Sept - Oct 05: News

News

BD manager for Vision PLUS
BASF Coatings Australia Pty Ltd has appointed Trevor Scott as business development manager, Vision PLUS.
The Vision PLUS program (launched in Australia in 2003) is assisting bodyshops to reach maximum potential by identifying problem areas within the business by focusing on key business areas such as financial, sales, and paint and panel shop analysis.
?My immediate plans for Vision PLUS is to re-commence contact and support for those currently using the program,? says Scott, whose background in the repair industry spans twenty years. He started as an apprentice panel beater, moving up the ranks to become a workshop foreman and panel shop manager. He was then approached by a leading insurance company and offered the role of assessor. He stayed there for over ten years in various roles.
What drew Scott to the position of business development manager for Vision PLUS was for the opportunity for him to further develop his already expansive knowledge and also to challenge himself by promoting a great business tool.
?I believe the difference between Vision PLUS and its competitors is best summed up in two points," he says. "Firstly, the ability to be able to input and review results on-line and secondly, you can review your results and compare them to other Vision PLUS users around Australia and New Zealand.
?The average quality of shops using Glasurit is much higher than the average of our competitors average, therefore Vision PLUS members will be benchmarking themselves at a higher level than the industry average."

Sikkens honours in Alice Springs
Sikkens distributors from across Australia met in Alice Springs recently for a three day national distributors conference.
Peter Sadler, general manager of Akzo Nobel Car Refinishes opened the conference with an informative presentation highlighting the company?s growth since 1999 and its future direction. The distributors were also given an update on current projects including new products and marketing initiatives. Paul Wake presented an update on the Acoat program which continues to attract new members.
The second day was dedicated to the Akzo Nobel distributor development program with Gregg Bach presenting some useful information for distributors to use in the development of their businesses. In the afternoon, Bach held a discussion about key performance indicators that the distributors would like to monitor.
At the official dinner on Saturday evening, Barry Edney, national sales and marketing manager, presented the 2004/2005 distributor of the year award to John and Sandra Potter of Southern Smash Supplies. This is the third year in succession that Southern Smash Supplies has received this award.
Wayne & Vera Taskis from Border Crash Supplies in Wodonga were presented with an outstanding achievement award to recognize the significant sales growth of Sikkens and Lesonal products in the last financial year.

From broken lock to write-off
This Mercedes Bens two door coupe looks okay but it has been written off by an insurance company in a saga that ran for over a year.
The owner of this ageing but well maintained Merc came back to get it his car after it had been parked in the street and found that somebody had tried to break into it. The door lock has been wrecked but it looked as though who ever had done it didn't get into the car.
The trouble was, the owner couldn't get into the car either, so he called his insurer who sent a tow truck to The owner later filled in a claim form for damage from attempted theft and handed over $450 excess to have it fixed.
A short time later the repairer called to say the car was ready. When the owner arrived to get his car he found it was not drivable. The muffler had been scraped off by the towie and the car was locked in a permanent right turn.
When he pointed this out to the insurer he was asked to make a second claim, and pay across another $450. then the car was fitted with a non-genuine muffler which made it sound like a Holden instead of a Mercedes, and the steering control arms had been heated in an attempt to straighten them. When the owner got the car back 'finished' a second time, one wheel cleared the guard but the other one didn't (see The owner didn't accept the cheque or the deal, but instead got in touch with Tony Murdaca whose company, Independent Vehicle Inspection Services (IVIS), inspects and measures cars which have been 'repaired' but whose owners are not satisfied with the work and feel they can go no further with their insurer or repairer. Murdaca says this case is an example of why he founded the company. The measurements on the Mercedes were carried out at IVIS's second inspection centre ? in Essendon. Murdaca found the car to be seriously unroadworthy. He and the owner gave the story to a current affairs TV program, which snapped it up. But on the night it was due to go to air it was suddenly pulled for the 'off the record' reason that the insurer was too valuable to the network's advertising revenue to risk upsetting.
Murdaca wants all used cars throughout Australia to have a roadworthy certificate, not only relating to tyres, brakes and steering, but to body condition and alignment. He is giving used car yards special rates to test the cars on this lots for roadworthiness and, if they pass, IVIS will issue a certificate to that effect.

MTA becomes an insurer
The Motor Traders' Association of NSW (MTA) has thrown down the gauntlet to IAG by opening its own motor insurance agency underwritten by Suncorp Metway - whose main brand is GIO.
At a launch held in Sydney in July, the MTA Insurance agency was announced as a joint venture between the MTA of NSW and 5 Star Underwriting Agency, an experienced motor trades insurance provider. The MTA Insurance Agency is headed up by Martin McAvenna.
Previously, the MTA recommended the services of CGU (an IAG brand) to its members. But in an about-face, the MTA has slammed the motor insurance practices and plans of IAG, saying that it has embarked upon a path that, if successful, "will decimate the motor industry and leave the motoring public with a smash repair system that produces shoddy and unsafe work" according to MTA NSW chief executive, James McCall.
The launch was timed to coincide with a media barrage by NSW smash repairers who are against NRMA's online tendering system which came into effect on the same day. Press, radio and television all carried stories about the anticipated ill-effects of IAG's preferred repairers (PSRs) having to quote repair prices from a series of images and a scope of works published on the internet. Tears were shed by repairers who said they were already on the poverty line with the NRMA PSR allocation system and that WRM would force repair prices down even further, facing them with the alternative of cutting corners or going out of business. If they cut corners poor quality work or unsafe vehicles would result.
The MTA has been flirting with its own insurance agency for some time. For 20 years it was the broker for the Victorian Automobile Chamber of Commerce (VACC) insurance, but sold its book to Fortis. For the last three years it has been examining ways and means to get back into insurance. One main reason was to offer its flagging membership additional benefits, but when NRMA announced online tendering the MTA saw this as a chance to lead its smash repairer members into battle on several fronts ? one being insurance.
The MTA Insurance Agency is working within the MTA to offer its members competitive commercial insurance on such items as buildings, plant and machinery, public liability, burglary, loss of profit, faulty workmanship, driving risk and pink slip liability.
The agency is also making personal insurance available to MTA members to cover house and contents, private cars, equipment loss, and building loss or damage.
Martin McAvenna says that the agency will put packages together to suit each client ? especially as the MTA covers motor related business beyond smash repairers. There are 27 different types of MTA membership.
McAvenna said that initial enquiries had been most encouraging. They had been driven from different sources. There was a disenchantment with IAG services and attitude along with a desire of MTA members to get behind the organisation at a time when it had a fight on its hands. In addition, the packages that MTA Insurance agency were offering was commercially competitive. They were in line with Suncorp premiums.
The new agency brings with it a big insurance broker data base and expects much of its business to come from that sector. Repairers can deal direct with the agency ? but the premiums will be the same as those offered by the brokers.
Although the agency has its base in NSW, it is happy to accept business from anywhere in Australia.

CAR INSURANCE
At the launch of the MTA Insurance Agency, James McCall said that the longer term plan is to offer car insurance to the general public ? in direct competition with NRMA. Since NRMA has well in excess of 50 per cent of the motor insurance in NSW, this would mean taking on a giant rival. McCall said that MTA would be aiming at offering general motor insurance within 12 months.
During his press conference McCall alluded to giving the public a better deal in repair quality and safety by avoiding the use of aftermarket or second hand parts, both of which he said were used by NRMA. He quoted a recent article by US commentator, Bob Collins, who claims that in the US more than 70 per cent of repaired vehicles had incomplete or shoddy work, almost 50 per cent had safety issues, and more than 40 per cent showed signs of fraud.
"We believe the same thing will happen ? and is happening - in NSW as a result of as a system put in place by IAG," he said. "Particularly the system they seek to establish through their latest contract offering to the body repair sector of the motor industry. This includes the web based tendering system or WRM."
There is also little doubt that MTA's venture into public motor insurance would, in reality, be another brand of Suncorp Metway. Suncorp/GIO, and Allianz are the two most popular insurers among repairers. There would appear to be little opposition among repairers for MTA to adopt the GIO way of managing repairs.
From Suncorp's point of view, this will give another string to its bow in NSW, Australia's biggest motor insurance market ? but where it has a lower market share than in other states. Suncorp executive, Diana Eilert, said that partnering MTA in the new agency would provide more consumer choice. She expected that MTA members, only some of whom currently insured with GIO, would support the MTA Agency.

Acoat group meets
Earlier this year the Acoat selected bodyshop owners met at Sanctuary Cove Queensland for their regional performance group meeting.
The first day was spent doing bodyshop visits with Noel Wagner at Southern Cross Ford and Tony Berends at Wippells Auto in Toowoomba. The group then returned to Brisbane to visit Ray Iversen at Highland Smash Repairs. After visiting these three shops the group then went to NRMA IAG located in Salisbury to be shown the full process and systems of WRM in Queensland.
Time was also spent in the class room for the Acoat selected members where a review session was held on the Sikkens e-benchmarking data collected for the previous six months. Improvement strategies were set with each Acoat selected member for the next six months to enable change within their shops.
Also covered during the meeting were estimating processes and forgettables, along with the Acoat idea session where every member had to bring along an idea to share with the group.
The meeting concluded with a formal dinner and drinks to catch up on industry changes and trends.
National services manager of Sikkens Car Refinishes, Paul Wake, thanked everyone who attended, especially the repairers who opened their shops for inpsection.
Of course at every Acoat selected regional performance group meeting there were social activities and a round of golf.
Based on the combined information from the business development plans and e-benchmarking of all Acoat repairers, regular group training sessions such as these are organised on to
Allianz backs the COP
Allianz Insurance has announced its intention to commence a pilot project in September with The National Parts Code Inc was established in 2004 with major support from the National Motor Vehicle Theft Reduction Council to reduce the number of stolen motor vehicle parts, estimated to be in excess of $300 million in value distributed illegally throughout Australia each year.
?Allianz is proud to be the first insurer to support the recycling
industry on the issue of the sale of statutory write-offs,? said Keith Dean, Allianz national motor assessing manager. ?Online auctions are another step towards ensuring that the parts are only sold through legitimate recyclers. At the same time they will also offer a new level of convenience to recyclers, particularly those in rural areas.
?Allianz was one of the instigators of the National Parts Code and will continue to support initiatives that strengthen the position of participating recyclers and ensure the best result for the end customer. Our support for the Code complements our ongoing cooperation with the smash repair industry where we already offer consumers a choice of repairer option. We were also the first insurer to introduce a fair dealing code of practice covering all repairers.?
The director of Code of Practice National Parts Code Inc, Nick Koerbin, said: ?This is great news for us. We have nearly 200 participating businesses who have voluntarily joined the Code and have opened their premises up for audit. For Allianz to demonstrate its support in this manner creates a tangible benefit for those auto parts recyclers who have taken the step to change the industry.?
Allianz will be working with its national service provider
Recyclers mixed feelings over aircon rules
The Auto Parts Recyclers Association of Australia Inc (APRAA) has expressed mixed support for the new auto air conditioning licensing system that came into operation from July 2005, as announced by the Australian Government?s Department of Environment and Heritage (DEH).
?As a national industry association, APRAA supports the principles of a national, consistent licensing system to manage and reduce harmful refrigerant, greenhouse gas emissions, replacing the various state systems,? says Alan Marshall, APRAA?s executive officer. ?It is about time that a small automotive business or individual can operate throughout Australia using a single licence or authorisation, complying with one set of standards.
?However, the bumpy and uncertain development process, coupled with inadequate industry consultation with bodies such as APRAA, falls short of a professional and thorough process. In addition, many of our members are worried about the increasing compliance and de-pollution costs being dumped on their businesses. The auto parts recycling industry processes and de-pollutes the bulk of Australia?s 500,000 end-of life vehicles each year and its vital small business members have been ill-informed on the situation over the last 18 months.
?APRAA represents many leading quality auto parts recyclers throughout Australia, but our members are becoming increasingly disenchanted with increased compliance costs and regulatory authorities who do not enforce the law on the growing number of backyarders and unlicensed operators they are forced to compete against. APRAA would like to see a concerted effort by authorities to recognise the good guys in the industry and to knock off the bad guys, so that members can better afford the capital expenditure required to meet these increased compliance costs.?
Viv Connolly, APRAA?s Queensland president has been closely watching the ozone depleting substances (ODS) and synthetic greenhouse gases (SGG) national system developments and made a formal submission to the Federal Government?s DEH last year, calling for specific provisions for the auto parts recycling industry. ?The facts are that the DEH has chosen to disregard any suggestions about a special licence to allow Auto Parts Recyclers to decant or evacuate the air conditioning systems of damaged end of life vehicles,? Connolly says.
?In Queensland there are currently no licensed air conditioning businesses, although many are trained and experienced operators. Many of these will be too busy running their businesses to be aware of the new rules.
?It will be a major undertaking for auto parts recyclers, who currently decant air conditioning gas from end-of-life vehicles, to have staff trained to the level of fully trained and certified technicians."

Mitsubishi strikes a blow for OE
Mitsubishi Motors has struck a blow against the lower prices of aftermarket body parts with a new price list called 'the real deal'. In a recently launched quarterly repairers' newsletter it lists 200 high volume parts by number for current and non-current models with prices that have dropped between five and 47 per cent.
Product manager, crash aftersales, Mitsubishi's stock of parts comes partly from its Australian plant in Adelaide and partly from Japan. It holds parts for a minimum of 10 years and will continue to stock them as long as there is a demand.
The new policy will really start to bite when the upcoming 380 four door sedan replaces the Magna in October. Replacement parts will be available from the day of the new car's release. The lower price of parts is combined with Mitsubishi's new 5/10 warranty and has become a benchmark among car makers in lowering the cost of repairs.
Repair information for the 380 will be initially circulated via the four major insurers in September before the car is released. A body repair manual will be available at the same time for use by smash repairers. Because the car is still on the top secret list, Mitsubishi was not able to say whether it contained any high strength steel of aluminium parts. If it does, it will be the first of the 'big four' Australian family sedans to do so, and will immediately divide repairers between those who can and cannot repair the 380.
At this stage Mitsubishi has no plans to appoint approved repairers.

Protec lifts its game
With a new factory construction well under way, leading Australian automotive paint manufacturer, Protec, is a growing force on the refinishing scene.
Protec has around 1000 paint systems in panel shops around Australia. Since there are about 4500 shops, this gives Protec a higher market share of refinishing than is generally appreciated.
The new building will provide for Protec's rapid growth over recent years. The company's annual turnover is now in excess of forty million dollars.
Part of its success can be put down to a quality upgrade that started two years ago. With input from state managers, Protec took on a research and development exercise to improve the opacity of its basecoats. It is now completing a program to change, at no charge, all tinters being held by its customers. The new quality coatings come with a new distinctive packaging which features the Southern Cross stars.
Sales manager, John Williams, says that his company has upgraded its distribution too. The NSW Brookvale office has been moved to better premises in Waitara, and the Milperra depot has been moved to Minto where there is much more floor space and plenty of parking.
"By offering a better quality product and making it easier to source we're adding value to our business in many different directions,' Williams says.

Corvette will sort out repairers
Although not many Chevrolet Corvettes find their way to Austrlaia, those that do will pose some interesing challenges to reapirs. The construction of the car is undoubtedly a precursor of cars to come, and many of its features could well find be found in the medium priced GM cars of the future.
The Chevrolet Corvette is sometimes referred to as General Motors?s muscle car. And the 2006 Corvette Z06 claims to be the fastest and most powerful production vehicle GM has ever built. GM has used several weight-reducing materials to equally balance the vehicle and compensate for the additional weight of the 500 horse power seven liter engine The new Corvette is lighter than its predecessor largely because of the use of aluminium in its construction. The frame rails are made from hydroformed aluminum alloy with aluminum castings and stampings that are GMA (MIG) welded, laser-welded, and riveted together. The aluminum rails are four millimeters thick, as against three millimeters on the former steel frame rail. Different straightening and welding techniques will be required for structural repairs on the aluminum frame. During the repair process, the self-piercing rivets are replaced with a coated blind rivet or GMA (MIG) plug weld. The other weight-reducing material is carbon fiber which is used in the front fenders, outer portion of the inner wheelhouse, and the floorboards. The weight of each front fender has been reduced to 1.2 kg. The rigidity of carbon fiber for the fender application also reduces the need for reinforcements. The floorboards are made with a balsa wood core encased in carbon fiber sheets. Other notable changes include the use of magnesium alloy castings for the engine cradle and roof support. The roof support adds rigidity to the vehicle body and is not removable.

Who is liable for unsafe repairs?
The UK Motor Vehicle Repairers Association (MVRA) has bought into the problem of post-repair liability by suggesting its bodyshop members make use of a 'Vehicle Repair Method Statement' (VRMS). This is to cover a case where a repairer has quoted on a certain repair method in which there are safety issues, and an insurer has insisted on a change of method ? usually to lower the repair cost. If a subsequent accident can be shown to be the fault of the repair the question arises as to who is liable. This is not about rectification of a substandard repair. That is already familiar territory in both Australia and the UK where rectifications go back to the original repairer or to another repairer whose costs are born by the original repairer. Although insurers may issue guarantees (some lifetime) the performance of such guarantees is up to repairers, not insurers. The liability question is more about damaged caused to people or property because of an incorrect repair method. If that method was agreed by both repairer and insurer, the repairer would be liable for its failure. But what the MVRA is trying to establish is the liability of an insurer who changes the repair method originally stipulated by the repairer. The MVRA recommends that where there is a change forced upon a repairer he should insist that the insurer sign a VRMS to accept liability. Without this, a repairer could suffer the effects of a huge damages suit and even jail. The document sets out the scope of repairs recommended by the repairer and any changes to it as instructed by the insurer. In the event of a future dispute, the repairer can rely upon the document as evidence of the work and the working method it was authorised to carry out. The liability issue has always been a fact of life for vehicle repairers but has recently become more prominent. MVRA?s decision to offer advice - and a possible solution - came about after Mike Monaghan, MVRA CEO, became aware of two recent repair liability legal cases, one in the US and one in Germany - although he acknowledged that fatal or serious accidents that could be blamed on a faulty repair were rare. No doubt one of the motivating factors behind the move to protect body shops is the rapid change in build materials. Unless shops are equipped to repair cars made with high strength steels and aluminium, they cannot guarantee the safety of their work. Likewise, unless insurers accept the higher costs of repairing these materials they too are putting safety at risk. Australian repairs are yet to tackle the safety liability question with repairers mainly because it has not arisen. But there is little doubt that, given the influx of new build materials, it will arise in the near future.

First crop from Jumpstart
The first group of NRMA Insurance Jumpstart Autobody Scholarship holders have graduated, providing the industry with an influx of qualified panel beaters and spray painters. The nine participants, all of whom began their apprenticeships in 2001, have been employed by Preferred Smash Repairers in NSW. They are:
Daniel Ware - Medicar Smash Repairs, Campbelltown.
Ben Mills - Medicar Smash Repairs, Campbelltown.
Ronnie Dalao - Status Paint and Panel Pty Ltd, Wetherill Park.
Michael Sheppard - Mt Druitt Auto Body Repairs, Mt Druitt.
Adam Stone - Bellert and Bennett Smash Repairs, Nowra.
Jonathan Tapia - Reno Smash Repairs, Campbelltown.
Ben Greive - Lingane Auto Body Repairs, Hornsby.
Chris Nakkan - Golbert Restorations Pty Ltd, Arncliffe.
Shannon Johnstone - Cawarra Smash Repairs, Caringbah.

As recognition for their commitment throughout the program, NRMA Insurance recently presented all nine participants and their employers with $5000. NRMA Insurance industry and development manager, Phil Nixon, said the Jumpstart scholarship is designed to provide school leavers with an opportunity to forge a career in smash repair, while helping to ensure the sustainability of the industry. ?We are always on the lookout for young people, both male and female, who are passionate about cars and willing to learn,? Nixon said. ?Currently, there are more than 230 people involved in Jumpstart nationally and we are confident that this figure will continue to grow. ?This NRMA Insurance Jumpstart Autobody Scholarship is different to other training initiatives because it aims to source the most enthusiastic, skilled and committed apprentices. It?s not just providing funding - it?s providing expertise for the smash repair industry," he said.
?Each NRMA Insurance Jumpstart Autobody Scholarship participant completes an 18 week pre-apprenticeship vocational course conducted at TAFE. The program thereby creates a pool of enthusiastic, skilled and committed apprentices for our PSR network. ?We recognise that most of our smash repair partners are small business operators, who don?t have the resources to dedicate a lot of time to recruitment. The program allows them to draw on this pool.? In addition to the NRMA Insurance Jumpstart Scholarship, an NRMA Insurance Jumpstart traineeship is also available. The traineeship allows students to combine their HSC with study at TAFE and on-the-job experience, for which they are paid for the work they complete.

B&L to new partnership
Bernie and Lesley Tierney have sold their Unanderra distribution business to current Glasurit distributor Jeff Martin, owner of Triken in Caringbah NSW, and former N.S.W and Australian rugby league representative Rod Wishart.
?B & L Supplies, when run by Bernie and Lesley with the support of their son David, was your tyMartin's experience with Triken, (he's been the Glasurit distributor in the Sutherland Shire since 1999), will also be a great benefit, since he has had a lot of experience working with bodyshop owners, assisting them in developing their business.
During initial stages of the business handover Bernie Tierney is staying on until the new management has settled in.
No changes will be made to existing staff. The new owners have every confidence in the existing nine staff that have been working at B & L Supplies.
?Our first priority is making sure we look after our existing customers and that we have a smooth transition,? Wishart said.

Sikkens goes solar racing
The Dutch solar-powered vehicle which will race in this year's World Solar Challenge 2005 in Australia has been painted with Sikkens refinishes supplied by Akzo Nobel.
Known as 'Brain Sport', the World Solar Challenge involves a race of more than 3,000 kilometres across Australia, starting in troDeveloped by students of the University of Delft in the Netherlands, the Dutch entry, dubbed the Nuna 3, has been given a top quality finish with Sikkens refinishes at the Sassenheim site.
?Three of our technicians worked three days on this job," explained Bart Verheule, marketing manager at the Dutch profit centre.
?The carbon plates were sanded and then paint was applied; first a primer, then a silver metallic waterborne base coating and, finally, an innovative clear coat. During the drying process with this clear coat ? which is still being developed ? use is made of UV-A light, the same light you have in a sun bed.?
Nuna 3 was officially presented at the Zandvoort circuit in the Netherlands on June 21 before departing for Australia for the race which begins on September 25.
The Dutch team?s record in the ?challenge? is impressive. In 2000 the team took part for the first time and won after breaking a number of records. It repeated this feat again in 2001 and 2003.
With his eye on the World Solar Challenge in 2006, Bart Verheule says there?s a possibility that Helianthos, Akzo Nobel?s innovative solar cell project, could well come into the
Superfinish is the winner
Each year the best of the Motor Traders Association members throughout New South Wales are honoured and their contribution to their area celebrated. At the recent MTA Regional Awards night in Wollongong, D & Y Superfinish from Nowra was presented with the Sikkens Car Refinishes Body Repair Award for excellence in the automotive repair division of the awards program.
D & Y Superfinish is a major, well established repairer in Nowra, owned and operated by Gary Ward and Steve Kohler, which has achieved consistent growth over the last few years. This growth saw D & Y Superfinish move into larger premises in May 2004 to accommodate this growth. The new shop has 18 work stations in it and a floor staff of 11.
According to Gary Ward, part of the shop's success is a direct result of participating in the Akzo Nobel Car Refinishes Acoat selected program which assists body shops in managing the complete business rather than focusing on individual components of the business.
D & Y Superfinish uses the Sikkens range of automotive refinish paints exclusively, which substantially enhances the productivity of the shop and this, in conjunction with the many aspects covered by the Acoat selected program, including comprehensive painter training, production planning and cost management provides ward and Kohler with the tools to create and sustain a profitable business to today?s business environment.

Grand opening for a grand shop
On Thursday 21 July 2005 the totally new North Williamstown Motor Body Works was formerly opened in Maddox Road, North Williamstown, by the Victorian Premier Steve Bracks.
Amid the soothing strains of a string quartet and the nourishment of delicious finger food the Premier congratulated George Kallifidas and his wife Mandy for taking on this exciting project. In one sweep they had gone from one of the oldest and quaintest shops in Australia to one of the grandest, where everything