Volkswagen of America, Inc. will pay $1.1 million to resolve its failure to promptly notify the Environmental Protection Agency (EPA) and to correct a defective oxygen sensor affecting at least 329,000 of their 1999, 2000 and 2001 Golfs, Jettas, and New Beetles, according to federal officials. This is the largest civil penalty to date for this type of violation.
In an overwhelming 22 to 5 vote, members of the National Conference of Insurance Legislators (NCOIL) Property and Casualty committee agreed to continue their effort to protect consumers from both the "car company parts monopoly" and "poor quality aftermarket parts." After hearing testimony from both sides, the group created a special committee to address the issues necessary to develop a model bill on certified aftermarket crash parts that could be introduced in state legislatures around the country.
The California Department of Con-sumer Affairs' Bureau of Automotive Repair (BAR) has revoked the automotive repair dealer registration of California Collision Center, 3029 Enterprise Street, after an investigation found multiple violations of California law governing the auto repair industry.
Mentors@Work is once again searching for the best of the best mentors in the collision repair business. The national mentoring organization seeks nominations from the industry for its annual "Mentor Of The Year" award. This award will be presented to the individual who has shown exceptional skill teaching and training new technician talent for the collision repair industry.
The California Senate Banking, Finance, and Insurance committee heard testimony in July in Sacramento concerning Assembly Bill 303 (AB 303) - a bill that would allow insurance companies to take over as the customer in the collision repair process.
Workers' compensation insurers in the state filed rate reductions averaging -14.6 percent for policies incepting on or after July 1, 2005 bringing the cumulative rate reduction to -26.78 percent since reforms were enacted, stated Insurance Commissioner John Garamendi. In addition, the Commissioner called on insurers to pass on savings more quickly, noting that in 2005 the industry only paid 41 cents in claims for each dollar of premium collected.
Attend any national trade show, conference or association event in the collision industry, and one thing is likely to become apparent: While men may still far outnumber the women, both the number and success level of women involved in the industry is growing rapidly.
In an anticlimax second only to the Y2K debacle (remember - the hysteria over the new century), the Illinois Supreme Court overturned on a technicality the lower court decision in Avery vs. State Farm, the class-action lawsuit in which jurors found that aftermarket crash parts were not of like kind and quality to OEM parts and awarded over $1 billion against State Farm in October 1999.
After last year's I-CAR 25th annual meeting, which very much focused on the training organization's successful history, this year's event focused more on the future than on the past 12 months, which one board member termed "its most challenging year ever."
The U.S. House of Representatives has passed a bill that would allow business association members to purchase health care plans at lower rates. Association Health Plan (AHP) legislation, H.R. 525, passed by a vote of 263-165.
Two lawyers and one medical doctor pleaded guilty in connection with an interstate staged auto insurance fraud ring involving more than 55 victims/insurance carriers both in Arizona and California. Over $2.5 million was paid out in fake insurance claims in an organized staged collision ring from 1993-2000. Investigators from the California Department of Insurance's (CDI) Los Angeles Urban Auto Fraud Task Force targeted the ring in 2003 dubbing it "Operation Rent & Wreck" and announced the investigations and arrests of 18 people.
Attendees at the Collision Industry Conference (CIC) survived the blistering Arizona heat in Scottsdale, Arizona, to see progress being made on many crucial issues. The Estimating Task Force, formed by AASP, ASA and SCRS at NACE in 2004, had plenty to report about getting results from the database providers.
A number of dealership service departments, independent repair shops and other automotive businesses that have been the victims of thefts in recent months are urging other businesses in the industry to take added steps to protect themselves.
There's little doubt that much of the growth some collision repair businesses have experienced over the past decade has been fueled by insurer direct repair programs (DRPs). After all, the percentage of insurance-paid work handled through DRPs quadrupled - to more than 30 percent - between 1996 and 2002. Most major insurers are already well over that 30 percent mark - with some at 70 percent or more.
A special online database consisting of motor vehicles and boats affected by Hurricanes Katrina and Rita is available for the public to search in an effort to protect consumers from fraudulent sellers, announced Robert M. Bryant, president and CEO of the National Insurance Crime Bureau (NICB).
A committee of the Collision Industry Conference (CIC) is taking a different approach to the long-standing battle between shops and insurers over "featheredge, prime and block" by defining where body work ends and paint work begins.
For the first time, the Insurance Institute for Highway Safety has tested the smallest vehicles sold in the US market, which gain popularity as fuel prices rise. Now these cars are rated for comparison of occupant protection in front, side, and rear crashes. The Nissan Versa earns good ratings in all three tests. Two other cars earn good ratings in front and side but not rear tests.
Crash test results indicate which vehicles in each weight category afford the best protection in real-world crashes, and this round of tests reveals big differences among the smallest cars. But results of real crashes show that any car that’s very small and light isn’t the best choice in terms of safety. Driver death rates in minicars are higher than in any other vehicle category. They’re more than double the death rates in mid-size and large cars.
CCC Information Services Group Inc. (Nasdaq: CCCG), a leading supplier of advanced software, communications systems, Internet and wireless-enabled technology solutions to the automotive claims and collision repair industries, has signed a definitive agreement to be acquired by an affiliate of Investcorp, the global investment group.
Acting on complaints from the California Autobody Association (CAA) regarding the need for explicit specifications for determining autobody labor rates, the California Department of Insurance (DOI) has become the first in the country to propose regulating how insurance companies conduct surverys to determine the prevailing labor rate.
Neither side in the case of Avery vs. State Farm is willing to cry uncle.
A rule that would prevent businesses emitting certain levels of toxins from locating near schools - Proposed Rule 1401.1 - failed to pass a vote by a quorum of the Governing Board during a hearing in early October. The South Coast Air Quality Management District (SCAQMD) tabled the rule until their meeting this month.
What do you get when you ask the industry to list what they see as the key issues they’d like to see addressed?
The leaders and participants of the Collision Industry Conference (CIC) conducted just that exercise in recent weeks, and ended up with a list of nearly 600 issues submitted by more than 150 representatives of the collision repair, insurance and related segments of the industry.
With the sluggish growth or even decline in sales many shops have experienced in recent years, the technician shortage and recruitment of employees have not been the troublesome issue they were for the industry during the late 1990s.
Concluding well over ten years' debate regarding aftermarket crash parts, the National Conference of Insurance Legislators (NCOIL) unanimously adopted a "Resolution Regarding Motor Vehicle Crash Parts" at its annual meeting in San Diego, California last month.
Keystone Automotive Industries, Inc. announced in early December that the company and other respondents intend to contest portions of a preliminary ruling issued December 4, 2006, by an administrative law judge of the United States International Trade Commission in a complaint initiated by Ford Global Technologies, LLC against the company, another distributor and certain manufacturers.
In a move that some insurers believe could prove detrimental to Louisiana consumers and insurers, the Louisiana legislature narrowly passed a bill that would require all vehicles determined to be "total" losses as a result of recent flooding to be crushed.
The Collision Repair Association of California (CRA) has appointed Richard Steffen as deputy director of legislative affairs. With 28 years of experience in state government behind him, Steffen is armed with a multi-level campaign to aid CRA in the fight for fairness among auto body professionals. The first order of business is to strike a working dialogue with the regulator, the insurance commissioner, the BAR, the attorney general and the insurance industry, Steffen said. He added that there are a number of fronts to adjust public policy.
Insurance Commissioner John Garamendi recommended a 15.3% decrease in the state's workers' compensation pure premium rates, his fourth consecutive decrease and an amount that brings his cumulative recommended cuts to 46.2 percent.
CCC Information Services Group Inc., a leading supplier of advanced software, communications systems, Internet and wireless-enabled technology solutions to the automotive claims and collision repair industries, has signed a definitive agreement to be acquired by an affiliate of Investcorp, the global investment group. Under the terms of the agreement, CCC stockholders will receive $26.50 in cash for each share of CCC common stock, representing a 10.3% premium over the average closing price of CCC's stock for the last 90 trading days. The fully diluted equity value of the transaction is approximately $495 million.
In spite of the fact that California passed SB 551, a statute that was designed to stop steering in the state, several autobody shop owners showed up to testify about their continuing problems with steering at the Senate Banking, Finance and Insurance Committee Oversight hearing on November 23.
The Administrative and Enforcement Monitor of the Bureau of Automotive Repair (BAR) has presented a draft of its first report on the performance of the BAR to the Department of Consumer Affairs and the California legislature.
Concerns about the estimating databases, the reversal of the decision in the State Farm non-OEM parts lawsuit, the collapse of another consolidator and an ongoing battle over the "right to repair" were among the most talked-about topics in the collision industry this past year.
The South Coast Air Quality Manage-ment District (AQMD), the Southland's air quality agency, has adopted stricter standards to significantly reduce smog-forming emissions from coatings used in nearly 1,800 auto body shops in the region. The standards will take effect in 2008.
There's a simple rule in business that if you want to increase profits, you need to either increase sales and revenue, or decrease costs and expenses.
State Farm is rolling out a new DRP program. The program calls for State Farm to get as good a rate as a shop charges any other insurance partner and asks for preferential treatment for State Farm insureds.
Award winning auto designer Chip Foose will be the featured luncheon speaker at the California Autobody Association (CAA) 1st quarter meeting on February 18, 2006, at the Disneyland Hotel in Anaheim. Foose is also the creator and host of the popular television series Overhaulin, airing on theTLC Network. In a relatively short career, Foose has created a legacy of designs and accomplishments beyond his years.
California Insurance Commissioner John Garamendi announced a $1 million fine against Farmers Insurance Group on January 23 following settlement negotiations over how the company handled consumer claims. According to a spokesman for Garamendi, the claims involved both homeowners and automobile policies.
Concerns about proposed new state and federal controls on the sale and use of automotive refinish paint products have kept environmental issues among the key topics being addressed by the Collision Industry Conference (CIC) in 2006.
Activity has been heating up around proposed Assembly Bill 303, known in the industry as the "Concierge" bill because it is backed by Progressive Insurance. Progressive has a repair program known as "Concierge" because of its drop off and delivery services.
Shop owners struggling to remain profitable say they are increasingly focusing on the paint side of the shop, looking for innovative ways to squeeze even more productivity out of paint booths, paint products and paint personnel.
In the three years since "event data recorders" (often referred to as "black boxes") in vehicles really began to arise as an issue of interest for collision repairers, there has been significant activity related to EDRs on a number of fronts:
Last month State Farm, the nation's largest auto insurer, announced that it was beginning the rollout of a new program for its preferred body shops. The contract for that new program was sent to body shops in the test markets of California, Illinois and Michigan. Predictably, the response was mixed, but the "vibe" was definitely negative. Shop owners who admitted that they depend upon State Farm business for a large percentage of their volume either said nothing or said they were taking a wait and see attitude.
Hurricane losses and loss adjustment expenses totaling $6.3 billion (after reinsurance) contributed to a reduction in State Farm's 2005 net income. The company is reporting an after-tax net income from all sources of $3.24 billion, down 39 percent from the $5.31 billion in net income for 2004.
California State Senator Jackie Speier (D-San Francisco) has introduced SB 1492, groundbreaking legislation that would make the Bureau of Automotive Repair (BAR) responsible for conducting an annual survey of body shop labor rates for the purpose of establishing prevailing rates in different parts of the state.
Battle lines are being drawn in California over Assembly Bill 1852, a measure that would have the effect of legally sanctioning certified aftermarket crash parts by declaring that, once certified, they are of like kind and quality to OEM. Such sanctioning would presumably cut off consumers from taking legal action against their insurers for mandating the use of aftermarket parts in collision repairs.
The California Autobody Association (CAA) will be holding its own Legislative Day this year on March 29 at the Capitol in Sacramento. All body shops are invited to attend a short update session and participate in scheduled meetings with their legislators. Further information will be available at www.calautobody.com.
Insurance Commissioner John Garamendi has issued a Cease and Desist (C&D) Order on The Global Healings Society of Puyallup, Washington, following an investigation by the California Department of Insurance (CDI) Investigation Division. The Order demands The Global Healings Society to cease and desist transacting any and all insurance business in California.
For the second year in a row, the White House budget request eliminates the federal investment in career and technical education authorized by the Carl D. Perkins Vocational and Technical Education Act. The Association for Career and Technical Education (ACTE) and the National Association of State Directors of Career Technical Education Consortium (NASDCTEc) expressed disappointment with President Bush's budget request and will work with the Congress and administration to seek restoration of Perkins funds during the appropriations process.