hammer & dolly september 2014
DESCRIPTION
Official Publication of the Washington Metropolitan Auto Body Association (WMABA)TRANSCRIPT
www.grecopublishing.com
RICO Suit Plaintiff Rejects Joining Antitrust Actions - page 28
www.wmaba.com
September 2014Volume 8, No. 9$5.95
ALSO THIS ISSUECIC's New Leadership A Closer Look at SEMA SCRS Hits Detroit
3September 2014
Cover Photo ©thinkstockphoto.com/Jupiterimages
THIS PAGE, CLOCKWISE FROM TOP:
©thinkstockphoto.com/Jupiterimages
©thinkstockphoto.com/JGI
Photo courtesy of www.semashow.com
©thinkstockphoto.com/shutter_m
©thinkstockphoto.com/Darko Novakovic
DEPARTMENTS6 Calendar of Events
10 Editor’s MessageJOEL GAUSTEN
12 President’s MessageDON BEAVER
44 WMABA Board ofDirectors
48 Publisher’s MessageTHOMAS GRECO
50 Advertisers Index
38
CONTENTS September 2014
34Our resident experts get to the heart of the turmoil behind the repairer-insurer dynamic.BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
TECHNICAL FEATUREWHO IS MORE AT FAULT FOR IMPROPERREPAIRS: REPAIRERS OR INSURERS?
5September 2014
COVER STORYBEHIND THE CURTAIN: INSIDE STORIES FROM WMABAMEMBER SHOPS
20NEWS
CIC ANNOUNCES NEW CHAIR, REVISES MISSION & VISION STATEMENTS A leading MSO owner will soon take the reins at the Collision Industry Conference.
US OFFICIALS VISIT CIC TO WARN AGAINST COUNTERFEIT AIRBAGSA major threat to safety is explored in Detroit.
RENTAL CONCERNS, MEDIA OUTREACH DRIVE SCRS AGENDAThe national association continues its work on behalf of the industry.
RICO SUIT PLAINTIFF REJECTS JOINING ANTITRUST ACTIONSThe Crawford's team goes it alone.
ABC NEWS SPOTLIGHTS DRP CONTROVERSYA common industry problem gains major mainstream attention.
22
CONTENTS September 2014
Four different shops, four intriguing looks at the past, present and future.
24
30Shops from around the world prepare for a return trip toLas Vegas. BY JOEL GAUSTEN
NATIONAL FEATUREINSIDE SEMA 2014: A PREVIEW OF THEINDUSTRY'S LARGEST EVENT
16Exploring the ins and outs of surviving - and thriving - online as a small business. BY WHITNEY CLEAVER SMITH
LEGAL PERSPECTIVETHE PROS AND CONS OF AN ACTIVESOCIAL MEDIA PRESENCE
28
28
September 23, 2014CORROSION PROTECTIONManheim (Harrisonburg) Auto Auction, Harrisonburg, VAWHEEL ALIGNMENT & DIAGNOSTIC ANGLESKeystone Linthicum, Linthicum, MD
September 24, 2014COLOR THEORY, MIXING TONERS & TINTINGRefinish Solutions, Springfield, VA
September 25, 2014BLUEPRINTING PROCESS & DAMAGE DISCOVERYFrederick Co. Career & Tech, Frederick, MDSTEERING & SUSPENSION DAMAGE ANALYSIS Beamon & Johnson Automotive Paints, Virginia Beach, VA
September 29, 2014INSPECTING REPAIRS FOR QUALITY CONTROLVirginia Farm Bureau, Richmond, VA
September 30, 2014OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESSBeamon & Johnson Automotive Paints, Virginia Beach, VA
October 2, 2014FULL-FRAME PARTIAL REPLACEMENTR N R Auto Body, Hagerstown, MD
October 6, 2014ELECTRIC & ELECTRIC HYBRID VEHICLESVirginia Farm Bureau, Richmond, VA
October 9, 2014RACK & PINION & PARALLELOGRAM STEERING SYSTEMSFrederick Co. Career & Tech, Frederick, MD
www.i-car.com or(800) 422-7872 for info
October 14, 2014INSPECTING REPAIRS FOR QUALITY CONTROLManheim (Harrisonburg) Auto Auction, Harrisonburg, VA
October 16, 2014SUSPENSION SYSTEMSBeamon & Johnson Automotive Paints, Virginia Beach, VAALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENTFrederick Co. Career & Tech, Frederick, MD
October 23, 2014HAZARDOUS MATERIALS, PERSONAL SAFETY &REFINISH SAFETYFrederick Co. Career & Tech, Frederick, MD
October 28, 2014STATIONARY GLASSManheim (Harrisonburg) Auto Auction, Harrisonburg, VARACK & PINION & PARALLELOGRAM STEERING SYSTEMSBeamon & Johnson Automotive Paints, Virginia Beach, VA
October 30, 2014ALUMINUM-INTENSIVE VEHICLE REPAIRSBeamon & Johnson Automotive Paints, Virginia Beach, VA
CALENDAR OFEVENTS
September 2, 20142015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSECoxton’s Gold Team Collision Center, Yorktown, VA
September 4, 2014FULL-FRAME PARTIAL REPLACEMENTRefinish Solutions, Springfield, VA 2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSETimbrook Kia, Cumberland, MD
September 9, 2014VEHICLE TECHNOLOGY & TRENDS 2014Coxton’s Gold Team Collision Center, Yorktown, VASECTIONING OF STEEL UNITIZED STRUCTURESManheim (Harrisonburg) Auto Auction, Harrisonburg, VAADHESIVE BONDINGBeamon & Johnson Automotive Paints, Virginia Beach, VA
September 11, 2014SUSPENSION SYSTEMSFrederick Co. Career & Tech, Frederick, MDADHESIVE BONDINGCoxton’s Gold Team Collision, Yorktown, VA
September 16, 2014HAZARDOUS MATERIALS, PERSONAL SAFETY& REFINISH SAFETYBeamon & Johnson Automotive Paints, Virginia Beach, VA CORROSION PROTECTION Coxton’s Gold Team Collision Center, Yorktown, VA
September 18, 2014SQUEEZE-TYPE RESISTANCE SPOT WELDINGRefinish Solutions, Springfield, VADOCUMENTATION & DIGITAL PHOTOGRAPHYFrederick Co. Career & Tech, Frederick, MD
6 September 2014
Industry training opportunitiesand don't-miss events.
Top-Notch Educational Opportunities
Over 150 industry-leading exhibitors
Fun for the Whole Family, And More!
®
Save the Dates forNORTHEAST 2015!
March 20, 21, 22
www.aaspnjnortheast.com
7September 2014
8 September 2014
9September 2014
Rodney Bolton ([email protected]) 410-969-3100 ext. 250Mark Boudreau ([email protected]) 703-671-2402
Kevin Burt ([email protected]) 301-336-1140Bobby Wright ([email protected]) 434-767-4128
ADMINISTRATIONEXECUTIVE DIRECTORJordan Hendler ([email protected]) 804-789-9649WMABA CORPORATE OFFICEP.O. Box 3157 • Mechanicsville, VA 23116
STAFFPUBLISHER Thomas Greco
MANAGING EDITOR/ Alicia FigurelliDIRECTOR OF SALES [email protected]
EDITOR Joel [email protected]
ART DIRECTOR Lea [email protected]
OFFICE MANAGER Sofia [email protected]
PUBLISHED BY TGP, Inc.244 Chestnut St., Suite 202Nutley, NJ 07110973-667-6922 FAX 973-235-1963
Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily rep re sen ta tions of TGP Inc. orof the Washington Metropolitan Auto BodyAssociation (WMABA). Copyright © 2014Thomas Greco Publishing, Inc.
THE CURE FOR BOREDOM
In the nearly eight years I have beeninvolved in Hammer & Dolly, I have neverexperienced anything quite like 2014.
From the ongoing controversy overinsurer-mandated parts procurement to shopsacross the country racing to catch up with alu-minum repair training, members of this industryhave never been more active in responding tothe changes around them. As a result, we atHammer & Dolly rarely face a situation wherewe don’t have enough material to fill our pages.Simply put, if you think things are quiet thesedays, you are not paying attention to thewhirlwind.
As discussed many times in these pagesover the years, Hammer & Dolly serves toinform the WMABA community of importantindustry news and views regionally, nationallyand from around the globe. We strive to makesure that those members who are unable to bea part of events like the Collision IndustryConference (CIC), the quarterly SCRS OpenMeetings and the upcoming SEMA Show stillfeel like they have a front row seat to thesegatherings simply by reading our publication.This is especially true of this issue, whichspotlights all three of these events (pages 20,
Joel Gausten(973) 600-9288
MESSAGEEDITOR’S
10 September 2014
2014 WMABA OFFICERSPRESIDENT Don Beaver
[email protected] 443-539-4200 ext. 17061VICE PRESIDENT Torchy Chandler
[email protected] 410-309-2242TREASURER Mark Schaech Jr.
[email protected] 410-358-5155SECRETARY John Krauss
[email protected] 703-534-1818IMMEDIATE PAST PRESIDENT Barry Dorn
[email protected] 804-746-3928
BOARD OF DIRECTORS
22, 24 and 30) while also giving members of various shop sizes and experiences an oppor-tunity to share their stories with fellow repairers (“Behind the Curtain,” page 38). We feelthat this level of diverse content has helped Hammer & Dolly remain the top industry newssource for the MD, VA and DC collision repair industry.
As you begin the final months of this very busy year, please keep us in mind if youhave exciting news to share, encounter an issue in your day-to-day business, are trying outa new way to generate revenue or just want to share whatever is on your mind about yourprofession. We have no doubt that 2015 will be even more intense, and we want to remainyour go-to source as everything from the new F-150 to PartsTrader’s new dealer subscrip-tion charges start impacting your work in this field. We look forward to working with youduring what is sure to be an even busier time than the one we’re all having right now. Thisindustry is many things; boring isn’t one of them. H&D
©thin
ksto
ckph
oto.
com
/and
reus
K
11September 2014
number of someone you’ve met who is experiencing - or has already conquered - that same prob-lem you’re having any particular day. The same holds true with associations like WMABA: Themore you are involved, the more ears you have to bend. And the more people you can reach out towhen problems arise.
We are heading into the time of year where plans are being made for these upcoming events,both on a local level with WMABA and on a broader scale in the upcoming 2014 SEMA Show. I im-plore you to make the time to attend some of these outings. What you take away from theseevents will come back to you tenfold. I know they have for me.
Hope to see some of you soon. H&D
THE POWEROF PEOPLE
Over the many years I have been inthe industry, I’ve often stopped to thinkabout the people I have met, friends Ihave made and the network of contacts Ihave accumulated. At times, I wonderwhere it all came from, but having beenin dealership body shops for the last 15years (give or take), I have had thepleasure of being involved in some greatOE certified programs, performancegroups and training. What I’ve gainedfrom those kinds of meetings has beenimmeasurable. Not everyone in the in-dustry has access to these types ofcourses and gatherings, but what you dohave access to are associations andevents like the Collision Industry Confer-ence (CIC), the SEMA Show and NACE.I have never been to one of theseevents and not taken something awaythat either makes my shop run smoother,increases production or helps us be-come more profitable. The funny thing isthat a lot of what I take away from theseevents may not have come out of sittingin a class or seminar, but from having ameal and maybe a few cold ones withcolleagues who are in the trenchesevery day like me.
Life becomes so much easier whenyou have a problem and you can go toyour Rolodex to pull up a name and
MESSAGEPRESIDENT’S Don Beaver
(443) 539-4200 ext. [email protected]
12 September 2014
©thin
ksto
ckph
oto.
com
/scan
rail
13September 2014
14 September 2014
15September 2014
BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161Phone: 410-689-3038Fax: 410-766-1275www.bobbell.com
WALDORF FORD2440 CRAIN HWY, WALDORF, MD 20601Phone: 301-843-3028Fax: 301-843-0334e-mail: [email protected]
TED BRITT FORD11165 FAIRFAX BLVD, FAIRFAX, VA 22030Phone: 703-673-2420Fax: 703-870-7982www.tedbrittparts.com
PLAZA FORD1701 BEL AIR RD, BEL AIR, MD 21014Phone: 410-879-3367Fax: 410-877-7248www.plazaford.com
APPLE FORD8800 STANFORD BLVD, COLUMBIA, MD 21045Phone: 800-492-7999Fax: 410-312-0928www.appleford.com
ACADEMY FORD13401 BALTIMORE AVE, LAUREL, MD 20707Phone: 301-419-2700Fax: [email protected]
SHEEHY FORD5000 AUTH RD, MARLOW HEIGHTS, MD 20746Phone: 301-899-6300Fax: 301-702-3650www.sheehyford.com
HAGERSTOWN FORD1714 MASSEY BLVD,HAGERSTOWN, MD 21740Phone: 800-200-0276Fax: 301-733-0603www.hagerstownford.com
KOONS FORD OF ANNAPOLIS2540 RIVA ROADANNAPOLIS, MD 21401Phone: 410-266-3083Fax: 410-224-4239www.koonsford.com
Contact these Ford or Lincoln Mercury dealers for all your parts needs:
© 2014, Ford Motor Company
What’s happening at the State House, inyour industry and everywhere in between.
PERSPECTIVELEGAL
In today’s technological world, social media can be a great helpto small businesses. A presence on LinkedIn can connect people inthe same field, allowing for an exchange of ideas, or to help employ-ers find knowledgeable employees to hire. Articles or media blasts onFacebook and Twitter allow small businesses to get their name infront of hundreds of people who might not see traditional marketingmaterials. A presence on customer-review website Yelp allowsprospective clients to review the work - both good and bad - done bythe business in the past.
It is almost impossible to survive in today’s business climatewithout some sort of social media presence. Traditional methods ofmarketing are just not as far-reaching as they once were. You may,however, run across some pitfalls associated with social media thatsmall businesses need to be aware of. First and foremost, businesseswant to ensure that their employees are not posting defamatory orderogatory comments about their employer, or disclosing trade secretsor proprietary information, whether it is accidentally or on purpose. Inaddition, businesses need to be careful in protecting their clients’ pri-vacy. For instance, a man who brings his new sports car in for repairmay not want that information made public on Facebook or Twitter, norhis license plate number accidentally thrown into cyberspace.
THE PROS AND CONSOF AN ACTIVE SOCIALMEDIA PRESENCE
BY WHITNEY CLEAVER SMITH,Attorney, The Law Officesof Alexander & Cleaver
16 September 2014
©thin
ksto
ckph
oto.
com
/shut
ter_
m
So how can a business balance this wealthof inexpensive marketing against the potentialfor angry clients and avoid a pulpit for disgrun-tled employees? Small businesses must con-struct a clear, well-conceived policy regardingsocial media that they effectively communicateto their employees. This policy must balance theemployer’s desire to control the content put outon behalf of the business, against the rights tofree speech held by the employees. An overlybroad social media plan can fail for this veryreason. In addition, a perfect social mediapolicy will fail without reasonable oversight andenforcement by the company.
To ensure that your social media policyadequately protects you while complying withconstitutional rights held by your employees,you should sit down with the assistance of aknowledgeable attorney to construct a detailedsocial media plan.
Whitney Cleaver Smith’s practice oflaw focuses on personal injury, prima-rily representing clients in court. Shecontinues to build on her impressivetrack record of achieving court awardsfor clients in excess of previouslyoffered insurance settlements. Sheworks with clients on social mediaissues. For more information, pleasecontact Whitney Cleaver Smith [email protected] or (301) 292-3300 toconstruct or review social media policies.
17September 2014
18 September 2014
19September 2014
Information and updatesfrom WMABA and beyond.NEWS
20 September 2014
The Collision Industry Conference (CIC) is going through somemajor changes.
As announced during the July 29 CIC in Detroit, several of thegroup’s past chairs met in Chicago in June for a special strategicplanning session to discuss the organization’s future direction aswell as confirm the next chair. After a lengthy review of potentialcandidates, the past chairs selected longtime CIC participant RandyStabler (Pride Collision Centers, Greater Los Angeles, CA) to lead thegroup for a two-year term beginning in 2015. He will replace outgoingChairman George Avery (State Farm), who will step down from theposition following the November CIC meeting in Las Vegas.
CIC Administrator Jeff Hendler explained that the process ofselecting a CIC chair actually begins as soon as the current one isannounced.
“It is a considerable process of watching who’s on the commit-tees, who’s chairing the committees, who’s in the room and who’sdoing the job that CIC hopes to perpetuate,” he offered.
During the current chair’s second year, the past chairs eventu-ally narrow the list down to one person. Hendler was quick to wishthis latest individual well in his new role on behalf of the industry.
“We think we’ve got a good Chairman coming up [in Stabler], andwe hope you’ll give him all the help you can going forward,” he said.
Michael Quinn (uParts), who served as Conference chair from2011 to 2012, publicly thanked the past chairs for devoting their timeand efforts to making the recent strategic planning session a success.
“Remember, this is a volunteer group of individuals,” he said.“Each one of them paid their own way to fly to Chicago, spend anevening there and [put in] a full day of work for the betterment of thisConference.”
Past CIC chairs include Russ Thrall (CollisionWeek), Chuck Sul-kala (National Auto Body Council), Lou DiLisio (Automotive IndustryConsulting, Inc.) and Rick Tuuri (AudaExplore).
Avery congratulated Stabler on his new position and promised tohelp make the transition as smooth as possible.
“I pledge to be as good a past chair as [Quinn] was for me,” hesaid. “I’ve made a commitment that [if there is] anything you need, Iwill be here.”
Stabler is the co-founder of Pride Collision Centers, amultimillion-dollar collision repair company launched in 1983 thatcurrently boasts six locations in Southern California. He is expectedto make his first public address before the CIC body at the Novembermeeting.
In other news, the past chairs announced that they had agreedto revise the mission and vision statements for the organization.Moving forward, the CIC vision statement will read, “A collision indus-try in which all segments work together to enable a complete, safeand quality repair.” The revised CIC mission statement is as follows:“A forum where collision industry stakeholders come together todiscuss issues, enhance understanding, find common ground andcommunicate possible solutions to the industry.”
More information on the Collision Industry Conference isavailable at www.ciclink.com. H&D
CIC ANNOUNCES NEW CHAIR, REVISES MISSION & VISION STATEMENTS
CA-based shop owner Randy Stabler hasbeen named the new chairman of CIC.
Michael Quinn (uParts; far left) joined his fellow past CIC chairs in updating attendees on the group'sfuture direction.
21September 2014
US OFFICIALS VISIT CIC TO WARN AGAINST
COUNTERFEIT AIRBAGSAndrew Florell of the National Intellectual Property Rights Coordination
Center warned CIC attendees of the dangers of counterfeit airbags.
22 September 2014
Information and updatesfrom WMABA and beyond.NEWS
Counterfeit airbags are on the rise, and it’s up to the collisionrepair industry to put a stop to it.
This was the message heard loud and clear during an alarmingpresentation given by various government representatives (includingmembers of the Department of Homeland Security) during the CICParts & Materials Committee’s July 29 presentation in Detroit.
The fight against the distribution and use of counterfeit airbags isbeing pushed by the National Intellectual Property Rights Coordina-tion Center (IPR Center), a collaborative effort of 21 federal and inter-national partner agencies.
“We tell you this to warn you in the collision industry,” offered An-drew Florell, national program manager for the IPR Center’s Opera-tion Engine Newity. “This threat is out there. Look for it; deal withreputable individuals. Do not buy things from China, and be very cau-tious when dealing with online marketplaces.”
To illustrate the dangers of counterfeit airbags, Florell showed avideo of one of these phony products going off in a test collision. Notonly did the airbag system shatter into several pieces (which wouldstrike the passenger in the face at 200mph), but Florell noted that abootleg airbag could contain a number of toxic substances – includingone that could be fatal if inhaled or absorbed through the skin.
“It’s not just about the trauma of an exploding airbag,” he said.“It’s also about the chemicals that are used.”
Not surprisingly, the government is coming down hard on any-one caught perpetuating the use of these dangerous items. Onecounterfeiter in North Carolina, Igor Borodin, was caught with 1,514fake airbags and $60,000 in cash in 2012. He pled guilty to the distri-bution of counterfeit merchandise and illegal possession of explosive
devices and forfeited $1.7 million in sales proceeds. Borodin waslater sentenced to 84 months in federal prison and will be deported toRussia when his term is completed.
William Hayes, a deputy special agent for the Department ofHomeland Security, suggested that an airbag’s retail cost is a goodway to determine if what you’re buying is of questionable quality.
“If a legitimate item is $1,000 and you’re getting it ‘on sale’ for$400, price is often a very good indicator of a counterfeit,” he said. “Ifit’s too good to be true, it probably is.”
China and Hong Kong make up 82 percent of the sources ofcounterfeit goods seized by the Department in the last year. WhenIndia and Pakistan are added, the number increases to 86 percent.Most of the counterfeit items seized are coming into the US throughsmall parcels shipped via Express Mail or the US postal service.Even worse, some fake airbags are entering the country on commer-cial passenger airlines and even ending up in military vehicles, thusplacing American soldiers at risk.
Florell urged the collision repair industry reps in the room tospread the word about his agency’s work and to contact them if ashop has any information regarding counterfeit airbags.
“It’s not a black hole; I look at these [requests], and several otheragents and analysts look at these,” he insisted. “We take it very seri-ously. We’re always looking for complaints. If you get counterfeit[items], let us know. If we don’t know about it, we can’t do anythingabout it.”
More information on the IPR Center is available atwww.iprcenter.gov. H&D
“If a legitimate item is $1,000 andyou’re getting it ‘on sale’ for $400,
price is often a very good indicatorof a counterfeit,” Hayes said. “If it’stoo good to be true, it probably is.”
“If a legitimate item is $1,000 andyou’re getting it ‘on sale’ for $400,
price is often a very good indicatorof a counterfeit,” Hayes said. “If it’stoo good to be true, it probably is.”
©thin
ksto
ckph
oto.
com
/Vict
or E
mon
d
23September 2014
Although the summer months are typi-cally a time of rest and relaxation, the Soci-ety of Collision Repair Specialists (SCRS) isnot slowing down in its activities on behalf ofthe national auto body community. As evidentduring the association’s July 28 Open Meet-ing in Detroit, SCRS has maintained a robustschedule in addressing issues of importanceto both professional repairers and the con-sumers it serves.
Over the last several months, SCRShas focused considerable attention on the is-sues surrounding the average length of carrentals during the repair process, and howutilizing unrealistic expectations or faulty mul-tipliers to determine this amount of time im-pacts consumer experience. Since theprevious Open Meeting in April, SCRS hasworked with the Information Providers as wellas a variety of vendors including EnterpriseRent-A-Car and Hertz in looking at the dataavailable regarding the average length ofrental and comparing these figures to the av-erage hours per claim. Based on this re-search, SCRS Executive Director AaronSchulenburg stated that it was the associa-tion’s impression that “the average of actualtime spent in rentals is a bit different than theexpectations that are asked of the shop.” Theassociation recently released a special edu-cational research project (http://archive.constantcontact.com/fs161/1101307009687/archive/1117246772024.html) to illustratetheir concerns.
“Ultimately, if consumers are being
given information that doesn’t accurately ar-ticulate what’s actually going to happen inthe process, they will have less of a positiveexperience than they could have if we hadprovided them with a more realistic idea onthe onset of what that rental period wouldlook like,” Schulenburg noted. “Our focus is...that the metrics used for the pre-determina-tion of the lengths of rental is reconciled withthe realities of what is being produced on av-erage in the industry, rather than perpetuat-ing a misperception that if we placeunrealistic expectations, we’ll get unrealisticresults.” The length-of-rental debate will befurther explored in a feature in an upcomingissue of Hammer & Dolly.
In other news, SCRS continues to beused as a resource by a number of nationalmedia outlets looking to learn more about theissues surrounding the collision repair indus-try and its work with insurers. In response tothese ongoing requests, the association de-veloped a media statement that Schulenburgsays “accurately and comprehensively char-acterized the mindset of many of the repair-ers out there today who are really trying to doquality repair work [under] the pressures thatexist in our marketplace.” A portion of thestatement reads as follows:
The government’s pressure on automakersto reduce emissions is going to continue toimpact vehicle design, and increase theprevalence of an expansive list of lighter-weight materials and advanced technology.This continual evolution in automotive archi-tecture intends to produce safer, lighter,more efficient vehicles, and inherently re-quires increasing amounts of skill to repair. Itis absolutely the industry’s obligation toreact, equip our businesses and train ourtechnicians to meet the demands of ourchanging fleet. The good news is thatthrough efforts from industry organizationssuch as the Society of Collision Repair Spe-cialists (SCRS), I-CAR and others, the colli-sion repair industry has increasingly morerobust access to information from the au-tomakers on the proper repair methods thatshould be used, the necessary equipmentand the hazards of using certain parts orunaccepted procedures. As our industry
invests in this highly sophisticated equip-ment and intensive, specialized training thatare both often make and model-specific, thecosts of such investments have to be recov-ered. The biggest challenge facing repairersisn’t capability, but rather the downwardpressure placed on repair businesses to domore, and invest more, perform faster and todo so for a lesser return.
Interestingly, in the United Kingdom (UK),the UK Competition Commission issued asummary of findings after analyzing the in-teraction between the insurance and colli-sion repair market. They came to aconclusion that many repairers in the UnitedStates have known for a long time; themarket is not working well.
In fact, they specified that the market is notworking well because “competition betweenrepairers to obtain business from insurers isfocused on low cost rather than high qualityof repair; that is, repairers are insufficientlyrewarded for offering a high quality ofrepair.”
In addition to the statement (which wasslated to be posted at www.scrs.com atpress time), SCRS’ recent public outreach in-cluded participation in a special workshophosted by the Federal Trade Commissionand the Department of Justice last June inWashington, DC.
“When we have the opportunity to goand participate – and especially talk to thepanelists and share and interact with themabout some of the things that we see goingon in our industry from a pricing practicesstandpoint – they are often astounded that
24 September 2014
Rental Concerns, Media OutreachDrive SCRS Agenda
Information and updatesfrom WMABA and beyond.NEWS
Kye Yeung offered expert information onaluminum-intensive vehicles during the SCRSOpen Meeting in Detroit.
SCRS Board member CJ Vermaak got in thespirit of the "Reverse Jeopardy" game showhosted by the SCRS Education Committee.
25September 2014
organizations such as ours exist and are pres-ent at those types of workshops,” Schulenburgsaid. “When they hear the correlation [between]their discussions and some of the things thatwe’re working on, it opens up lines of communi-cation where we find opportunities to potentiallybring back information to our members.”
SCRS reported on Liberty Mutual remov-ing a commercial, which the association hadcommunicated concerns about, from televisionand YouTube in July. Members had reachedout to the association regarding what they feltwere condescending, destructive and mislead-ing statements about those not involved in theLiberty Mutual referral program. Schulenburg,who said that many of his members were “dis-appointed by the approach that was taken bythe carrier to promote their program at the ex-pense of the remainder of the industry,” waspleased to report that the offending commercialwill no longer be seen by the motoring publicand that the carrier was very responsive to theindustry concerns presented.
SCRS is also actively addressing con-cerns from members regarding requests by cer-tain carriers for shops to perform mid-panelclearcoat blending.
“It’s a frustrating issue, because I don’tthink there is any OEM out there who would ac-cept that repair approach,” Schulenburg said.The association has requested position state-ments on the matter from all major paint manu-facturers and plans to report on the responsesreceived on www.scrs.com in the near future.
The SCRS Open Meeting also featured“Reverse Jeopardy,” a humorous mock gameshow hosted by SCRS Education Committeemembers Toby Chess and Kye Yeung thatquizzed “contestants” (who were given hornsand other noisemakers) on their knowledge ofaluminum technology and repair. The fun na-ture of the festivities offered a good-natured ap-proach to an increasingly important topic forshops throughout the country.
The next SCRS Open Meeting is sched-uled for November in Las Vegas. For more in-formation on this and other upcoming SCRSevents, please visit www.scrs.com. H&D
SCRS Executive Director Aaron Schulenburgdetailed his group's recent actions on behalf ofthe industry and motoring public.
26 September 2014
27September 2014
RICO SUIT PLAINTIFFREJECTS JOININGANTITRUST ACTIONS
Information and updatesfrom WMABA and beyond.NEWS
28 September 2014
On July 14, Crawford’s Auto Center of Downingtown, PA filedan Interested Party Response opposing the consolidation of itssuit against several auto insurers (“RICO Lawsuit Targets Top AutoInsurers, Alleges Conspiracy Against Repairers,” H&D, July 2014)with a number of current antitrust lawsuits against carriers. Accord-ing to CollisionWeek Online (www.collisionweek.com), thesesuits include litigation currently filed in Mississippi, Florida, Indi-ana, Utah and Tennessee.
While the Plaintiffs in the case did not seek to have Craw-ford’s consolidated with the other lawsuits, Allstate identified thelawsuit filed by Crawford’s as a potential tag along suit. Explainingtheir opposition to the motion, Crawford’s response states, “Likethe majority of defendants who have filed responses to the pro-posed MDL [multidistrict litigation]...Crawford’s opposes consolida-tion of the RICO Class Action with the Antitrust Actions.”
As previously reported in Hammer & Dolly, Crawford’s filedan exhaustive 164-page lawsuit last spring against State Farm, All-state, GEICO, Progressive, Farmers, Liberty Mutual and Nation-wide, alleging that the companies conspired to control the cost ofautomobile repairs. Additionally, the complaint argues that thesecarriers violated the Racketeer Influenced and Corrupt Organiza-tion Act (RICO) by creating artificial “prevailing” rates based ontheir DRP shops’ use of products by the industry’s three leadingInformation Providers, who have been named as conspirators. Thesuit also names USAA, Travelers and American Family as conspir-ators but not as defendants. Crawford’s seeks to have the lawsuitgranted class action status to allow for the inclusion of any non-DRP facilities that “performed automotive collision repair work orservices on or in connection with a vehicle insured by, or coveredunder insurance issued by” any of the seven defendant insurersand used a CCC, Mitchell or Audatex estimating program for arepair estimate or supplement since January 1, 2006.
As this issue of Hammer & Dolly went to press, Collision-Week Online reported that the Judicial Panel on MultidistrictLitigation (JPML) approved the consolidation of the five above-referenced suits to the U.S. District Court for the Middle District ofFlorida. The plaintiffs had originally filed a motion to consolidatethe suits to the U.S. District Court for the Southern District ofMississippi for consolidated pretrial proceedings. The RICO suitremains unchanged by the decision. H&D
ABC NEWS SPOTLIGHTSDRP CONTROVERSY
An explosive TV investigative news report by ABC Action News inFlorida has put the issue of potentially dangerous repairs performed byDRP shops directly in front of the motoring public. According to the seg-ment, Florida vehicle owner Will Dunn was directed by his insurer to useone of their Direct Repair shops for the repair of his Nissan Altima.
“My insurance adjusters called and...pretty much steered me to theirshop,” he says.
Dunn claims that shortly after receiving the repaired vehicle, he no-ticed gaps in its rear seams.
“The comment that was made when my wife picked the car up wasthat the car must have been built like that,” he recalls.
He took his Nissan to Gunder’s Auto Center in Lakeland, whereowner Ray Gunder discovered a crushed portion of the frame in the rightrear of the vehicle.
“Whoever sits in that back seat is going to be put in major harm’sway,” he said.
ABC Action News reported that the Insurance Information Institutewent on record in defense of the Direct Repair system as a tool to managerepair costs. In an email, a spokesperson pointed out, “When the insur-ance industry takes steps to manage repair costs, it is a consumerbenefit. Savings are passed on...using a DRP is a consumer choice…”
According to Dunn, his insurer totaled the car and towed it away afterhe mentioned he had contacted the ABC Action News I-Team.
The station added that Gunder’s Auto Center is one of 20 Florida col-lision repair facilities that have filed suit against 30 insurance companies,alleging “a pattern of coercion to force these shops to take shortcuts on re-pairs to keep costs low.” The ABC Action News video is available atwww.abcactionnews.com/news/local-news/i-team-investigates/insur-ance-companies-accused-of-short-cut-repairs-that-may-put-your-family-at-risk-on-the-road. H&D
Allan Lock passed away onSunday, July 13. Lock had along career in the collisionrepair industry, starting at
Manassas Datsun in 1974, and also workedat Stohlman Nissan, Woodbridge Nissan,Kline Infiniti, Rosenthal Nissan, Browns Nis-san, Dominion Nissan and Halls Nissan untilhe retired in 2007.
He is survived by his daughter, Jessica;his son, Eric and his brother, David, who
currently works at Infiniti of Tysons Corner.Lock’s late father, John, worked for Nissan for25 years.
WMABA and Hammer & Dolly extendtheir deepest condolences to Allan Lock’sfamily. H&D
In Memory: Allan Lock
©thin
ksto
ckph
oto.
com
/jerry
2313
29September 2014
INSIDE SEMA 2014:A Preview of the Industry’sLargest Event BY JOEL GAUSTEN
In 2009, the Society of Collision RepairSpecialists (SCRS) went on a journey to cre-ate the industry’s most comprehensive na-tional trade show experience by joiningforces with the legendary SEMA Show in LasVegas. Through the support of a legion of in-dustry vendors and an industry audience whowas looking for a new, more inspiring ap-proach to offerings that gave them tangiblesolutions to bring back to their businesses,the SCRS’ Repairer Driven Education (RDE)program blossomed and the association’s in-augural SEMA experience proved to be anoverwhelming success. Now, with the
collision industry gearing up for its fifth yearat the Show (November 4-7 at the Las VegasConvention Center), SCRS has already metelevated expectations thanks to an extensiveschedule of unique happenings designed toaddress the needs of its membership and theindustry at-large.
With just under 100 days left to go atpress time, SCRS Executive Director AaronSchulenburg was pleased to report larger-than-expected registration figures and an in-crease in the number of collision repairvendors signing up to be a part of the festivi-ties. This includes not only new names to the
exhibition area, but also newly expandedfootprints by scores of previous vendors.
“The numbers continue to go up everyyear, and I think that demonstrates the waythis content hits home with repairers,” hesays. “We have a great partner in SEMA;they really share the vision we have for deliv-ering a home for the collision industry at thisevent.”
A major reason for the elevated buzzsurrounding this year’s SEMA is SCRS’ OEMCollision Repair Technology Summit onWednesday, November 5. This special all-day event will offer a content-rich agenda fo-cused on emerging trends and the evolutionof vehicle design, construction and technol-ogy as it relates to the collision repair envi-ronment. The format, featuring elevateddiscussions surrounding shop-floor issues,will include high-level speakers, panel dis-cussions, breakout sessions, hands-on tech-nology displays and organized interactionwith OEM representatives and others with di-rect impact on vehicular changes relative tocollision repair. OEMs confirmed to attend in-clude representatives from Mercedes, Ford,Toyota, BMW, Tesla, GM and Audi; currentsponsors of the Summit include PPG, BASF,Ford, Hertz and Toyota. Seats are limited forthis event, which is expected to sell out.
“We really tried to look at every elementof the changes in technology, the investmentinvolved and what’s necessary for the indus-try, and relate it back to how collision repair-ers can make decisions in their businesses tobe sustainable, relevant and ahead of thecurve looking down the road into the future,”Schulenburg says.
Pleased to see the OEM Collision Re-pair Technology Summit take shape, SCRSChairman Ron Reichen feels that the day-long event will provide attendees a rare
The industry gets ready for thefun and education in Las Vegas.
FEATURENATIONAL
30 September 2014
opportunity to gain distilled information aboutindustry advancements without having tosearch through dozens of news sources ortechnical bulletins. In his mind, the conven-ience of such a gathering will go a long way inhelping shops become more aware of – andarmed with greater knowledge to combat – thechanges occurring now and into the future.
“You have to educate [technicians] andmake capital investments in training and equip-ment in order to repair these vehicles that arecoming out,” he says. “They’re coming out atsuch a rapid speed that you can’t wait and seeand then make a decision.”
Of course, one way this year’s SEMAaims to help showgoers stay ahead is by offer-ing a considerable focus on the repair of alu-minum-intensive vehicles. Some of the manyaluminum-specific offerings during SCRS’ RDEprogram at this year’s Show include anoverview of 2015 F-150 repair information of-fered by Larry Coan and Gerry Bonanni of theFord Motor Company on November 6 and aspecial “Aluminum 2014 & Beyond” class pre-sented by Ken Boylan of Chief AutomotiveTechnologies on November 7.
SEMA veteran and regular Hammer &Dolly contributor Larry Montanez will alsotackle aluminum repair, offering “Aluminum Re-pair Procedures, Techniques & Requirements”on November 4. The longtime educator prom-ises a greatly expanded look at the topic thatwill go far beyond what he has offered so far inthe pages of this magazine.
“The course will be an extended versionof three or four articles [Jeff Lange and I] havewritten, along with pictures from certified Ger-man aluminum repair facilities and a lot of thetechniques, equipment and tools that are beingutilized,” he says.
Above all, Montanez’s course will educateattendees on what it actually takes to becomean aluminum repair facility, if that investment isadvantageous to a shop’s bottom line or if it’sworth it to sublet the repair. Additionally, thecourse will delve into some of the common re-strictions that shops could face when attempt-ing to perform aluminum repairs – especiallywhen dealer sponsorships come into play.
In Montanez's mind, being Ford-certifiedfor aluminum “doesn't mean you're going to beable to touch [certain] German vehicles. A lot ofthem have restrictions and won't even sell youparts.”
Montanez will also present “Check Your-self: Departmental Quality Control to PreventIncorrect Repairs,” a November 6 course
designed to cover commonly missed opera-tions or procedures discovered during post-repair inspections that often result in re-dos.He hopes that the discussion will serve as awarning shot that certain common mistakescan become a nightmare if the shop isn’tcareful.
“In each department, there are usually 10to 15 specific things that are always missed,”he explains. “For example, [when] somebodywelds a panel on, we usually see that the backside is not only improperly ground, but it’s noteven dressed afterwards. By the time the cargets to re-assembly, everyone’s forgotten tolook for that; the car goes out without corrosionprotection products being re-applied to thosecollision-repaired or replaced areas.”
All attendees of Montanez’s class willreceive a list of P&L Consultants’ “commonlyforgotten items” for each department.
Although aluminum is the latest topic toearn the industry’s collective attention, Schu-lenburg reminds SEMA attendees that thereare several other issues of importance that willhave a place at the show.
“Aluminum represents a growing area ofwhat we’re going to see in our fleets, but basedon what we know today, it’s unlikely that it willbe the majority of what we’re going to see com-ing through our shop doors,” he says. “Thereare a lot of advancements being made in thealuminum industry, the steel industry and thecarbon industry. There are a slew of differentmaterials that our shops are going to have togear up for and figure out how to address, fixand work a production model on in order tocreate sustainable business practices. Thatmeans being prepared to address a fleet ofmultiple substrates that has different trainingand tooling requirements, creating a variety ofspecializations within our repair businesses. ”
For many forward-thinking business own-ers, developing these kinds of practices beginswith tracking – and developing responses to –industry trends. During “Using Industry Statis-tics to Your Advantage” on November 4, MikeAnderson of CollisionAdvice (www.collision-advice.com) will provide collision repair cen-ters with the latest industry-related statistics,OEM trends and statistics from the latestsources from across the country.
“My goal or objective out of my class is totell people how to interpret the data, how touse it to improve their businesses and how touse the data to problem-solve in their busi-nesses so they can lower their stress level andimprove their profitability,” Anderson explains.
“A lot of times, we don’t know how we’re doingunless we have some gauge in our business totell us – much like your car. Would you ratherdrive down the road always guessing abouthow much gas you have, or would you ratherhave a fuel-tank gauge that tells you, ‘Hey,you’re down to a quarter of a tank?’”
In Anderson’s mind, this approach ofusing data to one’s advantage is in line withSCRS’ goal of providing what is necessary forshops to thrive in an ever-changing market-place.
“You really have to be out there on theleading edge to see what’s happening – not somuch with what’s happening today, but what’scoming down the road,” he says. “We have tobe more proactive instead of reactive, andSEMA gives you a great opportunity to do that.”
This November, the collision repair com-munity will be among the 100,000-plus peoplefrom around the world who will converge in LasVegas for the automotive world’s biggest gath-ering. Although the auto body field comprisesone section of the larger picture that is SEMA,rest assured that this unforgettable event willoffer the definitive representation of the na-tional – as well as the global – auto body repairindustry.
“There is no other place where collisionrepairers can benefit from the connection to thegrander automotive industry footprint, or wherethey can find more comprehensive offeringsspecifically crafted for collision repair profes-sionals,” Schulenburg says. “Even if you areonly interested in collision repair and relatedgoods and services, SEMA is the place to be.There are more vendors, opportunities and op-tions than you can find anywhere else in thisindustry. It’s also in one of the most exciting, in-spiring and fun environments, where you cango and feel re-enthused about the industry wework in. That’s one of the things that I thinkSEMA delivers that nothing else does in a simi-lar capacity.”
The complete SCRS RDE schedule atSEMA (including registration information) isavailable at www.semashow.com/scrs.
H&D
31September 2014
A MAJOR REASON FOR THE ELEVATED BUZZ SURROUNDING THIS YEAR’S SEMA ISSCRS’ OEM COLLISION REPAIR TECHNOLOGY SUMMIT ON WEDNESDAY, NOVEMBER 5.
SEMA was the go-to place for repairers todiversify their business well before the collisionindustry had its own section and “RepairerDriven” education. Now that all things we needare in one place, surrounded by an infinitenumber of additional opportunities, therereally is no excuse for a repairer not to attend.
- Jordan Hendler
Executive Director’s Thoughts
32 September 2014
33September 2014
Nuts and bolts, tips and tricksfrom our resident industry experts.
FEATURETECHNICAL
BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
We are sure most of you reading this have seen at least some ofthe Facebook, LinkedIn and other social media posts and/or news re-ports about the epidemic of bad, improper or incorrect repairs plagu-ing the auto industry. The insurance companies, auto rebuildersassociations (recyclers) and aftermarket alternative parts industry areall saying the parts utilized in the repair process on these cases meetor exceed the OEM component, and that these are just isolated inci-dents. The body shops are saying they are being forced by the insur-ance companies to the use these inferior or rebuilt parts and performsubstandard repairs. As you can see, there’s a lot of finger pointingand “he said, she said” going on. Both sides sound believable, andboth sound like they are making their point. So who is really at faulthere? This article will look at what we think is the reason behind whythe collision repair and insurance industries are in so much turmoilright now.
OEMs’ General PositionThe OEM’s primary business is selling new vehicles. They pro-
duce and/or have parts produced for building their vehicles, and thesecomponents not only service the aftermarket field for mechanicalservice and failures but serve the collision repair industry as well.Over the past few years, many OEMs have produced specific repairprocedures and parts usage “Position Statements,” basically stating“we recommend,” “we require” and/or “we suggest” to do this or thator use only this to do this or that in a certain way. In a nutshell, theOEMs state that their parts are superior to those of the copies, andthat using recycled parts - although originally produced by the OEMs -may cause an issue due to the unknown condition of the part. Now,we may agree with the copied parts (a.k.a. aftermarket) not being thesame as the original. Original parts can be broken down into threecategories:
New OEM: Components produced during manufacturing when thevehicle is first made.New OEM replacement: Components produced for the sole purpose ofbeing replacement components for mechanical and body repairs. Thesecomponents are held to strict guidelines as to how many times the diescan be used prior to replacement, the type and thickness of the sub-strate and the type of coatings applied. Used OEM: Components taken from a donor vehicle that are eithernew OEM and/or components that were replaced with new OEMreplacement components.
Any one of these three options may be used during repairs, butkeep in mind that many OEMs do not recommend the use of usedcomponents, even if they originally produced them. We feel that mostbolt-on body components can be a viable replacement option, if thereare no safety or crash management issues that may arise; the com-ponent is in good condition and has no previous repairs; and of theconsumer has approved of their use. Please make sure to inform theconsumer if the OEM does or does not recommend the use of usedparts; if the consumer elects to use them anyway, it is their decision.Remember: If you as the shop go against the OEM recommendation,then you are fully liable. We do not endorse or recommend the use ofused safety components or weld-on components.
Aftermarket components are, well…knockoffs. In many cases,there are fit and finish issues and differences in substrate material,tensile strength, material thickness, corrosion coatings, dimensionalinconsistencies and so on. Most OEMs have position statementsagainst the use of aftermarket components and reconditioned wheels.Reconditioned wheels can cause a multitude of dangerous situationsand should never be used if the OEM has a position statement, ifthere are any structural deformities or if any welding or if adding orremoving material is required. Generally, refinishing is approved bymany.
©thin
ksto
ckph
oto.
com
/JGI
WHO IS MORE AT FAULTFOR IMPROPER REPAIRS: REPAIRERS OR INSURERS?©t
hinks
tock
phot
o.co
m/m
onke
ybus
iness
imag
es
34 September 2014
Insurance, Aftermarket and Rebuilders Industries’ General Position
The representatives or lobbyists from these industries will have youbelieve that the use of used and aftermarket components keep insur-ance rates low as they control costs. They will tell you that if you re-placed every part on a 2012 Toyota Camry with new OEM, it would costover $125,000. Who would pay $125,000 for a 2012 Toyota Camry?They’re right, but what they DON’T tell you is, if you replaced all thesame parts with aftermarket and/or used, the cost would exceed$75,000 - $90,000. And who would pay that for a 2012 Camry? All thatthey prove is that a vehicle is worth more money in pieces then it is as awhole unit. They don’t, however, discuss the issue of underwriting andthe calculations that go into determining insurance premiums. Obviously,the costs of repair are a consideration on these calculations. But do theyuse OEM component prices, or aftermarket?
There may be a savings to using alternative and used parts, but theoverall replacement cost still exceeds the value of the vehicle. So what’sthe truth? Well, a small part of the savings does come from parts usage,but the big savings come from the Direct Repair Program (DRP) agree-ments. Now, we are not privy to the actual agreement parameters, butcommon sense and industry articles can give us a basic idea of what thefollowing advantages to the DRP process could be for the insurance in-dustry:
• A capping of prices on Labor Rate and material charges;• More control over claim process with a cost savings (DRP repair facilitieshave a certain number of days to make the repairs in; otherwise, the facilitymay have to absorb some costs);• Control over rental costs, as facilities that cannot make the repairs in therequired days may have to pay for rental overages; and• Low repair costs due to no-charges on many procedures and fees (manyDRP agreements require repair facilities to not charge for pickup/drop off,detailing, additional procedures, parts discounts, rentals and more).
For the insurance company, there are a lot of savings in using theDRP system, with some additional savings following the use of aftermar-ket and used parts. Many times, we hear shops complain that the insur-ance companies want them to try to repair something when the shopknows it can’t be repaired. Now, no insurance company would ever wantan incorrect repair performed or have an unsafe vehicle go back out onthe road. However, it happens. But why does it happen…and how?
The insurance company has three basic options to repair a vehicleas follows:
• Control the repair by repairing the vehicle themselves. This will neverhappen, as insurance companies are in the business of insuring, not re-pairing. (While they do have some control over costs with the DRP system,they are not repairing the vehicle.)• Pay for the value of the vehicle. This is commonly referred to as “total-ing out” the vehicle. This can happen at any price on third-party claims, andat any price over the insured’s deductable, depending on state laws.• Pay the insured or claimant for the cost of repairs to restore the ve-hicle to its pre-loss condition. In some states, there are OEM or non-OEM parts policies. We know of one or two situations where there is anHMO-type DRP system for discounted rates. However, in most states, theinsurer is paying the vehicle owner the amount they owe to the repair facil-ity for the repairs to restore their vehicle to its pre-loss condition.
So where does it all go wrong? Why are there so many improperrepairs? Please read on...
Collision Repair ProfessionalsCollision repairers will say that their Labor Rates are suppressed,
and that they are "forced" to use inferior or used parts. And when repairsare found to be incorrect, the facilities use the “that was all they paid” ex-cuse. Well, we are here to tell you that those excuses are complete lies.Insurance companies cannot force a repair facility to do anything, ever.The repair facility chose to cut corners on procedures, use inferior parts,use antiquated equipment, fix components that should have been re-placed or neglected to restore corrosion protection. The time has comewhere repairers need to be held accountable for their business deci-sions. We see poor quality repairs from both DRP and non-DRP facili-ties. As we stated before, insurers have no say on the shop’s decisions,even for a DRP. Remember: The facility owner(s) agreed to the terms,but it was their decision.
The RulesThe insurance company owes the insured or claimant the proper
amount to repair their vehicle to its pre-loss condition or for the value ofthe vehicle.
The repair facility is obligated and contractually bound to honortheir agreement with the vehicle owner. Any and all decisions will betheir liability, regardless of whether the insurer approved those proce-dures, parts or services. The repair facility is the expert and will be heldaccountable.
The insurance company has as much right to tell a shop how to re-pair a vehicle, what procedures and parts to use and what Labor Rate tocharge as repair facility owners have in telling insurers what premiums tobill, what coverage to honor and what deductibles to charge.
In next month’s article, we will look at a case study of a poor-qualityrepair and explain who is at fault for where things went wrong. H&D
Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&LConsultants works with collision repair shops on estimating, production and properrepair procedures. P&L conducts repair workshops on MIG & resistance welding,measuring for estimating and advanced estimating skills. P&L also conducts investi-gations for insurers and repair shops for improper repairs, collision repairability andestimating issues. P&L can be reached by contacting Larry at (718) 891-4018 (office),(917) 860–3588 (cell), (718) 646–2733 (fax) or via email at [email protected]. TheP&L website is www.PnLEstimology.com.
Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY(www.LangeTech.net). Jeff is a Licensed New York State Professional Engineerwho specializes in investigating vehicle and component failures. Lange TechnicalServices, Ltd. is an investigative engineering firm performing forensic vehicleexaminations and analysis for accident reconstruction, products liability andinsurance issues. Jeff can be reached at (631) 667-6128 or by email [email protected].
35September 2014
The parts controversy rages on, and this showcase by Larry and Jeff bringshome many of the pertinent points we have to discuss during even thelegislative process. A repairer inevitably must inform the customers – thevehicle owners – of their choices and let them make them. The insurerwins only the money game, but the vehicle owner gambles with his or herlife on potentially inferior parts. - Jordan Hendler
Executive Director’s Thoughts
Conquest your Mitsubishi parts needs!
Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems.
Ultra-Conquest Collision Parts Program Highlights:
• Discounted prices on quality new and unblemished OEM parts• Automated price and part selection in collision estimating systems• High parts availability• Delivery to most major U.S. cities within 24 hours• Available through all participating Northeastern area Mitsubishi dealers• Includes the majority of key collision components for select popular models• We can meet or beat aftermarket prices!
To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer.
For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers.
Buy Genuine Mitsubishi Parts and get the perfect fit at the perfect price. 10% off on all parts orders when you mention this ad.
Jerry’s Mitsubishi1906 East Joppa Road
Baltimore, MD 21234
Toll Free: 800-255-0691
Direct: 410-668-2119
Fax: 410-513-0236
www.jerrysmitsubishi.com
Fitzgerald Mitsubishi1930 West Street
Annapolis, MD 21401
Direct: 410-224-4636
Fax: 410-224-4264
E-mail: [email protected]
Younger Mitsubishi1945 Dual Highway
Hagerstown, MD 21740
Direct: 800-296-1190
Fax: 301-733-5465
www.youngermitsubishi.com
Malloy Mitsubishi14655 Jefferson Davis Hwy
Woodbridge, VA 22191
Direct: 703-490-8263
Toll Free: 888-533-3400
Fax: 703-490-3864
36 September 2014
37September 2014
An inside look at how fourmembers found success in the field.
STORYCOVER
Generations of GreatnessFor longtime WMABA member and
Fredericksburg mainstay Milton Parrish, ex-pertly bringing vehicles back to pre-accidentcondition is a true family tradition. A third-generation shop owner, Parrish continued inthe footsteps of his grandfather Vernne andfather Stanley when he launched his currentbusiness, Parrish Body Shop, in 1983. Al-ready working in his family’s shop by the timehe was 16, he had no doubt that collision re-pair would be his life’s work.
“Growing up, my brother Michael and Iwould whitewash the walls, scrape the win-dows and sort out the nuts and bolts until wewere big enough to learn how to do body-work and paintwork,” he says.
The Parrish family’s story in auto repairbegan in Kentucky around the time of theGreat Depression, when Vernne – a black-smith by trade – started a shop with his son-
in-law. Stanley followed his father in thetrade, eventually serving as an airplane me-chanic during World War Two. After settling inFredericksburg after the war and honing hisskills at a few dealerships, he started his ownshop in 1958.
Today, Milton keeps the spirit alive atParrish Auto Body. A celebrated part of thecommunity, the 9,600-square foot facility isA+ rated by the Better Business Bureau andwas the proud recipient of the 2012 Au-tocheX Premier Achiever Award fromMitchell. He maintains this high standing inthe community thanks to the efforts of a 12-person staff.
In an effort to stay relevant in today’smarketplace, Milton has worked to keepParrish Body Shop on the cutting edge oftechnology.
“We were the first people in the areawho put in waterborne paint because we
thought it was right for the industry,” he says.“We’ve always been progressive. My fatherwas the first person to actually have a realframe machine in Fredericksburg [back in1959].”
Naturally, the Parrish family’s commit-ment to excellence has resulted in 56 years’worth of referrals and repeat business fromcustomers who know they receive qualitywork for their hard-earned dollars.
“My father used to have a philosophythat if you did 10 people right, you’d be luckyif one person went out and said somethinggood about you,” Milton says. “If you do one[person] wrong, he or she is going to tell 10people. We still use that philosophy everyday here. With that, we have built genera-tions of people coming to Parrish BodyShop.”
Currently, Milton is joined in the shop byhis son Jeremy (who serves as the produc-tion/parts manager) and son-in-law FrankPerkins, who is training to be a body man.His brother Michael also remains active inthe industry, currently enjoying a career atLarry’s Import Center in Virginia Beach.
Away from the shop, Milton does whathe can to improve the industry as a whole.An avid supporter of I-CAR, he has servedon the organization’s International AdvisoryCommittee (IAC) and continues to encouragehis fellow repairers to take advantage of thevarious educational opportunities available tothem.
“If you don’t know the inner workings ofI-CAR, get involved with it because it will help
What makes a multi-shop operator tick? What drives a business with a dozen employees? What enables a body shop to survive intoa second generation? Hammer & Dolly reached out to WMABA members of varying sizes and experiences to learn more about theirhistory, business practices and goals for the future. As you’ll read, these shops have more in common than you might think.
By Joel Gausten
BEHIND THE CURTAIN:INSIDE STORIES FROM WMABA MEMBER SHOPS
38 September 2014
Parrish Body Shop: Award-winning service has helped this family business stay at the top.
you,” he offers. “Take the time to get in thesethings and see what’s available for you.”
Interestingly, Milton’s work on behalf ofthe industry has enabled him to see just howwell respected WMABA is across the country.Whether he’s in Idaho or Los Angeles, his colli-sion repair counterparts are fully aware of whatthe association is doing to help members in theWashington Metropolitan region and beyond.
“They all know WMABA,” he says. “Theywish they had this type of influence in theirareas. It’s a tremendous organization.”
All in the (Friends and) FamilyWhat is the secret to longevity in this
industry? For longtime WMABA businessHanagan’s Auto Body (Silver Spring, MD),finding ongoing success in the trade is a matterof taking care of customers and employees.
Celebrating his 55th anniversary in busi-ness this year, Hanagan’s co-founder JimHanagan believes if you consistently treat yourstaff with care, fairness and respect, they willremain loyal and dependable members of yourteam. While employee turnover may be anissue at some other shops, Hanagan’s hasbeen fortunate enough to build a sizable long-term staff. This is especially true of the shop’scollision repair department, which hasn’t seenthe need for a new hire since the late 1990s.
“We treat our people like family,” offersJim, who started the shop with his late brotherPat in 1959. “We provide them with a safe en-vironment to work in, and we stay aware oftheir needs.”
Already a 20-year veteran of the collisionrepair world by the time he joined the Hana-gan’s Auto Body family in 1993, technicianBrian Cho was immediately impressed by theshops’ warm, welcoming spirit. It was exactlywhat he wanted out of his career.
“I wanted to work in a family situation; Ididn’t want to go to a big dealership wherepeople didn’t know each other,” he says. “Thishas been a family shop for a long time.”
A longtime car enthusiast, Carlos Murillo
began at Hanagan’s in the mid ‘90s while ajunior at Thomas Edison High School of Tech-nology in Silver Spring. After succeeding in theco-op program, he signed on to work at thebusiness soon after graduation. Nearly twodecades later, he still views working with theHanagan family as the realization of a child-hood dream.
“I’m happy because I get to do what Iwanted to do when I was in school,” he says. “Ilove to work on cars; every one is different.”
In fact, Carlos was so pleased to be a partof the shop’s crew that he encouraged hisbrother Milton to join the shop in the late ‘90s.After starting out at the shop by cleaning cars,Milton soon became a valued body tech. Hisarrival at Hanagan’s marked a dramaticchange in his career goals: Although he stud-ied to be a mechanic, this custom car enthusi-ast actually pursued a four-year career inrestaurant management before the allure ofworking on autos finally drew him back to hisoriginal passion.
“You have to love what you do,” he says.“If you don’t like what you do, this is the wrongcareer. I love working on cars.”
Although veteran technician Steve Alperhas been with Hanagan’s Auto Body for nearly40 years, his history with the Hanagan family
39September 2014
Hanagan's Auto Body is home to some of the industry's best and most loyal technicians. Front left to right: Milton Murillo, Carlos Murillo. Back row: Manuel Mejia, Big Jim (owner), BrianCho and Steve Alper.
The Hanagan family has thrived in the auto repair industry for generations: Left to right: Sean,Tony, Jimmy, Big Jim, Tim and Anthony.
40 September 2014
COVER STORYdates back even further. He grew up rightacross the street from the family’s house andshared the same junior high school bus stopspot with Jim’s son Timmy. After spending thefirst four years of his career moving betweenvarious shops, he finally found his perfect fit atHanagan’s in 1976. All these years later, hesees the Hanagans more as friends thanemployers.
“They’re not really ‘bosses;’ it’s not likesomeone who is constantly on you, telling youwhat to do,” he explains. “The jobs always lookgood, so there are no complaints there.”
Looking back on his career, what doesAlper – who will soon celebrate his 60th birth-day – view as the greatest thing about spend-ing a life in the collision repair field?
“Taking something that’s crashed andmaking it look nice,” he replies. “I’ve alwaysliked that.”
A 15-year veteran of Hanagan’s, ManuelMejia was already a seasoned body tech in hisnative El Salvador when he moved to theUnited States in 1990. In addition to welcomingthe opportunity to showcase his skills on any
type of vehicle that arrives at the shop, he trulyenjoys and appreciates the chance to be a criti-cal part of an always-thriving business.
“They’re very nice,” he says of the crew.“We all work together to make the businessgrow.”
Considering the spirit of family together-ness evident at the shop, it comes as no sur-prise that other Hanagans are actively involvedin guiding the business into the future. With Jimsemi-retired these days, Hanagan’s Auto Bodymoves forward thanks to his sons Timmy, Tonyand Jimmy. In addition, the shop is now in itsthird generation, as Jimmy’s son Sean and
Tony’s son Anthony currently handle the IT andcustomer service side of things.
Driven by multiple family members and afirmly established collision repair team, Hana-gan’s Auto Body shows what is possible whenowners and technicians work together in aspirit of mutual respect and a commitment toserving consumers.
As Carlos Murillo says, “The way theytreat me here is excellent, and we have workconstantly. I don’t need to be at another shop.”
Carrying the TorchSeventeen years ago, Chris Taylor started
working full time as an estimator at his parents’body shop, Taylor’s Auto Body in Char-lottesville. Even then, the 23-year-old knewthat his professional life would involve the dailyworkings of the family business, which wasfounded in 1986.
“I wanted to be home and I liked livinghere in the area, so it seemed like a logicalstep,” he says. “I grew up in it, so it was some-thing I had a lot of knowledge about, even at ayoung age. Once I thought about it, I wanted to
Taylor's Auto Body carries on into itssecond generation of business.
Ed Vallejos (right) and Warren Aldridge have built Professional Collision Centers into one of Virginia's most popular collision repair institutions.
Courtesy of Professional Collision Centers/photos by Mark Gilvey.41September 2014
carry on what my mom and dad had alreadydone.”
Fast-forward to 2014, and Chris is indeedoverseeing the daily success of the operation.One of the busiest facilities in the region, Tay-lor’s Auto Body is rarely without work – evenwithout the benefit of multiple DRP arrange-ments. While some shops depend on insurersto send work through the door, Chris utilizesTV, radio, social media and print advertising tolet people know about the shop’s services.
“People aren’t told to come here,” hesays. “We have to sell ourselves.”
Once a customer is enticed to give the17,000-square-foot shop a try, Chris and his21-person staff earn that vehicle owner’s trustby maintaining a strong focus on efficiency andquality.
“We keep everything in-house so we cancontrol it,” he says. “We have our own align-ment machine, wheel balancer, tire mountingmachine and we do all of our air-conditioningwork here. We also have scanners to do all ofour diagnostics.”
An early adapter of waterborne, Taylor’s
Auto Body has followed a “green” mindsetsince 2009.
“People really see that we’re conscien-tious about that,” Chris says. “We try to takegood care of our employees and the environ-ment. We recycle everything here, and we usewaterborne paint. Obviously, as soon as thewaterborne clear comes out and is ready, we’regoing to be ready to try that, too.”
In addition to maintaining a Green philoso-phy, Taylor’s Auto Body keeps its finger on thepulse of changing repair trends and require-ments. Already aluminum-certified for Corvette,the shop is currently working to get up to speedin time to service the 2015 Ford F-150s whenthey start hitting the road later this year.
Looking ahead, there is little doubt thatTaylor’s Auto Body will continue to thrive as afamily-owned and -operated establishment.Chris’ parents Doug and May still work at theshop part time, while his sister Marcie Llerahandles everything from advertising and mar-keting to invoicing and scheduling. Chris’ aunt,Melissa Mahon, has served as the shop’s officemanager for the past 25 years.
Although this industry has its fair share ofups and downs, Chris Taylor is pleased to beable to move his family and business into abright future.
“My mom and dad basically started fromnothing, so I’m just very proud to be able tocarry on and still service customers they did,”he says. “We’re a small business in a smalltown; we’re really well known and a lot ofpeople come here. It’s really gratifying.”
An Amazing Education Very few people get to learn from some of
the best in the industry, but that’s exactly whatpast WMABA Board member Edward Vallejosdid when enjoyed stints at Bevis Auto Body(with owner and former WMABA PresidentRandy Bevis) and Craftsman Auto Body (withindustry legends Frank Krauss and Jerry Dal-ton) early in his career. With the values andskills he picked up from these special experi-ences, Vallejos struck out on his own onLabor Day 1976 and opened his first shop,Professional Auto Paint & Body.
The years that followed saw Vallejos (who
42 September 2014
became a WMABA member at the behest ofthen-Executive Director Sheila Loftus) grow hisprofessional reputation throughout the commu-nity. In 1984, he partnered with Warren Aldrich,an attorney/CPA who added substantial legaland financial skills to the company. Thebusiness was relocated from Newington toSpringfield in 1981, then to Woodbridge in Juneof 1986, where it grew to a multimillion dollarsales organization. In 1999, Vallejos and Aldrichdedicated a brand-new, 23,000-square-foot,multimillion dollar cutting edge facility locatedon Route 1 (Jefferson Davis Highway) that sitson 3.5 acres. Later, they opened a new 15,000-square-foot, state-of-the-art-facility in Staffordthat sits on two acres. Each step of the way,Vallejos has ensured success by maintainingstrong communication with Aldrich and his staff,which now totals 70 people. Additionally, hemakes sure his facilities, collectively known asProfessional Collision Centers, keep up withtechnologies including aluminum repair. Cur-rently, he plans to add an aluminum room to hisbusiness in the not-too-distant future.
“Lack of adaptability is one of the big rea-sons why a lot of shops don’t make it,” he says.“You want to make sure you’re on the leadingedge.”
When not making sure his businesseshave the equipment and expertise needed toget the job done right, Vallejos strives to ensurethat his locations are clean and aestheticallypleasing, especially to female customers.
“If you come to our two locations, you’llsay, ‘Wow, this is not a body shop!’” he says.“You would never know we fix cars.”
Three years ago, Vallejos took a majorstep forward in the managerial side of things bybringing in professional business coach DonnaBlackman, who has added tremendous value tothe shops’ operations.
“She keeps us active, moving forward andon our toes,” he offers. “[Having a coach]makes you more accountable to yourself and toyour team.
“It’s very dangerous for you to sit still andfall asleep at the steering wheel,” he adds.“You’ll wake up in a couple of years and say,‘Oh, wow, I’m so far behind. I have to catch up!’So that’s why we said we needed to have abusiness coach.”
COVER STORY
43September 2014
Like many repair professionals, Vallejoshas had the pleasure of seeing his children findsuccess in the field. His son Todd has been atechnician at the Woodbridge location for 20years, while his other son Ryan serves as ageneral manager at Fairfax Collision Center inChantilly.
With nearly four decades in the trade be-hind him, Vallejos still looks forward to eachday as an opportunity to better his businessand add something new to his experiences asan auto repair professional.
“Every day, I look at change and how wecan do things better,” he says. H&D
DARCARS Director Gary HigginsPasses
On July 26, the WMABA community lost one ofits most dedicated industry members with thepassing of Gary Higgins, who served as fixedoperations director of the DARCARS Groupsince the mid-1970s. He was 63.
In a special memorial written by theWashington Area New Automobile DealersAssociation (WANADA), the organization paidtribute to Higgins’ commitment to making theindustry better for those around him:
“[Higgins] recognized what he believed to bethe single most significant component forsuccess in his world, namely, the people onstaff to get the job done. This mentality clearlyformed the basis of his consistent and continualsupport of career training, education andrecruitment of young people into the field ofauto technology, tangibly evidenced by hislongstanding leadership of the MontgomeryStudents Automotive Trades FoundationMini-Dealership Program, his co-founding ofWANADA’s ADEI Technician DevelopmentProgram at Montgomery College, his personalinvolvement in Toyota’s T-10 Program and thementoring he did through Toyota at theAutoTech Center at Ballot High School in DC.”
Higgins is survived by his wife Connie,daughter Meghan and sons Bryan, Kevin,Collin and Martin. WMABA and Hammer &Dolly offer the Higgins family our deepestcondolences. H&D
The histories of those repairers in WMABA re-ally have shaped not only their stories, but thestory of the association. It’s been a humblingexperience to serve those who have dedicatedso much of their life to the betterment of theirbusiness and this industry. - Jordan Hendler
Executive Director’s Thoughts
44 September 2014
45September 2014
46 September 2014
47September 2014
48 September 2014
MESSAGEPUBLISHER’S Thomas Greco
(973) [email protected]
CHANGEChange can be good. Change can be
scary. Change can be difficult. Change can beeasy. Of course, change can be any and all ofthose things combined.
There are those who welcome change. Tobe honest, I have never been one of them. Butin order to not only succeed, but also survive intoday’s business world, you have to change. Orelse you get left behind.
The first thing I’d like to change is to some-how grow back some of the hair I had when thephoto at the top of this page was taken. But se-riously, like the automotive repair industry, thepublishing industry is changing at what seemslike a breakneck pace. Although our “bread andbutter” remains our print edition, over the lastfive years we have expanded our presence onthe web through www.grecopublishing.com(where you can find digital editions of Hammer& Dolly to read on your phone, tablet or com-puter), our H&D e-newsletter and social mediasuch as Facebook and Twitter.
Let’s face it. Time is limited and so areattention spans. People want to be able toaccess their favorite magazines, books, music,movies, TV shows, etc. at their fingertips andevery day some new form of technology makesthat happen in a faster and more efficient way.So we at Greco Publishing, like you in yourshop, have to be prepared to adapt. Andchange. If not, you might as well take advan-tage of all our wondrous new governmententitlements.
I was raised by a second-generationItalian-American bricklayer. He didn’t believe in
government entitlements. He taught us to work hard and earn a living. He believed in the“American Dream.” Now, I’m not foolish enough to think 2014 is anything like the ’40s or the’50s or even the ’80s. Hard work doesn’t guarantee anything these days, and that’s sad.But it’s no reason to give up or stay stagnant. You have to change.
This month, we made a major change at Greco Publishing by promoting our VicePresident/Managing Editor Alicia Figurelli to Vice President/Director of Sales. Alicia is afamiliar face. You’ve seen her at WMABA meetings. You’ve seen her at SEMA. You’ve seenher in these pages. She has been an integral part of Hammer & Dolly for nearly a decadeand is as responsible as anyone for the success we have enjoyed since we began publish-ing H&D in 2007. Now she gets the chance to make Hammer & Dolly even better, as weadapt and change to face the future of automotive repair trade publishing along with theindustry we represent.
It’s things like this that quell the fear of change in me. In fact, it makes it pretty damnexciting. Embrace it. H&D
©thin
ksto
ckph
oto.
com
/rafa
l_olec
hows
ki
49September 2014
50 September 2014
ADVERTISERS’INDEX
Alexander & Cleaver............................16Alexandria Toyota ................................42All Foreign Used Auto..........................25American Honda Motor Co. ................4Audi Group ..........................................11Axalta Coating Systems ......................OBCBMW Group ........................................26-27BMW of Bel Air ....................................IBCBMW of Fairfax....................................3BMW of Rockville ................................IBCBMW of Towson ..................................IBCCAPA ..................................................8Car-part.com........................................46Chesapeake Automotive Equipment ..50Empire Auto Parts................................17Ford Group ..........................................15Future Cure ........................................43GM Parts Group ..................................47Hendrick Honda ..................................46Honda Group ......................................14Hyundai Group ....................................19Koons Ford ..........................................37Malloy Auto Group ..............................9Mazda Group ......................................21MINI Group ..........................................29MINI of Baltimore County ....................IBCMitsubishi Group..................................36Mopar Group ........................................18Nissan Group ......................................45NORTHEAST® 2015 ..........................6O’Donnell Honda ................................25Packer Norris Parts ............................13Porsche Group ....................................32PPG ....................................................IFCP&L Consultants..................................37Russel Toyota ......................................17Safety Regulations ..............................42Sherwin-Williams ................................7Steck Manufacturing............................50Subaru Group......................................23Toyota Group ......................................33VW Group............................................49
51September 2014
