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Letter to the Editor
This article originally appeared in the June 2010 Issue of INSIGHT
©2009 Collision Repair Industry INSIGHT All Rights Reserved
Nissan North America Launches National Wholesale Parts Rewards Loyalty Program
Gullo Toyota of Conroe, Texas Wins Toyota Certified Collision Center of the Year Award
House Approves Small Business Lending Bill
Mitchell Introduces FastPhoto Manager to Automatically Scan and Link Photos to Repair Orders
Valspar to Acquire Wattyl Limited in Australia
Progressive Selects Mitchell to Provide Physical Damage Claims Solutions
DEG Handles Over 2,500 Inquiries
Non-OEM Parts Industry Discusses Latest Battle Over Structural Parts
The Boyd Group to Acquire True2Form Collision Repair Centers
INDUSTRY UPDATE
Nissan North America, Inc. (NNA) has launched a national wholesale parts loyalty program on behalf of its Nissan and Infiniti dealer networks. Designed to increase Original Equipment Manufacturer (OEM) collision and mechanical parts sales, the "Rewards Loyalty" program allows independent body shops and repair facilities to earn points that can be redeemed for more than 3,000 premiums selected from an online catalog. Advantage DataSystems Corporation has been selected to administer the program.
"Encouraging independent shop owners to purchase genuine OEM parts through their local Nissan and Infiniti dealers is a win-win-win," said Ron Stukenberg, senior manager, Wholesale & Collision Parts, NNA. "Our dealers benefit from increased parts sales and a closer relationship with their local business community, our Nissan and Infiniti owners benefit through the assurance that approved factory parts have been used in their repairs, and the shop owners know they are getting quality parts plus an added reward."
Once Nissan and Infiniti dealers enroll in the Rewards Loyalty program, they select the wholesale mechanical program and collision repair network facilities they wish to include (participation is free for the shops). Each shop is then sent an I.D. number and instructions for online enrollment. Points are earned with purchases, with rewards available from just 20 points.
Advantage DataSystems Corporation was chosen by NNA after an extensive review. The company's unique multi-brand loyalty platform allows shops to accumulate points from multiple OEMs and suppliers, thereby earning more meaningful rewards.
"We like the fact that shops can earn points quickly and from multiple sources, providing real value to the participants and encouraging them to sign up with our dealers," added Stukenberg.
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Gullo Toyota of Conroe, Texas, has been named the Toyota Certified Collision Center of the Year. The Toyota Motor Sales, USA award is based on meeting Toyota’s highest standards for customer service and rigid criteria for productivity in numerous key areas of the collision business.
“We were a top four finisher last year, so we did some things differently from 2008 to 2009. In particular, we concentrated on the little things - keeping the customers regularly informed and having three sign-offs when filling out quality control checklists on finished vehicles to ensure better quality. While these and other things seem simple enough, it's easy to veer away from them when faced with the demands of everyday work,” said Michael Cortez, collision center manager for Gullo Toyota. “We did not accomplish this on our own. I would like to thank Tony Gullo Jr. and family, Travis Rice with Gulf States Toyota, Dave Pyle with Toyota Motor Sales, USA, and Sherwin-Williams Automo-tive Finishes for all their support through the years.”
Larry Mooney, area sales manager for SWAF noted that it is a great privilege to support the Gullo Dealership network. He added that this is the fourth time in the last five years that one of Sherwin-Williams’ customers has been the recipient of this award.
The U.S. House of Represen-tatives has passed H.R. 5297, “The Small Business Lending Fund Act of 2010,” by a vote of 241-182. The bill, sponsored by Rep. Barney Frank, D-Mass., House Financial Services Committee chairman, aims to boost lending to small businesses by authorizing a fund of up to $30 billion that will be available to financial institutions with no more than $10 billion in assets. Bill co-sponsors say these funds can be leveraged to up to $300 billion in loans for small businesses. In addition, the bill provides another $2 billion to state lending programs that support small firms.”
H.R. 5297, which has been amended since originally passing the House Financial Services Committee, establishes the small-business lending fund at the U.S. Department of the Treasury. Other provisions of Title 1 of the bill include:
- Requires applicant institutions to deliver to the appropriate federal banking agency a small-business lending plan describing how its business strategy and operating goals will allow it to address the needs of small businesses in the areas it serves
- Sets forth financial incentives for small-business lending by such institutions
- Instructs the secretary to require capital investment recipients to provide outreach and advertising in the appropriate language of the applicant pool using media outlets that target organizations, trade associations and individuals that represent or work within or are members of minority communities
- Establishes the Small Business Lending Fund Program as separate and distinct from the Troubled Asset Relief Program (TARP). States that an institution shall not be considered a TARP recipient by virtue of a capital investment under this act
- Directs the secretary to study and report to Congress on the number of women-owned and minority-owned businesses that receive assistance as a result of the program.
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA’s headquarters is in Bedford, Texas.
Mitchell International, Inc. has released its RepairCenter FastPhoto Manager, an innovative image management system that automates the time-consuming process of capturing, sorting, and accessing collision-related photographs. FastPhoto Manager is a fully integrated module of the Mitchell RepairCenter(TM) - a modular shop workspace that improves workflow by combining repair, customer experience, and business management into a streamlined user experience.
RepairCenter FastPhoto Manager is the Collision Industry's first image management system to be integrated seamlessly with a shop workspace or business management system to automatically send, sort, size, load, and link photos to repair orders and estimates through advanced barcode technology. The system attaches vehicle photos to the correct estimate or RO with the push of a button on the camera.
Jesse Herrera, Senior Vice President,Product Management and Marketing for Mitchell International, said, "Having FastPhoto Manager built into RepairCenter, the market's leading shop workspace, is an exciting innovation for our industry and gives collision repairers a powerful tool to help them save time and money on every repair order. With so many new features and enhanced functionality in the new platform, shops can substantially speed up the vehicle photo documentation process."
Shops using RepairCenter FastPhoto Manager report significant time savings, some up to 30 minutes per repair order. The system also can help collision repairers increase their accuracy in writing estimates. Wireless technology makes it quick and easy to shoot and transfer photos of all existing and supplement damage to fully document estimate dollars associated with each claim. In addition, increased visual documentation of every vehicle helps shops reduce misplaced items and pre-existing damage claims. Insurers benefit as well through the ability to easily share photos with repair partners, subrogation, and SIU.
Steve Kick, owner of Avalon Collision Centers, with three locations in Southern Califor-nia, uses the FastPhoto Manager system at all of his facilities. "It's night and day," he commented. "Prior to FastPhoto, we had to organize photos manually and take the time to move them over one file at a time. Now we can take hundreds of photos of the car and instantly sort them into the correct repair order or estimate. And I can view photos from all my shops at one central location, which is much more efficient."
RepairCenter FastPhoto Manager is a completely paperless workflow solution that enables shops to quickly and easily manage photos for instant proof of work and vehicle condition documentation, ready to share with insurance partners, customers, and parts suppliers. The FastPhoto digital camera displays an on-screen menu of pre-programmed stages that will document and time-stamp photos throughout all stages of work, from intake to delivery. Those photos are then wirelessly sent to the system and automatically filed with the correct RO or estimate.
According to a company press release, RepairCenter FastPhoto Manager is easy to use. Employees can be trained in minutes. In addition, Mitchell offers shops peace of mind by backing up all photos daily to Mitchell's secure data center.
St. Louis Metro CARSTAR Collision Centers, along with CARSTAR stores across the United States and Canada, has once again made magic happen for children in need across North America, delivering incredible support for the Make-A-Wish Foundation® of America.
In the second annual CARSTAR Soaps It Up Car Wash, initial numbers show that CARSTAR washed some 4,100 cars at more than 140 locations across the United States and Canada. This surpasses the world record that CARSTAR set in 2009 by washing 4,000 cars in an eight-hour period.
Themed “Making Magic Happen – One Car at a Time”, the Soaps It Up Car Wash was held across the U.S. and Canada on June 12, 2010 as a fundraiser for the Make-A-Wish Foundation of America and other local charities. Altogether, the shops raised more than $40,000.
The nine Metro St. Louis CARSTAR Auto Body Centers washed 360 cars and raised $11,036 for the Make-A-Wish Foundation and the Boy Scouts of America from their second annual CARSTAR Soaps It Up Car Wash fundraiser.
“We are so humbled by all our business associates and the people in our community who stepped forward and gave freely of their time and their dollars to this event,” said Kerry Woodson, owner of Jungerman CARSTAR in St. Peters and representative for the St. Louis Metro CARSTAR. “We are also thrilled to have surpassed our goal of raising $10,000 for Make-A-Wish and the Boy Scouts.”
Funds raised by St. Louis Metro CARSTAR will help Arianna, a local 4-year-old Wish child suffering from Neuroblastoma, get her wish of going to Disney World. Also, local Boy Scout troops will benefit from the event, using the funds for camping gear and other troop necessities
Dick Cross, the chairman and CEO of CARSTAR, applauded the CARSTAR organization’s efforts to benefit children in need. “We are proud to once again hold the CARSTAR Soaps It Up Car Wash across North America to benefit the communities where we do business,” said Cross. “It has become a great tradition to bring all of the CARSTAR Nation together to support these two important causes.”
“I’m grateful that CARSTAR is doing so much to bring hope, strength and joy to our courageous Wish kids,” said David Williams, president and CEO of the Make-A-Wish Foundation of America. “The Soaps It Up event does a great deal to raise funds, and also raises awareness for our life-affirming mission in so many communities.”
CARSTAR is the largest group of branded collision repair centers in North America with over 400 locally owned and operated locations in 28 states and ten Canadian provinces.
The Car Care Council and Maximum Marketing Services, Inc. received a Silver Anvil Award of Excellence from the Public Relations Society of America (PRSA) for the “Be Car Care Aware” consumer education campaign. The Award of Excellence, which recognizes outstanding strategic public relations planning and implementation, was presented during the Silver Anvil Awards Ceremony held June 3 in New York City.
“With this award, the Car Care Council and Maximum Marketing have demonstrated outstanding work that helps showcase the value of public relations to the organizations we represent and the communities they serve,” said PRSA chair and CEO Gary McCor-mick, APR, Fellow PRSA. “The Silver Anvils are our profession’s most prestigious awards, recognizing capabilities and accomplishments in public relations by providing successful strategy and business outcomes.”
Known as the “Academy Awards of Public Relations,” the Silver Anvil Awards program has grown in scope and stature since its inception in 1946, and awards are now given in 59 categories and subcategories. In the more than 60-year history of the Silver Anvils, many organizations have been recognized, including solo practitioners, agencies of all sizes, large and small businesses, top corporations, non-profits, associations, and government agencies.
“The automotive aftermarket’s consumer education campaign was front and center, sharing the stage with Fortune 100 companies and major PR agencies who were recognized at the public relations industry’s premier annual national awards ceremony,” said Kathleen Schmatz, AAIA president and CEO. “We are extremely proud of our AAIA staff that directs the Car Care Council and the ‘Be Car Care Aware’ campaign and the Maximum Marketing Services agency.”
With more than 31,000 members, PRSA is the largest organization of public relations professionals and students. PRSA is comprised of 111 local Chapters organized into 10 geographic Districts; 16 Professional Interest Sections that focus on issues, trends and research relevant to specialized practice areas, such as technology, health care, financial communications, entertainment and sports, and travel tourism; and the Public Relations Student Society of America (PRSSA), which has more than 300 Chapters at colleges and universities in the United States and abroad. PRSA is headquartered in New York.
Founded in 1981, Maximum Marketing Services, Inc. is a Chicago-based, full-service marketing communications firm specializing in advertising, public relations, Web and graphic design, direct marketing, research and sales promotion for a variety of clients.
The Car Care Council is the source of information for the “Be Car Care Aware” consumer education campaign promoting the benefits of regular vehicle care, maintenance and repair to consumers.
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The Valspar Corporation has agreed to acquire Australian paint manufacturer Wattyl Limited.
Wattyl had 2009 sales of A$381.4 million. Wattyl distributes leading paint brands to retail customers through home improvement centers and hardware outlets and to trade customers through a network of 140 company-owned stores.
Valspar will acquire all outstanding Wattyl shares for approximately A$142 million and assume existing debt. The transaction is subject to approval by Wattyl shareholders and regulatory authorities.
“Wattyl is a market leader with excellent brands, high quality products and broad distribution across all channels throughout Australia and New Zealand,” said William L. Mansfield, Valspar chairman and chief executive officer. “This latest acquisition builds on our increasing presence in the Asia Pacific region and presents an outstanding opportunity for growth.”
The Progressive Corporation has selected Mitchell International as its key provider of physical damage claims solutions. Under the terms of the agreement, Progressive will adopt Mitchell's WorkCenter™ solution to power its physical damage claims processing needs including assignment, repair-able estimating, total loss valuation, review/audit, repair management, and reporting. The first physical damage application Progres-sive will roll out is WorkCenter™ Total Loss, a vehicle valuation solution developed in conjunction with customer satisfaction and vehicle pricing expert J.D. Power and Associates.
"After an extensive evaluation, Progressive has selected Mitchell as our physical damage suite provider. Mitchell's end-to-end physical damage claims solution will enable Progressive to continue to provide accurate and efficient service to our customers, while reducing our overall technology spend. We are excited to roll out WorkCenter Total Loss this summer. The solution's straight-forward methodology developed by J.D. Power and Associates will assist with our customer satisfaction efforts during the claims settlement process," said Michael Sieger, Claims Process General Manager, The Progressive Group of Insurance Companies.
"This new agreement between Mitchell and Progressive is groundbreaking in the industry. We're providing one of the nation's largest insurers with a complete end-to-end integrated physical damage processing solution. We are honored that Progressive selected Mitchell and we are committed to the flawless implementation of the WorkCenter™ solution," said Alex Sun, President and Chief Executive Officer, Mitchell International.
The Progressive Group of Insurance Companies, in business since 1937, is one of the country's largest auto insurance groups and largest seller of motorcycle and personal watercraft policies, and a market leader in commercial auto insurance based on premiums written.
The Database Enhancement Gateway (DEG) has now successfully assisted collision repairers in the processing of more than 2,500 data related inquiries.
“This is a proud time for the DEG,” stated Nick Kostakis, a member of the DEG Joint Operating Committee (JOC). “The DEG relies heavily upon members of the collision repair industry to utilize this incredible, and free, service; reaching this tremendous milestone confirms that collision repairers are taking advantage of the tools the DEG has to offer our industry.”
Barry Dorn, fellow DEG JOC member added, “It’s very exciting to see the DEG going strong and continuing to gain momentum; we all need to remember that every time the DEG assists us with processing of a data related inquiry the correction is a global correction that improves the accuracy of collision repair data for our entire industry not just a single repair shop or repair job. When the ASA, AASP, and SCRS came together to carry forward the work started by March Taylor by forming the Database Enhancement Gateway (DEG) we knew it would be an invaluable tool for collision repairers and I am very proud to see the tremendous success the DEG has become and the value it continues to bring to the collision repair industry. ”
“It’s really encouraging to see how supportive each of the information providers have been, and continue to be.” Caroll Proctor, another JOC member added. Without the support, cooperation, and dedicated efforts of Audatex, CCC/MOTOR, and Mitchell the DEG would not be the success it is today. We would like to sincerely thank all that have been involved in the processing of DEG Inquiries. Without your assistance we would have a lot of unanswered questions and the DEG would not be the incredible success it is today. ”
Bud Center Jr. DEG Administration, noted, “Over 2500 inquiries is an accomplishment we should all be proud of. However, I am absolutely confident we can, and will, do better. There is still a very large segment of our industry that is not taking advantage of the free service the DEG provides. But, I believe that with the continued hard work and dedication of everyone involved... the word will continue to spread about the invaluable service the DEG provides and the number of collision repairers taking advantage of this service will continue to grow.”
The fallout in recent months from concerns raised about non-OEM bumper and structural parts raised by industry trainer Toby Chess was clearly on the minds of the parts manufacturers and distributors gathered in Indianapolis, Indiana, this spring for the Automotive Body Parts Association's 30th annual meeting.
At the Collision Industry Conference (CIC) this past November and January, Chess demonstrated key differences between some non-OEM structural parts and the OEM parts they are being sold to replace. The demonstrations have led at least four insurers to pull back from asking shops to use certain non-OEM parts, and has led to new testing and certification efforts related to such parts. Chess’s latest presentation on such parts at CIC in April was halted at the last minute after he said he was threatened with a lawsuit by LKQ Corporation, parent company of Keystone Automotive.
In an unsuccessful bid for a seat on the ABPA board, Rob Wagman of LKQ Corporation told attendees that if elected he would push ABPA to be more proactive on such issues.
"I reached out to the association in November after the first CIC demonstration, and quite frankly, I didn't think ABPA did enough to get out in front of this thing," Wagman told the 150 people attending the ABPA event. "I think on the board I would push to get the association out there, defending its membership and really getting in front of these guys who are coming after the industry. If we don't act soon, I think we're in a lot of trouble as an industry. If I was on the board, I'd want to make sure...that everyone knows we're a quality industry that's trying to help the industry and not bring it down."
Wagman and another potential new ABPA board member were defeated in the election for three open board seats by current board members winning reelection. Like Wagman, ABPA Treasurer Jim Smith, a consultant in the non-OEM parts industry who was reelected at the meeting to his position on the association's board, told those at the ABPA meeting that the non-OEM parts industry is under attack like at no time since the State Farm parts lawsuit a decade ago.
He pointed to the Automotive Service Association's meeting this spring with senior officials from the National Highway Traffic Safety Administration (NHTSA) at which ASA reiterated its request that the agency regulate non-OEM crash parts.
"Of all the things that can happen to our industry, being regulated by the government has to be right there at the bottom," Smith said. "It's a shame that ASA would try to take our industry in that direction."
Smith also said the non-OEM parts industry - even those that sometimes resent LKQ / Keystone for its dominant position in the market - owes the company thanks for its actions in preventing Chess' planned demonstration at CIC about problems with non-OEM hood latches.
"I don't care if you like LKQ or not, but what they did in quieting Toby Chess was absolutely necessary for our industry," Smith said. "While you may want to kick them in the butt when they're doing things in your market that make you scratch your head, you need to pat them on the back when they spend the money to do the things that make your business survive," Smith said.
Canada's The Boyd Group Income Fund has entered into a definitive agreement to acquire True2Form Collision Repair Centers, Inc., one of the largest multi-location collision repair companies in the United States.
"The acquisition of True2Form is a significant strategic move for The Boyd Group as it allows us to enhance our presence in the eastern United States with an additional 37 locations in states and markets that we do not currently operate in, thereby complementing our existing network," said Brock Bulbuck, President and Chief Executive Officer of The Boyd Group. "True2Form is also attractive to us because of its strong leadership team, its deep operational expertise, and its tradition of providing industry-leading repair quality and customer service. While we are continuing our growth strategy of adding between eight to ten new locations per year, this acquisition represents a unique opportunity to acquire a strategic multi-location repair business that can accelerate our growth."
The transaction, valued at approximately $18 million U.S., is expected to be completed by August 1, 2010, subject to certain closing conditions being fulfilled. Funding for the transaction will be a combination of cash, U.S. bank debt, third-party financing, and a vendor take-back note. The Boyd Fund will not be issuing any new equity to fund the transaction, and therefore there will be no equity dilution to unitholders.
True2Form is a private company that operates 37 locations in four U.S.states; 17 locations in North Carolina, eight locations in Ohio, seven locations in Maryland, and five locations in Pennsylvania. True2Form reported revenues of over $71 million U.S. in the 12 months ended May 31, 2010.
"We are looking forward to being a part of the Boyd Group," added Rex Dunn, CEO of True2Form. "We believe that the combination of our two market leading companies represents an excellent strategic fit and creates an even stronger industry leader which will be better positioned to deliver innovative, best-in-class service to insurance company customers and vehicle owners."
With the acquisition of True2Form, the Boyd Group will significantly expand its footprint, and will operate 129 centers in North America, with 92 centers in 11 U.S. states and 37 centers in the four Western Canadian provinces.
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