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Letter to the Editor
This article originally appeared in the July 2004 Issue of INSIGHT
©2004 Collision Repair Industry INSIGHT All Rights Reserved
Boyd Group Rolls Out Gerber Brand to U.S. Operations
Keystone Automotive Industries Reports Banner Q4
ABRA Adds Two Colorado Locations and a Minnesota Franchise
100th Congressman Sponsors Right to Repair Act Legislation
3M Introduces Paintable Film for Automotive Masking
Arizona Collision Craftsmen's Association Reports Passage of HB2468 Anti-Steering Legislation
AAIA Says U.S. Motor Vehicle Aftermarket Increased 3% in 2003
Ohio Casualty Group Selects LYNX Services for Repair Management Services
Local Governments Have Access to CCAR S/P2 Online Training for Vehicle Maintenance and Repair
NABC Takes Issue with Carmax Commercial
Chrysler Group's Chelsea Proving Grounds Celebrates 50 Years of Vehicle Testing
BASF Coating de Mexico Wins Volkswagen Group Award 2004
The Blend Stops Here: SCRS Statement on the Blend Panel Issue
Collision Repair Industry Gets an Inside Look at IIHS Vehicle Crash Testing
INDUSTRY UPDATE
Automaker efforts to limit repairs of some of their vehicles to shops that participate in the OEM's shop certification program drew some fire from attendees at the Collision Industry Conference (CIC).
The collision repair shop certification programs vary widely among the OEMs. Toyota and Lexus, for example, certify only dealership body shops, although Toyota's Roger Foss said Toyota is working on requirements for independent shops to join the program, a process likely to begin by late next year.
Audi in 1996 launched its certification program, which for now involves only repairs made to its all-aluminum A8 model, in 25 markets in North America. (A statement from Audi read at CIC indicated the company is in the early stages of establishing a broader collision repair certification program for both dealer and independent shops.) About half of those A8-certified locations can conduct full structural repairs on the vehicle, while the rest are limited to cosmetic repairs. Audi said it will soon certify 8-10 facilities - including some from those doing only cosmetic repairs - to conduct structural repairs. All technician training for the program is being done by I-CAR at its technical center in Wisconsin, a fact that raised the ire of Sheila Loftus of the Washington (D.C.) Metropol-itan Auto Body Association, a founding member of I-CAR.
"You're using I-CAR re-sources to favor dealer networks as opposed to independent repairers," Loftus said to I-CAR's Rick Tuuri, who was moderating the panel discussion. "There's a 'barrier to entry' to get that training."
Tuuri, I-CAR's director of business development and field operations, said that I-CAR classes remain open to everyone in the industry, but that some manufacturers like Audi have outsourced development of their collision repair training to I-CAR.
"An I-CAR training program is, was and always will be available to the industry," Tuuri said. "This is not an I-CAR program that's only available to the manufacturer. This is I-CAR developing training or repair procedures specific to a make and model for a manufacturer."
But a bigger concern for some shop owners at CIC was the fact that some automakers limit sale of certain replacement parts to its certified shops, a practice those shops say borders on restraint of trade.
Bob Sherry, supervisor of collision and wholesale parts for Mercedes-Benz, said his company now has 62 certified collision repair facilities - both dealership and independent shops - in the United States for its CL model and plans to add 40 more by year's end. He said the company doesn't restrict sales of any parts to just those shops.
"However there is a flag process that if one of, I think, six structural items for the CL is ordered, it sets off a chain of events and our field team is notified," Sherry said. "At which time they would speak to the customer and recommend that the car be repaired at a trained and authorized facility."
Bill Larkin, service equipment and technical publications manager for Jaguar and Land Rover, said his company has a similar process for the sale of certain structural parts to shops that are not among its 200 certified Jaguar shops.
Kelly Swenson, owner of Carty's Collision Center in Ontario, Calif., blasted this type of program, saying it may actually decrease the chances that proper repairs are made.
"I think you're going to get shops that are afraid to order those parts because they don't want the car taken out of their facility or steered away from them, so maybe they end up repairing the car improperly just because of the way you are setting up your system," Swenson said. "So you're actually shooting yourselves in the foot and doing the industry and your customer a disservice because you're steering work away from the shops that are trying to do the right thing. So I'd ask you to please reevaluate and make your training much more available."
Gary Wano, an Oklahoma shop owner, said another downside of the programs is that although the aluminum repair work may be similar among auto makes, BMW, Jaguar and Mercedes-Benz each requires different brands of tools and equipment to become certified.
The automakers defended their certification programs, saying the uncommon repair practices the vehicles require - and the investment the vehicle-owners have made in the cars - justify efforts to make sure repairs are made by shops with the needed tools and training.
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The Boyd Group Income Fund has announced that, as part of its plan to leverage the strategic value of its recently acquired Gerber Auto Collision & Glass operations, it will roll out the "Gerber Collision & Glass" brand to all its U.S. operations.
"The 67 year old Gerber brand has strong recognition both nationally and regionally with our U.S. insurance company customers, and use of the Gerber name in all of our markets will better position us to leverage and extend our customer relationships from market to market," said Terry Smith, President and CEO of Boyd. "The Gerber name is also recognized nationally in the auto glass industry, which also fits well with our plan to extend auto glass services to all of our U.S. operations."
The Gerber name will be rolled out on a market-by-market basis, beginning with Boyd's Georgia operations. With the introduction of the Gerber name, most facilities will be dual branded with existing business names for a transitional period.
Boyd has no plans to extend the Gerber name to its Canadian operations, and it will therefore continue to operate under the "Boyd Autobody & Glass" name in Manitoba, Saskatchewan and British Columbia, and under the "Service Collision Repair Centre" name in Alberta.
With the addition of the 16 Gerber facilities, Boyd Group now operates 82 corporate locations. It is the largest operator of collision repair shops in Canada and among the largest in North America. In addition to its corporate locations, Boyd Group also has 10 franchised locations operating under its trade names.
Keystone Automotive Industries, Inc. has reported record results for its fourth quarter and fiscal year ended March 26, 2004, surpassing the $500 million sales milestone for the year.
Net income for the fiscal fourth quarter climbed 28.5 percent to $6.3 million, or $0.41 per diluted share, from $4.9 million, or $0.33 per diluted share, a year ago. Net sales for the fiscal fourth quarter increased 14 percent to a record $140.1 million compared with $122.7 million last year.
For the full fiscal year, net income increased 20.2 percent to $17.7 million, or $1.16 per diluted share, from $14.7 million, or $0.99 per diluted share, a year earlier. Net sales for the same period climbed 14 percent to $501.1 million from $439.1 million in fiscal 2003.
"Results for fiscal 2004 represent the third consecutive year of strong revenue, cash flow and earnings growth. This solid performance is the result of increased utilization of aftermarket collision replacement parts by insurance companies," said Charles J. Hogarty, president and chief executive officer.
He emphasized the favorable economics of the company's aftermarket parts compared with original equipment parts and stated that Keystone's quality assurance programs are important factors driving the acceptance of the company's products by the insurance industry, body shops and consumers.
Hogarty noted that same store sales for the fourth quarter and fiscal year increased approximately seven percent and nine percent, respectively, compared with the same periods a year ago. Gross profit as a percentage of sales was 44.0 percent for the fourth quarter and 43.7 percent for the full year, primarily as a result of product mix and pricing, compared with 43.5 percent and 43.5 percent in the prior year, respectively.
He stressed Keystone's ongoing strategy to continue strengthening its distribution capabilities, having completed six acquisitions during fiscal 2004, including two acquisitions in Canada, and the establishment of two Greenfield operations.
Hogarty noted that the company's strong financial condition will enable it to continue to pursue strategic acquisitions and Greenfield opportunities as they arise.
To date, the company has converted 85 sites to its new management information system and expects to convert the remaining 56 sites (excluding only sites in Canada and certain recently acquired sites) by November.
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 125 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada.
ABRA Auto Body & Glass, the Minneapolis-based damaged vehicle repair company, has announced the opening of a repair center, in Red Wing, MN. The franchise was awarded to Harold Kracht.
Mark Wahlin, Director of Franchising, commented, “I have been a friend of Harold’s for years, and therefore know that his work ethics and integrity mirror ABRA’s values. After completing a successful 23-year career as an engineer with 3M, I knew that Harold had the desire to operate his own company. When the opportunity arose for a franchise in Red Wing, we knew that Harold and ABRA would be the perfect fit.”
Commenting on his decision to open an ABRA franchise, Kracht said, “I’ve been aware of ABRA’s track record for years, and have always been impressed with their commitment to superior service and excellent craftsmanship. I know that the procedures, training, and marketing support provided by their corporate staff will allow us to deliver industry-leading levels of efficiency and quality to the Red Wing market.”
ABRA has also opened two newly-constructed repair centers in Colorado. The centers are located in Highlands Ranch and Colorado Springs, CO.
“ABRA has been operating in Colorado since late 1997 when we started with two acquired repair centers,” stated Tim Adelmann, ABRA’s Chief Operating Officer. “Throughout this time we have developed close relationships with our insurance partners and their insureds which has lead to ABRA now owning and operating eleven centers in the Denver/Colorado Springs markets. ABRA is committed to expansion in Colorado, and these two new locations will continue to provide our customers with the best possible collision repair experience.”
The Highlands Ranch and Colorado Springs locations are examples of ABRA’s prototype centers. Both consist of 18,000 square feet, and utilize a Kansas Jack rack, a Shark measuring system, and USI Italia paint booth. When fully staffed they will each employ a general manager, two estimators, two customer service reps, a parts manager, a production manager, four body technicians with three apprentices, two painters with two assistants and two detailers.
According to David Call, Vice President ABRA-Colorado, “The entire ABRA-Colorado team is extremely excited about these two new locations. By opening these repair centers we are addressing the needs of our insurance partners who saw a need for high-quality repair centers in these two areas. We look forward to fulfilling their needs with these two facilities, as well as with new centers to come.”
Started with one repair center in 1984, ABRA has grown to eighty-eight facilities in ten states.
Rep. Rick Larsen, D-Wash., this week became the 100th member of Congress to sign on as a sponsor of the Motor Vehicle Owners' Right to Repair Act (H.R. 2735), the Automotive Aftermarket Industry Association (AAIA) has announced.
"This is an important and exciting milestone in the battle to enact this legislation so critical to the future competitiveness of the independent aftermarket," said Kathleen Schmatz, AAIA president and CEO. "We must guarantee that independents have full access to the information and tools necessary to compete with the new car dealers."
The Motor Vehicle Owners' Right to Repair Act prevents vehicle manufacturers and others from unfairly restricting access to the information and tools necessary to accurately diagnose, repair, re-program or install automotive replacement parts. The act would require that the Federal Trade Commission promulgate and enforce regulations that ensure competition in the vehicle repair business.
"While 100 sponsors is encouraging, we need to keep up the pressure at both the national and grassroots level to obtain more congressional sponsors," said Schmatz. "We have worked non-stop with the coalition of supporters since introducing the initial legislation in August 2001."
National organizations that support the Right to Repair Act include:
- Alliance of Automotive Service Providers
- Alliance of State Auto-motive Aftermarket Associations
- American Automobile Association
- Associated Locksmiths of America
- Automotive Engine Rebuilders Association
- Automotive Oil Change Association
- Automotive Parts Rebuild-ers Association
- Automotive Warehouse Distributors Association
- Coalition for Auto Repair Equality
- Consumers Union
- Mobile Enhancement Retailers Association
- National Federation of Independent Businesses
- Service Station Dealers of America
- The 60 Plus Association
- Tire Industry Association.
Reps. Joe Barton, R-Texas, and Edolphus Towns, D-N.Y., introduced H.R. 2735 in the U.S. House of Representatives on July 17, 2003. The bill was referred to the House Energy and Commerce Committee and currently has 100 cosponsors. A Senate companion bill (S. 2138) was introduced on Feb. 26, 2004 by Sen. Lindsey Graham, R-S.C., and referred to the Senate Committee on Com-merce, Science and Transportation for consideration.
3M Automotive Aftermarket Division has introduced a new paintable protective sheeting for automotive paint shops.
Durable, tear-resistant Overspray Protective Sheeting - Now Paintable, from 3M, is used to cover a vehicle in preparation for painting, and can be cut away and taped to expose the area to be painted without need for conventional masking paper around the critical edge.
Jerry J. Steinke, 3M Automotive Aftermarket Division marketing manager, explained that new Overspray Protective Sheeting from 3M can be applied by a single user, unfolding easily and yet clinging to the vehicle. All three film widths can be dispensed either horizontally or vertically using the protective sheeting masker from 3M.
"Body shop tests show that this new protective sheeting eliminates the cost of masking paper and cuts paint preparation time by up to half," Steinke said. "For example, based on average labor rates and material costs, a shop that paints 15 cars per week could potentially save up to $2,700 anually in labor and materials with Overspray Protective Sheeting - Now Paintable, from 3M."
This new 1/2-mil high density polyethylene 3M film is clear, tear resistant, and treated for improved paint overspray adhesion. It unfolds easily and clings to the vehicle surface. Three widths are available to suit the full range of vehicle sizes from compacts to pickups, SUVs and vans.
3M Overspray Protective Sheeting - Now Paintable is available through 3M aftermarket distributors.
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The Arizona Collision Craftsmen's Association (ACCA) heard from its legislative representative Barry Aarons, who has reported passage of HB2468 in Arizona. He wrote:
One of America’s founding fathers once noted that the legislative process is evolutionary, not revolutionary. In that he meant that issues need to be addressed over time and that those who are willing to achieve regular incremental gain will, in the long run, be most successful. That is probably the most succinct way to describe our efforts and successes in the 2004 regular session of the Arizona Legislature in this our real inaugural effort to seek legislative relief from the problems our industry faces in its relations with insurance companies....
Representative Clancy Jayne of Phoenix volunteered to introduce our legislation and did so as HB2298.... The House leadership indicated that they would not consider the legislation this session. We did not stop, however. We engaged our members and their employees in a powerful grass roots letter-writing campaign producing over 700 letters from individuals to their legislators. It had its impact – so much so that legislators were telling House leadership that they needed some legislative solution so that they could report back to constituents that they had listened to their concerns.
While the prospects of HB2298 dimmed, the possibility of finding another bill to use as a vehicle to address our issues emerged.... So if prohibition was not going to be a practicable solution at this time, then perhaps legitimate anti-steering provisions would be. Interestingly enough, when association members listed the most important issues they faced, prohibition of tied repair facilities was not in the top three while steering was almost a unanimous number one.
... When Representative Gary Pierce, the Chairman of the House Transportation Committee and a former auto dealer, joined the fight on our side, it became possible for anti-steering provisions to be crafted that would in fact have some meaning and some teeth.
... Pierce had language included in the bill to state, “If an insured or claimant selects a repair facility to repair the insured’s or claimant’s motor vehicle in which the insurer owns an interest in that repair facility, the adjuster for the motor vehicle shall not be employed by the repair facility or have any direct authority over that facility’s recommendations or decisions relating to the repair of the insured’s or claimant’s motor vehicle.”
He added that language and reporting language on to HB2468 in House Transportation Committee and that bill passed the House. The reporting language stated an insurance company that owned an interest in a tied repair facility had to file with the director of the department of insurance a statement delineating the number of motor vehicles repaired and the dollar values of those repairs in absolute numbers as a percentage of the total number of motor vehicles repaired. While these reports are confidential, ... legislators will have access enabling us to get the proper questions asked and answered at the legislative level.
Also of importance were the stiff penalties that were included in the House version and would later be amended so as to be enforceable by the Department of Insurance when Senate amendments were adopted. The penalties are drawn from the Fair Claims Practices Act which allows for fines on insurance companies for violations of up to $50,000.
The Senate amendments included the language “…A person in this state has the right to choose any repair facility for the repair of a motor vehicle loss. If an insurer provides information about a repair facility, the insurer shall inform the person of this right at the same time as making the recommendation or providing the information.”
The size of the U.S. motor vehicle aftermarket grew by three percent in 2003 to $244.6 billion, according to the "AAIA 2004/2005 Aftermarket Factbook," recently published by the Automotive Aftermarket Industry Association (AAIA).
"More registered vehicles, more licensed drivers, more miles traveled and an aging of the vehicle fleet all helped expand the domestic aftermarket," said Kathleen Schmatz, AAIA president and CEO. "This steady growth should be good news to investors, especially with forecasts calling for 3.5 percent increases in 2004 and 2005."
The recovering U.S. economy increased the pace of consolidation in the aftermarket after three years of declines in acquisitions, according to the Factbook. A total of 48 reported mergers and acquisitions occurred among aftermarket businesses in 2003, an increase of 9 percent.
The "2004/2005 Aftermarket Factbook" includes statistical tables, charts, analysis and trends in the U.S. and key international markets.
LYNX Services has become the exclusive national provider of automotive physical damage (APD) repair management services for Ohio Casualty Group. The LYNX managed repair services include the LYNX Select(tm) direct repair program (DRP), estimate auditing and rental car concierge.
"Our relationship with Ohio Casualty represents the commitment of both companies to provide the highest levels of customer service and consumer choice," said Bill Towler, assistant vice president of LYNX Services. "LYNX Services uses the latest Internet tools and the repair expertise of PPG Industries to fulfill that commitment."
LYNX Services connects Ohio Casualty adjusters and customers with a national selection of qualified repair shops via a Web-based portal. The repair facilities can use the estimating system of their choice.
"By teaming with LYNX Services for all our DRP repair management, Ohio Casualty can now offer our policyholders the best claims experience and a broader choice of quality LYNX Select repair providers," said Phil Horst, home office auto physical damage claims manager of Ohio Casualty.
Two of the national Environmental Compliance Assistance Centers established in cooperation with the U.S. Environmental Protection Agency are working together to provide city and county governments with online training in environmental and related safety concerns for their vehicle repair operations.
The Coordinating Committee For Automotive Repair (CCAR), which operates the “CCAR-GreenLink” center, announced that its “S/P2” online training in Safety and Pollution Prevention is now available to local governments through LGEAN, the Local Government Environmental Assist-ance Network.
LGEAN provides environmental management, planning, funding, and regulatory information for local government elected and appointed officials, managers and staff.
S/P2 is CCAR’s Internet-based training to address the key safety and pollution prevention issues faced by professionals working in automotive service and collision repair.
“Local governments must comply with the same EPA and OSHA requirements as private-sector automotive facilities,” said Andrew Seth, LGEAN’s director. “The online S/P2 training will provide cities and counties with a cost-effective means to meet environmental and safety standards.”
The following letter was sent to Joe Kunkel, Executive Vice President of Marketing & Strategy at Carmax, headquartered in Glen Allen, Va., from the National Auto Body Council (NABC), in response to a radio broadcast Carmax commercial spot:
Dear Mr. Kunkel:
On behalf of the Collision Industry, we must take issue with a recent CarMax radio commercial. By Collision Industry I mean repairers, insurers, appraisers, equipment and material manufacturers, auto manufacturers, as well as educators.
The commercial in question states, in effect, that if a vehicle is in an accident, a body shop will often times stretch the frame back into place. And that CarMax won't sell a frame damaged vehicle. That is certainly CarMax’s right, but it doesn’t tell the whole story.
First, today’s vehicles don’t have frames. The correct term is ‘unibody chassis’. But quibbling about terminology misses the point. Repairs to chassis-damaged vehicles have been happening since the early 1980’s; with the approval of insurers and under the guidance of auto manufacturers.
Your commercial diminishes the work of thousands of collision repair facilities throughout North America. The use of the word “stretched” as opposed to “restored to pre-accident dimensions” implies that there is something inherently wrong with a car that has been properly repaired, and that simply is not the case.
The commercial could simply have stated that CarMax’s policy is not to sell any vehicle that has an accident in its history. The message would have been the same, but would have been achieved without disparaging an industry’s image.
The National Auto Body Council is an organization dedicated to improving the image of the Collision Industry. What you have done makes our work more difficult.
We request that CarMax stop airing all commercials that imply that collision damaged vehicles are inherently inferior. As I said, it is certainly within CarMax’s prerogative not to sell these vehicles. But disseminating erroneous information shouldn’t be part of that policy.
I welcome the opportunity to discuss this, and future advertising campaigns, with you.
Very Truly Yours,
Charles S. Sulkala
Executive Director, NABC
Chrysler Group's Chelsea Proving Grounds, the state-of-the-art testing facility and engineering laboratory, celebrated 50 years of service in June. It has been involved in the noise, vibration and harshness, ride and handling, drivability and emission calibration of over 800 different products since the facility started operations in 1954.
"The Chelsea Proving Grounds provides an up-front analysis on all Chrysler, Jeep, and Dodge brand vehicles to ensure reliable and durable products," said Donald E. Goodwin, Vice President -- Scientific Laboratories and Proving Grounds, Chrysler Group. "This facility is a one-stop shop for comprehensive vehicle testing, cascading technical improvements throughout the corporation."
The Chelsea Proving Grounds houses 3,800 acres, 700 employees, 95 miles of durability roads -- 47 miles of asphalt, 36 miles of concrete, and 12 miles of gravel roads, as well as the most comprehensive off-road testing events and trails.
The 26,000 square foot Impact Test Building is used to anticipate how components, such as airbags, restraints, and sensors will work together during a crash to absorb and reduce crash forces sent to passengers. The Chelsea Proving Grounds Impact facility has the highest volume of tests in the industry.
"The Chelsea Proving Grounds is key in the Chrysler Group's overall quality and engineering advancements," Goodwin said. "The correlation of test procedures to real-world customer usage will continue to produce significant contributions."
BASF Coatings de México was honored with the "Volkswagen Group Award 2004” for suppliers in the NAFTA region for its outstanding performance in business development, innovation and flexibility to support new projects at Volkswagen de México in Puebla.
Peter A. Fischer, Managing Director of BASF Coatings de México received the award from Francisco García Sanz, Board Member of the VW Group and Reinhard Jung, Head of the Board of Volkswagen de México.
“This important award is a clear recognition of the development of our partnership with Volkswagen de México and to our continuous commitment to provide intelligent business solutions to Volkswagen de México. It also reflects our excellent global collaboration to ensure VW success in Mexico,” said Peter Fischer.
“Successful introduction of waterborne technology in 2001, the implementation of the system supply in record time this year and consistently high quality and supply accuracy were decisive factors to win this recognition”, commented Emilio Haas, BASF Account Manager for Volkswagen de México.
In México, BASF Coatings and Volkswagen can look back on a long-standing partnership. Even the precursor of the New Beetle, the old Volkswagen Beetle, was painted with products supplied by BASF Coatings de México.
BASF Coatings AG and Volkswagen AG have had a successful partnership for many years. BASF supplies all Volkswagen, Audi, SEAT, Skoda and Bentley factories in the world. BASF coatings provided protection and a lustrous finish on the very first Volkswagen Beetles. Today, the shiny New Beetles manufactured at the Mexican Volkswagen factory in Puebla are finished using paints from BASF Coatings.
BASF Coatings de México has approximately 400 employees. Its headquarters and manufacturing plants are located in Tultitlán, north of Mexico City. Last year the company won the GM Supplier of the Year award.
By Dan Risley, SCRS
Over the past several months, blend panels have been the center of controversy for collision repairers all across the country. This issue has been brought to the Society of Collision Repair Specialists’ (SCRS) attention, not only by several of our members but also at a recent Collision Industry Conference (CIC) meeting.
SCRS contacted the information providers in addition to the paint manufacturers to obtain their technical information and input to properly address these questions. I think the following quote by Marie Dressler best summarizes why we asked for their assistance; “Any fact is better established by two or three good testimonies than by a thousand arguments.”
The questions delineated below, and their subsequent answers, should not only provide some clarity but also assist the industry in resolving potential problems before they arise.
What is a blend panel?
ADP:
Blending is defined as the application of color to a portion of an undamaged adjacent panel for the sole purpose of facilitating the appearance of color match into the area.
Mitchell:
A blend operation requires basecoat application to 'less than full coverage' to blend new color with existing color for color match.
MOTOR:
Blending may be necessary for adjacent body components to avoid noticeable color variation between newly applied paint and the existing paint of adjacent components or areas.
Trevethan Enterprises:
Blending or a partial basecoat application may be necessary to facilitate color match in adjacent panels. This includes the proper application of clearcoat to manufacturer specifications.
Also, it is important to independently assess the procedural steps required when refinishing a vehicle from the labor times necessary to perform those steps and that both of these items should be evaluated independently from the costs or materials needed during the operation.
The following is an example of what some have INACCURATELY considered a blend panel: A fender has a small dent in the front of the panel. After being properly repaired, the refinish technician prepares the fender for paint. During the refinish process, the technician blends the basecoat such that color does not reach the rear portion of the fender and then applies clear to the entire panel. In this example, the fender is NOT a blend panel because it was damaged and you were not applying basecoat for color match purposes.
Does clear need to be applied to the entire panel or can it be blended?
SCRS contacted the paint manufacturers and requested a written response as to their recommendation. To summarize their recommendations; a proper repair entails applying clearcoat over the entire panel. Applying clearcoat to a portion (blending the clear) and melting in the edge is not warranteed. SCRS members can obtain a copy of the written response from Akzo Nobel, BASF, DuPont, PPG and Sherwin Williams by contacting Linda Atkins, SCRS Administrator at (877) 841-0660 or e-mail at scrs1@aol.com.
Insurers are being questioned for arbitrarily reducing the amount of refinish time provided in an estimating system on repaired panels because basecoat is not being applied to the entire panel. They claim that it is a “blend panel”. Are they correct? What can I do to show them they are using the information incorrectly?
To further illustrate the issue, the repair facilities’ estimating system provides 3 hours to refinish a fender. The fender has a dent at the front of the panel and is properly repaired by the body technician. The refinish technician has enough room to blend the basecoat on the fender so that blending an adjacent undamaged panel (such as the door) is NOT necessary.
As explained in the response to the first question, applying basecoat to a portion of a damaged panel and then applying clearcoat to the entire panel, does not qualify that panel as a “blend panel.” Full refinish time applies. The refinish time should not be reduced because by definition, this is not a “blend panel”. Based on that information, we believe it should be enough to address the issue. However, we decided to go a step further in investigating this matter. If times were being reduced, we wanted to understand how the insurers were coming up with the times they were suggesting.
How do the information providers break down the refinish times in their databases?
For example if it is 3 hours to refinish a panel, what percentage of that time is designated to the actual application of the basecoat?
ADP:
“ADP refinish times are developed utilizing a combination of comprehensive studies, industry input, and in-depth process review. The results are determined in several ways.” They also stated that they do not break down their refinish times into smaller subcategories, such as the time to apply basecoat or sealer.
Mitchell:
“A formula or 'breakdown' of the operations within our blend formula is internal information only and not for external consumption.”
MOTOR:
Typically 19 percent of their refinish time is allocated towards the application of basecoat and another seven percent for the application of sealer. This is based on the assumption that it is a new undamaged panel. In their response, they also added the following statement:
“MOTOR's refinish allowance is based on new OEM replacement parts and those included/not included labor operations. Procedures within the refinish operation are cumulative tenths of an hour which make up MOTOR's refinish allowance. Repaired panels introduce other variables (i.e., damaged area, repair techniques and/or climate) into the refinish process and the primary reason MOTOR does not supply a formula for refinishing and blending the same panel.
Each repair has its own unique circumstances which can only be assessed by an on-the-spot evaluation. Suggesting a percentage reduction for partial panel refinishing would affect all included operations and would be inappropriate. It is MOTOR's position that the estimating of a variable is a process best reserved for the judgment of an estimator/appraiser following a thorough on-the-spot evaluation of the specific vehicle and damage in question, and with the agreement of all parties involved.”
Trevethan Enterprises:
“No comment at this time as we are still in development.”
A bigger issue is unveiled.
If insurers are arbitrarily reducing the refinish time on damaged panels as reported by collision repairers, does this violate the Unfair Claims Settlement Practice? As you can see from the above descriptions and definitions provided by the information providers, it would appear that there are some who are applying “blend panel” times inappropriately.
SCRS recommends addressing this issue with the individual adjuster or supervisor. If the situation is still not remedied, you may consider contacting your state’s Department of Insurance and filing a complaint. A link can be found at the SCRS website: www.scrs.com.
SCRS has provided this information as a tool for repairers to fairly and equitably resolve any differences they may be experiencing. Our experience in the past 20 years has been that educating and negotiating goes a lot further than demeaning and demanding. We hope that you will use this appropriately and remember that, “Working Together Is The Most Important Work We Do.”
The irony wasn't lost on all those who traveled to the Insurance Institute for Highway Safety (IIHS) vehicle research facility on June 11 to witness a crash test.
"Here we are, a bunch of folks who see wrecked cars every day, yet we're taking a 2-hour bus ride to see some more," one participant joked.
A crash test and tour of the IIHS facility on 135 acres in rural Virginia was held the day after the Collision Industry Conference (CIC) met in Alexandria, Va. About 75 shop owners, insurers and industry vendors made the trip, and for most it was their first opportunity to see a live, high-speed crash test of a vehicle.
The group spent the first 90 minutes at the facility on a tour and looking over a large collection of recently-tested vehicles, and a display of test dummies ranging in size from infants to adults (each costing between $10,000 and $40,000). The lobby of the facility also includes the two Chrysler LeBarons that in 1992, according to the IIHS, became the first two airbag-equipped vehicles to crash into one another in which both vehicles' airbags deployed. (Despite extensive damage to the vehicles, both drivers sustained only minor injuries.)
During the tour, Kim Hazelbaker, senior vice president of the Highway Loss Data Institute, said the IIHS buys the vehicles it tests off a dealer's lot, just as any consumer would. It has an annual budget of about $1 million to buy and test crash vehicles. All of the approximately 30 high-speed tests it conducts each year are open to be viewed by the automakers or others. While the IIHS pays for the first crash test of a vehicle, an auto manufacturer that is dissatisfied with the results can make changes as needed to the vehicle's design or systems and request a retest of another vehicle at their expense.
The crash test that CIC participants watched, for example, was actually the second side-impact test conducted on a 2005 Subaru Legacy. Hazelbaker said not all of the airbags deployed properly in the first test, and Subaru requested a test of another vehicle.
The IIHS conducts no tests of repaired vehicles, nor any testing of vehicles with OEM or non-OEM replacement parts installed. Massachusetts shop owner Chuck Sulkala pointed out that the IIHS conducts 5-mph tests of vehicle bumpers to determine the cost of necessary repairs, but that it would be interesting to see if those repair costs changed on a subsequent accident based on what type of replacement bumper was installed.
Hazelbaker said the "sled" used in the side impact crash test is designed to be similar to the front-end of a pick-up or small SUV, and is higher off the ground and more rounded than that used by the government in its crash tests. It's honeycombed design crushes similar to that of the front-end of a regular vehicle when it is pulled into the test vehicle using a hydraulic system and a cable in the floor of the test area.
During the June tour, IIHS staff, camera crews for NBC's Dateline news program, and representatives of Subaru hovered around the vehicle, checking last-minute details as CIC participants entered the test area. Visitors also had an opportunity to look over the vehicle and its two crash dummies (seated on the driver's side of the front and back seats), before moving to a platform overlooking the brightly-lit test site.
The test process began, and after a countdown, the 3,300-pound sled started its rapid acceleration toward the Subaru from a chamber about 125 yards from the vehicle. It passed under the platform of onlookers and slammed into the driver's side of the car at 31 mph, sending glass and other debris flying and actually moving the vehicle sideways about 15 feet.
Although the IIHS will not release even preliminary information about the vehicle's performance until its analysis has been complete, the vehicle's airbags all deployed and Hazelbaker said he believed the vehicle performed well. He said it did not appear that the driver or passenger would have sustained life-threatening injuries, although there was some question as to the degree of injury the torso of the driver may have sustained.
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