May - June 06: News
News
Toyota to set up repairer network
The Toyota Motor Corporation Australia is in the process of setting up a bodyshop network to specialise in the repair of all its Toyota badged vehicles. The company already has a small network of repairers for Lexus and Prius.
The move by car makers in general to designate specialist repairers is gathering momentum. Lead by exotic and prestige cars, repairer networks are now finding favour among the middle to budget markets. Several middle market European brands such as Peugeot, Renault and Citroen have designated repairers in Australia, while in the volume league Holden is in the planning stage and is expected to make an announcement soon. Subaru set up a repairer network in 2004 and is pleased with the results.
Toyota came close to setting up a repairer network 10 years ago when it was requested by its Japanese parent company to investigate the possibility of a "body and paint program" based on the premise that Australia was one of the only major distributors of Toyotas without a repairer network. In some countries Toyota Dealerships have their own body repair facility.
Because Toyota had been established in Australia through Dealerships without repair shops, the company found it virtually impossible to introduce the overseas model. Although it is rare in Australia for Dealerships to include body repair facilities, mechanical servicing and repairs are the norm. In general, Dealers have found it difficult to make their own body shops pay, especially when compared with the keen prices obtainable from the oversupply of independent shops.
Toyota eventually shelved the body and paint program in favour of relying on its dealers' relationships with independent repairers and the networks of preferred repairers linked to insurance companies.
But now Toyota designated repairers are back on the agenda. The program is being driven by a newly appointed industry experienced national body and paint manager, within its customer services division. The aim is to roll-out an internet based application process in the near future. This will lead to appointing a number of Toyota approved repairers by the end of the year.
Toyota is not revealing its standards criteria for choosing repairers. Like other car companies heading in the same direction, Toyota's interest in repairers is motivated by a need to protect its new genuine replacement parts business and also ensure that its customers receive excellent after sales repair service. Toyota also realises that technology is pulling car manufacture in several different directions, meaning an increasing need for badge-specific repairers.
A Toyota repairer network would see demand for training services increase as new Toyota models come on to the market. As with Lexus and Prius in the past, provision for these services will be handled through its Toyota Institute Australia.
Currently, Toyota repairers rely for guidance on manuals which are available through all parts Dealers.
NRMA's objection to anti-steering
David Brown, head of claims and assessing for NRMA puts the case against anti steering in these terms:
- We believe that anti-steering legislation would have serious negative implications for customers. The Productivity Commission, consumer groups and customer research all support preferred repairer schemes.
- International experience shows that anti-steering legislation may lead to higher premiums and increased instances of insurance fraud.
- Anti-steering legislation could also present a huge cost to government. In California the BAR vehicle inspection and repair fund program cost taxpayers US$95 million in 2003/04.
- Our preferred smash repairer program reassures our customers that quality repairers are fixing their vehicles.
- NRMA Insurance research shows that the average motorist does not have an ongoing relationship with a motor repairer, and in fact, many consumers look to their insurance companies to recommend repairers with experience and high standards of workmanship
- Other research conducted by NRMA Insurance shows seven out of 10 drivers who have managed their own repairs found it a hassle
- In its submission to the Productivity Commission the Australian Consumers’ Association stated that ‘most consumers are happy, in fact prefer, to let their insurer manage the repair’.
'Stipped to order' growing
According to the Road Traffic authorities the types of vehicles which are stolen and stripped to order are on the increase. The Subaru The National Parts Code has been set up to rid the repair industry of stolen parts. Director Nick Koerbin says that Recyclers who have adopted the National Parts Code of Practice have agreed to adhere to a contract with the National Parts Code Inc that they will ensure that all their parts can be traced to legitimate sources and guarantee to consumers the parts are not stolen.
"We have established a solid regime of audit where participants need to demonstrate at random their parts can be traced," Koerbin says. "We believe that if all recyclers joined the Code of Practice we will make it very difficult for criminals to pass stolen parts through the supply chain."
The National Parts Code administers a voluntary Code of Practice is adopted by professional auto parts recyclers. The recyclers who participate in the National Code of Practice guarantee to consumers they will only sell recycled parts, which have been removed from vehicles that have been purchased through legitimate means.
Currently there is no national legislation compelling auto parts recyclers to trace their parts. A repairer may contact a recycler for a particular part, and if the part is not available the recycler may seek the part through his own network. In this case, the recycler may not be able to identify where the part originated from and a stolen part can be slipped in the system.
A Code of Practice to stamp this out has been welcomed by the auto parts recycling industry. Over 124 auto parts recyclers now have joined the Code of Practice. Insurers such as Allianz, QBE, IAG and Insurers Hotline have supported their commitment by requesting their repairer networks to be supplied by Code participants.
Member recyclers are required to provide their code number at each transaction. If a recycler is not a participating business of the Code of Practice it can join the National Parts Code by either accessing the website www.partscode.com.au or phoning the NPC on (03) 98401002.
PPG approved for hot Merc
DaimlerChrysler has issued approval for two new PPG developed repair systems to be used when repairing the company’s latest technological masterpiece, the Mercedes-Benz SLR McLaren.
Developed and built in conjunction with DaimlerChrysler’s Formula 1 partner, McLaren, this lightweight, two seater, super sports model packs a supercharged 5.5litre V8 (460kW) that’s capable of accelerating it from 0 to 100km/h in 3.8 seconds and on to a top speed of 334km/h. It’s exclusive too, with no more than 3500 to be made.
Designed specifically to deal with the SLR McLaren’s advanced carbon-fibre composite structure, the two PPG repair systems ‘ DaimlerChrysler approved repair system DC-S11 and DC-S12 ‘ have now been incorporated into the official DaimlerChrysler repair manual.
All products required for the repair systems can be found in PPG’s existing product range including the company’s premier paint system, the Global Refinish System (GRS). Formulated using the very latest coating technology, it has already proven to be an extremely flexible, versatile and easy to use system that delivers an outstanding high gloss finish. Designed for premium repairs and high performance, it’s the ideal tool for the Mercedes-Benz SLR McLaren.
SurePlan's repairer of the year
Benro Industries has won the inaugural award for SurePlan Australia’s Primary Repairer of the Year for 2005. In announcing the winner Mark Grace, technical services manager for SurePlan Australia said, ‘Benro Industries was a clear winner in the major assessment area of customer satisfaction."
All SurePlan customers are surveyed following their vehicles' repairs. The ratings provide a critical factor in arriving at a winner.
Grace added: ‘Benro Industries is an outstanding performer and continually offers superior quality workmanship and great customer service. This is vitally important when acting as a network repairer for any company, because you are really a sub-contractor for that company.’
SurePlan’s repairers are vetted under a stringent set of rules and guidelines before becoming a part of SurePlan’s network. To become a network primary repairer, repairers must meet certain requirements in relation to size of shop and the area they are covering. They must offer clients additional services such as and Analysis on repair costs, number of days taken to repair vehicles, number of supplementary quotes requested and customer satisfaction surveys were all included in the judging criteria for 2005. There were a number of repairers that were close to the top but Benro was unbeatable at the end day. This year all three finalists came from Victoria.
‘Benro Industries has been a star performer since we joined forces. The company has grown in line with SurePlan and we have supported its growth in a highly lucrative industry. We hope to share many successes in years to come."
Staysafe questions recycled parts
One of the fallouts from the NSW Staysafe committee report of last December has been its suggestion that safety could be compromised by the use of parts other than those designated 'new genuine'.
The Staysafe Committee drew no definitive conclusions about parts from the evidence it took in its examination of NRMA's web based repair system. But it obviously registered some discomfort relating to, in its words, 'new non-genuine, parallel, grey, recycled (second hand) parts' because it recommended further investigation into these types of parts.
While it has been shown that some new after market parts can have quality issues, there have been no negative suggestions about the safety of recycled parts until the Staysafe report.
Auto recyclers are represented by a national body, The Auto Parts Recyclers Association of Australia (APRAA) which promotes recycled parts on environmental and cost grounds.
APRAA’s sector handles the majority of the 500,000 end-of-life vehicles (ELVs) which are retired from Australia's roads annually.
The national body dealt with the safety issue of recycled parts as part of its submission to the Staysafe Commmittee. It said:
"APRAA and MTAA are most concerned to ensure that the Staysafe Committee (and potentially the general community) understand the important role that recycled parts and auto parts recyclers play in today’s automotive industry. The committee’s inquiry terms of reference, point 3: 'Use of second hand vehicle parts, further compromising safety', in our view underlines the need for greater community education about the benefits of quality recycled parts; where it is appropriate for them to be used.
Importantly, APRAA believes that quality recycled parts sold by a licensed quality operator, and fitted by a professional, will not compromise vehicle safety. APRAA would be pleased to consider any evidence to the contrary.
APRAA is the national, industry association which represents approximately 400 small to medium sized business members and up to 1200 non-members, as the recognised national voice of the auto parts recycling industry in Australia. APRAA has been established since 1982.
APRAA is an Affiliated Trade Association within the MTAA Federation. NSW based auto parts recycler members belong to the Motor Trade Association (MTA) NSW.
Auto part recycler MTA members are required by their association Code of Conduct to meet minimum quality standards, plus many of them have progressed their businesses with a commitment to quality parts and service, including voluntarily adopting the APRAA Accreditation scheme higher standards (Level 1-5 stars). Many auto parts recyclers pride themselves on achieving environmental best-practice in regard to their business premises, image and processes, including the treatment of waste pollutants and materials.
APP awards into second decade
This year, Paint & Panels' Autobody Repairer of the Year Awards enters its 11th year. From a fledgling single 'Panel Beater of the Year' the award program has grown to encompass the best large, the best small and the best new repair shops around Australia.
It has also grown in the style of its presentation. For many years the winners were announced in the magazine and their trophies were boxed up and sent to them. Then three years ago, we were able to fly in the three national winners for a lunchtime presentation before an audience of suppliers and repair personalities. This was repeated the following year in Melbourne.
Last year our awards achieved their highest level so far when we flew into Sydney 14 regional winners and announced, at a luncheon function, the three national winners. They were Heydon Harvey, the Shafer brothers and Stephen Goodall. That gave us the essential element of excitement and surprise that we'd been seeking.
Our first winner back in 1996 was Marque Motor Body Repairs in Melbourne, a shop that some critics at the time found 'too good' for the traditional look of a repair workshop. We revisited Marque in 2004 and found it still a shop of which the industry should be proud, with its contemporary glass fronted building and superb management and repair facilities.
All though our award program we've had the sponsorship of AAMI, an insurer that supports many worthy commercial and industrial causes. For many of our ten years we've also had the support of Saint Gobain, marketer of Norton's abrasives, which sponsored the best new shop award. It has only been through AAMI's and Saint Gobain's enthusiasm that we have been able to upgrade our awards.
This year, AAMI has assumed the full sponsorship of all three awards and has given us the support to once again fly our regional winners to Sydney where we will announce the three national winners.
Helen Davies, advertising publisher for Paint & Panel, believes the Auto Bodyshop of the Year Awards do more than honour just those who won.
"The awards expose excellence that inspires other shops," she says. "The winners are not only well presented and well equipped, they run their businesses efficiently and they make their customers happy. They're the standard bearers of the industry.
"Every shop that aspires to higher standards needs to know what those standards are, and what their shop can become.
"The awards have a wider application too. Currently we're seeing some heavy negotiations between governments, insurers and repairers over a number of issues. Many of the shops that represent the repair industry at large are also those that have won our awards and have been recognised as leaders."
And what of the future’
"We don’t' see more award categories being added at this stage,' Davies says, "so we'll continue what is a very successful format. What we might think about is an expanded function which could include a short seminar. I'd certainly like to hear the winners tell us how they did it and their feelings about the direction the industry is taking.
"But for now we want suppliers in all categories to nominate the best large, small and new shops for this year's awards. Shops can also self nominate. We want the 2006 awards to expose the very best of the best body shops in Australia."
Bedford is AARN's new man
After a delay following the resignation of Brian Parsons, The Australian Accident Repair Network (AARN) has appointed Geoff Bedford as its manager.
Like Parsons, Bedford has had a long association with a major car company, in this case General Motors Holden.
He joined the company in 1976 and held various executive marketing position, culminating in his appointment as network development and remarketing manager with responsibility for the Holden retailer certified used vehicle program, the Holden company vehicle operation and the Holden auction operation.
Geoff Bedford is in his mid fifties. He retired from Holden ‘ and he believed work ‘ in July last year but after fulfilling a few long help travel ambitions he felt the need to rejoin the workforce. He brings to the AARN position a vast knowledge of the car industry along with natural energy and enthusiasm.
AARN will not hold its usual seminar this year but will instead hold a members business meeting concurrent with the Auto Trade Fair at the Crown Plaza, Darling Harbour in Sydney on Friday June 24. One of the speakers will be Queensland MTA general manager, Richard Pratt who will give an update on the progress of I-Car in Australia.\
Austral becomes Permatex distributor
Leading specialist suppliers to the engine reconditioning market, Austral Distributing Company Pty Ltd, has signed on as a key distributor of the Permatex range of automotive repair and maintenance products.
Internationally, Permatex Australia has taken out first prize in the annual global sales awards presented by Permatex International for the past two years.
Market manager automotive parts, Tony de Haas, said the Permatex range was the most comprehensive on offer in the world and new products were
continually being introduced.
"The main reason for our success is the breadth of product, the industry recognized part numbers and the shelf life which is a very important factor for auto aftermarket and specialist automotive suppliers," he said.
" We are very confident that in appointing Austral Distributing Company - a leading specialist supplier to the engine reconditioning market - we have aligned ourselves with a quality niche supplier.
New Sikkens e-Benchmarking
Since its introduction in January 2004, Sikkens web-based benchmarking system, which enables Sikkens bodyshops to compare their performance against similar bodyshops, has recently undergone improvements. They include: optimized information calculations, better user interface navigation, complete system localization, more precise output, the drilldown screens are now expandable and there is better exportation capabilities.
Project manager, Scott Kirkwood says, ‘We have listened to customers and built new functionality that they can really use. This development was a hundred per cent outside-in. Through feedback from the markets via our services consultants, we have given them a solid tool that provides a real competitive advantage’.
Paul Wake, national services manager Australia and New Zealand says, ‘Acoat selected and Sikkens e-Benchmarking is a great success in Australia and News Zealand. Without Sikkens e-Benchmarking we would have struggled to keep up with our competitors within the market place but now more and more prospects are switching to Sikkens just to get access to Acoat selected and Sikkens e-Benchmarking.
"It has not only been a tool to capture new business but is one of the contributing factors of retention within our services program. And the release of 1.91 has taken Sikkens e-Benchmarking to the next level by introducing those key changes which our customers are focused on.’
Ray Iversen, from Highlands Smash in Queensland says, ‘I find Sikkens e-Benchmarking a great tool to monitor my business, more so now that I am not there on a regular basis. This tool along with the Acoat selected package has helped grow my business and increase my profit margins. I can see areas where I am weak and strong.
"I can log on, check any areas of my business, and compare myself against my peers, which under normal circumstance would not only take me hours but be virtually impossible. 1.91 has many new modifications which have re-enforced it as a tool I cannot do without."
Akzo's two pronged attack
The 2005 national sales conference for Akzo Nobel Car Refinishes Australia was held in Lorne, Victoria. The theme of the conference was a two pronged approach focusing not only on growth but also on innovation. Akzo Nobel is committed to being a leader in the development of new products and proved this with a preview of the program for product evaluation and development for 2006.
The growth for 2005 was considerable, not only in sales but also in customer base development. On going growth will be achieved through the continued development and expansion of the support programs offered. These include Acoat Selected, The Refinish Assurance Plan (lifetime warranty program), customer service and support programs, diverse training courses, a state of the art training facility and of course new product initiatives.
With the rapid growth of the Acoat Selected Program and its snowballing popularity amongst its participating customers word of mouth within the industry has become one of the brand's strongest sales tools.
Although growth will be a major focus in 2006 the sales force was left in no doubt that achieving and maintaining growth can only be achieved through exemplary commitment to excellence in customer service. Its members were treated to a five star event for the awards presentations with the following staff members winning awards.
Salesman of the year and commercial vbehicle salesman of the year was Darren Forest from Adelaide. The outstanding achievement award went to Ray Steele from Queensland. Highly commended were Peter Duff and David Green, both from Victoria. Acoat Selected consultant of the year was Ken Catford-Potter, NSW.
Future cars to be lighter, stronger.
The secret will be new advances in the casting process that uses super lightweight magnesium alloys, according to a team of research engineers at CSIRO.
The technology, called T-Mag, consistently produces high-integrity magnesium alloy castings from permanent moulds, free of porosity and other defects.
T-Mag can cast lightweight magnesium-alloy engine blocks that will be only two-thirds the weight of current aluminium alloy blocks and less than one third the weight of cast iron blocks’ a prospect that is already arousing the interest of high-performance car manufacturers in Europe.
It will also be possible to cast high-integrity magnesium alloy wheels. Current casting technology cannot produce wheels of sufficient integrity to be safe and practical at an acceptable cost.
T-Mag is being developed through CSIRO’s light metals flagship by a team from CSIRO manufacturing and infrastructure technology. A pilot-scale unit built for research and development has already produced successful demonstration magnesium castings, including road wheels. Blocks for a 750cc, water-cooled, motorcycle engine will be cast shortly.
CSIRO believes that T-Mag’s technical and economic attributes will give it a competitive advantage over current casting technologies, and remove many obstacles to the economic production of high integrity magnesium parts.
Head researcher, Dr Thang Nguyen, describes T-Mag’s novel, integrated design as a critical enabling technology, with a range of applications beyond the high-pressure casting technique currently used to produce 85 per cent of the world’s magnesium alloy components.
High-pressure die casting has limitations which restrict its application to cast many automotive components, one of these limitations is low as-cast yields: ty’T-Mag requires only 3.7kg of alloy for a 3.5kg casting; this reduces recycling, and energy use and saves a lot of melt cost,’ Nguyen says.
T-Mag is a permanent-mould casting process that requires neither applied pressure nor a vacuum to fill the die. The die fills smoothly from the bottom, minimising air entrapment and oxidation, and produces X-ray-quality castings that are virtually free of defects.
New rules for Formula 1
Formula 1 enters a new era this season with teams only being allowed to use eight-cylinder engines with a maximum capacity of 2400cm3, which will produce about 200HP less than the ten-cylinder engines used last year. The goal is clear: increasing safety by reducing power. The new regulations will push the engines even further into the limelight in Formula 1.
‘A V8 spends much more time in the wide-open throttle range every lap than a V10,’ explained Alex Hitzinger, Head of the Formula 1 project at WilliamsF1’s engine partner, Cosworth. ‘So the engine performance will become even more critical for the overall performance of the car. he loss of power is not causing the engineers any headaches. As in the past, it is estimated that every season they will probably regain 20 to 30HP of the roughly 200HP they have had to give up because of this reduction in engine capacity. However, it was much more difficult to reconcile the whole series of parameters that were specified for the new engines. For example, the minimum weight of 95kg combined with the other specification of the minimum height for the centre of gravity has meant that the V8 is much heavier than it
actually needs to be. The engineers did the best they could and designed the engine much more rigidly, which has benefited the handling of the cars.
Because they did not need to watch every single gram, they also made
several static components like the cylinder block and the cylinder heads much more robust, and so increased the service life of the engines. The new regulations have not changed the basic task of exploiting the rules as much as possible and so gaining a valuable advantage even before the season starts.
‘We set ourselves a target of a top engine speed of
20,000rpm,’ says Hitzinger, ‘and we’ve managed that."
PPG partners Williams
PPG Industries has extended its partnership with Williams until 2008. As the team’s official supplier of automotive paint refinish technology, the livery of the 2006 race car, the FW28, is finished in PPG refinish products.
The FW28 is both a response to circumstance (including changes to the sports technical regulations and the team’s new primary partnerships with engine supplier, Cosworth, and tyre company, Bridgestone) as well as being its own clear statement of intent. This season it sports an all new livery, created using PPG refinish products, which is not only chic and timeless but also provides an excellent canvass for highlighting sponsor logos.
‘We’re delighted our premium products will continue to be used on the new generation Williams F1 cars, the team’s transporters and on support vehicles throughout the 2006 race season and beyond," says PPG’s European brand proposition manager, Emma Golding. ‘This is an exciting time for Williams F1, with many new technical developments which are fully complimented by the modern, visual impact of the livery. Alongside the new driver line-up of Australian Mark Webber, and Nico Rosberg, we feel sure we will see Williams F1 in its rightful position back on the podium this season.’ WilliamsF1’s Team Principal, Frank Williams, said of the contract extension: ‘PPG has made an important contribution to the team over the past two years and I’m thrilled that it has decided to continue its relationship with us into the future.’
Automechanika Shanghai 2006 doubles in size
To cope with the increased demand from suppliers of automotive parts and service equipment, Automechanika Shanghai 2006 will be twice the size of it’s predecessor in 2004. Over 23,000 sqm of space in two halls has been reserved for the show, which is scheduled for 30 November ‘ 2 December 2006 at the Shanghai New International Expo Centre. Automechanika Shanghai made its debut in 2004, and already has carved a niche for itself as an important automotive industry event. National pavilions from Germany, Singapore and Turkey have already confirmed their participation in the 2006 show.
China continues along the path of economic growth and consumer affluence, and nowhere is this more evident than in the automotive sector. China is already the second largest automobile market in the world, with total vehicle sales reaching 5.92 million in 2005, up 15 per cent on 2004. It is also the third largest automobile producer, with production reaching 5.7 million units in 2005.
And as the vehicle population grows, both the central and local governments are doing all they can to make vehicle purchase more affordable and accessible, whilst also paying close attention to environmental effects of heavier road traffic.
On February 8th 2006 the municipal government of Shanghai announced that the use of vehicles whose emissions are not up to National I Standards will be limited. Vehicles running on Shanghai’s roads now have to be emission-tested and certified to make sure they meet the new standards. As of February 6th 2006, only 260,000 vehicles (40 per cent of the vehicle population in Shanghai), have received certification. Restrictions on the use of vehicles which cannot meet the requirements were effective from February 15th 2006. National III Standards of Emission will be imposed on all vehicles sold in Shanghai from 2007.
All this is good news for manufacturers and suppliers of modern automotive parts, components, maintenance and service equipment, as the demand for their products and services grows ever bigger in Shanghai, and right across the country. Because of its internationally trusted name, increasing numbers of suppliers are choosing Automechanika in China (alternating between Shanghai and Beijing) for their major promotional push into the Chinese market.
Painting check list
The following check list has been supplied by Akzo Nobel for shops that believe their painting is not performing as well as it could ‘ or maybe used to.
The questions
Why is my paint not drying’
Why do I have to wait so long between coats’
Why does the paint mark so easily after coming out of the oven’
If only I didn’t have to bake my jobs for so long in the oven’
Looking for answers
1. Have you checked your exhaust filters lately’ Clogged exhaust filters will have a negative affect on flash-off times and bake times because the air speed inside the spray booth has been decreased dramatically. Bake times will also be affected negatively because the transfer of heat from air-to-object is less effective with lower airspeed.
2. What about your pre-filters’ Some bodyshops don’t know they even exist. The function of these filters is to pre filter the air before it reaches your expensive roof / overhead filters. By doing this, the life of your expensive overhead filters is increased.
The pre filters are often hidden from view and are normally located before the inlet fan in the ductwork. Depending on the location of your workshop, these filters may last anywhere from 2 ‘ 4 months. Sadly, these filters are forgotten and thus become blocked with debris and thus slowing down the inlet air speed and volume of air.
3. What about your burner’ Is it in fact adequate to heat your oven’ Is your oven taking a long time to reach the desired bake temperature’ For example, if your booth takes longer than eight minutes to reach 65’C then you should consider having your burner checked to see whether it may have a clogged burner jet or perhaps it needs to be overhauled.
If you have a diesel fired oven, and you are seeing an orange flame through the sight glass, this is a sure sign that your burner needs attention. A poor diesel flame will be slow to heat up and will deposit a lot of carbon onto your heat exchanger and will lead to a lot of soot in your overhead filters.
4. How are your bake times’ Most standard paint systems require you to bake the finish for 30 minutes at 60’C. Let's say that your spray booth takes 10 minutes to reach 60’C. Depending on the heat transfer efficiency of your booth, your car body inside the oven will probably take another 10 minutes to achieve a panel temperature of 60’C. That’s 20 minutes before the panels on the car body even reach the desired temperature. So in reality, your paint film has only been baked for 10 minutes at 60’C out of a potential 30 minute bake.
By taking measurements of panel temperatures inside the oven during a full bake cycle, and taking note of the thermostat temperature readings during the bake cycle, we can graph the statistics and begin to get a clear
NRMA chooses choice
In a move that has been hailed by NSW repairers as being the first sign of reconciliation in their dispute with NRMA, IAG will now allow its policy holders a choice of repairer without a surcharge. Although the insurer will continue with its Care & Repair Centres, and expects to conduct most if its repair business to go through them, it is offering the alternative choice "in response to feedback from key stakeholders, including customers and smash repairers".
The change came into effect from May 1, subject to regulatory and disclosure requirements.
The change of CEO for NRMA Insurance from Rick Jackson to David Issa was an ideal opportunity to make the change to choice of repairer.
Issa said the company would always factor the wishes of customers and other stakeholders into its decision making.
‘We are a customer-focused company, and if this change addresses customer concerns around choice of repairer then it is a worthwhile endeavour,’ He added that NRMA Insurance remained committed to the Care & Repair service, and to its preferred repairer network.
‘We will continue to recommend our preferred repairer network, as it’s made up of quality repairers who continue to meet our high expectations regarding workmanship and customer service,’ he said. ‘From the customer’s perspective, Care & Repair will continue to deliver a positive customer experience, regardless of whether the customer has nominated a repairer.’
NRMA says that, historically, 96 to 97 per cent of its car insurance customers elect to use our repairer network. Customers in Sydney and Newcastle will continue to use Care & Repair Centres for assessment and claims advice. From there, they can either choose to have NRMA Insurance manage their repairs or nominate their own repairer.
Customers can choose to leave the car at the Care & Repair Centre and collect a cab voucher home, or take their car with them (if it’s safe to drive), and drop it off for repairs at a more convenient time.
Customer-nominated repairers will be requested to quote on the car based on NRMA Insurance’s assessment and their own physical inspection, and the work will be authorised. NRMA adds the over-rider "assuming the repairer has appropriate expertise, the repairs can be performed to a high standard, and the quote is fair and reasonable - as has always been the case in insurer dealings with repairers. Just what is fair and reasonable my still be a basis of disagreement, depending on NRMA's flexibility in dealing with non-preferred repairers.
Customers in regional NSW will continue to have their car directly allocated to an NRMA Insurance preferred repairer, or to the repairer of their choice.
Arrangements will be made to refund those who currently hold the choice of repairer policy option, introduced in November 2004.
Effect on Anti-steering’
One of the questions that NRMA's change to choice of repairer raises is whether it will slow down or stop the move by the NSW Parliament to legislate the anti-steering bill which is before it. James McCall, CEO of the Motor Traders Association of NSW (MTANSW) says that while the change addresses one of the 44 Staysafe Committee's recommendations, there are still 43 to go, and it is unlikely that they will all be addressed in time to stop the legislation.
SAPE to push SEM products
A visit by flying Scotsman Patrick McAvoy has signalled an increased enthusiasm in marketing by SAPE of world famous SEM automotive repair products.
The two companies have been doing business for 20 years, but because SEM was concentrating on markets other than Australia, some of its star performers did not reach our repairers. That has all changed since McAvoy's visit as SEM's international sales manager. After two weeks of training SAPE sales and technical staff as well as resellers, a raft of fresh opportunities is now being pursued by SAPE.
SEM is a US based manufacturer and distributor of a big range of body shop repair products, most of them in some sort of liquid form and most in either aerosol or other convenient dispensers.
"We're unique in that we manufacture every product we sell," McAvoy says with conviction, sounding like Billy Connolly without the gags or the expletives.
SEM has been in existence for over 50 years and now ranks in the top 10 US manufacturers of such products as adhesives, cleaners, foam, fillers, primers, plastic repairers, corrosion coatings and custom paint finishes. The company itself is owned by the employees which, McAvoy points out, encourages quality control and innovation on a scale not reached by its competitors. This is why many of its products are leaders in their field and continue to evolve as employees look for better ways to achieve repairs.
The SEM range comprises nearly 150 different products and, while not all of them will find applications in Australia, those that do are likely to dominate their field.
For example, SEM's fastest selling product is a high build primer, which immediately sets itself apart from its competitors by the weight of the can. "There's just enough solvent in there to get the pigment out of the can," McAvoy explains. "You can use it on plastic or metal ‘ and that includes aluminium. It won't shrink, and making it run is virtually impossible. It comes in five colours, set at a keen price with a realistic margin.
Another product of growing interest is SEM's multi purpose panel adhesive bonds steel, aluminium, plastic and fibreglass panels in any combination. With increasing use of OE and repair bonding the future for this product is assured.
For plastic repairs the Quick Set adhesive comes in a 20 second (opaque colour) or 50 second (black) setting time after which it is stronger than the plastic it is repairing. Mc Avoy has an impressive demonstration where a bolt is covered in oil and pushed into a setting dob of Quick Set in contact with part of a plastic bumper cover. 30 seconds later the bolt can be screwed out, leaving a virtually unbreakable thread.
Upholstery and other interior panels can be repaired with Classic Coat and Sure Coat, both part of a range of products for smart repairs.
There is a growing throughout the world in custom finishes. SEM's Colorhorizons are concentrates that can be blended with any brand of paint to produce spectacular and special effects, limited only by the imagination of the painter. They are complimented by a ragne of binders, blenders and clears, many available in aerosols to save mixing. SAPE has available Colorhorizons custom finish colour cards to prime creative combinations.
McAvoy says that regular panel shops should be aware of the possibilities of custom finishing which can provide additional business not related to repairs or insurers, but based on demand from car owners wanting something different.
Messe Frankfurt moves against copying
According to estimates, product imitation already accounts for some eight percent of world trade. As an international marketplace for creativity, innovation and performance, Messe Frankfurt has a considerable interest in ensuring that prosecutions and sanctions are imposed against brand and product pirates.
It is also for this reason that the company has a long history of offering support to exhibitors that have fallen prey to copyists.
In conjunction with several partner organisations, Messe Frankfurt has launched an extensive campaign entitled ‘Messe Frankfurt Against Copying’ which kicked off at Heimtextil 2006.
During all Messe Frankfurt trade fairs, exhibitors and visitors can find out first hand at a special campaign stand how to protect their ideas, designs and products early on as well as how to enforce these measures in the long term. Detlef Braun, managing director of Messe Frankfurt, explains: ‘We have a pioneering role in this new campaign. We feel that we have a special obligation towards protecting the trademarks and creative property of our clients.’
Great interest has been shown so far, underlining the importance of the campaign. During the first two 2006 trade fairs alone, general information about product piracy were provided more than 1100 times. There were 150 consultations, producing 26 incidences of suspected product piracy and referral to the lawyers.
Klaus Hoffmeister from the Nuremberg based Industrial Property Rights department of German Customs maintains that many holders of industrial property rights are insufficiently informed about the possibilities of working together with customs authorities: ‘This is why we are giving them the opportunity to obtain ample information at the ‘Messe Frankfurt Against Copying’ campaign stand. By joining forces with customs authorities, manufacturers have a reliable partner on their side in the battle against product piracy. Over 700 well-known holders of industrial property rights already benefit from our vast experience. With, as our statistics demonstrate, a high degree of success.’
Prof. Rido Busse, who fell victim to product pirates himself many years ago and has been chairman of the "Plagiarius" campaign ever since, warns: ‘Product and brand piracy needs to be stripped of its ‘harmless’ image and to be seen for what it really is: unscrupulous white-collar crime.
Fuel prices fallout
84 per cent of Australian consumers are impacted by fuel price rises according to
a global ACNielsen Online Consumer Opinion Survey,
The largest of its kind, the survey polled over 23,000 people in 42 countries and more than 500 Australian participants on the impact of rising fuel prices.
The results of the survey revealed that as many as four in five Australian consumers have a vehicle for which they must buy fuel. When asked whether the increases in fuel prices had affected them in any way, over half of the participants (57 per cent)claimed that they had been affected somewhat, and 27 per cent claimed to have been affected a lot.
In response to rising petrol prices, Aussie households have been compelled to adjust their driving habits, with 61 percent opting to use their vehicle less ‘ the third highest globally behind the US and Canada, and the highest in the Asia Pacific region. Over half
of Australian fuel buying consumers (57 per cent) are trying harder to combine trips, and 29 percent are cutting down on non-essential living expenses.
‘Not only does Australia have one of the highest percentages of car ownership in the world,’ says Tina Katsinikas, director, Automotive, ACNielsen Australia, ‘it’s also a country of large distances, which means that as petrol prices fluctuate, the impact on our hip pocket is much more significant than in smaller countries where average driving
distances are generally shorter, and this is evident in the survey findings.’
Less than one in five (19 per cent)of Australian consumers have opted to use public transport more in order to cope with rising petrol prices, the fourth lowest in the Asia Pacific region.
A even smaller proportion of consumers had taken more extreme measures in response to the petrol price shocks. 8 percent of fuel buying consumers are more likely to purchase a more fuel efficient vehicle, while two per cent traded in their vehicle for a motorcycle/scooter or a bicycle, and one per cent gave up their vehicle altogether.
Silver still reigns says PPG
Silver has once again ranked as the most popular vehicle colour around the globe according to PPG’s annual automotive global colour popularity analysis. However, despite increasing its share (37 per cent ‘ up twop per cent on 2004) in its the fifth consecutive year at number one, a peek into the future suggests silver will soon be challenged by exciting new colour developments.
PPG aims to support OE motor manufacturers by providing colour trend innovations that will aid new car colour direction up to four years in advance. Through the PPG Global Colour Show the company showcases over 130 new colour concepts that look ahead to the 2008/9 model years.
The annual show travels to key global locations to offer motor manufacturers the opportunity to preview a range of colour trends that are developed by PPG. Each colour is created using the latest technology, techniques, textures and special effect pigments and is inspired by a variety of influences including fashion, home interiors, product design, cosmetics and information technology.
For this year’s PPG Global Colour Show brighter aluminiums and other special effect pigments play a key role in a variety of finishes and visual textures. In particular, the PPG colour team has used them to add excitement to colours that might otherwise seem familiar at first glance. Effect pigments with high reflective and angle-dependent colour-shifting properties provide innovative styling options in the 2008 PPG range.
With the Global Colour Show and the automotive global colour popularity analysis PPG is the only manufacturer to publish both views of the colour spectrum. That’s proving invaluable for OEMs and also the refinish industry, says PPG European Colour marketing manager, Eric Chapman.
PPG offers a glimpse into some of the future vehicle colour trends:
Blue ‘ increased popularity from bolder and more dramatic shades.
Liquid-metal and smoky lilac shades on the rise in the luxury vehicle segment.
Green ‘ teal to be replaced by youthful blue-green shades. A ‘glass sparkle’ effect green for luxury car buyers and green infused with gold effects for sportier models.
Yellows and yellow/oranges with richer and warmer tones will continue to gain momentum.
We’re likely to see a dark brown with glistening textural effects and light-to-medium soft beige browns infused with shimmer effects.
Red ‘ returning to warm, dark and glowing shades. Bright impact reds will sustain their popularity.
Purple with a heavy-blue influence will capture the sports car segment.
Bright silver to remain a favourite but silvery beige, blue-greens and deeper greenish charcoal shades will emerge. White-yellow pearls with more special effects will continue in popularity.
New immobilizer is guaranteed
Power Lock is a newly developed and completely unique style of vehicle immobiliser and car alarm system, presenting panel shops with an 'add on' sales opportunity when cars com in for repair.
Power Lock patented "locking jaws" attach directly to a vehicle's starter motor and cannot be circumvented or by-passed and is impervious to "hot-wiring", the technique used by car thieves in the vast majority of stolen car cases nationwide. Even if the Power Lock system is removed or disabled the vehicle will not start.
The system is so secure it is backed by an unconditional anti-theft guarantee, the only guarantee of its type in the industry.
The unit also provides additional layers of security and all of the features you'd find in a standard car alarm. The unit offers a secondary immobilisation point for disabling the fuel pump or ignition circuitry and is also able to monitor the ignition for any signs of tampering. To protect the car itself the unit offers door, bonnet and boot protection and will sound a horn or optional siren and flash the vehicles lights to warn off potential intruders.
Power Lock also has a number of convenience features such as "hands free" operation. Working via proximity the system automatically arms as you walk away from your car and disarms when you return - no extra keys, buttons to push or codes to remember. Other convenience features include valet parking mode, remote engine start, automatic arming and audible/visual system status indication.
The system comes with a detailed colour installation manual and includes several plug-in adapters to make it easily compatible with most makes of vehicles. An instructional installation DVD can be supplied with the unit for the competent home mechanic, but it is recommended to have the system installed by a certified auto electrician or alarm installer. The unit can be installed in a number of configurations, the system control module can be mounted in plain view on the dashboard to ward-off attackers or it can be to be mounted completely out of sight leaving your classic or modified vehicle appearing stock.
The Power Lock unit is of a very high quality construction, designed and developed in the U.S. It uses solid-state electronic circuitry in a sealed system control unit. The system features 64 bit digitally encrypted Coded Keys which are mathematically impossible to duplicate and contains no batteries to replace or moving mechanical parts making it completely weatherproof and shock proof.
The unit is Australian standards certified and also holds the internationally renowned Thatcham approval. All models carry a life-time manufacture's warranty and an Australia wide, 24 hour Support and Sales hot line is provided.
Enquiries, Tel: 1300 880 656
Top night, top end.
Australian Warehouse Distributors (AWD) in cooperation with Palmerston Paint Supplies held a product information night at the Vehicle Body & Paint Trades Department of the Charles Darwin University in Darwin during March.
Over 40 paint and body personnel from Darwin shops attended the evening and apart from Farecla and Fusor brand products, AWD demonstrated several new products including the Astro brand DS1000 Door Skinning Tool.
Jim Dimopoulos from AWD reported that the evening was a resounding success, further confirming AWD’s commitment of industry education for qualified refinish professionals as well as apprentice training.
AWD also expressed its special thanks to Grant Mauger, coordinator of Vehicle Body and Paint Trades for providing the venue and AWD’s NT distributor Trefor Cunnah from Palmerston Paint Supplies for his sponsorship on the night.
Smashing start to the year for new Jumpstarters
Eighty new NRMA Insurance Jumpstart Autobody Scholarship holders have begun their pre-apprenticeship course at TAFE colleges across Australia, as the smash repair industry gears up for an influx of new talent.
The 18 week pre-apprenticeship course will introduce NRMA Insurance Jumpstart participants to panel beating and vehicle spray painting as well as providing additional skills in customer service, record keeping and computers.
In addition to the NRMA Insurance Jumpstart Autobody Scholarship holders, 70 NRMA Insurance Jumpstart traineeships have been allocated in 2006, providing high-school students with the opportunity for paid on-the-job experience and TAFE studies.
‘It is encouraging to see the numbers in the NRMA Insurance Jumpstart program have grown significantly in 2006,’ says Paul Hardie, industry and community support manager.
‘The scholarship program creates a pool of enthusiastic, skilled and committed male and female apprentices. We recognise that most of our smash repair partners are small business operators, who don’t always have the resources to dedicate a lot of time to recruitment. The program allows them to draw on this pool."
The new participants come from across Australia including NSW, the ACT, Queensland, Victoria, Tasmania, South Australia and Western Australia.
To become involved in the NRMA Insurance Jumpstart program, contact 1800 008 607 or visit www.jumpstartyourcareer.com.au