May - June 200 News In Brief: And so does BASF

In Brief

GIO launches DRP
GIO has been trialling a DRP program in three Melbourne shops (see p.?? for more details). The scheme is being rolled out in Sydney and Melbourne under the control of Keith Dean, national assessing manager and Ernie Swanson, who has been drafted in to oversee the selection process.
Only those jobs where the customer leaves their car at one of the insurer's Guaranteed Repair Centres will be allocated under this scheme; approximately one third of all repairs. Bodyshops entering the program will have to work out how much extra work they can handle and cut margins. Therefore repairers taking on the work will need to be efficient to handle the high volume, low margin work.
At present, the GIO shops in Melbourne have been chosen; 16 out of the 86 in the GIO network.

Insurer buys shop
An insurance company has purchased a Melbourne repair shop and has leased it back to the owner in what the insurer terms 'an experiment'. The insurer is seeking to gain information on how bodyshops operate in order to better understand and operate its claims system. There are no plans to purchase any further shops and no plans to operate a wholly-owned network.

Mercedes network on hold
DaimlerChrysler has been considering adding one new authorised Mercedes-Benz repairer to its network in Sydney, which at present consists of Perfect Auto Body, but a spokesperson said the company would not be signing up any new repairer for "at least six months" as the company is busy making changes to its parts department and other divisions at the Melbourne head office.

Multi-makes network?
A major car maker is exploring ways to set up a repair network in Australia and has even looked at joining with other car makers to launch a network.

AP Eagers blames GST for slump
Brisbane-based car dealership group AP Eagers' full-year sales and profit slip was blamed on poor consumer sentiment pre-GST and delays in fleet purchases post-GST. Sales fell marginally from $504.2 million in 2000 to $494.2 million in 2001 while net profit slipped from $9.6 million to $4.3 million.

Spies Hecker winners
Competition for the second Spies Hecker Formula 1 Fever incentive program was high according to Spies Hecker. Winning distributors and Diamond Warranty bodyshops from Australia and New Zealand enjoyed the hospitality of Spies Hecker and BMW Australia for three days at the 2001 Qantas Australian Grand Prix in Melbourne as VIP guests at the BMW Australia race compound.

DaimlerChysler to share parts
DaimlerChrysler, the world's fifth largest car maker, is planning to share platforms and parts on many of its brands to cut development costs for new models. The company said it will build small and medium-sized Chrysler and Mitsubishi cars off shared structures while cutting the number of platforms from 29 to as little as 13.

Standox wins Saab approval
Saab Automobile Australia has named Standox as its preferred and recommended paint supplier for Saab-approved bodyshops.
"Our aim is to provide high quality paint and body repairs through modern facilities with professional staff and up-to-date techniques and equipment," said Saab's business development manager for aftersales, Frank Quattrone.

Insurance pressure to grow
Frank Michell, former general manager of SGIO confirmed at a recent industry forum hosted by MTA-WA that the consolidation of the insurance industry in Australia would result in significant downward pressure on repair costs. He urged the industry to stand united and said strength lay in a united lobby effort. He pointed out that the Insurance Contracts Act is currently under review and could be amended to permit freedom of choice of repairers for policy holders for work carried out under an insurance contract. He advised MTA to lobby for this change at a national level.

Glasurit appointment
BASF Wattyl Coatings has appointed a new head trainer to manage its extensive national training program. Kevin Cooper will assume responsibility for all training activities, including trade and specialised courses. Cooper has moved to Australia from the UK where he was Glasurit's technical sales specialist for southern England. As Australian head trainer Cooper will conduct training venue courses in Sydney, Melbourne, Adelaide, Perth and Brisbane. He will prove a major asset to Glasurit customers during the launch of the company's advanced RATIO AQUA water-based system later this year.

Akzo acquires MAC refinish
Akzo Nobel has acquired the vehicle refinish business of MAC Specialty Coatings in the US. The deal includes the U-Tech commercial product line which Akzo Nobel has been distributing exclusively in the US for two years.
Akzo North American general manager Rob Molenaar said the deal allows the company to offer a broad spectrum of refinish options in the US. "Now [our distributors] can offer our customers everything from Sikkens, which serves the high-segment, to Lesonal in the medium-segment, to U-Tech in the light commercial and automotive markets."

Farmers sued over aftermarket parts
Farmers Group, the fourth largest US general insurer, faces a lawsuit in the Los Angeles County Superior Court, brought by policy holders which claim the company forced its Blue Ribbon shops to fit inferior replacement parts on damaged vehicles and referred policy holders to these shops. .
The suit is similar to that taken out against State Farm in 1999, in which the insurer was ordered to pay $1.2 billion to policy holders. State Farm is appealing the decision.

BASF strikes deal in Korea
BASF Coatings S.A. has signed an exclusive distribution agreement with Samhwa Paints of South Korea to sell its R-M branded automotive refinish paints in the country. "Through this co-operation, Samhwa will be able to broaden its product range, while we will gain access to the Korean market," said Jean-Pierre Monteny, head of the Automotive Refinish business of BASF Coatings AG. A comprehensive sales and marketing program has been set up by the two companies to ensure that this project will succeed, said Monteny.

DuPont wins Toyota contract
At Toyota's new 150,000 car capacity manufacturing plant in Onnaing, France, most of the materials for the complete paint build-up will come from DuPont Herberts AutomotiveSystems (DHAS). An intensive cooperation between Toyota, coating suppliers and plant engineering experts to evaluate various paints systems has been in place since 1998. The Japanese joint venture partner, Herberts Shinto AutomotiveSystems, assisted DHAS in the implementation of technical approval programs.

Caliber continues to grow
US bodyshop consolidator Caliber Collision Centers opened its 56th shop in March. The company acquired Collision Repair Center Inc. in Oceanside, California. Caliber is rapidly expanding its shop portfolio, the Oceanside opening was the fourth new shop in just one week.

Covisint Europe MD named
Lars Olrik has been named managing director, Europe, of Covisint, the online joint venture between the 'big three' US car makers. He will operate from Covisint Europe's headquarters in London.

PPG wins PACE award . . .
PPG Industries received a PACE award in the US recently for significant automotive coatings innovation.
Sponsored by Automotive News magazine and Cap Gemini Ernst & Young, 12 awards for automotive industry supplier process and product innovation and management excellence were announced at the Henry Ford Museum. Recipients were selected from among 36 finalists after a comprehensive evaluation by an independent panel representing industry and academia.
Pittsburgh-based PPG was honored for its Audioguard sound and vibration-dampening coating. PPG was also a finalist for Bonazinc weldable primer and Enviro-Prime 2000 lead-free electrodeposition primer.

BASF has won the 2001 Automotive News PACE Award in the open category of environmental advances. The prize was awarded for the coating process BASF developed in co-operation with DaimlerChrysler and Dürr Systems for the Mercedes-Benz A-Class model. This so-called Integrated Coating Process has now won its seventh award since 1997.
"The integrated coating process is to date the most significant representation of our initiative which emphasizes advantages in ecology and economy," said Frank E. McKulka, president of BASF's US Coatings and Colorants division.

Suncorp counts storm costs
Suncorp Metway expects to pay out up to $8 million in claims following the March storm in southeast Queensland that caused flash-flooding. About one third of its claims were motor related after the storm.

AAMI targets NRMA renewals
AAMI has been targeting NRMA Insurance's motor insurance renewals in full-page advertisements. AAMI claims the number of its clients that are ex-NRMA has shot up by 48 per cent since the demutualisation of the NRMA in July 2000. AAMI states its policies are cheaper than NRMA's and this is the reason for the shift. NRMA has denied it is losing market share to AAMI however.

NRMA targets HIH
Meanwhile NRMA Insurance could not resist a dig at failed insurer HIH in an ad campaign released just two days after HIH's announcement that it was going into receivership. The ads stated that NRMA is the most likely insurer to 'stay around' and that it is not in danger of collapse, unlike its recent rival.

PacDun exits auto game
Pacific Dunlop has committed to selling its Pacific Automotive division, which includes Repco, Ashdown, Motospecs, Appco and a 50 per cent interest in CarParts, for between $350 and $400 million. Interested parties are said to include US companies Pep Boys and Autozone as well as Howard Smith, Kmart Auto and WA-based Coventry Group. The company will also review its South Pacific Tyre joint venture with Goodyear.

MTA NSW renovates
MTA House in Sydney is to undergo an extensive renovation costing approximately $500,000. The refurbishment is designed to improve MTA assets (the value of MTA House, the former 20th Century Fox building, is at present below market standard) and service levels.

Adtrans profits fall
Adelaide-based auto dealership group Adtrans saw half-year sales grow slightly from $184.5 million to $185.2 million while pre-tax profit dropped from $5.4 million to $4.1 million and net operating profit dipped 23 per cent.

Mitsubishi dumps real estate
Mitsubishi has sold its remaining dealership property assets -- five dealer sites in NSW, four in Victoria and two in Queensland in a $50 million securitisation deal. All the dealers will stay on the sites on long-term leases and continue to pay rent to Mitsubishi. Through the deal the car maker is able to retain its retail presence, while gaining capital by selling its real estate to a private investor.

OEMs join forces
Nissan and Renault have combined their global procurement operations in a joint venture that will handle $US14.5 billion in business annually.

NTI joint venture
National Transport Insurance (NTI), the largest truck insurer in Australia, has struck a deal with its shareholders; AMP, CGU Insurance and Royal & Sun Alliance. The shareholders, under the new joint venture, will become direct equal co-insurers for all present and new business. The joint venture will retain the NTI brand name.

Auto Group in black
Vehicle 'remarketing' and disposal firm Auto Group reported a net profit turnaround from a half-year loss of $500,000 in 2000 to a profit of $130,000 in 2001. The group said a restructure of its operations, including the closure of its Port Melbourne wholesale operation and a revamp of its CarTech business was responsible for the result.

Next-day delivery
Ford has signed up courier company Federal Express to provide 'critical parts support' for its commercial truck customers. The program is set to provide 24-seven service, year-round for 'vehicle down' emergency situations.

DaimlerChrysler approves DuPont
DuPont Performance Coatings has gained global approval from DaimlerChrysler for its three global coatings brands; Spies Hecker, Standox and DuPont Refinish. The approval covers refinish applications for all DaimlerChrysler brands including Merecedes-Benz, Chrysler, Jeep and Smart and applies to both passenger and commercial vehicles.

New Futuris plant
Futuris Corporation has opened a new facility -- Air International Interior Systems -- within the Ford Australia complex at Broadmeadows, Victoria to manufacture auto interiors.

China fair success
Automechanika China 2001 -- China International Trade Fair for Car Workshop and Service Station Equipment, Auto Spare Parts and Accessories was held in Beijing this March. Almost 13,500 trade visitors attend the show -- a 69 per cent increase on 1999 said organisers Messe Frankfurt.

Mobile gas
BOC Gases has introduced a new service to Sydney, Melbourne and Adelaide; Cool Gas Express. The service delivers gas cylinders to automotive businesses for their air conditioning refrigerant needs. The service was trialled in Brisbane and the company plans to expand it further next year.

Compulsory checks out
The Victorian Road Safety Committee has rejected the idea of compulsory annual vehicle checks but has stated that Victoria's roadworthiness system needs to be significantly overhauled. The committee has recommended that Victoria Police and authorised VicRoads Officers be allowed to randomly inspect vehicles and trailers.

Automechanika appointment
Michel-Alexandre Morlat has been appointed Automechanika brand manager for Messe Frankfurt. Morlat was general manager of Equip'Auto in Paris for 16 years. New Automechanika fairs will be launched in Egypt and Turkey this year.

Skycar in Sydney
The Moller Skycar was one of the exhibits at the Big Boys Toys show in Sydney in late March. The flying car is supposed to reach speeds of 600 km/h at altitudes of 2000 metres guided by satellite navigation, although the project has not fully 'taken off' as yet. The need for hoists would presumably be minimal when repairing these hovering vehicles.

Monroe ads online
Tenneco Automotive has launched a series of interactive adverts for its Monroe shock absorbers. The campaign will feature on eauto tv; 60-second ads will feature tie-ins with an internet promotion.

Don't touch that dial
A study in the US has found that a driver using a mobile phone is statistically safer than one tuning a radio or eating. Advertising and other distractions caused 19.7 per cent of accidents followed by eating a drinking at 18.8 per cent, tuning car radios -- 11.4 per cent, talking to passengers -- 9.4 per cent and talking on mobile phones -- 1.5 per cent.

Jumbo panels
The UK's University of Warwick is investigating the possibility of using elephant grass as a component in biodegradable plastic vehicle panels. The grass fibres would be used as structural filler to strengthen the plastics.