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This article originally appeared in the April 2007 Issue of INSIGHT
©2007 Collision Repair Industry INSIGHT All Rights Reserved
ASA Surveys Auto Manufacturer Certification Programs
Keystone Automotive to Appeal Ford Design Claim in Federal Circuit Court
Copart Reports Q2 Financial Results
Sherwin-Williams Acquires M.A. Bruder & Sons
CCAR Introduces Free Online Course on Motor Vehicle Safety for Auto Repair Industry
Eastman Opens New Paint Spray Research Facility
Independent Glass Companies Sign on for NGA Online Training Program
Safeway Selects Audatex for Claims Processing
I-CAR MQT Truck Hits the Road in the Northeast
True2Form Partners with AT&T for Data Networking
NABC Launches Leave Something Behind Program
INDUSTRY UPDATE
The Automotive Service Association's Collision Division Auto Manufacturer Subcommittee has surveyed the major automobile manufacturers to determine each company's requirements for collision repair facility certification.
ASA has also collected the names of individuals to contact if an independent collision repair shop is interested in pursuing certification. ASA's Auto Manufacturer Subcommittee is led by Dan Bailey, CARSTAR Inc., Overland Park, Kansas, and is part of the association's Collision Division Operations Committee.
To assist ASA members, the subcommittee explored several elements in regard to certification programs, including:
- If the manufacturer currently has a certification program in effect
- Whether the program is open to independents
- Dealership sponsorship requirements
- Each manufacturer's specific requirements
- Designated work area requirements
- Availability of training to technicians
- The presence of collision painter certification programs.
Manufacturer certification was first offered by Jaguar, BMW, and DaimlerChrysler AG. Over the past several years, variations of the certification concept have been adopted by other manufacturers. Mercedes-Benz, Nissan, Volvo, Audi, Toyota, Lexus, and Scion have all implemented collision repair certification programs.
Some OEMs also offer certification of collision repair technicians and painters.
ASA members who are considering certification from a specific manufacturer and would like the name of an individual to contact may call Denise Caspersen, ASA's Collision Division manager, at (800) 272-7467, ext. 236; or send an e-mail message to denisec@asashop.org for additional details.
"Led by repairers with the interests of their fellow repairers in mind, ASA's Auto Manufacturer Subcommittee is moving forward with its goal to provide independent shop owners with tools they can use to aid them in their business decision-making process," said Caspersen.
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Keystone Automotive Industries, Inc. has announced that the International Trade Commission (ITC) gave notice of its decision not to review the final initial determination made by the administrative law judge concerning a previously disclosed complaint initiated by Ford Global Technologies against the company, another distributor, and certain manufacturers.
"While we are encouraged that the Commission upheld the administrative law judge's ruling that three of Ford's patents are invalid, the decision not to review the initial determination of the seven other design patents by the administrative law judge is disappointing. Keystone remains committed to defending its position and intends to appeal to the Federal Circuit Court of Appeals," said Rick Keister, chief executive officer of Keystone.
He emphasized that, in the company’s opinion, the issue of applying design patent laws to replacement parts reaches well beyond Keystone and the alternative parts industry.
"We will continue to vigorously defend our position on behalf of our shareholders, the industry and consumers who benefit from the utilization of quality replacement parts and a competitive marketplace," Keister said.
As previously disclosed, the parts at issue with these seven design patents currently represent less than 0.1 percent of sales.
The Commission had invited all interested parties to submit information and evidence on whether issuing a remedy in this case would adversely affect competitive conditions in the U.S. economy and U.S. consumers. Keystone's position is that preventing Keystone and others from importing and selling alternative parts for vehicles will result in higher repair costs and escalating insurance rates, and will have a detrimental effect on consumers.
Keystone Automotive Industries, Inc. distributes its products through its 136 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada.
Copart, Inc., the largest provider of vehicle salvage disposition services in the United States, has reported results for the second quarter ended January 31, 2007.
During the three months ended January 31, 2007, revenue and income from continuing operations were $128.9 million and $30.4 million, respectively. This represents a growth in revenue of $3.8 million or three percent, and a growth in income from continuing operations of $4.3 million or 16 percent over the same quarter last year. Fully diluted earnings per share (EPS) from continuing operations for the three months was $.32 compared to $.28 last year, an increase of 14 percent.
For the six months ended January 31, 2007, revenue and income from continuing operations were $261.0 million and $60.7 million, respectively. This represents a growth in revenue of $19.2 million or eight percent, and a growth in income from continuing operations of $12.0 million or 25 percent over the same period last year. Fully diluted earnings per share (EPS) from continuing operations for the six months was $.65 compared to $.53 for the same period last year, an increase of 23 percent.
Same store sales, excluding the revenue associated with the public auction business which Copart exited in fiscal 2006, increased by three percent and eight percent for the three and six months ended January 31, 2007, respectively.
The operating results for the first and second quarters of 2006 were adversely affected by costs incurred as a result of hurricanes in the Gulf coast region and were estimated to be approximately $4.9 million and $9.5 million for the three and six month periods ended January 31, 2006, respectively. At the end of the current quarter, virtually all of the salvage vehicles received as a result of the hurricanes have been sold. The processing of the hurricane vehicles has had, in certain historical periods, a negative impact on gross and operating margin percentages.
Copart, founded in 1982, operates 124 facilities in the United States and Canada. It also provides services in other locations through its national network of independent salvage vehicle processors.
The Sherwin-Williams Company has entered into a definitive agreement for the purchase of 100 percent of the stock of M. A. Bruder & Sons Inc., headquartered in the Philadelphia, PA area.
With sales of approximately $146 million, M. A. Bruder is a leading manufacturer and distributor of paints and coatings in the eastern and southeastern portions of the United States. M. A. Bruder services the professional painting contractor, builder and do-it-yourself markets through 132 company-owned stores. The transaction will be completed upon receipt of all regulatory approvals.
Christopher M. Connor, Chairman and Chief Executive Officer of Sherwin-Williams, said, "We are pleased to have reached an agreement to bring an organization and business that we have long respected into the Sherwin-Williams family.... We are excited about working with the M. A. Bruder organization and we believe we will improve our service to professional painting contractors, builders and do-it-yourself customers."
As a part of its ongoing Alliance with the U.S. Occupational Safety & Health Administration (OSHA), the Coordinating Committee For Automotive Repair (CCAR) has announced the availability of “Operating Motor Vehicles: A Guide for Employees in the Automotive Repair Industry,” a free online training course.
The CCAR-OSHA Alliance provides information, guidance, and access to training resources to the auto repair industry that will help protect employees’ health and safety. Workplace vehicle safety is one of the areas of concentration of the Alliance agreement be-tween CCAR and OSHA, which originated in 2004 and was renewed last year.
“CCAR is pleased that we can make this free training available to the auto repair industry,” said Robert G. Stewart, CCAR President. “The driving abilities of employees in this industry may be scrutinized at a much closer level because of the nature of their work. Our goal is to increase employee awareness of their responsibilities and share information intended to result in safer driving performance.”
To access the free course, go to: www.ccar-greenlink.org/ AllianceOSHA/Online.html.
Established in 1994, the Coordinating Committee For Automotive Repair is a 501(c)(3) not-for-profit organization. CCAR’s 200+ affiliates represent all segments of the automotive industry.
Eastman Chemical Company has opened its new state-of-the-art paint spray facility at the company’s international headquarters in Kingsport, Tenn. The first of its kind by a coatings raw material supplier, the new paint spray facility is the culmination of a 12-month, multi-million dollar investment in personnel, construction, equipment, and technology.
The new facility allows reproducible application of coatings using current industrial techniques under controlled environmental conditions. In so doing, it facilitates the development and testing of innovative coating additives that help improve the performance of automotive OEM, refinish, and other coatings in a variety of industrial settings and environments.
“Our customers' demand for environmentally compliant coatings, and the changeover to waterborne paints has made rigorous and innovative paint testing all the more crucial,” said Dirk DiSantis, global marketing manager, coatings for Eastman. “Our new multifaceted facility will help paint formulators to faster and more effectively meet the specific environmental and performance needs of their customers.”
The facility is engineered to precisely replicate the wide range of climate conditions, including temperature and humidity, faced by paint shops, as well as the line conditions of most industrial paint application lines. A robot with two interchangeable end devices is connected to an advanced computer system that can be easily adjusted to mimic automotive, building and construction, and electronics applications.
“This upgrade to our research capabilities provides for a holistic assessment of product performance. In addition to traditionally measuring an additive's effect on coating film properties, the strict control systems of the new application facility will now also allow us to measure the effect of our additives on paint application performance,” added DiSantis.
“Global manufacturers with widely dispersed production and assembly facilities need to ensure the uniformity and quality of color and finish across the supply chain,” said David Allen, technical director, coatings for Eastman. “Since conditions on the painting line can vary widely based on region and climate, the need for reliable coatings additives that help paint suppliers compensate for this variability is continually increasing.”
To complement its new Kingsport facility, Eastman has also made an additional investment in new testing equipment at its Kirkby, UK site.
“We are making significant investments to help our customers develop the most intelligently designed, best-performing coatings possible,” said Keith Middleton, research and development manager, coatings for Eastman. “Our new Kingsport application center and the enhanced Kirkby facility are tangible manifestations of our commitment to meeting their demands – and those of the marketplace.”
Founded in 1920 and headquartered in Kingsport, Tenn., Eastman manufactures and markets chemicals, fibers, and plastics worldwide.
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The National Glass Association (NGA) has announced that Phoenix-based Arizona Glass Connection will use MyGlassClass.com to train its technicians. The company joins dozens of other small companies using the innovative on-line training available on MyGlassClass.com.
"MyGlassClass.com is the ideal solution for our training needs because it brings the training to our busy technicians," said John Pimsner, owner of Arizona Glass Connections. "As a small company, we cannot afford the missed work time and lost productivity caused by traditional classroom training."
MyGlassClass.com, launched in June 2006, offers many courses specifically designed for both the auto and flat glass industry, ranging from safety instruction to professional development to industry certification. It was developed in partnership with leaders in the glass industry and is continually updated and enhanced to reflect industry needs.
"We have been gratified by the number of small, independent shops like Arizona Glass Connection lining up to use MyGlassClass.com," said NGA Vice President of Association Services David Walker. "It is strong testimony to the quality and accessibility of our program, and we know that our members-only pricing can mean significant savings to smaller companies."
Safeway Insurance Group, a provider of property and casualty insurance in several U.S. states, has signed a multi-year contract with Audatex as its exclusive claims management technology supplier.
Under this agreement, Safeway Insurance will be switching to Audatex's integrated suite of claims processing applications, including Audatex Estimating and Autosource, Audatex's total loss solution.
"At Safeway Insurance, we have demonstrated in the over 45 years we've been in business a deep commitment to the insurance markets that we serve," said Michael Kerrigan, National Property Damage Director for Safeway Insurance. "Over 250,000 policyholders rely on Safeway, and we are committed to choosing partners that best help us meet our high level of commitment to quality and service to those policyholders. After an exhaustive review of competing technology solutions, we chose Audatex because it had the most innovative applications - applications that allow us to achieve the highest level of service to our customers."
"We are delighted that Safeway Insurance Group has selected our solution to manage their claims processes," said Tony Aquila, Founder, Chairman, and CEO of Solera, Inc.
Safeway Insurance Group operates seven insurance companies and offers insurance coverage in nine states including Alabama, Arizona, California, Florida, Georgia, Illinois, Louisiana, Mississippi and Texas.
Audatex, a Solera company, delivers an integrated suite of applications for claims processing, estimating, shop and yard management, and business analytics for performance management. Solera's operating companies employ over 2,000 associates in over 40 countries, and have a global network of over 50,000 customers. The Solera companies include Audatex in the United States, Canada, and in more than 35 additional international markets, Informex in Belgium, Sidexa in France, ABZ in The Netherlands, and Hollander serving the North American recycling market.
The I-CAR Mobile Qualification Test (MQT) truck will be on display at New England’s largest automotive trade show, the Collision & Auto Repair Auto Show, April 20-22, 2007 at the Bayside Expo Center in Boston, MA.
The I-CAR MQT truck is now available to administer the industry recognized I-CAR qualification tests at businesses in the northeast. I-CAR will be bringing the MQT truck to the Boston and surrounding area before CARS 2007. Shops interested in testing employees on their welding skills and having the qualification tests administered at their business may contact I-CAR:
- E-mail to mqtinfo@i-car.com.
- In the subject line of the e-mail type: “Bring the I-CAR MQT to me!”
- In the body of the e-mail include your:
- business name
- contact individual
- mailing address
- phone
- fax.
After submitting that information, an I-CAR MQT Scheduler/Dispatcher will contact interested shops to discuss specific details of the program. The I-CAR welding qualification tests include:
- Automotive Steel GMA (MIG) Welding Qualification Test (SWQT)
- Automotive Aluminum GMA (MIG) Welding Qualification Test (AWQT)
- Structural Parts Steel Qualification Test (SPSQT).
Points earned at shops or at an approved test site will apply to the Gold Class Professionals(TM) and Platinum Individual(TM) program.
For more information about the show visit www.carstradeshow.com or call 800-996-3863 (USA) or 508-790-4751 for more details.
AT&T Inc. has announced a new voice and data networking services contract with True2Form Collision Repair Centers Inc., which will provide the company with secure and flexible converged data network services to serve its 38 locations. Under the terms of the three-year agreement, AT&T will serve as the primary provider of voice and data services, delivering the AT&T Managed Internet Service (MIS), MPLS Virtual Private Network (VPN) and AT&T Business Network (ABN).
Headquartered in Cleveland, True2Form has locations in Maryland, North Carolina, Ohio, and Pennsylvania that specialize in collision-related auto-body repair and refinishing.
With an AT&T VPN, True2Form will be able to connect its Cleveland-based corporate office with its production locations via a secure and flexible converged data network. The AT&T VPN will also enable enhanced network communication between all locations on a network platform that will have increased redundancy and bandwidth to support future applications.
In addition, AT&T managed network services will allow True2Form to safely, flexibly, and reliably consolidate its Internet applications and protect its valuable network resources.
AT&T ABN, a fully integrated networking solution designed to simplify, streamline and enhance network management capabilities, will allow True2Form Collision Repair Centers to maximize operational efficiency and integrate a comprehensive portfolio of technologies, such as voice and IP services, under a single contracting, pricing and billing solution. This solution, which aligns with AT&T's convergence strategy, will make it possible for True2Form Collision Repair Centers to enhance its overall customer service through decreased downtime, utilizing a fully managed network platform that can be simultaneously accessed by all True2Form locations.
"We needed a provider capable of converging our internal communications network to help us efficiently manage important customer data," said Janice Labinka, corporate controller, True2Form Collision Repair Centers, Inc. "We are confident that AT&T's solution will support our ultimate goal to provide industry-leading customer service."
The National Auto Body Council (NABC) is kicking off its “Leave Something Behind” program. The campaign, designed to complement NABC’s other charitable efforts, is an ongoing one, slated to coincide with at least two CIC sessions per year.
NABC Treasurer Karen Fierst explained the “Leave Something Behind” concept.
“Our board meetings typically coincide with the Collision Industry Conference (CIC), which means several times per year a solid representation of the collision industry is in one city for several days,” said Fierst. “The board felt we could use that as an opportunity to leave something behind in that particular locality that exemplifies the caring spirit of our industry.”
“We choose different causes to support and typically try to identify one with which someone from our board can identify,” stated Dan Risley, chair of the Leave Something Behind sub-committee. “It’s that sense of giving that propels the program. As committee chair, I’ve been fortunate to be involved over the past few years with giving a check to a local children’s hospital, contributing cell phones to battered wives and providing books to schools for their libraries. Nothing makes me so proud to be a part of our industry than when we make these kinds of donations.”
The “Leave Something Behind” program will take place twice this year, first at the upcoming CIC in Atlanta, Georgia on April 11 and 12, and then in Las Vegas during NACE. The focus in Atlanta will be the Northside Hospital, a leader in the diagnosis and treatment of prostate cancer. The facility is less than two miles away from the official CIC hotel, the Crowne Plaza.
Besides being a leader in the battle against prostate cancer, Northside Hospital makes available to the public free prostate specific antigen (PSA) tests for those otherwise unable to afford them. The money NABC raises will help offset the cost of these free screenings, which are critical in the timely diagnosis of the disease.
“This kind of cancer can be very aggressive—I’ve recently witnessed that with my father-in-law,” said Risley, “but there is a high rate of treatment success with early detection. While the donation NABC sponsors on behalf of Northside Hospital will have a beneficial economic impact, we also hope that by spotlighting the issue we can help educate the men in our industry regarding the preventative measures available to them. Maybe we’ll even save a few lives.”
Donations to the free screening program will be collected during the course of CIC after a short presentation. Though the mechanism for fund-raising is not yet finalized, participants will likely be asked to guess the quantity of an item in a jar (for example, candy), with chances being sold for $5 each or 3 for $10. The two individuals who come closest to guessing the correct amount will win $100 and $75 respectively, with the balance of the money going to Northside Hospital.
“Part of our job is to find projects that foster the good works performed by the men and women of the collision industry, and the Leave Something Behind program is a worthy portion of NABC’s portfolio,” added NABC Executive Director Chuck Sulkala. “It’s a grass roots approach, which means we can have a direct impact on those communities gracious enough to host us. It’s a meaningful way to bond with those localities.”
Although this first installment of the Leave Something Behind program is being marketed exclusively to those who attend CIC in Atlanta, those not attending that are interested in contributing can contact NABC by phone or e-mail. For more details on the CIC and its schedule of meetings, please visit the organization’s website at www.ciclink.com.
NABC is a non-profit organization dedicated to enhancing the image of the collision industry. NABC's ongoing and continued success is a direct result of the efforts and support of its sponsoring companies and membership.
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©2007 Collision Repair Industry INSIGHT
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