. customers instead prefer Toyota's revamped hybrid Prius. The Prius beat Insight sales seven-to-one in the U.S. during the final quarter of 2009.

 

 
Toyota Recalls 2.3 Million Vehicles for Sticking Accelerator Pedal
Toyota  announced on Jan 21 it would recall approximately 2.3 million vehicles to correct sticking accelerator pedals on specific Toyota Division models. This action is separate from the on-going recall of approximately 4.2 million Toyota and Lexus vehicles to reduce the risk of pedal entrapment by incorrect or out-of-place accessory floor mats. Approximately 1.7 million Toyota Division vehicles are subject to both recall actions.
 
Treasury: General Motors returns $140 million of bailout funds provided for parts suppliers

General Motors has returned $140 million of the $290 million it received from the government to support is parts suppliers.

The Treasury Department said Nov. 24 that the $140 million was part of the $2.5 billion pledged to GM to help the automaker's parts suppliers. The money came from the government's $700 billion bailout fund.

Click for story

 
Toyota changing gas pedals on four million cars
Toyota Motor Corp. on Nov. 25 said it would fix about four million vehicles in the U.S. to avoid sudden acceleration that could occur from the floor mat interfering with the gas pedal.

Toyota has found a way to reconfigure the pedal and, in some cases, alter the floor surface to address the issue and lessen the risk of a crash, according to the National Highway Traffic Safety Administration.

Click for story

 
Toyota to recall about 110,000 Tundras

Toyota will recall about 110,000 Tundra vehicles sold in the United States due to safety concerns. The move was triggered by excessive corrosion on the frame rear cross-member of certain Tundra vehicles which operate in areas with high road salt use. "In the worst case, the spare tire stowed under the truck bed may become separated from the rear cross-member. Spare tire separation will create a road hazard for following vehicles and increase the likelihood of a crash," said the Japanese auto maker in a statement.

Click for story

 
GM Sales Up in October
A top General Motors Co. sales analyst says the automaker is likely to post its first year-over-year monthly sales gain in October.
Mike DiGiovanni says GM also should see its market share increase for the third straight month despite shedding the Pontiac, Saturn, Saab and Hummer brands. DiGiovanni says the U.S. auto market is not out of trouble yet but is showing signs of recovery.
Automakers release sales results on Nov. 3.

GM's last year-over-year monthly increase was in January of 2008.
 
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Service, Diagnostic, and Mechanical

Toyota says it was aware of Prius brake concerns
Toyota Motor Corp. said Feb 4 it was aware of concerns about the safety of its Prius hybrid and that it has modified the braking system to address the issue.

The statement was made by quality general manager, Hiroyuki Yokoyama, following the release of Toyota's fiscal third-quarter earnings, which showed an above-forecast return to profit against the year earlier period. 

Dow Jones Newswires cited the executive as saying Toyota first heard about complaints involving Prius brakes from dealers last autumn. He said the braking system was revamped in January and denied the company had tried to cover up the problem, according to the Dow Jones report.

The Associated Press quoted a Toyota spokeswoman as saying that while the problem was corrected on Prius models sold since late January, the auto maker was still deciding on how to deal with those sold earlier.

The Nikkei business daily cited unnamed sources close to the company as saying that Toyota would soon advise its domestic dealers on steps to take to make sure Prius models already sold are safe.

Dow Jones also cited Yokoyama as saying Toyota was considering various steps to limit the impact on sales from large recalls prompted by different issues involving accelerator pedals and floor mats on several models.

Toyota believes that recall will cost it $2 billion, according to Reuters.

 
Service, Diagnostic, and Mechanical Feb 2010

This month we introduce---for fun---a humorous column excepting short stories from Scott "Gonzo" Weaver's book, HEY LOOK! I FOUND THE LOOSE NUT! Scott is an auto electric shop owner in Oklahoma. His stories are true.

Check out his website at www.gonzostoolbox.com, or email him at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

CLICK to Download Western SDMN section

 

 
ASA Provides Legislative Division Updates at 2009 ASRW
Representatives of the Automotive Service Association (ASA) and the U.S. Environmental Protection Agency (EPA) were on hand Nov. 6 in Las Vegas for an afternoon press conference to discuss new initiatives, goals and partnerships involving the two organizations. The press conference was held during ASA’s NACE and CARS events—co-located as part of the second annual Automotive Service and Repair Week (ASRW)—at the Mandalay Bay Convention Center Nov. 4-7.
    Bob Redding, ASA’s Washington, D.C., representative, provided an update on the legislative activities and focus by the association, such as endorsement of federal insurance legislation that includes property and casualty insurance regulation, and full repeal of the McCarran-Ferguson Act.
 
SEMA Show--- Floor Tour With Tire Rack? The Recession Effect? Who's Lean and Green?

Matt Edmonds, vice president of Tire Rack www.tirerack.com, America’s largest independent tire tester and direct source for tires, wheels and performance accessories will be at the upcoming SEMA Show in Las Vegas to gauge and evaluate the pulse of the industry as a whole on Monday Nov. 2nd – Thursday Nov. 5th.  As a result of the worst recession in decades, several major tire manufacturers are unable to attend this year’s show as you know.  What does this mean for the industry as a whole and what’s new at the show despite several manufacturers not in attendance?

Tire Rack works with every OEM tire brand, leading performance brands and will have an impartial take on what’s new, hot, not so hot, troubled or just plain silly at SEMA this yearI can have Matt Edmonds available to comment and feed you content pertaining to:

Tire Industry Pulse  - apprx. 10 of the major tire brands will not be exhibiting this year, what does this mean for the industry? Which manufacturers are left to steal the limelight at the show?

Lean and Green - top 5 new green products (Tire Rack just completed a low rolling resistance tire test which could be a possible hook for you as well?).  So what products are new and exciting in this category?  With consumer interest focusing on reducing fuel consumption and being eco-friendly, tire manufacturers are scrambling to develop ‘green’ products that appeal to their concerns and new CAFÉ standards. 

Winter Travel - should you be discussing winter travel, Matt can discuss the winter tire and accessories options at the show.

 

 
Autoland Scientech Designs Top-Tier Automotive Diagnostic Systems

Richard Zenteno, the Marketing Director for the Americas for Autoland Scientech U.S.A., has recently seen a movement throughout the country in which body shops are incorporating diagnostics along with mechanical repair and adding it to their menu of capabilities, he said. The reasons for this new trend are many, Zenteno explained.

To read this article in PDF format with photos CLICK HERE

    “Nine out of every 10 body shops we visit in this country are seeing the need,” Zenteno said.  “Body shops that consider getting into mechanical repair can’t avoid from performing diagnostics on some level,” Zenteno said.  “I tell body shops two main things about doing diagnostics. First, if you’re not in; get in; it is a fact that electronics in vehicles are increasing. And secondly, develop a habit for diagnosing vehicles in your shop. Become versatile and expand your services—if you become capable and eventually adept at performing any and all types of diagnoses, you’ll benefit in many ways, because you’ll be more valuable to both your customers by providing a better customer experience and the insurance companies by increasing your accuracy in the initial vehicle estimate and submitting fewer supplements.”
    Time, which equals money, is probably the foremost factor for body shops to consider getting into diagnostics, Zenteno said. “Whenever a car comes into a body shop you assess visual damage to the vehicle, however, in that process it is important to assess the damage that has been done to the electronics. One of the first things they should do is run a complete scan of the vehicle to assess what electronic components will need to be changed. If they’re not doing the diagnostics in-house, the shop will have to send the vehicle out to either a dealership or to a mechanical shop. The car is now in someone else’s hands and you’ve lost control of the repair. You could wait up to a week or more to get that vehicle back. In the interim, your cycle times are trashed. It’s a situation of failing to capture revenue, as well as losing money through expenses.”
    Without the correct diagnostic system, body shops are essentially working in the dark on the mechanical side, Zenteno said. “You need the basic diagnostic tools to determine the electronics within the vehicle are damaged. You’re guessing without the proper equipment and don’t even know what to fix. Air bags, crash sensors, fuel sensors, weight sensors, engine issues, abs—so many things can go wrong with a car today that without the proper diagnostic tools, you’re lost. Without the right equipment and the knowledge to support it, a body shop trying to do mechanical repair is like a captain at sea without a compass.”
    Body shop owners who are reluctant to consider incorporating mechanical repair capabilities should be aware of the two major misconceptions about diagnostics, Zenteno said. “If shops are thinking that diagnostics equipment is expensive, think again. For $3,000 to $8,000, a shop can get the proper diagnostic tools to work on 99% of every make and model car coming through their doors. Secondly, the skill level of your techs isn’t as involved as you’d imagine. A few hours of simple training will get them up and at a level of efficiency to do the job properly. It’s a matter of plugging in the scanner and reading the codes. You don’t need to be a computer engineer or programmer to do diagnostics in today’s world.
    “It is not a matter of ‘if you will have ROI’ with our tools,” Zenteno said. “Collision shops that have used a good OE level diagnostic tool like ours have saved up to 80% reduction in sublet repairs. Moreover, our scan tool has the capability of being both a handheld and PC-based tool simultaneously giving the shop the capability to document the trouble codes and needed electronic repairs to include in customer files ensuring reimbursement from the insurance company.”
    Autoland Scientech was founded 20 years ago, developing engine analyzers initially, Zenteno said. “We’ve been doing something right in this business for two decades to be around this long. We’re leaders in this area and our excellent reputation is the result of hard work.”
    In 1999, Autoland Scientech made huge news when they released the OB91 base unit. “It was the most innovative full-featured automotive scanner at the time, providing technicians with dealer-level diagnostics on fine European and Japanese vehicles. It was the product that put us on the map when it was selected as Motor Magazine’s Top 20 Tools that same year.”
    Over time the Autoland product line evolved to offer coverage for a wide range of vehicles catering to sophisticated technicians as well as general mechanical repair techs, Zenteno explained. “We make scanners for every level. On the professional-dealer level, we developed the D91 iScan, the tool-of-the-choice for upper echelon import repair shops. At the other end of the spectrum, we designed the D51 VScan for the general auto shop niche, and recently debuted the innovative shop-level VeDIS diagnostic system as well.”
    In addition to aftermarket automotive diagnostics equipment, Autoland Scientech specializes as a manufacturer of diagnostic equipment for companies such as Honda Taiwan Co., Ltd. and Kwang Yang Motor Co., Ltd. (Kymco). It’s a worldwide company working with the top diagnostic minds on the planet, Zenteno said.
    “We’re constantly in the process of designing new diagnostic equipment globally,” Zenteno said. “We have R&D teams in Japan, Taiwan, Mexico, Australia, U.K. and in the U.S., developing new products all the time, for the purpose of providing the finest diagnostic scanners in the world for the aftermarket industry. This universe of automotive diagnostics is ever-changing, so our goal is to stay on the cutting-edge; which involves a ton of hard work and R&D led by the leading minds in the world.”
    What does the future in auto diagnostics for body shops look like? “The collision repair industry will become increasingly keen about getting into diagnostics and mechanical repair,” Zenteno said. “It comes down to profitability, versatility and flexibility. They will see the value in expanding past paint and body repair, especially during tough economic times. Will it be the norm? Probably not, but the shops that step up and adopt diagnostics will pay substantial dividends immediately and down the road.”

Autoland Scientech USA
1001 Cypress Creek Rd. Ste 101
Cedar Park TX 78613
(512) 336-5152
www.autolandscientechusa.com
www.autotechforum.net

 
Ben Johnson, Diagnostics Expert, Joins ALLDATA
ALLDATA has announced the appointment of Ben Johnson as senior product marketing manager. His immediate responsibilities will include the company's core product, ALLDATA Repair, as well as development of new diagnostic tools, enabling greater efficiencies for automotive service professionals.

Johnson comes to ALLDATA from Delphi in Troy, Mich., where he was director of global product development for service tools and educational products. Among his many achievements at Delphi, he helped architect their service business expansion into Europe, South America and Asia.

Prior to joining Delphi, he was a project manager for the Automotive Aftermarket Industry Association (AAIA). While at AAIA, he helped develop the i-SHOP connectivity standard, which allows different computer systems within a repair shop to seamlessly interact. Johnson is a recognized expert in the field of automotive diagnostics, with an understanding of the entire product development process from inception to launch.

Johnson's broad-based experience also includes several years with SPX Corp. as product manager for diagnostic platforms. At SPX, he managed an engineering team, while also engaging directly with customers. He is named in two patents awarded to SPX. For nine years, he owned his own auto repair center. He frequently speaks on vehicle technology at automotive industry events and serves on industry boards and committees.
 
SDMN Sept 09 Western
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Autobody Events and Meeting Schedules

Update: New Location for Shops Meet to Discuss Possible Class Action

About 60 shops have signed up to attend a meeting with attorneys in Sacramento, CA, on Nov. 12 to discuss a possible class action lawsuit against State Farm Insurance. Gene Crozat of G & C Auto Body said the meeting is designed to help shops "evaluate whether State Farm has been steering customers away from their shops, and to evaluate whether they have potentially viable claims against State Farm." For more information about the November 12 meeting, contact Peter Bizaca, (707) 591-3365.

G&C spokesman Peter Bizaca says the amount of positive replies to Crozat’s invitation to statewide repairers has been astounding. “Due to the overwhelming response, a larger space is needed to accommodate the crowd,” Bizaca reports. The new location is the Marriott Sacramento in Rancho Cordova, 11211 Point East Drive; 916-638-1100. The Nov. 12 meeting begins at 7:30 p.m. and will last about two hours.

 

 

 
Autobody News to Exhibit at NACE

Please come by our booth at NACE (#2250) to discuss your shop, the industry, and any suggestions you have for coverage in the paper.

SPECIAL GUESTS:

Thursday, 1:00 PM  Lee Amaradio, CRA President. Come by and talk with Lee about the industry and CRA in California.

 John Yoswick TBA

Saturday,  10:00 AM Rich Evans, Master Builder, Painter, Fabricator. Come and Meet Rich Evans.

 

 
BASF Announces Schedule Change for SEMA Events
BASF Automotive Refinish Solutions will exhibit hot cars, cool colors and automotive design stars at the 2009 Specialty Equipment Market Association (SEMA) Show at the Las Vegas Convention Center, booth 21442.

Tuesday, November 3, 9:00 a.m.
BASF will host a press conference where Chip Foose of "Overhaulin'," and Peter Klut, host of "Dream Car Garage," will unveil the 1970 Super Cuda that has been restored on air during the 2009 season of Dream Car Garage .  Peter Klut will be available for an autograph session directly following the press conference from 9:30 - 10:30 a.m.

Thursday, November 5, 10:00 - 11:00 a.m.
Chip Foose, will make a second appearance in the BASF booth for an autograph session and to promote the Foose Signature Colors he designed for BASF.

In addition to the Dream Car Garage Super Cuda, BASF is featuring three additional not-to-be-missed cars: 2010 Camaro designed by Sound Choice and Performance; a Ring Bros. Ford Fairlane; and a Stillen Nissan GT-R Targa.

 
CREW Webcast for Sept. 24 to focus on OEM parts programs as a competitive alternative
Collision Repair Executive Webcast (CREW) has announced that the guests for the Thursday, September 24th, 11a.m. PST session will be OEConnection, American Honda and Chrysler. CREW’s special guests will provide insights into trends, the current situation, future vision and opportunities related to auto manufacturer parts programs as a competitive alternative to non-OE parts. The information presented will be further developed through questions posed by Vincent Romans, Mathew Ohrnstein and Erick Bickett.

The CREW guests will include Bill Lopez, Director, Collision Segment, OEConnection, Jordan Miller, Chrysler, Manager of Collision Repair Parts Sales & Marketing and Mark Booher, American Honda, Assistant Manager Collision Parts Marketing.

 
AAIA Town Hall 2009 to Feature All-Industry Channel Panel
Four top aftermarket industry leaders will headline a channel panel to discuss how factors of 2009 impacted their segment of the distribution channel and what's in store for 2010 at this year's AAIA Town Hall breakfast program in Las Vegas, Nev. Hosted by the Automotive Aftermarket Industry Association (AAIA) and sponsored by NASCAR Performance, the Town Hall will be held Wednesday, Nov. 4 at 7 a.m. in the Palazzo Ballroom in the Venetian Hotel.
 
Nov 19 - TIAA Alamo Chapter November Meeting & December Christmas Party

 

 

The Alamo Chapter Meeting is 7 p.m. Thursday, Nov. 19, 2009 at The Barn Door Restaurant located at 8400 North New Braunfels in San Antonio.
 
David Eschback of Jasper Engines & Transmissions will be presenting a seminar titled "In The Way or Passing You By" for TIAA members and guest. Management companies nationwide have charged hundreds of dollars to provide information of this importance.  For one night, thanks to cooperative efforts of TIAA, it's yours free.
 

 

 

 
East Bay CAA Chapter Meeting Nov 17
"The California Auto Body Association East Bay Chapter will hold its 12th Annual  Toys for Tots Model Truck Customizing Competition November 17, 2009 at the Blackhawk Automotive Museum in Danville, California and will feature celebrity judges and showcase the “cream of the crop” of customized model trucks for the past 12 years.  For information contact Lisa Daves at 510-357-3883."
 
JetBlue offers an exra 5% off to attend SEMA/NACE/CARS
SEMA has teamed with JetBlue to offer 2009 SEMA Show attendees a 5% discount on the lowest available airfare to Las Vegas when booked online. The offer is good from any city serviced by JetBlue (see below for a comprehensive listing).

The promotion runs until the last day of the Show. Valid outbound travel dates are October 28-November 6, with return flights valid from November 1-8. To book your flight, visit www.jetblue.com/promo. The promo code is SEMA2009.
 
CIC Industry Trends Survey
The CIC Industry Trends Committee needs all collision repair participants to fill out a short survey to track industry issues. This survey will take approximately 5-10 minutes, and the information will be used to compare the results to industry data as well as establish trends within the CIC body. Please fill out the survey by July 17.

Cut and paste the following website to your browser:
http://survey.constantcontact.com/survey/a07e2j0cdv5fvjp0dym/a0136fw23z4ks/questions
 
SCRS 2009 Affiliate Leadership Conference to be Held in September

With three previous years of rave reviews, the Society of Collision Repair Specialists (SCRS) is pleased to announce the dates of their fourth annual Affiliate Leadership Conference, taking place at the I-CAR World Headquarters in Hoffman Estates, Illinois. Based on feedback and increasing participation of the SCRS' affiliate associations, the once one-day event has expanded to a two-day series, and is scheduled to run from 10:00 a.m. to 5:00 p.m. on Wednesday, September 16thand 8:00 a.m. to 12:00 p.m. on Thursday, September 17th, 2009.

 

For information about the upcoming Affiliate Leadership Conference, please contact Executive Director Aaron Schulenburg at (302) 423-3537 or via email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it You may also contact the SCRS administration office at (877) 841-0660 or via email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Through its direct members and 34 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS including other news releases is available at the SCRS web site: www.scrs.com. You can e-mail SCRS at the following address: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

 

 

 

 
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CRA Calls Opposition to AB 1200 a “Defining Moment” E-mail
Written by CRA staff   
Wednesday, 24 June 2009

CRA Sides with New Car Dealers in Fighting Insurance Bill

CRA president Lee Amaradio today called the association’s opposition to AB 1200 (Hayashi, D-Hayward) a “defining moment in the collision repair industry. “This short-sighted legislation, written by the Personal Insurance Federation of California, seeks to end the right of consumers to choose where their damaged vehicle is repaired,” said Amaradio. “In articulating our opposition, we have an opportunity to educate lawmakers on the harm caused by insurers that steer customers to their DRP shops. Conversely, if we fail, insurers will have a death lock on the process by which repair facilities are selected by vehicle owners.”

AB 1200 would allow an insurer to explain “the benefits” available to a claimant who has already selected a repair facility. California law states that once a claimant has selected a shop, the insurer shall not make any recommendations or suggestions that would prompt the claimant to switch to a shop preferred by the insurer. Under the scheme proposed by AB 1200, insurers could promote its DRP program to claimants at anytime during the repair process. Of course, the insurer wouldn’t have to reveal to the claimant how some DRP agreements restrict the use of factory parts and certain repair procedures recommend by the manufacturer.

The CRA board has voted to support amendments to the bill that have been put forward by the California New Car Dealers Association (NCDA). Essentially the CRA-supported amendments would limit an insurer’s discussion to provisions of the policy once the claimant has selected a shop.

“The term ‘benefits’ opens the steering door a mile wide,” stated CRA lobbyist Richard Steffen. “I don’t care how you rewrite this bill, if ‘benefits’ remains in the language, steering will be sanctioned by state law.”

Allen Wood, CRA executive director, said he has reviewed amendments that purportedly came from CAA. “I’ll be brief—these amendments make the bill worse.” The amendments still allow insurers to discuss benefits with claimants.

The bill is slated to be heard by the Senate Banking, Finance and Insurance Committee on Wednesday, July 1, 2009 at 1:30 p.m. in Room 112 of the State Capitol, Sacramento, California.

Steffen said that the insurers have indicated the bill will most likely be amended prior to the hearing. “The CRA met with the insurers recently on this bill. We made it clear that we wanted any reference to ‘benefits’ struck. We also want a statement that insurers may not make disparaging remarks about a shop selected by a claimant. But it is difficult to police what insurer representatives say and, as such, this provision should not be used in trade for allowing insurers to open the ‘benefit’ door.”
 
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