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Letter to the Editor
This article originally appeared in the April 2006 Issue of INSIGHT
©2006 Collision Repair Industry INSIGHT All Rights Reserved
U.S. District Court Finds Texas Insurer-Owned Repair Shop Law Constitutional
VeriFacts Releases New OEM Bonding Matrix
Sherwin-Williams Continues Successful Training Class for University of Toyota
U.S. Supreme Court Denies Avery vs State Farm Petition
MQVP Achieves ISO/IEC 17025:2005 Certification
BASF Coatings Facilities Receive Ohio Chemistry Technology Council Awards
Global Auto Recycling Executives Meet at Las Vegas Roundtable
CIF Update on Hurricane Relief
PPG Appointments: Mary Kimbro Named Director of Marketing North America
Mitchell International Celebrates 60th Anniversary
INDUSTRY UPDATE
The U.S. District Court, Northern District of Texas, has issued a long-awaited opinion on the Texas insurer-owned shop law.
The Automotive Service Association (ASA) had supported the legislation - H.B. 1131 - in the Texas legislature, which put a halt to insurer-owned shops in the state of Texas.
Texas State Senator John Carona had first broached the issue publicly at an Inter-national Autobody Congress and Exposition (NACE) press conference in Dallas in December, 2002.
After the legislation became law, Allstate challenged H.B. 1131 in court. In Allstate Insurance Co. and Sterling Collision Centers Inc. v. Greg Abbott, Attorney General; Carol Strayhorn, Comptroller of Public Accounts; the court concluded that "H.B. 1131 does not violate the dormant Commerce Clause and is constitutional, with the exception of the speech restrictions," according to Judge Ed Kinkeade.
Bob Redding, ASA Washington, D.C., representative, said, "We are very pleased with the ruling. This new law in Texas demonstrates what collision shop owners can do when they join together with a common message under a single banner. Texas repairers should be very proud and look to how they can continue to improve the collision repair industry. This decision will have ramifications in the collision industry throughout the United States. Many state collision leaders were watching this decision to determine if similar legislation would be introduced in their states."
To review the decision, go to www.TakingTheHill.com, ASA's legislative Web site.
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VeriFacts Automotive has developed an “OEM Bonding Matrix” which identifies specific vehicle manufacturer’s guidelines on the use of adhesive bonding during collision repairs. VeriFacts has assembled the latest available bonding information from vehicle manufacturers and consolidated it into a single document.
The new Matrix identifies the type of bonding allowed, whether bonding is permissible on specific parts, and if so, what type of bonding method is approved, including the source of the information.
“We are in touch with over 3,500 technicians, estimators and managers each month through our VeriFacts Shop Coaching Program wherein questions on bonding requirements are very common. In addition, our toll-free technician Telecoach Hotline receives numerous inquires on this subject as well,” stated Mark Olson, Chief Operating Officer of VeriFacts. “Manufacturers are constantly developing new guidelines for collision repair and it’s difficult to keep up with the information flow. With our ongoing efforts to improve repair quality and reduce cycle time, we decided to conduct the necessary research and develop this useful tool for VeriFacts shops as well as the industry at large.”
The latest release of the OEM Bonding Matrix is available on the VeriFacts website at www.verifactsauto.com. The Matrix will be updated periodically as additional information becomes available from vehicle manufacturers.
VeriFacts makes no warranty as to the accuracy or timeliness of the information, but has used its best efforts to develop a comprehensive and informative tool.
VeriFacts Automotive, LLC was founded to address the implementation of best repair practices within the collision repair industry. The company provides interactive, on-the-job, technician coaching and serves as an unbiased, third-party to measure and verify collision repair quality.
Due to proven results and tremendous demand, Sherwin-Williams Automotive Finishes Corporation (SWAFC) will continue its partnership with the University of Toyota in offering the Estimating Solutions for Profit training class in 2006.
This hands-on workshop provides estimators with the techniques, skills, and information necessary to write more accurate estimates. Estimating Solutions for Profit challenges Toyota damage estimators to move away from the traditional method of estimating and embrace a more comprehensive approach known as “blueprinting” the repair plan.
“We have been using Sherwin-Williams’ ‘Estimating Solutions for Profit’ class to train our estimators for several years,” said Brad Brahe, Body Shop Development Manager, Toyota Motor Sales, USA, Inc. “We have seen the value of this course and are pleased to include it as one of our requirements for the newly developed estimator certification program.”
“Most estimators fail to capture all of the necessary repairs on their initial estimate,” said Jason Crager, OEM Account Executive, Sherwin-Williams Automotive Finishes Corporation. “With the blueprinting method, estimators learn techniques to prevent these mistakes, and, on average, they increase their estimating accuracy by 28 percent.”
Toyota Motor Sales, USA found a solution by teaming up with Sherwin-Williams and utilizing its Estimating Solutions for Profit course, which is one of the industry’s most recognized estimator training courses. Approved and accredited by the Automotive Management Institute (AMI), it offers 12 credit hours toward AMI’s diploma program.
“We consider the Sherwin-Williams collision repair estimating class to be an integral part of Toyota's requirements for a certified estimator,” Brahe added.
For the second consecutive year, the course will be available to all of Toyota’s 1,200 dealership partners nationwide that have collision centers.
Don Stewart, Collision Center Manager at Champion Collision Centers in Austin, Texas commented, “I’ve been a manager for many years, and this is one of the most useful classes I’ve attended. It provides best practices that can be applied in work and estimating situations every day.”
The Automotive Service Association (ASA) has reported that the U.S. Supreme Court has denied the petition of Michael E. Avery, et al in their suit against State Farm Mutual Automobile Insurance Co.
After almost ten years of dueling between Avery, et al and State Farm, the U.S. Supreme Court put an end to the national aftermarket parts class action lawsuit March 6.
This refusal to review lends support to the Illinois Supreme Court verdict not to award Avery the $1.8 billion he initially won in an Illinois district court.
To learn more about this landmark decision, visit www.supremecourtus.gov/.
DuPont has announced that Douglas L. Moore, vice president and general manager, DuPont Advanced Coatings Systems and DuPont Performance Coatings Europe, will retire August 31, 2006, after 37 years of service.
Effective April 1, 2006, Ferdinand Bauerdick, global business director, High Performance and Filaments, DuPont Engineering Polymers, will become vice president and general manager, designate, for the global DuPont Advanced Coatings Systems business and DuPont Performance Coatings Europe.
"With Doug's retirement, we are losing a wise and seasoned business leader with tremendous people skills and a wealth of hands-on experience in the coatings industry," said Terry Caloghiris, group vice president for DuPont Coatings & Color Technologies. "Ferdinand has a strong track record as a results-oriented leader with in-depth knowledge of European industry. We believe he will be particularly effective in implementing the transformation plan we just announced for DuPont Performance Coatings."
Moore, 58, has served in a variety of sales, marketing and global business management positions since joining DuPont in 1969.
Bauerdick, 55, will initially focus on actions to improve the competitiveness and profitability of the Performance Coatings businesses in Europe. He will assume responsibility for Advanced Coatings Systems in June.
MQVP Inc. has announced the successful completion of the certification process to achieve ISO/IEC 17025:2005 registration at each of their MQVP(R) Vehicle Test Fit (VTF) Centers. MQVP is currently the only crash parts certification program to have directly certified VTF Centers using OEM-like part testing and approval processes.
ISO/IEC 17025:2005 specifies the general requirements for the competence to carry out tests and/or calibrations, including sampling. It covers testing and calibration performed using various approved methods, as described by the International Organization of Standardization (ISO). It is applicable to organizations specifically performing tests and/or calibrations, including laboratories performing part inspections and product certification.
The MQVP ISO 9000 certification and the ISO 17025 Accreditation for Test Labs, according to a company press release, further aligns the MQVP certification process with the original equipment manufacturer best practices and methodologies.
MQVP Inc. received the official accreditation documents from the Laboratory Accreditation Bureau, its Third Party Registrar.
Chuck Hansen of Hansen Auto Body, and Don Keenan of Keenan Auto Body, and their employees have provided expertise and overall commitment to this effort.
“The effectiveness throughout and the consistency of performance has been standardized between these third party VTF Centers as a result of this accomplishment,” said Neil Stolman, Operations Manager, MQVP Inc. “The ultimate beneficiaries of this accreditation are the vehicle owner, the collision repair center, and the MQVP participating insurance companies as the collision industry continues to gain further trust and acceptance of MQVP approved products.”
MQVP Inc., located in Rochester Hills, Michigan, is an ISO 9000 registered information systems and quality management services firm providing supplier qualification and quality assurance tracking systems to members of global supply chains.
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The Ohio Chemistry Technology Council (OCTC) has named BASF’s Coatings Technical Support Center in Whitehouse, Ohio, and its coatings production site in Greenville, Ohio, recipients of its 2005 Excellence in Environmental, Health, Safety, and Security Performance Award.
The award recognizes chemical facilities that have demonstrated a strong commitment to continuous improvement in environmental protection, health, safety and security. The OCTC considered several factors, including a company’s interaction with the local community through an active community advisory group, a strong pollution-prevention program, and effective operational controls and procedures that helped prevent serious accidents during the previous year.
BASF’s Whitehouse site has also received the OCTC’s Award for Excellence in Responsible Care(R) for twelve consecutive years, in recognition of the site’s demonstrated commitment to helping protect the environment.
“BASF and its employees are very proud to receive the OCTC awards,” said Karl Schnapp, Manager Site/Admin-istrative Services for BASF’s Whitehouse site. “The awards recognize our employees’ commitment to a better environment and a stronger community.”
Jim Mason, Site Manager for BASF’s Greenville site, echoed Schnapp’s remarks. “BASF, as a socially and environmentally responsible company, doesn’t just make great products, it also demonstrates daily its commitment to sustainability and to being an active part of the communities where we operate.”
BASF’s Whitehouse site employs approximately 140 people and provides R&D, technical information, and customer support services for the company’s Automotive Refinish, Automotive OEM and Industrial Coatings businesses. The site is also home to BASF’s Automotive Refinish Application and Training Center.
BASF’s Greenville site employs approximately 135 people and produces clearcoat and electrocoat products for the automotive industry.
Automotive recycling association executives representing 31 countries and three states convened a two day meeting in Las Vegas March 16 and 17 to discuss issues of mutual concern, and to determine a timetable and follow up meetings to continue their efforts to link automotive recycling associations around the world.
Jim Watson, President of the Automotive Recyclers Association (ARA), based in Fairfax, VA, representing recyclers throughout the United States and in ten countries around the world, welcomed the group.
Key points of discussion centered around issues for international consideration: air bag use and reuse, salvage acquisition, centralizing and codifying parts coding, licensing, certification, and safety training.
The need to provide input to auto manufacturers to design automobiles with the understanding that vehicles need to be designed for eventual recycling was also a key issue of discussion. Participants pointed out that auto design must allow auto recyclers to remove all the hazardous fluids that are contained in automobiles.
The international attendees all pointed out the need to improve the recycling industry's public image and to raise the awareness of governments and the public as to the valuable service, environmental stewardship, and positive economic impact that responsible automotive recycling has.
In addition to preserving precious natural resources and saving on landfill deposits, recycling automobiles reintroduces enough steel into the production stream to build nearly 13 million new automobiles and generate 46,000 jobs. Tens of millions of barrels of oil are preserved each year by recycling auto parts instead of manufacturing new parts, and many recycled parts are warranteed by the recycled parts supplier.
ARA Executive Vice President George K. Eliades, CAE, commented, "The International Roundtable was a significant step forward towards unifying automotive recycling worldwide. Its significance is in the recognition of the importance and value of opening communication, exploring opportunities for cooperation, and in creating the basis for a better understanding of possible approaches to effectively solve problems confronting automotive recycling, many of which are common across the globe. We anticipate future meetings to improve cooperation as a means to solve and prevent industry problems, and increase member profitability."
Founded in 1943, the ARA represents an industry dedicated to the efficient removal and reuse of automotive parts, and the proper disposal of inoperable motor vehicles and hazardous fluids.
Six months after Hurricane Katrina hit the Gulf coast, the situation remains essentially unchanged, according to the Collision Industry Foundation (CIF). Most residents still have no homes and the work conditions are not good, if there is work to be had at all.
Shortly after Katrina hit, National Auto Body Council (NABC) Executive Director Chuck Sulkala started receiving phone calls from all over the country from industry people expressing concern, trying to find information about friends and associates in the area. While the magnitude of the loss was unfolding, Sulkala set up a conference call to discuss what the collision industry could do for its own. In an unprecedented industry movement, over 100 people participated in this conference call.
"The response to this email asking for help for our industry colleagues was incredible," stated Sulkala.
With help from ASA and from SCRS affiliates, the Collision Industry came together as it had never done before. While the Red Cross and the Salvation Army were doing what they needed to do to assist everyone affected, the Collision Industry Relief effort focused specifically on people and families from this industry.
"Our goal was really pretty focused," added Michael Quinn, owner of 911 Collision Centers and current chairman of the ongoing Relief effort. "We wanted families back together in some semblance of normalcy, with kids in school and parents doing what they needed to do to keep families together." First and foremost, the Collision Industry Relief's objective is to get people back to work. With work, people can start rebuilding their lives.
When the first call for donations went out, it was thought this would fund Katrina relief and leave something to build on for future needs. It didn't take long for that scenario to be realized. Hurricanes Wilma and Rita ripped their devastating paths causing a magnitude of damage never seen before. And now, the 2006 hurricane season is just a few months away.
These past six months, we raised over $175,000. Today we have provided almost $125,000 in assistance, with over half of that going towards tools for technicians and painters. These are basic starter sets that, while not replacing what they may have had, at least allow them to return to work. In addition to providing tools, CIF has provided some limited assistance for other basics, as well as general gift cards to Wal-Mart so that people could purchase clothing, cookware or household goods.
The fundraising effort has been spearheaded by several key donations: AKZO's Collision Industry Assistance Initiative earmarked $50,000 specifically for tool replacement; DuPont challenged their Champion Distributors and raised over $41,000; CCC Information Systems made a donation of $25,000; the Coyote Vision Group of shops through the effort of their administrator Square One raised over $17,000; and Marco's Auto Body from California raised almost $10,000. Along with over 125 other donors from all across this industry a huge vote of thanks and appreciation is given, but our need is still there and funds are still desperately needed.
Jordan Hendler, Administrative Director for NABC, and the person who receives the initial calls requesting assistance, said, "We have had more people requesting aid in the last two months than in the prior four months combined. We are getting calls from people who are just now hearing about our program."
A great deal of credit needs to be given to our Relief Specialists led by Michael Quinn. The lead specialists are John Junk and Bob Schubert, assisted by Katherine Burnotes, Stacy Bartnik, Freda Thompson, Donna and Kevin Miller, Janet Chaney, and Dave Henderson.
"I am concerned about the large number of people now seeking assistance and the fact that we may not have enough funds to provide even some basic help", stated Sulkala. "What we have here is a chance to give back to some of our own people to help them stay in this industry and to get their families back together. If we can't help our peers in this industry when they are in need, then who do we expect to help us when we are the ones looking for help? ... We still have work to do and we still need the industry's help now even more than ever before."
Visit www.collisionindustryrelief.org to donate, or call 888-66-PRIDE.
Mary L. Kimbro has been named director, marketing, Refinish North America for PPG Automotive Refinish. The announcement was made by John Outcalt, general manager sales & marketing North America Automotive Refinish.
In her new position, Kimbro will be responsible for leading the marketing strategies and initiatives for the North American collision, fleet, and light industrial segments.
Kimbro has been with PPG for over twenty years and has held various positions of responsibility, including Technical Product Development, Training and Customer Service Manager, MVP Operations and Collision Center Marketing Director, and Regional Sales Manager, as well as her latest assignment as Director, Market Segments N.A.
Kimbro will continue to lead the collision and commercial coatings brand manager teams, the Logistics Team as well as the Communications, Customer Focus Center, Color, and Training teams. She will maintain an office in Strongsville, Ohio.
Sales Team Members Appointed
Dean Worley has been appointed Director of Sales, Collision USA. He will focus on PPG’s leadership position in the collision repair segment. He has been with PPG for 23 years and has held various positions of responsibility including manufacturing, distribution, powder coatings, and sales as well as his latest assignment as Director, Strategic Planning Automotive Refinish.
Brett Candler has been appointed Zone Sales Director, Zone 3. He will focus on driving refinish sales within the central third of the U.S. He has been with PPG for 21 years and has held various positions of responsibility including sales and management within several PPG business units as well as his latest assignment as Director, Business Development, Automotive Refinish.
Russ Boston has been appointed Director, National Accounts. Boston will focus on growing PPG’s current customer base and delivering new opportunities within the independent multi-collision repair segment. He has been with PPG for 19 years and has held various positions of responsibility including technical, marketing and sales as well as his latest assignment as Senior Manager, Business Development, Automotive Refinish.
Bill Shaw Named Director Global Color Innovation
Bill Shaw has been named director, global color marketing and innovation for PPG Automotive Refinish. In this newly created role, Shaw will be responsible for leading future global color strategies and innovations.
Shaw joined PPG through the ICI Autocolor acquisition in 1999. In his most recent assignment as Director, Refinish Marketing he was responsible for color, training, customer service and product markets for North America. He will remain in the Cleveland area and continue to maintain an office at the PPG Automotive Refinish headquarters in Strongsville, Ohio.
John Parran Appointed Zone 2 Sales Director
John Parran has been appointed sales director, Zone 2 for PPG Automotive Refinish. In his new role, Parran will be responsible for driving refinish sales within the western region of the U.S.
Parran has been with PPG for 22 years and has held various sales leadership positions within PPG, including his latest assignment as Director, Corporate Sales Development.
Parran will be relocating to Phoenix, Arizona.
Mitchell International, the San Diego, California-based provider of performance management solutions to the automotive insurance claims and collision repair industries, has proclaimed 2006 a year of celebration, marking six decades meeting the diverse needs of their industry and business partners.
“We’re very grateful for the loyalty of our valued customers and their continued confidence in our solutions, and for the support we’ve received from the industry over the last sixty years,” said Jim Lindner, Chief Executive Officer and Chairman at Mitchell. “We are determined to always remain worthy of that loyalty and support by continuing to listen to our clients, and delivering ever-better solutions to their evolving business needs.”
Originally successful for its publication of comprehensive Collision Estimating & Reference Guides, the Mitchell organization has evolved into a front-running provider of information and technology solutions. Mitchell introduced the first electronic estimating system (Mitchellmatix, 1983); the first business management system designed specifically for collision shops (Collision Shop, 1988); the first APD collision MIS system for insurers (Advanced Information Management, 1992); integrated digital imaging (ImageMate, 1992), the first Windows(TM)-based, comprehensive estimating solution (UltraMate, 1994); the first transaction-based, online estimating systems (FirstEstimate, FirstImages, 2000); web-based payments processing, salvage disposition, and tracking (Cashflow, Salvage Management, 2002); and many others.
“Leveraging that accumulated industry experience and insight helps us design solutions and systems to efficiently and effectively satisfy the needs of our customers,” adds Eli Rosner, Chief Information Officer at Mitchell. “With our aggressive recruitment of only truly innovative, expert technologists, we’ve built world class production and implementation teams able to develop and deliver innovative solutions and services.”
Innovation has played a central role in Mitchell’s success since it was founded in 1946 in San Diego, California by Glenn Mitchell. As the parts manager for a local car dealership, Glenn had the idea to compile detailed lists of auto part numbers, descriptions, and prices so his countermen could serve customers more quickly and efficiently. Glenn had developed and delivered a rudimentary information solution - and it worked. In fact, Glenn’s innovation worked so well, soon other dealerships, shop technicians, and insurance adjusters began asking for copies of his parts lists.
It was the quiet beginning of what many would call a revolution that transformed the collision industry and established the role of the impartial information provider as a critical point of connectivity between diverse industry participants. Mitchell has continued, in the spirit of its founder, to use innovation to serve customers more accurately and more efficiently.
“Sixty years helping shops and insurers to be more successful - and we’re just getting started,” Lindner concluded.
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