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This article originally appeared in the November 2005 Issue of INSIGHT
©2005 Collision Repair Industry INSIGHT All Rights Reserved
BASF Names Ordoñez Vice President of Automotive Refinish Solutions in North America
Keystone Automotive Acquires Veng USA
ProcessClaims and ADP Are First Solution Providers to Receive New CIECA Certification
LORD Corp and DaimlerChrysler Partner on Non-Structural Sheet Metal Repair Guide
NASTF Updates Online OE Service Information Matrix
I-CAR’s Goldclass.com Honored by Web Marketing Association
Auto & Truck Glass Expands in Eastern U.S.
LKQ Corp Named One of Forbes 200 Best Small Companies
3M Announces Improved Connection to ComCept.NET
Paint and Materials Pricing Increases Blamed on Rising Oil Costs
INDUSTRY UPDATE
Juan Carlos Ordoñez has been named Vice President, BASF Automotive Refinish Solutions business unit in North America, headquartered in Southfield, Michigan The appointment was effective October 1, 2005.
In his new position, Ordoñez will be responsible for all aspects of BASF’s automotive refinish coatings business in Canada, Mexico and the United States. He replaces Albert Winterman, who retired as Vice President of the Refinish business in April 2005.
Prior to his latest appointment, Ordoñez was in charge of BASF’s Decorative Coatings business in South America and was based in Brazil.
A native of Colombia, Ordoñez joined BASF in 1982. Since then he has held numerous management positions in North America and South America, and has served assignments in Germany.
Ordoñez holds a Bachelor of Business Administration degree from the University of the Andes in Bogotá, Colombia. He is fluent in Spanish, English and Portuguese.
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Keystone Automotive Industries, Inc. has signed a definitive agreement to acquire the assets of Veng USA, headquartered in Seekonk, Massa-chusetts.
Veng USA recorded trailing revenues of approximately $37.1 million over the twelve months ended August 31, 2005. Terms of the transaction were not disclosed.
The acquisition is scheduled to close on October 31, 2005. The closing is subject to the satisfaction of certain customary conditions.
"The acquisition complements Keystone's ongoing strategy to expand its distribution strength and capitalize on the growing demand for generic collision replacement parts. Veng USA is a highly respected leader in the collision parts industry. Its products and distribution strength clearly complement Keystone's existing presence in the New England region," said Richard L. Keister, president and chief executive officer of Keystone.
Scott Edwards, president and chief executive officer of Veng USA, will join Keystone as a vice president.
"Scott is a highly regarded veteran of the automotive aftermarket industry, leading a talented management team and a group of dedicated employees. His background and experience serving on the technical committee of the Certified Auto Parts Association, a committee responsible for ensuring high quality standards for the manufacturers of collision replacement parts, will be invaluable moving forward. We are extremely pleased to welcome Scott and the entire Veng USA organization to the Keystone team," Keister said.
Headquartered in Seekonk, Massachusetts, Veng USA employs approximately 170 people throughout the New England region. It operates seven locations in Seekonk, Woburn, and Sutton, Massachusetts; Manchester, New Hampshire; Manchester and Milford, Connecticut; and Auburn, Maine.
Veng USA distributes a complete line of premium quality automotive collision replacement parts including fenders, hoods, bumpers, grilles, cooling and lighting products, mirrors, and wheels.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 129 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada.
The Collision Industry Electronic Commerce Association (CIECA) has announced that ProcessClaims and ADP Claims Services Group are the first companies to become certified under its new program.
The purpose of the CIECA Certification program is to validate the consistent use of current CIECA XML standards in the collision repair industry and to ensure that the implementation of the software application’s interchange documents is in compliance with CIECA standards and implementation guidelines. Only CIECA Members are eligible for certification.
“CIECA certification ensures to all trading partners in the collision repair industry that the company’s certified application/product follow CIECA’s XML Standards,” said Fred Iantorno, CIECA’s Executive Director.
“We are very pleased to announce this industry milestone in conjunction with ADP. There is no doubt that agreeing on a CEICA standard provides value to the insurance industry. We see it as a competitive edge to our clients and their partners in terms of cost savings, data quality, improved trading partner communications, and increased efficiency,” said Paul Farber, CEO of ProcessClaims. “This is a great step forward for the entire industry and we can only hope others will follow.”
Mark Kovacs, Professional Services Business Analyst for ProcessClaims, suggested that the main benefit was application interoperability.
“ProcessClaims has always employed a platform agnostic position regarding integration and data communication. However without industry standards it was difficult to leverage our stance to the benefit of the broader market,” said Kovacs. “This certification allows carriers to truly leverage application interoperability by choosing best in class partners.”
“ADP Claims Services Group is an active CIECA member and a long-time supporter of CIECA’s open standards. Clients rely on ADP for integrated solutions connecting their legacy and third-party claim systems to ADP products and services. Certification is an important next step that demonstrates our commitment to providing flexible, extendable solutions,” commented Daphne Li, Vice President of Marketing for ADP Claims Services Group.
The CIECA seal of approval assures the end customer of interoperability of the application’s interchange documents with other applications that also bear the CIECA CERTIFIED logo. More information about CIECA and the certification program can be viewed at www.cieca.com.
CIECA assists the Collision Industry in the effective use of electronic commerce and the National Information Superhighway. It is directed by a Board of Trustees and has offices in Illinois.
CIECA members jointly work on Standards Develop-ment Committees (SDC) addressing standards for Electronic Data Interchange, Interoperability, XML and Imaging. Addressing Electronic Commerce issues on a national scale, CIECA has developed processes for identifying and prioritizing industry issues, establishing SDCs to design solutions, and then working these solutions through the broadest base of acceptance mechanisms possible, such as the American National Standards Institute (ANSI).
LORD Corporation has announced that the DaimlerChrysler Motors Company LLC Non-Structural Sheet Metal Repair Guide is now available.
Targeted at repair technicians, the Repair Guide was developed to meet the growing industry acceptance of structural adhesives for sheet metal repair as well as highlight the reparability of DaimlerChrysler vehicles using adhesives.
“With the new structural adhesives available today, sheet metal repairs are much easier,” said H. Daryl Porter, Global Service Program Manager - Paint Platform/Body Structures for DaimlerChrysler. “Corrosion repairs no longer require welding so the day of the warped or oil canned door or quarter panel is over. Structural adhesive also can be used to bridge new and old quarter panel sections using a backer panel at the joint. In addition, this sectioning would be supported with STRSW weld bonding at the pinch weld flange. Fatigued sheet metal can be repaired using structural adhesive as a sandwiching-type reinforcement material between the old fatigued panel and a new panel used as reinforcement.”
According to Julie Miller, LORD Corporation Global Account Manager – Automotive OEM and Aftermarket, LORD Corporation worked with DaimlerChrysler to help develop the Repair Guide, which begins with detailed information about the available types of structural adhesives -- epoxy, acrylic and urethane. All three chemistries have their strengths and weaknesses and the Repair Guide provides insight for users regarding how to achieve optimum results.
The Repair Guide also includes safety precautions; requirements for structural adhesive repair; the structural adhesive process; instructions for bonding and sectioning including using the overlap joint and joint using a backer panel; corrosion repair including perforation, roof panel and hem flange; panel replacement including door skin and side aperture; and panel reinforcement.
The Repair Guide will be sent to all DaimlerChrysler Motors Company LLC body shops and additional copies can be ordered by calling 1-800-890-4038 and requesting part number 81-316-0610.
Free copies also will be available to jobbers and distributors from LORD Corporation.
CarMax, Inc. has announced that its co-founder, president, and chief executive officer, Austin Ligon, has informed the CarMax board of directors that he intends to retire in 2006.
The board has formed a search committee to seek a new CEO. Ligon intends to remain with the company until a new CEO has taken office.
"September marked the beginning of my 15th year of work on the CarMax business and my 11th year as the company's president," said Ligon. "Over this period, we've grown from the germ of a new idea to become both the nation's largest used car retailer and a Fortune 500 company with more than 11,000 associates. We've also been named one of the Fortune 2005 '100 Best Companies to Work For.' I'm very proud of what the CarMax team has been able to accomplish and of the very strong store operations and store support teams that we've built. This fall, we are completing the fourth full year of new store openings since restarting our growth pipeline in late 2001. By the fall of next year, the store growth pipeline should be operating at 'steady state,' with the percentage of immature stores -- those with less than 48 months in operation -- having flattened out at just below 50 percent.
"As a result, I believe now is a great time to add a new world-class leadership talent to our team," Ligon said. "I intend to work closely with the board over the coming months to help identify, recruit, and successfully integrate a new CEO. I have also informed the board that I will make myself available as an advisor to the new CEO for two years at his or her discretion. I believe this move will allow us to best position CarMax to successfully achieve the company's enormous potential for growth over the coming decade."
CarMax is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 65 used car superstores in 29 markets. CarMax also operates seven new car franchises.
The National Automotive Service Task Force (NASTF) has announced that the latest update of the NASTF OE Service Information Matrix went online October 10. This update incorporates revisions since the July 2005 update.
All automakers have launched service information Web sites and are continuing to add content, and are incorporating user feedback to make sites more user-friendly. All OEM Web sites can be accessed from www.nastf.org (click on OEM Service Websites).
With the assistance of the International Automotive Technicians' Network, NASTF established the online OE Service Information Matrix in 2001. The matrix provides OE company contacts for obtaining up-to-date factory service information, training materials and tools, including service manuals, technical service bulletins, wiring diagrams, and all other service documents available to dealer technicians.
This matrix is updated quarterly. The next quarterly up-date will be in January 2006.
The matrix includes an inquiry form if a technician identifies an error in the matrix or has a problem accessing the information being sought. The inquiry form can be completed online at www.iatn.net/nastf/#complaint or faxed to NASTF. Inquiries are forwarded to the specific OEM for review and resolution.
The National Automotive Service Task Force was established in 2000 to facilitate:
- the identification and correction of gaps in the availability and accessibility of OEM automotive service information
- technology training for technicians
- availability of both OEM and generic diagnostic tools and equipment
- communication outreach to automotive service professionals.
The I-CAR Gold Class Professionals consumer information website (www.goldclass.com) has been named a winner of the 2005 Standard of Excellence WebAward by the Web Marketing Association (WMA). This WebAward recognizes the standard of excellence for which all corporate web sites strive.
Declared "clean and easy to understand" by judges, goldclass.com offers vehicle owners a one-stop resource for all things automotive, such as safety tips, maintenance information, and a directory to locate local Gold Class Professionals businesses.
Gold Class Professionals are highly trained in the latest collision repair methods and processes. Because of changing vehicle technology, training is vital to performing complete and safe collision repairs.
"We are honored that goldclass.com has been selected for this distinction," stated Rick Tuuri, I-CAR Director of Business Development and North American Operations. "The goal of goldclass.com is to educate as many vehicle owners as possible about collision repair. Proper collision repair is vital to the safety of a family riding in a repaired vehicle. goldclass.com helps vehicle owners to locate local Gold Class Professionals who are trained to properly repair their vehicles."
The Web Marketing Association was founded in 1997 to help set a high standard for Internet marketing and corporate web development on the World Wide Web. WMA is the producer of the WebAward Competition, the premier annual award competition that judges web site development against an ever increasing internet standard.
Auto & Truck Glass, LLC (ATG) has announced that effective September 1, 2005, the company has expanded its auto glass operations in nine major metropolitan markets, mostly east of the Mississippi River.
New shop expansions include Philadelphia, PA; Washington, DC; Baltimore, MD; Alexandria, VA; Atlanta, GA; Mobile, AL; Huntsville, AL; Birmingham, AL; and St. Louis, MO.
“We feel that ATG is extremely well positioned for market share growth by expanding our footprint into certain strategic markets,” commented Jeff Erle, President of ATG. “This, along with the recent wave of consolidation activities, is affording us new opportunities for growth that were not previously available to us.”
ATG has already had a dominant presence in the western regions of the U.S. The company is expanding its services to existing rental, fleet, and remarketing customers as well as providing glass replacement services to insurance and private party customers.
According to Mike Voris, ATG’s Vice President General Manager, “We have been asked by some of our long-term rental car customers to begin glass operations in these markets for quite some time. The intention is, we believe, to enhance the service levels available to them in certain areas. Customers can expect the same world class service they have always received from us at our other locations.”
Each ATG location is corporately owned and operated and utilizes full-time employee technicians. The company also uses a centralized customer care center in its Southern California headquarters to dispatch its technicians across the country.
Auto & Truck Glass, LLC is a nationwide automotive glass replacement company serving the fleet, rental, and auto auction markets. With corporate headquarters in Mission Viejo, California, Auto & Truck Glass has been serving these markets for over 15 years.
LKQ Corporation has been ranked #89 in Forbes recent list of "The 200 Best Small Companies."
Forbes considered companies with up to $750 million in annual revenue. Overall rankings were determined by considering sales growth, profit growth, market value and return on equity.
"We are proud to be in this exclusive group of companies," stated Joe Holsten, LKQ President and Chief Executive Officer.
LKQ Corporation is the largest nationwide provider of recycled light vehicle OEM products and related services and the second largest nationwide provider of aftermarket collision replacement products. LKQ operates over 95 facilities.
3M has announced the successful implementation of an easier purchase order upload system for users of ComCept Solutions automotive paint, body, and equipment (PBE) software. The new capabilities of ComCept.NET software creates uploadable order data that is properly formatted to work with 3M’s Order Center eCommerce system for automotive aftermarket distributors. 3M says the process will help reduce order cycle time and minimize processing errors.
According to a company press release, the improved system meets the ongoing need for increased automation and precision and eliminates the need for phone and fax orders and time-consuming re-keying of order information.
Peter Davis, eBusiness Manager for 3M Automotive Aftermarket Division, said, “This improvement in ComCept’s functionality ... can provide a purchasing department with an efficient ordering tool, as well as the essential information they need. This includes product availability, order status and the ability to track orders directly back to the carriers.... We need to be able to work across all types of systems. Advances such as this help ease the process for our distributors and assures accuracy and quality order fulfillment.”
PPG
PPG Industries will raise prices between five and eleven percent, depending on product line, for its industrial coatings in North America, effective Nov. 1.
"We continue to mitigate some raw material cost increases through aggressive cost-reduction programs," said Matt Marek, general manager, industrial coatings. "However, the magnitude and continuing nature of the cost increases for all forms of energy and raw materials require us to address this situation with another increase in our prices. Today's price increase announcement continues actions we took beginning last year to help offset inflation in energy and raw materials."
The increase applies to industrial coatings, including liquid, powder and electrodeposition coatings, as well as pretreatment chemicals used in the manufacture of appliances, agricultural and construction equipment, automotive parts and accessories, coil, extrusion, and other finished products.
DuPont
DuPont Performance Coatings has announced price increases for all of its products, reflecting unprecedented and sustained increasing costs for energy and feedstocks.
The announcement follows an analysis by DuPont Corp-orate Economist Robert H. Shrouds indicating that record-high energy prices will be a factor in the global energy outlook for the foreseeable future.
“Oil and natural gas prices have increased dramatically during the past 18 months. On top of that, raw materials for DuPont Performance Coatings have increased by more than 15 percent in that same period,” said Edward J. Donnelly, DuPont group vice president – DuPont Coatings & Color Technologies. “We expect that our costs for oil derivative and energy intensive materials will continue at elevated levels.”
Price increases for DuPont OEM products will range from 12 to 25 percent, depending on specific product and existing customer contracts. The price increases will be effective Nov. 1, 2005, with auto OEM manufacturers and suppliers of automotive OEM painted parts.
Automotive Refinish Systems products, used in the collision repair industry as well as for trucks and industrial equipment, will rise by varying amounts depending on geographic region and product line. The increases, which will be announced separately, will depend on timing of previously announced increases, local raw material conditions and the magnitude of increases being experienced in transportation costs.
DuPont sales representatives will communicate directly with customers regarding prices and timing of increases for specific products.
BASF
BASF is increasing prices for its entire product line in North America in order to address the record increases in feedstock and energy costs that it continues to experience in North America.
“We’ve taken significant actions over the last few years to drive down costs under our control in order to mitigate the effects of rising feedstock and energy prices during that period,” said Klaus Peter Loebbe, BASF Chairman and Chief Executive Officer.
Although the effects of recent hurricanes have exacerbated raw material and energy costs, continuing imbalance in supply and demand for petroleum based materials, especially natural gas, is believed by BASF to be the major driver of the present situation in North America. These increases have put enormous pressure on margins in the chemical industry where pricing has not kept pace.
“Energy conservation alone cannot adequately address the widening gap between available supply and the market demand for petroleum feed stocks, especially for natural gas, a key raw material for the chemical industry,” said Joe Breunig, President for BASF’s Chemicals, Plastics and Coatings businesses in North America.
BASF is communicating directly with its customers about these price actions.
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