Sept - Oct 2007: News

News

Smash repairers go public
Allomak limited, a publicly listed company dealing in auto parts wholesaling, is expanding its range of businesses to include smash repairs. The acquisition of leading Melbourne smash repairer, Mr Gloss, has laid the foundation of what is intended to become a major force in smash repairs on the east coast of Australia. Apart from financial interests held by some insurers in a few smash repairers, the move represents the first instance of an Australian public company forming an autobody repair division.
Spearheading the new Allomak panel business is Ray Malone, who has exchanged his interests in Mr Gloss, for a substantial stake in the public company. He will now set about looking for repair businesses which suit the Allomak criteria. Ideally they will be based on the Mr Gloss model of medium to large size, successful, and have the ability to deliver quality work efficiently. Their owners will want to become stakeholders in Allomak and reap the benefits arising from consultation and buying power.
There is also room for proprietors of strongly positioned shops who simply want to retire and sell their businesses. Malone says he will look at various ways of growing the division, with the over-riding outcome of transparency and ethical business practices.
While Malone says there is no rush to build the repairer group ? he wants to be selective in the shops that join it ? the public company structure gives access to funding to take opportunities as they arise.
Malone sees the future in terms of a highly efficient repair group, able to handle virtually any class of car and being part of insurers' preferred networks of repairers.
"Insurers themselves can take a stake in the company," Malone says, illustrating his interest in fostering cooperation rather than conflict.
No doubt Allomak was attracted to Mr Gloss not only for its appearance of prosperity but for the largely unconventional management practices of Ray Malone that produce that prosperity. He epitomises the principle of working on the business rather than in it, and analysing the repair process from a myriad of angles and then relating it to how insurers operate.
Mr Gloss has built its business on repeat customers. They now number more than 60,000, accumulated over 25 years.
Malone's business style will, no doubt, be followed as the group grows, but he is adamant that there is great value in the wisdom of the incoming shops and that he will encourage discussion among their managers.

VQS changes hands
Vehicle Quoting Systems (VQS) has been sold by Kellran Technology to brothers Devan and Jude Antonito. The new company is known as Vehicle Quoting Systems Pty Ltd.
Tony Franco's Kellran bought the system from Lumley Insurance some three years ago and set about developing its customer base, technology and brand profile. Prior to the buy-out, Jude Antonito worked for Kellran on VQS for 18 months. Both he and his brother have experience in computer programming and insurance. They plan to expand the system's service and have already increased the numbers in the support team.
New VQS telephone numbers are (02) 8004 9522 or 8004 9488

Lowbake shows Symach
Following its release with a static display at the AAAA Melbourne trade fair, the Symach paint curing process was demonstrated live in Melbourne mid August.
Lowbake, which has tied up marketing rights for the Italian sourced system, had various models of Symach working at its Dandenong plant where it manufacturers spray booths, prep bays and mixing rooms.
Although the process is still undergoing Australian certification to ensure that the equipment complies with Australian electrical and gas supply regulations, Lowbake is confident that it will comence delivering the Drytron hand held version in November of this year and the Flydry, Easydry and Robodry larger models early in 2008.
The Symach process promises to dramatically cut down drying/curing times on paint and energy useage by a staggering 80 per cent.
Although prices had not been finalised at the time of the demonstration, Lowbake indicated that the Flydry will be slightly more than an equivalent infrared rail systems and the Easydry arch would be much cheaper than a tyThe machines are especially effective in prep bays as long as they are compliant with regulations. Integration is then very easy.
Symach curing is seen as a replacement for infrared and ultraviolet curing, not only because of speed but because of a much lower energy useage.
At the operational level each curing robot is pre-programmed with the required formulas of the fillers, primers, base coats and clear coats that the paint shop is using. These programs are being developed for local conditions and are easily updated when required.

Quoting without time
Melbourne consultancy, Accident Solutions, is encouraging its clients to adopt a new method of quoting. It involves showing all the items that go into a traditional quote along with dollar costs for each. But the repairer's time for each process where there is labour involved, does not appear. This gives a bottom line total for the repair but not the opportunity for an assessor to mark down individual times either for R&R or panel repairs. In addition, the system suggests that quotation and storage fees are added ? especially if the job is taken out of the shop.
One repairer who has embraced the system says that, while he has had some confrontations with insurance assessors, his quotes have been allowed. This is largely because the assessors in question have been challenged by the repairer to show why a particular charge is incorrect. This puts the onus back on the assessor who must estimate the time and then apply a rate to it if he wants to dispute the charge. Since none so far seem to want to go into that territory they have accepted the charges.
Where a repairer wants to give a little back to the assessors, that can be achieved by negotiating or removing the quote fee or the storage fee.
The same repairer is prepared for future challenges to his quotes, even as far as the law courts. He has his defences and evidence ready. In the meantime he admits it takes courage to stand up to insurers and charge 'the right price' but once in the habit of doing quotes that way, it becomes manageable.
Needless to say, quoting by this method does not win preferred or network status from insurers. The new quoting method is resulting in the shop heading in the direction of third party and freedom of choice work.

Write-off laws are flawed
Responding to recent media attention regarding written-off motor vehicles going back on the road, Melbourne repairer Gerry Raleigh believes the law needs tightening Ð and probably changing.
?I and many others involved in the industry, both repairers and independent assessors believe the current system in place must be changed in order to prevent the unsuspecting consumer being stuck with lemons that are not only a bad buy but also dangerous,? Raleigh says.
"I know the respective state governments are becoming frustrated with the number of complaints regarding this issue and the unwanted attention it brings. Some systems seem to work better than others.
Raleigh believes the first step is to take the decision making process away from the insurer (which has a vested interest in which category the write-off is placed) thus removing the economics from the process.
?If a vehicle is to be written-off it should never hit the bitumen again, save for a trip to the dismantlers? Raleigh says.
"This would stop the grey areas between statutory and economic write-offs where all of the problems seem to emanate.
"I have personally seen vehicles written off and leave my shop to be auctioned as an economic write-off when I know they have easily exceeded the number of structural points of serious damage required to put them in the statutory category. I have had discussions with quite a few repairers and assessors and they are of the same opinion."
Raleigh believes that if a vehicle is to be written off there should be no opportunity for confusion, no opportunity for interference because of which category brings the highest dollar at an auction. The opportunity for a back yard operator to Many motorists have their car written off simply because it will bring a better price to the insurer at auction compared to the cost of having it repaired.
"We in the industry have all had clients complaining that they have just lost their car because the salvage price at an auction was more viable for the insurer than repair, and in many cases with vehicles that are five years old etc, the client has invested in mechanical repairs, new tyres and accessories which are not recoverable."
Raleigh says that a write-off system with a single category would also increase the amount of work for qualified repairers.
"I have two perfect examples in my shop at the moment and the records to prove that the system has failed the unsuspecting owner. In both cases the dollar was placed before the safety and integrity of the vehicle."
Raleigh believes the current system is too easily manipulated and the fact that no penalties apply make it easy for insurers to do as they wish.

Repairer sent to jail
A smash repairer has been jailed as a result of continuing to trade when unlicensed. He was found to be in contempt of a court order banning him from operating.
The NSW Supreme Court sentenced David Clive Jenness to six
months periodic detention. Jenness had been running an illegal operation at Kirrawee in Sydney?s south.
?Mr Jenness has a history of operating without a licence and despite being fined twice since 2003 and ordered to stop trading he simply had no regard for the law and is now paying a heavy price,? NSW Fair Trading Minister, Linda Burney, said.
?It is unacceptable that unlicensed traders are continuing to put consumers at risk and I am committed to the Office of Fair Trading pursuing and prosecuting these ?backyard? operators.
?The law requires motor vehicle repairers to be licensed and their tradespeople to be certificated so that consumers can be confident they have the qualifications, skills and experience to undertake the
work.
?Unlicensed, uncertificated repairers meet no minimum standards and pose a very real risk to the consumers whose cars they repair as well as other road users.
?Consumer protection in the motor vehicle industry is a high priority for Fair Trading and the gaol term imposed on Mr Jenness should serve as a warning to other backyard repairers that unlicensed operations will not be tolerated.?
The court's action was part of a crackdown on unlicensed motor vehicle repairers and comes on top of nine convictions handed out to other individuals and businesses this year for operating as a motor vehicle repairer without a licence.

BOSS and Auto Quote sign deal
BOSS Australia and BOSS IT have signed a deal with Terry Flanagan of Auto Quote to become the only approved interface with the Auto Quote estimating program.
Gavin McGahey (BOSS IT) has been working extensively with Mark Brady of Brady?s Body Works in Brisbane and the technical teams of Auto Quote to complete the program.
This means that all BOSS software that its clients have been using separately to their estimating system can now be managed all in one program with a very simple export. This new program is called Future BOSS
The program has been extensively tested in several sites over the past several months and is now ready for market.
Alan Shotton (BOSS Australia) says "It is our goal to expand on the BOSS program to help our client not only streamline their production process but also the administration process of their businesses by utilising the interface with their estimating system and their BOSS technology."

Change of guard at Rabor
After 27 years of owning and running Rabor Smash Repairs in Perth, John Borich has sold the business to former senior assessor, Don MacGregor.
The deal was one done at the beginning of July when MacGregor assumed control of the sprawling shop which employs 16 staff, making it one of Perth's mainstay repairers.
MacGregor says he will continue the business more or less as it is for the time being, but believes he can see room for improvement in the future.
The shop is well equipped with a Lowbake and Zodiac ovens, Weilander + Schill welders and Auto Robot alignment. Rabor has been a long term supporter of locally made Protec paint.
With plenty of work available in Perth, MacGregor believes this is an excellent time to get into his own repair business. He has had 35 years experience as an assessor with FAI and Zurich, and three years working with a smash repairer.
Borich has no immediate plans except to take his first extended holiday since he went into business, and then to continue his interest motor racing and mechanics.

Explosion warning device
Forget the canary falling off its perch; panel shops need more warning when there is a build up of explosive gases before they reach flash point.
An Adelaide bodyshop supplier, SBSA Integral, has come up with a monitor system which continually tests the atmosphere in bodyshops ? especially paint areas.
To date, there is no OH&S requirement for this type of testing, but that wouldn't save an employer from litigation if there was an accident Ð especially if there was a device available but not fitted.
The use of certain spray paint systems and equipment has increased the potential for explosions and asphyxiation. The problems with spray painting are both internal Ð affecting workers Ð and external with environmental protection. The three most common life-threatening gases are Xylene, Toluene and Carbon Monoxide.
To overcome the internal problem, SBSA places detectors with a viewing window that is active at all times and wired so that they cannot be bypassed. In the event of a low level gas buildup visual and audible alarms are activated both internally and externally. If the buildup is high level, relays can be used to activate exhaust systems or shut down machinery or start up safety equipment.
A remote office computer can also be set up to monitor the total system and can be fitted with alert management of a problem.
SBSA suggests that the system should be checked every three months to ensure that all detectors are functioning properly.

Murdaca gets a serve
Dear Sir,
I respond, albeit anonymously, to your article in the paint & Panel July/August issue on "Murdaca's dream takes shape"
I have been involved in the collision repair industry for 30 years and I have no doubt that over that time there have been cars repaired incorrectly, either through poor workmanship or poor training. I would also add, however, that I challenge the statement made that 90 per cent remain defective.
Perhaps Mr Murdaca feels he can provide a genuine service to the public when needed and best wishes to hom in his venture. My greatest concern is that in his endeavours to provide that service he makes "political" statements which denigrate our industry, in effect, to enhance the need for his services. This is totally unfair and every much unwarranted as most professional organisations including associations such as VACC and MTA etc, insurance companies and organisations such as Thatcham have regularly promoted our industry as very conscientious. If 90 per cent of all cars remain defective does that not mean we are all sharks, cooks, butchers? I do not think so and I resent these implications on both the article and the website, which is very alarmist.
To Mr Murdaca, I have gone about my business professionally investing in measuring and jigging equipment over the years to ensure our repairs are accurate. I have not slandered my opposition, but endeavoured to assist them if needed. I would like you to go quietly about your business, offering your service honestly and fairly. I would, however, hazard a guess that the only way your business could be successful was if you did create an anxiety in the general public. Create this anxiety in a truthful manner by highlighting genuinely faulty repairs. Bring them to the attention of the owner and the insurer and even go as far as advising the relevant repairer what went wrong. Also, while making your checks, acknowledge the correct and accurate repairs, advise the customer, the insurer and the repairer of a job well done.
Mr Murdaca, if you want to play the checking game, play it fair and open. You may find that 90 per cent of terrific repairers in our industry who do a good job will support you.

Name and company not supplied.

Australia missing out
Australian motorists are being deprived of world-leading vehicle safety technology through the decision of some manufacturers to withhold safety equipment on some imported vehicles.
Australia?s peak motoring organisation - the Australian Automobile Association - has called on manufacturers to ensure vital safety technologies such as electronic stability control (ESC) and side curtain airbags are fitted in the interests of motorists and their families.
AAA executive director Mike Harris says the vital safety features, which were standard in vehicles manufactured and sold overseas, were sometimes not included in the same imported models on sale in Australia.
Harris said the practice of not fitting safety features from the imported vehicles was known as de-specification, or 'de-specing'.
?Australian motorists are missing out on these vital life-saving technologies which are available in the same models overseas - and that?s not good enough,? Harris said.
?While some manufacturers do include these life-saving technologies, we look forward to seeing these included as standard safety features on all models.?
Research conducted in Europe, Japan and the US all show significant reductions in crashes for passenger cars and 4WDs fitted with ESC - up to 50 per cent in rollover crashes in the US. The Australasian New Car Assessment Program Ð the vehicle crash testing and star rating program of which AAA is a member Ð estimates side curtain airbags can reduce fatalities by more than 10 per cent.
Harris went on to say the challenge for the industry is to import cars with these important safety features, and the Federal Government should monitor vehicles coming into Australia to ensure they are not de-speced.
?Further, both federal and state governments should use their considerable market advantage as major fleet buyers to purchase cars fitted with ESC and curtain airbags,? he added.

Farecla assists ACE
Australian Warehouse Distributors (AWD) in conjunction with its business partner, Farecla Products Ltd has presented the Automotive Centre of Excellence (ACE) with a Farecla ?Your Choice? mobile, fully stocked teaching aid. The presentation coincided with a recent visit to Australia by Farecla?s export sales manager, David Ryall and technical manager, Paul Fletcher.
Recognised as one of the industry?s leading training institutions, ACE is at the forefront in providing industry technical support and training. The Farecla ?Your Choice? teaching aid is a perfect fit for ACE as it provides a step by step approach in the correct method of achieving the fastest way to the finest finish.
Jim Dimopoulos, AWD general manager, said his company appreciated the opportunity to supply this innovative teaching aid which was designed with the input of Livio Tomas, ACE programme co-ordinator autobody and allied trades. According to Dimopoulos, this teaching aid will be offered to all major industry based TAFE colleges throughout Australia as part of AWD?s six figure allocated budget for TAFE support 07-08.
Both AWD and Farecla believe that continued support of TAFE education throughout Australia is necessary to ensure the
industry?s long term future.

Driving a car at 100mph is a risky business at any time but in this? It is a 1916 Buick racer owned and restored by Adelaide booth and prep guru, John Milton. It has a very powerful six cylinder engine, a straight through howling exhaust and no front brakes. Milton says he has driven it at more than 100 mph.
Here he is Note the exceptional safety gear: crash helmet that imitates grey human hair, air instead of air bags, and an ejector seat that fires the driver into the scrub or water in the event of a collision Ð or even a severe bump.

Kloster has 53 apprentices
Neville Day, Training Coordinator for Kloster Ford is proud of the facilities provided for their automotive apprentices and the opportunities the Kloster Group provides across all their departments, their twelve brands of vehicles and dealerships. Their 10 franchises make Kloster a major employer in the Hunter and central coast region.
?We have around 53 apprentices across the group at the moment,? says Day. ?It is management philosophy that these apprentices are the future of our business and it?s our job to channel and support them.
If a young person were to choose the perfect place to learn the automotive industry, Kloster would come very close. Add the proximity to excellent beaches along the Newcastle coast and you have the makings of an idyllic lifestyle, not just an exciting career.
?We think that pre apprenticeships are the best way to find out if a person wants the automotive industry as their career. There?s more to it than just loving cars.
?We believe you get back what you put into training so the next step is to be closely involved with our trainees and apprentices. We do most of the training at our own facility here, delivering the Ford Apprentice Program (Light Auto Certificate III) but also work closely with TAFE and MEGT, our Australian Apprenticeships Centre.
The Klosters training facility has been operating since 1996 and has put through more than 100 apprentices and trainees. Today, the ten dealerships employ 482 staff, many of whom started under Neville Day?s tuition.

Toyota chooses Akzo Nobel waterborne
After extensive testing, Akzo Nobel has received confirmation from Toyota Motor Corporation Japan of the waterborne repair products meeting their specification.
With the ever increasing demands of customers for an environmentally acceptable vehicle refinishing solutions, Akzo Nobel has been working with Toyota in the testing of its waterborne repair products. Sikkens Autowave basecoat and the unique waterborne Sikkens Autoclear WB have been subjected to extensive testing according to the Toyota repair standard and the products have met the specification.
With the rapid spread of environmental regulations across North America, and the industry agreements on VOC reduction in Japan and Korea, Akzo Nobel says it is very timely to receive the information on the technical testing of these key products. ?Although we have over 7000 satisfied customers in Europe using Sikkens Autowave basecoat, the additional reference from Toyota is excellent for our roll out across the US and Canada,? says Akzo Nobel Car Refinishes North American commercial services manager, Tim Loden Ð who used to manage the brand in Australia.

WPS Signs Grant Denyer
Akzo Nobel Car Refinishes, which has been involved with the WPS/WOW Racing team for the last four years as a sponsor, has announced that high profile personality Grant Denyer has been signed for the Bathurst and Sandown Enduro Events of 2007.
Denyer will complete the Gold Coast ? based team?s endurance line-up, joining Michael Caruso and the regular drivers Max Wilson and Jason Bargwanna.
Denyer is best known for his thriving television career with the Seven Network, having served as weatherman for hit breakfast program Sunrise and daredevil host of Guinness World Records, champion of Dancing with the Stars and currently host of ratings successes Australia?s Got Talent and It Takes Two.
Denyer scored a top 10 finish when paired with Alex Davison in his Bathurst debut last year, finishing ninth to back up a strong 14th place finish at the Sandown 500 one month earlier. Denyer was ninth in last year?s Fujitisu V8 Supercar Series standings.
Craig Gore, WPS/WOW Racing Team owner said: ?Grant Denyer completes a very good line up for WPS/WOW Racing in this year?s endurance events. While the final pairing combinations are yet to be decided, I think that with Grant coming on board we really have a chance of getting both our cars right up there at Sandown and Bathurst this year.
Stephen Read, Akzo Nobel marketing and operations manager said: ?WPS/WOW Racing continues to grow strongly, and the latest signing of Grant Denyer for the Enduro rounds is great news for the team. We are very pleased to be part of such a dynamic organisation, and look forward to a strong performance in the upcoming rounds.?

GnG Sales launches TSS
GnG Sales has launched the TSS (Technical Support Specialists), a fully equipped hands-on mobile, technical and sales support vans able to promote the complete GnG portfolio of products and brands.
Three Fiat Ducato Vans have been specially designed and refitted for this purpose and began working in the key markets of New South Wales, Victoria and Queensland in July.
The vans showcase a complete range of GnG products. Their function is to introduce and educate end-users and resellers to specific products or categories of products in their own working location. The TSS will also be available for assistance at trade nights or at reseller?s locations in conjunction with of GnG customers.
Personnel operating the services have extensive trade experience combined with detailed training on the practical applications of all GnG products. This depth of knowledge ensures they provide relevant high quality demonstrations, technical support, and recommendations in line with each business?s requirements.
?The launch of the GnG TSS concept is a significant step forward for us in the delivery of customer service and support," says sales director Greg Davie. "It ensures that GnG remains ahead of the curve and continues to lead the industry in innovative, progressive processes that assist our customers in driving sales and profits in this highly competitive market. ?We understand the pressure that many of our distributors face in promoting their extensive range of products and we believe that in order to be successful we need to partner with our distributors to help them bridge the knowledge gap.
?This has been a long project for us and we are very excited to get it into the market and introduce our distributors to the concept.?
GnG Sales supplies the Australian market with trade quality products including air tools, power tools, spray equipment, tool accessories, premium car care products, abrasives and consumables. Brands include Workquip, Star New Century, Star, Tranmax, Autoglym, Mako Abrasives and Rupes.

Lord hits 50 million
Lord Corporation has announced a 25th anniversary milestone for the use of its metal adhesives for vehicle assembly. More than 50 million vehicles have been built using structural metal bonding as a result of Lord Corporation?s adhesive technology.
According to Scott Miller, Lord global marketing manager, the first commercial vehicle application using Lord Corporation?s metal bonding technology was in 1982 for heavy-duty truck doors, followed in 1987 by doors on a Ford 9000 series truck. Metal bonding eliminated all hem welds and resolved dimensional stability issues during shipment of the doors to the assembly plant. Ford later presented Lord with an innovative technology award for this application. Since that time, millions of vehicles have incorporated structural bonds using LORD Corporation?s adhesives.
Today metal bonding applications include doors, hoods, boot lids, guards, turrets, end gates, tail gates, A-pillars, C-pillars, fuel cap covers, identification tags on transmissions and reinforcement patches for safety restraints. Lord provides metal bonding solutions to a wide range of tier suppliers. The major manufacturers using Lord weld bonding technology include GM, DCX, Ford, BMW, Mitsubishi, Mercedes Benz and Nissan.
Jim Perritt, global marketing manager and North America sales manager for Lord Fusor automotive repair adhesives, said success with metal bonding on original equipment propelled Lord to develop aftermarket solutions. Lord launched such products to the automotive aftermarket in the mid 1990s.
With headquarters in Cary, N.C., USA, and sales in excess of USD630 million, LORD Corporation is a privately owned company that designs, manufactures and markets devices and systems to manage mechanical motion and control noise and vibration; formulates, produces and sells general purpose and speciality adhesives and coatings; and develops products and systems utilizing magnetically responsive technologies. With manufacturing in nine countries and offices in more than 15 major business centres, LORD Corporation employs more than 2,400 people worldwide.

Indian utility vehicle launched
TMI Pacific, an arm of Sydney?s Tynan Motor Group, has announced the launch of a utility vehicle from the Indian auto giant Mahindra & Mahindra (M&M).
The Pik-Up from Mahindra signals what the company claims is a rugged and value for money vehicle. It is powered by a 2.5l common rail turbo diesel engine which meets Euro 4 emission standards. The vehicle produces 79kW of power and 247Nm of torque, and is available now.
The chairman of TMI Pacific and the Tynan Motor Group of companies, Michael Tynan, says: ?We have been in the auto business for more than 40 years and have built a name in the market based on integrity and trust. I?m so pleased with this new initiative, which has me just as excited as I was starting this company so long ago. Our business partner M&M is a perfect fit as it?s family owned with similar values that has stood the test of time for more than 60 years in its home market."
New NSW dealers announced since the launch include Lieschke Motors in Holbrook and Walla Walla, and Alan May Automotive in Ulladulla and Moruya. Others, mostly throughout rural NSW, include Heyer Motors in Dubbo, Bill Lilley Mitsubishi in Queanbeyan and ACT, Clinton Motor Group in Campbelltown, Pembers in Woonona, Tynan Motors in Sylvania, Robert Handsaker Motors in Narromine, Cross-Country Motors in Merriwa and Musswellbrook, Keith Gill Motors in Griffith, Nowra Truck and Tractor in Nowra, Bega and Mittagong and ELN Motors in Wyong. Mahindra vehicles arrived in the country during the launch period and were recently delivered to dealers who have begun to sell the product.
TMI Pacific, which will operate from a newly acquired 15,000m2 head office in Sutherland, will be dedicated to servicing the Australian market with all after-market services, spare parts distribution and technical training of specialists.
"Our thorough market testing in tough and rugged conditions has ensured that the vehicle will deliver on the expectations of the Australian driv