Front Row: Shirley Ramos, Nick Gojmeric, Chris Dameron, Herb Lieberman, Jim Busch. Standing: Tom McGee, Tom Cameron, Keith Manich, Michael Pellett, Kevin Caldwell, Jack Billington, Paul Maiersperger, Rod Enlow, Mike Cerny, Sharon Merwin, Art Heberer

The Automotive Service Association (ASA) recently hosted a coalition of insurers, paint companies, recyclers and collision shop owners in a day-long summit held in Dallas.

The meeting was divided into two parts, as representatives worked during the first half of the day to identify current problems with the recycling industry. The second half of the meeting focused on reviewing each issue and developing solutions to these problems—while maintaining certain standards, allowing collision shops to maintain margins while using used/recycled/salvage/recyclable parts and still provide quality repairs for customers.

One objective of the summit was to encourage information providers to correct their databases, as they relate to the use of recyclable parts in the collision repair process, so more accurate estimates may be written. The group agreed that if recyclable parts were accurately identified and proper repair procedures estimated through the use of automated databases those parts would represent a viable repair alternative.

During the meeting representatives from each sector of the industry agreed that further training and communication is needed to educate not only people in the automotive industry, but also the general public, about the viability of recyclable parts. Most insurers have difficulties using the not-included list from ADP, MOTOR and Mitchell as a reference for training. The current practice of simply making an unknown value "not-included" has led to the necessity of referencing 50 "not-included" items to replace a used/salvage recycled door. Even the industry expert panel was unsure of what was, or is, a not-included item. If these experts were unsure, there is no way to adequately train the industry to use these products effectively. Experience level is dropping and the automated databases are not keeping pace. It was proposed to I-CAR that they could help train insurers, repairers, recyclers and the information providers on administration as well as estimation. A damage estimating class for recyclers was also recommended.

Owners of ASA member shops have performed studies and have consistently found that repairs actually require more time when recyclable parts are used vs. new crash parts. This added repair time is attributed to the need for additional preparation work such as cleaning the part, removing door dings, etc. However, difficulties sometimes arise when incorporating these additional procedures into estimates because it is not accounted for in the information provider's programs.

When a repairer schedules a vehicle for repair with an estimate written by an outside estimator it is critical that the parts be readily available. In the case of used parts, several variables exist that can effect cycle time and profitability on the job. The Automotive Recyclers Association (ARA) Gold Seal program for certifying recycling facilities has procedures that help eliminate many problems. However, not all recyclers participate in this program. A standardized cut sheet such as the Recycled Parts Request form created by I-CAR with VIN, vehicle and part description could be generated into the computerized estimate systems so a report could be sent to the recyclers, thus eliminating many of the problems. If this description included options, damage, whether the parts are original or aftermarket, the paint condition, and a listing of attached parts, this would greatly benefit our industry. Additionally, a diagram detailing the part assemblies could identify what is included with the part.

Representatives from ARA acknowledged that training automotive recyclers under a uniform program would help ease confusion that results from identifying parts and the pieces that should accompany a specific part once it has been ordered from a shop.

The group agreed that universal standards would simplify the ordering and use of recyclable parts. Repairers stressed that the individual part is not actually “recycled” until the repairer has actually performed additional labor operations to bring the part to “new undamaged, new vehicle condition.” Insurers and repairers stressed they need better part identification including existing damage to accurately estimate the repairs. Insurers stated they need a transaction process that is as easy to use and as fast as ordering OEM parts. Salvage vendors stated they need accurate vehicle identification to deliver the correct parts. A common nomenclature developed by recyclers, insurers, information providers and repairers would ease much of the confusion that exists today.

The number one solution to these problems the group identified was standards and procedures. This included labor operation procedures and looking at the way information providers process information. Best business practices was the second solution discussed. The group suggested that a white paper be developed by insurers, repairers and salvage facilities to itemize standards and procedures for replacement parts. It was noted that ARA Gold Seal quality standards cover most of these issues. Training, communication and the ordering process/delivery were the final solutions discussed.

The group discussion concluded with thoughts that the used part information today is not easily accessible through any of the information provider's P-pages. In order for these issues to be resolved, it was agreed that a future meeting would be held with representatives of the companies that develop and sell automated estimating systems.

ASA appreciates each industry segment that has been willing to meet and review these concerns. Recycling vendors, insurers, I-CAR and repairers all recognize that our industries must work together to resolve negative issues associated with the acceptance of recyclable parts.

The value of these summits is that they bring together individuals who represent different aspects of the collision repair industry. By getting together in one room and having open discussions, a consensus can be reached about how to advance the industry for everyone's benefit—but most importantly, for the customer's benefit.

Mike West

Jack Gillis of Certified Automotive Parts Association (CAPA), greeted 11 collision repairers from across the United States on June 28th in Grand Rapids, Mich.

The collision repairers represented were consolidators, multi-shop and single shop owners, and were the only segment of the entire collision repair industry present. This was by design, Gillis stated, because he feels that if CAPA is to succeed in truly penetrating the market, the parts CAPA certifies will have to be accepted as equal, or superior to original equipment manufacturers' (OEM) by collision repairers. He admitted that acceptance of these parts or of CAPA does not and has not ever existed in the collision industry.

The one-day meeting was held at Entela Inc., whose world headquarters are in Grand Rapids. Entela serves as a validator for CAPA. Its representatives led the repairers on a tour of their testing facilities. The testing conducted is quite rigorous and includes chemical and metallurgical analysis of metals and plastics materials. The results are compared to OEM. Tensile strength and hardness tests, corrosion resistance, cycling (vibration), and hood striker strength comparison tests are all conducted. The final test conducted on each part is fit testing. The Vehicle Test Fit Program was initiated in April 1999.

In an actual study of complaints filed with CAPA, regarding fit and finish, Entela validated that 80 percent of the complaints filed were legitimate and valid upon investigation.

Gillis realizes that the credibility of CAPA is a major stumbling block to repairer acceptance. He was advised by the group that drastic improvement and sincere action was necessary to facilitate hard-earned acceptance from the repairers who felt they had been taken advantage of over the last 10 years.

There is motivation for CAPA to improve quickly in quality and service areas. In the face of drastically reduced sales revenues and reluctance by the insurance industry to fund CAPA to the levels needed, acceptance through improvement of the product seems like a logical—though timely—process. Gillis was assured that all repairers would welcome improvement.

The representatives toured the Test Fit Facility and four vehicles were viewed, including a Dodge Caravan with a poor-fitting OEM fender, a Mazda with a very bad aftermarket fender, and a Ford pickup with a certified CAPA fender that was being test fitted. The repairers found no fewer than six problems with this certified fender. Gillis stated that the test-fitting of this late model Ford truck fender was part of their ongoing Test Fit campaign. A report form will be filed with the manufacturer and supposedly corrective action taken. The last vehicle was another Ford truck with a non-CAPA fender, which didn't fit.

In the end, the group saw four vehicles and four fenders yet nothing fit properly, whether the fender was OEM, CAPA, or non-CAPA. In fairness to Gillis and CAPA, he admits that problems do exist. The State Farm verdict did what all the repairer's complaints couldn't do. Now, can CAPA force the Taiwan manufacturers to produce a high quality part that will garner the acceptance of the repairers? Time will tell.

Mike West, who heads the Auto Manufacturer's Sub-Committee for the Automotive Service Association (ASA), was one of the shop owners invited to this meeting.

Unlike many manuals designed for entry-level use, the MOTOR Crash Estimating Training Guide is full of detailed drawings, comprehensive directions and thorough explanations, making it user-friendly and easy for anyone to use.

The training guide covers four main topics: vehicle structural design, vehicle groups and systems, diagnosing collision damage and how to use a MOTOR Crash Estimating Guide. First, the guide reviews the two basic structural designs of modern vehicles-conventional frame and unibody design—and the difference in the way each reacts in a collision. Then it gives an overview of the many systems found on modern cars and light trucks, providing a basic understanding of how each system works and how it relates to the proper functioning of the vehicle.

The section on diagnosing collision repair takes readers step-by-step through the process, explaining the various types of damage and how to look for them. It provides tips about where to look for hidden damage and how to use specialized tools and measuring systems to determine the extent of the damage.

Finally, the book explains how to use a MOTOR Crash Estimating Guide to write complete and accurate estimates. It takes readers through the Guide to Estimating, which is key to understanding how to arrive at the correct labor operational times.

Although the MOTOR Crash Estimating Training Guide is part of MOTOR's complete collision library and is a training companion to the MOTOR Crash Estimating Guide, its value is not limited to MOTOR subscribers. Any size shop using any collision estimating system can effectively use the training guide to educate every new non-technical employee and for on-going reference.

For more information on the MOTOR Crash Estimating Training Guide, call your MOTOR representative at (800) 4A-MOTOR.

In an effort to give clients a greater voice in product and service direction, ADP Collision Repair Services (CRS) has announced the creation of a Client Advisory Council to review and validate new products and ideas. Comprised of various collision repair facility owners, the CRS Council will also provide input on the overall direction, delivery and philosophy of the Claims Solutions Group.

“With the creation of the Council, we intend to create a business environment where the client's voice is heard at an even greater level,” said James Boswell, vice president and general manager, ADP CRS.

The council's 20 members, who were selected by invitation from across the country, will consist of shop owners measured by repairer volume and number of locations. Council members will be involved in work as a single body and in subcommittees to work on specific topics. They also have the option of participation as beta test sites for new products.

The Council's charter is designed to help CRS:

• Prioritize enhancements for future CRS product and service releases
• Validate enhancements and provide input regarding changes intended to improve existing CRS product and services
• Act as a sounding board for proposed changes to CRS products and services and assist as a conduit of information to and from other collision repairers in their areas
• Serve as a reference for CRS product management and development when additional information is needed

Council members will participate in product and service discussion roundtables with ADP CRS' management staff, including directors of sales, software development teams, client support, operations, training/field service and marketing.

The Client Advisory Council's first meeting was held April 2000 at the ADP 2000 Industry Conference. Subsequent meetings will be held throughout the year.

“This is an invaluable opportunity for our clients to provide important input on near-term and long-range business management systems needs,” said Jamie Nolar, senior director, CRS. “We see this as a win-win situation for ADP and our clients who can tell us of their changing needs first hand.”

Looking for a new way to increase sales and profits?

ASA has the answer and it is available this fall. It's called the CarCareONE credit program and it is designed to increase the size of your sales, customer loyalty and repeat business. It can save you money because the transaction discount rate to offer 90 Days Same As Cash financing is 1.35 percent, which may be significantly lower than the rate you are currently paying for MasterCard and VISA.

The newest member benefit will permit ASA National members to offer their customers instant financing and a line of credit up to $5,000 that can be used for future purchases. Key benefits to customers include 90 Days Same as Cash financing on purchases over $150, Emergency Roadside Assistance at no additional cost and no annual fee for the card. ASA National members will also have the option to offer 6 and 12-months Same as Cash on purchases of $300 and $500 respectively.

A customer with this new buying power also means more sales dollars for ASA members. A typical CarCareONE first purchase is 350 percent higher than a typical MasterCard/VISA purchase. Why? Because a customer with a new line of credit that has low monthly payments that won't tie up their major credit cards can buy what they want and need today with the CarCareONE card at participating National ASA member locations. Other benefits of the new CarCareOne credit card program include:

• Fast credit of sales to your bank account (typically within two business days)
• Credit decision in 30 seconds, via a terminal provided by GE Card Services
• Electronic Processing
• Nationwide acceptance
• Good for anything you sell (excluding warranties)
• Increased customer loyalty

Look for more details and sign-up information on the CarCareONE program in the Members Advantage section of AutoInc. and your mailbox in the near future.

The Automotive Service Association (ASA) proudly supports the I-CAR Education Foundation by having Sharon Merwin, Division Manager, present a $5,000 check to Ron Ray, Executive Director. ASA believes in the Foundation's mission, and also believes that attracting entry-level candidates and assisting in preparing them for careers in the collision repair industry deserves our financial support. The I-CAR Education Foundation is a not-for-profit, 501-C-3 organization which provides materials and services to prepare vocational/technical school and college students for entry-level positions in the industry and is a subsidiary of the Inter-Industry Conference on Auto Collision Repair (I-CAR).

The I-CAR Education Foundation Board of Trustees elected Erick Bickett, FIX Auto; George A. Curt, Minuteman School of Applied Arts and Sciences; Orville Manuel, Oklahoma Dept. of Vocational and Technical Education; Johnny Mock, Johnny Mock's Auto Body; James Rees, Sherwin-Williams Automotive Finishes Corp.; and Freda Thompson, Ace Auto Body to its Board of Trustees at a meeting held June 28, 2000, in Kansas City, Mo.

J. Laurence Costin, of CCC Information Services, Inc., was elected to the position of lifetime Trustee Emeritus by the I-CAR Education Foundation Board. The Board recognized and expressed appreciation to Mr. Costin for his extraordinary commitment to the Foundation. This lifetime status will allow the Foundation to continue to benefit from his wisdom and years of experience.

The I-CAR Education Foundation is very excited and pleased to welcome these outstanding individuals to the Board. The Foundation also appointed its Executive committee and Committee Chairs for Fiscal 2001. The Executive Committee members and Committee Chairs are:

Executive Committee:
Chairman - William Lawrence, Caliber Collision Centers
Vice Chairman - Donald Askew, PPG Industries, Inc.
Secretary - Jack Billington, Consultant;
Treasurer - Thomas C.L'Hote, State Farm Mutual Automobile Insurance Co.
Immediate Past Chair - Larry J. Carter, Car-O-Liner Co.

Committee Chairs:
Development - Jack Billington, Consultant
Marketing/PR - Terri McMenamin, Cahners/Auto Body Repair News
Trustee - Larry J. Carter, Car-O-Liner Co.

In addition to the new Trustee, Executive committee, and Committee Chairs, the Foundation Board of Trustees consists of: Timothy Clark, Professional Collision Group; Terrence J. Costin, CCC Information Services Inc.; Lirel G. Holt, CARSTAR Automotive, Inc.; Frank Ligon, Jr., Ford Motor Company; Gloria Mann, Polaroid Canada, Inc.; Joseph W. McCormick, DaimlerChrysler Motor Corporation; Frank D. McGiboney, Insurance Consultant; Sharon Merwin, Automotive Service Association (ASA); Donald R. Seitz, CARS Inc.; Charles S. Sulkala, Acme Body and Paint, Inc.; Russ Verona, East Rockford Collision Center; and Fred L. Williams, Texas State Technical College.

Ronald W. Ray, Executive Director of the I-CAR Education Foundation says, "the Foundation could not exist without the support, leadership and guidance from our dedicated Board Members. The Board is represented by all segments of the Collision Industry and these individuals will only strengthen our abilities to fulfill the Foundation's mission."

It's time to think about your nomination for the Executive of the Year, the annual competition sponsored by BodyShop Business. Any person employed in a collision repair shop as a manager or principal is eligible. An individual must be nominated to be considered for the award. The nominator must complete a form that provides information such as community service activities, association involvement and collision repair industry business history for the nominee.

Nomination forms can be requested from BodyShop Business or found in the September and October issue of the magazine. You may also contact ASA's Collision Division to receive a nomination form (800) 272-7467, ext. 229.

Nominations for the 2000 Executive of the Year must be received by BodyShop Business no later than Nov. 1. The winner will be announced at the International Autobody Congress and Exposition (NACE) 2000.