With most automakers offering OEM certification programs for collision repair shops, how does an owner or manager decide which ones to pursue, and how do they maximize their investment in the tools, equipment and training to get them?
Mike Anderson, owner of Collision Advice, is a collision repair industry expert and consultant, as well as the host of a new live podcast, “On the Road with Mike Anderson — Serving Up Collision Advice.”
Anderson recently appeared on The Collision Vision podcast, driven by Autobody News and hosted by Cole Strandberg, to kick off a new series, “Evolution of OEM Certifications,” by providing a master class for shop owners. He discussed why OEM certifications matter, how to get them and how to make the most of them.
Why Consider OEM Certifications?
Anderson, a former shop owner before establishing Collision Advice, said if he were one now, he would “still go all-in on OEM certifications.”
“Claims count is dropping. We hear a lot of shops are really, really slow right now. They don't have a ton of work,” Anderson said.
Becoming OEM-certified allows a shop to develop a collision repair relationship with a local dealership that sells that brand.
“The average dealership runs about 100 cars a day through the service line, 21 days in a month…That's approximately 10,000 cars a year that go through the service line,” Anderson said. “Let's say you could capture just 20% of those 10,000 cars at an average severity [of] $5,000. If you only captured 20%, that would still be around $12 million worth of revenue for your collision repair facility.”
OEMs are also incentivizing certifications with new apps, like one from GM, that helps customers get the repair process started immediately following a crash by showing them certified shops in their area. Anderson said an Asian manufacturer is set to make a similar announcement.
Many European or all-electric makes restrict replacement parts sales to certified shops, Anderson said. “That's kind of like a captured market.”
Another reason is “social proof,” Anderson said, which offers consumers a way to verify why they should trust a brand. Google reviews are one example, but so is being listed on an OEM shop locator, or being able to email a potential customer proof that your shop has met the training or equipment requirements to correctly repair their vehicle.
Anderson said early OEM certification programs, like those from Mercedes-Benz, Audi and Jaguar Land Rover that required technicians to take training and get certified on their welding skills, raised the quality standard across the industry as a whole.
“Had those OEMs not done that…I still think we [would] have an issue with welding in all the shops across the country,” Anderson said. “They set the bar very, very high. And I think that the credit goes to those OEMs that were the early adopters of that.”
Common Misconceptions About OEM Certifications
Anderson said a lot of shop owners have the misconception that “once I get OEM certified, I'm going to see all this work come to my door. I think that's the biggest myth that's out there.”
Most domestic and Asian manufacturers don’t restrict parts sales only to certified repair centers, so those certifications have to be marketed correctly to attract customers, Anderson said.
“If somebody calls and says, ‘Hey, I wrecked my Nissan or my Toyota or my GM,’ the person answering your phone should mention that you're certified,” Anderson said.
“It's making sure that you have those OEM logos on your website,” he said.
A certified shop can’t just rely on a local dealership to refer all of its work; the shop also has to provide a value proposition to the dealership.
“I see some certified shops that have a great relationship with their dealerships. They have an estimator in the service lane, and they speak to them on a regular basis,” Anderson said. “But I see other shops that are certified and the dealership says, ‘Hey, can you get this mirror cover painted for me?’ And it takes them two weeks.
“That dealership’s not wanting complaints, so it's got to be a win-win conversation,” he added.
How to Choose the Right OEM Certifications
Anderson suggested starting with a shop’s paint vendor, most of which can provide data analytics showing which vehicle types are most predominant in the local market.
Shops should also look at their own recent history to figure out the vehicles they have fixed the most in the last five years.
He said European or EV makers might tow a vehicle up to 180 miles to get to a certified shop that can buy restricted replacement parts, so in that case, it might make sense to widen a shop’s “local area” beyond a 25- to 50-mile radius.
Shops also have to figure out how much revenue a certification would have to bring in to recoup potential investments like new tooling or travel for technician training.
“It doesn't make sense for you to invest a lot of money to get certified for OEM brand ‘Y’ if you've only done two last year, right?” Anderson said.
It’s also worth considering where an OEM might be headed. Hyundai and Kia, for example, are getting into the EV space, and might start building delivery vans. “To me that's one that you want to have,” Anderson said.
When purchasing equipment, look for those that have the most OEM approvals. Some OEMs even require purchases from an approved vendor so they can track serial numbers and make sure the proper software is loaded on it.
How to Get into the OEM Certification Game
Anderson said the first thing a shop thinking about pursuing its first OEM certification should do is use a network management tool, like Entegral or OEC, that allows the user to load all of their equipment for analysis of which OEM certifications it might already be qualified for.
Shop owners could also reach out directly to OEC, which “probably manage or oversee the majority of OEM certifications in the country.” Anderson also offered to get any shop owners in touch with OEC.
He said domestic and Asian brands, other than Toyota and Lexus, “are going to probably be some of the easiest to get because they don't necessarily require a specific type of equipment. They just require that the equipment meets certain specifications.”
Once a shop owner knows which certifications make the most sense, they should reach out to the company that manages that OEM’s program to find out tooling and equipment requirements.
Some OEM certifications require sponsorship from a dealership. Most dealerships only sponsor shops in their primary market area, and some OEMs will limit how many certified shops can be in a certain market.
Once those are squared away, “jump on your training,” Anderson said.
“The No. 1 reason why I see shops that start down the OEM path not make it across finish line is because they drag their feet on getting trained, and the OEMs just don't have any patience for that,” Anderson said.
That also positions a shop to be “next in line” if an OEM wants to add another certified shop in that market, maybe because it’s selling more vehicles than before, or an existing certified shop sells to a new owner that doesn’t want to renew it.
Anderson recommended a shop that’s “waiting in line” for a particular OEM certification stay in touch with the OEM or its third-party certification program, but “don’t be a pain in the butt. Don't be demanding, like ‘You need to put me on.’”
Some OEM certification programs can be completed in 90 days, Anderson said. Others can take as long as a year to meet all the training and equipment requirements.
“Generally though, when I see a shop takes a long time to get certified, it's because they are not accelerating their training or they're waiting till the last minute,” Anderson said. “Like, ‘I don't want to purchase the equipment until I get through the training.’ You’ve got to do it with a sense of urgency.”
How to Maximize ROI on an OEM Certification
Anderson reiterated that marketing any OEM certification is key.
Ensure brand logos are embedded in any network management tool — like the “Grow My Network” tool in CCC ONE or Enterprise’s Entegral — that insurers, OEMs or customers might use.
Next, connect with the OEM to make sure your shop has the most up-to-date marketing materials, like logos for the website or signage for the shop.
Make sure your shop shows up on the OEM’s certified shop locator, and any features — like ones to schedule an appointment or request an estimate — link to your shop’s website.
Then, write an announcement that could be posted on social media or sent out through an email campaign or in mailers to local residents. He also suggested taking out an ad in a local publication or paying for a billboard.
Bistagne Bros. Body Shop in Glendale, CA, hosted the Tesla Owners Club of Los Angeles in early 2023 to give them a look at the certified repair shop in action.
Anderson said shop owners could reach out to any clubs in their market for owners of a particular brand to let them know the shop is certified, and to maybe offer to host an open house for club members or even be a guest speaker at a meeting.
Build a relationship with local dealerships that sell the same makes your shop is certified to repair, Anderson said.
“Be consistent in that,” he said. “Don't just go see them one time. Go see them on a monthly basis. Find a way to refer your total loss [customers] to that dealership for referring work to you.”
When he owned a shop, Anderson said he made sure to build a relationship with local dealers’ warranty clerks.
“Understand how warranty claims are processed,” he said. “A lot of people complain and say, ‘Well, that doesn't pay much to paint a hood. It only gives me two hours.’ Well, yeah, but what labor rate can you bill that at? Sometimes there's specific coding when you file warranty claims that can be a really good line of work.”
The Value of Social Proof
Customers have a “trust but verify” mentality, Anderson said. Shop owners can provide that “social proof” that verifies a customer can trust them.
For instance, if a potential customer called his shop, Anderson said they would be offered a choice of a virtual or in-person consultation. “I didn’t use the word ‘estimate,’” he pointed out.
If they preferred the virtual option, he would text them a link to upload photos of the damage. He would also text a listing showing his shop is certified to work on their vehicle.
“I'm going to text that to them and say, ‘I just want to show you that we are one of only 27 shops in the state of Maryland that are certified by Toyota or Lexus.’ And here's where you can see that we're on Toyota’s certified collision center website, so you can validate we are who we say we are.
“[Customers] don't know to go out there and search Toyota certified shops, so I'm going to text them a link,” Anderson said. “I think that builds confidence.”
Shops can also establish themselves as an expert by reviewing the customer’s owner’s manual with them to point out specific repair requirements.
“Ryan Taylor [of BodyShop Booster] said that people are more afraid of making a wrong decision than they are of spending money,” Anderson said. “Convince them you're the right decision.”
Are OEM Certifications Necessary for Every Shop?
For European and EV brands, Anderson said certification is required, but it’s not 100% necessary for domestic or Asian brands like GM or Nissan.
“You have access to the electronic service manual and the procedures that would tell you how to fix the vehicle,” Anderson said. “It makes sense for some people maybe not necessarily to [get certified].
“I think it depends on where you're at in the life cycle of your business. If you're, say, 60 years old and you're like, ‘You know what, man? I only got like another three years left in this business,’ then it probably doesn't make sense for you to go out there and spend a lot of money, investing in a lot of future tooling and equipment just to be in the business another two or three years.
“It may prevent you from fixing some of the newer vehicles, but maybe you just focus on the older car parc,” he added. “I think it depends on your business model.”
Anderson said as recently as three to five years ago, most MSOs were DRP-focused, but a new model has emerged focusing on OEM certifications, like VIVE Collision and Crash Champions’ new Luxe | EV Certified line.
He encouraged all shop owners to attend industry events to get the facts on the future of OEM certifications before making any decisions.
“Make sure it's not an emotional decision, but it's a factual decision and you're talking to a credible source,” Anderson said. “I'm not even saying that's me, but make sure it's somebody credible that's going to shoot straight with you and give you some good information to make the right decision.”
‘On the Road with Mike Anderson’
Strandberg asked Anderson about his new podcast, “On the Road with Mike Anderson — Serving Up Collision Advice,” driven by Autobody News. The monthly show airs live on Facebook, YouTube, Instagram, X and LinkedIn, and is then available on-demand on Autobody News’ YouTube channel.
Anderson said he wants his podcast to showcase what shops around the U.S. are doing right. The first two episodes featured a shop in Rhode Island to talk about helping to pass strong state legislation that supports collision repairers and customers, and one in Tennessee to talk about safety inspections.
“My whole goal of a podcast was not to do something that's pre-recorded, but to do it live where people can actually ask questions during the podcast so we can answer some of their questions or frustrations or what's going on in the industry,” Anderson said.
Anderson encouraged anyone to reach out to him through his website, collisionadvice.com/contact, or through his Facebook and LinkedIn pages.
“I'm willing to help whoever I can,” he said.
