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This article originally appeared in the December 2010 Issue of INSIGHT
©2010 Collision Repair Industry INSIGHT All Rights Reserved
Gerber Collision & Glass Opens New Repair Center in Arizona
PPG SEMA Show Exhibits Draw Crowds and Awards
LKQ and SafeAuto Insurance Company Form Strategic Partnership
Toyota Issues Position Statement on Use of Aftermarket Collision Parts
Ohio Technical College Receives 2010 Weatherhead 100 Award
CARSTAR Executive Stacy Bartnik Named NABC President for 2011
ALLDATA Teams with AAIA to Demonstrate the Shop of Tomorrow
Results of Crash Testing of Non-OEM Parts Revealed at CIC
Uni-Select to Acquire FinishMaster
Fix Auto Collision Centers of Oregon Donates a Recycled Ride
INDUSTRY UPDATE
3M has launched its first-ever U.S. service center at Pep Boys.
In the "3M Car Care Center at Pep Boys" consumers may choose among new services that they do not currently find at Pep Boys stores. Featured services of the "store-within-a-store" will include application of 3M(TM) Window Films and Scotchgard(TM) Paint Protection Film, automotive detailing, Scotchgard(TM) Vehicle Protection services, 3M professional headlight restoration, paintless dent removal, and more. Additional services will be introduced throughout 2011.
The "3M Car Care Center at Pep Boys" will open two pilot locations in late 2010 and early 2011. The Washington Boulevard location is set to open in November, and a second Southern California location will open in December or January. Expansion will be considered for 2011 and beyond, based upon the success of the first locations.
"We are thrilled to pilot the 3M Car Care Center at Pep Boys," said Scott Webb, Executive Vice President of Merchandising and Marketing at Pep Boys. "Pep Boys is already a full-service provider, and the addition of the 3M Car Care Center further supports our customer commitment to 'Does Everything. For Less.'"
"In addition, the launch of two locations in Southern California is ideal. We know that there are many passionate car enthusiasts in this area and we look forward to providing them with more unique services in car care at Pep Boys," added Webb.
The Washington Boulevard location will feature a 3M-branded bay for vehicle services. A closed-loop water reclamation system and wash pad will be set up inside the bay for a technician to clean the vehicle. Nearly all of the water used to wash the vehicles will be recycled, creating a very "green" method of washing a car. The lack of water waste and impact on sewage systems is important to both companies.
"3M has been in the automotive industry for nearly 100 years, with products for both the Do-It-Yourselfer and automotive professional," said Julie Elepano, 3M Car Care Center Business Manager. "The '3M Car Care Center at Pep Boys' brings our history of innovation and firsts to another level. We're eager to offer consumers more ways to maintain and improve their cars, and we're excited to be delivering this concept with Pep Boys as our partner."
3M has 3M-branded Car Care Centers in multiple locations around the globe, including China, Brazil, and India.
Pep Boys has more than 6,000 service bays in over 600 locations in 35 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States.
A recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3M's core strength is applying its more than 40 distinct technology platforms - often in combination - to a wide array of customer needs. With $23 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 65 countries.
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The Boyd Group Inc. has opened a new repair center in Yuma, Arizona. The start-up facility operates under the Gerber Collision & Glass trade name and is approximately 16,000 square feet in size, with 15,000 square feet of production space. With this addition, the Boyd Group is now able to serve consumers and insurance clients in the tenth largest city in Arizona.
The Boyd Group now owns and operates 12 repair centers in Arizona and a total of 97 in the U.S., including 37 repair centers that operate under the True2Form trade name.
“With our latest start-up facility, we are continuing to execute on our strategy of expanding into select markets and growing our network of repair centers across North America,” said Tim O’Day, President and COO of the Boyd Group’s U.S. Operations. “Our new Yuma location is strategically located near the borders of California and Mexico, and allows us to introduce the Gerber Collision & Glass brand to the southwestern Arizona market. We are very pleased to be able to serve new customers in that area.”
The Boyd Group Inc. is the largest operator of collision repair centers in North America. The company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass, as well as in 11 U.S. states under the trade names Gerber Collision & Glass and True2Form Collision Repair Centers. The company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States.
The 2010 SEMA Show proved to be a major success for PPG’s Automotive Refinish division. Considered to be the world’s leading automotive specialty products event, the show was held November 2 – 5 in Las Vegas, Nevada at the Las Vegas Convention Center. PPG drew crowds – and awards – with unique indoor and outdoor exhibits, custom car displays, celebrity painters, a new product announcement, industry-related classes, and a dazzling show of custom-painted guitars and album covers.
The PPG indoor exhibit, a 1950s-style diner, was named best of show by Collision Hub, the premier networking site for the collision repair industry. A display of rock ‘n’ roll era guitars and records decorated by superstar painters of the custom car universe was also showcased. The guitars and records were finished with PPG’s VOC-compliant waterborne coatings.
The PPG outdoor exhibit featured the PPG Show Truck with its new, colorfully eye-catching paint scheme and Steve Hale’s “Green Machine,” a 100 percent propane-powered, customized 1956 F-100 pickup finished in gleaming Envirobase High Performance waterborne coatings.
Two custom cars on display in the PPG booth won noteworthy awards. “Wild Cad,” a radically chopped and channeled 1959 Cadillac Coupe DeVille painted in PPG neon purple by the legendary Gene Winfield took the General Motors Design Award for best GM passenger car. A second 1959 Cadillac Coupe DeVille, a custom restoration by Todd Lewis of Xtreme Restorations, Slatersville, Rhode Island, received the Mother’s Shine Award which recognizes the best finishes at the show. Both cars added to the diner’s retro 1950s “Happy Days” motif.
Crowds also gathered around the PPG exhibits to meet celebrity painters Gene Winfield, Tom and Mitch Kelly, Charley Hutton, and Dave and Jody Perewitz, who were on hand to sign autographs and discuss their techniques for painting with PPG Vibrance Collection(R) custom finishes and Envirobase High Performance waterborne coatings.
The SEMA show is open exclusively to members of the industry and attracts participants from over 100 countries around the world.
PPG Industries’ vision is to continue to be a worldclass coatings and specialty products company. Founded in 1883, the company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, PPG operates in more than 60 countries around the globe. Sales in 2009 were $12.2 billion.
LKQ Corporation and SafeAuto Insurance Company, a consumer-direct auto carrier based in Columbus, Ohio, have entered into a strategic alliance for the disposition of total loss vehicles.
Under the terms of the agreement LKQ will pay SafeAuto an agreed price for total loss vehicles, eliminating the expenses associated with having the vehicles processed through auctions. The LKQ-SafeAuto alliance will continue to develop the insurance industry’s innovation in the area of alternative parts utilization.
“Our alliance with LKQ will advance our ability to deliver high quality and efficient claims services to our customers, which is what it’s all about” said Rob Huebner, SafeAuto’s Material Damage Manager.
Rob Wagman, Senior Vice President of LKQ, added, “We are thrilled to be an innovative partner with SafeAuto. By providing a competitive bid for salvage, we are keeping salvage from leaving the United States and making those parts available to carriers and repairers alike. Keeping salvage in the U.S. will reduce claims costs and the amount of total losses of other damaged vehicles.”
LKQ Corporation is the largest nationwide provider of aftermarket collision replacement products, recycled products and refurbished collision replacement products such as wheels, bumper covers, and lights. LKQ operates more than 300 facilities, offering its customers a broad range of replacement systems, components, and parts to repair automobiles and light, medium and heavy-duty trucks.
INSIGHT has received the following statement from Roger Foss, National Field Support Manager, Toyota Customer Services, at Toyota Motor Sales USA, Inc.:
Toyota, Lexus, and Scion vehicles are engineered and manufactured as an integrated assembly of carefully designed and manufactured parts working as a system to provide predictable performance, safety and durability.
To help preserve the performance of Toyota, Lexus, and Scion vehicles, Toyota, Lexus, and Scion publish detailed repair procedures and produce and sell Genuine Toyota, Lexus, and Scion Parts, which are manufactured to the same specifications and tolerances as the parts installed on new Toyota, Lexus, and Scion vehicles. Repairing a vehicle using Genuine Toyota, Lexus, and Scion parts and procedures can help return Toyota vehicles to pre-loss condition following a collision.
The use of Alternative Parts
Due to the sensitive nature of the safety and performance systems and lack of testing to determine their effect on vehicle crashworthiness, Toyota, Lexus, and Scion do not recommend the use of alternative parts for the repair of Toyota vehicles. This includes:
- Aftermarket Parts: Parts manufactured and branded by a company other than Toyota, Lexus, or Scion
- Rebuilt Parts: Exterior sheet metal parts (including bumpers and wheels) removed from a damaged Toyota, Lexus, or Scion vehicle and refurbished for re-sale
- Salvage/Recycled Parts: Parts removed from a previously damaged vehicle, cleaned up and then installed on a different vehicle.
Overall Body Structure
Genuine Toyota, Lexus, and Scion Parts are constructed using metals with specific properties, thicknesses and stamping structures built to perform in a consistent and predictable way during a collision event. The use of non-OEM structural components may compromise the overall crashworthiness and occupant safety of Toyota, Lexus, or Scion vehicles in a subsequent collision.
Supplementary Restraint System (SRS) Components
Toyota, Lexus, and Scion vehicles are equipped with several SRS components including airbags and seatbelt pretensioners, which are designed to help protect vehicle occupants from injury. These parts rely upon precisely manufactured sensors to detect a collision event and trigger the SRS components to deploy within milliseconds of an impact. The installation of parts branded by companies other than Toyota, Lexus, or Scion that may not be tested to match Toyota, Lexus, or Scion performance specifications may alter the structure of a vehicle and could result in improper operation of the SRS sensors and components.
Exterior Sheet Metal Parts
The exterior sheet metal components are often described as “Cosmetic Parts.” However, these parts are designed and tested as part of the overall vehicle and may help send impact energy to the SRS sensors. In addition, some of these parts may help Toyota, Lexus, or Scion vehicles comply with several Federal Motor Vehicle Safety Standards (FMVSS) including hood intrusion in the passenger cabin, preservation of proper door operation following a collision and proper airbag function. Alternative parts may not be crash tested to verify compliance with these standards.
Recycled Parts
Toyota, Lexus, and Scion do not recommend the re-use of structural components that have been removed from a previously damaged vehicle. Although parts may appear equivalent, it may be difficult to identify previous damage, if a part has received collateral damage as a result of a prior collision or if the part has been subject to extreme weathering, corrosion or other detrimental environmental exposure. Fur-thermore, removing welded parts from a donor vehicle, may compromise the structural integrity of the parts being used.
For the third consecutive year, Ohio Technical College (OTC), a provider of specialized technical training in a wide variety of transportation fields, has been awarded the Weatherhead 100 Award by Case Weatherhead School of Management and The Council of Smaller Enterprises (COSE).
The 2010 Weatherhead 100 Award recognizes the fastest growing companies in Northeast Ohio, based on the percentage of sales growth from 2005-2009. Ohio Technical College placed 62 out of 100 companies on the list.
"We're proud to have earned this honor three years in a row, and we believe our growth reflects on Ohio Technical College's ability to deliver the high-quality, experienced em-ployees that the automotive industry demands," said Jordan Brenner, Director of Admissions and Enrollment, OTC.
To be eligible for the award, companies also must have net sales over $1 million and have a minimum of 16 full-time employees in 2010. OTC and its branch campus the PowerSport Institute currently have over 1,300 students enrolled in class - a 25 percent increase over last year. The college's staff has reached 270 employees.
Ohio Technical College first held classes in 1969 as the Ohio Diesel Mechanics School, conducting six -week courses in Cleveland's Warehouse district. Today, students at Ohio Technical College can choose from more than 20 specialized technician training programs in automotive, motorcycle, diesel equipment, collision repair and refinishing, custom paint and graphics, classic car restoration, high performance and racing, alternative fuel vehicles, power generator systems, welding, and BMW training.
Ohio Technical College is an accredited private, proprietary technical school dedicated to providing premier technical training in the world of modern mechanics by pursuing industry alliances, providing outstanding training equipment, and focusing on the needs of individual students. An Accred-iting Commission of Career Schools and Colleges of Technology (ACCSCT) college, OTC and its PowerSport Institute branch campus encompass nearly 800,000 sq. feet of classroom and workshop space.
Since its inception in 1987, the Weatherhead 100 has been the event that showcases the fastest growing companies in Northeast Ohio. Qualifying companies must show consistent growth over the last five years. The Weatherhead 100 list - objectively determined annually and highly regarded throughout the region - is a testament to hard work, commitment, innovation, and the dream to succeed.
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During this year's SEMA Show in Las Vegas, the National Auto Body Council (NABC) elected its new officers for 2011. CARSTAR Auto Body Repair Experts is proud to recognize that Stacy Bartnik, Assistant Vice President - Director of Field Services for CARSTAR Auto Body, was elected President of the National Auto Body Council (NABC) for the 2011 term.
Bartnik has long been a leader in the Collision Repair Industry. She has worked in many segments of the industry, including as Shop Estimator, General Manager, Insurance Adjuster, Trainer, and Consult-ant. She is a recognized industry figure, often appearing at NACE as a speaker and presenter; as a contributing editor for ABRN; and was honored in 2004 by Akzo Nobel as one of the Most Influential Women in the Collision Industry.
Bartnik is Past Chair of the Collision Industry Conference (CIC), a forum for discussion of issues affecting the various segments involved in the Collision Repair Industry. In addition to her role with NABC, Bartnik currently serves on the Automotive Service Association's (ASA) Collision Operations Commit-tee, is an Education Founda-tion Trustee of The Inter-Industry Conference on Auto Collision Repair (I-CAR), is a member of the Women's Industry Network (WIN), and has served on the executive board of the Society of Collision Repairs Specialists (SCRS).
During the SEMA Show, Bartnik was also inducted into the Collision Industry Hall of Fame, called the "Hall of Eagles," during the annual Industry Achievement luncheon.
"We're proud to see a member of our CARSTAR leadership team take a role leading our industry," said Dan Bailey, president and COO of CARSTAR. "She has been a great resource for our store owners and an excellent champion for bringing our industry into the future. Her leadership of the NABC through the challenges of the year ahead will help positively shape how all collision repair facilities do business in the future."
CARSTAR, founded in 1989, is the largest group of auto body repair facilities in North America, with locations in 30 states and 10 Canadian provinces.
At the 2010 Automotive Aftermarket Products Expo (AAPEX) Shop of Tomorrow, ALLDATA demonstrated a telematics server, which leverages the Automotive Aftermar-ket Industry Association (AAIA) iSHOP standards, to enable communications b-etween a vehicle, the vehicle's owner, and the vehicle's preferred service provider.
By integrating data from the vehicle with ALLDATA's information, technicians can begin remote proactive diagnostics on the vehicle when a problem occurs instead of waiting for the vehicle to drive into the service bay. In addition, the technology will be capable of sending "service reminders" to both the vehicle owner and the repair facility to help maintain the vehicle based on time and mileage.
"This demonstrates how ALLDATA is leveraging technology and standards to enable a better relationship between the millions of vehicle owners in the automotive aftermarket and their preferred shops," said ALLDATA Senior Product Marketing Manager Ben Johnson. "As fewer service bays become available due to OE and aftermarket consolidation, we have to create new and innovative ways to make shops more efficient. Telematics is one solution."
iSHOP is a set of standards, developed by AAIA, that lets a shop's equipment seamlessly share data about the customer, the vehicle, and the services performed, without having to re-enter information. It is this technology that enables ALLDATA to make available targeted information, such as parts and labor data and electrical diagrams.
"ALLDATA has been an active supporter of the iSHOP standard since its creation in 2000," noted Scott Luckett, VP of Information Technology, AAIA. "Without that standard in place, this demonstration would have been extremely difficult and likely cost-prohibitive. Instead, it was put together inexpensively in just a few months by a small, dedicated team."
As part of the AAPEX conference program, Ben Johnson and Scott Luckett also presented a behind-the-scenes view of AAIA's technology standards and how they have been applied to create value-added end-user products.
ALLDATA is an AutoZone company. With more than 75,000 repair shops as subscribers, ALLDATA is the leading provider of manufacturers' service and repair information, shop management software, and customer relations tools for the automotive repair and collision industries.
Non-OEM parts again dominated much of the agenda at the Collision Industry Conference (CIC), held in Las Vegas in November in conjunction with the SEMA show. The day-long meeting included presentations by Ford Motor Company, the Certified Automotive Parts Association (CAPA), and NSF International, the organization that launched another certification program for non-OEM parts earlier this year.
Ford announced at the meeting that it had followed up its simulated crash testing of some non-certified non-OEM bumper parts last summer with some actual low-speed crash testing of the parts (sold as replacements for the 2005-09 Mustang) in October. The effect of the use of non-OEM parts in a subsequent crash was clear, Paul Massie, Powertrain and Collision Product Marketing Manager for Ford, said.
“It will change the discussion from it ‘might’ change the airbag deployment to it ‘will’ change the airbag deployment,” Massie said.
He showed video of the testing, which found that a Mustang with the non-OEM reinforcement beam, energy absorber and isolator sustained $2,982 in damage in a 5-mph crash as opposed to $1,224 in damage to the same vehicle when equipped with Ford service parts. Massie said there was only about $400 difference in the estimated repair costs in an 8-mph crash, unless the reduced energy absorption of the non-OEM parts resulted in airbag deployment. Ford engineer Dave Bauch said such a deployment is more likely with the changed “crash pulse” that the testing showed is a result from the use of the non-OEM parts.
Also at CIC, CAPA announced its new standard and certification for non-OEM bumper-related parts, saying that as it developed the new standard, it found “very few bumper parts that actually matched the car company brand parts in terms of performance, materials and durability."
Jack Gillis of CAPA said that in order to confirm that its new standard accurately identifies parts that match OEM, CAPA worked with the Insurance Institute for Highway Safety (IIHS) to crash test some non-OEM bumper parts. IIHS tested some bumper reinforcement beams that met CAPA's certification standards and some that did not.
A non-OEM beam for the 2009 Toyota Camry that wouldn't have met CAPA's new standard didn't buckle similarly to the OEM version in a low-speed crash. One for the 2005 Ford F-150 actually resulted in lower estimated repair costs than the OEM version, but only because the fog lamp recesses were different than the OEM; the difference actually protected the fog lamps better, but still would prevent the part from being certified as matching the OEM.
But a non-OEM bumper reinforcement beam designed for the 2008 Dodge Ram pick-up and that does meet CAPA's new standard was also crash tested; the resulting estimated damage costs to the vehicle were virtually identical to the damage costs sustained when the OEM version was crash-tested at low and high speeds.
Also at CIC, Bob Frayer of NSF International spoke about his company’s non-OEM parts certification program launched in February of this year. He said about 100 parts have been certified through the program to date, with 100 more expected to be certified by the end of this year. He said he expects that number to be close to 2,000 by the end of 2011.
Like CAPA, NSF certification requires the manufacturer to meet quality control requirements, and that parts undergo testing to determine they match OEM in terms of content, fit and function. But unlike CAPA, NSF does not require that its labs conduct the actual testing of the parts; NSF merely audits that the parts manufacturer has had testing done by a qualified facility.
“The manufacturers control testing,” Frayer said. “We can do the testing, but we only require the testing be done at an ISO 17025 accredited facility. I worked very closely with the OEMs in a previous life, and this is the same criteria they held us to in our testing.”
FinishMaster, Inc. has announced that its Board of Directors has approved an agreement for the company to be acquired by a subsidiary of Uni-Select, Inc. a leader in the distribution of automotive replacement parts, equipment, tools, and accessories, with North American revenues in excess of $1.3 billion.
The purchase price is based on an enterprise value of approximately $217 million, less approximately $45 million of net debt and certain transaction costs. This acquisition will be structured as a merger in which the shareholders of FinishMaster will receive $21 in cash, without interest, per share, representing a premium of approximately 32 percent to the 30-day trailing average share price of FinishMaster.
“We are delighted to be partnered with one of the leading North American automotive replacement parts distributors. By bringing together two companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier “one-stop shop” for body shops in North America. Combining the industry expertise of our two management teams will allow us to further penetrate the market and expand our customer base creating opportunities for FinishMaster associates as well as our suppliers,” said J.A. Lacy, President and CEO of FinishMaster.
“The acquisition of FinishMaster represents a unique opportunity for Uni-Select to expand its scale in the U.S., enter a complementary market as a leader and enhance its product offering,” said Richard Roy, President and CEO of Uni-Select. “This transaction fits in perfectly with our business plan by significantly expanding our presence in the U.S. Although Uni-Select already distributes paint products, this acquisition will immediately improve the quality and breadth of our offering.”
FinishMaster will remain a distinct entity within Uni-Select serving the collision repair market. Its headquarters will remain in Indianapolis, Indiana.
Founded in 1968, FinishMaster is the largest U.S. independent distributor of automotive paints, coatings and related accessories to the automotive collision repair industry. The Company is headquartered in Indianapolis, Indiana, and operates three major distribution centers and 162 branches in 29 of the 50 largest metropolitan areas in the country.
Founded in 1968, Uni-Select(TM) is a Canadian leader in the distribution of automotive replacement parts, equipment, tools, and accessories. Uni-Select USA, Inc., a subsidiary of the Company, provides services to customers in the United States, where it is the sixth largest distributor. The Uni-Select Network(TM) includes over 2,500 independent jobbers and services 3,500 points of sale in North America. Uni-Select is headquartered in Montreal, Canada.
This is the second year Fix Auto Collision Centers of Oregon have participated in NABC??s national vehicle donation program, Recycled Rides. Already supporters of Doernbecher Children’s Hospital, Alex Smith, a patient at Doernbecher, was an easy choice for this year’s donation.
Alex Smith is a nineteen month old little boy, who was diagnosed with infant leukemia in May, 2010. After undergoing intensive chemotherapy treatment, a bone marrow transplant and many months at Doernbecher Children’s Hospital, Alex was recently discharged but due to complications continues to split time between the hospital and his home in Vancouver, WA. Even when out of the hospital, Alex makes multiple trips a week to the pediatric oncology clinic to get treatment. It is essential to Alex’s care and to his family’s well-being and financial stability that Alex has reliable transportation.
As a Recycled Rides recipient, the Smith family will receive a refurbished car as well as a gas card and other gifts, compliments of a long list of program sponsors from within the auto industry.
Recycled Rides is a community awareness project in which participating auto collision repair shops donate refurbished vehicles to families in need throughout the United States. The Recycled Rides program is quickly growing. In 2006, only 25 shops participated. This year there will be over 150 vehicle donations.
Through the national vehicle donation program, the participating body shop teams up with a local insurance company which donates the car to be repaired. This year Esurance provided the vehicle and Dick Hanna Dealerships and LKQ generously donated parts.
Fix Auto Portland owner, JR Carlson said his employees also played a key role in getting the car in top shape for this family. He even had employees volunteer to come in on their day off to work on it.
“It’s easy as a business owner to get wrapped up in our day-to-day struggles - business to the door, a difficult repair - but it’s programs like Recycled Rides, and families like the Smiths that really put everything in perspective,” Carlson added. ”We are thankful we were able to participate in Recycled Rides. By giving away a car, we are able to make a significant difference in this family’s life.”
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