DEKRA is one of the biggest names in certification and inspection for the global collision repair industry.
Christian Ruecker and Gabriel Morley from the company’s North America arm appeared on an episode of The Collision Vision podcast, driven by Autobody News and hosted by Cole Strandberg, to offer a behind the scenes look at the certification process.
ROI for Mass Market OEM Certifications
If there are a lot of a certain mass market OEM’s vehicles in the local market, having that certification could draw in customers, Morley said, making it worth it to invest in the training and tools to achieve it.
To determine if the ROI on a mass market OEM is worth it, analyze your shop’s vehicle mix and then calculate what the total investment would cost per vehicle.
“Then there's a whole set of intangibles that you get from that,” Morley said. “It's the partnership. It's the brand recognition. Maybe it's a direct partnership with a local dealer, beyond just the global brand.”
It’s up to an individual shop owner to determine their top priority, whether it’s growth, hitting a certain dollar amount, or creating brand exposure, Morley added.
Ruecker added that local dealerships, paint vendors or insurance carriers could also help provide data on how many vehicles from its brand are in the local market.
“Combine that with an accident rate and you get an idea of what is your market potential in in a certain area,” Ruecker said.
Technology is increasing on all vehicles, whether mass market or premium, so getting certified also provides more resources to access OEM repair procedures and service bulletins.
“That not only prevents you from doing the wrong repair, but it may also help you in your discussion with the insurance company that needs to pay the bill at the end of the day,” Ruecker said.
How to Leverage an OEM Certification
Once a shop has an OEM certification, it should establish a relationship with the brand’s local field rep, Morley said. “Having that direct line to an OEM rep will maybe allow you to get some of that information a little bit sooner than others,” he said.
Both Morley and Ruecker worked for different automakers before joining DEKRA. Morley said they both “threw out a lot of incentives every month…Being able to have that real time information as soon as possible, and having that good relationship is critical to building out a broader ROI for yourself.”
He said shops should also set up a “regular cadence” with the local dealership’s general manager to demonstrate what the partnership is bringing to the dealership.
“That dealer is going to play a crucial role in your success,” Morley said. “They're also attracting the vehicles and also co-marketing. So once you get that certification, get right back in that in front of that GM at the dealership and say, ‘Look, I've invested, I've got the certification. Now, how do we go tackle this?’”
Parts Restrictions
Morley said a lot of OEMs are restricting parts sales to certified shops. “Almost all OEMs have some form or fashion of restriction,” he said.
“A lot of them are on low-volume specialty vehicles, mainly because it's not the core of their technology. It's a highlight of their technology,” Morley said. “But you're starting to see even the new manufacturers like Rivian or Lucid come into here.”
Some automakers, like BMW, are restricting parts sales on their mass volume vehicles, like its 3 and 5 series.
“I think you'll continue to see [parts restrictions] grow as the technology advances,” Morley said.
Ruecker said automakers are restricting parts to protect both the brand and the repair. “The OEM wants to make sure that only the [shops] that really understand and have the resources get these restricted parts, because they're normally tied to a complex repair that requires certain tools, equipment or specific training,” he said.
Restricting parts also helps OEMs provide an ROI to their shop network, Ruecker said.
However, restricting parts to only certified shops means the OEM needs to manage its certified repair network so a customer doesn’t have to travel 200 miles to get their vehicle fixed, but there also aren’t five certified shops right next to each other, he said.
Dealership Sponsors
Several OEMs require a dealership in a shop’s market to sponsor them for certification, while some require sponsorship from the OEM itself.
“I can't really think of a program that doesn't require some sort of sponsorship involvement at one level or another,” Morley said.
In the past, the conversation with a local dealership was along the lines of “I'm a body shop and I want to become sponsored and I want to do your work,” Morley said. “Now, a lot of that conversation is switching to more of that partnership dynamic.”
OEMs that restrict parts on mass-produced vehicles likely need more than one local certified body shop to handle the amount of repair work in the market, Morley said.
A body shop owner interested in becoming certified can say, “You may have a [dealership] body shop of your own. You may already have a sponsored body shop, but you're going to need more. And let's be on the same team,” Morley said. “How do we take care of all of our shared customers for this brand and act as a team versus shop against shop, trying to vie for that same dealer sponsorship.”
How DEKRA Helps Shops Navigate OEM Certifications
Individual shops often “don’t know where to start,” Ruecker said. “That’s where we’re more than happy to help, to just have a conversation and walk them through what's important.”
It often starts with just talking to local dealerships about the market and then looking at the repair mix in the shop.
DEKRA can perform a pre-assessment of a shop’s existing tools, equipment and training, and compare it against OEMs’ standards to suggest which certifications to pursue if it makes sense to do so based on the local market.
Ruecker said it is important to remind shops of their place in the OEMs’ brand.
“So often they think, ‘We are just the small body shop around the corner that does the work,’” he said. “But ultimately, they are an extension of an OEM. They are part of the customer journey. So if a person has an accident, which is the worst situation, you are the one that helps them out of this. And if you do a really good job, a premium brand may get the customer back and sell the next vehicle again to them. If the customer journey is really bad, they may not only switch their insurance company, but also the vehicle brand.”
Shops trying to build relationships with dealerships should remind them of that too, Ruecker said.
“Say [to dealers], ‘Hey, I not only repair vehicles, I not only buy parts, but I'm an extension of your brand, Mr. Dealer, and if I have total losses, I can bring them back to your new car sales department,” he said.
Certification Process Start to Finish
Strandberg asked Morley and Ruecker to walk through the steps of BMW’s certification process, as an example.
Morley said the first step is linking up with a dealership. Depending on the dealership, that point of contact may be a parts manager or service manager.
Once a dealership agrees to sponsor a shop, there are steps at the regional level to make sure the shop is in the correct primary market area (PMA) and receive approval.
After that, the shop gets a welcome packet outlining the criteria.
“You're in the program now, and you're going to either get set up for a pre audit or an audit and you’ve got to start checking off those boxes,” Morley said.
Certification requires specific tools and equipment, as well as employee training. “Every job role has a set of training courses they need to complete, and a certain percentage of that has to be done to be considered either provisional or fully certified,” Morley said.
The dealership plays a role in enrolling employees in some training, making the partnership even more crucial for a shop.
Once that’s done, the shop is audited again.
If the shop passes, it gains access to repair procedures and marketing materials, as well as a plaque to hang on the wall.
From there, it’s up to the shop to maintain certification as requirements evolve, Morley said.
“People are checking in on you to make sure that you're staying up with all the new criteria,” he said.
He suggested shop managers set up meetings with representatives from both the dealership and the field to make sure they are on top of coming changes.
BMW has an annual conference for its certified repair network. Morley suggested attending that if possible. “There's so much to gain,” he said, from networking with other shops to participating in training sessions and hearing directly from OEM representatives where the brand is headed.
Ruecker said BMW is one OEM that will also host a workshop at a certified shop for the local market’s insurance adjusters to educate them on the brand’s latest models and repair procedures.
“There's a lot of communication from all programs that come out once you've been certified, but it's really up to the shop to make the most of it,” Morley said.
Pitfalls of OEM Certification to Avoid
Ruecker said it can be difficult to keep up with training as vehicles evolve, particularly those made by a technology-driven brand like BMW.
“There's constant updates based on new identified repair procedures, new technology coming with new models, where new training comes out that is conducted by BMW directly,” he said. “To keep up with that with as a shop is definitely not easy, but again, it comes down to the shop to be proactive, to look out for what's being communicated, what's coming down the pipe.”
Shops also have to keep up with new tool or equipment requirements.
“Most OEMs are very cognizant of making sure that that there are specifications on tools and equipment that can be maybe also utilized by other OEMs or by other shops that are repairing other OEMs,” Ruecker said. “But there are special tools that are just for that specific brand that you need to buy, and that can sometimes cost a lot of money. And that's also something that people need to keep in mind.”
Morley said most OEMs will let certified shops know in the third or fourth quarter about big investments that may be required in the coming year.
Customer expectations will also be higher when dealing with a certified shop, Morley said.
“Now customers are coming to you as an extension of the brand and of the dealership, and the expectation is high,” he said.
“When you go in for an oil change with a premium brand, you've got Wi-Fi, you've got snacks, you've got loaner cars of the same brand. And that's for a maybe $100 to $200 oil change,” Morley said. “Then I get a $30,000 estimate at a collision shop, and what is my experience like?”
He recommended certified shop operators “mystery shop” dealerships to see what customers will expect of the collision repair experience, down to if there’s a brand logo on the pen used to sign paperwork.
“They craft that brand to be a part of someone's lifestyle, and now you're an extension of that team,” Morley said. “A lot of shops don't necessarily spend all the time on understanding where the expectation aligns.”
Missteps When Pursuing OEM Certifications
Morley said when talking to dealerships about sponsorship, a lot of shops “don't give themselves enough credit for the role that they will play upon completing certification. I think that a lot of shops sell themselves short in that pitch.”
Ruecker said some shops think once they are certified, they’re done, but “the race is just getting started. There's continuous learning. There's always updates that you need to keep up with. Some programs have two audits a year, while some others maybe have an audit every other year.”
Preparing for Audits
Strandberg said he imagined audits can be stressful for a certified shop, and asked Ruecker and Morley for tips to prepare.
Morley said most OEM programs will send an email letting shops know what to expect during the inspection.
“Reading those not the day of or the day before, but maybe when you get it is probably one of the easiest things that a shop can do,” he said.
Morley also suggested putting required equipment on a depreciation schedule to plan ahead for required reinvestment when new technology is released, and building SOPs to address training requirements, including schedules and how other employees will backfill for another when they are away to attend in-person classes.
“Build that into your culture. That's probably the best thing I can say,” he said.
Preparing for the Future of OEM Certifications
Ruecker said OEMs want to bring added value to certified shops as they look for new ways to bring damaged vehicles to those shops, and to incorporate insurance products into their financing and leasing options.
“I think that's something that we will see is going to increase,” he said.
Morley said OEM certification program administration will get more sophisticated.
“Right now you're going to see a transition period of where the programs are being administered through software platforms, rather than just, ‘Hey, send me an email and we'll take care of it through spreadsheets and emails,’” he said. “I think the liability is increasing. And spreadsheets and emails really is not going to help in that situation.”
New platforms can use data and AI to run program administration more effectively, with better accountability, Morley said.
Taking the First Step
Strandberg asked Morley and Ruecker to wrap up the conversation with advice for a shop owner looking to take the first step toward their first OEM certification.
“Find the right certification for you, whether it's matching your growth target with the revenue, if it's a passion of yours and it makes sense, but find the right certification for you,” Morley said. “The days of just stacking certifications on a wall are over. There's a lot to commit to.”
Ruecker said DEKRA has a vision to bring together the collision repair industry to collaborate on a single platform.
“You still have the various players competing against each other, even though they could all pull a little bit more in the same direction to support a mutual customer,” Ruecker said. “If we look at all of the programs, at the tools and equipment that are required, that could be more cohesive. I think that would help the entire industry.”
Abby Andrews