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Letter to the Editor
This article originally appeared in the February 2007 Issue of INSIGHT
©2007 Collision Repair Industry INSIGHT All Rights Reserved
Industry Associations Join Forces to Examine, Enhance Content of Estimating Systems
BASF Names Guy Bargnes National Sales Director
MQVP Challenges CIC to Take Action Against Counterfeit Parts
PPG Industries 4Q Earnings Rise 39%
Messe Frankfurt and Business Information Group to Bring Automechanika to Canada
Keystone Automotive Says MQVP Lawsuit Lacks Merit
Progressive Insurance 4Q Profit Up 42%
PDR Tech Direct Helps Body Shops Build Temporary Hail Teams
NADA Launches Redesigned Website
AMI Receives $10,000 Commitment from Ohio Shop Owners
NORTHEAST and Mike Anderson Seminar Top AASP/NJ 2007 Plans
INDUSTRY UPDATE
Three national collision industry associations are working together to enhance the accuracy and functionality of the estimating systems used by the collision repair community to fix today's high-tech vehicles. The Alliance of Automotive Service Professionals (AASP), the Automotive Service Association (ASA), and the Society of Collision Repair Specialists (SCRS) have teamed up to examine and enhance the content of the data found in the industry's leading estimating systems.
The project is titled the Database Enhancement Gateway (DEG) and goals include the development of an industry website that would allow collision repair professionals to file requests for reviews of the various estimating systems and view the responses from the information provider(s) once available.
Nick Kostakis, immediate past president, AASP, and owner of Angelo's Auto Body Inc. in Irvington, N.J., said, "We - AASP, ASA, and SCRS - feel this initiative represents an exciting opportunity to further strengthen the connection between the repair community and the database providers, and stands to improve database accuracy for the benefit of all end-users."
Barry Dorn, SCRS national director and owner of Dorn's Body and Paint Inc. in Mechanicsville, Va., said, "The collision industry has historically been challenged with the various methods and ways to submit an inquiry. Issues such as where an inquiry is submitted, in what format, is it ever received and more importantly did it get addressed, have never been clear."
Darrell Amberson, AAM, ASA's Collision Division director and president of Lehman's Garage in Bloomington, Minn., said, "This joint effort will bring additional credibility and accountability to the estimating database providers. With the three national collision associations - ASA, AASP, and SCRS - working together to address database accuracy and speaking with one voice, the database project should prove beneficial to all involved in collision repair."
Initially, the group effort will focus on the accuracy of data provided to the collision repair industry by the following information providers: CCC/ MOTOR, Mitchell International, and Audatex.
The DEG project will be administered by a paid, full-time administrator, with oversight by a committee created by AASP, ASA, and SCRS.
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BASF Automotive Refinish Solutions has announced the promotion of Guy Bargnes as National Sales Director. Bargnes will oversee all of BASF’s sales activities in the United States, Mexico, and the Caribbean.
Bargnes has been involved in the refinish industry his entire career, starting in his family’s paint distribution business and continuing to his most recent position as BASF’s NAFTA Marketing Director.
A past president of the National Auto Body Council, Bargnes is widely recognized for his frequent participation in industry events and for championing causes that improve the Collision Industry’s image. In 2005, Bargnes received one of the industry’s highest honors when he was inducted into the Collision Repair Industry “Hall of Eagles.”
“Guy has long been a staunch supporter of the Collision Repair Industry," said Juan Carlos Ordonez, VP, Automotive Refinish Solutions, "and his background in distribution and depth of experience makes him an ideal choice to help ensure continuing success for our customers and our sales force."
BASF Corporation, headquartered in New Jersey, employs about 16,000 people in North America and had sales of about $11.3 billion in 2005.
INSIGHT has received a press release from MQVP, Inc., printed in part below:
A formal letter, addressed to the chairman and the board of directors of CIC, was sent and several phone call follow-up attempts have been made requesting a formal response to our call to action against counterfeit activity.
Previous attempts to communicate to other associations has resulted in either their denial of the problem’s wide spread existence or refusal to engage in any action which may expose their own participants or members.
Through press releases and other direct communications, MQVP Inc. has made it known that it has succeeded in six legal victories against violators of its MQVP(R) trademark. These violations directly impact the vehicle owners that received a counterfeit part in the repair process. This may diminish the value of the vehicle and could result in safety concerns.
It is MQVP Inc.’s position that counterfeit parts, regardless of their origin and content, are by quality definition “defective” and categorically inferior to the MQVP requirement.The vehicle owner flat out did not get what was specified in the repair. It has also been widely reported that MQVP Inc. has received favorable judgment in the Appellate Court against Mid-State Aftermarket Body Parts, Inc. regarding trademark violation activity.
MQVP Inc. reports pending litigation against Keystone Automotive; Pacific Best Inc. (PBI); Global Trade Alliance (GTA); a subsidiary of LKQ Corporation doing business as Action Crash; and Autobody Supply Company (ABSCO) for similar and related complaints.
It is MQVP’s opinion that CIC, under its mission and purpose, goes beyond forming committees for part studies. Issues of counterfeit product in the marketplace should be an industry concern and be front and center news. Forming a committee to research and understand the implications of this counterfeit activity would benefit the collision repair shops and insurance industry.
PPG Industries Inc. has reported that its fourth quarter earnings rose 39 percent, due mostly to gains by its coatings and optical products businesses.
Quarterly earnings increased to $157 million, or 94 cents per share, from $113 million, or 68 cents per share, during the same period last year.
The results included a charge of $3 million, or 2 cents per share, related to a proposed asbestos settlement.
Revenue grew 11 percent to $2.77 billion from $2.51 billion during the same period a year ago.
Coatings sales improved 21 percent to $287 million, due mostly to acquisitions, greater sales volumes in Europe and Asia, stronger pricing and a favorable foreign currency exchange rate.
Chemicals sales advanced 3 percent to $16 million on additional sales in most of its businesses, acquisitions in its optical products unit and stronger foreign currencies. Those gains more than offset weaker pricing in its chlor-alkali business.
Glass sales fell 3 percent to $16 million, the company said.
For the year, earnings increased 19 percent to $711 million, or $4.27 per share, from $596 million, or $3.49 per share, in 2005. Revenue rose 8 percent to $11.03 billion from $10.2 billion a year ago.
In other company news, PPG Industries Inc. has acquired the architectural and industrial coatings businesses of Brazil's Renner Sayerlack SA in a move to broaden its coatings operations in Latin America. Financial terms were not disclosed.
Renner Sayerlack's architectural and industrial coatings businesses operate three manufacturing plants in Gravatai, Brazil; Santiago, Chile; and Montevideo, Uruguay. Each plant also serves as a distribution center. The businesses, which employ about 850 people, sell through independent dealers, construction material suppliers, and brand licensees, similar to franchise stores.
Renner Sayerlack was formed in 2001 by the merger of Tintas Renner and Sayerlack Industria Brasileira de Vernizes. The company markets products to the architectural, industrial, wood finishing and high-performance/marine coatings segments in Brazil, Chile and Uruguay.
The wood and high-performance/marine divisions are being retained by Renner Sayerlack.
Automechanika, an international brand of automotive parts and service trade shows will join forces with CarFixWORLD to make its debut in the Canadian marketplace. This dynamic event is produced jointly between Messe Frankfurt and Business Information Group, publisher of over 90 media products in Canada.
In response to the needs of the industry and the strong aftermarket in Canada, Messe Frankfurt and Business Information Group will enter the Canadian market and launch the twelfth Automechanika worldwide. With over 250 exhibitors and 4,000 visitors anticipated to participate in the event, Automechanika Canada will be Canada’s leading trade show covering the entire spectrum of the aftermarket.
Automechanika Canada will be held September 26–28, 2007 at the International Centre in Toronto, Ontario, Canada.
The Automechanika Brand has been experiencing record exhibitor and visitor numbers, indicating that these trade shows are truly creating a global business platform the industry needs. The largest and original show, Automechanika Frankfurt, finished its 2006 show reporting over 165,000 visitors, 40 percent of them from outside Germany. A reported 96 percent of all visitors were satisfied with the exhibits and product groups at the show. This growth and satisfaction is a trend throughout all the Automechanika shows worldwide, confirming a positive outlook for the future of the industry.
The Business Information Group (BIG) publishes over 90 Canadian magazines, directories, databases, mailing lists and web sites in more than 30 different trade markets. The automotive trade sector of BIG publishes five magazines which include, SSGM, Jobber News, L’Automobile, Bodyshop, and Autovision, and produces the trade show CarFixWORLD.
Canada has proven itself to be a strong automotive aftermarket with steady growth in retail sales as well as number of retailers and installers over the past several years. Ontario in particular, leads Canada with its number of retailers, making Toronto the ideal location to launch Automechanika Canada. With the introduction of this trade show, Messe Frankfurt will be able to provide a Canadian outlet to the many aftermarket suppliers, retailers, and installers that have asked for a comprehensive event in this market.
The city of Toronto provides an international destination with one of the largest airports in North America, an accessible convention Center, and a city known for its culture and diversity.
Automechanika Canada will provide a wide range of quality products. Over 250 exhibitors and 4,000 visitors are anticipated to participate in the inaugural event.
Automechanika Canada will be the only show in the Canadian market dedicated to all facets of the automotive aftermarket. Additional programs will include conference sessions featuring product innovation and technical training, career opportunities for apprentices and students, product demonstrations, and industry displays. This three-day event will offer exhibitors the opportunity to showcase their products to thousands of industry professionals.
For further information, visit www.automechanikacanada.ca.
Keystone Automotive Industries, Inc. has announced that it is in the process of a careful and complete investigation of the facts related to a lawsuit filed in December 2006 by MQVP, Inc. The suit was filed in the Federal Bankruptcy Court in Detroit, Michigan, the court where MQVP sought protection under Chapter 11 of the Bankruptcy Code, with a filing on August 17, 2006.
MQVP alleges that Keystone distributed non-MQVP approved parts, used the "MQVP" service mark without MQVP's permission, and traded on the goodwill of MQVP and its service mark in a way that confused the public. Based on these allegations, MQVP is seeking at least $20 million in damages, and other equitable relief, on several legal claims.
MQVP is an independent validator of certain alternative collision replacement parts sold by distributors like Keystone which are qualified to participate in the MQVP program. Keystone had been a qualified participant in the MQVP program from its inception in 2003.
Keystone voluntarily withdrew from the program in November 2006, and at that time was a member in good standing of the MQVP program.
"Based on our evaluation to date, Keystone does not believe it has any liability to MQVP. In addition, should any liability be determined, we do not believe it would have a material impact to the company's financial position," said Richard Keister, president and chief executive officer of Keystone Automotive.
In addition to having participated in the MQVP program, Keystone is the nation's largest supplier of CAPA certified aftermarket collision replacement parts to the body shop industry, providing more CAPA parts than all other US distributors combined.
"The quality and integrity of Keystone's Platinum Plus parts are most important and fundamental to our business. Keystone is recognized as an industry leader and commits substantial time, energy, and resources to ensure that our employees maintain the highest level of integrity and abide by our policies and quality standards. We stand behind all of our parts with the most comprehensive warranty in the aftermarket collision replacement parts industry," Keister said.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 136 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada.
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Cleveland, Ohio based auto insurer Progressive Corp. has reported that fourth quarter earnings jumped 42 percent despite a drop in net premiums written, as returns on the company's securities investments swung to a gain.
Net income rose to $400.9 million from $281.6 million in the year-ago period.
Progressive recorded a profit of $14.5 million from securities investments, while a year ago, that posting delivered a loss of $40.2 million.
Net premiums earned edged up 1 percent to $3.51 billion. Net premiums written slipped 2 percent to $3.19 billion from $3.25 billion last year.
For the year, net income added 18 percent to $1.64 billion on 21 percent higher net premiums earned of $14.12 billion.
PDR Tech Direct has announced the launch of a new web-based service that will allow repair facilities of all types to locate and build temporary hail teams to meet their specific needs during a hail event.
This service utilizes propriety web-based software along with the first CSI/Feedback Rating system tailored specifically for the Paintless Dent Repair Industry that will allow body shops, dealerships, fleet companies, and port services to locate and assemble their own hail teams based on an advanced search engine and a proprietary feedback rating system that allows them to review each PDR technician's experience level, qualifications, travel range, and most importantly, past performances.
Mike Thorson, President of PDR Tech Direct, commented, “The PDR Tech Direct Business Model will increase the profitability of the repair facilities and the technicians themselves during a hail event by allowing the facilities to locate and connect directly with world-class PDR technicians to build their own hail teams to meet their exact needs. The CSI/Feedback Rating system encourages consistent high quality performances from the PDR technicians by placing the technicians with the highest overall performances at the top of the list as the PDR Tech Direct Clients locate and recruit the PDR technicians with the highest feedback ratings to build their hail teams.”
Thorson concluded, “We strongly believe that as the PDR Tech Direct model is adopted and the Feedback Rating system develops further in the next year, the traditional body shop/ hail broker/PDR technician business model that has been prevalent in the last decade will give way to a Direct Repair Facility/PDR technician relationship that will increase the profitability of both parties. If repair facilities/DRPs out there are dissatisfied with their current hail repair program, they may find building their own temporary hail teams through PDR Tech Direct is a more direct approach to increased profitability, improved cycle times, and satisfied customers during a hail event.”
PDR Tech Direct is a Des Moines Iowa based company and is a subsidiary of Dent Estimators LLC, a company that specializes in PDR Consulting services and software tools for the PDR and Automotive Reconditioning Industry.
The National Automobile Dealers Association (NADA) has launched a completely redesigned flagship website, www.nada.org, offering a series of new tools and state-of-the-art electronic technologies.
"This revamped website offers a powerful new technology platform and design that provides our members, the public, and media with easy access to a vast array of timely news and information with fewer clicks," said NADA Chairman William Bradshaw.
Among the site upgrades:
- A state-of-the-art search feature to provide highly targeted retrieval of the latest NADA news, data and information
- Enhanced layout and navigation to improve access to NADA's many products, services, publications and programs
- A streamlined and simplified user login system for NADA's dealer members.
The website marks the 10th anniversary of www.nada.org.
The National Automobile Dealers Association, founded in 1917 and based in McLean, VA, represents about 20,000 franchised new car and truck dealers holding nearly 43,000 separate franchises, domestic and international.
Dan and Ron Nagy, AAM, of Nagy’s Collision Centers located in Doylestown and Wooster, Ohio, have committed $10,000 to the Automotive Management Institute’s (AMI) resource development effort named EXCEL. The commitment to AMI will be combined with other leadership contributions to continue AMI’s mission of providing and promoting practical business management education tailored to the automotive service and collision repair industry.
Ron Nagy earned the Institute’s Accredited Automotive Manager (AAM) designation in 1996 and Dan Nagy is currently working on fulfilling the requirements to earn the AAM designation.
“It is a privilege for us to give back to an educational institution that has given us so many tools to use in growing our business,” said Dan Nagy.
“AMI is pleased to provide the automotive industry with the tools they need to be successful. Dan and Ron’s generosity is truly appreciated,” said AMI Board of Trustees Chairman John Francis, AAM.
AMI Executive Director Toni Slaton, AAM, added, “With the generous support of our EXCEL partners, AMI continues to expand its program and strives to fulfill our industry’s demand for quality business management education. We greatly appreciate both the financial commitment and confidence they have placed in our organization.”
AMI was established to answer the demand for continuing education tailored specifically for the business needs of the automotive service industry. The Institute offers the Accredited Automotive Manager (AAM) designation, the first business management accreditation exclusively for the automotive service professional. To date, AMI programs have attracted more than 153,000 enrollments throughout North America.
The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) kicked off a busy 2007 with two seminars by sought-after Collision Repair Industry speaker Mike Anderson in January and with plans underway for the association’s flagship event, NORTHEAST 2007 in March.
“We’re starting this year off with a bang,” AASP/NJ President Tom Elder said. “We’ve been trying to get Mike Anderson to come out to our state for a few years. His reputation for excellence in automotive repair and motivation is second-to-none. We’re extremely happy Mike’s schedule opened up and he’ll be able to speak directly to our members in Totowa and Tom’s River.”
AASP/NJ's NORTHEAST 2007 seminar schedule is highlighted by I-CAR courses, TPMS seminars, and a much-anticipated database panel discussion.
“We put the schedule out about a month ago and already we’ve had people register for seminars and make reservations at the show hotel,” said Elder. “There’s lot of excitement going around because everyone understands we’re making the effort to produce a bigger and better show. We want repairers leaving the show with both training and equipment that will make them money when they return to their shops.”
Added attractions at NORTHEAST 2007 will include a hot rod beauty contest and a free 2007 FXD Dyna Super Glide Red Pearl Harley Davidson raffle.
The 30th anniversary NORTHEAST 2007 trade show will take place March 23, 24, & 25, 2007 at the Rockland Community College Field House in Suffern, NY. For more information on NORTHEAST, contact Dave McCarey at 1-800-223-4648.
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