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Letter to the Editor
This article originally appeared in the October 2006 Issue of INSIGHT
©2006 Collision Repair Industry INSIGHT All Rights Reserved
State Farm Moves to Single Auto Repair Program
MQVP Reorganizes and Names New Executive Director
Vehicle Damage Disclosure Bill Introduced in House
Insurance Auto Auctions Forms International Marketing Alliances
ASA Collision Division Operations Committee Meets to Discuss Parts Certification Process
Fascia Fastener Kits Now Available to All Ford L-M Dealers
United Auto Expands Presence in UK
CIC Report - Database Task Force Meets with Audatex
CARSTAR’s Generous Annual Pledge for Relief Funds: A Practical Model of Industry Generosity
INDUSTRY UPDATE
State Farm Mutual Auto-mobile Insurance Company, the largest auto insurer in the U.S., will move to a single auto repair program companywide.
The new Select Service(R) program will replace Service First(R) as it is implemented throughout the U.S. and three Canadian provinces (Alberta, New Brunswick, and Ontario).
Introduced in 1995, Service First was one of the initial auto damage service programs at State Farm. In addition to one-stop convenience for customers, Select Service extends en-hanced services including a national limited lifetime repair warranty, guaranteed completion dates, wash and vacuum of repaired vehicles, and pick up and delivery service within a reasonable distance.
As implementation begins in each area, local State Farm management will contact repair facilities to initiate the application process. Implementation of the new Select Service program began earlier this year in California, Illinois, Indiana, and Michigan, and is scheduled to be completed companywide by year-end 2007.
The new Select Service program establishes a performance-based process that aims to benefit State Farm customers, the company, and the repairer by creating a stronger strategic business relationship with repairers.
“The new Select Service program provides our customers access to quality auto repair service while making the overall claim process more efficient for our customers.” said State Farm Claim Consultant George Avery. “As always, our customers have the option of using the repair facility of their choice.”
The collision repair industry consistently ranks State Farm as one of the best insurers with which to do business. In a press release, the company asserts that State Farm intends to maintain quality relationships with repair facilities while continuing to provide the highest level of claim service to its customers.
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I-CAR will officially open for business in Australia with the formation of a separate business unit by the signing of a licensing agreement in late September. The signing ceremony will take place at the Hilton Hotel in Brisbane, Australia on September 20.
For the past year, Richard Pratt has worked tirelessly to get the I-CAR organization established in Australia. As a result, Richard is now the General Manager of I-CAR in Australia.
“For too many years, there have been limited opportunities for technicians to improve their knowledge. The introduction of I-CAR, combined with the changing relationship between auto repair facilities and insurance companies will re-enforce the industry’s belief in a standardized process to perform repairs and to follow OEM guidelines. The need for training is clearly here,” said Pratt.“I-CAR has a well-established reputation in the collision industry, so it makes sense for us to license their training model and materials rather than attempt some form of duplication."
"We are excited about the growth that I-CAR has experienced based on the industry’s support for I-CAR in Australia, it will be just as successful in Australia as it is in the U.S. There’s a definite need for training in all industry segments in Australia that must be filled,” said Tom McGee, I-CAR President & CEO.
Pratt and the newly established I-CAR Australia Trust has successfully received financial backing from insurers and collision repair facilities in addition to the heavy financial support of the Motor Trades Association of Queensland, in which Pratt serves as General Manager, to enable the launch of I-CAR in Australia. A series of I-CAR Live training programs will be licensed to Australia in the first five years and instructors will teach in 12-15 venues around the country.
MQVP Inc., an aftermarket parts certification program, has named John Arvay Executive Director of MQVP.
“The nine month executive search process for the position of Executive Director has been completed. The search included candidates from the automotive, aftermarket, and insurance industry, as well as qualified talent inside the company,” commented Bill Hindelang, CEO.
Arvay joined MQVP Inc. in October of 2002 and began his employment as Program Development Manager.
“John embraces the overall mission and vision of MQVP Inc. and will be responsible for the day to day operations and profitability of the program, as well as creating initiatives to grow program awareness and build demand for MQVP(R) certified products,” said Hindelang.
After active duty in the U.S. Navy and reserves, Arvay gained more than ten years experience in top management positions in the manufacturing of building supplies and automotive tier one supply industry. He has played an integral part in quality management system registration and implementation of QS9000 in his previous position as Vice President of a mid-sized metal stamping facility in Dundee, Michigan. He has worked as a business consultant and has experience as a manager in overseeing Production, Quality Control, Maintenance, Tooling, Financial Services, Accounting, and Purchasing.
Arvay currently holds five Professional Certifications from the American Society of Quality (ASQ) including Certified Quality Auditor and Certified Quality Process Analyst. He is also an RAB certified ISO 9000 QMS Provisional Auditor.
Hindelang stated, “I am pleased with this decision. Not only does John know the technical details of the MQVP program and system, but he has industry wide contacts in this Collision Repair Crash Parts Industry. John is clearly the best candidate and properly qualified for the Executive Director position.”
MQVP Inc., 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 company is currently in the process of reorganizing.
U.S. Rep. Cliff Stearns, R-Fla., has introduced legislation that calls for the National Highway Traffic Safety Administration (NHTSA) to require the disclosure of all information pertaining to the fair market value and safety of damaged vehicles. Stearns is chairman of the Commerce, Trade and Consumer Protection Subcommittee.
The Damaged Vehicle Information Act, H.R. 6093, would also require that all contracts canceled on a passenger vehicle due to damage or theft be disclosed to the public. This would allow the public full access to all the motor vehicle's information. This information would be available electronically.
The information must include the vehicle identification number (VIN), date the contract was terminated, odometer reading on the date of the termination of the contract, whether any of the airbags were deployed, and the cause of the termination of the contract. Among reasons for termination include damage caused by water, collision, fire, and theft and recovery.
Similar legislation was introduced in the U.S. Senate by Sen. Trent Lott, R-Miss. His legislation, S. 3707, requires that information held by insurers regarding total loss vehicles be accessible to the public.
Insurance Auto Auctions, Inc.(IAA), a provider of automotive total loss and specialty salvage services in the United States, has formed four non-exclusive international marketing alliances with auto purchasing businesses in Latvia, Lithuania, Belarus, and Poland. These formal alliances aim to enable IAA to leverage local marketing expertise in an area of the world where growing demand exists for American insurance salvage vehicles.
"International demand for American cars has increased significantly over the past several years and IAA currently sells vehicles to buyers in 65 different countries," said Dan Oscarson, IAA Vice President of Marketing. "Stronger economies in Eastern Europe, Russia, and other surrounding areas are fueling the growing demand for affordable transportation in these regions. With the ease of Internet access to view and bid on vehicles in the United States through I-bid LIVE, buyers are quickly able to help meet that demand."
Under the terms of the marketing alliances, IAA will participate in joint advertising and promotional initiatives in the local markets. The reach of these marketing initiatives will extend not only to the Baltic region, but to Moscow and even to Kazakhstan.
"In addition to our ongoing efforts to recruit quality buyers both here and abroad, we are pleased to enter into these new marketing alliances as a means to create additional exposure of the vehicles we sell to buyers in a region where demand for American vehicles is strong," said Tom O'Brien, President of Insurance Auto Auctions.
"These agreements will help IAA leverage our hybrid bidding system that combines live local auctions with live auction Internet bidding to optimize selling prices," O'Brien continued. "As more people adopt Internet technology around the world and while economic and international legislative conditions remain favorable, we expect to see continued buyer support and growth both here and abroad."
Insurance Auto Auctions, Inc., founded in 1982, provides insurance companies with cost-effective, turnkey solutions to process and sell total-loss and recovered-theft vehicles. The company currently has 95 sites across the United States.
The Automotive Service Association's (ASA) Collision Division Operations Committee met recently in Grand Rapids, Michigan. Topics of discussion included updates on the CIC Database Task Force meeting at CCC Information Services/ Motor, recent McCarran-Ferguson actions, updates on the State Farm Select Service program and the Progressive Concierge program, as well as various ASA subcommittee updates.
During the meeting, the Operations Committee was also provided with an update from Certified Automotive Parts Association (CAPA) representatives, including an overview of CAPA from Jack Gillis, executive director; an overview of Intertek; a tour of the laboratory; and a tour of the vehicle test fit area. The Intertek/Entela testing facility is used by CAPA for automotive parts testing and certification purposes.
As an information-gathering exercise, the Collision Division Operations Committee asked questions regarding the certification process, the decertification process, the recall process and the role of competitive parts in the marketplace.
"In addition to being top-quality business leaders in collision repair, it's essential for members of the ASA Collision Division Operations Committee to be engaged, involved and informed," said Denise Casper-sen, manager of ASA's Collision Division. "When Bob Anderson, CAPA chairman, invited the committee to tour the Intertek ETL Entela testing facility and question the process, our members volunteered two work days to better understand the CAPA certification process and ex-press concerns from repairers."
Attendees from ASA headquarters included Ron Pyle, ASA president and chief staff executive; Caspersen; Duancxay Phommachan, division assistant; and several committee members. CAPA representatives in attendance were Gillis, Anderson, and Gerry Kottschade, CAPA board member.
As a follow-up to the meeting, the ASA Collision Division Operations Committee has begun an aftermarket parts field study to determine parts usage, quality, certification and the complaint process.
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Ford Motor Company has recently made thirty-nine fastener kits available to all Ford, Lincoln, and Mercury dealers via their normal parts distribution channel. The kits include ten new fascia applications and are used in conjunction with many of Ford, Lincoln, and Mercury’s high-volume car bumper fascias. The kits include all nuts, bolts, washers, clips, rivets and push pins necessary to properly install the fascias. Each kit is assigned a unique part number and must be ordered separately when purchasing the compatible fascia from a Ford, Lincoln, or Mercury collision parts wholesaling dealer.
“Fascia replacement is among the most common collision repairs, yet repairers keep describing how they have to search, scrounge and salvage proper fasteners to complete repairs,” said George Gilbert, manager of Ford Customer Service Division’s (FCSD) Collision Parts Truckload Program. “This slows repair cycle time and can jeopardize the quality of the finished repair. With the kits, repairers can be assured of having all the fasteners they need before the repair begins.”
The kits, once only available to Ford, Lincoln, and Mercury dealers that participated in Ford Customer Service Division's bulk-ordering Collision Parts Truckload Program, have been moved to the larger parts distribution centers to increase dealer availability. Now dealers can order the kits along with their normal parts ordering procedures, which makes the kits available to any body shop through a national distribution network of dealers.
United Auto Group, Inc., the international automotive retailer, has acquired nine locations and 22 franchises in the United Kingdom. The acquired franchises represent a combination of premium brands including BMW, MINI, Mercedes-Benz and Smart along with two Chrysler Jeep Dodge dealerships.
UAG Chairman Roger Penske commented, "We are delighted to expand our presence in the United Kingdom with these outstanding brands. The franchises we acquired have established an outstanding reputation based on commitment to their customers and employees and will complement our existing operations."
The franchises acquired are expected to contribute approximately $700 million in revenue on an annualized basis. The acquisition was financed using the company's UK-based credit facility.
United Auto Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 321 retail automotive franchises, representing 40 different brands, and 27 collision repair centers. The company has 174 franchises in 20 states and Puerto Rico and 147 franchises located outside the United States, primarily in the United Kingdom.
Sherwin-Williams Automotive Finishes and the Grand Prix of Cleveland are giving fans a chance to own a one-of-a-kind piece of history from the 2006 Grand Prix of Cleveland Presented by U.S. Bank. As part of the “Grand Prix of Cleveland Helmet Painting Contest,” fourteen custom-painted racing helmets, autographed by top Champ Car drivers and racing legend Bobby Rahal, will be sold in separate auctions to raise money for the United Way of Greater Cleveland and the Greater Cleveland Sports Commission.
The helmets, individually designed and painted with Sherwin-Williams automotive paint by thirteen Cleveland-area automotive shops and artists, were on display at the Sherwin-Williams Automotive Finishes (SWAF) booth at the 2006 Grand Prix of Cleveland. Each helmet was autographed by the top three finishers at the 2006 Grand Prix of Cleveland – A.J. Allmendinger, Bruno Junqueira, and Oriol Servia, as well as racing legend Bobby Rahal, winner of the inaugural Grand Prix of Cleveland in 1982.
“We are excited to present this unique auction to the fans in order to raise money for two great organizations,” said Chuck Kosich, General Manager of the Grand Prix. “We celebrated the great history of the Grand Prix of Cleveland with our 25th anniversary festivities this year, and thanks to Sherwin-Williams and the participating artists, fans have the opportunity to own a piece of that history.”
The helmet designs are unique, with each participating automotive shop using Sherwin-Williams automotive paint to create its own masterpiece. The designs range from a patriotic themed helmet to a specially commissioned 25th Anniversary Cleveland Grand Prix helmet designed by SWAF and Nick Lundgreen, Lundgreen Motorsports, LLC,t of Indianapolis, IN.
“As the official automotive paint supplier to the Champ Car World Series, Sherwin-Williams takes great pride in the excellence of our products. These fourteen great artists have done a wonderful job using Sherwin-Williams paint to create unique works of art that any racing fan would be proud to own,” said Tom Hablitzel, Vice President of Marketing, Sherwin-Williams Automotive Finishes Corp. “With our headquarters in Cleveland, and hundreds of employees who call this city home, Sherwin-Williams is proud to work with the Grand Prix to give back to our great community.”
United Way serves 400,000 residents annually in Cuyahoga County. It is the community’s largest funder of health and human service programs and is committed to improving the quality of life for all Greater Clevelanders.
The Greater Cleveland Sports Commission is a non-profit economic development organization that strives to enhance the economy, image, and quality of life in the Greater Cleveland community by attracting and creating significant sporting events and activities.
The Collision Industry Conference (CIC) Database Task Force met with representatives from Audatex, a Solera company on August 21st and 22nd at their headquarters in San Ramon, California. The Task Force is comprised of representatives from the three largest national collision repair trade associations: the Alliance of Automotive Service Providers (AASP), the Automotive Service Association (ASA) and the Society of Collision Repair Specialists (SCRS).
This was the third such meeting the three organizations have had with the information providers. The meeting, which spanned two days, was spent covering macro-level issues including but not limited to: substrate identification, specific OEM repair and replace procedures, blending formulas, refinishing flexible substrates, disclosure of database changes, the request for review process and two- way communication (eliminating re-keying of estimate data).
ASA Collision Division Chairman, Darrell Amberson stated, “Audatex’s commitment to the Task Force and the industry is apparent. An example is their solution to addressing two-way communication. To date, they are the only information provider to implement a solution that allows repairers to download estimates from their website that was prepared by their staff.”
SCRS Board of Director Barry Dorn commented, “The formation of the Task Force was a direct result of the lack of disclosure of significant database changes. Audatex clearly understands the industry’s concern, and is willing to continue working with the Task Force to provide a solution. It is our hope that an announcement will be forthcoming in the ensuing months that puts Audatex at the forefront of change when it comes to database disclosure.”
“It’s my belief that Audatex understands the urgency surrounding substrate identification. Repairers rely on their database not only for an accurate estimate, but for pertinent information which could be critical to the repair. The lack of substrate identification at the time of the estimate will continue to cause problems throughout the repair industry until a solution is put in place. Audatex’s commitment to working with the Task Force and the OE’s on addressing this is the first step of a long journey,” stated Nick Kostakis, AASP Board of Director.
As a result of the meeting, Audatex has added several of the Task Force members to its advisory council. The Task Force will continue to report upon the progress made with information providers at future CIC meetings.
As Collision Industry Relief efforts came to a close for 2005, CARSTAR's gift of $2,842 was, by chance, the last donation used to help collision repairers after Hurricane Katrina. CARSTAR's fundraising, based on a continuing annual pledge, can serve as a model for the industry. This year CARSTAR raised money for victims during the course of its annual conference.
"We sold conference logo lapel pins at ten dollars apiece," explained Bob Keith, Director-Environmental, Safety and Production for CARSTAR. "Our event included a trade show with our preferred vendors, which provided an excellent venue to spread the word about the good work Collision Industry Relief was doing for those experiencing difficult times."
"CARSTAR's decision to act as a contributor to the CIF on a regular basis is invaluable given that the call for good works will never disappear from the industry," states Doug Webb, CIF chairman and co- founder. "... The Collision Industry Foundation salutes CARSTAR, a company with a charitable heart that serves as a great example for all of us."
Headquartered in Overland Park, Kansas, CARSTAR is the largest group of auto body repair shops in North America. The privately held company currently has 270 locations in 25 U.S. states and the District of Columbia, and 110 Canadian locations.
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©2006 Collision Repair Industry INSIGHT
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