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This article originally appeared in the May 2011 Issue of INSIGHT
©2011 Collision Repair Industry INSIGHT All Rights Reserved
Allstate Buys Esurance and Answer Financial for $1 Billion
Larry Northup Named AWDA Executive Director
American Claims Management Selects Mitchell for New Claims Management Platform
3M Opens Car Care Center at Pep Boys
SCRS Introduces Guide to Complete Repair Planning Resource Online
Honest-1 Auto Care Offers Discounted Franchise Program for Military Veterans
CIC Repair Standards Advisory Committee Launches Business Case Development Project
PPG Presents Seven Excellent Supplier Awards for 2010
INDUSTRY UPDATE
The Allstate Corporation has announced that it has entered into a definitive agreement with White Mountains Insurance Group, Ltd. in which Allstate will purchase Esurance and Answer Financial for $700 million plus the tangible book value of the entities acquired at close. The total price is expected to be about $1 billion. The transaction is expected to close in the fall and is anticipated to be non-dilutive to Allstate's earnings in the second full year of ownership.
"Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments," said Thomas J. Wilson, Allstate's President, Chairman, and Chief Executive Officer. "Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product. Esurance will expand our ability to serve customers that are more self-directed but still prefer a branded product. Answer Financial will strengthen our offering to individuals who want to be offered a choice between insurance carriers and are brand-neutral. Allstate will be the only company serving all of these consumer segments with unique insurance offerings.
"This transaction is also attractive for our shareholders," Wilson continued. "Association with Allstate will improve Esurance's marketing effectiveness and it can leverage our world-class pricing and claim capabilities. This also offers us two additional sources of growth and an immediate increase in customer relationships."
Esurance is the third-largest provider of online auto insurance quotes through an award-winning website, and combines best-in-class technology developed specifically for the needs of self-directed and brand-sensitive consumers with a 24/7 call center. It is also the third most-recognized brand for companies that sell personal auto insurance online. Over the past five years, Esurance has more than doubled policies in force and grown premiums on average 20 percent per year.
Answer Financial serves self-directed consumers who seek a choice among insurance companies. Customers are given quote comparisons and assistance in choosing from 20 brand-name insurance companies.
The transaction has been approved by both companies' boards of directors and is expected to close in fall 2011. The transaction is subject to regulatory and other customary closing conditions, including review by antitrust authorities and state regulators.
The Allstate Corporation is the nation's largest publicly held personal lines insurer.
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Car Charging Group, Inc., a provider of electric vehicle (EV) charging services with the mission to own and build a nationwide network of EV charging stations, and Stiles Property Management, South Florida's third largest property management firm, have partnered to provide downtown Fort Lauderdale's first EV charging services at AutoNation's headquarters, also known as The AutoNation Building.
"This is an exciting project for us," said Car Charging Group CEO Michael D. Farkas. "Through a partnership with Stiles, who manages nearly all of the office towers on the iconic Las Olas strip and is recognized for their first-class sustainability program, we are able to bring a much-needed resource to downtown Fort Lauderdale. Adding to the excitement is that the project is intended for Fort Lauderdale's largest corporate tenant, AutoNation, who also markets EV vehicles as the country's largest automotive retailer."
Miami, Florida-based Car Charging Group will install a Level ll, 240-volt Charging station for electric vehicles. The charging station will be housed on the first floor of The AutoNation Building's parking garage at 200 Las Olas Circle.
"In addition to enhancing the amenities we provide to our tenants at The AutoNation Building, this EV charging station demonstrates our long-term commitment to sustainability and our ability to lead the market in designing, developing, constructing and managing environmentally-conscious commercial structures," said Terry Stiles, chairman and CEO of Stiles.
The EV charging station enhances the environmental credentials of The AutoNation Building, which Stiles' developed in 2007 and has managed ever since. The 17-story mixed-use Class A office building with more than 17,000 square feet of ground-level retail shops fronting Las Olas Riverfront recently became Stiles' fifth project to receive the Leadership in Energy and Environmental Design(R) (LEED) certification from the U.S. Green Building Council (USGBC) and the second in downtown Fort Lauderdale. Stiles' 300 Las Olas Place office property was the first in the downtown area to achieve LEED status.
LEED promotes sustainable building and development practices through a suite of rating systems that recognizes projects that implement strategies for better environmental and health performance.
Through Stiles Property Management's leading sustainability program, The AutoNation Building incorporates such energy-efficient features as a computer-operated energy management system that controls air conditioning and heating while monitoring indoor air quality, electricity-reducing technologies, water-conserving plumbing fixtures and the use of low VOC-emitting paints and sealants. Also, the building management uses advanced recycling systems and green cleaning products that are environmentally safe, Green Seal Certified and bio-renewable.
Car Charging Group, Inc., based in Miami, Florida, is an owner and provider of electric vehicle (EV) charging stations with the mission to build-out a nationwide infrastructure, enabling EV and PHEV owners to charge their EVs anytime, anywhere. As part of its strategy, the company owns, provides, installs and maintains electric vehicle charging units and works with its landowner partners to identify appropriate locations for its charging stations. The company provides convenient, safe and affordable charging stations away from home in customer-friendly public locations, including municipalities, shopping malls, parking garages, multi-family residential, and commercial properties.
An estimated 40 million plug-in electric vehicles, such as the Nissan LEAF, GM Chevrolet Volt, Fisker Karma, Tesla Model S and Ford Focus EV, as well as many others, are expected to be on the road by 2030. Car Charging Group recognizes the need to establish a comprehensive network of charging stations that delivers easy, convenient access to drivers wherever they live, work and play. By investing at the forefront of the electric car revolution, Car Charging Group seeks to become the leading provider of electric car charging services. The company launched its operations nationally in September 2009 and is expanding its operations internationally.
Stiles, in business since 1951, is a full-service commercial real estate firm whose missionis to "Invest-Build-Manage." In addition to development, construction, architecture, realty and property management, Stiles also specializes in financing, acquisitions, and repositioning. The company is responsible for more than 37 million square feet of office, industrial, retail, mixed-use and residential projects throughout the southeastern United States. Stiles inspired the revitalization of downtown Fort Lauderdale, Florida, the home of its headquarters.
AutoNation Inc., America's largest automotive retailer, owns and operates 243 new vehicle franchises in 15 states.
The Automotive Warehouse Distributors Association (AWDA), a segment of the Automotive Aftermarket Industry Association (AAIA) has named Larry Northup as its executive director. Since 2004, Northup has served as AWDA’s staff liaison.
“The AWDA board felt that the new title was more appropriate for an organization that represents more than 200 of North America’s top warehouse distributors, as well as hundreds of their suppliers,” said AWDA Chairman David T. Segal, of Automotive Supply Associates. “Larry’s new title is a reflection of AWDA’s position within the industry, as well as the staff leadership Larry has provided over the past seven years. The board wanted to recognize that service.”
“I am extremely proud to be named AWDA’s executive director,” Northup said. “The association has an incredibly rich history of service to its members and I’m pleased to have earned the confidence of such a significant organization.”
In addition to his duties managing AWDA, Northup serves as the Automotive Aftermarket Industry Association (AAIA)’s Senior Director, Member Relations, overseeing the association’s membership retention and recruitment efforts. Over a 32-year career in the association field, Northup has managed numerous trade groups, including several in the aftermarket industry.
AWDA represents more than 600 top distributors and manufactures of motor vehicle parts throughout North America. The 64-year old organization is a key segment of AAIA.
AAIA is a Bethesda, Maryland.-based association whose more than 23,000 member and affiliates manufacture, distribute, and sell motor vehicle parts, accessories, services, tools, equipment, materials and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.
Mitchell International, Inc., a provider of technology, connectivity, and information solutions to the Property & Casualty claims and Collision Repair industries, has been chosen by American Claims Management, Inc. (ACM), an independent national third party claims administrator, as its new provider of auto physical damage claims processing solutions. Under the terms of the agreement, the company will implement the entire WorkCenter™ suite including assignment, review, compliance, total loss, and reporting.
"We are excited about using Mitchell WorkCenter to power a complete end-to-end integrated physical damage processing solution that will enable us to provide fast and efficient service to our clients," said Dhara Patel, Senior Vice President, Commercial Casualty for ACM. "The decision to go with Mitchell was based on WorkCenter's ease of integration with our claims system and a dedicated account management team offering exceptional service. We also highly value the fact that WorkCenter Total Loss has the ability to improve our claims process by reducing settlement times and increasing customer satisfaction. Our partnership with Mitchell will further enhance ACM's state-of-the-art claims software that already provides on-line, real time data to our clients in a paperless environment."
"We welcome the opportunity to provide American Claims Management with a complete auto physical damage claims solution that includes Mitchell WorkCenter Total Loss. WorkCenter Total Loss, developed in conjunction with vehicle pricing expert J.D. Power and Associates, continues to gain momentum in the marketplace as a result of its accurate and transparent methodology that leads to higher levels of customer satisfaction," said Scott Kozak, Senior Vice President, Insurance Sales & Service for Mitchell Inter-national. "As a company dedicated to improving performance, we're proud to provide a seamless, integrated user experience for claims professionals while improving the consumer total loss claim experience."
Since 1988, American Claims Management has been an independent national third party claims administrator specializing in both commercial and personal lines. ACM is a wholly owned subsidiary of Arrowhead General Insurance Agency, Inc.
Mitchell International processes over 50 million transactions annually for over 300 insurance companies/claims payers and over 30,000 collision repair facilities throughout North America. Founded in 1946, Mitchell is headquartered in San Diego, California, and has 1,700 employees. The company is privately owned primarily by the Aurora Capital Group, a Los Angeles-based investment group.
3M is bringing its innovative automotive solutions direction to consumers with the opening of 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 to help them clean, restore, protect, and customize their vehicles. Featured services of the “store-within-a-store” will include:
- Green car washes
- Automotive detailing with Meguiar’s™ products
- Application of Window Films and Scotchgard™ Paint Protection Film, Scotchgard™ Vehicle Protection services, all from 3M
- Professional headlight restoration by 3M
- Scotchprint® vehicle wraps and graphics from 3M.
A second Southern California location will open later this summer.
“The launch of the ‘3M Car Care Center at Pep Boys’ gives us a strong foundation to offer a fully branded solution for helping consumers take care of their vehicles,” said Adam Wilt, Marketing Manager for 3M Car Care. “Pep Boys is a great partner for this program and has a strong national brand with the automotive enthusiasts. We chose to launch in Southern California with the largest Pep Boys location in the country, the great California weather, the strong car culture, and the nearby headquarters of Meguiar’s.”
“3M has been in the automotive industry for nearly 100 years, with products for both the DIYer and automotive professional,” said Wilt. “The ‘3M Car Care Center at Pep Boys’ brings our history of innovation and firsts to another level. We’re excited about consumers’ initial response to these new services and honored 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 and India.
Pep Boys has more than 6,000 service bays 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.
The Society of Collision Repair Specialists (SCRS) has unveiled its first edition of a Guide to Complete Repair Planning. The purpose of the published guide is to serve as a checklist-style reminder for repair facility estimators regarding procedures and services that may occur in the repair process, so that they can be documented in the initial repair plan or estimate.
SCRS has released the use of this document free of charge, and it is available for download to the entire industry.
"The vision behind this project in the beginning was to simplify and standardize the estimating process," shared SCRS Immediate Past Chairman Barry Dorn. "Through the evolution and continued growth of the list, we began to see a very applicable tool develop that we believe has the potential to offer significant value to the industry."
This guide was initially developed by March Taylor, Toby Chess, and other contributors, as they sought a mechanism to standardize the estimating process in Taylor's repair facility, and to develop a process that produced more accurate and detailed blueprints of the repair. Over the years the document grew as contributors maintained and added to their individual copies, and was refined to the current issue which includes over 800 line items commonly seen on collision repair estimates.
"Ultimately, we hope that the industry uses the resource as a means to ensure better accounting for the work performed, and continues to contribute to the development of the content," added SCRS Chairman Aaron Clark. "This was always intended to be a 'living document' that adapts and evolves over time. By opening it up to the industry, we are able to harness even more input and suggestions to improve it with future editions while delivering on our overarching desire to provide resources that help the industry grow and succeed."
Through its direct members and 39 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles.
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Honest-1 Auto Care, the only national full-service auto repair and maintenance franchise that is 100 percent ESA® Certified Eco-Friendly, is offering a discount of more than 15 percent on franchises for qualified military veterans. The savings will equal $5,000. Honest-1 enacted this program to help military veterans make an easier transition to civilian life.
“We’re pleased to help veterans as they change their careers, and we want to show our appreciation for all they’ve done to protect our country by easing the cost to open an Honest-1 Auto Care shop,” said Jack Keilt, President and Chief Executive Officer of Honest-1 Auto Care.
The initial franchise fee of $30,000 will be reduced by more than 15 percent for veterans who are honorably discharged from any branch of the military service. The reduction applies only to the first location the franchisee opens.
Honest-1 Auto Care has partnered with the Interna-tional Franchise Association and its Veterans Transition Franchise Initiative, known as VetFran, to make the lower franchise fee available to veterans. VetFran was established in 2002 to help military veterans seek the dream of small-business ownership.
“The skills these talented veterans honed in the military – such as teamwork, dedication and an appreciation for processes – are the types of skills that will make them successful Honest-1 Auto Care franchisees,” added Keilt.
Honest-1 Auto Care leads the industry in numerous eco-friendly initiatives, including strict recycling of automotive materials, pollution prevention, and resource conservation. With 22 locations operating, Honest-1 plans to open 10 more locations nationwide in the next year. Honest-1 was ranked 338 in Entrepreneur magazine’s 2011 “Franchise 500.”
The Repair Standards Advisory Committee, formed by the Collision Industry Conference (CIC) to address the need for standards in the United States Collision Repair Industry, has selected Condon Consulting, LLC to assist the group in the preparation of a business case statement for the new organization. The cost of the business case development, including initial organizational costs, is projected to be $60,000 and the group is seeking the support of industry sponsors to fund the project.
The goal of the committee is to present the business case to the industry detailing the consensus of repairers, insurers, and other stakeholders during a special meeting prior to the November CIC meeting in Las Vegas during the SEMA show.
"The business case will be used by the organization to define the demand for repair standards based upon interviews and research with collision repairers, insurers, equipment manufacturers, paint system manufacturers vehicle manufacturers and others," said Russell Thrall III, chair of the Repair Standards Advisory Committee. "The group has already received commitments for $15,000 of the $60,000 needed to complete the business case this year."
As of May 24, sponsorship commitments totaling approximately $15,000 have been received from:
- 911 Collision Centers
- Akzo Nobel
- Anaheim Hills Auto Body
- Anderson Behel Body Shop
- BASF
- Chilton Auto Body
- Collision Plus Auto Body Repair Centers
- CollisionWeek
- DDPartners, Inc.
- DuPont
- Greg's Collision Centers
- Oakland Auto Body
- Symphony Advisors.
Dale Delmege, Fundraising/ Marketing Sub-Committee chair, said in a letter to potential sponsors of the effort, "In our view this is the single most urgent step in the modern history of our industry. It is not a question of whether there will be collision repair standards; they are virtually inevitable. The question is whether they will be written and imposed externally, or will be a rational creature of our industry's own knowledge and expertise."
Sponsorship checks should be made payable to: Quandec Corporation - CIC Repair Standards Fund, PO BOX 538, Tannersville, PA 18372.
PPG Industries has presented seven Excellent Supplier Awards for superior performance in 2010.
On an annual basis, PPG purchases nearly $7 billion in materials and services from thousands of suppliers. The company’s criteria for Excellent Supplier Awards include product quality, delivery, documentation, innovation, responsiveness, continuous improvement, and participation in PPG’s Supplier Added Value Effort ($AVE) program.
“We are pleased to recognize these suppliers, whose products, services, reliability, innovation, and overall value in 2010 were outstanding,” said Steve Lampe, PPG vice president, corporate purchasing and distribution. “We consider them invaluable business partners who provide exceptional and significant competitive advantage to PPG.”
Companies earning the 2010 Excellent Supplier Award, and the products and services they provide, were:
- Bayer MaterialScience, based in Leverkusen, Germany, a global supplier of polyurethanes, resins and other raw materials to PPG’s aerospace, automotive OEM coatings, automotive refinish, and industrial coatings businesses.
- CMP-Metalgraphica Paulista Ltda., a Sao Paulo, Brazil-based, producer of metal cans that serves PPG’s architectural, automotive OEM, and automotive refinish coatings businesses in South America.
- Eastman Chemical Co., based in Kingsport, Tennessee, which provides solvents, adhesion promoters, and other chemicals to PPG’s aerospace, automotive OEM coatings, automotive refinish, chlor-alkali and derivatives, industrial coatings, and protective and marine coatings businesses in North America.
- The Folks Creative Printers, based in Marion, Ohio, a supplier of product labels and related services to PPG’s automotive refinish business in the United States.
- W.W. Grainger, Inc., of Lake Forest, Illinois, which supplies industrial and safety items to PPG’s aerospace, automotive OEM coatings, chlor-alkali and derivatives, flat glass, and industrial coatings businesses in North America.
- McJunkin Red Man Corp., a Houston-based company that provides pipe, valves and fittings as well as vendor-managed inventory services to PPG’s automotive OEM coatings, chlor-alkali and derivatives, and industrial coatings businesses.
- Thor Specialties (UK) Ltd., of Kent, England, which provides biocides to PPG’s global architectural coatings and automotive OEM coatings businesses.
PPG Industries, founded in 1883, 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 2010 were $13.4 billion.
Audatex, a Solera company, wants to help enhance the future of the Collision Repair Industry by offering a $25,000 matching grant to provide one California school’s collision program with an Ultimate Collision Education Makeover through the Collision Repair Education Foundation this fall, which will fulfill the program’s $50,000 wish-list. Audatex will match individual and business tax-deductible donations to the Education Foundation (up to $25,000) and a California secondary or post-secondary school’s collision program will be selected from the applicants of the Foundation’s 2011 Makeover school grant. Funding of Audatex’s California matching grant is part of the $100,000 donation to the Collision Repair Education Foundation in 2010 by Solera and the company’s CEO Tony Aquila, the largest cash donation ever received by the not-for-profit organization.
Since 2009 the Collision Repair Education Foundation has offered its annual Ultimate Collision Education Makeover school grant by which one secondary or post-secondary school’s collision program is selected nationwide. Over the past two years, over 80 schools have applied for this grant and through this support opportunity, collision students’ education has been enhanced in order to be productive, efficient, and capable future professionals of the inter-industry. Both the Collision Repair Education Foundation’s annual Makeover grant winner and Audatex’s California winning school will be announced during SEMA 2011 this fall in Las Vegas.
“This is an exciting opportunity for Audatex and the industry to make a real difference in the lives of thousands of students through a school Makeover”, said Rick Tuuri, VP of Industry Relations for Audatex. “Schools and students are the future of our industry, and Audatex is committed to the future. We look forward to working with our industry partners to make a difference for a worthy school and the students.”
Collision Repair Education Foundation Executive Director Scott Kruger said, “I commend Audatex for helping the Education Foundation expand the Makeover school grant program and help transform one California school’s collision program that will benefit current and future students for years to come. This grant will significantly assist one California school’s collision program with needed tools, equipment, and supplies. Audatex has put the challenge out to the industry to match their $25,000 and through others stepping up and participating with this program, the industry can come together to support its own future.”
Industry members are asked to respond to this matching grant opportunity by Friday, September 30th. Please send contributions with checks payable to:
Collision Repair Education Foundation
Attn: Audatex Matching Grant
5125 Trillium Boulevard.
Hoffman Estates, IL 60192
Audatex is a global claims solutions provider serving the automotive industry. Active today across six continents, Audatex provides world-class claims solutions that help customers automate their processes; managing millions of claims each year efficiently and effectively, and resolving billions in claims settlements.
For additional information about the Education Foundation’s Ultimate Collision Education Makeover $50,000 school grant, visit www.CollisionEducationFoundation.org or contact Collision Repair Education Foundation Associate Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or 847.463.5244.
Ohio Technical College has partnered with Dupli-Color(R) Products Group to offer several scholarships as prizes in the Restoration Challenge Generation Next Promotion. Dupli-Color is looking for three vocational high schools nationwide with automotive vocational programs to demonstrate how they will utilize Dupli-Color Products in their fall 2011 classes to create some exciting and unique projects. The Dupli-Color team will judge all of the entries based on how cool the proposed projects will be and the top three entries will receive enough Dupli-Color Product to complete their proposed automotive-based paint projects and a $5,000 shopping spree from participating retail sponsors.
In fall 2011, the winning schools will document their progress on their proposed projects and everything will be posted on the Dupli-Color Facebook page throughout the competition. Everyone in the Facebook community will get to vote for their favorite school project. The winning school, based on the compilation of fan votes, will receive $10,000 in scholarships for each member to attend Ohio Technical College, as well as a school party DJ'ed by Funk Master Flex.
The second place team will receive $7,500 in Ohio Technical College scholarships for every team member and third place will receive $5,000 in Ohio Technical College scholarships for every team member.
"This challenge is a perfect tie in to our leading Custom Paint and Graphics program," said Jordan Brenner, Director of Enrollment at Ohio Technical College. "Among the many automotive programs offered at OTC, we offer a 12-week course developed to train body shop technician's on custom paint and refinishing. The Custom Paint and Graphics program allows students to explore the more artistic side of painting, special effects and graphic design."
"We're excited to work with Ohio Technical College on Restoration Challenge Generation Next," commented Brian Suter, Assistant Product Manager for Dupli-Color. "We think this is the perfect way to get the next generation of automotive enthusiasts excited about our products and OTC offers the opportunity for them to make their passion into a fulfilling career.
To learn more about Dupli-Color Restoration Challenge Generation Next, check out the video at: http://www.youtube.com/user/duplicolortv?feature=mhum#p/a
To enter Dupli-Color(r) Restoration Challenge Generation Next, please visit www.facebook.com/Dupli-Color.
Ohio Technical College (OTC) 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 Accrediting Commission of Career Schools and Colleges (ACCSC) college, OTC and its PowerSport Institute branch campus encompass nearly 800,000 sq. feet of classroom and workshop space. For more information, visit www.ohiotech.edu and www.psi-now.com.
Dupli-Color(r) Products Group, a division of The Sherwin-Williams Company, is a manufacturer of top-quality aerosol, touch-up, general purpose and automotive specialty products. The company is a leading OEM supplier, providing Exact-Match paint and innovative coatings since 1938.
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