April 22, 2005

Imperial Collision and Oaktown Collision Merger

Imperial Collision Centres and Oaktown Collision Centres have announced that they have completed the terms of their capital structure merger. The Board of Directors and shareholders of both companies unanimously approved the merger on April 5th and it was announced on April 14, 2005.

The merger will create an entity that will become the largest corporate owned collision repair organization in Eastern Canada with all the shops in the Greater Metropolitan Area (GTA) A name change was not announced.

"A priority will be operational efficiencies within our existing operations", says Tony Canade, the company's President & COO, "a strong foundation built with the goal of operational excellence and predictable outcomes will form our platform for future growth", states Canade.
For more information please see: http://www.ciia.com/provinces/ontario/newsevents.html#largest

Collision Solutions Network Expands Coverage to the Maritimes

Collision Solutions Network Inc. (CSN) has expanded its coverage to now include two eastern provinces. The members of Collision Associates in the Maritimes have joined CSN to become the East Coast representatives of this rapidly growing network. CSN's membership presently includes 34 shops located throughout Ontario, New Brunswick and Nova Scotia. Formed in May 2002, CSN is the fastest growing collision repair network and is continuing its expansion throughout Canada.

The combination of Collision Associates and CSN will result in a stronger, more dynamic presence in Atlantic Canada." Says Dana Alexander Managing Director of Collision Associates. The Collision Associate Family include; Bruce Chev Olds, Middleton NS; The Coachworks Ltd, Halifax NS; Champlain Auto Body, Moncton NB; Dana's Collision Center, Fredericton NB; Downey's Collision Center, Saint John NB; and Sarkis Collision Center, Miramichi NB. The news release can be viewed at: http://www.ciia.com/provinces/ontario/newsevents.html#csn

27 Shop Collision Repair Chain Closes
Vehicles reported trapped in shops

M2 Collision of California closed its doors on Monday trapping hundreds of owners vehicles in its 27 shops. The financially troubled collision repair chain had announced last week it was to be acquired by Caliber Collision. Caliber President Dan Pettigrew said there just wasn't enough time to put the deal together before creditors closed in. At least one shop is reported still operating with its former owner paying the employees. In the other 26 shops hundreds of employees are out of work.

Liquidation of Santa Monica, Calif., -based M2 Automotive is on the fast track as creditors attempt to get the most value for the chain's assets. In order to get those cars back as quickly as possible, CMA Credit Bureau Services plans to hold an auction to sell the company or its assets on Friday afternoon. "The highest bidder is going to win and hopefully they'll be in place by the first of next week and begin to contact and deal with either returning the cars, fixing the cars, whatever it is people want to do," says Bob Hoder, CMA Vice-President. M2 had agreed to sell its 27 locations, which have roughly 700 employees, including 500 collision repairers. Last Friday, the deal broke down and GE Finance, the primary creditor, froze all M2 assets. CMA then hired a private security force to change the locks on the doors and stand guard at the facilities. An anonymous employee source speaking to U.S. media , said the big attraction for buyers during this Friday's sale would be the Santa Monica location, which he claims is the largest body shop on the West Coast. The facility turned roughly 500-600 vehicles per month and generated nearly $1 million per month in revenues, he said. At the time the doors were locked the source said approximately 400 vehicles were on site in Santa Monica. For a financial company like GE Financial looking to recover losses, those vehicles and their subsequent repair jobs have become valuable assets and that is not making consumers happy as they wait for their vehicles to be repaired or released. For more updated information please see: http://www.ciia.com/provinces/ontario/newsevents.html#27

CMA Business Credit Services (CMA) is liquidating M2 "pursuant to a general assignment for the benefit of creditors," according to Bob Hoder, vice president of CMA. The process is similar to a Chapter 7 liquidating bankruptcy, but it is under a California law that "mirrors" the bankruptcy code, rather than federal bankruptcy statutes, said Hoder.

CMA Business Credit Services is a California nonprofit corporation with approximately 2,100 member companies. CMA serves members through offices in the California cities of Burbank and San Leandro, and in Las Vegas.

Hoder told ABRN CMA is expediting the liquidation process because there are several hundred cars stuck at M2 shops.

"The problem we had is there are 27 stores, no employees and all we could do is secure these places to protect the company, as well as the customers who have cars there," said Hoder. "We don't do body shop work. We're a fiduciary liquidator. So all we could do was put guards there, change the locks and secure everything so we could carry out a plan to get these cars back to people and hopefully put new owners in place."

In order to get those cars back as quickly as possible, CMA plans to hold an auction to sell the company or its assets on Friday afternoon. "The highest bidder is going to win and hopefully they'll be in place by the first of next week and begin to contact and deal with either returning the cars, fixing the cars, whatever it is people want to do," says Hoder.

He stresses that CMA isn't auctioning off customers' cars. "There is no shortcut," he said. "This is as fast as we can go."

M2 closed its doors on Monday following a breakdown in negotiations with Caliber Collision Centers, of Irvine, Calif. The two sides had reached a tentative purchase agreement at the end of March and expected to close the deal within 45 days. M2 had agreed to sell its 27 locations, which have roughly 700 employees, including 500 collision repairers. Last Friday, the deal broke down and GE Finance, the primary creditor, froze all M2 assets.
CMA then hired a private security force to change the locks on the doors and stand guard at the facilities.

Employees at all M2 locations were sent home Monday, and in some instances, technicians were asked to leave their tools behind. Sources said technicians have since been allowed to return to the shops to remove their tools.

Angered over the way the situation unfolded, several M2 employees contacted ABRN in an effort to find out what has happened since little information appears to be funneling from company leaders. Several employees were upset last weekend when their paychecks bounced.

"When I went to the bank on Friday I was told that they could not accept the check," wrote one female employee. "Since then there has not been any news about my owed wages. Aside from my two-week pay, I'm also owed the last week that I worked. I have four kids, so I'm sure you know how much I need my earned pay."

Attempts to contact Hunt Ramsbottom, founder and chairman of the board for M2 Automotive, have been unsuccessful.

One longtime M2 employee, who asked not to be identified, said the deal with Caliber fell through when Caliber low-balled on the final price. According to the source, Caliber knew M2 was in a dire financial situation and figured they could buy the chain for far less during liquidation. "They let it run dry because they knew they could get it cheaper," he said.

When asked about the charge of low-balling in order to get a better deal Caliber President and CEO Dan Pettigrew told ABRN nothing could be further from the truth, calling it a far "messier" situation."This is the last thing we wanted to see. The last thing anyone in the industry would want to see. The fallout on the insurance side, it can't be a positive," said Pettigrew.

"Fundamentally, we just ran out of time. We were working closely to get a deal done and excited about the opportunity and the positives for both sides. But as we did the due diligence, the financial condition of the company, specifically the cash situation, was much more dire than initially presented.

"It was not a question of trying to get something on the cheap. It was how do we do a deal and not drag the entire organization down."

The anonymous employee source said the big attraction for buyers during this Friday's sale would be the Santa Monica location, which he claims is the largest body shop on the West Coast. The facility turned roughly 500-600 vehicles per month and generated nearly $1 million per month in revenues, he said.

"We were buying $350,000 worth of parts per month," the source said, adding that roughly $60,000 of that was for paint materials.

At the time the doors were locked the source said approximately 400 vehicles were on site in Santa Monica. For a financial company like GE Financial looking to recover losses, those vehicles and their subsequent repair jobs have become valuable assets and that is not making consumers happy as they wait for their vehicles to be repaired or released.

Final liquidation of M2 Automotive set for Friday
Liquidation of Santa Monica, Calif., -based M2 Automotive is on the fast
track as creditors attempt to get the most value for the chain's assets. CMA Business Credit Services (CMA) is liquidating M2 pursuant to a general assignment for the benefit of creditors, according to Bob Hoder, vice president of CMA. The process is similar to a Chapter 7 liquidating bankruptcy, but it is under a California law that mirrors the bankruptcy
code, rather than federal bankruptcy statutes, said Hoder.

http://www.abrn.com/abrn/article/articleDetail.jsp?id=157627

(see headlines)

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Shops praise industry trade association for their continuing refund efforts

ADP Claims Services have announced that they have discovered additional vehicles that were affected by the labour time errors that changed the October 2004 cd update. This is in addition to the previously announced list of some 160 vehicles that ADP showed with lowered labour times earlier. That new list is found at: http://www.support.adpclaims.com/SpecialNotices/NoticeOct04Affected_March05.pdf

All errors including the most recently found mistakes have been corrected on the current cd.

HOW TO RECEIVE REFUNDS

Shops are advised that for insurance-based work the normal supplement process applies. ADP has decided that, although under no legal obligation to do so, they will offer collision repairers a re-imbursement for the losses a shop may have incurred through walk-in work(customer-pay) billings that may have been lower than normal due to these lowered prices.

Shops can obtain the new claim forms and filing information at:

http://www.support.adpclaims.com/SpecialNotices/ClaimsForm_march05.pdf

For those shops that can not access the forms because of ADP's use of new Adobe software, a fax copy of the claim forms is available. Please contact the collision repair industry trade association HARA at www.ciia.com or at 1-866-309-4272 or info@ciia.com for copies.

The collision repair association urged ADP in a February 10 open letter published on their web site to ensure a longer time for awareness and claims submission and to consider a further credit to shops for the extra work required to handle the claims forms as this work was caused by ADP's error. Shops across Ontario were contacted by the trade association, and advised that they

must send in the refund forms to ADP by February 28. That refund close date has now been extended to June 30, 2005

Shops who took advantage of the earlier www.ciia.com and association announcements have managed to recover funds lost in October to date. For instance:

"HARA's proactive work in letting it's membership know about a labour calculation error found on a cd-rom has netted our company an additional $720.38. That savings alone covers almost two years of my membership with HARA and ciia.com's website continues to provide me with additional benefits."

P.J. Hnatiuk VP. & GM., Canadian Auto Collision, Brantford

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April 14th, 2005 (HAMILTON, ON) - - New poll show 65% of Canadians have been involved in an auto vehicle accident and 82% found the experience to be stressful. Women were more likely to find the experience stressful (88%) than men (76%). The poll, commissioned by 1-800-CARSTAR, also found that more men (70%) than women (60%) have been involved in accidents.

The poll also revealed that the highest accident rate was in the 35-49 age group, with British Columbia reporting the highest accident rates (76%) and Atlantic Canada reporting the lowest (57%). Additionally, 33% of Canadians polled said they 'think' they would know what to do in case of an accident while 9% said they weren't sure or would have no idea what to do if involved in an accident.

"Unfortunately the majority of Canadians will experience an auto vehicle accident in their lifetime and the experience is stressful," said Sam Mercanti, President and CEO of CARSTAR Automotive Canada, which is announcing Canada's only national, toll-free 1-800 "Accident Assistance" service (1-800-CARSTAR) designed specifically to help Canadians if they are in an accident. "We created Canada's first 'Accident Assistance' service, so
we can take care of everything for consumers in an accident situation.

While other companies offer "roadside assistance", which includes services such as a battery boost, changing a flat tire, gas delivery and winching service, 1-800-CARSTAR is a free service that is dedicated to provide Canadians with 24-7 Accident Assistance. Once a consumer calls 1-800-CARSTAR, the trained Accident Specialist service professional who
answers the call and the local CARSTAR store can help them with every aspect of their accident.

This includes everything from arranging towing, car rental arrangements, help with contacting insurance companies, and transferring to the nearest CARSTAR Collision Repair Centre where customers receive top-quality vehicle repairs backed by Canada's only lifetime, nationwide repair warranty.

Unlike most "roadside assistance" programs, 1-800-CARSTAR is a complimentary service and requires no membership fee.

"Not only is the 1-800-CARSTAR service free, it is also available across North America, which is good for Canadians who travel in the US," said Mercanti.

According to the poll, Canadians were divided on who to call in the event of an accident, with 22% who would call a family member, 31% would call 9-1-1 emergency response and 26% would call the police. 12% of Canadians don't know who they would call if they were involved in an auto vehicle accident.

"With 1-800-CARSTAR, now Canadians can call just one number to be taken care of completely," said Mercanti.

Over a third of Canadians don't believe they are obligated to inform their insurance company that they have been involved in an auto vehicle accident despite the amount of damage or whether or not any other vehicles were involved.

"Drivers must inform their insurance companies of any vehicle accident, regardless of damage or how many vehicles are involved," said Mercanti. "This shows that there is still education to be done for Canadian drivers when it comes to accidents."

Driving and Collisions in Canada

According to Transport Canada there are over 19 million vehicles on our roads and over 21 million drivers operating vehicles across more than 900,000 km of roads.1 When health care costs, property losses and other factors are considered, the economic cost of traffic collisions to Canadians is as high as $25 billion annually.1

About the 1-800-CARSTAR Poll

The 1-800-CARSTAR poll was conducted by telephone using TNS Canadian Facts' omnibus survey, TNS Express Telephone. The sample is nationally representative of Canadian adults 18 years of age and older and is designed to provide coverage of all households with telephones except those in the northern territories.

A total of 1,015 Canadians were interviewed between January 24th and 27th, 2005. The survey results are considered accurate within three percentage points, 19 times out of 20.

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In this new position, Norm will be responsible for forging strategic relationships and partnerships with original equipment manufacturers, dealership consolidators, independent shop consolidators and buying groups. He will represent PPG Canada on a national level at industry trade association events, as well.

Norm comes to PPG with over 30 years experience in the industry including expertise in OEM parts marketing, automotive PBE distribution, collision centre marketing programs, collision repair banner networks and collision centre consolidation.

"Norm is recognized as one of Canada's leading executives in the collision repair industry and has held senior management roles with respect to development, promotions, marketing programs, training, and education," said Lee Smith, Director, Refinish, PPG Canada. "He is also a dynamic featured industry speaker with expertise in collision centre marketing."

Norm is a Director of the Toronto Collision Repair Society (TCRS) and the Collision Industry Action Group of Ontario (CIAG). His office will be located at PPG Refinish headquarters in Mississauga, Ontario.

(see headlines)

Racer Kelly Williams takes Myth Busting Activity on the Road

Ottawa, ON -- Kelly Williams, a veteran Canadian CASCAR driver, is touring the country as part of Car Care Canada’s Be Car Care Aware campaign to challenge popular myths about vehicle maintenance. As a race car driver, safety promoter, educator and TV personality, Williams knows her way around a car, and she’s not shy about tackling vehicle maintenance misconceptions. Williams is heading out on a 12-city Canadian media tour this week to share her experience and knowledge as part of Car Care Month in May.

“Consumers are bombarded with all kinds of information about vehicle maintenance. Some of it’s true and some of it’s not,” says Marc Brazeau, Vice President, Car Care Canada, a not for profit organization devoted to vehicle safety. “Kelly’s job this spring is to set the record straight on what people really need to know when it comes to taking care of a vehicle.”

Car Care Canada estimates there is $2-billion in unperformed automotive maintenance work in Canada that could result in vehicle breakdown, increased costs, or personal injury. The Be Car Care Aware campaign is designed to increase the knowledge of Canadians so they can make intelligent choices and decisions in regard to their vehicles. Car Care Canada supports www.carcarecanada.ca a website designed to provide easy to understand information including maintenance schedules, check lists and diagrams.

Through research and one-on-one interviews with industry leaders, automotive media and service technicians, Car Care Canada created a list of more than 10 Automotive Maintenance Myths. During the tour, some of the common myths Williams will clear up include:

Ø “Warm weather means less car worries”.

Ø “Vehicle technology today is so advanced, I don’t need to worry about emissions”.

Ø “The service schedule is just a way for service people to make money”.

Ø “If it’s not broke, don’t fix it”.

“Vehicle neglect costs more money in the long run as it devalues one of the largest investments you’ll ever make,” says Williams. “When I was racing, my team had a series of checks we completed at every pit stop to make it through the race. While it doesn’t have to be that complicated for average drivers, there are some specific things every driver should do every spring and summer, and before heading out on a summer road trip.”

About the "Be Car Care Aware" Campaign
"Be Car Care Aware" is a consumer education campaign about the benefits of regular vehicle care, maintenance and repair. The goal of Car Care Month is to help motorists to prepare for spring and summer driving, and help them avoid common mistakes about vehicle maintenance. Built around three key message areas of dependability and safety, protecting the environment, and enhancing and maintaining vehicle value, the campaign is spearheaded by Car Care Canada.

About Car Care Canada
Car Care Canada is a non-profit advocacy group that is the leading source for research, education and communication about the automotive aftermarket industry in Canada. For more than 15 years, Car Care Canada has been recognized for its credibility among consumer media, the motoring public and the industry.

Car Care Canada is committed to building awareness and knowledge about the benefits of regular vehicle care, maintenance and repair to prepare consumers to make sensible decisions about their vehicles. As awareness builds, consumers will take action, thus reducing vehicle neglect. Reversing unperformed maintenance will conserve energy, improve highway safety and benefit the environment. These objectives are echoed in Car Care Canada’s consumer education campaign called "Be Car Care Aware."

One-Tonne Challenge

Canada’s One-Tonne Challenge asks Canadians to reduce annual greenhouse gas (GHG) emissions by one tonne. Follow the Be Car Care Aware guidelines to keep your vehicle well maintained. A poorly maintained engine can use up to 50% more fuel and produce 50% more CO2 than one that runs properly.

Tour Dates

Victoria – Tuesday, April 26
Kelowna – Wednesday, April 27
Calgary – Thursday, April 28
Edmonton – Friday, April 29
Hamilton – Monday, May 2
Kitchener – Tuesday, May 3
Toronto – Wednesday, May 4
Ottawa – Thursday, May 5
Montreal - Tuesday, May 10
Sherbrooke – Wednesday, May 11
Winnipeg – Thursday, May 12
Regina – Friday, May 13
Quebec City – Thursday, May 12
Moncton – Tuesday, May 17
Halifax – Wednesday, May 18

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AIA YES Interactive Workshop on Market Trends

Ottawa, Ontario -- The AIA Young Executive Society is hosting an interactive breakfast workshop on aftermarket trends on June 16th at the Board of Trade in Toronto. This is a unique opportunity for aftermarketers to not just hear from the experts, but to discuss their thoughts and opinions as well as ask questions.

Vehicle mix expert Dennis DesRosiers will share his thoughts on trends in vehicle sales and what it means to the industry. Dennis’s opinion and predictions are often controversial. Vehicle trends are not what they used to be. The Asian automakers now have a large percent of Canadian vehicles on the road. Mini-van popularity is declining, with SUV popularity rising, these overall industry trends can have a profound impact on day-to-day operations and profitability in the aftermarket. Workshop participants will have a chance to hear Dennis’ thoughts and challenge him on them.

Workshop participants will also have a chance to hear Bob McPherson of NPD speak about consumer trends in vehicle repair. Bob is well-known in the industry and is no stranger to controversy either. Data on the behaviour, choices and habits of the consumer as they relate to the aftermarket industry have been sorely lacking until recently. AIA announced that it was working with NPD Group and its AutoTrac online survey to follow consumer trends in a number of categories. AutoTrac is monitoring total service occasions and breaking the occasions down by total national and regional categories. Consumer trends show that it is consumers who are driving the aftermarket, not just the vehicle mix. Workshop participants will have a chance to discuss and explore these consumer trends with Bob and with their peers.

This interactive session will look at consumer trends and the OE influence on the aftermarket. Have we seen the end of leasing and how are the car manufacturers managing the high inventories of returned leased vehicles? Are the OEMs really targeting the aftermarket?

The Are We Driving or Driven workshop is open to everyone in the automotive aftermarket industry.

Details:

Thursday, June 16th
8:30 – 11:30 am
Toronto Board of Trade
830 Dixon Road

How to Register:

The registration fee for the AIA YES Interactive Workshop “Are we Driving or Driven?” is $134 per person. Register online at http://www.aiacanada.com (under the Events button) or download a registration form and fax it to (613) 728-6021 or mail it to AIA. For assistance with registration, call Patty Kettles at (800) 808-2920 ext. 221 or e-mail Patty.Kettles@aiacanada.com.

(see headlines)

M2 Collision of California closed its doors on Monday trapping hundreds of owners vehicles in its 27 shops. The financially troubled collision repair chain had announced last week it was to be acquired by Caliber Collision. Caliber President Dan Pettigrew said there just wasn't enough time to put the deal together before creditors closed in. *

At least one shop is reported still operating with its former owner paying the employees. In the other 26 shops hundreds of employees are out of work.

Liquidation of Santa Monica, Calif., -based M2 Automotive is on the fast track as creditors attempt to get the most value for the chain's assets.

CMA Business Credit Services (CMA) is liquidating M2 "pursuant to a general assignment for the benefit of creditors," according to Bob Hoder, vice president of CMA. The process is similar to a Chapter 7 liquidating bankruptcy, but it is under a California law that "mirrors" the bankruptcy code, rather than federal bankruptcy statutes, said Hoder.

CMA Business Credit Services is a California nonprofit corporation with approximately 2,100 member companies. CMA serves members through offices in the California cities of Burbank and San Leandro, and in Las Vegas.

Hoder told ABRN CMA is expediting the liquidation process because there are several hundred cars stuck at M2 shops.

"The problem we had is there are 27 stores, no employees and all we could do is secure these places to protect the company, as well as the customers who have cars there," said Hoder. "We don't do body shop work. We're a fiduciary liquidator. So all we could do was put guards there, change the locks and secure everything so we could carry out a plan to get these cars back to people and hopefully put new owners in place."

In order to get those cars back as quickly as possible, CMA plans to hold an auction to sell the company or its assets on Friday afternoon. "The highest bidder is going to win and hopefully they'll be in place by the first of next week and begin to contact and deal with either returning the cars, fixing the cars, whatever it is people want to do," says Hoder.

He stresses that CMA isn't auctioning off customers' cars. "There is no shortcut," he said. "This is as fast as we can go."

M2 closed its doors on Monday following a breakdown in negotiations with Caliber Collision Centers, of Irvine, Calif. The two sides had reached a tentative purchase agreement at the end of March and expected to close the deal within 45 days. M2 had agreed to sell its 27 locations, which have roughly 700 employees, including 500 collision repairers. Last Friday, the deal broke down and GE Finance, the primary creditor, froze all M2 assets.
CMA then hired a private security force to change the locks on the doors and stand guard at the facilities.

Employees at all M2 locations were sent home Monday, and in some instances, technicians were asked to leave their tools behind. Sources said technicians have since been allowed to return to the shops to remove their tools.

Angered over the way the situation unfolded, several M2 employees contacted ABRN in an effort to find out what has happened since little information appears to be funneling from company leaders. Several employees were upset last weekend when their paychecks bounced.

"When I went to the bank on Friday I was told that they could not accept the check," wrote one female employee. "Since then there has not been any news about my owed wages. Aside from my two-week pay, I'm also owed the last week that I worked. I have four kids, so I'm sure you know how much I need my earned pay."

Attempts to contact Hunt Ramsbottom, founder and chairman of the board for M2 Automotive, have been unsuccessful.

One longtime M2 employee, who asked not to be identified, said the deal with Caliber fell through when Caliber low-balled on the final price. According to the source, Caliber knew M2 was in a dire financial situation and figured they could buy the chain for far less during liquidation. "They let it run dry because they knew they could get it cheaper," he said.

When asked about the charge of low-balling in order to get a better deal Caliber President and CEO Dan Pettigrew told ABRN nothing could be further from the truth, calling it a far "messier" situation."This is the last thing we wanted to see. The last thing anyone in the industry would want to see. The fallout on the insurance side, it can't be a positive," said Pettigrew.

"Fundamentally, we just ran out of time. We were working closely to get a deal done and excited about the opportunity and the positives for both sides. But as we did the due diligence, the financial condition of the company, specifically the cash situation, was much more dire than initially presented.

"It was not a question of trying to get something on the cheap. It was how do we do a deal and not drag the entire organization down."

The anonymous employee source said the big attraction for buyers during this Friday's sale would be the Santa Monica location, which he claims is the largest body shop on the West Coast. The facility turned roughly 500-600 vehicles per month and generated nearly $1 million per month in revenues, he said.

"We were buying $350,000 worth of parts per month," the source said, adding that roughly $60,000 of that was for paint materials.

At the time the doors were locked the source said approximately 400 vehicles were on site in Santa Monica. For a financial company like GE Financial looking to recover losses, those vehicles and their subsequent repair jobs have become valuable assets and that is not making consumers happy as they wait for their vehicles to be repaired or released.

Final liquidation of M2 Automotive set for Friday
Liquidation of Santa Monica, Calif., -based M2 Automotive is on the fast
track as creditors attempt to get the most value for the chain's assets. CMA Business Credit Services (CMA) is liquidating M2 pursuant to a general assignment for the benefit of creditors, according to Bob Hoder, vice president of CMA. The process is similar to a Chapter 7 liquidating bankruptcy, but it is under a California law that mirrors the bankruptcy
code, rather than federal bankruptcy statutes, said Hoder.

http://www.abrn.com/abrn/article/articleDetail.jsp?id=157627

(courtesy www.autobodyonline.com)

(see headlines)

Toronto, April 20, 2005 -- Thanks to generous support from its private-sector partners and the Ontario government, Centennial College will be building an advanced autobody training facility at its Ashtonbee Campus in Toronto.

The Ministry of Training, Colleges and Universities approved the college's Autobody Lab Renewal proposal for monies from the Apprenticeship Enhancement Fund. The ministry is providing $531,450 towards the project, while industry partners PPG, TEC3 Innovations and their suppliers have committed to providing more than $400,000 in equipment. An additional
$100,000 worth of donations is anticipated from other donors.

The existing lab will see virtually all of its equipment replaced with the latest paint technology. The state-of-the-art facility will be used to teach apprenticeship, post-secondary and continuing education Autobody Collision Damage Repairer and Automotive Painter programs. Renovations will take place over the summer in preparation for fall 2005 classes.

For more information about Canada's largest transportation technology training centre, visit www.centennialcollege.ca/transportation

(see headlines)

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The stripped-down speedster is among several high-end vehicles, including a Porsche and Jaguar, found at the Steven Street home during a search for stolen cars.

Hamilton's BEAR auto-theft squad stumbled upon the remains of the 1967 convertible this week while they were combing through the back yard littered with mounds of vehicles, parts, motorcycles and boats. No charges have been laid.

Detective Sergeant Steve Stone said the vehicle was stolen from National Football League star Sean Farrell in Largo, Fla., in January 1991. It was driven across the Canadian border on Feb. 10, 1991 and then disappeared. Stone said the Hamilton man who brought the vehicle into Canada produced a $4,000 bill of sale and paid the taxes and duties when he cleared customs.

Farrell, had put the uninsured Corvette in storage and it was already in Canada when he realized it had been stolen. American authorities have contacted Farrell and told him his vehicle has been found.

Stone estimated the sleek sports car would have been worth $30,000 to $40,000 when Farrell owned it. But the vehicle is just a shell, stripped for parts like many of the other cars in the compound.

"It's in pieces. You could put it back together. It'd be a lot of work," said Detective George Gallant.

It's estimated that restoring the vintage roadster would cost tens of thousands of dollars. But Farrell, who is now a top financial executive, is apparently willing to spend the money to put his classic model back on the road.

Stone said the Corvette almost slipped through their hands while they were checking the vehicle identification numbers (VINs) of cars in the compound. It was no longer on the Canadian Police Intelligence Computer (CPIC). But they discovered the theft when they ran the VIN through the National Insurance Crime Bureau (NICB) in the United States.

The NICB is the counterpart of the Insurance Bureau of Canada (IBC), which first alerted Hamilton police about the east-end compound last week.

IBC investigator Ken Bass said he obtained a warrant to search the yard for three vehicles that had been reported stolen and for which insurance claims had been filed. None of the cars were found.

There are 18 vehicles in various conditions, including the remains of top-end sports cars, two boats, several motorcycles and mounds of vehicle parts in the yard.

Police said the owner of the yard, who lives on a disability pension, brought in most of the vehicles from Florida. He has been living in a two-storey house on the property for several years. He wasn't home yesterday when police came to remove the 1967 Corvette, which was lodged in a back shed.

They used a special cutting tool from the fire department to open the metal back wall of the shed to get at the Corvette.

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April 13, 2005, Ottawa, Ontario -- AIA President Ray Datt is pleased to announce that Mr. Jacques Landreville. President and Chief Executive Officer of AIA member Uni-Select Inc, has agreed to represent the automotive aftermarket on the Canadian Automotive Partnership Council.

The Canadian Automotive Partnership Council (CAPC) is an industry-led organization formed in September 2002 to address the key competitive issues facing the Canadian automotive industry. Membership comprises the CEOs of Canada's five assemblers, CEOs of Canada's four leading parts suppliers, representatives of industry associations, President of the Canadian Automotive Workers Union, President of the University of Windsor, and provincial and federal Ministers of Industry.

“Mr. Landreville’s comprehensive knowledge of the automotive aftermarket at all levels of the distribution chain make him an excellent choice to represent the interests of the industry with governments,” says AIA President Ray Datt.

Jacques Landreville has led Uni-Select Inc. for more than 14 years as President and Chief Executive Officer. Prior to joining Uni-Select Inc. he worked in the food industries sector for close to 15 years. Jacques Landreville also had a successful career in academia as the head of the MBA program for Sherbrooke University and before that as the Director of the economic and administrative sciences for the University of Quebec in Chicoutimi.

Uni-Select Inc. was created in 1968 with 12 businessmen who decided to join forces to form a purchasing group. This group has since become a large multi-service corporation which boasted a sales volume of close to $800 million in 2004. Today, Uni-Select unites more than 3,016 stores.

CAPC's Mandate

1. To identify and prioritize actions needed to strengthen the Canadian automotive industry in the short and long-term.

2. To identify the key issues and objectives in relation to the competitiveness of the industry.

3. To identify opportunities for future innovation and investment in the automotive industry, and to establish priorities and approaches for addressing them.

4. To establish objectives for the Council and to issue an annual report card on its progress towards these objectives.

5. To review an annual report by governments on Canada’s automotive industry performance and worldwide industry trends, and to benchmark performance and policies in relation to competitive countries.

Mr. Landreville replaces Robert Blair (CARQUEST Ltd.), who could not continue in his role on CAPC as he has been reassigned to new responsibilities working for CARQUEST in the United States.

The Automotive Industries Association of Canada (AIA) is the voice and resource for the automotive aftermarket industry in Canada. AIA’s mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry

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New posters and packages assist repair facilities

By urging shops to access the latest help from the industry trade association, shop owner, Tony Nigro, says " this is free information that every shop should take advantage of and use".

Tony is talking about the free:

"What you Should Know"- a poster that must be clearly displayed in all shops on the rights of workers under the Ontario Employment Standards Act Click here for poster

Grants, Incentives and Tax credits- a new package of information for shops so that owners can take advantage of incentives to hire and train more apprentices and young workers

Technician certification equivalency - a complete how-to package that can help your long-term but uncertified, technicians apply to take their collision repair mandatory trade exam- includes new pre-license training dates and what industry competencies are covered on the final exam

Environment compliance simplified kit- the well-known shop package (also found online at www.autobodyhelp.ca ) to assist shops to successfully possess a mandatory Certificate of Approval for their spray operations. Don't wait until your shop receives a Provincial Offenses Order- get the kit today!

Mandatory environmental training and WHMIS training- Call today to receive the information and registration info !

"Autobody Profitability Workbook"- this package will help shops meet compliance levels and find more customers-members only

"How to Market Your Shop to Brokers and Insurers"- a guide to building insurance industry business- members only

All these packages and more are available to shops by calling www.ciia.com at
1-866-309-4272 or info@ciia.com

HARA helps

For a printable Motorist rights poster please click here

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With a 91% increase in apprentice hirings, retention is the key for Hamilton employers

HAMILTON - A major hurdle for employers to overcome when considering tomorrow's workforce is the return on their training investment. One such barrier that causes most employers to pause is the challenge of retention. Many employers fear apprentices may not stay with them during the duration of their apprenticeship and after they have completed their apprenticeship training.

Hamilton is doing a great job in the recruitment vein. In February 2003, the Hamilton Area had 2,629 active registered apprentices. As of October 2004, the Hamilton Area had 5,037 active registered apprentices. This represents a 91% increase (almost double) in active registered apprentices in a 16-month time period (Source: Ex-officio Alliance member The Ministry of Training Colleges and Universities Workplace Training Branch). "This city also offers many top-notch educational institutions and facilities such as Mohawk College of Applied Arts and Technology, the number one trainer in Ontario of apprentices; and many of our unions to help train these apprentices," says Debbie Spence, Skilled Trades Alliance manager.

"Equally important as recruitment of apprentices is retention. A major barrier for many skilled trades employers is the fear of losing an apprentice to another employer," says Norm Byrne, Skilled Trades Alliance co-chair and Toromont CAT Parts and Service Marketing manager. "As an employer of skilled tradespeople, I believe there's a lot being done to promote most of the skilled trades as a first choice career, but my concern is that the benefits and resources for hiring and retaining apprentices has not reached all employers. It's very important that we engage the key stakeholders - employers, educators, unions and associations - to ensure we have enough tradespeople in the future."

In order to reduce the potential risk in hiring an apprentice, the Skilled Trades Alliance suggests beginning the process by investigating hiring incentives such as the New Apprentice Tax Credit (offers eligible businesses a 25 or 30 per cent refundable tax credit on wages and salaries paid after May 18, 2004 to eligible apprentices during the first 36 months of the apprenticeship, up to a maximum tax credit per apprentice of $5,000 per year over the first 36 months of the apprenticeship) or Job Connect.

Accessing these financial incentives can help remove one of the barriers to hiring an apprentice. Another low-risk resource to help employers minimize risk during their recruitment phase is to utilize the talented and enthusiastic youth of the Ontario Youth Apprenticeship Program (OYAP), which allows employers to 'try before they buy.' "It's a 'win-win' situation for both the student and the employer," explains Reece Morgan, OYAP coordinator for the Public School Board. "Students in the program work with an employer on a trial basis where they have an opportunity to 'prove' themselves." "OYAP can help to direct motivated, young people to the skilled trades at an early age. Involvement in an ongoing process will mean your business will always have a source for skilled, promotable apprenticeship candidates," says Leo Paone, OYAP coordinator for the Catholic School Board.

The Alliance encourages and supports employer associations, such as Landscape Ontario, Hamilton Autobody Repair Association, Hamilton/Halton Construction Association and Automotive Parts Manufacturers' Association, all of which provide substantial value and resources to their members. Enhanced networking and resources in the Alliance provide access to multi-trade solutions and resources. On April 13th, the Alliance is launching a new series of recruitment and retention guides and posters that take best practices and customize them to the skilled trades.

"Even though these statistics show Hamilton is increasing the number of apprentices hired by employers. We need to continue to increase the number of employers who participate in the apprenticeship system," says Spence. "As a community, we need to engage more employers to be truly successful in addressing all of our skilled trades' needs now and for the long term. Even if this means engaging one employer at a time."

Employers interested in recruiting, retaining and strengthening their skilled trades workforce should contact the Skilled Trades Alliance for resources and support at:
905-529-4160.

Media Contacts:

Debbie Spence
Skilled Trades Alliance Manager
905-529-4160
debbie.s@skilledtrades.ca

Norm Byrne
Skilled Trades Alliance co-chair and Toromont CAT Parts and Service Marketing Manager
Toromont CAT
416-667-5689
nbyrne@toromont.com

Reece Morgan
OYAP Coordinator (Hamilton-Wentworth District School Board)
905-527-5092 x 2631
rmorgan@hwdsb.on.ca

Leo Paone
OYAP Coordinator ((Hamilton-Wentworth District Catholic School Board)
905-525-2930 x 2304
paonel@hwcdsb.edu.on.ca

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MISSISSAUGA, Ontario - April 5, 2005 -- Michael Butler has been appointed to the position of National Insurance and Services Manager for PPG Refinish Canada, it was announced by Lee Smith, Director, Refinish, PPG Canada.

In his role in Insurance management, Butler will pursue new business development, develop current customers and manage all company compliance activities. In addition, he will use his understanding of the market to prepare competitive strategies. As well, he will report on CertifiedFirst performance measures and acceptance of our network by insurers.

Butler has 18 years experience in the collision repair marketplace beginning with OEM parts marketing, insurance vendor relations, and collision banner growth. He is recognized as one of Canada's leading executives in the collision repair industry and has held management roles with respect to development, promotions, training and education, marketing and insurance solutions. For the past three years, he has held the position of Vice President of Fix Auto in Ontario.

He is an Honours Graduate in Facilities Management from Seneca College of Applied Arts and Technology in Toronto and has specialized training in sales, marketing and promotions.

Butler is also a member and supporter of the ICAR Canada Public Awareness Committee, CCIF (Canadian Collision Industry Forum), IBAO (Insurance Broker Associations of Ontario), IBTR (Insurance Brokers of Toronto Region), IBAH (Insurance Brokers Association of Hamilton), the Mississauga Brokers Association, and TIWA.

His office will be located at PPG Refinish headquarters in Mississauga, Ontario.

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Mohawk College is offering a 5-day Pre-License course to assist autobody technicians in preparing for the Certificate of Qualification exam.

Ontario law states that all technicians working in the Autobody and Collision Repair trade must fall into one of two categories; they must be either a licensed tradesperson or a registered apprentice.

Pre-License training is intended to help those who may have had difficulties in writing the Certificate of Qualification exam in the past, or for technicians who simply want to increase their chances of success when facing the exam.

A main focus area of the training will be to review of the many terms and concepts of the trade. Also included in the course are hundreds of practice questions intended to sharpen the technician’s skill in correctly understanding and answering typical exam questions. It is important to note, however, that this course is NOT a replacement for the regulation 24-week Apprenticeship Training.

Taught by apprenticeship instructor Jim Miles, the course will be offered in 5 straight days beginning on Monday June 6 and finishing on Friday June 10, 2005. Classes will start at 8:30 a.m. each day and finish at 4:30 p.m. The cost will be approximately $225.00.

Anyone who is interested in attending should email Jim Miles @ jim.miles@mohawkcollege.ca or contact him by phone @ 905-575-1212 by no later than May 15, 2005.

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$12.8 MILLION ANNOUNCED FOR AUTOBODY AND MOTIVE POWER TRAINING AND FACILITIES/EQUIPMENT UPGRADING

Saying that the government's plan is to build an economy based on high skills and high standards, Ontario's Minister of Training, Colleges and Universities, announced a major investment in apprenticeship system improvements including:

$263,909 for a pre-apprenticeship program for young people in autobody and collision repair in partnership with JobConnect at Algonquin College in Ottawa.

$143,932 for a pre-apprenticeship autobody and collision repair course at Canadore College in North Bay

The Minister also announced a further investment in college enhancement programs to renew and equip college facilities and remove barriers.

$2,180,112 was allocated for the renovation and modernization of the autobody lab at Centennial College in Toronto. Replacing the outdated equipment and improving the efficiency of the lay-out will improve the quality of hands-on instruction. Other areas of updating include truck and coach technician areas and the motive power labs.

Partnering with Centennial College is PPG Canada and firm tech3. PPG Canada is donating paint mixing equipment including scales and an electronic paint identification equipment. They are also leading the way to recruit other industry partners in ensuring the goal of a leading edge autobody, collision repair and auto refinish centre to continue to attract and retain young people.

Mohawk College, Hamilton, received $2,037,427 for their motive power and truck and coach programs. Algonquin College in Ottawa also received a total of $1,343,377, in part for the auto service program. London Ontario's Fanshawe College was allocated for $1,536,305 motive power trades improvements.

Motive power and truck and coach training also received funds from the Ministry including:

$254,859 at Centennial College in co-operation with the Toronto Auto Dealers Association
$420,130 at Fanshawe College in London
$205,598 for Niagara College's program in Welland
$164,606 for Confederation College in Thunder Bay
$270,159 at Algonquin College in Ottawa
$229,065 for Windsor's St. Clair College in conjunction with JobConnect

Also announced:

Confederation College in Thunder Bay received $501,057 for their motive power trades
Canadore College- $340,442 for truck and coach training
La Cite College- $546,026 for automotive service technician and welding work upgrades
Loyalist College- $340,433 to help their automotive service technician program
St. Clair College- $1,008,515 for truck and coach and automotive service technician training
St. Lawrence College- $577,126 for their automotive service Technician training
Sir Sanford Fleming College's welding course received $442,458

Further information is available at:
http://ogov.newswire.ca/ontario/GPOE/2005/04/06/c2755.html?lmatch=&lang=_e.html

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A new relationship between I-CAR® and the Canadian Automotive Repair and Service (CARS) Council promises to make universal access to top quality training and skills enhancement a reality for the Canadian collision repair industry.

Collision industry facilities across Canada, regardless of their geographic location, will now be able to participate in training opportunities through the use of distance learning technologies and Collision TV.

Collision TV will deliver a series of the most up-to-date technical and management training programs available, directly to the workplace using televised satellite broadcast. All that is needed is a television set, a telephone, and a modest investment in satellite receiving equipment.

The content for the Collision TV series will incorporate some of the best of the existing I-CAR training program offerings in combination with additional new material. Collision TV's goal is to have the first modules of the new training programs ready for broadcast beginning in May 2005. A total of 60 I-CAR programs are to be developed over a two-year period covering a range of subjects such as Aluminum Technology, Frame Assembly Repair and Replacement, Corrosion Protection, Unibody Damage Analysis and Estimating, and Liquid/Solid Hazardous Waste Storage and Disposal to name a few.

These programs for the new training series will be exclusive to Collision TV and will not be offered in any other format.

Industry consultation is essential to curriculum development and I-CAR is working closely with industry representatives to review the training content as it evolves. The program development process is complex and includes selecting training assets from existing material, creating new content, and adapting the material for televised broadcasts. The training content is being designed for broadcast in two-hour modules and is eligible for 0.5 I-CAR Gold Class point, upon successful completion of a proctor-administrated post test.
Currently, there are over 50 collision industry facilities in Canada that are equipped to host Collision TV. New sites are already being added as industry professionals are encouraged to purchase the satellite receiving equipment to host their own training.

"I-CAR is continually looking to improve on training delivery to the collision industry and to ensure that it meets the industry's needs" noted I-CAR Executive Vice President and CEO Tom McGee. "Exploring innovative ways to expand our delivery network is important to meeting those needs. We know satellite delivery through CARS can provide us with that expanded capability."

I-CAR and CARS have forged a strong relationship based on a shared commitment to human resource development. An impressive track record of successful and innovative training initiatives has positioned both organizations as leaders in their fields.

This combination of experience, innovation, and commitment to excellence will allow Collision TV to be welcomed with enthusiasm by Canada's collision industry professionals.
For additional information and registration for I-CAR training programs call 800.422.7456 or visit www.i-car.com. To order your own satellite viewing equipment please contact Brenda Carrol with CARS at 905.709.1010.

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Hamilton, Ontario police raided a Stevens Street address earlier today and advise they found over 20 diferent vehicles in the process of dis-assembly.

Police say the vehicles included top line Mercedes-Benz vehicles and at least one Ferrari. A number of the vehicles, police said, came from Florida.

Police continue their hunt for the owner of the property.

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HAMILTON, ON - April 6, 2005: Mohawk College today received good news from the Government of Ontario. The Honourable Mary Anne Chambers, Minister of Training, Colleges and Universities, today announced that Mohawk would receive $2,037,427 from the Apprenticeship Enhancement Fund, and another $203,434 from the Pre-Apprenticeship Training Program, for a total of $2,240,851 for apprenticeship.

"Mohawk is proud to be Ontario's largest trainer of apprentices, and this funding is a much needed investment in the talents of Ontario's young people," stated Mohawk President MaryLynn West-Moynes. "We previously trained 2,645 apprentices a year, the number is rising to over 3,000, and this investment will enhance our ability to provide the best learning
possible!"

Ontario's Apprenticeship Enhancement Fund investment in Mohawk will be directed to equipment for practical training on industry standard equipment in the truck and coach technician, industrial maintenance mechanic, refrigeration and air conditioning programs, and to replace diagnostic scanners, alignment machines and hand tools for motive power trades. The investment from the Pre-Apprenticeship Training Program will focus on industrial mechanic millwrights or general mechanists in partnership with Dofasco and Job Connect.

"In our ongoing efforts to showcase skilled trades and apprenticeships as viable career options for our young people, Mohawk represents the best training available in the region," asserted Cheryl Jensen, Executive Dean, Faculty of Engineering Technology, adding "Mohawk is prepared to increase our capacity for apprenticeship training by 35% in addition, however, this will require additional capital investment by all levels of governments."

Mohawk expects to invest in the new equipment over the coming three months,to be ready for August, and a new cohort of apprenticeship trainees. Mohawk in 2004 received the Yves Landry Foundation Award for its outstanding cooperative education integrated technician apprenticeship programs, from which graduates receive both a diploma and an in-school apprenticeship training.

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The International Autobody Congress & Exposition (NACE) is pleased to announce the partnership that has been reached with two top Canadian publications, Bodyshop Magazine and L'Automobile Carrosserie et Mécanique. These Canadian publications will represent themselves as the Official Canadian NACE Show Magazines.

Canada represents NACE's leading international market segment and consistently delivers the largest number of non-U.S. attendees. Canadian attendance has remained solid over the last five years and represented 51% of the total international audience at NACE 2004.

"We are thrilled to have a partner dedicated to representing NACE to our northern neighbors. Our NACE 2005 marketing campaign will expand upon our Canadian promotions to a level that ensures this representation continues," stated Pamela Miller, NACE Marketing Manager.

The partnership with Bodyshop Magazine and L'Automobile Carrosserie et Mécanique will deliver increased exposure for NACE throughout the show's 2005 promotional cycle.

"NACE has long been the standard within the global collision repair market. It is this strong market presence that motivated us to approach the event organizers with a plan of added publicity for NACE within our Canadian borders. It is our desire to provide our readership with an up-close, personal spotlight on the benefits they can expect from attending and
supporting NACE events," added Joe Plati, publisher of Bodyshop Magazine and L'Automobile Carrosserie et Mécanique.

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Collision Repair: Change Is the Only Constant

Just as insurers have faced massive change in the auto insurance business over the past several years, so have their collision repair partners. As body shop owners and their business partners met recently for the inaugural PPG CertifiedFirst Network Conference in Calgary, change management was very much the topic of choice. And speakers say that those who can keep pace with change will reap the rewards with both their insurer partners and, more importantly, with consumers.

With more than 50 body shop representatives and their industry partners meeting in Calgary, AB for the PPG CertifiedFirst Network Conference, three themes dominated the agenda: insurance, technology and marketing.

The collision repair industry must continue to be proactive about adopting change moving forward, says Lee Smith, director of refinish for PPG Canada. Specifically, Smith cites several key technological areas where shops must focus their energies on managing change: vehicle and product technology, estimating, production, systems and claims automation.

With claims frequency on the decline, Smith says body shops face a new reality. In a recent study, two-thirds of all shops surveyed had seen their claims volumes decline, with some shops in Ontario seeing 'customer-pay' representing up to 50% of their business. However, body shops must still maintain a focus on where the majority of business is coming from.

"Who is the customer? Who pays 90% of the claims?" Smith asks. The 'insurer' remains the ultimate customer for most body shop owners, and Smith emphasizes that the goal for insurers is to minimize their costs and increase throughput of vehicles being repaired to achieve economies of scale. The key goal of a network is to provide this kind of economy of scale and consistent service levels - and network partners must be more than just
a marketing play, he adds.

SEEKING QUALITY CONTROL

Smith stresses that all insurers are looking for sustainable control of "key performance indicators" (KPIs). In their use of direct repair program (DRP) relationships, this means management of severity maintenance/reduction, estimate accuracy, quality repair and alignment of strategy, process, organization and technology.

According to Smith, there is a race on to garner commitments for claims assignments for the group who is pledged and committed to performance measures beyond in-house DRP programs.

Referencing Accenture Consulting's "Unlocking the Value in Claims" study, Smith quotes: "In an era of heightened competition, increasing customer expectations and the need to deliver greater shareholder or policyholder value, insurers are faced with significant pressure to make noticeable improvements in results." Specifically in the area of auto physical damage claims, "historically, insurers have viewed the claim function as an area
that offers considerable opportunity to address all these dimensions. Claim payments and loss adjustment expenses consume 80% of annual revenue, and claim service has always been considered a "moment of truth" in the total insurance transaction."

The Accenture study, which analyzed more than 12,000 settled claims, and included interviews with more than 5,000 claims personnel in North America and Europe, produced some dramatic findings:

* Claim settlements can be reliably reduced by up to 15% and still be fully compliant with good market conduct and high-quality customer service practices;

* More than 40% of the time spent in the claim handling process is associated with routine overhead functions that have little or no impact on the outcome of the claim or on improving customer service;

* The link between superior customer service and policyholder satisfaction is clear - better-served customers are more likely to retain their current carrier while poor service has a negative impact; and

* Technology is an essential component of a total solution that will simultaneously improve the outcome of the claim and reduce the amount of time consumed by low-value functions.

Smith adds that the objective of the research was to answer three questions: Why has no insurer clearly demonstrated a competitive advantage in claims? How much opportunity exists in claims? And how can companies achieve sustainable results?

CONTINUOUS IMPROVEMENT

Further research from The Romans Group sees the winds of change making their way through the collision repair industry. "We see the possible beginning of yet another paradigm shift developed through the early understanding and adoption of a 'total quality management process', not only within the aftermarket parts industry, but also within the broader auto body repair industry. Various quality management initiatives have been employed, such as QS 9000, ISI 9000, TS 16949, ISO 14,000 (environmental), Total Quality Management (TQM), Six Sigma, etc. As recently as a few years ago most of
these initiatives didn't even approach the radar screen with the auto body repair industry."

What about government insurance? The issues are much the same for public and private market insurers, Smith says, with both looking for performance improvement in several key areas:

* Sustainable control of KPIs
* DRP utilization/conversion
* Severity maintenance/reduction
* aftermarket parts usage
* repair versus replace labor
* average cost trend
* refinish cost trend
* Estimate accuracy
* Quality repair
* Loss of use/rentals
* Loss adjustment expenses
* Customer satisfaction indexes (CSI)
* More efficient claims handling
* Consolidated bill payment

According to Ernst & Young's insurance and actuarial advisory services, "alignment of strategy, process, organization, and technology is the key to unlocking the power of information. It can be the difference between success and failure."

So what can collision repairers do? Smith asks. He sees several steps the collision repair industry can take to improve its position vis-à-vis insurer expectations:

* Measure yourselves;
* Assist in managing the claim;
* Invest in technology enabling applications;
* Commit to continuous improvement, including measuring, comparing, and incentivizing "best of class";
* Demonstrate greater transparency with insurers, which can include automation on a national level through a network;
* Evolve KPIs; and
* Market your brand.

These key measures must be continually improved in order to meet insurers' requirement to reduce costs and increase customer service and satisfaction, Smith explains. The "game changers" in terms of performance include average estimate to repair days; throughput hours or average cycle days; and low supplement rate.

VALUE CHAIN OPPORTUNITY

The opportunity exists to examine and analyze the throughput measure in body shops - to identify where the bottlenecks are and eliminate them, as clearly there is congestion in the current process, Smith says

Inherent in the need to reduce cost is the function that "throughput is inverse to lead time". As throughput goes up, lead time goes down (see Example 1).

There are a number of problems in the current repair system, including the inefficiency inherent in visual estimates, requiring supplements and waiting delay as parts are ordered two or three times, and variability which makes scheduling difficult. These problems lead to congestion in the shop, vehicles in progress all over and low predictability as to when work will complete each phase. Inherent to this, each department is measured on labor
hours worked, regardless of whether or not the vehicle can move downstream.

Smith stresses that for the body shop, the goal should be 'complete teardown' for estimating and ordering parts prior to scheduling the job in shop. As such, a scheduling system needs to be in place that levels flow by severity, to level activity in departments upstream of paint and insure paint booth flow remains steady through the week. Within the shop, Smith notes that "variable reward systems' should be developed based on product
flow, lead time and throughput.

Reducing lead time will represent a meaningful advantage to insurance companies, including:

* Lower rental car cost;
* Lower supplement rate;
* Control of customer satisfaction indexes and severity; and
* Higher policyholder satisfaction, the ultimate goal.

MAINTAINING RENEWALS

For the policyholder, customer service is the focus, says Ken Rayner, CertifiedFirst Network's insurance relations consultant, and himself the president of a Toronto-based insurer, Omega General. For the insurer, referrals and repeat business are very important because, on average, a policyholder must be "on the books" for two years before they pay for themselves and the insurer starts to make a profit. Collision repairers can play a key role in helping brokers and insurers retain these customers & keep their renewals.

Claims frequency is down, and in one sense this represents and challenge for insurers in terms of their relationships with collision repair partners. "Insurers are having enough trouble sending business to their existing DRP relationships," Rayner says, making it all the more important to differentiate oneself as a body shop of choice.

Collision repair shops/networks can help by saving carriers overhead via technology solutions, integration of the complete value-chain and by providing a total claims solution, he adds.

The key concern for insurers it to see its clients taken care of, agrees Rick Yates, claims manager for direct insurer Meloche Monnex. The insurer has developed a "partnership philosophy" which means its looks for providers who are industry leaders and who demonstrate strong client service, quality performance/products, qualifications and compliance, ethical business operations and efficiency. Yates explains the list of criteria which goes into assessing the ability of business partners to meet each of the insurer's standards:

Client service. Highest regard for client service; clean and welcoming reception areas; client satisfaction surveys; knowledge; knowing Meloche Monnex's guidelines; communicating the process to the client; priority handling.

Quality. People; building(s); equipment; controls; process flow (how to get the vehicle in & out more efficiently and cycle times).

Industry leaders. Client service; cost control; training/apprenticeship; process flow; A voice in the industry

Qualifications/compliance. Licensing; building; equipment; staffing; environment; insurance.

Ethical. Respected in the industry; community involvement; relationships; confidentiality of information; policies; personnel; management.

Efficient. People; process flow; checklist that follows car through repair process to ensure all jobs completed; quality control; cycle time management.

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To help strengthen its role as the national voice for the Canadian collision repair industry, the Canadian Collision Repair Forum has launched a new web site, www.ccif.net. The site is full of information on things like reducing cycle time, national standards and how to choose between OEM, aftermarket and recycled parts. There are also lists of CCIF participants and details of how to get involved with CCIF as a Maple Leaf or Corporate Sponsor.

Upcoming CCIF meetings are listed on the site and on-line registration is available. The survey and polling feature will enable the industry to voice its opinion and monitor trends on issues of importance.

For further information please contact CCIF administrator, Mike Bryan at 905 726 9027 or administrator@ccif.net

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Accident Support Services Ltd., originators of Collision Reporting Centres, is proud to announce that on April 26, 2005 we will begin a 6-month pilot project with the Cornwall Community Police Service.

The Cornwall Collision Reporting Centre will be located in the Cornwall Community Police Station at 340 Pitt Street, Cornwall, Ontario.

The hours of operation will be 11:00 a.m. to 7:00 p.m., Monday through Friday.

Rather than Police attending the scene of every property damage collision, citizens will exchange information at the scene, and then have 48 hours to report the collision for vehicles driven to the Centre, while towed vehicles come directly from the scene, to the Collision Reporting Centre.

Police will continue to attend collisions involving injuries or fatalities, criminal activities, or vehicles transporting dangerous goods or police vehicles.

The Cornwall Centre will be equipped with our state of the art technology, the Collision Reporting and Occurrence Management System (CROMS), which electronically captures the driver's collision details.

Drivers will enjoy the convenience of a one-on-one interview with a trained Counselor, who enters the collision data electronically. The councilors then direct citizens to Police personnel as needed, photograph the damage to the vehicle, and apply a "Damage Reported to Police" sticker.

If an individual is going to be filing an insurance claim, they are offered the opportunity to contact their broker or insurance company directly from the Collision Reporting Centre, providing them with a "one stop service" opportunity!

Accident Support Services Int'l Ltd. helped create the model for Collision Reporting Centres, and has grown from a single location in North York 10 years ago, to 15 locations serving 12 Police jurisdictions throughout Ontario, and have proven to be the most efficient way to report a collision, collect the data and share it with the other stakeholders.

Accident Support Service's goal is to facilitate an active partnership between the Police and insurers in post accident care by providing knowledgeable advice and assistance to accident victims with empathy, integrity and availability. Through our affiliation with the insurance industry, Accident Support Services allows Law Enforcement Agencies to
reduce the administrative burdens of investigating minor automobile and property occurrences. Improved customer service and road safety are measures of our success.

There is no cost to the Police, or to the citizens for our services. The service is fully funded through the insurance industry.

For more information:
Bob Gutwein
(416) 745-3301
bgutwein@accsupport.com
Accident Support Services Int'l Ltd.
www.accsupport.com.

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TORONTO, ON -- In celebration of the 10th Anniversary of CARSTAR Automotive Canada, CARSTAR shared its vision for the future of the collision repair industry at "Inspiration Symposium 2005". Key industry partners, vendors and associates were welcomed to Toronto's Skydome, in conjunction with the 2005 Canadian International Auto Show, to hear CARSTAR Automotive Canada's senior management team recount the history of CARSTAR Automotive Canada and its rapid growth over the past 10 years.

Sam Mercanti, CARSTAR Canada President and CEO, recalled: "A decade ago, CARSTAR in Canada had no brand name, no network, no national insurance partnerships, no systems and consistency - but it did have a Vision, a Mission and a Value statement. Ten years later CARSTAR Canada repairs over 6,000 vehicles a month at 105 locations in 10 provinces, has dozens of insurance company partners and vendor partners, an industry leading average repair cost and cycle-time, nationwide CSI of 4.82 out of 5.0, 4% national
marketshare, repairing 1 in every 20 vehicles, 16% consumer brand awareness and a dedicated and quality network of CARSTAR franchisees nationally."

Mercanti also noted that, at the 10-year milestone, "the CARSTAR Pillars" support a solid foundation for future growth and success: Brand - consumer confidence; Systems - deployment and measurement; Metrics; and Compliance. Key for CARSTAR is 'consistency in repair across the country', with audits ensuring appearance; operations; physical vehicle/repair and vehicle reinspection.

Mercanti also points to the collision repair industry groundbreaking corporate "CARSTAR 401 Location" - with retail operation hours: 8am-8pm Mon.-Fri.; Saturday 9-3; Sunday 12-4 and production hours - 8am - 8pm, 7-days a week. Also CARSTAR Canada has trained over 8,000 professionals through CARSTAR University.

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Collision Solutions Network Inc. (CSN) has expanded its coverage to now include two eastern provinces. The members of Collision Associates in the Maritimes have joined CSN to become the East Coast representatives of this rapidly growing network. CSN's membership presently includes 34 shops located throughout Ontario, New Brunswick and Nova Scotia. Formed in May 2002, CSN is the fastest growing collision repair network and is continuing its expansion throughout Canada. Lorenzo D'Alessandro, President of CSN
says, "We are very excited and honoured to have shops who share the same beliefs of quality and service representing us in the East Coast. This is sure to be a very positive step forward for all. We are striving to better serve our Insurance partners by expanding our coverage, and are doing so by obtaining members who are as concerned with customer care and quality repairs as the rest of our network. The members of Collision Associates
clearly have the same values as CSN so this association only seemed natural."

"There is already tremendous synergy between our two networks and we are dedicated to working together to provide exceptional customer service and quality to the benefit of our Insurance partners and ultimately the consumer. We believe this is the right move at the right time in this rapidly changing industry. The combination of Collision Associates and CSN will result in a stronger, more dynamic presence in Atlantic Canada." says
Dana Alexander Managing Director of Collision Associates. The Collision Associate Family include; Bruce Chev Olds, Middleton NS; The Coachworks Ltd, Halifax NS; Champlain Auto Body, Moncton NB; Dana's Collision Center, Fredericton NB; Downey's Collision Center, Saint John NB; and Sarkis Collision Center, Miramichi NB.

The basic philosophies of Collision Solutions Network and Collision Associates are very similar. Both are dedicated towards improving the collision repair industry by working with their partners to provide excellent customer service, impeccable quality, and ongoing training for continuous improvement. Both companies have strived to maintain these goals
by monitoring their work through third party customer service indexing and stand behind their repairs by offering a national lifetime warranty for as long as the customer owns the vehicle.

If you like more information regarding membership within CSN, please visit www.csninc.ca or contact Larry French at 647-222-2577.

In Atlantic Canada, contact Bev Groves at 1-888-267-7844 or by e-mail : macoat@nbnet.nb.ca

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As the provincial environment Ministry looks at better handling their resources and improving on waiting time for environmental approvals for spray booths and other sources of emissions, a workshop stakeholders meeting was held recently in order to kick-off a consultation process.

This consultation process will look at how approvals and continued assurance programs could be improved.

Shops that spray paint continue to require environmental permitting (Certificates of Approval) to ensure the level of emissions from those activities is within provincial standards. Further assistance to help those shops meet and exceed the province's requirements is available in an easy-to-use format at www.autobodyhelp.ca or by calling toll-free the industry assistance line at 1-866-309-4272.

Collision repair association staff attended the meeting and were involved in discussions regarding:

How can rates of compliance be raised ?
How can the approvals program be improved to ensure greater environmental protection?
How can turn-around times for approvals be improved ?
How can the Ministry better encourage continuous improvement and pollution prevention?
How can Ministry resources be more effectively focused on the most important environmental issues ?

Comments will be forwarded to the Ministry for review and discussion. For further information please call the association's collision repair office at 1-866-309-4272 or info@ciia.com

For shops that require a Certificate of Approval, please call the office for our free assistance package.

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Repair estimates MUST be given

March 29, 2005

The new Consumer Protection Act will become law on July 30, 2005. At the same time, any aftermarket parts must be identified in writing to thecustomer.

Shops will be required to provide a written estimate prior to performing the work. They may charge a fee for giving an estimate. The fee for such as estimate must be reasonable.

Under the current Motor Vehicle Repair Act, estimates are only required if the customer asked for one. Under the new law, if a written estimate is not given, the shop cannot change for the repairs.

An exception exists where a shop may charge for repairs without first providing an estimate if:
-The shop offers to give an estimate and the customer turns down the offer
-The customer specifically authorizes a maximum amount they are willing to pay and the final cost does not exceed that amount

Customers must be told in advance if there is a fee for the estimate, and if the repair is carried out, no estimate fee may be charged under normal circumstances. As with the current law, the cost of repairs may not exceed the estimate by more than 10% unless prior authority has been obtained and properly noted.

Warranty of repairs remains 3 months or 5,000 km on new or reconditioned parts. All new non-original equipment manufacturers parts installed must be noted. There is no automatic warranty on used parts.

Shops must feature signs that explain their pricing levels and policies and how they calculate labour rates. Estimate information must also be posted.

Shops can obtain wall-size copies of the sign by contacting the collision repair association at 1-866-309-4272 or info@ciia.com

Please See: http://www.ciia.com/provinces/ontario/reg.html for the regulatory changes coming July 30, 2005

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Is Onex (www.onexcorp.com) a Collision Repair Shop Buyer?

After a one hour series of inquiries on the collision repair market in Canada to HARA staff
in March, perhaps Onex is now looking at the collision repair market as a valid investment.

"We spent well over an hour with Onex staff answering questions on vertical integration, marketplace dynamics in a customer-pay environment and the impact of preferred vendor arrangements and towing controls in urban-based Canadian markets" according to HARA's John Norris.

The investment firm has interests in several markets, including electronic manufacturing services, auto products, and healthcare. Key holdings include ClientLogic (customer service management), Celestica (electronics manufacturer), and American Medical Response and EmCare Holdings (healthcare). The company bought troubled theater chain Loews Cineplex in 2002, but sold it in 2004. It also owns 24% of beleaguered healthcare firm Magellan Health Services, which it helped bail out of Chapter 11, and has agreed to buy three aircraft plants from Boeing.

Onex is also active in investment funds and partnerships. Onex employs 102,000 with 2003 sales of $12.3 billion and 2004 sales of 16.5 billion dollars. Chairman and CEO
Gerald Schwartz controls more than half of the voting shares of Onex.

Related Companies:
Subsidiaries:
Bostrom plc (52% ownership interest, 100% voting interest); Celestica Inc. (18% ownership interest, 86% voting interest); Cineplex Entertainment Corp. (60% ownership interest); ClientLogic Corporation (70% ownership interest, 87% voting interest); Commercial Vehicle Systems, Inc. (45% ownership interest, 100% voting interest); Dura Automotive Systems Inc.(8% ownership interest, 68% voting interest); ; Galaxy Entertainment Inc.(67% ownership interest, 73% voting interest); InsLogic Corporation (55% ownership interest, 65% voting interest); J.L. French Automotive Castings, Inc.(37% ownership interest, 81% voting interest); Lantic Sugar Inc.(61% ownership interest, 75% voting interest); MAGNATRAX Corporation (53% ownership interest, 80% voting interest); ONCAP Investment Partners (25% ownership interest, 100% voting interest); Radian Communication Services Corp. (73% ownership interest, 81% voting interest); Trim Systems, Inc. (77% ownership interest, 100% voting interest)

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Mark Millson, a Dundas secondary school student attending General Brock Secondary School in Burlington, has won the Skills Canada technological competition for Ontario in auto body repair and the national level event in Winnipeg. HARA and other sponsors assisted Mark and teacher Ron Postma in funding the trip to Winnipeg where Mark won the national championship. In May, he will journey to Helsinki, Finland to compete for Canada. Mark is currently looking for training on new Autorobot equipment and Volvo C70 body shells. If you can help Mark, please contact Ron Postma at the Halton District School Board. Please read Mark's inspiring presentation given to a luncheon meeting of the Ontario Chamber of Commerce in Hamilton at their Skilled Trades stakeholder consultation meeting.

I got involved with Skills in Grade 10 at General Brock High School in Burlington, helping my teachers Ron Postma and Debbie Trimble setting up the 2002 Ontario Skills Competition in Kitchener/Waterloo. After experiencing this event, I realized how big skilled trades were and the incredible opportunity it would bring for me. After completing Grade 10 Auto Body class, I knew this was the career I wanted.

In Grade 11 with the expertise, guidance and support of Ron and Debbie, together we set our goals for the Skills Competition in 2003. After succeeding in the school and regional events I moved forward onto the Ontario Skills in Kitchener where I won gold. After receiving my medal and when I was back sitting at our table, I thought Holy Cow!! I won the gold
medal. Then realizing, Holy Cow, I have to compete at the National event in a day and a half.

At the Canadian Skills National Auto Body Orientation meeting (having just completed my four hour national training crash course), I looked around the room and realized the best youth in Canada were here. I decided to set aside the feelings of panic and just try my best. I came out just short of gold, with a silver medal. It was a great eye opening and learning experience for me. I decided then and there that I was coming back to compete in 2004. My goal for 2004 was Gold. And that's what I did; I came back and won the gold
medal at the Canadian National Skills Competition in Winnipeg.

Then the call came; I was going to Finland as a member of Team Canada. My goal for the remainder of 2004 and 2005 is to dedicate myself to my training, so I will be prepared to represent my trade and my country at the International Skills Competition in Helsinki, Finland in May.

The success I have enjoyed over the past 2 1/2 years did not happen all by itself. It started the day I was born when I came out of the hospital and my parents gave me my first toy - A 9/16" wrench - and has continued on by countless people giving of their time, money, talent, heart and expertise to teach me.

People like Gail Smyth and her staff who put in the countless hours, and I'm sure many late nights, to make sure Skills Canada Ontario can be the most successful program there is. And I can't forget my trainer/mentor/teacher and friend Ron Postma. I must also mention my employer Budd's Collision and my boss Sam who have been extremely supportive of me.

The Automotive Parts Manufacturers Association forecasts a 43% vacancy rate for skilled trades by 2007 - nearly 34,000 jobs will be available, but only 20,000 skilled workers will be available. With fewer students looking at skilled trades as a career option, we need to make skilled trades more attractive to both the students and their parents.

My concern for the future of youth in the trades is that employers must have the time, money and patience it takes to turn a student into a skilled trades person.

When you get students in the door, you need to show them how far they can get in their trade - not how to sweep a floor. I understand new people can't just jump to the top without putting in the time, but they need encouragement and incentive so that they will stay in the trade.

If you as employers can realize the value of us kids and realize that we are your workforce of tomorrow, then we are all working together for the trades that we love.

Mark Millson

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Environment Canada, has contracted HARA, the collision repair association headquartered in Hamilton, Ontario, to use their profitability audits, surveys and shop help tools to assist a First Nations area autobody and auto refinishing shops in better understanding proper waste management. Shops will be visited and association staff will work with shop managers to provide information and tips for more profitable waste management.

The province of Ontario has also entered into an agreement with HARA to supply simple-to-use assistance and web based tools to improve environmental compliance in the auto refinishing sector. HARA will also work with coating firms in Canada on the establishment of a solvent database that would help better identify new product emissions and speed up approvals of permitting for shops. HARA already provides simplified approvals assistance for auto refinish shops, and was the industry representative in the design of the National Standards and Guidelines for reducing emissions from auto refinish shops.

Association signs two contractor agreements

HARA has signed an agreement with Hine and Associates, a leading provider of auto refinish health and safety information, to provide technical assistance and health, safety and environmental issues help. The company will provide updated information and help expand the shop information features of the interactive elements of the new www.autobodyhelp.ca web site.

Fluid Media Inc., was selected by HARA to help in image branding, marketing and print management in the successful launch proposed for an expanded shop assistance program and to move more shops into better compliance activity and to highlight the advantages to shops in meeting or exceeding current standards.

For more information contact HARA or CIIA.com at 1-866-309-4272 (HARA) or at info@autobodyhelp.ca or info@ciia.com

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BASIC ESTIMATING COURSE OFFERED

Six night course teaches fundamental principles

March 2005

HARA announces that the popular basic estimating training course is back to help those shop or office employees who need assistance in estimating collision damage on cars and light trucks in Ontario.

Taught by experienced apprenticeship instructor, Jim Miles, this six night course includes, introduction to estimating, understanding vehicle construction, fundamentals of estimate writing, understanding collision manuals, additional charges and collision damage analysis.
Starting mid April for three weeks in the evening, the course is being offered in response to shop inquiries. Location is the Motive Power training facility at Mohawk College in Stoney Creek and Hawley Pontiac Buick Cadillac at 225 Dundas Street East, Mississauga.

A course outline and student information sheet is available on request. Students on the waiting list will get priority. Classes are from 6:30 to 9:30 p.m. Class size is limited so please call early to avoid disappointment. Class notes are included.

Course fee is $350.00 plus GST for trade association members and $450.00 plus GST for non-members.

Students can register by calling the Association office at (905) 664-7888 or 1-866-309-HARA (4272). Students can also register by e-mailing hara@ciia.com or registering online at www.ciia.com/estimating.html

Monday and Wednesday 6:30-9:30 pm Mohawk College, Stoney Creek

April 11, 13
April 18, 20
April 25, 27

Tuesday and Thursday 6:30-9:30 pm Hawley Pontiac Buick Cadillac, Mississauga

April 12, 14
April 19, 21
April 26, 28

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How did HARA help its members and the industry in 2004?

1) New regulations to control deceptive, unfair practices particularly in towing

2) Aided in six charges being laid against local “chasers”

3) New financial monthly newsletter from SB Partners free to members

4) Instituted regional member newsletters to provide more member assistance

5) Made two $75 manuals available free to members

6) New financing of repairs package free to members

7) Updated supplier discount program for members from NEBS

8) New rules on rebuilt airbags and painting air bag covers

9) Expanded CofA and audit assistance made available to shops

10) New rules on additional pricing for salvage vehicle inspections

11) Introduced brand appeal process for total loss vehicles

12) Web site enhancements on www.ciia.com with 2.8 million hits in 12 months

13) Offering free employment online ads for shops and members

14) Sponsored six Basic Estimating classes with discount pricing for members

15) Set up donations program to link schools with suppliers

16) Provide government with new definitions of service provider

17) Working with Halton police on new towing by-law

18) Started new www.autobodyhelp.ca online free assistance

19) Started local area meetings to assist shops

20) Start of apprentice renewal initiative

21) Working on new isocyanate control review program to better protect shops

22) New sprayc.a.r.e accreditation program proposed

23) Draft price list supplied to shops for review

24) 35th annual golf tournament with donation to local charity

25) Special insurers’ panel at October 7 special event

26) Successful introduction of online environmental training

27) Updated WHMIS training offered

28) Ongoing meetings with cabinet ministers on CISCO and Bill 186

29) Presentations to relevant groups – IBC, PAVE, OABR, CISCO, CAMPE

30) New court ordered tow storage rates set for Toronto

31) Requested to Mitchell for re-keying shop help

32) New equivalency package for trades certification updated

33) Request of ADP for rebate of funds due to October disc error

34) New 25% tax credit for hiring apprentices

35) All members receive free online news events information

36) New MOYAP style auto body course being discussed for secondary school

37) New improved benefit program announced

38) Four day meeting with MTO to update salvage brand and inspection program

39) New help package for salvage inspection for shops

40) Over 1000 students completing new training course

41) Simplified self-survey for environmental profitability now available

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Yes, It's true. The industry web site at www.ciia.com operated by HARA, for the one year period ending October 30 recorded over 2.5 million hits

This is the largest use autobody web site in North America and continues to be incredibly popular in our news event, shops and employment sections, says John Norris, HARA's Executive Director.

Hits per day are climbing to over 10,000 per day in November 2004, with over 140,000 people actually making use of the web site during the last 12 months.

Over 35 million kilobytes of information were used in the last year with users of the site reading a total of 302,000 separate pages of information.

Shops and suppliers can advertise themselves on the site by contacting Helena at info@ciia.com

All site use is recorded daily and is open for viewing at www.ciia.com/stats

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