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Letter to the Editor
This article originally appeared in the January 2007 Issue of INSIGHT
©2007 Collision Repair Industry INSIGHT All Rights Reserved
Hartford's Dimensions Auto Insurance Plan Available in 28 States
ABRA Auto Body & Glass Appoints Durham Vice President ABRA-MN
N.A.D.A. Official Used Car Guide Integrated into Reynolds and Reynolds Dealer Valuation Applications
CARSTAR Announces New Sales Management and Continued Growth
Total Resource Auctions Announces New Locations and Management Team Changes
Mentors At Work Offers Trial Version
CIC Asks for Top Collision Repair Industry Issues for 2007
Mike Conway Joins Sherwin-Williams as Director of Corporate Communications and Investor Relations
INDUSTRY UPDATE
In a major victory for the OE vehicle manufacturers, an administrative law judge of the U.S. International Trade Commission has ruled in favor of Ford in its suit against Keystone Automotive Industries, Inc., the aftermarket parts distributor, and other aftermarket parts suppliers in a case covering patents and copyrights on OE sheet metal parts.
Keystone plans to contest parts of the preliminary ruling in the patent violation suit filed against the company by Ford Global Technologies LLC.
The ruling, issued December 4 by an administrative law judge of the U.S. International Trade Commission, said that seven of ten design patents related to the Ford F-150 truck were enforceable and infringed Ford's design patents. However, the judge ruled that the other three patents are invalid because of Ford's prior public use of the designs.
Shares of Keystone fell on the news, tumbling $5.98, or 15.4 percent, to $32.78 in trading on the Nasdaq. The stock has traded between $28.88 and $46.92 over the past year.
Ford initially charged that Keystone and the other respondents infringed 14 design patents directed to various exterior parts of Ford’s 2004/ 2005 F-150 truck, but dropped four design patents before the trial commenced.
The judge ruled that seven of ten design patents directed to parts for the Ford F-150 truck were enforceable and infringed Ford’s design patents, but agreed with Keystone and the other respondents that three patents are invalid due to Ford’s prior public use of the designs.
The judge did not accept the respondents' further arguments that Ford's prior public use and other conduct also render the remaining seven patents invalid and unenforceable, and that even if valid, none of the ten patents is infringed. Consequently, he ruled that the importation of automotive parts covered by these seven patents violates Section 337 of the Tariff Act of 1930, as amended.
This ruling will be reviewed by the International Trade Commission, which must issue its ruling on or before March 5.
Keystone and the other respondents believe the judge correctly found an invalidating public use and properly invalidated three of Ford’s patents.
The respondents, however, will shortly file a petition urging the Commission to review and reverse other portions of the initial determination, as well as earlier rulings by the administrative law judge. The Commission has 45 days from the date of service of the initial determination to decide whether or not it will grant, in whole or in part, a petition for review. If the petition is granted, the Commission will then set a briefing schedule.
If the Commission, nonetheless, ultimately finds a violation of Section 337, it will issue an order prohibiting further importation of the covered parts into the United States.
The Commission's actions are subject to the review by the President of the United States, who has the authority to approve or disapprove the Commission's action. The Commission's final decision can then be appealed to the United States Circuit Court of Appeals for the Federal Circuit.
The seven patents in question cover 13 parts sold by Keystone. It is not anticipated that the aggregate loss of sales of these parts over time would be material to the financial condition or results of operations of Keystone. However, depending upon the nature and extent of any adverse future rulings, Ford and other automobile manufacturers may attempt to assert similar allegations based upon design patents on a significant number of parts for other models, which over time would assuredly have a material adverse impact on the entire aftermarket collision parts industry.
If the courts uphold Ford, hundreds of copyright patents will surely be filed, both by Ford and other OEs to protect their design rights and patent position on sheet metal for new vehicles as they are introduced.
This court victory for U.S. vehicle manufacturers will bring badly needed jobs back to American workers in Detroit and other cities with OE stamping operations.
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The Hartford Financial Services Group, Inc. has announced that the enhanced version of its Dimensions(SM) with Auto Packages personal auto insurance program is now available to customers in six more states: Minnesota, Oklahoma, Colorado, Kansas, Nevada and New Mexico.
Dimensions, which is sold through the company's network of independent agents, is a "multivariate" insurance plan that generates a customized price for an individual policyholder. First introduced in 2003, the plan was modified in 2006 and is now being offered with four different package options in many states. Each package provides a unique bundle of features and benefits to best match an individual's insurance needs.
"Research tells us that people want more choices and a better understanding of those choices when shopping for insurance," said Mike Concannon, senior vice president of personal lines at The Hartford. "With our new auto packages, agents and their sales staff can quickly provide clients with a quote on four different coverage options, each with its own level of protection and features. This approach combines greater choice with the conveniences of one-stop shopping - a win-win for both agents and customers."
The four Dimensions with Auto Packages options - Essential, Sentinel, Sentinel Gold, and Sentinel Platinum - all come with standard features offered by The Hartford, such as 24-hour claims service and Roadside Assistance, and discounts for purchasing an accompanying homeowners policy. Additional coverage features and pricing depend on which of the four packages is purchased.
For example, Essential, the lowest-priced package, offers a choice of any limit and deductible, multi-policy and safe driver discounts, and a zero deductible for windshield repair. Sentinel Platinum includes accident forgiveness, a renewal assurance guarantee, emergency expense coverage, and a 12-month policy term.
Obtaining and comparing quotes on the four auto packages is made easy using the insurer's online Quote-to-Issue (QTI) system for rating, quoting and issuing the Dimensions plan.
"Agents have been pleased with the competitively-priced packages and the simplicity of using the QTI platform," noted Concannon. "We're helping them become better equipped to meet the different needs of their clients, which can lead to stronger and longer-term customer relationships."
The Dimensions plan is now available to customers in 28 states. Since it was launched earlier in the year, the company has seen an overall increase in policies quoted and issued under the new plan.
ABRA Auto Body & Glass has announced the appointment of William "Glenn" Durham as Vice President of its Minnesota market. Durham's main responsibility will be to establish and meet financial, team member satisfaction, and customer satisfaction goals for the Minnesota market.
Durham has been with CARSTAR Collision since November of 1997. He began his career with them as the General Manager at one of the CARSTAR locations in Kansas City, was promoted to District Manager in 1999, and became Director of Company Store Operations in 2004. Prior to that, he worked as a paint and body technician at several body shops in the Kansas City area.
"ABRA-Minnesota is ABRA's oldest and largest corporate market," stated Durham. "I welcome the challenge of learning and working within ABRA's established procedures, as well as adding my expertise to help bring operations to even greater levels of efficiency."
Scott Krohn, ABRA's Senior Vice President of Operations, commented, "Glenn has a depth of knowledge in collision repair operations that will positively impact our operating model for the betterment of our customers and insurance partners. ABRA is dedicated to continuous industry improvement and leadership, and the addition of Glenn to our team helps us in achieving our goals."
ABRA Auto Body & Glass is a national damaged vehicle repair company specializing in collision repair, paintless dent removal, and auto glass repair and replacement. Started with one repair center in 1984, the company has grown to ninety-two facilities in twelve states. Plans for accelerated national growth over the next several years include acquiring existing facilities and building new locations.
N.A.D.A. Official Used Car Guide Integrated into Reynolds and Reynolds Dealer Valuation Applications
The N.A.D.A. Official Used Car Guide(R) Company's market-reflective used vehicle values have recently been integrated into two of Reynolds and Reynolds Company's dealer valuation applications to help guide dealers through the valuation process.
Reynolds now offers dealers easy access to N.A.D.A. values through two of its computer-based dealer management systems, Vehicle BookOut in the Reynolds Desking application, and the Equity Calculator within its Contact Management program. Both tools are designed to help dealerships manage inventory, provide loan and lease payment comparisons, and generate various management reports. They also pull used vehicle data directly from the N.A.D.A Official Used Car Guide to help dealers determine trade-in and retail used passenger car and light-duty truck values.
"Integrating N.A.D.A. values into Reynolds and Reynolds new product extensions will help satisfy dealer needs for faster, more market-reflective vehicle valuation information," said Mike Stanton, vice president and chief operating officer, N.A.D.A. Official Used Car Guide Company. "Book Out and Equity Calculator will put our information right where it is most convenient for the dealer to access it. This new product is consistent with our goal to give dealers easy access to the information they have trusted and relied upon for years. It's a necessary link in the evolution of our offerings and we look forward to continuing working with Reynolds and Reynolds on other products to satisfy dealer needs."
Dealer access to computer-based valuation data aims to speed up the vehicle valuation process. In addition to this new Reynolds and Reynolds product, N.A.D.A. currently offers online-based valuation applications to support this trend.
The N.A.D.A. Official Used Car Guide Company, a NADASC subsidiary, has provided used vehicle valuation products and services since 1933.
CARSTAR has announced the additions of Brad Snow and Mike Brisco as Franchise Development Managers.
Brad Snow will be responsible for markets in the West and Northwest. Snow has thirteen years of experience in sales, most recently with ten years of senior sales management service at Automatic Data Processing (ADP) and Audatex, a Solera Company, focusing on the auto body industry.
“Snow’s strengths in the areas of business management consulting, strategic selling, and business process analysis, coupled with his consistent history of entrepreneurial-driven success, gives CARSTAR a significantly qualified resource for our franchise development team”, said Paul Evans, Director of Franchise Sales.
Mike Brisco, who served as Regional Service Manager for CARSTAR’s Tampa, Florida area for the past eighteen months, moves immediately to his new role of Franchise Development Manager for the entire Southeast Region.
CARSTAR has continued growing, with four new locations in recent months, bringing the store total for the franchise organization to 380 locations across North America. A total of 26 new stores were added during 2006. System wide, same store sales are also reported as strong with the YTD comparative sales report showing a healthy 6.2 percent increase over the same period last year.
Evans said, “Our stores continue to report increased sales even in these times when the industry as a whole is trending downward. This is fueling an interest in CARSTAR by larger shops than we have seen in the past. We don’t have a magic bullet, but obviously the combination of initiatives that we offer our franchisees is working to reverse the industry downtrend. That reversal is a very attractive incentive to shop owners. Big shop owners simply realize they will see a greater benefit, because their multiplier is larger.”
Fred Haas Toyota World, in Spring, Texas, and David Maus Toyota, in Longwood, Florida, were both named the Toyota Certified Collision Center (TCCC) of the Year during a special presentation at the TCCC National Managers’ Meeting held in November. They were selected from among the 153 Toyota Certified Collision Centers (TCCC) nationwide.
The award is based on a wide range of criteria that focus on customer satisfaction, technician and manager training and certification, facility, equipment and a series of TCCC benchmark achievements. The award was the second in a row and third overall for Fred Haas Toyota World, the first shop to be certified when the TCCC program was introduced in 1997.
“It’s an honor to earn the award again and it’s a reflection of the great people in our shop who work hard every day and conscientiously follow the TCCC procedures,” said Fred Haas Collision Center Director Jeff Debner. “This program has been outstanding for our dealership and for our customers.”
“Fred Haas Toyota World’s Collision Center is a great example of a shop that is totally committed to doing things right the first time,” said Brad Brahe, Body Shop Process Improvement Manager, TMS, U.S.A., Inc. “They are extremely focused on customer satisfaction and their success is a great example of what is possible through the Toyota Certified Collision Center program. They are very deserving winners of this award.”
Fred Haas Toyota World has been in business for 35 years. The collision center includes 80 stalls, four paint booths, one Master level Certified Collision Center Director, and nine Toyota Certified Technicians.
“We have a very strong set of systems in place covering everything from pre-repair tear downs and parts ordering to quality control and we follow those systems very closely,” said David Maus Toyota Collision Center Director Dennis Gair. “Along with proven procedures we also have excellent people in our shop. Together, the people and the procedures ensure consistently excellent repairs, day in and day out.”
“David Maus Toyota received perfect scores in several collision excellence categories,” noted Spence Price, Senior Area Collision Consultant for Southeast Toyota Distributors. “They’ve done a lot of customer outreach efforts and achieved a very impressive increase in their business in recent years through procedures that ensure repair success.”
“They are extremely focused on the processes that make for consistently excellent repairs and satisfied customers,” commented Brahe. “They are very deserving winners of our highest award for Toyota Certified Collision Centers.”
The David Maus Toyota dealership has been in its current location for over 25 years. The collision center has been a Toyota Certified Collision Center (TCCC) for the past four years and includes 40 stalls, three paint booths, and 75 percent of its technicians are Toyota Certified.
The TCCC program is a comprehensive initiative designed to ensure the highest quality repairs and customer satisfaction. The program reinforces collision centers’ expertise, efficiency and profitability, while increasing customer loyalty.
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Total Resource Auctions’ network of salvage wholesale auctions has expanded to 31 locations nationwide with the addition of sites in North Carolina, Texas, Virginia, and Florida.
“We are fully committed to meeting the growing needs of our salvage customers,” said Bill Tiedemann, vice president and general manager of Total Resource Auctions. “These locations enhance our reach and allow us to offer our buyers and sellers dedicated sales, staff, and convenient service in all areas of the country.”
The company also announced changes to its management team:
- Craig Roberts — director of insurance sales
- Clay Kirkland — director of TRA Logistics
- Shirley Kennedy — field manager of TRA Logistics - Northeast Region
- Tracy Stallings — manager at Total Resource Eastern North Carolina.
Total Resource Auctions allows buyers and sellers to securely exchange damaged, inoperative and salvage vehicles through Manheim’s Total Resource Auctions locations and web-based products, including Manheim Simulcast.
Mentors At Work has introduced a trial version of its proven apprenticeship system. Entitled “LIGHT.” This trial offering allows shops to get acquainted with what building an effective in-house training system entails.
Mark Claypool, President of Mentors At Work, noted, “Some shops would rather test our proven system prior to committing to a full year. With our LIGHT system, we take things a bit slower, offer the basic foundation of our system and give owners and managers a chance to dip a toe into the apprenticeship pool.”
Over a six month period, for $260 per month, shops that choose LIGHT will have full access to Mentors At Work’s online system, use of the skill and competency tracking system, state-of-the-art mentor training, apprentice orientation, monthly coaching sessions conducted by Mentors At Work staff, and the ability to assign up to three mentors and an unlimited number of apprentices to the system.
“We want to shine a light on what apprenticeships are all about. The upfront training that management, mentors, and apprentices receive is valuable by itself,” said Claypool. “Having our staff follow-up with monthly coaching sessions provides expertise that only a hands-on partner like Mentors At Work can deliver.”
The Collision Industry Conference (CIC) is once again seeking the input of the entire Collision Repair Industry community on issues of top importance to the industry as it prepares for its annual planning session taking place in Scottsdale, Arizona in mid-January.
Through an online survey form, the CIC is soliciting the input of all industry members interested in providing input to the group. The form asks industry participants to list the top three issues that are of concern to the industry as a whole, as well as the top three issues that affect their particular segment of the industry.
Each year CIC uses the January planning session to determine the direction and agenda for its many specialized committees. The group takes its cues from the feedback it receives from this survey.
To submit issues, fill out the CIC survey form at the website: www.ciclink.com. More details on the CIC Planning Session, including agenda and hotel information, can also be found there.
The Sherwin-Williams Company has an-nounced that Mike Conway has joined the company as Director of Corporate Communications & Investor Relations. Conway will be responsible for Media, Investor and Community Relations, reporting to Bob Wells, Vice President - Corporate Communications and Public Affairs.
Conway joins Sherwin-Williams after spending eight years at KeyCorp where he was VP Investor Relations. He has been recognized nationally by his peers for outstanding service to investors, the media and associates.
Prior to KeyCorp, Conway was Director of Corporate Communications for Manco, and Director of Media Relations for the Greater Cleveland Regional Transit Authority. Conway previously spent 13 years as an Emmy award winning Special Projects Reporter at WJW-TV-8, Cleveland. Assignments included travel to Poland, Israel, Mexico, Canada.
The National Auto Body Council (NABC) has announced its new officers who were elected at the organization’s annual meeting in November.
Members of the recently elected executive committee include:
- President: Russell Thrall III, CollisionWeek / I-CAR Education Foundation
- Vice President: George Avery, State Farm Insurance Company
- Treasurer: Karen Fierst, KerenOr Consultants
- Secretary: Janet Chaney, Cave Creek Business Development
- Director-at-Large: Bob Keith, CARSTAR, Inc.
Guy Bargnes of BASF Corporation will assume the office of Immediate Past President and continue to be active on the board of directors and executive committee. These officers serve one year terms, but can be re-elected.
In addition to the above officers, NABC announced the election of several board members, who serve a three-year term. Michael Quinn from 911 Collision Centers and Bill Garoutte from Elite Dent Alliance will assume these responsibilities for the first time. Re-elected for another term are Bruce Cooley of DuPont Performance Coatings, Margo Smith of Storm Appraisal and Management Services, SCRS Executive Director Dan Risley, and Dave Henderson of See Progress.
"The NABC board has set ambitious goals for the organization in support of its mission to improve the image of the collision industry,” stated Thrall. “Promoting community involvement projects to the professionals in our industry, combined with the recognition of the many great things the members of our industry do to improve the lives of their neighbors, will continue to play a key part of the NABC’s image building efforts.”
The new officers and board members are currently immersed in preparation for the annual NABC planning meeting scheduled for January 16 at the Fort McDowell Radisson in Scottsdale, Arizona. This meeting will focus on the continued development and implementation of the organization’s strategic plan, and the creation of a self-sufficient and growing membership base.
“The new board will build upon the strong foundation left by our Immediate Past President Guy Bargnes, and outgoing Vice President Stacy Bartnik,” explained Thrall. “Their efforts, combined with the initiatives undertaken by previous officers and boards, have set the stage for the NABC to achieve its vision of a collision industry that is recognized as an essential profession serving the community.”
“Our newly elected officers and directors contribute impressive amounts of talent and leadership to our organization, in addition to an unbridled enthusiasm and passion for industry betterment,” stated NABC Executive Director Chuck Sulkala. “Our ability to do more for the industry at large is the result of all segments working together, united under a single goal, and the makeup of the board directly reflects that philosophy. By helping each other and doing our own part, we can and will make a difference. This is an industry to be proud of; it gets better every day.”
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