Mechanical Labor Rate SurveySkills USA 2014 at Camp Withycombe

Meet Jim Moore, Third Generation, Baxter Auto Parts

Jim Moore, NATA Board Member

AUTO OUTLOOK ARTICLES IN THIS ISSUENATA - AUTO OUTLOOK STAFF

May | June | July 2014

NATA Staff

NATA’s Executive DirectorBarbara Crest barbara@aboutnata.org

Insurance SpecialistCathi Webb cathi@aboutnata.org Office ManagerLaurie Kolar laurie@aboutnata.org

Contributing AuthorJohn Yoswick

Contributing PhotographerJulie Almquist

EditorBarbara Crest

Graphic DesignerJulie Almquist, www.AlmquistProductions.com

Mail editorial news, notices and correspondence to:NATA Administrative Office:7931 NE Halsey St., Suite 212, Portland, OR 97213

Article and Advertisement Deadlines:Jan. 10 for the February NATA Auto OutlookApr. 10 for the May NATA Auto OutlookJuly 10 for the August NATA Auto OutlookOct. 10 for the November NATA Auto OutlookCopyright 2014 Northwest Automotive Trades Association All rights reserved. This material may be reprinted only with the expressed written permission of NATA.

Administrative Office: 7931 NE Halsey St. Suite 212, Portland, OR 97213

1.800.730.7282 Fax: 503-253-9890503.253.9898 www.facebook.com/nwautotrades

www.aboutNATA.org

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AUTO OUTLOOK INFORMATION

Letter from the Executive Director

Performance Warehouse Trade Show

Mechanical Labor Rate Survey 2014

Meet Jim Moore, Third Generation, Baxter Auto Parts

Auto Care News for the Northwest

New NATA Members & Associate Members Skills USA 2014 at Camp Withycombe

Vehicle Telematics

Preparing (even years prior!) to Sell Your Business

Ross Bradshaw, PresidentPortland Transmission WarehousePortland, Ore. Mary Ann Trout, Vice PresidentHillsboro Auto WreckingHillsboro, Ore. Jim Moore, SecretaryBaxter Auto PartsOregon, Northern California Jake Hammer, TreasurerEverett Street AutoworksPortland, Ore.

General Directors: Bob AndersonAJ’s Auto RepairSalem, Ore.

Scott AslaS & S Auto PartsLaPine, Ore. Rick FieldSalem TransmissionSalem, Ore. Jerry GeiszlerJerry’s Custom PaintGresham, Ore. Monte ReedBlue Mountain Auto PartsLaGrande, Ore. Ron ReichenPrecision Body & PaintPortland and Bend, Ore. Catherine SkiensRGS Auto and MarineAlbany, Ore.

NATA Board Members, 2014

back cover

The May 2014 issue of Parts & People (North-west) features two headlines above the fold on their front page: “Toyota Embrace of J-2534 Paying Off”, then “Courts Consider Lawsuits Related to non-OEM Parts and Collision Shop-Insurer Disputes.”

Northwest Automotive Trades Association finds ourselves in step with these headlines. For instance, In 2011 NATA hosted a “Right to Repair” technology night for our members. Brian Herron, Drew Technologies, demonstrated the J-2534 scan interface tool, at the heart of an initiative in Massachusetts called “Motor Vehicle Owners’ Right to Repair” which was enacted in that state in 2013.

Now a Memorandum of Understanding (MOU) for all 50 states, automakers and repair shops have agreed to adopt the Massachusetts law as a national standard. The law requires automakers to make available to repair shops the same vehicle repair information they give to dealers. It allows repair shops to purchase that data with an ordinary computer over a standardized, Internet-based service, and requires automakers to offer a nonproprietary interface for diagnosing problems with vehicles, starting in the 2018 model year.The NATA Board voted unanimously, twice, to support “Right to Repair,” and worked closely with the national association, AAIA, now the Auto Care Association to bring the initiative home.

Describing efforts to recover some costs for collision repairers in the US, this February 2014, Mississippi attorney John Eaves, Jr. and John Mosley, Director, Mississippi Autobody Association, visited with our members in Oregon about how they could be paid for all performed procedures both past and future based on Oregon’s state statuettes. To see a clip of this meeting with the two Johns, go to the NATA website www.aboutnata.org, click on the U-Tube icon in the upper right corner, then open “NATA Presents: Collision Repair.” If you would like to get involved, contact information will appear at the end of the video.

NATA is there to protect our members by keeping in touch with the latest news and activities of the day, the week, and the year!

AUTO OUTLOOK n Volume 26 May I June I July 2014 n 2

LETTER FROM THE EXECUTIVE DIRECTOR

NATA Executive DirectorBarbara Crest

Dozens of collision shops, vendors and students participated in an open house at Portland Community College’s recently-revamped 17,000 square foot collision repair training facility in March. The event helped introduce the program to potential students, and helped bring current students and shops seeking new employees together.

NATA In Step with National Auto News

n AUTO OUTLOOK n Volume 26 May I June I July 20143

Performance Warehouse Trade Show

The annual Performance Warehouse Tradeshow was held on April 26 & 27, 2014. Called “Come Catch the Big One,” the Hillsboro, Ore. show featured special discounts, vendor booths and displays of the latest in automotive parts and accessories.

AUTO OUTLOOK n Volume 26 May I June I July 2014 n 4

In the winter of 2014, the Northwest Automotive Trades Association (NATA) distributed a rate survey to more than 1,500 shops throughout Oregon, both members and non-members of the association. About 100 shops from around the state responded. The average size of the shop’s responded was fairly similar statewide. Most had 7-9 bays, 3-5 technicians and 2-3 people working in the office.

Some of the findings of this year’s survey included:

• The general shop labor rate statewide is about $90, but Portland shops tended to have labor rates about $10 more per hour than shops outside of the Portland area. The lowest rate around the state was $65-$70. About 1 in 8 of all shops had a labor rate above $100; all of these were in the Portland area. The most common labor rate charged in Portland was $95 (charged by more than 11 percent of responding shops).

• Shops in Portland and the Willamette Valley tend to charge more than there general labor rate for diagnostic work; elsewhere in the state, shops tend to charge less than their general labor rate for diagnostic work. There is even more range in diagnostic rates shop to shop, from a low statewide of $35 to a high of $120 per hour.

• Shops in most markets charge about $8 more per labor hour for truck or RV work than the shop’s general labor rate.

• There is significant variance in how much shops mark- up prices on parts. In Portland and the Willamette Valley, shops typically charge a customer about $183 for an aftermarket part that costs the shop $100. But shops in Southern Oregon on average are more than doubling the cost of the part, and shops on the coast and in rural Northeast Oregon are charging less than in other parts of the state. There is less variance market-to-market on OEM parts, but a $100 used part is marked up to an average of $177 in Southern Oregon but only to $134 in Northeast Oregon.

• Sublet items are marked up somewhat more in Portland and Eugene-Springfield-Albany-Corvallis than they are elsewhere in the state.

• Of shops charging a flat fee for an oil change, the statewide average was $31.20; the average was slightly higher outside of Portland and the Willamette Valley.

• Labor rates in Portland are up just 3.3 percent over what a similar survey found in 2010. Most of that growth occurred prior to 2012. The average labor rate in Portland was up just 31 cents in 2014 compared to two years earlier, an increase of just one-third of 1 percent.

Mechanical Labor Rate Survey 2014

GreaterPortland

Area

Mid-Valley Area

Including Salem,McMinnville

Southern OregonMedford, Kalamath Falls,

Grants Pass, Lakeview

StatewideNATA 2014 Mechanical Labor Rate Survey

Eugene Corvallis AreaIncludes Springfield

and Albany

Oregon Coast

Northeast Oregon

Includes PendletonJohn Day Baker City

Mechanical Labor Rate Survey: In the winter of 2014, the Northwest Automotive Trades Association (NATA) distributed a rate survey to more than 1,500 shops throughout Oregon, both members and non-members of the association. Here are the findings on a market area basis.

No. of participating businesses: 64 7 6 7 6 4 96

Average number of bays 8 8 9 9 7 7 8

Average number of technicians 3 3 4 5 5 4 4

Average number of office staff 2 2 3 2 3 2 2

Average number of other staff 1 2 0 2 2 3 1

Shops were asked: If selling a part (or a sublet service) that cost you $100, how much do you charge the customer?

Aftermarket Parts $183.56 $181.73 $185.70 $213.00 $175.33 $153.42 $184.15

OEM/Dealer Parts $149.81 $159.73 $128.75 $144.25 $146.50 $139.67 $148.13

Used Parts $154.18 $166.67 $173.13 $177.00 $155.00 $134.75 $155.69

Sublet $133.76 $152.00 $123.33 $125.00 $125.50 $120.00 $134.77

Continued on page 7.

In the BeginningThe history of Baxter Auto Parts goes back to Chehalis, Washington before World War II. At the outbreak of the war Ray Baxter Sr. and his wife Wilma Baxter relocated to Portland to build Liberty Ships. After a few years of working in the shipyard and no new cars being built in Detroit, Ray convinced the government his skills would better serve the country selling auto parts and running their machine shop in Portland. Ray was then able to return to auto parts along side his wife Wilma.

It’s All in the FamilyBaxter Auto Parts was started in 1936 and continues today as an Oregon family-owned business. The second generation came along and ran Baxter Auto Parts until recently. The reigns have now been handed over to the third generation of Baxter’s, which includes Jim, his siblings, and cousins.

Change is integral to running the business in today’s world. Through the proliferation of parts and the complexity of running a business with a growing inventory, Baxter Auto Parts focuses on stocking the right parts based on antici-pated consumer demand. Jim explained that it used to be easier when a customer needed parts for a Chevy V-8, the salesperson knew the numbers in his head. If he didn’t he went to the books to look it up. Today there are so many different brands of vehicles as well as more expensive and complex parts. It’s a changed business. Electronic catalog-ing is continuing to replace the books and inventory optimi-zation has become an integral part of the business.

Business in the Second Decade of 2000Baxter works to have its massive inventory closer to the customer. Delivery drivers hit the stores in the Portland market eight times in a day. Their 150,000 square foot warehouse in Hillsboro, Oregon, has 143,000 different part numbers. Getting the exposure of this inventory to the installer market they feel is critical for servicing customers. In addition to the warehouse in Portland they have facilities in Bend, Medford, Tacoma and Kennewick serving as hubs to support these outlying markets.

Performance Warehouse (PW) incorporated in 1969 as a wholesale establishment to enable their three existing retail stores of “Baxter Auto Parts, Inc.” to compete on speed and performance lines. As the stores grew so did PW. Today PW is a member of the Aftermarket Alliance and markets under the name Auto Value. Auto Value gives them the horsepower needed to compete in today’s extremely competitive environment. They are one of just a few warehouses carrying hard parts, as well as speed, per-formance, truck and accessory lines. PW provides nightly delivery service to the Canadian border to the north, Northern California to the south, and into Western Montana and Idaho.

n AUTO OUTLOOK n Volume 26 May I June I July 20145

Meet Jim Moore, Third Generation, Baxter Auto Parts

Jim Moore Profile:Younger Years: a Portland native, born at Legacy Emanuel Hospital, grew up in NoPo’s (North Port-land’s) Mock’s Crest working class neighborhood near Columbia Park and the University of Portland.

Education: George Fox University B.S. Business, Benson Polytechnic High School Employment: Runs Baxter Auto Parts with 3rd generation of family. His travel territory has 37 stores, which extends from Colusa, California up to Port Angeles, Washington and east as far as La Grande, Oregon and all parts in between.

Mentors: Many mentors including his parents, brothers, Uncle Skip Baxter, Grandma Baxter as well as many employees and customers. Jim’s mother is a second generation Baxter and is semi-retiring this year.

Favorite Author: John Nance, because Jim likes aviation stories (he has his private pilot’s license but hasn’t used it much, yet!)

Hobbies: Family activities, traveling,golf and skiing

Family: wife of 13 years, son (11) and daughter (9). Son plays lacrosse, is in Boy Scouts, swimming, and interested in scuba diving. Daughter plays lacrosse, is a Brownie Scout and is very artistic.

Favorite Legislation: Right to Repair bill passed in Massachusetts in 2013, now MOU throughout the United States with the Alliance of Automotive Manufacturers and the Global Alliance of Automo-tive Manufacturers.

Automotive Education & NATAJim bemoans the loss of automotive programs in Oregon’s high schools and community colleges. There is less training and exposure people can receive, and it robs the industry of those potential customers and employees. “Our business has been built by great people who love cars. Today we are work-ing to educate our people more than ever before”, he said.

One of his concerns is the growing regulatory restrictions imposed on the industry, and applauds Northwest Automo-tive Trades Association for its proactive approach to knowing about, changing, or stopping legislation that won’t work for the industry. “Along with the Auto Care Association (formerly AAIA), these associations are really important to looking out for the welfare of the aftermarket”, he said.

However, consumers are getting less involved in cars than they did in the past. “The Aftermarket has abandoned the high ground and lost traction delivering the message about the quality of today’s parts,” said Jim.

The Baxter Family Is Securely in the Driver’s SeatThe future of Baxter Auto Parts is great because they know the automotive sector is growing and doesn’t see America’s love affair with the car going away any time soon. Currently Baxter business consists of about 50% DIY and 50% mechanical shops. He sees the DIY market growing along with repair shops.

The 4th generation of Baxter is coming up, the oldest being in their early 20’s and the youngest is nine years old. The parents of this generation of Baxter’s encourage them to get experience outside of the Baxter Auto Parts business by getting their education and going to work at other jobs. What they will bring back to the Baxter organization will help them run the business for the better in the upcoming decades.

“This industry has been great to our family”, said Jim. In the early days, the Baxter family belonged to Oregon Auto-motive Parts Association, whose membership only included other members in the same area of the industry. Now, NATA is a much more diverse association with a complimentary employee base business by business. “We can sell to each other, and it is a symbiotic relationship we have with our members. The complexity of membership in NATA allows us to work to the betterment of the industry specialty by specialty”. Jim finishes, “It is important to be involved in a group that is out for the best interests of our industry.”

AUTO OUTLOOK n Volume 26 May I June I July 2014 n 6

n AUTO OUTLOOK n Volume 26 May I June I July 20147

New Group Aimed at Future Industry Execs Under Age 40The Auto Care Association (formerly AAIA) has created the “Young Auto Care Network Group” for future executive-level staffers of the auto care industry seeking industry connections and collaboration. YANG’s first event is a workshop being held on Wednesday, Sept. 3 at the Westin Boston Waterfront in Boston, Mass. as part of Auto Care’s Fall Leadership Days. YANG will be offering scholarships to deserving young professionals to attend the workshop.

All professionals in the auto care industry under the age of 40 are eligible to join. Membership is free and open to Auto Care members and non-members. For an application and more information, visit http://tinyurl.com/n5kw264 or contact Courtney Carbone at (240) 333-1067 or courtney.carbone@aftermarket.org.

ASE Now Offers Online Introductory CourseThe National Institute for Automotive Service Excellence (ASE) has launched an 4-part online learning program, “Introduction to Automobile Service.” The program focuses on awareness of entry-level tasks related to basic automo-bile service. An embedded glossary and safety zone section also help to promote proper safety measures. The program includes quizzes to measure the knowledge necessary to perform basic tasks. The target audience for this program includes prospective and entry-level personnel.

For more information, visit www.ASEcampus.com.

Auto Care News for the Northwest

GreaterPortland

Area

Mid-Valley Area

Including Salem,McMinnville

Southern OregonMedford, Kalamath Falls,

Grants Pass, Lakeview

StatewideNATA 2014 Mechanical Labor Rate Survey

Eugene Corvallis AreaIncludes Springfield

and Albany

Oregon Coast

Northeast Oregon

Includes PendletonJohn Day Baker City

General Shop Labor Rate

High $119.00 $95.00 $98.95 $95.00 $98.00 $84.00 $119.00

Low $70.00 $70.00 $65.00 $75.00 $70.00 $70.00 $65.00

Average $93.20 $83.50 $98.95 $95.00 $98.00 $84.00 $119.00

Oil Change

Labor Rate Varies $55.18

Flat Fee $32.53 $31.32 $31.27 $33.28 $35.13 $31.20

Truck/RV Labor Rate $99.76 $95.63 $97.96 $85.00 $86.88 $85 $95.90

Diagnostic Labor Rate $96.71 $89.92 $86.97 $77.77 $66.67 $67.25 $90.93

Storage Fee (per day) $22.40 $13.33 $16.00 $18.33 $22.80 Varies $21.17

Hazardous Waste Disposal

Flat Fee $4.50 Varies Varies Varies Varies Varies $4.04

% of Labor 2.36%

Shop Supplies

Flat Fee $4.86 $4.26

% of Labor 5% Varies 3.88% Varies Varies 5.25%

Cap $31.22 $36.00 $26.50 $29.97

AUTO OUTLOOK n Volume 26 May I June I July 2014 n 8

Welcome New NATA Members!AM-PM Towing – Emergency Roadside Assistance and towing since 2004. They have 10 employees and an additional location in Redmond. 63066 Plateau Ct., Bend, OR 97701. 541-686-2915 www.tractowing.com

Cooke’s Brake Service – Auto repair specializing in brakes. They have been in business for 25 years and have three employees. 830 SE 46th Ave., Portland, OR 97215. 503-232-6440

Hillside Imports – Family-owned and operated since 1999, they service VW and Audi vehicles. 4402 SW Beaverton-Hillsdale Hwy, Portland, OR 97221.503-293-0146 www.hillsideimports.com

Irvine & Company LLC (Associate Member) – They are a growing, independent CPA firm located in Portland. They partner with automotive, manufacturing and retail businesses to provide accounting, tax and advisory solutions. 345 NE 102nd Ave, Portland, OR 97220. 503-252-8449 www.irvinecpas.com

McMinnville Auto Wreckers – An automotive recycler and dismantler, they also offer 24-hour tow and recovery. 13341 SE Old Station Rd., McMinnville, OR 97128. 503-835-2661 www.mcminnvilleautowreckers.biz

Mercedes-Benz & Smart of Portland – A franchised Mercedes Benz & Smart new car dealership in the business of selling new and used cars, parts, and automotive service. 1605 SW Naito Parkway, Portland, OR 97201. 503-228-8351 www.mercedesbenzportland.com

Thank You, Associate Members!

Advanced Employer Solutions Clay Bundy 2979 SE 75th Ave, Hillsboro, OR 97123. (503) 848-0588 admin@callaes.net www.pem-connectinc.com

ALLDATA Debbie Murray 9650 W. Taron Dr., Suite 100,Elk Grove, CA 95757. (800) 829-8727 dmurray@alldata.com www.alldata.com

American National Insurance Co. Melvin Young 4001 Main Street, Suite 314, Box 16, Vancouver, WA 98663. (503) 851-8657 melvin.young@american-national.comwww.anpac.com

Car-Part.com Roger Schroder 1980 Highland Pike, Ft. Wright, KY 41017. (859) 344-1925 (859) 344-1954tradeshows@car-part.com www.car-part.com

Demandforce Richard Berglund 22 4th Street, 12th Floor, San Francisco, CA 94103. (800) 246-9853 rberglund@demandforce.com www.demandforce.com

Hays Companies of Oregon Hamilton Barnes 5285 SW Meadows Rd., Suite 451, Lake Oswego, OR 97035 (503) 624-4750 hbarnes@hayscompanies.com www.hayscompanies.com

Irvine & Company LLC Nick Shepherd 345 NE 102nd Ave., Portland, OR 97220. (503) 252-8449 nicks@irvinecpas.com www.irvinecpas.com

Kaiser Permanente Joel Stephens 500 NE Multnomah Street, # 100, Portland, OR 97232. (503) 813-4630 Joel.D.Stephens@kp.org www.kp.org

Kukui Mike Giblin 300 Santana Row, Suite 400, San Jose, CA 95728. (877) 695-6008 mike@kukui.com www.kukui.com

LKQ Corporation Ray Colas 5975 North Federal Highway, Suite 130, Ft. Lauderdale, FL 33308. (954) 492-9092 rjcolas@lkqcorp.com www.lkqcorp.com

NACM of Oregon Clara Nemeth 7931 NE Halsey Street, Suite 103, Portland, OR 97213. (971) 230-1144 cnemeth@nacmoregon.org www.nacmoregon.org

Net Driven Jon Napoli 201 Lackawanna Ave, Suite 302, Scranton, PA 18503. (877) 860-2005 jnapoli@getnetdriven.com www.netdriven.com

Oregon Lien Service Cherise Gunter 14325 NE Sandy Blvd, P.O. Box 301159, Portland, OR 97294. (503) 233-3580 cherise@oregonlienservice.com www.oregonlienservice.com

Real Benefits Group Bob Kohnle 412 Jefferson Parkway #201, Lake Oswego, OR 97035. (503) 710-1779 bk@realbenefitsgroup.com www.realbenefitsgroup.com

SAIF Corporation Pat Morrill 400 High St. SE, Salem, OR 97312. (503) 373-8827 patmor@saif.com www.saif.com

Superior Financial Services Todd Lazar 260 Newport Center Dr., #100, Newport Beach, CA 92660. (888) 737-7762 todd@sfsprocessing.com www.qualifiedprocessing.com

Willamette Valley Benefits Tressa Girt 6400 SE Lake Rd., # 155, Milwaukie, OR 97222. (503) 810-2500 tressagirt@comcast.net www.wvbenefits.com

Members, Northwest Automotive Trades Association

n AUTO OUTLOOK n Volume 26 May I June I July 20149

Camp Withycombe, located in Happy Valley, was originally established as Camp Benson after Governor Frank Benson, but was later renamed Camp Withycombe during World War I for Governor James Withycombe. In 1909 it was a training camp and headquarters for the National Guard.

With a history as colorful as our state’s military, the 2014 Skills USA competition included judges from the National Guard along with skilled Oregon mechanics. Together, they put high school and community college automotive students through their paces to place First, Second and Third in the competition.

Volunteers included members of Oregon’s National Guard, Tonia Haney, Clark College, Scott LaPlante, Sherwood Auto Repair, and Michael Launder, Tom Dwyer Automotive, and Margaret Ragan.

THE WINNERS: Automotive Service, High School Gold: Mountain View - Cameron Petrie Silver: Mountain View, John Schultz Bronze: Benson, Kurt Wilke

Automotive Service, Community College Gold: Umpqua Community College, Anthony Dacosta Silver: Umpqua Community College, Erin McCall-O’Dell

We wish to thank the people and the companies who do-nated gifts to the students who competed this year:

Multnomah Hot Rod Council Clackamas Auto Parts Portland Transmission Warehouse NW Performance Vic’s Auto Center Baxter Auto Parts Automotive Products Todd’s Automotive Portland Community College Northwest Automotive Trades Association

“The Skills USA competition for 2015 will also be held at Camp Withycombe in Clackamas County. For more informa-tion, visit their website at http://skillsusaoregon.org or email teresa@skillsusaoregon.org. This is a VERY important event for automotive students who want to show their knowledge and mechanical skills troubleshooting, diagnos-ing and fixing automobiles. Let’s help get these students to this fun and informative show of their mechanical abilities. See you next year!”

Skills USA 2014 at Camp Withycombe

Fast UndercarMac’s Radiator CarquestSnapOn ToolsRegenceLifewiseKaiser PermanenteChilton

AUTO OUTLOOK n Volume 26 May I June I July 2014 n 10

Similar to homes and businesses, wireless technology is quickly becoming an important part of the “smart” connected vehicle. This “telematics” technology provides motorists with remote access to a wide range of entertain-ment and information services that includes navigation, traffic, email, web browsing, social media and travel assistance. Telematics will likely provide significant safety benefits through use of technology that enables vehicles to communicate with each other and with the roadway network, and quickly communicate the need for emergency or breakdown assistance to authorities.

Telematics also plays an important role in the repair and service of motor vehicles. This wireless technology permits remote monitoring of the health and safety of a vehicle’s systems both on the road and in the garage. A vehicle’s telematics system has the ability to wirelessly receive services and software updates as well as send informa-tion regarding a vehicle’s operational status in real time. Telematics permits a vehicle to alert a driver or car owner that maintenance is required, whether it is an oil change or a new timing belt, before a failure even occurs. It can help the owner make an appointment at a service facil-ity or even communicate the data directly to the service provider.

The promise of telematics is that it will make car owners safer, more productive and lowers the cost of vehicle own-ership. Rather than guess at what a “check engine” light means, the telematics system can send diagnostic infor-mation to a technician who can immediately diagnose the problem and advise the car owner on their options. Smart phones can interface with cars to unlock doors, check battery life or inform the owner of a leaky tire. Parents can remotely monitor their children’s driving habits. Stolen cars can be tracked and disabled by their owners or the police. However, all these applications create certain challenges when it comes to security, privacy and the right for consumers to select their vehicle service providers.

While the development of vehicle telematics presents clear benefits for the motoring public, it also raises

significant privacy concerns for car owners and could impact the availability of competitive vehicle repair. The car owner has no control over where the information generated by their vehicle is being sent. All information generated by a vehicle’s telematics system, including repair information and GPS data, is sent directly to the manufacturer, providing them with the opportunity to direct service business to their franchised dealers. In most cases, car owners do not have the option of choosing where any of the information from their vehicle is transmitted, nor do they have a clear means to turn off the transmission of data. Depriving drivers of choice in service and degrading competition in auto repair threatens to raise costs for consumers and threaten the viability of the independent auto care industry, which is an important cog in the American economy.

It is critical that once a vehicle is purchased by an individ-ual, the car owner, not the car company, should determine where the information from those systems is sent. Such action is needed to uphold consumers’ expectation of privacy and choice regarding their personal data and to maintain a healthy competitive landscape for vehicle repair.

Therefore, requirements must be put in place that:

• Clearly define that the information extracted by a telematics system is the property of the car owner and cannot be accessed by others, including the manufacturer of the vehicle, without prior approval;

• Require car owner consent and choice on where information from their vehicle is transmitted so as to ensure consumer control over the privacy and use of personal data generated by a vehicle;

• Mandate that new car manufacturers build telematics systems with the capability to communicate data using a standardized interface such that the information can be read and used by the car owner as well as which ever service provide the vehicle owner so chooses; and,

• A vehicle’s telematics system should be open to free competition and be accessible to all independent providers selected by consumers in a non- discriminatory manner.

Today, when vehicles need repair, their owners often have limited knowledge as to what exactly is wrong and what options are available for repair. When given private access to a telematics system, the consumer can choose to send data from their vehicle to a technician or an automated web site that can provide insights and options, before bringing the vehicle in for service. Now, few consumers have competitive choices with their telematics systems and, when making an initial purchase of vehicle or other electronic device, are often left with nothing more than a “take or leave it” option. In order for this country to fully benefit from the great promise of this technology, it is imperative we empower the consumer.

It is their car, their data, their choice!

Vehicle Telematics Protecting consumer privacy and access to a competitive vehicle repair market

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Administrative Office: 7931 NE Halsey St. Suite 212, Portland, OR 97213

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www.aboutNATA.org

Getting the most for your business – and having the sale go as smoothly as possible – means preparing even years in ad-vance. Here is advice from some former shop owners who have sold their business about what they think shop owners should do even if exiting the business isn’t an immediate goal.

Make it a business deal – even if it’s among family. Mike Anderson, who sold his two Virginia shops in 2010, said you have to look at the ability of the buyer to pay off the business, even if that buyer is a son or daughter.

“Too often I’ve seen par-ents sell a business to their children after they’ve taught them how to manage a body shop, but not how to manage cash flow, how to build a budget, etc.” Anderson said. “The kids run the business into the ground when that’s what mom and dad are counting on as their nest egg and they are left with nothing. If I were selling to a son or daughter or relative, I would have in the agreement that I have the right to review the financials every quarter. That’s no different than a bank providing financ-ing. They reserve the right to look at those financials any time.”

Separate the business from the property. Many buyers will want to acquire only the business and just lease the building and property. This can be a great source of revenue for the seller who owns both, though how the sale price and lease terms are negotiated can also impact the tax

burden for the seller. But all of this entails separating the business and property from each other, something that should be done years ahead of a sale, the former shop owners said.

Always be truthful in your disclosures, but also prudent. Anderson cautioned against revealing too much information about your business – your sources of work or discounts offered, for example – to a potential buyer too early in the process.

“I’ve seen (buyers) come in to buy a shop from certain individuals who are too free with their information,”

Anderson said. “The deal falls through and then those other people open a shop right next door. It’s not a done deal until the money is in the bank.”

“Remember that it’s a negotiation until the very last day,” agreed Pat O’Neill, a former owner of seven 9-1-1 Collision Centers in Arizona and Nevada, who sold in 2011. — John Yoswick

Preparing (even years prior!) to Sell Your Business