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Letter to the Editor
This article originally appeared in the April 2011 Issue of INSIGHT
©2011 Collision Repair Industry INSIGHT All Rights Reserved
Copart Launches iPhone App for Selling Vehicles
Travelers Hosts First Graduation for EDGE Scholars
Ford Motor Company Posts Best 1Q Profit Since 1998
Alliant Offers GreenYield Insurance Discount for Mitchell RepairCenter
Service King Collision Repair Centers Acquires Alamo Body and Paint 8-Facility Group
Painters Supply & Equipment Company to Sponsor I-CAR Forum Featuring Chuck Sulkala
Copart CEO Receives Civilian Awards for Supporting U.S. Military Troops
OEConnection and Multi Service Partner for Automotive Dealer Solution
NABC Recycled Rides Poised to Help Even More in 2011
INDUSTRY UPDATE
Copart, Inc., the online vehicle auction company, has launched a new iPhone app, Copart Sell My Car, in support of the company's CopartDirect model, which allows on-the-go users to sell their car and receive payment in as little as one business day.
CopartDirect is a division of Copart dedicated to offering a faster and easier way to sell vehicles. CopartDirect provides consumers with an offer to purchase their vehicle when they enter their information into the iPhone app. For the first time, consumers can take this state-of-the-art technology and with them anywhere.
The Copart Sell My Car app allows consumers to sell their vehicle using three simple steps:
- Using an iPhone or other compatible device, users submit contact and vehicle information and can also upload vehicle photos.
- The Copart team will respond with any follow up questions, or an immediate offer to purchase the vehicle.
- Users can simply drop off their vehicle at any one of Copart's 137 locations nationwide, or have Copart pick up the vehicle, typically within one business day, and receive payment on the spot.
"Our customers have told us they want a simple, hassle-free way to sell their cars," said Copart, Inc. CEO Jay Adair. "The Copart Sell My Car app enhances the customer experience by allowing them to request a quick and fair offer for their vehicle at any time and any place."
Consumers can also choose to sell their vehicle using Copart's auction model, where Copart's registered buyers from around the world are ready to bid on the consumers' vehicle.
The Copart Sell My Car app is compatible with iPhone, iPod touch, and iPad. The app is available for free download with immediate service anywhere.
Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles. Copart remarkets the vehicles through Internet sales utilizing its patented VB2 technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships, the general public, and others. The company currently operates 152 facilities in the United States, Canada and the United Kingdom.
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The Travelers Companies, Inc. recently hosted the first joint graduation for its signature education program, Travelers EDGE (Empowering Dreams for Graduation and Employment), in partnership with the University of Connecticut, Central Connecticut State University, and Capital Community College. The program created a pipeline for underrepresented students to develop the skills necessary for success in college and ultimately the workplace. Travelers recruited, mentored, and provided financial assistance for the 25 students who graduated.
“My experience with Travelers EDGE was a once-in-a-lifetime opportunity,” said Dunnia Ulloa, a Travelers EDGE scholar who is now employed as a member of the Travelers Middle Market finance team. “Travelers empowered me to get my degree and instilled the confidence I needed to seek out a career in the insurance and financial services industry.”
Through Travelers EDGE, the graduates participated in a wide variety of activities, including resume critiques, mock interviews, and improving their personal finance, project management and computer skills. Additionally, Travelers employees took part in the development of the students. Since the program’s 2007 launch, approximately 200 employees have supported scholars as mentors and managers.
“Travelers is committed to removing barriers to education and career success faced by underrepresented students,” said Marlene Ibsen, Vice President of Community Relations. “Through our relationships with local colleges and universities, we are able to provide hands-on work experience in our industry as well as financial assistance to students who, when given the opportunity, are able to excel.”
At the event, Ibsen noted the graduation and success rates of students from three states who have participated in the Travelers EDGE program:
- 100 percent of Travelers EDGE community college scholars have earned associate’s degrees within three years. Nationally, only 31 percent of students from similar populations go on to complete either an associate’s or a bachelor's degree in six years.
- 100 percent of Travelers EDGE community college graduates who have obtained associate’s degrees have enrolled in bachelor’s degree programs, compared to only 26 percent of those who initially sought an associate's degree nationally.
- 71 percent of graduating Travelers interns have become permanent hires.
- 100 percent of graduating scholars receiving Travelers employment offers have accepted the offers.
Joelle Hayes, Vice President of Diversity & Inclusion, noted, “Employee volunteerism, embracing diversity, and building a pipeline for recruitment are key components of our core values at Travelers. We recognize that today’s students are tomorrow’s workforce, and through Travelers EDGE, we are able to identify future talent while simultaneously providing opportunities to underrepresented youth.”
At the graduation, Travelers EDGE scholar Sandie Gong talked about her experience as a Travelers intern. In addition to representatives from Travelers, CCSU President Jack Miller, Capital Community College President Wilfredo Nieves, and UCONN Business School Dean Dr. P. Christopher Earley also attended the event.
Travelers provides support for charitable organizations in the community through the Travelers Foundation and with corporate funding and in-kind services. The company’s community giving is focused on education, community development, and the arts. Travelers employees are consistently active in community initiatives and perform thousands of hours in volunteer time each year.
Ford Motor Company has reported first quarter 2011 net income of $2.6 billion, an increase of $466 million from first quarter 2010, as fuel-efficient new products, continued investment in global growth, and the strengthening of Ford's core business boosted results.
"Our team delivered a great quarter, with solid growth and improvements in all regions," said Alan Mulally, Ford president and CEO. "We continue to accelerate our One Ford plan around the world, delivering on our commitments to serve our global customers with a full family of best-in-class vehicles and deliver profitable growth for all, despite uncertain economic conditions."
First quarter 2011 pre-tax operating profit was $2.8 billion, an increase of $827 million from first quarter 2010. This increase reflected improved profits in each Automotive segment, led by a strong performance in North America and solid improvement in Europe.
First quarter Automotive pre-tax operating profit was $2.1 billion, an increase of $936 million from first quarter 2010. Ford's Automotive business has benefitted from growth in both volume and per-unit net revenue. This revenue growth, along with scale benefits from increasing volume, have driven improvements in profitability and operating margin – despite higher commodity costs and planned cost increases associated with the investments Ford is making in its products, brand, and future growth. The profitability improvement also reflects Ford's stronger balance sheet through lower net interest expense.
First quarter Ford Credit pre-tax operating profit was $713 million, a decrease of $115 million from first quarter 2010, consistent with previous guidance.
North America posted a first quarter pre-tax operating profit of $1.8 billion, a $591 million increase from first quarter 2010. Europe reported a first quarter pre-tax operating profit of $293 million, an increase of $186 million from first quarter 2010. South America and Asia Pacific Africa also posted increased pre-tax operating profits.
Ford's first quarter revenue was $33.1 billion, an increase of $5 billion from first quarter 2010.
Ford generated positive Automotive operating-related cash flow of $2.2 billion in the first quarter, an improvement of $2.3 billion from first quarter 2010.
Ford also made significant progress in strengthening its balance sheet, with a net reduction in Automotive debt of $2.5 billion in the first quarter, including the redemption of all outstanding Trust Preferred Securities. Ford ended the first quarter with $21.3 billion of Automotive gross cash, an increase of $800 million compared to Dec. 31, 2010. Automotive gross cash exceeded debt by $4.7 billion, an improvement of $3.3 billion from year end 2010.
Ford took action to increase overall liquidity, including an additional $1.7 billion of capacity on its secured revolving credit facility, reflecting Ford's improved credit profile and overall credit conditions. Ford's Automotive liquidity totaled $30.7 billion, an increase of $2.8 billion from year end 2010.
"Our business is improving as we achieve growth in volume and revenue, while maintaining our focus on increasing competitiveness," said Lewis Booth, Ford executive vice president and chief financial officer. "The quarter was another encouraging step as we invest for an even stronger business for the future."
Alliant Insurance, the preferred provider for SEMA members, is offering insurance discounts to collision repair facilities that report GreenYield sustainability in the latest expansion of the firm's specialty insurance solutions for the auto industry.
Franco Ganino, Vice President of Alliant Insurance Services, has estimated that shops that monitor GreenYield performance as a result of implementing energy efficiency and pollution prevention measures can generally recognize a five to ten percent discount off their current insurance premiums.
GRC-Pirk Management partnered with Mitchell International Inc. to provide GreenYield performance reporting to help collision repair facilities track the requirements for attaining carbon credits, tax deductions, utility rebates, and insurance discounts.
The GreenYield performance rating software has now been integrated into Mitchell International’s RepairCenter solution - the industry’s first Shop Workspace that enables collision repair facilities of any size to select the tools they want to manage their business the way that best meets their needs, and to add modules as their business grows.
“We are delighted that the GreenYield insurance discounts will be available to users of Mitchell’s industry-leading solutions for collision repairers,” said Jason Bertellotti, Vice President of Repair Solutions for Mitchell International. “This is an excellent opportunity for shops to advance their Green initiatives within the streamlined workflow of RepairCenter.”
Non-intrusive tracking of Green sustainability within Mitchell’s RepairCenter complements a shops commitment to eco-friendly practices. Shops simply provide their information once and the system will automatically transfer and calculate savings, on a repair order basis, from utility and paint supplier records back into RepairCenter. This helps shops manage their environmental-evidence more efficiently, improves management efficiency, and ensures that reports sent to agencies, municipalities, and insurance companies reflect the true savings according to government standards.
“The addition of Alliant Insurance Services demonstrates our commitment to environmental stewardship,” said Steven Schillinger, president of GRC-Pirk Manage-ment. “Insurance discounts are a great example of how our partnership with Mitchell allows us to collaborate with industry leaders like Alliant Insurance to deliver enhanced value to Mitchell customers.”
Through an agreement with GRC-Pirk Management, Alliant’s consultants can help shop owners benchmark their carbon footprint and establish sustainability incentives to attain insurance company discounts and risk management tools.
Alliant Insurance is an insurance agency and brokerage firm that specializes in providing insurance coverage to the automotive industry.
Mitchell International is a provider of information and workflow solutions to the Property & Casualty claims and Automotive Collision Repair industries. Mitchell enables millions of electronic transactions between more than 30,000 business partners each month to enhance partner productivity, profitability, and customer satisfaction.
GRC-Pirk Management is a registered private environmental assessment company for sustainability management that partners with companies and associations nationwide to develop and implement cost-effective risks and records management. The company focuses on integrating regulatory compliance into business processes through “paperless” digital certification.
Service King Collision Repair Centers, a Texas-based operator of collision repair facilities in the Dallas-Fort Worth Metroplex and Houston markets, has acquired Alamo Body and Paint, a leading collision repair service provider in San Antonio, Texas, with eight large scale, high volume locations. Terms of the agreement were not disclosed.
The addition of Alamo Body and Paint positions Service King as the largest independently and employee owned collision repair organization in the U.S. with 42 locations throughout the San Antonio, Dallas, Fort Worth, and Houston areas.
“The acquisition of Alamo Body and Paint allows us to start serving the people of San Antonio," said Service King’s Vice President of Central Texas, Brent McKinney. “Service King is committed to continuing Alamo Body and Paint’s long tradition of excellent customer service and good relationships with insurance companies and automotive dealerships. We are proud to add Alamo’s talented employees and skilled technicians to our base of over 1,000 Service King teammates throughout Texas.”
"We are very excited to join the Service King Team," stated Mark Fuller, former Alamo Body and Paint’s Co-Owner and President. “For the past twenty-five years, our success has been driven by our unrelenting focus on complete satisfaction and respect for our customers and employees."
Mark Fuller has joined the Service King Team as Operations Manager. Alamo Body and Paint’s former Co-Owner, Dave Braun, has decided to dedicate all his time to continuing to develop Nexsyis Collision, Inc., the developer of NEXconnex™, a multiple location, operator-specific collision repair management system, where Braun served as CEO.
Cathy Bonner, President of Service King, stated, “At the eight Alamo locations we offer Service King’s renowned level of friendly and professional customer service. The quality of work by highly skilled and expertly trained body technicians and painters will carry a lifetime guarantee. In Dallas, Fort Worth, and Houston, Service King is known as one of the best places to work, and we are bringing our same level of health, retirement, and career benefits to all new teammates in San Antonio.”
Service King Collision Repair Centers was founded 35 years ago by Owner, Chairman, and CEO, Eddie Lennox.
Lennox commented, “The reason Service King is the largest employee-owned collision repair center in the United States is because the people in this company care about their customers and the trauma they go through after a collision. At Service King we don’t just fix wrecked cars. We help make people’s lives easier. And we do it with a team that puts their hands and their hearts completely into their work, always taking pride in the service we give and the company that we own.” Symphony Advisors, LLC acted as advisor to Alamo Body and Paint throughout the acquisition process.
Painters Supply & Equipment Company (PSE) will showcase its new state-of-the art Learning Center as it hosts I-CAR® spokesperson and Past I-CAR Chair, Chuck Sulkala, in a “Collision Industry Update Forum”.
The Forum will feature a presentation by Sulkala that is designed to introduce the “New I-CAR” to collision repair owners and managers in the PSE service area. He plans to review the history of I-CAR, the new I-CAR Professional Development Program™, “Test Out” options, and answer any questions related to I-CAR and I-CAR training strategy.
“Technical training is a vital component in the success of today’s collision repair facility,” noted PSE Vice President of Sales & Marketing, Guy Bargnes. “In addition to working with I-CAR to bring training programs to our market, the opportunity to have an I-CAR spokesperson speak directly to shop owners and managers regarding strategic training issues is a huge value that we are proud to facilitate. It is a primary reason why we established our Learning Center.”
Specifically, Sulkala will detail the I-CAR Professional Development Program launched last July. The program, created with the assistance of all segments of the Collision Industry, provides a framework for planning and tracking training achievement based upon an individual's role in a collision repair or insurance business. Sulkala will also explain the transition timeline for participants in the I-CAR Gold Class Professionals™ and Platinum Individual™ training recognition programs.
Sulkala will also highlight the many volunteer opportunities available to support collision industry training through the non-profit training organization.
Painters Supply & Equip-ment Company, headquartered in Taylor, Michigan, and founded in 1952, is one of the largest PPG Platinum distributors in the United States, operating twenty stores in Michigan and Ohio.
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Results of the joint Business Confidence Index for March 2011, show that aftermarket business leaders were roughly four times as confident in the future of the Automotive Aftermarket over the next twelve months, than they were regarding the economy in general, reported the Automotive Aftermarket Industry Associ-ation (AAIA) and Northwood University.
AAIA members completed the third monthly index survey, and data shows in part that:
- Forty-one percent were slightly more confident in the aftermarket over the next 12 months, which is down from 72 percent in February 2011. However, 19 percent of respondents were significantly more confident about doing business in the aftermarket over the next 12 months, an increase from February’s 13 percent.
- A score of 51-100 on the index signals leaders are “significantly more confident” in the aftermarket or the economy respectively over the next 12 months, while a score of 1-50 indicates they are “slightly more confident” in said areas over the next 12 months.
Aftermarket business leaders were less confident in the economy as a whole in March, but the overall Automotive Aftermarket Business Confidence Index for March rose to 30.6, up from 29.5 in February, leaving aftermarket leaders in the middle of the “slightly more confident” range.
“It is clear aftermarket leaders had slightly more confidence in the industry in March relative to February of this year,” said Dr. Timothy Nash, Northwood University. “It is also obvious that business leaders were less confident in the overall economy in March relative to February. Both the AAIA/Northwood University Automotive Aftermarket Business Confidence Index and the AAIA/Northwood University Automotive Aftermarket Economic Confidence Index were positive again in March, but mirror concerns that many economists have that the general economy could be slowing down as aftermarket leaders’ confidence in the general economy declined for the third straight month.”
Northwood University specializes in managerial and entrepreneurial education at three full-service, residential campuses located in southern Florida, mid-Michigan, and northern Texas. Northwood University has the only full-accredited bachelor’s degree in Automotive and Heavy Duty Aftermarket Management in the world.
AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute, and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.
Jay Adair, CEO of Copart, Inc., was presented with the "Seven Seals Award" and the "Above and Beyond Award," on March 16 for demonstrating support and commitment to the U.S. military. Brigadier General Donald Currier bestowed the award as a proud Robert O’ Anderson of the Employer Support of the Guard and Reserve (ESGR) stood by.
The ESGR is an organization that works to spread the awareness of the National Guard Reserve to gain employer and community support. The awards are given by the state and territory ESGR committee to recognize citizens, businesses, and organizations for their support and commitment to the U.S. military, and their patriotism, as nominated by their military employees.
Copart, Inc. has demonstrated its commitment to the ESGR by paying Copart military employees 50 percent of their salary if they are deployed during a U.S. military campaign. Additionally, during deployment, their positions are held for their return for a period of six months.
With over twenty years of experience in the vehicle auction industry, Copart's CEO Jay Adair has been a true industry game-changer. He has grown Copart into one of the largest online vehicle auction companies in the U.S. ($3 billion market capitalization). He has been the driving force behind Copart's revolutionary shift from physical auctions to its patented virtual online bidding technology (VB2). As a result Copart has expanded its services and tapped into the global marketplace. Today, more than 25 percent of the company’s vehicle sales are to buyers located outside of the U.S.
Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales. The company currently operates 147 facilities in the United States, Canada, and the United Kingdom. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made.
OEConnection LLC, a leading Online Parts and Service Exchange (OPSX) for the automotive industry, and Multi Service, a global transaction management company specializing in billing and payment systems, have announced a partnership aimed at improving and simplifying the transaction process for automakers, dealerships, and their fleet customers.
In addition to offering fleet customers an easier way to pay for all of their parts and service needs, dealerships will benefit from the solution’s streamlined processes that eliminate the paperwork and administrative burden associated with managing receivables. Automakers that contract with OEConnection and Multi Service to provide the solution for their fleet and commercial customers will have access to enhanced reporting capabilities, including data on fleet maintenance expenditures, part-replacement trends, and more.
Currently, most fleet customers pay each individual dealer for parts and services, spending time reconciling each bill and issuing payments. Through the solution, qualified fleet customers will open an account that gives their drivers access to any participating dealership, nationwide. Not only will participating fleet customers enjoy the ease of a single consolidated bill, they will also have access to detailed spending reports to help them manage their fleet maintenance expenses at the individual vehicle level.
Charles Rotuno, President and CEO of OEConnection, said automakers have reported that fleet and commercial customers are deferring vehicle replacement and are spending more on parts and maintenance as a result of the recent recession and increasing fuel prices.
“By offering maximum convenience and simplicity, automakers and dealerships have an opportunity to attract new business and build on customer loyalty,” said Rotuno. “We are pleased with the opportunity to partner with Multi Service; they have an outstanding reputation for providing specialized billing and payment services, which complements our expertise in automotive parts and service solutions.”
Martha Salinas, Vice President of Multi Service, added, “We are excited to combine our efforts with OEConnection. Their parts service exchange has strengthened the OE-dealer relationship. We look forward to expanding that service offering and bringing fleets into the benefit circle with new payment solutions.”
General Motors is the first automaker to contract with OEConnection and Multi Service for the collaborative solution, which will be available to all U.S. GM dealerships and their fleet customers in 2011.
OEConnection currently serves over 20,000 dealership and repair customers. Customers use OEConnection products over 5 million times each month to market, manage, and move original equipment parts, facilitating an estimated $12 billion in annual replacement parts trade. The company is headquartered in Richfield, Ohio.
Multi Service is a global transaction management company specializing in billing and payment systems. Founded in 1978, the company provides specialized credit card services to fleet, commercial, and government clientele, including the United States Government. The company has offices in the United States, Mexico, the Netherlands and Australia.
The National Auto Body Council (NABC) has announced that the 2011 Recycled Rides® initiative is officially underway. The NABC program, through which members donate refurbished vehicles to families and charities in need, has grown in every year of its existence, and is poised to continue that trend this year. As a result, NABC is more excited than ever about the potential impact the program will have in literally hundreds of U. S. communities.
The vigorous expansion of the program is in no small part the result of the organizations that have been generous enough to allow their employees to participate as Recycled Rides volunteer committee members.
“The generous commitment of these companies—which represent all segments of the industry—makes the success of Recycled Rides possible,” stated NABC Executive Director Chuck Sulkala. “They embody the spirit of NABC and possess a thorough understanding of the importance of our work. Improving the image of our collective industry is truly everyone’s business. The cross-section of organizations committing resources to the cause attests strongly to this fact.”
The 2011 Recycled Rides volunteer committee and their companies are as follows:
- Nick Notte – Recycled Rides Co-Chair (Sterling Auto Body Centers)
- Michael Quinn – Recycled Rides Co-Chair (911 Collision Centers)
- Bill Mayer – Vehicle Procurement Chair (Insurance Auto Auctions)
- Troy Holm – Repair Facility Co-Chair (Collision Services)
- Jim O’Campo – Repair Facility Co-Chair (DuPont Performance Coatings)
- Terry Fortner — Vendor/Parts Chair (LKQ Corporation)
- Rick Tuuri – Vo-tech Chair (Audatex)
- Kurtis Keala – Vendor/Parts Committee Leader (1-800 Radiator)
- Rocky Pallatto – Vehicle Procurement Committee (800 Charity Cars)
- Dwight Howard – Vehicle Procurement Committee (APU Solutions)
- George Verkamp – Vendor/Parts Committee (AutoZone)
- Mark Lovell — Market Champion (Precision Collision Auto Body).
“We have set the bar high for 2011 and the fact that we have such a solid team in place makes me confident that we will meet our ambitious objectives,” stated 2011 Recycled Rides Co-Chair Nick Notte, President of Sterling Auto Body Centers. “Those organizations and collision centers that have previously participated in Recycled Rides have paved the road for others who need to step up and get involved. We’re grateful to all who have come on board both in the past and at present. We can’t thank these companies enough for donating their resources to this initiative.”
Many improvements have been made to the program this year to ease in the procurement of vehicles and address titling challenges. “We’ve updated the workbook and the liability release and have added a media release form to further protect participating shops,” noted 2011 Recycled Rides Co-chair Michael Quinn, co-founder of 911 Collision Centers. “These refinements were made possible through feedback from past participants, as well as the addition of other companies donating their services for the first time. It’s going to be a great year.”
More information and specifics on this year’s Recycled Rides project will be forthcoming in the near future.
A green program highlighting vehicle and parts recycling, Recycled Rides recruits collision repairers, insurers, paint suppliers, parts vendors and others to contribute in their own, yet synergistic ways.
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