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This article originally appeared in the May 2006 Issue of INSIGHT
©2006 Collision Repair Industry INSIGHT All Rights Reserved
Allstate Files Notice of Appeal
PPG Names Jim Berkey Director of Refinish Alliance Programs
NGA Forms Technical Alliance for Member Computer Network Services
CAPA Certified Replacement Headlamps Approved by AIG Auto Insurance
FIX AUTO Names Michael Noirot General Manager
Owners of 911 Collision Centers in Tucson Receive DuPont’s Joe Jackson Award
PPG Names TASCO Auto Color Platinum Distributor of the Year
NASTF Establishes Board of Directors and Accepts Management Proposal from ASE
Allstate Invites Hometown Chicago to Celebrate 75 Years
CIC Portland Meeting: Gap Has Been Defined
INDUSTRY UPDATE
The Automotive Service Association (ASA) has reported that Allstate has filed a Notice of Appeal with reference to the recent decision in Allstate Insurance Company, et al. v. Greg Abbott, et al. issued by the U.S. District Court for the Northern District of Texas, Dallas Division.
The court had held that specific provisions preventing insurer-owned shops from doing business in the State of Texas were constitutional. The Automotive Service Association supported the legislation, H.B. 1131, in the Texas legislature.
The Allstate appeal is posted on ASA's legislative Web site, http://www.TakingTheHill.com.
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Jim Berkey has been named director, refinish alliance programs for PPG Automotive Refinish. This was announced by John Outcalt, general manager sales and marketing North America Automotive Refinish.
In his new position, Berkey will be responsible for leading the Refinish value solution strategies and initiatives for the Throughput Performance Solutions, CertifiedFirst, and MVP programs.
Berkey joined PPG in 1979 as an engineer at the Carlisle glass plant. He has held a number of operations positions in the flat glass, automotive glass, ARG, and architectural metals businesses. He has also held positions within corporate quality as well as his latest assignment as director of Lean Enterprise.
Berkey will relocate to the Cleveland area and maintain an office at the Automotive Refinish headquarters in Strongsville, Ohio.
The National Glass Association (NGA) has formed an alliance with Solid Systems, Inc. to provide its member companies access to an array of technical support services, automated data back-ups, Web and e-mail hosting, anti-spam and anti-virus support, and nationwide DSL service.
“The NGA has added these important components to its menu of member services based on valuable input from members of our National Windshield Repair Committee, who recognize the critical importance of reliable computer systems and support,” said Leo Cyr, NGA Vice President, Auto Glass Division.
The alliance will give NGA member companies, both large and small, access to the high-quality support team necessary to keep systems running efficiently and utilize emerging technologies. The services will be provided to association members at a substantial discount.
“Premier network services can substantially increase productivity and profit margins, but are cost-prohibitive for many smaller companies,” said Tim McDonald, founder and president of Solid Systems, Inc. “We are proud that our alliance with the NGA puts these services within reach of companies of all sizes.”
“There is no question that the NGA’s new technical support alliance brings significant value to our membership. It is yet another service we now offer that will help boost our member companies’ bottom lines, and you can’t get more valuable than that,” said NGA Vice President of Association Services David Walker.
Founded in 1948, the National Glass Association is the largest trade association representing the entire flat glass industry.
The AIG Personal Lines Division has approved the use of CAPA certified headlamps for the repair of AIG Auto Insurance policy holder’s vehicles. This is in addition to the company’s use of CAPA certified metal and plastic car parts.
“The AIG companies that underwrite private passenger auto insurance have joined the growing number of insurers who have chosen to specify CAPA certified lighting parts for their customers’ repair,” said Jack Gillis, Executive Director of CAPA.
“Certification to the comprehensive CAPA 301 Lighting Standard ensures not only comparability to the car company part that’s being replaced, but compliance to Federal requirements,” Gillis continued. “Most importantly, this decision will help AIG Personal Lines policyholders contain the cost of crash repair without compromising quality.”
Included in the CAPA standard are specifications for dimensional checks (form and fit), appearance, composition, coating performance, mechanical properties, adhesives, fasteners, hardware, photometric performance, electrical performance, aiming performance, and compliance with Federal Motor Vehicle Safety Standard 108 as implemented by the National Highway Transportation Safety Administration (NHTSA).
Lighting products covered by the standard include headlights, taillights, turn signals, brake signals, reflectors, and high-mounted brake lights.
FIX AUTO has named Michael Noirot Vice President/General Manager of the FIX AUTO Network. In this newly created role, Noirot will oversee all aspects of the FIX AUTO Network including sales, marketing, insurance relationships and vendor agreements.
“Michael is well-known with insurers and repairers, which is important as we continue to focus on growing the Fix Auto network,” said Eric Bickett CEO of FIX AUTO. “Our goal is to differentiate the FIX AUTO network from other collision organizations by delivering a better repair faster. With more and more insurers moving toward performance based relationships, the timing for what we are doing has never been better.”
Michael Noirot’s automotive industry experience spans over 20 years working in top collision industry companies like Mitchell International, ADP, ASA and CarStation.com.
"I am committed to, and believe in the network model,” said Noirot. “Whether you are a single location operator or a multi-site operator, the FIX AUTO Network model provides a scalable business platform with many benefits.”
Doug Kelly will be assuming the role of president of CynCast corporation a new source for information, integration services and transaction processing.
The FIX AUTO Network was established in 1997. Headquartered in St. Louis, Mo., FIX has 148 locations in the U.S. and 160 locations in Canada, making it North America’s largest network of independent collision repair centers.
Patrick O’Neill and Michael Quinn, owners of 911 Collision Centers in Tucson, Arizona, have received the Joe Jackson Industry Champion Award from DuPont Performance Coatings and DPC Champion Jobbers.
The award, which honors the memory of the director of DuPont Motor Sports who was killed in a plane crash in October 2004, recognizes individuals in the collision repair industry who, through outstanding leadership, heroism, charity or humanitarian works, reflect admirably on the industry.
Ray Anderson, vice president, DPC Refinish Systems Americas, presented the award to O’Neill and Quinn at the Champion Jobbers meeting in Nashville on March 24. Anderson was joined by Jan Jackson, Joe Jackson’s widow, in presenting the award.
O’Neill and Quinn, owners of six 911 Collision Centers in the Tucson area, have made it their mission to give back to the communities in which they work. They serve on the boards and provide financial donations to a variety of charitable organizations, including Big Brothers and Big Sisters of Tucson, Tucson Jobs Partnership and Jobs for Life, and Southern Arizona DUI Task Force (a holiday safe driving program). As part of their vision of helping to build strength and character in the leaders of tomorrow, they support many youth causes such as “Project Graduation” (an alcohol and drug-free all-night graduation celebration for high school seniors) and the “Car Care” Merit Badge for the Girl Scouts.
Anderson emphasized O’Neill and Quinn’s efforts following Hurricane Katrina last year. “Patrick and Michael split their time to help those in the industry who needed it most - our Gulf states colleagues,” Anderson said. “Michael, who chairs the Collision Industry Relief effort with the NABC and the Collision Industry Foundation, visited the Houston and San Antonio shelters in early September to locate those collision repair industry workers who were displaced, needed financial support, tools and jobs. While Michael was in New Orleans, Mississippi and Alabama wading through the devastation, Patrick was working double time keeping the business going and continuing the charitable activities to which they were committed. It was a true team effort based on their shared commitment to doing what they believe is right.”
Anderson added that since the effort began, Collision Industry Relief had served more than 100 autobody professionals and their families in need of help, “largely due to the dedication and generosity of individuals like Michael and Patrick.”
As part of the award, DuPont will donate $5,000 in the name of O’Neill and Quinn to Camp Mak-A-Dream, a medically supervised, cost-free camp for children, teens and young adults with cancer.
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TASCO Auto Color of Houston, Texas was presented the PPG Platinum Distributor of the Year Award at an awards banquet held during the annual PPG Platinum Distributor Conference in February, in Lake Buena Vista, Florida.
Tom Ferguson, president of TASCO Auto Color, accepted the award from John Leavy, director of platinum program for PPG.
The award is presented annually to the Platinum Distributor who has shown consistent sales growth based on dollars and percentage, maintains Platinum Plus status, and utilizes the Platinum Program offerings.
Ferguson joined the automotive aftermarket industry immediately after graduating from high school, working with his mother and stepfather in their distribution store. In 1972, he started his own distribution business. Then, in 1982, Ferguson merged the two businesses to form the present company, TASCO.
TASCO now has over 80 employees and has grown to include 13 regional locations that serve the Houston and Austin, Texas areas, as well as South East Texas and parts of Louisiana.
In 1994, Ferguson was one of the original 14 distributors who initially formed the Platinum Distributor Network, and was among the first members to serve on the first Platinum Council.
“The Platinum program has been a tremendous benefit to our business and has contributed greatly to our success,” said Ferguson. “I am especially impressed with the variety of useful and informative training programs PPG offers. They are well thought out and well presented by experienced instructors. When you have a great group of employees dedicated to the success of the business and excellent training programs to help them learn best business practices, you have a winning combination.”
According to Leavy, “The Platinum Program was created as a support mechanism and loyalty program for our single-line distributors with the ultimate goal of providing exceptional service and benefits for our refinish customers. We are very proud of TASCO Auto Color, Tom Ferguson and his organization, as they have more than met the goals we set to select our Platinum Distributor of the Year. We’re very proud to have him in the program.”
The National Automotive Service Task Force (NASTF) has announced several significant organizational steps:
1. NASTF has established a Board of Directors to oversee the organization and develop its mission, vision, and structure. The board held its first meeting April 4, 2006, at the semi-annual NASTF general meeting. Members are:
- Charles Gorman, Chair: Equipment & Tool Institute
- Charlie Elder, Vice Chair: Automotive Service Association
- Steven Douglas, Secretary/Treasurer: Alliance of Automobile Manufacturers
- Scott Brown: International Automotive Service Technicians Network
- John Cabaniss: Association of International Automobile Manufacturers
- Douglas Greenhaus: National Automobile Dealers Association
- Steve Handschuh: Motor Equipment Manufacturers Association
- John Lypen: Motor Information Systems ETI Service Management Group
- Tim McMullen: Associated Locksmith of America
- Karen Miller, ADAYANA Automotive Training Managers Council
- Shelly Nolder: Automotive Service Councils of California
- Chuck Roberts: National Institute for Automotive Service Excellence.
The board chose the National Institute for Automotive Service Excellence (ASE) to provide day-to-day management for NASTF.
The board will be finalizing an agreement as soon as possible with ASE for management of NASTF. Funding to support this program for the first year has been pledged by several organizations. Mary Hutchinson, former executive director of the National Automotive Technicians Education Foundation (NATEF), will become the NASTF manager and report to the NASTF board.
The board emphasized that the mainstay of NASTF has and will continue to be the voluntary technical committees for service information, training, tools and equipment, and vehicle security. The NASTF Communications Committee will be re-focused on publicizing and promoting the new NASTF to broaden industry awareness and participation.
The NASTF board of directors' first priorities are to develop voluntary program standards, a third-party dispute resolution (arbitration) process, and a sustainable funding model for NASTF.
Gorman commented, "This is an exciting time for the automotive repair industry. Through commitment and mutual understanding we have accomplished a great deal in the last few months. Although there are still challenges ahead, we have assembled the building blocks that will assure NASTF's success."
Elder added, "This is a major step toward assuring that service information, tools and training are available today and in the future for the independent automotive service industry."
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;
- availability of vehicle security information (added in 2004);
- communication outreach to automotive service professionals.
For more information, visit www.nastf.org.
Allstate turned 75 years old on Monday, April 17, 2006, and Mayor Richard M. Daley officially declared it "Allstate Day" in Chicago. Originally housed in the first Sears Tower in Homan Square, Allstate has partnered with the City of Chicago to deliver a variety of Good Hands(R) experiences to Chicagoans.
Allstate ensured that commuters were "in Good Hands" on its official birthday when it covered fees for all of the City-metered parking spaces located in Chicago's Loop, bordered by Wabash Avenue on the east, Lake Street on the north, Wells Street on the west and Jackson Boulevard on the south. In addition, Allstate also fed parking meters along Ontario Street, east of Michigan Avenue extending to Lake Michigan.
"Allstate is proud to call Chicagoland home. For decades, Allstate has been a leader in its industry, championing business innovations that ultimately benefit our customers. Likewise, Allstate has been active in social initiatives in the communities in which we live and work with the intention of helping improve the quality of life for people," said Allstate Chairman and CEO Edward M. Liddy. "We are proud of our history and look forward to continuing the tradition for many years to come with our talented employee and agency force."
As Chicago has grown and prospered, Allstate has supported civic and cultural efforts enriching local families and communities. Continuing this tradition, throughout the summer Allstate will partner with the Chicago Department of Cultural Affairs and Chicago Park District to present a lineup of activities, including:
- Chicagoans will be steered to a new outdoor sculpture exhibit designed in collaboration with the Department of Cultural Affairs, "Artists and Automobiles," which features car relics transformed into a variety of impressive works of art. Showcased in Grant Park and Michigan Avenue, "Artists and Automobiles" will be parked in these prominent locations throughout the summer.
- Car fanatics will brake at the Chicago Cultural Center this summer for "Chicago Car Culture," an exhibit that explores Chicago's contributions to automobile culture in America via a mix of history, artifacts, storytelling and art. Free and open to the public, "Chicago Car Culture" will be on display in the Chicago Cultural Center's Chicago Rooms June 9 through Aug. 31.
- A throw back to drive-in movies, the Chicago Park District's popular "Movies in the Park" program will screen twice as many films at parks throughout the city this summer through Allstate's gift.
- Allstate also will serve as a primary sponsor of more than 75 world-class events taking place at Chicago's Millennium Park this summer.
Celebrating its hometown, Allstate will continue its anniversary festivities in August when more than 2,500 top agents from across the country visit Chicago for Allstate's National Conference.
Sears adopted the Allstate name from a tire sold through its catalogs. Initially funded in 1931 with $700,000, it didn't take long for Allstate insurance to catch on. On May 17, 1931, William Lehnertz of Aurora, Ill., became the first Allstate policyholder. And, a few months later, Allstate paid its first claim when a customer holding a car door handle broken off in a theft attempt walked into Allstate's one-room Chicago office. A successful presence at the Chicago World's Fair in 1933 led Sears to place Allstate agents in Sears stores, where they became mainstays for decades. Ultimately, Sears took Allstate public in 1993, and the company became totally independent of Sears in 1995. At the time, the 1993 stock sale was the largest initial public offering in U.S. history.
One of the long-simmering debates among shops and insurers involves when body work ends and paint work begins. The transitioning processes, which are called different things including "feather, prime and block," are a frequent source of conflict in terms of whether and how shops should be compensated.
The Collision Industry Conference (CIC) Estimating Committee has spent much of the past year holding panel discussions and working to craft a written statement that "defines the gap" in order to try to bring some clarity to the issue. At the CIC held in Portland in April, the committee received a nearly unanimous vote in favor of its ninth version of the feather / prime / block explanation.
"The repair process associated with damaged painted body panels typically involves multiple operations: body repair, feather, prime, block, and refinish," the statement reads. "The body repair process includes metal finishing and/or the use of body fillers to return the body panel to its undamaged contour. The repaired area is finished to 150 grit and free of surface imperfections. Feather, prime and block are not-included refinish operations that complete the process from 150 grit to the condition of a new undamaged panel. The refinish process starts at the condition of a new undamaged panel and is outlined and documented in printed and electronic time guides. The body / paint labor and materials necessary to prepare the repaired area from 150 grit to the condition of a new undamaged part is a valid and required step in the process. The labor and material allowance for these operations requires an on-the-spot evaluation of the specific vehicle and damage."
The only concern with the statement voiced at CIC in Portland centered around the word "refinish" in the one sentence.
"It says feather, prime and block are not-included refinish operations," industry consultant and former CIC chairman Lou DiLisio said. "I think that's not correct. They are not included operations. However they are not all refinish operations. Two of them are, one is not."
Committee vice-chairman George Avery of State Farm said that was an issue of much debate within the committee related to which column of the estimate - body or refinish - it should be placed.
"What the committee came around to was that the activity of featheredging requires material, and the activity of blocking requires material, not to mention the materials associated with applying the primer, so the committee moved toward putting it in the refinish column for the purpose of making it a little easier with the tools that we have to perhaps allow the automatic calculation of materials," Avery said.
DiLisio said he agreed that shops should be reimbursed for the materials necessary, but felt the drafted statement was not as clear and accurate as it should be. Most CIC attendees, however, voted to approve the statement as written.
Committee chairman Chad Sulkala said the committee's work on the issue has already netted some positive results. Motor Information Systems has already added the following to its estimating guide: "Replaced welded panels include grind, fill and smooth welded seams up to 150 grit sandpaper. Prime and block (high build/primer-filler) is a required procedure that continues after the 150 grit sanding to restore the panel to that of a new undamaged condition. It is Motor's position that prime and block is a process best reserved for the judgment of an estimator or appraiser following a thorough on-the-spot evaluation of the specific vehicle and damage in question."
The Collision Industry Foundation (CIF) has announced that, facilitated by the CIF, CCC Information Services Inc. and Mitchell International have partnered to donate personal laptop computers for use in the homes of collision repairers victimized by Hurricane Katrina.
Knowing how serious the circumstances were for some collision repairers, the CIF and the NABC quickly formed Collision Industry Relief in the wake of Katrina. The computer donation effort was the brainchild of John Junk, senior vice president of SCA Appraisal Company, and one of the senior specialists working to help collision repairers in New Orleans and other affected areas, assisting them in the wake of Katrina’s devastation.
“It was a heart-wrenching scene, one that compelled me to get these people the computers they so desperately needed,” Junk commented. “My first and immediate thoughts were to go to the source - the technology providers to our industry - and tell my story. Since I knew Mitchell and CCC extremely well, I approached them, and before long I had a commitment. Once that happened, everything else fell into place.”
The technology providers responded generously. Mary Jo Prigge, president of Service Operations for CCC, and Jack Farnan, Mitchell International’s vice president of human resources, came forward on behalf of their respective companies, expediting a combined donation of approximately 75 end-of-lease and other customer-returned laptops. In addition, CCC contributed $25,000 in cash toward relief efforts.
“The importance of electronic communication became clear as the nation watched family and friends struggle to connect with each other following the hurricane,” said Prigge. “CCC is happy to provide an additional tool to renew their lines of communication and ease one of their continuing challenges.”
“Mitchell International is very proud to have had the opportunity to participate in and serve the collision repair industry for the past 60 years, and is grateful for the industry’s loyalty and support,” stated Farnan. “It is our privilege to be able to give something back to the many without whom we would not enjoy our persistent success. We are extremely happy to support the Collision Industry Foundation and its relief effort for our industry colleagues.”
“Imagine, in this day and age, trying to conduct business or even daily living without being connected to the Internet or having access to e-mail,” said Michael Quinn of 911 Collision Centers in Tucson, Arizona, Collision Industry Relief effort co-founder and committee chair. “The computers donated by CCC and Mitchell will help get our people back on the road to recovery and allow them to spend the precious resources they have on food, furnishings and other basics. This is real assistance for our people.”
“Charity goes a lot further in a person’s mind and heart than tax write-offs and depreciation,” concluded Junk. “I think CCC and Mitchell’s actions speak to that ideal and show the true spirit of what this industry is all about.”
In just over seven months the Foundation has generated donations of over $175,000 for industry people in need as the result of natural disasters such as hurricanes, fires and floods. Funds go towards buying tools and other supplies, household goods and clothing. With $150,000 already put to work on behalf of the less fortunate, the Foundation continues to look for those willing to contribute, as demand for aid continues to grow at an unprecedented rate.
The Collision Industry Foundation seeks to raise funds through projects and initiatives that provide for charitable or educational causes reflecting the character and heart of the men and women of the collision repair industry. This includes the Collision Industry Relief effort, a project within the Collision Industry Foundation to help collision industry victims of current disasters and those that may happen in the future. For more information, visit the website at www.collisionindustryrelief.org. All donations made are tax-deductible.
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