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Letter to the Editor
This article originally appeared in the September 2004 Issue of INSIGHT
©2004 Collision Repair Industry INSIGHT All Rights Reserved
I-CAR's Rick Tuuri Named CIC Chairman for 2005
Progressive Tests Auto Insurance Discount Program in Minnesota
U.S. House Committee on Education and the Workforce Approves Legislation on Vocational Education
Allstate New Jersey and Encompass Insurance Awarded $6.65 Million in Fraud Case
Industry Veterans Open New Independent Salvage Auction in Dallas
Boyd Group Acquires Two Operations in Atlanta and Appoints Dan Dott New CFO
BASF North America Results Show Improvement for First Half of 2004
ABRA Reorganizes Management Team
Insurance Auto Auctions Q2 Earnings Doubled
I-CAR Celebrates 25th Anniversary, Looks to the Future
NABC to Raise $50,000 for SkillsUSA
New National Guidelines for Salvage Airbags Accepted in Canada
Ontario Collision Repair Shops Get New Incentives and Tax Credits
Industry Mourns Passing of Kathy Forrey
INDUSTRY UPDATE
Rick Tuuri, I–CAR’s Director of Business Development and North American Operations was appointed Chairman of the Collision Industry Conference (CIC) at its meeting on August 5, 2004 in Chicago, Illinois.
Tuuri will succeed the current CIC Chairman, Roger Wright, and is eligible to serve two one -year terms beginning in December 2004.
Tuuri plans to focus on the CIC vision for the industry, and plans to work with the conference participants to identify that vision.
“Defining the vision for the industry is key to determining which issues to address and the priority in which to address them”, said Tuuri. “The CIC has all of the talent and skills required to develop its vision and make it a reality for the collision industry.”
Tuuri has been in the collision industry for over 25 years and has numerous professional achievements and recognitions. He is a member of the prestigious Collision Industry Hall of Eagles and served two terms as the Chairman of NACE Exhibitor Advisory Council (2001,2002). Tuuri also served two terms as the Chairman of the I-CAR International Board of Directors (1999-2001), six years on the I-CAR International Board of Directors, six years on the National Auto Body Council Board of Directors (1996-2002), two years on the I CAR Education Foundation Board of Trustees (2002-2003), and five years as a member of Independent Auto Damage Appraisers (IADA) Advisory Council (1998-2002).
“Rick will provide CIC with the necessary leadership and direction to remain focused on discussing and addressing industry issues and trends,” said I-CAR Executive Vice President and CEO Tom McGee. “We also need to recognize and thank Roger Wright for time, effort, direction, and dedication that he has provided to CIC for the last two years.”
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Progressive has introduced a usage-based "Drive less, pay less" program called TripSense (SM), a first of its kind usage-based auto insurance discount pilot program offered to 5,000 drivers in Minnesota as of August 16 by the Progressive group of insurance companies, the third largest provider of auto insurance in the U.S. Program participants are eligible to receive a discount of up to 25 percent depending on how much, how fast and when they drive.
Introduction of this program to Minnesota drivers marks the second time the state has been used as a test market by Progressive. In 1997, Minnesota became the first state in which a driver could buy an auto insurance policy real-time, online at progressive.com.
Customers who register a vehicle in the TripSense pilot program plug a data-logging device into a port in their car. The device, called TripSensor (TM), collects information about the vehicle's use, including how much, how fast and when they drive. Participants in the TripSense program will receive a five percent discount on the six-month premium for each registered vehicle.
In subsequent policy periods, TripSense customers earn a five percent discount if they choose to upload their driving data to Progressive. Customers can also receive up to 20 percent more in discounts based on how much, how fast and when they drive. Sharing driving data with Progressive is always optional, but necessary to earn a discount in future policy terms.
"Progressive is committed to finding innovative ways to lower car insurance rates," said Jim Haas, Minnesota auto insurance product manager for Progressive. "This new program will give Minnesota drivers choice and control over the cost of their auto insurance."
Progressive tested this usage-based insurance discount program in Minnesota in early 2004 when it offered 250 drivers $25 to plug a data logging device into their vehicles to collect information for 30 days, upload their data to Progressive and complete a survey about the experience. In the test, a discount on future policy periods was not offered, but had it been, the average member of the test group would have been eligible for a 7.5 percent discount in the next policy period.
Drivers who choose to join the pilot program will receive a TripSensor, a free, matchbox-sized device that plugs into a vehicle's On-Board Diagnostic (OBDII) port. The OBDII port can be found near the steering column in virtually all 1996 or later model year vehicles.
Once installed, TripSensor records how much, how fast and when the vehicle is driven. This information is used to calculate the discount the customer may receive when they renew their policy. TripSensor also collects information about rapid acceleration and braking that is not currently used to calculate the discount. Progressive is collecting this information to better understand if it is predictive of future accidents.
Toward the end of each policy period, customers use software provided by Progressive to download their driving data to a personal computer where they can view it to better understand the discounts they have earned and to upload the data to the company. During the pilot, all new customers get a five percent discount on the current policy. In subsequent policy periods, they receive a five percent discount when they share their driving information with Progressive.
Participants may also be eligible for a "usage discount" of up to 15 percent based on how much and when the vehicle was driven. And, an additional five percent can be added to or subtracted from the usage discount depending upon what percent of time the vehicle was driven slower than 75 mph.
The program is limited during the test period to 5,000 drivers and is currently only available on policies that are purchased online.
"This discount program can help drivers save money and help them to better understand how car insurance works," said Haas. "Pricing car insurance accurately depends upon understanding risk. Drivers who reduce their risk of being involved in an accident by driving less, driving during lower risk hours or driving slower will be rewarded in this discount program."
The Automotive Service Association (ASA) has reported that the U.S. House Education and the Workforce Committee has approved by voice vote H.R. 4496, the Vocational and Technical Education for the Future Act.
The legislation was introduced by Rep. Mike Castle, R-Del., chairman of the House Education Reform Subcommittee, to assist states and communities in strengthening vocational and technical education.
"The Vocational and Tech-nical Education for the Future Act is the next logical step in our ongoing efforts to strengthen and reform education in America," said Rep. John Boehner, R-Ohio, chairman of the Education and the Workforce Committee. "The bill will build on the foundation of the No Child Left Behind Act, and ensure students participating in vocational and technical education at the secondary and post secondary levels have greater educational opportunities now and into the future."
The Carl Perkins Vocational and Technical Education Act, known as the Perkins Program, is an important part of the educational systems in states and local communities. According to the National Center for Education Statistics, 66 percent of all public secondary schools have one or more vocational and technical education programs with approximately 96 percent of high school students taking at least one vocational or technical course.
"To assist states as they work to improve vocational and technical education, the bill would enhance learning opportunities for students, strengthen state and local accountability, and streamline funding. This will allow states and local communities to make the most of vocational and technical education resources," said Boehner.
The United States Bankruptcy Court in Newark, New Jersey has ordered a former New Jersey chiropractor to pay Allstate New Jersey Insurance Company and Encompass Insurance more than $6.6 million dollars.
U.S. Bankruptcy Court Judge Rosemary Gambardella says Mathew E. Lister, D.C.'s undisclosed ownership in multiple medical facilities and his self-referral of patients among those facilities constituted a pattern and practice of fraud under the New Jersey Insurance Fraud Prevention Statute.
In November 2000, Encompass and Allstate New Jersey filed suit against Mathew E. Lister, D.C., accusing the chiropractor of creating and using sham companies to defraud the insurance companies and their policyholders.
The original legal action, a 27-count complaint that named Lister along with 38 other defendants, also cited violations of the New Jersey RICO statute and several sections of the New Jersey Administrative Code. Allstate New Jersey claimed that the defendants would "buy" claimants through cash payments to a network of "runners" or "cappers." In turn, Lister's fraud ring would "sell" those patients to health care providers either in exchange for payments, or through a form of bartering, according to the insurers' suit.
Judge Gambardella's decision awarded Allstate and Encompass $6,655,668.75.
Lister is a former resident of Wayne, New Jersey, now living in Collier County, Florida.
"We believe Dr. Lister and the other defendants in this case created an elaborate series of interrelated professional and management companies, with sham shareholder interests, which were designed and intended to mislead us into believing that medical and testing services were being performed within the law," said Edward J. Moran, assistant vice president for Allstate Insurance Company's Special Investigative Unit (SIU).
Richard C. Crist, Jr., President of Allstate New Jersey, said, "Allstate New Jersey believes that the fight to rid the system of insurance fraud is a crucial one, and it continues daily. The fact that cannot be overlooked is that auto insurance fraud is not a victimless crime. It impacts everyone's car insurance costs."
Lister had sought federal bankruptcy protection for one of his corporations after losing the original lawsuit. Issuing judgment for the insurance companies, Judge Gambardella determined Lister's actions constituted fraud under federal bankruptcy rules.
"Allstate New Jersey has a zero-tolerance stance against this type of medical fraud, as well as other fraudulent acts, and we believe our policyholders have greatly benefited from our aggressive fight to keep these costs out of the system. It's especially disturbing when medical providers violate the public trust. People place their faith in medical professionals and they should be protected from those who violate the law," Moran said.
Three of the best-known and most-respected salvage auction veterans in the central U.S. have joined forces to open a new state-of-the-art facility in Dallas County, Texas.
Kenneth Rickli and partner Hardy Rawls own and operate the high-volume Bayou City Auction Pool in Houston, as well as Alamo City Auction Pool in San Antonio.
Joining them in this new venture is Carroll Estes, owner of CTSP Auto Auction in Temple, Texas, and outgoing president of the American Salvage Pool Association. The new company, DCAP, is situated in southeastern Dallas County in Wilmer.
“We are very pleased to have acquired this particular property for our operations because of its strategic location on I-45, and because of its size. At 75 acres, this site provides adequate space for the type of physical facility we are planning, along with the area we will need for vehicle storage,” said Estes.
“We believe strongly that both the claims community and buyer base in every market deserve the option of an independent salvage auction, and benefit from the competitive atmosphere that we create,” said Rickli. “The Metroplex, in our opinion, has been underserved for some time, and we are looking forward to raising the service standard in this market, as we have in the others that we serve.”
The trio expects to break ground on the new facility shortly, and plans to be in full operation by mid- to late-August, working out of temporary offices while the new building is under construction. When complete, the 32,000-square-foot building will house the new company, offer onsite claims offices for clients, allow for indoor vehicle inspection, and provide an indoor drive-through auction area.
Andy Schneider, who has been with Rickli and Rawls for five years, will manage the day-to-day operations of the facility. Schneider helped construct and operate the Alamo City facility and has served as the Bayou City manager for the past year.
The Boyd Group Income Fund has acquired two collision repair facilities located in the greater Atlanta area. The facilities are Cartech of Decatur, Inc. and Cartech of Towncenter, Inc. The acquisition will be funded through a combination of cash and vendor financing. It is expected that the two stores, which were former franchisees of Boyd Group, will contribute approximately $7 million to Boyd Group's annualized revenue in 2004.
As part of its plan to leverage the strategic value of its recently acquired Gerber Collision & Glass operations, Boyd Group is rolling out the Gerber Collision & Glass brand to all of its U.S. operations. This acquisition will complement Boyd Group's existing Atlanta operations, bringing Boyd Group's total number of Gerber Collision & Glass facilities in the Atlanta market to seven.
"This acquisition is in line with our strategy to expand and establish leadership position in select regional markets in the U.S.," said Terry Smith, President and CEO of the Boyd Group. "We look forward to adding these two repair centres to the Gerber network and further strengthening our market presence in the Atlanta market."
In other company news, Dan Dott, formerly Vice President, Finance & Administration of the Boyd Group, has been appointed Vice President & Chief Financial Officer of the company.
Mike Graham has resigned as Boyd Group's Chief Financial Officer. He has accepted a senior position with another company. The change in management is effective September 1, 2004.
"We are pleased to announce Dan's appointment as Chief Financial Officer. Dan has played an integral role in leading our finance and administration department for more than five years and has worked very closely with Mike, so we expect a seamless transition," said Terry Smith, President and CEO of the Boyd Group. "Mike has been a valued contributor to our management team and we wish him all the best in his future endeavours."
Prior to joining the Boyd Group, Dott was Director of Finance at ENSIS Corporation Inc., a corporation that was established in 1991 to facilitate the $90 million management-led buy-out of five international industrial operating groups of companies that comprised the core assets of Federal Industries Ltd.'s Industrial Group.
The Boyd Group is the largest operator of collision repair facilities in Canada and among the largest in North America. It operates 82 corporate locations in the U.S. and Canada, and ten franchised locations operating under its trade names.
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BASF's North American financial results showed improvement in the first half of 2004 with substantial year-over-year growth in sales and earnings.
In the second quarter, sales in North America increased by 11 percent to EUR 2.2 billion (about $2.7 billion). Income from operations before special items rose almost 300 percent to EUR 204 million (about $250 million). In the first six months of 2004, sales in North America increased five percent. Income from operations before special items increased an impressive 250 percent to EUR 284 million (about $346 million) during the same period. First-half results are typically stronger than second-half results in North America due to the seasonality of the Agricultural Products business.
Most divisions in North America reported year-over-year increases in sales as a result of higher volumes and selling prices. The Chemicals and Plastics segments recorded the largest percentage increases in sales and earnings before special items. Contributing to the increases were five acquisitions by these business segments in 2003 and 2004.
"Our first-half results show that we are making clear and substantial progress in North America. However, we still have more work to do. In the near term, we will continue to increase prices to compensate for very high raw material prices. We also will continue to focus on reducing our fixed costs through our restructuring program," said Klaus Peter Loebbe, Chairman and Chief Executive Officer of BASF Corporation, BASF's North American affiliate.
BASF is continuing to implement its North American restructuring program and expects to achieve its goal of reducing costs by at least $250 million by 2006. Based on progress to date, the company expects to achieve $175 million in savings in North America in 2004.
The program involves optimizing service functions, manufacturing site operations and business processes. The streamlining of service functions, which resulted in the elimination of approximately 1,000 positions, has been largely completed.
The OEM coatings business continued implementation of product and process quality improvements in the second quarter that will reduce staffing by more than 40 positions by year-end 2004.
In September, BASF will relocate its North American headquarters from Mount Olive, N.J., to a substantially smaller facility in Florham Park, N.J.
ABRA Auto Body & Glass has announced the reorganization of its executive management team.
According to Rollie Benjamin, President and CEO of ABRA, “This change is a natural response to the growth in the number of ABRA repair centers in the last 24 months. It will enable ABRA to focus on a higher level of operating performance while growing its strategic relationships with insurance partners.”
Effective September 1, Tim Adelmann, ABRA’s current COO, will assume the role of Executive Vice President of Client Services. In this new position, Adelmann will work strategically and operationally with ABRA’s clients to deliver industry-leading results to the company's insurance partners.
“Tim has been an integral part of ABRA’s success over his nineteen years with the organization,” continued Benjamin. “While performing all the duties of our Chief Operating Officer, he has become increasingly more involved in ABRA’s strategic relationships. This management reorganization will allow Tim to focus on growing ABRA’s relationships through performance-based results for our insurance partners and their policyholders.”
Replacing Adelmann as ABRA’s COO is Glenn E. Mahoney, who joined ABRA on July 20. Mahoney comes to ABRA after a successful career with Sears Automotive Group. Most recently, he was Director of Operations and Administration where he oversaw the operations, administrative strategy, and leadership of 830 Sears Auto Centers.
“As Chief Operating Officer of ABRA, Glenn will be responsible for collision and glass strategy, operations, and initiatives to achieve company goals and objectives,” stated Benjamin.
Insurance Auto Auctions, Inc. has reported higher net earnings for the quarter ended June 27, 2004. The company recorded net earnings of $2.6 million, or $0.22 per diluted share, versus net earnings of $1.3 million, or $0.11 per diluted share, for the same quarter a year ago. Revenues for the quarter were $60.0 million compared with $53.3 million in the second quarter of 2003. Fee income in the second quarter increased to $51.8 million versus $43.1 million in the second quarter of last year.
"For the second consecutive quarter we are pleased to announce financial results that exceeded our expectations," said Tom O'Brien, CEO. "Our overall goal has been to drive customer service and continued improvements in our operating model, and we were able to accomplish that goal during the quarter. We continued to increase our market share for the second quarter, demonstrated by a double-digit growth in volumes sold. We also continue to generate higher average returns for our customers compared to the prior year. Our business model focuses on providing our customers with live auctions complemented with an Internet bidding capability, which we believe offers the optimal solution for both our insurance company suppliers and our buyers."
Providing an update on the company's technology platform, O'Brien said, "Following the completion of our system development last year, we remain focused on using our new IT system to create further efficiencies and drive additional visibility for both the management team and our customers. One particular area of focus was the rollout of our recently developed real-time bidding platform, I-bid LIVE(SM), to a number of our major branches. Following a successful testing period in the early part of the quarter, we were able to fully roll it out into ten branches by the end of the second quarter. We plan to complete the rollout of I-bid LIVE by the end of the year."
IAA also continued its expansion strategy with the addition of a new greenfield facility in El Paso, Texas and a strategic acquisition in Jackson, Mississippi.
O'Brien noted, "However, we do not foresee making many expansion announcements in the third and fourth quarters, focusing instead on the rollout of our real-time bidding platform throughout our network of branches and continuing to focus on our customers."
O'Brien concluded, "Our improved cost structure combined with recent market share gains gives us reason to anticipate improved year-over-year earnings results. Assuming no material changes in current volume and pricing expectations, we anticipate earnings per share to be approximately 75 to 80 cents for the full year, representing a significant improvement over the prior year."
Insurance Auto Auctions, Inc., founded in 1982, currently has 77 vehicle auction sites across the United States.
I-CAR celebrated its 25 years of history and offered a look at its future plans during its recent annual meeting that also included dozens of technical clinics and drew a record-high attendance of more than 700 people to Chicago.
Among the activities marking the training organization's 25th anniversary was a presentation honoring more than 70 people who have volunteered for I-CAR for 20 or more years, helping I-CAR develop more than 130 courses and teach 2.5 million student units (one unit equals one student in one 4-hour I-CAR class) over the years.
"When you look at the number of individuals who have been involved in this organization for that period of time, that says something about where we can go together in the future as well," Tom McGee, I-CAR's chief executive officer, said.
Over the course of the 4-day event, McGee focused on I-CAR's positive achievements over the past year. It completed work converting its training offerings into 64 "enhanced delivery" courses and three hands-on testing programs. It had its third best financial performance in its history, with a net income of about $124,000 on revenues of about $11.4 million. It halted a 5-year decline in the number of active instructors by decentralizing instructor training. It created a new student transcript and "training paths." It now has more than 10,000 subscribers to its electronic newsletter. Its post-course testing has a pass-rate of 85 percent. It launched a new website (www.goldclass.com) to give consumers easier access to information on getting their vehicle repaired properly. It now has six states that offer continuing education credits for insurers completing I-CAR training, and is working with an organization to have colleges offer degree credit for the training. And it launched a structural steel parts qualification test that requires completion of more than 35 welds to create a unit that fits within a fixture with tolerances of 3 millimeters.
McGee said I-CAR also continued to ink deals with automakers to either develop vehicle-specific training or include existing I-CAR courses into the OEM technician or shop certification programs. At the meeting, for example, McGee announced that dealership or independent shops that want to qualify for Volvo's body shop certification program must have its technicians complete 12 specific I-CAR courses and qualification tests as well as six vehicle-specific courses I-CAR will develop.
"These will not only help train individuals involved in the Volvo network, but will also be available to the entire collision industry," McGee said of the Volvo vehicle-specific courses.
He also said that under an agreement with Audi, the I-CAR Tech Centre in Appleton, Wisc., will offer the required aluminum repair training for the automaker's A8 vehicle, similar to an agreement I-CAR has with Jaguar.
A less positive trend for I-CAR that was not discussed much at the annual meeting was a continuing decline in the number of student units being taught. I-CAR completed 111,665 student units in its past fiscal year, the fewest in nearly a decade and down from about 118,000 the previous year and more than 146,000 in 2001 and 2002.
McGee called the decline a "concern" and a "challenge" and said I-CAR continues to develop other sources of revenue - such as contract training for the automakers - in order to maintain pricing levels for its classes. He also said that improving accessibility to I-CAR training - by offering it outside of its traditional classroom setting with a "live" instructor - also should help.
Indeed, I-CAR is experimenting with satellite television broadcasts of training in Canada, and with internet-transmitted training that offers two-way communications between the instructor and groups of students in multiple locations. McGee said it also expects to launch online self-study training in 2005, enabling "some vehicle-specific and other training to be done individually at home at your convenience, world-wide."
Incoming board chairman Nick Notte of Mitchell International also focused at the meeting on what else he sees in I-CAR's future. He announced that 25 years after I-CAR began in office space borrowed from an insurance association, it was breaking ground in September on a new headquarters building. The 25,000-square-foot facility will be built in Hoffman Estates, Ill., not far from where I-CAR currently leases about 14,000 square feet of office space. McGee said the new facility will include classroom training space that will accommodate almost 100 people. The new headquarters building comes just a year after the board approved expansion of the other facility I-CAR owns, its Tech Centre where it develops and conducts training courses.
Notte also hinted that the Uniform Procedures for Collision Repair (UPCR) that I-CAR developed but subsequently shelved several years ago because of finances and slow-adoption by the industry may come back in play. The UPCR was conceived as documented repair standards for the industry.
"Whatever we call it, I see I-CAR as the central repository and authority on collision repair," Notte said. "I think the industry wants it to happen. I think I-CAR is poised to take on that responsibility right now."
The nation's largest auto insurer has no plans to join the other insurers setting performance benchmarks for shops participating in its direct repair program - but it may do more to help those 20,000 shops understand how their performance stacks up.
George Avery, auto estimating consultant for State Farm Insurance, said his company looks for four primary things from the shops it does business with: competitive estimates, quality repair, accurate billing and customer service. But unlike some other insurers, Avery said, he doesn't anticipate State Farm providing percentage targets for such things as alternative parts usage that Service First shops have to meet.
"We are not interested in giving you a number to hit," Avery said, during a panel discussion at the Collision Industry Conference (CIC) held in Chicago in early August. "We don't feel that's our place. We feel you are the best ones to determine, for example, what the recycled parts use should be based on your market area and availability."
Avery did say that State Farm is looking at ways to give shops more access to statistics to see how their performance in key areas compares with other shops in order to help them remain competitive. He said the shop consolidators and multi-shop businesses in the company's "Select Service" program, which handle about 3 percent of the company's claims nationwide, may soon have password-protected internet access to such performance numbers. There may be technical challenges to giving 20,000 Service First shops similar access, he said, but he'd like to find a way to give shops more ongoing feedback.
Avery said Service First was not designed to give shops monthly or quarterly feedback but rather just to notify the shop when numbers seemed out of line based on the insurer's data management system. He said the "no news is good news" approach keeps the insurer out of the shops' way, but he also recognizes it can be difficult for a shop "to find out where you are without having some continuous input."
"I think we're going to lean more toward giving you more global information and letting you see how you compare to the market or to the state...so you can see where you fit and you can make decisions on how to move that number around," Avery said.
During the discussion, Avery offered his views on a number of common concerns shops voice about insurers, such as:
- Why a shop's management report numbers for a given time period might not match the shop's performance report from an insurer: He said such differences are caused mainly because the management systems used by shops and insurers are different. But he said that a shop owner who finds his or her performance numbers regularly disagreeing with those provided by State Farm, should "push the issue" with local State Farm personnel to try to understand why those differences are occurring.
- Why an insurer's claims practices may vary between states or even between markets within a state: Avery said such differences may result because state laws vary, or because of differences between urban and rural markets. He said he recognizes that such differences can be frustrating, particularly for collision repair businesses in multiple locations, but he said local control has its positive side as well.
"I think there's a lot of benefit in having someone in your back yard that understands your market area," he said. "We could run it all from [State Farm headquarters in] Bloomington, Ill., but I'm not sure you'd be interested in George Avery sitting in a big black box in the center of a cornfield in Bloomington making decisions about how it should be done in your market area. So it's a double-edged sword."
- What a shop should do if they do not feel a local claims representative or Service First coordinator is performing appropriately: Avery said he recognizes that some shops feel that going to an insurance representative's supervisor could create trouble for the shop, but he hopes that doesn't happen.
"I hope we get beyond that," Avery said. "I hope as we partner more, I'd like you to be able to find out what the thinking was behind a decision or a procedure that any carrier has. I don't expect you to agree with it, but at the same time I'd like you to be able to climb high enough to where you get an answer that makes sense."
The National Auto Body Council (NABC) has announced, with board approval, that it intends to raise $50,000 for SkillsUSA.
“The revenue will be used to send two collision repair students to the World Skills Competition held May 26 through May 29, 2005 in Helsinki, Finland,” said Chuck Sulkala, NABC’s Executive Director.
“The two competitors, one collision repair, and the other refinish, will be selected from the winners of the 2003 and 2004 National SkillsUSA Competition that was held in Kansas City, MO,” stated Teresa Bolton, NABC Board member and project coordinator for the fundraising effort.
“SkillsUSA, formerly known as VICA, has participated in the World Skills Competition since 1975,” continued Bolton. “It has always been privately funded, unlike teams from most other of the participating 35 countries who receive financial backing from their governments.
“World Skills Competition (WSC) results are one of the benchmarks by which a country’s global competitiveness is judged. Results clearly reflect the quality of career and technology training in participating countries,” stated Bolton. “If an American team were not to participate, participation at this event would reflect on our country's ability to train workers in technical skills to the level where we can compete globally.”
According to Doug Webb, NABC’s Chairman, the Council will be soliciting funding at three separate levels. All of this being done under Bolton’s leadership. At the first level, the Council hopes to raise $30,000 in major corporate donations from companies actively involved in manufacturing materials and equipment used in the two disciplines of refinish and repair.
“Contributions at this level are limited to a maximum of $3,000,” said Bolton. “The next $10,000 we hope to raise from other organizations, insurers for example, who have a vested interest in promoting the quality of the total collision repair process.
“The final $10,000 we hope to generate at the grass-roots level. That is from collision repair facilities, appraisal offices and the like. They, too,” concluded Bolton, “have a vested interest in seeing that there is a highly-trained, entry-level workforce coming through the educational system.”
To contribute to the SkillsUSA team, visit the NABC website at www.autobodycouncil.org and click on the SkillsUSA link.
After discussions with stakeholders and members, the Canadian Council of Motor Transport Administrators (CCMTA), Drivers and Vehicles Airbag Project Group, has printed their new national guidelines for “salvage” airbags, after their meeting of May 11, 2004.
Salvage airbags are non-deployed original equipment airbags that have not been disassembled, altered, repaired or had any parts removed or replaced.
A number of public insurers in western Canada have been investigating and some are using salvage airbags in vehicle repairs. Some were concerned that if airbag covers have been painted or if the airbag had been exposed to water contamination that the salvage airbag may not operate exactly as planned.
Discussions on the standards for salvage airbags came about as part of the more urgent earlier discussions related to some dangerous “rebuilt” air bags being sold in the Canadian market. Many provinces, including Manitoba, Ontario, and Quebec, banned rebuilt airbags. Quebec also banned salvage airbags.
Airbag standards became a major issue for the Drivers and Vehicles Committee of CCMTA, after it was found that a Quebec-based company had been manufacturing and selling rebuilt airbags. Ontario's actions in banning rebuilt airbags mirrored steps taken in the province of Quebec after the Societe de l'assurance automobile du Quebec (SAAQ), the province's automobile insurance board, successfully obtained an injunction ordering a firm that specialized in rebuilding and selling rebuilt airbags to cease production. The firm - National Air Bags Inc. ( National Sacs Gonflables) and Coussins Gonflable Demers Inc., were accused of assembling airbags with gunpowder and other explosive substances as an igniter that "literally exploded" according to the Board's petition.
Some 1600 rebuilt airbags were sold to 547 shops and auto parts suppliers in Ontario, based on company records.
Currently, the CCMTA Board subject to legal review has approved the standards.
CCMTA is the official organization in Canada for co-coordinating all matters dealing with the administration, regulation, and control of motor vehicle transportation and highway safety.
Speaking in the showroom at Toronto Chrysler, Ontario’s Minster of Training Colleges and Universities, Mary Anne Chambers, announced new programs to encourage young people into skilled apprentice trades and incentives to employers to hire and retain apprentices. The list of eligible apprenticeship trades for the incentives includes the trade of auto body and collision damage repairer.
The much-anticipated Apprentice Tax Credit was announced, subject to approval by the Legislature.
If approved, the Tax Credit will refund 30 percent of salaries and wages paid to an eligible apprentice, if shop payroll is below $400,000 per year. Employers would qualify for up to $5000 per year per eligible apprentice. The maximum credit would be $15,000 over the first 36 months of apprenticeship. Shop owners would be eligible for the refundable tax credit on wages and salaries paid after May 18, 2004 to eligible auto body and collision damage apprentices during the first 36 months of the apprenticeship. Eligible apprentices would be in the auto body and collision damage repairer trade and hired before January 1, 2008.
Also announced:
- Creating 1,500 scholarships of $1000 each to high school students who had quit school, then returned to complete high school and enter the trade.
- A $2000 bonus to shop employers to encourage them to hire these young people into the trade.
"Providing these tangible financial incentives for shop owners, will reduce financial risks in hiring young people," said John Norris, Chair of the Attracting and Retaining People Committee of the Canadian Collision Industry Forum. "In a tough market economy, shop owners can use these incentives to offset some of the costs and challenges involved in hiring young people."
Kathy Forrey, a longtime business friend to the Collision Industry, has lost her three-year battle against liver disease. She passed away on August 19, 2004. Forrey edited magazines, developed programs, assisted at CIC meetings, wrote articles for the trade press, and was active in industry organizations. Her thoughts, ideas, and guidance were a help to every project to which she brought her energy and enthusiasm.
"It is hard to think good-bye," said Jeff Hendler. "Kathy Forrey will now be assisting us from a higher position."
The Forrey family has INSIGHT’s thoughts and prayers at this sad time.
Kathy, in keeping with her devotion to the industry, asked that any charitable donations be made to the Collision Industry Foundation: P.O. Box 4489, West Richland, WA 99353.
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