Midwestern News

1HomePageMap small mw 0816Local news stories affecting the auto body industry in Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin

In December 2013, State Farm experienced a dramatic reduction in the number of shops participating in Select Service (their direct repair program) in the Fort Wayne, IN, area due to the implementation of PartsTrader. Of the 22 local shops participating in the DRP, 14 (over 60%) opted out of the program, though some of these shops had been on the program for decades. Several shop owners and managers were willing to discuss their reasons for being removed from the Select Service.
Todd Bonecutter, General Manager at Glenbrook Collision at 100 W. Coliseum Blvd in Ft. Wayne, said he opposes PartsTrader as a mandated tool. “We don’t like being told where we can buy our parts or being prevented from buying parts from our usual vendors. This is just a stepping stone for the insurers to dictate other things in the collision industry. They starts with parts, but it’s only a matter of time before they move on to paints and other materials.”

A Rhinelander, WI, body shop owner will spend the next 10 years in prison and have to repay over $1.3 million for defrauding insurance companies.

43 year old John (Jack) Henricks III was sentenced Jan. 14 in federal court for using the U.S. Mail to defraud insurance companies. Federal Judge Barbara Crabb pronounced sentence after Henricks plead guilty to the charges last August.

Prosecutors say Henricks used his prior business, Custom Collision, to defraud 19 auto insurance companies. Henricks would stage auto accidents and send in false work orders in order to collect insurance on the vehicles. Assistant US Attorney Tim O'Shea says Oneida County officials did the bulk of the work. "They recognized that this was an important case, they recognized that it was important to do the hard work to hold Mr. Henricks accountable, and the credit in this 10 year sentence goes to the Oneida County sheriff's department.

Wednesday, 18 December 2013 22:03

Arrest Made in Theft from Racine Auto Parts Store

A 25-year-old Racine, WI, man was arrested minutes after grabbing two bank bags full of cash from a nearby auto parts store, police said. The man walked into Gordon Auto Parts, 1401 King Drive, and inquired about some merchandise. The man shoved the owner, grabbed the bags and fled. Minutes later a man matching the robber's description was taken into custody. The store owner suffered minor injuries, and police recovered the bank bags and cash. Anyone with information on the robbery is asked to call the Racine Police (262) 635-7756, or Racine Crimestoppers, (262) 636-9330.

One of Illinois’ best auto body repair education programs soon will get even better, after Waubonsee Community College’s program became one of four nationwide to secure a $50,000 grant from the Collision Repair Education Foundation.

Undocumented immigrants in Illinois have begun taking road tests to qualify for driver’s licenses, starting a process expected to be closely watched by other U.S. states that are preparing to implement similar laws.

A bill in the Ohio Senate that would require providers of auto mechanical repairs to register with the state, just as collision repair shops must do now, could improve public perceptions of the business and root out participants that don’t belong, its supporters say.