September 2010 INSIGHT Industry Update

At a meeting of the Inter-Industry Conference on Auto Collision Repair (I-CAR) staff held on Thursday, September 2, President and CEO John Edelen shared his plans to retire from I-CAR at the end of 2010.

“It has been a privilege to work with the staff, the instructors, and the volunteers of I-CAR, and its outstanding Board of Directors and supporters over the past three years,” said Edelen. “And, it has been an honor to work with the industry on the I-CAR Professional Development Program(TM), a training and development framework that we hope will serve the training needs of the industry for years to come.”

Tom Moreland, Chairman of the I-CAR International Board of Directors, offered, “On behalf of the I-CAR Board, we thank John for his efforts and contributions over the course of his tenure as President and CEO.”

Moreland continued, “With the introduction of the I-CAR Professional Development Program in 2010, the planned introduction of a more robust online training curriculum, and a new training and development program for the technical schools and colleges in 2011, the near-term strategies and activities of the organization have been defined. Given the significant improvement in the financial condition of the organization and its improved efficiency and effectiveness at a staff level, I-CAR is very well positioned, financially and operationally, to serve the collision industry in the coming years.”

“I’d also like to share with the industry,” Moreland added, “that John’s decision to leave at the end of the year does not come as a surprise. The Executive Committee of the I-CAR International Board of Directors and the Board have planned for this succession and the transition of leadership to a new President and CEO, to ensure that the quality and value of I-CAR’s training, products and services continue to meet the needs of the industry.”

The Board has issued a Call for Candidates for the position of I-CAR President and CEO.

Summit Software to Launch Integrated Customer Acquisition, Service, and Retention Platform at NACE

Summit Software and Mobile Solutions will launch a new technology platform at NACE designed to help collision repairers capture and retain more repairs, customers and revenues, deliver powerful customer service to the consumer, and dramatically increase a shop’s retention and loyalty of customers.

Frank Terlep, Summit’s CEO, commented, “Almost every collision repair business I have talked to during my 25 plus year career in our industry wants and needs more cars, more customers, and more revenue. This ongoing need within the collision industry, along with the dramatic increase of digital technology use by consumers, drove our company to develop a patent-pending technology platform and a set of best practices and business processes to help collision repairers capture, service, and retain more cars, customers, and revenues from one of the fastest growing demographics in North America, 'the digital consumer.'”

According to Summit, there are tens of millions of “digital consumers” in North America. Based on statistics gathered from several sources, Summit estimates there are more than 300 million cell phone users that can send and receive text messages, 125 million smart phone users, 400 million email accounts, 165 million Face book users, 75 million people using Twitter, and 75 million daily YouTube users, with millions more North American consumers on sites such as LinkedIn, MySpace, and others. Summit’s new platform is specifically designed to serve this fast growing demographic.

Summit's new customer acquisition, service and retention platform will include the following:

MarketPlace(TM): A web based customer acquisition, service, and retention system that includes;
- Integrated Email and Text Marketing Centers
- Integration with social media sites Face book, Twitter, and YouTube
- Email, Text, Facebook, and Twitter vehicle status capabilities
- Integrated Email or Text based Customer Retention and Loyalty system
- Integrated Customer Reviews, Ratings, and Custom CSI surveys and reporting
- An On-Line Digital Marketing University.
Interfaces with Audatex, CCC, and Mitchell estimating systems, as well as import capabilities from several shop management systems
Two way integration with iPhone, Android BlackBerry, Windows, Palm, and Symbian smart phone apps
Integration with smart phone GPS systems. The patent-pending Help I Crashed My Car(TM) car accident emergency phone app for the iPhone, Android BlackBerry, Windows, Palm, and Symbian smart phone operating systems that was launched at NACE 2009
DirectConnect(TM): Summit’s patent-pending First Notice of Accident technology that delivers a First Notice of Accident, including a map and directions to the scene of the accident, directly to the collision repair business and other business partners
Best business practices for digital marketing, POS materials, press releases, pre-written emails, and other tools designed to help a shop capture, service, and retain more cars, customers and revenues.
MLO and Repair Network Dashboards.

Terlep continued, “We are so confident our platform will deliver more cars, customers, and revenues to collision repairer businesses from the hundreds of millions of “digital consumers” in North America, we are offering a 100 percent money back guarantee. I know guaranteeing a shop more cars, customers, and revenues over a twelve month period is a bold statement but we are sure our patent-pending technologies, business processes, and best practices will deliver as promised, as long as the shop uses our technology and follows our recommended best practices and business processes.”

Summit Software and Mobile Solutions will be demonstrating the new customer acquisition, service and retention platform on the NACE trade show floor at booth N753.

BASF to Host “Launching Lean” Interactive Workshop

BASF will host “Launching Lean,” a two-day interactive workshop for collision center employees and managers in Salt Lake City, Utah, on November 9 and 10. The workshop will deliver the fundamental concepts and tools needed to successfully implement Lean in a collision repair center.

Lean, part of BASF’s Vision Plus University, offers students the basic control methods necessary to eliminate waste, and to improve cycle times and efficiencies, while reducing operating costs. The Lean course is BASF's first step in implementing a continuing improvement business model and serves as a prerequisite for future workshops.

“We are proud to offer our valued collision center partners the Lean program,” said Amjad Farah, Business Development Manager for BASF Automotive Refinish. “When body shop owners apply the knowledge learned from the courses they can gain a solid competitive edge in the marketplace to grow sales and streamline their operations.”

Legislators Add Support to Proposed “Access to Repair Parts Act”

Representatives Barney Frank (D-Mass.), Bill Cassidy (R-La.) and Bob Filner (D-Calif.) have joined Representative Zoe Lofgren (D-Calif.) in support of the “Access To Repair Parts Act,” (H.R. 3059), to ensure motorists have access to low-cost alternative collision repair parts for their vehicles.

Identical legislation has been introduced in the Senate by Senator Sheldon White-house (D-R.I.) (S.1368).

Joining Rep. Lofgren in support of the House legislation are original cosponsors Reps. Rick Boucher (D-Va.), Steve Cohen (D-Tenn.), William D. Delahunt (D-Mass.), Sheila Jackson-Lee (D-Texas) and Charles A. Wilson (D-Ohio). Reps. G.K. Butterfield (D-N.C.) and Debbie Halvorson (D-Ill.) are also cosponsors.

According to the Quality Parts Coalition (QPC), many Americans continue to feel the effects of the recession and must continue to be mindful of their family’s budgets. QPC members believe that competition in the automotive aftermarket affords consumers a much needed savings of up to $1.5 billion each year.

The QPC is concerned that, in recent years, the car companies have obtained an increasing number of design patents on visible crash parts blocking aftermarket parts manufacturers from producing and distributing affordable alternatives. According to a QPC press release, this strategy is increasingly being implemented and has allowed the car companies to control nearly three quarters of the replacement parts market. If allowed to continue, they may eventually gain a complete monopoly on the production, distribution and sale of automotive repair parts.

“This anticompetitive strategy executed by the car companies should be of great concern to the entire motoring public,” said Eileen A. Sottile, Executive Director of QPC. “We are pleased that there is a growing movement in Congress to address this issue. We commend Congressman Frank, Congressman Cassidy and Congressman Filner for joining Congresswoman Lofgren and the eight cosponsors of the Access to Repair Parts Act. By endorsing this legislation, they are taking a stand to protect consumers at a time when they need it most.”

AutoNation September Sales Jump 35 Percent from 2009

Car dealer AutoNation Inc. has reported its new vehicle sales increased 35 percent in September compared with the previous year, a bigger jump than the industry overall. The Fort Lauderdale, Florida company said it sold 18,040 vehicles in September.

Overall industry sales rose 29 percent compared with last September, according to AutoData Corp., but that was deceptive. The government's Cash for Clunkers rebate program, which ran during July and August of 2009, drew buyers who otherwise would have waited until later in the year.

AutoNation said its new retail vehicle sales were down three percent in September versus August. Industrywide, sales dropped four percent from August.

AutoNation's domestic sales increased 54 percent in September from last year, import sales rose 34 percent and premium luxury sales were up 14 percent.

For the third quarter, the company said new vehicle sales rose 3 percent compared with the year-ago period.

AutoNation operates more than 250 dealerships in 15 states.

Progressive Insurance Named to InformationWeek 500 for 11th Straight Year

InformationWeek magazine has named Progressive Car Insurance to its annual list of the country’s most innovative users of business technology.

Progressive won the spot on the InformationWeek 500 for developing a way to integrate its systems with those of other companies to offer its customers products other than vehicle insurance, such as homeowners insurance. It also makes it easier for other companies to offer Progressive insurance products to their customers.

“This is an example of Progressive IT working hand-in-hand with the business to help it grow,” said Ray Voelker, Progressive's Chief Informa-tion Officer. “For example, we’re now attracting new customers who might not have chosen us if we hadn’t been able to offer them both auto and homeowners insurance together. We can also use this ability to integrate our systems with those of other companies to offer our car insurance products to their customers.”

Valspar and Habitat for Humanity Mark Millionth Gallon of Donated Paint

The Valspar Corporation and Habitat for Humanity International marked their long-standing relationship recently with a festive ceremony celebrating the one millionth gallon of paint Valspar has donated to Habitat. To represent this milestone, the partnering organizations unveiled a two-story home built entirely of Valspar paint cans.

Minneapolis Mayor R.T. Rybak and St. Paul Mayor Chris Coleman attended the ceremony and paid tribute to the organizations' ongoing commitment and work in the Twin Cities and across the country.

"Our corporate theme is 'if it matters, we're on it.' Through our wonderful relationship with Habitat for Humanity International, we continue to learn just how much affordable housing matters, and it is our great pleasure to help address this important need," said William L. Mansfield, Valspar Chairman and Chief Executive Officer. "We are also very proud that A Brush with Kindness, a pilot effort that started right here in the Twin Cities, is now a national program."

"One million gallons of paint is an important milestone, but what we're really celebrating today is how our partnership with Habitat for Humanity has allowed Valspar the unique opportunity to transform neighborhoods, by putting fresh coats of paint on homes," agreed Gary E. Hendrickson, Valspar President and Chief Operating Officer.

"As we seek to build strong communities, we find that together new construction, rehabs, repairs, and even a coat of paint on some houses can improve neighborhoods," said Mark Crozet, senior vice president of Resource Development for Habitat for Humanity International. "Valspar is a great partner in helping us touch all the houses in neighborhoods where we are focusing on revitalization. We are very grateful for their support."

Valspar's support for Habitat began in 1979, when it first provided paint and services to Habitat for Humanity Twin Cities. In time, Valspar and Twin Cities Habitat founded A Brush with Kindness, a revitalization program that helps transform neighborhoods by painting home exteriors and providing landscaping and minor home repairs.

In 2008, the Valspar Foundation committed financial support to help Habitat for Humanity International build the A Brush with Kindness program into a nationwide program. By 2012 Valspar will have donated more than $45 million in paint and cash.

CARSTAR Names National Award Winners at Annual Conference

The CARSTAR group recently celebrated its 21st anniversary and honored its top performing stores and representatives across the United States at its annual awards ceremony. CARSTAR CEO Dick Cross and President Dan Bailey made the presentations. In the category for overall operations, technical excellence, office performance, and facility performance, four CARSTAR stores were honored, with one store taking home two top awards.

Taking home the top honor as the Franchisee of the Year were Kurt and Terri Mueller, owners of Kurt's CARSTAR in Maryville, Illinois. Franchisee of the Year is the highest award given in the CARSTAR system. This year's winner was chosen on criteria including using all vendors possible, attending conferences, being image compliant, submitting reports on time and online, and delivering consistently high CSI in the Top Ten for the month and quarter periods. Kurt's CARSTAR's past five quarters of CSI have been: 98.7%, 99.2%, 99.1%, 99.5% and 99.4%.

Kurt's CARSTAR was also the recipient of the Extraordinary Individual Contribution to the Make-A-Wish-Foundation. The Muellers joined CARSTAR in October of 1993 as members of the St Louis Business Group.

The Rookie of the Year in the CARSTAR family was Marshall's Autobody CARSTAR, owned by James and Dawn Marshall in Billerica, Massachusetts.This award is given in recognition of the best of the newest CARSTAR franchisees. To qualify for the award, a franchisee must have been with CARSTAR less than three years, be well underway of achieving Tier 1 compliance, and enthusiastically embrace the CARSTAR culture with active participation.This year's winner joined CARSTAR in August of 2008 and became a member of the Massachusetts Business Group.

The award for Outstanding Facility Performance went to Exhibition CARSTAR, owned by Jeff and LaVada Middleton in Kent, Washington. The award for Outstanding Facility Performance is the second highest Franchisee Award in CARSTAR. This award recognizes the facility that consistently shows high ratings in Sales, Gross Profits, CSI, COS, Tier compliance, and active involvement both in the community and within CARSTAR. Exhibition CARSTAR also is very active in the community, providing enormous support for Make-A-Wish through the Soaps It Up program.

The honor for Outstanding Technician Performance was awarded, for the second year in a row, to West Valley CARSTAR in West Valley, Utah, owned by Bob and Linda Ellison. The award for Outstanding Technician is given to the facility that produced the most hours and dollars per technician as indicated on the monthly flash reporting with all 12-months reporting.

The award for Outstanding Office Performance went to Procraft CARSTAR in Great Falls, Montana, owned by Steve Howard. The award for Outstanding Office Staff is given to the facility that produces the most hours and dollars per front office personnel as indicated on the monthly flash reporting with all 12-months reporting.

"These CARSTAR owners and their teams have done a remarkable job building and managing their businesses in the last year, navigating a challenging economy and changing business environment to still deliver growth and success," said Dick Cross. "We're proud of their accomplishments, and look to learn from them how we can apply their knowledge and insights across our entire organization."

CARSTAR is the largest group of branded collision repair centers in North America, with over 400 locally owned and operated locations in 29 states and 10 Canadian provinces.

Final lights On for Safety Event Helps Hundreds of Motorists

On Saturday, September 25th, the Alliance of Automotive Service Providers of Minnesota (AASP-MN) held its 16th – and final – Lights On For Safety event.

AASP-MN volunteers, with help from automotive technical students, conducted a free inspection and replacement of exterior vehicle light bulbs for the motoring public. Volunteers at six sites serviced 343 vehicles and collected 1,142 pounds of food and over $1,250 for local food shelves. In addition, $3,000 in scholarships was distributed to automotive tech students who participated in the event. Minnesota State Patrol troopers were also on hand to answer traffic safety-related questions.

Lights On For Safety took place at the following sites: Century College, White Bear Lake; Dunwoody College of Technology, Minneapolis; St. Paul College, St. Paul; MN DOT/State Patrol headquarters in Duluth; Minnesota State Community & Technical College, Moorhead; and South Central College, North Mankato.

In addition to AASP-MN, sponsors of Lights On For Safety include: Auto Plus Auto Stores, Auto Value Parts Stores, Factory Motor Parts, and NAPA Auto Parts.

After 16 years, 2010 marked the final year of the event. AASP-MN hopes to develop a new public service program that will build on the many positive elements of the Lights On for Safety event, while engaging more members and having a greater public service impact. Ideas or suggestions for such an initiative will be welcomed by the AASP-MN office.

In a press release, AASP-MN extended its sincere appreciation and gratitude to its many partners, including industry suppliers, technical college instructors, and students, Hunger Solutions MN, and MN State Patrol for their participation and support of Lights On for Safety over the years. A special “thank you!” was extended to those AASP-MN members who volunteered and/or served as site coordinators, especially Pat Whelan of PJW Automotive, who has chaired the Lights On for Safety Committee and served as the face of the event since its inception in 1996.

With the Right VIN Everybody Wins- By Larry Gamache, Communications Director, Carfax

A customer pulls his car into your service bay for maintenance. Your tech quickly eyeballs the vehicle, enters the year/make/model into the shop management system (SMS), and later orders parts needed to complete the job. Unfortunately, the tech mistook the customer’s ’03 model for an identical-looking ’05, and several parts that were ordered will not fit. You are stuck reordering new ones, costing you valuable time, money, and possibly a return customer. So how can you prevent this from happening again?

Simply use the vehicle’s license plate. Carfax QuickVIN is a new, free tool available to SMS providers that matches a car’s registered license plate to instantly return the vehicle identification number (VIN) as well as the year/make/model of your customer’s car. It is an easy way to enhance your business and to avoid costly mistakes.

According to industry insiders, as many as one out of every four automotive parts that service shops order is returned. Think about how many parts your store orders in a year. Now consider the extra costs you are incurring to return overstocked or incorrect parts, and the additional time it takes to receive new ones. Chances are those numbers are pretty significant.

Then there are the customers left waiting to get their cars back because of misordered parts. Next time they have a problem, you do not want them looking elsewhere. All of these issues can eat away at your profits. In our fiercely competitive industry, good service means business. Timely repairs, competitive rates, and increased attention on customer service result in more repeat business and word-of-mouth advertising from satisfied customers.

Carfax QuickVIN gives you the correct VIN to help ensure you order the right parts, operate more efficiently, and ultimately increase your profit margin. Additionally, it can help your shop retain more vehicles in its service cycle by using VIN information to enhance marketing and customer retention efforts.

Seemingly minor clerical errors can prove costly; VIN scanners and other products designed to help cost upwards of $2,500. Carfax QuickVIN is free – all you need is to enter the license plate number and state into your SMS integrated with QuickVIN.

Many SMS providers now offer Carfax QuickVIN within their software. Call your SMS provider to include Carfax QuickVIN so you can start saving time, money, and most importantly, customers.

For more information about Carfax QuickVIN, email quickvin@carfax.com.

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