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Automotive News -- February 25, 2010 - 11:07 am ET
Toyota CEO Akio Toyoda and Yoshimi Inaba, president and of Toyota Motor North America, listen to questions while testifying on Toyota's car safety before the U.S. House Committee on Oversight and Government Reform on Capitol Hill yesterday.
WASHINGTON -- Toyota Motor Corp.’s top executives acknowledged to lawmakers yesterday that the company has been deficient in sharing safety-defect information with countries outside the area in which they were discovered.
A number of lawmakers have complained at hearings this week that Toyota sometimes has taken years to tell U.S. regulators about unintended acceleration and braking problems discovered in Europe.
The result has been delayed U.S. recalls of the Prius and Lexus whose problems had surfaced months or even years earlier overseas, the lawmakers said. The problem with sticky pedals also was discovered in Europe long before Toyota’s January recall of 2.3 million vehicles.
“We should have done a better job of sharing” information, Yoshimi Inaba, Toyota Motor North America’s CEO, told the House Oversight and Government Reform Committee yesterday. “When you go into a certain database, you can find it. But it is not positively shared.”
Toyota Motor President Akio Toyoda said through an interpreter: “We intend to exchange and share information more timely throughout the world.”
Toyoda said that the company is forming a special global quality committee that he will chair to address safety-defect problems around the world. It will include a United States representative and will have its first meeting March 30.
Rep. Bart Stupak, D-Mich., who heads the Oversight and Investigations subcommittee of the House Committee on Energy and Commerce, said the new Toyota panel does not go nearly far enough.
“It’s still in Japan,” he said in an interview today. “Cosmetically it looks good, but all we are is a country with a ‘for sale’ sign on it.”
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100225/RETAIL05/100229917/1147
Body Shop Business
Check was for 1978 car accident under Brooklyn Bridge.
2/25/2010 9:39:12 AM
An 85-year-old South Florida woman rifling through her nightstand for a picture of her ex-husband found something better – a check for $17,500 from her insurance company dated Jan. 23, 1978. The South Florida Sun-Sentinel says Barbara Cosgrove moved the nightstand from West End, New Jersey, to Miami Beach, then Lauderhill, Fla., before coming across the long-lost check.
The settlement was for a bizarre accident under the Brooklyn Bridge that left her brand-new Lincoln Mark IV smashed.
Cosgrove says the bridge was being painted, and a tarp was hung over the road so cars wouldn’t be splattered with paint. Heavy rain left the tarp overloaded with water, and the tarp came loose, sending the water 200 feet down to the hood of Cosgrove’s Lincoln. The Lincoln’s hood and windshield were smashed, and Cosgrove was hospitalized after the crash, the newspaper said.
Cosgrove says she never realized she received the check and gave up on receiving any compensation from the accident late in 1978.
“I’ve gone in that drawer a thousand times,” she said. “Why didn’t I find it sooner?”
The insurance company that issued the check – The Home Insurance Companies – was declared insolvent in 2004 and had its assets liquidated. A liquidation claims officer told the Sun-Sentinel that he’ll send Cosgrove a claim form, but he’s not sure it will be fulfilled considering the other claims against the company.
http://www.bodyshopbusiness.com/Article/71251/strange_but_true_woman_finds_32yearold_insurance_check_for_17500_in_nightstand.aspx
2/25/2010 8:32:10 AM
Connecticut Attorney General Richard Blumenthal wants to intervene in a body shop group’s class action lawsuit against The Hartford Insurance Co. to help “prevent unfair and biased automobile body damage appraisals.”
The Auto Body Association of Connecticut (ABAC) announced that Blumenthal has asked the Stamford Superior Court for permission to file a brief in support of the ABAC motion for a permanent injunction to prevent The Hartford from exclusively using in-house representatives to perform appraisals. The injunction stems from a $15-million court decision in November in a class action suit on behalf of state body shops against The Hartford.
Blumenthal’s petition said, “The State seeks to prevent unfair and biased automobile body damage appraisals and unfair suppression of labor rates – conduct which not only violates (state law), but which also has a direct and adverse effect on Connecticut’s general economy.”
Further, it said the “State has an interest in preventing the unfair suppression of labor rates that significantly harms the State’s economy and results in extreme economic hardship for independent automobile body repair shops.”
In November, a jury awarded $15 million to Connecticut auto body repair firms, saying The Hartford engaged in unfair business practices. The lawsuit filed by ABAC and three of its members alleged that the insurance company artificially suppressed body shop labor rates by eliminating the use of independent appraisers and relying exclusively on its own automobile service representatives to perform appraisals so the company could control their content, including labor rates.
Following the verdict, ABAC filed a motion for a permanent injunction to prevent the unfair business practices and asked the court for punitive damages in addition to the $15 million. Those motions are pending. The Hartford has said it would appeal the court's decision.
“Attorney General Blumenthal has been a champion of small business and has been with us every step of the way,” said Atty. David Slossberg of Hurwitz, Sagarin, Slossberg and Knuff, of Milford, co-counsel for ABAC. “The Attorney General’s intervention in this action sends a strong message – The Hartford’s unfair trade practices must stop, it must follow the law, and the hundreds of auto body shops in our state must be able to run their businesses on an even playing field, absent The Hartford’s influence and control. We are delighted with this development.”
Thomas Hambrick, spokesman for The Hartford, told the Hartford Courant that the insurer was disappointed with Blumenthal’s actions, saying body shop owners are trying to increase costs to Connecticut consumers.
"It is important to us that our customers have access to a repair program that provides great service at a fair price," Hambrick said.
ABAC President Bob Skrip said that shops in his state need to be fairly compensated for the work they perform.
“Automobiles have become increasingly sophisticated over the years. Ongoing training is necessary. Expensive, sophisticated equipment is continually required to keep up with ever-more complex vehicles,” Skrip said. “Those who work in our profession today are extremely talented craftsmen and professionals. It’s time for compensation to catch up to our expenses.”
Skrip added that ABAC plans to pursue legal action against other insurers in the state that are allegedly engaging in unfair business practices similar to those of The Hartford.
“Enough is enough,” Skrip added. “We can no longer allow huge insurance companies to force their will on businesses and consumers. It’s your car. It’s your choice where to have it repaired.”
http://www.bodyshopbusiness.com/Article/71248/connecticut_ag_asks_to_intervene_on_body_shops_behalf_in_suit_against_the_hartford.aspx
2/25/2010 8:24:00 AM
Repair information provider Alldata LLC has released a white paper discussing the need for collision repair facilities to have vehicle manufacturers' OE repair information.
"The people who build the cars have the final word on how to repair them after a collision," said Alldata senior program manager for collision, Dan Espersen.
"The manufacturers have very specific requirements about sectioning, weld types, panel attachment, handling new materials, hybrid safety and a lot more. And every manufacturer has its own requirements."
Given how rapidly vehicle technology is changing, more and more collision shops are realizing that they need up-to-date information for working on alternative steels, magnesium, aluminum, composites and plastics.
In some cases, new adhesives are required to make repairs rather than traditional welding techniques.
According to the white paper, new and ever-evolving technologies, economic pressures, and requirements mandated by insurance company agreements all put enormous pressure on collision shops.
With slim profit margins and labour rates held in place by market forces, increased productivity is becoming essential to survival.
"This white paper resulted from talking to a lot of people who are living with today's business and economic challenges, and from a very informative round table discussion held at the NACE conference in November," says Espersen. “It confirmed for me what I already knew, that OE information can help mitigate a lot of the issues facing shops today."
http://www.bodyshopbiz.com/issues/story.aspx?aid=1000359989
2/24/2010 11:37:48 AM
SEMA says it’s enhancing features targeted at the paint and body market at the 2010 SEMA Show due to increased interest from the industry. The Paint, Body & Equipment (PBE) area of the upcoming event will be larger and in a more prominent location than it was in 2009, and educational sessions specific to the paint and body market will be offered during the 2010 SEMA Show taking place Nov. 2-5 in Las Vegas.
"We're constantly adapting to changes in the industry," said Chris Kersting, SEMA president and CEO. "We challenge ourselves to deliver high value to both exhibitors and attendees, all with the goal of providing them with a Show that is current and relevant."
While the PBE floor section was formally introduced in 2009, show organizers had seen an increase in the product category for many years. More than 50 manufacturers responded by exhibiting in last year's section located in North Hall. Based on recent inquiries and requests, organizers are anticipating that the area will be larger in 2010 and are moving it to a more prominent area still in North Hall.
Organizers are also working with the Society for Collision and Repair Specialists (SCRS) and Collision Industry Conference (CIC), both of whom are hosting meetings for their groups in Las Vegas during the week of the SEMA Show.
The SCRS also is collaborating with SEMA to develop targeted educational seminars at the SEMA Show. Typically featuring 50-60 sessions throughout the week, the educational program is one of the cornerstones of the annual trade-only event.
"As more and more attendees at the SEMA Show become interested in the paint and body market, it is becoming increasingly more important to incorporate seminars targeted specifically to this audience," said SEMA VP of marketing and member services Tom Myroniak. "Working with the SCRS will be instrumental in helping us deliver value to this growing group."
http://www.bodyshopbusiness.com/Article/71243/sema_show_enhances_offerings_for_paint_and_body_market.aspx
2/24/2010 11:18:50 AM
Mitchell International, Inc., announces the launch of Mitchell Managed IT Services. The service is provided in collaboration with Dell and The IT Pros, a Dell-certified Managed Services Partner. Mitchell is working with Dell's channel Managed Services program to offer technology services that will help relieve collision repair facilities of the cost and complexity of managing their IT systems on their own and is inviting facilities to try the solution through a risk-free 60-day trial.
Managed IT Services offers a range of features and options to support facilities through remote problem-solving via 24/7 monitoring or optional on-site support through an outside network of Dell-certified service providers. Offerings include monthly management reports that identify network vulnerabilities, unlimited telephone help desk support (for all hardware, software, and network issues), anti-virus and threat detection, and data back-up and restore. Dell will provide the platform for the service delivery, as well as training and certifying third-party IT service partners who understand the unique shop-focused software and hardware environment.
"Our goal is to always help businesses improve their process and performance. Our managed services platform helps businesses save time and money by eliminating the need for them to have to shift focus to resolving IT issues and ongoing maintenance, and allowing them to focus on running their business," said Pete Klanian, Senior Manager, Dell Global Commercial Channels.
Mitchell says the new Managed IT Services gives repair shops – no matter what size – the ability to focus on their core business with confidence while certified professionals manage their IT system. Shops can try Mitchell's managed services with a free 60-day trial and 100 percent satisfaction guarantee to see how they can enhance their productivity when they are relieved of the pressure of managing their IT system on their own.
http://www.bodyshopbusiness.com/Article/71235/mitchell_launches_it_management_service_for_body_shops.aspx
Automotive News -- February 24, 2010 - 3:00 pm ET
The 2005 Dodge Grand Caravan and Chrysler Town & Country minivans still meet crash standards outlined by U.S. safety regulators.
DETROIT (Reuters) -- Chrysler Group LLC said it will replace a front airbag sensor in more than 355,500 minivans, starting in June.
The automaker's "safety improvement campaign" covers 355,562 of its 2005-2006 Chrysler Town & Country and Dodge Grand Caravan minivans, including 259,437 in the United States and 72,035 in Canada.
The move comes after Chrysler found one of the front airbag crash sensors could crack under some environmental conditions and allow water to enter the sensor, potentially causing the sensor to become inoperative.
The company, which is controlled by Fiat S.p.A., said it is not aware of any complaints, injuries or property damage related to this issue.
Chrysler said the campaign is different from a recall because should problems occur, the vehicles would still meet crash standards outlined by U.S. safety regulators.
"If the front crash sensors become inoperative, the driver is immediately alerted by illumination of the airbag warning light," Chrysler said in a document sent last week to the National Highway Traffic Safety Administration to notify the agency of its decision.
"Until the vehicle is repaired, the airbags may not provide the enhanced protection in the event of a crash," Chrysler said.
The voluntary safety action comes at a time when Toyota Motor Corp. faces heightened scrutiny over its handling of a series of safety problems that rocked its reputation and results.
Hyundai Motor Co. said on Tuesday it will recall 47,000 of its new Sonata sedans to fix faulty door latches.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100224/RETAIL05/100229931/1251
China's Sichuan Tengzhong unable to get approval
Chrissie Thompson
Automotive News -- February 24, 2010 - 2:56 pm ET
UPDATED: 2/24/10 3:59 p.m. ET
DETROIT -- General Motors Co. will wind down its Hummer brand after a proposed sale to China's Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. fell through.
Tengzhong “was unable to complete the acquisition,” GM said today in a statement. The Chinese company failed to win government approval of the sale, a source familiar with the negotiations said.
GM will honor warranties, provide spare parts and will support service for Hummers worldwide, the automaker said. GM has 153 U.S. Hummer dealers, spokeswoman Ryndee Carney said in an e-mail.
The failed deal likely seals the fate of the last of GM's four unwanted U.S. brands. GM is winding down Saturn after its sale fell through in September. Pontiac is also being phased out. GM yesterday completed the sale of Saab to Dutch niche carmaker Spyker Cars NV.
GM is open to receiving other bids for Hummer as it winds down the brand, the source said. The sale of Saab arose out of a similar situation: Spyker entered a bid after a proposed sale of Saab to Sweden's Koenigsegg Group AB fell through in November. The chances of resurrecting Hummer are viewed as slimmer than they were at Saab, the source said.
GM put Hummer up for sale in 2008, before the global financial crisis that dragged the automaker into bankruptcy.
In June of last year, GM said it expected to sell Hummer to the Chinese heavy machinery maker, which has no experience in the auto industry. Hummer's 67 percent sales decline last year was the steepest of any volume brand in the United States.
GM bought the brand in December 1999 from AM General, which has also continued to make versions for the armed forces.
Hummer entered the civilian market in 1992. Non-government Hummer sales were averaging between 800 and 1,000 units annually when GM bought the brand.
Hummer's U.S. sales peaked at 71,524 in 2006, before demand was choked by gasoline prices that soared above $4 per gallon in 2008. Sales last year dwindled to 9,046.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100224/OEM/100229932/1131
Dealers informed of sales halt
Lindsay Chappell
Automotive News -- February 24, 2010 - 12:01 am ET
UPDATED: 2/24/10 1:08 p.m. ET
Hyundai Motor America Inc. late Tuesday told regulators that front door-lock modules on some 2011 Sonatas can stick under some circumstances.
The Korean automaker planned to notify customers of a recall.
“Anything to do with door latches warrants a recall,” said Hyundai spokesman Miles Johnson in Fountain Valley, Calif.
Earlier Tuesday, Hyundai ordered a halt to sales of the 2011 Sonata after notifying dealers of the problem.
The recall will affect about 1,300 of the 2011 Sonata sedans built through Feb. 16 at Hyundai's plant in Alabama and sold to customers, plus 46,000 Sonata units produced through Dec. 6 in South Korea. The new model started to be sold from September 2009 in South Korea and this month in the United States.
It will notify South Korea's transport ministry and the U.S. National Highway Traffic Safety Administration this week of the decision to recall the cars in March.
The company said it received complaints from customers but no reports of accidents or injuries related to the model.
Quick resolution
With intense scrutiny bearing down on rival Toyota Motor Corp., Hyundai hopes to quickly resolve the product glitch on the recently released sedan.
The Sonata is Hyundai's biggest-volume vehicle, with 2009 sales of 120,028 cars. The 2011 model went on sale only two weeks ago. There are currently only about 5,000 cars in U.S. inventory, and about 1,300 have been sold, Johnson said .
It is unclear how many of those have the faulty locks.
Johnson said the malfunction occurs only in situations where front-seat passengers try to open their doors from the inside while simultaneously holding down the lock button. In that circumstance, the interior door handle will not return to its normal position, and passengers cannot fully close the door.
If they press the lock button again, the handle will correct itself and allow the door to function correctly.
Heightened sensitivity
He acknowledged that there is heightened sensitivity to product issues at the moment because of the headlines and congressional hearings surrounding Toyota's global recalls of 8.5 million vehicles over safety concerns since late last year.
The Sonata repair will consist of replacing the front door-lock mechanism. Johnson said the replacement parts will begin reaching dealerships tomorrow, and the stop-sale will be lifted as soon as repairs are made.
He said communications to NHTSA and to vehicle owners will begin this week.
http://www.autonews.com/article/20100224/RETAIL05/100229945/1147
Entry-level car being considered for new Saab, Muller says
Chrissie Thompson
Automotive News -- February 23, 2010 - 11:21 am ET
UPDATED: 2/23/10 2:54 p.m. ET
DETROIT -- General Motors Co. today completed the sale of its Swedish Saab brand to Dutch luxury sports car maker Spyker Cars NV, marking the first successful sale of one of its four unwanted U.S. brands.
The transaction combines Saab Automobile and its 3,400 employees with Spyker Cars and its 110-plus workers under parent company Spyker Cars NV.
“The focus as of today will be on getting back to business,” Jan Ake Jonsson, CEO of Saab Automobile, told reporters today. Executives want to refocus the identity of the Saab brand “to create an innovative, free-thinking company based on our Swedishness,” he said.
The sale saves Saab from what appeared to be doom after Swedish supercar maker Koenigsegg Group AB backed out of a planned purchase in November. But Spyker -- whose logo bears a Latin phrase that translates, “For the tenacious, no road is impossible” -- made an offer during Saab's wind down.
Negotiations took weeks, and skeptics included GM CEO Ed Whitacre. But in late January, Spyker inked an agreement to buy Saab.
Completion of the Saab deal leaves GM facing a Feb. 28 deadline to complete a planned sale of Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery Co. Saturn and Pontiac are being shut down.
The terms
Spyker is paying GM $74 million in cash and $326 million in redeemable preference shares.
Spyker CEO Victor Muller had already secured the $50 million needed to close the deal with GM, with the remaining $24 million due in July.
He has also vowed that the new group will reach profitability in 2012, although neither Saab nor Spyker have made any money in the past decade.
Saab's revival centers on a new 9-5 that launches this year, the arrival of the 9-4X crossover in 2011 and the debut of a new 9-3 in 2012. Saab's production- and intelligence-sharing agreement with GM lasts through the introduction of the new 9-3, Jonsson said.
“We have the flexibility to go outside General Motors if we desire,” he said. “The next-generation 9-3 is the first chance to, for example, introduce a new engine from the other suppliers that are out there.”
Another car?
In addition, Muller told reporters today, executives are considering an entry level car reminiscent of the tear-drop-shaped 92, the Saab brand's first car, whose production began in December 1949. First, Muller and his team have to decide whether the market would accept it and line up funding for its production, he said.
“There is a more than likely chance that that would succeed,” he said.
Dealers desperate for 2010 models will have to wait at least another week to place orders, Jonsson said. Saab should have its 2010 production plans finalized at that time, with assembly to start in three to four weeks, he said.
Saab produced just 20,791 cars last year as global sales slumped to 39,903 from 94,751 in 2008. But Muller aims to raise production to pre-crisis levels of about 100,000 to 125,000 within two years.
http://www.autonews.com/article/20100223/OEM/100229951/1193
Tue, 23 Feb 2010
Pulling untested parts from the shelves is a move in the right direction- that shouldn't have been necessary.
The groundswell of activity over the last several weeks from repairers, insurers and suppliers to eliminate aftermarket structural parts and bumper reinforcements of questionable quality from the collision repair marketplace is a welcome move in the right direction. Unfortunately, given the decades of industry work to promote a competitive crash parts marketplace where quality parts can compete with those from the original equipment manufacturer, these parts should not have existed in the collision repair business in the first place. The fact that they were is troubling. The fact that they existed for so long in the supply chain is unconscionable.
With the automotive parts of the general public's mind focused on the recall of a large number of Toyotas for problems with unintended acceleration and brake performance, fingers in the collision repair world are pointing in all directions.
Insurers point at the suppliers and say they can't believe that parts manufacturers and distributors would provide untested parts of easily-questioned quality. Parts distributors say they were sourcing what they believed were quality parts from reputable manufacturers, but without a third-party testing and certification program, they were left to develop a quality assurance program on their own or rely on the parts manufacturer.
CAPA, the industry-supported aftermarket parts certification body, dithered on creating a program to test and certify bumper reinforcements for most of last year until announcing on February 1, 2010 that it would start a certification program.
Parts suppliers and repairers point their fingers at insurance companies that force "lowest list price" parts selection- enabled by automated functionality supplied by the estimating system providers… another target for those inclined to keep pointing fingers.
As the fingers keep pointing, concerned repair facility operators have been asking where the situation is heading and what they should do in the meantime. Where the issue will go in the long-term is unclear.
While some are calling for a "recall" of aftermarket bumper reinforcements, it's not clear there is any testing data to support such a move or that The National Highway Traffic Safety Administration (NHTSA), responsible for initiating a mandatory recall, even considers bumpers part of the vehicle's occupant protection system.
NHTSA's bumper standard only prescribes performance in low-speed front and rear collisions and gauges the bumper's ability to prevent damage to the car body and safety related equipment.
NHTSA itself states in a bumper Q & A available on its Web site that, "Automobile bumpers are not typically designed to be structural components that would significantly contribute to vehicle crashworthiness or occupant protection during front or rear collisions. It is not a safety feature intended to prevent or mitigate injury severity to occupants in the passenger cars. Bumpers are designed to protect the hood, trunk, grille, fuel, exhaust and cooling system as well as safety related equipment such as parking lights, headlamps and taillights in low speed collisions."
However, NHTSA's standards for bumper system performance date back to the early 1980s- long before the widespread adoption of air bags and advanced materials designed to manage the energy in a collision to minimize the safety risk to occupants.
Keystone's crash test, announced February 15, is a step in the right direction. By conducting 35 mile per hour frontal impact to the former Federal Motor Vehicle Standard Number 208 (FMVSS 208) they have demonstrated, in the first phase of their testing regime, comparable performance to a standard for occupant safety.
FMVSS 208 is the federal standard for occupant protection that specifies vehicle crashworthiness requirements in terms of forces and accelerations measured on a variety of test dummies in crashes, and static airbag deployment tests. The test conducted for LKQ Corporation, Keystone's parent, by MGA followed the NHTSA, New Car Assessment Program (NCAP) test procedure for frontal impact, which is 5 mph greater than the speed required by FMVSS 208.
The results appear to take safety off of the table, at least in terms of the go/no-go situation of compliance with the minimum Federal standard. However, most vehicle manufacturer and the NCAP program seek to go beyond the minimum to provide five-star rated vehicles with a 10 percent or less chance of serious injury.
Does the use of the non-OEM replacement now mean that five-star rated vehicle has become a four-star vehicle with 11-20 percent chance of serious injury? Also, does using multiple non-OEM parts (bumper reinforcement, brackets, core support, etc.) have a multiplying effect?
As you can see the safety argument becomes complex. The test by Keystone does not gauge the bumper system's compliance with the NHTSA bumper standards themselves under NHTSA Title 49, Part 581, which gauge a bumper on its ability to protect the vehicle from damage in a low speed collision.
The Insurance Institute for Highway Safety (IIHS), the insurance industry supported scientific and educational organization dedicated to reducing the losses - deaths, injuries, and property damage - from crashes on the nation's highways, in its own Q & A dated November 2009 states that bumpers are important because, "Bumpers are supposed to keep damage away from safety-related equipment such as headlights and taillights and protect vehicle parts such as hoods, fenders, and exhaust and cooling systems that are expensive to repair. When bumpers are poorly designed, these car body parts sustain most of the damage in parking-lot collisions and other low-speed impacts."
More damage means higher repair costs which ultimately "raises the cost of insurance for everyone" as the insurance industry is wont to say.
While IIHS has not conducted crash tests on aftermarket bumper components, General Motors conducted two in late 2004 and early-2005.
In the 2005 test GM conducted on a 2001 Chevrolet Cavalier using the 2005 IIHS 5-mph rear-into-pole protocol, the vehicle equipped with the non-OEM bumper beam, energy absorber and fascia sustained $1570 more damage than the vehicle with OEM parts.
While some may prefer to be skeptical of GM's results, believing that OEM part sales was the primary motivation of the test and that it may have been skewed to support that result, critics have not provided any support for their contention or contradictory test results.
Questions remain.
The view of bumpers as mere "headlight protectors" may be outdated and vehicle manufacturers today may rely on bumpers as part of a systemic approach to crash energy management and occupant safety protection. Either way, it must be assumed that no manufacturer or vehicle owner wants their crash management systems redesigned by repairers, insurers and aftermarket parts manufacturers.
Not redesigning the vehicle has been a basic tenet of collision repairs since the late 1970s with the introduction of the unibody vehicle and the opportunities it posed for structural parts replacement and sectioning.
Regardless of regulatory or engineering changes, the simple measure of a replacement part, that it should be constructed of similar materials and have comparable performance, means that without documented testing, any non-OEM bumper reinforcement is suspect. The same holds true for items such as radiator core supports, bumper brackets and other structural items.
More importantly, this straightforward thought process provides a clear solution to the current morass in which the industry finds itself.
Repairers have a straightforward choice. Don't use parts that you haven't been assured by your suppliers, through proper testing and documentation, will duplicate the performance of the OEM part it is meant to replace. The fact that an insurer may have based its compensation on the price of a part of unknown quality doesn't give the shop the license to dispense with good sense.
Insurers must be consistent in their approach to promoting vehicle design for repairability with their estimating practices. The glaring irony of the insurance industry promoting, through its support of the IIHS, improved bumper performance in vehicle design, without demanding the same performance in aftermarket part designs specified during the claim process, is a contradiction that they must stop.
Insurers, who wholly support the IIHS and stand to benefit from the lower costs associated with aftermarket structural parts use, could easily add aftermarket structural part testing to the IIHS agenda.
Aftermarket parts manufacturers and suppliers must prove their parts credible. Bravo to Keystone for starting the aftermarket parts industry down this path. They and just as important other distributors and the parts manufacturers themselves must continue to further this effort to prove their products credible. Parts manufacturers and distributors can do their own testing to NHTSA and IIHS specifications for low speed impact to prove these parts do provide both the minimum performance prescribed by NHTSA and the more complex testing performed by IIHS.
A transparent, comprehensive part validation process, built around parts materials comparison and proof of performance through testing is the only way for parts manufacturers and distributors to assure skeptical repairers and insurers that its products are safe to use on customer vehicles and provide comparable safety and performance. Only when this testing regime is fully implemented and transparent to the industry and consumers, should the industry feel at ease in using aftermarket structural panels.
http://www.collisionweek.com/cw/news/2010/f0223-news.asp
Project Brings FEV into the Front End of Product Development
PR Newswire
AUBURN HILLS, Mich., Feb. 23 /PRNewswire/ -- FEV Inc., (FEV) a leading developer of advanced powertrain and vehicle technologies, announced today that it has completed the first phase of a project under contract to the United States Environmental Protection Agency (EPA) to determine manufacturing costs in the development and operation of fuel efficient, greener powertrain technologies. The program involved determining the incremental direct manufacturing costs for a set of advanced light-duty vehicle technologies. The study was also done in conjunction with Munro & Associates, a predictive engineering firm that subcontracted to FEV on the project.
"A fair question is whether there is a true understanding of the cost implications for these green technologies," said Gary Rogers, president and CEO of FEV, Inc. "Our work with the EPA will determine the realistic, long-term costs associated with these technologies based on specific, scientific costing methodology. It's the first step in determining whether these costs can be brought into line with what consumers will accept."
The technologies selected for cost analysis are on the leading edge for reducing emissions of greenhouse gases in the future, primarily in the form of CO2 emissions. Such emission reductions translate directly into fuel economy improvements.
For the project, FEV developed a methodology following EPA guidelines which would identify all cost elements such as material, labor, manufacturing burden, and mark-up, as well as allow for quick updates for sensitivity evaluations on key costing elements.
After selecting leading edge hardware for a selected technology configuration and vehicle class, the FEV/Munro project team conducted a detailed teardown analysis identifying all component differences between the new and baseline technology configurations, followed by a comprehensive cost analysis on the components that were identified as different as a result of the new technology adaptation.
The costing methodology is based on a ground-up approach, ensuring all levels of costs are captured. Using comprehensive databases for materials, labor, manufacturing, overhead, and mark-up costs, the overall cost to manufacture individual parts are calculated and summed into final results. For new technologies under development, FEV can now assist its customers to make design and manufacturing decisions that offer the greatest possible value. The costing approach ensures that costs are considered at all vehicle hardware levels:
• Component level: Crankshafts, Connecting Rods, Pistons, etc
• Assembly level: High Pressure Fuel Pumps, Turbochargers, Hydraulic Pumps, Electric Motors, High Voltage Batteries, etc
• Subsystem level: Engine Fuel Induction Subsystem, Engine Air Induction Subsystem, Battery Subsystems, etc.
• System Level: Engine Systems, Transmission Systems, Electrical Power Supply Systems, Electric Distribution and Controls System, etc.
This marks a departure from FEV's traditional services, which provides innovations to existing and future propulsion systems, including ICE, DDI, GDI and HEV propulsion.
"This provides an opportunity for FEV to illustrate its capabilities regarding developmental and operational costs of a powertrain project," said Rogers. "By determining the cost structure of the various leading edge technologies, we can then work with our customers to assess cost versus function tradeoffs as they develop their propulsion system strategies. The 'should cost' methodology FEV employs is also useful for purchasing departments as they negotiate prices with their suppliers."
About FEV
The FEV Group is an internationally recognized powertrain and vehicle engineering company that supplies the global transportation industry. FEV offers a complete range of engineering services, providing support across the globe to customers in the design, analysis, prototyping, powertrain and transmission development, as well as vehicle integration, calibration and homologation for advanced internal combustion gasoline-, diesel-, and alternative-fueled powertrains. FEV also designs, develops and prototypes advanced vehicle / powertrain electronic control systems and hybrid-electric engine concepts that address future emission and fuel economy standards. The FEV Test Systems division is a global supplier of advanced test cell, instrumentation and test equipment. The FEV Group employs a staff of over 1,800 highly skilled specialists at advanced technical centers on three continents. FEV, Inc. employs approximately 300 personnel at FEV's North American Technical Center in Auburn Hills, MI.
http://www.search-autoparts.com/searchautoparts/PR+Newswire/FEV-Inc-completes-EPA-funded-project-to-understand/ArticleNewsFeed/Article/detail/658330?contextCategoryId=48839
PR Newswire
YONKERS, N.Y., Feb. 23
Annual Auto Issue Names Best and Worst New-Car Best Values in Eight Categories
YONKERS, N.Y., Feb. 23 /PRNewswire-USNewswire/ -- The Honda Fit and the Toyota Prius topped the list of new-car best values according to Consumer Reports' 2010 Annual Auto Issue beating out more than 280 cars in eight categories.
The Honda Fit and the Toyota Prius each earned a value score of 2.08 and provided the best overall value despite being very different cars. Scores are expressed in relation to the value of the average vehicle (designated 1.00). A score of 2.00 represents twice the value of the average model.
While the Prius IV ($26,750) is more expensive than the Honda Fit ($16,020) and has a higher cost per mile (47 cents vs. 42), the Prius performed notably better in Consumer Reports' battery of road tests, earning a score of 80 versus the Fit's 68. Both cars have excellent reliability.
"A low price doesn't always equal a good value," said Rik Paul, automotive editor at Consumer Reports. "Our best value list can help consumers choose a car that will give them the best bang for the buck."
To determine which cars are the best values, Consumer Reports looked at a combination of performance, utility, and reliability for the money, considering total owner costs over the first five-years. The better a car performs in Consumer Reports' road tests and reliability Ratings and the less it costs to own, the greater its value.
Consumer Reports identified the best and worst values among the hundreds of vehicles it has tested in eight vehicle categories:
BEST VALUE WORST VALUE
Small Cars Honda Fit Chevrolet Aveo5 1LT
Family Cars Toyota Prius IV Dodge Avenger R/T (3.5, V6)
Wagons/Minivans Hyundai Elantra Touring Dodge Grand Caravan SXT (3.8)
Small SUVs Subaru Forester 2.5x Dodge Nitro SLT (3.7)
Midsized SUVs Hyundai Santa Fe Limited Wrangler Unlimited Sahara
Upscale Sedans Acura TSX (4-cyl.) Dodge Charger R/T (V8)
Luxury Sedans Infiniti M35 (RWD) Mercedes-Benz S550
Sporty Cars Mini Cooper Chrysler Sebring Convertible Limited
The full report on best and worst new-car values as well as testing notes, top picks, best and worst performers and Ratings of the car makers are included in the Consumer Reports Annual Auto Issue on newsstands beginning March 2 and online at www.ConsumerReports.org.
http://www.search-autoparts.com/searchautoparts/PR+Newswire/Honda-Fit-and-Toyota-Prius-top-Consumer-Reports-ne/ArticleNewsFeed/Article/detail/658295?contextCategoryId=48839
Mon, 22 Feb 2010
Americans drove 6.6 billion miles more in 2009 than the year before.
The latest government figures show that the number of miles driven in the US during the month of December were relatively flat over the prior year leaving the 12 month cumulative number of miles driven up 0.2 percent, or 6.6 billion vehicle miles, over 2008.
For December 2009, the Federal Highway Administration estimates the total vehicle-miles traveled (VMT) for the month to be 238.5 billion vehicle miles, a decrease of just 0.1 billion vehicle miles, or less than one tenth of a percent from December 2008.
Nationwide, Americans drove 2932.4 billion vehicle miles in all of 2009 according to the Federal Highway Administration.
On a regional basis, driving increased in all areas of the country except the south. Both the South Atlantic and the South Gulf regions saw driving declines.
The Northeast, which has generally been lagging the other regions, eked out a 0.6 percent increase while the West and the North Central regions both saw modest increases near one percent.
As we have been doing for the past several months, comparing the current driving recession recovery to the two prior major driving recessions (see related story below, When will Driving Return to Normal?), the recovery continues, but at an apparently slower pace.
The two prior periods used for comparison include the 1973 event lasting 20 months and losing 2.13 percent from the peak, and the 1979 event which eventually took 41 months to recover from a 3.24 percent decline.
According to the Energy Information Administration (EIA), the retail price of regular unleaded gasoline fell slightly from November to an average $260.7 per gallon in December. It would appear that gasoline prices have not played a major role in the success or failure of this driving recovery so far as they have hovered within a 10 cent range since June of 2009.
http://www.collisionweek.com/cw/news/2010/f0222-vmt.asp
Tue, 16 Feb 2010
CynCast, Inc. has developed and launched a new shop performance measuring system it calls the Shop Performance Value Rating (SPV Rating). Developed over the past year, in collaboration with collision repair organizations, insurers, I-CAR, Enterprise Rent-A-Car, Cal-State University and others in the industry, the rating system is intended to reduce the performance of a repair facility into a single, easy to understand performance score.
CynCast's approach to measuring collision repairer performance is the first of its kind in the industry. The concept behind the SPV Rating program is to provide a simple single value that blends different key performance indicator (KPI) values, many of which are already in use today. In addition to producing a single value, the group focused on creating standard definitions for each KPI value included in the calculation of the SPV Rating.
Said Doug Kelly, President & COO for CynCast, "The group felt it was really important to help repair shops understand their performance against other repair shops in their own market, while at the same time simplifying the current reporting that is in the market today. Repairers and insurers are inundated with too much information. It's been our goal to cut through the clutter and provide one independently verifiable number repairers and insurers can trust." Kelly went on to point out, "Of all the reports we've created over the years, the most successful was a simple two column report," adding, "And if two is good, one number is even better."
The SPV Rating program is comprised of the following key metrics:
• Severity - Repair cost, calculated by median and mean to balance work mix
• Cycle Time - Rental cycle time, as published by ERAC and others
• Estimate Accuracy - Supplement dollars over original estimate value
• CSI Net Promoter - Would vehicle owner recommend the repairer to family/friends
• I-CAR Status - I CAR Gold status and years of achievement
Management System - Recognized management system for increased data accuracy
Eddie Cheskis, CSO Gerber Collision & Glass is hopeful that the SPV Rating program will help facilitate greater transparency with Gerber's insurance clients, while simultaneously reducing the amount of management required both by Gerber and its insurance clients in the administration of various DRP relationships. Cheskis said, "Repairers are being measured against all sorts of conflicting and overlapping KPI measurements. Even when there is agreement on a KPI value, we've noticed differences in the way they are calculated between companies." Cheskis added, "The goal with this program is to have a shared definition of the KPIs as well as utilize Cyncast for independent, objective, verifiable measurement of them as a way to create verifiable trust and performance based relationships that provide sustainable value to our insurance clients, their policy holders, and Gerber. Simply put, it is about measuring the performance of providing timely, quality, cost effective repairs in a consumer friendly environment."
The standard SPV Rating measures a repair shop's performance against the overall market average performance in the MSA (Metropolitan Statistical Area) in which they compete. The methodology for the standard SPV Rating is consistent across all markets and all repair shops. The group also recognized that repairers and insurers need the ability to drill down further. This is where the SPVi Rating (a measurement of shop performance with a specific insurance company) and the SPVm Rating (a measurement of performance between collision shops based on a specific make of vehicles being repaired) come in.
The SPV Rating steering committee responsible for helping develop the SPV Rating program included Eddie Cheskis, CSO and Tim O'Day, President & COO from Gerber Collision & Glass; Rex Dunn, CEO True2Form Collision; Mike Quinn, CEO 911 Collision Centers; Paul Kraus, CEO Craftsman Auto Body; Chris Pohanka, VP Operations, Pohanka Collision; Dave Smith, VP Technology Solutions, Enterprise Rent-A-Car; Erick Bickett, CEO Fix Auto; John Edelen, CEO I-CAR; Rollie Benjamin, CEO and Tim Adelmann, Executive VP, ABRA Auto Body and Glass; Scott Wendel, Auto Physical Damage Manager, Amica and Randy Hamlin, Professor, California State University, Fullerton.
http://www.collisionweek.com/cw/news/2010/0216-cyn.asp
Written by staff Monday, 15 February 2010
Distracted driving is an attention problem not a manual operation problem, so it’s no surprise to many that laws banning the use of hand-held phones while driving have failed to reduce crashes, according to research conducted by the Highway Loss Data Institute.
HLDI, an affiliate of the Insurance Institute for Highway Safety (IIHS), said its findings were based on a comparison of crash damage insurance claim rates in four U.S. jurisdictions before and after the phone use bans. The research showed claim rates remained steady compared with nearby jurisdictions that have not passed such bans.
“The laws aren’t reducing crashes, even though we know that such laws have reduced hand-held phone use, and several studies have established that phoning while driving increases crash risk,” said Adrian Lund, president of the IIHS and HLDI.
In New York, HLDI noted, there was a decrease in collision claim frequencies relative to comparison states, but that trend began “well before the state’s ban took effect.” HLDI added that trends in the District of Columbia, Connecticut and California did not change.
Mr. Lund said, “So the new findings don’t match what we already know about the risk of phoning and texting while driving. If crash risk increases with phone use and fewer drivers use phones where it’s illegal to do so, we would expect to see a decrease in crashes. But we aren’t seeing it. Nor do we see collision claim increases before the phone bans took effect.
“This is surprising, too, given what we know about the growing use of cell phones and the risk of phoning while driving. We’re currently gathering data to figure out this mismatch.”
Mr. Lund said a possible reason for the finding may be that drivers are switching to hands-free phones, which presents about the same risk as hand-held phones.
“Whatever the reason,” he said, “the key finding is that crashes aren’t going down where hand-held phone use has been banned. This finding doesn’t auger well for any safety payoff from all the new laws that ban phone use and texting while driving.”
http://www.autobodynews.com/industry-news/hand-held-cell-phone-bans-not-reducing-crashes.html
Fri, 12 Feb 2010
Model Act addresses certified crash parts, and insurance responsibilities when specifying aftermarket parts.
The National Conference of Insurance Legislators (NCOIL) has scheduled two sessions during its upcoming meeting in South Carolina to consider a pair of model bills directly related to the collision repair industry.
On the first day of the meeting, Friday, March 5, the Property Casualty Insurance Committee of NCOIL will consider the Proposed Aftermarket Crash Parts Model Act, a measure that has been opposed by repairer organizations for several provisions contained in the model.
The Automotive Service Association (ASA) had actively opposed the model when it was last raised for consideration by NCOIL. ASA identified several key provisions of the bill as harmful to the automotive repair industry, chief among them the language deeming certified aftermarket crash parts to be equivalent to OEM parts.
Last summer, Harry Moppert, owner of Moppert Brothers Collision Services Group in Morton, Pennsylvania, submitted testimony on behalf of ASA. Moppert testified that, "Aftermarket crash parts, certified or not, do not assure consumers or repairers that they are equal to OEM. The quality and safety requirements, particularly for offshore parts, may or may not be evident for certified aftermarket parts. Parts certification in the U.S. has been very limited in scope. With 3 percent or less of the aftermarket parts being certified, there is little assurance from any data on quality and safety that can be gleaned for policy discussions."
The bill also addresses consumer disclosure and consent, parts manufacturer identification and insurers' responsibilities when specifying aftermarket crash parts.
The current version of the model also addresses insurer steering in a section that proposes restrictions on insurer referrals in order to promote consumer choice. The model states, "the insurer shall not, unless expressly requested by the insured, recommend or suggest repairs be made to such vehicle in a particular place or shop or by a particular concern." That language is based on New York law. Committee members may consider other state alternatives, such as laws in Rhode Island and Virginia, as possible substitute language.
During conference calls in October to develop the parts model, legislators discussed separating out the steering section into a new stand-alone bill. The Proposed Auto Body Steering Model Act is now on the agenda to be considered by the Property Casualty Insurance Committee during a second session on Saturday, March 6 in South Carolina.
This is not the first time NCOIL has attempted the adoption of crash parts legislation. A prior attempt ended in 2005 when, after 10 years of committee meetings and testimony, the Property-Casualty Insurance Committee voted to adopt a crash parts resolution instead.
That resolution stated in part that NCOIL endorses the use of all kinds of crash parts when appropriate for motor vehicle repair. NCOIL also stated in this resolution that it supports consumer awareness of the differences between types of crash parts, and believes that if an insurer requires, as a condition of reimbursement, the use of a certain type of crash part, then that insurer should stand behind the part it requires.
The Committee had planned to review the crash parts model law at the November NCOIL Annual Meeting, but due to the amount of time spent on consideration of the airbag fraud bill approved at that meeting, legislators deferred their consideration until the spring.
http://www.collisionweek.com/cw/news/2010/f0212-aft.asp
Wed, 10 Feb 2010
Another top national insurer officially suspends the use of aftermarket structural parts until their safety can be established.
MetLife Auto & Home, one of the top 15 private passenger auto insurers in the US, confirmed on Tuesday that the company has suspended the use of aftermarket parts for the replacement of safety related components on all estimates prepared "by or for MetLife claims."
In an official communication on Feb. 5 from MetLife Auto & Home to collision repair facilities in the company's Guaranteed Repair Program, Doug Irish, National GRP Administrator, notified the shops of the policy change. "Effective today and until further notice MetLife is suspending the use of aftermarket steel bumpers, bumper reinforcements, energy absorbers, brackets and radiator support. Company policy will be the use of OEM or recycled OEM parts," the communication stated.
The five categories of parts suspended by MetLife are identical to those categories identified by the Auto Body Parts Association (ABPA) as structural parts in its January 25 statement where the ABPA recommended the discontinuation of the production and sale of these part types as well as immediate notification to the estimating systems to eliminate these parts from their parts databases.
The MetLife communication said that the insurer was working with CCC Information Systems to update all of its estimating rule sets to reflect the policy change.
MetLife said, "The concern being put forth is the possibility of compromising the integrity of the safety restraint system." And, "While we are not aware of any circumstances or problems with any of the noted parts, we have decided to revise our policy [until] additional analysis and study are completed."
The company noted that it may return to its aftermarket parts utilization guidelines if/when any safety concerns are settled.
Geico and Esurance both made similar policy changes in late January.
http://www.collisionweek.com/cw/news/2010/f0210-met.asp
Written by MSNBC Friday, 05 February 2010
The U.S. auto industry rebounded from last January's sales collapse with one big exception: Toyota, which lost an estimated 20,000 sales after it stopped selling eight models because of defective gas pedals.
Last month, U.S. sales of cars and light trucks to consumers rose 6 percent from a year earlier, thanks to increases in fleet sales and strong demand for newly redesigned vehicles such as the Hyundai Tucson SUV and Buick Lacrosse sedan. Big winners included General Motors Co., Ford Motor Co., Nissan Motor Co. and Hyundai Motor Co., which all posted double-digit sales increases.
http://www.autobodynews.com/automaker-news/gm-ford-may-be-benefiting-from-toyota-woes.html
Written by I-CAR news release Thursday, 04 February 2010 I-CAR, The Inter-Industry Conference on Auto Collision Repair, has announced that it will premiere its new course, Advanced Material Damage Analysis (DAM08), on March 1. The course offers students training on how advanced materials affect collision energy management along with understanding the necessary repair considerations for such materials.
“This course was developed for anyone in the estimating or appraisal process and is an excellent course for industry professionals who may not have significant training on advanced high-strength steel," says Jeff Peevy, I-CAR director of Field Operations, who adds that interest in damage analysis for advanced materials continues to increase as vehicle manufacturers have been using a growing number of different materials that all contribute to vehicle safety, reduced vehicle structure weight, and improved fuel efficiency.
The Advanced Material Damage Analysis (DAM08) course will help students:
• Identify advanced materials used for vehicle construction and describe their characteristics and applications
• Explain how advanced vehicle construction materials affect collision energy management
• Understand damage analysis considerations for advanced materials
• Make repair vs. replace decisions for specific advanced materials and understand general damage analysis considerations
• Describe the effects of heat and straightening on different advanced materials
• Explain advanced materials recycled parts considerations, joining methods, corrosion protection, and refinishing considerations
Registration is currently open for classes available now for Advanced Material Damage Analysis, and new classes are being added to I-CAR’s schedules daily. Information on classes scheduled in your area can be found on the I-CAR web site at www.i-car.com through the class search feature or by contacting I-CAR Customer Care at (800) 422-7872.
http://www.autobodynews.com/industry-news/i-car-launches-advanced-material-damage-analysis-course.html
Wed, 03 Feb 2010
Parts patent protection, aftermarket parts and DRP program requirements all received much attention in Palm Springs.
Much of the discussion at the most recent Collision Industry Conference (CIC), held in Palm Springs, Calif., could be categorized in one of two broad subject areas: issues related to non-OEM parts, and issues related to shop-insurer interactions.
The CIC Trade Practices Committee, for example, shared a draft of its latest set of five proposals the committee will discuss and edit over the coming months. Like the previous set of five proposals finalized last year, this year's proposals focus on changes to how shops and insurers interact.
As initially drafted, for example, one calls on insurers to not collect any shop-produced data without disclosing what is being collected and how it will be used, and making sharing of such data voluntary rather a required part of a direct repair program. Another calls for shops and insurers to cooperate in the creation and acceptance of repair standards. Another seeks to put an end to the practice of insurers requiring a shop to buy any product or service from a particular vendor as a DRP participation requirement.
The meeting also demonstrated what lies ahead for such proposals. Once the Trade Practice Committee completed its work on the first five proposals last year, it passed them to the CIC Insurer-Repairer Relations Committee. That group held a panel discussion in Palm Springs to gauge industry acceptance of such proposals.
That discussion focused on two of the first five proposals, the first of which calls for insurers to make available their DRP agreement guidelines and key performance metrics, and to "publish the intended field application of the program's policies, guidelines and metrics, along with a process for handling potential misunderstandings or deviations from company policy."
The idea got a mixed reception from insurers on the panel. Randy Hanson of Allstate said his company includes a copy of its direct repair program contract on its website. Michael Lloyd of California Casualty said his company already makes standard operating procedures available to its direct repair shops through its website.
"But as far as posting that (DRP) agreement to everyone, that's not going to happen," Lloyd said. "Hopefully our agreements give us some kind of competitive advantage. I guess that would be the main reason I just don't see it happening."
But several shop representatives on the panel said the actual terms of the DRP contracts are not as much the issue as in-the-field policies and procedures being interpreted or implemented differently by staff even within the same insurance company.
"When we believe there's a deviation in the field, when a policy is being applied differently than, as I understand, corporate intended it, where do we go to bring that to somebody's attention, to have some resolution of the issue," Bill Lawrence of LC Automotive Group asked the insurers on the panel.
Joe Lacy of GEICO said in those instances a shop should contact a supervisor for a clarification. Lloyd said his company could be willing to put together some "generic guidelines of how we do business" but would want more input from the committee as to what topics should be covered. Hanson said he understand shops are sometimes hesitant to move up the chain of command because of possible reprisals. But he balked at the idea of some way to submit concerns anonymously or through a third-party or "hotline," saying it "complicates the resolution" and often lacks enough detailed information to be "actionable."
If a problem involves some sort of fraud - such as an insurance company employee seeking some of pay-off - repairers should contact the corporate security department at that company, several of the panelists said.
Several other segments of the CIC meeting in Palm Springs centered on issues involving non-OEM parts. For the second CIC in a row, industry trainer Toby Chess brought some non-OEM parts to the meeting to show some significant differences between them and the OEM parts they were designed to replace. (See separate related coverage below)
The demonstrations led non-OEM parts distributor LKQ Corp. to announce at CIC that it had halted the sale of its lower-cost "Value Line" non-OEM bumper reinforcement bars pending testing or certification, although it was still selling its higher-line of such parts that had met its own in-house testing standards.
Also at the meeting, Ford Motor Company responded to a presentation at the previous CIC in which its price increases for parts covered under its design patents were criticized. Dan Morrissey, a board member of the Automotive Body Parts Association, had argued in November that allowing automakers to obtain design patents on parts eliminates competition and results in higher OEM parts prices, and he used a chart that he said showed that prices for seven parts covered under Ford's F-150 patent rose 20 to 81 percent from 2007 until November 2008.
At CIC in Palm Springs, Paul Massie, powertrain and collision product marketing manager for Ford, acknowledged that some of the parts had "fairly substantial price increases percentage-wise," but pointed out that others covered under the patent (but not cited in the previous presentation) had gone down.
He also used a chart to compare prices changes in twelve F-150 parts (including left- and right-side parts, and 2- and 4-wheel drive versions) covered under the parts patent to changes in the average price of corresponding non-OEM parts over the same period. That showed prices for the Ford parts rose 9.3 percent while the non-OEM parts prices rose 19.1 percent.
http://www.collisionweek.com/cw/news/2010/f0203-cic.asp
By John Yoswick
placed Mon, Feb 1st, 2010
Did you meet last month’s deadline to file a special notification with the federal Environmental Protection Agency (EPA) or your local environmental agency?
The notification is the first of several deadlines for collision repair shops under a new EPA automotive refinishing and stripping regulation. The complete compliance deadline is March 2011.
Here’s a primer on what shops and their suppliers need to understand about the new regulation.
What’s required
The new regulation is a result of the Clean Air Act of 1990, which requires the EPA to identify sources that emit one or more of the 188 listed toxic air pollutants. Specifically included in the regulation are stricter requirements for “area sources” engaged in paint stripping or various surface coating operations, including autobody refinishing.
Area sources affected by the rule will need to implement equipment and management practices to comply with the new standards, if they have not already done so. But the practices are designed to reduce overall toxic material consumption, which generally results in a savings to the business as well.
The regulation places a number of requirements on collision repair shops. In terms of training, shops will be responsible for ensuring all painters have completed hands-on training in the proper application of surface coatings. The training must cover specific items such as spray gun setup, surface prep, spray booth and filter maintenance, transfer efficiency, and environmental compliance. Painters must be certified (the shop owner “certifies” the training was received) within 180 days of hire and recertified every five years.
In terms of equipment, all painting of vehicles must be done in a spray booth (or, in the case of painting of some vehicle parts, a prep station) that meets the regulation’s requirements. The booth, for example, must be fully enclosed with four complete walls and a full roof, and use a filter system fitted with polyester fiber or fiberglass filters (or the equivalent) that capture at least 98 percent of paint overspray. Compliance for spray booth filter efficiency can be satisfied through data provided by the filter manufacturer.
Prep stations must have a full roof, at least three complete walls or complete side curtains, and must be ventilated so that air is drawn into the booth.
The regulation also requires that all spraying of coatings be done with a high-volume, low-pressure (HVLP) spray gun (or in some way that has an equivalent transfer efficiency).
All paint spray gun cleaning must be done either with solvents that do not contain the hazardous air pollutants, or within a fully enclosed spray gun cleaner. Hand cleaning of parts with solvent is permitted but spraying solvent through the gun is prohibited.
By January 10, 2010, shops were to submit an initial notification stating whether they already are in compliance with the requirements or that they plan to be in compliance by the required date.
Any shop indicating it is not yet in compliance must report by January 2011 that they will be in compliance by March 2011. Annual compliance reports will need to be submitted only if there is a change in any of the initial notification information.
While there are no federal fees involved in the new regulation, state environmental agencies in some cases have enacted stricter requirements or, more commonly, made the registration and federal requirements part of a local or state permitting process. This permit may involve a fee to the state agency.
Exempting yourself?
Are any collision repair operations exempt from compliance with the regulation? There are exemptions for “hobbyists,” but if you spray more than two of your own cars, or even one car in exchange for compensation, you are subject to the regulation. Much to the chagrin of many in the industry, scratch-and-dent operators can still spray in the open provided they are using a spray cup that holds three ounces or less.
Collision repair shops that also use no spray products (for painting or stripping) that contain the five heavy metals (cadmium, chromium, lead, manganese, and nickel) targeted in the regulation could also be exempted. Whether this is a good approach was a matter of some debate during NACE-week meetings in Las Vegas last November.
During the Collision Industry Conference (CIC), for example, I-CAR regional Manager Gene Lopez said that though the paint companies have removed or are removing the heavy metals from their products (yellow and orange toners, for example, have often contained lead), shops may have older or other hazard-containing products that could show up in any subsequent testing of booth filters.
“You had better be ready for an inspection, because saying ‘We’re exempt,’ is probably the biggest red flag you can send up to the EPA to say, ‘You had better go check these guys out,’” Lopez said. “To me, the exemption is not the answer. It’s too easy to comply.”
But just a day later at a Society of Collision Repair Specialists’ open board meeting, Tony Pendola of the North Carolina Small Business Environmental Assistance Program, said that although collision repair shops are “guilty until proven innocent as far as the EPA is concerned with this rule,” they shouldn’t rule out going for an exemption.
“Just like there are exemptions to the tax laws, there are exemptions to this, and I don’t fault you if you use them,” Pendola said. “They were put in the rule for a reason. Take advantage of them. Some shops are just going to say, ‘We’ve got the booth. We’ve got all this stuff. We’ll just go ahead and be subject (to the regulation).’ If it were me, I’d rather not be subject (to the regulation) and still do all the right things.”
What enforcement of the regulation will look like is anyone’s guess. But speaking at a joint press conference with Holly Wilson, who is leading the EPA’s collision repair campaign, The Automotive Service Association's (ASA’s) Ron Pyle called for serious and public enforcement.
“In front of all of you today, I’m going to encourage Holly to conduct sting operations,” Pyle said, saying that such efforts enforcing other automotive environmental regulations in the past have been “visible and well-publicized activities that put the fear in the general repair marketplace that this can happen to you if you don’t comply.”
EPA offers help with new reguirements
The EPA says there are many sources of help available for shops looking for more information about complying with the new requirements.
Those sources include:
- The EPA’s “Collision Repair Campaign” website (www.epa.gov/collisionrepair), which offers a summary of the regulation, a 19-minute video featuring NASCAR driver Jeff Gordon, and information on free workshops about the rule throughout the country.
- I-CAR (www.i-car.com) offers an hour-long online training course explaining the regulation and the products that fall under it, as well as tips and techniques for reducing the amount of hazardous products used.
- The EPA has “Small Business Complaints Assistance Programs” (www.epa.gov/smallbusiness) in most states with staffs that offer confidential, non-regulatory help for business owners working to comply with environmental regulations.
http://www.partsandpeople.com/National/articles/view/5081
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