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Letter to the Editor
This article originally appeared in the July 2009 Issue of INSIGHT
©2009 Collision Repair Industry INSIGHT All Rights Reserved
ASA Revises Open Platform Position Statement
Reiteration of SCRS Position on Steering and Deceptive Referrals
I-CAR Nears Decision on Canadian Licensing Agreement
NA3SA Assessment Test Widely Accepted
CCAR - GreenLink Announces Twitter Updates and Upgrade to Canadian Search Engine
Esurance Earns I-CAR Gold Class Professionals Status
Caliber Collision Centers Expands to 68 Locations
PPG Announces MVP Conference to Focus on Accelerating Shop Performance
Captain Chesley Sully Sullenberger to Keynote the NACE and CARS 2009 Event
CCC Information Services Responds to CIC Database Committee Release on Bumper Prompt
Midwest Collision Industry Forum a Success
INDUSTRY UPDATE
The Automotive Service Association (ASA) board of directors has approved a newly revised position statement proposed by the volunteer leadership of its Collision Division. The position statement reads:
ASA supports an individual collision business owner’s selection of an estimating system that meets the individual’s business needs and commends those insurers that allow for the use of an "open platform."
ASA believes the same logic should apply – but is not limited – to management systems, paint systems, parts suppliers (OE, aftermarket and recycled), equipment, and customer satisfaction indexing/customer service information programs.
In situations where collision repair estimates are transposed by insurers, all efforts should be made by the insurer to duplicate the collision repair facility’s original document.
The updated position statement emphasizes the business owners’ inherent right to select their individual vendors, suppliers, systems and services; and conveys ASA’s support for its members in making individual business decisions.
Revision of the position statement was prompted by a USAA requirement for participants in its STARS direct repair program to enroll in a specific customer service information program, at the shop’s expense.
When the issue was brought to ASA’s attention by members of its Collision Division, a letter was sent to USAA explaining ASA’s concerns. ASA has not received a response from USAA.
In the letter, ASA informed the San Antonio-based insurance company that its members do not support the requirement to participate in a specific program without consideration for other customer service information programs a shop may have in place. ASA pointed out that this requirement could be repeated by other insurance companies, therefore creating redundancies of customer service information companies within the collision shop’s business model, thus leading to confusion and shop inefficiencies.
Darrell Amberson, AAM, director of ASA’s Collision Division and member of the ASA board of directors, said,: “ASA’s volunteer leaders, all of whom are independent collision and mechanical shop owners, believe strongly in a business owner’s inherent right to structure, manage and orchestrate their personal business as they see fit.”
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In a press release distributed to the collision repair industry in October of 2007, the Society of Collision Repair Specialists (SCRS) documented the organization's official position on steering and deceptive referral practices. The position is as follows:
The Society of Collision Repair Specialists (SCRS) is strictly opposed to any insurer, insurance agent, or representative referring a vehicle owner to a particular collision repair facility once the vehicle owner has selected a repair facility.
The selection of a collision repair facility should not be interfered with by an insurer, insurance agent, or representative unless specifically requested by the vehicle owner. Once the vehicle owner has selected a collision repair facility, any attempt to discourage the vehicle owner from utilizing that collision repair facility for the sole purpose of steering work should entail significant penalties.
In light of recent events taking place within the industry, both in practice in our members' markets and legislatively across the country, SCRS feels compelled to reiterate our position to the industry, and make known that our convictions on this issue are as firm and resolute today as when the position was initially crafted.
"SCRS strongly supports collision repairers, state organizations, legislators, and enforcement agencies that are pursuing solutions which further enforce the end of this type of unacceptable behavior," stated SCRS Chairman, Barry Dorn. "There are some states that have made great headway in protecting the rights of consumers and small businesses from these tactics, and we sincerely applaud those efforts. As an example, the current law in California serves as a positive example of an appropriate position that states and enforcement agencies should be held to. We are sincerely discouraged to see that the insurance lobby is taking such efforts to diminish the consumers' rights in recent proposed legislative efforts."
SCRS opposes attempts at legislation, such as bills like California's A.B. 1200, that are endorsed by the benefactors of minimized enforcement of existing laws that serve to provide the consumer with protection over steering. It is the hope of SCRS that the legislators of this country, who are both insurance and repair consumers themselves, will see the value in maintaining or promoting laws that provide better enforcement to ensure their fellow consumers' decision on where to obtain their collision repair services are not unduly influenced by parties who have a vested interest in the cost of the repair, or the facility that is chosen.
Additionally, SCRS recognizes the inherent challenge and difficulty that can exist in documenting the activity of "steering," a practice that can range from blatant occurrences to more passive approaches which are built into well-crafted word tracks and are subject to interpretation. Realizing this, it is important for state legislators to recognize the consumer's right to individual choice in their repair vendor, and we support and commend those states who have actively taken more aggressive attempts to curb practices which inhibit the freedom, or perceived freedom, of choice.
Through its direct members and 35 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles.
The Inter-Industry Conference on Auto Collision Repair (I-CAR), is getting closer to reaching a decision on granting a licensing agreement to a Canadian organization to assume operations of its collision repair training in Canada. I-CAR announced that it would seek a licensee in Canada early in 2009 and invited interested organizations to offer their proposals for a transition.
“We are awaiting proposals from the organizations that had expressed an interest in providing I-CAR training within Canada under a licensing agreement,” said Robby Robbs, Immediate Past-Chairman of the I-CAR International Board of Directors and Member of the I-CAR Canadian Transitional Task Force (CTTF).
The CTTF has met with the Canadian Task Force (CTF), led by Roland Taube, and has agreed upon a process for evaluating these proposals at a meeting set for early July. Recommendations surfacing from this work are expected to be delivered to the I-CAR International Board of Dir-ectors later that month.
“The process has proceeded smoothly to date and we anticipate a timely transition to the new licensee by the end of the year,” Robbs said.
“We have continued to do what we do — scheduling I-CAR classes, conducting I-CAR training, and working to support the training needs of the inter-industry,” said John Edelen, President and CEO of I-CAR. “Through the first six months of this year, the level of training conducted has closely tracked our expectations.”
Edelen said that during June, I-CAR’s Canadian operation expected to solidly exceed its planned goal for the month. “We intend to continue to aggressively support the inter-industry’s training needs and recognition programs as we transition to the Canadian industry-supported licensee,” he added.
“As evidenced by the responses received by the I-CAR Canadian Task Force, and the success of I-CAR’s training efforts over the first half of 2009, it is clear that the Canadian collision repair inter-industry desires and supports training,” said Tom Moreland, Chairman of the I-CAR International Board of Directors. “The I-CAR Board of Directors and the inter-industry at large await the results of the Task Force’s work to assure continued access to I-CAR’s timely and relevant training across Canada.”
CTF member Tony Canade stressed the importance of training to the Canadian inter-industry. “I’m looking forward to seeing I-CAR training delivered through a partnership with a new organization. This is an exciting opportunity for Canada and it is important to ensure that existing training will continue.”
he National Automotive Student Skills Standard Assessment (NA3SA), the new comprehensive end-of-program assessment test, has been enthusiastically adopted by secondary and post-secondary automotive technology programs nationwide. The NA3SA is a series of tests designed to measure students’ knowledge of course content and learning outcomes within an automotive training program. NA3SA was developed by ASE in partnership with AYES, NATEF, and SkillsUSA to replace the existing end-of-program assessment used by NATEF programs and others.
The NA3SA tests are appropriate for evaluating students who are near the end of their studies in the areas of Automobile Service, and Collision Repair & Refinishing. NA3SA has been well-accepted by educators and generated significant positive feedback, with impressive gains over last year’s end-of-program assessment. The numbers as of June 10th show 9,204 students taking 26,484 tests, an increase of 23 percent and 46 percent respectively. The initial test window ended on June 12th.
The program consists of a series of 40-question exams that parallel the NATEF Task Lists—the standard for program certification. The test questions are drawn from combined NATEF and Automotive Youth Education Systems (AYES) item pools, while actual test development is handled by ASE. SkillsUSA brings its years of vocational experience, program design expertise, and commitment to exam development.
The cost of the test is $15 per student. This fee allows the instructor to schedule, within a single test window, as many of the assessments within a single test series as needed. Instant scoring is available for most tests and the school can print student achievement certificates locally.
Incorporated on June 12, 1972, the National Institute for Automotive Service Excellence was established as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians and parts specialists. Today, there are nearly 400,000 ASE-certified professionals who work throughout the country.
The Coordinating Committee For Automotive Repair (CCAR)(R) has announced a new service involving its CCAR-GreenLink(R) website, as well as an upgrade of an existing feature of the site.
CCAR-GreenLink is the National Environmental Compliance Assistance Center for Auto Repair, operated by CCAR in cooperation with the U.S. Environmental Protection Agency (EPA), and available free of charge at: www.ccar-greenlink.org.
The CCAR-GreenLink site is recognized globally as a leading source of environmental compliance and pollution prevention information for automotive operations.
CCAR is now utilizing the Twitter online social networking service to notify users when new or updated information is posted on the CCAR-GreenLink site, or as environmental news items of interest to the automotive industry, including compliance and enforcement actions, are posted.
To receive updates via Twitter, users may click on: http://twitter.com/CCARGreenLink.
“We continue to look at new ideas and methods to make compliance assistance information available to our audience in a timely manner,” said Daren Fristoe, CCAR President and Chief Operating Officer.
CCAR also announced that the Canadian-focused search engine on CCAR-GreenLink – found at http://www.ccar-green link.org/Canada/canada.htm – has been upgraded to utilize the same technology as the website’s U.S.-directed search function.
“From the beginning of the CCAR-GreenLink service back in 1995, we’ve been aware that the auto repair community in Canada has a shared interest in environmental compliance,” said Fristoe. “The Canadian search engine now features the same Google(TM) Custom Search technology, so we can continue to improve its performance as information becomes available from regulatory agencies in Canada.”
Esurance, the direct-to-consumer auto insurance company, has earned the I-CAR Gold Class Professionals designation. To reach Gold Class status, Esurance’s material damage specialists nationwide underwent 1,500 of additional training hours collectively.
Esurance’s Material Damage Director, Joe Laurentino, stated, “Training is a crucial part of our commitment to being a top-notch claims organization. To meet our customers’ needs and make the repair process as seamless as possible, we need to continually expand our knowledge so that we’re always experts about the vehicles we insure and what it takes to repair them. Getting the I-CAR Gold Class Professionals designation acknowledges the efforts of our regional offices to achieve our industry’s highest standards.”
“I am very proud of the way our staff worked alongside Esurance to help them accomplish their goal. I would also like to commend Esurance for their commitment to training and follow-through in this process,” said Jeff Peevy, I-CAR Director of Field Operations, North America. “Their full-on dedication was vital to achieving this accomplishment.”
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Caliber Collision Centers, an Irvine, California-based operator of collision repair facilities in California and Texas, has opened its new 16,000 square foot facility in North Dallas.
John Hovis, President and CEO of Caliber, commented, “We’ve added this facility to fulfill specific customer and client needs and to grow our presence in the Dallas market. We will continue to expand in current and new markets to ensure that our customers have access to convenient, best-in-class collision repair services.”
“As Caliber management actively pursues additional investments to drive our expansion and growth, this former dealership-owned collision repair facility complements our ongoing strategic plan,” said Mark Sanders, Caliber’s Chief Operating Officer. “The facility’s size, central location, and strong customer following allow us to continue our growth in the Dallas/Fort Worth marketplace.”
Founded in 1997, with headquarters in Irvine, Caliber Collision Centers currently owns and operates 68 collision repair facilities in California and Texas.
PPG’s MVP Business Solutions team will host a conference for collision center owners and managers from across North America, September 13–15 at the Gaylord Opryland Hotel in Nashville, Tennessee. The conference will center on the theme of Accelerating Performance and will focus on helping owners and managers develop and utilize their leadership skills to implement change and maximize their business performance.
“Past MVP conferences have focused on the challenges brought forth by the current business climate and the changes that are needed in order to stay competitive,” said Randy Dewing, senior manager, PPG Business Solutions. “At this conference, we’ve put together an exceptional combination of speakers and seminars to address leadership and execution skills that are so vital to future shop success.”
The conference will consist of management training, key-note speakers, breakout seminars, and peer-to-peer discussion groups.
This conference reflects the commitment that PPG MVP Business Solutions has “to utilize every minute that we get with a customer in a way that will help them enhance their business performance,” said Jim Berkey, director, PPG Business Solutions.
“Every event on the conference agenda is geared toward taking the leadership skills of key collision shop personnel to the highest level,” said Norm Angrove, senior manager, PPG Value Added Programs.
Seminar, breakout session and discussion group topics include:
- Leader Talk
- Increasing Sales through Strategic Sales and Marketing Systems
- Introduction to Situational Leadership(R)
- Leadership: Workers of the Next Generation
- Bridging the Communications Gap
- Marketing Best Practices
- Goal-setting and Execution
- Understanding and Meeting the Expectations of Your Workforce
- Employee Communication Techniques and Best Practices.
Attendance at the conference is open to owners and managers of collision centers using PPG Refinish products.
The Auto Glass Replacement Safety Standards Council (AGRSS), in cooperation with ASA, NACE and CARS has announced that Chesley "Sully" Sullenberger, III, the heroic pilot who masterfully landed US Airways Flight 1549 in the Hudson River earlier this year, saving 155 people, will serve as keynote speaker during the Opening General Session, sponsored by DuPont Performance Coatings.
Captain of what has been dubbed the “Miracle on the Hudson,” Sullenberger is an aviation safety expert and accident investigator who also serves as the founder and chief executive officer of Safety Reliability Methods, a consulting company dedicated to management, safety, performance and reliability consulting.
Sullenberger was born and raised in Denison, Texas. He graduated from the United States Air Force Academy with a degree in psychology. He also has two master's degrees, one in industrial psychology from Purdue University, and one in public administration from the University of Northern Colorado.
Sullenberger served as a fighter pilot for the U.S. Air Force from 1975 to 1980.
After serving in the Air Force, Sullenberger became a commercial airline pilot with Pacific Southwest Airlines, which was later acquired by US Airways. He has more than 40 years of flying experience. His work led to the creation of a Federal Aviation Administration Advisory Circular. He was also instrumental in developing and implementing the Crew Resource Management course that is used by US Airways, and he has taught the course to hundreds of other airline members.
Captain Sullenberger’s address, scheduled for Thursday, November 5, 2009 at the Mandalay Bay Convention Center in Las Vegas, Nevada, will focus on how paramount safety is in a proper installation, proper collision or mechanical repair, and proper operation of vehicles, thereby keeping the motoring public safely on the road.
Sullenberger is the author of Highest Duty: My Search for What Really Matters. He was named one of the 2009 world’s 100 most influential people by TIME magazine.
INSIGHT has received the following open letter to the editor from CCC Information Services:
The June 16, 2009 release by the CIC Database Committee relating to the bumper refinish prompt in CCC Pathways(R) collision estimating version 4.5 contained numerous factual errors and certain misrepresentations of CCC’s position. We believe that it is important to address those items and reiterate CCC’s position with respect to the bumper prompt, which we do below.
CCC Pathways(R) Collision Estimating Version 4.5
It is important to first understand how the bumper prompt functions in CCC Pathways version 4.5. In this release, the bumper refinish prompt is not present unless the user affirmatively enables it. In other words, the user must chose to activate the feature for it to appear when writing an estimating. Furthermore, if the user chooses to enable the prompt, the user selects the answer to the prompt that appears as the default answer; the answer then may be changed in any given estimate as needed to match the process being employed for the repair.
Paint Manufacturer Recommended Procedures
The Release states in several places that the prompt is not consistent with paint manufacturer recommended procedures. For example, the Release states:
- “paint manufacturer data no longer appears to be the governing factor” and
- “the obligation to closely mirror OEM procedures non longer applies.”
The Release, however, then goes on to reference a paint manufacturer system that very clearly states in its published documentation that it is appropriate to refinish the bumper in one continuous process with rigid parts. Specifically, the Release states the following:
- “the exact same clearcoat is applicable to both rigid and flexible parts, and no special clear coat additives (flex) are required when refinishing flexible parts.”
While this paint manufacturer recommends hardener in the basecoat for this product, it should be noted that when using low VOC waterborne products from this same manufacturer, the basecoats do not require the addition of hardener. Therefore, using these systems, it is possible to refinish the flexible and rigid parts in a continuous process, and in the case of waterborne systems, with no related material implications.
The Release also fails to point out that several of the other manufacturers do allow for a “one gun” solution for both basecoat and clear coat, which would warrant usage of the bumper prompt. While these procedures may require additional materials and/or longer drying times, their systems do allow for a “one gun” method. This method is also supported by I-CAR, which is an international, not-for-profit training organization dedicated to improving the quality, safety, and efficiency of auto collision repair. The section in the I-CAR Advantage on Refinishing Plastic Parts, under the heading “Should I spray flexible parts and non-flexible parts separately?” states:
- Single-stage and clearcoats could be applied with the “two-gun method,” one with flex additive and the other without. Small, combined repairs could be completed all with flexible finish…. Having flex additive in the material on non-plastic parts will do no harm. As already mentioned, a coating with flex additive will have better chip and scuff resistance.” (from I-CAR Advantage on Refinishing Plastic Parts.)
Additionally, the Motor(R) Guide to Estimating is clear on this issue:
- When a flex agent, or a separate paint mix procedure is not required, and when the flexible component is refinished during the same procedure with major or minor components, then flexible components should be considered the same designation as major or minor components for the purpose of calculating refinish overlap deductions, and/or multi-stage refinishing additions.
In summary, the decision on how the vehicle will be refinished will vary based on the paint system being used, the size of the job, and other factors. The prompt facilitates creation of an accurate estimate when using paint systems that allow a “one gun” method and the “one gun” method is utilized in the refinishing portion of the repair. As shown above:
- Motor states that when using a single paint mix for flexible and rigid parts, overlap deductions involving the bumper are appropriate.
- Paint systems from major paint manufacturers allow for a single mix to be used on flexible and rigid parts for both clearcoat and basecoat.
- Major paint manufacturers and I-CAR acknowledge that a “one gun” application is acceptable in certain situations.
In light of the foregoing, CCC Pathways collision estimating needs to have an option to account for this process.
CCC Position Interpretation
The Committee has taken the unprecedented step of publishing what it considers CCC’s position to be. It writes:
- “CCC appears unwilling at this point to . . . take any further steps to ensure that the deviation caused by use of the prompt is easily distinguished on an estimate . . .”
This statement is simply not true, and we encourage anyone that has a question about CCC’s position to ask us. While we believe that the estimate currently shows the presence of the overlap deduction, we are currently working on several different methods that could enhance visibility into how the bumper prompt was answered by the estimator. These suggestions from our customers include adding a footnote that would document that the estimator indicated the bumper would be refinished in a continuous operation or additional wording to the estimate line for bumper refinish indicating whether a continuous process was selected by the estimator.
Advisory Panel
CCC has announced plans to convene an industry advisory panel comprised of representatives from various industry segments to evaluate potential product changes. The panel will be conducting its first meeting in the very near future, and the issues around the bumper prompt, including the above-referenced enhanced disclosure on the estimate print-out, will be among the first agenda items.
Documentation
The Committee also states that:
- “It is a reasonable expectation that CCC . . . safeguard that possibility through . . . clear and concise documentation and positions that provide transparency to the proper use of the system as it was intended.”
CCC agrees, and we believe that such documentation has been supplied. Because some parties have requested additional documentation, we have produced an Addendum to the CCC Pathways 4.5 release notes that more fully explains how to answer the bumper prompt given the paint system and the actual refinishing procedures being used on the repair job.
Summary
CCC remains strongly committed to the accuracy of the estimates. We continually seek input from the industry, and especially from our customers. We will continue to work with advisory panels, associations, industry committees, and other groups that promote professional dialogue and are committed to industry improvement.
Respectfully,
Jack Rozint - Vice President, Product Management
Jim Dickens - Senior Vice President, Automotive Services Group
AASP of Missouri, ASA MOKAN and SCRS MOKAN completed the 4th successful Collision Industry Forum for the Midwest on June 17, 2009 in Columbia, Missouri.
Craig Brace of Pure Marketing in Columbia, Missouri opened the forum by presenting marketing observations of an outsider and consumer about the Collision Repair Industry, and suggested some innovative new ways to brand businesses. He explained there was a variety of low or no cost ways to “brand” a particular facility such as the commonly under-utilized resource, the Internet.
Karen Fierst of KerenOr Consultants explained ongoing efforts in Washington to enact repair clause legislation to allow for alternative crash parts to be exempt from patent infringement, similar to legislation that is already in existence in Europe and Australia. She also conducted a survey concerning alternative parts usage in the industry, and then presented results to the attendees in the afternoon sessions to show trends in alternative parts usage and perception.
Nationally known industry participant and instructor Toby Chess presented an interactive session geared to help shop owners improve their bottom lines. Chess involved his audience in the presentation with interactive examples and situations. He showed that omitting minor items can affect the bottom line of a repair shop considerably, and that shops must continue to bill for items and services they perform regardless of whether they think an insurer might attempt to deny the charge.
In addition, the attendees had the opportunity to listen to and interact with Representative Steve Hobbs and Senator Wes Shoemyer, who have been of great help to the Collision Repair Industry over the past years. They delivered a message placing importance on the need for unity on issues and for active participation in the legislative process.
Following lunch, Toby Chess and David McCrieght of Collision Resources answered questions about the Lean Process, and discussed ways to begin the lean conversion. McCrieght then spoke about production processes such as Toyota has developed over the years so that production is maximized with a minimum of resources.
Chris Andreoli, from Progressive Insurance, addressed the group about the institution of Progressive’s new claims imitative and concerns relating to Progressive, and then took questions. There appeared to be consensus that although not all issues have been resolved, there has been improvement in the working relationship of the insurer and repairers over the past year. One shop owner stated this was a milestone because until the meeting last year it seemed no one had been willing to listen to his side. Interactions at the Missouri Collision Forum have helped move these changes along.
Following was an open forum session where several issues were discussed, including:
- Blend within panel
- Capping of materials
- Lack of unity among repairers
- Steering
- Rate suppression
- Environmental Issues
- Professionalism of repair facilities
Participants at the Missouri Collision Industry Forum declared the day a complete success.
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©2009 Collision Repair Industry INSIGHT
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