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Letter to the Editor
This article originally appeared in the January 2006 Issue of INSIGHT
©2006 Collision Repair Industry INSIGHT All Rights Reserved
ARA Gold Seal Committee Endorses CIC Best Practices Guidelines
MQVP Names Kirk Hansen Director of New Business Development
LYNX Services APD Team Earns I-CAR Gold Class Training Designation
NeoMedia to Distribute PPG Auto Refinish Products in China
ABRA Adds Franchises in TN and NC
DPC and UTI Announce Winners of $50,000 in Scholarships
CarMax Q3 Profit Climbs 46% on Higher Sales
LKQ Corp Acquires Chicago Recycled Auto Parts Facilities
911 Collision Centers Golf Tournament Big Success for Big Brothers Big Sisters
Akzo Nobel Benevolence Program Gives Cars to Deserving People
INDUSTRY UPDATE
The Gold Seal Committee of the Automotive Recyclers Association (ARA) has endorsed the “Best Practices Guidelines for the Use of Quality Used Parts” established by the Collision Industry Conference (CIC).
The CIC’s “Write It Right” Committee, comprised of insurers, repairers, and automotive recyclers, produced a set of working guidelines of unprecedented value to the insurance, auto repair, and automotive recycled parts industries. The guidelines represent a consensus between the three industries on how to work together for the benefit of the vehicle owner.
Key elements in the guidelines’ development were the mutually supporting pillars of working in the spirit of good faith business practices and respect by and between the different industries involved in the repair of collision damaged automobiles.
Sixteen points constitute the Guidelines.
- The repair facility should:
- Provide the VIN and option information required to order the correct parts
- Request a realistic delivery date
- Inspect parts and request any adjustments promptly
- Make returns in a timely manner
- Minimize unwarranted returns.
- Automotive recyclers and OE Used Parts suppliers should:
- Return all inquiries promptly to expedite the repair process
- Request VIN and options required to provide an accurate quote for exact “match parts”
- Base initial quote on all parts as complete and undamaged
- Provide an accurate description of the part(s)
- Maintain an updated inventory and only quote parts available
- Quote OEM unless otherwise disclosed
- Meet agreed delivery date - Make agreed adjustments promptly.
- Recyclers, collision repairers and insurers should:
- Consider recyclers who adhere to these Best Practice Guidelines
- Eliminate unnecessary requirements, which add cost to the claim and delay the repair
- Not participate in illegal, unethical or fraudulent practices.
Dan Snyder, ARA’s Gold Seal Committee Chairman and partner in Snyder Salvage of Holland, TX, commented, “I like to refer to the repair process as being like a three legged stool. Each of the legs represents the repair, the insurance industry and the part(s) providers. If any of these legs comes up short you have an unstable stool and a poor performing repair process. It is in the best interest of all involved to commit to the basic business practices described in this document. This commitment will lead to a less costly, more profitable repair for all involved and better service for the end customer.
Past Chairman and current CIC Administrator, Jeff Hendler said, “The endorsement by the Gold Seal Committee of these guidelines further emphasizes how important the Collision Industry Conference has become in bringing together the various segments of the industry to resolve problems and concerns. Addressing the needs of the collision industry is the main focus of CIC.”
Founded in 1943, the Automotive Recyclers Association represents an industry dedicated to the efficient removal and reuse of automotive parts, and the proper disposal of inoperable motor vehicles, with programs such as the Certified Auto Recycler program, Gold Seal, and other partnerships with automotive manufacturers.
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AEII, Auto-Quote, Combined Computer Technology (CCT), Crash Management System, Integrated Collision Management (ICM), NewEra Software, and Vantedge Software have jointly announced the integration of Decision Support Services’ EMSReview estimate auditing and KPI reporting tool.
The companies have agreed to interface DSS’s EMSReview with their management systems, giving their customers the ability to review estimates and utilize common DRP Key Performance Indicators (KPI) from within their management systems.
“We saw a need in the market for a standard estimate review program and common key performance indicators”, said Steven Siessman, President, Decision Support Services. “The big news is these management systems providers bring a common estimate review process and KPI reporting format to their 1,500 plus collision shop customers in the United States and Canada.”
Calling EMSReview from inside their management systems allows estimate auditing to become a seamless part of the management system workflow.
“The claims, parts, labor and compliance statistics automatically generated by the audit enable the management systems to create individualized KPI reporting modules using common standards. As a result, shops will be able to know how they stack up in comparison to other shops in their area or DRP without being forced into a network,” said Siessman.
"Having worked with the EMSReview auditing software for a number of years now,” said Tony Passwater, President of AEII, “I believe there is great benefit to shops not only to audit the estimate during the initial inspection, but also to audit the repair order before allowing the job to be closed. This ensures items that may have been missed are again reviewed, and compliance to the work providers' rules are maintained.
“Another important step for our Industry is to begin to standardize KPI's so we can compare apples to apples," said Passwater. “This group can go a long way in promoting standardized KPI's for our Industry.”
Michael de la Pena, North American Program Manager for Auto-Quote commented, “By joining forces through integration, Auto-Quote will bring compliance, auditing and KPI's into the management process instead of it being a separate and/or competing process.... With KPI's becoming a bigger part of the horizon, EMSReview's release of an already proven standard of KPI formatting will open the door to an "open source" national standard.“
Stuart McColl, President, Combined Computer Technology, added, "It's a great thing for a body shop to have an automatic tool like EMSReview. We're glad to interface our CC3 management system to EMSReview because it makes it even easier for body shop estimators and managers to carefully manage their revenue, with a minimal amount of effort."
David Schultz of Shop Data Management, Inc. the makers of CRASH Management Systems, said, “The review process will enhance our customer's ability to generate more accurate estimates, comply with insurance agreements and provide standardized KPI reporting geared to give repair facilities an industry recognized tool to report and analyze key estimating statistics. We are excited to provide the first level of integration between our management system and the EMSReview product from DSS.”
Ed Cardenal, Chief Operating Officer, Integrated Collision Management (ICM) added, “Combining our efforts with dedicated integrated technology providers in our industry fits the mission that ICM has been self-prescribed to for its past nine years of existence and continuing to the future. We look forward to working with DSS and believe the partnership will give our customers the opportunity to use the management tools they need to be the very best in their business.”
Owen Grapman, President, NewEra Software, said, "Through the KPI tracking facilities already in AUTOFOCUS, and the proposed KPI reporting standards, shops will not only be able to track how their shop is doing on a day-to-day basis, but also see how their shops stack up when compared to their competition.”
John Conlon, President of Vantedge Software, added, “As a collision shop owner and founder of the Vantedge bodyshop management system we are excited to incorporate the concepts of EMSReview into Vantedge. EMSReview helps advance businesses and the entire collision repair industry."
Kirk Hansen has joined MQVP Inc. as Director of New Business Development.
MQVP Inc. CEO/President, William Hindelang said, "In his new position, Hansen will be responsible for sales, marketing and servicing of mid-sized insurance companies. He will have national coverage for these accounts and service them from the Chicago based office. Hansen will report to John Arvay, Director of Insurer Client Services at MQVP Inc.”
Hansen will work with Insurance Claims and Material Damage executives in their efforts to develop strategies that promote the use of quality aftermarket parts and at the same time service the needs of the collision repairers. In a responsive effort to meet the evolving interests of insurers, Hansen will solicit feedback and promote communication in an effort to develop additional features to enhance the MQVP program, the aftermarket parts certification program.
"We are very excited to have Hansen on board," added Hindelang. "He brings to our organization a unique combination of experience and contacts within the insurance industry. Hansen’s credibility and reputation for honesty is well recognized as is his advocacy for innovative solutions to the challenges facing the claims industry today."
With a 25 year history of service to the insurance industry, Hansen comes to MQVP Inc. after serving six years as the Director of Claims with the Alliance of American Insurers, a national trade association representing 340 property/ casualty insurance companies.
In that capacity, he served as an insurance industry spokesman and expert on a variety of claims issues, including the use of aftermarket parts. Most recently, Hansen served as Vice President of Insurer Relations for IMACC, and in just 18 months helped to develop the company into the country's largest network of its kind.
MQVP, located in Rochester Hills, Michigan, is an ISO-registered information systems and quality management services firm providing supplier qualification and quality assurance tracking systems to members of global supply chains.
The LYNX Services Auto Physical Damage (APD) team, based in Fort Myers, Fla., has collectively achieved the I-CAR Gold Class Professionals training designation. Being a Gold Class Professional is the highest recognition for training a business can earn in the collision repair industry.
The APD team manages the collision claims and repair process for insurance customers of LYNX Services, a U.S. third-party administrator of auto glass and collision claims. To achieve Gold Class status, all members of the team – including automotive technicians, claims representatives, claims analysts, and managers – were required to complete a minimum of 13 I-CAR and/or Industry Training Alliance programs and successfully complete a post-test at the conclusion of each course. Achieving Gold Class status required more than a year of focused effort and commitment by all members of the LYNX Services APD team.
“Insurance companies recognize the value of I-CAR training programs and many have pursued Gold Class status for their own claims operations,” said Bill Marshall, Director APD, LYNX Services. “Obtaining this qualification was an important goal for the LYNX APD team as a clear demonstration of their ability to deliver best-in-class services to the insurance industry.”
Because claims professionals must renew their status annually, the LYNX Services APD team will continue to update their training and knowledge of the collision repair process – making this a long-term, ongoing commitment.
“I-CAR training is designed to enable complete and safe repairs. Third party claims administrators concerned with the policy holder’s satisfaction and safety should be commended for pursuing this training,” said Rick Tuuri, I-CAR Director of Business Development and Field Operations. “By achieving gold status, the LYNX Services APD team can best understand the work that the professional repair facility technicians perform on a day to day basis and allows them insight into the process of proper vehicle repair.”
I-CAR is an international, not-for-profit organization focused on helping the collision repair industry achieve a high level of technical training. The organization created the Gold Class Program in 1990 to recognize businesses that are committed to quality and excellence through training.
LYNX Services LLC provides automotive insurance claims administration solutions to the insurance industry, linking policyholders, insurers and automotive glass and collision repair shops. Its national customer service centers handle over three million claims annually.
NeoMedia Technologies, Inc. has signed a contract with PPG Industries, Inc., through PPG Paints Trading (Shanghai) Co. Ltd., a 100 percent-owned subsidiary of PPG, to distribute PPG Auto Refinish products throughout the People's Republic of China via Jinche Yingang Auto Technological Services Limited.
NeoMedia President and CEO Charles T. Jensen said his company will distribute to Beijing Sino-US Jinche Yingang Auto Technological Services Limited (Jinche Yingang Automobile Co.), a joint venture based in Beijing, which operates under the laws of the People's Republic of China. Based in Beijing, Jinche Yingang specializes in automobile sales, financing, insurance and repair.
Mike Horton, general manager for PPG Auto Refinish Asia Pacific, said, "China continues to offer real growth opportunities in the Automotive Aftermarket. Choosing the right distribution partners is key to capturing those opportunities. We are confident we have made a good choice with NeoMedia."
"The automotive aftermarket in China is in its relative infancy," Jensen said. "We believe it presents a world of opportunity to NeoMedia and everyone now getting involved.
"Gaining the confidence and distribution business from PPG, a known and respected worldwide leader in auto refinishes as well as a variety of technology-based products and services, allows NeoMedia to step to the fore in presenting our wares and credentials to this market.
"Pang Gui-San, the chairman and CEO of Jinche Yingang, has personally expressed his excitement about offering the prestigious PPG Auto Refinish line through his service centers," Jensen concluded.
In addition to buying and using PPG Auto Refinish products from NeoMedia, Jinche Yingang will also serve as a non-exclusive distributor and user of NeoMedia's high technology Micro Paint Repair products and systems at its automotive service facilities throughout China.
NeoMedia Micro Paint Repair, Inc., is a business unit of NeoMedia Technologies, Inc. Formerly known as CSI International Inc., the company specializes in products and services for the worldwide micro paint repair industry, including a system and processes utilizing proprietary technology.
ABRA Auto Body & Glass, a Minneapolis-based damaged vehicle repair company, has announced the opening of a facility in Tennessee and two shops in North Carolina.
The new TN facility, located in Hixson, is the third ABRA franchise awarded to Nelson Bowers II in the greater Chattanooga trade area.
Mark Wahlin, Director of Franchising, commented, “We are very happy with the success of Nelson’s franchises in Chattanooga and Cleveland. This success can be attributed to their team’s in-depth knowledge of the damaged vehicle repair industry, and their emphasis on integrity. Their professional staff and leadership fit perfectly with our corporate philosophy, and we feel confident that the Hixson location will perform up to the high standards expected of all ABRA centers.”
When asked of his decision to open an additional ABRA franchise, Bowers said, “Our affiliation with ABRA has been very rewarding primarily because of the company's commitment to superior service and excellent craftsmanship.... Our goal has always been to open additional ABRA facilities within the Chattanooga area in order to capture the largest market share in this area.”
ABRA has also opened two repair centers in the Wilmington, NC area. Located in Shallotte and Castle Hayne, the franchises were awarded to Anthony Reese.
Wahlin noted, “Anthony has been in the collision repair business for almost 25 years, starting as a technician and eventually becoming the CEO of a multi-unit group. He left that position earlier this year to pursue his dream of owning his own repair centers. Because of our shared values of operational excellence, continuous improvement, and developing industry-leading team members, the fit between our two companies was a natural.”
Joining Reese’s management team are Ken Depper and Bryan Harrell, as General Managers of Shallotte and Castle Hayne respectively. Both men began their careers as refinishers, and have steadily moved through numerous positions to become experienced managers. Most recently, Depper was with Mulder Collision in Chicago, and Harrell was the previous owner of what is now ABRA-Castle Hayne.
Reese commented, “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.... My goal is to open additional ABRA facilities within the area over the next few years. This will afford us the opportunity to capture the largest market share in this area.”
ABRA Auto Body & Glass currently operates 91 facilities.
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DuPont Performance Coatings (DPC) and Universal Technical Institute (UTI) have announced the first ten winners of $50,000 in scholarships to UTI. DPC established a $250,000 scholarship fund last year, with a total of $50,000 to be awarded to ten students annually for the next five years.
“These scholarships help in recruiting new entrants into the collision industry. They also help local DuPont Jobbers support education at the grass roots level,” said Steffen Apollo, DPC director of training for the United States and Canada.
“The scholarships provide tuition assistance for tomorrow’s collision technicians,” said Rick Jazwin, UTI vice president of Industry Development.
The 10 winners, each of whom will receive $5,000 in scholarship assistance, are:
- Aaron Adler, Cincinnati, OH
- Aaron Landin, Yuma, AZ
- Christopher Jolley, Geraldine, AL
- Daniel Anderson, Spring Valley, WI
- Johnny Rodriguez, Kingsburg, CA
- Joseph LaGrotteria III, Houston, TX
- Man Nguyen, Grand Prairie, TX
- Michael Painter, Middletown, OH
- Robert Simmons, Union, OH
- Shamar Lemon, Cincinnati, OH.
Located on UTI's Houston campus, the Collision Repair and Refinishing Technology (CRRT) program gives students 54 weeks/1,620 clock hours of training in non-structural, structural, refinishing, estimating and plastic repair, and mechanical and electrical repair. In addition, CRRT graduates are DPC-credentialed and receive training across all DPC brands in the fundamentals of automotive refinishing. Graduates also have the opportunity to earn 24 I-CAR Gold Class Points as well as I-CAR Welding Qualification in steel and aluminum.
In addition to the scholarship program, UTI and DPC will continue to cooperate in developing real world, state-of-the-art training solutions and curriculum for students seeking a career in the collision repair industry. DPC also will offer assistance in matching graduating students with potential employers who need highly qualified technicians trained in the application of DPC products. This association also provides for student resumes in the Classified section of the DPC website.
Used-car chain CarMax Inc. has reported that profit jumped 46 percent in its fiscal third quarter on strong customer traffic and slightly higher selling prices.
For the three months ended Nov. 30, CarMax earned $26.4 million, or 25 cents per share, up from $18 million, or 17 cents per share, a year ago. Excluding a boost from certain auto financing plans, CarMax said it would have earned 22 cents per share.
Revenue increased 17 percent to $1.42 billion from $1.22 billion. Customer traffic was up at its stores and the company saw a slight benefit from recent hurricanes, as evacuees bought cars to replace those lost to the storms.
Sales at locations open at least a year rose three percent as did sales of used vehicles at these locations. New cars, a much smaller part of CarMax's revenue, posted a six percent decline in unit sales. New car sales dropped sharply after the end of employee-pricing incentives by automakers.
Wholesale sales rose noticeably, helped by higher prices, strong appraisal business and geographic expansion, CarMax said.
The company's average selling price for used vehicles grew to $16,147 from $15,591 in the third quarter of 2004.
For the fourth quarter, CarMax predicted earnings of 25 cents to 31 cents per share. The company said its used vehicle sales at existing stores could range from a four percent drop to two percent growth. That forecast would mean full-year earnings of $1.27 to $1.33 per share.
LKQ Corporation has acquired A-Reliable Auto Parts and its affiliated companies. A-Reliable is a leading provider of recycled automotive products servicing the greater Chicago area. Terms of the transaction were not disclosed.
A-Reliable operates from three locations, two that sell primarily into the retail market and one that sells into the professional repair market. All three facilities are located in the Chicago metropolitan area.
Joe Holsten, LKQ's President and CEO, commented, "A-Reliable significantly increases our capacity and ability to service the important collision and mechanical repair markets in one of the nation's largest automotive repair markets, and also provides for our initial entry into retail sales in the greater Chicago area.... In addition, we are highly impressed with the A-Reliable management team, which will continue to operate the company."
A-Reliable's revenue for 2004 was approximately $29.6 million.
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.
This past Veterans Day in November, 911 Collision Centers partnered with Sullivan’s Steakhouse to raise over $38,000 for Big Brothers, Big Sisters of Tucson, AZ.
Michael Quinn, CEO of 911 Collision Centers and a former board member of Big Brothers, Big Sisters, stated, “We are committed to Big Brothers, Big Sisters. Helping troubled kids through effective mentoring programs will pay big dividends not only for these kids but for society as a whole.”
PGA Champions Tour professional Don Pooley was on hand to help in the fundraising.
Pooley, a Tucson resident, commented, “This event is one of the premiere charity golf outings in Tucson. I’m proud to be a part of it and I’m committed to helping again next year.”
The event was held at the Tucson Omni National this year. Each year the event takes place on the observed Veterans Day Holiday.
Chris Maer, event coordinator for Big Brothers, Big Sisters of Tucson, added, “We get to honor our military personnel, have some fun and help out our kids. It doesn’t get much better than that.”
Quinn added, “This year we had a tremendous turnout along with strong support from our sponsors. When the final tally came in, I was so proud of our committee. Everyone worked so hard to pull this event together.”
Founded in 1998, with headquarters in Tucson AZ, 911 Collision Centers is a leading operator of professionally managed collision repair centers in southern Arizona.
Mike Rose’s Auto Body, in Concord, CA, is just one of more than 75 shops across the Nation this December that are presenting a “new” used vehicle to a deserving individual this holiday season. They have joined with other members of the Akzo Nobel National Benevolence Program, a community relations program whose mission is to present refurbished cars to deserving individuals or organizations during the holiday season. The cars were all presented during the week of December 12 throughout the U.S.
Over a hundred people gathered in the front office of Mike’s Auto Body for what has become an annual generous and hearfelt presentation.
Mary Mazion a single mother of five girls, one daughter still at home, wheelchair bound from cerebral palsy, drove home a 2001 Nissan Quest donated by AAA Insurance Co. of Northern California. Mazion has been without transportation for the past year after her van was stolen. She has been borrowing vehicles from her family to get to school and work and to take her daughter to her schooling and doctor appointments.
Cynthia Heilson, a supervisor of the re-entry work program at DVC, commented, “Mary is an extremely positive person. Even through all the trying times she has had, she has always maintained a positive attitude, and the car could not have gone to a more deserving person.”
Priscilla Pina, a single mother of four, drove off in a 1999 Mercury Sable donated by Safeco Insurance. Pina has two daughters still at home, one in high school and the other in junior high. She will no longer have to wake up at 5am to catch the right buses to get her daughters to school and then catch another bus to get herself to school and work.
“You have no idea what a difference this is going to make to me and my girls. No more waking up at the crack of dawn, no more buses. I just can’t believe it. You don’t win anything your entire life and then all of a sudden you get a car. I’m still in shock”, said Priscilla.
And the last vehicle went to not one person but an entire city of people. The Monument Crisis Center located in Concord,CA, proves food, legal services, and educational classes for the lower-income families in the community. The winning 1998 Ford Windstar was donated by Mercury Insurance. With a vehicle of its own, the center will be able to pick up and deliver food to those in need.
The Akzo Nobel Benevolence Program is a program that allows people and companies in the automotive industry to give back to the community in which they live.
“It’s not very often that you can give to something and see the direct effect you have had on an individual. We can take cars that have some damage, repair them, and give them new life. And because this program has grown as it has, and since we have been involved with this program for the past 5 years, we now have companies calling us to see how they can help”, said Mike Rose, of Mike Rose's Auto Body. “With the support of more than 50 companies and individuals, these cars are perfectly safe to drive. It is companies like Dirito Brothers Nissan, Dublin Ford, Complete Auto Works, B & D Towing, Big O Tires (Concord Ave Loc.), and many more who contribute parts, tires, mechanical inspections, and whatever else these cars need to become road ready."
As the Benevolence Program has received recognition it has grown dramatically over the past few years. The goal has been to increase the number of participants by increasing awareness. Last year 45 cars were given away. This year, more than 75 will be presented to deserving individuals. Through the support of the California Autobody Association’s East Bay Chapter, a total of five cars will be donated this year in California alone.
“We feel very fortunate to be involved with such a wonderful program and are very excited to be able to give back to the community that has supported us for the past 33 years," concluded Rose. "...Hopefully with increased publicity of the Benevolence Program other shops will adapt a similar program of their own.”
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