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1) Feature Story: Can Single Location Shops Compete?
2) Today's News
3) Links We Like: Help Wanted
4) Weekly Chuckle: Did You Ever Wonder?
5) Product Highlight: Repair Order Jackets
6) In the News

Feature Story: Can Single Location Shops Compete?

Matt Ohrnstein is certainly among those most versed in the “MSO value proposition,” or what it is that multi-shop operators (MSOs) in the collision repair business believe they can offer that a single-location repairer may not.

After all, Ohrnstein spent seven years as CEO of Caliber Collision Centers, overseeing the California-based consolidator at a time when it grew from about 20 shop locations to more than 60 in two states.

But three years ago after leaving Caliber, Ohrnstein formed the Symphony Advisors consulting firm, and while still focused on the automotive aftermarket, he is much more optimistic about the single-shop operator’s ability to compete than he might have acknowledged in the past.

Autobody Jobs! With the need for shop owners to find good technicians, we are providing this Classified Ads section free of charge for both body shop employers and employees. Posted geographically and by job classification. Includes Help Wanted and Positions Wanted. Help Wanted posts expire within 60 days.

Repair Order Jackets
Repair Order Jackets for standard repair order racks or 4-drawer file cabinet. Take advantage of the features of our system, while keeping track of all repair documents. Jackets have 3 sealed sides and are open at the top. Come in manila, blue, gold , gray, green, lavender, orange, pink, red, white, or yellow. Paper weight: 150# Tag.
Size: 11 ¾” x 9 ½”.

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Visit www.collisionservices.com today to view all of our products created specifically for the collision repair industry.

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California Assembly Passes Capping Measure
The California Assembly unanimously passed California Senate Bill 1371 – the fifth version of the bill – that prohibits insurance companies from placing caps on payouts for collision repairs. The problem for the past two years has been that lawmakers cannot agree on a definition of capping. The latest definition of capping, which was approved July 14 by the State Assembly, is “… offering or paying an amount that is unrelated to a methodology used in determining paint and materials charges that is accepted by automobile repair shops and insurers.” The methodologies, which must be accepted by both automobile repair shops and insurance companies, are determined by multiplying the cost of paint and other materials by the refinishing rate.

LA Gov. Lets Auto Liability Law Become Effective Without Signature
Even though Louisiana Gov. Bobby Jindal didn't sign the bill, a new law will raise auto insurance rates for more than one million Louisiana motorists in 2010 by increasing the minimum liability coverage required for drivers. Jindal let it take effect without his signature. Louisiana law currently requires car and truck owners to have at least "10-20-10" liability coverage. That's $10,000 coverage for damage of other people's property, $20,000 for injury or death to more than one person in an accident and $10,000 for injury or death to one person.

Mich. Group Debates State Advocate's Charge That Auto Rates Too High
A charge leveled on July 16 by Michigan's insurance advocate that auto rates are too high fails to mention that the state's auto insurance benefits are the best in the nation, one insurance trade group says. The Insurance Institute of Michigan countered that mandates are unlimited, lifetime medical coverage for those injured in automobile accidents. No other state in the country comes close to such a high level of benefits. However, according to the National Association of Insurance Commissioner, Michigan's premiums are 13th highest in the country

Sign up for NACE through SCRS
The Society of Collision Repair Specialists (SCRS) has agreed to participate in the NACE Partnering Program this year. SCRS will receive credit for all new registrants who are tracked through this link or who designate our custom registration code "15".When you follow the "Click here to register" link, you will link directly to the NACE registration system that will automatically give SCRS the appropriate credit. Link.

PPG Supports SkillsUSA With $10,000 Donation
PPG Automotive Refinish has donated $10,000 to SkillsUSA, a national nonprofit organization serving teachers, high school, and college students who are preparing for careers in trade, technical and skilled service occupations. The organization acts as a link between education and industry, helping students excel in their chosen field and qualify for jobs in the real world. More than 300,000 students and instructors join SkillsUSA annually. The PPG donation was earmarked to support the 2008 National SkillsUSA Championships held in Kansas City, Missouri June 25 – 26. The Championships is a national-level competition that involves over 5,000 students vying in 91 hands-on skill and leadership contests including collision repair technology and, for the first time, a separate automotive refinishing contest. Each SkillsUSA Championships contestant is a state-level gold medalist.

Michigan Dealership/Collision Repair Center Announces Switch To Waterborne Coatings
Mount Pleasant-area Body Shop Leads the Way With Conversion to Environmentally-friendly Refinish Coating Krapohl Ford Lincoln Mercury, a leading Mount Pleasant-area new car dealership and collision repair facility, announced it has transitioned its shop to waterborne basecoat from solvent-based systems in anticipation of new air quality regulations. The body shop is now using the AWX™ Waterborne Basecoat System from Sherwin-Williams Automotive Finishes Corporation (SWAFC), according to Mark Smith, Krapohl General Manager.

GM, National Governors Association Team Up on E85
The National Governors Association and General Motors Corp. will work together to expand the nationwide infrastructure and distribution network for E85 ethanol aimed at being ready when next-generation ethanol made from a variety of non-grain sources is available. The announcement was made Sunday by Minnesota Gov. Tim Pawlenty during the opening plenary session of the NGA Centennial Meeting in Philadelphia. The partnership was formed under the Securing a Clean Energy Future Initiative Pawlenty championed as chair of the NGA.

PPG to Sell Controlling Interest in Auto Glass Business to Kohlberg & Company
PPG Industries (NYSE: PPG) has signed an agreement with an affiliate of funds managed by Kohlberg & Company, LLC, Mount Kisco, N.Y., under which PPG will divest its automotive glass and services business to a new company formed by Kohlberg. PPG will receive $330 million in gross cash proceeds plus a minority ownership interest of approximately 40 percent in the new company, subject to closing adjustments. Net of payments to former minority interests, transaction fees, expenses and taxes, the transaction will result in approximately $270 million in cash to PPG. “This transaction is another positive step forward in our portfolio transformation,” said Charles E. Bunch, PPG chairman and chief executive officer. “It enables us to focus more on coatings and specialty products, and significantly reduces PPG’s exposure to the U.S. automotive market.”

AIG, Vermont Mutual to Enter Mass. Personal Auto Insurance Market
Giant insurer American International Group has decided to enter the Massachusetts private passenger auto insurance market, according to The Boston Globe. But AIG is not alone. In addition, Vermont Mutual will begin selling personal auto insurance policies in the state by the fourth quarter of this year, CEO Thomas Tierney told Insurance Journal. "Massachusetts is an opportunity to bring more to our agents and policyholders," said Tierney, whose company already sells homeowners and business owners policies in the state. It also sells in Maine, New Hampshire and Vermont.

Yokohama Tire Corp. Sponsoring Two New Hooked on Driving Events
Yokohama Tire Corporation's ADVAN® is the Official Tire Sponsor of Hooked on Driving (HOD). Now ADVAN will get even more visibility as Yokohama Tire becomes the Official Event Sponsor of two new HOD events: Buttonwillow Raceway Park on July 18 in Buttonwillow, Calif., and Spring Mountain Raceway on Sept. 5 in Pahrump, Nev. "Hooked on Driving is a perfect venue for ADVAN," said Jim Mayfield, director ADVAN brand. "Their drivers are our customers: sports car enthusiasts who appreciate ADVAN's race heritage and the legendary reputation it carries as an ultra-high-performance brand." David Ray, HOD founder and CEO, added: "We truly appreciate this teamwork approach from Yokohama Tire and ADVAN in supporting David Mecey, the territory director, as he develops this exciting new region of Hooked on Driving."

Insurance Information Act of 2008 Moves Forward
U.S. Rep. Paul E. Kanjorski, D-Pa., chairman of the subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, is sponsoring the Insurance Information Act of 2008 (HR 5840) that would establish an Office of Insurance Information within the Treasury Department. This federal office would provide insight on insurance regulation to Congress and to the White House. To view the bill, visit ASA’s legislative Web site, Link.

PPG Announces Winner Of Hot Wheels® Spectraflame® Paint Your Ride Contest
Jim Cooper was named the winner of the 2008 PPG Hot Wheels® Spectraflame® PAINT YOUR RIDE Contest. The announcement was made at the 11th Annual Goodguys PPG Nationals in Columbus. Cooper, of Laguna Hills, California, was selected from a field of 12 finalists that included custom painters, car builders, and hot rod enthusiasts. Entrants created original paint schemes for their vehicles using eye-catching Hot Wheels® Spectraflame® colors available in PPG’s Vibrance Collection®. The co-branded custom colors mimic those found on the Hot Wheels® line of die-cast toy vehicles from Mattel, Inc. Cooper’s winning entry was a 1956 Chevrolet Handyman 2-door wagon painted in PPG’s Hot Wheels® Spectraflame® Medium Sapphire with silver flames. Co-owned by Cooper’s wife Melinda, the winning car features a blown 496 big block with turbo 400, a 9” rear; and an Air Ride suspension built by Randy Ward at Rod Benders.

Save Gas This Summer!
Simple Tips for Improving Fuel Mileage Can Add Up to Roughly 10 Percent Savings per Tank. The summer vacation season is getting in full swing and fuel prices are rising faster than the temperature. But drivers can stretch each tank of gas by roughly 10 percent with simple driving tips and smart car care solutions from 3M Car Care. "Over the life of a car, poor fuel efficiency and excessive fuel use can lead to hundreds, if not thousands of dollars in added expense," said John Marmar, U.S. business manager, 3M Car Care products. "Properly maintaining the vehicle and watching your driving style are two of the best ways to maximize fuel efficiency and reduce long term expenses. 3M Car Care offers six tips to maximize your car's fuel performance.”

1. Check tire pressure - Improperly inflated tires can greatly reduce fuel economy, so make sure tires are inflated to the manufacturer's recommended pressure listed on the inside of the driver’s side door. The correct tire pressure will also provide a safer ride and help reduce tire wear.

2. Let your engine breathe - Replacing a dirty, clogged air filter will go a long way in improving fuel efficiency. According to the federal government, a car's gas mileage could improve by as much as 10 percent with a clean air filter. In addition to the fuel savings, the new filter will help protect the engine.

3. Keep the fuel system clean - Carbon and resin buildup in a car's fuel system reduces fuel efficiency. You can clean the entire fuel system with the new 3M DIY Fuel System Tune Up Kit. With just one tool and 45 minutes, it cleans the engine, fuel injectors, intake manifold, intake valves, combustion chambers and throttle plate with the same trusted 3M products used by automotive professionals. Keeping the fuel system clean helps maximize the engine's performance, extend the life of the engine and improve mileage.

4. Keep it cool inside – Summer heat requires air conditioning, but AC can account for up to 5 percent of a car’s fuel consumption. Using 3M Crystalline Automotive Window Film can keep the sun and heat at bay – making the vehicle cooler and reducing the demand on a vehicle’s air conditioning system. Even better, 3M Crystalline Automotive Window Films offer many of the benefits of darker window tints, with the option of being virtually clear in color.

5. Take it easy and slow down - Driving a car at a high speed, "jackrabbit starts" and aggressive driving in traffic can greatly reduce fuel efficiency. The U.S. Department of Energy says "As a rule of thumb, you can assume that each 5 mph you drive over 60 mph is like paying an additional $0.20 per gallon for gas." And every time you "hit the gas" you get closer to the next refill.

6. Put your car on a diet - Remove any unnecessary, heavy objects in the vehicle. An extra 100 pounds can reduce fuel efficiency by as much as 2 percent. Even removing golf clubs can help lighten the load.

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