Midwest
Midwest May 2012
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Automotive Counseling & Publishing Co. Inc. Parts & People Midwest Office 1715 1/2 W. 39th St., Suite 201 • Kansas City, MO 64111
MIDWEST EDITION
Serving Missouri, Kansas, Nebraska & Iowa
Online Edition at www.partsandpeople.com Volume 21 Number 5 May 2012 COLLISION REPAIR
Pages 15-19 C1-C4
Excelsior Springs shop owner invests in
Rural Kansas repair shop finds niche as tire specialist, increases services
PDR tools, expands restoration work .15 by Matthew Sevart Service, Koons said general With a mild winter across the Hillsboro, Kan.—“We are service work is increasing. Midwest, Chris Jones, owner a society that thrives on “We’ve really extended into the of Jones Custom & Collision, has increased his intake of instant gratification,” said service side to fulfill the restoration work to make up Rod Koons, owner of Rod’s customers’ needs,” said Koons, for the lack of insurance jobs. Tire & Service. “If a customer who works primarily with Collision Repair Training Notes . . . .16 has to wait until tomorrow, all CARQUEST for his aftermarket I have done is given them a parts. “It’s a very good profit Automakers increasingly turn to I-CAR chance to take their car center for us. It ties right together for training, certification programs . C-2 As automakers open up their collision shop elsewhere.” with the tire work, and it certification programs to independent shops For Koons, meeting his financially represents 25 percent as well as dealers, they are increasingly customers’ immediate needs of our business.” making I-CAR training part of the program requirements. means maintaining a millionA business is only as efficient as dollar tire inventory of the tools and equipment it utilizes, Rod Koons, owner of Rod’s Tire & Service, has consistently Essentials shops should understand passenger, truck, lawn, and expanded his business since he opened in 1999. In 2011, he and Koons said that he is a firm about DRP contracts before signing . 17 sold nearly 8,000 new tires, 1,500 used tires, and says he is What should shops be looking for and farm applications at his believer in investing in the right on track to do $4 million in sales for 2012. thinking about when presented with a new facility located in rural tool for the job. or revised direct repair agreement? And Kansas, 60 miles north of Wichita. “We’ll do $4 million in business this His major tire and undercar equipment what are their options if they don’t like some “Our theory on inventory is you can’t year,” said Koons, adding that he sold includes a Hunter Hawkeye Alignment of the terms being offered? sell it if you don’t have it,” he said. nearly 8,000 new tires and 1,500 used machine, Corghi, Ammco-Coats, and Midwest Auto Body Trade Show draws “Having the tire in stock allows us to ask, tires in 2011. “Our goal, from when we Hunter tire machines, two Hunter Road 450 collision industry professionals . 19 ‘Can we put those on today for you?’ It’s started, is for people to think of Rod’s Continued on page 20 a yes-or-no question.” Tire & Service when they think tires ONLINE Koons is a Bridgestone-Firestone direct because we can take care of their needs.” More photos and INSIDE Parts & People articles at dealer, as well as a Goodyear G3X dealer, Koons said he plans for a 25 to 30 partsandpeople.com More than 13,700 circulated from which he receives weekly shipments percent profit margin on passenger and Energy Suspension perfects Auto Notes . . . . . . . . . . . . . . . . . . . . . 10 to maintain his inventory. light truck tires, and 12 to 15 percent on Despite high fuel prices, almost every auto polyurethane parts for cars and trucks . 3 Business has steadily grown since tractor trailer tires. Energy Suspension literally invented and truck manufacturer had an exceptional Koons opened the shop in 1999 with his While tire-related business represents polyurethane bushings and suspension first quarter. components for cars and trucks three wife and business partner, Carrie Koons. the lion’s share of work at Rod’s Tire &
decades ago. MW/C
New MATR officers weigh in on association goals and challenges . . . 3
Being a ‘million-dollar shop’ means being a ‘yes’ company . . . . . . . . . . . . 11
Acquiring quality salvage, continuing to be proactive legislatively, and building membership top the list of challenges and goals for newly elected Missouri Auto & Truck Recyclers Association (MATR) officers.
Iowa recycler adapts to industry trends, urges more industry involvement . . . . 7
Greg Sands, owner of 24 Service Street repair shops and direct-mail company Mudlick Mail, offers strategies on increasing business.
Undercar Product Notes . . . . . . . . . . 22 Knowing customer base, competition helps shops advertise effectively . . . 23 Cooper’s Keys to Auto Repair Profits . 27 People & Places . . . . . . . . . . . . . . . . . 28 Vision exhibitors showcase their latest tools, equipment, and services . . . . . 31
Mike Swift, co-owner of Trails End Auto and Truck Salvage, discusses the state of the recycling industry and the importance of collaboration.
Automotive Recycling & “Green” Practices / Undercar Maintenance & Repair Focus Issue
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Automotive Recycling & “Green” Practices / Undercar Maintenance & Repair Focus Issue
Energy Suspension continues to perfect polyurethane parts for cars and trucks
by Dick DeLoach San Clemente, Calif.—Nearly 30 years ago, lifelong car enthusiast and inventor Don Bunker founded Energy Suspension (ES), makers of polyurethane bushings and suspension components, but his involvement in the automobile industry goes back long before that. “When I was five years old, I was working at my dad Paul’s repair service garage in Cedar Energy Suspension founder Don Bunker, Rapids, Iowa,” whose company Bunker said. “I makes automotive suspension bushings remember thinking at the time that I and components, says he started out was just like my making polyurethane dad. I had a rag in skateboard truck my back pocket pads in 1968. and the dirtier my hands would get, the happier I was. So cars and trucks have been in my life ever since.” An avid skateboarder in his youth, Bunker said he began making polyurethane wheels and the first polyurethane amaze even the people who “truck” cushions (pads) for work with it every day, skateboards in 1968. “But my adding that “it’s as much an love for fast cars has always art as it is a science.” been with me, so I investigated Taeger said the complex making polyurethane for the and diverse nature of Energy auto industry to replace the Suspension’s proprietary rubber components with material requires its chemists specially formulated to constantly dedicate their polyurethane,” he said. “That attention to development. was 29 years ago, when Energy “This devotion has produced Suspension was born.” the quality components that Mike Papazian, national sales our customers continue to manager/performance division at demand,” he said. “Our ES, said if you mention policy of manufacturing inpolyurethane in an automotiveThe Energy Suspension management team includes, from l., Austin house from the initial R&D aftermarket context today, the stages to chemical Squires, Kevin Taeger, Mike Papazian, Pauline Babic, and Mike Santa Cruz. company that will most likely formulation, molding, and come to mind is Energy Suspension. “If a “Our Hyper-Flex bushings are made final packaging gives us control of every vehicle is equipped with performance from a polyurethane formula that has been aspect of the manufacturing process,” suspension bushings, chances are good that tweaked to perfection over the years,” Taeger said. “This gives us the ability to the bushings have our logo stamped on Papazian said. “Urethane is stronger and produce a genuine American-made product them,” he said. stiffer than rubber, plus it is resistant to and gives our customers absolute Bunker’s initial decision to specialize petroleum products like smog, ozone, gas, confidence in the Energy Suspension exclusively in polyurethane has established and oil. So it won’t break down and crack name.” ES as the most asked-for name in like rubber components.” The company’s involvement doesn’t performance polyurethane components Kevin Taeger, ES’ sales manager/OE Continued on page 6 today, Papazian said. division, said polyurethane continues to
New MATR officers weigh in on association goals and challenges
by Rob Merwin depressed economy, said MATR Jefferson City, Mo.—Acquiring quality President Brad Schwartz, of Liberty Auto salvage, continuing to be proactive Salvage in St. Louis, who assumed the legislatively, and building membership office from Dan Richardson, now MATR top the list of challenges and goals for past president, of Rich Industries in Kansas newly elected Missouri Auto & Truck City. “The ripples affect us through Recyclers Association (MATR) officers. changes within the insurance companies, MATR Secretary Joseph Heiman, of cost of salvage, competition from sister Al’s Foreign Auto Salvage in St. Louis, industries, and bills introduced in the said there are a number of complications Missouri legislature,” Schwartz said. in purchasing quality salvage vehicles, including out-ofcountry buyers with larger budgets and unregulated usedcar buyers purchasing salvage vehicles to repair and sell. MATR has just begun a newsletter for members, which “Many of these buyers examines legislative concerns, as well as highlighting current events and the state of the association. dispose of waste and biproducts improperly, which allows them He said the global market now accounts to have lower production costs and, for approximately 40 percent of salvage consequently, more to spend on salvage sold at insurance auctions. Among the vehicles,” he said. “I think it’s important proposed bills that often circulate through to report such violations and have MATR the Missouri legislature, and which relate work with enforcement to regulate these directly to the industry, are ones that buyers and level the playing field. The involve opening the insurance auction changing rules of bi-product disposal, the pools to the public, restrictions or changes rising cost of inventory, and the constant on titling vehicles, environmental issues, battle for accurate parts grading all and scrap metals, Schwartz said. present challenges we can help each other MATR Treasurer Ron Smith, of overcome.” Hillsdale Auto Parts in St. Louis, said Another challenge is adapting to a “state representatives and senators need to be educated on how the industry works,” The MATR board is also holding and MATR members “need to be informed conference calls for board members once on what’s going on at the state capitol.” every two or three months to discuss the Heiman said MATR has worked in the issues affecting the industry, Schwartz said. past to prevent individuals from purchasing “Our most recent topic dealt with a vehicles at salvage auctions. “I believe proposed bill regarding abandoned vehicles those actions have helped all our members and their titling requirements.” on a day-to-day basis, All officers said more than some would increased MATR “ … The rising cost of realize. I do, however, membership was a think the insurance inventory and the constant shared goal. auctions will again “I would love to battle for accurate parts push the issue and I be able to grow grading all present trust MATR will be active ready.” He said he challenges we can help each membership,” questions SB No. 633, Heiman said. “I other overcome.” which he said might think that MATR lead to future was such a great complications and “has me concerned association and could be again when we mainly because it will allow the sale of a motivate membership.” 10-year-old scrap vehicle to a crusher Smith said he hopes that in his new without a title.” position he can increase membership, both Smith added that recyclers can also meet regular and associate, through the some of those challenges by adjusting their newsletter and informing salvage dealers businesses to match the vehicles they can of MATR benefits. n buy. MATR has just begun a newsletter for Editor’s note: MATR Vice President members, which examines legislative Dean Yancey was unavailable for concerns, as well as highlighting current comment. events and the state of the association, Heiman said.
Parts & People
May 2012
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Parts & People
The Monthly Regional Publication For Midwest Automotive Specialists
Volume 21 / Number 5, May 2012 Publisher: Lance Buchner Associate Publisher: Michael Anderson Managing Editor: Rob Merwin Midwest Regional Manager: Matthew Sevart Contributors: John Yoswick, Dick DeLoach, Jerold B. Smith Graphic Arts Director: Mario Waller Printer: Tribune Publishing Co. Inc. Parts & People is published monthly by Automotive Counseling & Publishing Company, Inc., a Colorado corporation. ISSN 1083-771Z Midwest Edition offices 1715 1/2 W. 39th St. Suite 201 Kansas City, MO 64111 Phone: 816-960-4511, Toll Free: 888-600-2418 matt.sevart@partsandpeople.com Corporate Office Automotive Counseling & Publishing Co., Inc. PO Box 18731, Denver, Colorado 80218-7310 800-530-8557 President/Publisher: Lance Buchner National Sales Director & Associate Publisher: Michael Anderson Director of Sales Development and Marketing: Art Wolfe Founded by Lance Buchner and Dave Lucia. www.partsandpeople.com Office Manager: Amanda Buchner Web and Production Manager: James Faust Circulation: Tracy Buchner, tracy@partsandpeople.com Subscriptions are free to all automotive-related Midwest regional business owners and managers; $36 per year, per edition to all others. For mail renewals or change of address, please include mailing label. Reproduction of any of the contents of this publication by any means is prohibited without specific written permission of the publisher. Copyright 2012, Automotive Counseling & Publishing Company, Inc. All rights reserved.
Publisher’s Statement
Supplier sentiments positive
The Aftermarket Supplier Sentiment Index for the first quarter of 2012 registered the most positive supplier sentiment since 2010, according to the Automotive Aftermarket Suppliers Association (AASA) in its “Aftermarket Supplier Barometer.” The outlook for the future became significantly more positive in the first quarter. “Sales increased, gross margins improved slightly and hiring was up,” said Steve Handschuh, president and COO of AASA. “Inventory and capacity additions were stable quarter-overquarter, firmly in the positive territory.” Surprisingly, concerns regarding raw material costs and world economic conditions have declined, according to the report.
Gas prices
weakening currency in relation to commodities and, more specifically, oil? When the dollar is proclaimed to be strong and strengthening, it is being compared to collapsing currencies in Europe and Japan, where international finance and banking malfeasance also took its toll. Are we just being price-gouged?
Fuel economy contributes to increasing pace of new car sales
As gasoline prices crossed the $4-per-gallon price in select states in early April, and AAA reported a national average of gasoline prices at $3.92 per gallon, many wonder what the effects will be. Considering how much the American consumer is affected by the cost of gas at the pump and how it affects the economy and the prices of goods and services, it is troubling to witness such upward volatility. The rise in gas prices is no longer just a supply-and-demand determination. World oil consumption is down in Europe, China, and the U.S. Domestic production reportedly covers 80 percent of U.S. consumption as the U.S becomes an exporter of oil. When overly centralized insiders control two-thirds of oil futures, the pricing is suspect. Financial speculators historically accounted for about 30 percent of oil contracts. Today, speculators account for 64 percent, according to the Commodities Futures Trading Commission. Beyond unregulated speculation, however, lies a new and unfamiliar concern. Are gas prices rising because of our
Higher gas prices are one reason why Americans are buying more fuel-efficient vehicles, according to a study released by the University of Michigan Transportation Research Institute in mid-April and reported upon by the Detroit Free Press. The report stated that fuel economy estimates of all new vehicles sold in the U.S. has topped 24 miles per gallon for the first time. The fuel efficiency of vehicles sold in March is now 20 percent — or 4 MPG — higher than in October 2007, when the University of Michigan began monitoring and reporting. General Motors Co. reported that its 12 vehicles getting 30 MPG or better on the highway had combined sales of 100,000 for March, its highest monthly total of such vehicles ever sold. The economy is being rebuilt on the surging sales of the auto industry. Reports now indicate that one in ten new jobs in America are auto-industry-related.
Tire back orders rolling and filled
Last year, back orders for popular tires soared as the percentage of fill dropped dramatically. With increased tire manufacturing capacity comes a new and significant supply of tires to the U.S. this year. Look for retail sales promotions and competitive pricing to proliferate this summer. With tire sales rebounding, associated parts and service business should also drive undercar parts sales this year. n
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Only 35 percent of hybrid owners buying hybrids again, according to Polk
Southfield, Mich.—While the selection of hybrid models in the U.S. has more than doubled since 2007, only 35 percent of hybrid vehicle owners chose to purchase a hybrid again when returning to market in 2011, according to recent analysis by Polk. If repurchase behavior among the highvolume audience of Toyota Prius owners isn’t factored in, hybrid loyalty drops to less than 25 percent. However, hybrid owners appear to maintain brand loyalty when returning to the new-car market. For example, in 2011, 60 percent of Toyota hybrid owners returned to the market to purchase another Toyota, according to Polk, while 41 percent of them purchased another hybrid from any brand. In the case of Honda hybrid owners, more than 52 percent of them stayed with the Honda brand, while just less than 20 percent of this same owner group bought another hybrid vehicle from any brand. “Having a hybrid in the product lineup can certainly give a brand a competitive edge when it comes to attracting new customers,” said Brad Smith, director of Polk’s Loyalty Management Practice. “The repurchase rates of hybrid vehicles are an indication that consumers are continuing to seek alternative solutions to high fuel prices.” Online cross-shopping data from Edmunds.com indicates that consumers are doing their due diligence to compare hybrids with similar gasoline-powered vehicles. As an example, the Honda Civic is the second most cross-shopped vehicle among both Toyota Prius and Honda Insight shoppers. Hybrid vehicles represent just 2.4 percent of the overall new-vehicle market in the U.S., according to Polk, down from a high of 2.9 percent in 2008. “The lineup of alternate drive vehicles and their premium price points just aren’t appealing enough to consumers to give the segment the momentum it once anticipated, especially given the growing strength of fuel economy among compact and midsize competitors,” according to Lacey Plache, Edmunds.com chief economist. “For EVs and PHEVs in particular, certain obstacles — including consumer unease with unfamiliar technology and the lack of an adequate recharging infrastructure — will need to be overcome before sales increase.” Polk’s research also indicates that volatility in fuel prices between 2008 and 2011, which ranged from just under $2.00/gallon to nearly $4.00/gallon, had little impact on hybrid segment loyalty. n
KNOW HOW
Aftermarket supplier sentiment is most positive since 2010
Research Triangle Park, N.C.—The Aftermarket Supplier Sentiment Index for the first quarter of 2012 registered the most positive supplier sentiment since 2010, according to the Automotive Aftermarket Suppliers Association (AASA) in its “Aftermarket Supplier Barometer.” “Outlook for the future became significantly more positive in the first quarter,” said Steve Handschuh, president and COO of AASA. “Sales grew, gross margin improved slightly, and hiring was slightly up. Inventory and capacity additions were stable quarter-over-quarter, firmly in the positive territory.” Paul McCarthy, AASA vice president of industry analysis, planning and member services, said that although the ‘Top 10 Concerns’ in the AASA Aftermarket Supplier Barometer have remained the same over the past two years, it has seen the relative importance of some issues increase and decrease. “Suppliers’ concerns regarding raw material costs and world economic conditions have declined,” he said. “However, concern has increased regarding margin erosion, lack of pricing power and product returns.” The “AASA Aftermarket Supplier Barometer” is a quarterly survey of AASA full-service supplier members on key indicators and market trends. The full survey report is an exclusive AASA member benefit and is available only to member companies that participate in the survey. n
Parts & People May 2012 Page 5
Energy Suspension continues to perfect polyurethane parts for cars and trucks
alternative to a costly dealer replacement part,” Papazian said. “Also, the parts and stop when the order is shipped, Papazian labor costs are more reasonable for the said. “Our sales staff and sales reps do repair shop to offer a more affordable product information training at our option to the consumer.” warehouse distributors’ locations with the Papazian said dealerships are forcing people who answer their phones,” he consumers and installers to buy complete said. “It includes the features and benefits control arms and steering racks when of our products, only the bushings installation tips, “Our policy of manufacturing are needed, which warranty, product exponentially in-house ... gives us control of drives up repair support, and we’re looking into adding costs. every aspect of the video and online “Energy manufacturing process.” Suspension training.” Shops are faced comes to the with the obvious rescue with a challenge of coping with the economy simple solution by offering better than and competition, Papazian said, as well as OE rubber with polyurethane replacement keeping up with technological bushings for a fraction of the cost to advancements in today’s vehicles. replace the complete part,” Taeger said. “The undercar repair market has a ES is known worldwide as the premier choice to offer an affordable, manufacturer of performance differentiated line of polyurethane polyurethane suspension components for products to repair the part as an street and off-road applications, Taeger
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said, but the company also makes private-label products for a number of companies. “That’s where I come in,” he said. “We do a lot of private-label products for other companies using their drawings and specs, so we don’t test them,” Taeger said. “We do a lot of sway bar bushings and other products like that.” One of Energy Suspension’s new products for 2012 In 1991 the company started a is this Chrysler LX polyurethane bushing kit for 2005-2010 Chrysler 300, Dodge Charger, Dodge heavy-duty division, which Magnum, and Dodge Challenger. Taeger said has done well. “One of our first heavy-duty products was our red-and-blue Glad Hand Seals, which replace the rubber seals for big-rig air brakes,” he said. “Now we also offer torque rod bushings, motor mounts, and hood rests.” Papazian said ES has applications to fit most popular vehicles, but new ones are being added constantly. “Since 2011 Energy Suspension now offers a complete we have added more than 80 polyurethane suspension and body mount kit for new part numbers, including 1998-2011 Ford Ranger 2WD and 4WD pickups. products for the 5th generation Camaro, Dodge LX platform, Nissan Visions, a nonprofit workplace center for 350Z, Jeep Wrangler JK, and the Ford disabled and mentally challenged Ranger. We have also developed several individuals, as well as an adult education new part numbers in our heavy-duty program for Saddleback School District.” division, which have been well received.” “Due to state-funded cutbacks in the ES has also embarked on a new line of education system, Energy Suspension has motorcycle products known as Energy always supported many educational Suspension Moto division, said Austin programs,” Taeger said. “ES sponsors the Squires, head of new product Hot Rodders of Tomorrow program, development, motorcycle and marine which gets high school kids more divisions. involved with the automotive industry, The company is also involved in many and ES has hired SEMA interns through community and industry programs, their internship program.” n Papazian said. “ES supports Vocational
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Iowa recycler adapts to industry trends, urges more industry involvement
End Auto and Truck Salvage was to combine resources and efforts with other independent automotive recycling facilities throughout Iowa as a member of the Quality Replacement Parts (QRP) Central group. “We wanted 20 of the more aggressive
Steven (l.) and Mike Swift, brothers and co-owners of Trails End Auto and Truck Salvage, grew up in the industry.
auto recyclers in the state,” he said.“We wanted yards that were focused on better parts, better quality, and same-day or nextday service.” The group, which formed about five years ago, now has 19 member yards that share inventories, as well as parts delivery, which is offered through Panama Transfer in Panama and Wheeler’s Automotive Supply Express Parts in Waterloo. Roger Jorgenson, the QRP-Central general manager, acts as the liaison between the member facilities and the mechanical
and collision repair shops, as well as the insurance companies that they serve. “Just like most of our customers, we are independent businesses, and we think it is important to work with local, independent businesses and people who pay taxes and buy in your state,” Swift said. Swift, the immediate past president of the Iowa Auto Recyclers (IAR), is the 20112012 Automotive Recycling Association (ARA) regional director of Region VII, which includes Iowa, North Dakota, South
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by Matthew Sevart Des Moines, Iowa—Some 27 million wrecked cars are going to salvage every year in the U.S., said Mike Swift, co-owner of Trails End Auto and Truck Salvage. And while this may seem promising for automotive recyclers across the country, Swift said unfortunately 46 percent of those vehicles are being shipped overseas. The influx of vehicles shipped abroad means a decreased supply of wrecked vehicles available to automotive recyclers, he said, which leads to higher prices, and thus, holes in inventory for many recycling facilities. This is just one challenge facing the industry, said Swift, who, like many independent business owners, is feeling pressure as corporate competitors continue to gain more market share. “In the recycling business, we are now dealing with the big corporations, like LKQ, who continue to increase in size, as well as all our other competitors, and that makes success in this business a lot more difficult than it used to be,” said Swift, who alongside his brother and co-owner, Steve Swift, grew up in the automotive recycling business. Their grandfather Ora “Orrie” Swift opened Swift Auto Salvage in the 1940s and sold the business in 1975 to their father, Dale Swift. Swift said he and his brother worked with their father until 1999, when they ventured out together and purchased Trails End Auto and Truck Salvage. “I graduated from high school in 1979 and worked in the salvage business during the 1980s. It was easy then, you could spend money and make money with no problem,” Swift said. Those days are long gone, he said. Between the increased competition from national companies and decreased availability of salvaged vehicles, the business model has shifted, said Swift, adding that the most logical step for Trails
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Iowa recycler adapts to industry trends, urges more industry involvement
Continued from page 7
Dakota, Nebraska, Kansas, and Missouri. In March, Swift and IAR Executive Director Sue Schauls traveled to Washington D.C., to represent IAR and ARA Region VII. Swift said his main objective was to get a line item on a bill that would help with enforcement of the National Using Checkmate, an inventory management software, Sam Swift, son of Co-Owner Mike Motor Vehicle Title Information Swift, locates a part in the shop’s inventory. Systems (NMVTIS) law, which Through membership in the QRP-Central group, requires recycling facilities to report Trails End Auto and Truck Salvage shares an inventory with 18 other automotive recyclers VINs to the federal government. “We need to have standard practices across Iowa. in place across the board,” Swift said. Director Sue Schauls, developing “These issues affect our industry, and we programs like the Iowa Certified need more recyclers to participate in the Automotive Recyclers Environmental solution. The association is there for you, be Program (I-CARE), directed at helping a part of it, get involved, and stop sitting on recyclers meet the regulations imposed by the sidelines.” the Environmental Protection Agency Swift said the IAR keeps him educated (EPA) and Department of Natural and on track, specifically with Resources (DNR). Schauls said 70 professionals such as IAR Executive percent of recyclers in Iowa are certified
through the program. “We focus on the process of each individual yard,” Schauls said, “and they have all benefited by just getting started. Some of the more progressive yards that are already up to speed can even use the program to make sure they dot all the i’s and cross the t’s.” Meeting the imposed requirements and regulations is imperative for recycling
facilities, she said. “Trails End has had the Environmental Protection Agency (EPA) and the Iowa Department of Natural Resources both make visits,” Swift said. “They will come to your business and if you are not a part of one of these great associations that keep you up to date and inline, it is going to cost you — not only money, but possibly your business.” n
NTEA’s Green Truck Association announces technology councils
Farmington Hills, Mich.—The Green Truck Association (GTA) announced the formation of three technology councils to better represent specific segments within the green truck industry. Technology Councils operate under the GTA umbrella. GTA is an affiliate division of the NTEA – the association for the work truck industry. GTA Technology Councils and their purposes are: • Sustainable Integration Technology Council – advances the integration of, and resolves the technical communications for, upfitters of green technologies within the work truck industry. • Lightweight Materials Technology Council – brings together work truck professionals, technical experts, and government representatives as a means to compile information about the development and usage of lightweight materials in the manufacture, specification, and operation of truck equipment and related accessories for fuel efficiency; vehicle “right sizing”; carbon reduction; operational longevity; recycling; general mass-compounding; and increased payload. • Vehicle Electrification Technology Council (VETC) – explores potential efficiency and performance benefits of vehicle electrification, and provides a mechanism for identifying and promoting useful electrification technologies within the work truck market. To help facilitate increased adoption of work truck electrification technologies, the VETC facilitates education, works to remove road blocks, and resolves identified issues. To learn more about GTA Technology Council initiatives as well as opportunities for involvement, e-mail gtainfo@ntea.com. n
VeriFacts appointed to verify green garage sustainability
Reno, Nev.—GRC-Pirk Management, the registrar for www.FindGreenGarage.com, has announced that VeriFacts Automotive has been appointed to verify that shops maintain green sustainability. VeriFacts Automotive enables the Green Garage registrars to verify data needed to validate key indicators related to energy consumption and greenhouse gas emissions, helping shop owners pinpoint ways to reduce their energy consumption and costs. VeriFacts Automotive assists shop owners in identifying core environmental performance indicators under Green and Clean Cities programs for pollution prevention and energy efficiency, including direct on-premises evaluation of product and power usage from utilities and other vendors. Based on this information, shop owners can improve their carbon footprint and institute business practices that are both environmentally and economically sustainable, therefore minimizing their exposure to fluctuating energy costs. “In today’s business world there are not
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too many times you can do the right thing, save money, and increase your bottom line,” said Farzam Afshar, CEO VeriFacts Automotive. “In many cases, shops can’t retain dedicated consultants to audit their environmental performance. By integrating green sustainability practices with carbon footprint computation, we are able to identify opportunities that benefit both the bottom line and the environment. “VeriFacts Automotive can assist with one of the biggest challenges facing the industry today — the need to gather and track environmental data,” said Steven E. Schillinger, president GRC-Pirk Management. The VeriFacts solution can not only improve operational performance, but it also allows shops to comply with the emerging regulatory environment and satisfy demands from customers and supply-chain partners for greater transparency,” Schillinger said. “Shops are increasingly challenged with ways to do good for their bottom line and the environment.” n
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Parts & People
May 2012
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Auto Notes
Tough Ram. The 2012 Dodge Ram 1500 has been named one of
compiled by Jerold B. Smith and for two years beginning in 2008, Toyota was the largest automaker in the world. The company’s first car was the Model AA. Hyundai Motor America recently celebrated its 25th anniversary in the U.S. Its first car sold in the American market was the Excel (frankly, not one of our favorites ever tested). Since 1987, Hyundai has sold more than 6,600,000 vehicles in the U.S., with more than 4,350,000 still on the road. Sonata, Elantra, and Santa Fe models are produced at plants in Alabama and Georgia. From entry-level cars 25 years ago, Hyundai today produces high-quality coupes, sedans, crossovers, and very competitive luxury models such as the Equus and Genesis. German automaker Opel marks its 150th anniversary this year. A company that started out building sewing machines and bicycles, Adam Opel AG was the first Sakichi Toyoda German carmaker to was one of Japan’s use an automated most prolific assembly line, in inventors and laid the foundation for 1928. The firm Toyota Motor designed the Rocket Corp. Car, which at one point set the world land-speed record. Opel has been a wholly owned company of General Motors since 1931 and today, along with its British sister car, Vauxhall, is sold in more than 40 countries.
Vehicle sales booming. Despite high
Consumers Digest’s “2012 Best Buys” for its smooth-riding suspension, as well as its available V-6 and V-8 engines, acceleration, lockable storage boxes (Ram Box Cargo Management System), ergonomics, fuel economy, fit/finish, and utility. The Ram won The Dodge Ram 1500, shown here with the Ram box option, is an award winner based on numerous 2011 awards, including several elements of its design and utility. Manufacturer of the Year from OffRoad Adventures and the 2011 All-Star absorbers and there is a front stabilizer bar. Award from Automobile Magazine. Towing capacities on the Ram 1500 The Ram 1500 has an exceptional range from 6,250 pounds on the SLT with Electronic Stability Control (ESC) system the 4.7L V-8 engine to 8,900 pounds on two that allows all-season front-wheel-drive models equipped with the 5.7L Hemi V-8. (FWD) with the performance of rear-wheel- Payloads range from 1,344 to 1,484 pounds. drive (RWD). The ESC combines ABS and traction control systems and determines Global anniversaries. The founder of when to apply one or more brakes and Toyota Motor Corp., Sakichi Toyoda, reduce engine torque in critical conditions. was born in Japan 145 years ago, in 1867. The smooth ride quality and handling is From a company that started out attributable in part to a multi-coil rear manufacturing textile looms in 1926, suspension, Consumers Digest said. Both Toyoda’s son began building cars in 1936 front and rear have heavy-duty shock (the “d” in the brand name became a “t”),
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sales were driven by the demand for small cars and crossovers. Honda was the only U.S. brand that had a sales decrease, showing a 5-percent drop, but the Civic was the 10th-best-selling vehicle for the month and the CR-V crossover had record sales. Chrysler’s sales jumped 34 percent in March with hot Fiat and Chrysler sedan sales; Dodge Ram pickup sales were up 23 percent over 2011. Ford posted its best March sales in five years with brisk sales of Fusion, Focus, and Edge models that all set March sales records. Even the F-Series pickups were up 9 percent as the demand for commercial vehicles improves. General Motors’ March sales of cars and light trucks rose 12 percent, with sales of its 12 vehicles that get 30 MPG or better fuel economy reaching an all-time high of more than 100,000 units sold. Kia had its best-ever March sales record of 57,505 units sold and is up 31.8 percent on YTD sales. Kia’s affiliate company, Hyundai, also had a record March on sales of 69,728, up 13 percent. Audi posted its 15th consecutive monthly sales record in March and its thirdbest month ever in the U.S. German automakers BMW and Mercedes-Benz both posted positive sales in March, with BMW sales up 17 percent for the first quarter.
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reported sales of its Outlander Sport CUV at 1,634 units in March, the best single month since the model was introduced in October 2010. At the New York Auto Show in early April, media and consumers viewed the first Outlander Sport manufactured in Normal, Ill. Nissan had its best-ever sales month in March, up 12.5 percent on sales of more than 136,300 vehicles. Subaru had another record month and Toyota had its best March since 2008 on sales of more than 200,000 vehicles. And Volkswagen was also a winner, with increased sales of 35 percent, the company’s best March sales since 1973. n
Page 10 May 2012 Parts & People www.partsandpeople.com
Greg Sands leads a seminar, “How to be a million-dollar shop,” during the ASAMO/KAN Vision Hi-Tech Training & Expo Power Summit. Sands shared strategies that he implements at his own repair shops, now totaling 24 across the country.
Being a ‘million-dollar shop’ means being a ‘yes’ company
by Matthew Sevart Overland Park, Kan.—During the 20th annual Vision Hi-Tech Training & Expo, hosted by the Automotive Service Association of Missouri/Kansas (ASAMO/KAN), Greg Sands, owner of 24 Service Street automotive repair shops and direct-mail company Mudlick Mail, led a management seminar, “How to be a million-dollar shop.” During the half-day seminar, Sands touched on a number of strategies for shop owners, from appearance and signage to employee retention and marketing.
Be a ‘yes’ company Focus on your employees
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Sands said shops that want to grow have to become “yes companies,” which basically means when a customer comes to the front counter, for any reason, his service advisors cannot say no. “You have customers whose vehicles are in the shop, where you are working on the repair, and customers walking in your front door,” he said. “Your front door is the priority, because the other jobs are already sold.” Turning away business in order to get the immediate day’s work out misses the point, Sands said. “The only way this business works is you get more sales out of your busy days,” he said. “When you fish, you stay there when they’re biting and you stay until you get them all.” Being a ‘yes’ company is not just saying yes to customers coming in, Sands said, it also means being available when customers need you. “Unless you have a monopoly on your market, I recommend shops be open on Saturdays,” he said. “Saturday is our No. 1 day every week, and being open on Saturday pays for our management team.”
Hire the right people, and sales become a lot easier, said Sands, adding that he trains his service advisors to sell in systems. “We always compliment the car, tell them some positives, and then tell them what they need,” he said. “We have a specific way that we script the sale, and then we role-play with each other, and sell it.” “When selling an estimate, you never stop at the price,” he said. “If you end on the price, they’ll respond on price. Instead, you say, ‘We can get right to work on those repairs, is this the best number I can reach you at when we are finished?’ The idea is to get them to say yes. They brought the car to me, and I’m telling them exactly what they need. Now, I just need them to say yes.” Sands said follow-up and accountability with employees is crucial to the success of his shops. “One of the things we do for our phone skills is record all of our calls,” he said. “The bad ones, we talk to the employee in private about. The good ones we play for everyone to hear. You’ll have people racing to do a good job.” As for employee relations, Sands said shop owners and managers have to give the staff praise and recognition when they do what you are asking of them. “All of us die for recognition,” he said, and when we stop recognizing our employees, that’s when it goes bad. “Intimidation only works for a little while. It’s not a long-term fix.”
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“When I got into this industry, I was surprised how many people would say, ‘I’m not a numbers guy,’” Sands said. “If you’re the type that says, ‘I don’t believe
Continued on page 12
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Parts & People
May 2012
Page 11
Being a ‘million-dollar shop’ means being a ‘yes’ company
Continued from page 11
Metal exposure from laundered shop towels may exceed permissible levels
San Francisco—Gradient, an important for safety managers and plant environmental and risk science consulting workers to understand metal firm, has presented new data that shows contamination levels in laundered shop metal exposure from use of laundered towels so they can make informed shop towels may exceed the permissible decisions about their use.” levels allowed in drinking water. Workers might ingest metals Gradient presented a poster describing from contaminated shop towels its findings at the annual Society of Toxicology Annual Meeting and ToxExpo, As recognized by multiple federal March 11-15, in San Francisco. The poster agencies such as the EPA, people can describes exposure to metals on shop transfer contaminants from their hands to towels and compares the exposure to their mouths and ultimately ingest the toxicity criteria established by invisible residues. The new Gradient governmental agencies. Millions of analysis presented at the Society of manufacturing workers routinely use shop Toxicology meeting compares the towels on the job. potential for heavy metal ingestion from According to the new shop towels to levels that research, manufacturing may be consumed in workers using a typical “Our analysis indicates water at drinking-water number of shop towels limits. In the case of that shop towel users lead, daily intake from may be exposed to may unknowingly metals such as lead, shop towels may be up to chromium, cadmium, ingest higher amounts 21 times higher than the and antimony at levels intake that would be of metals than what associated with the lead many times above those allowed by the action level. is allowed in maximum contaminant Freshly laundered shop drinking water.” levels (MCLs) or, in the towels have been shown case of lead, the action to be contaminated with level (AL) for drinking water. metal residues, which may transfer to the The EPA promulgates drinking water hand during common usage, and can standards under the Safe Water Drinking migrate to the mouth and be ingested at Act to protect public health. An MCL, or levels that exceed those allowed in AL for lead, is a legally enforceable limit drinking water. that drinking water must meet. The MCL and AL analysis advances Suppliers of drinking water such as Gradient’s research, which has been municipalities must address exceedances ongoing since 2003. of MCLs, or the AL for lead, by taking Gradient has found that workers using corrective action and informing the typical number of shop towels daily consumers. were exposed to seven metals — “Our analysis indicates that shop towel antimony, beryllium, cadmium, cobalt, users may unknowingly ingest higher copper, lead, and molybdenum — that amounts of metals than what is allowed in may exceed health-based limits. The same drinking water,” said Barbara Beck, Ph.D., study found heavy-metal residues in all of DABT, principal at Gradient. “It is the laundered shop towels tested. n
in profit and loss (P&L) statements,’ you should, because it will change your business.” P&L and cash in the bank are two different things, said Sands, adding that he always starts out every year with a budget for all his stores, and ends every month reviewing his P&L statement. “If you say you’re going to be up 25 percent in sales, you better be able to say how you’ll be up 25 percent in sales,” he said. “You will never become wealthy unless you get this.” With a clean P&L in front of him, Sands said he could diagnose a shop and tell you exactly how to fix the problem. “If you can read a P&L, you can find the problem. It’s just like a report card,” he said.
Dominate your market
“All advertising must serve a purpose,”
Sands said, “and you have to know the difference between advertising and donation — sponsoring a youth basketball team is not advertising.” Using his other company, Mudlick Mail, Sands said he sends out mailers every month, and it has by far been his best vehicle for advertising. “No matter who it is, they have to see it,” he said. “I can send you a direct-mail piece, and you may hate it and throw it away, but you saw it. The purpose of direct mail is to get in someone’s mind.” Sands said direct mail works the best when the people who get your direct mail also drive by your shop, so he recommends that most shop owners only send to residents within a three-mile radius of their business. “Just dominate that market with direct mail,” he said. “Focus on your market and you do it consistently. This is how I grew my company debt free.” n
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Parts & People
May 2012
Page 13
Simple ‘green’ practices can increase energy savings for shops
by Rob Merwin Westminster, Colo.—Going ‘green’ and saving energy costs doesn’t have to involve a lot of expense and time, and can be simpler to initiate than many shop owners might think, as they discovered recently during a shop management session and panel discussion, “Turning Green into ROI.” Shop Owner Rebecca Kirchdorfer, of Denver, focused on ways shops can incorporate “green” practices into their businesses during the recent Automobile Service Association of Colorado’s (ASACO) Independent Automotive Professionals Symposium in Westminster, Colo. “We’re in the midst of a transformation phase and there are market drivers we need to pay attention and respond to,” Kirchdorfer said. “Consumers are putting money where their values are.” In a survey of customers conducted by Kirchdorfer and her husband and partner, Douglass Kirchdorfer, more than 80 percent said they favor their shop, Downing Street Garage, which has won numerous awards for its green efforts, because it is an environmentally aware business, she said. “Manufacturers are pushing green products, consumers are pulling green products, states are requiring green money and return the position.” most in savings,” she Burgesser said shops should not just pay said. Shops can be their utility bills, but look at their bills, energy efficient by because energy-use trends such as peak addressing lighting, usages will become apparent on closer heating, and cooling, examination. Shop owners should ask or by choosing themselves, “Why is that happening?” and products that take less set corrective measures. “It’s also important time to stock and to have goals, such as reducing energy costs have a smaller by 5 percent for the coming year,” she said. environmental Burgesser said her certification program impact, such as requires the use of non-chlorinated brake buying oil and cleaner and she recommends using refillable antifreeze in bulk, cans as opposed to aerosol. “The costs Kirchdorfer said. associated with using aerosol cans can be She advised shop twice as much as refillable spray bottles, and Shops interested in going “green” should target low-hanging fruit first by identifying areas that will cost the least amount of owners to seek out it’s less toxic for your technicians,” she said. money and return the most in savings, says Rebecca state certification She also said environmentally friendly Kirchdorfer, during her recent ASA-CO Symposium session programs in their water-based aqueous parts washers, if used and panel discussion. communities because properly, have a greater life expectancy than processes, and companies and communities they will provide a framework and step-bypetroleum-based solvents. They are are measuring and recording green step approach toward building an typically nonflammable and contain little or practices. The smart business owners are environmental plan. no VOCs, and instead of dissolving grease paying attention and being proactive in Panelist Janet Burgesser, program and solids, aqueous cleaners rely on heat, developing their own environmental plan,” coordinator for the Denver Department of agitation, and soap action to break dirt into Kirchdorfer said, which will translate into Environmental Health, said one of the first smaller particles. Although they clean direct cost savings and more efficiently run and foremost actions a shop can take to differently, aqueous cleaners perform as shops. decrease energy use is retrofitting its well as solvents, Burgesser said. “Shops interested in going ‘green’ should lighting. “Replacing four T-12 ballasts with “Aqueous parts washers are also target low-hanging fruit first by identifying four T-8s can reduce lighting costs by 40 beneficial because it can decrease costs of areas that will cost the least amount of percent,” she hazardous waste said. removal,” she said. Downing Kirchdorfer said her Street Garage shop recycles 50 percent made lighting of all its waste, which upgrades from results in less use of its T-12s to T-8s in dumpster and increased 2010-2011 for trash-hauling savings. $4,300 that, She said the shop after rebates of purchased a waste oil more than furnace in 1999 for $3,400 from $4,600, which paid for Roger Worrick, an energy solutions Xcel Energy itself in four years and specialist for Progressive Energy and the City of Solutions, says that by switching from yields an annual savings fluorescents to a four-lamp T-8, shops Denver, cost of more than $1,000. can decrease wattage while improving only $900. “There are a lot of light and increasing lamp life without the Projected things you can do in your flickering and humming. annual shop that won’t cost a electrical savings are $700, Kirchdorfer said. cent. It’s just a Roger Worrick, an energy solutions matter of putting mechanisms in place,” specialist for Progressive Energy Solutions, she said. said that by switching from fluorescents to a Regularly checking for leaks in four-lamp T-8, shops can decrease wattage compressor lines can be beneficial while improving light and increasing lamp because “a small compressor-line leak can life without the flickering and humming. really increase a shop’s energy use,” LED fixtures and retrofit kits are also Burgesser said. And something as simple available for existing fixtures. “They are as educating employees to turn off lights more costly,” he said, “but shops will save and equipment can save energy, she Sea Foam Foam Sea Foam Foam Sea Foam Foam Sea Foam Fo oam Sea Foam more in energy costs with wattage as low as added. Bugs B Gone Trans Tune r Spray Trans Tune Deep Creep Creep Motor Treatment Treatment 88 watts. 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May 2012
Parts & People
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Collision Repair
Excelsior Springs shop owner invests in PDR tools, awaits next hailstorm
by Matthew Sevart St. Joseph, Superior Chevrolet in percent insurance work and 30 percent Excelsior Springs, Mo.— Merriam, Kan., and Shawnee restoration, but recently that has flipGenerating new customers can Mission Ford in Shawnee Mission, flopped.” be a daunting task, especially Kan., for OE crash parts. All restoration work, minus interior for a new business. When Chris Jones said he is hoping for another sewing, is done in-house, Jones said, Jones, owner of Jones Custom hailstorm this spring or summer to adding that his wife, Holly Jones, does & Collision, opened his shop in help drive some insurance work to custom mural work and he paints flame 2004, it coincided with a major his door, because after a mild winter, and graphic work. hailstorm, which proved to be his shop, like many across the “Between the two of us, there really much more effective than any Midwest, was down over the isn’t anything we can’t do,” said Jones, form of advertising, he said. previous year. who also has three technicians, Jeff “That first hailstorm was a Due to less insurance-related Ballinger, Derek Mick, and Nick Thomas, huge boost to me because at work, Jones said he has taken on who work in the shop on both insurance that point, I had only been more restoration work than he and restoration work. “We do it all. We Awards from the World of Wheels show in Kansas City fill known by friends and family,” typically does, some of which started out doing custom paint jobs, and it the wall behind Chris Jones, owner of Jones Custom & Collision in Excelsior Springs. Jones says he has had as Jones said. “When you get a included, at the time of Parts & has taken a while to get that type of work, many as 15 entries in the show. big influx of work like that, People’s visit, a 1969 GTO Judge, a because in order to start doing ground-up that’s an opportunity to make a 1949 Chevy 5 window pickup, a restoration, you have to gain people’s name for yourself, and I think that’s what done to deceive the eye,” said Jones, 1978 Chevrolet El Camino, and a 2,300 respect.” we did.” adding, however, that under professional HP drag car. Custom paint jobs are not just for Following the storm, Jones said he went PDR LED lights, blemishes will show if “Right now, I think we’ve had the most restoration work either, said Jones, who from writing three estimates a day to 30 a the work is not done properly. restoration in the shop we’ve ever had,” he sprays Akzo-Nobel Lesonal, which he day for a month, and in the process, learned “A lot of people think it just pops out, said. “Normally, we’re probably 70 Continued on page 16 the fine art of paintless dent repair (PDR). but you might have to push on a dent 150 “I have patience,” Jones said. “That’s the times to get it to where it needs to be,” said only reason I can do PDR Jones, who has invested work. If you own a body more than $6,000 in PDR “When you get a tools from A-1 Tool in shop, it requires patience, which is definitely the first big influx of work, Bolivar. step in PDR because it “PDR is one of that’s an opportunity hardest things out theall takes a lot of time to learn of Unsurpassed Quality. to make a name and even more to master.” the things I know how to Genuine Hyundai Parts. After major hailstorms, do with cars,” Jones said, for yourself.” Jones said, he has a couple “and I can do it all from • Kansas’ largest wholesale Hyundai dealer PDR specialists who come start to finish — frame, • Same-day shipping on orders by 4pm to the shop to assist him, and over the years body, and paint.” • Four in-town delivery trucks he has developed long-term working When PDR is not an option and crash • Five out-of-town trucks deliver daily Wichita, Kansas to Hutchinson, Great Bend, Salina, Abilene, relationships with his PDR specialists. But parts are needed, Jones said he turns to S. Central Kansas, Kingman, Pratt, Direct: 316-858-6769 in general, he said, shop owners must be Keystone-LKQ in Kansas City, Kan., for El Dorado and Emporia. cautious when bringing in contract aftermarket parts, and Car City Chrysler in Toll Free: 800-362-2691 workers. “You have to be careful with people chasing hail,” he said, “because they are here today and gone tomorrow and you have to stand behind their work.” Serving NW Missouri, East “A lot of hail-damage repair work is
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May 2012 Page 15
Excelsior Springs shop owner invests in PDR tools, awaits next hailstorm
the show, and all but one has either received best in class or outstanding in purchases through Autobody Color in class,” he said. Kansas City. “We do quite a few complete Generating a buzz and creating a name paint jobs on regular cars and we have for himself is imperative, Jones said, custom-painted all our personal cars. We especially in a small town like Excelsior put them in parades, which has been a great Springs with a population of just more than way to get noticed.” 10,000. The World of Wheels show in Kansas “We have no direct repairs,” he said. “We City is another way Jones said he has rely strictly on word of mouth and in a gained a reputation for his custom and small area like this, that’ll kill you if you restoration work. are not doing good work, because people “We have had as many as 15 vehicles at talk. We have fortunately been able to bring in work from surrounding communities like Lawson and Richmond.” Although Jones does not advertise, he said he does make donations to help out within the city. “This year we sponsored two Little League baseball teams,” he said. “You’re doing it for the kids, but you are also doing it for some advertising. You are hoping the kids and parents see that. Maybe when those kids grow up and wreck their car, Technician Derek Mick, who has been at Jones maybe they’ll come to us. What Custom & Collision since 2004, pulls the bumper from a Ford Mustang. comes around, goes around.” n
Continued from page 15
Collision Repair Training Notes
I-CAR Training
For more information on registration and class times, call 800-422-7872 or visit www.i-car.com.
State Farm Insurance-LaVista, Neb.
• June 5-Surface Preparation and Masking • June 12-Collision Repair for Honda and Acura Vehicles • June 19-Measuring
Wicklund Carstar-Liberty, Mo.
• May 8-Hazardous Materials, Personal Safety, and Refinish Safety • May 23-Advanced Material Damage Analysis
Hampton Inn-Lawrence, Kan.
• May 8-Hazardous Materials, Personal Safety, and Refinish Safety • May 22-Wind Noise and Water Leaks • May 30-Stationary Glass • June 7-Steel Structures Damage Analysis • June 19-Recycled Parts for Collision Repair • June 21-Best Practices for High-Strength Steel Repairs
Manhattan Area Technical CollegeManhattan, Kan.
• May 15-Bolted-On Part Replacement • June 12-Hybrid Electric and Alternative Fuel Vehicles • June 13-Electrical Circuits and DVOM Usage • June 16-Lighting, Starting, and Charging Systems
The Library Station-Springfield, Mo.
• May 16-Overview of Cycle Time Improvements for the Collision Repair • May 23-Collision Repair for Select High Volume Vehicles
A & B Carstar of RiversideKansas City, Mo.
• May 22-Trim and Hardware
The Library Center-Springfield, Mo.
• May 14-Trim and Hardware
Rusty Eck Ford-Wichita, Kan.
• May 14-Corrosion Protection • June 4-Trim and Hardware • June 28-Advanced Material Damage Analysis
Auto Craft, Inc.-East Wichita, Kan.
• May 30-Collision Repair for Toyota, Lexus, and Scion Vehicles • June 13-Collision Repair for Honda and Acura Vehicles • June 20-Best Practices for High-Strength Steel Repairs
Best Western Ramkota HotelSioux Falls, S.D.
• May 15-Stationary Glass
Washburn Tech-Topeka, Kan.
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• May 10-Professional Development Program question and answer meeting • May 23-Color Theory, Application, Tinting, and Blending • June 5-Collision Repair for Ford and Lincoln Vehicles
Kirkwood College Training & Response Center-Cedar Rapids, Iowa
• May 18-Aluminum Panels and Structures Damage Analysis
PPG Training
For more information and registration, contact your local PPG or Nexa Autocolor distributor or Territory Manager Rhonda Shipers at 816-474-0600 or visit www.ppgrefinish.com.
Kansas City Business Development Center-North Kansas City, Mo.
• May 8-Steel Unitized Structures Technologies and Repair • May 15-Surface Preparation and Masking • May 22-Measuring
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Des Moines Area Community College-Ankeny, Iowa
• May 22-23-PPG CertificationEnvirobase HP • May 24-PPG RecertificationEnvirobase HP • May 30-31-PPG Certification-Deltron • June 1-PPG Recertification-Deltron • June 5-6-PPG CertificationEnvirobase HP • June 7-8-Nexa CertificationAquabase Plus • June 12-13-Delfleet Training (Certification) • June 14-Delfleet Training (Recertification) • June 18-Nexa RecertificationAquabase Plus
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Page 16
May 2012
Parts & People
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Parts & People
May 2012
Page C-1
Automakers increasingly turn to I-CAR for training, certification programs
by John Yoswick As automakers open up their collision shop certification programs to independent shops and dealers, they are increasingly making I-CAR training part of the program requirements. In late March, for example, Chrysler launched its Chrysler Recognized Certified Collision Repair Facility program. Certification requires meeting more than 40 standards including using squeeze-type resistance spot welding equipment and maintaining I-CAR Gold Class status. For more information about the Chrysler shop certification program, visit www.certifymyshop.com/chrysler. Since 2010, Chrysler has incorporated 14 I-CAR classes into its training requirements for all Chrysler, Dodge, and Jeep collision repair and refinishing technicians. A list of those courses is available under the OEM Training section of the I-CAR website (www.i-car.com), which also describes I-CAR’s training relationships with more than a dozen other automakers. Also in March, Infiniti announced that it was launching the Infiniti Certified Collision Repair Network in conjunction with DuPont and I-CAR. The requirements, including I-CAR Gold Class Professionals status, closely match those of the Nissan shop certification program launched last fall. Gold Class shops receive a $1,000 discount on the $5,950 initial enrollment fee for the Infiniti shop certification program. For more information on the Infiniti or Nissan shop certification programs, visit www.performancegateway.com/Nissan or www.performancegateway.com/Infiniti. Information on how to become an I-CAR Gold Class Professionals business is available on the I-CAR website. Though the Volkswagen collision repair shop certification program doesn’t require Gold Class status, it does require body technicians to have completed 11 specific I-CAR courses and either the steel MIG welding or structural steel parts welding qualification test. additional specified classes, spelled out on the Volvo section of the OEM Training tab on the I-CAR website. The Porsche Approved Collision Center Program requires shops to have at least one I-CAR Platinum Individual Estimator and Refinish Technician, and two I-CAR Platinum Individual Steel Structural Technicians. The requirements for obtaining Platinum Individual status are listed on the Training Recognition section of the I-CAR website. General Motors (GM) was one of the first automakers to form a training relationship with I-CAR in 2004. GM requires its collision technicians to complete seven specific I-CAR courses, and structural technicians to complete the steel welding qualification test. I-CAR also worked with GM to develop specific training for the 2006 Chevrolet Corvette Z06, available exclusively through I-CAR. I-CAR’s aluminum welding qualification test is also required for Z06 certification by GM. Though Ford Motor Co.’s shop certification program is open only to Ford dealers, the automaker has made specific I-CAR training and welding qualification testing an option for its collision repair and refinishing technicians interested in meeting program’s training requirements. Toyota and Lexus also list 14 I-CAR courses and the steel MIG welding qualification test as part of their technician certification program. I-CAR’s ability to offer shorter, more targeted training through its online offerings has made it an ideal way to convey automaker- or vehicle-specific training on a 24/7 basis. The growing list of I-CAR online classes includes Mazda 626 Roof Panel Replacement, Ford Mustang Lower Rail Replacement, and Dodge Durango Rear Frame Tip Replacement. For the complete list of online courses, visit the I-CAR website. n
I-CAR’s ability to offer shorter, more targeted training through its online offerings has made it an ideal way to convey automaker- or vehiclespecific training on a 24/7 basis.
Audi requires two technicians from shops participating in the Audi Collision Repair Network to complete a dozen specific I-CAR courses and either the steel MIG welding or structural steel parts welding qualification test, as well. Audi also offers its two-week Audi A8 training at I-CAR’s Tech Centre in Appleton, Wis. Previously, technicians had to travel to Germany for hands-on A8 welding and structural training. For more information about this training, e-mail Audi’s Mark Allen at mark.allen@audi.com. As part of the Volvo Body and Paint Certification Program, Volvo requires all technicians at participating shops to complete four specific I-CAR courses. A percentage (or minimum number) of technicians at a shop must then complete
1-800 Radiator & A/C joins Sherwin-Williams A-Plus Network
Warrensville Heights, Ohio—SherwinWilliams Automotive Finishes A-Plus Network announces a new affiliation with 1-800 Radiator & A/C, headquartered in Benicia, Calif. As a member of the network, A-Plus members will now be eligible to receive A-Plus Reward points when they purchase direct from 1-800 Radiator & A/C. For more than 25 years, 1-800-Radiator & A/C has been supplying collision repair shops with a variety of Tier 1 OE and OE quality parts including radiators, condensers, cooling fans, complete A/C kits, and automotive lighting in select markets. 1-800 Radiator & A/C is a committed partner to the collision repair industry and a dedicated corporate sponsor of the SCRS, NABC, and many other state and local industry associations. “We are pleased to team with 1-800Radiator & A/C in continuing to provide our A-Plus Network members more valueadded products and services to their respective collision repair facilities,” said Troy Neuerburg, manager of Marketing Business Services at Sherwin-Williams Automotive Finishes. “Like the many partnerships we’ve established with other collision repair industry suppliers, we are always looking for ways to add beneficial services to the A-Plus membership.” The A-Plus Network is made up of an exclusive group of collision repair specialists who reflect the industry’s highest standards. Members have benefited from the program’s many businessbuilding opportunities including: business management training through A-Plus University workshops; building insurance relationships through continuing education training to insurance agents; loyalty rewards points; marketing programs, and Vision Group participation. For more information about the Sherwin-Williams Automotive Finishes APlus Network, visit www.a-plusnetwork.com. n
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Page C-2 May 2012 Parts & People
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Page C-3
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Page C-4
May 2012
Parts & People
www.partsandpeople.com
Industry professionals offer advice for shops before they sign DRP contracts
by John Yoswick Farmers Insurance raised some eyebrows last spring – and blood pressure — in the industry when it rolled out a revised agreement for shops participating in its direct repair program (DRP). In order to participate in the “Circle of Dependability” program, shops must sign a contract that says they will, among other things, perform criminal background checks of employees and not employ anyone who has been convicted of a felony; purchase and use CSI services and an electronic estimate auditing tool approved by Farmers; and charge Farmers based on the most favorable rates offered to any other insurer. Farmers’ requirement that the shop must at any time allow the insurer to inspect and audit the company’s books and records, including balance sheets and income and cash flow statements, is “especially galling,” one multi-shop operator (MSO) said. In a press release last June, the Society of Collision Repair Specialists (SCRS) noted that one element of the Farmers agreement related to “disputed amounts” appears to give the insurer the right to dispute shop charges up to 30 days after being invoiced. If the insurer disputes a charge, that section for the Carstar franchise network, said she is concerned that many shop owners sign the agreements without fully reading them – and having their managers and estimating staff read them as well. “They need to be equally informed,” she said. Bartnik Andrew Rodenhouse, an attorney whose family operates a collision repair business, says he encourages shops to have all recommends that DRP agreements reviewed by a local attorney. shops pay particular attention to training of the agreement also prohibits the shop or vendor requirements in the contracts from terminating the agreement for breach that could result in mandated expenses or of contract unless the disputed amount use of particular suppliers for some exceeds $25,000. products or services. So what should shops be looking for and George Avery, a claims consultant with thinking about when presented with a new State Farm, acknowledged that DRP or revised DRP agreement? And what are agreements can be confusing. That’s why their options if they don’t like some of the he encourages shops to discuss any terms being offered? questions they have about the agreement with local claims personnel, and if their The need to read questions aren’t answered to their Stacy Bartnik, director of field services satisfaction, he encourages shops to bring those questions to the regional level or higher within the company. “You’re not going over anyone’s head,” Avery said. “Go up the ladder to get the answers. I really encourage that.” He also said an insurer might be able to provide more detail about its policies and procedures that aren’t fully spelled out in the agreement. As an example, Avery said, the contracts usually have terms related to repair quality, but they may not spell out what happens if a quality issue arises. That’s something shops may want to ask about. State Farm, for one, Avery said, has a written policy related to quality issues, though it’s not spelled out as part of the DRP agreement. Andrew Rodenhouse, an attorney whose family operates a collision repair business in Grand Rapids, Mich., said he encourages shops to have all DRP agreements reviewed by a local attorney. He cautioned that if anything an insurance company representative tells you contradicts something in the agreement, the written terms will be what gets upheld in any dispute. Bartnik and Avery agree that insurers have made repairer-suggested changes to
Continued on page 18
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Parts & People
May 2012
Page 17
Industry professionals offer advice for shops before they sign DRP contracts
in California (and find a California “I don’t think that’s unreasonable at attorney) if a dispute arises. all,” he said. “It may be going a little too their DRP agreements – not for “That’s why it’s important to get far if they want you to provide bank individual shops but for all on the someone who understands the account statements. But maybe a credit program. Bartnik said Carstar has ‘legalese,’ the boilerplate section, report is sufficient.” been able to work with insurers on to explain to you what it means,” The bottom line on DRP contracts, some contract terms before offering Rodenhouse said. “The State Farm Bartnik said, is that shops need to look at that DRP to its franchises, and Avery indemnification clause, for each one they are considering rather than said changes to State Farm’s example, is completely different seeing them all as good or bad for their agreement have resulted both from from any other indemnification business. the insurer’s repairer advisory clauses I’ve seen out there. So “You just need to understand that based council and from feedback he’s these contracts are all individual on your business model, some may work received at industry gatherings. and unique.” great for you and others may not fit in “You know when an insurer’s Rodenhouse was asked what a well,” she said. “That’s why it’s really Stacy Bartnik, director of field services for the Carstar agreement gets changed the shop can do if an insurer changes important to read them. You really have to franchise network, says many shop owners sign DRP quickest?” Rodenhouse said. “When agreements without fully reading them. the key performance indicators look at them individually.” n you don’t sign them. If the contract is (KPIs) it is looking for after so horrible and no one will sign it, they “I feel like they’re saying, ‘There’s a the shop is already on that insurer’s still have to get their customers serviced, change in there somewhere. You find it,’” DRP. If the changes aren’t so they then have a real problem. So yeah, Avery said. acceptable, he said, the shop’s only they do change them.” In such cases, Rodenhouse said, the option may be to drop the program. terms regarding pricing are often a good “If you don’t like what they are Understanding the changes first place to look for changes. But he asking you to do, don’t do it,” he Avery, Bartnik, and Rodenhouse agreed cautioned that the change could be said. “It’s that simple.” that it can be frustrating to be asked to seemingly more mundane, such as the Rodenhouse disagrees with those sign a revised agreement without being jurisdiction in which any conflicts arising who complain about insurers’ told what has changed. Avery compared under the contract will be handled. But, he requiring shops to conduct that to when Apple’s iTunes users are said, such a change can be potentially employee background checks and periodically asked to re-agree to its terms huge if it means a shop elsewhere in the to make some shop financial data of use. country would be required to go to court available for review by the insurer. He said in many professions, that is George Avery of State Farm encourages shops a common contract provision to to move up the chain of command at an insurer protect those you are doing Our regional if local claims personnel can’t answer questions business with. about a DRP agreement. editions serve:
Continued from page 17
NORTHERN CALIFORNIA
& NW Nevada
Also available online
PPG teams with BrandMuscle to provide marketing, advertising materials
Strongsville, Ohio—PPG announced it has partnered with BrandMuscle, a provider of Web-based local marketing automation software, to introduce PPG Marketing on Demand, a suite of online tools and services to help distributors and collision repair facilities produce customized marketing and advertising materials. PPG Marketing on Demand is available to all PPG distributors and collision repair centers in North America. The new system provides a resource distributors and body shops can access to easily develop a variety of promotional pieces to support their local businesses. At the PPG Marketing on Demand website, registered users can create professionalquality, online business pages and display ads, websites, e-mail campaigns, print ads, brochures, door and mirror hangers, and more. “We are passionate about helping our distributors and collision repair centers grow their businesses,” said Cristina Fronzaglia, manager of marketing communications for automotive refinish. “Our goal is to help our customers gain a competitive edge with their online and offline marketing programs. By teaming up with BrandMuscle, we’re able to assist our customers in executing the types of marketing programs that are often only available to larger organizations.” PPG is also providing distributors and collision centers with direct access to marketing professionals and media specialists who can assist with tasks as complicated as creating a marketing plan or as simple as negotiating the best rate for a local display ad. The time-saving service allows business owners to focus on their business operations. In addition, PPG has secured discounted rates to offer low-cost, professionalquality production of printed materials. Materials created using PPG Marketing on Demand can be seamlessly routed to a print vendor for production, with a two- or three-day turnaround on most orders. n
SOUTHERN CALIFORNIA NORTHWEST
• Washington • Oregon • Idaho • Montana • Alaska
MOUNTAIN
• Colorado • Wyoming • W. Kansas • W. Nebraska • New Mexico
This publication serves the including Western Missouri, Kansas, Nebraska & Iowa
MIDWEST REGION
MIDWEST
• W. Missouri • Kansas • Nebraska • Iowa
MO
RIVER VALLEY
• E. Missouri • W. & S. Cent. IL • S. Indiana • W. Kentucky
Each of our six regional editions is viewable online in our turn-page format.
Visit us at www.partsandpeople.com
Parts & People
Page 18
May 2012
www.partsandpeople.com
Midwest Auto Body Trade Show draws 450 collision industry professionals
by Matthew Sevart Altoona, Iowa—More than 450 collision industry professionals were on hand for the 2nd Annual Midwest Auto Body Trade Show held at Prairie Meadows on March 28, Iowa Collision Repair Association (ICRA) Executive Director Janet Chaney said. “We were so pleased with the turnout this year,” Members of Rydell Auto team in Waterloo, including, she said. “Due to the from l., Uni-Select Auto Plus Iowa PBE Specialist Darren combined efforts of Siebrands, Rydell Powertrain Specialist Josh Steere, and Surplus GM Specialist Tom Wright were on hand at the association members and Midwest Auto Body Trade Show. vendors, we drew a much larger crowd than last year, and it included from AllData Vice President of Sales Tom everybody — students, technicians, McGee, I-CAR Regional Manager Keith managers, shop owners, and insurance Risley, and CARS Inc. Communications adjusters.” Specialist Trevor Fry. The trade show’s floor space doubled in Chaney said she is reserving the same size this year and featured more than 50 space at Prairie Meadows for next year’s vendors, along with three mini-classes event, which will be held the first weekend
Bob Gilmore of Autobody Equipment in Kansas City gives a demonstration on plastic repairs at Des Moines-based Body Parts Stores’ booth.
in March. By request, next year’s event will include morning educational classes. “I really hope to expand the size of the show next year and draw industry
professionals from throughout the Midwest region,” she said. For more information about the 2013 event, contact Janet Chaney at jchaney.cavecreek@gmail.com. n
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Parts & People
May 2012
Page 19
Why Pay More? Rural Kansas repair shop finds niche as tire specialists
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Force balancers, and a tire dunk tank used to find leaks. Koons said most of his equipment purchases come through Becker Pro-Line Equipment in Great Bend. “I can’t expect my employees to go out and work at a high level if I don’t provide them the proper tools,” he said. Technician Andy Troyer (l.) and Undercar Specialist Jackie Gage check the ball joints on Customers who purchase a set of a Jeep Grand Cherokee that came in for an tires from Rod’s Tire & Service alignment. receive free balance and tire rotations for the life of the tires, said Koons, who have a lot of long-term employees. places reminder stickers on the “We provide our employees with good windshield, just like an oil change benefits, and they are paid well,” Koons reminder. said. “One of my former bosses from my “It took us 10 years to figure out that we years in the farm cooperative system, needed to present the Lyman Adams, taught customer with a visible me a lot about how to reminder, to ensure that “Our theory on inventory treat employees. Most they get the most life is you can’t sell it if you importantly, that you out of the rubber,” he have to treat people like don’t have it.” said. “It was such a people. simple thing, and it “I used to think I makes a huge difference, because it brings could take every employee and make them our customers back into the shop more do what I wanted them to do exactly, but I often.” Koons staffs 11 technicians and service advisors, and said he has been fortunate to
Rod’s Tire & Service Technician Sam Shope (r.) finishes mounting a truck tire. Technician Chester Boehs prepares to mount a trailer tire.
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have learned that as the job is getting done and the customers are happy, I am happy.” Managing a staff is no different from coaching a team, Koons said. “This is a team, and my responsibility is to put people in positions where they will succeed and do their best,” he said. “You don’t put a kicker on the offensive line. You have to recognize people’s strengths, and make sure our employees feel that they are valuable to the team.” In the near future, Koons said, he plans on adding more space to his building to address the growing service needs of his customers, and make room for commercial truck business, an area he would like to expand into. Expansion and growth are both important, Koons said, but at the end of the day, it is really just about building relationships. “I think we’ve forgotten that this is a relationship-driven business,” he said. “We often get caught chasing the profits and we forget that. People come to depend on you Rod’s Tire & Service Technician Jess Bryant and set a certain level of helps load four industrial tires onto a forklift expectations, and we have to live operated by Technician Chester Boehs. up to those expectations. If we Agriculture and industrial-related tires represent a large portion of business in the rural farming don’t, then we’ve damaged that community, Owner Rod Koons says. relationship.” n
PART # DESCRIPTION PRICE* AC262C1 CHRY 3.9 OHV V6 CAST IRON C#5300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $186.00 AC109C2 CHRYS 360 V8 MAGNUM Bolt Down Rocker Arm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$243.00 AC357C9 DODGE NEON 2.0 DOHC #086-AB-W or AB-P W/EGR, SQ. EX. PORT W/CAM . . . . . . . . . . .$359.00 AC357C8 DODGE NEON 2.0 DOHC #086-AC-J NO EGR, SQ. EX PORT NO STEAM HOLES . . . . . . . .$357.00 AC222C2 FORD - 7.3 POWERSTROKE - 10 intake bolts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$419.00 AC122C1 FORD 1.9 FOEE W/ CAM SENSOR CENTER BOLT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$263.00 AC150CC2 FORD 2.5 SOHC CAST IRON W/CAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$478.00 AC142C7 FORD 302 V8 BDR F.I. E5TE, E7TE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$194.00 AC163C3 FORD 460 V8 BDR F.I C#F3TE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$343.00 AC357C1 FORD 5.4 V8 SOHC#F75E W/TEMPSNSR, DRIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$357.00 AC222C5 FORD 6.0 POWERSTROKE TURBO DIESEL 06- 08 C# 2 vlv cover holes C#1855613C1 . . . .$650.00 AC196C19 GM 350 C#810 SLOTTED PUSHROD HOLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$199.00 AC205C5 GM 6.5 TURBO DIESEL *ANGLE INT.BOLTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$308.00 AC108CC3 JEEP 4.7 SOHC V8 ALUM W/CAM LEFT Casting # 801 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$420.00 AC345CC2 SATURN 1.9 OHC W/EYEBROWS W/CAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$324.00 *Plus freight and core charge. PrePaid core return on “AC” heads only, does not apply to Heavy Duty “HD” heads
Dana expands SVL aftermarket drivetrain offering for older vehicles
Maumee, Ohio—Dana Holding Corp. announced it will extend its SVL aftermarket drivetrain product line to include additional heavy-duty components and, for the first time, light-duty axle components. SVL products offer quality replacement parts designed specifically for postwarranty vehicles. Availability of the extended product line is targeted for the second quarter, and will include Dana-approved center support bearings for light-, medium-, and heavyduty applications, as well as light-vehicle axle shafts, and ring and pinion gear sets for all vehicle makes and models. This is in addition to the existing SVL line of universal joints for the light- and commercial-vehicle markets and ring and pinion gear sets for heavy-duty applications. “After a successful launch of SVL in 2011, we saw increased demand for reliable light-vehicle drivetrain components,” said Mark Wallace, Dana’s president of OnHighway Technologies. “Our extended SVL product line will fulfill the market’s demand for Dana-supported light-vehicle components, while further supporting the heavy-duty market’s needs.” n
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May 2012
Parts & People
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Parts & People
May 2012
Page 21
Undercar Product Notes
ACDelco introduces Advantage tie rods and control arms
compiled by James Faust top-selling product categories. The ACDelco Advantage tie rods feature full-ball type stud for improved performance, corrosionresistant coating, heat-treated finished ball ends, and CNC-machined housing. The control arms feature corrosion-resistant coating for long-life performance, greaseable ball joints for easy maintenance and long life, and lightweight construction to meet application requirements. Installation hardware is included, when needed, and all parts are backed by a 12month/12,000-mile parts warranty.
Hunter’s new Road Force Touch balancer provides wheel service with record efficiency
Grand Blanc, Mich.—ACDelco has introduced the Advantage line of tie rods (345 part numbers) and control arms (49 part numbers). They are part of the all-new ACDelco Advantage family of aftermarket chassis components being launched with more than 1,000 part numbers focusing on
auto-calibration, on-demand videos, and an enhancement to StraightTrak lateral force measurement. Other improvements include a stronger, wear-resistant balancer shaft for long-lasting service, an Auto-up Hood which saves time by automatically lifting the hood for the operator, and a standard 10-piece mounting collet set with storage to optimize wheel centering.
CEMB introduces the ER 80 Go Fast Line series
ACDelco has introduced the Advantage line of tie rods and control arms as part of its Advantage family of aftermarket chassis components with more than 1,000 part numbers.
Bridgeton, Mo.—Hunter’s Road Force Touch performs a Road Force diagnostic test faster than a traditional wheel balancer performs a typical balance. During the balancing process, the Road Force Touch automatically applies Hunter’s patented load roller against the wheel and tire assembly to simulate how a wheel
Hunter introduced its new Road Force Touch balancer which provides wheel balancing service with record efficiency.
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performs under the weight of a vehicle to find hidden causes of vibration and vehicle pull. Technicians can activate any balancing function from one screen by touching the appropriate button or icon, saving time spent scrolling through a grid of menu buttons. Live 3D graphics and animations display real-time wheel conditions and illustrate easy-to-understand instructions to resolve vibration and pull problems. New software tools include eCal
Gainesville, Ga.—The CEMB ER 80 is a digital balancing machine with digital touch panel, 3D automatic measurements by sonar, laser for weight positioning inside the rim, LED to light working space, CEMB USA introduced Wheel Best its line of digital Access, and balancing machines, Virtual Direct including this ER 80 Drive (CEMB series. patent). n
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Page 22
May 2012
Parts & People
Knowing customer base, competition helps shops advertise effectively
by Rob Merwin Overland Park, Kan.—What does it take for an independent shop to successfully market its business in the automotive repair industry today and compete with dealers and chains? It requires understanding that today’s customers are increasingly value-driven, but that doesn’t mean just offering the lowest price, said Dan Gilley, director and trainer for RLO Training, during his educational session, “Maximizing Your Marketing,” at the Vision Hi-Tech PHOTO BY MATTHEW SEVART Training & Expo held recently in Tracking and evaluating advertising responses and other marketing efforts is important, RLO Overland Park, Kan. Training Director Dan Gilley says. “If you can’t “Customers want value with a mix measure the success of a particular advertising, of benefits,” he said. “Smaller then don’t use it.” companies have a choice: they can present quality or price, and if they can’t In order to “brag” those qualities, shop compete with price — which often they owners should research their market area, can’t — they’re left with quality.” which will provide important data for For independent shops, that translates to developing a marketing plan. “Examine providing a quality facility, staff, and service demographics to find out where your along with good warranties on everything customers are coming from. They either sold. “The shops that survive are the ones work or live near you — look at your that market those qualities the best,” said customer database and ZIP codes,” Gilley Gilley, to nearly 100 shop owners in said, adding that additional information is attendance. “If you’re not bragging about available at chambers of commerce and your shop, who is?” census bureaus. A major consideration regarding the customer-service survey, by handouts, economics of a shop’s market area is mailers, or online, will improve a shop whether there are any significant future owner’s awareness of consumer interests. developments that might affect its “Get the customers involved by giving you marketplace, he said. “Be aware of what’s feedback and it’ll benefit them and the shop going on in your market area such as new by promoting two-way conversation,” shopping malls, housing, and large Gilley said. industries. Ask yourself, ‘What would A well-written customer-service survey these do for my business?’” will provide data for shops to focus on what A shop’s main marketing focus, however, services are important to their customers and should be existing customers, as opposed to additional services that could be provided. the potential costly “The more information you expense of acquiring new gather, the better chance “Customers want you have of meeting or ones, Gilley said. The value with a mix of exceeding expectations,” customer database, if used to its potential, can also he said. benefits.” determine active and Equally important are inactive customers, as well “competitive service as how much they spend per visit and how surveys,” he said. They will reveal which many vehicles they regularly have serviced. competitors offer the same services and “The average hour per RO has the greatest prices, services they offer that the shop potential for improvement, and well-trained owner doesn’t, and insight into their service advisors will go a long way to attitudes about certain conveniences and making that happen,” he said. “Educating services, Gilley said. “The more inside the customer is more cost-efficient, and knowledge you have, the better marketing make sure you charge for all work plan you will have,” he said. performed.” Once a shop determines its customer base Understanding customers’ needs is critical and needs, evaluates its own strengths and in the development of a marketing plan, he weaknesses, and looks at the strengths and said, and information derived from a weaknesses of its competition, it should use
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Parts & People
May 2012
Page 23
Mechanical Repair Training Notes
RLO Training
For more information on these online Workshops, call 800-755-0988 or visit www.rlotraining.com. All times are PST.
Webinars
• May 1, 3, 8, 10. 15, 17-Recruiting and Retaining Technicians and Advisors, 3-5 p.m. • May 1, 8-How to get your Share of the Highly Profitable Fleet Business, 12-2 p.m. • May 3, 10-Maximizing Sales of Diagnostic Labor, 1-3 p.m. • May 3, 10, 17-Improving Telephone Closing Ratios, 10 a.m.-12 p.m. • May 4, 11, 18-Service Advisor Skills, 10 a.m.-12 p.m. • May 7, 9, 14, 16, 21, 23-Compensation Strategies, 3-5 p.m. • May 7, 9, 14, 16, 21, 23-Marketing Strategies, 3-5 p.m. • May 8-10, 15-17-Technicion Time Management, 3-5 p.m. • May 14 or June 11-Guerilla Shop Management, 3-5 p.m. • May 15, 17-Measure Manage & Market • May 15, 22-Phone upselling Techniques, 12-2 p.m. • May 16, 23-As an owner: Start earning the income you want, 10 a.m.-12 p.m. • May 16, 23-Powerful Business Building Strategies, 12-2 p.m.
• May 17, 23-Eliminating Repair Order Roadblocks, 10 a.m-12 p.m. • May 28, 29, 30-Building a Business Plan, 12-2 p.m. • June 4, 6, 11, 13, 18, 20-Compensation Strategies, 3-5 p.m. • June 4, 6, 11, 13, 18, 20-Marketing Strategies, 3-5 p.m. • June 5, 7, 12, 14, 19, 21-Recruiting and Retaining Technicians and Advisors, 3-5 p.m. • June 5, 12-How to get your Share of the Highly Profitable Fleet Business, 12-2 p.m.
Federal Mogul Training
For more information, call 888-771-6005 or visit www.federal-mogul.com/training.
Federal Mogul Technical Education Center—St. Louis
CARQUEST Distribution CenterShawnee/Overland Park, Kan.
• June 11-12-Import Computer Controlled Charging Systems
• May 7-9-Ignition System Diagnostics • May 9-11-Engine Performance and Driveability II • May 14-15-Advanced Steering & Suspension Diagnostics • May 16-17-ABS/Stability and Traction Control Diagnostics
Automotive Research and Designs
For more information and to register, visit www.go2hev.com, e-mail training@go2hev.com. All times are EDT.
Webinars
Denso Training Seminar
For course descriptions or for more information, visit www.densoaftermarket.com/training.
Ameristar CasinoCouncil Bluffs, Iowa
CARQUEST Technical Institute
To register, contact the local CARQUEST store or visit http://carquest.com/carquest/ proCTIclassSchedule.html
Location TBD-Columbia, Mo.
• May 14, 30-Second and third of threepart series-Diagnosing Hybrid Vehicle Electric Machine (transmission failures) using the AT33EV, 7-8 p.m. • May 21-Used Hybrid Parts: What to look for in used and/or reconditioned components. 7-8 p.m.
• May 7-A/C Service Essentials
Holiday Inn-Des Moines, Iowa
• May 7-New Vehicle Technologies: Fluids & Lubricants
Location TBD-Jefferson City/ Columbia, Mo.
Automatic Transmission Rebuilders Association (ATRA)
This seminar will be on general diagnosis, problems, and fixes on GM, Ford, Chrysler, Honda, Toyota, and Mercedes. For more information and registration, call ATRA at 800-428-8489 or visit www.atra.com.
Harrah’s Council BluffsCouncil Bluffs, Iowa
• May 8-Intermittent Drivability Diagnosis
Home Ridge Inn and SuitesBettendorf, Iowa
• May 10-A/C Service Essentials
• May 8-New Vehicle Technologies: Fluids & Lubricants • June 18-19-Supplement Restraint System Diagnosis & Repair
Location TBD-St. Joseph, Mo.
• June 6-7-Vehicle Data Network Diagnosis
Location TBD-Wichita, Kan.
• May 19-The latest technical fixes and Management Training
• May 21-22-Diagnostic Secrets of a Mobile Diagnostic Technician
Washburn Institute of TechnologyTopeka, Kan.
Automotive Training Institute
For more information or to register, call 888-471-5800 or visit www.autotraining.net.
Location TBD-Wichita, Kan.
• June 4-5-Battery Starting & Charging System Diagnosis
• June 26-Think Like a CEO
Location TBD-Topeka, Kan.
• June 30-Think Like a CEO n
Knowing customer base, competition helps shops advertise effectively
Continued from page 23
advertising to convey its advantages over the growing prominence of quick lube shops, auto parts stores, and dealerships, he said. “Talk about what you do better than the competition and set about 3 to 6 percent of your annual gross sales to be spent on advertising — but make sure you spend it wisely.” Gilley listed a number of advertising devices that can be budgeted, including onhold messaging; direct mailers such as coupons, thank-you letters, and service reminders; lifetime oil change programs; license plate frames; and newspaper ads promoting a Car Care event. “A flat-screen TV behind a service desk with a menu board
Page 24 May 2012 Parts & People
also attracts attention,” he said. Gilley suggested shop owners print an extra 50 to 100 copies of mailers with coupons so they can store them under their counters to be used as “closers.” Tracking and evaluating advertising responses and other marketing efforts is important, and he said shop owners should establish reference codes. “If you can’t measure the success of a particular advertising, then don’t use it.” Gilley said major shifts in the global economy have given consumers the power to demand exactly “what they want, the way they want it, when they want it, and at a price that will be determined by value.” “You have a choice,” he said, “either provide it or fail.” n
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Parts & People
May 2012
Page 25
The automotive aftermarket is a great industry. From small repair shops to world-class
manufacturers, the industry comes in all sizes and shapes. The one thing everyone shares in common is the endless opportunities that are available. Join us for the 2012 Global Automotive Aftermarket Symposium (GAAS) as we celebrate this great industry with an outstanding educational program and the opportunity to network with the leaders of our industry.
You can save $200 when you register by April 13, 2012.
Register at www.globalsymposium.org and review the latest agenda for this year s event.
Polk is the corporate sponsor of the Global Automotive Aftermarket Symposium GAAS is made possible through the generous support of the University of the Aftemarket Foundation Presented by:
Media Partners:
Media Supporters: Motor, Parts and People
www.globalsymposium.org
PP0212S
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May 2012
Parts & People
www.partsandpeople.com
Cooper’s Keys to Auto Repair Profits
The right way to customer satisfaction in your auto repair shop
Far too many auto repair shop owners don’t measure customer satisfaction. It’s not that they’re not interested in the results, but rather that they’re not exactly sure how to do it. Unfortunately, the price they pay for not measuring their customer satisfaction is often Bob Cooper staggering. To make matters worse, the Gallup Association has released a report concluding that most of the ways used to measure customer satisfaction are beyond bad; they’re actually worthless. As a business owner, I am sure you will agree that your Customer Satisfaction Index Goal (CSI) needs to be 100 percent. You also need to establish a minimum level of acceptable performance with your team that is set no lower than 95 percent (with the understanding that your employees can begin to earn CSI rewards on an incremental scale once they pass the threshold of 97 percent). Now here’s where most shop owners get into trouble: they’re not sure what counts as a point against the CSI score. I realize that there are many different ways to measure customer satisfaction, and many of our clients have some relatively well-designed systems in place. But if you’re just looking for a simple, easy-to-use method, here it is. At Elite, we recommend that you classify any comeback or customer complaint as a “failure,” and you should count that failure against the car counts for the measured period. For example, if you process 100 vehicles, you should not incur more than five complaints, including any comebacks due to mechanical problems that were not solved during the initial visit, were misdiagnosed, or were simply overlooked. If the vehicle was repaired six months ago, and it fails today, it still needs to be considered as a failure for the current period, even though your existing employees may not have had any control at the time the service was originally provided. The rationale is twofold. One, the failure will be offset by any poor work done today that may not fail for months to come. The second reason it should be considered a failure for the current period is that your income statement is blind to what, where and when. All that we do know is that the comeback is a failure today. Part failures also need to be counted against the CSI score. Not only is your financial statement blind to part failures, but your overall CSI score should take a reasonable percentage of part failures into consideration. So warranty claims, mechanical failures that include part failures, customer neglect (i.e., we failed to educate them on their responsibility) and so on are easy to classify as failures with this type of CSI scoring. Things become more subjective when you are placing customer follow-up calls. I would highly recommend that you ask every customer, “How did we do?” If the response is positive, and they have nothing critical to say, it’s reasonably safe to conclude that the customer is a happy customer. Otherwise, it’s a failure. So what we need to strive for are fewer comebacks, zero complaints (customer returns with dirty carpet, upset the vehicle wasn’t done on time, felt your prices were too high, etc.) and follow-up calls that end with your customers saying they were pleased. Although you may have to massage the percentages and the criteria a bit, this method is a great starting point for you and your company, and is fair to both you and your employees. You should also ensure that all of your employees know that if there are any comebacks, or complaints that are knowingly not reported, there will be a substantial penalty toward any reward they may be entitled to. If an employee is guilty of not reporting a complaint or comeback a second time, they go on report. A third failure to report should be considered grounds for immediate dismissal. You need to make sure all your people understand that openness and honesty in reporting are critical to improvement. Also let them know that their income, along with the success of your company, will always be predicated on continual improvement. Lastly, I would like to leave you with a couple of thoughts. Far too many companies complicate their methods of monitoring and measuring customer satisfaction. They typically follow up with their customers, and they ask a series of predetermined questions. Rather than asking customers questions that are based on our interests, we should let the customers share their thoughts in any way they would like, and they should be able to address any part of their customer experience. Many shops and dealerships feel that anything less than 100 percent is completely unacceptable, and I have to politely disagree. Here’s why. First of all, the system I just outlined allows for a 4-percent failure rate that takes part failures into consideration. Until we have perfect parts and perfect people, we will always see at least some failures. In addition, we know that no matter how hard we try, there will always be some customers whom we just can’t satisfy. No one put it better than Bob Lutz, the past vice president of GM’s European Division and the past co-chairman of Chrysler, who once said, “It is our goal to satisfy 100 percent of the satisfiable customers.” Please note that he said “satisfiable.” As your next step, take this plan, put it into place, and you will be on the road to building a more profitable, successful business, while generating happier customers at the same time. On that, you have my promise. ........... For the last 20 years, Bob Cooper has been the president of Elite Worldwide Inc., an ethics-based company that offers shop owners sales, marketing, and management solutions in the form of downloadable audio training courses, seminars, and webinars, coaching services, and service advisor training. You can contact Cooper at contact@eliteworldwidestore.com, or at 800-204-3548. n
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Parts & People
May 2012
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People & Places
compiled by Matthew Sevart positions at Sunflower Mazda in Olathe, Tumminia Mazda in Olathe, and Steve Oliver Mazda in Kansas City, Mo. Scott Shanks of Gardner was selected as the winner of the Royal Purple High Performance Driving Experience Contest. Shanks and his 1970 Dodge Challenger R/T Convertible will drive the 2012 Hot Rod Magazine Power Tour as a guest of Royal Purple. The winner of this year’s High Performance Experience was determined after entrants submitted a picture of their American muscle car or performance vehicle on the Royal Purple Inc. Facebook fan page between March 2 and March 16. More than 340 entries were whittled down to 10 finalists who received the most votes from polling open to Royal Purple’s 158,000 Facebook fans.
ILLINOIS
One of McKay NAPA Auto Parts’ 2012 fundraisers for Make-A-Wish Foundation of Illinois has just been kicked off. The Wishin’ Golf Car Raffle features a custom four-seat Club Car with a flip-over seat for hauling; highly customized paint job; lift kit; custom wheels and tires; sound system; plus many, many more features. This golf car would be great for the course, the backyard, or the farm. Donation tickets are $10 each, and are available at all 18 McKay NAPA Auto Parts stores located in Bethalto, Carlinville, Carlyle, Centralia, Collinsville, Edwardsville, Gillespie, Godfrey, Granite City, Greenville, Highland, Hillsboro, Jerseyville, Litchfield, Nokomis, Staunton, Virden and Wood River to benefit the Illinois Chapter of Make-A-Wish. The tickets will be sold through Oct. 1. The drawing will be held on Oct. 4, at the Annual McKay NAPA Auto Parts Tool & Equipment Show.
Midwest Wheel’s Kansas City branch recently left its old location at 18th and Troost and moved to a 30,000-square-foot warehouse and service facility at 5801 Front St. The new facility required renovation, and the Kansas City Industrial Council recognized Midwest Wheel Companies with the Brick by Brick award for investing in improving the industrial area.
Ethan Holterman, a student at Linn State Technical College, won second place in the Automotive Refinishing Technology division at the recent State SkillsUSA competition in Linn.
MISSOURI
The Kansas City Industrial Council (KCIC) recognized Midwest Wheel Companies, based in Des Moines, Iowa, for taking strides toward the improvement of industrial areas south of the river in Kansas City. Each year KCIC hands out the Brick by Brick award to companies or people that have invested in improving the area. This year, Ron Martin, general manager of the Kansas City and Grandview locations, and Service Manager Bryan Maze accepted the award on behalf of Midwest Wheel’s Kansas City branch. Midwest Wheel Companies left its old location at 18th and Troost and moved into a 30,000-squarefoot warehouse building, at 5801 Front St., which it transformed into a state-of-the-art
KANSAS
Mel Morris, owner of Ausmor, a parts manufacturer, recently relocated the company warehouse from McPherson to Wichita, at 2228 S. Edwards St. The new 10,000-square-foot warehouse offers room to expand, and being in Wichita allows for overnight delivery to the Omaha/Lincoln market, as well as Oklahoma and the Dallas/Ft. Worth area, Morris said. Darrel Randels is the new parts manager at Overland Park Mazda in Overland Park. Randels had been with the company for three years as a counterman before taking the new position. His previous parts experience includes
truck and trailer parts and service maintenance facility. Vipar Heavy Duty has named James McGuire director of business development with responsibility for stockholder development in the Central U.S. McGuire will be based in the Indianapolis area. He will be responsible for the development of new stockholders in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Nebraska, Ohio, Oklahoma, Texas, and Wisconsin.
Pinnacle/Lincoln Financial Group has partnered with the Automotive Parts & Services Association
Linn, will send its winners to the National SkillsUSA competition in Kansas City, Mo., in June. The first-place winners include the following, by division: Automotive Refinishing Technology — Katie Beck of
Ranken Technical College (post secondary), James Chesser of Lewis & Clark Career Center (secondary); Lucas Klinkhardt, of Ranken Technical College, received first place in the Automotive Service Technical Information at the recent State SkillsUSA competition in Linn.
Automotive Service Technical Information — Lucas Klinkhardt of
Ranken Technical College (post secondary), Quentin York of Four Rivers Career Center
LKQ Corp. builds green awareness
Chicago—LKQ Corp. is committed to preserving the environment through its recycling, energy reduction, and reforestation efforts. For the third consecutive year, LKQ is partnering with the Arbor Day Foundation to plant an estimated 12,000 trees in U.S. forests. The Arbor Day Foundation has planted millions of trees since its inception and its hard work helps reduce greenhouse gases and provide essential oxygen. The 2012 LKQ GetGreen tree planting campaign will provide enough oxygen in one year for 48,000 people and reduce 250 tons of greenhouse gases. To help build green awareness, LKQ will plant a tree for each customer who registers for the GetGreen promotion. “Last year we planted more than 10,000 trees in Florida, and we hope to increase that number this year,” said Laurie Garcia, vice president of
Page 28 May 2012
Growth Initiatives and Marketing. Online registration began April 1 at www.LKQGetGreen.com and ends May 31. As part of the sweepstakes, LKQ customers can enter to win hundreds of “green-themed” prizes, including a new fuel-efficient Chevy Cruze automobile, Energy Star HD TVs, bicycles, and energysaving lighting products by entering the GetGreen promotional code found on LKQ recycled, remanufactured, and reconditioned products. “We are proud to once again partner with the Arbor Day Foundation to address the environmental issues that face us today,” Garcia said. “LKQ Corp. is committed to recycling and green awareness, and what better way to demonstrate this commitment than involving our customers in a treeplanting program with the Arbor Day Foundation.” n
Parts & People
(APSA) to provide APSA members with the opportunity to customize and offer 401(k) packages for their employees. For more information on the program, contact Jim Quinten at apsa@apsassociation.com. AMS Automotive LLC has acquired the assets of AMS Automotive Inc. and Ovis Sales LP of Fenton. Chris Jackson will serve as president and lead day-to-day operations. Jackson has more than 23 years of experience in the automotive aftermarket, most recently as vice president of AMS Automotive Inc., and as president of Ovis Sales LP. Working with his father, Ron Jackson, and the AMS team, he has been instrumental in building the company into a supplier to the automotive aftermarket. Jim Mannebach, serving as chief executive officer, will lead the company. Mannebach brings more than 25 years of global leadership experience to AMS. Other key additions to the organization are Jeff Kyle and Joe Asfour. Kyle brings extensive operating and finance leadership and Asfour brings a wide range of market development and sales leadership experience to his role. The recently held Missouri SkillsUSA Leadership and Skills Conference, at Linn State Technical College in
(secondary); Automotive Service Technology — Josh Meyers of Ranken Technical College (post secondary), Scott Martin of Career and Technology Center at Ft. Osage (secondary); Collision Repair Technical Information — Kevin Wiles of
Lebanon Technology and Career Center (post secondary), Brian Finney of Lebanon Technology and Career Center (secondary); Collision Repair Technology — Jonathan Young of Ozarks Technical Community College (post secondary), Kelby Martin of Lewis & Clark Career Center
(secondary).
NEBRASKA
U.S. Rep. Lee Terry, R-Neb., visited Omaha Truck Centers, owned by dealer Trey Mytty, on April 4. “One of the purposes of the visit was to inform Rep. Terry about natural gas-powered trucks,” said Mytty, a nominee for the 2012 Truck Dealer of the Year. The Metropolitan Utilities District (MUD), one of the dealership’s customers in Omaha, showcased one of its natural gas trucks to demonstrate its features. Rep. Terry said he's interested in drafting legislation to provide federal tax credits for natural gas
Continued on page 30 www.partsandpeople.com
Parts & People
May 2012
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People & Places
Continued from page 28
trucks, and visited the dealership to learn more about demand and cost premiums.
On April 4., Nebraska truck dealer Trey Mytty (r.) hosted U.S. Rep. Lee Terry at Omaha Truck Centers for a tour of the dealership and a discussion about natural gas-powered trucks.
the economic, environmental, and product performance benefits of remanufactured motor vehicle components. Bendix was recognized for product innovation excellence by the Automotive Distribution Network at its 2012 Network National Convention in Las Vegas. During the convention’s closing festivities, the Bendix team was presented with the award for exceptional innovation for its “hardware in the box.” The innovation, inspired by customer needs, contains everything necessary for a brake job – including clips, brake lube, noise insulators, wire sensors, and abutment kits — within each premium friction line product.
NATIONAL
Performance Racing Industry
(PRI), producers of the motorsports business magazine and trade show, finalized plans to be purchased by the Specialty
Equipment Market Association
upcoming fiscal year. Every year, TEMA recognizes suppliers who exceeded the company’s expectations in several categories. Bilstein has received the auto motor und sport “Best Brand” award again this year. The 116,273 readers who voted in this year’s rankings once again put Bilstein at the top in the Sports Suspensions/ Springs/Shock Absorbers category. This means that The readers of the Bilstein has been the magazine auto auto motor und sport motor und sport have cast their vote: winner in the sports Bilstein remains suspension, sports unbeaten in the shock absorbers, and Sports Suspension/ springs section seven Springs/ Shock Absorbers category. times in a row. The National Automotive
Technicians Education Foundation
its board of directors has decided to modify the company’s corporate structure to create a separate and independent aftermarket division and has engaged a search firm to fill the position of CEO of the division, who will report directly to the company’s board of directors. Federal-Mogul’s aftermarket business unit is one of the largest independent global suppliers of premiumbranded automotive parts, with global sales of $2.3 billion in 2011. The Timken Co. received the 2011 Quality Award from the Automotive Distribution Network. Timken supplies the group with a full line of automotive aftermarket products, including Timken hub units, bearings, grease, and seals. The award SEMA has purchased Performance Racing was presented at the closing ceremony of Industry (PRI), producers of the the 12th Automotive Distribution Network motorsports business magazine and trade National Convention in Las Vegas. show. SEMA plans to maintain the racing Continental Automotive’s Chassis identity and heritage of PRI Trade Show and Safety Division was recognized as an and PRI Magazine. excellence award winner at Toyota The Motor & Equipment Motor Engineering & Manufacturing North America Inc.’s (TEMA) Annual Supplier Remanufacturers Association (MERA) and its members have announced a Business Meeting (ABM) on March 13. new Remanufacturing Section for the Held at the Northern Kentucky Convention 2012 AAPEX Show, Oct. 30-Nov. 1, in Las Center in Covington, Ky., ABM brought Vegas. The new section, centrally located on together approximately 900 attendees from the main show floor, will be available to across North America. ABM allows TEMA remanufacturer, supplier, and affiliate to discuss business objectives with direct members of MERA. Exhibits will focus on and indirect suppliers in preparation for its
Page 30 May 2012 Parts & People
(SEMA). With more than 20 years of publishing and management experience at PRI, John Kilroy will serve as vice president/general manager of PRI and assume day-to-day operations for the group. All the operations, employees, and offices will remain intact at PRI's current location in Laguna Beach, Calif. The 25th Annual Performance Racing Industry Trade Show will take place Nov. 29-Dec. 1 in the North/South Building of the Orange County Convention Center in Orlando, Fla. It will feature exhibits by 1,100 racing companies in 3,100 booths, requiring 700,000 square feet to house the event. Some 38,000 buyers will attend from across the U.S. and 72 countries. SEMA plans to maintain the racing identity and heritage of the PRI Trade Show and PRI Magazine.
From l., Mike Lambert, president of the Automotive Distribution Network, presents the award for product innovation excellence to Chris Sumrell, manager of Group Sales for Honeywell Friction Materials, and Jim Kelley, director of Sales, Americas, for Honeywell Friction Materials. Federal-Mogul recently announced that
(NATEF) has recognized the generous support from the automotive industry, as well as those organizations whose contributions help to ensure the future supply of Ferdinand Alexander qualified, entry-level (F.A.) Porsche, 76, died NATEF’s new accreditation logo. April 5. Matthias Müller, technicians. The list of industry donors includes: American president and CEO of Porsche AG, paid tribute to Ferdinand Alexander Porsche’s Honda Motor Co., Automotive services to the sports car manufacturer: “As Aftermarket Industry Association (AAIA), Gates Corp., Hendrick the creator of the Porsche 911, he established a Automotive Group, Motor and design culture in our Equipment Manufacturers company that has shaped Association (MEMA), National our sports cars to this Automotive Parts Association (NAPA), National Automotive very day. His philosophy of good design is a legacy Ferdinand Dealers Association (NADA), Alexander National Institute for Automotive to us that we will honor Porsche, the for all time.” His Service Excellence (ASE), Navistar, creator of the Inc., Nissan North America, Inc., childhood was shaped by Porsche 911, and Toyota Motor Sales, USA. cars, and he spent much died April 5. Barrett-Jackson has announced that of his time in the it has contracted collector car legend Rick engineering offices and development workshops of his grandfather, Ferdinand Cole to serve as an Automotive Specialist. The announcement was made live on Porsche, before he enrolled at the Ulm Speed from the auction School of Design. F.A. Porsche created the block during Barrett911, now in its seventh generation. In Jackson’s Palm Beach addition to passenger cars, F.A. Porsche event. Best known as also designed the sports cars of the 1960s. the hobby’s His best-known designs include the Type “Auctioneer to the 804 Formula One race car or the Porsche Stars,” Los Angeles904 Carrera GTS, now considered to be based Cole will utilize one of the most beautiful racing cars ever. Rick Cole has his experience in the A strong and clear design concept typified joined Barrettauction arena to help all of his product designs. His conviction Jackson as an Barrett-Jackson source Automotive was: “Good design should be honest.” Specialist to consignments for Ferdinand Alexander Porsche received help consign collector cars and add numerous honors and awards both for his collector cars his more than 35 years and automobile work as a designer and for individual collections. of expertise and designs. n
www.partsandpeople.com
knowledge to find some of the most highly-collectible automobiles and automobile collections. Cole will work hand in hand with Gary Bennett, vice president of Consignments. In memoriam: Warren J. McEleney, 90, president of the National Automobile Dealers Association (NADA) in 1971, died March 23. McEleney, who served on NADA’s board of directors representing Iowa from 1966 to 1976, began his career with McEleney Motors in Clinton, Iowa, in 1946. He was the father of John McEleney, who served as NADA chairman in 2009. The McEleneys were the first father and son to lead the association. “Warren McEleney was an exceptionally respected and beloved leader in the automobile industry and in his community,” NADA President Phil Brady said. Memorials may be made to Jesus Christ, Prince of Peace Parish, 1105 LaMetta Wynn Dr., Clinton, Iowa 52732. Online condolences may be left at www.papefh.com. Expressions of sympathy may also be sent to John and Ginny McEleney, 1111 Melody Hills, Fulton, Ill. 61252. In memoriam:
ASA-MO/KAN Vision Hi-Tech Training & Expo celebrates 20th year
photos by Matthew Sevart Overland Park, Kan.—It was a packed booth space was spoken for at the recent house on the trade show floor of the 2012 event with 223 booths filled, including 31 Automotive Service Association of first-time exhibitors showcasing the latest Missouri/Kansas (ASA-MO/KAN) Vision tools, equipment, services, and software. Hi-Tech Training & Expo. Nearly every n More than five decades pioneer engineering in the balancing industry
TIRE CHANGERS
WHEEL BALANCERS
MOTORCYCLE CHANGERS
MOTORCYCLE BALANCERS
ALIGNMENT EQUIPMENT TRUCK CHANGERS
TRUCK BALANCERS
Tom and Becky Hand (r.), service advisors at Steve’s Auto Service in Raytown, Mo., get some insight about BG Products’ Induction Service Machine from Mike Boston, owner of BG of KC, a Kansas City-based BG Products distributor.
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Clint Walker (r.), owner of Walker Automotive in Kansas City, discusses the specifics on the latest Challenger lifts with Chris Corkhill, owner of Corky’s Equipment in Marshall, Mo.
Phil Woody (l.), district sales manager for Community Wholesale Tire (CWT) in Kansas City, Mo., took time to demonstrate the new CWT online ordering system for Mace Smith, owner of Fast Trax Tire & Auto in Kansas City, Mo.
ACDelco ............................................................9 Ausmor Inc. .......................................................6 Becker Tire & Treading....................................20 BG Products distributors..................................4 CEMB USA......................................................31 Chrysler LLC ...................................................17 Community Wholesale Tire ............................22 Corky’s Equipment .........................................12 Electra Tech Inc...............................................10 Elite Worldwide ...............................................24 Exedy Globalparts Corp. ..................................7 GAAS...............................................................26 Jasper Engines & Transmissions......................8 Jones Automotive Inc. ....................................19 Kansas City Parts Connection .......................29 Kia Motors America ........................................11 Mercedes-Benz USA LLC ..............................21 Myers Brothers................................................27
NAPA Auto Parts...............................................5 NAPA ProLink..................................................23 New Century Dodge .......................................25 Qualcast Products ..........................................10 QRP Central ....................................................19 Scholfield Pontiac GMC .................................22 Scholfield Hyundai..........................................15 Sea Foam Products ........................................14 Sterling Bearing...............................................20 Subaru of America dealerships ......................32 Superior Honda...............................................16 Total Lubricants USA Inc. .................................2 Uni-Select........................................................12 Van Chevrolet..................................................15 Webright Media...............................................27 Wholesale Batteries, Inc. ..................................6 Zurich...............................................................13
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The Kanas City, Mo.-based Factory Motorparts (FMP) team had the chance to talk with a number of its customers. From l., FMP Sales Representative Dave Doser, Sales Manager Jay Brown, Sales Representative Troy Gallagher, Donovan’s Service Owner Pat Donovan, and FMP Fleet Sales Representative Richard Riddel.
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MIDWEST EDITION
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Online Edition at www.partsandpeople.com Volume 21 Number 5 May 2012 COLLISION REPAIR
Pages 15-19 C1-C4
Excelsior Springs shop owner invests in
Rural Kansas repair shop finds niche as tire specialist, increases services
PDR tools, expands restoration work .15 by Matthew Sevart Service, Koons said general With a mild winter across the Hillsboro, Kan.—“We are service work is increasing. Midwest, Chris Jones, owner a society that thrives on “We’ve really extended into the of Jones Custom & Collision, has increased his intake of instant gratification,” said service side to fulfill the restoration work to make up Rod Koons, owner of Rod’s customers’ needs,” said Koons, for the lack of insurance jobs. Tire & Service. “If a customer who works primarily with Collision Repair Training Notes . . . .16 has to wait until tomorrow, all CARQUEST for his aftermarket I have done is given them a parts. “It’s a very good profit Automakers increasingly turn to I-CAR chance to take their car center for us. It ties right together for training, certification programs . C-2 As automakers open up their collision shop elsewhere.” with the tire work, and it certification programs to independent shops For Koons, meeting his financially represents 25 percent as well as dealers, they are increasingly customers’ immediate needs of our business.” making I-CAR training part of the program requirements. means maintaining a millionA business is only as efficient as dollar tire inventory of the tools and equipment it utilizes, Rod Koons, owner of Rod’s Tire & Service, has consistently Essentials shops should understand passenger, truck, lawn, and expanded his business since he opened in 1999. In 2011, he and Koons said that he is a firm about DRP contracts before signing . 17 sold nearly 8,000 new tires, 1,500 used tires, and says he is What should shops be looking for and farm applications at his believer in investing in the right on track to do $4 million in sales for 2012. thinking about when presented with a new facility located in rural tool for the job. or revised direct repair agreement? And Kansas, 60 miles north of Wichita. “We’ll do $4 million in business this His major tire and undercar equipment what are their options if they don’t like some “Our theory on inventory is you can’t year,” said Koons, adding that he sold includes a Hunter Hawkeye Alignment of the terms being offered? sell it if you don’t have it,” he said. nearly 8,000 new tires and 1,500 used machine, Corghi, Ammco-Coats, and Midwest Auto Body Trade Show draws “Having the tire in stock allows us to ask, tires in 2011. “Our goal, from when we Hunter tire machines, two Hunter Road 450 collision industry professionals . 19 ‘Can we put those on today for you?’ It’s started, is for people to think of Rod’s Continued on page 20 a yes-or-no question.” Tire & Service when they think tires ONLINE Koons is a Bridgestone-Firestone direct because we can take care of their needs.” More photos and INSIDE Parts & People articles at dealer, as well as a Goodyear G3X dealer, Koons said he plans for a 25 to 30 partsandpeople.com More than 13,700 circulated from which he receives weekly shipments percent profit margin on passenger and Energy Suspension perfects Auto Notes . . . . . . . . . . . . . . . . . . . . . 10 to maintain his inventory. light truck tires, and 12 to 15 percent on Despite high fuel prices, almost every auto polyurethane parts for cars and trucks . 3 Business has steadily grown since tractor trailer tires. Energy Suspension literally invented and truck manufacturer had an exceptional Koons opened the shop in 1999 with his While tire-related business represents polyurethane bushings and suspension first quarter. components for cars and trucks three wife and business partner, Carrie Koons. the lion’s share of work at Rod’s Tire &
decades ago. MW/C
New MATR officers weigh in on association goals and challenges . . . 3
Being a ‘million-dollar shop’ means being a ‘yes’ company . . . . . . . . . . . . 11
Acquiring quality salvage, continuing to be proactive legislatively, and building membership top the list of challenges and goals for newly elected Missouri Auto & Truck Recyclers Association (MATR) officers.
Iowa recycler adapts to industry trends, urges more industry involvement . . . . 7
Greg Sands, owner of 24 Service Street repair shops and direct-mail company Mudlick Mail, offers strategies on increasing business.
Undercar Product Notes . . . . . . . . . . 22 Knowing customer base, competition helps shops advertise effectively . . . 23 Cooper’s Keys to Auto Repair Profits . 27 People & Places . . . . . . . . . . . . . . . . . 28 Vision exhibitors showcase their latest tools, equipment, and services . . . . . 31
Mike Swift, co-owner of Trails End Auto and Truck Salvage, discusses the state of the recycling industry and the importance of collaboration.
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Automotive Recycling & “Green” Practices / Undercar Maintenance & Repair Focus Issue
Energy Suspension continues to perfect polyurethane parts for cars and trucks
by Dick DeLoach San Clemente, Calif.—Nearly 30 years ago, lifelong car enthusiast and inventor Don Bunker founded Energy Suspension (ES), makers of polyurethane bushings and suspension components, but his involvement in the automobile industry goes back long before that. “When I was five years old, I was working at my dad Paul’s repair service garage in Cedar Energy Suspension founder Don Bunker, Rapids, Iowa,” whose company Bunker said. “I makes automotive suspension bushings remember thinking at the time that I and components, says he started out was just like my making polyurethane dad. I had a rag in skateboard truck my back pocket pads in 1968. and the dirtier my hands would get, the happier I was. So cars and trucks have been in my life ever since.” An avid skateboarder in his youth, Bunker said he began making polyurethane wheels and the first polyurethane amaze even the people who “truck” cushions (pads) for work with it every day, skateboards in 1968. “But my adding that “it’s as much an love for fast cars has always art as it is a science.” been with me, so I investigated Taeger said the complex making polyurethane for the and diverse nature of Energy auto industry to replace the Suspension’s proprietary rubber components with material requires its chemists specially formulated to constantly dedicate their polyurethane,” he said. “That attention to development. was 29 years ago, when Energy “This devotion has produced Suspension was born.” the quality components that Mike Papazian, national sales our customers continue to manager/performance division at demand,” he said. “Our ES, said if you mention policy of manufacturing inpolyurethane in an automotiveThe Energy Suspension management team includes, from l., Austin house from the initial R&D aftermarket context today, the stages to chemical Squires, Kevin Taeger, Mike Papazian, Pauline Babic, and Mike Santa Cruz. company that will most likely formulation, molding, and come to mind is Energy Suspension. “If a “Our Hyper-Flex bushings are made final packaging gives us control of every vehicle is equipped with performance from a polyurethane formula that has been aspect of the manufacturing process,” suspension bushings, chances are good that tweaked to perfection over the years,” Taeger said. “This gives us the ability to the bushings have our logo stamped on Papazian said. “Urethane is stronger and produce a genuine American-made product them,” he said. stiffer than rubber, plus it is resistant to and gives our customers absolute Bunker’s initial decision to specialize petroleum products like smog, ozone, gas, confidence in the Energy Suspension exclusively in polyurethane has established and oil. So it won’t break down and crack name.” ES as the most asked-for name in like rubber components.” The company’s involvement doesn’t performance polyurethane components Kevin Taeger, ES’ sales manager/OE Continued on page 6 today, Papazian said. division, said polyurethane continues to
New MATR officers weigh in on association goals and challenges
by Rob Merwin depressed economy, said MATR Jefferson City, Mo.—Acquiring quality President Brad Schwartz, of Liberty Auto salvage, continuing to be proactive Salvage in St. Louis, who assumed the legislatively, and building membership office from Dan Richardson, now MATR top the list of challenges and goals for past president, of Rich Industries in Kansas newly elected Missouri Auto & Truck City. “The ripples affect us through Recyclers Association (MATR) officers. changes within the insurance companies, MATR Secretary Joseph Heiman, of cost of salvage, competition from sister Al’s Foreign Auto Salvage in St. Louis, industries, and bills introduced in the said there are a number of complications Missouri legislature,” Schwartz said. in purchasing quality salvage vehicles, including out-ofcountry buyers with larger budgets and unregulated usedcar buyers purchasing salvage vehicles to repair and sell. MATR has just begun a newsletter for members, which “Many of these buyers examines legislative concerns, as well as highlighting current events and the state of the association. dispose of waste and biproducts improperly, which allows them He said the global market now accounts to have lower production costs and, for approximately 40 percent of salvage consequently, more to spend on salvage sold at insurance auctions. Among the vehicles,” he said. “I think it’s important proposed bills that often circulate through to report such violations and have MATR the Missouri legislature, and which relate work with enforcement to regulate these directly to the industry, are ones that buyers and level the playing field. The involve opening the insurance auction changing rules of bi-product disposal, the pools to the public, restrictions or changes rising cost of inventory, and the constant on titling vehicles, environmental issues, battle for accurate parts grading all and scrap metals, Schwartz said. present challenges we can help each other MATR Treasurer Ron Smith, of overcome.” Hillsdale Auto Parts in St. Louis, said Another challenge is adapting to a “state representatives and senators need to be educated on how the industry works,” The MATR board is also holding and MATR members “need to be informed conference calls for board members once on what’s going on at the state capitol.” every two or three months to discuss the Heiman said MATR has worked in the issues affecting the industry, Schwartz said. past to prevent individuals from purchasing “Our most recent topic dealt with a vehicles at salvage auctions. “I believe proposed bill regarding abandoned vehicles those actions have helped all our members and their titling requirements.” on a day-to-day basis, All officers said more than some would increased MATR “ … The rising cost of realize. I do, however, membership was a think the insurance inventory and the constant shared goal. auctions will again “I would love to battle for accurate parts push the issue and I be able to grow grading all present trust MATR will be active ready.” He said he challenges we can help each membership,” questions SB No. 633, Heiman said. “I other overcome.” which he said might think that MATR lead to future was such a great complications and “has me concerned association and could be again when we mainly because it will allow the sale of a motivate membership.” 10-year-old scrap vehicle to a crusher Smith said he hopes that in his new without a title.” position he can increase membership, both Smith added that recyclers can also meet regular and associate, through the some of those challenges by adjusting their newsletter and informing salvage dealers businesses to match the vehicles they can of MATR benefits. n buy. MATR has just begun a newsletter for Editor’s note: MATR Vice President members, which examines legislative Dean Yancey was unavailable for concerns, as well as highlighting current comment. events and the state of the association, Heiman said.
Parts & People
May 2012
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Parts & People
The Monthly Regional Publication For Midwest Automotive Specialists
Volume 21 / Number 5, May 2012 Publisher: Lance Buchner Associate Publisher: Michael Anderson Managing Editor: Rob Merwin Midwest Regional Manager: Matthew Sevart Contributors: John Yoswick, Dick DeLoach, Jerold B. Smith Graphic Arts Director: Mario Waller Printer: Tribune Publishing Co. Inc. Parts & People is published monthly by Automotive Counseling & Publishing Company, Inc., a Colorado corporation. ISSN 1083-771Z Midwest Edition offices 1715 1/2 W. 39th St. Suite 201 Kansas City, MO 64111 Phone: 816-960-4511, Toll Free: 888-600-2418 matt.sevart@partsandpeople.com Corporate Office Automotive Counseling & Publishing Co., Inc. PO Box 18731, Denver, Colorado 80218-7310 800-530-8557 President/Publisher: Lance Buchner National Sales Director & Associate Publisher: Michael Anderson Director of Sales Development and Marketing: Art Wolfe Founded by Lance Buchner and Dave Lucia. www.partsandpeople.com Office Manager: Amanda Buchner Web and Production Manager: James Faust Circulation: Tracy Buchner, tracy@partsandpeople.com Subscriptions are free to all automotive-related Midwest regional business owners and managers; $36 per year, per edition to all others. For mail renewals or change of address, please include mailing label. Reproduction of any of the contents of this publication by any means is prohibited without specific written permission of the publisher. Copyright 2012, Automotive Counseling & Publishing Company, Inc. All rights reserved.
Publisher’s Statement
Supplier sentiments positive
The Aftermarket Supplier Sentiment Index for the first quarter of 2012 registered the most positive supplier sentiment since 2010, according to the Automotive Aftermarket Suppliers Association (AASA) in its “Aftermarket Supplier Barometer.” The outlook for the future became significantly more positive in the first quarter. “Sales increased, gross margins improved slightly and hiring was up,” said Steve Handschuh, president and COO of AASA. “Inventory and capacity additions were stable quarter-overquarter, firmly in the positive territory.” Surprisingly, concerns regarding raw material costs and world economic conditions have declined, according to the report.
Gas prices
weakening currency in relation to commodities and, more specifically, oil? When the dollar is proclaimed to be strong and strengthening, it is being compared to collapsing currencies in Europe and Japan, where international finance and banking malfeasance also took its toll. Are we just being price-gouged?
Fuel economy contributes to increasing pace of new car sales
As gasoline prices crossed the $4-per-gallon price in select states in early April, and AAA reported a national average of gasoline prices at $3.92 per gallon, many wonder what the effects will be. Considering how much the American consumer is affected by the cost of gas at the pump and how it affects the economy and the prices of goods and services, it is troubling to witness such upward volatility. The rise in gas prices is no longer just a supply-and-demand determination. World oil consumption is down in Europe, China, and the U.S. Domestic production reportedly covers 80 percent of U.S. consumption as the U.S becomes an exporter of oil. When overly centralized insiders control two-thirds of oil futures, the pricing is suspect. Financial speculators historically accounted for about 30 percent of oil contracts. Today, speculators account for 64 percent, according to the Commodities Futures Trading Commission. Beyond unregulated speculation, however, lies a new and unfamiliar concern. Are gas prices rising because of our
Higher gas prices are one reason why Americans are buying more fuel-efficient vehicles, according to a study released by the University of Michigan Transportation Research Institute in mid-April and reported upon by the Detroit Free Press. The report stated that fuel economy estimates of all new vehicles sold in the U.S. has topped 24 miles per gallon for the first time. The fuel efficiency of vehicles sold in March is now 20 percent — or 4 MPG — higher than in October 2007, when the University of Michigan began monitoring and reporting. General Motors Co. reported that its 12 vehicles getting 30 MPG or better on the highway had combined sales of 100,000 for March, its highest monthly total of such vehicles ever sold. The economy is being rebuilt on the surging sales of the auto industry. Reports now indicate that one in ten new jobs in America are auto-industry-related.
Tire back orders rolling and filled
Last year, back orders for popular tires soared as the percentage of fill dropped dramatically. With increased tire manufacturing capacity comes a new and significant supply of tires to the U.S. this year. Look for retail sales promotions and competitive pricing to proliferate this summer. With tire sales rebounding, associated parts and service business should also drive undercar parts sales this year. n
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Only 35 percent of hybrid owners buying hybrids again, according to Polk
Southfield, Mich.—While the selection of hybrid models in the U.S. has more than doubled since 2007, only 35 percent of hybrid vehicle owners chose to purchase a hybrid again when returning to market in 2011, according to recent analysis by Polk. If repurchase behavior among the highvolume audience of Toyota Prius owners isn’t factored in, hybrid loyalty drops to less than 25 percent. However, hybrid owners appear to maintain brand loyalty when returning to the new-car market. For example, in 2011, 60 percent of Toyota hybrid owners returned to the market to purchase another Toyota, according to Polk, while 41 percent of them purchased another hybrid from any brand. In the case of Honda hybrid owners, more than 52 percent of them stayed with the Honda brand, while just less than 20 percent of this same owner group bought another hybrid vehicle from any brand. “Having a hybrid in the product lineup can certainly give a brand a competitive edge when it comes to attracting new customers,” said Brad Smith, director of Polk’s Loyalty Management Practice. “The repurchase rates of hybrid vehicles are an indication that consumers are continuing to seek alternative solutions to high fuel prices.” Online cross-shopping data from Edmunds.com indicates that consumers are doing their due diligence to compare hybrids with similar gasoline-powered vehicles. As an example, the Honda Civic is the second most cross-shopped vehicle among both Toyota Prius and Honda Insight shoppers. Hybrid vehicles represent just 2.4 percent of the overall new-vehicle market in the U.S., according to Polk, down from a high of 2.9 percent in 2008. “The lineup of alternate drive vehicles and their premium price points just aren’t appealing enough to consumers to give the segment the momentum it once anticipated, especially given the growing strength of fuel economy among compact and midsize competitors,” according to Lacey Plache, Edmunds.com chief economist. “For EVs and PHEVs in particular, certain obstacles — including consumer unease with unfamiliar technology and the lack of an adequate recharging infrastructure — will need to be overcome before sales increase.” Polk’s research also indicates that volatility in fuel prices between 2008 and 2011, which ranged from just under $2.00/gallon to nearly $4.00/gallon, had little impact on hybrid segment loyalty. n
KNOW HOW
Aftermarket supplier sentiment is most positive since 2010
Research Triangle Park, N.C.—The Aftermarket Supplier Sentiment Index for the first quarter of 2012 registered the most positive supplier sentiment since 2010, according to the Automotive Aftermarket Suppliers Association (AASA) in its “Aftermarket Supplier Barometer.” “Outlook for the future became significantly more positive in the first quarter,” said Steve Handschuh, president and COO of AASA. “Sales grew, gross margin improved slightly, and hiring was slightly up. Inventory and capacity additions were stable quarter-over-quarter, firmly in the positive territory.” Paul McCarthy, AASA vice president of industry analysis, planning and member services, said that although the ‘Top 10 Concerns’ in the AASA Aftermarket Supplier Barometer have remained the same over the past two years, it has seen the relative importance of some issues increase and decrease. “Suppliers’ concerns regarding raw material costs and world economic conditions have declined,” he said. “However, concern has increased regarding margin erosion, lack of pricing power and product returns.” The “AASA Aftermarket Supplier Barometer” is a quarterly survey of AASA full-service supplier members on key indicators and market trends. The full survey report is an exclusive AASA member benefit and is available only to member companies that participate in the survey. n
Parts & People May 2012 Page 5
Energy Suspension continues to perfect polyurethane parts for cars and trucks
alternative to a costly dealer replacement part,” Papazian said. “Also, the parts and stop when the order is shipped, Papazian labor costs are more reasonable for the said. “Our sales staff and sales reps do repair shop to offer a more affordable product information training at our option to the consumer.” warehouse distributors’ locations with the Papazian said dealerships are forcing people who answer their phones,” he consumers and installers to buy complete said. “It includes the features and benefits control arms and steering racks when of our products, only the bushings installation tips, “Our policy of manufacturing are needed, which warranty, product exponentially in-house ... gives us control of drives up repair support, and we’re looking into adding costs. every aspect of the video and online “Energy manufacturing process.” Suspension training.” Shops are faced comes to the with the obvious rescue with a challenge of coping with the economy simple solution by offering better than and competition, Papazian said, as well as OE rubber with polyurethane replacement keeping up with technological bushings for a fraction of the cost to advancements in today’s vehicles. replace the complete part,” Taeger said. “The undercar repair market has a ES is known worldwide as the premier choice to offer an affordable, manufacturer of performance differentiated line of polyurethane polyurethane suspension components for products to repair the part as an street and off-road applications, Taeger
Continued from page 3
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said, but the company also makes private-label products for a number of companies. “That’s where I come in,” he said. “We do a lot of private-label products for other companies using their drawings and specs, so we don’t test them,” Taeger said. “We do a lot of sway bar bushings and other products like that.” One of Energy Suspension’s new products for 2012 In 1991 the company started a is this Chrysler LX polyurethane bushing kit for 2005-2010 Chrysler 300, Dodge Charger, Dodge heavy-duty division, which Magnum, and Dodge Challenger. Taeger said has done well. “One of our first heavy-duty products was our red-and-blue Glad Hand Seals, which replace the rubber seals for big-rig air brakes,” he said. “Now we also offer torque rod bushings, motor mounts, and hood rests.” Papazian said ES has applications to fit most popular vehicles, but new ones are being added constantly. “Since 2011 Energy Suspension now offers a complete we have added more than 80 polyurethane suspension and body mount kit for new part numbers, including 1998-2011 Ford Ranger 2WD and 4WD pickups. products for the 5th generation Camaro, Dodge LX platform, Nissan Visions, a nonprofit workplace center for 350Z, Jeep Wrangler JK, and the Ford disabled and mentally challenged Ranger. We have also developed several individuals, as well as an adult education new part numbers in our heavy-duty program for Saddleback School District.” division, which have been well received.” “Due to state-funded cutbacks in the ES has also embarked on a new line of education system, Energy Suspension has motorcycle products known as Energy always supported many educational Suspension Moto division, said Austin programs,” Taeger said. “ES sponsors the Squires, head of new product Hot Rodders of Tomorrow program, development, motorcycle and marine which gets high school kids more divisions. involved with the automotive industry, The company is also involved in many and ES has hired SEMA interns through community and industry programs, their internship program.” n Papazian said. “ES supports Vocational
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Page 6
May 2012
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Iowa recycler adapts to industry trends, urges more industry involvement
End Auto and Truck Salvage was to combine resources and efforts with other independent automotive recycling facilities throughout Iowa as a member of the Quality Replacement Parts (QRP) Central group. “We wanted 20 of the more aggressive
Steven (l.) and Mike Swift, brothers and co-owners of Trails End Auto and Truck Salvage, grew up in the industry.
auto recyclers in the state,” he said.“We wanted yards that were focused on better parts, better quality, and same-day or nextday service.” The group, which formed about five years ago, now has 19 member yards that share inventories, as well as parts delivery, which is offered through Panama Transfer in Panama and Wheeler’s Automotive Supply Express Parts in Waterloo. Roger Jorgenson, the QRP-Central general manager, acts as the liaison between the member facilities and the mechanical
and collision repair shops, as well as the insurance companies that they serve. “Just like most of our customers, we are independent businesses, and we think it is important to work with local, independent businesses and people who pay taxes and buy in your state,” Swift said. Swift, the immediate past president of the Iowa Auto Recyclers (IAR), is the 20112012 Automotive Recycling Association (ARA) regional director of Region VII, which includes Iowa, North Dakota, South
Continued on page 8
by Matthew Sevart Des Moines, Iowa—Some 27 million wrecked cars are going to salvage every year in the U.S., said Mike Swift, co-owner of Trails End Auto and Truck Salvage. And while this may seem promising for automotive recyclers across the country, Swift said unfortunately 46 percent of those vehicles are being shipped overseas. The influx of vehicles shipped abroad means a decreased supply of wrecked vehicles available to automotive recyclers, he said, which leads to higher prices, and thus, holes in inventory for many recycling facilities. This is just one challenge facing the industry, said Swift, who, like many independent business owners, is feeling pressure as corporate competitors continue to gain more market share. “In the recycling business, we are now dealing with the big corporations, like LKQ, who continue to increase in size, as well as all our other competitors, and that makes success in this business a lot more difficult than it used to be,” said Swift, who alongside his brother and co-owner, Steve Swift, grew up in the automotive recycling business. Their grandfather Ora “Orrie” Swift opened Swift Auto Salvage in the 1940s and sold the business in 1975 to their father, Dale Swift. Swift said he and his brother worked with their father until 1999, when they ventured out together and purchased Trails End Auto and Truck Salvage. “I graduated from high school in 1979 and worked in the salvage business during the 1980s. It was easy then, you could spend money and make money with no problem,” Swift said. Those days are long gone, he said. Between the increased competition from national companies and decreased availability of salvaged vehicles, the business model has shifted, said Swift, adding that the most logical step for Trails
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Iowa recycler adapts to industry trends, urges more industry involvement
Continued from page 7
Dakota, Nebraska, Kansas, and Missouri. In March, Swift and IAR Executive Director Sue Schauls traveled to Washington D.C., to represent IAR and ARA Region VII. Swift said his main objective was to get a line item on a bill that would help with enforcement of the National Using Checkmate, an inventory management software, Sam Swift, son of Co-Owner Mike Motor Vehicle Title Information Swift, locates a part in the shop’s inventory. Systems (NMVTIS) law, which Through membership in the QRP-Central group, requires recycling facilities to report Trails End Auto and Truck Salvage shares an inventory with 18 other automotive recyclers VINs to the federal government. “We need to have standard practices across Iowa. in place across the board,” Swift said. Director Sue Schauls, developing “These issues affect our industry, and we programs like the Iowa Certified need more recyclers to participate in the Automotive Recyclers Environmental solution. The association is there for you, be Program (I-CARE), directed at helping a part of it, get involved, and stop sitting on recyclers meet the regulations imposed by the sidelines.” the Environmental Protection Agency Swift said the IAR keeps him educated (EPA) and Department of Natural and on track, specifically with Resources (DNR). Schauls said 70 professionals such as IAR Executive percent of recyclers in Iowa are certified
through the program. “We focus on the process of each individual yard,” Schauls said, “and they have all benefited by just getting started. Some of the more progressive yards that are already up to speed can even use the program to make sure they dot all the i’s and cross the t’s.” Meeting the imposed requirements and regulations is imperative for recycling
facilities, she said. “Trails End has had the Environmental Protection Agency (EPA) and the Iowa Department of Natural Resources both make visits,” Swift said. “They will come to your business and if you are not a part of one of these great associations that keep you up to date and inline, it is going to cost you — not only money, but possibly your business.” n
NTEA’s Green Truck Association announces technology councils
Farmington Hills, Mich.—The Green Truck Association (GTA) announced the formation of three technology councils to better represent specific segments within the green truck industry. Technology Councils operate under the GTA umbrella. GTA is an affiliate division of the NTEA – the association for the work truck industry. GTA Technology Councils and their purposes are: • Sustainable Integration Technology Council – advances the integration of, and resolves the technical communications for, upfitters of green technologies within the work truck industry. • Lightweight Materials Technology Council – brings together work truck professionals, technical experts, and government representatives as a means to compile information about the development and usage of lightweight materials in the manufacture, specification, and operation of truck equipment and related accessories for fuel efficiency; vehicle “right sizing”; carbon reduction; operational longevity; recycling; general mass-compounding; and increased payload. • Vehicle Electrification Technology Council (VETC) – explores potential efficiency and performance benefits of vehicle electrification, and provides a mechanism for identifying and promoting useful electrification technologies within the work truck market. To help facilitate increased adoption of work truck electrification technologies, the VETC facilitates education, works to remove road blocks, and resolves identified issues. To learn more about GTA Technology Council initiatives as well as opportunities for involvement, e-mail gtainfo@ntea.com. n
VeriFacts appointed to verify green garage sustainability
Reno, Nev.—GRC-Pirk Management, the registrar for www.FindGreenGarage.com, has announced that VeriFacts Automotive has been appointed to verify that shops maintain green sustainability. VeriFacts Automotive enables the Green Garage registrars to verify data needed to validate key indicators related to energy consumption and greenhouse gas emissions, helping shop owners pinpoint ways to reduce their energy consumption and costs. VeriFacts Automotive assists shop owners in identifying core environmental performance indicators under Green and Clean Cities programs for pollution prevention and energy efficiency, including direct on-premises evaluation of product and power usage from utilities and other vendors. Based on this information, shop owners can improve their carbon footprint and institute business practices that are both environmentally and economically sustainable, therefore minimizing their exposure to fluctuating energy costs. “In today’s business world there are not
Page 8 May 2012 Parts & People
too many times you can do the right thing, save money, and increase your bottom line,” said Farzam Afshar, CEO VeriFacts Automotive. “In many cases, shops can’t retain dedicated consultants to audit their environmental performance. By integrating green sustainability practices with carbon footprint computation, we are able to identify opportunities that benefit both the bottom line and the environment. “VeriFacts Automotive can assist with one of the biggest challenges facing the industry today — the need to gather and track environmental data,” said Steven E. Schillinger, president GRC-Pirk Management. The VeriFacts solution can not only improve operational performance, but it also allows shops to comply with the emerging regulatory environment and satisfy demands from customers and supply-chain partners for greater transparency,” Schillinger said. “Shops are increasingly challenged with ways to do good for their bottom line and the environment.” n
www.partsandpeople.com
Parts & People
May 2012
Page 9
Auto Notes
Tough Ram. The 2012 Dodge Ram 1500 has been named one of
compiled by Jerold B. Smith and for two years beginning in 2008, Toyota was the largest automaker in the world. The company’s first car was the Model AA. Hyundai Motor America recently celebrated its 25th anniversary in the U.S. Its first car sold in the American market was the Excel (frankly, not one of our favorites ever tested). Since 1987, Hyundai has sold more than 6,600,000 vehicles in the U.S., with more than 4,350,000 still on the road. Sonata, Elantra, and Santa Fe models are produced at plants in Alabama and Georgia. From entry-level cars 25 years ago, Hyundai today produces high-quality coupes, sedans, crossovers, and very competitive luxury models such as the Equus and Genesis. German automaker Opel marks its 150th anniversary this year. A company that started out building sewing machines and bicycles, Adam Opel AG was the first Sakichi Toyoda German carmaker to was one of Japan’s use an automated most prolific assembly line, in inventors and laid the foundation for 1928. The firm Toyota Motor designed the Rocket Corp. Car, which at one point set the world land-speed record. Opel has been a wholly owned company of General Motors since 1931 and today, along with its British sister car, Vauxhall, is sold in more than 40 countries.
Vehicle sales booming. Despite high
Consumers Digest’s “2012 Best Buys” for its smooth-riding suspension, as well as its available V-6 and V-8 engines, acceleration, lockable storage boxes (Ram Box Cargo Management System), ergonomics, fuel economy, fit/finish, and utility. The Ram won The Dodge Ram 1500, shown here with the Ram box option, is an award winner based on numerous 2011 awards, including several elements of its design and utility. Manufacturer of the Year from OffRoad Adventures and the 2011 All-Star absorbers and there is a front stabilizer bar. Award from Automobile Magazine. Towing capacities on the Ram 1500 The Ram 1500 has an exceptional range from 6,250 pounds on the SLT with Electronic Stability Control (ESC) system the 4.7L V-8 engine to 8,900 pounds on two that allows all-season front-wheel-drive models equipped with the 5.7L Hemi V-8. (FWD) with the performance of rear-wheel- Payloads range from 1,344 to 1,484 pounds. drive (RWD). The ESC combines ABS and traction control systems and determines Global anniversaries. The founder of when to apply one or more brakes and Toyota Motor Corp., Sakichi Toyoda, reduce engine torque in critical conditions. was born in Japan 145 years ago, in 1867. The smooth ride quality and handling is From a company that started out attributable in part to a multi-coil rear manufacturing textile looms in 1926, suspension, Consumers Digest said. Both Toyoda’s son began building cars in 1936 front and rear have heavy-duty shock (the “d” in the brand name became a “t”),
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sales were driven by the demand for small cars and crossovers. Honda was the only U.S. brand that had a sales decrease, showing a 5-percent drop, but the Civic was the 10th-best-selling vehicle for the month and the CR-V crossover had record sales. Chrysler’s sales jumped 34 percent in March with hot Fiat and Chrysler sedan sales; Dodge Ram pickup sales were up 23 percent over 2011. Ford posted its best March sales in five years with brisk sales of Fusion, Focus, and Edge models that all set March sales records. Even the F-Series pickups were up 9 percent as the demand for commercial vehicles improves. General Motors’ March sales of cars and light trucks rose 12 percent, with sales of its 12 vehicles that get 30 MPG or better fuel economy reaching an all-time high of more than 100,000 units sold. Kia had its best-ever March sales record of 57,505 units sold and is up 31.8 percent on YTD sales. Kia’s affiliate company, Hyundai, also had a record March on sales of 69,728, up 13 percent. Audi posted its 15th consecutive monthly sales record in March and its thirdbest month ever in the U.S. German automakers BMW and Mercedes-Benz both posted positive sales in March, with BMW sales up 17 percent for the first quarter.
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reported sales of its Outlander Sport CUV at 1,634 units in March, the best single month since the model was introduced in October 2010. At the New York Auto Show in early April, media and consumers viewed the first Outlander Sport manufactured in Normal, Ill. Nissan had its best-ever sales month in March, up 12.5 percent on sales of more than 136,300 vehicles. Subaru had another record month and Toyota had its best March since 2008 on sales of more than 200,000 vehicles. And Volkswagen was also a winner, with increased sales of 35 percent, the company’s best March sales since 1973. n
Page 10 May 2012 Parts & People www.partsandpeople.com
Greg Sands leads a seminar, “How to be a million-dollar shop,” during the ASAMO/KAN Vision Hi-Tech Training & Expo Power Summit. Sands shared strategies that he implements at his own repair shops, now totaling 24 across the country.
Being a ‘million-dollar shop’ means being a ‘yes’ company
by Matthew Sevart Overland Park, Kan.—During the 20th annual Vision Hi-Tech Training & Expo, hosted by the Automotive Service Association of Missouri/Kansas (ASAMO/KAN), Greg Sands, owner of 24 Service Street automotive repair shops and direct-mail company Mudlick Mail, led a management seminar, “How to be a million-dollar shop.” During the half-day seminar, Sands touched on a number of strategies for shop owners, from appearance and signage to employee retention and marketing.
Be a ‘yes’ company Focus on your employees
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Sands said shops that want to grow have to become “yes companies,” which basically means when a customer comes to the front counter, for any reason, his service advisors cannot say no. “You have customers whose vehicles are in the shop, where you are working on the repair, and customers walking in your front door,” he said. “Your front door is the priority, because the other jobs are already sold.” Turning away business in order to get the immediate day’s work out misses the point, Sands said. “The only way this business works is you get more sales out of your busy days,” he said. “When you fish, you stay there when they’re biting and you stay until you get them all.” Being a ‘yes’ company is not just saying yes to customers coming in, Sands said, it also means being available when customers need you. “Unless you have a monopoly on your market, I recommend shops be open on Saturdays,” he said. “Saturday is our No. 1 day every week, and being open on Saturday pays for our management team.”
Hire the right people, and sales become a lot easier, said Sands, adding that he trains his service advisors to sell in systems. “We always compliment the car, tell them some positives, and then tell them what they need,” he said. “We have a specific way that we script the sale, and then we role-play with each other, and sell it.” “When selling an estimate, you never stop at the price,” he said. “If you end on the price, they’ll respond on price. Instead, you say, ‘We can get right to work on those repairs, is this the best number I can reach you at when we are finished?’ The idea is to get them to say yes. They brought the car to me, and I’m telling them exactly what they need. Now, I just need them to say yes.” Sands said follow-up and accountability with employees is crucial to the success of his shops. “One of the things we do for our phone skills is record all of our calls,” he said. “The bad ones, we talk to the employee in private about. The good ones we play for everyone to hear. You’ll have people racing to do a good job.” As for employee relations, Sands said shop owners and managers have to give the staff praise and recognition when they do what you are asking of them. “All of us die for recognition,” he said, and when we stop recognizing our employees, that’s when it goes bad. “Intimidation only works for a little while. It’s not a long-term fix.”
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“When I got into this industry, I was surprised how many people would say, ‘I’m not a numbers guy,’” Sands said. “If you’re the type that says, ‘I don’t believe
Continued on page 12
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Parts & People
May 2012
Page 11
Being a ‘million-dollar shop’ means being a ‘yes’ company
Continued from page 11
Metal exposure from laundered shop towels may exceed permissible levels
San Francisco—Gradient, an important for safety managers and plant environmental and risk science consulting workers to understand metal firm, has presented new data that shows contamination levels in laundered shop metal exposure from use of laundered towels so they can make informed shop towels may exceed the permissible decisions about their use.” levels allowed in drinking water. Workers might ingest metals Gradient presented a poster describing from contaminated shop towels its findings at the annual Society of Toxicology Annual Meeting and ToxExpo, As recognized by multiple federal March 11-15, in San Francisco. The poster agencies such as the EPA, people can describes exposure to metals on shop transfer contaminants from their hands to towels and compares the exposure to their mouths and ultimately ingest the toxicity criteria established by invisible residues. The new Gradient governmental agencies. Millions of analysis presented at the Society of manufacturing workers routinely use shop Toxicology meeting compares the towels on the job. potential for heavy metal ingestion from According to the new shop towels to levels that research, manufacturing may be consumed in workers using a typical “Our analysis indicates water at drinking-water number of shop towels limits. In the case of that shop towel users lead, daily intake from may be exposed to may unknowingly metals such as lead, shop towels may be up to chromium, cadmium, ingest higher amounts 21 times higher than the and antimony at levels intake that would be of metals than what associated with the lead many times above those allowed by the action level. is allowed in maximum contaminant Freshly laundered shop drinking water.” levels (MCLs) or, in the towels have been shown case of lead, the action to be contaminated with level (AL) for drinking water. metal residues, which may transfer to the The EPA promulgates drinking water hand during common usage, and can standards under the Safe Water Drinking migrate to the mouth and be ingested at Act to protect public health. An MCL, or levels that exceed those allowed in AL for lead, is a legally enforceable limit drinking water. that drinking water must meet. The MCL and AL analysis advances Suppliers of drinking water such as Gradient’s research, which has been municipalities must address exceedances ongoing since 2003. of MCLs, or the AL for lead, by taking Gradient has found that workers using corrective action and informing the typical number of shop towels daily consumers. were exposed to seven metals — “Our analysis indicates that shop towel antimony, beryllium, cadmium, cobalt, users may unknowingly ingest higher copper, lead, and molybdenum — that amounts of metals than what is allowed in may exceed health-based limits. The same drinking water,” said Barbara Beck, Ph.D., study found heavy-metal residues in all of DABT, principal at Gradient. “It is the laundered shop towels tested. n
in profit and loss (P&L) statements,’ you should, because it will change your business.” P&L and cash in the bank are two different things, said Sands, adding that he always starts out every year with a budget for all his stores, and ends every month reviewing his P&L statement. “If you say you’re going to be up 25 percent in sales, you better be able to say how you’ll be up 25 percent in sales,” he said. “You will never become wealthy unless you get this.” With a clean P&L in front of him, Sands said he could diagnose a shop and tell you exactly how to fix the problem. “If you can read a P&L, you can find the problem. It’s just like a report card,” he said.
Dominate your market
“All advertising must serve a purpose,”
Sands said, “and you have to know the difference between advertising and donation — sponsoring a youth basketball team is not advertising.” Using his other company, Mudlick Mail, Sands said he sends out mailers every month, and it has by far been his best vehicle for advertising. “No matter who it is, they have to see it,” he said. “I can send you a direct-mail piece, and you may hate it and throw it away, but you saw it. The purpose of direct mail is to get in someone’s mind.” Sands said direct mail works the best when the people who get your direct mail also drive by your shop, so he recommends that most shop owners only send to residents within a three-mile radius of their business. “Just dominate that market with direct mail,” he said. “Focus on your market and you do it consistently. This is how I grew my company debt free.” n
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Parts & People
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Simple ‘green’ practices can increase energy savings for shops
by Rob Merwin Westminster, Colo.—Going ‘green’ and saving energy costs doesn’t have to involve a lot of expense and time, and can be simpler to initiate than many shop owners might think, as they discovered recently during a shop management session and panel discussion, “Turning Green into ROI.” Shop Owner Rebecca Kirchdorfer, of Denver, focused on ways shops can incorporate “green” practices into their businesses during the recent Automobile Service Association of Colorado’s (ASACO) Independent Automotive Professionals Symposium in Westminster, Colo. “We’re in the midst of a transformation phase and there are market drivers we need to pay attention and respond to,” Kirchdorfer said. “Consumers are putting money where their values are.” In a survey of customers conducted by Kirchdorfer and her husband and partner, Douglass Kirchdorfer, more than 80 percent said they favor their shop, Downing Street Garage, which has won numerous awards for its green efforts, because it is an environmentally aware business, she said. “Manufacturers are pushing green products, consumers are pulling green products, states are requiring green money and return the position.” most in savings,” she Burgesser said shops should not just pay said. Shops can be their utility bills, but look at their bills, energy efficient by because energy-use trends such as peak addressing lighting, usages will become apparent on closer heating, and cooling, examination. Shop owners should ask or by choosing themselves, “Why is that happening?” and products that take less set corrective measures. “It’s also important time to stock and to have goals, such as reducing energy costs have a smaller by 5 percent for the coming year,” she said. environmental Burgesser said her certification program impact, such as requires the use of non-chlorinated brake buying oil and cleaner and she recommends using refillable antifreeze in bulk, cans as opposed to aerosol. “The costs Kirchdorfer said. associated with using aerosol cans can be She advised shop twice as much as refillable spray bottles, and Shops interested in going “green” should target low-hanging fruit first by identifying areas that will cost the least amount of owners to seek out it’s less toxic for your technicians,” she said. money and return the most in savings, says Rebecca state certification She also said environmentally friendly Kirchdorfer, during her recent ASA-CO Symposium session programs in their water-based aqueous parts washers, if used and panel discussion. communities because properly, have a greater life expectancy than processes, and companies and communities they will provide a framework and step-bypetroleum-based solvents. They are are measuring and recording green step approach toward building an typically nonflammable and contain little or practices. The smart business owners are environmental plan. no VOCs, and instead of dissolving grease paying attention and being proactive in Panelist Janet Burgesser, program and solids, aqueous cleaners rely on heat, developing their own environmental plan,” coordinator for the Denver Department of agitation, and soap action to break dirt into Kirchdorfer said, which will translate into Environmental Health, said one of the first smaller particles. Although they clean direct cost savings and more efficiently run and foremost actions a shop can take to differently, aqueous cleaners perform as shops. decrease energy use is retrofitting its well as solvents, Burgesser said. “Shops interested in going ‘green’ should lighting. “Replacing four T-12 ballasts with “Aqueous parts washers are also target low-hanging fruit first by identifying four T-8s can reduce lighting costs by 40 beneficial because it can decrease costs of areas that will cost the least amount of percent,” she hazardous waste said. removal,” she said. Downing Kirchdorfer said her Street Garage shop recycles 50 percent made lighting of all its waste, which upgrades from results in less use of its T-12s to T-8s in dumpster and increased 2010-2011 for trash-hauling savings. $4,300 that, She said the shop after rebates of purchased a waste oil more than furnace in 1999 for $3,400 from $4,600, which paid for Roger Worrick, an energy solutions Xcel Energy itself in four years and specialist for Progressive Energy and the City of Solutions, says that by switching from yields an annual savings fluorescents to a four-lamp T-8, shops Denver, cost of more than $1,000. can decrease wattage while improving only $900. “There are a lot of light and increasing lamp life without the Projected things you can do in your flickering and humming. annual shop that won’t cost a electrical savings are $700, Kirchdorfer said. cent. It’s just a Roger Worrick, an energy solutions matter of putting mechanisms in place,” specialist for Progressive Energy Solutions, she said. said that by switching from fluorescents to a Regularly checking for leaks in four-lamp T-8, shops can decrease wattage compressor lines can be beneficial while improving light and increasing lamp because “a small compressor-line leak can life without the flickering and humming. really increase a shop’s energy use,” LED fixtures and retrofit kits are also Burgesser said. And something as simple available for existing fixtures. “They are as educating employees to turn off lights more costly,” he said, “but shops will save and equipment can save energy, she Sea Foam Foam Sea Foam Foam Sea Foam Foam Sea Foam Fo oam Sea Foam more in energy costs with wattage as low as added. Bugs B Gone Trans Tune r Spray Trans Tune Deep Creep Creep Motor Treatment Treatment 88 watts. 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May 2012
Parts & People
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Collision Repair
Excelsior Springs shop owner invests in PDR tools, awaits next hailstorm
by Matthew Sevart St. Joseph, Superior Chevrolet in percent insurance work and 30 percent Excelsior Springs, Mo.— Merriam, Kan., and Shawnee restoration, but recently that has flipGenerating new customers can Mission Ford in Shawnee Mission, flopped.” be a daunting task, especially Kan., for OE crash parts. All restoration work, minus interior for a new business. When Chris Jones said he is hoping for another sewing, is done in-house, Jones said, Jones, owner of Jones Custom hailstorm this spring or summer to adding that his wife, Holly Jones, does & Collision, opened his shop in help drive some insurance work to custom mural work and he paints flame 2004, it coincided with a major his door, because after a mild winter, and graphic work. hailstorm, which proved to be his shop, like many across the “Between the two of us, there really much more effective than any Midwest, was down over the isn’t anything we can’t do,” said Jones, form of advertising, he said. previous year. who also has three technicians, Jeff “That first hailstorm was a Due to less insurance-related Ballinger, Derek Mick, and Nick Thomas, huge boost to me because at work, Jones said he has taken on who work in the shop on both insurance that point, I had only been more restoration work than he and restoration work. “We do it all. We Awards from the World of Wheels show in Kansas City fill known by friends and family,” typically does, some of which started out doing custom paint jobs, and it the wall behind Chris Jones, owner of Jones Custom & Collision in Excelsior Springs. Jones says he has had as Jones said. “When you get a included, at the time of Parts & has taken a while to get that type of work, many as 15 entries in the show. big influx of work like that, People’s visit, a 1969 GTO Judge, a because in order to start doing ground-up that’s an opportunity to make a 1949 Chevy 5 window pickup, a restoration, you have to gain people’s name for yourself, and I think that’s what done to deceive the eye,” said Jones, 1978 Chevrolet El Camino, and a 2,300 respect.” we did.” adding, however, that under professional HP drag car. Custom paint jobs are not just for Following the storm, Jones said he went PDR LED lights, blemishes will show if “Right now, I think we’ve had the most restoration work either, said Jones, who from writing three estimates a day to 30 a the work is not done properly. restoration in the shop we’ve ever had,” he sprays Akzo-Nobel Lesonal, which he day for a month, and in the process, learned “A lot of people think it just pops out, said. “Normally, we’re probably 70 Continued on page 16 the fine art of paintless dent repair (PDR). but you might have to push on a dent 150 “I have patience,” Jones said. “That’s the times to get it to where it needs to be,” said only reason I can do PDR Jones, who has invested work. If you own a body more than $6,000 in PDR “When you get a tools from A-1 Tool in shop, it requires patience, which is definitely the first big influx of work, Bolivar. step in PDR because it “PDR is one of that’s an opportunity hardest things out theall takes a lot of time to learn of Unsurpassed Quality. to make a name and even more to master.” the things I know how to Genuine Hyundai Parts. After major hailstorms, do with cars,” Jones said, for yourself.” Jones said, he has a couple “and I can do it all from • Kansas’ largest wholesale Hyundai dealer PDR specialists who come start to finish — frame, • Same-day shipping on orders by 4pm to the shop to assist him, and over the years body, and paint.” • Four in-town delivery trucks he has developed long-term working When PDR is not an option and crash • Five out-of-town trucks deliver daily Wichita, Kansas to Hutchinson, Great Bend, Salina, Abilene, relationships with his PDR specialists. But parts are needed, Jones said he turns to S. Central Kansas, Kingman, Pratt, Direct: 316-858-6769 in general, he said, shop owners must be Keystone-LKQ in Kansas City, Kan., for El Dorado and Emporia. cautious when bringing in contract aftermarket parts, and Car City Chrysler in Toll Free: 800-362-2691 workers. “You have to be careful with people chasing hail,” he said, “because they are here today and gone tomorrow and you have to stand behind their work.” Serving NW Missouri, East “A lot of hail-damage repair work is
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May 2012 Page 15
Excelsior Springs shop owner invests in PDR tools, awaits next hailstorm
the show, and all but one has either received best in class or outstanding in purchases through Autobody Color in class,” he said. Kansas City. “We do quite a few complete Generating a buzz and creating a name paint jobs on regular cars and we have for himself is imperative, Jones said, custom-painted all our personal cars. We especially in a small town like Excelsior put them in parades, which has been a great Springs with a population of just more than way to get noticed.” 10,000. The World of Wheels show in Kansas “We have no direct repairs,” he said. “We City is another way Jones said he has rely strictly on word of mouth and in a gained a reputation for his custom and small area like this, that’ll kill you if you restoration work. are not doing good work, because people “We have had as many as 15 vehicles at talk. We have fortunately been able to bring in work from surrounding communities like Lawson and Richmond.” Although Jones does not advertise, he said he does make donations to help out within the city. “This year we sponsored two Little League baseball teams,” he said. “You’re doing it for the kids, but you are also doing it for some advertising. You are hoping the kids and parents see that. Maybe when those kids grow up and wreck their car, Technician Derek Mick, who has been at Jones maybe they’ll come to us. What Custom & Collision since 2004, pulls the bumper from a Ford Mustang. comes around, goes around.” n
Continued from page 15
Collision Repair Training Notes
I-CAR Training
For more information on registration and class times, call 800-422-7872 or visit www.i-car.com.
State Farm Insurance-LaVista, Neb.
• June 5-Surface Preparation and Masking • June 12-Collision Repair for Honda and Acura Vehicles • June 19-Measuring
Wicklund Carstar-Liberty, Mo.
• May 8-Hazardous Materials, Personal Safety, and Refinish Safety • May 23-Advanced Material Damage Analysis
Hampton Inn-Lawrence, Kan.
• May 8-Hazardous Materials, Personal Safety, and Refinish Safety • May 22-Wind Noise and Water Leaks • May 30-Stationary Glass • June 7-Steel Structures Damage Analysis • June 19-Recycled Parts for Collision Repair • June 21-Best Practices for High-Strength Steel Repairs
Manhattan Area Technical CollegeManhattan, Kan.
• May 15-Bolted-On Part Replacement • June 12-Hybrid Electric and Alternative Fuel Vehicles • June 13-Electrical Circuits and DVOM Usage • June 16-Lighting, Starting, and Charging Systems
The Library Station-Springfield, Mo.
• May 16-Overview of Cycle Time Improvements for the Collision Repair • May 23-Collision Repair for Select High Volume Vehicles
A & B Carstar of RiversideKansas City, Mo.
• May 22-Trim and Hardware
The Library Center-Springfield, Mo.
• May 14-Trim and Hardware
Rusty Eck Ford-Wichita, Kan.
• May 14-Corrosion Protection • June 4-Trim and Hardware • June 28-Advanced Material Damage Analysis
Auto Craft, Inc.-East Wichita, Kan.
• May 30-Collision Repair for Toyota, Lexus, and Scion Vehicles • June 13-Collision Repair for Honda and Acura Vehicles • June 20-Best Practices for High-Strength Steel Repairs
Best Western Ramkota HotelSioux Falls, S.D.
• May 15-Stationary Glass
Washburn Tech-Topeka, Kan.
Sometimes things that share the same name are not the same at all.
• May 10-Professional Development Program question and answer meeting • May 23-Color Theory, Application, Tinting, and Blending • June 5-Collision Repair for Ford and Lincoln Vehicles
Kirkwood College Training & Response Center-Cedar Rapids, Iowa
• May 18-Aluminum Panels and Structures Damage Analysis
PPG Training
For more information and registration, contact your local PPG or Nexa Autocolor distributor or Territory Manager Rhonda Shipers at 816-474-0600 or visit www.ppgrefinish.com.
Kansas City Business Development Center-North Kansas City, Mo.
• May 8-Steel Unitized Structures Technologies and Repair • May 15-Surface Preparation and Masking • May 22-Measuring
Scott Community CollegeBettendorf, Iowa
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• May 8-Hybrid Electric and Alternative Fuel Vehicles • May 23-Plastic and Composite Repair • June 5-Detailing • June 12-Collision Repair for General Motors Vehicles • June 19-Hazardous Materials, Personal Safety, and Refinish
Des Moines Area Community College-Ankeny, Iowa
• May 22-23-PPG CertificationEnvirobase HP • May 24-PPG RecertificationEnvirobase HP • May 30-31-PPG Certification-Deltron • June 1-PPG Recertification-Deltron • June 5-6-PPG CertificationEnvirobase HP • June 7-8-Nexa CertificationAquabase Plus • June 12-13-Delfleet Training (Certification) • June 14-Delfleet Training (Recertification) • June 18-Nexa RecertificationAquabase Plus
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• May 14-Damage Analysis of Advanced Automotive Systems • May 22-Collision Repair for Toyota, Lexus, and Scion Vehicles
• May 22-23-Delfleet Training (Certification) • May 24-25-Commercial Performance Coatings Product Technologies n
www.partsandpeople.com
Page 16
May 2012
Parts & People
I’m A Convert
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Parts & People
May 2012
Page C-1
Automakers increasingly turn to I-CAR for training, certification programs
by John Yoswick As automakers open up their collision shop certification programs to independent shops and dealers, they are increasingly making I-CAR training part of the program requirements. In late March, for example, Chrysler launched its Chrysler Recognized Certified Collision Repair Facility program. Certification requires meeting more than 40 standards including using squeeze-type resistance spot welding equipment and maintaining I-CAR Gold Class status. For more information about the Chrysler shop certification program, visit www.certifymyshop.com/chrysler. Since 2010, Chrysler has incorporated 14 I-CAR classes into its training requirements for all Chrysler, Dodge, and Jeep collision repair and refinishing technicians. A list of those courses is available under the OEM Training section of the I-CAR website (www.i-car.com), which also describes I-CAR’s training relationships with more than a dozen other automakers. Also in March, Infiniti announced that it was launching the Infiniti Certified Collision Repair Network in conjunction with DuPont and I-CAR. The requirements, including I-CAR Gold Class Professionals status, closely match those of the Nissan shop certification program launched last fall. Gold Class shops receive a $1,000 discount on the $5,950 initial enrollment fee for the Infiniti shop certification program. For more information on the Infiniti or Nissan shop certification programs, visit www.performancegateway.com/Nissan or www.performancegateway.com/Infiniti. Information on how to become an I-CAR Gold Class Professionals business is available on the I-CAR website. Though the Volkswagen collision repair shop certification program doesn’t require Gold Class status, it does require body technicians to have completed 11 specific I-CAR courses and either the steel MIG welding or structural steel parts welding qualification test. additional specified classes, spelled out on the Volvo section of the OEM Training tab on the I-CAR website. The Porsche Approved Collision Center Program requires shops to have at least one I-CAR Platinum Individual Estimator and Refinish Technician, and two I-CAR Platinum Individual Steel Structural Technicians. The requirements for obtaining Platinum Individual status are listed on the Training Recognition section of the I-CAR website. General Motors (GM) was one of the first automakers to form a training relationship with I-CAR in 2004. GM requires its collision technicians to complete seven specific I-CAR courses, and structural technicians to complete the steel welding qualification test. I-CAR also worked with GM to develop specific training for the 2006 Chevrolet Corvette Z06, available exclusively through I-CAR. I-CAR’s aluminum welding qualification test is also required for Z06 certification by GM. Though Ford Motor Co.’s shop certification program is open only to Ford dealers, the automaker has made specific I-CAR training and welding qualification testing an option for its collision repair and refinishing technicians interested in meeting program’s training requirements. Toyota and Lexus also list 14 I-CAR courses and the steel MIG welding qualification test as part of their technician certification program. I-CAR’s ability to offer shorter, more targeted training through its online offerings has made it an ideal way to convey automaker- or vehicle-specific training on a 24/7 basis. The growing list of I-CAR online classes includes Mazda 626 Roof Panel Replacement, Ford Mustang Lower Rail Replacement, and Dodge Durango Rear Frame Tip Replacement. For the complete list of online courses, visit the I-CAR website. n
I-CAR’s ability to offer shorter, more targeted training through its online offerings has made it an ideal way to convey automaker- or vehiclespecific training on a 24/7 basis.
Audi requires two technicians from shops participating in the Audi Collision Repair Network to complete a dozen specific I-CAR courses and either the steel MIG welding or structural steel parts welding qualification test, as well. Audi also offers its two-week Audi A8 training at I-CAR’s Tech Centre in Appleton, Wis. Previously, technicians had to travel to Germany for hands-on A8 welding and structural training. For more information about this training, e-mail Audi’s Mark Allen at mark.allen@audi.com. As part of the Volvo Body and Paint Certification Program, Volvo requires all technicians at participating shops to complete four specific I-CAR courses. A percentage (or minimum number) of technicians at a shop must then complete
1-800 Radiator & A/C joins Sherwin-Williams A-Plus Network
Warrensville Heights, Ohio—SherwinWilliams Automotive Finishes A-Plus Network announces a new affiliation with 1-800 Radiator & A/C, headquartered in Benicia, Calif. As a member of the network, A-Plus members will now be eligible to receive A-Plus Reward points when they purchase direct from 1-800 Radiator & A/C. For more than 25 years, 1-800-Radiator & A/C has been supplying collision repair shops with a variety of Tier 1 OE and OE quality parts including radiators, condensers, cooling fans, complete A/C kits, and automotive lighting in select markets. 1-800 Radiator & A/C is a committed partner to the collision repair industry and a dedicated corporate sponsor of the SCRS, NABC, and many other state and local industry associations. “We are pleased to team with 1-800Radiator & A/C in continuing to provide our A-Plus Network members more valueadded products and services to their respective collision repair facilities,” said Troy Neuerburg, manager of Marketing Business Services at Sherwin-Williams Automotive Finishes. “Like the many partnerships we’ve established with other collision repair industry suppliers, we are always looking for ways to add beneficial services to the A-Plus membership.” The A-Plus Network is made up of an exclusive group of collision repair specialists who reflect the industry’s highest standards. Members have benefited from the program’s many businessbuilding opportunities including: business management training through A-Plus University workshops; building insurance relationships through continuing education training to insurance agents; loyalty rewards points; marketing programs, and Vision Group participation. For more information about the Sherwin-Williams Automotive Finishes APlus Network, visit www.a-plusnetwork.com. n
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Parts & People
May 2012
Page C-3
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Page C-4
May 2012
Parts & People
www.partsandpeople.com
Industry professionals offer advice for shops before they sign DRP contracts
by John Yoswick Farmers Insurance raised some eyebrows last spring – and blood pressure — in the industry when it rolled out a revised agreement for shops participating in its direct repair program (DRP). In order to participate in the “Circle of Dependability” program, shops must sign a contract that says they will, among other things, perform criminal background checks of employees and not employ anyone who has been convicted of a felony; purchase and use CSI services and an electronic estimate auditing tool approved by Farmers; and charge Farmers based on the most favorable rates offered to any other insurer. Farmers’ requirement that the shop must at any time allow the insurer to inspect and audit the company’s books and records, including balance sheets and income and cash flow statements, is “especially galling,” one multi-shop operator (MSO) said. In a press release last June, the Society of Collision Repair Specialists (SCRS) noted that one element of the Farmers agreement related to “disputed amounts” appears to give the insurer the right to dispute shop charges up to 30 days after being invoiced. If the insurer disputes a charge, that section for the Carstar franchise network, said she is concerned that many shop owners sign the agreements without fully reading them – and having their managers and estimating staff read them as well. “They need to be equally informed,” she said. Bartnik Andrew Rodenhouse, an attorney whose family operates a collision repair business, says he encourages shops to have all recommends that DRP agreements reviewed by a local attorney. shops pay particular attention to training of the agreement also prohibits the shop or vendor requirements in the contracts from terminating the agreement for breach that could result in mandated expenses or of contract unless the disputed amount use of particular suppliers for some exceeds $25,000. products or services. So what should shops be looking for and George Avery, a claims consultant with thinking about when presented with a new State Farm, acknowledged that DRP or revised DRP agreement? And what are agreements can be confusing. That’s why their options if they don’t like some of the he encourages shops to discuss any terms being offered? questions they have about the agreement with local claims personnel, and if their The need to read questions aren’t answered to their Stacy Bartnik, director of field services satisfaction, he encourages shops to bring those questions to the regional level or higher within the company. “You’re not going over anyone’s head,” Avery said. “Go up the ladder to get the answers. I really encourage that.” He also said an insurer might be able to provide more detail about its policies and procedures that aren’t fully spelled out in the agreement. As an example, Avery said, the contracts usually have terms related to repair quality, but they may not spell out what happens if a quality issue arises. That’s something shops may want to ask about. State Farm, for one, Avery said, has a written policy related to quality issues, though it’s not spelled out as part of the DRP agreement. Andrew Rodenhouse, an attorney whose family operates a collision repair business in Grand Rapids, Mich., said he encourages shops to have all DRP agreements reviewed by a local attorney. He cautioned that if anything an insurance company representative tells you contradicts something in the agreement, the written terms will be what gets upheld in any dispute. Bartnik and Avery agree that insurers have made repairer-suggested changes to
Continued on page 18
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Parts & People
May 2012
Page 17
Industry professionals offer advice for shops before they sign DRP contracts
in California (and find a California “I don’t think that’s unreasonable at attorney) if a dispute arises. all,” he said. “It may be going a little too their DRP agreements – not for “That’s why it’s important to get far if they want you to provide bank individual shops but for all on the someone who understands the account statements. But maybe a credit program. Bartnik said Carstar has ‘legalese,’ the boilerplate section, report is sufficient.” been able to work with insurers on to explain to you what it means,” The bottom line on DRP contracts, some contract terms before offering Rodenhouse said. “The State Farm Bartnik said, is that shops need to look at that DRP to its franchises, and Avery indemnification clause, for each one they are considering rather than said changes to State Farm’s example, is completely different seeing them all as good or bad for their agreement have resulted both from from any other indemnification business. the insurer’s repairer advisory clauses I’ve seen out there. So “You just need to understand that based council and from feedback he’s these contracts are all individual on your business model, some may work received at industry gatherings. and unique.” great for you and others may not fit in “You know when an insurer’s Rodenhouse was asked what a well,” she said. “That’s why it’s really Stacy Bartnik, director of field services for the Carstar agreement gets changed the shop can do if an insurer changes important to read them. You really have to franchise network, says many shop owners sign DRP quickest?” Rodenhouse said. “When agreements without fully reading them. the key performance indicators look at them individually.” n you don’t sign them. If the contract is (KPIs) it is looking for after so horrible and no one will sign it, they “I feel like they’re saying, ‘There’s a the shop is already on that insurer’s still have to get their customers serviced, change in there somewhere. You find it,’” DRP. If the changes aren’t so they then have a real problem. So yeah, Avery said. acceptable, he said, the shop’s only they do change them.” In such cases, Rodenhouse said, the option may be to drop the program. terms regarding pricing are often a good “If you don’t like what they are Understanding the changes first place to look for changes. But he asking you to do, don’t do it,” he Avery, Bartnik, and Rodenhouse agreed cautioned that the change could be said. “It’s that simple.” that it can be frustrating to be asked to seemingly more mundane, such as the Rodenhouse disagrees with those sign a revised agreement without being jurisdiction in which any conflicts arising who complain about insurers’ told what has changed. Avery compared under the contract will be handled. But, he requiring shops to conduct that to when Apple’s iTunes users are said, such a change can be potentially employee background checks and periodically asked to re-agree to its terms huge if it means a shop elsewhere in the to make some shop financial data of use. country would be required to go to court available for review by the insurer. He said in many professions, that is George Avery of State Farm encourages shops a common contract provision to to move up the chain of command at an insurer protect those you are doing Our regional if local claims personnel can’t answer questions business with. about a DRP agreement. editions serve:
Continued from page 17
NORTHERN CALIFORNIA
& NW Nevada
Also available online
PPG teams with BrandMuscle to provide marketing, advertising materials
Strongsville, Ohio—PPG announced it has partnered with BrandMuscle, a provider of Web-based local marketing automation software, to introduce PPG Marketing on Demand, a suite of online tools and services to help distributors and collision repair facilities produce customized marketing and advertising materials. PPG Marketing on Demand is available to all PPG distributors and collision repair centers in North America. The new system provides a resource distributors and body shops can access to easily develop a variety of promotional pieces to support their local businesses. At the PPG Marketing on Demand website, registered users can create professionalquality, online business pages and display ads, websites, e-mail campaigns, print ads, brochures, door and mirror hangers, and more. “We are passionate about helping our distributors and collision repair centers grow their businesses,” said Cristina Fronzaglia, manager of marketing communications for automotive refinish. “Our goal is to help our customers gain a competitive edge with their online and offline marketing programs. By teaming up with BrandMuscle, we’re able to assist our customers in executing the types of marketing programs that are often only available to larger organizations.” PPG is also providing distributors and collision centers with direct access to marketing professionals and media specialists who can assist with tasks as complicated as creating a marketing plan or as simple as negotiating the best rate for a local display ad. The time-saving service allows business owners to focus on their business operations. In addition, PPG has secured discounted rates to offer low-cost, professionalquality production of printed materials. Materials created using PPG Marketing on Demand can be seamlessly routed to a print vendor for production, with a two- or three-day turnaround on most orders. n
SOUTHERN CALIFORNIA NORTHWEST
• Washington • Oregon • Idaho • Montana • Alaska
MOUNTAIN
• Colorado • Wyoming • W. Kansas • W. Nebraska • New Mexico
This publication serves the including Western Missouri, Kansas, Nebraska & Iowa
MIDWEST REGION
MIDWEST
• W. Missouri • Kansas • Nebraska • Iowa
MO
RIVER VALLEY
• E. Missouri • W. & S. Cent. IL • S. Indiana • W. Kentucky
Each of our six regional editions is viewable online in our turn-page format.
Visit us at www.partsandpeople.com
Parts & People
Page 18
May 2012
www.partsandpeople.com
Midwest Auto Body Trade Show draws 450 collision industry professionals
by Matthew Sevart Altoona, Iowa—More than 450 collision industry professionals were on hand for the 2nd Annual Midwest Auto Body Trade Show held at Prairie Meadows on March 28, Iowa Collision Repair Association (ICRA) Executive Director Janet Chaney said. “We were so pleased with the turnout this year,” Members of Rydell Auto team in Waterloo, including, she said. “Due to the from l., Uni-Select Auto Plus Iowa PBE Specialist Darren combined efforts of Siebrands, Rydell Powertrain Specialist Josh Steere, and Surplus GM Specialist Tom Wright were on hand at the association members and Midwest Auto Body Trade Show. vendors, we drew a much larger crowd than last year, and it included from AllData Vice President of Sales Tom everybody — students, technicians, McGee, I-CAR Regional Manager Keith managers, shop owners, and insurance Risley, and CARS Inc. Communications adjusters.” Specialist Trevor Fry. The trade show’s floor space doubled in Chaney said she is reserving the same size this year and featured more than 50 space at Prairie Meadows for next year’s vendors, along with three mini-classes event, which will be held the first weekend
Bob Gilmore of Autobody Equipment in Kansas City gives a demonstration on plastic repairs at Des Moines-based Body Parts Stores’ booth.
in March. By request, next year’s event will include morning educational classes. “I really hope to expand the size of the show next year and draw industry
professionals from throughout the Midwest region,” she said. For more information about the 2013 event, contact Janet Chaney at jchaney.cavecreek@gmail.com. n
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Parts & People
May 2012
Page 19
Why Pay More? Rural Kansas repair shop finds niche as tire specialists
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Force balancers, and a tire dunk tank used to find leaks. Koons said most of his equipment purchases come through Becker Pro-Line Equipment in Great Bend. “I can’t expect my employees to go out and work at a high level if I don’t provide them the proper tools,” he said. Technician Andy Troyer (l.) and Undercar Specialist Jackie Gage check the ball joints on Customers who purchase a set of a Jeep Grand Cherokee that came in for an tires from Rod’s Tire & Service alignment. receive free balance and tire rotations for the life of the tires, said Koons, who have a lot of long-term employees. places reminder stickers on the “We provide our employees with good windshield, just like an oil change benefits, and they are paid well,” Koons reminder. said. “One of my former bosses from my “It took us 10 years to figure out that we years in the farm cooperative system, needed to present the Lyman Adams, taught customer with a visible me a lot about how to reminder, to ensure that “Our theory on inventory treat employees. Most they get the most life is you can’t sell it if you importantly, that you out of the rubber,” he have to treat people like don’t have it.” said. “It was such a people. simple thing, and it “I used to think I makes a huge difference, because it brings could take every employee and make them our customers back into the shop more do what I wanted them to do exactly, but I often.” Koons staffs 11 technicians and service advisors, and said he has been fortunate to
Rod’s Tire & Service Technician Sam Shope (r.) finishes mounting a truck tire. Technician Chester Boehs prepares to mount a trailer tire.
HEADS
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have learned that as the job is getting done and the customers are happy, I am happy.” Managing a staff is no different from coaching a team, Koons said. “This is a team, and my responsibility is to put people in positions where they will succeed and do their best,” he said. “You don’t put a kicker on the offensive line. You have to recognize people’s strengths, and make sure our employees feel that they are valuable to the team.” In the near future, Koons said, he plans on adding more space to his building to address the growing service needs of his customers, and make room for commercial truck business, an area he would like to expand into. Expansion and growth are both important, Koons said, but at the end of the day, it is really just about building relationships. “I think we’ve forgotten that this is a relationship-driven business,” he said. “We often get caught chasing the profits and we forget that. People come to depend on you Rod’s Tire & Service Technician Jess Bryant and set a certain level of helps load four industrial tires onto a forklift expectations, and we have to live operated by Technician Chester Boehs. up to those expectations. If we Agriculture and industrial-related tires represent a large portion of business in the rural farming don’t, then we’ve damaged that community, Owner Rod Koons says. relationship.” n
PART # DESCRIPTION PRICE* AC262C1 CHRY 3.9 OHV V6 CAST IRON C#5300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $186.00 AC109C2 CHRYS 360 V8 MAGNUM Bolt Down Rocker Arm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$243.00 AC357C9 DODGE NEON 2.0 DOHC #086-AB-W or AB-P W/EGR, SQ. EX. PORT W/CAM . . . . . . . . . . .$359.00 AC357C8 DODGE NEON 2.0 DOHC #086-AC-J NO EGR, SQ. EX PORT NO STEAM HOLES . . . . . . . .$357.00 AC222C2 FORD - 7.3 POWERSTROKE - 10 intake bolts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$419.00 AC122C1 FORD 1.9 FOEE W/ CAM SENSOR CENTER BOLT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$263.00 AC150CC2 FORD 2.5 SOHC CAST IRON W/CAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$478.00 AC142C7 FORD 302 V8 BDR F.I. E5TE, E7TE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$194.00 AC163C3 FORD 460 V8 BDR F.I C#F3TE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$343.00 AC357C1 FORD 5.4 V8 SOHC#F75E W/TEMPSNSR, DRIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$357.00 AC222C5 FORD 6.0 POWERSTROKE TURBO DIESEL 06- 08 C# 2 vlv cover holes C#1855613C1 . . . .$650.00 AC196C19 GM 350 C#810 SLOTTED PUSHROD HOLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$199.00 AC205C5 GM 6.5 TURBO DIESEL *ANGLE INT.BOLTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$308.00 AC108CC3 JEEP 4.7 SOHC V8 ALUM W/CAM LEFT Casting # 801 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$420.00 AC345CC2 SATURN 1.9 OHC W/EYEBROWS W/CAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$324.00 *Plus freight and core charge. PrePaid core return on “AC” heads only, does not apply to Heavy Duty “HD” heads
Dana expands SVL aftermarket drivetrain offering for older vehicles
Maumee, Ohio—Dana Holding Corp. announced it will extend its SVL aftermarket drivetrain product line to include additional heavy-duty components and, for the first time, light-duty axle components. SVL products offer quality replacement parts designed specifically for postwarranty vehicles. Availability of the extended product line is targeted for the second quarter, and will include Dana-approved center support bearings for light-, medium-, and heavyduty applications, as well as light-vehicle axle shafts, and ring and pinion gear sets for all vehicle makes and models. This is in addition to the existing SVL line of universal joints for the light- and commercial-vehicle markets and ring and pinion gear sets for heavy-duty applications. “After a successful launch of SVL in 2011, we saw increased demand for reliable light-vehicle drivetrain components,” said Mark Wallace, Dana’s president of OnHighway Technologies. “Our extended SVL product line will fulfill the market’s demand for Dana-supported light-vehicle components, while further supporting the heavy-duty market’s needs.” n
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May 2012
Parts & People
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Parts & People
May 2012
Page 21
Undercar Product Notes
ACDelco introduces Advantage tie rods and control arms
compiled by James Faust top-selling product categories. The ACDelco Advantage tie rods feature full-ball type stud for improved performance, corrosionresistant coating, heat-treated finished ball ends, and CNC-machined housing. The control arms feature corrosion-resistant coating for long-life performance, greaseable ball joints for easy maintenance and long life, and lightweight construction to meet application requirements. Installation hardware is included, when needed, and all parts are backed by a 12month/12,000-mile parts warranty.
Hunter’s new Road Force Touch balancer provides wheel service with record efficiency
Grand Blanc, Mich.—ACDelco has introduced the Advantage line of tie rods (345 part numbers) and control arms (49 part numbers). They are part of the all-new ACDelco Advantage family of aftermarket chassis components being launched with more than 1,000 part numbers focusing on
auto-calibration, on-demand videos, and an enhancement to StraightTrak lateral force measurement. Other improvements include a stronger, wear-resistant balancer shaft for long-lasting service, an Auto-up Hood which saves time by automatically lifting the hood for the operator, and a standard 10-piece mounting collet set with storage to optimize wheel centering.
CEMB introduces the ER 80 Go Fast Line series
ACDelco has introduced the Advantage line of tie rods and control arms as part of its Advantage family of aftermarket chassis components with more than 1,000 part numbers.
Bridgeton, Mo.—Hunter’s Road Force Touch performs a Road Force diagnostic test faster than a traditional wheel balancer performs a typical balance. During the balancing process, the Road Force Touch automatically applies Hunter’s patented load roller against the wheel and tire assembly to simulate how a wheel
Hunter introduced its new Road Force Touch balancer which provides wheel balancing service with record efficiency.
GM ENGINES
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performs under the weight of a vehicle to find hidden causes of vibration and vehicle pull. Technicians can activate any balancing function from one screen by touching the appropriate button or icon, saving time spent scrolling through a grid of menu buttons. Live 3D graphics and animations display real-time wheel conditions and illustrate easy-to-understand instructions to resolve vibration and pull problems. New software tools include eCal
Gainesville, Ga.—The CEMB ER 80 is a digital balancing machine with digital touch panel, 3D automatic measurements by sonar, laser for weight positioning inside the rim, LED to light working space, CEMB USA introduced Wheel Best its line of digital Access, and balancing machines, Virtual Direct including this ER 80 Drive (CEMB series. patent). n
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Page 22
May 2012
Parts & People
Knowing customer base, competition helps shops advertise effectively
by Rob Merwin Overland Park, Kan.—What does it take for an independent shop to successfully market its business in the automotive repair industry today and compete with dealers and chains? It requires understanding that today’s customers are increasingly value-driven, but that doesn’t mean just offering the lowest price, said Dan Gilley, director and trainer for RLO Training, during his educational session, “Maximizing Your Marketing,” at the Vision Hi-Tech PHOTO BY MATTHEW SEVART Training & Expo held recently in Tracking and evaluating advertising responses and other marketing efforts is important, RLO Overland Park, Kan. Training Director Dan Gilley says. “If you can’t “Customers want value with a mix measure the success of a particular advertising, of benefits,” he said. “Smaller then don’t use it.” companies have a choice: they can present quality or price, and if they can’t In order to “brag” those qualities, shop compete with price — which often they owners should research their market area, can’t — they’re left with quality.” which will provide important data for For independent shops, that translates to developing a marketing plan. “Examine providing a quality facility, staff, and service demographics to find out where your along with good warranties on everything customers are coming from. They either sold. “The shops that survive are the ones work or live near you — look at your that market those qualities the best,” said customer database and ZIP codes,” Gilley Gilley, to nearly 100 shop owners in said, adding that additional information is attendance. “If you’re not bragging about available at chambers of commerce and your shop, who is?” census bureaus. A major consideration regarding the customer-service survey, by handouts, economics of a shop’s market area is mailers, or online, will improve a shop whether there are any significant future owner’s awareness of consumer interests. developments that might affect its “Get the customers involved by giving you marketplace, he said. “Be aware of what’s feedback and it’ll benefit them and the shop going on in your market area such as new by promoting two-way conversation,” shopping malls, housing, and large Gilley said. industries. Ask yourself, ‘What would A well-written customer-service survey these do for my business?’” will provide data for shops to focus on what A shop’s main marketing focus, however, services are important to their customers and should be existing customers, as opposed to additional services that could be provided. the potential costly “The more information you expense of acquiring new gather, the better chance “Customers want you have of meeting or ones, Gilley said. The value with a mix of exceeding expectations,” customer database, if used to its potential, can also he said. benefits.” determine active and Equally important are inactive customers, as well “competitive service as how much they spend per visit and how surveys,” he said. They will reveal which many vehicles they regularly have serviced. competitors offer the same services and “The average hour per RO has the greatest prices, services they offer that the shop potential for improvement, and well-trained owner doesn’t, and insight into their service advisors will go a long way to attitudes about certain conveniences and making that happen,” he said. “Educating services, Gilley said. “The more inside the customer is more cost-efficient, and knowledge you have, the better marketing make sure you charge for all work plan you will have,” he said. performed.” Once a shop determines its customer base Understanding customers’ needs is critical and needs, evaluates its own strengths and in the development of a marketing plan, he weaknesses, and looks at the strengths and said, and information derived from a weaknesses of its competition, it should use
Continued on page 24
Parts & People
May 2012
Page 23
Mechanical Repair Training Notes
RLO Training
For more information on these online Workshops, call 800-755-0988 or visit www.rlotraining.com. All times are PST.
Webinars
• May 1, 3, 8, 10. 15, 17-Recruiting and Retaining Technicians and Advisors, 3-5 p.m. • May 1, 8-How to get your Share of the Highly Profitable Fleet Business, 12-2 p.m. • May 3, 10-Maximizing Sales of Diagnostic Labor, 1-3 p.m. • May 3, 10, 17-Improving Telephone Closing Ratios, 10 a.m.-12 p.m. • May 4, 11, 18-Service Advisor Skills, 10 a.m.-12 p.m. • May 7, 9, 14, 16, 21, 23-Compensation Strategies, 3-5 p.m. • May 7, 9, 14, 16, 21, 23-Marketing Strategies, 3-5 p.m. • May 8-10, 15-17-Technicion Time Management, 3-5 p.m. • May 14 or June 11-Guerilla Shop Management, 3-5 p.m. • May 15, 17-Measure Manage & Market • May 15, 22-Phone upselling Techniques, 12-2 p.m. • May 16, 23-As an owner: Start earning the income you want, 10 a.m.-12 p.m. • May 16, 23-Powerful Business Building Strategies, 12-2 p.m.
• May 17, 23-Eliminating Repair Order Roadblocks, 10 a.m-12 p.m. • May 28, 29, 30-Building a Business Plan, 12-2 p.m. • June 4, 6, 11, 13, 18, 20-Compensation Strategies, 3-5 p.m. • June 4, 6, 11, 13, 18, 20-Marketing Strategies, 3-5 p.m. • June 5, 7, 12, 14, 19, 21-Recruiting and Retaining Technicians and Advisors, 3-5 p.m. • June 5, 12-How to get your Share of the Highly Profitable Fleet Business, 12-2 p.m.
Federal Mogul Training
For more information, call 888-771-6005 or visit www.federal-mogul.com/training.
Federal Mogul Technical Education Center—St. Louis
CARQUEST Distribution CenterShawnee/Overland Park, Kan.
• June 11-12-Import Computer Controlled Charging Systems
• May 7-9-Ignition System Diagnostics • May 9-11-Engine Performance and Driveability II • May 14-15-Advanced Steering & Suspension Diagnostics • May 16-17-ABS/Stability and Traction Control Diagnostics
Automotive Research and Designs
For more information and to register, visit www.go2hev.com, e-mail training@go2hev.com. All times are EDT.
Webinars
Denso Training Seminar
For course descriptions or for more information, visit www.densoaftermarket.com/training.
Ameristar CasinoCouncil Bluffs, Iowa
CARQUEST Technical Institute
To register, contact the local CARQUEST store or visit http://carquest.com/carquest/ proCTIclassSchedule.html
Location TBD-Columbia, Mo.
• May 14, 30-Second and third of threepart series-Diagnosing Hybrid Vehicle Electric Machine (transmission failures) using the AT33EV, 7-8 p.m. • May 21-Used Hybrid Parts: What to look for in used and/or reconditioned components. 7-8 p.m.
• May 7-A/C Service Essentials
Holiday Inn-Des Moines, Iowa
• May 7-New Vehicle Technologies: Fluids & Lubricants
Location TBD-Jefferson City/ Columbia, Mo.
Automatic Transmission Rebuilders Association (ATRA)
This seminar will be on general diagnosis, problems, and fixes on GM, Ford, Chrysler, Honda, Toyota, and Mercedes. For more information and registration, call ATRA at 800-428-8489 or visit www.atra.com.
Harrah’s Council BluffsCouncil Bluffs, Iowa
• May 8-Intermittent Drivability Diagnosis
Home Ridge Inn and SuitesBettendorf, Iowa
• May 10-A/C Service Essentials
• May 8-New Vehicle Technologies: Fluids & Lubricants • June 18-19-Supplement Restraint System Diagnosis & Repair
Location TBD-St. Joseph, Mo.
• June 6-7-Vehicle Data Network Diagnosis
Location TBD-Wichita, Kan.
• May 19-The latest technical fixes and Management Training
• May 21-22-Diagnostic Secrets of a Mobile Diagnostic Technician
Washburn Institute of TechnologyTopeka, Kan.
Automotive Training Institute
For more information or to register, call 888-471-5800 or visit www.autotraining.net.
Location TBD-Wichita, Kan.
• June 4-5-Battery Starting & Charging System Diagnosis
• June 26-Think Like a CEO
Location TBD-Topeka, Kan.
• June 30-Think Like a CEO n
Knowing customer base, competition helps shops advertise effectively
Continued from page 23
advertising to convey its advantages over the growing prominence of quick lube shops, auto parts stores, and dealerships, he said. “Talk about what you do better than the competition and set about 3 to 6 percent of your annual gross sales to be spent on advertising — but make sure you spend it wisely.” Gilley listed a number of advertising devices that can be budgeted, including onhold messaging; direct mailers such as coupons, thank-you letters, and service reminders; lifetime oil change programs; license plate frames; and newspaper ads promoting a Car Care event. “A flat-screen TV behind a service desk with a menu board
Page 24 May 2012 Parts & People
also attracts attention,” he said. Gilley suggested shop owners print an extra 50 to 100 copies of mailers with coupons so they can store them under their counters to be used as “closers.” Tracking and evaluating advertising responses and other marketing efforts is important, and he said shop owners should establish reference codes. “If you can’t measure the success of a particular advertising, then don’t use it.” Gilley said major shifts in the global economy have given consumers the power to demand exactly “what they want, the way they want it, when they want it, and at a price that will be determined by value.” “You have a choice,” he said, “either provide it or fail.” n
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Check out MoparRepairConnection.com for resources, promotions and technical information.
© 2011, Chrysler Group LLC. All rights reserved. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC. Printed in U.S.A.
Parts & People
May 2012
Page 25
The automotive aftermarket is a great industry. From small repair shops to world-class
manufacturers, the industry comes in all sizes and shapes. The one thing everyone shares in common is the endless opportunities that are available. Join us for the 2012 Global Automotive Aftermarket Symposium (GAAS) as we celebrate this great industry with an outstanding educational program and the opportunity to network with the leaders of our industry.
You can save $200 when you register by April 13, 2012.
Register at www.globalsymposium.org and review the latest agenda for this year s event.
Polk is the corporate sponsor of the Global Automotive Aftermarket Symposium GAAS is made possible through the generous support of the University of the Aftemarket Foundation Presented by:
Media Partners:
Media Supporters: Motor, Parts and People
www.globalsymposium.org
PP0212S
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May 2012
Parts & People
www.partsandpeople.com
Cooper’s Keys to Auto Repair Profits
The right way to customer satisfaction in your auto repair shop
Far too many auto repair shop owners don’t measure customer satisfaction. It’s not that they’re not interested in the results, but rather that they’re not exactly sure how to do it. Unfortunately, the price they pay for not measuring their customer satisfaction is often Bob Cooper staggering. To make matters worse, the Gallup Association has released a report concluding that most of the ways used to measure customer satisfaction are beyond bad; they’re actually worthless. As a business owner, I am sure you will agree that your Customer Satisfaction Index Goal (CSI) needs to be 100 percent. You also need to establish a minimum level of acceptable performance with your team that is set no lower than 95 percent (with the understanding that your employees can begin to earn CSI rewards on an incremental scale once they pass the threshold of 97 percent). Now here’s where most shop owners get into trouble: they’re not sure what counts as a point against the CSI score. I realize that there are many different ways to measure customer satisfaction, and many of our clients have some relatively well-designed systems in place. But if you’re just looking for a simple, easy-to-use method, here it is. At Elite, we recommend that you classify any comeback or customer complaint as a “failure,” and you should count that failure against the car counts for the measured period. For example, if you process 100 vehicles, you should not incur more than five complaints, including any comebacks due to mechanical problems that were not solved during the initial visit, were misdiagnosed, or were simply overlooked. If the vehicle was repaired six months ago, and it fails today, it still needs to be considered as a failure for the current period, even though your existing employees may not have had any control at the time the service was originally provided. The rationale is twofold. One, the failure will be offset by any poor work done today that may not fail for months to come. The second reason it should be considered a failure for the current period is that your income statement is blind to what, where and when. All that we do know is that the comeback is a failure today. Part failures also need to be counted against the CSI score. Not only is your financial statement blind to part failures, but your overall CSI score should take a reasonable percentage of part failures into consideration. So warranty claims, mechanical failures that include part failures, customer neglect (i.e., we failed to educate them on their responsibility) and so on are easy to classify as failures with this type of CSI scoring. Things become more subjective when you are placing customer follow-up calls. I would highly recommend that you ask every customer, “How did we do?” If the response is positive, and they have nothing critical to say, it’s reasonably safe to conclude that the customer is a happy customer. Otherwise, it’s a failure. So what we need to strive for are fewer comebacks, zero complaints (customer returns with dirty carpet, upset the vehicle wasn’t done on time, felt your prices were too high, etc.) and follow-up calls that end with your customers saying they were pleased. Although you may have to massage the percentages and the criteria a bit, this method is a great starting point for you and your company, and is fair to both you and your employees. You should also ensure that all of your employees know that if there are any comebacks, or complaints that are knowingly not reported, there will be a substantial penalty toward any reward they may be entitled to. If an employee is guilty of not reporting a complaint or comeback a second time, they go on report. A third failure to report should be considered grounds for immediate dismissal. You need to make sure all your people understand that openness and honesty in reporting are critical to improvement. Also let them know that their income, along with the success of your company, will always be predicated on continual improvement. Lastly, I would like to leave you with a couple of thoughts. Far too many companies complicate their methods of monitoring and measuring customer satisfaction. They typically follow up with their customers, and they ask a series of predetermined questions. Rather than asking customers questions that are based on our interests, we should let the customers share their thoughts in any way they would like, and they should be able to address any part of their customer experience. Many shops and dealerships feel that anything less than 100 percent is completely unacceptable, and I have to politely disagree. Here’s why. First of all, the system I just outlined allows for a 4-percent failure rate that takes part failures into consideration. Until we have perfect parts and perfect people, we will always see at least some failures. In addition, we know that no matter how hard we try, there will always be some customers whom we just can’t satisfy. No one put it better than Bob Lutz, the past vice president of GM’s European Division and the past co-chairman of Chrysler, who once said, “It is our goal to satisfy 100 percent of the satisfiable customers.” Please note that he said “satisfiable.” As your next step, take this plan, put it into place, and you will be on the road to building a more profitable, successful business, while generating happier customers at the same time. On that, you have my promise. ........... For the last 20 years, Bob Cooper has been the president of Elite Worldwide Inc., an ethics-based company that offers shop owners sales, marketing, and management solutions in the form of downloadable audio training courses, seminars, and webinars, coaching services, and service advisor training. You can contact Cooper at contact@eliteworldwidestore.com, or at 800-204-3548. n
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Parts & People
May 2012
Page 27
People & Places
compiled by Matthew Sevart positions at Sunflower Mazda in Olathe, Tumminia Mazda in Olathe, and Steve Oliver Mazda in Kansas City, Mo. Scott Shanks of Gardner was selected as the winner of the Royal Purple High Performance Driving Experience Contest. Shanks and his 1970 Dodge Challenger R/T Convertible will drive the 2012 Hot Rod Magazine Power Tour as a guest of Royal Purple. The winner of this year’s High Performance Experience was determined after entrants submitted a picture of their American muscle car or performance vehicle on the Royal Purple Inc. Facebook fan page between March 2 and March 16. More than 340 entries were whittled down to 10 finalists who received the most votes from polling open to Royal Purple’s 158,000 Facebook fans.
ILLINOIS
One of McKay NAPA Auto Parts’ 2012 fundraisers for Make-A-Wish Foundation of Illinois has just been kicked off. The Wishin’ Golf Car Raffle features a custom four-seat Club Car with a flip-over seat for hauling; highly customized paint job; lift kit; custom wheels and tires; sound system; plus many, many more features. This golf car would be great for the course, the backyard, or the farm. Donation tickets are $10 each, and are available at all 18 McKay NAPA Auto Parts stores located in Bethalto, Carlinville, Carlyle, Centralia, Collinsville, Edwardsville, Gillespie, Godfrey, Granite City, Greenville, Highland, Hillsboro, Jerseyville, Litchfield, Nokomis, Staunton, Virden and Wood River to benefit the Illinois Chapter of Make-A-Wish. The tickets will be sold through Oct. 1. The drawing will be held on Oct. 4, at the Annual McKay NAPA Auto Parts Tool & Equipment Show.
Midwest Wheel’s Kansas City branch recently left its old location at 18th and Troost and moved to a 30,000-square-foot warehouse and service facility at 5801 Front St. The new facility required renovation, and the Kansas City Industrial Council recognized Midwest Wheel Companies with the Brick by Brick award for investing in improving the industrial area.
Ethan Holterman, a student at Linn State Technical College, won second place in the Automotive Refinishing Technology division at the recent State SkillsUSA competition in Linn.
MISSOURI
The Kansas City Industrial Council (KCIC) recognized Midwest Wheel Companies, based in Des Moines, Iowa, for taking strides toward the improvement of industrial areas south of the river in Kansas City. Each year KCIC hands out the Brick by Brick award to companies or people that have invested in improving the area. This year, Ron Martin, general manager of the Kansas City and Grandview locations, and Service Manager Bryan Maze accepted the award on behalf of Midwest Wheel’s Kansas City branch. Midwest Wheel Companies left its old location at 18th and Troost and moved into a 30,000-squarefoot warehouse building, at 5801 Front St., which it transformed into a state-of-the-art
KANSAS
Mel Morris, owner of Ausmor, a parts manufacturer, recently relocated the company warehouse from McPherson to Wichita, at 2228 S. Edwards St. The new 10,000-square-foot warehouse offers room to expand, and being in Wichita allows for overnight delivery to the Omaha/Lincoln market, as well as Oklahoma and the Dallas/Ft. Worth area, Morris said. Darrel Randels is the new parts manager at Overland Park Mazda in Overland Park. Randels had been with the company for three years as a counterman before taking the new position. His previous parts experience includes
truck and trailer parts and service maintenance facility. Vipar Heavy Duty has named James McGuire director of business development with responsibility for stockholder development in the Central U.S. McGuire will be based in the Indianapolis area. He will be responsible for the development of new stockholders in Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Nebraska, Ohio, Oklahoma, Texas, and Wisconsin.
Pinnacle/Lincoln Financial Group has partnered with the Automotive Parts & Services Association
Linn, will send its winners to the National SkillsUSA competition in Kansas City, Mo., in June. The first-place winners include the following, by division: Automotive Refinishing Technology — Katie Beck of
Ranken Technical College (post secondary), James Chesser of Lewis & Clark Career Center (secondary); Lucas Klinkhardt, of Ranken Technical College, received first place in the Automotive Service Technical Information at the recent State SkillsUSA competition in Linn.
Automotive Service Technical Information — Lucas Klinkhardt of
Ranken Technical College (post secondary), Quentin York of Four Rivers Career Center
LKQ Corp. builds green awareness
Chicago—LKQ Corp. is committed to preserving the environment through its recycling, energy reduction, and reforestation efforts. For the third consecutive year, LKQ is partnering with the Arbor Day Foundation to plant an estimated 12,000 trees in U.S. forests. The Arbor Day Foundation has planted millions of trees since its inception and its hard work helps reduce greenhouse gases and provide essential oxygen. The 2012 LKQ GetGreen tree planting campaign will provide enough oxygen in one year for 48,000 people and reduce 250 tons of greenhouse gases. To help build green awareness, LKQ will plant a tree for each customer who registers for the GetGreen promotion. “Last year we planted more than 10,000 trees in Florida, and we hope to increase that number this year,” said Laurie Garcia, vice president of
Page 28 May 2012
Growth Initiatives and Marketing. Online registration began April 1 at www.LKQGetGreen.com and ends May 31. As part of the sweepstakes, LKQ customers can enter to win hundreds of “green-themed” prizes, including a new fuel-efficient Chevy Cruze automobile, Energy Star HD TVs, bicycles, and energysaving lighting products by entering the GetGreen promotional code found on LKQ recycled, remanufactured, and reconditioned products. “We are proud to once again partner with the Arbor Day Foundation to address the environmental issues that face us today,” Garcia said. “LKQ Corp. is committed to recycling and green awareness, and what better way to demonstrate this commitment than involving our customers in a treeplanting program with the Arbor Day Foundation.” n
Parts & People
(APSA) to provide APSA members with the opportunity to customize and offer 401(k) packages for their employees. For more information on the program, contact Jim Quinten at apsa@apsassociation.com. AMS Automotive LLC has acquired the assets of AMS Automotive Inc. and Ovis Sales LP of Fenton. Chris Jackson will serve as president and lead day-to-day operations. Jackson has more than 23 years of experience in the automotive aftermarket, most recently as vice president of AMS Automotive Inc., and as president of Ovis Sales LP. Working with his father, Ron Jackson, and the AMS team, he has been instrumental in building the company into a supplier to the automotive aftermarket. Jim Mannebach, serving as chief executive officer, will lead the company. Mannebach brings more than 25 years of global leadership experience to AMS. Other key additions to the organization are Jeff Kyle and Joe Asfour. Kyle brings extensive operating and finance leadership and Asfour brings a wide range of market development and sales leadership experience to his role. The recently held Missouri SkillsUSA Leadership and Skills Conference, at Linn State Technical College in
(secondary); Automotive Service Technology — Josh Meyers of Ranken Technical College (post secondary), Scott Martin of Career and Technology Center at Ft. Osage (secondary); Collision Repair Technical Information — Kevin Wiles of
Lebanon Technology and Career Center (post secondary), Brian Finney of Lebanon Technology and Career Center (secondary); Collision Repair Technology — Jonathan Young of Ozarks Technical Community College (post secondary), Kelby Martin of Lewis & Clark Career Center
(secondary).
NEBRASKA
U.S. Rep. Lee Terry, R-Neb., visited Omaha Truck Centers, owned by dealer Trey Mytty, on April 4. “One of the purposes of the visit was to inform Rep. Terry about natural gas-powered trucks,” said Mytty, a nominee for the 2012 Truck Dealer of the Year. The Metropolitan Utilities District (MUD), one of the dealership’s customers in Omaha, showcased one of its natural gas trucks to demonstrate its features. Rep. Terry said he's interested in drafting legislation to provide federal tax credits for natural gas
Continued on page 30 www.partsandpeople.com
Parts & People
May 2012
Page 29
People & Places
Continued from page 28
trucks, and visited the dealership to learn more about demand and cost premiums.
On April 4., Nebraska truck dealer Trey Mytty (r.) hosted U.S. Rep. Lee Terry at Omaha Truck Centers for a tour of the dealership and a discussion about natural gas-powered trucks.
the economic, environmental, and product performance benefits of remanufactured motor vehicle components. Bendix was recognized for product innovation excellence by the Automotive Distribution Network at its 2012 Network National Convention in Las Vegas. During the convention’s closing festivities, the Bendix team was presented with the award for exceptional innovation for its “hardware in the box.” The innovation, inspired by customer needs, contains everything necessary for a brake job – including clips, brake lube, noise insulators, wire sensors, and abutment kits — within each premium friction line product.
NATIONAL
Performance Racing Industry
(PRI), producers of the motorsports business magazine and trade show, finalized plans to be purchased by the Specialty
Equipment Market Association
upcoming fiscal year. Every year, TEMA recognizes suppliers who exceeded the company’s expectations in several categories. Bilstein has received the auto motor und sport “Best Brand” award again this year. The 116,273 readers who voted in this year’s rankings once again put Bilstein at the top in the Sports Suspensions/ Springs/Shock Absorbers category. This means that The readers of the Bilstein has been the magazine auto auto motor und sport motor und sport have cast their vote: winner in the sports Bilstein remains suspension, sports unbeaten in the shock absorbers, and Sports Suspension/ springs section seven Springs/ Shock Absorbers category. times in a row. The National Automotive
Technicians Education Foundation
its board of directors has decided to modify the company’s corporate structure to create a separate and independent aftermarket division and has engaged a search firm to fill the position of CEO of the division, who will report directly to the company’s board of directors. Federal-Mogul’s aftermarket business unit is one of the largest independent global suppliers of premiumbranded automotive parts, with global sales of $2.3 billion in 2011. The Timken Co. received the 2011 Quality Award from the Automotive Distribution Network. Timken supplies the group with a full line of automotive aftermarket products, including Timken hub units, bearings, grease, and seals. The award SEMA has purchased Performance Racing was presented at the closing ceremony of Industry (PRI), producers of the the 12th Automotive Distribution Network motorsports business magazine and trade National Convention in Las Vegas. show. SEMA plans to maintain the racing Continental Automotive’s Chassis identity and heritage of PRI Trade Show and Safety Division was recognized as an and PRI Magazine. excellence award winner at Toyota The Motor & Equipment Motor Engineering & Manufacturing North America Inc.’s (TEMA) Annual Supplier Remanufacturers Association (MERA) and its members have announced a Business Meeting (ABM) on March 13. new Remanufacturing Section for the Held at the Northern Kentucky Convention 2012 AAPEX Show, Oct. 30-Nov. 1, in Las Center in Covington, Ky., ABM brought Vegas. The new section, centrally located on together approximately 900 attendees from the main show floor, will be available to across North America. ABM allows TEMA remanufacturer, supplier, and affiliate to discuss business objectives with direct members of MERA. Exhibits will focus on and indirect suppliers in preparation for its
Page 30 May 2012 Parts & People
(SEMA). With more than 20 years of publishing and management experience at PRI, John Kilroy will serve as vice president/general manager of PRI and assume day-to-day operations for the group. All the operations, employees, and offices will remain intact at PRI's current location in Laguna Beach, Calif. The 25th Annual Performance Racing Industry Trade Show will take place Nov. 29-Dec. 1 in the North/South Building of the Orange County Convention Center in Orlando, Fla. It will feature exhibits by 1,100 racing companies in 3,100 booths, requiring 700,000 square feet to house the event. Some 38,000 buyers will attend from across the U.S. and 72 countries. SEMA plans to maintain the racing identity and heritage of the PRI Trade Show and PRI Magazine.
From l., Mike Lambert, president of the Automotive Distribution Network, presents the award for product innovation excellence to Chris Sumrell, manager of Group Sales for Honeywell Friction Materials, and Jim Kelley, director of Sales, Americas, for Honeywell Friction Materials. Federal-Mogul recently announced that
(NATEF) has recognized the generous support from the automotive industry, as well as those organizations whose contributions help to ensure the future supply of Ferdinand Alexander qualified, entry-level (F.A.) Porsche, 76, died NATEF’s new accreditation logo. April 5. Matthias Müller, technicians. The list of industry donors includes: American president and CEO of Porsche AG, paid tribute to Ferdinand Alexander Porsche’s Honda Motor Co., Automotive services to the sports car manufacturer: “As Aftermarket Industry Association (AAIA), Gates Corp., Hendrick the creator of the Porsche 911, he established a Automotive Group, Motor and design culture in our Equipment Manufacturers company that has shaped Association (MEMA), National our sports cars to this Automotive Parts Association (NAPA), National Automotive very day. His philosophy of good design is a legacy Ferdinand Dealers Association (NADA), Alexander National Institute for Automotive to us that we will honor Porsche, the for all time.” His Service Excellence (ASE), Navistar, creator of the Inc., Nissan North America, Inc., childhood was shaped by Porsche 911, and Toyota Motor Sales, USA. cars, and he spent much died April 5. Barrett-Jackson has announced that of his time in the it has contracted collector car legend Rick engineering offices and development workshops of his grandfather, Ferdinand Cole to serve as an Automotive Specialist. The announcement was made live on Porsche, before he enrolled at the Ulm Speed from the auction School of Design. F.A. Porsche created the block during Barrett911, now in its seventh generation. In Jackson’s Palm Beach addition to passenger cars, F.A. Porsche event. Best known as also designed the sports cars of the 1960s. the hobby’s His best-known designs include the Type “Auctioneer to the 804 Formula One race car or the Porsche Stars,” Los Angeles904 Carrera GTS, now considered to be based Cole will utilize one of the most beautiful racing cars ever. Rick Cole has his experience in the A strong and clear design concept typified joined Barrettauction arena to help all of his product designs. His conviction Jackson as an Barrett-Jackson source Automotive was: “Good design should be honest.” Specialist to consignments for Ferdinand Alexander Porsche received help consign collector cars and add numerous honors and awards both for his collector cars his more than 35 years and automobile work as a designer and for individual collections. of expertise and designs. n
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knowledge to find some of the most highly-collectible automobiles and automobile collections. Cole will work hand in hand with Gary Bennett, vice president of Consignments. In memoriam: Warren J. McEleney, 90, president of the National Automobile Dealers Association (NADA) in 1971, died March 23. McEleney, who served on NADA’s board of directors representing Iowa from 1966 to 1976, began his career with McEleney Motors in Clinton, Iowa, in 1946. He was the father of John McEleney, who served as NADA chairman in 2009. The McEleneys were the first father and son to lead the association. “Warren McEleney was an exceptionally respected and beloved leader in the automobile industry and in his community,” NADA President Phil Brady said. Memorials may be made to Jesus Christ, Prince of Peace Parish, 1105 LaMetta Wynn Dr., Clinton, Iowa 52732. Online condolences may be left at www.papefh.com. Expressions of sympathy may also be sent to John and Ginny McEleney, 1111 Melody Hills, Fulton, Ill. 61252. In memoriam:
ASA-MO/KAN Vision Hi-Tech Training & Expo celebrates 20th year
photos by Matthew Sevart Overland Park, Kan.—It was a packed booth space was spoken for at the recent house on the trade show floor of the 2012 event with 223 booths filled, including 31 Automotive Service Association of first-time exhibitors showcasing the latest Missouri/Kansas (ASA-MO/KAN) Vision tools, equipment, services, and software. Hi-Tech Training & Expo. Nearly every n More than five decades pioneer engineering in the balancing industry
TIRE CHANGERS
WHEEL BALANCERS
MOTORCYCLE CHANGERS
MOTORCYCLE BALANCERS
ALIGNMENT EQUIPMENT TRUCK CHANGERS
TRUCK BALANCERS
Tom and Becky Hand (r.), service advisors at Steve’s Auto Service in Raytown, Mo., get some insight about BG Products’ Induction Service Machine from Mike Boston, owner of BG of KC, a Kansas City-based BG Products distributor.
CEMB USA / BL-Systems, Inc. 2873 Ramsey Rd. Gainesville, GA 30501
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Phone: 678-717-1050 Fax: 678-717-1056 Toll Free: 877-259-4335
Clint Walker (r.), owner of Walker Automotive in Kansas City, discusses the specifics on the latest Challenger lifts with Chris Corkhill, owner of Corky’s Equipment in Marshall, Mo.
Phil Woody (l.), district sales manager for Community Wholesale Tire (CWT) in Kansas City, Mo., took time to demonstrate the new CWT online ordering system for Mace Smith, owner of Fast Trax Tire & Auto in Kansas City, Mo.
ACDelco ............................................................9 Ausmor Inc. .......................................................6 Becker Tire & Treading....................................20 BG Products distributors..................................4 CEMB USA......................................................31 Chrysler LLC ...................................................17 Community Wholesale Tire ............................22 Corky’s Equipment .........................................12 Electra Tech Inc...............................................10 Elite Worldwide ...............................................24 Exedy Globalparts Corp. ..................................7 GAAS...............................................................26 Jasper Engines & Transmissions......................8 Jones Automotive Inc. ....................................19 Kansas City Parts Connection .......................29 Kia Motors America ........................................11 Mercedes-Benz USA LLC ..............................21 Myers Brothers................................................27
NAPA Auto Parts...............................................5 NAPA ProLink..................................................23 New Century Dodge .......................................25 Qualcast Products ..........................................10 QRP Central ....................................................19 Scholfield Pontiac GMC .................................22 Scholfield Hyundai..........................................15 Sea Foam Products ........................................14 Sterling Bearing...............................................20 Subaru of America dealerships ......................32 Superior Honda...............................................16 Total Lubricants USA Inc. .................................2 Uni-Select........................................................12 Van Chevrolet..................................................15 Webright Media...............................................27 Wholesale Batteries, Inc. ..................................6 Zurich...............................................................13
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The Kanas City, Mo.-based Factory Motorparts (FMP) team had the chance to talk with a number of its customers. From l., FMP Sales Representative Dave Doser, Sales Manager Jay Brown, Sales Representative Troy Gallagher, Donovan’s Service Owner Pat Donovan, and FMP Fleet Sales Representative Richard Riddel.
Parts & People
May 2012
Page 31
Call any of these dealerships for genuine Subaru parts.
Page 32 May 2012
Kansas City, MO Van Subaru 816-365-8420 877-331-9271 Bellevue, NE Beardmore Subaru 402-738-7606 800-734-0271
Urbandale, IA Ramsey Subaru 515-251-1540 800-669-6460 Lincoln, NE DuTeau Subaru 402-420-3300 800-228-4183
Wichita, KS Subaru of Wichita 316-260-8900 866-588-2550 Omaha, NE Stan Olsen Subaru 402-393-1989 800-533-7967
Lee s Summit, MO Lee s Summit Subaru 816-251-8620 800-444-8620 Olathe, KS Olathe Subaru 913-324-3333 866-328-9542
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