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Physical Damage Market Transformation ATA General Meeting Oct 07, 2015 October 13, 2015 MPI Exhibit # ____

Physical Damage Market Transformation · Mercedes-Benz SLS AMG . ... repair their vehicle • Shops cannot create or download an ... (2013 activity) WPG: 144 . Other: 177 . Total:

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Page 1: Physical Damage Market Transformation · Mercedes-Benz SLS AMG . ... repair their vehicle • Shops cannot create or download an ... (2013 activity) WPG: 144 . Other: 177 . Total:

Physical Damage Market Transformation ATA General Meeting Oct 07, 2015

October 13, 2015 MPI Exhibit # ____

Page 2: Physical Damage Market Transformation · Mercedes-Benz SLS AMG . ... repair their vehicle • Shops cannot create or download an ... (2013 activity) WPG: 144 . Other: 177 . Total:

2

Introduction

• There are many challenges that we need to address together to adapt to the changing business landscape and establish the business conditions for a healthy collision repair industry in Manitoba

October 13, 2015 MPI Exhibit # ____

Page 3: Physical Damage Market Transformation · Mercedes-Benz SLS AMG . ... repair their vehicle • Shops cannot create or download an ... (2013 activity) WPG: 144 . Other: 177 . Total:

3

Conventional North American unibody

2013 Dodge Dart: Entry Yr 2012

Mercedes-Benz SLS AMG Ford 2015 F150 Aluminum Body

84% of metal parts repairable with

established welding/ repair methods

60% of metal parts repairable with

established welding/ repair methods

96% Aluminum & 4% Steel On Pillars; new welding methods/repair

techniques needed (rivets)

Complex Metals - Repairability: Body & Frame

Pace of Change in Vehicle Design

October 13, 2015 MPI Exhibit # ____

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4

2013 Ford Explorer

Metal Parts Repair Method: 16% Replacement Only

44% May be Welded per Mfg Instructions 40% Can be Welded per Std Practices

Mixed Steel in the Body means more complex repair

MPI Case Study:

October 13, 2015 MPI Exhibit # ____

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5

OEM Programs

• OEMs are introducing certified repair facilities – Limits customer choice – Setting tighter requirements for OEM warranty

and lease conditions – Impacts tools, equipment, materials, training,

etc – Fragmenting the heterogeneous market

October 13, 2015 MPI Exhibit # ____

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6

Qualified Repair

• MPI’s mandate includes reducing risk on the road through safe, quality repairs – Quality of Repair includes assessing the

degree to which an individual shop meets OEM standards for collision repair

– Details matter on a per make-model basis. Each shop has to be properly equipped and trained to handle each unique repair

October 13, 2015 MPI Exhibit # ____

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7

The Journey

• As our environment changes, we need to work together to adapt to a new reality – New technologies need additional tools, skills

and methods • Businesses will need to make decisions on

their strategy – Need to balance investment with cost

effectiveness/market demand – Scale up and achieve economies or find a

niche and specialize?

October 13, 2015 MPI Exhibit # ____

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8

What Does This All Mean?

Structural Change in the Auto Industry

Investment Consumer Protection / Awareness

• Pace of change in vehicle design

• Specifics of repair methods

• OEM programs • Qualified repair • Certified repair

• Tools • Training • Facilities • Equipment

• Customers access mobile app that informs him/her which shops can repair their vehicle

• Shops cannot create or download an estimate if they are not qualified or certified to fix the vehicle

Shop 1 . . . Shop n

October 13, 2015 MPI Exhibit # ____

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9

39

28

144

22 25

4 1

4

17

47 48 21

30

35

Totals (2013 activity)

WPG: 144 Other: 177 Total: 321

177

Shop Distribution Across Manitoba

October 13, 2015 MPI Exhibit # ____

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10

25

13

82

13 18

4 1

1

5

14 9 5

13

11

Totals (2013 activity)

WPG: 82 Other: 50 Total: 132

50

Shops doing more than 5 jobs per week

October 13, 2015 MPI Exhibit # ____

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11

15

7

48

5 13

0 0

1

1

5 4 2

8

1

Totals (2013 activity)

WPG: 48 Other: 14 Total: 62

14

Shops doing more than 10 jobs per week

October 13, 2015 MPI Exhibit # ____

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12

4

3

21

2 7

0 0

0

0

0 0 0

5

0

Totals (2013 activity)

WPG: 21 Other: 0 Total: 21

0

Shops doing more than 20 jobs per week

October 13, 2015 MPI Exhibit # ____

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13

3

1

9

0 3

0 0

0

0

0 0 0

2

0

Totals (2013 activity)

WPG: 9 Other: 0 Total: 9

0

Shops doing more than 30 jobs per week

October 13, 2015 MPI Exhibit # ____

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Large Scale

October 13, 2015 MPI Exhibit # ____

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Creative Approach to Repairs

October 13, 2015 MPI Exhibit # ____

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16

Creative Approach to Repairs

• http://www.youtube.com/watch?v=JU-bVF7C0E8

October 13, 2015 MPI Exhibit # ____

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Discussion

October 13, 2015 MPI Exhibit # ____