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Letter to the Editor
This article originally appeared in the January 2011 Issue of INSIGHT
©2011 Collision Repair Industry INSIGHT All Rights Reserved
EPA Imposes New Spray Coating Training Requirements
Fix Auto USA Launches Revised Business Model; Adds 37 Franchise Locations
Marco’s Collision Centers Named Verified Quality Facility
Invoice Disclosure Legislation Introduced in New York State
ASA Publishes Updated “Not-Included Operations” Charts
Solera Holdings Acquires Minority Stake in Digidentity BV
PPG Appoints Jain Vice President Strategic Planning and Corporate Development
Federated Auto Parts CEO Rusty Bishop Joins Global Automotive Aftermarket Symposium Board
Gary Ledoux to Write Collision Repair Industry History Book
INDUSTRY UPDATE
The U.S. Environmental Protection Agency (EPA) has made it illegal for uncertified painters to practice their profession without restriction. Collision repair painters not certified under the National Emissions Standards for Hazardous Air Pollutants (NESHAP) regulations are prohibited from spray coating if they have not been trained in newly imposed spray coating requirements.
The prohibition, known as the HAPs 6H rule, makes it unlawful for untrained painters to use certain paint products if the shop owner has claimed “exemption” to the new rule.
According to Title 40 of the Code of Federal Regulations, “The spray application of surface coatings is prohibited by persons who are not certified as having completed the training described in paragraph (f) of Section 63.11173.” The new law provides that training must be established for activities that may reasonably require the use of five-compounds that appear in many paint products. A complete copy of the rule can be found atthe EPA webpage: http://www.epa.gov.
There are numerous safety and health standards related to this new law that mandate training to prevent employee illness as well as environmental pollution. If as an employer you do nothing other than document training, you might be measurably safeguarded. With proof that HAPs 6H training was accomplished, you can better preserve a defensible position in the event you are ever cited for a violation or sued for negligence following an industrial accident or toxic exposure. It is very difficult to prove an individual has been adequately trained, when there is no evidence of required knowledge levels necessary to qualify for a specific job.
Most collision repair shop owners do their best to protect the environment and provide their employees with a safe and sound workplace. Few, if any, would intentionally disregard health or environmental regulations at the cost of the well-being of their workers or community.
In this era of restricted state and federal budgets, the uniform response from government agencies and civil attorneys has been to increase enforcement activities as a method to promote obedience. Not many years ago, emphasis was placed on educational and advisory activities. Now newspapers and late-night TV carry the message of fines, jail sentences and increased employee entitlement. These activities can be expected to become more intense, and while perhaps not an efficient method to achieve worker health or safety, it appears to be the most realistic projection for the start of 2011.
After considering the unpleasant risk-to-reward liability, most rational body shop owners and operators would conclude that money spent on training and certifying their painters will not only result in a safer workplace but shield against personal injury lawsuits, and insure a better night’s sleep.
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Fix Auto USA has announced the addition of 37 franchise locations. The announcement represents a revised business model which will provide owner-operated collision repair facilities a platform to achieve success in today’s changing market. The new model, which was developed and refined over the last 13 years, adds a franchise option to network membership, promoting a concentrated, multi-location collision repair organization committed to providing consistent results and superior customer service. The franchise shops are currently operating in three states: California, Colorado, and Oregon.
“Our insurance customers today require consistency, transparency, efficiency and concentrated scale in the markets we serve,” explained Fix Auto President and COO, Paul Gange. “Our new model delivers on all four requirements with best-in-class collision repair facilities while maintaining the owner’s active, on-site participation.”
Fix Auto USA founder and CEO, Erick Bickett, added, “Our customers are demanding excellence in service and quality and expect consistency across our network. The franchise model demands a level of commitment from our franchisees that will allow us to deliver on these expectations at every location. We already have some of the ‘best of the best.’ By aligning each of these great operators and producing consistency throughout our operating system, our enterprise is capable of delivering a level of performance which will return meaningful results for our insurance customers and a superior experience for the vehicle owners"
Fix Auto is an international network of performance-based collision repair facilities. Based in Anaheim Hills, California. Fix Auto USA includes over 171 network locations throughout the United States, including 37 franchised locations, making it one of North America’s largest networks of independent collision repair centers.
Marco’s Collision Centers, a Southern California based independently-owned collision repair group, has been designated as the nation’s first Verified Quality (VQ) collision repair organization by VeriFacts Automotive. The accomplishment, coupled with Marco’s market-leading data results, as defined by CynCast’s Single Performance Value (SPV™) rating system, illustrates the multi-shop operator’s (MSO’s) ability to exceed the industry’s most exacting key performance standards.
“Our investments in VeriFacts and CynCast allow us to continually enhance and refine performance, consistently better serving our consumers and valued strategic partners,” stated Marco’s Collision Centers CEO Lillian Maimone.
VeriFacts VQ provides concrete verification of collision repair technical capabilities and commitment to safe repairs, with structural safety critically more important than ever before with today’s rapidly evolving vehicle composition. VeriFacts professionals rate and document equipment, materials, information, procedures, and best practices, with thoroughness and expertise, during random onsite inspections.
“We truly believe earned VQ distinction by Marco’s Collision Centers reflects the organization’s well-known, differentiated commitment to highest levels of advanced collision repair safety, quality, and customer satisfaction,” commented VeriFacts' founder and CEO Farzam Afshar. “Very few collision repair businesses possess the discipline and confidence to subject themselves to this level of independent, continuous quality measurement.”
Additionally, Marco’s performance results are verified by consistent top-tier scoring by CynCast’s SPV measurement rating. SPV defines and blends a comprehensive key performance indicators (KPI) set to calculate ratings that creates significant advantages to repairers, their customers and strategic partners. SPV metrics relative to cycle, CSI, estimating quality, I-CAR achievement, and management systems drive the value-added service.
Stated CynCast President and COO Doug Kelly, “To their credit, Marco's Collision Centers is clearly a strong leader in the successful early adoption of key independent, third-party technologies and services. They offer customers and partners high levels of consistency-based value, and distinct levels of trust in partnering.”
Maimone added, “VQ and SPV ratings results are indicative of Marco’s Collision Centers’ commitment to our people, process, and equipment, and serve to further acknowledge our standing as a value-added service provider. These industry-leading, third-party proven results clearly demonstrate that when Marco’s repairs any type of vehicle, the repairs are done exactly right - the first time.”
With customer-convenient locations in Arcadia, North Hollywood, Monterey Park, Pasadena, South Pasadena, San Gabriel, Universal City, and North Hollywood, Marco’s Collision Centers combines expert processes, committed people, leading partners, state-of-the-art equipment, and advanced applications to achieve the market’s highest quality and customer satisfaction-driven results.
VeriFacts Automotive was founded in 2002 to address the implementation of technical information within the collision repair industry. VeriFacts is recognized as the industry's only independent onsite quality verification service and in-shop technician assessment pro-vider. VeriFacts is committed to identifying and exposing excellence in collision repair.
CynCast Corporation integrates information for various sectors in the automotive claims industry by leveraging its CIECA-compliant technology products to further maximize its customers’ current operations.
New York state Senator Toby Ann Stavisky, D-16, has introduced New York Senate Bill 1218 relating to vehicle repair shop guarantees. The bill requires that motor vehicle repair shops provide certain information regarding invoices and work guarantees.
The legislation stipulates:
- The invoice provided by the motor vehicle repair shop in accordance with Subdivision 1 of the bill shall conspicuously set forth the terms and time limit of any guarantee for the repair work performed. Where no guarantee is given, the nvoice shall so state.
- The invoice shall further contain a statement to the effect that complaints regarding the functional adequacy of the repair work performed may be directed to the department, but in no event later than 90 days or 3,000 miles of the repair, whichever comes first.
- The provisions of this subdivision shall not be construed to limit or abridge any statutory or other right or remedy of a consumer at law or in equity.
The bill, if passed into law, will take effect in January 2012.
The full text of NY S.B. 1218 can be found at the Automotive Service Association (ASA)’s legislative website: www.TakingTheHill.com.
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.
The Automotive Service Association (ASA) has updated its “Not-Included Operations” charts, two publications designed to ensure collision repairers consider all of the possible operations when they write an estimate. Two titles are available, “Reference Chart of Not-Included Operations When Installing New Replacement Parts,” and “Reference Chart of Not-Included Operations When Installing Recyclable Parts.”
The guides serve as a quick summary of general not-included operations, and should be used in addition to procedure pages supplied by individual information providers.
“ASA continues to stress the importance of getting paid for the steps performed and the materials used in the repair process,” said Denise Caspersen, ASA Collision Division manager. “The updated ASA ‘Not-Included Charts’ are an easy-to-use guide of the not-included operations from the three major estimating systems. These have been reviewed by the ASA Estimating subcommittee and, if put to use, will add to the bottom line by documenting what operations are performed yet not included in the estimating process.”
The publications are available individually or as a set in a PDF format for ASA member-shops. To order or obtain pricing information, members may access the ASA online store at www.ASAstore.com, or call the membership department at (800) 272-7467, ext. 295. Nonmembers may purchase hard copies of the documents by contacting ASA’s membership department.
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.
Solera Holdings, Inc., a global provider of software and services to the automobile insurance claims processing industry, has purchased a minority equity stake in Digidentity B.V., a Dutch company that is a leading provider of next-generation E-identification certificates for authentication of online identities.
The E-identification certificate is a critical component of the back-office operations of ABZ, Solera's Dutch operating subsidiary, and is utilized by all ABZ clients to access ABZ's products and services. The implementation of Digidentity's E-certificate will strengthen ABZ's core offerings and enhance customer security in the Netherlands.
"This transaction represents our first investment from HEMI's $150 million M&A initiative of which $10 million has been initially targeted for investment in disruptive and innovative technologies. Our investment in Digidentity is designed to accelerate our ability to deliver further value to our core customers not only within the HEMI region but across Solera's portfolio of companies as increased security within the claims process emerges alongside more robust applications. In addition to strengthening our core offerings in the Netherlands, Digidentity's scalable and cloud computing based products can enrich our Market Scan and AUTOonline offerings," said Tony Aquila, Solera's Founder, Chairman and Chief Executive Officer.
Solera is a leading global provider of software and services to the automobile insurance claims processing industry. Solera is active in over 50 countries across six continents. The Solera companies include Audatex in the United States, Canada, and in more than 45 additional countries, Informex in Belgium, Sidexa in France, ABZ and Market Scan in the Netherlands, HPI in the United Kingdom,
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PPG Industries has announced the appointment of Anup Jain as Vice President, Strategic Planning and Corporate Development. Jain will join the company’s operating committee and report directly to Chairman and CEO Charles E. Bunch at PPG’s global headquarters in downtown Pittsburgh.
“Anup brings a broad range of experience to this important strategic role, which will be instrumental to PPG as we continue to grow and expand our businesses globally,” Bunch said. “It’s my pleasure to welcome Anup to PPG and my leadership team.”
Jain previously held the positions of Vice President and General Manager, Global Test and Measurement, and Director of Strategy, for Honeywell Corp. From 2002 to 2004, he was an operating principal with Three Cities Research, a private equity firm, serving on its board of directors and working with top management at portfolio companies to drive turnaround and growth.
Jain worked from 1997 to 2002 with McKinsey and Co., where he developed expertise in pricing and product strategies. He began his career with IBM Corporation as a systems sales engineer, and later became Manager, Strategy/ Business Development, Retail Solutions.
Jain assumes leadership for PPG’s strategic planning from Aziz Giga, PPG Vice President, Strategic Planning, and Treasurer, who will continue to serve as Vice President and Treasurer, and as a member of PPG’s operating committee.
“Aziz has done an extraordinary job leading the treasury and strategic planning functions for PPG since 2007, during one of the most challenging business and financial periods in the company’s history,” Bunch said. “His keen intellect and broad range of knowledge and experience contribute to PPG’s success well beyond his functional responsibilities.”
PPG Industries’ vision is to continue to be an international 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.
Rusty Bishop, CEO of Federated Auto Parts, has accepted a position on the Global Automotive Aftermarket Symposium (GAAS) Board of Directors. With oversight of the business end of the organization, GAAS's Board of Directors ensures continuity and financial security of the annual industry education event. In addition, the GAAS "Program Committee" develops the annual agenda for the event, the "Attendance Promotion Committee" looks for ways to promote attendance, and the "Scholarship Committee" oversees the annual selection of scholarship recipients.
The newest member of the GAAS Board, Bishop began his career in the automotive aftermarket 40 years ago when he joined Fisher Auto Parts, where he held a number of positions in warehouse and jobber store management and also served as a director of the company. In 1985, Bishop co-founded Federated Auto Parts Distributors, a program marketing group for major warehouse distributors. Through the years, Bishop's leadership has allowed Staunton, Virginia-based Federated to grow to become one of the leading program groups in the industry.
"Rusty is one of the outstanding leaders of our industry and has always been willing to do what ever he can to help this industry, as a volunteer leader," said Dave Caracci, GAAS chairman. "We are thrilled to have him join our board and provide his expertise from both the WD and program distribution group perspective."
Bishop’s long history of service to the automotive aftermarket includes: the board of directors of ASIA 1991-1993; AWDA membership and marketing committee chairman 1999-2002; AWDA board of governors 2000-2003 and 2005-present. Bishop serves as chairman of the University of the Aftermarket Foundation board of trustees and has also served several years on AWDA’s annual business conference task force.
In 2006, Bishop was named secretary of AWDA. After advancing to the position of vice chairman, he served as chairman of AWDA until November 2009. He currently is a member of the AAIA board of directors. Northwood University presented Bishop with its Annual Automotive Aftermarket Management Educational Award in 2008. He earned AWDA’s “Pursuit of Excellence” Award in 2009 and AAIA’s Aftermarket Advocate Award in 2010.
GAAS 2011will be held May 18-19 in Rosemont, Illinois at the Hyatt Regency O’Hare and will focus on the theme “Aftermarket Fast Forward: What You Need to Know to Stay Ahead.” The annual two-day Global Automotive Aftermarket Symposium brings together industry leaders and experts to examine the issues and trends affecting the worldwide automotive aftermarket and influencing its future. For more information, visit www.globalsymposium.org or phone (301) 654-6664.
Founded in 1996, the Global Automotive Aftermarket Symposium (GAAS) has become the premier industry conference for senior-level aftermarket executives. The net proceeds from the event go toward funding industry scholarships. In 2010, 86 U.S. and 8 Canadian students who plan careers in the automotive aftermarket received GAAS Scholarships to help get their industry careers started. In the fourteen years of the program, more than 1,500 students have received aid totaling more than $1,500,000. Details about the GAAS scholarship program are available at www.automotivescholarships.com.
The GAAS program is a joint professional education effort of the of the Alliance of State Automotive Aftermarket Associations (ASAAA), Automotive Aftermarket Industry Association (AAIA), Automotive Aftermarket Suppliers Association (AASA), Automotive Industries Association (AIA) of Canada, Automotive Parts Remanufacturers Association (APRA), Automotive Service Association (ASA), Automotive Warehouse Distributors Association (AWDA), Motorist Assurance Program (MAP), Motor & Equipment Manufacturers Association (MEMA), Specialty Equipment Market Association (SEMA), Tire Industry Association (TIA) and University of the Aftermarket. R. L. Polk & Co. is the corporate sponsor of the Global Automotive Aftermarket Symposium. For more information, visit www.globalsymposium.org.
Gary Ledoux, known to many in the collision industry as the Assistant National Manager for American Honda’s Wholesale Parts Marketing department has announced that he has begun what is expected to be a two-year personal project, the compilation and writing of the history of the Collision Repair Industry in America.
“This is something that has not been done before,” said Ledoux. “Many people have labored long and hard to make the auto collision repair business the professional and vibrant industry it is today – but few know them. Many milestones were passed, and many innovations made, but few recognized them. With the help of my industry friends and associates, that will soon be changed.”
Ledoux is seeking historical information from any and all sectors of the Collision Repair Industry, including paint and equipment suppliers, people with knowledge of early repair technology, early estimating technology, insurance DRP development, industry media development – any facet of the Collision Repair Industry. Also expected to be covered are other related areas such as the history of auto safety and collision avoidance systems and devices, as well as civil engineering and traffic control.
“I am also looking for the oldest continuously-operated body shop in America” noted Ledoux. “Whoever that is certainly deserves a special profile in this book.”
To facilitate communication and the collection of data, Ledoux has developed a dedicated web site: www.collisionrepairhistory.com, and a dedicated e-mail address: collisionrepairhistory@yahoo.com.
Ledoux writes as a hobby. He has produced four books about American history, and for the past seven years has produced a column called Yesterwest seen in two different history magazines. He is a former contributing editor for Power Equipment Trade magazine and Motorcycle Industry magazine.
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