autobody news march 2012 western edition

by John Yoswick

Speaking at the January Collision In-dustry Conference (CIC) in PalmSprings, State Farm’s George Averysaid that PartsTrader, the electronicparts ordering system the insurer ex-pects it will eventually require its Se-lect Service shops to use, is currentlybeing tested at one repair facility andsoon will be at another location.

He declined to identify the shops,saying that it is too early in the testing“to put those folks under the micro-scope and ask, ‘What do you think ofthe new system?’”

The announcement was just oneof the parts-related issues discussed atCIC. The CIC “Parts and MaterialsCommittee” shared the results of apreliminary survey of 11 of the com-panies offering electronic parts locat-

ing and procurement systems to theindustry. Committee member Mary

Lou Lubrano ofCar-Part.com re-ported, for exam-ple, that about thesame number ofthose companiessaid insurers payfor use of theirsystems as thosethat said they arefunded by partsvendors; two ofthe companiessaid shops pay forthe systems.

“I would argue that shops pay forall of them, because having nine dis-parate parts systems, some of whichmay be mandated by their insurance

by Ed Attanasio

Representatives from AmericanHonda, Acura and Toyota werethe featured speakers at SantaClara California Auto Body Asso-ciation’s meeting, held on Febru-ary 15 at the Three Flamesrestaurant in San Jose, Calif. Withmore than 50 chapter members inattendance, George Turk, FixedOperations Marketing Managerfor Honda’s California Zones,spoke first about CollisionLink,an OE Parts Ordering system de-vised and maintained by OEConnec-

The Promoting Automotive Repair,Trade and Sales (PARTS) Act, a newbill introduced to the U.S. House ofRepresentatives, proposes to reducethe patent period car companies haveon their collision repair parts from 14years to 2.5 years (30 months). H.R.3889 was introduced on Feb. 2 byDarrell Issa (R-Calif.) and Zoe Lof-gren (D-Calif.) to the House Judici-ary Committee. A similar bill iscurrently being prepared in coopera-tion with the U.S. Senate JudiciaryCommittee. The bill would amendtitle 35 of current U.S. design patentlaw whereby automotive manufactur-ers may enforce their design patents

on collision repair parts against alter-native suppliers.

Both members serve on theHouse Judiciary Committee’s Sub-committee on Intellectual Property,Competition and the Internet. Lofgrenintroduced auto parts patent legisla-tion in the last Congress.

The new subsection reads as fol-lows: “It shall not be an act of in-fringement of such design patent tomake or offer to sell within the UnitedStates, or import into the UnitedStates, any article of manufacture thatis similar or the same in appearance tothe component part that is claimed in

U.S. House Judiciary Members Introduce AutoParts Bill, Aims to Limit Parts Patent Protection

Santa Clara CAA Hosts Parts Program Talkwith Honda, Acura and Toyota Representatives

See CIC Report, 0

See PARTS bill, Page 26

State Farm’s Testing of Parts Ordering SystemAmong News, Discussion at CIC Meeting

See Parts Presentation, Page 12

From left: George Turk, Fixed Operations MarketingManager for Honda California Zones; Joe Stearns,Assistant Zone Manager for Parts & ServicesOperations for the Acura Division; Toyota WholesaleDevelopment Consultant Ruben De Loera; and TerryBanks, Dealer Operations Consultant for Toyota.Turk and De Loera spoke about their respectiveautomaker parts programs.

The Alliance of Automotive ServiceProviders of New Jersey (AASP/NJ)will hold their 35th annual NORTH-EAST™ trade show March 9, 10 and11 at the Meadowlands ExpositionCenter of Secaucus, NJ. The associa-tion announced the educational semi-nar schedule as well as a list of boothexhibitors.

The weekend will start on March9, with a Leadership Forum held bySCRS and the AASP/NJ. The EastCoast Resolution Forum welcomesrepresentatives from national and localautomotive repair associations onMarch 9 at 1 p.m. The forum will gountil 5 p.m. and will invite associationleaders to discuss updates on their or-ganizations’ activities as well as shareindustry news with their peers. Themeeting provides associations fromacross the country with a chance to net-work and learn from other associations.

Then at 6pm, MarkOlson of Ver-iFacts starts the NORTHEAST™ sem-inars with "Shop Differentiation: Howto Make Your Shop Stand Out, fol-lowed by Future Cure’s Tom Beck pre-senting Drying Waterborne: What YouNeed to Know NOW." Larry Mon-tanez III of P&L Consultants / IACDAwill also be on hand March 9 from 8p.m. to 9 p.m., discussing OEM RepairProcedures vs. Repair Standards in thefirst of a two-part series. KristenFelder and Elizabeth Blackman ofCollisionHub will close out March 9’sseminars with SOS: A Social Media In-tervention. For a full schedule of theweekend's seminars please seewww.autobodynews.com.

Then an after hours a Vendor Ap-preciation after party will be held from10 p.m. to 12 a.m.

“There isn’t anywhere within 500

AASP/New Jersey to Kick Off 35th AnnualNORTHEAST Trade Show in Secaucus, NJ

See NORTHEAST, Page 18

Ron Reichen,Oregon ShopOwner, said

carriers’ reportedreturn rates don’tappear to match upwith those reported

by vendors

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REGIONALAkzoNobel Holds Acoat Performance Group

Meeting in San Diego . . . . . . . . . . . . . . . . . 6Arizona Considers Charging Electric Cars

Per-Mile Tax . . . . . . . . . . . . . . . . . . . . . . . . 8BodyShopBids Expands to Offer Online and

Mobile Auto Repair Estimates in California . 18Caliber Acquires 101 Collision, Reaches

100-Shop Milestone . . . . . . . . . . . . . . . . . . 6CA Attorney Wins $10,000 Claim v. Honda . . 47CA Law Demands More Low Emission Vehicles. 61California Plans to Tighten Emissions

Standards By 2025. . . . . . . . . . . . . . . . . . 36CARSTAR Holds Results/Goals Teleconference. 6East Bay CAA Chapter to Host Motivational

Speaker . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Fisker Lays Off Employees in California. . . . . . 4Fix Auto Adds Two New Shops to Network

in N. California . . . . . . . . . . . . . . . . . . . . . 36Inland Empire CAA Holds Tech Appreciation

and Education Night . . . . . . . . . . . . . . . . . . 4Mitchell Partners with San Diego Work

Readiness Program, New CollisionRepair Course at San Diego City College . . 45

Next Glendale/Foothill CAA Meeting to beHeld March 8 . . . . . . . . . . . . . . . . . . . . . . . 8

Orange County CAA Chapter to Hold MorningMeeting in February . . . . . . . . . . . . . . . . . 45

Phoenix Auctions Show Collector Cars’Comeback . . . . . . . . . . . . . . . . . . . . . . . . 57

PPG MVP Spring Conference Set forPhoenix March 25–27 . . . . . . . . . . . . . . . . 9

San Diego Chapter of the California AutobodyAssociation Swears in New Board by NewPresident at Meeting. . . . . . . . . . . . . . . . . . 4

Santa Clara CAA Hosts Parts Program Talk withHonda, Acura and Toyota Representatives . 1

Separate Arizona Bills: HB 2394 “StrikesEverything” on Unlawful PracticesLanguage for Repair Shops; SB 1134Requires Changes to Handling ofUnearned Premiums by Insurers. . . . . . . . 24

COLUMNSAttanasio, Garmat - Global Collision Uses

Garmat USA Paint Spray Booths in All8 Locations . . . . . . . . . . . . . . . . . . . . . . . 37

Evans - Barrett-Jackson DIY Event DrawsFans and Future Body Techs . . . . . . . . . . . 58

Franklin - Spotting a Newsworthy Opportunity . 22I-CAR - Corrosion Protection to Structural

Part Interiors . . . . . . . . . . . . . . . . . . . . . . 48Insurance Insider - Getting a Guess-timate

From the Real Experts . . . . . . . . . . . . . . . 20Nigro - A Shop Owner’s Suggestions to

Control Steering and Worse to Come . . . . 40Schroeder - FCC Collision Continues Expansion

in the Greater San Francisco Area . . . . . . . 16Sisk - Checker Auto Body: A Small-Town

Shop Offering Big-Time Repairs . . . . . . . . 38Sisk - Prestige Auto Body in NJ—A Non-DRP

Thriving in a DRP World . . . . . . . . . . . . . . 42Weaver - Code Talkers: It Takes More Than

Reading Codes to Be a Good AutomotiveTechnician . . . . . . . . . . . . . . . . . . . . . . . . 35

Williams - Jerry Ulm Dodge Chrysler Jeep,a Truly Distinctive Florida Dealer . . . . . . . . 14

NATIONAL“Evangelist Jerry Bratt” Scam Revived . . . . . 47AASP/New Jersey to Kick Off 35th Annual

NORTHEAST Trade Show in Secaucus, NJ . 1ABRA Auto Body & Glass Announces New

Vice President and Chief Financial Officer . 52Allstate will open Agencies in Dealerships,

from Test Program . . . . . . . . . . . . . . . . . . 47ASA & Diamond Standard Product Liability

on Website . . . . . . . . . . . . . . . . . . . . . . . . 39ASA Announces 2012 Annual Meeting

Dates and Location . . . . . . . . . . . . . . . . . 36Chevy Volt Sees Stalled Momentum/Optimism . 61China Auto Parts and Service Show to be

Held June 2012 . . . . . . . . . . . . . . . . . . . . 57Chrysler Recalls Police Cars . . . . . . . . . . . . . 57Chrysler Reports 1st Full Year Profit Since Crisis. 57Consumer Reports Says Brand Perception

Narrows. . . . . . . . . . . . . . . . . . . . . . . . . . 57CREF Sees Record $4.1 M in Industry

Donations for 2011 . . . . . . . . . . . . . . . . . 44Diamond Standard Launches Website for

ASA Members . . . . . . . . . . . . . . . . . . . . . 62DuPont Paint Unit Bidding . . . . . . . . . . . . . . . 57Federal Trial of Baltimore Police Kickbacks

Involves Local Body Shop, About 60Officers and Insurance Fraud . . . . . . . . . . 44

Feds Escalate Jeep Airbag Investigation . . . . 61Flag Football Tournament/Trade Show Highlights

Van Tuyl Charity Super Bowl Weekend . . . 28GM is Back on Top As the World Number One . 57Guardian Auto Glass Continues Expansion

into Colorado Springs Area . . . . . . . . . . . . 53Honda Recalling 2008 and 2009 Odysseys

for Liftgate Struts . . . . . . . . . . . . . . . . . . . 34Honda’s Ridgeline Recall . . . . . . . . . . . . . . . 61Insurance Auto Auctions to Sell Salvaged

Vehicles Directly to China, Could ImpactU.S. Supply . . . . . . . . . . . . . . . . . . . . . . . 60

KBB Gets New President. . . . . . . . . . . . . . . . 57LA Police Crack Staged Crash Ring . . . . . . . 52MOPAR Celebrates 75th Anniversay,

4 New Models . . . . . . . . . . . . . . . . . . . . . 61NABC Plans At Least One Vehicle Gift in

Each State This Year. . . . . . . . . . . . . . . . . 60NHTSA Investigating Chevy and Toyota

Models for Power Windows . . . . . . . . . . . 34NHTSA Opened Ford and GM Van

Investigations in January . . . . . . . . . . . . . 22Nissan Leaf Software Upgrade Coming for

2011, 2012 Models . . . . . . . . . . . . . . . . . 34Nissan Recalls 2012 Versa . . . . . . . . . . . . . . 57NJ Shop Questions State Farm’s Denial of

Cost Accounting Based Paint Allowances . 19NSF Certifies PartsChannel Under Auto Collision

Parts Distributor Certification Program . . . 34Pa-based Keenan Auto Body Holds Facebook

Jingle Contest . . . . . . . . . . . . . . . . . . . . . 39Paint and Material Compensation and Cost

Study, by Richfield Associates forComputer Logic . . . . . . . . . . . . . . . . . . . . 54

SAAB Dealers Still Looking at Options, SixParties Still Contend . . . . . . . . . . . . . . . . 45

SCRS Offers Repairers Digital MemberServices E-catalog . . . . . . . . . . . . . . . . . 57

2nd Toyota Driver’s Door Fire Probe Launched . 61Several Crash Parts Bills Introduced to State

Legislatures Countrywide . . . . . . . . . . . . . 25State Farm Pays Costs for Two Cases by

Ray Gunder . . . . . . . . . . . . . . . . . . . . . . . 39State Farm’s Testing of Parts Ordering System

Among News, Discussion at CIC Meeting . . 1Study: 96% of All Repair Shops Recycle

Scrap Metal . . . . . . . . . . . . . . . . . . . . . . . 46Subaru Recalling 2012 Outback and Legacy

Models for Air Bags . . . . . . . . . . . . . . . . . 34Supreme Court Allows Lawsuits on Lack of

Safety Equipment . . . . . . . . . . . . . . . . . . . . 6The 2010 Pro-Con Argument For Patent

Protection of Collision Parts . . . . . . . . . . . 27This Year’s Chicago Auto Show Used

New Media Technology. . . . . . . . . . . . . . . 46Toyo Tires Recalls 69,000 Tires Due to Kink . 26Toyota to Expand in US With GA Compressor

Parts Plant . . . . . . . . . . . . . . . . . . . . . . . . 47U.S. Auto Industry Bullish on ‘12, Sales up 11%. 61U.S. House Judiciary Members Introduce

Auto Parts Bill, Aims to Limit PartsPatent Protection . . . . . . . . . . . . . . . . . . . 1

UPDATE: Proposed Houston LicenseOrdinance Stalls . . . . . . . . . . . . . . . . . . . 36

Utah Bill to Weaken Vehicle InspectionRequirement. . . . . . . . . . . . . . . . . . . . . . . 36

Val-Test Distributor Show AnnouncesNew Product Winners. . . . . . . . . . . . . . . . 13

Contents

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

Serving California, Nevada and Arizona, Autobody Newsis a monthly publication for the autobody industry. Per-mission to reproduce in any form the material publishedin Autobody News must be obtained in writing from thepublisher. ©2011 Adamantine Media LLC.

Autobody NewsP.O. Box 1516, Carlsbad, CA 92018(800) 699-8251 (760) 721-0253 Faxwww.autobodynews.comEmail: [email protected]

Audi Wholesale Parts Dealers . . . . .54Automotive ID . . . . . . . . . . . . . . . . . .10BMW Wholesale Parts Dealers . . . .43Chief Automotive . . . . . . . . . . . . . . . .9Classifieds . . . . . . . . . . . . . . . . . . . .62Completes Plus . . . . . . . . . . . . . . . . .6Crevier BMW . . . . . . . . . . . . . . . . . .26CSS USA, Inc. . . . . . . . . . . . . . . . . .24Downtown Motors of LA(Audi, VW, Porsche) . . . . . . . . . . .18

Drew Hyundai-Volkswagen . . . . . . .44DuPont . . . . . . . . . . . . . . . . . . . . . . . .5Elk Grove Toyota . . . . . . . . . . . . . . .35Enterprise Rent-A-Car . . . . . . . . . . .57Equalizer Industries . . . . . . . . . . . . .30Ford Wholesale Parts DealersAZ, CA, & NV . . . . . . . . . . . . . . . .31

Galpin Motors . . . . . . . . . . . . . .27, 39Garmat USA . . . . . . . . . . . . . . . . . . .36Glenn E. Thomas Chrysler-Jeep-Dodge . . . . . . . . . . . . . . . . . . . . .11

GM Wholesale Parts Dealers . . . . . .52Honda-Acura Wholesale PartsDealers . . . . . . . . . . . . . . . . . .32-33

Hyundai Wholesale Parts Dealers . .51Innovative Tools & Technologies . . .25Kearny Mesa Subaru-Hyundai . . . . .48Kia Motors Wholesale Parts Dealers .41LKQ . . . . . . . . . . . . . . . . . . . . . . . . .63Malco . . . . . . . . . . . . . . . . . . . . . . . . .2Mazda Wholesale Parts Dealers . . .56

MINI Wholesale Parts Dealers . . . . .56MOPAR Wholesale Parts Dealers . .23Moss Bros. Chrysler-Jeep-Dodge . . .7Nick Alexander BMW . . . . . . . . . . . .17Nick Alexander MINI . . . . . . . . . . . .64Nissan Genuine Parts . . . . . . . . . . .15Nissan/Infiniti Wholesale PartsDealers . . . . . . . . . . . . . . . . . . . . .55

PCL Automotive . . . . . . . . . . . . . . . .12Pro-Spray . . . . . . . . . . . . . . . . . . . . .13Rare Parts Inc. . . . . . . . . . . . . . . . . . .4RBL Products, Inc. . . . . . . . . . . . . . .19RealParts.com . . . . . . . . . . . . . . . . .14Replica Plastics . . . . . . . . . . . . . . . .40Riverside Metro VW-Honda-Hyundai-Nissan-Mazda . . . . . . . . . . . . . . .47

Safety Regulation Strategies . . . . . .20SATA Spray Equipment . . . . . . . . . . .8Shingle Springs Nissan-Subaru . . .49Sierra Chevrolet-Honda-Mazda-Subaru . . . . . . . . . . . . . . . . . . . . .45

Solution Finish . . . . . . . . . . . . . . . . .58Subaru Wholesale Parts Dealers . . .53Timmons VW-Subaru . . . . . . . . . . . .46Toyota Wholesale Parts Dealers . . .50Van Tuyl Group . . . . . . . . . . . . . . . .29VeriFacts . . . . . . . . . . . . . . . . . . . . . .22VolkswagenWholesale Parts Dealers .61Volvo Crash Wholesale Dealers . . .60Weatherford BMW . . . . . . . . . . . . . .21

Inde

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Western

www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 3

The issues will

focus on:

• PAINT PROCESSES

• PAINT TECHNOLOGIES

• CUSTOM & PRODUCTION PAINTERS

Coming April, May and June of 2012

Autobody News will again focus 3 special issues

on paint and paint technology this year.

The Inland Empire chapter of the Cal-ifornia Autobody Association (CAA)held a Tech education and appreciationnight on January 25th at the SpaghettiFactory in Rancho Cucamonga.

This was the first meeting of 2012for the Inland Empire chapter. NewPresident Tim Brown from Auto Cen-ter Auto Body in San Bernardino wason hand to introduce the night’sspeaker, TomMcGee, the Collision In-dustry Relations Manager for ALL-DATA. Tom spoke about ALLDATACollision S3500, see alldata.com/colli-sion/now/demo.html. This is a newerplatform that is easier to navigate. Tomalso guided attendees through the re-

pair procedures and symbols to helpensure that techs have a better under-standing of the procedures outlined bya vehicle manufacturer to perform aproper repair. There were 60 people inattendance and 13 were technicians.Very generous associate members ofthe CAA donated prizes to be raffledoff to technicians only, and all 13 in at-tendance went home with some greatprizes. Each Tech who accompanied anOwner or Manager to the event re-ceived a complimentary meal.

For more information about thenext Inland Empire meeting pleasecontact Cindy Shillito, the SouthernCA CAA Rep, at 714-944-4028.

[email protected] us!write us!write us!

Give us your opinion on matters affecting the industry.

w


Inland Empire CAA Holds Tech Appreciation and Education Night

The 13 technicians in attendance all went homewith prizes from CAA associate members

The 60 or so in attendance for the meeting filledthe Spaghetti Factory in Rancho Cucamonga, CA

Fisker Lays Off Employees in CaliforniaFisker Automotive, an electric carmaker, said February 6 that it has laidoff workers in Delaware and Califor-nia. The bulk of the layoffs will hitcontractors and employees at Fisker’sAnaheim, CA, location.

The layoffs include 26 workersat a former General Motors plant inWilmington that Fisker has been re-furbishing since last year. Another 40contractors and employees in Ana-heim, Calif., also have been cut, ac-cording to the Associate Press.

“We hope we can reach a resolu-tion soon,” said Fisker spokesmanRoger Ormisher.

“We are frustrated that Fiskerand the DOE have been unable to

come to terms on revisions to theirloan agreement in time to avoid this,”said Brian Selander, a spokesman forDelaware Gov. Jack Markell.

Fisker received $193 million of a$529 million Department of Energyloan this year for work on its electricvehicle models.

Fisker has said in the past it ex-pects to eventually employ more than2,000 people at the Delaware plant. InOctober of last year there were morethan 100 workers were reconfiguringthe plant.

“We knew that this was always apossibility,” Delaware economic de-velopment director Alan Levin saidof the layoffs.

San Diego Chapter of the California Autobody AssociationSwears in New Board by New President at MeetingThe San Diego chapter of the Califor-nia Autobody Association (CAA) heldtheir first meeting of 2012 on January24th at Tom Ham’s Lighthouse.

The 40+ people in attendancewitnessed the swearing in of the chap-ter’s new officers by Dave Picton, theCalifornia Autobody Association’s(CAA) incoming President for 2012.Dave came down from Sacramento toswear in the officers and give a briefsummary of the state of the collisionindustry. He also provided bulletpoints of what the state CAA is goingto be working on and addressing asthis year continues.

The new CAA San Diego offi-cers for 2012 are as follows: Secre-tary, Amanda Smith, MitchellInternational, San Diego; Secretary,Angie Hernandez, Mitchell Interna-tional, San Diego; State Board Rep.,

Monte Etherton, Fender Mender,Encinitas; Vice President, SimonFreese, Drew Collision Center, LaMesa; President, Shon Craft, Rancho

Collision Center, San Diego;Treasurer, Hop Sanchez, Finish-Master, Vista; Sergeant at Arms,Kurt Liobl, Mossy Auto Group,San Diego.

Dave Picton also presented thehonorary lifetime membershipaward to Dale Delmege ofChelsea Group, Inc., and DDPartners, Inc., in recognition forhis dedication to the collision in-dustry, the CAA, and the group’smembers. Dale has donatedcountless hours educating variousCAA chapters and members

across the state with his thought pro-voking presentations.

For more information about theCAAplease visit www.calautobody.com.

Swearing-in of CAA San Diego chapter 2012 BoardMembers (from left): Amanda Smith, AngieHernandez,Monte Etherton, Simon Freese,Shon Craft and with microphone: Dave Picton.(Not pictured: Hop Sanchez and Kurt Liobl)

(l to r) CAA President Dave Picton, LifetimeMembership Award recipient Dale Delmege andSan Diego Chapter past president Larry Houk


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Caliber Collision Centers announcedon February 1 the opening of its 100thcollision center. The acquisition of101 Collision, a five-shop operationbased in Southern California, put theMSO at 100 shops in California, Ne-vada, Arizona and Texas. Caliber ac-quired all of 101 Collision’s fiveCalifornia facilities, which are locatedin Westlake Village, Burbank, Ox-nard, Santa Barbara and Simi Valley.

“Today’s announcement is a Cal-iber Collision milestone with an acqui-sition that brings Caliber to 100 centers.This acquisition further cements ourstrategic expansion plans across coremarkets as we provide our insuranceclients with the customer focus, costmanagement and operational consis-tency they require in today’s competi-tive insurance market,” said SteveGrimshaw, CEO of Caliber.

“Partnering with Caliber Colli-sion Centers provides our managementteam with unlimited growth opportu-nities across the Southern Californiacoast through operational efficienciesand best practices that only a companylike Caliber Collision Centers can pro-vide in today’s marketplace,” said Ed-wardMohr, founder of 101 Collision.

Caliber Acquires 101 Collision,Reaches 100-Shop Milestone

AkzoNobel held a gathering of theAcoat North American PerformanceGroup from Feb. 15-17 in San Diego,CA. The event was held at the OmniHotel in the historic Gas Lamp Dis-trict of San Diego.

The focus of the meeting is todiscuss the use of sustainable businesssolutions in the collision repair indus-try. Attendees were able to participatein classes designed to promote actionscentered around sustainable businessmodels. The meeting consisted of sev-eral Early Bird sessions lined up forFebruary 15, including topics on Sus-tainability, Team Building, CycleTime, e-Marketing and the economy.

The meeting’s Keynote Speakerwas Kristin Andress, co-author ofthe bestselling book Imagine Being ina Life You Love!

On February 16, attendees couldalso participate in the Dine Around,where guests went to the zoo. The tripincluded an after hours trip to the zoowith dinner, drinks and a private tour.

For more information, visit ak-zonobel.com/aac.

AkzoNobel Holds Acoat PerformanceGroup Meeting in San Diego

CARSTAR held their annual outlookteleconference on February 9; CEOof CARSTAR Auto Body Repair Ex-perts, David Byers, detailed the2011 results for the MSO as well astheir goals for 2012.

According to Byers, 2011 was a“very solid” year for the MSO; salestotaled over $600 million and ex-ceeded the group’s objectives for theyear. 2011 was also a big year forcontinued growth and acquisition ofnew locations, which will also con-tinue to be an objective for 2012.

“We have acquired 17 new lo-cations in the last few months,” saidByers. CARSTAR plans on focusingon growth in California especiallyfor 2012.

Byers also said that the newstores that were acquired in 2011were very successful—seeing 50percent higher revenues than storesacquired in 2010.

Byers also said that changescoming for 2012 will “set the stagefor growth.”

In 2012 CARSTAR plans togrow existing store revenues andprofits, add new stores especially inCalifornia, add new MSO insurancerelationships, and fully deployCARSTAR solution, the group’s newmanagement system in partnershipwith Mitchell. The MSO aims to add

50 new US stores in 2012.CARSTAR did have a presence

in California in the early 90s, but itdid not last. Byers said that he thinksthis current expansion into Califor-nia will be more successful becauseCARSTAR now has an insurance de-partment and a purchasing depart-ment which make the company morestable.

Byers said the way CARSTARis now is “a dramatic difference overwhere we were in the early 90s.”

Byers discussed the affect thismild winter has had on locations thatnormally see an increase in repairsdue to winter weather. He said al-though the mild winter has clearlyaffected business across the US,CARSTAR depends on KPIs andDRPs to continue driving its busi-ness.

“The industry...has seen a soft-ening in the third quarter of 2011into this year” due to the absence ofinclement winter weather, accordingto Byers.

For more information aboutCARSTAR visit: www.carstar.com.

CARSTAR Holds Results and Goals Teleconference

Supreme Court Allows Lawsuits on Lack of Safety EquipmentThe Supreme Court has reversedcourse and ruled that the nation’s au-tomakers can be sued for failing to in-stall the most-effective safetyequipment in their vehicles. Theunanimous decision on Feb.23 clearsthe way for a California man to sueMazda Motor Corp. because his fam-ily’s 1993 minivan did not have a lapand shoulder belt in a middle rearseat.

Judges in California had thrownout his lawsuit, citing a SupremeCourt ruling in 2000 that shielded au-tomakers from lawsuits for their fail-ure to install air bags immediately inall their vehicles.

In a surprise outcome, the highcourt reversed the California courtsand cleared the way for Williamson’slawsuit to proceed. Its opinion alsobacked away from its earlier view thatthe federal motor-vehicle safety lawblocks most safety-related lawsuitsagainst automakers.

Justice Stephen G. Breyer de-scribed the federal safety regulationsas setting forth only “minimum stan-dards,” not the “maximum standards”required by law.

Lawsuits from injured motoristscan play a “continued meaningful

role,” he added, by requiring au-tomakers to go further in seekingsafety.

Breyer explained that air bagshad posed a different issue because, atthe time, federal safety regulators didnot want mandatory installation of airbags because of early doubts abouttheir effectiveness.

By contrast, he said, federal reg-ulators had no objection to automak-ers installing lap and shoulder beltsfor all seats.

It is not clear whether the deci-sion in Williamson vs. Mazda willopen a door to many more successfulsuits against automakers. Much de-pends on the specifics of the federalmotor-vehicle safety regulations.

But the outcome is a surprisenonetheless. In recent years, the highcourt led by Chief Justice John G.Roberts Jr. has regularly sided withcorporations and blocked many law-suits.

In this case, however, the justicestook the view that lawsuits filed by in-jured people can lead to safer prod-ucts. Moreover, these suits are notblocked simply because the federalgovernment regulates the product atissue, they said.

www.autobodynews.comwww.autobodynews.com

www.autobodynews.comCHECK IT OUT!


Less than one month after Arizona re-pealed their Clean Cars law in favorof less-stringent federal emissionsstandards, Arizona is now consideringcharging electric vehicle drivers apay-per-mile tax.

As introduced by Rep. SteveFarley (D-AZ), Arizona House Bill2257 aims to charge electric car own-ers up to 1.43 cents per mile traveled,according to Green Car Reports.

Like similar taxes being pro-posed in Washington, Kansas andOregon, the proposed Arizona taxwould be the electric car equivalent ofthe tax currently levied on gasolinepurchases statewide.

Like state gasoline taxes, anyfunds accrued from the pay-per-miletax would be spent on maintaining thestate’s road network.

“One of the only ways we pay forour roadways is through gas tax,” saidRep. Steve Farley, D-Tucson, to theCronkite News. “If they’re not payinginto the gas tax system, we need tofind a way of closing that loopholeand getting them to pay for the roadsthey use.”

Jim Stack, president of the Elec-tric Auto Association’s Phoenix chap-ter, said drivers of electric vehicles arewilling to pay their fair share in antic-ipation of electric vehicles’ futurepopularity.

“Someday it’s all going to be hy-brids and electric vehicles,” he said.“It wouldn’t do us any good if we did-n’t have any roads.”

Diane Brown, executive directorof Arizona Public Interest ResearchGroup, said she supports Farley’s pro-posal but noted that electric vehiclesprotect air quality and public healthand doesn’t want to do anything todeter their usage.

“Any policy that is accountingfor electric vehicles should be incen-tivizing, not discouraging, their use,”she said.


Arizona Considers Charging Electric Cars Per-Mile Tax

The Glendale/Foothill chapter of theCalifornia Autobody Association(CAA) will hold their monthly mem-bers meeting on March 8th at LKQCorp. in Santa Fe Springs, CA.

The meeting’s social hour willstart at 6 p.m. and the speakers willstart promptly at 7 p.m.

The topic of March’s meetingwill be total losses. The speaker willdiscuss why total losses happen andwhere they are headed in the future.

“One of the very important is-sues in our Industry is Total Losses.They are affecting our Body Shopsevery day and taking away repairsfrom us. Not to mention most of thecustomers really don’t want theircars totaled,” said chapter PresidentLinda Holcomb.

Meeting attendees will also hearabout the Recycled Rides Program.Many body shops across the countryhave participated in the NABC’s Re-cycled Rides program. The NABCplans to give away one car in everystate in 2012.

Attendees will also take a tourof the LKQ facility and get a one onone look at their business behind thescenes.

Next Glendale/Foothill CAAMeeting to be Held March 8

The East Bay chapter of the Califor-nia Autobody Association (CAA)will hold their monthly membersmeeting for March on March 20 atScott’s Walnut Creek.

The meeting will be a dinnermeeting so please RSVP to GigiWalker at 925-383-1816 no later thanMarch 15. The cost for the event willbe $40 for members and $60 for non-members.

The meeting’s speaker will beMike Robbins, a best-selling authorand motivational speaker. Robbins isthe author of two bestselling books,Focus on the Good Stuff and BeYourself, Everyone Else is AlreadyTaken.

For more information about Mikeplease visit www.mike-robbins.com.

Sponsors for this event areLKQ, Diamond Standard and Enter-prise Rent-a-Car.

East Bay CAA Chapter toHost Motivational Speaker



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PPG has announced it will hold its an-nual spring MVP Business SolutionsConference March 25-27, at thePointe Hilton Tapatio Cliffs Resort at11111 North 7th Street, Phoenix, Ari-zona.

The conference has a notablelineup of well-known, motivationalkeynote speakers, relevant seminars,and interactive workshops all focusedon aiding attendees in improving theircollision center performance. Theconference is structured to give par-ticipants exposure to fresh approachesfor advancing their competitive capa-bilities.

“We all need to be reenergizedperiodically,” said Jim Berkey, PPG,director, MVP Business Solutions.“We recognize our customers appreci-ate the opportunity to get away fromtheir businesses and continue thelearning process, not to mention hav-ing a great time at a great venue.”

Two prominent keynote speakershighlight the conference agenda:Vince Poscente and Joe Calloway.

Poscente, a New York Timesbest-selling author, business consult-

ant, and Olympic skier, will talk abouthow to get down to business and up tospeed for a competitive advantage in“Big Goals in Short Order: Learningto Thrive in a More-Faster-NowWorld.” Poscente speaks from experi-ence in a style that communicates, en-tertains, enlightens, and motivates.His approach to attaining extraordi-nary outcomes has one central idea—do what the competition is not willingto do.

Calloway, also an author as wellas a performance consultant, has beencalled “an expert on developing cus-tomer-focused teams” and “one of themost innovative and compelling peo-ple in customer service.” His topic,“Minds Wide Open,” is a dynamicsession of thinking, working, and en-gaging with new ideas that will let at-tendees in on how market leadersthink and create success.

“At every conference we work toacquire a balance of perspectives fromboth inside and outside the collisionindustry,” Berkey added. “Our semi-nars and workshops cover topics thatrange from Repair Planning Detail to

the emerging effects of the HealthCare Reform Act on a collision busi-ness.”

Attendees can participate in in-formative and insightful seminars andworkshops including Poscente’s“Down to Business, Up to Speed” fora humor-packed and energeticoverview of what it takes to meet am-bitious goals quickly.

Other seminar and workshop top-ics include: “Discovery and Parts Pro-curement: The Key to X-Ray RepairPlanning Excellence,” which consid-ers the increased accuracy of X-RayRepair Planning for improved repairflow, reduced waste, and improvedprofit potential; “Paint Shop Through-put: A Quick Changeover Approach,”which uses the Lean Approach tosetup reduction and quick changeoverto maximize booth cycles andthroughput; “Delighting Customersfor Life,” which shows how unprece-dented levels of customer service canprovide a true competitive advantage;and “Zeroing In on Standardization,”which focuses on what we are reallytrying to accomplish with the devel-

opment of standardized work.The conference will also give

participants networking time withtheir colleagues in a number of socialevents that include a golf tournament,a tour of Desert Valley Auto Parts, anda gala dinner at the Pointe Hilton Tap-atio Cliffs Resort’s mountaintoprestaurant, Different Pointe of View,featuring breathtaking views of thevalley’s desert landscape and themusic of Nashville recording artists,the Stacy Mitchhart Band.

The conference is open to ownersand managers of collision centersusing PPG Refinish products.

Prospective attendees are encour-aged to visit www.ppgmvp.com forcomplete conference information andregistration details.Additional informa-tion about PPG MVP Business Solu-tions and future conferences may alsobe obtained by calling (866) 237-8178.


PPG MVP Spring Conference Set for Phoenix March 25–27

www.autobodynews.comC

www.autobodynews.com

partners, may require shops to traintheir people on potentially nine differ-ent methodologies to order parts,” con-sultant Matt Ohrnstein of SymphonyAdvisors responded during the com-mittee’s question-and-answer period.

Ohrnstein suggested the commit-tee could help communicate to indus-try constituents that, just as thebanking industry settled on a standardway to transfer funds worldwide, thisindustry would be better served bystandardized parts-related electroniccommerce systems.

CIC Parts and Materials Com-mittee member Aaron Lofrano alsoreported in Palm Springs on his ad-

mittedly informalsurvey of morethan 120 people inthe industry askinghow use of differ-ent types of partsbenefit or hindertheir business op-eration on a daily

basis in terms of job performance andprofitability.

Lofrano shared some representa-tive comments from the various con-stituencies included in his survey. Hesaid non-OEM parts vendors, for ex-ample, expressed concerns about thenumber of parts returned, and ques-tions about whether those parts reallydid not fit as the shops returning theparts might indicate (often withoutproviding any specific informationabout the problem with the parts).Such returns occur, Lofrano said hewas told, even though other shops inthe same markets return few if anyparts. The parts vendors also ex-pressed frustration with parts being re-turned without boxes or packaging.

Following Lofrano’s presenta-tion, Oregon shop owner Ron Reichensaid he’d like to have more detailedinformation about the vendors’ re-ported parts returns rates.

“We are repeatedly told by thecarriers that it’s about 2 percent,” Re-ichen said, saying that doesn’t seem tomatch up with Lofrano’s assessmentof what he heard from parts vendors.

Info Providers Discuss Data SharingThe “Big Three” estimating systemproviders offered some response at therecent Collision Industry Conference(CIC) to a joint statement by three re-

pairer groups earlier this year voicingconcern about collection and use ofshop data.

In that statement, the Alliance ofAutomotive Service Providers (AASP),the Automotive Service Association,and the Society of Collision RepairSpecialists, said shops wishing to useany of the estimating systems have nochoice but to agree to allow their datato be aggregated and sold or reported tothird-parties, potentially “in ways thatmay ultimately be detrimental to the(shop) who generated the data.”

The estimating system providerspointed out the benefits to the industryof having aggregated data from whichall shop-identifying information hasbeen removed.

Greg Horn of Mitchell Interna-tional noted that the associations areamong those who have at times re-quested such aggregated data, and thatit can help shops understand how theyperforming relative to their market.

Jack Rozint of CCC InformationServices said his company takes everyeffort to ensure it isn’t releasing infor-mation that “could be used to thedetriment of our customer.” He said,for example, that CCC would nevershare shops’ profitability data - suchas gross margins on profit or labor -that it has access to through clientsusing its shop management system,even if a shop gave its permission todo so.

“Because we recognized that‘permission’ in this industry is not al-ways ‘permission’ (because) it’ssometimes (given) when someone hasa program being held over them (and)if they don’t do it they aren’t going toget any more cars,” Rozint said. “Sowe walled off that data and said it’snot going anywhere from our system.”

But Rozint said even if the sys-tem providers gave shops a way toopt-out of having their estimate dataaggregated, little would change.

“Most of the work in this industryis paid for by insurance companies,”he pointed out. “If the insurance com-panies want that data aggregated, theyhave access to it because they paid theclaim, so it will be aggregated. Theonly data you could exclude as a shopif that permission existed would becustomer-pay data.”

EMS vs. BMS debate continuesThe discussion came during a CICData Privacy Committee panel dis-cussion related to when the industrywill shift to a newer technology stan-

dard for the transfer of a shop’s esti-mate data to third-parties.

The associations have beenamong those calling for a shift by theinformation providers away from usingthe older “EMS” standard for transfer-ring estimate data to using the newer“BMS” standard, in large part becauseBMS gives the shop more control over

what aspects of theestimate data areshared. If a shop,for example, or-ders parts electron-ically, the partsvendor receivingthe parts list via theEMS file gets not

only what parts are needed but infor-mation about the customer and his orher insurance. A rental car companyalso might be getting all this informa-tion even if all it really needs is infor-mation on when a customer’s car willbe repaired and the rental returned.

CCC’s Rozint and Rick Tuuri ofAudatex said more fully implementingBMS will require significant develop-ment resources for the informationproviders. And Tuuri said even if ashop could export data using the BMS

standard right now, it would be a littlebit like being the only one with a phoneor fax machine in that you couldn’t useit unless the other party was preparedto communicate that way as well.

“If there’s no one prepared to re-ceive BMS and understand it, there’snot much impetus to develop it,” Tuurisaid.

But Fred Iantorno of the Colli-sion Industry Electronic CommerceAssociation (CIECA) said EMS isbuilt on technology introduced in the1980s; most programmers workingtoday, he said, aren’t even familiarwith it. He said there’s been no re-sources spent on the EMS standardsince its last release a decade ago.

“So yes, you will have to spendmoney to move to BMS because you’renot spending any money today,”Iantorno told the information providers.

John Yoswick, a freelance writerbased inPortland,Oregon,whohas beenwriting about the automotive industrysince 1988, is also the editor of theweekly CRASH Network (for a free 4-week trial subscription, visit www.Crash-Network.com). He can be contacted byemail at [email protected].


Continued from Page One

CIC Report

Aaron Lofrano

Jack Rozint

tion, a technology company offeringan original equipment (OE) replace-ment parts solutions. OEConnectionconnects more than 32,000 NorthAmerican buyers and sellers to handleroughly 6 million OE part transactionsevery month. CollisionLink is used bycarmakers such as Ford, GM Nissan,VW, and Mazda, in addition to theaforementioned Honda and Acura.

Turk stressed three notable thingsabout his company’s program and dis-tilled it down into a discussion thattargeted the most important aspects: 1)CollisionLink online orders are fasterand more accurate than other pro-grams, contributing to fewer returnswhile significantly reducing phonetime and improving cycle times.

2) You can use OE parts morethan you think on Honda and Acurarepairs, because they’re able to con-vert them more than 68% of the time.

3) By submitting a minimum offour estimates monthly into the Colli-sionLink for Honda repairs, shops canqualify for the manufacturer’s Colli-

sion Select Program, in which theycan reap a wide range of value bene-fits. Some of these include participa-tion in the carmaker’s online dealerlocator; linking the member’s shop toa web page that gets 6,000 to 8,000hits daily and the support of Honda’sdedicated national field staff, whichincludes offering in-shop training andother forms of business consulting andsupport. To qualify for this covetedprogram, body shops must also par-

ticipate in one of the big five paintprograms, offered by BASF, PPG,Sherwin-Williams, Sikkens Acoat orDuPont, Turk outlined.

More and more body shopsare tapping into Honda’s CollisionSelect to access all of the addedfeatures of the exclusive program,Turk explained. “This Select pro-gram is a lot more than just pricematching parts. We want to helpyour business on several levelsand Collision Select has been de-signed by Honda to do exactlythat. We offer marketing and anonline presence and we make our-

selves available all the timeto assist and consult our bodyshop members. The main ob-jective is to incorporate moreOE parts into your repairs,but that’s only the begin-ning.”

Veteran Toyota Wholesale De-velopment Consultant Ruben DeLoera then spoke to the SC-CAAmembership about Auto Parts-Bridge, Toyota’s electronic partsordering system that enables bodyshops to tailor its parts orderingprocess while easily incorporat-

ing more OE parts into their Toyotarepairs. Launched three years ago,PartsBridge contains 7,600 parts in itssystem with a conversion rate of 70%

on all parts that qualify.De Loera gave a quick tutorial on

how to use Toyota’s PartsBridge bytaking the submission process throughan easy-to-understand step-by-stepexplanation. It’s as simple as: 1)Logon 2) Process Order 3) Validate 4)Create a Quote and 5) Complete order.

He also briefly instructed themon how to get credit for ordering af-termarket parts with their insurancecompanies that require a certain per-centage of aftermarket parts in their


Continued from Front Page

Parts Presentation

From left, 2012 SC-CAA President Randy Greenblattwith David Mello (Owner Anderson Behel BodyShop in Santa Clara) andMiguel Espana (Owner ofEspana’s Body Shop in San Jose), celebratingMello’s Member of the Year award presented by theCAA.

From left, Steve Sturken (Owner of Sturken AutoBody in San Jose) Shawn Saidi (Owner of ActiveAuto Body in Mountain View) and Alex Ornelas,(Parts Manager at Palo Alto Magnussen’s Toyota)are celebrating Saidi’s award commemorating hisrole as the SC-CAA’s President in 2011.

The annual Val-Test Distributor Showand Meeting was held January 20–23,2012 at The Naples Beach Hotel & GolfClub in Naples, Florida. Celebratingtheir 50th Anniversary, Val-Test is oneof the nation’s leading buying and mar-keting group for distributors of hard-ware, sundries, and marine products.

Vendors in attendance had the op-portunity to spotlight their newest andmost innovative products. The NewProducts were separated into two cat-egories, hardware and sundries, andwere on display for review and ballotvote by Val-Test members during thethree-day extravaganza.

This year’s Sundry winner is Prevalfor vFanAirbrush, the only device on themarket that converts to an air gun andachieves both 3-inch fan and 1/16-inch

hairline spray patterns for detail. Amaz-ingly portable, vFan can be used in all en-vironments when powered by 150 feet ofenergy, Preval’s innovative, eco-friendlyaerosol compressor unit containing 7ounces of VOC-exempt propellant thatpowers more than 150 feet of linear paintcoverage and up to 40 square feet of paintcoverage per unit. The vFan Airbrush isalso compatible with most workshopcompressors. This product was repre-sented by Sales Representatives ShawnOrr and Heather Mingo (877.753.0021).Visit their Web site for more information:www.preval.com.

The winner for the Hardware,Plumbing, and Electrical Divisionwent to ShopVac for Toolmate, a fullsize toolbox with detachable 2.5 gal-lon, 2.5 Peak HP wet/dry vac. The toolbox includes removable tray with stor-age dividers, heavy duty aluminumhandle and buckles. All vac acces-sories conveniently store inside thetoolbox lid, including the supplied fil-ter. This product was represented byMatt Heiney, Senior National Ac-counts Manager (570.321.7204).

For more information:www.shopvac.com.

repairs. “It’s essentially a line in theestimate that notes the fact that OEparts were used, even though they canqualify for aftermarket parts price-wise through our program,” De Loera

explained. “Each platform has a dif-ferent entry area for this function, butall are contained within a com-ments/notes section. Once you canidentify it, the rest is easy.”

De Loera said that with certaintypes of crash parts, such as frontbumpers and rear tail lights, Toyota isvery competitive and can customarilymatch the aftermarket on those typesof parts. With parts like air condition-ing condensers, radiators, wheels,doors, hoods and fender liners, it is alittle more difficult to match the after-

market parts. “We will always try toget you better pricing whenever wecan, so that you know where youstand and make your own educateddecisions,” De Lorea said.

Both speakers wanted to stressthe fact that both programs costbody shops absolutely nothing.“The dealerships pay the freight,so why not give it a try if youhaven’t already signed up?” DeLorea said. “Toyota goes the extramile to help its shop customersand this is a prime example ofthose efforts.”

Upcoming events for the SC-CAA chapter were announced at

the meeting. On April 18, CAA willonce again hold a Legislative Day inSacramento and the chapter’s nextmeeting will be held in San Jose onApril 25. The chapter also announcedthat they will once again be hosting theirIndustry Trade Faire, with a date to bedetermined and slated for the summer.


Chilton’s Auto Body was well-represented at theSC-CAA meeting. From left, San Carlos locationManager James Burbank; OwnerMike Chilton andBurlingame Manager Bobby Carter were on hand.

Val-Test Distributor Show Announces New Product Winners

(l to r): Heather Mingo and Shawn Orr acceptthe award for Sundry winner on behalf ofPreval’s vFan Airbrush, while Matt Heiny (r)accepts for Shop-vac’s Toolmate

www.autobodynews.comC


When I think of a manufacturer whohas had hard times over and over, andhas still survived, the first name on mylist is Chrysler. Of course we knowthat Chrysler is back from the brink. Iwould expect these dealers to be hard-ened, efficient and frugal, but I wasn’texpecting to be surprised.

However, I was very pleasantlysurprised to encounter Jerry UlmDodge Chrysler Jeep of Tampa,Florida. This dealer is not only a sur-vivor; they are the largest auto partswholesaler I have ever interviewed.

This is a long term family opera-tion, with roots deep in the commu-nity. Jerry Ulm is the son of theoriginal owner, and knows parts andservice as well as sales. Rob Bren-neke, the fixed operations manager,has been there for fifteen years. Theirdealership philosophy is total serviceto their customers, and the service de-partment will work on any vehiclestheir customers own. This dealer hasearned the Chrysler Dealer of the Yearaward twice; and probably will again.

This parts department services itscustomers to the tune of about a hun-dred thousand dollars in businessevery day! This is a major operation,requiring forty-five employees in two

buildings, and two managers. Theirlevel of volume requires eighteendrivers, six days a week. But that’s notall; they also use an outside deliveryservice to take parts to their cus-tomers—not just in Florida, but alsoin Georgia, Alabama, and South Car-olina.

I talked to Joe Galbraith, one ofthe two managers at Jerry Ulm. Hetold me that the secret to their successwas in a word: service. This dealerprovides a level of service to their cus-tomer that is amazing! They will pro-vide parts not just for Chrysler, Dodgeand Jeep, but for any vehicle, fromany manufacturer. They want theircustomers to have one-stop shopping,and will pick up and deliver any re-quired part, no matter what it is orwhere it is.

Countermen use email and ALL-DATA systems to order parts. Theirdrivers will stop at other dealers ontheir way back after deliveries, andpick up orders to be dispatched on thenext run. I have heard of dealers pro-viding this type of service before, butnever on this large of a scale.

Fiat’s ownership of Chrysler hashelped this dealer, too. The new lineof Magneti Marelli parts services allmanufacturers and all vehicles. Thisenables Joe to use his overnight or-dering service and provide almost anypart on a next day basis.

But no matter how good the sup-port might be, the strength of a deal-ership is the people on the front line,and the leadership of its managers.The dedication to provide service; andto retain customers is key to their suc-cess. This parts department staff hasover 150 years of combined experi-ence! The wholesale manager isRobert Springer, his countermen areJoe Lanzetti, Brian Garry, GeorgeMowry, Jay Springer, AaronSpringer, and Eddie Chiovetti. Themanager on the retail side is Joe Gal-braith, and his countermen are JohnPiparo, Scott Brenneke, AdamBrenneke, Joe Scholtz, and BillUsewick.

Joe talked to me about his coun-termen, their loyalty to their long termcustomers, and the value of their rela-

tionships. He describes them as multi-talented, and well-rounded. They al-ways want to do better, and do more.They know how important it is to behonest and up front, in order to main-tain the trust of their customers.

Obviously this dealer is not a se-cret in the Tampa area, anyone withthis kind of volume would be wellknown. This kind of success in theparts aftermarket business, however,is not common. It is the result of long-term dedication and hard work; andtakes years in the making. I would liketo point out to those of you in the partsbusiness the value of the wholesalemarket.

To those of you who have the de-sire, and the determination to be suc-cessful; and to grow your wholesalemarket, there is no limit to the successyou can achieve. Jerry Ulm is an inspi-ration to all dealers. All you need is adesire to provide the best service avail-

able, and everything else will follow.Jerry Ulm Dodge Chrysler Jeep

is truly a Distinctive Dealer, and anexample of what hard work and dedi-cation to service can achieve.


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Parts Profileswith Larry Williams

Larry Williams is an innovative parts manager with national awards and over 30 years of experience increating and managing profitable departments. He can be reached for consultation at [email protected] read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html


FCC Collision Continues Expansion in the Greater San Francisco AreaFCC Collision Centers, a multi-shopoperation with three locations in Moun-tain View, Milpitas and Sunnyvale, CA,

started in 1975 when Adam Piper de-cided to start his own business. A re-pairman at the time, he purchased thelocations in Milpitas and MountainView and ran those until 1996.

Then he decided to sell both ofthose locations to now-infamousgroup called M2 Collision Care Cen-ter, while maintaining ownership ofthe buildings the businesses were in.

Then in 2005 M2 went bankruptand since his two sons, Matt andJason, were working at other collisionrepair centers in the area, Adam askedthem if they’d go into partnership withhim on the two stores. Now Matt cur-rently manages the Mountain View lo-cation and Jason manages the Milpitaslocation; they both manage the newSunnyvale location.

“We worked really hard the firstcouple of years to build the businessesback up,” said Jason. M2 had burnedsome bridges in the industry beforegoing out of business and the build-ings also needed some repair, so thetrio worked hard for the first few yearsto get the business to where it is now.

During the economic recession in

2008 and 2009 the Pipers had to ridethe slow economic wave just like therest of the industry.

According to Jason, one thing settheir businesses apart from the restduring this time, “We push hard dur-ing the slow times to reinvent our busi-ness.” During the recession the groupreinvented their marketing strategy,improved their operations and uppedtheir training to get ready for the eco-nomic rebound. It paid off—the busi-nesses have seen a 15 to 20 percentgrowth in the past few years and haveadded several new DRPs.

Then, four months ago, the Pipersdecided to buy a third location in Sun-nyvale. They are currently working toget more DRPs as well as improvingthe building and image of that loca-tion. The Pipers hope to grow FCC to4 or 5 locations within the next fewyears and see continued growth of lo-cations as the best way to stay com-petitive.

Industry consolidation is a majorreason why FCC intends tostay competitive in the indus-try with their continuedgrowth. “The market is fertilefor consolidation right now,”said Jason.

The Pipers are currentlylooking for a fourth location,but it’s got to be the right lo-cation. Ultimately the Piperswant their locations to com-plement each other, since thecurrent three locations service

adjacent communities.“One thing you can’t be in this

industry is stagnant,” said Jason.Across all locations FCC cur-

rently has 40 employees, sees about250 cars per month and grosses nearly$7 million annually. Mountain View isthe largest location with 22,000square-feet, then Milpitas with 16,000and Sunnyvale with 8,000.

The family trio works together welland has common goals when it comesto the businesses. Matt handles much ofthe training, production flow, estimateaccuracy functions and daily manage-ment; Jason handles the accounting,HR, IT and daily management; andAdam handles the business develop-ment, marketing, industry relations and

“old guy” stuff, according to Jason.All three shops are equipped with

state-of-the-art auto body repairequipment including Chief EZ-LinerFrame Machines and Velocity Com-puterized Measuring Systems. Each

shop is also equipped with moderndowndraft SprayBake spray booths,and uses only Dupont paint.

All three shops are currently incontract with VeriFacts, who analyzes,evaluates, trains and reviews ongoingwork on a monthly basis. VeriFacts as-sures that technicians maintain thehighest quality work through verifica-tion and authentication of repairs ac-cording to industry standards andoriginal manufacturers’ guidelines,says Jason. All three owners feel that

their contract with VeriFacts helpsthem to maintain integrity in their re-pairs.

“Using VeriFacts is a big part ofwho we are. We’re always raising thebar on quality by following the mostrecent OEM standards,” added Jason.

FCC has archived the highestlevel within the VeriFacts program:Medallion status. This attainment onlyoccurs after a history of verified certi-fication, training, equipment, qualityand adherence to OEM standards hasbeen established. FCC is one of only ahandful of shops that have attainedthis status across the US.

“FCC utilizes ALLDATA and re-searches OEM specifications on all

structural repairs to ensure strict adher-ence to standards. This ‘tool’ allows usto provide the best, safest repair for ourcustomers,” said Matt Piper.

All three locations are I-CARGold certified. Management requiresthat all personnel enroll in any work-shops or classes offered by originalauto manufacturers or auto paint com-panies. The businesses are all currentlyin a direct repair partnership with sev-eral large insurers. They also do paint-less dent removal, wheel alignment,glass replacement, detailing and glasstinting, towing and rental cars.

Adam Piper has been very activethroughout the industry in his career;including sitting on the Board of Di-rectors of the Santa Clara Chapter ofthe California Auto Body Associationsince 1983, serving as Santa ClaraChapter President five times and serv-ing as Committee Co-Chair of theDefinitions Committee for the Colli-sion Industry Conference in 1994–97.FCC maintains membership in theCalifornia Auto Body Association, theSociety of Collision Repair Special-ists, the National Federation of Inde-pendent Businesses and the Better

Business Bureau.“We aspire to always

provide our customers witha service and ownershipexperience that consis-tently satisfies their needsand exceeds their expecta-tions,” said Adam Piper.The company’s logo is“Quality, Service and De-

pendability.”For more information please visit

www.fcc-collision.com.

FCC Mountain View177 East Evelyn Ave.Mountain View, CA 94040(650) 965-1440

FCC Milpitas1416 S Main St.Milpitas, CA 95035(408) 263-9999

FCC Sunnyvale904 E. Arques Ave.Sunnyvale, CA 94085(408) 400-2440

with Erica SchroederShop Showcase Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves

to talk with owners about their shops and goings on in their areas. Contact herat [email protected], or 800-699-8251

FCC Collision Centers’ owners Matt, Adamand Jason Piper

The crew at the FCC Milpitas location

FCC’s newest location in Sunnyvale, CA

FCC’s first location opened in 1975 in Mountain View, CA


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BodyShopBids, an online and mobileplatform that enables consumers to so-licit custom auto repair estimates byuploading a photo, announced Febru-ary 21 its expansion to the state ofCalifornia.

Accessible for free via iPhone,Android and the Web, BodyShopBidsconnects consumers who need autobody repairs with body shops througha unique bidding system.

Consumers upload a photo oftheir damaged vehicle and receiveseveral custom quotes from nearbybody shops within 24 hours. Fromthere, the consumer can select an esti-mate and book an appointment withthe body shop.

The west coast move comesweeks after the company announcedits expansion to the Pacific Northwest.The BodyShopBids network will ini-tially focus on California’s majormetro areas, including Los Angeles,San Francisco, San Diego, Sacra-mento, Oakland and Anaheim.

“The response from body shopowners across the country has beenoutstanding,” said Brad Weisberg,founder and CEO of BodyShop-Bids. “Body shops are recognizingthat this technology fills a void inthe industry, and that consumers aredemanding information in waysthat have never before been possi-ble.”

BodyShopBids is also evaluatingother viable markets for its service, in-cluding Florida and parts of the south-east United States.

“We’ve had shop owners from allover the U.S. reach out to us aboutjoining the BodyShopBids network,”said Weisberg. “They want to bring innew business and make it repeat busi-ness, which is where BodyShopBidsdelivers.”

Body shop owners who wish tojoin the network can sign up by visit-ing BodyShopBids’ Web page forshop owners. For consumers, theBodyShopBids smartphone app isavailable for download on bothiPhone and Android devices.

BodyShopBids is a Chicago-basedstartup that provides a Web and mobileplatform to connect consumers whoneed auto body repairs with body shopsthrough a unique bidding system.

The company’s technology al-lows users to easily upload photos ofdamaged vehicles and receive customquotes from local body shops, all forfree. BodyShopBids is backed byOCA Ventures, New World Venturesand Lightbank.

For more information, visitwww.BodyShopBids.com.


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BodyShopBids Expands to Offer Online and Mobile Auto Repair Estimates in California

miles where you can get education andinformation along with so much newequipment and products that specifi-cally deal with our industry,”AASP/NJ President Jeff McDowellsaid. “I’ve been saying it for 35 yearsand God willing, I’ll be saying it foranother 35. If you’re in the automotiverepair industry, you need to be atNORTHEAST™.”

The association has named AutoBody Distributing Co. at booth #400/402/404, Ikotec USA at booth #226, Team PRP NorthEast (PRP-NE)at booth # 211, and Toyota of Morris-town at booth # 301-303 as their mustsee exhibitors this year.

“At this point, I think we haveonly a few booths left,” McDowelladds. “It looks like a lot of companiesare making an effort to reach the hugemarketplace we have in the tri- statearea. That’s another thing that makesNORTHEAST™ 2012 unique. It’s thekind of show you can drive to, getsome training and see all the latestgear. No need to for plane rides or trav-eling across the country. It’s all in yourbackyard.”

For more information onNORTHEAST™ and AASP/NJ,please visit www.aaspnjnortheast.com.


NORTHEAST






In a letter to State Farm CEO EdwardRust Jr., Don Harvey, of InternationalCollision Service in Englewood, NJ,questions why State Farm does notacknowledge cost accounting pro-grams and practices in setting paintallowance rates.

Harvey has previously contactedsenior State Farm management to noavail. His letter follows:

Feb 15, 2012

State Farm Insurance Co.Mr. Edward B. Rust Jr.One State Farm PlazaBloomington, IL 61710

Dear Mr. Rust,

Please take a moment to look at anissue regarding customer satisfactionand a “Good Neighbor” responsiblecommitment to proper repairs.

Paint material has been an issueoften questioned and not properly ac-knowledged.

Several years ago the Depart-ment [of Banking and] Insurance

Commissioner Steven M. Goldmanissued a Bulletin #07-20 (copy en-closed for your review) encouraginginsurers to utilize paint cost account-ing software programs and manuals.Just after the issuance of this bulletin,State Farm (Northern NJ) changedtheir paint calculation from a multi-plier of $23.00 per paint hour to$28.00 per paint hour. That was No-vember 2007. Since that time, as weall know, all oil-derived productprices have dramatically increased,however State Farm has not acknowl-edged (NJ office: Mr. CharlieHolmes) any legitimate paint costprograms or software, holding [in-stead] to their antiquated $28.00 perhour calculation with no deviation.

Automotive paints used ontoday’s advanced vehicles requiremany different tints to achieve thelook and appearance duplicating theoriginal finish. Therefore all pricingcannot be properly and FAIRLY de-termined by one multiplier, this iswhy the paint cost accounting soft-ware programs are so important:FAIRLY compensating the repairer

for materials used on the specific ve-hicle (color) being repaired.

Mr. Holmes has repeatedly statedthat State Farm holds true to their sur-vey studies. What is interesting aboutthat is twofold:

1) State Farm (northern NJ) has-n’t sent anyone out to survey theshops in many, many years, leaving itto the shops to call State Farm and getan authorization # before being ableto even get to the survey.

2) I find it interesting that if StateFarm only uses their survey to changerates and materials, why after a shorttime and no apparent survey, did themultiplier change in late 2007 afterthe Bulletin issued by the State ofNew Jersey, from $23.00 per hour tothe current rate of $28.00 per hour?

Most insurance companies areacknowledging the cost accountingsoftware programs plus a mark-up asthe programs use an average COST tothe repair from the suppliers.

In closing I hope that you will re-view this letter and change the wayState Farm, NJ, is conducting busi-ness and [have] The Good Neighbor

do the right thing, properly and fairlyreturning vehicles to pre-accidentcondition.

Respectfully,

Don W. HarveyInternational Collision ServiceEnglewood, NJ, 07631

(Copy of Mitchell Refinishing Calcu-lator Notes enclosed for your review.)

To see additional attachments: NJDOI Bullentin #07-20 and theMitchell Refinishing CalculatorNotes, search the article title at auto-bodynews.com.

If you have any relevant infor-mation submit it to Don Harvey [email protected], or write:

Don W. Harveyinternational collision service328 South Van Brunt St.Englewood, NJ 07631

Phone: 201.567.2124Fax: 201.567.6644

NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances

Before you can begin repairing a ve-hicle, you need an estimate. It’s theeasiest part of this whole deal, right?You have a computerized estimatingsystem that allows you to accuratelydocument everything that is needed tofix the car.

Some say it’s so easy that you cando it remotely by merely looking at apicture. Now that does sound easy!Almost as easy as going fishing withthe “Pocket Fisherman.” Ah, thememories. For those not old enough toremember, every man in the worldwanted one of those little babies nes-tled in their glove box.

Why do I reference the inspira-tional and ageless Ron Popeil and hiscompany, Ronco? It has nothing to dowith getting a sales commission. Imention him because he made the im-possible seem possible. The trivial anddifficult became simplified and logi-cal.

I believe that repairers and insur-ers view estimating through the never-invented “Ronco Goggles.” (Sorry foranother pathetic Popeil reference. Ifyou can’t tell, I’m a big fan and proudowner of an original Pocket Fisher-man and Mr. Microphone.)

If estimating is so easy why is itthe most misguided, challenged andsubjective part of the process? Thereis an easy answer: It’s not really thateasy. Repairers and insurers argue allthe time about the estimating process.I’ve heard repairers say, “The cost torepair the car is the cost to repair thecar. Insurance companies are just try-ing to write a low-dollar estimate. Letthe experts write the estimates and re-pair the vehicle.”

Does that sound familiar to any-one? It should.

Estimating is best defined by theactual root of the word: estimate. Nomatter what any expert tells me, es-timating isn’t an exact science. Infact, if it was an exact science itwould be called a repair bill, not an“estimate.”

Look at the cartoon with this arti-cle and tell me which one of the esti-mators is right. If you said, “All ofthem,” or “None of them,” you wouldbe today’s lucky winner of a PopeilPasta Maker. (Note to self: Add Pasta

Maker to this year’s Christmas wishlist.)

I hope this doesn’t insult any-one who makes their living writingestimates. My intent is to illustratethat any one of them could be right.The monkey was willing to do it forthree bananas; does that make himwrong?

To nobody’s surprise and to thedelight of stockholders everywhere,the insurance company wrote the low-est estimate. If I were put on the stand,I could defend this estimate. It is a vi-sual damage estimate without anytear-down. Does it make the insurancecompany wrong if there is additionaldamage behind some of those parts?That’s why it’s called an “estimate,”complete with a disclaimer at the bot-tom.

I know that this article will resultin some hate mail, but the fact is thatit’s not an exact science and it’s wrongto say “the damage is the damage.” Ifthat was the case, why does it costmore to have vehicles fixed at oneshop compared to another one that’s ablock away with the same labor rate?It is subject to opinion, experience,tear-down and a hundred other factorsincluding whether or not it was rain-ing out or 20 degrees below zero at thetime of the estimate.

By the way, those “other factors”apply to both repairers and insurers.I’m sure estimate accuracy at 4:45p.m. on a Friday compared to 11 a.m.on Tuesday is worthy of another arti-

cle on Insurance Company Estimating101.

Here’s a good recipe to producean accurate, consistent estimate. Itshould include a visual inspection, a

lift, tear-down, a thorough washing ofthe exterior of the vehicle, ample time,3-dimensional measuring equipment,a preliminary pull if needed, updatedestimating software, a live competitiveparts database, an experienced flexibleestimator, use of best-case repair sce-narios, 75 degree sunny weather withno clouds, and of course 20/20 vision.

If you were to have all of thosethings, you are guaranteed to get anestimate that gets you closer than theguess-estimate. So please stop usingthe term, “The damage is the dam-age.” If that was the case, don’t youthink that Ron Popeil would have al-ready simplified our estimating lives?

The Insider is a corporate-levelexecutive with a Top 10 auto insurerin the U.S. Got a comment or questionyou’d like to see him address in a fu-ture column? Email him at [email protected].


Northeast 2012

Booth# 317

Getting a Guess-timate From the Real Expertswith 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]


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This has been a year of extremeweather. Recently, fierce winds blewdown hundreds of trees in one areaI’m familiar with. Many of those treesdamaged vehicles parked on the streetor in driveways and those damagedvehicles wound up in a local collisioncenter to be repaired. Those local shopowners obviously were pleased to getthe business, but only one that I knowof took the time to get some photosand get the story to a local newspaperto get the name of their shop in print.Perhaps if they had acted a bit faster,they could also have gotten their shopfeatured along with some of the TVnews coverage of the wind damage,but any coverage is better than none.To take full advantage of a situationlike this requires a real nose for news.Most shop owners are too busy takingcare of business to constantly ask, “Issomething happening that might getus free publicity and our name andpicture in the news?”

The amazing thing is every shopowner, manager or estimator is pre-sented with potential news storiesmost every day. Many vehicle ownerswho bring a crashed vehicle in for re-pair have a story to tell. And many ofthose stories are bizarre and oftenfunny. If the customer is willing tohave the story told— and better yet ifhe or she has some photos—therecould be some great material to passalong to the evening news or themorning paper.

People are especially interestedin circumstances affecting pet animalsor small children. For example, morethan a million dogs are killed in carcrashes every year. Many of these an-imals have been greatly loved by thedriver or a family member. This couldbe a newsworthy story — especially ifit was the pet of a small child. The im-portant thing for a representative ofthe shop to keep in mind is to not givethe impression that this is an attemptto exploit a sad situation. Unless thestory is funny and the vehicle owneris laughing about it too, a sad story hasto have a positive appeal. If a pet is in-jured or killed, a story could appeal toviewers or readers to take greaterpains to have a proper pet restraint inthe vehicle. The same appeal could bemade if a child is injured or killed andthe seat belt or restraint was not beingproperly used. The story then has apublic service message, but it can alsoreveal the name and concern of theshop and its owner.

A similar message could havevalue if the driver fell asleep at thewheel. Drowsy driving accounts forabout 4 percent of all fatal crashes inthe United States, or roughly 1,500deaths each year. Researchers at theU.C., San Diego School of Medicinesay that each year, potentially 980 livescould be saved and $11.1 billion in au-tomobile-accident costs could beavoided if drivers who suffer from adisorder called obstructive sleep apnea

were successfully treated. Half of thenation’s adults (51%) admit to drivingwhile drowsy, reports the NationalSleep Foundation (NSF). Among 18 to29 year olds, nearly one-quarter reportactually falling asleep at the wheel atsome point during the past year, com-pared with 15% of those aged 30-64,and 6% of people 65 and older. Thereare about 5,000 fatal accidents a yearinvolving big trucks, but there is nogood way to know how many are dueto truck-driver fatigue.

“Driving while drowsy is no dif-ferent than driving under the influenceof alcohol or drugs,” says RichardGelula, NSF’s Executive Director.“When you’re sleepy, your brain startsto shut down,” “But even before youactually nod off, performance slips.”Trying harder to stay awake may nothelp. Your thinking slows, you misssignals and risk-taking behavior in-creases. At 60 mph, if you close your

eyes for only one second, you’ve trav-eled 88 feet. Will a driver who crashedas a result of falling asleep be willing toreveal that? And if so, would he or shebe willing to have that story publicized,even to provide a positive public serv-ice message? Possibly not, but it cannever hurt to ask, and if the driver iswilling, this could be a great story fea-turing the shop in a positive light.

While these public service mes-sage stories may have the greatestvalue, the ones that are bizarre andoften funny will be easier to get anagreement to publish. The driver whoswerved and crashed to avoid hittingan armadillo that escaped from thezoo, or the homeowner who dropped abucket of paint on his car while paint-ing his house may be most willing toshare in the laugh. The astute shopowner who thinks to pass these storiesalong to the press could enjoy an ex-cellent bit of free publicity.


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On Creative Marketingwith Thomas Franklin

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

NHTSA Opened Ford and GM Van Investigations in JanuaryThe NHTSA opened separate inves-tigations into vans made by GM andFord in January. GM is recallingsome 2012 Express and GMC Sa-vana vehicles made from June 2,2011, through October 17, 2011. Thesecond stage of the dual-stage air bagwill not inflate in a severe frontal im-pact. The air bags fail to conform tothe requirements of federal motor ve-hicle safety no. 208, “occupant crashprotection.”

Another GM investigation in-volves about 17,000 2003 ChevroletExpress vans with a door behind thedriver’s side. On these vans, the fuel-

filler pipe is routed differently, goingthrough the rear wheel well, whichthe agency said apparently exposedit to road debris and spray. The nor-mal configuration for these vans iswith side door behind the front pas-senger.

The Ford investigation involvesabout 63,000 2004 Ford Freestar andMercury Monterey minivans. Theagency said it had seven complaintsfrom owners who said the rear-wheelwells rusted so badly that in severalcases the anchor mounts for thethird-row seat belts “completely de-tached from the vehicle.”

A proposed bill that would havechanged the way collision repairshops in Arizona do business has beenheld over to the next legislative ses-sion. House Bill 2394, introduced bystate Rep. Nancy McLain (R-3) inthe Arizona House of Representatives,would have had a negative impact onauto body shops throughout the statewith the original text. The bill used toread (key language in bold):

It is an unlawful practice for aperson who repairs motor vehicles toknowingly: Submit a false claim toan insurer for motor vehicle repair.

Submit a claim to an insurerfor fees not directly related to therepair of the motor vehicle unlessrequired by law. All fees not re-quired by lawmust be posted by themotor vehicle repair facility. Themotor vehicle owner or lessee mustacknowledge in writing that anyfees that are not directly related tothe repair of the motor vehicle or re-quired by law may be the owner’sor lessee’s responsibility.

Submit a claim to an insurerfor storage fees incurred up to thetime the motor vehicle was deter-mined to be a total loss if the motorvehicle repair facility was paid bythe insurer for tear down or repairservices. Storage fees may accruefrom the date the insurer deter-mined the motor vehicle to be atotal loss.

Supporters of the language soughtto stop shops from charging storagefees at the same time collision shopswere being paid for teardown to com-plete an estimate. This bill would haveforced shops, in many situations, to ab-sorb the costs associated with vehiclestorage or bill it to the vehicle owner.The harmful language is not includedin the current bill being considered.

ASA-Arizona opposed the billwith the unlawful practices language.ASA alerted member shops about theproposed language and worked withthe legislature to ensure the bill didnot move through the legislativeprocess as introduced. H.B. 2394

passed the House Committee onBanking and Insurance as a “StrikeEverything” amended bill.

A “strike everything” amendment(also called a “striker”) proposes todelete the entire text of the existing billand substitute new language, essentiallymaking it a completely different bill.

ASA supports legislation thatprotects the consumer’s right to befully indemnified under the terms oftheir insurance policy and is opposedto any type of fraud whether it is initi-ated by a repair shop or an insurer.The vehicle owner has a right to knowall charges that he or she may be re-sponsible for in the repair process.

ASA believed the proposed leg-islation overreached, harming bothconsumers and repairers.

Arizona repairers are encouragedto join ASA’s effort to ensure theirvoice is heard at the state capital andin Washington, D.C.

Unearned Premiums LanguageWhen insurance policies are cancelled

before the end of the policy period,several types of premiums are calcu-lated. An earned premium is that por-tion of the policy period that theinsurance has been in effect, and dur-ing which the insurer has been ex-posed to liability or loss. An unearnedpremium is the portion of the overallpremium which is no longer due to theinsurer. It is the written premiumminus the earned premium. The un-earned premium is to be returned to theinsured, if the policy is canceled, usinga pro rata cancellation method whenthe policy is cancelled with no penalty.

Arizona’s SB 1134 has amendedthe unearned premium language in thestatute to specify terms of refunds ofunearned premiums: “the insurer shalleither mail the notice and refund of un-earned premium together at least tendays before the effective date or mailthe notice before the refund of un-earned premium if both the notice andthe refund of unearned premium aremailed separately to the insured at leastten days before the effective date.”


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Separate Arizona Bills: HB 2394 “Strikes Everything” on Unlawful Practices Language for Repair Shops;SB 1134 Requires Changes to Handling of Unearned Premiums by Insurers

Several crash parts bills have been in-troduced in state legislatures acrossthe U.S. Crash parts bills have beenintroduced in Oklahoma, Hawaii,Massachusetts, New York, South Car-olina, North Carolina and Washington.

The ASA says two state bills areof particular importance for independ-ent repairers. Oklahoma Senate Bill1458 calls for consumer notice andconsent language, and adds new pol-icy provisions including “emissionspart” and “safety part.”

“Emissions part,” the ASA notes,requires the replacement of parts orsystems related to the control, moni-toring and release of waste gases andparticles created as a byproduct ofcombustion. Those parts include oxy-gen sensors, catalytic converters, ex-haust pipes, exhaust manifold, fueldistributor, electronic emissions con-trol unit, onboard emissions diagnos-tic device (OBD), and related partsand components.

“Safety part” requires the re-placement of parts or systems essen-tial to vehicle operation. Those partsinclude suspension, electronic control

units (ECU), brake parts, safety sys-tems and supplemental restraint sys-tem (SRS) components, according tothe ASA.

In addition, Hawaii Senate Bill2326 amends the state’s current lawby removing provisions requiringclaimants to pay additional costs forthe use of original equipment manu-facturer (OEM) parts. It also requiresinsurers to make available the use ofcertain used or aftermarket parts in-stead of “like kind and quality” partsin motor vehicle body repairs. Thelegislation reads as follows:

“Original equipment manufac-turers and like kind and quality parts;used or aftermarket parts: (a) An in-surer shall make available a choice tothe insured of authorizing a repairprovider to utilize a like kind andquality used or aftermarket part of anequal or better quality than the origi-nal equipment manufacturer part ifsuch part is available or an originalequipment manufacturer part formotor vehicle body repair work. Ifthe insured or claimant chooses theuse of an original equipment manu-

facturer part, the insured or claimantshall pay the additional cost of theoriginal equipment manufacturer partthat is in excess of the equivalent likekind and quality used or aftermarketpart, unless the vehicle is currentlyunder the manufacturer’s warranty ororiginal equipment parts are requiredby the vehicle manufacturer’s war-ranty.”

(b) A [like kind and quality] usedor aftermarket part under subsection(a), of an equal or better quality thanthe original equipment manufacturerpart, shall carry a guarantee in writingfor the quality of the [like kind andquality] used or aftermarket part for notless than [ninety days or for] the sameguarantee period as the original equip-ment manufacturer part, [whichever islonger]. The guarantee shall be pro-vided by the insurer.

(c) [Like kind and quality] Usedor aftermarket parts, certified or ap-proved by governmental or industryorganizations, shall be utilized ifavailable.

At its fall board meeting, ASAapproved a new crash parts policy to

reflect the collision marketplacechanges occurring in the past fewyears. ASA’s new crash parts policystates:

“ASA supports requiring insurersand auto collision facilities to providedisclosure of part type, descriptionand warranty information to the con-sumer for all part types including, butnot limited to, original equipmentmanufacturer, aftermarket, recycled,remanufactured, reconditioned and re-built crash parts.

ASA supports quality parts, cer-tified and verified in which the qualityis determined based on empirical andmeasurable evidence equal to the stan-dards of OEM parts. ASA recom-mends quality verification and testingrelated to metallurgy, fit, functionalityand responsiveness.

ASA believes a competitive partsmarketplace, of tested and verifiedquality parts, is in the best interest ofthe motoring public. ASA continuesto oppose parts policies that focussolely on efficiency without regard tocertification, verifiable quality andsafety.”


Several Crash Parts Bills Introduced to State Legislatures Countrywide

such design patent if the purpose ofsuch article of manufacture is for therepair of a motor vehicle so as to re-store such vehicle to its appearance asoriginally manufactured; and after theexpiration of a period of 30 monthsbeginning on the first day on whichany such component part is first of-fered to the public for sale as part of amotor vehicle in any country, it shallnot be an act of infringement of suchdesign patent to use or sell within theUnited States any article of manufac-ture that is similar or the same in ap-pearance to the component part that isclaimed in such design patent if thepurpose of such article of manufactureis for the repair of a motor vehicle soas to restore such vehicle to its ap-pearance as originally manufactured.”

“Competition is the hallmark ofour free market system,” Issa said.“Consumers have dozens of choices inelectronics, food, service, clothing andother products – this same array ofchoices, across all price points, shouldalso extend to automotive repair parts.”

Major aftermarket distributorsand the Quality Parts Coalition have avested interest in being able to manu-facture and import aftermarket parts,however collision repairers in generalshould be leary of increasing the con-troversy over the quality of replace-ment parts specified on insuranceestimates. Proponents of the bill note

that car manufacturers currently con-trol 72 percent of the repair parts mar-ket and have been steadily increasingthe use of design patents. Competitionis reduced and consumers end up pay-ing more than necessary for parts theysay. Because of these elevated costs,insurers will sometimes consider ve-hicles totals instead of paying for re-pairs. The result is that consumers areforced to replace a repairable vehiclewith a different car, an expense theQPC argues can be avoided if thePARTS Act becomes law.

The bill has also received thesupport of the American Insurance As-sociation a property-casualty insur-ance trade organization that representsnearly 300 insurers. Noted MelissaShelk, AIA vice president for federal

affairs, “Consumers deserve access tohigh-quality alternative replacementparts. Increased competition meansdecreased prices and greater choicefor consumers.”

The AIA says that “quality” re-placement parts for such collisionparts including bumpers, fenders andhoods can cost consumers approxi-mately 26 to 50 percent less. Insur-ance savings can be realized whenconsumers choose these alternativeparts, but only if such parts are avail-able. Shelk says that consumers payan extra $1.5 billion annually becauseof the current patent restrictions on re-placement collision parts.

Not surprisingly, OEMs opposethis limitation on their design patents.In the past, groups opposing similar

legislation have said that “copycat”parts are harmful to OEMs and con-sumers alike.

At a March 16, 2010 hearing infront of the House Judiciary commit-tee, Damian Porcari, attorney and di-rector, Enforcement and Licensing,Ford Global Technologies, said, “Thecopyists want to eliminate designpatent protection because that’s whatthey make. As soon as their businessmodel includes engines, brakes and airbags, we will likely hear the call forthe elimination of patent protection onall types of replacement parts. And itwon’t stop with cars. The denial of in-tellectual property rights will alwaysreduce copiers’ costs.”

See next article p. 27 for full textof Porciari’s 2010 testimony.


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PARTS Bill

Toyo Tires Recalls 69,000Tires Due to KinkToyo Tire U.S.A. Corp. released a re-call notice on January 31 for nearly69,000 tires because of a possible kinknear the rim area that could cause acrack and lead to tire failure.

A statement released by the com-pany says the recall involves the ToyoExtensa A/S tires that were manufac-tured at the Toyo Tires plant in Geor-gia and have a “Made in U.S.A.” markon the sidewall, according to Insur-ance Journal.

The faulty tires all have the lastfour digits ranging from 3809 to 4410as the tire’s identification number.

If the tire has the “Made inJapan” or “Made in China” mark onthe sidewall, they are not part of thisrecall.

The company will replace the re-called tires at no charge if returned onor before May 31.

On March 16, 2010, the House Judi-ciary Committee heard Testimony onReplacement Parts Bill HR 3059,sponsored by California House De-mocrat Zoe Lofgren, and previouslyas SB 1368 by Rhode Island DemocratSheldon Whitehouse.

The 111th Congress (2009–2010) considered HR 3059(The Access to RepairParts Act) to amend title35 of the United StatesCode to “make it notan act of infringementof any design patentto make, use, offer tosell, sell, or import intothe United States any ar-ticle that is a componentpart of another article, if thesole purpose of the component part isfor the repair of the article of which itis a part so as to restore its original ap-pearance.”

The bill never became law in the111th Congressional term but has es-sentially been reintroduced in the cur-rent term as H.R. 3889 (see coverstory).

Witnesses at the 2010 hearing in-cluded:• Jack Gillis, director of Public Af-fairs, Consumer Federation of Amer-ica (CFA), Washington, D.C., testifiedfor the bill.• Damian Porcari, director, Enforce-ment and Licensing, Ford Global

Technologies, LLC, Dearborn,Mich, testified against the

bill.• Robert C. Pass-more, senior director,Personal Lines, Prop-erty Casualty Insur-ers Association of

America, Des Plaines,Ill. testified for the bill.

• Perry J. Saidman, prin-cipal, Saidman Design Law

Group, Silver Spring, Md. testifiedagainst the bill.

Lofgren opened the hearing bystating the purpose for her bill—to pre-vent price gouging combined with automanufacturers not needing a monopolyover crash parts to spur innovation—but also recognized that “intellectualproperty rights exist to create incen-

tives for innovation—that’s why it’s inour constitution... these government-created exclusive rights are crucial tothe legal framework that promotes in-novation in our country.”

Attorney Saidman Against the bill“I underscore the pernicious effect ofthe pending legislation (H.R. 3059).This bill does not say that designpatents for repair parts are invalid.Nor does it say that they cannot be in-fringed. Indeed, there can be no argu-ment that the design patents coveringauto repair parts are not infringed be-cause the knock-offs look identical to

the patented designs. Therefore, whatthis bill proposes is that valid and in-fringed design patents be rendere-dunenforceable. These are design

patents that have been applied for, ex-amined by skilled and qualifiedUSPTO design patent examiners whohave determined that the claimed de-sign is novel, non-obvious, and non-functional, and then issued.

“And why are we even discussinga bill that proposes this remarkable re-sult? We are here because the propo-nents of this bill lost a hard foughtdesign patent infringement lawsuitcovering auto repair parts, and can nolonger make, use, sell or import theirknock-offs in the United States.

“So, having been adjudicated as aninfringer of validly issued U.S. design

patents, these companies are askingCongress to carve out an exception to thedesign patent laws for auto repair parts...


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dHONDA PILOT ‘12

The 2010 Pro-Con Argument For Patent Protection of Collision Parts

“it will encourage every industry that loses adesign patent lawsuit to petition the Congress todo the very same thing: to carve out an exceptionto their industry so that their infringement will

not be actionable”—Attorney Saidman

See Pro-Con Argument, Page 30


by Ed Attanasio

There are three sacred things dear tothe hearts of Texans: 1) Football 2)NASCAR and 3) Bass fishing. And al-though there wasn’t any car racing orangling during the recent Super Bowlweekend, there was a lot of footballand all of it was done Texas-style.

On Saturday, February 4, one daybefore the New England Patriots metthe New York Giants in the actualSuper Bowl, 20 flag football teamscompeted in the Van Tuyl Group’sSuper Bowl of Flag Football tourna-ment followed by a trade show andtwo days of company meetings. TheIrving-based company that operatesmore than 70 car dealerships’ collisioncenters nationwide hosted an activity-packed four-day schedule, bringingVan Tuyl management and employ-ees, as well as collision vendors andlocal collision professionals togetherto eat BBQ, network and play somehigh-spirited flag football.

The entire weekend was thebrainchild of Van Tuyl Group’s Na-tional Collision Director DarrenHuggins, who comfortably wore sev-eral hats in creating, overseeing andimplementing all of the weekend’sevents. Sponsored by Van Tuyl, PPGRefinish and Enterprise Rent-A-Car,the full-day flag football double-elim-ination tournament took place at theStampede Sports Arena, a state-of-the-art facility in Southlake, Texas thatfeatures three artificial turf fields. Au-tobody News and Collision Hub werealso on hand to cover the event and allthe fanfare surrounding it.

Teams entered in the tournamentread like a who’s who of leaders in theautomotive collision field, includingrental car companies (Enterprise enteredthree teams, representing three regionsin Texas and Hertz was also on-hand);Paint companies and paint jobbers (Eng-lish Color and Single Source, PPG andSherwin-Williams); Body shop chains

(Caliber Collision had two teams) andseveral local Dallas-area car dealerships(Sewell Lexus, Town East Ford and Re-liable Chevrolet).

Huggins was happy to see thathis weekend’s plans came off withouta hitch, he said. “This weekend sur-passed all of our dreams,” Hugginsexplained. “This is the first year we’vedone this and we’re already talkingabout making it an annual event. Bybringing the industry together for acouple of days, it was exceptional. Weachieved everything we expected andeven more. The competition was un-believable and some of the gameswere really close. And by helping acharity on top of it, that made it evenmore special. I’d also like to thank myco-director of the tournament, RussellHamilton of Enterprise Rent-A-Car,who did all of the scoring and playedan integral part of its overall success.”

All four teams entered on behalfof the Van Tuyl Group were called“America’s Team” and coached byDarren Huggins himself. Led by V.T.Team #1, this championship squadconsisted of standouts such as CaptainZachary “Huggy” Huggins, Darren’sson; MVP QB/DB Jared “Squid”Mosqueda and WR Matt Saoit, who“pretty much caught everything thrownhis way,” according to Darren Huggins.Other stars for the superior team in-cluded WR/DB Heath “Chief”Baker; Johan “The Belgian Waffle”Huewart and WR Gregg “G-Unit”Strandberg. On defense, Bobby “ElNatural” Ghanbari led the attack, in-tercepting multiple passes and takingthem to the end zone more than once.

V.T. Team #1 went undefeatedthroughout the entire tournament, run-ning the table and beating a strongteam sponsored by Sherwin-Williamsin the final game. One of Van Tuyl’sother teams (V.T. Team #2) finished inthird place, led by Eric Payne, Taylor

Hoover and Eli Naylor, among others.Robert Shushi was the captain of

the second place Sherwin-Williams’team and proud of his squad, but per-plexed by the dominance featured byV.T.’s Team #1. “We gave it our bestand we played well, but in the end theywere a little faster and a lot more or-ganized. They had signals and playsand they practiced, something we did-n’t really do that much of. In the end,they were a better team, so hats off tothem. All of the Van Tuyl teams werereally good and the fact that Darrencoached them all didn’t hurt, I’m sure.”

V.T. Team #4 was by far the old-est team in the tournament, totaling449 years of age amongst the group,consisting of nine seasoned veteranswho gave a very impressive and spir-ited performance.

If you’re not familiar with thisfull-speed, non-contact version offootball, here’s a brief description ofthe rules, offered by Huggins. “Youget five players on offense and four ondefense. The quarterback cannot runpast the line of scrimmage, so it’s pri-marily a passing game. The game con-sists of two 7.5 minute halves and theclock runs continually until the lasttwo minutes of each contest. Thefields are 30 yards long and each teamgets four downs to score. You can’t geta first down and there are not any fieldgoals or punts, so it’s all-or-nothingwhen you have the ball. The defensecan’t rush the QB, but he only has fourseconds to throw. And unless they col-lide while going for a pass, there is nocontact permitted in this game.”

By playing a safer, non-contact in-carnation of football, you would thinkno one would get injured, but a fewbumps and bruises did occur during thetournament, Huggins said. “Nothing se-rious, but we did see a few pulledgroins, quad sprains, broken fingers andone bruised heel. Otherwise, everyonewalked (or limped) away a little sore.Pretty much, with so many people play-

ing (in excess of 150) you would expectmore injuries, so we were fairly lucky.”

Huggins came up with the idea forflag football as a team building exer-cise, when he devised such a tourna-ment while holding a series of companymeetings last year, he said. “We were inOrlando when I came up with this idea.I’ve been a Dallas Cowboys fan mywhole life and I’ve coached and playedfootball for many years. Football rein-forces a team approach and teachespeople how to work well together for acommon cause. When I saw how ex-cited and competitive my guys were, Ithought—wow, this can be used tobuild rapport and leadership on a largerstage. And that’s how it started!”

Van Tuyl’s Super Bowl weekendraised more than $22,000 for TrinityRiver Mission (TRM), a West Dallasvolunteer-based community learningcenter that sets up children (3-12 grades)for success. Standing for Tutor, Read,Mentor, TRM graduates 98% of its stu-dents, by creating a wide range of edu-cational and support programs. Byinstituting programs to provide nutritionfor its students through a Kid’s Café thatprovides hot meals and snacks four daysweekly and conducting a Tutor PowerHour with 68 trained tutors onsite,TRM is successfully fighting illiteracyand combating low test grades in Texas.

TRM’s Executive Director DeloresSosa Green, M. Ed., set up a booth atthe Van Tuyl Super Bowl of Flag Foot-ball and met with spectators and playersall day long. “We provide mentoring forat-risk kids to put them in a position tolearn and grow as young people. Wehave children in our program who wantto be engineers, teachers, architects—but the public system is failing them.Low graduation rates prove it.”

Flag Football Tournament/Trade Show Highlights Van Tuyl Charity Super Bowl Weekend

Van Tuyl Team #1 took the crown, while VanTuyl Team #2 finished third. Sherwin-Williams(in white jerseys at the far right) battled V.T.Team #1 in the final, but ended up losing by ascore of 5-3

Van Tuyl Team #1 went undefeated through-out the tournament and beat Sherwin-Williamsin an exciting final game. (At far right, NationalCollision Director Darren Huggins and at centerflashing number #1 sign is Team CaptainZachary “Huggy” Huggins, Darren’s son.)

A Trade Show took place at Van Tuyl’s head-quarters on Super Sunday, featuring 44 ex-hibitors and attracting more than 400 peoplefrom the West Dallas area

The Van Tuyl Group raised in excess of$22,000 for the Trinity River Mission, repre-sented at the flag football tournament by (fromleft) Elizabeth Franco (Outreach Manager),Alexandra Lopez (8th grader who has beenwith TRM since kindergarten) and DeloresSosa Green (Executive Director)


THE VAN TUYL GROUP WOULD LIKE TO THANK OUR SPONSORS ANDTHE FOLLOWING DEALER TEAMS FOR PARTICIPATING IN THEOLLOWING DEALER TEAMS FOR PARTICIPATING IN THE

CHARITY SUPER BOWL.Proceeds and sponsorships benefit Trinity River Mission.

I would like to add special thanks for the following vendorsfor their charity contributions:

Grand Prairie FordGrand Prairie, TX

Grapevine FordGrapevine, TX

Gwinnett Place FordDuluth, GA

Joe Meyers FordHouston, TX

Mall of Georgia FordBuford, GA

Town East FordMesquite, TX

Westway FordIrving, TX

Crest South/Plano CollisionPlano, TX

Crest/Plano CollisionPlano, TX

Husker GMLincoln, NE

McKinney Buick GMCMcKinney, TX

Midway ChevroletPhoenix, AZ

Miles ChevroletDecatur, IL

Reliable Chevrolet (MO)Springfield, MO

Reliable Chevrolet (NM)Albuquerque, NM

Reliable Chevrolet (TX)Richardson, TX

Stonebriar ChevroletFrisco, TX

Van ChevroletScottsdale, AZ

Van Chevrolet (MO)Kansas City, MO

Van Chevrolet (TX)Carrollton, TX

Vandergriff Chevrolet - NArlington, TX

Vandergriff Chevrolet - SArlington, TX

ABC NissanPhoenix, AZ

Bell HondaPhoenix, AZ

Camelback ToyotaPhoenix, AZ

Cerritos NissanCerritos, CA

Collision Center of PeoriaPeoria, AZ

David Maus ToyotaSanford, FL

Grapevine CollisionGrapevine, TX

Kenny Kent ToyotaEvansville, IN

Reliable ToyotaSpringfield, MO

Toyota of DallasDallas, TX

Toyota of RichardsonRichardson, TX

Trophy NissanMesquite, TX

South County Lexus CollisionViejo, CA

on

a

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Enterprise Holdings-Dallas, Garmat USA, Dent Concepts, English Color, Gene Lopez, Kaesar Compressors, Car O Liner, All Data, Velox-Bed Liners, Reliable Chevrolet, Mo., Mitchell International, Becca, Summit

Software Solutions, Auto House Technologies, Matrix Measuring, Auto Body Color and Autobody News.

“Why is this such a bad idea? Be-cause it will encourage every industrythat loses a design patent lawsuit topetition the congress to do the verysame thing: to carve out an exception

to their industry so that their infringe-ment will not be actionable, so thatthey can continue to make, use, selland import their infringing productswithout fear of liability to the designpatent owner... There is almost no in-dustry whose products or services willnot cost less with increased competi-tion. This argument, therefore, ismuch broader than an argument thatdesign patents should not be permit-ted for auto repair parts. It’s essen-tially an argument that patents shouldbe abolished, because patents allowthe owner to monopolize a productand therefore reduce competition.”

PCI’s Passmore in Support of the BillPCI’s Passmore, testifying in “strongsupport” of the bill, said the parts re-ferred to were cosmetic and “the In-surance Institute for Highway Safety(IIHS) through crash testing and crash-worthiness evaluations, consistently hasfound that, generally speaking, cos-metic, exterior parts “serve no safety orstructural function . . . [t]hey merelycover a car like a skin.”Moreover,[IIHS] has found that whether a cos-metic collision repair part is a car com-pany part or an alternatively suppliedpart ‘is irrelevant to crashworthiness.’“

Passmore cited the chart on thecumulative number of crash part de-sign patents owned by the major carcompanies.

He also detailed that “in Decem-ber 2005, Ford Global Technologies(Ford) took the unprecedented actionof filing a Section 337 case at the In-ternational Trade Commission (ITC)against companies in the alternativeparts industry for allegedly infringingdesign patents held by Ford on variousexterior parts for the Ford F-150(model years 2004–2007). On Decem-ber 4, 2006, the Administrative LawJudge held that seven of the designpatents were valid and infringed andissued an exclusion order on those

parts. The exclusion order went intoplace on August 6, 2007, banning theimportation of those parts and, until alegal settlement was reached in Aprilof 2009, competitive choice was ef-fectively eliminated in the UnitedStates for those seven Ford F-150 ex-terior collision repair parts. Therefore,for almost 2 years, the car company

was the one and only source for thepurchase of these seven collision re-pair parts for their trucks.”

Ford’s Porcari testified againstH.R. 3059, stating: “Copycat parts hurtFord, our employees, our suppliers,our dealers and our customers. Fordcustomers rarely know that they aregetting copycat parts because their useis frequently concealed.”

Porcari added that the bill couldlead to a slippery slope of more designpatent exceptions in the future.

“The bill’s proponents present nobasis for treating visible repair partsdifferently than other items protectedby intellectual property,” he said. “Thecopyists want to eliminate designpatent protection because that’s whatthey make. As soon as their businessmodel includes engines, brakes and airbags, we will likely hear the call forthe elimination of patent protection onall types of replacement parts. And itwon’t stop with cars. The denial of in-tellectual property rights will alwaysreduce copiers’ costs.”

Porcari also accused insurers ofbasing insurance premiums on OEMparts pricing but pushing repairers toinstall cheaper, non-OEM parts to savemoney.

“Some background about the in-surance industry will illuminatewhat’s really spurring foreign partscopiers and unscrupulous insurancecompanies. Ford provides insurancecompanies with its genuine Ford re-placement part pricing for every newFord vehicle. Insurance companiesuse genuine Ford replacement partprices to set their insurance rates,” hesaid. “After state regulators approvethese rates, insurance companies thenrefuse to pay for genuine Ford partsand steer body shops to use cheap,copycat parts... This entire discussionabout consumer choice and right torepair is merely a distraction from thebasic unethical business practice of

pricing insurance premiums and usinggenuine Ford parts and then givingconsumers cheap foreign parts.”

CAPA’s Gillis in Support of the BillJack Gillis—director of Public Af-fairs, Consumer Federation of Amer-ica, is also the executive director ofthe Certified Automotive Parts Asso-ciation (CAPA)—testified in supportof Lofgren’s bill.

“For over 25 years, consumershave benefited from competition, al-beit limited, between car companybrand replacement parts and inde-pendently branded parts,” Gillis said.“Such competition, where it exists,

lowers prices, provides choices andimproves quality.” Gillis cited reasonsfor supporting H.R. 3059:

• Elimination of competition willincrease the cost of repairs.

• Eliminating competition will in-crease insurance premiums for con-sumers.

• Eliminating competition incrash parts could diminish safety.

• Eliminating competition will re-sult in more total losses.

• Eliminating competition protectsthe automakers’ “double whammy,”which Gillis described as meaning “notonly will the lack of competition allowcar companies to charge whatever theywant for the parts we need to fix ourcars, but when they charge so muchthat the car is totaled, our only recourseis to go back to them and buy anotherone of their products.”

• Congress can preserve consumeraccess to affordable, competitive andquality crash parts by adopting a “re-pair clause” in the design patent law.


“for almost 2 years [Ford] was the one andonly source for the purchase of these sevencollision repair parts...” —PCI’s Passmore

“In the early 1990’s, the car companies came toCongress and asked for special design copyright

protection on these replacement parts and Congresssaid no... the car companies are now using designpatents to prevent competition...” —CAPA’s Gillis

See Pro-Con Argument, Page 49

Continued from

Pro-Con Argument


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and MechanicalAutobody News March 2012CALIFORNIA • NEVADA • ARIZONA


NSF International has certifiedPartsChannel Inc. under the NSF Au-tomotive Collision Parts DistributorCertification Program, a program thatcertifies distributors who sell auto-motive collision parts.

The NSF Automotive CollisionParts Distributor Certification Pro-gram requires that distributors havequality management systems in placethat address parts traceability, serviceand quality.

The program helps close the gapin the supply chain between partsmanufacturers and body shops andwas developed in response to theneeds of collision repair shops, insur-ers and ultimately consumers.

PartsChannel Inc., a distributorserving the collision repair industrysince 1985, is one of the first compa-nies to earn this automotive parts dis-tributor certification from NSFInternational.

To earn certification, PartsChan-nel Inc. demonstrated that it has ef-fective records systems and inventorytracking systems to track orders andparts through the supply chain.PartsChannel Inc. also met the fol-lowing criteria as required by the NSFautomotive distributor program:● an ISO 9001-certified quality man-agement system,● a parts traceability and inventorytracking system,

● a defective parts procedure includ-ing a customer part complaintprocess,● the ability to administer a manufac-turer’s recall, and● when necessary, a formal correctiveaction to complaints and an immedi-ate recall plan.

“Launched in July as an exten-sion of NSF International’s Automo-tive Collision Replacement PartsCertification Program, the NSF au-tomotive distributor certificationprogram certifies the ability of dis-tributors, including PartsChannelInc., to meet rigid performance stan-dards including having an effectivesystem to track orders and parts,”

said Bob Frayer, Director of NSFInternational’s Automotive PartsCertification Programs.

“We are honored to be amongthe first in what we see as the mostbeneficial industry-wide program tohelp increase the professional stand-ing of distributors,” said PartsChan-nel Inc. Chief Executive OfficerJohn M. Palumbo. “We feel NSFInternational’s unique program,which continually monitors the strin-gent quality assurance processeswithin any parts distribution opera-tion, will greatly benefit our cus-tomers.”

For more information visit ns-fautomotive.com.

NSF Certifies PartsChannel Under Automotive Collision Parts Distributor Certification Program

The National Highway Traffic SafetyAdministration has opened an investi-gation into 2006 and 2007 ChevroletTrailblazers SUVs as well as 2007Toyota RAV4 SUVs and ToyotaCamry sedans for consumer com-plaints of the power windows switcheson the driver’s door melting or burn-ing.

According to NHTSA, therehave been 12 consumer complaintsand other reports from General Mo-tors of the master window switch onthe Chevy Trailblazer melting. Sev-eral of the consumer complaints re-

port the master power windowswitches have led to fires in the dri-ver’s door. The door fires occurredwhile the SUVs were running as wellwhen vehicles were left unintendedand “key off,” according to theNHTSA.

Engineers with the ODI and GMwill investigate the issue further anddetermine if an official recall for 2006and 2007 model year Chevrolet Trail-blazer SUVs is warranted.

Consumers can file a vehiclesafety complaint with the NHTSA’swebsite, www.SaferCar.gov.

NHTSA Investigating Chevy and Toyota Models for Power Windows

According to Consumer Reports,Subaru of America is recalling asmall number of its 2012 SubaruLegacy sedans and 2012 Subaru Out-back wagons due to an airbags issue.According to NHTSA, the cars haveside air bags that might not deployduring a collision and increase therisk of injury to drivers and passen-gers.

NHTSA says around 381 Sub-aru Outback and Legacy vehicleswere manufactured last Decemberwith side air bag components thatcontain the incorrect propellant mix-tures. The improper mixture in the

side curtain air bag initiators mayprevent the safety devices from de-ploying during a collision. Subaruplans on notifying owners of thesevehicles in early April. Owners willbe instructed to bring in their vehi-cles to a local Subaru dealershipwhere mechanics will replace one orboth side curtain air bag initiators,free of charge.

For more information, consumerscan call Subaru’s toll-free customersupport line (800-782-2783) and ref-erence Subaru recall number WVZ-36or visit NHTSA’s safety website:www.SaferCar.gov.

Subaru Recalling 2012 Outback and Legacy Models for Air Bags Nissan Leaf Software Upgrade Coming for 2011, 2012 ModelsNissan NorthAmerica announced plansto update its all-electric Nissan Leaf carwith new software that promises to im-prove performance—specifically, howthe battery-powered car estimates itsrange, or distance it can travel before thecar runs out of power, on February 21.

According to the technical serv-ice bulletin released by Nissan, thesoftware update will be available toowners of 2011 and 2012 Nissan Leafvehicles free of charge. The best partis the free upgrade can be performedat an owner’s home or business “pro-vided there is a suitable and safe workarea,” said the bulletin.

Among improvements to rangeestimations of the electric car, thesoftware update will also: add a newin-car safety feature, alerting Leafdrivers if a door is open while the caris not in “Park”, improve connectivityto CARWINGS, the wireless servicethat connects Leaf owners to their ve-hicles via the Internet, improve thecar’s heating, ventilation and air con-dition control and operation, improvethe Leaf’s in-car informational dis-plays, improve the accuracy of charg-ing time estimates displayed by thedash display and via the Leaf’s CAR-WINGS connection.

Nissan North America put out a re-call notice for a small number of2012 Nissan Versa sedans in Febru-ary for issues with their side curtainair bags, according to the U.S. Na-tional Highway Traffic Safety Ad-ministration.

According to Consumer Reports,the Nissan vehicles were made withair bag initiators that contain an in-correct mixture of propellants thatmay not inflate the safety devices dur-ing a collision.

For this current NHTSA recall,Nissan is expected to notify affected

owners of recalled Altima and Versasedans by Feb. 27.

Owners will be instructed to bringin their recalled vehicles to a local Nis-san dealership where mechanics willinspect and replace the flawed side cur-tain air bag initiators free of charge.

For more information regard-ing this Nissan recall, consumerscan check the NHTSA website:www.SaferCar.gov.

Nissan Recalls 2012 Versa Models for Side Curtain Airbags




During World War II the US used asecret type of language to send andreceive messages, so the enemycouldn’t find out what they weretalking about. They enlisted the helpof Navajo and Comanche NativeAmericans as radio operators. Theseguys used a combination of their lan-guage and relative terms as a way todisguise the real message over unse-cured radio waves during World WarII.

Most of the coding was done byusing a native word for each letter ofthe message. Such as, if you weregoing to say the word “ARMY” theywould pick one of the native wordsthat represented a word in Englishwith the first letter “A” and the samefor each letter after that. In otherwords the letter “B” would be sentover the radio waves as, “Toish-Jeh”which means, “barrel” in English.

So the word “ARMY” would

have been transmitted something likethis: “Wol-la-chee” (Ant) – “Gah”(rabbit) – “Tsin-tliti” (Match) –“Tsah-as-zih” (Yucca)

Thus the word Army wouldhave been spelled out and easilytranslated at the other end. A lot oftimes an entire phrase could be statedwith one word, or a word that wasoften used had a selected native wordthat was used as a substitute. Thenon other occasions an English wordwas thrown in just to confuse thewhole thing even more. It was quiteingenious, and believe it or not, thecode was never—ever—broken. Toquote General Howard Connor(while at Iwo Jima), “Were it not forthe Navajos, the Marines would havenever taken Iwo Jima.”

Trying to sound out those fourNative American words (correctly)and translate it into the actual wordwas easy for these guys. They un-

derstood it, it’s their language andthey could send/translate and relayan answer faster than any machineavailable back in the day. They trulywere code talkers.

So you might ask where am Igoing with all of this? Well, thinkabout it, doesn’t this sound some-thing like the codes we have withtoday’s cars? It does to me.

I read a code, translate it intoworking data, and solve a problem,all with a language that isn’t under-stood by everyone out there. I guessyou could call me a modern day codetalker.

The big difference is you’ve gotpeople with hand held scanners theybought at a local store or from the in-ternet, and have the ability to “read”a code. Or some of them have beento a repair shop that has bought ascanner and read the codes for them.But, they can’t break the code. Theycan’t determine what to do with theinformation they have in front ofthem.

Think about it… it’s World WarII, and you’ve just copied down amessage from your secret hiding spoton the side of the hill. You are aboutto relay the message to your superiorofficers. But, you still haven’t a cluewhat that gibberish means. It’s likereading a code on a car these days,and not having a clue what all thatinformation means. That’s where aqualified automotive technician, (akacode talker) is needed.

I have lost count of how manytimes a car has come into my shopwith a customer standing at thecounter. They have already beensomewhere else, and the other shophas given them an invoice with thecodes and the definition writtendown on it, and more than likely abig “goose egg” in the charge col-umn of the invoice. And they stillhaven’t had their problem resolved.

“Oh I see they didn’t charge youto read the codes… how nice of them(said a little sarcastically I mightadd). So, you need me to find outwhat it all means right?” I’ll ask.

“Yes, but I won’t need it diag-nosed; that’s already done,” the cus-tomer will tell me.

Of course it’s already diag-nosed, and you know what is goingto happen next. I’m going to tellthem there is a charge to trace out theactual problem and determine thereason for the fault code. Any teststhat are needed or extra equipmentneeded to diagnose the problem is allincorporated into the diagnostic fee,which of course ends up with a cus-tomer just about to grab all theirpaper work and head out the door.Because, oh you know what’s com-ing next, “It shouldn’t cost anythingto find out what’s wrong with mycar, because I already had that done.”

This is when I break into my“code talker” story and inform thecustomer of what the process takesto actually find out what that partic-ular code means.

“There’s everything from acompression check to TSB’s thatneed to be considered when it comesto diagnosing a problem,” I’ll tellthem.

Let’s face it, an oscilloscopeain’t cheap, and as far as I know theyaren’t giving away these scanners,not to mention the hand tools, me-ters, and specialty equipment you’llneed to perform some of these tests.

I realize that the code informa-tion to them sounds more like “Co-manche” or “Navajo” lingo than itdoes plain English, but then, I’m amodern day code talker. I can read it,I can interpret it, and I can translateit into English. That’s what I’m herefor.

The next thing to do is make thecustomer aware of the level of so-phistication that is needed to deci-pher these coded messages from thecar. It still amazes me that there arestill a lot of people out there who as-sume replacing a part will alwayssolve the problem, and that intensiveresearch isn’t necessary.

I don’t know about you, butthere are times when I have a car inthe shop that looks like it is on lifesupport with the amount of gadgetsI’ve got hanging out of the hood orfrom under the dash, and it all startedoff with a simple code. (This is oneof those times a cell phone or a cam-

Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician

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

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See Code Talkers, Page 36

era comes in handy and sending ashot of the owner’s car to them sothey can see what you’ve had to do tolocate the cause of that simple codenumber.)

I’m a modern day mechanic; I’mno grease monkey, nor am I the guywith a scanner who’ll read your codesand give you the definition. I’m theguy who will read the code, define it,and translate it into a solution. The carsof today are not the car of yesterday—nor are they the cars of the future. I’vegot to take care of what is here now,and that requires some understandingof the fundamentals of today’s cars.But in order to find out what that littleservice light means on your dash keepin mind… you don’t need a codereader, you need a code talker.


Continued from Page 35

Code TalkersThe California Air Resources Board(CARB) is planning to tighten its airpollution standards once again asfederal regulations requiring a 54.5mpg fuel economy standard by 2025are still being debated across the na-tion.

According to Consumer Re-ports, under federal law Californiahas a special exemption to set tighterair-quality regulations than the rest ofthe nation. This is due to the warmclimate throughout the state thatmakes certain areas hospitable tosmog.

The CARB is planning totighten statewide air pollution stan-dards by 75 percent by 2025.

This will include exhaust pollu-tion such as carbon monoxide, oxidesof nitrogen and sulphur, particulatematter, and unburned fuel, as well asvapor emissions from refueling andfuel system leaks.

CARB standards also governemissions of carbon dioxide, and thestate has signed onto a bargain withthe Obama administration to set thesetargets at the same levels as the fed-eral government’s 54.5 mpg require-ment.

California Plans to TightenEmissions Standards By 2025

Utah House Bill 298 would abolish therequirement that all motor vehicles ob-tain a certificate of inspection prior toregistration is headed to the Housefloor. The bill by Utah state Rep. JohnDougall (R-27) would dilute the UtahState Motor Vehicle Safety InspectionProgram if passed. The most importantchanges made were for the frequencyof the safety inspection requirement,specifically the age of the vehiclebased on the model year. The age of avehicle would be changed from eightor more years old on Jan. 1, 2013 to 10or more years old Jan. 1, 2013. Also, avehicle safety inspection would be re-quired every four years for each vehi-cle that is less than eight years old Jan.1, 2013 in the fourth year and theeighth year. There were some omis-sions that were made to requirementsas well. The bill, if passed, will takeeffect July 1, 2013. ASA opposes thesechanges. The bill’s effect would be tocreate less-safe highways in Utahthere would be more accidents leadingto more injuries and possibly moredeaths. State government studies ofvehicle safety inspection programs inMO and PA say inspection programsdeter accidents, injuries and deaths.

Utah Bill to Weaken VehicleInspection Requirement

ASA will hold its next annualbusiness meeting May 7–8 at theGrand Hyatt DFW InternationalAirport, located at the Dal-las/Fort Worth Airport in NorthTexas.

On the agenda will be openmeetings of the ASA affiliate as-sembly and board of directors.

Ron Pyle, ASA president andchief staff executive, will deliver astate-of-the-association address dur-ing a Tuesday luncheon, and a newchairman of the ASA board of direc-tors will be sworn in during theevent.

In addition, ASA will againhost an Association LeadershipSummit event.

All ASA members are invitedto attend the open meetings duringthe event. Check out the Events sec-tion of www.ASAshop.org for thelatest developments. Additional in-formation about the event, includingregistration information, will be an-nounced soon.

ASAAnnounces 2012 AnnualMeeting Dates and Location

The mayor’s office in the city ofHouston released new changes tothe proposed ordinance to regulatethe automotive repair and collisionindustry. The Houston City Councildid not reach a final conclusion onthe Valentine’s Day ordinance pro-posal but opted to refer the ordi-nance back to the administration.There has been no date set for theordinance to be reconsidered.

Automotive Service Associa-tion (ASA) members in Houstonopposed the proposed ordinanceand will continue to work to en-sure that any ordinance approvedby the city council will treat con-sumers and repairers fairly. Toview information regarding ASA’sgrassroots effort—including theletter sent to the mayor and Hous-ton City Council members—visitASA’s legislative website atwww.TakingTheHill.com.

UPDATE: Proposed HoustonLicense Ordinance Stalls

Fix Auto USA announced the addi-tion of two franchise collision repairlocations in Northern California onFeb. 20.

The new Fix Auto locations in-clude Fix Auto Gilroy and Fix AutoSan Jose, which were formerlyknown as Springer Collision Cen-ters.

“Springer Collision Centers iscelebrating its 20th year in business,”said Steve Springer, owner of FixAuto Gilroy and Fix Auto San Jose.“We are excited to take the next stepwhile committing our company to amarket leader dedicated to improv-ing the collision repair industry.We’ve been using Fix tools for 10years—franchising is the next practi-cal move to position ourselves foranother successful 20 years.”

Fix Auto first introduced itsfranchise model in January 2011.The company now operates 29 fran-chise locations in California, and 47franchise locations overall.

“The recent expansion in Seat-tle and now in Northern California isa clear indicator that a model likeours—which offers independentowners the infrastructure and supportto be meaningful in today’s market-place—is gaining momentum,” saidPaul Gange, president and CEO.

Fix Auto Adds Two New Shopsto Network in N. California

e-mail:[email protected]

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SHOP & PRODUCTSHOP & PRODUCTSHOWCASESHOWCASE

When you’re painting a substantialnumber of luxury cars every month ineight locations and many of them aretop-name brands such as Bentley,Jaguar, Porsche, BMW, Mercedes-Benz and Aston Martin, you need touse the finest equipment and prod-ucts available. By working with thebest companies, hiring the best peo-ple and committing to best practices,Global Collision in Colorado is veryhappy with Garmat USA, a leadingmanufacturer of ecologically respon-sible, competitively priced, and codecompliant paint booths, paint mixingrooms and vehicle prep areas.

Global Collision’s Chief FinancialOfficer Tim Bator respects the Gar-mat booths for their reliability, versa-tility and easy maintainability, he toldAutobody News.

“We’ve establishedagreat relation-ship with Garmat over the years. Wehave their downdraft booths and theirregular paint spray booths in all of ourlocations. In the past eight years, we’vepurchased a total of 16, so we’re obvi-ously committed to Garmat and appre-ciate their quality, service and support.”

The 3000 Series spray boothsthat Global Collision uses are Gar-mat’s top-of-the-line downdraft spraybooths. “We wanted superior airflowand the best lighting we could find.With ten foot-wide doors and a 27foot cabin, it’s easy to get even largecars in and out of the booth.”

Being proactive about maintain-ing and regularly servicing his Garmatequipment is a big endeavor with somany locations, but Bator knows theimportance of doing it right. “You’vegot to take care of your paint booths,just like you do with your car. We per-form our scheduled maintenance onall our paint spray booths on amonthly basis, to ensure the longevityof the equipment. We expect 20-25years of service out of these Garmatpaint spray booths, so it’s a big in-vestment and we want to protect it.”

Bator appreciates the fact thatwhen he has issues or questions withhis Garmat paint spray booths, he cancall directly on the manufacturer lo-cated in Englewood, Colorado to at-tain easy fast answers. “They’ve beenwith us from the beginning and they’vebeen very supportive in getting thepaint spray booths up and running andworking properly. When we ask themfor something, they step up and get itdone for us. You can’t really ask any-thing more from a vendor.”

Early in 2008 Global Collisionmade the decision to convert to wa-terborne paint after much thought and

consideration, George Lilley said.“This decision was not made lightlynor with great haste. The major con-cern to the environment is from theVOCs (Volatile Organic Compounds)which include the kind of solvents thatare used in conventional paints.These solvents escape into the airthus contributing to air pollution.”

The switchover to waterborne hasbeen a big hit among Global’spainters. Bator explained, “We usedthe solvent for somany years becauseit was the industry standard. Weswitched for the environment and twomonths later we asked our painterswhat they thought. ‘We’re not evergoing back to solvent—we love thewaterborne!’ they told us. They werequickly up and running with the water-borne and the Garmat paint spraybooths have worked perfectly since.”

Global Collision prides itself onusing an internationally accepted wa-terborne paint system that adheres tothe strict environmental guidelines ofthe European Union and officially ap-proved by numerous automotive man-ufacturers. All eight shops are fullyadept at preciselymixing approximately23,000 solid, metallic, and pearlescentcolors while accurately matching allmajor current and classic vehicle colors.

Established more than 10 yearsago, Global Collision has grown rap-idly since George Lilley started thecompany in 2003. With an extensivecareer in the collision repair industry,he founded Lilley Group-UK, andworked with the Haggie Group inScotland, and the Royal AutomobileClub of Victoria to Australia, to es-tablish multiple shops.

One of Lilley’s signature creationsis his Flow Line production system,

which he usedwith great success in theUnited Kingdom and central Europebefore bringing it to Colorado. “The ef-ficiency of the shop is maximized withthe Flow Line system, because all ofthe space in the shop is utilized com-pletely,” Bator said. “This way we don’tneed a 40,000 square-foot body shopto produce what we’re currently doing.With the paint booths in the middle ofthe shop, it allows us to pushmore carsthrough the system,which gives us bet-ter cycle times and makes us more at-tractive to our insurance partners.”

“When I first came to America, Iperformed market research on thelocal repair industry and identified aconsiderable difference between thelevel of customer care; types ofequipment, training and technologybeing used here compared to Eu-rope,” Lilley said. “My goal was togain a greater understanding of theAmerican procedures and mentalityand combine the knowledge with Eu-ropean standards. I am pleased tosay that I have experienced a mag-nificent response from my Americancolleagues, and together we worksuccessfully as a team to provide thevery best the collision repair industryhas to offer from around the world.”

Above all, Bator explained, thekey factor to the system’s success isthe seamless, limited movement ofeach vehicle. “Strict quality controlprocedures are in place to ensurethat each stage of the repair processis documented and accounted for. Asa result of the Flow Line concept, ve-hicles are repaired more rapidly thanthe industry’s average downtime,providing customers with a more ef-ficient, timely repair without compro-mising quality.”

Operations Manager Tim Bator (left) and PainterDave Behlow of Global Collision. “In the pasteight years we have purchased a total of 16Garmat Spray Booths, so we’re obviouslycommitted to Garmat and appreciate theirquality, service and support.”

Global Collision8 locations in Colorado

Telephone: 303-442-2047www.globalcollision.com

Garmat USAPhone: (800) 442-7628email: [email protected]: www.garmat.com

Operations Manager Tim Bator. “When we ask (Garmat) for something, they step up and get it donefor us. You can’t really ask anything more from a vendor.”

Global Collision Uses Garmat USA Paint SprayBooths in All 8 Locations

Jake Shaw, Body Shop Manager (right) withpainter Anthony Romero in front of Garmat USA3000 Paint Spray Booth. Anthony says “Hereally likes painting in Garmat Paint Booths.”

by Ed Attanasio


Checker Auto Body in Huntsville, ALis a small, neighborhood shop with abig reputation for quality and cus-tomer service. They like to know theircustomers by first name, and theyoffer pick-up and delivery services,

especially for their older customers,demonstrating their dedication tohelping members of the community.Their website offers a shop “dedicatedto providing the Huntsville, Alabamacommunity quality body repair withthe emphasis on integrity, honesty andvalue.”

The shop was founded in 2007 bySteve Locascio, Bill Goebel andAlan Andriakos when they pur-chased a long-running bodyshop after the owners decidedto retire. Checker Auto Bodyhas since built a reputation forquality repairs, superior cus-tomer service and dedication tothe community. Their websiteis filled with information to as-sist the consumer needing abody repair. For starters, it in-forms customers that they areable to choose the body shopwhere they want to have theirvehicle repaired and do notneed to allow the insurance companyto choose for them.

Checkerautobody.com offers in-formation about how auto body shopswork, what to do at the scene of an ac-cident and how to ensure great cus-tomer service from an auto body shop.They also offer free estimates and ad-vice to consumers who have been inan accident.

Additionally, the website detailsthe specifics of how they determinewhat repairs are necessary and whatthey offer with their collision repairs,frame repairs, automotive painting,auto rebuilding, doors/windows and

fleet body repair services.“Performing repairs to thehighest possible standards,with absolute integrity, whilemeeting demanding timelinesare the founding principles ofthe Checker Auto Body Re-pair business”, according totheir website.

Checker Auto Body is in-volved with repairs for theCity of Huntsville’s Handi-ride and bus depots,Huntsville utilities and theHuntsville city garage. Mean-while, Steve Locascio oftenteaches evening computer

classes at the local community col-lege, while Bill Goebel frequently vol-unteers as a chaperone and driver forthe local Catholic elementary school.The shop is also dedicated to preserv-ing the environment, recycling all ma-terials that are used in their shop.

In discussing current trends in thecollision repair industry, manager BillGoebel notes that a positive trend hasbeen the improvement in the quality

of aftermarket parts and the fact thatparts delivery has become morestreamlined. He is disappointed thatthe industry has not been keeping upwith material inflation.

“It seems that all the price in-creases seen in materials over the lastfive years have been left to the shopowner to absorb; however, on the flipside, DRP involvement has also been

more streamlined and less obtrusive.I think computer knowledge and im-proved communication has helpedthat aspect of our industry,” Goebelsaid.

Additionally, customer expecta-tions are quite high, even for low-cost repairs, while vehicles havebecome increasingly complex. An-other problem is that many manufac-turers are producing vehicles withproprietary SRS and ABS systems,leading to an increased cost for theconsumer. Bill also notesthat few young people areinterested in the auto bodyrepair industry. Noting thatit is extremely rare to see abody technician under theage of forty, he believesshop owners must activelypursue the younger genera-tion coming out of schoolor there will be a huge lackof qualified repair techni-cians in the future of theauto body repair industry.“Skilled labor is going to be verymuch in demand with no bodies tofill it.”

Checker Auto Body employsseven people, including office staff,who specialize in fiberglass, metalfabrication, custom paint and the re-pair of buses and motorhomes. Theshop is 5000 square feet. In additionto thirty to forty body repairs monthly,the shop supplements their revenuethrough their tow truck, storage facil-ity and paintless dent repair. As well,they offer a rebuilding service for to-taled vehicles, and they possess adealer license for wholesaling vehi-cles.

Huntsville, AL’s Checker AutoBody is ASE-Certified and I-Car Cer-

tified, and they are also current withtheir EPA certification. They partici-pate in direct repair programs withAlfa and State Farm Insurance com-panies. Their equipment includes a

Kansas Jack MagnaIII frame machine,Uni-cured infraredpaint booth, rotarylifts, Eagle II dentrepair, RobinairCool-tech A/C ma-chine and Lincoln140 mig welders.Bill also notes thatsmart phones havebecome a huge ad-

vantage during the past five years,providing help in regards to commu-nicating with customers and allowingthe shop to send photos and text in-formation quickly and efficiently.

The shop uses BASF Diamontpaint. They get a large mixture of ve-hicles, new and older models and var-

ious manufacturers. Bill Goebelclaims “paint match will always be achallenge in this industry. The con-sumer does not understand that painthas a definite ‘life’ to it. Today’s vehi-cles can expect about ten years ofpaint life if the vehicle is left outside.We always let the owner know thatthere is going to be a difference inbrand new paint and five, six or eventen-year-old paint. Once they knowthis up front, it is usually not anissue.”

Checker Auto Body Repair, Inc.6235 Mastin Lake Road NWHuntsville, AL 35810256-489-0962www.checkerautobody.com

Checker Auto Body: A Small-Town Shop Offering Big-Time Repairswith Chasidy Rae Sisk

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

Alan Andriakos of Checker Auto Body, a Huntsville, AL,shop that specializes in motorhome repair

Co-Owner Bill Goebel

Tech Josey Corum inside the shop’s paint booth


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State Farm Pays Costs for Two Cases by Ray GunderAfter agreeing to pay in full for pro-cedures and materials previously de-nied, State Farm has now also agreedto pay for all attorney fees and costson two claims brought by Ray Gun-der on behalf of his customers.

Upon State Farm’s October 10th,2011 written denial to provide con-sideration for a plethora of recom-mended and necessary repairprocedures and materials, Gunder,owner of the 44 year old Gunder’sAuto Center in Lakeland, FL, in-structed his legal counsel, AttorneyBrent Geohagan, to prepare the nec-essary steps to file a lawsuit againstthe nationwide insurer at the requestof and authorization by his customer.

The lawsuit was prepared andfiled on October 25th along with aCivil Remedy Notice (CRN) whichwas accepted by the courts on Decem-ber 16th, 2011. State Farm’s legalcounsel responded in a letter to Gun-der’s Attorney dated January 19th,2012 stating, in part, “at all times StateFarm acted in good faith and fairly andhonestly toward its insured, with dueregard for its insured’s interest.”

Furthermore the correspondencestates, in part, “State Farm has de-cided to exercise its rights under

Florida law to avoid unnecessary liti-gation. Accordingly, enclosed is acheck made payable to you and Ray-mond Gunder in the amount of$1090.70—which is the amount de-manded in the CRN, plus statutory in-terest. Again, State Farm’s paymentshould not be construed as an admis-sion of any wrongdoing or liability onthe part of State Farm who denies anyliability, as well as the standing of Mr.Gunder to pursue any claims, but ex-ercise of its right under Florida law toavoid protracted, vexatious litiga-tion.”

On receiving the news from hisattorney, Ray Gunder said, “I amelated that State Farm has chosen tostep up and pay what was due our cus-tomer and that State Farm elected tosettle rather than proceed with a longdrawn-out and costly litigation. Theyknew what they owed and why andthat they would lose if it went in frontof jury. They also knew, they wouldsurely incur additional and significantlegal costs and interest just as theyhave in the past. There are an addi-tional 25 more in line behind thosewhich are ripe to be filed for similarissues. We’ll just keep pounding thatrock!”

Many shops use Facebook fan pagesto engage with their communities,and Clifton Heights, Pa.-based multi-shop operator (MSO) Keenan AutoBody is creating buzz among its fanswith a jingle contest with a cashprize, says Keenan President andCOO Michael LeVasseur.

Keenan Auto Body is looking toits Facebook community of almost2,400 to come up with a catchy jingleto run as part of the MSO’s advertis-ing campaign.

“This is a first for us,” saidCraig Camacho, Keenan AutoBody’s marketing director. “For thepast six years, we have had a produc-tion company produce our storylineof TV commercials, but we felt thisyear was the year of change. Cur-rently, we have almost 2,400 peoplewho ‘Like’ Keenan Auto Body onFacebook, and we know there is a tonof talent out there.”

Keenan is offering a first prize of$1,500 and a second prize of $500. Thecontest began on Thursday, Feb. 16and ends on Tuesday, May 1, with thewinner and runner-up being chosenand announced on Monday, May 21.

Pa-based Keenan Auto BodyHolds Facebook Jingle Contest

A website supporting the AutomotiveService Association’s (ASA) $40 mil-lion Security Shield Product LiabilityProtection benefit through DiamondStandard Parts is now live, the ASAannounced Feb 20.

The ASA says the website, dia-mondstandardsecurityshieldASA.com, is a result of the partnership it re-cently formed with Diamond Stan-dard Parts to provide ASA memberswith expanded product liability pro-tection from the use of the company’scollision repair structural replace-ment parts. The product liability cov-erage is intended to serve as addedsecurity against scenarios when theuse of Diamond Standard parts re-sults in injury to vehicle owners.

The website provides access tothe full program content, includingbackground, coverage, a limited life-time warranty statement, and a “Cer-tificate of Coverage” that can bedownloaded, according to the ASA.The Security Shield Product LiabilityProtection benefit is automaticallyavailable to all ASA-member shops,and does not require individual regis-tration.

ASA & Diamond StandardProduct Liability on Website

Modern vehicles are complex and in-creasingly easily totaled; advances likeanti-lock brakes and traction controlhave increased driver control, and in-creased consumer awareness has im-proved safe driving practices. This alltranslates into fewer repair jobs and col-lision shops must follow best practicesto remain profitable. But what aboutbusiness declines due to steering?

Steering has existed since the be-ginning of the auto insurance industryand, while illegal, it may be here tostay unless something is done tochange the awareness, standardswithin the industry and the laws thatgovern their behavior.

Steering hurts both the shops andthe customer, and if there is going tobe progression in this industry, a solu-tion must be found and regulationsmust be enforced. Good body shopsare being forced out of business. Carowners are receiving sub par parts andservice. A solution would benefit theentire industry and its customers.

The shops trying their hardest toget work based on their reputation andwork aren’t the only ones being af-fected. The customer is also affectedby steering and it can be dangerous tomore than the bottom line. Insurancecompanies can have agreements withshops and vendors where the carowner will get cheaper aftermarket orunexamined used parts, which canhave hairline fractures or other struc-tural issues that may be unsafe.

Almost everyone agrees that thispractice hurts the industry, but fordecades no progress has been made tochange it. Obviously a steered vehicleusually ends up at a DRP shop, ratherthan an independent one, and whetheryou see steering as good or bad de-pends on which type of shop youhave. One reason there’s not enoughopposition to steering is that the shopslosing jobs are balanced by the DRPshops that benefit from it. Solutionsmust be evaluated and once one isagreed upon, implementation and en-forcement must be carried out andmonitored.

So, what are the possible solutions?

Unity Within the CommunityThe auto body industry should come

together, DRPs and non-DRPs, as acommunity, to set a standard for re-pairs and claims. Standards for whatprocedures are covered must be madeso that fair and accurate prices arecharges industry wide. This level ofcommunication and standard settingdoesn’t currently exist and causesgreater separation within the bodyshop community and resentment fromnon-DRPs who may not be able tomatch DRP prices because the influxof jobs coming to DRPs allows themto offer unnaturally low prices.

Change Method of Reporting a ClaimCurrently, the vast majority of claimsare made over the phone. These phonecalls often include a recommendationfrom the insurance company for a pre-ferred DRP shop. Instead of phoningin a claim, improve the Internet claimsubmission process, so that the firststeps of the claim can be done onlineand don’t require human interaction.This will eliminate the possibility thatthe car owner is manipulated intousing a particular shop recommendedsolely by the insurance company.

Another option is making theclaim in person from the body shop oftheir choice. Instead of first calling theinsurance agency, have the car ownercall the insurance company after theychoose a shop, and if possible, havethem call from the shop.

AwarenessWe must let the car owners know thatthey do have a choice when it comesto who is repairing their car. The ag-gressive “recommendation” practiceswon’t intimidate or influence the carowner if they are aware that the prac-tice is illegal, and by allowing the in-surance company to influence theirdecision, they are partaking in illegalpractices that can ultimately hurt thecar owner.

Curtail DRPs, Stop Preferred ProvidersDRPs are the greatest source of frictionbetween shops and insurers but worsecould be on the horizon. “Preferredprovider options” are proposed by theinsurance industry to control costs byoffering policyholders discounts in ex-change for limiting their choices when

it comes to collision repair. Those lim-its include the use of specific repairshops and the use of aftermarket ornon-OEM parts and sheet metal.

If we eliminate DRPs we canstart to re-establish free enterprise, al-lowing the best shops offering themost fair pricing and doing best qual-ity work to get the job, which will re-store a more natural flow within theindustry.

Policy Changes and RegulationOn a larger scale, the issue of steeringcan be addressed through legislation.Insurance agencies need to stopstrong-arming their customers to taketheir car to a preferred shop which isan obvious conflict of interest. Steer-ing is detrimental to free enterpriseand doesn’t allow for the industry toreact naturally to the laws of supplyand demand. Just as the governmentcreated laws that regulate monopolies

that impede free enterprise, they canmandate changes to the auto insuranceindustry.

Steering creates a whole set ofproblems that are in the consumers’best interest to correct. Once a fair so-lution for all parties is reached, it mustbe followed up with enforcement. In-surance companies should be requiredto show full transparency when theircustomers report an accident. Moni-toring will follow to ensure no shop isreceiving unfair advantages and dealsthat exclude other shops or discouragefree enterprise and will eventually belooked back upon as archaic, unjustand unhealthy.

You can contact your local Rep-resentatives to let them know you careabout this cause and ask what they aredoing to fix the problem. Action muststart from within, awareness needs tospread, and solutions need to be dis-cussed.


A Shop Owner’s Suggestions to Control Steering and Worse to Comewith Domenico Nigro

The Community-Focused Body ShopDomenico Nigro is the president of Nigro’s Auto Body, a very progressive shop fortheir community in Philadelphia. In addition to many productivity innovations, Nigro’sinstalls equipment for disabled drivers, has developed several phone Applications,and represents products which directly support charities such as United Way and theNational Breast Cancer Foundation. Contact him at: [email protected].


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Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP WorldPrestige Auto Body in Garwood, NJalways strives for excellence in theirrepairs and customer service. OwnerSam Mikhail’s efforts were recentlybrought to light when he was in-ducted into the AASP/NJ’s Hall ofFame in November, 2011.

About this, Mr. Mikhail states“It was a surprise to me. I’ve been onthe board for a long time, but I am aminority shop when it comes toDRPs. I’ve been active and vocalwhen it came to DRPs and steering

so I know I am not the most popularguy among the DRP shop owners, sofor me to get the award never cameacross my mind. I appreciate thehonor and the people that nominatedme. I know that my effort and hardwork did not go unnoticed.”

He is also happy with the factthat several local newspapers pub-lished the story where consumers cansee that he practices what hepreaches. Sam Mikhail attends theAASP/NJ tradeshow every year be-cause he feels it offers great informa-tion about the industry.

As a veteran in the auto body in-dustry, Sam Mikhail sees many neg-ative trends occurring lately. Becauseshops are being squeezed by insurersresulting in a lot of shortcuts and theuse of inferior parts and materials,

bad repairs are predominant in the in-dustry. Many insurers overlook pro-cedures that need to be done,changing or altering data to fit theirneeds. Because of this, he believesmany existing shops will go out ofbusiness.

New Jersey has seen a decreasefrom 1700 to around 1200 shops inthe past four to five years. Mr.Mikhail believes this is due to theneed for updated, high-priced equip-ment as well as the conversion to wa-terborne paint and changes in cardesigns. Combined with depressedlabor rates and underpayment for ma-terials, this will make it difficult for alot of small to medium shops to stayin business.

Mr. Mikhail also notes that littlenew blood is coming into this trade.Most young people are going intoother industries where they will bebetter compensated for their labor,leaving the auto body industry withan aging population. He believes in-surance companies are driving thistrend because they are looking tolower short-term costs without wor-rying about how this will affect thefuture of the industry.

Prestige Auto Body does notparticipate in any direct repair pro-grams, and Mr. Mikhail has no plansto do so in the future either. He isvery outspoken about his concernswith the way direct repair programsdictate the materials used and resultin lower quality repairs. PrestigeAuto Body works for the consumers,not the insurance companies, andtheir “number one concern is to re-store cars to its pre-loss condition asclose as humanly possible.”

In May 1979, Mikhail openedPrestige in Garwood. He had owneda franchised auto body shop for abouteighteen months in Roselle in a diffi-cult to locate area. The shop in Gar-wood was originally owned by a manwho charged $300 for nearly everyjob, and when he left the area, leav-ing the bank with an unpaid $80,000loan, the landlord bought the shopfrom the bank. Mikhail took the shopover from the landlord, cleaned theshop, replaced the old paint boothand added a frame machine. It took

two years for people to really returnto the shop since many consumers

were afraid that the old owner wasstill in charge of the shop, leavingSam with a struggle to rebuild hisreputation.

In order to do so, he wrote a de-tailed estimate on every car even ifhe knew he would not get the job, ex-plaining to the customer what neededto be done to get the job right. He re-fused to take any shortcuts and gaveevery car the same amount of care,regardless of age, model or value.Any customer problems were ad-

dressed promptly; “we always gavethe customer more than they paidfor.” Prestige now has an excellentreputation in the Garwood NJ com-munity for superior repairs and cus-tomer service.

This Garwood, NJ shop usesSpies Hecker paints on a mixture ofnew and older model cars. Mikhailnotes that many of the older cars

end up being totaled, but if thesesame cars are sent to DRP shops,they will be repaired many timesuntil the cost exceeds the car’svalue, leaving customers with noth-ing more than junk. When askedwhether he has any color matchingproblems with Spies Hecker, SamMikhail insists “there is no suchthing as a problem in color match;if you try hard enough, you canmatch any color.”

Prestige Auto Body boasts a11,000 square foot shop and six tech-nicians. The shop is complete withtwo downdraft spray booths, two E-ZLiner frame machines, one ChiefGoliath frame machine and two Gen-esis Electronic Measuring systems.Additionally, the shop utilizes twoPro-Spot welders, three mig welders,one Hunter wheel alignment ma-chine, a stationary lift, a portable liftand a flatbed. This shop repairs be-tween fifteen and twenty vehicleseach month, and additional revenuecomes from DV appraisals and offer-ing an expert witness service for localattorneys and consumers. The shopalso offers Diminished Value Assess-ments. The technicians and estima-tors at Prestige Auto Body are ASECertified, and the shop is I-CAR Cer-tified.

Besides his involvement withAASP/NJ, Sam Mikhail was also thefirst president of the Garwood Cham-ber of Commerce and is currently thetreasurer. Prestige is also a member,as well as the founder, of the GoldcarCollision Repair Network. Out ofconcern for the environment, Pres-tige Auto Body is currently undercontract to convert to solar power inthe shop.

Prestige Auto Body7 South AvenueGarwood, NJ 07027908-789-2020www.goldcar.com/prestige

with Chasidy Rae SiskShop Showcase Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who

writes on a variety of fields and subjects, and grew up in a family of NASCAR fans.She can be contacted at [email protected].

(l to r): Bruce, Selvio, Frank, Sam, Chris,Morisio and Bill

Prestige Auto Body owner Sam Mikhail

Prestige Auto Body is located in Garwood, NJ,on South Avenue

Spray booths on the shop floor at Prestige

at www.autobodynews.com

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CREF Sees Record $4.1 M in Industry Donations for 2011The collision industry came to the aidof its future workforce in 2011 by pro-viding a record $4.1 million in dona-tions to secondary and post-secondarycollision school programs and theirstudents through the Collision RepairEducation Foundation. Through mon-etary and in-kind product donations,the 2011 Collision Repair EducationFoundation donors helped to providestudent scholarships, student toolgrants, school equipment and supplygrants, the 3rd annual Ultimate Colli-sion Education Makeover schoolgrant, and much more. Since 2008,when the Collision Repair EducationFoundation became a purely philan-thropic organization, the organizationhas provided $7 million in school andstudent support through industrydonors.

“The fact that the Collision Re-pair Education Foundation providedmore support to collision schools andstudents in 2011 compared to the com-bined totals of 2008 through 2010 dis-plays that the collision industry is onethat cares for its future professionals,”said Scott Kruger, Collision RepairEducation Foundation Executive Di-rector.

“This announcement of support

was made possible exclusivelythrough our industry supporters anddonors. On behalf of our staff, Boardof Trustees, and the collision studentswe support, we would like to thankour continued supporters and donors.”

“The Collision Repair EducationFoundation has come a long way sincebecoming a purely philanthropic or-ganization in 2008. The donation re-sults of 2011 display that manyindustry members believe in the Edu-cation Foundation’s efforts to supportcollision schools and students,” saidDoug Webb, Chairman of the Colli-sion Repair Education FoundationBoard of Trustees. “I want to thank theStaff for all of their efforts during2011, all of the Board of Trustees, andof course, all the donors for their sup-port during the year.”

For a complete listing of the Col-lision Repair Education Foundation’sindustry supporters, visit www.Colli-sionEducationFoundation.org.

Inter-industry organizations andindividuals who are interested in sup-porting CREF in 2012 should contactCREF Associate Director of Develop-ment Brandon Eckenrode at [email protected] orat 847-463-5244.

Federal Trial of Baltimore Police Kickbacks Involves LocalBody Shop, About 60 Officers and Insurance FraudWriting in the Baltimore Sun, JustinFenton has reported on the federal po-lice kickback trial in which testimonyimplicates a shop owner and about 60Baltimore police officers. Body shopowner Alex Moreno, of MajesticAuto Repair, has already plead guiltyto his role, said he was approached in2008 by a Baltimore police officerwith an idea to help boost sales at hisfledgling Rosedale business. The offi-cer said, in exchange for a cut, he andfellow officers would funnel cars tothe shop.

According to police and federalprosecutors, the officers were circum-venting the city’s system of authorizedtowing companies by referring cars toMoreno in exchange for payment.Majestic would often increase damageto the vehicles by smashing side pan-els with poles and breaking off mirrorsto increase payouts from insurancecompanies, Moreno testified.

Soon Majestic Auto Repair wasgetting customers almost exclusivelyfrom city police. Moreno testified Feb.14 in federal court that more than 60officers would ultimately get in on thescheme, receiving $300 for each re-ferral. Business grew so fast that he

had to expand to new lots to store allthe cars. In fact, growth was so fastthat Majestic struggled to stay prof-itable, Moreno said. They often paidofficers to bring their own cars in forrepairs, did not require other cus-tomers to pay deductibles, and paidfor rental cars.

Moreno said the idea to pay po-lice for referrals was hatched in 2008by Officer Jhonn Corona, his neighborand shop customer. Corona spreadword of the plan through the depart-ment, Moreno testified, and officerscalled when they encountered acci-dents. Corona pleaded guilty to con-spiracy and extortion last fall.

Moreno also testified that a cityofficer named Osvaldo Valentinefalsely reported that his personal ve-hicle had been stolen. Moreno said thevehicle was at his shop and that Valen-tine had reported it stolen because hecouldn’t make the payments. Valen-tine pleaded guilty to conspiracy andextortion last fall. Moreno testifiedthat at one point, his tow truck driversjoined another company and some ofthe officers started working with theminstead. Those drivers have not beencharged.


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SAABDealersStill LookingatOptions,SixPartiesStill ContendSix parties are still reportedly consid-ering buying Saab Automobile, butSaab’s dealer base also has options.Saab’s demise is not necessarily cer-tain, a Bloomberg report suggests.While 200 Saab dealers worldwidehave chosen to close up shop duringthe last two years, but the remainingare turning to competing automakersto land franchises as Saab’s fate be-comes less promising, the report said.In fact, Saab National Dealer Councilleader Kurt Schirm said each ofSaab’s 188 U.S. dealers is consider-ing other brands. Connecticut dealerGuildford Saab’s general managerTom Backes is reported to havecourted both Maserati and Mitsubishi.“I’ve reached out to quite a fewbrands,” Backes was quoted as say-ing. “Some have said, ‘We’re not ex-panding,’ and others have said, ‘We’lltake a look at it.’ It’s a slow process.”

Garel Rhys, head of the auto-motive industry research center at theUniversity of Cardiff, said: “Thesedealerships have a loyal clientele whomight switch brands. They’re often invery good locations and well-estab-lished. So I’m quite optimistic aboutthe prospects of Saab dealerships”

Mitchell Partners with San Diego Work Readiness Program,New Collision Repair Course at San Diego City CollegeMitchell has established a commu-nity partnership with the San DiegoCounty Office of Education’s WorkReadiness Program. Mitchell is fund-ing a collision repair program at SanDiego City College, which intro-duces area youth to career opportu-nities in the industry. In thisendeavor, the Company proudly con-tinues nearly a decade of support ofthe local program, as part of its on-going community outreach initia-tives.

“Mitchell’s long-standing sup-port for this type of career gateway forour students is invaluable,” said EdRulenz, Project Facilitator and In-structor for San Diego County’s Of-fice of Education’s Work ReadinessProgram. “Challenging economic cir-cumstances make partnerships such asthis one absolutely essential, andthrough Mitchell’s financial support,on-site collision repair facility visits,and provision of tool kits for students,we are able to empower such deserv-ing young people to broaden their ca-reer opportunities and better theirfutures.”

The collision repair class sup-ported by Mitchell at San Diego City

College introduces students to basicvehicle paint preparatory techniques.The course is overwhelmingly popu-lar, with a typical 150 person waitlist. Students can go on to more ad-vanced collision repair training at theschool, and Mitchell also aids in in-ternships and job placement at localrepair shops.

“It is tremendously gratifyingand humbling to see how our part-nership with San Diego City Collegehas presented exciting collision re-pair career opportunities for localstudents, and we look forward tocontinuing to work together to en-courage and support young people inour own backyard,” said Jack Far-nan, Mitchell’s Senior Vice Presi-dent of Human Resources. “ForMitchell, active involvement in ourcommunity is a personal endeavorfor our team members and speaks tothe integrity we try very hard tobring to every aspect of our busi-ness. We are proud to make more ca-reer opportunities a reality for morepeople and view partnerships such asthis one as an opportunity for us tocontinually strengthen our commu-nity.”

The Orange County chapter of theCalifornia Autobody Association(CAA) will hold a morning meeting inFebruary. The meeting will be held onFebruary 28 at 8 a.m. at the TustinRancho Golf Club in Tustin, CA.

The meeting’s speaker will beChris Linford with Oozle Media.Chris will speak about social mediaand why it is essential to any business.Chris is the ‘Pay Per Click’ campaignmanager at Oozle, which means hemonitors the company’s pay per clickcampaigns with software that showswhich keywords and phrases result intheir customer’s phone calls and otherforms of conversions.

According to Oozle, relation-ships are the number one reason whysocial media is so effective for busi-nesses; it allows customers to createpersonal relationships with a com-pany, ultimately resulting in morebusiness from them.

The cost of the breakfast meetingis $40 for members and $60 for non-members.

Please contact Cindy Shillito,Southern California CAA Rep, formore information at 714-944-4028 [email protected].

Orange County CAAChapter toHold Morning Meeting in February


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Study: 96% of All Repair Shops Recycle Scrap MetalAuto repair shops are playing a keyrole in protecting the environmentwith 96 percent reporting they recyclethe scrap metal from automotive com-ponents, according to a study done bythe Automotive Aftermarket IndustryAssociation (AAIA).

Shops are recycling the scrapmetal from many auto parts, includingalternators, brakes, engines and trans-missions. The volume of material re-cycled annually in the United Statesincludes 74 million metric tons of ironand steel, 4.7 million metric tons ofaluminum and 1.8 million metric tonsof copper, according to the Institute ofScrap Recycling Industries (ISRI).

“Scrap metal recycling has an ex-tremely positive impact on our envi-ronment,” said Rich White, senior vicepresident, AAIA. “It conserves naturalresources, reduces greenhouse gasemissions and air pollution, saves en-ergy and minimizes the amount ofwaste sent to landfills.”

According to ISRI, recycling oneton of steel conserves 2,500 lbs. ofiron ore, 1,400 lbs. of coal and 120 lbs.of limestone, and the energy savedusing recycled materials versus virginmaterials is up to 58 percent for ironand steel, 92 percent for aluminum

and 90 percent for copper. If the fer-rous scrap that is recycled in theUnited States were put into rail cars,the train would stretch 11,349 miles,nearly halfway around the world.

In addition to recycling scrapmetal, automotive aftermarket compa-nies, including auto repair shops, man-ufacturers, distributors, retailers andjobbers, routinely recycle tires, batter-ies, used oil and oil filters, parts clean-ing solvents, plastics, cardboard andpaper, a/c refrigerant, dunnage andwood pallets.

The study is part of AAIA’s ini-tiative to illustrate the automotive af-termarket industry’s widespreadefforts on behalf of the environment.The information is presented inAAIA’s “Driving Toward a CleanerEnvironment: The Automotive After-market’s Green Story,” in the shortvideo, AAIA Green, and in a GreenSnapshot. For more information, visitwww.aftermarket.org/green.

AAIA is a Bethesda, Md.-basedassociation whose more than 23,000member and affiliates manufacture,distribute and sell motor vehicle parts,accessories, service, tool, equipment,materials and supplies. AAIA repre-sents more than 100,000 repair shops.

This Year’s Chicago Auto Show Used New Media TechnologyThe Chicago Auto Show (CAS) used aseries of unique and creative socialmedia events and formats to inform andengage attendees at the 2012 show, Feb-ruary 10–19, 2012. It is the first autoshow in the U.S. to use such a completepackage of social and digital media,highlighting the importance of thesemediums for consumers and attendees.

“We’ve used various forms of so-cial media before, but we realized thatwe could do so much more than anyother show to engage social media andexcite consumers,” said Dave Sloan,President of the Chicago AutomobileTrade Association. “In order to createthis unique package, we hired VividAs-cent, an integrated marketing agencythat specializes in social and digitalmedia. We have partnered with them toleverage their social media, video andcreative skills in a way we have not seenin other U.S. auto shows.”

Some of the unique social and dig-ital media programs that were used inthis year’s show included:

1. Daily “Webisodes” that shareupdates of special programs, contestsand events that will be highlighted onthe CAS website and distributed to so-cial media

2.A“First Look for Charity” menu

tour for food bloggers and digital influ-encers that cover the Chicago food in-dustry previewing the show’s annualcharity event that is open to the public

3. A Blogger Sweepstakes specifi-cally designed for bloggers to invitetheir readers to win an exclusive autoshow experience

4. Facebook photo contest, called“How Sweet is Your Ride?” allowingfollowers to upload photos of them-selves with their favorite vehicles andvote for the winner, who received a VIPPackage

5. A special Foursquare page forchecking in at the show

6. A Social Media Day for digitalinfluencers and bloggers to preview theevent before the public

7. A Drive-In Program designedfor select digital influencers and blog-gers to evaluate new vehicles

8. Unique Digital Media Releasescontaining video and digital assets pro-viding news updates throughout theshow

9. Twitter updates providing real-time news and information throughoutthe show

“We wanted to make this showmore exciting for the attendees,” Sloanadded.


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There is a new tow for pay scamgoing around and several shops havecontacted ABN to alert us.

The scenario described by faxand possibly email is that their carneeds to be towed from another stateto be fixed at your shop. But theyneed you to pay the tow bill beforethe car can be delivered. One shopreceived two faxes (in two differentfonts) from someone calling himself“Evangelist Jerry Bratt” saying hiswife had an accident in a 2007Cadillac Escalade on her way toKansas. And of course it asks thatyou only email him. And he’ll bepaying cash. And of course you needto pay the bill. The fax asks for theaddress of your shop.

The last time this went aroundshops were expected to pay a towbill over a $1000 and they tell youthe “wrecker” will only accept amoney gram. Maybe also a requestfor a credit card.

Don’t fall prey but alert us ifyou receive this fax. The sending faxnumber is/was 202-204-0669, anumber traced to Washington, D.C.

We don’t know if there is a realJerry Bratt, or whether or not he isan Evangelist.

“Evangelist Jerry Bratt” Scam,Tow-for-Pay Revived

California Attorney Wins$10,000 Claim v. HondaA non-practicing California attorneywon nearly $10,000 for herself in hersmall claims suit against Hondaclaiming the company knowinglymisrepresented the mileage shewould get with her Civic Hybrid.The Small Claims Court lawsuit isunusual in that some legal expertsbelieve it could change strategies forboth Small Claims Court and class-action litigation. A Los AngelesCounty court commissioner ruledthat American Honda Motor Co.negligently misled Civic ownerHeather Peters when it claimed thehybrid’s gas mileage could be asmuch as 50 miles per gallon. Hondahad offered a couple hundred dollarsand a $1,000 voucher toward thepurchase of another Honda vehicleto complaining customers who par-ticipated in a class action lawsuit.Honda says they will appeal butmany more owners of the 2006 CivicHybrid may be going the smallclaims route.

Some say Peters is suing thewrong party, since EPA oversees thempg ratings and Federal law requiresthem to be used. Five states’ AGshave asked for more time to considerthe settlement with 200,000 owners.

Allstate has announced plans to openfull-service Allstate agencies insideauto dealerships nationwide. Allstatesays it will place agency offices onthe showroom floor inside auto deal-erships, which will operate duringregular business hours of the dealer-ship. Licensed insurance profession-als and a team of support staff willwork onsite to help customers assesstheir insurance portfolio. The goal ofAllstate’s dealer program is to inte-grate the purchase and service of avehicle with opportunities for con-sumers to price auto insurance withAllstate and work with a licensed in-surance professional on their cover-age needs, said Mark LaNeve, seniorexecutive vice president and chiefmarketing officer for Allstate. “Ouragency owners are at the heart of All-state’s business and this program al-lows us to attract new customers at atime and location that’s convenientfor the customer,” LaNeve said. All-state said it tested the program fortwo years in 11 auto dealerships na-tionwide. The pilot test revealed thatthe dealer program offers the con-venience and face-to-face interactionthat customers want, according to thecompany.

Allstate will open Agencies inDealerships, from Test Program

Toyota Industries Corp. announcedplans to open a $350 million automo-tive parts plant in Jackson County innortheast Georgia, creating 320 jobs,in early February.

The plant will create automotivecompressor parts and will be built neara related assembly plant off I-85 inPendergrass, GA. The automaker ex-pects the plant to be completed in late2013, according to the Atlanta Jour-nal-Constitution.

“In opening this new Georgiamanufacturing facility, Toyota Indus-tries Corporation sends a very clearmessage about its confidence in ourstate’s ability to help them remaincompetitive in global markets,” Gov.Nathan Deal said in a news release.

“Projects such as this underscoreGeorgia’s record of success in attract-ing international investment to ourstate,” Chris Cummiskey, commis-sioner of the Georgia Department ofEconomic Development, said to theAtlanta Journal-Constitution.

Courtney Bernardi, director ofeconomic development for the JacksonCounty Area Chamber of Commerce,expected the plant bolsters the area’smanufacturing base and to pay higherthan the county’s average.

Toyota to Expand in US WithGA Compressor Parts Plant

There has been a longstanding recom-mendation to apply epoxy primer, aswell as anti-corrosion compound, onthe inside of rails and pillars androcker panels as a last step for struc-tural repairs.

Going back as far as theJuly/August 1988 I-CARAdvantage, in the article“Restoring Corrosion Pro-tection,” is the followingstep for providing corrosionprotection to enclosed inte-rior surfaces: “Apply primer.Two-part epoxy recom-mended. Then apply anti-corrosion compound.” Thereason given, is that on areaswhere the coatings havebeen entirely removed, this is a two-step process that is replacing the twooriginal coatings, zinc and E-coat.

During research for the recentlyupdated I-CAR course, Corrosion

Protection (CPS01), I-CAR askedseveral product and vehicle makers ifthis is still the most frequent recom-mendation. I-CAR was told it is not,due to several reasons. These includepossible primer adhesion problems

on these surfaces, the lower preva-lence of epoxy primer at repair facil-ities, the increased popularity ofself-etching primer, changing primerchemistries, and an increase in the ef-

fectiveness of anti-corrosion com-pound.

E-coat is the best corrosion pro-tection material that will ever be ap-plied to a vehicle surface, and aside ofthe weld backside, the enclosed inte-rior areas have E-coat.

Still, there is a concern among re-pair facilities for longevity of repairs,retaining corrosion warranties, and as-surance that there is one more layer ofprotection, especially in the rust-beltareas. For these reasons, and more,several facilities will continue to applyepoxy primer in addition to anti-cor-rosion compound to enclosed surfacesas a standard operating procedure.

Primer Requires a Cleaned SurfaceProduct makers have a concern withadhesion if these backside areas arenot cleaned properly. Any surface tobe primed must be cleaned, both me-chanically and chemically.

If applying epoxy primer insiderails and other structural parts, thesurfaces must be cleaned before thepart is assembled. This requires sand-ing followed by a thorough chemicalcleaning, especially the joint areabackside to remove coatings. Theremight be access to a rail joint, if thejoint is near the very tip of the railand the rail is open-ended up throughthe joint location. Other than a situa-tion like that, there isn’t enough ac-cess for proper cleaning afterwelding, so it must be cleaned beforeassembly.

Anti-Corrosion Compound AloneThe recommendation from the prod-uct makers and vehicle makers that I-CAR communicated with duringresearch for updating the I-CARcourse, Corrosion Protection (CPS01),is to apply anti-corrosion compound


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Corrosion Protection to Structural Part Interiors

I-CAR TechThis article first appeared in the I-CAR Advantage Online, which is published and distrib-uted free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is anot-for-profit international training organization that researches and develops qualitytechnical education programs related to collision repair. To learn more about I-CAR, andto subscribe to the free publication, visit http://www.i-car.com.

Figure 1. Anti-corrosion compound is applied to enclosedinterior surfaces with a wand using access holes

See I-CAR Tech, Page 62

Most of these points are contested by theOEMs, but collision repairers do nottypically hear the case for patent pro-tection directly from the OEMs. Whatfollows is patent attorney Porcari’s fullargument in front of the committee.

Damian Porcari’s Opposition for Ford“Chairman Conyers, Ranking Mem-ber Smith, and members of the Com-mittee, my name is Damian Porcari. Iam an attorney with Ford GlobalTechnologies, LLC., a wholly ownedsubsidiary of Ford Motor Company. Iam responsible for obtaining and en-

forcing Ford’s design patents, espe-cially those directed to exteriorcomponents such as fenders, hoods,

grilles, lights, and mirrors.“This legislation, if signed into

law, would undo wins by Ford withthe International Trade Commissionagainst foreign manufacturers makingcopycat F-150 parts. The infringerspurchased a single genuine Ford partand used low-cost laser scanners tomake ‘photocopy-like’ copycat parts.Ford hosted representatives of theU.S. Patent and Trademark Office inour design studios and demonstratedhow infringers are able to make tool-ing for a copycat fender in a matter ofhours using this equipment. Ford, oursuppliers and our dealers are losing$400 million per year in genuine partsales because of this flood of importedcopycat parts.

“I freely admit that a companycan save money by copying a designas opposed to creating, testing, mar-

keting, and selling an original design.This is not a revelation. It has been

and will always becheaper to stealsomething than topay for it. This ap-plies to all marketsand all products.Our opponent’s ar-gument is no morethan a justification

to deny all intellectual property rightsacross the board.

“Copycat parts hurt Ford, ouremployees, our suppliers, our dealers,

and our customers. Ford customersrarely know that they are gettingcopycat parts because their use is fre-quently concealed. Customers pur-chase a Ford vehicle for manyreasons, including its features, quality,styling, and value. They also buy aFord because of its high domestic con-tent (Monroney sticker) or because itwas made by UAW workers. These

factors are also important in repair de-cisions. But when this same customertakes his or her car to a body shop,they frequently receive non-Ford,non-U.S., non-UAW parts, all withoutany disclosure or warning. They takea Ford in for repair and given in returnan untested experiment that may ormay not function as intended. Forddoesn’t test how copycat parts work orwhat interaction various copycat partshave with each other. We test Ford ve-hicles with genuine Ford parts.

“Copycat parts makers talk ofmonopoly pricing by automakers if

parts can’t be freely copied. Yet thereis no evidence for this argument. Forover one hundred years, Ford hasprided itself for selling vehicles withreadily accessible and affordable re-placement parts. If the pricing of gen-uine Ford parts made insuranceunaffordable, we wouldn’t sell anycars or trucks. Everyone purchases in-surance before they drive their new


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“If this bill becomes law, a real car would have noprotection against copies, but a cartoon car would

be protected for 120 years”—Ford’s Porcari“the increase in the number of design patentsfiled... is a response to the increased copying ofparts. If this bill becomes law, part copying willcontinue to increase and negatively erode U.S.

manufacturing jobs” —Ford’s Porcari

Damian Porcari


Pro-Con Argument

car home. This argument is a smoke-screen to divert attention away fromthe fundamentally dishonest practiceof purchasing a single Ford part andmaking cheap copycat parts in low-wage foreign factories that are sold toan unknowing American public. Tech-nology transformed the copying ofbooks in the 70’s, music in the 90’s,and movies this century. It is nowtransforming the car parts market. Vir-tual 3-D photocopiers are making itfaster and cheaper to clone parts.Ford’s only recourse is to rely on animperfect form of intellectual propertyprotection—design patents—to stopthe wholesale cloning of our vehicles.That’s why you are seeing a signifi-cant increase in the number of designpatents filed in the U.S. Patent andTrademark Office. It is a response tothe increased copying of parts. If thisbill becomes law, part copying willcontinue to increase and negativelyfurther erode U.S. manufacturingjobs. Auto companies, suppliers, anddealers will compete with cheap Tai-wanese copycat parts by outsourcingmanufacturing to other even lower-cost countries.

“This bill encompasses morethen car parts. Any replaceable com-ponent would be free game for for-eign copying including battery packs,printer cartridges, razor blades, tires,and golf clubs. All forms of intellec-tual property are aimed at preventingcopies. There is no fundamental rea-son to treat a fender differently than adrug, a purse, or a movie. To do sootherwise is to devalue design. I ex-plain this comparison by describingan accident. The vehicle’s fender,brakes, and tires are damaged. Thedriver also breaks her sunglasses, aCD that was playing is scratched,some prescription drugs fall on theground, and a $100 bill blows away.Which of these articles should befreely available to foreign copyistsand why? What fundamental princi-ple supports treating a fender differ-ently? The bill’s proponents presentno basis for treating visible repairparts differently than other repairparts or other items protected by in-tellectual property. The copyists want

to eliminate design patent protectionon copycat parts because that’s whatthey make. As soon as their businessmodel includes engines, brakes, and

air bags, we will likely hear the callfor the elimination of patent protec-tion on all types of replacement parts.And it won’t stop with cars. The de-nial of intellectual property rights willalways reduce copiers’ costs.

“Proponents argue that this bill isneeded to restore “balance” betweencar companies and customers. Thephrase: “It’s my car, I should be ableto fix it” is used to suggest thereshould be a “fair use” right-to-repair.While the car indeed belongs to theowner, the patents protecting it donot. Patents have never needed a “fairuse” concept because they involvecommercial production of products.

The patent teaches others how tomake something. If a patent is unen-forceable against foreign manufactur-ers, the American inventor is left withnothing. This entire repair argumentis a smoke-screen. Car companiesdon’t sue customers for pulling a dentfrom their fender. Razor companiesdon’t sue customers for sharpening adull blade. Customers have the rightto repair their car or sharpen theirrazor, but they don’t have the right tomake copy fenders or copy razorblades. Far more importantly, foreigncompanies don’t have the right to sellmillions of copycat fenders or razorblades into this country. That’s not“fair use”, that’s a large-scale foreigncommercial enterprise stealing busi-ness from the American inventorthrough unethical copying. And that’sexactly what’s happening in the carbusiness today. Dozens of foreignfactories, employing thousands ofworkers are selling billions of dollarsof copied car parts. Ford is workingto stop this practice by enforcing its

design patents. Rather than restorebalance, this bill would upset longstanding US intellectual property lawand would tell the world it’s OK tocopy American products—both hereand abroad. This issue is not one ofallowing customers to repair theircars, they already have that right. Theissue is, can foreign manufacturersfreely copy America’s creations?

“The timing for this bill couldn’tbe worse. An International Trade Ad-ministration report entitled “U.S. Au-tomotive Parts Industry AnnualAssessment 2009” outlines the prob-lems facing the domestic auto parts in-dustry and shows increasing importsof aftermarket parts from foreigncountries (Attachment 1, not repro-duced here–Ed). The Bureau of LaborStatistics (BLS), U.S. Department ofLabor, reported that the automotiveparts industry lost more than 300,000US jobs since 2000 (id at p. 35).

Some background about the in-surance industry will illuminatewhat’s really spurring foreign partscopiers and unscrupulous insurancecompanies. Ford provides insurancecompanies with its genuine Ford re-placement part pricing for every new

Ford vehicle. Insurance companiesuse genuine Ford part prices to settheir insurance rates. After state regu-lators approve these rates, insurancecompanies then refuse to pay for gen-uine Ford parts and steer body shopsto use cheap copycat parts. Most in-surance companies don’t tell driversthat they aren’t getting genuine Fordparts unless they are required to do soby state law. Consumers rarely knowthey’re getting copycat parts. Whatconsumer prefers a copycat part over agenuine Ford part? This entire discus-sion about consumer choice and right-to-repair is merely a distraction fromthe basic unethical business practiceof pricing insurance premiums usinggenuine Ford parts and then givingconsumers cheap foreign copies.

Foreign parts copiers also arguethe basic “unfairness” of giving carcompanies 14-year protection on re-placement parts. Let’s look at somebasic fairness issues: Proponents wantto retroactively reduce the period ofdesign protection for car parts from 14years to zero. However, Congress re-cently retroactively extended copy-right protection for Hollywoodmovies to 120 years. If this bill be-


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“Proponents will tell you ‘a hood is a hood is ahood’... A hood is not a hood. If they were, whywould foreign manufacturers be making exact

copies rather than generic parts?”—Ford’s Porcari

Non-Original Equipment Aftermarket Label

comes law, a real car would have noprotection against copies, but a car-toon car would be protected for 120years. Somehow all of these “fair use”and “consumer choice” argumentsdon’t apply to saving American fami-lies money when it comes to movies.Foreign parts copiers also suggest thatFord should be able to protect the en-tire vehicle, but not individual com-ponents. Ford protects what’s copied.No one is making copy cars. EvenChinese car companies that were ac-cused of copying didn’t copy every-thing. They copied the front of one carand the rear of another. The currentlaw allows car companies to protectindividual parts and prevents this be-havior. This bill doesn’t addresspatentable subject matter under 35USC 171, but instead focuses on whatis an infringement. It will add confu-sion to an already unclear area of law.If Ford sells a vehicle havingGoodyear tires, are Goodyear’spatents now unenforceable? Can for-eign companies freely make specialtyequipment parts such as those on aSaleen Mustang™? If a customer re-sells an automobile with specialtywheels, are those specialty wheel

patents now unenforceable? If Fordsells a vehicle with specialty partssuch as a Ford Expedition Funk Mas-ter Flex™, are those patents also un-enforceable?

Proponents for this bill will tellyou “a hood is a hood is a hood” andthat the aftermarket is required to copyFord parts by state insurance law.

First, a hood is not a hood. If theywere, why would foreign manufactur-ers be making exact copies rather thangeneric parts that fit Ford cars? Dif-ferent hoods create a different visualimpression and result in different salesfor that vehicle. We sell different mod-els of the same cars with differenthoods, grilles, and lights to create adifferent visual impression and to gar-ner more sales.

Second, state insurance lawsdon’t trump federal intellectual prop-erty laws. We don’t allow states to cre-ate unique forms of intellectualproperty. And we don’t allow states toinvalidate federal intellectual propertyprotection or mandate patent infringe-ment.

Foreign parts copiers say that carcompanies are unwilling to compete.Not only do car companies vigorously

compete with each other for each andevery sale, we also compete with sal-vage and specialty equipment makerson component parts. Beyond that,each of the Detroit 3 have existingrestoration part licensing programswhere we license our designs, know-how, and brands to responsible com-panies that make high-quality parts.Ford has no objection to generic orspecialty repair parts. Consumers arefamiliar with this concept and knowwhat they’re getting when they buygeneric razors or cereal. Genericitems don’t look like the genuine arti-cle.

Ford broke new ground and li-censed LKQ to make and sell copycatparts. We did this primarily to end aseries of very expensive lawsuits andto gain recognition that automobileparts were patentable. We also re-quired LKQ to clearly label copycatparts as “Non-Original Equipment Af-termarket”. Attachment 2 is a samplelabel that is affixed to every copycatpart to clearly distinguish them fromgenuine Ford parts. We also collect afee for the use of our patents that wereinvest in new vehicle designs. Thissettlement gives Ford customers up to

five options when repairing their ve-hicle. They can buy:

1. a new genuine Ford part2. a salvaged genuine Ford part3. an approved restoration part

made to Ford specifications (for oldervehicles)

4. a generic or specialty equip-ment part that is not a copy (e.g.,SEMA™)

5. an LKQ copycat part not madeto Ford specifications

This bill won’t give consumersmore choices. They have five already.This bill would merely eliminate com-pensation to the original American de-signer and spur more foreign copying.

“In conclusion, we believeretroactively targeting one group of in-tellectual property rights for unequalprotection would be a dangerousprecedent. And it would be particularlyso, should it come from the Committeewith the role to ensure that these rightsare protected. We thank the Congressfor taking on the difficult issue of de-sign protection. We encourage it totackle this issue in-depth and see howintellectual property laws can be usedto level the playing field with foreigncompanies making copycat parts.


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ABRAAuto Body & Glass Announces New Vice President and Chief Financial OfficerABRA Auto Body & Glass, a Min-nesota-based damaged vehicle repaircompany and industry leader, an-nounced the appointment of Louis C.Berezovsky as Executive Vice Presi-dent and Chief Financial Officer re-porting directly to Duane A. Rouse,Chief Executive Officer.

“Louis’experience in high-growthcompanies and his leadership style willbe an excellent fit with our growthplans and the ABRA culture,” saidRouse. “His extensive background in fi-nance and acquisitions aligns well with

our national expansion plans and ourmission to becoming the leading autobody and glass company in America.”

Berezovsky’s experience includesover 20 years in finance and accountingalong with 14 years of working in pri-vate equity environments and the com-pletion of more than 50 acquisitions.

“I am thrilled to be joining an in-dustry leader. This is a tremendous op-portunity and I look forward touncovering a new range of possibilitiesfor accelerating ABRA’s growth in themonths and years ahead.”

Berezovsky received his B.S. inAccounting from the Carlson School ofManagement at the University of Min-nesota and is a Certified ManagementAccountant (CMA).

ABRAAuto Body & Glass is ded-icated to repairing damaged vehiclesright the first time…on time while pro-viding an exceptional customer experi-ence. The company is committed tobecoming greener and environmentallyfriendly and participates in neighbor-hood activities and local events whichcontinually enhance the community.

Louisiana state police arrested four peo-ple on January 24 for allegedly stagingtraffic accidents in Ouachita Parish, LA,according toClaims Journal. Detectivestold the MonroeNews-Star that they in-vestigated six of 20 crashes where indi-viduals filed false bodily injuryclaims.State troopers said the insurancecompanies in two of the six crashes paidout more than $18,000 to the suspects.Seven warrants were signed January 23and arrests were made January 24. Statetroopers also said they are still lookingfor three suspects.

LA Police Crack Staged Crash Ring


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Guardian Auto Glass Continues Expansion into Colorado Springs AreaGuardian Auto Glass, LLC announcedin February that it is expanding its oper-ations into Colorado Springs, Coloradoand has named Mark Campos to over-see that growth. The group’s newest fa-cility will be located on Central ParkDrive in Colorado Springs.

Guardian Auto Glass providesglass repair and replacement servicesfor automobiles, buses, trucks and recre-ational vehicles and now has more than50 locations throughout the UnitedStates.

Campos has more than 10 years of

auto glass retail experience and will bean equity owner and manager in the newGuardian Auto Glass location.

“We are excited to begin opera-tions in Colorado Springs with a greatteam headed by Mark Campos,” saidJerry Ray, vice president and manag-ing partner of Guardian Auto Glass.“Mark will lead our sales effort andRodney Schroth will provide operationsmanagement,” continued Ray.

Schroth is currently an equity part-ner and manager in the company’s Den-ver operations.

Guardian Auto Glass LLC wasformed in 2010 between Guardian GlassCompany, a wholly owned subsidiary ofGuardian Industries Corp., and LRSTLLC to manage and grow the retail autoglass business of Guardian.

Guardian Auto Glass LLC is seek-ing owners, qualified sales professionalsand operations managers who seek own-ership and/or employment opportunitiesin their markets, throughout the US.

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China Auto Parts and Service Show2012, Auto Parts China co-sponsoredby major organizers of the Beijingand Shanghai auto shows, will beheld at Shanghai New InternationalExpo Centre (SNIEC) in Shanghai,from June 12th to 15th, 2012. The ex-hibition will take place in SNIEC'snew 70,000-square meter N-seriespavilion equipped with the most com-prehensive modern facilities. Theevent is expected to attract over 2,000exhibitors from the auto parts, tech-nical equipment, repair and mainte-nance and accessories sectors. Morethan 30,000 industry professionalsfrom the domestic and foreign com-plete-vehicle OEM sector, auto 4Sshops, auto repair, maintenance andrefitting shops in the Chinese aftermarket as well as wholesalers, agentsand distributors of auto parts are ex-pected to attend. The show aims toleverage the unique position ofShanghai as China's trade hub andone of the world's key trade ports,creating a market-driven internationaland comprehensive exhibition plat-form, which provides players in theChinese auto parts and related indus-tries with access to the country's do-mestic brands, industry chain-wideservices, technologies and trade.

China Auto Parts and ServiceShow to be Held June 2012

The Society of Collision Repair Spe-cialists (SCRS) is offering collisionrepairers its 2012 First Quarter Digi-tal E-Catalog.

It includes information regard-ing SCRS member benefits and in-formation about some of the servicesrepairers can access at a discount asa member of SCRS.

“It is our hope that you will findthis material to be valuable and rele-vant by providing you with informa-tion on products and servicesavailable to SCRS members, fromcompanies whose support throughoutthe year enables SCRS to representyou on a variety of issues,” saidAaron Schulenburg, SCRS execu-tive director.

“If you are a repair facility, weencourage you to share this with yourfriends and colleagues; if you arewith an association, please pass italong to your membership.”

Repairers can access the direc-tory at http://www.zmags.com.

SCRS Offers Repairers DigitalMember Services E-catalog



GM is Back on Top As theWorld Number OneGeneral Motors said it is once againthe world’s largest automaker withglobal sales of 9.03 million vehiclesfor a record $7.6 billion in 2011. That’s11% higher than Volkswagen. In 2011,Volkswagen took second place withrecord global sales of 8.16 million, up14 percent from the year before. But, itseems GM included sales by affiliatesand VW did not. Toyota finishedfourth in 2011 with 7.9 million vehi-cles sold. Toyota said in December thatit plans to sell 8.48 million vehicles in2012.

Chrysler Reports First FullYear Profit Since CrisisChrysler Group LLC reported a net profitof $183 million for 2011, swinging backinto the black from a loss of $652 millionin 2010. Higher sales of Jeeps and othernew vehicles propelled Chrysler to itsfirst annual net income since 1997, cap-ping a pivotal turnaround that manythought would never happen. Chrysler’sU.S. sales increase of 44 percent lastmonth surpassed eight analysts’ averageestimate for a 32 percent sales gain. Thecompany’s free cash flow was $1.9 bil-lion last year, and has forecast a $1 bil-lion free cash flow for 2012.

Chrysler Recalls Police CarsChrysler Group LLC recalled nearly10,000 Dodge Charger police vehiclesbuilt last year due to overheating issuesthat may lead to headlamp and brake fail-ure. The recall affects 9,688 Chargers forthe 2011 and 2012 model years. Theproblems could lead to a loss of visibilityor braking ability, increasing the risk of acrash, according to a NHTSA posting. Insome police cars, the low beam headlightsmay fail because of an overheated bulbharness connector. In other vehicles, theantilock brake and electronic stability sys-tem may stop working due to an over-heated power distribution center.

RM Auctions were among six majorclassic and collector car auctions inArizona in January. Like the rest of thecar industry, collector cars are comingback. RM Auctions held its 2012 saleJanuary 19-20 at the Arizona BiltmoreResort in Phoenix, resulting in $25.6million in sales and a 90% sell-throughrate. Their top seller was a 1957 Ferrari410 Superamerica Scaglietti Coupe atover $1.8 million. Also a 1973 Ferrari365 GTB/4 Daytona Spyder for$990,000, and a 1959 BMW 507 Road-ster for $990,000.

For years, Toyota, Ford, and Hondahave been the top names in ConsumerReports’ annual Car-Brand PerceptionSurvey. They are still at the top, but theyhave seen double-digit drops in theirscores. That has narrowed the gap be-tween the top names and other brands.Only two points behind Honda this yearwas Chevrolet, followed by Mercedes-Benz, BMW, Volvo, Cadillac, Lexusand newcomer Tesla. “Dramatic eventsin the automotive industry seem to beaffecting how consumers view autobrands,” said deputy editor Jeff Bartlett.

Kelley Blue Book announced Feb. 14that president Paul Johnson has resignedfrom his position effective immediately.Taking on the role as president for KBBwill be AutoTrader.com vice presidentJared Rowe. Rowe is currently vice pres-ident of product management for Auto-Trader.com in Atlanta, Ga. Rowe’s newrole is effective immediately. KelleyBlue Book was acquired by Auto-Trader.com in October 2010. Rowe alsoheld positions at Autobytel in businessdevelopment and at Central AtlanticToyota Distributors as a service and partsmanager.

DuPont has launched the process to sellits automotive paint unit, according tothe Reuters news agency. DuPont is ac-cepting bids for its automotive paint di-vision. The report listed several privateequity firms as being interested. It alsoclaimed that Credit Suisse Group, serv-ing as advisers, distributed informationmaterial among possible suitors. Thebusiness unit could garner more than $4billion. It was reported in October thatDuPont had thought about such a sale,but the latest is that the company hasstarted taking bids. DuPont said it doesnot comment on rumors or speculation.

Phoenix Auctions ShowCollector Cars’ Comeback

Consumer Reports SaysBrand Perception Narrows

DuPont Paint Unit BiddingKBB Gets New PresidentNHTSA says 36,608 2012 Nissan Ver-sas failed to comply with the require-ments of federal motor vehicle safetystandard No. 114 titled “Theft Protec-tion.” NHTSA discovered that due to in-terference between the shifter rod andthe shift knob, the vehicles may beshifted out of the park position withoutdepressing the brake pedal. The agencyfears the operator can inadvertently shiftthe vehicle into gear without the brakepedal being depressed, increasing therisk of a crash or injury to a nearbypedestrian. Nissan told NHTSA it plansto begin notifying owners.

Nissan Recalls 2012 Versa


I was out at Barrett-Jacksonin Phoenix last month witha good buddy of mine, AlanTaylor, from EntertainmentRadio. I wrote about Alanin last month’s column (au-tobodynews.com/colum-nists/rich-evans.html incase you missed it) but thatwas about SEMA 2011. InPhoenix at the Barrett-Jack-son auctions Alan put together some-thing called AWorld of DIY (as in ‘Doit Yourself’).

Alan reached out to me and askedme to come there and show off sometools and demonstrate building a car. Isaid ‘yes’without hesitation, “I’ll packup some tools and drive out there andsee what you guys have put together.”

He told me “we’ve got a12,000 square-foot DIYpavilion” inside a tent andwe’re going to have aproject car there. It does-n’t matter to me what carI’m working on becauseregardless I’m going to tryto do something cool withit. When I found out it wasan 1972 El Camino I sug-

gested a toned-down concept. Some-thing clean, more modern. You know,simplify the car and give it that oldschool look, a couple of rally stripesand choose a great color, add somerims, and we’ve got a car that bringsback that 70s feel and some muscle.

I put a concept together, sent itoff to Alan, and he’s got feedback

right away. “Dude, can you put thisblue color on?”, including a paintphoto. We collaborated on a conceptand a design. I like working this waybecause when I get there everybody’snot going to ask me whatI’m building (becausethey’ll already have seen theconcept.) I don’t like havingto sound like a brokenrecord answering the samequestion over and over andover.

So for the week outthere at Barrett-Jacksonwe’ve got participation fromCraftsman, Chevrolet in thetent with us, we’ve got E-bay Motorswith the modJOBS 2012 Mustang wedid last month and I’ve got my Solu-tion Finish. So this is a good chancefor me to get out there, build a car,show off some new tools, some newproducts and connect with the public

and the garage builders. I didn’t knowwhat to expect for a tool supply forDIY builders so I brought as much asI could cram in my truck and decide tofigure it out from there. When we get

there and see the El Camino I’m think-ing in my head, you know I’ve builtcars on TV in 72 hours in front of mil-lions of people, that’s already beendone (Car Warriors). This event willbe live, which is cool but I tell Alan “Iwant to shoot from the hip and see if I

Barrett-Jackson DIY Event Draws Fans and Future Body Techs

Custom Cornerwith Rich Evans

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

Poster


can connect a little bit more with theend user and the garage builders byhaving the public work on the car.”

3M gave us some products whichis great because here’s a chance to putproduct in people’s hands who haven’tused it before. Craftsman’s also gottheir tools and equipment there. I’mthinking “what’s better?: someonewatching me use their tools or puttingtheir tools in a potential consumer’shands?” It just makes it that much morereal. A lot of people will never knowthey can or can’t do it if they don’t try.So I’m going to bring some process outhere and guide people through takingthe car apart, stripping the car down,modifying it, pulling dents, even weld-ing for beginners. I’ve got 8-year-oldgirls and boys that came up, got theirhands on a welder for the first time. Ofcourse I gave them safety equipment—which is also a great learning opportu-nity for them—and helped them do thejob. So they walked in the tent notknowing they were going to weld orpull a dent and they walk out knowingsomething about how to weld and pulla dent. The look on their faces was‘how cool is that’?

It really took me back to when Iwas young and somebody introducedsomething new to me. Exposure tonew processes is so important in ourbusiness. There are all kinds of waysto build a car and hundreds of differ-ent processes, but to learn from expe-rienced builders the process ofgrinding and feathering and strippingthe car down manually is invaluablefor someone who’s new to everything.Not just newbies but also connectingwith the garage builders. The messageto them: If you don’t have it, use whatyou have because you don’t have tohave all that expensive equipment tobuild a car.

Back to the event: The news cov-erage was over 45 minutes broadcast,with 10 minutes on Channel 3 live,and then they did a 6 minute piece atnight and then we did Channel 12, 5,CNN. If you search ‘Barrett-JacksonDIY Rich Evans’ on Youtube, you canwatch a 2-minute piece that they puttogether. If you go to DIYlive.tv,we’ve got many segments on there. Ifyou click through that site you can seeall the people that participated. Crafts-man, GM, 3M, Solution Finish, wehad new types of nail guns available,we had a panel bonding product outthere from 3M, different types ofsandpaper, Bondo™, the dynamicmixing system, all sorts of products.

We had a group of Wyotech guysout there. WyoTech provides studentswith repair training in automotivetechnology, autobody, diesel, HVAC,chassis fabrication and high perform-ance engines, street rod and custombuilds. John and his crew—therewere about five people from Wyotechthere—were all heavily involved withthe project.

Equipment was a factor. We onlyhad one air hose and one welder so wecould only go so fast, which was ac-tually good. We could control and

make sure everybody’s getting taughtand stay safe. The whole concept ofDIY at the show was a hit. I heardBarrett-Jackson’s head count throughthe door was 27% more than anyother year. So they set records.

The news coverage and the bighype about ‘hey come on out, get yourhands dirty, help build this car.’ Thecar really was being built by the pub-lic and everybody there was invited toget involved. Everybody who came bytouched or fixed a dent or welded ahole, or pulled a part off or sanded onit. They’re part of this build. It wasgreat to see them all building the car,not just me.

These photos tell the story too butto best appreciate this whole idea thatAlan made happen, you have to govisit DIYlive.tv to see video of every-one that was involved with this build.It was so successful we’re going to bedoing more of these. I’ll let you guysknow more about it, or just follow uson DIYlive.tv.

You can also go to richevansde-signs.com or huntingtonbeachbody-works.com.Also, go to solutionfinish.comor watch our video onYoutube by search-ing ‘Solution Finish Rich Evans.’

The types of projects I’m doingthis year are really connecting with theend-users and trying to bring myworld to their world. It’s just so re-warding to see an 85-year-old woman

pulling dents, or an older dentistjumping in and working on the car.Also, they’re able to go home and takethe techniques and steps that I taughtthem and actually be able to work ontheir own car. So with all that said, an-other great project, you’re going tohear more about it, we’re going tocontinue to tour this car to the nexttwo or three Barrett-Jackson shows. Idon’t have details on those yet butwe’ll definitely be in Orange Countyand Las Vegas. So if you guys get achance stop into the DIY PavilionCraftsman Experience and check usout on the road.

We’re going to be taking thiscar—stripping it down, cutting theroof off of it, painting it, cutting rustoff of it, dropping an LS9 motor in itthat Chevy has donated (the LS9 cratemotor costs about the same as a base2010 Ford Mustang) and Steel Rubberdonated the rubbers for the car. 3M do-nated the product for the car. Crafts-man provided the tools for the vehicle.We’ve got Woodward Fabricationteaming up with us along with a wholeother list of sponsors and equipment soit’s going to allow us to really travelaround and let people get involved andconnect with more garage builders. SoI’m really pumped up about this. I’mworking on a new TV show so staytuned. Go to Rich Evans Designs’Facebook page, and like it, that wayyou can keep up with everything I’mdoing. I went to the Grand NationalRoadsters Show, I did the NHRA, andI’m heading up to the Autorama inSacramento, which I haven’t been tosince I was 6 years old. I had sometime in Sacramento and last year whenI did CarWarriors I connected with ashop called Gearhead Garage. Theyactually beat us Allstars on theCorvette builds and I’m going to go upand visit them. They’ll have theCorvettes we did on the show there.That’s my old stomping grounds andI’m going to have a blast.

2012 is going to be a great year.I’m going to be traveling, buildingcars on the road, doing all kinds ofcool stuff. I never know what’s aroundthe corner for me. I’ll keep you guysposted on the DIY experience. Go toDIYlive.tv to learn more about it. Alsosearch ‘Barrett-Jackson DIY RichEvans’ on Youtube and watch that twominute clip. I think you guys will bestoked to see that. You can also see allthe news coverage on DIYlive.tv.Keep wrenching. Keep building. I’llsee you guys next month.

The Crew from Wyotech


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Insurance Auto Auctions to Sell Salvaged VehiclesDirectly to China, Could Impact U.S. SupplyInsurance Auto Auctions (IAA), awholly owned subsidiary of KARAuction Services, announced anagreement with Chen Jia, which willimport U.S. salvage vehicles to Chinafor recycling. This is expected to im-pact the number of salvage vehiclesavailable to U.S. rebuilders and re-pairers. Chen Jia is a wholly ownedsubsidiary of Jiangsu Chenlong Re-source Recycling Development Co.Ltd. in Zhangjiagang, Jiangsu, China.Chenlong Recycling is one of thefirst companies to obtain one of onlya few recycling permits from the Chi-nese government, IAA said.

“This agreement helps usachieve our growth strategy by ex-panding our global buyer base in a re-gion with a fast-growing need forscrap metal,” said Tom O’Brien chiefexecutive officer at Insurance AutoAuctions, Inc. “We are pleased thatour long relationship with Chen Jiahas added tangible value for vehiclesellers at our auctions. Their initialpurchases at our locations along theWest Coast have already created in-creased competition for vehicles andmay eventually expand throughoutthe greater United States.”

In 2008, when IAA first metwith Chenlong Recycling in China,plans were drawn for them to build amulti- million dollar recycling centerin Zhangjiagang. Today, the recentlycompleted facility is capable of pro-cessing hundreds of thousands oftons of scrap iron. They are the firstin China to complete the installationof a shredder built specifically for theprocessing of scrap steel that includesautomobiles coming from the UnitedStates and other countries. Throughthis new agreement, IAA has the abil-ity to be a major salvage provider tothis operation - specifically, lower-end vehicles for the purpose of recy-cling.

“There are several reasons whywe chose IAA, including their 30years of expertise in the salvage auc-tion business and their global out-look,” said Gu Long Sheng, Presidentof Jiangsu Chenlong Resource Recy-cling Development Co. Ltd. “Themanagement team at IAA has beendedicated to seeing scrap vehicleslegally enter the China market andtheir support of our efforts has beenboth encouraging and instrumental inhelping us shape our business modelin the U.S. Second, IAA is clearly amarket leader and our relationshipwith them will help ensure our abilityto source the salvage vehicles weneed to meet our production de-mands.”

One of the best results of recy-cling metal from salvage vehicles is

that it saves energy, conserves natu-ral resources, and enables steel pro-duction with low pollution levels.According to the Institute of ScrapRecycling Industries, recycling onecar conserves 2,500 lbs. of iron ore,1400 lbs. of coal and 120 lbs. oflimestone. Until recently, Chinesegovernment laws prohibited the im-port of salvage vehicles from theUnited States into mainland China.Today, this recycling project is sup-ported in China by the environmentalprotection body of the Chinese gov-ernment.

For the past 30 years, InsuranceAuto Auctions has continued to de-velop and cultivate a mature andglobal customer buyer base in morethan 100 countries. Its buyers includeautomotive body shops, rebuilders,used car dealers, automotive whole-salers, exporters, dismantlers, recy-clers, brokers, and where allowed,non-licensed (public) buyers.

IAA buyers have access to sixlanguages through IAA's AuctionCenter including: English, MandarinChinese, Spanish, French, Polish andRussian. In addition, the IAA BuyerServices group is fluent in 10 lan-guages to assist global buyers. An es-timated 30 percent of IAA’s vehiclesare sold and exported to foreigncountries, which further strengthensits philosophy of choice and flexibil-ity with “anywhere” access and mo-bile technology.

IAA’s business model includesin-person and online auctions. IAAoffers clients access to a comprehen-sive salvage auto auction network,and allow them to purchase in a man-ner that best suits their needs. IAAaims to offer end-to-end solutionsand standardized quality assurancepractices at its nearly 160 locations.IAA experts are on hand at eachbranch location to assist buyers andsellers.

IAA follows strict regulatorycompliance at the federal and statelevels and is well versed in all statetitling laws as well as buyer andseller licensing.

For more information visit:www.iaai.com.

NABC Plans At Least One Vehicle Gift in Each State This YearThe National Auto Body Council’s(NABC) Recycled Rides® program,now in its sixth year, set a goal to giftat least one vehicle in every state in thecountry in 2012.

NABC member collision repairfacilities nationwide have providedhundreds of families and service or-ganizations with the gift of reliabletransportation. “So many of us take ourtransportation for granted,” notedNABC Executive Director Chuck Sul-kala, “but the fact of the matter is, re-liable transportation is more importantthan ever in these tough economictimes. A dependable vehicle literallycan provide a family a new lease onlife.”

In an effort to build upon Recy-cled Rides’ growth, the NABC isslightly refining its marketing ap-proach. “This year, along with work-ing directly through shops, we arereaching out to individual charities tohelp them meet their missions,” saidincoming Recycled Rides Chair JimOcampo of DuPont PerformanceCoatings. “You could say that we’reworking the program in reverse.”

Indicative of this new approach isthe fact that Donna Miller has joinedthe NABC’s Recycled Rides commit-

tee as the liaison between NABC andFamily Promise, a charitable organiza-tion with 172 affiliates across the U.S.that is committed to help homeless andlow-income families achieve sustain-able independence.

The year began auspiciously onJanuary 11, 2012 during the NationalAuto Body Council’s fundraising golftournament held in Palm Springs,Calif. Thanks to Pacific Collision andHertz Rent-A-Car, and workingthrough Variety Children’s Charity, Re-cycled Rides donated a 1999 FordFreestyle crossover wagon repaired atthe end of 2011.

“Participating in the RecycledRides program this year was a great ex-perience for our entire team,” saidSteveVetel, owner of Pacific CollisionCenters. “Having the ability to help afamily in need gave everyone in our or-ganization a great sense of pride andaccomplishment. We look forward toparticipating in future gifting events.”

The first Recycled Rides vehiclerepaired in 2012 has been donated byGEICO Insurance and has landed atCaliber Collision Centers in RoundRock, Texas. It is being refurbished forthe Temple, Texas Family Promise af-filiate.


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M-F 7:30am - 6pm;Sat 8am - 5pm

www.cityvolkswagen.com

Volkswagen ofDowntown LA

LOS ANGELES

221133--774477--77224466FAX: 213-222-1272

Ask for Carlos or Erasmo

No. California

Dirito Bros. WalnutCreek Volkswagen

WALNUT CREEK

11--880000--VVOOLLKKSSWWAAGGEENNFAX: 925-934-0786

[email protected]

TimmonsVolkswagenLONG BEACH

11--888888--448899--55000011FAX: 562-426-3550

[email protected]

Drew VWSAN DIEGO

888888--883399--00777777DIRECT: 619-668-7782

FAX: [email protected]

U.S. Auto Industry Bullishon 2012, Sales up 11%2012 is off to a good start for the U.S.auto industry as reported sales for Jan-uary outpaced the best industry fore-casts. Sales overall were up 11% at anannualized rate of 14.2 million units,the best since August 2009. ChryslerGroup was up 44% and Ford Motor up7.3%. GM sold the most units but salesdeclined 6%. VW Group was up 40%.The disasters in Japan seem to be di-gested with Mazda up 68%, Toyota up7.5%, Honda up 9.3% and Nissan up10%. Hyundai-Kia is up 20%.

Chevy Volt Sees StalledMomentum, Also OptimismThe Chevy Volt hasn’t quite caught onas expected by many. Although GMhas plans and could produce as manyas 60,000 Volts in 2012, GM will ad-just production at the Hamtramck plantin Detroit to meet demand. Of theplanned 60,000, about 75% or 45,000are for the U.S. and the rest for Europe,built as the Opel Ampera, and China.GM has said they still don’t have aclear sense of how much demand thereis for battery-electric vehicles. the gov-ernment closed its investigation ofpost-crash fires in Chevrolet Volt bat-teries after further testing proved thechanges General Motors has imple-mented better protect the batteries.GM announced in early January that itwould retrofit 14,735 Volts alreadybuilt and make permanent changes onthe Volt assembly line at the Detroit-Hamtramck plant.

In January GM boss, Dan Acker-son, faced Congress to defend the carand calm safety concerns. He alsofirmly stated that the car was engi-neered with plenty of technology andsafety but was “not engineered to be apolitical punching bag.”

GM is running full page newspa-per ads and TV spots in a reputation-rebuilding effort for the Chevy Volt.

California Law DemandsMore Low Emission VehiclesThe California Air Resources Board(CARB) called for a steep ramping up ofzero- or very low-emission vehicles soldin state from 2018 onward. The goal is forthem to comprise 15.4 percent of all ve-hicles sold by 2025, up from less than 1percent today. The ruling called for aslashing of tailpipe emissions from therest of the passenger vehicle populationbeginning sooner in 2015 and extendingthrough 2025. At least one of every sevenvehicles sold will be a plug-in hybrid, ex-tended-range electric vehicle or pure bat-tery-electric vehicle, or BEV.

MOPAR, Chrysler’s parts division, cel-ebrated it’s 75th anniversary at theirPerformance and Accessory Lab inCenter Line, MI with famous dragracer, “Big Daddy” Don Garlits blow-ing out the candles on the cake.MOPAR’s first branding was on an-tifreeze in 1937. Inspiring a great dealof loyalty, there are more than 400MOPAR clubs worldwide. Four newspecial edition Mopar vehicles were un-veiled, including the Chrysler 300, Fiat500, Jeep Compass and even the 2013Dodge Dart, not in showrooms yet.

The Jeep Liberty SUV is getting greaterscrutiny from Federal safety regulatorsafter 50 people reported they were hurtwhen the air bags inflated without in-volvement in a crash. The NHTSAstarted investigating Liberty SUVsfrom the 2002 and 2003 model years inSeptember. There have now been 87complaints, with 50 of them resulting ininjury. Chrysler hasn't been able to naildown a single cause of, or even a singleprotocol for the problem; the airbagshave deployed on startup and when thecar is running.

Honda is recalling certain 2011–2012Ridgeline vehicles for a discrepancy be-tween the spare tire and the informationon the vehicle’s tire information label.Honda Ridgeline trucks sold in theUnited States are fitted with a compactspare tire and, in some cases, placardsmay incorrectly indicate that the Ridge-line came with a full-sized spare tire.Honda will either provide Ridgelineowners with a spare that will match theinformation provided on the vehicle’splacard or it will install a new placardthat reflects the spare tire installed by thefactory. Tire pressure may not be correct.

Federal safety regulators are investigat-ing fires in the driver’s side doors ofChevy TrailBlazers, the second suchprobe within a week. The latest inquiryinvolves more than 309,000 TrailBlazerSUVs from the 2006 and 2007 modelyears. The fires began in the power win-dow switch or related electrical parts, theNHTSA said. U.S. safety regulators hadopened aninvestigation into consumercomplaints of driver’s side door fires in2007 model year Toyota Camry sedansand RAV4 crossover SUVs.

MOPAR Celebrates 75thAnniversay, 4 New Models

Feds Escalate Jeep AirbagInvestigation

Second Toyota Driver’sDoor Fire Probe Launched

Honda’s Ridgeline Recall

alone. Anti-corrosion compound, ap-plied as a mist coat using a wand in-serted through access holes or fromthe end of a rail, is designed to protectenclosed areas from corrosion (seeFigure 1).

The proper application techniqueshould treat the backsides of the welds.Excess material should creep into theflange areas, sealing off those areas frommoisture. At least one vehicle maker,Chrysler LLC, recommends a doubleapplication of anti-corrosion compound(see Video at www.i-car.com).

Visit i-car.com to view the refer-enced video where Chrysler CollisionRepair Manager Doug Craig explainsthat Chrysler recommends applyingtwo coats of anti-corrosion compound.

Do Not Use Self-Etching PrimerIt is still recommended to not use self-etching primer inside enclosed areas,because it doesn’t form a barrier likeepoxy primer and would eventually

break down. Self-etching primer mustbe coated with another product, and itwould be difficult to see inside an en-closed area whether or not the primeris completely coated by the anti-cor-rosion compound.

ConclusionThe recommendation to apply epoxyprimer followed by anti-corrosioncompound inside an enclosed area isnot included in the updated I-CARcourse, Corrosion Protection (CPS01).

When using this two-stepprocess, the surfaces must be cleanedfor the primer to properly adhere. Themore general recommendation is ap-plying anti-corrosion compound alone.

The instructor-led (live) I-CARcourse, Corrosion Protection (CPS01),has been refreshed. It includes updatedmanufacturer recommendations, aswell as an updated presentation. Watchfor this course in your area. For coursedetails and to register, visit the I-CARwebsite.

For comments or suggestions onthe Advantage Online, please contactI-CAR at [email protected].


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