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Letter to the Editor
This article originally appeared in the March 2011 Issue of INSIGHT
©2011 Collision Repair Industry INSIGHT All Rights Reserved
CARSTAR Names David Byers Chief Executive Officer
3M Pledges $2.5 Million to Support Relief Efforts in Japan
Solera Reorganizes Its Central and Eastern Europe Regions
LKQ Corporation Announces New $1 Billion Credit Facility
Miller Auto Parts & Supply Named PPG 2010 Platinum Distributor of the Year
Copart Offers Racing Ultimate VIP Experience Prize on Facebook Page
I-CAR Offers Equivalency Tests and Additional Online Tools
AASP-MN Awards $20,000 to Automotive Students
CCAR’s S/P2 Surpasses 7 Million Online Tests
NABC Names Charles Dillard 2011 Pride Chairperson
INDUSTRY UPDATE
David F. Byers has been named Chief Executive Officer of CARSTAR Auto Body Repair Experts, bringing extensive franchise operations, finance and marketing expertise to North America’s largest collision repair company.
Effective immediately, Byers assumes the CEO role from Dick Cross, who is transitioning to a role on the CARSTAR board of directors. Byers will spend 60 days working closely with Cross and meeting the members of the CARSTAR family. Warren D. Feldberg, Chairman of Champlain Capital Management, which owns CARSTAR, will assume the role of non-executive Chairman of the Board. Byers will report to Feldberg.
Byers joins CARSTAR with significant experience in multi-unit, retail franchise businesses. His executive background includes his role as Chief Operating Officer for H&R Block in Kansas City, where he worked from 1999 to 2007. In that role, he oversaw the company’s retail tax network, including its 13,000 retail locations and 100,000 employees. Byers also served as Chief Executive Officer for The Mutual Fund Store, based in Overland Park, KS, from 2007 to 2008. Most recently, Byers has been Chief Commercial Officer for Sirva, a Chicago-based global supplier of relocation and moving services operating under the Allied and North American Van Lines brands.
“CARSTAR is well positioned for additional growth, and I hope to bring my years of retail, multi-unit franchise experience to bear in helping to significantly accelerate that growth,” said Byers.
CARSTAR Auto Body Repair Experts is the largest group of branded collision repair facilities in North America with over 380 locally owned and operated locations in thirty states and ten Canadian provinces.
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3M has pledged $2.5 million to support relief efforts in Japan following the devastating March 11 earthquake and tsunami. Support includes a $500,000 employee and retiree matching grant and up to $2 million in product donations as needs are identified. Grants will be made to the American Red Cross and U.S. Fund for UNICEF. Product donations will likely include respiratory protection products, medical and cleaning supplies.
“Our hearts go out to the people of Japan who have been impacted by this devastating earthquake and tsunami,” said Robin Torgerson, vice president, 3M Community Affairs and the 3M Foundation. “3M has had a presence in Japan for more than 50 years and we are committed to supporting relief efforts.”
With $27 billion in sales, 3M employs about 80,000 people worldwide and has operations in more than 65 countries.
3M Community Giving consists of product donations and cash grants by 3M and the 3M Foundation and bolstered by employee and retiree volunteerism. In 2010, 3M and the 3M Foundation donated nearly $59 million in cash and products to U.S. educational and charitable institutions.
Solera Holdings, Inc., a provider of software and services to the automobile insurance claims processing industry, has announced that its Central and Eastern Europe Region (CEE Region), one of Solera's major revenue growth drivers, has transitioned from an emerging to an evolving market.
"Over the last few years, we have invested heavily in the 'localization' of our products and services and the development of key client relationships across the CEE Region, which spans 19 countries," said Tony Aquila, founder, chairman and CEO of Solera. "During its emerging market phase, the CEE regional leadership team has done a great job with key customers on the implementation of our core platform. As the CEE Region continues to evolve, it is now time to operationalize CEE to better deploy our additional high value products and services and better support the evolving market needs of our customers. In addition and as we raise the bar higher in operationalizing our business in the CEE Region, we will be redeploying proven personnel and extending their scope of responsibility."
David Sheperd has been selected as interim Managing Director for the CEE Region to lead this transition. Prior to his appointment, Sheperd was the Global Account Manager for Allianz, one of Solera's largest global accounts.
Guido Kutschera has been selected as the new Global Account Manager for Allianz. Kutschera joined Audatex Germany, Solera's operating company in Germany, last year as its Head of Sales. Allianz has its global headquarters in Munich.
In addition, proven operators qualified in the Solera Way will assume expanded geographic responsibility within the Region. Mariusz Klimczak, currently the Managing Director for Poland, will also lead the Ukraine and Belarus. He has led Poland for the last 14 years and, under his leadership, Poland has been the largest revenue contributor to the Region. Georghe Axinte, currently the Managing Director for Romania, will also lead Turkey. He has been with Solera for five years and has driven the accelerated growth of Romania during this period of time.
Recently, Alexandre Alexandrov, former Business Development Manager for the CEE Region, was selected as Managing Director for Russia. He has been with Solera for the past five years. In addition, Ferdinand Moers, a Managing Director of AUTOonline Germany, is working across the CEE Region to enhance and expand the delivery of AUTO-online products and services to customers.
"These individuals are great examples of our increased focus to grow our future leaders from within the organization. It is no secret we have a very high operating standard in Solera and all of our leaders must demonstrate they are qualified in the Solera Way. We believe that these moves demonstrate some early dividends coming from our investment in growing qualified people that have the market and cultural awareness to manage activities across geographic borders," said Aquila.
Richard Nathschlaeger, the prior Regional Managing Director for the CEE Region, will be redeployed to create a CEE Advisory Board as a non-executive Vice-Chairman, reporting directly to Tony Aquila, Solera's founder, Chairman, and CEO. This board will focus on more strategic matters, including M&A opportunities.
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, Hollander serving the North American recycling market, AUTOonline providing salvage disposition in a number of European and Latin American countries, and IMS providing medical review services.
LKQ Corporation has entered into a definitive credit agreement with several lenders to borrow up to $1.0 Billion. The new facility replaces the Company's $750 million facility that would have expired in October 2013.
"The new revolving credit facility and term loan give LKQ additional flexibility to execute our growth plans at attractive rates," commented Joseph Holsten, Vice Chairman and Co-Chief Executive Officer of LKQ Corporation.
The key features of the secured credit facility include:
- $750 million revolving credit facility with a $300 million multicurrency sublimit
- $250 million term loan facility
- Initial pricing on the United States dollar portions of the facility at Libor plus 175 basis points (a 50 basis point reduction relative to the company's prior facility) with an undrawn fee of 35 basis points
- Annual amortization payments on the term loan of 5 percent in years 1 and 2, 10 percent in years 3 and 4, and 15 percent in year 5 with a balloon payment at maturity
- $400 million accordion feature
- 5 year term expiring March 25, 2016.
John Quinn, Executive Vice President and Chief Financial Officer commented: "In addition to the increased borrowing capacity, we expect the new facility to bring a number of benefits including lower borrowing costs, reduced amortization payouts, more efficient cash management and extending our only major debt maturity to 2016."
The company indicated the initial use of proceeds will be repayment of the prior credit facility and for general corporate purposes.
The company confirmed that previously issued guidance released on February 24, 2011 did not include the impact of the refinancing. The company anticipates a first quarter 2011 write-off of debt issuance costs of approximately $6 million related to the retired credit facility.
JP Morgan Chase Bank, N.A. acted as Administrative Agent, Bank of America, N.A as Syndication Agent, and RBS Citizens, N.A. and Wells Fargo Bank, N.A. as Co-Documentation Agents.
J.P. Morgan Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., RBS Citizens, N.A. and Wells Fargo Securities, LLC acted as Joint Bookrunners and Joint Lead Arrangers.
LKQ Corporation is the largest nationwide provider of aftermarket and recycled collision replacement parts, and refurbished collision replacement products such as wheels, bumper covers and lights, and a leading provider of mechanical replacement parts used to repair light vehicles. LKQ operates more than 325 facilities, offering its customers a broad range of replacement systems, components, and parts to repair automobiles and light, medium and heavy-duty trucks.
PPG has named Miller Auto Parts & Supply Company, Inc. as its 2010 Platinum Distributor of the Year. The award was announced at PPG’s annual Platinum Distributor Conference in Orlando, Florida in February. Charlie Lightner, President of the Huntingdon, Pennsylvania-based distributor, accepted the award on behalf of the company.
“I am extremely elated and very proud of our entire organization and thank PPG for this award,” said Lightner. “I attribute our success to our two general managers, Jamey Robertson and Jim McGonigle, and our 250 employees. They’re very knowledgeable and we get tremendous support from everyone at PPG. This is wonderful recognition for everyone’s efforts.”
Bob Wenzinger, Director of the PPG Platinum Distributor program, presented the award to Lightner.
“This is a much deserved honor for Charlie Lightner and the hard-working team at Miller Auto Parts & Supply,” said Wenzinger. “They do an exceptional job for their customers, who benefit from the company’s technical expertise and outstanding knowledge of our products. The phenomenal growth they’ve been able to achieve reflects their commitment to being the best at what they do.”
Lightner joined Miller Auto Parts & Supply Company as a buyer in 1974. At the time, the company had four stores. Today it has 29 locations in Pennsylvania, Maryland, and West Virginia. It became a PPG Platinum Distributor in 2006, shortly after electing to carry PPG paint and coating products exclusively. The company also provides parts and supplies for the mechanical side of the automotive aftermarket industry. Currently, it is heavily involved in assisting its PPG Refinish collision shop customers in the conversion to PPG waterborne products.
The PPG Platinum Distributor program began in 1995 as a loyalty and support initiative for PPG single-line distributors with the ultimate goal of providing exceptional service and benefits for PPG Refinish customers. The program delivers competitive advantages to its participants by aligning the technology, training, and customer support of PPG with the entrepreneurship, customer awareness, local market knowledge, and service capability of the independent distributor.
Between March 31 and November 14, 2011, fans who “like” the Copart Racing Facebook page can enter to win the “Copart Racing Ultimate VIP Experience.” This grand prize sweepstakes offers an all expenses paid trip for two to the Las Vegas 2012 SummitRacing.com National Hot Rod Association (NHRA) Nationals, including first-class airfare and private hotel transportation to and from the Las Vegas airport.
The grand prize winner will also get the chance to test their driving skills in a race against Copart Top Fuel Driver Brandon Bernstein, or six-time NHRA champion and the “King of Speed” Kenny Bernstein, in the official vehicle of the NHRA.
The winning contestant will also experience:
- A 5-night stay at a luxurious resort and casino on the Vegas strip and receive $3,500 in spending cash
- Two free tickets to all three days of the Las Vegas 2012 SummitRacing.com NHRA Nationals, with limousine transportation to and from the race event
- An exclusive behind-the-scenes tour of the track with the NHRA
- VIP access to the Copart Hospitality area and passes to the Pit, including an autograph and photo session with Brandon and Kenny Bernstein
- Seeing the winner’s name on the side of the Copart Top Fuel Dragster.
“The Kenny Bernstein Racing brand is among the preeminent brands in motorsports and a tremendous friend and partner to Copart. Through this initiative, we are leveraging our relationship with the Bernsteins to elevate the profile of the Copart brand while also rewarding one of our Facebook fans with an incredible, once-in-a-lifetime opportunity,” said Jay Adair, CEO, Copart, Inc. “Engaging in this social media promotion will also allow Copart to heighten its digital presence and continue to grow and create new relationships and opportunities with car and racing enthusiasts.”
Throughout the racing season, all sweepstakes participants will receive multiple chances to win additional prizes, including autographed merchandise, die cast collectibles, plasma TVs, and more. Fans can also enter to win by visiting Copart’s midway display at select NHRA races throughout the season.
To be eligible to win the Copart Racing Ultimate VIP Experience, contenstants simply must like the Copart Racing Facebook page. Registration forms areavailable on a separate Facebook tab.
Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles. The company currently operates 152 facilities in the United States, Canada, and the United Kingdom.
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In July 2010, the Inter-Industry Conference on Auto Collision Repair (I-CAR) responded to the industry’s direction by introducing a role-based training model for the Collision Repair Inter-industry. The service offerings and courses recently introduced by I-CAR include Equivalency Testing and additional online training courses which satisfy I-CAR® ProLevel™ 1 requirements, enhanced customer support tools, and new user-friendly capabilities on the I-CAR website.
“Each of these offerings will enhance the value of the I-CAR Professional Development Pro-gram™ and make ‘training for your role’ more convenient and effective. These offerings increase I-CAR’s ability to provide flexible training that is clearly aligned with achieving an individual’s or business’s industry-recognized designation,” said John Van Alstyne, I-CAR President and CEO.
I-CAR Equivalency Testing has been designed for collision repair professionals, and provides an option to demonstrate mastery of content learned through previous experience or on-the-job training. I-CAR Equivalency Tests will address I CAR ProLevel 1 knowledge areas as defined for each role within the Program and a passing score will fulfill those tested knowledge areas toward the I-CAR Platinum Individual™ designation.
In addition, collision repair professionals now have access to more online training options that meet I CAR ProLevel 1 requirements including the following three courses - Inspecting Repairs for Quality Control (QUA01e), Vehicle Identification, Estimating Systems, and Terminology (DAM01e), and Aluminum Panels and Structures Damage Analysis (DAM05e). These courses contain the same content as I-CAR’s classroom instructor-led courses, and offer a convenient online training option, available 24/7, from an individual’s home or business.
I-CAR has made further improvements to its website, enabling customers to easily purchase online and instructor-led (live) training on the same website in one simple transaction. I-CAR has also enhanced its Training Planner tool, making role-relevant training management simple and concise. This management tool has been designed to provide access to training records and reports based on individual or company progress toward the I-CAR Platinum Individual or I-CAR Gold Class Professionals designation. A User Guide is available on I-CAR’s website on the “Applications and Documents” section.
Van Alstyne added, “I-CAR will continue to align its training curriculum and customer service offerings with its commitment to delivering the most current technical training, providing individuals and businesses more opportunities to achieve complete and safe repairs.” More information on each of these service offerings and courses is available online at www.i-car.com.
The Alliance of Automotive Service Providers, Minnesota (AASP-MN) will distribute a record-breaking $20,000 in scholarship awards to students enrolled in post-secondary mechanical and collision repair programs in the state. The AASP-MN Scholarship Committee selected twenty students who will each receive a $1,000 scholarship award to support continued studies in the automotive industry:
Forty-two students from sixteen schools applied for the awards. Scholarships were available to students entering the 2nd year of an NATEF-certified automotive program. Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education, career goals, financial need, and written recommendations.
The scholarship awards are the centerpiece of AASP-MN’s Automotive Education Fund, which was established to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry. To date, over $112,000 has been invested in automotive students and programs throughout the state.
The Coordinating Committee For Automotive Repair (CCAR®) has administered more than 7 million online tests in its S/P2® (Safety and Pollution Prevention) e-learning program.
“All of us at CCAR are extremely proud to see how the acceptance and usage of S/P2 has zoomed to new heights over the years,” said CCAR’s Board Chairman, Charles E. Ayers. “...CCAR’s goal is that the auto repair industry will continue to reap the benefits of this world-class information and resource.”
S/P2 provides effective, affordable training on environmental and safety concerns to every employee and student in the automotive repair industry, and is designed to help reduce injury, illness, and environmental impact.
The National Auto Body Council (NABC) has announced the appointment of its 2011 Pride chairman, Charles Dillard, Director of Finance at Precision Body and Paint, Beaverton, Oregon. In his new capacity, Dillard will work with transitional support from 2010 Pride Co-Chair Janet Chaney. Bob Keith, last year’s other co-chair, will be stepping down from his Pride-related duties.
Dillard, through his work at Precision Body and Paint, has an established history of involvement with NABC, including participation in the Recycled RidesTM initiative which donates refurbished vehicles to working families that need viable transportation. In this way, assuming the reins of Pride can be seen as a natural progression for him.
“The Pride Award is really the essence of what NABC is all about,” said Dillard. “There are people in this industry that do incredible things everyday—not for the glory, but because it is the right thing to do. We need to acknowledge these phenomenal people with whom we work, and Pride has proven an effective vehicle for doing so. I look forward to the challenge of chairing committee for 2011.”
As the year unfolds, the Pride Committee is poised to evolve in exciting new directions, while staying true to the mission that has defined it from the start. “Charles is bringing fresh ideas and a new dimension to Pride, the cornerstone of the National Auto Body Council,” noted Chaney. “By being an example as a shop executive and active member of NABC and SCRS, he’s in a good position to effectively encourage and promote the vision of the Pride and all for which it stands. It will be a joy to witness, and I’ll do what it takes to help him hit the ground running.”
NABC saluted the hard work co-chairs Chaney and Keith brought to the table during 2010.
“Participating on the Pride committee last year as co-chair was a tremendous experience,” said Keith. “I am pleased that Charles Dillard has volunteered to take this core and very essential NABC program to the next level. It will be exciting to see its continuing development.”
The Pride Awards embody the NABC spirit and mission to improve the image of the collision repair industry by allowing NABC to recognize those individuals or groups from the industry that selflessly contribute to the world around them. The award has been given for bravery, philanthropy, charity, and selfless acts of kindness. It transcends the rigors of daily business and reaches out to uncover those not seeking recognition for themselves.
NABC is a non-profit organization dedicated to enhancing the image of the collision industry. The group’s ongoing and continued success is a direct result of the efforts and support of generous sponsoring companies and membership.
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