Autobody News June 2011 Northeast Edition

by David M. BrownSpecial to Autobody News

New York is well represented by re-gional and statewide collision associ-ations. The largest is the Centereach,NY-based New York State Auto Colli-sion Technician Association with1,500-plus members, including smalland large shops, industry-related busi-nesses and 10 regional collision-repairassociations.

These regional affiliates repre-sent shops in Greater Binghamton;Syracuse; Rochester/Buffalo; theCapital District, in the Albany area;Rome-Utica; Greater Newburgh; andthe Hudson Valley.

Another NYSACT affiliate, TheWestchester-Putnam-Rockland AutoBody Association, also serves

Duchess County and the Bronx. Twoothers are the Long Island Auto BodyRepairmen’s Association (LIABRA)and the Autobody Craftsmen’s Guildcovering the five boroughs of NewYork City.

Founded in 1982, NYSACT isguided by Executive Director EdKizenberger and an elected board ofdirectors led by a president, currentlyMike Orso, owner of Nick Orso’sBody Shop and Service Center inSyracuse. Staff also includes legalcounsel and a legislative lobbyist.

The organization influences andeffects state legislation through itslobbyist as well as with grass rootsapproaches such as members’ lettersand e-mails to representatives andother public relations efforts. “We

In a bid to capture more business fromcustomers who shop online, AllstateCorp. has agreed to buy two popularonline insurance sellers—Esuranceand the associated site, Answer Fi-nancial. Allstate will pay a total priceof about $1 billion– $700 million plusthe tangible book value of the twofirms acquired at close.

Esurance is the third-largestprovider of online auto insurancequotes through its website and a 24/7call center. It sells in 30 states. Overthe past five years, Esurance has morethan doubled policies in force andgrown premiums on average 20 per-cent per year, according to the com-pany, which advertises heavily. It also

sells other personal lines coverages.Answer Financial provides auto

insurance quote comparisons from 20brand-name auto insurance companiesto buyers in all 50 states. The carriersit represents include Esurance, Trav-elers, Progressive, Safeco, Met LifeAuto & Home, Unitrin and The Hart-ford. In July, it reported having324,000 policies in force.

Alltstate is buying the firms fromWhite Mountains Insurance Group,Ltd., a Bermuda-domiciled financialservices holding company with inter-ests in property/ casualty insurance andreinsurance, including OneBeacon.

COLUMNS in this issue...Franklin — Focusing Marketing Efforts . . . . . . . . . . . . . . . . . . . . .p. 14Danalevich — Total Loss Fees Are Profits to be Gained . . . . . . .p. 18Yoswick — Industry Trends and Changes in Future Vehicles . . .p. 22Espersen — The Value of Service Repair Information . . . . . . . . .p. 28Weaver — Shift Happens: The Story of Three Transmissions . . .p. 29Insurance Insider — Allstate Deserves Credit for DRPs . . . . . . .p. 30Chess — Getting OSHA-Compliant Part 2 . . . . . . . . . . . . . . . . . . .p. 36Amaradio — The Good Old Days . . . . . . . . . . . . . . . . . . . . . . . . . .p. 42Evans — Repairing Quarter Panel, Bumper, and Molding . . . . . .p. 48

REGIONAL STORIES in this issue...New York is in an Auto Accident Fraud Crisis . . . . . . . . . . . . . . . .p. 4Mercedes-Benz USA Ranked One of Best Places to Work in NJ . .p. 42,500 Drivers Cited in DE Since Cell Phone Ban Began . . . . . . . .p. 8Philly Shop Owner, Lawyer, Appraisers, and Cop Charged . . . . .p. 9New Jersey DOBI Releases Complaints Against Insurers . . . . . .p. 10

Tornadoes ripped across the south-east portion of the US brought de-struction in April and May. States

hardest hit were Alabama, Missis-sippi, Tennessee, Georgia, Virginia

and Arkansas, and now Missouri. Al-abama was the hardest hit in Aprilwith over half of the fatalities. As ofend of April 28 the confirmed deathtoll was at least 250, but that will riseas of the May 22 Joplin monster tor-nado.

“It looked like it was probably amile wide,” Birmingham, AL, MayorWilliam Bell said of the funnel cloudto CNN. Tuscaloosa, AL, mayorWalter Maddox predicted it wouldtake months for the town to recover.

President Barack Obama hadalready expressed condolences byphone to Alabama Gov. Robert Bent-

Tornadoes Devastate South, Halting LocalAutomakers’ Plants, Inundating Insurers

Allstate Will Buy Esurance and Answer Financial

See Tornadoes, Page 50

See NY Collision Assns, Page 13

Array of Collision Associations ServeNew York Regionally and Statewide

See storm video at autobodynews.com

See Allstate Buys Esurance, Page 32

Shop and ProductSHOWCASE

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Publisher & Editor: Jeremy HayhurstGeneral Manager: Barbara DaviesAssistant Editor: Erica SchroederContributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan EspersenJanet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans,Ed Attanasio, Chasidy SiskAdvertising Sales: Joe Momber, Sean Hartman (800) 699-8251Sales Assistant: Kristy MangumArt Director: Rodolfo Garcia

Serving New York, New Jersey, Pennsylvania, Delaware and adjacent metro areas,Autobody News is a monthly publication for the autobody industry. Permission to reproducein any form the material published in Autobody News must be obtained in writing from thepublisher. ©2011 Adamantine Media LLC.

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Amato Agency . . . . . . . . . . . . . . . . 22APRO Equipment . . . . . . . . . . . . . . . 4Autoland Scientech. . . . . . . . . . . . . 29BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5BMW Wholesale Parts Dealers . . . . 40Burdick Chevrolet . . . . . . . . . . . . . . 25Classifieds. . . . . . . . . . . . . . . . . . . . 50Chief Automotive. . . . . . . . . . . . . . . 21Circle BMW . . . . . . . . . . . . . . . . . . . . 8Equalizer Industries . . . . . . . . . . . . 32Ford Wholesale Parts Dealers . . . . 30Franklin Sussex Automall . . . . . . . . 12Fred Beans Parts . . . . . . . . . . . . . . 52Fuccillo Auto Group. . . . . . . . . . . . 6-7Fuccillo Kia . . . . . . . . . . . . . . . . . . . 14Global PDR . . . . . . . . . . . . . . . . . . . 31GM Wholesale Parts Dealers . . . . . 35Hyundai Wholesale Parts Dealers . 37Jaguar Wholesale Parts Dealers. . . 44Kia Motors Wholesale PartsDealers . . . . . . . . . . . . . . . . . . . . 43

Koeppel VW-Mazda . . . . . . . . . . . . 13Lazare Kia . . . . . . . . . . . . . . . . . . . . 19Lexus Wholesale Parts Dealers . . . 40Manhattan Automobile Company. 16-17Maxon Mazda-Hyundai. . . . . . . . . . 18

Mazda Wholesale Parts Dealers . . . 39Mercedes-BenzWholesale PartsCenter. 9Mercedes-Benz Wholesale PartsDealers . . . . . . . . . . . . . . . . . . . . 32

Metric Subaru . . . . . . . . . . . . . . . . . 34MOPAR Wholesale Parts Dealers . . 23NACE / CARS Registration . . . . . . . 51Nissan/Infiniti Wholesale PartsDealers . . . . . . . . . . . . . . . . . . . . 43

Nucar Mazda. . . . . . . . . . . . . . . . . . 11Porsche Wholesale Parts Dealers . 45PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2Prince & Portnoi . . . . . . . . . . . . . . . 34Quality Stainless Products . . . . . . . 10SATA Spray Equipment . . . . . . . . . 24Scion Wholesale Parts Dealers. . . . 46Scorpion Coatings . . . . . . . . . . . . . 33Stadel Volvo . . . . . . . . . . . . . . . . . . 36Subaru Wholesale Parts DealersDE, NJ, PA . . . . . . . . . . . . . . . 26-27

Subaru Wholesale Parts Dealers . . 42Thompson Organization . . . . . . . . . 15Toyota Wholesale Parts Dealers . . . 38VIM Tools. . . . . . . . . . . . . . . . . . . . . 48Volkswagen Wholesale Parts Dealers. 5Volvo Wholesale Parts Dealers . . . . 20

Inde

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REGIONAL2,500 Drivers Cited in DE Since Cell Phone

Ban Began . . . . . . . . . . . . . . . . . . . . . . 8AASP-PA Golf Classic to be Held June 10

at Honey Run. . . . . . . . . . . . . . . . . . . . 12Array of Collision Associations Serve

New York Regionally and Statewide . . . . 1Auto Insurance Fraud in NY Remains at

Crisis Levels, ‘Fraud Tax’ Exceeds$200 Million for Second Year . . . . . . . . 8

Brooklyn DA Takes on City’s InsuranceFraud. . . . . . . . . . . . . . . . . . . . . . . . . . 10

DOBI Releases List of Complaints AgainstNJ Insurers . . . . . . . . . . . . . . . . . . . . . 10

Mercedes-Benz USA Ranked One of BestPlaces to Work in NJ . . . . . . . . . . . . . . . 4

New Jersey Body Shop Owner Sentencedto Three Years . . . . . . . . . . . . . . . . . . . 12

New York is in an Auto Accident FraudCrisis, NY Insurance Association toTestify at Senate Hearing . . . . . . . . . . . . 4

NJ Man Sentenced for Setting Aunt’s Caron Fire . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Northeast Insurers Say Winter StormsHurt Q1 Profits . . . . . . . . . . . . . . . . . . 10

NY Senators Push to Toughen Texting Laws . 8PA Moves Graduated Licensing Proposal

Forward . . . . . . . . . . . . . . . . . . . . . . . . 8Philadelphia, PA, Body Shop Owner,

Manager, Lawyer, Appraisers, andCop Charged with Insurance FraudScheme. . . . . . . . . . . . . . . . . . . . . . . . . 9

Tornadoes Devastate South, Halting LocalAutomakers’ Plants, Inundating Insurers. 1

COLUMNISTSAmaradio - The Good Old Days . . . . . . . . 42Chess - Getting OSHA-Compliant on

Signage, Electrical and Power Tools . . . 36Danalevich - Total Loss Fees Are Profits

to be Gained, Not Given Back. . . . . . . . 18Espersen - The Value of Service Repair

Information . . . . . . . . . . . . . . . . . . . . . 28Evans - Repairing Quarter Panel, Bumper,

and Molding: No Time, No Money . . . . 48Franklin - Focusing Marketing Efforts on

a Narrow Demographic Yields MoreResults . . . . . . . . . . . . . . . . . . . . . . . . 14

Insurance Insider - Allstate, Founder ofDRPs, Deserves Some Credit forImproving Repair Industry . . . . . . . . . . 30

Schroeder - The Body Shop Garage Opensin Woodward, Oklahoma . . . . . . . . . . . 34

Sisk - Great Bear Auto Teaches CustomersWhat They “Auto Know”. . . . . . . . . . . . 35

Sisk - Keenan Cares About Cars, Charityand Environment, Part 2 . . . . . . . . . . . 47

Weaver - Shift Happens: The Story ofThree Transmissions and a LimpKia SUV. . . . . . . . . . . . . . . . . . . . . . . . 29

Women’s Industry Network ConferenceHeld in San Diego . . . . . . . . . . . . . . . . 44

Yoswick - Industry Trends and Changes inFuture Vehicles at WIN Conference. . . . 22

NATIONALAASP Awards Grants to NABC and Auto

Education Institute . . . . . . . . . . . . . . . . 14AkzoNobel to sell all 40 Company-owned

Distributors of Sikkens, Lesonal, U-Tech,to LKQ Corp. . . . . . . . . . . . . . . . . . . . . 25

Allstate Will Buy Esurance and AnswerFinancial . . . . . . . . . . . . . . . . . . . . . . . . 1

Americans Oppose Accident ResponseFees . . . . . . . . . . . . . . . . . . . . . . . . . . 39

ARA, Congress to Ensure Flood DamagedVehicles Don’t Enter Used Market . . . . 46

ASA Announces its 2011 GovernmentAffairs Committee . . . . . . . . . . . . . . . . 20

ASA Announces its Collision Operations2011 Committee . . . . . . . . . . . . . . . . . 20

ASA Discusses New Refinish Regulationwith EPA Officials. . . . . . . . . . . . . . . . . 20

Auto Glass Replacement Safety StandardsCouncil Promotes Fixing DamagedWindshields. . . . . . . . . . . . . . . . . . . . . 49

Boyd Group Reports Strong 1Q Numbers,Sales Up 48.5% . . . . . . . . . . . . . . . . . 50

CCC Announces 2011 Crash Coursein April. . . . . . . . . . . . . . . . . . . . . . . . . 21

Chrysler Will Repay All Govt Bailout Loansthis Year . . . . . . . . . . . . . . . . . . . . . . . 39

CIF Makes Donation to Japan TsunamiRelief. . . . . . . . . . . . . . . . . . . . . . . . . . 21

Farmers Insurance’s New DRP ChangesUpset Some Owners . . . . . . . . . . . . . . 25

Fix Auto USA Adds Five Franchise LocationsIn Q1 2011 . . . . . . . . . . . . . . . . . . . . . 20

Ford Has Located Replacement for Merck-Supplied Japanese Paint Component . . 43

GA Auto Repair Tax Bill Still Alive in House . 50GEICO & CREF Award Grants to Four Auto

Body Students . . . . . . . . . . . . . . . . . . . 33Gerber Collision and Glass Acquires

Georgia Shop. . . . . . . . . . . . . . . . . . . . 24GM to Invest $131 Million at Bowling

Green, KY, Plant . . . . . . . . . . . . . . . . . . 24Gunder Supporters Release Infinity

Insurance’s Voice Recordings, InsurerApologizes. . . . . . . . . . . . . . . . . . . . . . 40

Infinity Insurance Apologizes for Gunder’sAuto Center Customer Recordings . . . 41

National Average for Body and Paint LaborRates Up Only Modestly Since 2006 . . 28

SEMA Show Registration for Exhibitors isup Over Last Year. . . . . . . . . . . . . . . . . 25

Sherwin-Williams’ Next Ecolean Workshopin Toronto, June 22 . . . . . . . . . . . . . . . 33

State Farm to Phase out 24 Field Officesin Midwest. . . . . . . . . . . . . . . . . . . . . . 33

Toyota Profits Dive in 4th Qtr After SevereSupply Problems . . . . . . . . . . . . . . . . . 33

Xirallac® Pigment Plant to Relocate fromJapan to Germany Following Tsunami . 41

Contents


Immediate reform of New York’sfraud-riddled no-fault automobile in-surance system is needed to stop crim-inals from cheating the state’s citizensout of hundreds of millions of dollarsa year, says the New York InsuranceAssociation, Inc. (NYIA).

In testimony prepared for deliv-ery April 26 at the New York StateSenate Insurance Committee regard-ing no-fault auto insurance fraud,Ellen Melchionni, president of NYIA,identifies how the broken no-fault autolaws are forcing New Yorkers to pay-ing for the fraudulent activities ofcriminals. Costs are spiraling out ofcontrol because bogus medical millsand unscrupulous medical providers,predominantly in the New York Cityarea, are billing for treatments thatwere never performed, unnecessary orexcessive.

“Criminals are committing ram-pant fraud, imposing a ‘fraud tax’ onhonest, hardworking New Yorkers,”Melchionni said. “Meaningful, com-prehensive reform of the laws is nec-

essary to fix the broken system thatcriminals are blatantly exploiting fortheir personal gain. There is not a sil-ver bullet to solve this problem. Autoaccident fraud is a moving target.The state needs to be vigilant infighting this vast problem and crack-ing down on criminals who have cre-ated a ‘big business’ of fraud to cashin at the expense of New York resi-dents.”

“NYIA supports the substantivereform introduced by Sen. James Se-ward and Assemblyman JosephMorelle, S2816A/A6286,” Mel-chionni said. “This bill contains nu-merous remedies including givinginsurance carriers adequate time to in-vestigate fraud, encouraging efficientand fair settlement of disputes and cre-ating tougher penalties for fraud.”

“NYIA also supports two billsthat would help stop staged auto acci-dents,” Melchionni said. “We believethe majority of staged accidents occurduring the first 60 days of a newly is-sued policy. Sen. Martin Golden and

Assemblyman Carl Heastie have in-troduced S4507/A6346A, whichwould allow insurers to cancel newpolicies purchased with phony checksor credit cards—minimizing the op-portunity for fraud. Another piece oflegislation, S1685 sponsored by Sen.Seward, was passed in the Senate andnow needs to be taken up in the As-sembly by passage of A6177 spon-sored by Assemblyman David Weprin,to create a necessary deterrent forcriminals who prey on innocent mo-torists by staging car crashes.”

“If there is not comprehensive re-form, we are concerned that the pres-ent crisis will become progressivelyworse, leading to a system that is notonly broken, but beyond repair,” Mel-chionni said.

The New York Insurance Associ-ation (NYIA®) is a state trade associa-tion that has represented the propertyand casualty insurance industry formore than 125 years.

For more information visit:www.nyia.org.

New York is in an Auto Accident Fraud Crisis, NYInsurance Association to Testify at Senate Hearing

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Mercedes-Benz USA (MBUSA) an-nounced April 27 that for the secondconsecutive year, it has been rankedone of the “Best Places to Work inNew Jersey” according to NJBIZMagazine. This award was designedto identify, recognize and honor thebest places of employment in NewJersey, benefiting the state’s econ-omy, its workforce and businesses.

The award program, created in2005, is produced by NJBIZ andsponsored by Gibbons, P.C. andNovo Nordisk and is in partnershipwith Garden State Council SHRM,The New Jersey State Chamber, Em-ployers Association of New Jerseyand the New Jersey Economic De-velopment Authority.

In its second year as an entrant,MBUSA’s 2011 ranking of No. 6—up from No. 7 last year—is the soleautomaker on the list and is part ofthe large sized category (more than250 employees).

“MBUSA has a long tradition ofdoing business in the Garden Stateand we thank our associates for theircommitment and dedication that hasled to continued success—both hereat our headquarters in Bergen Countyand our regional offices in Parsippanyand Robbinsville,” stated Ernst Lieb,President and CEO, MBUSA. “Toachieve this accolade in a recovering

economy is a true statement of howunified we are, working together toinspire our entire organization anddeliver the dream that customers as-sociate with the Mercedes-Benzbrand.”

The Best Places to Work in NewJersey program is made up of 70companies split into two groups: 29small/medium-sized companies (15-249 employees) and 41 large-sizedcompanies (more than 250 employ-ees).

To qualify, companies had to ful-fill the following eligibility require-ments:•Have at least 15 employees in NewJersey;•Be a for-profit, not-for-profit or gov-ernment entity;•Be a publicly or privately held busi-ness;•Have a facility in New Jersey;

Companies from across the stateentered the two-part process to deter-mine the 70 Best Places to Work inNew Jersey. The first part consistedof evaluating each nominated com-pany’s workplace policies, practices,philosophy, systems and demograph-ics. The second part consisted of anemployee survey to measure the em-ployee experience. For more infor-mation please visit:www.njbiz.com/events.

Mercedes-Benz USA Ranked One of Best Places to Work in NJ

A Vineland, N.J., man was sen-tenced to state prison for five yearsafter being convicted of setting hisaunt’s automobile ablaze so thatshe could collect insurance pro-ceeds. Kristopher Wynder, 21,pleaded gulity to second-degreeconspiracy to commit aggravatedarson Feb. 16 before SuperiorCourt Judge Darrell Fineman, ac-cording to the New Jersey Attor-ney’s Office.

Wynder admitted that be-tween July 28 and Aug. 4, 2008, heconspired with his aunt, CherylWynder, to obtain her 2002 FordExplorer, take it to a remote loca-tion in Vineland, and set fire to thevehicle so that Cheryl Wyndercould collect insurance proceedsfor the vehicle, that she reportedstolen. Wynder admitted that heentered into the conspiracy sincehis aunt was behind in her pay-ments. Wynder admitted he wasalso paid $500. Cheryl Wynderwas fined $13,531.

NJ Man Sentenced forSetting Aunt’s Car on Fire



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Allstate respondedApril 26 to the Insur-ance Information Institute’s (III) an-nouncement that fraud and abuse inNew York State’s no-fault auto insur-ance system remains at crisis levels. IIIalso revealed the estimated ‘fraud tax’that NewYorkers paid in 2010 was $204million—an amount exceeding $200million for the second consecutive year.

The New York State Senate In-surance Committee is holding a hear-ing on April 26 to examine the issuemore closely.

Krista Conte, New Yorkspokesperson for Allstate InsuranceCompany, said in response to the IIIannouncement: “We agree with the In-surance Information Institute that thescale of fraud and abuse in New YorkState’s no-fault auto insurance systemtoday has reached crisis levels. Notonly is no-fault fraud (auto accidentfraud) costing New York consumersand insurers hundreds of millions ofdollars, it puts drivers at risk.“Those who would commit this typeof crime are taking advantage of thebroken no-fault system and they areorganized, calculating and part of abig business. In essence, the perpe-trators of this crime are imposing a‘fraud tax’ on honest, hard working

New Yorkers by gaming the auto in-surance system.“Without the support of lawmakers,incidents of fraud will continue to in-crease. Responsible citizens are thevictims. We urge lawmakers to enactcomprehensive, meaningful no-faultinsurance reform that puts citizens ofNew York first.”

Auto Insurance Fraud in NY Remains at Crisis Levels,‘Fraud Tax’ Exceeds $200 Million for Second Year

The Pennsylvania House Trans-portation Committee gave its ap-proval on May 3 to House Bill 9,which would impose stricter drivingand licensing restrictions for 16- and17-year-old drivers.

The state currently requiresdrivers under the age of 18 who aretesting for a junior driver’s licenseto have 50 hours of supervised“practical driving experience.” Thebill would bump up that amount to65, with at least 10 of those hoursbeing at night and with at least fivebeing in “inclement weather.”

The bill would also put passen-ger restrictions on licensed youngmotorists.

If the bill is ultimately signedinto law, these drivers would not beable to have more than one passen-ger under the age of 18 with them inthe car without parental approval.

Please visit www.autobo-dynews.com for background on thisprogram.

Pennsylvania Moves GraduatedLicensing Proposal Forward

Texting while driving laws in NewYork may get an upgrade in thecoming weeks. Senate Republicanshave stated they will push legisla-tion that would allow police to stopand ticket motorists solely for tex-ting while driving.

Using a portable electronic de-vice while at the wheel of a movingvehicle in New York is currently asecondary offense, which meansthat a person can’t be pulled over forusing the device alone. Instead, itmust be tacked on to another pri-mary offense.

Legislation sponsored by adozen Republicans, who currentlyhave majority control of that chamber,would upgrade it to a primary offense.

A group of Senate Democratshave also introduced a similar bill. Acompanion measure is pending inthe Assembly.

Please visit www.nysenate.govfor more information.

NY Senators Push toToughen Texting Laws

More than 2,500 drivers have beencited since Delaware’s hands-freecell phone law went into effect at thebeginning of 2011, according to theDelaware Office of Highway Safety.Office spokeswoman Alison Kirksays more than 350 people were is-sued cell phone citations in one dayduring a statewide crackdown onApril 21. She says there have been30 crashes involving cell phones asa distraction since the ban went intoeffect.

Cell phone users caught talkingon their phones can expect a $50ticket for their first offense. Subse-quent offenses can result in finesfrom $100 to $200.

2,500 Drivers Cited in DESince Cell Phone Ban Began

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Philadelphia, PA, Body Shop Owner, Manager, Lawyer, Appraisers,and Cop Charged with Insurance Fraud SchemeEleven people have been arrested inconnection with an insurance fraudscheme allegedly involving Univer-sity Collision Centers of Philadel-phia.

A Philadelphia police officer, apersonal injury lawyer, seven autodamage appraisers and the ownerand the manager of a Philadelphiacollision repair shop have beencharged in an insurance fraudscheme prosecutors say netted themmillions over four years, accordingto reports made by Joseph A. Slo-bodzian, of the Philadelphia In-quirer.

Prosecutors are alleging a fork-lift was modified by attaching one ofthree types of car bumpers to thetongues to create a variety ofscrapes, dents and tears on automo-biles. City prosecutors allege thatUniversity Collision workers wouldthen report the damages to insurancecompanies for inflated payouts.

Philadelphia District AttorneySeth Williams and Deputy Police

Commissioner Richard Ross an-nounced the filing of felony chargesagainst 11 people, who allegedlyworked together to file numerousfraudulent insurance claims, at aCenter City news conference.

The charges are the result of alengthy undercover probe by theDA’s Insurance Fraud Unit (IFU)with assistance from Nationwide In-surance Co., GEICO Insurance Co.and the National Insurance CrimeBureau.

“This is not a victimless crime,”Williams said. “All Philadelphiaconsumers are affected.”

Among the 11 charged as a re-sult of the 13-month undercover in-vestigation of University CollisionCenters by the DA’s Insurance FraudUnit were:● Philadelphia police officer GaryCottrell, 44, a 15-year veteran of theforce assigned to the 14th District inGermantown and Chestnut Hill. Cot-trell allegedly was a “wreck chaser”who traveled throughout the city in

uniform to direct accident victims toUniversity Collision. A spokes-woman for the police noted that Cot-trell had been suspended for 30 dayswith intent to dismiss. Cottrell facesa maximum of 152 years incarcera-tion. Deputy Police CommissionerRichard Ross said corrupt officersare a minority of the 6,000-memberdepartment: “It’s very sad that all theother men and women on the forcehave to deal with this.”● Michael Wolf, 52, ofPhoenixville, Chester County, alawyer with a Philadelphia practice.Wolf allegedly advised UniversityCollision’s owner in the fraud andalso filed several phony personal in-jury claims with them. Wolf is alawyer who has been licensed inPennsylvania since 1988, and worksat the firm of Kotsopoulos & WolfP.C. They have offices in King ofPrussia and Cherry Hill. He al-legedly faces 103 years in prison.● Edward Hildebrandt, 41, ofPhiladelphia, owner of University

Collision, with operations in Gray’sFerry and Manayunk.● David Coleman, 41, of ChaddsFord, Chester County, identified asmanager of University Collision.

The seven vehicle damage ap-praisers included four from Philadel-phia: Arthur Juliano, AddaieAmankwaaw, Cheryl Stanton, andSteve Wilkinson. The others werefrom South Jersey: Dave Robertsonand John Howell, both of CherryHill, and Richard Reilly of MullicaHill,Vicki Markovitz, an AssistantDistrict Attorney, noted that the dam-age appraisers were independent andreviewed claims for most major in-surance companies.

All the defendants ware chargedwith corrupt organization, dealingwith unlawful proceeds, insurancefraud, theft, and conspiracy. Exceptfor Wolf and Coleman, all were alsocharged with bribery.

Williams said his office wascontacted in February 2010 by StateFarm Insurance Co. about the opera-

tions at University Collision Cen-ters.

The undercover investigationshowed that the collision centerswere “enhancing and creating dam-age” to vehicles brought to them forrepair to justify inflated insuranceclaims, Williams said.

The University Collision opera-tion worked with the appraisers, whoallegedly inflated damage appraisalsin exchange for cash kickbacks,Williams said.

University Collision Center re-mains open, with Augenbraun sayingthat it would likely continue in busi-ness during the prosecution and thetrial in order to maintain some assetsfor victim restitution. He also saidthe company is being monitored, andthat the forklift and other deviceswere seized by police.

The insurance fraud unit is saidto have launched an undercover in-vestigation which the help of adecoy car provided by NationwideInsurance and National InsuranceCrime Bureau, and a decoy insur-ance policy provided by GEICO.

Assistant District Attorney

David Augenbraun, of the Insur-ance Fraud Unit, said Cottrell al-legedly pocketed 20-percent cashkickbacks for each customer he di-rected to University Collision andalso filed false damage claims forsome of his own cars. Although in-vestigators are still working to esti-mate the amount of the operationsillegal proceeds, Augenbraun saidsome of the kickbacks paid were ashigh as $1,000.

Augenbraun noted that forth-coming arrests are likely, and willprobably include customers whoknowingly allowed false claims tobe filed. “The customers may notfeel like victims,” Augenbraun said,“but if they are caught, they will bein very substantial trouble.”


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Heavy winter storm activity hastaken its toll on motorists and home-owners in the northeastern UnitedStates. Pennsylvania-based insurerHarleysville said the effects of severewinter storms over the area in the lastfew months will hurt its fourth quar-ter profits.

“We experienced unusually se-vere winter weather throughoutmuch of the Mid-Atlantic and North-east, especially in New England andNew York,” said CEO MichaelBrowne, according to InsuranceJournal. “The number of events—coupled with their frequency andcloseness to one another in time—combined to produce elevated catas-trophe and non-catastrophe claimsactivity throughout commercial andpersonal lines. We saw an abnormal

increase in water damage, ice dams,roof collapses and fire losses in prop-erty, automobile claims, and weather-related casualty losses.

“This extreme weather resultedin significant disruption and financialloss for a large number of our policy-holders,” he added.

Catastrophe losses will reduceoperating income by $0.21 per share.Harleysville said its combined ratiowill reflect significant winter lossesnot meeting the catastrophe defini-tion, as well as 4.5 points of catastro-phe losses for the quarter. In the samequarter, one year-ago, Harleysvillehas statutory combined ratio of 107.8,which included 10 points of catastro-phe losses. Both years’ catastrophelosses exceed the company’s long-term average.

Northeast Insurers Say Winter Storms Hurt Q1 Profits

Brooklyn DA Takes on City’s Insurance FraudBrooklyn DA Charles Hynes an-nounced on May 3 that he would backefforts to stop the $200 million-a-yearauto-insurance fraud “industry” in thestate of New York.

Fraudulent accident claims oftenoccur when someone stages a phony acci-dents that leave bystanders badly injured.

“The ‘fraud industry’has ballooned

into a multimillion-dollar-a-year crimi-nal enterprise,” said Hynes, standingwith state lawmakers sponsoring a toughanti-insurance-fraud bill, according toreports made by the New York Post.

New Yorkers pay one of the highestauto-insurance premiums in the nationand accident fraud has added nearly $1billion in premium charges since 2005,

according to insurance executives.Fraudulent insurance claims leave

all claimants footing the bill for thesefalse pay-outs the insurance companypays to criminals.

Even if caught, most consumersand insurance companies have a diffi-cult time ever seeing the fraudulentlyobtained money returned.

The state Department of Banking andInsurance published their annualcomplaint list again in April—the listdetails the number of legitimate con-sumer complaints lodged against eachinsurer.

Of New Jersey’s 32 auto in-surers, nine scored highest on the2010 list with no “valid com-plaints,” a term defined as either aviolation of state insurance rulesor laws, or a consumer controversythat “should have been resolved bythe insurer without department in-tervention.”

Of the nine, two of the state’ssix biggest auto insurers were sin-gled out for DOBI’s best ratingsbased on the ratio of valid com-plaints to vehicles insured, accord-ing to NewJersey.com.

New Jersey ManufacturersGroup of West Trenton was listedhighest because it received no validcomplaints among the 804,801 vehi-cles it insures.

Palisades Group of Berkeley

Heights was second with no validcomplaints out of 229,366 vehi-cles.

The other seven were Esuranceof New Jersey (57,538 vehicles in-sured), IDS Property Casualty(30,796), Farm Family Casualty(21,316), Chubb of New Jersey(16,975), Founders (13,613), Electric(10,755), and Bankers Standard(10,103).

Besides New Jersey Manufactur-ers and Palisades Group, here arecomplaint figures for the four otherlargest auto insurers:

• AllState (44 out of 676,903 cars in-sured)• GEICO (19 of 734,466)• State Farm (11 of 536,400)• High Point (1 of 358,147)

DOBI gave its worst scores toPersonal Service Insurance Co. (3 outof 13,627) and IFA Insurance (6 outof 34,955).

For more information pleasevisit www.state.nj.us/dobi.

DOBI Releases List of Complaints Against NJ Insurers

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New Jersey Body Shop Owner Sentenced to Three YearsA New Jersey auto body repair shopowner was sentenced to three years inprison May 5 and ordered to pay morethan $16,000 in restitution for an autorepair insurance scam that prosecutorssay he ran from April 2005 to July2006.

Robert Buckingham, of Hamil-ton, owner of Robert Christopher Col-lision, an auto body repair facilitywhich does business on Kuser Road inHamilton Township, pleaded guilty tosecond-degree conspiracy to commitinsurance fraud and theft by deceptionin March 2010, according to Trenton-ian.com.

The Office of Insurance Fraudsaid Buckingham allegedly billed in-surance companies for auto repairwork that he failed to finish; billed in-surance companies for new partswhen he used old parts; billed for re-placement parts when he repaireddamaged parts, and enhanced damageto cars brought to his shop so he couldincrease the amount of the insuranceclaim, according to the website.

The charge was contained in a July17, 2007, state grand jury indictment.

Superior Court Judge EdwardM. Neafsey in Mercer County sen-tenced Buckingham, who may alsoface civil insurance fraud fines.

In pleading guilty, Buckinghamadmitted that between April 2005 andJuly 2006, he conspired with employ-ees of his company to over-bill insur-ance companies for the repair of fiveautomobiles.

Buckingham admitted, for exam-ple, that he had the frame of a dam-aged 2004 Cadillac Escalade repairedby welding in a section but billed theinsurance company, and was subse-quently paid, for the full replacementof the frame.

In August 2008, one of Bucking-ham’s employees and co-defendants,Paul Failla, 55, of Morganville,pleaded guilty to theft by deceptionand was subsequently sentenced totwo years probation conditioned on180 days in county jail if he fails tosatisfactorily complete probation.

In February 2009, another em-ployee and co-defendant, HectorHenriquez, was admitted into the Pre-Trial Intervention program.

Among the insurance companiesto which false claims were allegedlysubmitted were New Jersey Manufac-turers Insurance Company, TravelersAuto Insurance Company (formerlyknown as First Trenton Indemnity),Selective Insurance Company andMercury Insurance Company.

As part of the investigation, acivil complaint seeking forfeiture ofproperty owned and used by RobertChristopher Collision based on fraudwas filed.

As a result, the court has orderedBuckingham and Robert ChristopherAssociates Inc. not to sell or otherwisetransfer assets of the business or thereal property used by the business.

The pending complaint seeks for-feiture of the assets and real estatefrom Buckingham and alleges that theproperty was used to commit thecrimes alleged in the indictment.

The Central Pennsylvania GolfClassic has returned.

Join the AASP-PA on Friday,June 10th at Honey Run Golf Clubfor a day of fun on the fairways.

Day-of Schedule:7:00 am–7:45am Registration

(Practice Area & Putting GreenAvailable)

8:00 am Scramble Classic withShot-gun Start

12:00 pm Lunch (Full CourseLunch Served)

1:00 pm Door Prizes, 50/50Drawings and Awards

The organization is asking allgolfers to report to the golf courseno later than 7:30 am.

The registration deadline isFriday, June 3, 2011.

Please make checks payable to:AASP-PA, and mail to 2151 Green-wood Street, Harrisburg, PA 17102Visit www.aasp-pa.org for registra-tion paperwork.

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have a full legislative program andenjoy broad-based bipartisan supportin both the state assembly and senatein Albany,” explains Kizenberger,with two decades-plus in the collisionindustry.

“Our goal at the state capital is tosupport legislation that protects con-sumers and independent auto bodyshops from unfair claims practices,”notes Orso, who is elected by theboard and conducts NYSACT regularmeetings.

Toward that end, one of thegroup’s recent efforts has been to helpcreate an advisory group comprisingthe state’s Department of Motor Vehi-cles, its Insurance Department, the in-surance companies and the repairindustry. The group also sponsors anannual Lobby Day, providing mem-bers an opportunity to speak individu-ally with their legislators at the capital.A fair and equitable marketplace forall collision repair professionalscomes about as a result of education,Orso explains. “We are educating our

member shops to best serve their cus-tomers with safe proper repairs by el-evating their awareness of liability,”he explains.

“Education also means keepingshops reminded as to who the ‘truecustomer’ is—the consumer,” headds. “When shops understand theneed to remain independent and notacquiesce in the whims of an insur-ance company, the consumer benefits,too.”

Kizenberger also heads theLong Island group. Founded in1975, LIABRA is the oldest andlargest trade association for collisionrepair professionals in New York,with 500 members, including shops,dealerships and other related busi-nesses. Its shops are located fromthe Queens border along the northand south shores of Nassau and Suf-folk counties to Montauk, 90 mileseast.

The group is similarly adminis-tered as NYSACT, with an electedboard of directors directed by an ex-ecutive board, legal counsel and a lob-byist in Albany.

Working to further industry andconsumer interests, LIABRA is a

framework for unifying shop interestssuch as discontinuing unfair claimspractices, Kizenberger explains. WithNYSACT, the organization interactswith government regulators to benefitshop owners. In addition, the associa-tion recently helped promulgate an in-dustry code of ethics in pursuance ofits goal to ensure the public the high-est quality and safety standards in autocollision repair.

LIABRA schedules about eightmeetings annually as well as offers anumber of educational programs onsubjects such as time-management,OEM materials, estimating, employeemanagement and environmental com-pliance.

The association also publishes amonthly magazine for its membersand offers workers comprehensiveand health care insurance. By joiningthe Long Island group, shops also be-come members of NYSACT, Kizen-berger explains.

“Associations struggle in thetough economy as all businesses do,”he says. “We’re confronting chal-lenges such as the overcapacity ofshops against the amount of workavailable. Consumers are driving less,

and that means a reduction of repairopportunities.”

Westchester-Putnam-Rockland AutoBody AssociationHarrison, N.Y.-based, Westchester-Putnam-Rockland Auto Body Associa-tion was founded in 1952 as theWestchester Auto Body Associationand today comprises 100 bodyshops. Even 60-plus years ago, theshops realized that together they couldbetter affect legislation and insurancecompany problems as well as ex-change ideas and common problems,explains its executive director, FrankFerraro.

Its mission emphasizes informa-tion dissemination and education: “tokeep shop owners informed of theconstant changes and technologicaldevelopments in the auto industry”and “to provide education and updateson… new laws and regulations… ”Also, to that end, the association pro-duces a monthly magazine detailinglocal, state and national news, and reg-ulations relating to the industry, in-cluding Environmental ProtectionAgency changes and updates.


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NY Collision Assns

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Many years ago I went through a train-ing program offered by a companycalledExpansion Consultants, Inc.Oneof my instructors offered the hypothesisthat “any unwanted situation can be re-solved with sufficient communication.”He used the expression “universal sol-vent” to describe how communicationcan dissolve problems.

I’ve often tested this idea, espe-cially in marketing. At one point Icame up with the idea that “any failureto thrive is a combination of not reach-ing out widely enough, frequentlyenough or cleverly enough.”

Then one day I spoke to a bodyshop owner who disproved at leastone part of my idea. He had reachedout as widely as anyone could in hisarea. He sent out a piece of promo-tional literature to 10,000 homes in hisarea. But he said he had not gotteneven one job from that mailing.

Today marketing professionalsare focusing on a narrow demographicrather than a wide one. By trackingcustomer purchases, website searches,and publications read, advertisers tar-get very specific types of prospects.

A collision repair center follow-ing this approach would avoid a vastgeneral mailing to all prior customers,and instead focus on specific typeslike senior citizens, young drivers,parents with children who drive,women who drive specific makes ofvehicles, and more.

Another narrow approach usedby marketing professionals is a season

and time focus. Mothers Day promo-tion for adult women, Labor Day pro-motion for working men, and alsostart-of-school-year promotions forparents.

For collision shops, collecting in-formation on customers’ teen-agerscan be valuable. Young drivers cause ahigh percentage of accidents. Forshops getting involved in the new cos-metic car upgrade market, a Valen-tines Day promotion could beeffective. Self-caused minor damagemay be overlooked until a time comesto travel. A pre-vacation MemorialDay promotion could bring in thosevehicles.

The Internet has become so mucha part of our lives these days, we maysometimes forget that most of that“free” information we get on-line ispaid for by advertisers.

If you watch carefully, you’ll no-tice how the ads on websites changewith the time of year. You may alsonotice how companies that track youron-line searches are able to send youe-mail ads that reflect your personalinterests. How might you use this ap-proach to creating more effective pro-motional reaches out to your customerand prospect base? It all comes backto your effectiveness at collecting andusing customer information.

Collision repair shops are gener-ally high velocity workplaces. Esti-mators are in a hurry to get the keysand get the car in the shop to beginwork. The vehicle driver may be in a

hurry to drop off the car and get towork or back with the kids.

A better time to collect informa-tion may be when the customer ispicking up the repaired vehicle andpleased with the quality of the repair.If these don’t net information aboutthe customer’s job, family, organiza-tional ties and personal interests, anon-line or phone survey may get whatis needed to do targeted promotions.Shop owners are justified in wantingto minimize the number of front officeemployees and related costs. But acareful analysis of how many addi-tional vehicles a good data collectionperson could bring in should revealthat the benefits could greatly out-weigh the costs.

The days of waiting for repaircustomers to drive in are long gone.These days the certainty of sufficientinsurance referrals is diminishing. It’stime for shop owners to catch up with

the times and begin using professionalmarketing tools to bring in new busi-ness.

Take a look at the variety of adsaimed at you. You may sometimeswonder why you are the target of aparticular ad. Advertisers are justguessing what will interest you, butobviously they guess right oftenenough to justify the cost of the ads.It’s time for you to become more cre-ative with your promotion. Who haveyou not reached out to? Who have youconsidered not worth reaching out to?Who have you given up on reachingout to? (If no response, try somethingelse).

Don’t set limits. Everyone can bereached with some message. If youcollect enough information up front,the odds are good that you’ll connectwith your prospects a large percentageof the time and that will more than payfor your time and trouble.


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Tom Franklin has been a sales and marketing consultant for fifty years. He has writtennumerous books and provides marketing solutions and services for many businesses.He can be reached at (323) 871-6862 or at [email protected] Tom’s columns at www.autobodynews.com under Columnists > Franklin

Focusing Marketing Efforts on a Narrow Demographic Yields More Results

AASP Awards Grants to NABC and Auto Education InstituteThe Alliance of Automotive ServiceProviders (AASP) has awarded Indus-try Improvement Grants to the Na-tional Auto Body Council (NABC)and the Automotive Education & Pol-icy Institute (AEPI). The grants wereapproved at the AASP’s nationalboard of directors meeting in Raleigh,NC in April. The NABC grant will gotoward helping create a Spanish-lan-guage glossary of collision repairterms for Spanish-speaking shop em-ployees and customers. The money forthe AEPI will assist in creating a Web-based collection of legal decisionsmade in favor of collision repairers.

The AASP also voted to partici-pate in the Society of Collision Repair

Specialists’ Repair Driven Education(RDE) series at SEMA in Las Vegasin November.

“After experiencing last year’sRDE first hand, I was impressed withthe caliber of the content provided,”said AASP President Rick Starbard. “Itwas great to be able to experience edu-cational seminars that are truly repairerdriven, and our association is proud tobe a part of that experience in 2011.”

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As an auto body shop owner for over30 years, I understand total loss vehi-cles are a part our industry’s day today business. With the addition ofmore and more electronic gadgets,gizmos, and the installation of addi-tional air bags it is not unusual to havean insurance company choose to totala vehicle, and retain the auction sal-vage, rather than roll the dice on thepossibility of a multi-thousand dollarsupplement and being held responsi-ble for other liability issues. This isusually the standard insurance gameplan unless you come across a naiveinsurance appraiser who does notvalue his job.

Recently our body shop in SantaBarbara, California, was involved inan insurance claim involving a cus-tomer’s 2005 limited edition ScionXB which accidentally ran into ashopping center wall while exiting ashopping mall parking structure. Thedriver must have experienced oneheck of a distraction to cause so muchdamage to the right front of his vehi-cle.

Upon closer inspection we dis-covered the right front frame waskinked enough to require replacementof the frame rail. The engine wouldneed to be removed to install theframe rail which resulted in additionallabor placing the car in the total losscategory.

While the appraiser was leavingour repair facility he commented hisinsurance company is very attractedto low mileage fuel-efficient compactvehicles such as this one. Later thatday, I went out to the Scion and no-ticed there was a tag on the wind-shield stating the vehicle nowbelonged to the insurance company. Iasked myself how this could be whenthe vehicle owner has not been noti-fied or given information on his op-tions of retaining the vehicle oraccepting full retail value from his in-surance company.

Even more intriguing, the nextday I received a phone call from theInsurance Salvage Auction companyrequesting to pick up the Scion. I wassurprised at what felt like a decisionto essentially steal the low mileageScion instead of getting notificationfrom the owner on what he has de-cided.

Soon after receiving the 24-houris-the-vehicle-released call from thesalvage auction company, I contactedour customer and reported the ag-gressive efforts by his insurancecompany who seemed to have over-looked providing us with a com-pleted itemized repair estimate.Neither did they make a reasonableoffer of retail value settlement totheir insured. The customer re-sponded he would prefer having hiscar repaired. I advised him to requesta copy of their repair estimate. I alsorecommended he do his homework inobtaining some comps on the valueof his low-mileage vehicle. I advisedhim not to be “intimidated” or feelrushed by the insurance companywho had already sent him an e-maildeclaring they will “limit their stor-age fees to only two days.”

A couple days later, the customerreceived the insurance repair estimateand forwarded the attachment to ourshop where we confirmed the vehicleas a total loss. Vehicle valuation #1was also sent to the insured who askedif I would assist in the settlementprocess.

Upon reviewing the valuationreport I noted there were severallisted comps, which were not fromour area, resulting in a lowering thesettlement value offered to the in-sured.

Another major item, to the insur-ance company’s advantage, was therewas no mileage posted on any of thevehicles reported. This alone can sig-nificantly reduce the value of the in-surance company’s settlement offer. I

reviewed the posted locations and val-ues with five of the proposed compa-rable listings and discovered fourvehicles had significantly highermileage and sold for almost $1,000more than what was reported in their#1 valuation report.

This got the attention of our cus-tomer and he proceeded with his ownfollow-up on the posted listings. I rec-ommended he speak to the insurancecompany, report his findings, and de-clare several of their valuations notvalid. A second valuation was soon re-ceived allowing for a $1,500 buy backfrom his final settlement cost to retainthe vehicle.

The customer e-mailed the in-surance company creating a paper trailof their inaccurate comps and re-quested valuation #3. About four dayslater the customer forwarded me acopy of a new valuation which pro-vided an increase of over $500 from

the first valuation which the insurancecompany insinuated he accepts.Here’s something to think about, cal-culate how much would result if eachinsurance company total loss claimwas shorted by $500—Gee, what anice investment fund that would cre-ate.

The customer was still undecidedabout accepting the full insurance set-tlement offer or go with a ‘buy back.”After a few days he came to a decisionto let his baby go to the “Auto AuctionHeaven” and accept the increased set-tlement offer.

This month’s article savingsmessage is about assisting your cus-tomer in their time of crises and notbeing intimidated by the insurance“SCREW U CUSTOMER CAREHOTLINE.” You have now gained acustomer for life while adding to yourbottom line for teardown, labor, andstorage fees.



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ASA Discusses New RefinishRegulation with EPA OfficialsASA collision leaders met recentlywith top EPA Office of Complianceofficials to discuss the EPA automo-tive refinishing regulation. ASAmembers also briefed members ofCongress on the new paint regula-tion. ASA supports the regulation buthas been concerned about some en-forcement efforts. Some state agen-cies oversee enforcement of theregulation while others are leavingcompliance to the U.S. EPA. This en-forcement diversity has created someissues relative to the regulation. Oneof the concerns is the regulation ex-emption for “Coatings applied from ahand-held device with a paint cup ca-pacity that is equal to or less than 3.0fluid ounces.” ASA worked with theU.S. EPA in preparing backgroundfor the auto refinishing regulation.ASA hosted the EPA at its trade show,the International Autobody Congressand Exposition (NACE), and in vari-ous ASA member shops around thecountry to help educate the EPAabout shop systems, training andproper equipment. ASA will continueto work with EPA and state agencieson compliance issues for the auto re-finishing regulation.

Fix Auto USAAdds Five FranchiseLocations In Q1 2011Fix Auto USA has announced the ad-dition of five franchise locations. Thenew locations represent Fix Auto’sexpansion in the San Diego market toeight locations. Fix Auto USA, whichadded a franchise model to networkmembership in January 2011, cur-rently has 39 franchise locations op-erating in three states: California,Colorado and Oregon.The new Fix Auto locations include:•Fix Auto El Cajon, formerly EastCounty Auto Collision•Fix Auto Escondido, previouslyHenson and Son•Fix Auto La Mesa, operated at DrewCollision Repair Center•Fix Auto Mira Mesa, formerly Mi-ramar Collision Center•Fix Auto National City, previouslyowned by Ball Auto Group

Greg Carter, owner of Fix AutoNational City, Fix Auto Santee andFix Auto Mission Valley said thepower of a larger network, poweredby independent owners played a bigrole in his decision to franchise.

“We are pleased to expand ourfranchise group with these operatorsin San Diego,” said Paul Gange,President and COO of Fix Auto USA.

ASAAnnounces its CollisionOperations 2011 CommitteeASA has announced its 2011 CollisionDivision Operations Committee. DanStander, Fix Auto Highlands Ranch, Lit-tleton, CO, continues his two-year termas Collision Division director. As such,Stander serves on ASA’s board of direc-tors and is chairman of the ASA Colli-sion Division Operations Committee.

Additional members of the opera-tions committee announced by ASA’sboard of directors include Ronald ScottBenavidez, Mr. B’s Paint & Body ShopInc., Albuquerque, NM, who is servingas assistant division director; Stacy Bart-nik, CARSTAR Franchise Systems Inc.,Overland Park, KS; Jeff Brunz, MasterEuropa Paint & Collision, Fort Worth,TX; Tommy Clayton, Tommy’s DentService, Gibsonville, NC; Virginia Dun-can, AAM, Duncan’s Collision Inc.,Boardman, OH; Dustin Eckhart, AAM,Hernandez Collision Center, Hinesville,GA; Mike LeVasseur, Keenan AutoBody Inc., Clifton Heights, PA; andSteve Tomaszewski, Alpine CollisionCenter, Grand Rapids, MI.

Members of ASA’s Collision Divi-sion Operations Committee representshops of varying sizes from across theUnited States. The committee works onbehalf of all ASA collision members.

ASAAnnounces its 2011Government Affairs CmteASA has announced its 2011 Govern-ment Affairs Committee (GAC).Members of the GAC include RoySchnepper, AAM, board representa-tive and committee chairman, Butler’sCollision Inc., Roseville, MI; DavidLanspeary, AAM, affiliate representa-tive, Dave’s Auto Repair, Youngtown,AZ; April Hernandez Miller, AAM,collision division representative, Her-nandez Collision Center, Savannah,GA; Douglass Kirchdorfer, AAM,mechanical division representative,Downing Street Garage, Denver, CO;and Charles Elder, AAM, member atlarge, Ray Gordon Brake Service, Tal-lahassee, FL.

Members assumed their positionsat the close of ASA’s annual businessmeeting May 9–11 in the Washington,DC, area.

ASA’s board of directors estab-lished the Government Affairs Com-mittee to assist in developing state andnational legislative objectives on anannual basis. The committee worksclosely with Bob Redding, ASA’sWashington, DC, representative.

For more information aboutASA’s legislative objectives and ac-tivities, see www.TakingTheHill.com.

Autobody Craftsmen’s GuildOfficing on Staten Island, the Auto-body Craftsmen’s Guild was foundedin 1960. Membership in the guild in-cludes membership in NYSACT, ex-plains one of its three executivedirectors, Joe Amato.

Training is one of ACG’s goals.“Typically our general meetings areorganized around a topic or a task,” hesays. “We’ll have a vendor or jobbercome in to speak with the members orwe will have a class on estimating orabout a new product such as water-borne paints.” The group schedulesabout six of these annually, he notes.

Gas & Repair Shop Association of NYIndependent of NYSACT is the Gaso-line & Repair Shop Association ofN.Y., based in Albany. GRANY repre-sents 330 members in the eastern partof the state, from Westchester Countyto the Canadian border and HerkimerCounty to the Vermont, Massachusettsand Connecticut borders.

The association is one of five af-

filiates of the Albany-based NewYork State Association of Service Sta-tions & Repair Shops, which lobbieson members’ behalfs at the capitaland works with state agencies. Thisgroup is an affiliate of the ServiceStation Dealers of America—AlliedTrades.

GRANY was founded in 1972 byservice station dealers during the firstenergy crisis, explains its associate di-rector, John Casazza. The executivedirector is Ralph Bombardiere.Today, the membership includes 35percent convenience stores, 45 percentrepair shops and 20 percent bodyshops.

In addition to providing membersa variety of insurance and other bene-fits, GRANY offers professional train-ing for automotive technicians andinspectors.

“Our overriding goal is to protectthe interests of these independentbusinesses as well as the motoringpublic,” Casazza says.

The biggest challenge in the fu-ture for the auto-repair industry, in-cluding collision shops? According toCazazza, it’s clear: “Insurance com-panies.”



NY Collision AssnsIn April CCC Information ServicesInc. announced the availability of its2011 Crash Course, titled “ChangingExpectations of the Connected Con-sumer.” In addition to an analysis oftraditional market trends, the docu-ment developed by CCC Lead Ana-lyst Susanna Gotsch focuses on newtechnology’s ability to provide trans-parency to the companies and cus-tomers doing business in the auto-physical damage industry.

“Peoples’willingness to be muchmore transparent as potential cus-tomers, means they expect their de-mands/needs at a minimum will bemet,” said Gotsch. “But companiesthat go beyond simply meeting de-mands to delight their customers willsee their efforts rewarded. A companydemonstrating that it knows a cus-tomer’s needs/desires, meets them,and exceeds them, is creating an ex-perience that the customer will wantto talk about with family and friends.”

In addition to the Adobe® PDFversion of 2011 Crash Course avail-able on the CCC News and Insightpage, Gotsch presented a CrashCourse webinar on April 21st.

For more visit www.cccis.com.

CCC Announces 2011Crash Course in April

The Collision Industry Foundation(CIF) is proud to announce its donationof $1,650 to the American Red Crossto benefit the victims of the Japantsunami from the donations madethrough the Collision Industry Confer-ence (CIC).

The donations were collected atthe CIC meeting held at the Meadow-lands Expo Center in New Jersey thispast March after industry memberToby Chess suggested a collection forthose in need.

“It’s always heartwarming to seepeople, even in these hard times, reachout to help others who have lost somuch” said Bill Shaw, President of theCIF Board of Trustees.

Relief and clean-up efforts areongoing in Japan due to the cata-strophic levels of devastation that re-sulted from the earthquake andsubsequent tsunami back on March11, 2011.

CIF Makes Donation toJapan Tsunami Relief

www.autobodynews.comCHECK IT OUT!

Current industry trends—and a lookahead at the electric, fuel-efficient andChinese vehicles that could be show-ing up in collision shops in the comingyears—were the focus of onespeaker’s presentation at the recentWomen’s Industry Network (WIN)conference.

Greg Horn, vice president of in-dustry relations for Mitchell Interna-tional, told about 160 attendees at theWIN event in San Diego, that onepositive trend for collision repairershad been the rebound through earlythis year in the total miles driven byU.S. motorists.

“But we’re starting to see the ef-fect of gas prices impact the miles wedrive,” Horn cautioned.

He said that MasterCard Spend-ingPulse, which tracks gas purchasesat hundreds of U.S. locations, reportedin early May that the 4-week averageof retail gas demand had dropped forthe sixth consecutive time.

“So we’re potentially in for apretty significant impact as we get toearly summer in the reduction of acci-dents and repairable cars,” Horn said.

He said insurer data indicated anuptick in claims in the third- andfourth-quarters of last year, boosted inpart by some extensive hail and stormdamage in several regions of the coun-try.

Shops also have benefited from asizable rise in the value of used vehi-cles, which allows for higher repaircosts before a vehicle reaches the totalloss threshold. Horn said the averagevehicle appraised in the first quarter of2011, for example, had an actual cashvalue of $12,772, up from the samequarter a year earlier even though theaverage age of the vehicles appraisedin 2011 was almost a year older thanthat in 2010.

“So a car is older but worth morein value,” Horn said. “That’s a goodthing for us in the collision repairbusiness because that means we havemore opportunity to repair the cars.We’ll put more in the repair columnthan we will the total loss column.”

The percentage of vehicles de-clared a total loss dipped slightly in2010, and Horn and others expect thattrend to continue this year. Higher gas

prices and the vehicle production dis-ruption caused by the earthquake andtsunami in Japan continue to buoy de-mand and prices for used vehicles, hepointed out.

“That 3-year-old Honda Accordis 20 percent more valuable than itwas last September, and the 3-year-old(Nissan) Sentra is up 12 percent,”Horn cited as examples.

Horn also discussed the impactthat increases to federal fuel economy

standards are hav-ing on automak-ers. In late 2009,the Corporate Av-erage Fuel Econ-omy (CAFE)requirements werechanged to requireeach automaker by2016 (rather thanby 2020, as earlier

established) to sell a fleet that aver-ages 35.5 miles per gallon.

“That is an ambitious goal,” Hornsaid. “A lot of auto manufacturers forwhom it takes four years to get fromthe drawing board to the showroomfloor, are in a state of panic.”

Global automakers, Horn said,are looking at the most fuel-efficientcars they sell elsewhere in order tobring those vehicles into the U.S. mar-ket. Though its late summer debut hasbeen delayed indefinitely by the situ-ation in Japan, the Scion IQ is one ex-

ample of new micro-cars coming toU.S. streets. The tiny vehicle, poweredby a 90-horsepower, 1.3-liter 4-cylin-der engine, will be sold as a 4-passen-ger vehicle even though the headrestsfor those in the backseats butt upagainst the back glass. Horn said tohelp the vehicle meet federal safetystandards, it has nine airbags.

“The good news is you’re goingto survive the crash. You’ll suffocateafterwards, but you’ll survive thecrash,” Horn joked.

Similarly, Chevrolet is introduc-ing the Sonic, a less-well-equippedversion of the Aveo, Horn said, andNissan is introducing the $9,000Micra (on which the radio and air con-ditioning are options). Chrysler willbring in the Fiat 500, which is fourinches shorter than a Mini Cooper,and Mini is showing a concept vehi-cle that is a foot shorter than its exist-ing vehicles.

The problem with many such ve-hicles for collision repairers, Hornsaid, is their low values will tend toput them into the total loss categoryeven with only minor damage.

The Ford Fiesta is coming backinto the U.S. market at about $14,000,Horn cited as one example. One of thevehicle’s distinctive features are its

long Xenon headlights, which stretchmuch of the length of the fender and,as Horn said, “are about half an inchfrom the edge of the front bumpercover.” Replacements sell for $480each.

“In a couple years when thosecars are valued at about $10,000, rear-ending someone and having the bagsblow and the windshield and both ofthose headlights go? You’re not goingto be fixing a lot of those Ford Fies-


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Industry Insightwith John Yoswick

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in thefamily and has been writing about the automotive industry since 1988. He is the editor of theweekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).Contact him by email at [email protected].

Industry Trends and Changes in Future Vehicles at WIN Conference

Ford Fiesta’s replacement headlights cost$480 each

Greg Horn,Mitchell VP,

Industrial Relations

ScionIQ, a new microcar was to have sold inthe US in late summer, has nine airbags



tas,” Horn told the audience at theWIN conference.

Automakers also will continue totry to shed weight from vehicles in aneffort to meet tougher fuel economystandards, Horn said. That’s whyshops are already seeing increased useof exotic alloys, titanium and alu-minum. BMW cut 50 pounds from its5-series by making the engine cradleout of plastic, Horn said.

“This is going to change how weput cars back together,” Horn cau-tioned. “The B-pillar for the Volkswa-gen Passat comes from the factory

laser-welded in. Most techs wouldopen the doors, look at the number ofwelds, drill out the welds and try toweld it back in. Volkswagen does notallow for that. In the collision repairenvironment, their requirement is thatyou use adhesive bonding to put thetwo pieces, the inner and outer B-pil-lar, back together. Because it’s aboron-alloy steel, if you weld it backin and you apply too much heat to itin the MIG welding process, you canactually weaken the structure of thatmetal, throw off the pillar airbag sen-sors, and potentially cause some se-

vere harm to the passengers in a sub-sequent collision.”

Horn closed his presentation witha look at some of the vehicles thatChinese automakers—a number ofwhich have plans to enter the U.S.market—currently produce. Horn saidGreat Wall Motors is predicting a U.S.launch in 2015, following the modelused by Kia some years ago, withsales in several states and entry intothe rental fleet. The company will usefeedback from that limited launch tomake improvements before selling ona broader scale.

Horn said the expected low cost ofearly Chinese vehicles in this countrywill likely lead to more totals than re-paired vehicles. But the success of anyof the Chinese automakers here willlargely be dependent on their ability toset up the replacement parts infrastruc-ture that is needed, Horn said. SterlingMotors and Daihatsu, he said, failedlargely because a lack of parts availabil-ity led to repair delays and total losses.

“The folks that have the best in-frastructure for supporting their brandwill be the Chinese brands that sur-vive going forward,” Horn said.

Gerber Collision and Glass Acquires Georgia ShopThe Boyd Group announced the open-ing of a new repair center in McDo-nough, Georgia, on May 3. The center,previously known as McDonoughCollision, was recently acquired bythe Boyd Group and now operatesunder the Gerber Collision & Glasstrade name.

The new facility is approximately26,000 square feet in size, with 24,000square feet of production space. Withthis addition, the Boyd Group is nowable to serve consumers and insuranceclients in the county seat of HenryCounty, 30 miles south of Atlanta. TheBoyd Group now owns and operates

12 repair centers in Georgia and a totalof 99 in the U.S., including 37 repaircenters that operate under theTrue2Form trade name.

“We continue to execute on ourstrategy of expanding into select mar-kets and growing our network of repaircenters across North America,” saidTim O’Day, President and COO of theBoyd Group’s U.S. Operations. “Thenew McDonough repair center helpsus introduce the Gerber Collision &Glass brand to an additional Georgiamarket and we are very pleased to beable to serve new customers in this lo-cation.”

GM to Invest $131 Million at Bowling Green, KY, PlantGeneral Motors Co announced thatthey will invest millions into revamp-ing a Kentucky factory to produce anew version of the iconic ChevroletCorvette sports car, the automakersaid on May 4.

“It has a completely differentlook. Don’t ask me how or what, butpeople will be really surprised, in agood way,” GM’s North Americanpresident Mark Reuss told Reuters.

GM would not say when the newCorvette would be introduced, but au-tomotive insiders have speculated thatit will make its debut in 2013.

The automaker will invest $131

million in the Bowling Green, Ken-tucky plant to retool the factory forproduction of the seventh generationof the Corvette. The company alsoplans to hire an additional 250 em-ployees along with the plants remodel.

Reuss told the plant’s nearly 400production line workers that GM hasinvested $3.4 billion and created 9,000jobs at its U.S. plants since mid-2009,the year it went through a $52 billionU.S. government-sponsored bank-ruptcy.

GM said the current-generationCorvette will be made in Kentucky forat least the next two model years.


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PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAARRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIICCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAATTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEESSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM 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CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEETTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIITTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOONNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN

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OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOORRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEERRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR 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TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHRRRRRRRRRRRRRRROOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIISSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOONNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN 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IT’S ABOUT TIMECHEVROLETCHEVROLETVROBurdickBurdick

AkzoNobel Automotive & AerospaceCoatings Americas will sell all of itscompany-owned paint distribution lo-cations in the United States to LKQCorp. After the deal is effective May27, 2011, LKQ will carry the Sikkens,Lesonal and U-Tech brands. The deal ispart of a plan to broaden AkzoNobel’sNorth American distribution. The com-pany said it remains committed to theU.S. market and believes a vibrant anddiverse distribution network is manda-tory for success in the rapidly evolvingcollision repair industry.

“LKQ Corporation is one of themost recognized and respected namesin the automotive industry,” noted Ak-zoNobel A & AC Americas GM ABGhosh. “We are proud to have them asa part of our growing North Americannetwork of distribution partners.”

Ghosh continued, “We are con-stantly challenging ourselves to im-prove our global leadership position.Our strength exists in our core compe-tencies which are providing exceptionalproducts, technology, and service to the

collision repair industry. By moving to-ward independent distribution in NorthAmerica, we can now bring evengreater focus to those areas which makeus unique and set us apart from ourcompetition.”

“We have long admired the bodyshop solutions offered by AkzoNobel,”noted LKQ’s co-CEO Robert L. Wag-man. “Their ability to deliver valueadded solutions in combination withbeing a color technology leader makesit an honor to partner with the world’slargest coatings company.”

Wagman continued, “LKQ cur-rently has relationships with thousandsof collision repair shops throughout theUnited States. We are excited about theopportunity to cultivate new opportuni-ties with the AkzoNobel team. Thistransaction reflects LKQ’s commitmentto being a one-stop-shop solution to thecollision repair industry by providingsuperior products and services. ByaddingAkzoNobel’s portfolio of brandsto our product offerings validates thatcommitment.”

AkzoNobel to sell all 40 Company-owned Distributorsof Sikkens, Lesonal, U-Tech, to LKQ Corp.

Shop owners are reacting stronglyand negatively to the latest DRPagreement from Farmers Insurance’s“Circle of Dependability” program.Long-term members say that theDRP agreement says shops must per-form criminal background checks ofemployees and not employ anyonewho has been convicted of a felony.Shops must purchase and use CSIservices and an electronic estimateauditing tool approved by Farmers.Like State Farm program membersmust now charge Farmers based onthe most favorable rates offered toany other insurer. Most controvesialof all is a requirement that the shopmust at any time allow Farmers to in-spect and audit the company’s booksand records, including balance sheetsand income and cash flow state-ments. Last year, Farmers InsuranceGroup limited consumer and colli-sion repair facility choice by direct-ing its DRP shops to sublet PDR jobsexclusively to two national PDRfirms, PARS and Dent Wizard.

SEMA Show Registration forExhibitors is up Over Last YearCompanies are taking SEMA boothspace much earlier this year, as indi-cated in a recent report by Show man-agement. Exhibit space sales in netsquare footage is up 14% year-to-dateand total exhibitors are up 18% year-to-date. This brings the total numberof exhibitors as of May 17, to1,615—a strong indicator that in2011, the SEMA Show is a top prior-ity for manufacturers and buyers.

The growing collision-repairsection of the 2011 SEMA Show isnow branded “Collision Repair &Refinish.” The area will be one of 12floor sections featured at the 2011SEMA Show, Tuesday–Friday, No-vember 1–4, 2011, in Las Vegas.

“The number of exhibitors andeducational seminars for the collisionrepair and refinish market increasesyear after year,” said PeterMacGillivray, SEMA vice presidentof communications and events. “Thenew name, Collision Repair & Refin-ish, is just one way that the SEMAShow is evolving to better and moreaccurately reflect the growing pres-ence of this market.” Details aboutthe SEMA Show are available atwww.SEMAShow.com.

Farmers Insurance’s New DRPChanges Upset Some Owners


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NEWSNEWSNEWSNEWSService, Diagnostic

and MechanicalService, Diagnostic

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and MechanicalAutobody News June 2011NEW YORK • NEW JERSEY • PENNSYLVANIA • DELAWARE

The Value of Service Repair InformationWith the ever changing complexity oftoday’s vehicles that confront you andyour team on a daily basis, access tomanufacturer’s repair information isand will be one of the most importanttools you will utilize on a daily basis.Whether you are an Estimator, Man-ager, Insurance Adjuster, Technicianor part of the Production Team,proper repair procedures from themanufacturer will allow you to iden-tify, negotiate and explain key repairplan thought processes. It will also as-sist and manage critical business In-dicators such as cycle times, hours perday, sublet repairs, technician effi-ciencies, overall productivity andprofits.

Many considerations arise whenpreparing a repair plan for your cus-tomers whether they are your Insur-ance Partners, everyday customers, orTechnicians. Issues such as minimalsupplements, factory recommenda-tions correct documentation, cus-tomer satisfaction and a cost effectiverepair are only a few issues that oneneeds to consider.

Questions such as these will con-front you or your staff daily.● Should I section this or replace theentire panel?● How do I handle this Hybrid?● What SRS parts do I need to replaceafter the accident?● Can we reset the Tire PressureMonitoring System?● Does my Technician know how toremove the trim panel on this vehicle?

● Can we repair this suspension hereat our shop?● How can I provide my customers

detailed repair documentation if theyrequire it?

Documentation will be the mostcritical link you will have when de-termining a repair strategy.

So when is the best time to ac-cess or source this valuable repair in-formation? Pre-Production or Duringthe Production phase of repair?

The answer to both of these is‘yes,’ based on your collision opera-tion and processes.

Accessing Manufacturer repair in-formation during the Pre-Productionphase or at the time of the repair plan isan effective way of properly identifyingcritical repair decisions. You noticed Isaid “repair plan” and not estimate?

Often times a certain repair proce-dure may be available and if you don’tknow it, the vehicle can halt in produc-tion due to supplements, authorizations,parts orders, or sublet repairs. When-ever a vehicle is stopped or delayed dur-ing the production process, cycle timeswill increase, efficiencies decline and

overall shop profitability is affected.If thought was given to proper

repair techniques, locations and prac-tices during the repair plan or prior toproduction, these critical performanceindicators would ultimately benefit.

For example:You are developing an estimate on a

2007 vehicle that has structural damageto the front. Do you know if the structuralcomponent can be repaired or should itbe replaced? If you have to replace it, canit be sectioned and where? Without thecorrect repair procedure, you may de-velop your estimate based on prior expe-rience, here say, Industry acceptedpractices or the ever popular guess.

As the vehicle moves into pro-duction, parts have been ordered, theestimate has been sent or uploadedand approved and the technician isdiligently disassembling it. Upon fur-ther examination after disassembly,your technician states that the dam-aged structural component cannot berepaired with the method on the esti-mate due to the fact that he or shethinks the component is made of ad-vanced high strength steel.

Production stops, a supplement isgenerated, approval for additional repairsare pending and parts are re-ordered.

If the proper repair and identifi-cation procedures were accessed fromthe Manufacturer at the time of the re-pair plan, this scenario could havebeen avoided. Now ask yourself,“How much time are you now spend-ing reacting to the estimate that was

prepared incorrectly utilizing the priorscenario” and would you ultimatelygenerate less work for yourself if youperformed repair research prior to pro-duction or when developing a repairplan?

During the production phase, a tech-nician ultimately benefits by being effi-cient or keeping his hands on the vehicle.

Locations of components, testingprocedures, disabling operations, ma-terial identification and overall properrepair procedures are only a smallportion of what today’s collision tech-nicians face day in and day out.

By providing them with accessto Manufacturer’s information, canthey increase their overall productiv-ity and efficiencies?

Ask yourself this question thenext time that your technician cannotlocate a component or remove a cer-tain part without instructions.

If they had access to the proce-dures would they limit or eliminatethese time consuming scenarios?

In summary, vehicle complexity ischanging at a rapid pace and in order tobe current with all of the complexities, weneed to utilize the latest repair strategiesand procedures that are available to us.

A proactive approach, a proper re-pair plan and an awareness and utiliza-tion of published procedures from themanufacturer are effective ways tomanage our time and your team. Thiswill ultimately provide a safe and accu-rate repair to our valued customers. Isn’tthis what we are all in business for?

with Dan EspersenALL OEM Information Dan Espersen is ALLDATA® CollisionSM Program Manager. Dan is a Gold Pin

Member of the Collision Industry Conference (CIC) and holds an AA Degree inAutomotive Technology. He has 35 years of experience split between the colli-sion industry and in the mechanical automotive industry.

National Average for Body and Paint Labor Rates Up Only Modestly Since 2006The national average for body andpaint labor rates has risen only mod-estly year-over-year since 2006, ac-cording to figures from CCCInformation Services.

The average body labor rate rosefrom $41.42 in 2006 to $44.67 in2010, up an average of 2.1 percent peryear. The national average hourly ratefor paint materials rose slightly faster,

from $22.26 in 2006 to $25.37 in2010, an average increase of 3.5 per-cent per year. Overall, according tothe U.S. Bureau of Labor Statistics,the Consumer Price Index for auto-

body work rose an average of 3.44percent per year for that 5-year pe-riod. By comparison, the CPI for allproducts rose an average of 2.2 per-cent per year.


with Gonzo WeaverGonzo’s Toolbox This is a new story by Scott “Gonzo” Weaver as posted on his website,

www.gonzostoolbox.com. See his book “Hey Look! I Found The LooseNut”, which provides a Good Laugh for Mechanics of Any Age. The bookis available at amazon.com. Contact Gonzo at [email protected]

Jo was a new customer referred by anold-time regular. Her little Kia SUVhad a transmission problem thatseemed to be getting the best of thetransmission shop.

The story goes that the Kia wasconstantly in limp mode, and wouldnever shift properly—ever. As alwaysseems to be the case when a simpleproblem can’t be solved simply,somebody started the diagnostics offin the wrong direction. Little did Iknow this was a simple problem.

But, as I see it, each and everytype of diagnostic work that you dorequires a certain step by step proce-dure that you must follow. Missing astep, or completely overlooking astep, usually means you’re going tomiss that simple problem all together.This was no exception.

From what information I couldgather the person who diagnosed it atthe transmission shop wasn’t the

same person who installed it. So afterthe tech put the last bolt in the trans-mission, he set the car out front, andtold the front office, “Got the trans-mission in that Kia.”

The front office considered itdone, and the call went out for Jo topick it up. She didn’t make it aroundthe block before she was back at thefront counter in a “not-so” pleasantmood. You can just imagine the situ-ation at the counter, not happy I’msure.

After some deliberation, andvery little diagnostics the transmis-sion shop came to the conclusion thatit must be a bad transmission. Luck-ily, the ride that had brought Jo therewas still in the parking lot, so she leftthe Kia for them to re-do the wholejob.

A week later, it was supposedlydone. This time a different tech hadinstalled the second transmission. Un-

fortunately, he made the same mistakeas the first tech. When Jo came topick up her car the shop owner tookher for a ride to be sure that the re-pairs were made to her satisfaction. Itwas a short drive.

This time, the owner said he wasgoing to pay for the transmission, andwould even purchase one from thedealership just to be sure it wasn’ttheir mistake in rebuilding it. Buteven the dealer transmission failed toshift properly. The tranny shop was ata loss, they decided to make a fewcalls for some help, and that’s whenmy phone rang.

Now, I’m not one to diagnoseanything over the phone. I just don’tthink it’s a smart way of taking careof such problems, because you neverquite know what you’re getting into.

But the tranny shop ownersounded desperate, and now the repaircosts were coming out of his pocket.

From his frantic explanations of nocodes, no shift, and no idea of theproblem, he kind of put me on thespot, so … I suggested a computer.

Heck, why not… ya changed thetranny three times for Pete’s sake, ob-viously that ain’t it. I probablyshouldn’t have done that, but I thinkhe wanted to try and save as muchmoney as possible without resortingto taking it to another shop.

Well, a new TCM didn’t work ei-ther. Now, the car is finally comingmy way. Jo was a little unsurewhether or not there was anyone outthere who could find the problem, buther friend told her that it couldn’t hurtto let me see what I could do for her.I’ll give it a try.

When the car showed up at theshop I took it around the block onceto verify the condition, and then put itup on the lift. While it was on the lift

Shift Happens: The Story of Three Transmissions and a Limp Kia SUV

See Three Transmissions, Page 31

“The Insider” is an auto insurancecompany executive who wishes to re-main anonymous in order to speakfreely. This column offers an unvar-nished look at various issues impact-ing the collision industry from theinsurance perspective—Ed.

Who benefits the most from di-rect repair programs? Insurers will tellyou the consumer. Repairers will saythe insurance company. The consumerhas no idea and doesn’t care. They justwant their car fixed correctly andquickly.

In my humble opinion, the shopreceives the biggest benefit. The in-surance company does benefit but notmore than the shops on the program.

Yes, many insurance companiesreport millions in profit every quarter,but do you really think they maketheir money by not paying for thingssuch as block, prime, and fill or forOEM parts? If you believe that, you

should do some research before yousay it. A wise man once said, “Betterto keep your mouth shut and let every-one assume you’re stupid, rather thanopen your mouth and remove alldoubt.”

Insurers aren’t raking in double-digit profits on the backs of the bodyshops. Insurance companies capitalizeon a marketplace that has shops will-ing to provide discounts for volume.You wouldn’t do anything different ifin a similar position.

Do insurance companies profitfrom insureds using the direct repairprogram? Of course they do. Insurersbenefit from the reduction in severityand rental car expense, for example. Ifinsurance companies weren’t makingmoney, DRPs wouldn’t exist.

Do the shops make money fromparticipating in a given DRP? You bet.If shops weren’t making money par-ticipating in direct repair programs,

they wouldn’t be working with thatcarrier.

For every shop owner I see strug-gling to keep their doors open, I canprovide a secondary list of those thatare very well-heeled. Don’t misinter-pret what I’m saying: I don’t begrudgeanyone financial success and inde-pendence. But I don’t have the pa-tience or desire to listen to a shopowner complain about losing moneyas he or she drives to the airport in anew Mercedes for their vacation in theBahamas.

Even though insurance compa-nies make a lot of mistakes, DRPsaren’t one of them. DRPs took an ar-chaic body shop trade and trans-formed it into the collision repairindustry. For decades, the body shoptrade didn’t change. In fact, it has beensuggested that the early caveman pro-vided the same level of service thatcustomers received from shops pre-DRP. I was unable to validate that, butit’s difficult to argue a lack of differ-ences between the caveman and the1970s shop owner.

For those who are long in thetooth, it seemed like yesterday that thebody shop trade with rife with unedu-cated technicians running their ownbusinesses. There was a “mom andpop” body shop on every corner. Thetraining you received as a body manwas from the old guy coughing up alung as he sanded a 10-foot-long quar-terpanel that was supposed to be re-


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Allstate, Founder of DRPs, Deserves Some Credit for Improving Repair Industrywith The Insurance Insider

Inside Insurance The Insider is a corporate-level executive with a Top 10 auto insurerin the U.S.. Got a comment or question you’d like to see him addressin a future column? Email him at [email protected]

placed, according to the handwritten,illegible estimate.

Insert DRP here. That’s when theindustry was transformed. In otherwords, every shop owner in this coun-try should personally thank Allstatefor starting what is largely viewed asthe industry’s first nationwide DRP.DRPs have done more to change andimprove this industry than any othersingle factor.

You may dispute it, but shopswithout DRPs are like Sonny withoutCher or the Patriots without TomBrady. Okay, I’m being a little over-dramatic. But the fact remains that ifyou had a toolbox and a cave, beforeDRPs you too could be a shop owner.

DRPs caused the body shop tradeto grow into a legitimate business andindustry. You had to change the wayyou did business or you couldn’t com-pete. Insurance companies were look-ing for professional, well-maintainedshops.

Most shops, for example, pur-chased an electronic estimating sys-tem because it was required as part ofa DRP. Why purchase the equipmentand software to upload electronic im-ages of the damaged vehicle? If you

guessed that an insurance companyrequired it, you are right.

Hopefully, you are starting to seea pattern. The collision repair indus-try doesn’t change very quickly, espe-cially when there is an associated cost.Unless an insurance requires some-thing as part of a DRP, most bodyshops won’t do it.

Before anyone drops to theirknees to praise Allstate, I should statethat the advent of DRPs also spawneda monster called the unethical ad-juster. That probably warrants an arti-cle itself. I guess you need to take thegood with the bad, but to me, the goodthat DRPs brought significantly out-weighs the negative impact caused bythe unethical or immoral behavior ofsome.

The point of this article was tomake you think about one thing: Whohas benefited the most from the directrepair programs that some shopsswear were the demise of this great in-dustry? The answer is obvious: Bodyshops.

Collision repairers would still beusing a hammer and chisel if it was-n’t for insurers demanding a quality,cost-effective repair.

I decided to drop it into gear andcheck it against the scanner.

To my surprise, it shifted per-fectly. I’m not kidding—absolutelyperfect. I dropped it back on theground, and went for a ride again. Ididn’t even make it around the firstcorner before it got stuck in limpmode just as it was before, this dangthing can’t pull itself out of a pothole.

Back up on the lift, and wouldn’tya know it, shifts perfectly—AGAIN!What’s the deal here? I did it severaltimes, just so I could be sure of the re-sults I was getting. After a few trips Ichecked the wiring to the transmissionwhile it was on the ground.

Uh-oh, the main ground to theTCM wasn’t there. How in the worldwas it there when it was in the air?Ah-ha! It’s moving the wire! Yes, itwas moving the wire all right, and afew more than just the TCM groundlead.

The locator page showed theTCM ground wire was bundled withseveral other ground leads that were

all attached to the main chassisground, which wasn’t attached to athing, but was dangling by the batterybox.

Turns out the whole problemstarted when she had her batterychanged at a department store repairshop, and they didn’t have the rightsize to fit the car. They disconnectedthe chassis ground wire, so the tallerbattery would fit.

When I told Jo what I found, thetwo of us pieced together the how andwhy it happened. Her only commentwas, “Well, shift happens.”

All said and done with, the trans-mission shop paid for the entire repair,and gave her back what she spent withthem. Everyone involved was glad tohave the problem solved, and the carback on the road as good as new.

I like this gal, she’s become aregular at the shop these days. What acard! Always has some sarcastic com-ment for me, but at the same time avery understanding nature and takeslife in stride. I’d love to have a coupleof dozen customers just like her.

As she always tells me… “If youcan’t live on the bright side of life…start polishing the dull one.”


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Allstate, which has seen its per-sonal lines business shrink, said thedeal lets it expand its service to con-sumers who prefer to buy direct onlinerather than through personal agents. Itallows it to compete with Progressiveand Geico, which have strong web in-surance shopping sites.

“Consumers today expect to havetheir specific needs met by their in-surance companies. Our strategy is tofocus on individual preferences andutilize different value propositions fordistinct consumer segments,” saidThomas J. Wilson, Allstate’s presi-dent, chairman and chief executive of-ficer.He said Allstate agencies do “an out-standing job of serving customers whowant a local personal touch and preferto purchase a branded product.” ButEsurance will expand the company’sability to serve customers who are“more self-directed but still prefer abranded product.”

He said Answer Financial willstrengthen Allstate’s offering to indi-

viduals who want to be offered achoice between insurance carriers andare brand-neutral. The move has someAllstate agents concerned.

“Many Allstate agents are view-ing the proposed acquisition suspi-ciously. The company has beenhell-bent on growing its direct chan-nel for years, but only recently has ithad any success,” said Jim Fish, exec-utive director of the National Associ-ation of Professional Allstate Agents,Inc. “Who knows, the success of theEsurance business model and technol-ogy platform could ultimately im-prove and transform Allstate’s directchannel into a powerhouse. Shouldthis come to pass, Allstate agentswould feel more expendable thanever.”

According to Fish, Allstate isshedding seasoned agencies in favorof larger agencies with more staff.“[S]o adding this acquisition to theagents’ woes, can only create moreangst. Without a doubt, the agentswant Allstate to be successful – butnot at their expense,” he said.

Allstate said Esurance and An-swer Financial will retain their brandnames. Esurance has some 1,7000 em-

ployees and 14 regional offices. Wil-son said Allstate would now be theonly company serving all of theseconsumer segments with unique in-surance offerings.

“This transaction is also attrac-tive for our shareholders. Associationwith Allstate will improve Esurance’smarketing effectiveness and it canleverage our world-class pricing andclaim capabilities. This also offers ustwo additional sources of growth andan immediate increase in customer re-lationships,” Wilson said.

Premiums for policies sold byboth Esurance and Answer Financialwere $1.2 billion in 2010. Gross pre-miums written by Esurance were $839million for the year. Esurance had839,000 policies-in-force, including328,000 policyholders at Answer Fi-nancial. The Esurance segment addedapproximately 65,000 policies-in-force during 2010, an increase of 8percent, according to the company.

The transaction has been ap-proved by both companies’ boards ofdirectors and is expected to close infall 2011. The transaction is subject toregulatory and other customary clos-ing conditions, including review by

antitrust authorities and state regula-tors.

White Mountains Chairman andCEO Raymond Barrette said the onlineinsurance operation Allstate is acquir-ing has grown from a start-up to rankamong the top online insurers in 10years. “We have happily invested sig-nificant capital in what we believed wasa unique business. Allstate agrees andcan now take it to a new level,“ Barrettesaid.


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Allstate Buys Esurance


GEICO & CREF Award Grantsto Four Auto Body StudentsThe Collision Repair EducationFoundation (CREF) and GEICOPhilanthropic Foundation namedwinners of the GEICO Spring Schol-arship and Tool Grant, which pro-vides each selected student with a$1,000 scholarship and $500 in tools.

The winning students are:Nicholas Bigelow (Wayne FingerLakes BOCES, Williamson, NY);Kurt Bundscho (Sarasota CountyTechnical Institute, Sarasota, FL);Zachary Holler (Eastern Center forArts and Technology, Willow Grove,PA) and Simon Rowe (Cuesta Com-munity College, San Luis Obispo,CA)

The grants not only assist stu-dents with their educational expensesbut also helps to place current toolsand technology into their hands tobetter their career,” said Scott Kruger,CREF Executive Director. “GEICOhas stepped up and made a direct in-vestment into the students who will beour future collision repair technicians.On behalf of these four students,thank you to Mr. Lyons and everyoneat GEICO for their continued dona-tions and support.” Visit www.Colli-sionEducationFoundation.org.

Sherwin-Williams’ Next EcoleanWorkshop in Toronto, June 22The next A-Plus™ EcoLean™ Level1 workshop from Sherwin-Williamswill be held June 22–23 in Toronto.Sherwin-Williams’ EcoLean Level 1workshops are designed to help max-imize profitability by improving pro-ductivity and eliminating wastethroughout their facilities. The pro-gram is offered to collision centerowners from Canada and the UnitedStates.

“Our EcoLean workshop cur-riculum is developed with collisionshop operators in mind,” notes BobLeibel, Director of Sales and Opera-tions, Canada. “We aim to give thema comprehensive look of how they canbuild a lean culture in their shop fromthe ground up.” During the upcomingToronto EcoLean Level 1 workshopattendees will learn practical processesand useful tips on lean production’spractical application in collision repairand methods to make their collisionshops more efficient, productive andprofitable. Leibel said the programteaches shop owners that environmen-tally sound business decisions gohand-in-hand with reduction of exces-sive and duplicative procedure and en-vironmental waste.

Toyota Profits Dive in 4th QtrAfter Severe Supply ProblemsToyota has announced 4th quarter prof-its that are 77% lower after severe sup-ply disruptions caused by the Japaneseearthquake and tsunami. This is the low-est profit figures during any time in thepast year and a half.

Toyota announced that its declaredprofit for the three months ending 31stMarch 2011 was 25.4 billion yen. Salesalso dropped by 12% to 4.64 trillionyen. The supply disruptions could causeToyota to drop behind Volkswagen AGand General Motors in worldwide salesthis year.

Toyota said that the company ex-pects local and international productionto start recovering by June. This is ear-lier than the initial forecast of July toAugust. The company added that pro-duction will be roughly 70% of normallevels.

Toyota was able to resume produc-tion at all of the company’s Japaneseplants on the 18th April, although atonly half of the normal capacity. At thisstage production is still severely ham-pered by shortages of rubber and plas-tics and electronic components.

Honda said at the end of April thatits fourth quarter net income decreasedby 38% to 44.5 billion yen.

State Farm to Phase out 24Field Offices in MidwestState Farm plans to phase out two-dozen claims offices in three states infavor of “mobile workers” based inhomes, agent offices or collision-re-pair centers, the Bloomington-basedinsurer announced. Some of the esti-mated 1,300 employees affected inIllinois, Indiana and Michigan—in-cluding 17 at a Springfield claims cen-ter—would remain in thecommunities were they now work.

“It’s the changes in technology.Claims are more ‘virtual’ now, and wedidn’t necessarily need all of these fa-cilities,” said Missy Lundberg.

State Farm estimated it wouldsave $8 million in leasing and build-ing-operations costs in the next fiveyears. While many workers would re-main in their current communities,some managers would move to con-solidated fields offices in the threestates. The consolidation includesclaims-processing centers in Marion,Collinsville, Champaign, Peoria, Mo-line, Rockford, Elmhurst, Tinley Parkand Arlington Heights. The number ofclaims-processing centers in Michiganand Indiana will be reduced from ninein each state to two.

Agent offices are not affected.

Kevin Ham looks at his shop—TheBody Shop Garage—in rural Wood-ward, OK, and sees a lifelong dreamcoming true. While it took almost fouryears for the 45-year-old body man toget his own shop running, it’s some-

thing that he’s wanted to accomplishsince he was 16.

“I’ve just always known I wantedto have my own shop,” said Ham.

Ham has worked for other bodyshops in the area for the duration of

his career and really began makingsteps towards having his own businessin 2007. He bought a building on theend of Main Street from his cousin’swife’s grandfather and began thelengthy process of getting the shop

ready for his business. Ham rewiredthe entire place, installed better light-ing, sandblasted brick pillars and re-painted.

During the 3 years it took Ham torefinish the shop he continued to workfor another shop in the area and built

custom hot rods out of the shop-in-progress.

Woodward is a small town ofabout 10,000 with only 3 competingrepair shops in the area, so buzz thatHam was trying to own his own shopsoon started to circulate the town.

One year ago, Ham bought thebuilding connected to the one he wasrestoring to make his shop space big-ger. Then after almost four years of re-finishing the place, the small businessloan he applied for went through andhe was able to finally get his placerunning.

“Since it’s been going I’ve hardlystopped,” said Ham, “It doesn’t evenseem real.”

The business now sits at about6,100 square-feet, although Ham isalso eyeing another adjacent buildingand may expand there in the near fu-ture. Ham, one other full-time repairman and one part-time repair man,

have seen 6–8 cars each week sincethe shop opened in the first week ofMarch. Ham’s son Kurt also helpswith the shop work.

Ham projects that the businesswill be able to gross about $500,000per year, based on two years of esti-mates and invoices of his own work hesaved while working at another shop.


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The Body Shop Garage Opens in Woodward, Oklahoma

See Body Shop Garage, Page 38

with Ed Attanasio

Shop and Product Showcase

with Ed Attanasio

Shop Showcase

with Erica SchroederShop Showcase

The Right Causewith Mike Causey


Erica Schroeder is a writer and editorial assistantfor Autobody News in Oceanside, CA. She can bereached at [email protected].

The front of The Body Shop Garage buildingin 1946

The front of The Body Shop Garage today

The inside of the shop floor area; the Coca-Cola sign on the left wall was in the buildingoriginally and Ham has decided to restore itto preserve some of the buildings history

From the street, Great Bear Auto inFlushing, NY looks like a typical auto

body shop, but the shop is anythingbut typical as I found out after a fewminutes of conversation with owner,Audra Fordin.

Great Bear Auto has been in thesame location for nearly 80 years andhas been run by the same family; how-ever—concurrent with Audra’s own-ership as its first female owner andoperator—the shop’s focus has ex-

panded to include education as well asrepairs.

Great Bear Autowas founded in 1933 atits present location. Fourgenerations of the Fordinfamily, headed by OscarFordin, was involved inthe auto salvage yardbusiness and opened theshop when he grew moreinterested in auto repair.Originally, the familyowned many shops in the

Queens area, but the rest of the fam-ily have sold their shops, leaving onlyGreat Bear which was taken over byhis son, Larry, then Oscar’s grandson,Bill, and now, Bill’s daughter, Audra.

Audra has been in the automotiveindustry for most of her life. Her pro-fessional licenses and certifications in-clude ATTP, NY State Motor Vehicleand Motorcycle Inspector, ASE certi-

fication and certification in AC Re-frigeration.

Additionally, Audra serves on theadvisory committees for FarmingdaleAutomotive Technology and GoGreenAuto. She has also received many cer-tificates from Professional Techni-cian’s Seminars.

Great Bear Auto employs fivepeople, boasting specialists in everyfield including diagnostics, auto bodyand mechanical repair. The shop uti-lizes computerized diagnostics andup-to-date equipment throughout its15,000 square feet including a state ofthe art alignment machine, chassiscooler, ten lifts as well as modernpaint mixers and booths. Great Bear isASE certified and is currently work-ing on becoming I-CAR certified.

Great Bear does not participate inany direct repair programs as theywork for the customer; however, theyaccept all insurance and are happy to

deal directly with the customer’s in-surance company. They also acceptmost extended warranties and offerdiscount car rentals.

As part of their efforts to sustainthe environment, Great Bear Auto re-cycles tires, metal, anti-freeze, oil andbatteries. Additionally, they have re-cently completed hybrid and alternatefuel training and now service and re-pair hybrid and electric vehicles.

Not only is the work completedat Great Bear Auto fully guaranteed,the customer is also educated aboutthe repairs needed and performed.

In order to better serve their cus-tomers, they also boast free Wi-Fi, easyaccess to shopping and transportationand a children’s play area in the waitingroom. English, Greek, Spanish and Ko-rean is spoken in the shop to best servetheir cosmopolitan customer base, andthe shop sends email reminders to their


Great Bear Auto Teaches Customers What They “Auto Know”

with Rick WhiteShop Management

with Stefan GesterkampPaint Management

with Gonzo WeaverGonzo’s Toolbox

with Richard ArnoldJobber Journal

with Dale DelmegeAsk Dale

Mainstream Media

Automakers’ Actions and Analysisby Autobody News Staff

Shop Showcaseby Autobody News Staff

with Ed AttanasioShop and Product Showcase

with Ed AttanasioConsumer Callout

with Walter DanalevichShop Strategies for Savings

with The Insurance InsiderInside Insurance

with Ed AttanasioCustom Corner

with Chasidy Rae SiskCompany Connections

with Chasidy Rae SiskNortheast News

with Chasidy Rae SiskShop Showcase


with Erica SchroederShop Snapshot

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, whoworks in a variety of fields and subjects, and grew up in a family of NASCAR fans.She can be contacted at [email protected].

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Great Bear Auto’s 15,000 square-foot building in Flushing, NY

The other day I was teaching I-CAR’sworkers protection program and I hadthe techs show me their blowers. (I’mreferring to the nozzle blowers on airhoses here, not hand-held dryers.) Ifound 3 illegal ones. I asked the ques-tion “How much is the OSHA fine forthese blowers?” and the productionmanager said it was $7000. I was inArizona, not California, at the time. Iinquired if the shop had been fined andhis reply was “I read your article and Iam in the process of getting OSHA ap-proved blowers.” It made me feel thatall this work is worthwhile. Let’s getstarted on the second installment of thearticle.

Electrical• Check all extension cords for dam-age (repaired with electrical tape andbroken grounds are a big no no).• All high voltage boxes labeled witha DANGER Sign?• All outlet covers installed?• Are all energized parts of electricalcircuits and equipment guardedagainst accidental contact by ap-proved cabinets or enclosures?• Make sure there is a 3 foot barriermarked around all electrical boxes.

Walkways• Make sure that all in ground pullingpots are flush with surface when notin use. Most of the time the covers are

bent and they are out on the floor,which creates a tripping hazard.

• Do you have a spill containmentcontainer (absorbent material in asmall garbage can works, but it mustbe marked and placed in accessiblearea.)

Safety & Signage

• Do you have an OSHA approvedfirst aid kit?

You will also need the proper sig-nage.

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Tech Notes

National News in BriefWEB WINDOW: - www.autobodynews.com

Regional News in BriefWEB WINDOW: - www.autobodynews.com

with Jeremy HayhurstPublisher’s Page

with Karyn HendricksShop Showcase

with David M. BrownShop Showcase

Shop Showcasewith Jeremy Hayhurst

Hey Toby!with Toby Chess

California Autobody Associationwith David McClune

Collision Repair Association of CA.with Richard Steffen

Insurers Excel at Steeringwith Richard Steffen

Year in Quoteswith John Yoswick

Transition Planningwith John Yoswick

Mainstream Media

My Turnwith Joe Momber

Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yardoperator. Toby is universally known in the collision industry for his charitable works,worthy causes, and magic tricks. He can be reached at [email protected]

Getting OSHA-Compliant on Signage, Electrical and Power Tools

some of the more common ones thatare needed in the body shop.

Flammable and Combustible Materials• Is proper storage practiced to mini-mize the risk of fire including sponta-neous combustion?• Are all hazardous drums with flam-mable materials grounded?• Are all flammable liquids kept inclosed containers when not in use?• Are stored oxygen tanks separatedby 25 feet from flammable stored gascylinders?

• Does thefacility haveenough fireextinguish-ers as percity ordi-nances?• Are all fireextinguisherscharged andare properlytagged (youalso havesomeone inthe

shop check and sign thetags once a month)?• Do you have a class D fireextinguisher for a magne-sium fire?

Here is a chart of the sym-bols on the fire extinguisherand what materials it can beused.• Are all fire extinguishersfree from obstruction?• Is a fire extinguishermounted within 10 feet of

any inside storage area of flammablematerials?

Power Tools• Are portable fans provided with fullguards or screens having openings of½ inch or less?• Do all power tools have groundedcords?

Batteries• Are batteries stored on a spill con-tainment tray?The next article will deal with MSDS

sheets and safety programs that arenecessary for OSHA compliance.


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Ham wanted to estimate how muchwork he could produce by himselfwhile finding out if owning his ownshop would be financially feasible.

“I’m really an ‘Owner/Operator’—the business depends on my pro-duction too,” said Ham.

The business has really taken offsince it opened, and Ham has decidedthat he won’t be taking any DRP con-tracts in his shop. “I’ve really resistedthat [DRPs]; there’s supposed to be no

steering but as far as I’m concernedthat’s what it is,” said Ham.

Ham feels as though DRP pro-grams put the insurance adjuster’s jobon the body shop, and that the qualityof his work is all he needs to rely on tobring plenty of work into his shop.

Ham also feels that the ‘benefits’of a DRP for a shop—the supposed in-crease in business from insurance com-panies driving customers to their DRP

shops—isn’t all it’s cracked up to be.“How do they know I wouldn’t

get 80% of the business they’re sup-posedly driving to my shop on myown?” asks Ham.

Ham says he is confident in hisabilities and his work as well as hisability to get work into his shop.

“I’ve already got so much goingon, I can’t do the adjusters’ job forthem too,” said Ham.

Ham grew up in Woodward andmet a lot of industry people while work-ing for nearby shops over the years,making finding new customers andvendors for his own shop much easier.

Ham relied on English Color andSupply (see Autobody News May2011) to supply him with all his paintneeds, but they went above and be-yond what was expected.

“They’re people that will reallystand behind you,” said Ham.

Ham buys his paint—BASFbrand—as well as a spray booth and aused frame machine from EnglishColor. They also supplied him withsome items he needed on consign-ment; a new paint bank, cabinet, scale,a computer and paint shaker. Hamthought they were going to providethese materials used but they camethrough with all new supplies for theshop.

The biggest obstacles Ham raninto while getting his business startedmostly had to do with securing a smallbusiness loan. He applied for the loanin May and was not approved untilNovember.

“I really wanted to get this thingstarted in the summer because I knewthe winter would slow things down,”said Ham. But with the bank loan tak-ing so long Ham had no choice but tostart getting the business running in

the winter.Starting in the winter slowed a lot

of the supply deliveries Ham neededand made some of the final buildingrenovations difficult. Capital im-

customers to keep them updated on thestatus of their repairs.

Seeking to empower women andput control back in the drivers’ hands,Audra also teaches a free monthlyworkshop: “What Women Auto

Know.” Using an analogy to compareparts of the car to parts of the humanbody, her comprehensive courseteaches women about maintenance,

safety, tires, brakes, emer-gencies, power steering,bulbs, coolant, fluids, andwipers, as well as any-thing her audience mayhave questions about. Stu-dents also learn some easydo-it -yourself car repairsto enable them to savemoney.

The course has re-cently expanded to in-clude an iPhone app,available through iTunes,

as well as clothing and a DVD whichare available at www.womenauto-know.com.

Due to her general expertise inthe automotive industry, Audra Fordinalso sits on a panel of experts which

participate in a weekly show, Autolab,on ABC radio.

During their show on March 5,2011, the panel discussed the recentlaw in England to charge women andmen the same insurance premiums,and they responded to a consumerreport regarding the reliability of un-derride guards on big rigs. Thepanel, as usual, fielded calls from lis-

teners with questions about their ve-hicles.

According toAudra, “Everything I dois against the stereotypeof the way the automo-tive industry is run.”

She cites the raretyof being a woman incharge of an auto shop,her motto to “tell NOTsell,” and her focus oneducating the customerabout vehicle repairs,safety and after care, asevidence of what shops

can do to make themselves stand outamongst the competition.

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Audra also participates in a weekly radio show through ABCcalled Autolab

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Body Shop Garage

(l-r) Body man Steven Ferguson, Body manHunter Wellman, Kurt Ham and owner KevinHam all wore Marines T-shirts to pay tributeto our armed forces

See Body Shop Garage, Page 39

provements like pouring new con-crete and laying a new roof were puton hold because they are temperature-sensitive tasks.

Ham also found a lot of the localand state coding enforcement to be ahurdle for opening the business, butever since it’s been open Ham has hada steady stream of work.

“There’s just been this buzz,”said Ham, “I never thought I could doit—and now I’m getting to do it.”

Ham’s hot rod business has notstopped either. Although he’s beentrying to focus more on the commer-cial, body shop end of the businesshe’s still been getting calls and re-quests for his hot rod services—thechief reason for his desire to purchasea third connected building and furtherexpand his business.

“I can’t turn off the hot rod busi-ness,” said Ham, “It’s part of me.”

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The Insurance Research Council(IRC) found in a survey that 68% ofadults oppose local governmentscharging accident response fees to in-dividuals involved in traffic accidents,according to their insurance industrysurvey. Requiring insurance compa-nies, rather than the individuals in-volved in an accident, to pay accidentresponse fees had little impact on thelevel of support for accident responsefees. Lawmakers in a dozen stateshave enacted legislation prohibitinglocal governments from imposing ac-cident response fees. Several morehave debated similar legislation. Theinsurance industry generally opposeslocal response fees. When told that re-quiring insurance companies to payaccident response fees could meanhigher auto insurance costs, 69 per-cent of survey respondents disagreedwith the idea of local governmentscharging accident response fees.

“Efforts to fund emergency re-sponse services through accident re-sponse fees stand in direct conflict withthe fundamental notion that certaingovernment services should be paid for

by all taxpayers—not just those whoare unlucky enough to actually needthe services,” said Elizabeth Sprinkel,senior vice president of the IRC.

The study, Public Attitude Moni-tor 2011, Accident Response Fees,was based on telephone interviewswith 1,012 adults countrywide con-ducted in January 2011 by the marketresearch firm Harris Interactive.

The IRC results track with an-other survey by Harris Interactive forthe Property Casualty Insurers Asso-ciation of America that also foundthese fees unpopular. In that survey,three out of four adults (76 percent)said they believe their taxes cover thetime and services provided by emer-gency response providers following atraffic accident and additional acci-dent response fees charged by localgovernments are not necessary. TheIRC results track with those of an-other survey by the Property casualtyInsurers of America (PCI). Three outof four adults believe their taxes coverthe time and services provided byemergency response providers fol-lowing a traffic accident.

Americans Oppose Accident Response Fees

Chrysler Group repaid $7.6 billion inloans to the U.S. and Canadian gov-ernments on May 23, nearly twoyears after the No. 3 automaker wasrescued.

The company said it made apayment of $5.9 billion to the U.S.Treasury and $1.7 billion to ExportDevelopment Canada, retiring loansthat allowed Chrysler to exit bank-ruptcy in June 2009. Chrysler com-pleted repayment of the loans sixyears ahead of schedule.

“Less than two years ago, wemade a commitment to repay theU.S. and Canadian taxpayers in fulland today we made good on thatpromise,” Sergio Marchionne, chiefexecutive officer, said.

Previously Marchionne an-nounced, “Chrysler is undergoing anextraordinary industrial and finan-cial turnaround, and Fiat is ready totake control, in order to bring evengreater stability and strength to therelationship in the interests of both,”he said.

Chrysler Repays GovernmentBailout Loans Six Years Ahead

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Body Shop Garage

Barrett Smith, with Autodamage Ex-perts, has released a voice recordingof a call made by a representative ofInfinity Insurance to one of Ray Gun-der’s customers. Listen for yourselfby downloading the WAV file atwww.autobodynews.com.

The recordings have been widelyquoted in the appealed case which wasrecently resolved in favor of State Farm.

Smith comments: “This type ofunderhanded practice goes on moreoften than most are aware or would liketo believe and needs to be curtailed, andone sure way is for it to be exposed tothe masses and for those who conductthemselves in this way to fear exposure.

“For those of you who know RayGunder and the manner in which Gun-der’s Auto Center operates, listening tothis recording will likely make yourblood boil... it did mine. This “sup-posed” claim professional is trying theirbest to interfere with and undermine therelationship between Gunder’s and atleast one of its customers. Who knowshow many times this takes place?

Continues Smith, “One has to askthemselves, what type of person has

the lack of conscience and nerve to lieto a customer about a shop in whichthis claim-person has never dealt withor have first hand information to sup-port what they say?

“The simple fact is she doesn’tand it is apparent she is merely doingas told and reading from a preparedword track intended and designed todisparage Gunder’s good name anddestroy the confidence the customerhad in selecting Gunder’s. A selectionbased upon their experience in havingtheir vehicles repaired at Gunder’smore than once in years past, and haveearned their respect!

“This so-called claim professionallikely considers herself to be a honestand ethical person who cares for herfamily and attends church on Sunday;but on Monday, goes to work and doesthings that she is told….regardless ifright or wrong and does so despite herpersonal, ethical or moral convictions,just as a mercenary or a paid assassinwould go about their business, hidingbehind the corporate Infinity Badge.

“So one has to ask why a large in-surance company would do this? Sim-

ple, because they have an agenda tocontrol the collision industry and theyhave done so without being held ac-countable and have reaped huge prof-its. Profits that were once the collisionrepairers.

“The very scary part; they andothers who chose to conduct businessin this manner will continue to do soto discourage any repairers whochoose to step up and say no to un-derpayments for necessary processesand materials needed to properly servetheir clients.”

Ray Gunder adds, “Know thisand take serious heed. As long as therewards outweigh the risks, like a childsneaking cookies, insurers will con-tinue to increase their efforts to profitoff the backs of others’ hard work andsweat while avoiding the liabilities thatcome with underpaid repairs. And ifyou don’t merely submit and allowthem free reign over your business,you too will become a victim of thisvile and unethical practice of lies anddeceit about you and your business.

“Just like slapping the child’s handfor taking too many cookies, or punch-

ing the bully in the nose when he comesto take your lunch money, it’s onlywhen the risks begin to outweigh the re-wards that bad behaviors will change.

“Each repair professional outthere needs to make a conscientiouschoice to either become a part of thesolution or remain part of the problem.The choice is yours. Use it wisely.

“As for Gunder’s, we will con-tinue to do our part to instill accounta-bility and deter insurers from harmingus and our customers. There is strengthin numbers and together we con con-quer these types of practices in a shorttime frame… regardless, you can beassured I’ll continue to “Pound ThatRock.” The person or persons respon-sible for these slanderous, outrageouslies (Lisa Whitehurst being one ofthem) will be held personally account-able. I have to wonder if she knows theeffect her hurtful lies could have thetwenty-five families dependent onwork at Gunder’s Auto Center.”

Ray GunderGunder’s Auto Center(863) 688-7897


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On May 3, Infinity Insurance’s Re-gional Claims Manager, Tim Wal-dron, called and spoke to RayGunder of Gunder’s Auto Center inLakeland, FL, and repeatedly apolo-gized for the recent comments madeby an Infinity claims person to one ofGunder’s customers who captured iton a recorder.

The voice heard is that of Infin-ity Insurance Claim Person, LisaWhitehurst saying the followingword track to one of Gunder’s AutoCenter’s customers: “I spoke with ourre-inspector, who went out and re-in-spected the vehicle at the body shop,”Whitehurst said in the message. “Hesaid that this body shop has beenknown to give us issues in the pastwith other vehicles that they’ve re-paired and apparently they are knownfor overcharging a great deal for theamount of damages and trying to addthings that aren’t relevant to, youknow, the repairs. They’re also knownfor holding the vehicle hostage untilall the payment is made.”

As a result of the egregiousstatements made by Infinity’s rep-

resentative, Ray Gunder immedi-ately contacted his legal counsel,Brent Geohagan, who promptlysent a letter placing the insurer’sclaims manager on notice and de-manding that Infinity Insuranceagree and confirm, in writingwithin 10 days, that such wrongfulconduct on behalf of any InfinityInsurance representative willcease and desist immediately withno re-occurrences. In response,Tim Waldron, Infinity InsuranceCompany’s Regional Claims Man-ager, called and spoke to RayGunder personally and repeatedlyapologized for the recent com-ments and conduct of the claimsperson and her manager and ad-vised Ray that this was an isolatedincident and further assured himthat the matter would be addressedand that no such conduct wouldtake place in the future with Gun-der’s nor any other repairers stat-ing: “this is not the way Infinityconducts its business.” Ray Gun-der says he has accepted the apol-ogy.

Infinity Insurance Apologizes for Gunder’sAuto Center Customer Recordings Xirallic® pigments from Merck create

glitter and sparkle in automotive coat-ings and provide a distinct shimmer toenhance color intensity and color pu-rity. Xirallic® pigments are suited forexteriors due to their additional layer,which provides improved weather re-sistance. The only place where Xiral-lic is made is in Onahama, Japan,about 45 km from Tokyo ElectricPower Co’s Fukushima reactor, whichwas closed soon after the March 11magnitude 9.0-earthquake.

The shutdown of the plant af-fected many of the world’s auto mak-ers, including Ford, Chrysler,Volkswagen, BMW, Toyota and GM.Previously Chrysler told dealers thatthe company plants to limit orders forvehicles in 10 different colors that em-ploy Xirallic pigment. Ford had al-ready told dealers it could no longertake orders for F-150 trucks and othermodels using “tuxedo black” andthree shades of red.

The plant will be one of the firstJapanese parts facilities that will moveelsewhere as a result of the disaster.Germany’s Merck said May 10 it willshift production of Xirallic pigments

from Japan to Germany.Tsunami and radiation damage

forced Merck to halt production inMarch. Operations at Onahama re-sumed May 8. Regular productionoutput is expected by June. It willcontinue until Merck has readied itsplant in Germany.

According to The Nikkei, timingand location for the new site have yetto be determined.

“Our top priority is to ensure assoon as possible an uninterrupted sup-ply of Xirallic pigments to our cus-tomers around the world,” said PeterHalas, Head of the Pigments and Cos-metics unit at Merck.

These parameters no longer fit aplant 35 miles from the Fukushima re-actor, and in a town, where tsunamiwaves as tall as buildings were ob-served.

Xirallac® Pigment Plant to Relocate fromJapan to Germany Following Tsunami


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Industry Interviewwith Janet Chaney




Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta,California. Lee is president of the CRA as well as an advocate for many other industrygroups. He can be contacted at [email protected]

The danger in focusing on the past isthat we sometimes forget to deal withthe present in a productive manner. Bythis I mean that we want everything tobe as is was and keep thinking thatthings soon will return to the way theywere pre-recession.

I’m not trying to say things won’treturn to our past prosperity but wecannot let it control our actions today.I took a look at my shop recently andrealized that I was putting off neces-sary maintenance on almost every-thing. My mindset was ‘as soon as weget the extra money I will get thatdone’ or ‘I will buy that extra piece ofequipment.’ Without realizing it, I hadput everything on hold.

I was also unconsciously sendinga message to my staff that things weremuch worse that they actually were.This in turn created a trickle down ef-fect that affected the morale of the en-tire shop. I didn’t realize any of this

until I heard some rumors that wewere in financial trouble. People hadbegun to draw their own conclusionsbecause we had tightened up so much.

Yes, we needed to adjust andtighten things up, but we were farfrom any financial trouble. Other thancomplaining about my credit lines get-ting cut nothing I said ever impliedthat we were in any financial trouble.But simply because we had begun towatch everything and make everyoneaccountable people drew their ownconclusions.

The danger is that perception canbecome reality, to many people, so tosay, “don’t worry, we are fine” didn’tseem to boost my staff’s confidence. Ihad an employee meeting to try to killany rumors. That seemed to help butthere was still a sense of uneasinessamongst my staff. This was amazingbecause what concerned them themost was something that I hadn’t even

thought about, which was their futureemployment.

As a leader, I was so focused ontightening up that every time anyoneask to spend money on anything I justcomplained and said ‘no.’ So the resultof my attitude created insecurityamong those I employed. The attitude Ihad taken to belt tightening gave themthe feeling that they may be my nextcut, which was not the case at all. Thisdoesn’t mean that I wouldn’t terminatea deadbeat employee but unconsiouslyI was making everyone nervous andthis was not my intention. I was addingadditional stress to my crew and I wasneither a good leader nor helping themproduce, as they should.

I’ve realized now that eventhough times are different they are re-ally better than any of us want to admit.What I mean is that things could bemuch, much, worse. Everything comesdown to how we look at things. The

message we send our employees withour attitude as owners can reallychange how they see things. I starteddoing some much-needed maintenanceand purchased some more key piecesof equipment. I haven’t thrown cautionto the wind because we need every-thing we have done or purchased but Ilet employees know it was happening.

The payoff is already evident be-cause I am watching my staff’s attitudebecome more focused and more re-laxed. I am seeing that no matter howoften told them ‘everything is fine’they needed to see action to feel com-fortable about their future with me. Iwas sending the wrong message by notmoving ahead because I was lookingback all too often. Now, all of myplans are for the future and where weare heading. Because the “good olddays” will only be the “good old days”as long as we allow them to be. Lookto the “Good New Days” Ahead…

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Ford said May 2 that it has found non-metallic black and metallic red paintsto replace colors that were not avail-able after the March 11 Japan earth-quake. “Our team has done awonderful job of putting in replace-ment colors and those will be pro-duced in the June and July timeframe,” Mark Fields, Ford’s presidentof the Americas told AutomotiveNews. “The order bank is now openagain.” On March 25, Ford told deal-ers they could not order any moremetallic tuxedo black and severalshades of metallic reds.

German supplier Merck KGaA,the sole producer of a paint pigmentfor automakers such as Ford andChrysler Group, hasn’t been able tooperate its Japanese factory because itis too close to a nuclear reactor crip-pled by the quake (see related storythis issue.) Merck’s Onahama factorycould take four weeks or more torestart once company engineers cangain access to the facility.

Six other metallic colors in FordMotor Co.’s lineup will go out of pro-duction in the next few weeks and

months because of the shortage of Xi-rallic, Ford spokesman Todd Nissensaid. Those are: Bordeaux reserve,lava red, Kona blue, sangria red, earthand bright magenta, Nissen said. Fordwill replace those colors with similarmetallic shades, he said. “In the enddealers and customers will still havea full range of colors to pick from,”Nissen said. The color replacementwill not affect vehicle pricing.

Ford and Lincoln dealers will re-ceive specifics about when certain ve-hicles and those various colors will goout of production, and when they canorder replacement colors. The updateswill come in the next few weeks andmonths, Nissen said.

For now, Ford will replacetuxedo black on 2011 models with anonmetallic color simply called“black.” It’s similar to the black Fordoffers on the 2011 Mustang.

Tuxedo black is featured on theFord F-150 and Super Duty pickups,the Ford Expedition and Lincoln Nav-igator SUVs, the Ford Explorercrossover and the Ford Taurus andLincoln MKS sedans. The metallic

reds are available on the Super Duty,Expedition, Navigator, 2012 FordFocus compact, the Ford Econolinevan and the Ford Ranger pickup.

The color red fire will be re-placed by toreador red, Nissen said.He did not have other replacementcolor names yet.The other outgoing colors with Xiral-lic affect most of the Ford and Lincolnlineup but Ford will slowly phasethose out as it offers the replacementshades, Nissen said.

All of Ford’s replacement colorsare paints Ford has used in the past oroffers now on certain vehicles, suchas the Mustang’s black.

“We’re still using the same paintsuppliers,” Nissen said. “The metalliclook doesn’t only come from Xirallic.We’ve used pigments before that gavemetallic looks.”

In the case of tuxedo black, Forddidn’t have a similar metallic formu-lation that could be developed in ashort period of time, Nissen said.That’s why Ford is using the sameblack it has elsewhere in the lineupwhile it works on a metallic replace-

ment, Nissen said.Ford does not anticipate the hic-

cup in the outgoing metallic colorswill hurt sales. And Ford plans tobring the original metallic colors backeventually.

Said Nissen: “As that supplier,Merck, comes back on line, we’ll con-tinue to work to see if that pigmentcan be phased back in.”


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The Women’s Industry Network(WIN) held their 5th Annual Confer-ence May 1–3 at the Westin GaslampHotel in San Diego. WIN was organ-ized to enhance the collision repair in-dustry—and the role of women withinit—through education, networking,and sharing of resources.

Attendance for this year’s con-ference was up 30–40 percent, ac-cording to Chairwoman Kim White.The event attracted over 150 attendeesand featured speeches from motiva-tional and industry experts as well asbreak out sessions where attendeescould receive detailed, personalizedtips for their businesses. The eventwas attended by Autobody News’ As-sistant Editor, Erica Schroeder, andBarbara Davies, General Managerand Co-owner.

Speakers discussed a variety oftopics designed to enhance businessand personal skills as a whole.

“We are proud to offer sessionsthat will spark new ways of thinking,better performance, and greater un-derstanding of industry issues,” saidWhite.

In the opening session White alsothanked the current board for theirwork this year including the organiza-tions first, and very successful, boothat the International Autobody Exposi-tion and Congress (NACE) in 2010.

The organization was able to in-crease their membership and exposurewith the booth as well as theirWomen’s Track Classes that they of-fered during NACE.

Executive Coach Jennifer SertlThe information sessions started with

keynote speakerJennifer Sertl dis-cussing BusinessStrategy and Lead-ership in the 21stCentury. Sertl ispresident andfounder ofAgility3R, an or-

ganizational effectiveness companywhich focuses upon the optimizationof customer value by aligning corpo-rate objectives with the individuals re-sponsible for delivering results. Theco-author of Strategy, Leadership, andthe Soul gave her thoughts on businessstrategy in a male-dominated arena.

Sertl gave copies of her book toeveryone attending the keynote andawarded audience member, AmandaShelly of Saint-Gobain Abrasives,with the ‘Ms. Anthony’ award, repre-sented by a contemporary version ofSusan B. Anthony’s trademark alliga-tor bag. Sertl had spoken about An-

thony’s influence on her life and thelives of women everywhere during herspeech. She supports the Susan B. An-thony House in her hometown ofRochester, NY.

Mitchell’s Greg HornGreg Horn, from Mitchell Interna-tional, gave an Industry Trends updatefollowing Sertl’s keynote. Horn beganby giving some statistics about ourdriving habits over the last few years.

Accidents are at their lowest ratesince 1950 and that Americans havebeen driving less as gas prices continueto soar—two factors that will no doubteffect the collision repair industry.Horn gained nods and chuckles fromthe predominantly female audiencewhen he compared statistics on maledriving habits vs female driving habits.Male drivers are more reckless andcause the vast majority of accidents.

Horn also recounted that the dis-ruption for Japanese automakerscaused by the earthquake and tsunamiin March could result in more thanjust scattered and short-term partsshortages. The most popular Japanesesedans are assembled in U.S. plantsusing locally sourced parts, Horn said,but parts shortages are more likely forthe higher-end brands, such as Lexus,and for smaller vehicles such as the

Honda Fit and Toyota Prius, which arestill built and imported from Japan.But Japan also is the third-largest pro-ducer of automotive-grade steel, andexports 43 million tons of it a year.

Decreases in output from thosefactories (all Japanese companieshave been asked to reduce their elec-trical use by 25 percent) are raisingsteel prices globally, Horn said. Thatwill likely affect pricing for all sheetmetal parts, OEM and non-OEM, andas those prices rise, prices for usedparts likely will rise as well.

“So you’re going to see thisevent’s impact stretch well into nextyear,” Horn said. “We’ll have to waitand see what the final tally is, butwe’re going to see inflation overall inaverage repair severity because of ris-ing parts prices.”

He also talked about the viabilityof alternative-fueled vehicles in thecoming years due to a federally man-dated mpg average of 35.5 by 2016for all new cars and trucks. This willchange the way cars are repaired andthe cost of repairs due to new technol-ogy and materials used in new vehi-

cles to make them meet these stan-dards, said Horn.

WIN then held their AnnualMembership Meeting during lunch onMay 2, where they acknowledged thework done by their separate commit-tees this year and announced their newboard for 2011-2012.

Current Board Member MaryKunz not only won the Cornerstone2011 Award for her contributions in2010, but was also honored as one of thedeparting board along with Kim White,Jeanne Silver and Geri Kottschade.

The 2011–2012 Executive Com-mittee was named as follows; Victo-ria Jankowski, Chair, JenniferJustice-Haley, Vice-Chair, MargaretKnell, Administrative Vice-Chair,Denise Caspersen, Secretary, andTeresa Bolton, Treasurer. OtherBoard Members for 2011 will be an-nounced shortly. The goals for the2011–2012 Board will be to grow thenetwork, build a sustainable fundingbase and align and build an infrastruc-ture to support WIN’s vision.

The six students who won schol-arships to attend WIN this year were


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Women’s Industry Network Conference Held in San Diego

The Westin Hotel Gaslamp

Jennifer Sertl

Keynote speaker Jennifer Sertl and ‘Miss An-thony’ award winner Amanda Shelley

also acknowledged; Ozarks TechnicalCommunity College’s Hannah Nick-les, Southeast Community College’sKendy Maddox, Center of AppliedTechnology North’s Rickia Mines,College of Western Idaho’s JessicaCrowley, Green River CommunityCollege’s Jessica Gauthier, andSoutheast Community College’sMollee Lunkwitz.

Student Jessica Crowley also wonthe Cornerstone Scholarship Award, anaward presented by Teresa Bolton thatconsists of a financial contributionfrom WIN to continue school.

“Being awarded the CornerstoneScholarship is a gift. I plan to use this

gift to give back to others,” saidCrowley. “I aspire to emulate eachand every woman that I came in con-tact with at the 2011 WIN Confer-ence.”

Two Instructor Scholarships toattend WIN were given this year toMichele Charlebois-Didrecksonwith Ozarks Community College andRodney Bolton with The Center ofApplied Technology North.

Two additional scholarships weregiven to collision repair center em-ployees to attend WIN, winners wereTona Haywood with Gautier’s AutoBody and Glass, Inc. in King George,VA, and Teresa Super with TGIFBody Shop in Fremont, CA.

Day two of the conference beganwith the Annual Scholarship WalkPresented by Enterprise; over 100women attending the conference par-

ticipated in thewalk and wereable to raise over$5,000 through in-dividual and cor-porate donations.

On thelast day, keynotespeaker Lauren

Fix opened with a discussion entitled‘Using Your Female Force for GoodCar-Ma.’ Fix is anautomotive writer(Guide to LovingYour Car, The CarCoach) as well as aformer race cardriver, mechanic,and driving instruc-tor, known for manymedia appearances.

Fix focused on‘what comes around,goes around’ andthat women in a male dominated in-dustry need to focus on empoweringthemselves.

“The glass ceiling is only there ifyou put it there,” said Fix.

Fix said she was impressed withWIN and the conference itself, shehad excellent feedback from attendeesafter her speech and said the group re-ally represented all different aspects ofthe industry.

“I’d never heard of the group[WIN] before being asked to speak atthe conference—but I was thoroughlyimpressed,” said Fix.

Napping is a Good ThingThe last keynote speaker of the con-ference was Dr. Sara Mednick, Dr.Mednick is an Assistant Professor ofPsychiatry at UC San Diego, who re-viewed research on sleep deprivationand naps. Eliciting chuckles from theaudience when she announced she

would be dis-cussing ‘napping,’Mednick ex-plained the linkbetween adequateREM sleep andproductivity andcreativity. Show-ing that adequate

sleep drastically affects their work-force’s productivity had the audiencetaking the topic a bit more seriouslyby the speech’s close.

Mednick showed charts from herresearch showing that REM sleep dur-ing a daytime nap can make up forsleep deprivation at night, and en-couraged businesses to allow appro-priate rest breaks, including napping.With more productivity demanded bybusinesses, Mednick showed that get-ting adequate REM sleep is not onlycritical, but is a much more permanentsolution then downing a cup of coffee.More information about Dr. Med-nick’s research can be found at

www.takeanap.info.The conference also consisted of

networking breakfasts and activitiesdesigned for members to get to knoweach other better as well as severalone-hour break out sessions in 5 topicareas.

Leadership From the Inside OutKeynote speaker Jennifer Sertl spokein a breakout session using themetaphor of a light bulb’s wattage todescribe how to ‘separate your focus.’She told everyone to decide a‘wattage’ of focus they have in a givenincrement of time (weeks or months)and to separate that wattage into a cer-tain portion for each category includ-ing internal relationships, externalrelationships, organization, imple-mentation, industry education and re-flection.

Sertl also encouraged attendeesto make a list of 18 people they hope

to meet in their lifetime. This list is notso much about meeting the person, butabout knowing how to handle the sit-uation if you were to meet the person.

“You can’t admire a quality insomeone without having that qualityor the potential for that quality inyourself,” said Sertl.

Social MediaSocial Media guru Helen Todd gave abasic overview of how a business’ so-cial networking presence can reachmore clientele if used correctly. Shegave tips on how often to post on so-cial media pages, what to post andother advertising options within socialmedia that can garner attention foryour business.


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Jessica Rose Crowley (L) receiving theCornerstone Scholarship Recipient Awardfrom Teresa Bolton (ASA) and Mary Kunz (R)

Lauren Fix

All 2011 scholarship winners lined up at the Opening Session

With attendance of over 150, sessions andnetworking games were quite busy

Dr. Sara Mednick

The Automotive Recyclers Association(ARA) is calling on Congress to re-view implementation and enforcementof the National Motor Vehicle Title In-formation System (NMVTIS). Asmany of the nation’s waterways hit his-toric crests, thousands of motor vehi-cles from Illinois to Mississippi havebeen submerged under these waters.

Now more than ever, it is essentialthat NMVTIS be fully implementedand the underlying statute enforced tohelp prevent the unknowing sale ofthese flood-damaged vehicles.

NMVTIS, a national electronicsystem that provides consumers withvaluable information about a vehicle’scondition and history, can play a cru-cial role in helping ensure that theseflood-damaged vehicles are not sold tounsuspecting consumers in the used-car market.

“After Hurricane Katrina, the De-partment of Justice (DOJ) reported thattruckloads of flooded vehicles werebeing taken out of Louisiana to otherstates where they were dried out,cleaned, and readied for sale to unsus-pecting consumers in states that do notbrand flood vehicles”, said MichaelWilson CEO of the ARA . “NMVTISmust be fully implemented and utilizednow so that similar events are not re-peated, and flood damaged motor ve-hicles can be efficiently tracked beforeunsuspecting consumers purchasethese vehicles”, Wilson added.

Flood damaged vehicles are con-sidered ticking time bombs, slowly

being eaten away as water corrodesonboard computers and other vitalcomponents like airbags systems.These vehicles are deemed unfit by in-surance companies, but too often aregiven token repairs and sold to unsus-pecting consumers.

NMVTIS helps prevent vehiclehistories from being “washed” or con-cealed because it serves as a nationalrepository of vehicle brand informa-tion. Fully implemented, NMVTISwill have data from every state andwill be queried before any state issuesa vehicle a new title, making it ex-tremely difficult to wash a “flood” des-ignation from a motor vehicle.

Such fraudulent and unsafe prac-tices can only be stopped if all statesparticipate fully in NMVTIS and all“individuals” and “entities” that are re-quired to report to the system are heldaccountable. “Regrettably, DOJ haslimited resources to do this. Congressshould intercede and permit individualstate enforcement agencies to workmore closely with DOJ to identify andimplement efficient methods to in-creased participation.

One way to enhance the pro-gram’s success is to allow the finescollected from NMVTIS violators tobe directly allocated back into the pro-gram and its law enforcement activi-ties. Only with sufficient resources canDOJ and the appropriate state law en-forcement colleagues target all busi-nesses/individuals whom are operatingunder the radar and fulfill their obliga-

tions under the statute”, Wilson asserts.Since 1943, the Automotive Re-

cyclers Association (“ARA”) repre-sents an industry dedicated to theefficient removal and reuse of “green”

automotive parts, and the proper recy-cling of inoperable motor vehicles.

ARA represents the interests ofover 4,500 auto recycling facilities inthe United States.


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Todd favored social media giantFacebook during the presentation, cit-ing that most of the conference atten-dees used Facebook above othersocial networking mediums to pro-mote their businesses.

She also favored a social mediapresence over a traditional websitechiefly due to the fact that a website isreally a ‘brochure’ about your servicesand business while a social mediapage is interactive and allows users tocreate a conversation about your serv-ices and business—a marketing toolthat cannot be quantified. Socialmedia questions can be directed [email protected]

You Are Your Business CardAnn Fulton presented a lively discus-sion about how important it is to dressappropriately for your own profes-sional, age and lifestyle and how to

important your own personal coloringis in selecting clothes and accessories.Ann is the owner of Never Pay Retailin Denver, CO.

Lean in the Front OfficeEmphasis has been placed on focusingon lean processes in body shops how-ever going lean also applies to processesand organization in the front desk areaof any business. There is a large amountof paperwork involved in any repairshop, and assuring that the paperwork isflowing quickly and correctly through-out the job is essential. Eliminating re-dundancy and clutter and accuratelylabeling all supplies is a quick way toget started. The quickest, most efficentway paperwork can flow is the path itshould take.

Hot Button Employment IssuesJim Webber, an experienced employ-

ment lawyer and human resourcesmanager from Washington state, ledthis session focused on legal require-

ments for employ-ers. The sessioncovered harass-ment issues andprevention, work-place ethics, andtips for supervi-sors. Webberpointed out that in-

vestigating harassment and discrimi-nation complaints can be stressful andfrightening. The outcome of an inves-tigation provides the basis for criticalemployment decisions and a prompt,thorough and unbiased review is an es-sential part of both preventing liabilityand maintaining a healthy workplace.Webber created the blog Evil Skippyat Work to provide an entertainingview of what makes workplaces great

and not-so-great. See this blog at www.evilskippyatwork.com and also atwww.jimwebber.net.

SponsorsThe WIN event was sponsored by Ak-zoNobel, Allstate, ASE, BASF Refin-ishing, Enterprise, DuPont, State FarmInsurance, Hertz, 3M, Sterling Auto-body Centers, GEICO, Fix Auto,CARSTAR, PPG, Marco’s CollisionCenters, CSi Complete, ABRA AutoBody and Glass, LKQ, CAPA, FinishMaster, Symphony Advisors, 1-800Radiator, Sherwin-Williams Automo-tive Finishes, Mitchell Internationaland CCC Information Services.

“WIN has accomplished so muchthanks to the support from our mem-bers and sponsors ... we are incrediblyfortunate and ever grateful for theirgenerosity,” said Kim White. Pleasesee womensindustrynetwork.com

Jim Webber

ARA, Congress to Ensure Flood Damaged Vehicles Don’t Enter Used Market

This is a continuation of our articlestarted in April’s Autobody News. Toread part one, see www.autobo-dynews.com

Keenan Autobody makes effortstoward using green, not just in theirlogo, but also in their business prac-tices as part of their effort to protectthe environment. Keenan at Middle-town, Delaware is the only shop oftheir eight locations which boasts

solar panels, demonstrating Keenan’sefforts to protect the environment.

Few shops in the country usesolar energy to operate, butKeenan opened their Middletownshop in 2009 as a prototype with thehopes of expanding the use of solarpower to the rest of their shops in thefuture. Per Craig Camacho, Market-ing Director of Keenan Autobody,“we are in growth mode at the mo-ment and are looking to acquire an-other shop or two prior to expandingour solar, but yes, we will be movingforward with solar at more of ourshops”.

Using 248 solar panels whichtransfer solar energy into usable elec-tricity, Keenan at Middletown utilizessolar power for 65% of their energyneeds. When they are not operating,they resell the recycled energy creditsback to the grid. According to VicePresident of Keenan Autobody,

Michael LeVasseur, “this was notonly the right thing to do for the envi-ronment but it was also a solid busi-ness decision”.

Several of the solar panels are lo-cated on the front left side of thebuilding, but the majority of the pan-els are installed in the half acre fielddirectly behind the shop. Keenanplans to expand this project to the rest

of their shops eventually; however, inthe meantime, Keenan Autobody con-tinues to make other efforts as part oftheir Green initiative aimed at con-serving the environment. All Keenanshops use water-borne paint systemsand participate in recycling as part ofKeenan’s Green Initiative.

The Middletown shop consists of14,000 square feet and employs four-teen workers. Like Keenan’s othershops, Keenan at Middletown utilizesall of the latest equipment, such as thecar-o-liner, the evo-system and the lat-est inverter-type resistance spotwelders. In addition to being ASEcertified, they are considered I-CarGold and a CIC Class A facility.

All of Keenan’s shops are Veri-facts VQ shops and are in compliancewith Envirosafe. Keenan is affiliatedwith ASA, CIC, SCRA, NABC, FixAuto and DuPont Performance Al-liance.

Keenan processes insuranceclaims according to CMS standardsper the industry standard, and theyparticipate in up to 21 direct repairprograms at each shop.

Keenan Autobody utilizes a 10-step production process in order toprovide their customers with qualitywork, and they also offer a nationallife-time guarantee, promising to cor-rect any future problems regardless of

where the customer moves throughoutthe nation. Keenan also participates inmany fundraisers for local charities,such as the Ronald McDonald Houseand Recycled Rides, among manyothers.

In 2010, Keenan at Middle-town was one of the shops which wereinvolved for the first time with theFirst Responder Extrication Eventwhich benefits firefighters, police andEMTs. During this event, professionaltrainers instructed these civil servantson the proper ways to extract peoplefrom cars in order to avoid explosivesand ensure safety practices. Keenanplans to participate in this event annu-ally.

Keenan was founded in 1952 byJoseph Keenan in the back of hisgarage, but the organization has ex-panded to include eight shops. Al-though Don Keenan is not oftenpresent at the shop, he is the majorityowner and President of Keenan Auto-body, and he is available for consulta-tion when necessary.

Keenan Auto Body's 13th An-nual Charity Golf Outing will beheld June 9, 12 pm to 8 pm at PennOaks Country Club. It is benefittingboth the Russella Education Fundand Little Smiles. For more informa-tion contact Craig Camacho, or callthe shop at:

Keenan at Middletown5077 Summitt Bridge RoadMiddletown, DE 19709(302) 279-1007


Keenan Cares About Cars, Charity and Environment, Part 2

with Rick WhiteShop Management

with Stefan GesterkampPaint Management

with Gonzo WeaverGonzo’s Toolbox

with Richard ArnoldJobber Journal

with Dale DelmegeAsk Dale

Mainstream Media

Automakers’ Actions and Analysisby Autobody News Staff

Shop Showcaseby Autobody News Staff

with Ed AttanasioShop and Product Showcase

with Ed AttanasioConsumer Callout

with Walter DanalevichShop Strategies for Savings

with The Insurance InsiderInside Insurance

with Ed AttanasioCustom Corner

with Chasidy Rae SiskCompany Connections

with Chasidy Rae SiskNortheast News

with Chasidy Rae SiskShop Showcase


with Erica SchroederShop Snapshot

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, whoworks in a variety of fields and subjects, and grew up in a family of NASCAR fans.She can be contacted at [email protected].

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Solar panels sit off to the left of Keenan’sMiddleton, DE, location

Keenan Autobody is the only shop of 8 locationsto use solar panels

Not only is Keenan Autobody’s road signgreen, but so are their shop practices

Challenges—they seem like they’realways coming up. Since I did the CarWarriors TV show, where we were al-ways fighting the clock with only 72hours to build a complete car, it seemslike everybody wants to hit me with atime challenge. My buddy, Diggity

Dave, you might know him from thePimp My Ride TV show, called me upto throw out a challenge.

Dave backed his 2002 Escaladeinto a brick wall and ripped about athree inch tear down the right quarterpanel. He also hit the rear bumper andtore the right molding. Here’s the realproblem: Dave’s got to have his SUVback the following day, which is ex-actly 24 hours, because he’s got a bigmeeting for a new movie he’s doingand he can’t show up with his ridedamaged.

Now he’s asking to get this fixedin 24 hours (seemingly impossible,right?) so I’m thinking how to create aprocess that can make this happen in24 hours. I’ve got to replace the quar-ter panel, the rear bumper and themolding. To top it off, he says, ‘I’vegot zero budget’ so this is a ‘bro deal.’I’ve got to do what I’ve got to do anduse what I have on the table.

Here are the steps and theprocesses that I used to beat the clock.You can judge if I was successful. Thefirst thing I decide is ‘no parts,’ we’vegot to fix everything. I see that I needto cut a window—try to keep every-thing as small as possible—especiallyto cut and replace a piece with anotherpiece of metal. The metal was actually20 gauge, so I checked the gauge ofmetal to make sure I was replacing itexactly.

I cut a piece out of the quarterpanel, then cut the ripped area out ofthat so I can flatten the panel. I wasable to get inside it and get the struc-ture part of it straight using a slide

hammer. When I cut my panel I madesure that the top and the lower part ofthe quarter panel still had a spot weldholding it to the inner structure. Thisway when I come in with the slidehammer the quarter panel is still goingto move, because otherwise I’ll have

to put this up on the frame rack andpull it. I needed to avoid all that be-cause of the time constraints.

This actually worked out prettywell. I got my window in there, cutout the damaged piece of metal. NowI can flatten out the piece that I cut outto use as a pattern. I get another pieceof metal, I use the break and bend it. Iclamp the piece I cut out of the metalon there, scribe it, come back, cut itout. I actually keep them both togetherand use the nibbler to follow around itas close as I can get it and then followup with the grinder. That means it’sexactly the shape and size I need.

If you’re putting your template onthe outside, you’re going to be a littlebit smaller on the inside because wherethat break is. It’s actually going tocause you to be a 20 gauge short somake sure you keep the length at theend if you’re coming from the inside.If you want to use the pattern on the in-side then you’ll be an 1/8th inch longerbecause you want this piece to fit.

So you can either TIG weld it orMIG weld it. You’ve got to take yourtime either way. I’m going to TIGweld it. I’ll actually put it in with theMIG welder just to get it set where Ineed it and then come back with theTIG welder but before that I need toshape the metal with the EnglishWheel and flatten it all out. To get itthe right shape you’re going to needto fit it a couple times, go back andforth, fit it until you’ve got your con-tour right.

As soon as it’s fitting as close asyou can get it, you’re ready to tack it

in. Take your time as you weld it.Weld very small areas, keep heat con-trol because you don’t want it to warpand then you’ve got to watch the restof the metal. If you see it start to suckin, get your nail gun and pull out yourlow areas. Every time you weld it,

check it. This will save you a lot oftime and a lot of Bondo™. A lot ofguys want to slap Bondo™ over it buttry to outsmart the metal. That givesyou more seat time under your belt towhere you can utilize this process onanother project.

So after getting it welded in, Ihave a little metal finishing to do. I’lldo a skim coat of mud over it just totrue it in, get some of those low spotsbecause I don’t have a lot of time tometal finish it completely with a file.So I shape it with a skim coat.

I usually never skim coat any-thing any more than twice—once justto get the 36 grit scratches out and anypinholes. Using the 3M DynamicMixing System is key for me. Eversince I started using it I don’t have anypinholes. I don’t have to mix


Repairing Quarter Panel, Bumper, and Molding: No Time, No Money










Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter andfabricator. He offers workshops in repair and customization at his facility to share his uniquetalents. For contacts and design samples visit www.huntingtonbeachbodyworks.com


Bondo™, I don’t have to worry aboutthe mixture, don’t have to worry aboutair making the pinholes. If you don’tknow about the 3M Dynamic MixingSystem, check it out. It’s a big timesaver and gives you better quality re-sults, less waste, more productivity.It’s everything you need in one gun.

Once I get the body work done,I’m come back in with some PCLPrimer. I’m going to load the primerup and hit it with some 80 grit, 3Mlongboard. Then I’m going to comeback and get rid of the 80 grit

scratches with 150. Then I guide coatit again, come back with 400 wet.Now I’m ready for paint.

I’m going to apply the sealer, thebase coat and the clear coat. Whateversystem you guys are using in yourshop, go with that.

I still have the bumper and theside molding to fix. I don’t know howmany guys are using the 08115—thepanel bonding adhesive—but I lovethis stuff. Every day I find a new usefor it. This stuff sands really well, itdries and hardens really true, and it’sflexible—so I’m using it as a plasticrepair product. It usually takes 24hours to cure but if you hit it with aheat lamp you can get it to cure withinan hour or two. I know a lot of guysuse it for putting quarter panels on,which is a better process, less weld-ing, less work. It’s a better repair at theend of the day because when you’repriming each side of the panel and theinner structure of the quarter panelthen it’s taking the place of corrosion

protection, less welding, less sparks,less interior that has to come apart. It’sactually a stronger bond then a weld.This stuff is amazing. Technology ischanging and you’ve got to changewith it. The gun makes it a lot easier toapply it. I’m usually feeling prettyspoiled by 3M, they’re definitely thego-to for me when it comes to newproducts, anything and everything.3M just about carries it all.

Getting back to the body work, Ilay the panel bonding adhesive on thedamage area—the bumper—instead

of using Bondo™. This is going to ad-here and it’s not going to shrink. Isand it with 80 grit on the plastic. Ishape it just like the Bondo™. Youwant to heat these panels first, shapeit, get its best shape, take all the lowareas out, file it down with some 80.Come back for the cracks and any lowareas, and fill it with the panel bond-ing adhesive. I sand it with 80, feathereverything with 150, then 320 aroundthat. Then back with the PCL flexibleprimer. It’s more a flexible, durableproduct for anything moving. Youwant to make sure you use the rightproducts, especially on a project likethis where I don’t have any extra roomto breathe. I can’t take any chances ofsomething messing up on me.

Next is getting into the paintbooth, getting my color on, come backin with my Transtar clear with the HThardener, zap that on there. I didn’tuse a two-hour clear which is a bitmore yellowish. I apply my threecoats as I always do.

Now we’re down to about threehours before Diggity comes to pickthis vehicle up and that gives me justenough time to put the bumper and thebumper sensors on, apply the mold-ing, and get the tail light back in.

That’s another project, anotherclock, another challenge under mybelt. Diggity comes and is just blownaway that I ‘pulled another rabbit outof the hat’ as he put it. I tell people‘never think negative, always go withthe positive.’ Think “hey, I can dothat,” put yourself to the challenge.

Make sure you keep your quality be-cause that’s everything. Make sureyou do your fits, stay at your level, askquestions. I’m glad I was able to helpa good buddy out, Diggity Dave fromPimp My Ride.

Hopefully, this will help some ofyou guys in similar situations whenyou get into a time constraint or evenif you want to save a few bucks ifyou’re doing this for a friend or fam-ily or somebody that doesn’t have the

money to fix it or if you owe a favor tosomebody, this is a good way to uti-lize the money because this job wouldrun about $4,000 maybe $4,500 by thetime you got done buying the rearbumper, quarter panel, tail light, mold-ing, and all the materials involved init.

So Diggity Dave came up $4,500to the good. He owes me a favor nowso I’ll hit him up when I’m ready formy favor and maybe I’ll have to puthim through the same test he put methrough. A challenge on the table, race

against the clock, at the end of the day,his car’s done in 24 hours and I’m onto the next one—that’s what I live for.Live, breathe and eat building cars,fixing them—never too good to workon anything.

My daily focus is waking up andhaving something else to work onand always trying to get the coolerprojects. If you don’t use it you loseit, that’s the key to my game. I’mnever too good to do something and Iexpect you guys to be the same way,always try to better yourself at whatyou do, everyday try to learn some-thing new.

I want to thank 3M for their prod-ucts, especially what I call the ‘Bondogun’: the 3M Dynamic Mixing Sys-tem, and the panel bonding adhesive.

Tune into Car Warriors everyWednesday night on Speed channel,go to my Facebook fan page, RichEvans Designs, and stay up with meon my daily challenges and projects.We’ll talk to you next month!

Rich shows Diggity Dave the cutouts he did torepair the quarter panel

As shop owners and techs know, carmaintenance isn’t just under the hood.A cracked windshield is a safety risk.It can impair the driver’s vision and putpassengers at risk.

Most automotive safety expertsrank the windshield as the third mostimportant safety component in today’svehicles, behind seatbelts and airbags.Laws require seatbelt use and preventtampering with airbags, but there areno laws that govern replacement wind-shield installation.

The Auto Glass ReplacementSafety Standards Council (AGRSS)promotes safe auto glass industry stan-dards, which an auto glass technicianshould follow. Consumers should askthese questions before a replacementwindshield installation:• Will the old adhesive be removedfrom the vehicle frame? If the adhesiveisn’t removed down to the adhesivemanufacturer’s recommended level,the fit may not be tight and the new ad-hesive won’t bond correctly.

• Will the technician wear gloves tokeep from contaminating the glass? Ifoil and dirt get on the edges, the newadhesive (called urethane) may notbond correctly.• Will the new urethane adhesive standup to the high deployment pressure ofairbags? The best available manufac-turer equivalent urethane adhesiveshould be used, not butyl tape. Ask foradhesive made by Dow, Sika or theoriginal car maker’s adhesive supplier.• How long does the urethane adhesive

need to set until the vehicle can bedriven? Every urethane has a “safedrive-away time.”

For more information, visitwww.glassdoctor.com.

Auto Glass Replacement Safety Standards Council Promotes Fixing Damaged Windshields


on Facebook

ley when he approved his request foremergency federal assistance on April28.

In Hueytown, AL, shop ownerJason Wilson was in his business—Jimmy’s Auto—when he heard the tor-nado warning sirens. He gathered hisfamily, including his two children, anddecided to ride out the storm in theshop.

About an hour afterward, Wilsonstood in the parking lot, stunned, look-

ing at the roof of the store. The roofhad been blown off the building asthey huddled inside, he said.

“We was fixing to go home andheard the siren,” he said to Alabamawebsite al.com. “We took cover. It’sabout all you can do. And then it justblew the roof off.”

Wilson, his wife, his father andhis two children escaped without ascratch.

Coats Auto Body and Paint inRaleigh, NC, experienced an intensetornado on April 16 that caused majordamage to the shop.

“Even though the building hasbeen condemned and isnow gone, we areblessed,” said Co-OwnerTana Malerba, “No onewas in the building at thetime that the tornado hit.We also found a tempo-rary location six miles

down the road from where we werelocated while we rebuild.”

The tornado took off the entireroof of Coats brick building and bothside walls of the building collapsed.The bays and shop floor were nolonger separated from the outdoorsafter the storm.

One thing that did survive thestorm was the shop’s Garmat spraybooth. The booth did sustain somedamage, but all mechanical compo-nents and the attached mixing roomwere saved despite the all but de-stroyed building that housed thebooth. Between Coats’ employees andlocal vendors, Coats was able to movetheir business to neighboring Garner,NC, within eight days. Malerba saidthe business is just waiting on someoutside vendors to complete theirwork before the shop will be back run-

ning at 100%. The Garner locationwill be a temporary home for the busi-ness until they can rebuild their origi-nal Raleigh location.

Insurers also began the dauntingtask of tallying the home and autodamages of their clients on April 29.

Alabama Insurance Commis-sioner Jim Riding said that he is reach-ing out to the state’s property insurersto provide a coordinated response tothe storms as soon as possible.

“We want to hit the ground run-ning to deliver an effective response

to all Alabamians affected by thesetragic storms,” he said to InsuranceJournal. “As soon as the companiessettle on locations for their disasterresponse headquarters, we willshare that information with the pub-lic.”

State Farm Spokesperson JimMcCullen said that said by April 28the insurer already had 3,300 claimsin Alabama and the count continues torise, according to Insurance Journal.He said that the company was some-what fortunate in that it already hadteams working in Arkansas in thewake of a series of tornadoes thatwent through the South Central por-tion of the country in early April and aquick response should ensue.

The dangerous conditions alsohalted production at the Toyota and

Mercedes-Benz plants in Alabama asof April 28.

A Mercedes plant spokeswomansaid April 29 that Mercedes had haltedoperations because suppliers were un-able to deliver parts due to the storms,according to the Tuscaloosa News.

A spokeswoman for the au-tomaker also told Automotive Newsthe plant would remain down untilMay 2 following the tornado. Toyotaspokesman Mike Goss said the engineplant stopped work April 27 when itlost power. He said the power couldbe out at least through May 1.

Other automotive factories in theregion, including Hyundai MotorManufacturing Alabama in Mont-gomery, and Honda of Alabama Man-ufacturing in Lincoln, reported nodirect damage from the tornadoes.However, representatives for Hondasaid the automaker is evaluating thestorms impact on their suppliers allacross Alabama, which may affect thecompany’s output later this spring.

Coats Auto Body and Paint434A US 70 Highway East Garner NC 27529(919) 833-6877


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Tornadoes

The front of Coats’ Raleigh location before the storm hit

Toyota Motor Manufacturing Alabama

Inside Coats’ Raleigh location before the storm hit

The front of the building after the storm

GA Auto Repair Tax Bill Still Alive in HouseGeorgia House Bill 388 is still alive inthe Georgia Legislature. HB 388 aimsto create a sales tax on services ofmany small businesses.

The bill, if passed, could be dev-astating to the automotive service in-dustry according to ASA—placingadditional tax burdens on automotivemaintenance, repair, auto body repair,equipment installation services, brakerepair, oil changes, motor tuneups, andengine repair and replacement, toname a few.

Despite the fact that no actionwas taken on Georgia HB 388 beforethe Georgia Legislature adjourned, thelegislation could be considered during

the special session later this summer.ASA has opposed the proposed

automotive repair tax, and is calling onGeorgia independent automotive re-pairers and consumers to contact theirrespective representatives in opposi-tion to the legislation.

To view full text of the bill andto see how to send a letter to mem-bers of the Georgia state legislature,visit ASA’s legislative website atwww.TakingTheHill.com.

Boyd Group Reports Strong 1QNumbers, Sales Up 48.5% Sales increased by 48.5% to $81.6 mil-lion from $54.9 million in Q1 2010;True2Form Collision Repair Centers,Inc. and eight other new locations con-tributed $22.5 million of sales. Same-store sales increased by 11.5%,excluding the impact of foreign ex-change translation. Gross margin im-proved to 45.2% compared with 44.9%in Q1 2010. Adjusted distributable cashincreased to $3.0 million compared with$2.8 million in Q1 2010. Payout ratio of38.2% compared with 31.3% in Q12010, due to higher level of distribu-tions. Net earnings were $0.9 million,compared with $1.9 million in Q1 2010.

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Autobody News June 2011 Northeast Edition