Executives from many of the country's top auto insurers were on hand to offer opinions and insight at the annual CARSTAR industry conference held in Ottawa August 10-12. Noel Walpole, president and CEO of The Economical Insurance Group, told delegates not to be misled by the high revenues insurance companies posted in 2004. He explained the cyclical nature of the insurance industry, and pointed out that the industry's average return on equity for the last five years ranged from a low of about 2% to a high of nearly 20%. This cyclical nature of the industry creates an erosion in consumer confidence, he said, but added that the cycle doesn't have to be so dramatic. Chiding politicians and media, he suggests: "To flatten the cycle there needs to be a change to the initial reaction to high profits."

The conference also included a panel discussion with representatives from Aviva Canada Inc., The Dominion of Canada General Insurance Co., Economical and RBC Insurance. Nora Hohman, vice-president, claims, with The Dominion, stated that her company is committed to combating towing fraud and unreasonable towing fees. "We're going to spend a lot of money on legal fees, but we're going to fight it."

Regarding rental vehicles, Tony Mammone Jr., manager, claims, for RBC Insurance, suggested that customers are looking for one person to handle their claim, end to end. So, if you consider that the rental process is part of the repair process, it follows that the repairer should facilitate the rental process.

More than 300 delegates participated in the conference, representing 80% of the CARSTAR network from across the country.

"In ten years we have changed the collision repair industry in Canada from a 'no network, no partners, no trust' industry to the CARSTAR standard of a national network with benchmarking, cost containment, reduced cycle time, accurate customer service indexing, insurance and vendor partnerships and above all, trust," said Sam Mercanti, president and CEO of CARSTAR Automotive Canada.

Courtesy of www.bodyshopbiz.com

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ING Canada stated in its second quarter earnings release that "industry returns in automobile insurance are likely to exceed historical levels for the coming twelve months." The company notes that potential rate reductions and the positive impact of the reforms adopted by various governments will contribute to these high rates of return.

The December acquisition of Allianz Canada bolstered ING Canada Inc.'s second quarter profits by 30% to reach $223.6 million compared with $172.4 million for the same period last year.

"Our personal automobile insurance business performed strongly during the quarter as a result of continuing low claims frequencies, favourable reserve developments and the positive contribution of industry pools," explained ING Canada's president and CEO, Charles Dussault. He added that consumers have benefited from lower automobile premiums with an average 8.4% rate reduction so far this year.

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I-CAR announced its 2005 - 2006 International Board of Directors and Executive Committee at the 2005 I-CAR International Annual Meeting in Scottsdale, Arizona. The board of directors sets the overall strategic direction for the organization and assists in obtaining resources in support of the I-CAR mission. The board of directors is comprised of representatives from each of the following six industry segments: collision repair;
insurance; equipment, tools, and supplies; education, training, and research; vehicle manufacturers; and related industry services.

The 2005-2006 Executive Committee consists of: Chair Rod Enlow, Coordinating Committee for Automotive Repair (CCAR); Vice Chair Robby Robbs, Nobilas; Secretary/Treasurer Rick Ciesla, DaimlerChrysler; Immediate Past Chair Nick Notte, Nobilas; and John Edelen, Allstate Insurance Company.

The board also includes 16 directors: Terry Angell, Warren Tech; Vince Claudio, Caliber Collision Centers; Tom Dance, Herb's Paint & Body Shops, Director-At-Large; Jim Doherty, General Motors Corporation; Terry M. Fortner, Nationwide Insurance; Nick Gojmeric, Nick's SOS Garage Inc. & Collision Plus Auto Body Repair Centers; Rick Jazwin, Universal Technical Institute; Jerry Kottschade, Jerry's Body Shop for Automotive Service Association; Dave McClain, Ford Motor Company; Joran Olsson, Pro Spot International Inc. for Equipment & Tool Institute; Sam Pezzullo, State Farm Insurance Canada, Canadian Representative; Clark Plucinski, True2Form Collision Repair Centers, Education Foundation Representative; Rich Rosenthal, USAA; Eugene Scambray, Copart Auto Auctions; Edward T. Staquet, Lord Fusor Corporation; and Chad Sulkala, Acme Body & Paint Inc. for the Society of Collision Repair Specialists.

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Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter of 2005 totalled $2.6 million, or 5.5 percent of sales, compared to EBITDA of $2.6 million, or 6.2 percent of sales, in the second quarter of 2004. The decrease in EBITDA as a percentage of sales in the second quarter of 2005 resulted from lower operating margins in new start-up repair centers in the U.S. during the quarter.

Net earnings for the second quarter of 2005 totalled $140,411 or $0.01 per fully diluted unit compared to net earnings of $884,044 or $0.10 per fully diluted unit in the second quarter of 2004. Decreased net earnings in the second quarter of 2005 resulted primarily from higher operating costs associated with the initial opening of new repair centres, higher
amortization costs associated with definite life intangible assets recognized as part of certain acquisitions, no recognition of the benefit of income tax loss carry forward amounts, and the impact of no further allocations of the company's operating losses to Boyd Group Holdings Inc.

Distributable cash generated for the second quarter of 2005 totalled $1.34 million, while distributions paid to unitholders and dividends paid to non-controlling shareholders totalled $2.62 million for the period.

For the six months ended June 30, 2005 revenue increased 15 percent to $94.7 million compared to revenue of $82.5 million in the same period a year ago. EBITDA for the six months ended June 30, 2005 totalled $6.2 million, or 6.5 percent of sales, compared to EBITDA of $6.2 million, or 7.5 percent of sales, in the corresponding period a year ago. Net income for the six months ended June 30, 2005 totalled $1.5 million or $0.17 per fully diluted unit compared to net income of $2.4 million or $0.32 per fully diluted unit in
the same period a year ago.

Distributable cash generated for the six months ended June 30, 2005 totalled $3.8 million, while distributions paid to unitholders and dividends paid to non-controlling shareholders totalled $5.3 million for the period.

On a segmented basis, sales in Canada in the second quarter of 2005 increased 13 percent to $14.9 million compared to $13.2 million in the second quarter of 2004. Approximately half of the 2005 second quarter sales growth in Canada, or $0.8 million, resulted from new sales from the acquisitions of the remaining 50 percent interest in 1st Choice Mobile Auto Glass Dealers Inc. in August, 2004, and a repair center in Abbotsford, B.C. in January, 2005. Same store sales in Canada increased $0.9 million or 6.9 percent for the second quarter of 2005, compared to the same period a year ago.

U.S. sales in the second quarter of 2005 increased 14 percent to $32.0 million compared to $28.1 million in the second quarter a year ago. U.S. sales growth in the second quarter of 2005 was primarily attributable to $5.4 million in new sales from the Globe Amerada Glass Network, Illinois-area collision repair center start-ups, and the acquisition of two
repair facilities in Atlanta. Same store sales in the U.S. declined $1.5 million or 5.3 percent when compared to the second quarter in 2004.

Translation of U.S. dollar revenues at a weaker U.S. dollar exchange rate, relative to the Canadian dollar, during the second quarter of 2005 accounted for a $2.5 million decline in same store sales when compared to the prior year period. Excluding the impact of foreign currency translation, the acquisition of Globe Amerada Glass Network, the new Gerber Collision & Glass start-ups and Atlanta acquisitions, U.S. same store sales increased by $1.0 million or 3.4 percent compared to the second quarter a year ago.

As at June 30, 2005, the Fund had bank indebtedness of $2.7 million, compared to $0.6 million in cash and cash equivalents as at December 31, 2004. The Fund had total debt outstanding at June 30, 2005 of $43.3 million.

The presentation of convertible debentures was restated to reflect the change in accounting policy implemented in the first quarter of 2005. Total debt increased by $5.3 million, while net debt (net of cash and cash equivalents) increased by $5.9 million, primarily due to the financing of the Globe Amerada Glass Network and Abbotsford acquisitions as well as new
trading partner funding received in 2005 for start-up locations initiated in 2004 and 2005.

The Boyd Group Inc. is the largest operator of collision repair facilities in Canada and among the largest in North America. The company operates locations in the four western Canadian provinces principally under the trade names Boyd Autobody & Glass and Service Collision Repair, as well as in six U.S. states principally under the trade name Gerber Collision & Glass. The Boyd Group Inc. is estimated to generate approximately $40 billion in revenue annually.

©2005 Collision Repair Industry INSIGHT

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The Consumers' Association of Canada recently called on Insurance Corporation of British Columbia (ICBC) to make further cuts to auto insurance rates for BC drivers.

"ICBC again announced record profits," Bruce Cran, president of the association, says. "By the end of this year ICBC will be sitting on.more than a billion dollars."

ICBC recently reported a net income of $164 million for the first half of 2005, down from $167 million for the same period last year. Claims and related costs for the first six months of 2005 were $1.34 billion, a 6% increase over the first six months of 2004. Insurance premiums earned in the first half of 2005 were $1.54 billion, compared to $1.48 billion for the same period in 2004. This increase is primarily due to increased sales of optional coverage and an increase in the number of vehicles on BC's roadways.

ICBC's investments significantly contributed to net income in the first six months of 2005, increasing to $255 million from $215 million.

Cran says the reason the ICBC is holding a billion dollars rather than use the money to reduce rates is because the association is because the BC Government ordered ICBC to generate profits and retain the money rather than immediately lowering rates in order to build up its financial reserves to a level on par with private insurers. According to Cran, BC is the only province with a public auto insurance system requiring this same level of
reserves, which will ultimately result in "excessively high rates for consumers and businesses." He adds that the BC Government decided to 'level the playing field' by fixing ICBC's rates artificially high in order to enable private insurers to compete."

In an announcement associated to its rate release, Paul Taylor, ICBC president and CEO, says, "ICBC's net income stays in the company as retained earnings to absorb unexpected spikes in claims costs or unanticipated declines in investment income." He adds that the ICBC invests its retained earnings and reserves to help keep insurance rates low and stable.

Although the overall number of claims in the first half of 2005 is slightly lower than claims for the same time period in 2004 and the number of comprehensive claims declined by 3.7%, auto theft is a growing cost for ICBC policyholders. "It is too early to say if the increase in overall claims and related costs marks a changing trend," Yaylor says, "but it is an example of the volatility of the costs of claims and their impact on ICBC's bottom
line."

ICBC recently indicated that its filing with the BCUC later this summer will propose no change to its basic insurance rates for 2006. After a public process, the BCUC will determine if basic rates should remain the same, increase or decrease.

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The December acquisition of Allianz Canada has bolstered ING Canada Inc.'s second quarter profits by 30% to reach $223.6 million, or $1.67 a share compared to $172.4 million or $1.84 per share the same time last year. The Company's second quarter revenue rose 23.4% to $1.11 billion.

The purchase of the Canadian company from Munich's Allianz increased ING Canada's premiums 15% to reach $955.8 million.

Similarly moving in an upward angle is the Company's insurance-based income, which saw a rise of 3% to reach $179.8 million.

According to ING Canada, improvements are a result of an increase in personal auto due to "continuing low claims frequencies, favourable reserve developments and the positive contribution of industry pools. Consumers also continued to benefit from lower automobile premiums with an average 8.4% rate reduction so far this year."

ING also says that regardless or the claims incurred as a result of the June storms in Alberta, their personal and commercial insurance results remained strong.

However, the Company adds that sales will not necessarily "`remain at the favorable levels experienced in 2004 and thus far in 2005." The reasoning behind this statement is that the Company predicts the industry's growth over the next two years will be below ``historical levels."

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"Summer storm activity came earlier than normal this year, but our results remain strong. Rate decreases are being implemented across the country on our auto product, but government reforms are having the desired effect, allowing for a reasonable profit level. The strong results allowed for another recent rating upgrade by Standard & Poor's," said Kathy Bardswick, President and CEO of The Co-operators.

With assets of approximately $4.0 billion, Co-operators General Insurance Company is the largest Canadian-owned private sector property and casualty insurer. Co-operators General preference shares are listed on the Toronto Stock Exchange under the trading symbol CCS.PR.A. The Company is part of The Co-operators, a co-operatively owned group of Canadian companies focussing on insurance, which also provide financial security products, investment counselling and property management and development services.

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FIX Auto's customer service index (CSI) has been approved by USAA for its network of repair facilities. With the approval, USAA STARS repair facilities have the option of using the FIX Auto CSI program alongside other third-party offerings, regardless of their status as a member of the FIX Auto USA network. FIX Auto has also developed an electronic funds transfer (EFT) systems in conjunction with ADP's Financial Service Group that is used
by GEICO as part of its direct repair program. Kelly believes the EFT solution will become the standard for GEICO reimbursement to its preferred shops in the future. Users of the EFT solution can see the status of payments related to the repair work they performed. The technology also enables the insurer to request additional information to process the
payment.

FIX Auto USA also is preparing to launch an application that simplifies communication of estimate data to eliminate the concerns about the cost of re-keying that data by repair facilities. The new tool, installed on a USB memory-stick familiar to many computer users, allows repair facility and insurance company personnel to transfer estimates immediately when necessary.

Kelly believes that the technology services Fix offers its member shops, insurance company partners, and client groups such as General Motors and Nissan are key differentiators for their network. By offering selected technology services beyond the existing Fix members, the company hopes to introduce FIX's technology to a broader audience.

©2005 Collision Repair Industry INSIGHT

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After almost three years of deliberation, the Illinois Supreme Court issued its decision overturning the billion dollar Avery vs State Farm suit alleging that the insurer deceived policyholders by specifying the use of non-OEM parts for collision repairs.

Because of differing language in different policies, the court ruled that a Williamson County Circuit Court erred in certifying a nationwide class in the Avery case.

In the1999 case, a jury had decided in favor of the plaintiff resulting in a judgment against State Farm amounting to over $1 billion. In 2001, the 5th Appellate Court affirmed the ruling, leaving State Farm liable for $1.056 billion.

The Supreme Court issued its decision Thursday morning.

Download the 82 page Supreme Court decision (in Adobe Acrobat format - 231k)at:

http://www.collisionweek.com/cw/graphics/2005-0818-SFDecision.pdf

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Mitchell's stated goal is to ensure that estimators can write estimates efficiently according to their best judgment and that these estimates accurately reflect the repair procedures. The increasing acceptance of adhesives as a repair alternative by the industry led to the decision of including this information in the database, now subject to the aforementioned limitation of OEM approval. Mitchell makes no endorsement of one repair technique over another, or one type of part over another, encouraging all industry participants to follow best practices and to reference the appropriate OEM, welding, and adhesive manufacturer
information when selecting and performing any repair operation.

"Adhesive bonding is a fairly new procedure in the industry," said Jim Lindner, CEO & Chairman for Mitchell International. "While it is not universally accepted, we chose to include it in our database because of its widespread use. With this, as with similar items such as Alternate Parts, we defer to the professional judgment of those directly involved with a specific vehicle or claim to determine the most appropriate repair procedure. But it is important for us to clearly distinguish where bonding is and is not approved by the OEMs. Beginning with the August CD release, and apart from those OEM procedures for which it has been approved, all other panel-bonding options will be disabled."

Mitchell was the first database provider to supply information on emerging technologies and industry trends such as TECH-COR's sectioning labor times, SMC panel sectioning labor times, adjacent panel blending, plus developing the Refinish Materials Calculator(R) to accurately determine those same costs.

The application of panel bonding has become widespread among collision repair centers over the last several years as adhesive materials have advanced and more OEMs affirmed the validity of bonding as a repair operation. Mitchell has conducted numerous collision repair studies in working shops where the procedure was used, and was - as early as 1999 - sufficiently well recognized by industry associations such as I-CAR for it to provide training in adhesives techniques.

To complement the inclusion of panel bonding options, Mitchell has also included Procedure Pages/Reference to panel bonding techniques. Labor notes have been applied to the individual allowances indicating included/not-included operations. Users are advised that replacement labor times for panel bonding include all necessary weld applications identified by adhesive materials manufacturers and OEM guidelines. Users are also urged
to reference best practices procedures from adhesives manufacturers and/ or OEM guidelines before opting for panel bonding.

©2005 Collision Repair Industry INSIGHT

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Reacting to Mitchell International's declaration that it's estimating database now reflects repair procedures that are not universally approved, the Alliance of Automotive Service Providers/New Jersey (AASP/NJ) is calling for Mitchell and other database providers to halt any database repair procedure modifications without repair industry and OEM consultation and approval.

"Consultation with a broad portion of the collision repair community, including the OEMs, is needed to ensure that these products remain broadly accepted by all end-users, and to ensure that proper and safe repair procedures are used on consumer's autos," said Brian Vesley, Legislative Chairman of AASP/NJ. "Mitchell's announcement has the potential for forcing consumers to be reimbursed by insurers for a lesser repair than what they are entitled to. Legislative and regulatory action may have to be taken if auto repair standards can be compromised by the actions of supposedly neutral database companies."

This spring, Mitchell had introduced alternative labor times in their estimating software for the use of adhesives to replace panels that were previously welded in place by the auto manufacturer.

Tom Elder, AASP/NJ Collision Division Vice-President, is aware that an inter-association task force has been examining how best to address this issue. "The information I have been provided so far indicates that Mitchell has relied on portions of auto manufacturer recommendations and possibly an adhesive manufacturer to propose an across the board collision repair panel bonding procedure. Those OEM recommendations that favor gluing repair panels instead of welding are being paid attention to by Mitchell. Those that
prohibit or limit using adhesive bonding appear to be being ignored. If Mitchell had conferred with repair professionals performing the actual repairs, they would understand the questionable nature and problems with the controversial repair changes they are proposing."

Elder summed up the frustration over Mitchell's actions, "A database supplier is supposed to be a reference material provider. They do not claim to nor are they equipped to establish minimum repair standards or to drive repair procedures. They are supposed to develop accurate labor times for an approximation of the time a technician may spend when performing accepted repair procedures. Mitchell does not warrant or assume the liability for the safety or quality of repairs and has no business trying to declare adhesive bonding as being acceptable when a panel was originally welded to the car."

AASP/NJ insists that if Mitchell, or any adhesive manufacturer, wants the collision repair industry to accept a different attachment method from the way the original part was attached, the burden is on those parties proposing a different method to clearly establish that the procedure is equal or better than the factory method, and is a procedure which is approved by the OEM. "There are many factors which must be considered when an alternate fastening method is adopted - the material from which the parts are made,
the part's purpose and function, the longevity of the bond and paramount, of course, consumer safety," said Brian Vesley. "Responsible evaluation of a possible alternative to a welding procedure requires looking at particular components and fastening methods used on each particular model auto. Without such a process including repairer input, declaring adhesives a proper method for use with different parts on different materials is irrational."

AASP/NJ will assist in the evaluation of new repair methods so that proper and safe repairs are not compromised in the name of cost savings or increased product sales. "This cannot be tolerated without strong objections on behalf of our members and their customers," added Elder.

(Courtesy of Collisionweek)

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Overall the company said its coatings business saw slower growth in mature markets. Revenues were up 7 percent to EUR 1,502 million from EUR 1,403 million in 2004, with autonomous growth at 4 percent - prices up 6 percent and volumes down 2 percent, mainly in Europe.

Akzo reported that its car refinishes business saw some signs of recovery, with the company's restructuring plan still ongoing.

Commenting on the Company's second quarter 2005 figures, Rob Frohn, Akzo Nobel's CFO said, "Pressure on Coatings margins continued, although the impact of raw materials costs was increasingly offset by successful price increases. Market conditions in Europe were difficult; Asia continues to be a growth story."

(Courtesy of Collisionweek)

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The company attributed the gains to strong same store sales, acquisitions in the Paint Stores and Consumer Segments (Duron, Inc. and Paint Sundry Brands Corporation) and improvement in the Automotive Finishes and International Coatings Segments.

Net sales in the Automotive Finishes Segment increased 9.2 percent in the quarter to $143.6 million. The sales increases were due primarily to the impact of favorable currency exchange rates (contributing 3.1 percent) and selling price increases.

Operating profit of this segment improved 7.6 percent to $17.5 million in the quarter and 15.1 percent to $32.5 million in the first six months. This Segment's operating profit in the first half of the year increased as a percent to net sales to 11.9 percent from 11.2 percent last year. The Segment's operating profit was favorably impacted by effective expense
control and increased sales that partially offset significant increases in raw material costs.

Commenting on the second quarter results, Christopher M. Connor, Chairman, President and Chief Executive Officer, said, "We are encouraged by the steady improvements in sales and operational performance of our Automotive Finishes and International Coatings Segments."

(courtesy of Collisionweek)

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Second quarter net income was $231 million, including one-time charges.

"We not only generated record sales for any quarter, we also enjoyed one of our best quarterly earnings performances ever," said Charles E. Bunch, chairman and chief executive officer. "In addition, we made progress in restoring our coatings margins and expect this improvement to accelerate the remainder of the year.

"While the global economy shows signs of moderating, we see continued strength in our coatings and chemicals segments, which achieved record sales each of the past two quarters. This measurable proof validates our earnings growth strategies and positions PPG to continue generating shareholder returns."

Coatings sales increased $96 million, or 7 percent, as a result of improved selling prices across all businesses except automotive, the impact of foreign currencies and higher volumes in architectural, aerospace and automotive. Operating earnings were down $14 million largely because of the impact of inflation, primarily raw materials, which exceeded the benefits of higher selling prices, higher volumes, slightly better costs and the impact
of foreign currencies.

Glass sales decreased $3 million, or 1 percent, as lower selling prices and lower volumes across all businesses except automotive replacement glass exceeded the impact of foreign currencies.

(courtesy of Collisionweek)

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2005 AWARDS OF EXCELLENCE RECIPIENTS FOR YVES LANDRY FOUNDATION

Toronto, Ontario-August 15- The Yves Landry Foundation is pleased to announce the recipients of their 2005 Awards of Excellence. Awards will be presented at our 6th Annual STARS Technological Education Awards Gala (Thursday, October 20, 2005, The Westin Harbour Castle, Metropolitan Ballroom, Conference Building, One Harbour Square, Toronto).

The Awards recognize those individuals and businesses that best exemplify the vision of the late Yves Landry, Chairman, President and CEO of Chrysler Canada (1990-1998), of forging a link between business, education and government, and promoting technological education and skills training in order to address the upcoming shortages that industry will be facing.

PERSON OF THE YEAR

Frank Hasenfratz, Chairman of the Board, Linamar Corporation, Guelph, ON.

Local contact: Linzie Brown (519.836.7550; linzie.brown@linamar.com).

COMPANY OF THE YEAR

Valiant Corporation, Windsor, ON. Accepting for Valiant Corporation will be Michael G. Solcz, Chairman.

Local contact: Mike Moore (519.974.5226; mike.moore@valiantmachine.com).

PROGRAM OF THE YEAR

Ford Centre for Excellence in Manufacturing (FCEM), St. Clair College, Windsor, ON. Accepting for FCEM/St. Clair College will be Dr. John A. Strasser, President.

Local contact: Ann Hetherington (519.972.2727, ext. 2775; hetherington@stclaircollege.ca

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CALGARY, AB - CARSTAR Automotive Canada is pleased to announce its sponsorship of the Soleon, a solar-powered car engineered by students at the University of Calgary. The vehicle, whose body was custom painted by the CARSTAR location in Inglewood, Calgary will compete in the North American Solar Challenge race from July 17th through July 27th.

The North American Solar Challenge began July 17th in Austin, Texas and is scheduled to finish in Calgary on July 27th. It is the longest solar car race in the world, covering 4,000 kilometres. The cars will race to a top speed of about 100 km/h, although the vehicles could easily reach speeds of up to 140 km/h when cruising downhill in optimum conditions. Twenty-eight student teams from North American universities and colleges will race their
sleek, futuristic, solar-powered cars much to the delight of onlookers.

"We are very excited about our involvement with this unique campaign," said Matthew Stathonikos, CARSTAR Automotive Canada, "We are truly inspired by the commitment and the enthusiasm the students bring to this project, and we wish them the best of luck in the race." CARSTAR custom painted both the race vehicle and the prototype vehicle.

The Soleon is powered by 570 solar cells, has a five-horsepower motor and a top speed of about 140 km/h. It is five metres long and 1.8 metres wide, or about the same dimensions as a family sedan. Roughly $300,000 and 12,000 hours of labour have gone into the project, which is the largest that University of Calgary students have ever mounted.

Fans can chart the progress of the solar car racers using GPS technology, live, via the solar car website at www.calgarysolarteam.ca, The site also offers further details on the race, driver profiles and information about sustainable energy.

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Beginning in January 2006, a new partnership between DuPont Performance Coatings and the Canadian Automotive Repair and Service (CARS) Council will provide DuPont customers and distributors across the country with training programs via satellite.

Using the CARS interactive distance-learning network, DuPont instructors will lead live training courses suited to this format which will be broadcast to large screens located at a number of trade and vocational schools located in both urban and rural centres. A phone link will allow participants to become involved in the interactive process.

"We welcome the opportunity to be a part of CARS' new collision repair industry training initiative, which addresses some of our customers' key concerns," states DuPont's national training supervisor Jennifer Doyle.

"Course participants will receive the highest quality of instruction from training professionals at a location closer to home, meaning less travel, less time away from the job, and reduced cost. I believe that this format will become a significant part of our overall training offering - it offers a cost-effective way for customers to improve the knowledge and skills of their employees and the overall success of their operation."

Details on courses and locations will be released with DuPont' 2006 training schedule.

CARS is a not-for-profit organization established to serve the human resource, training and development needs of the Canadian truck and car repair and service industry.

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The Automotive Recyclers of Canada (ARC) and the Automotive Recyclers Association (ARA) have signed a co-operation agreement that lays the foundation for the two groups to work more closely on issues of joint concern. The agreement formalizes a relationship that had been developing over the past year.

"Our relationship with ARA helps obtain crucial information quickly, and helps to broadcast to the world the unique opportunities and issues arising out of Canada," says Steve Fletcher, managing director of ARC.

An example of mutual cooperation between the two groups is the ARA Damage Codes. ARA is working with both the Collision Industry Conference (CIC) in the US and the Canadian Collision Industry Forum (CCIF) to adopt the same standard.

ARA is an international association of auto recyclers, representing more than 1000 recyclers in 12 countries.

ARC is represents more than 425 professional auto recyclers in Canada, through its member associations

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DuPont establishes training centre at New Brunswick college

8/3/2005

DuPont Performance Coatings has signed a five-year agreement with New Brunswick Community College (NBCC), Saint John campus, to be the sole DuPont training centre for southern New Brunswick and Prince Edward Island.

The centre will be part of the Motor Vehicle Body Repairer and Painter (MVR) program, and will train users and distributors of DuPont finishes. Students in the program will receive training on the most up-to-date equipment and materials, and instructors will also receive support, marketing materials and training from DuPont.

The agreement provides equal benefits to both the college and DuPont. DuPont Performance Coatings Training Manager Jennifer Doyle comments, "We will benefit from increased exposure for our products, but more importantly, the College provides a modern, safe and environmentally friendly facility which our customers should find much more convenient."

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Local associations will benefit from workshops planned in September through ciia.com, the body shop assistance people, who operate the www.ciia.com collision industry web site.

Workshops are offered through local collision repair trade associations and feature new benefit programs, environmental and profitability programs.

Special guests will be speaking at all workshops, including a September 14th Oshweken, Six Nations workshop to help native shops with handling their specific environmental and profit issues.

Workshops are planned for:

Thunder Bay
Ottawa
London
Sudbury
Burlington
Niagara
Durham Region

For more information on dates and locations please see www.ciia.com/provinces/ontario/associations.html

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The London-area autobody association, or OABR (Organization of Auto Body Rebuilders), held a major kick-off meeting at the Marconi Club with over 25 of their local members in attendance.

The hot meal event kick-started the new OABR activities and guest speaker presentations.

The London- area association now uses the services of www.ciia.com, an autobody and collision shop assistance group that operates the industry web site.

They are assisting the association in administration, meeting organization, communications work and send e-mailed and fax information to local shops on a regular basis, working with and helping shops.

The event heard from speakers;

Wes Killins, Director of CISCO (Collision Industry Standards Council of Ontario), representing shops in Ontario with an update on Bill 186, the Collision Repair Standard Act (2002).

Gerald Robinson, representative of the Ontario Service Safety Alliance, on free health and safety audits and assistance offered to help shops reduce injuries and improve compliance.

Jay Perry, an approved benefit vendor, outlining how ABC Consulting can generate more profits for individual shops and how his firm only receives compensation if the shop increases its' profitability.

John Norris, from www.ciia.com on their successes and industry updates.

Local London-area shops can join the local association and receive free manuals, incentive programs, compliance assistance and a new benefit program by calling 1-866-309-4272.

Another event is planned for the Fall

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The furious debate over how much Ontarians really pay for auto insurance reached one conclusion yesterday -- consumers should shop around.

The Canadian Consumers' Association reported yesterday that Ontario's rates are, on average, 45 per cent higher than in British Columbia. And while Hamilton drivers pay the lowest rates in the Greater Toronto Area, their premiums are still far higher than in other Ontario cities. You can usually find a better deal. The Consumers group study almost 4 million quotes for insurance.

"Most drivers find the average company, rather than the lowest rate," sys Lee Romanov, founder of the Consumers' Guide to Insurance. She said most insurance agents and brokers are tied to just four or five carriers and some handle just one or two. That means many consumers aren't finding the best deal.

Bruce Cran, president of the Consumers' Association of Canada, said owners in Ontario are getting burned.

He says studies show a third of Ontario's car accidents aren't reported to insurance companies

"Consumers in Ontario have been clearly harmed by outrageous price increases for auto insurance over the past three years," says Cran, whose group released a report comparing rates in Ontario, Alberta and British Columbia.

Mark Yakabuski, vice-president of the Insurance Bureau of Canada, said the consumers report shows that there are outlets among Ontario's 150 insurers that offer comparable rates to the British Columbia's government-run monopoly.

"What I want to encourage people to do is indeed take advantage of what we have here in Ontario, a very competitive market," Yakabuski said.

"Look at the many, many other choices that you have before you make your final decisions as to whether you want to go with this company or that company."

The two sides did not agree on much else.

By studying close to four-million quotes in Ontario, the association concluded the province's average insurance premium is $2,384, compared to $1,325 in British Columbia and $1,715 in Alberta.

But Yakabuski says the real number is more like $1,279 and that rates have fallen by 15 per cent -- about $200 a vehicle -- over the past 18 months.

He said the consumers report didn't take into account discounts offered to customers with more than one car, home insurance policies with the same company or rewards for being a loyal customer.

The Ontario government, which pledged to reduce auto insurance rates when they were elected in 2003, also presented numbers in line with industry figures.

The average Ontarian paid $1,391 for insurance in 2004, with 2005 rates projected at $1,379, a finance ministry spokesman said yesterday.

Beyond the provincial differences, the consumers report found vast gaps between premiums paid in Ontario cities.

Hamilton car owners pay almost $600 less for insurance than some drivers in the Greater Toronto Area but more than those in Guelph, London, Ottawa, Windsor and 21/2 times more than drivers in Victoria, B.C.

Perhaps even more eye-popping is knowing that the same driver with one ticket and one accident can pay between $2,051 and $17,468 for insurance in Ontario.

The Ontario government released those numbers in its 2005 rate guide for insurance in February. It showed a 19-year-old driver with a clean record could pay anywhere from $5,750 to $15,551 and a 40-year-old with no accidents or tickets pays between $1,763 and $6,992.

Romanow says many companies charge huge rates for business they aren't really interested in having.

"Basically, the company is saying, 'Go away, we don't want your type of business.' Instead of knocking on your door and telling you to your face, they set these huge rates."

But some consumers are paying that premium, perhaps out of a misguided sense of loyalty to a particular company or the belief they can't do any better. She said everyone should compare their premiums every time their renewal comes up.

"Ontario is paying 45 per cent more than B.C. because people aren't getting the low rates. Consumers really need to wake up."

Yakabuski defended Ontario's free-market system, saying the province's claims payout is "enormously more generous" than those in British Columbia. The average claims payment, including injury and property damage, is close to $9,000 in Ontario and less than $2,400 in B.C., according to the bureau.

Yakabuski says Ontario's auto insurers paid out $1.5 billion in health-care costs, $3 billion in vehicle repairs and $1.6 billion defending people being sued.

Cran counters payouts are higher in Ontario because a $30,000 deductible on personal injuries wiped out any small claims, and Ontario drivers are "scared out of their tree about reporting fender-benders."

He says studies show a third of Ontario's car accidents aren't reported to insurance companies.

Yakabuski also said the availability of insurance has improved dramatically. In March 2004, there were more than 226,000 vehicles insured through Facility Association -- the last resort for drivers who can't find regular coverage.

Last month, that was down to 36,868.

"Premiums can drop from $5,000 a year to $1,700."

For a copy of the Consumer's Association report, see:
http://www.consumer.ca/pdfs/cac_2005_study_ontario_july_18_2005_.pdf

Thanks to mmacleod@thespec.com 905-526-3408 with files from The Canadian Press

AVERAGE ANNUAL AUTO INSURANCE RATES BY CITY

York $3,124
North York $3,005
Etobicoke $2,966
Toronto $2,950
Scarborough $2,912
East York $2,867
Brampton $2,788
Thornhill $2,735
Mississauga $2,718
Hamilton $2,537
Windsor $2,378
London $2,246
Kitchener-Waterloo $2,157
Guelph $2,150
Barrie $2,147
Ottawa $1,971
Kingston $1,934
Edmonton $1,865
Calgary $1,753
Vancouver $1,493
Victoria $944

(see headlines)

Ontario drivers are paying up to 45 per cent more for auto insurance than their counterparts in British Columbia, according to a study by the Consumers' Association of Canada.

The average annual rate in Ontario is $2,383, compared to $1,324 in B.C., suggests the study. And those same results were found not only in Toronto, but also in cities such as Sudbury, Windsor, Guelph and London.

"Consumers in Ontario have been clearly harmed by outrageous price increases for auto insurance over the past three years,'' said association president Bruce Cran in a statement.

However, the Insurance Bureau of Canada disagrees. It says that premiums in Ontario are $1,279, and that premiums are down 15 per cent since November 2003.

"Clearly, free market, private competition is alive and well in Ontario," said Mark Yakabuski, the vice-president of IBC.

He added that the average claim paid out in Ontario is $8,878. compared to $2,391 in B.C., where the product is delivered by a government monopoly.

"Very simply, you get a lot more for your money in Ontario," said Yakabuski.

Cran disagrees. He said: "Victims of crashes have also been impacted by the Ontario government's actions of imposing a $30,000 deductible on benefits paid to them."

"Innocent victims of crashes have suffered at the hands of the insurance industry while this industry continues to put billions of dollars of profits in its pockets.''

Cran blames the high premiums on so-called independent brokers, who are choosing only to sell products from one or two insurance companies.

"An overwhelming compelling message has emerged from the Study for consumers in Ontario," said Cran. "Shop widely among many brokers and use the Internet to find the lowest auto insurance quote."

(see headlines)

By John Norris, Executive Director, HARA

The Collision Industry Information and Assistance (www.ciia.com) web site, operated by the Hamilton District Autobody Repair Association, handles over 10,000 hits a day. The phone lines often field 30 calls a day and at least 60 emails. Over 400 shops call regularly for environmental help with training, certification assistance, wage incentive information, hiring questions and inquiries from insurance contact lists to manuals on how to market to brokers all the way to requests for guest speakers at their local schools to getting a fax number to send copies of abusive towing invoices.

This is how a professional collision repair trade association works.

Individual association mandates may be different but their passion and vision should be clear and consistent: Help shops, serve the interests of repairers, represent them and provide opportunities to move member interests forward.

Let's face it -- it's a tough marketplace our there and many shops are struggling to stay profitable. They need more help right now and should recognize that although their voice may not be strong individually, their association's voice can be loud, active and successful.

Why then are there so few shop members in their trade associations? One reason is lack of communications. And it goes both ways. Some repairers only hear from their trade association when once a year an invoice shows up on the fax machine. Good professional associations communicate by holding regular neighborhood style meetings or surveys to gain better incite into shop needs -- yet often shops don't show up at meetings or respond to the very associations trying to help them.

Perhaps, shops haven't yet realized the practical benefits of membership in an active association. Can shop concerns be addressed? What's in it for a shop to be a member?

GAUGE YOUR REPRESENTATION

You should always ask yourself the two basic association membership questions:

What can you do for me now and what can you do for the industry in the future?

Most professional associations can provide you their answers quickly and the better associations have so many answers that it often has grown to a list of advantages for the shop.

For instance right now, do they provide services such as benefit programs, garage insurance, uniform and product discounts, office and stationary products discounts, forms, brochures, posters, manuals, training courses, available tax credits or grants that you can use right now to cut your immediate costs and put more money in your till?

What about down the road? Can they prove to you that they are handling the meetings and writing the letters and building the necessary support with media, insurers, suppliers or government? Does the association have the respect and trust it requires to solve your issues? For instance, can they show you or post on their web site or newsletters the meeting presentations or script or news releases showing their successes in addressing your concerns.

TOUGH SCHEDULE

Many professional associations struggle with the daily frustration that they are taking time away from working on needed industry projects that can help shops and instead, are out trying to raise funds to continue on with their good work- from the very shops they are trying to help. If shops better supported their professional trade associations with their membership dues, because of their recognized value for the industry, associations could solve your industry issues quicker.

If your professional trade association is working that hard for you, you should be working hard for them. Their membership dues are fair and you should not only pay their invoice when it arrives, but be calling them to ask to become a more active member. Volunteer to be school speaker, a letter writer or employer/mentor for young students interested in working in our trade on the association's behalf. Only through your help in adding to the
common strength can your professional association make your voice, join with other voices, and become stronger, more effective and listened to where it counts.

John Norris is Executive Director of HARA, the largest local collision repair and auto refinish industry trade association in North America, operating from Hamilton, Ontario. The association also co-chairs the Environmental Compliance Assistance program with government to reduce costs, improve compliance and provide easier help tools for shops at
www.autobodyhelp.ca and 1-866-309-4272.

HARA's mandate and industry objectives and their successes in meeting those objectives are featured at: http://www.ciia.com/provinces/ontario/hara.html

(courtesy of BODYSHOP magazine)

(see headlines)

HARA pricing recommendations June 2005 sent to auto insurers in Ontario

June 7, 2005

Dear Insurance Company Claims Manager:

Since 2002, electricity prices have skyrocketed by 32%. Auto insurance premiums, although slowing going down now, rose some 30% in 2002 and 2003. Shops complain that commercial garage insurance premiums have risen almost 40%.

Collision repair facilities in our coverage area have experienced significant increased expense in their product purchases and operating expenses.

With the continued increase in natural gas and heating costs, and a further increase in coatings costs from Canadian suppliers just announced, shops are continually being burdened by increased costs of operating.

HARA has surveyed shop pricing and cost levels in Western Canada and in particular the increased costs and re-imbursement being paid in British Columbia and Manitoba and have examined their pricing formula to ensure a balanced and fair approach to any recommended pricing in Ontario.

Shops are not required to follow any price guidelines that we may recommend and no shop will suffer in their business relationship with our association should they decide not to follow our pricing recommendations.

For facilities that meet the standard accreditation levels as identified in the CISCO, CCIF or Toronto By-Law standards, we are recommending the following pricing;

Body, collision, refinishing hourly rate $55.00

Paint and prep materials hourly rate $35.00

Shop materials rate (as itemized)

Hazardous waste disposal fee $10.00 per vehicle

Administration/communications fee $55.00 per vehicle

Mandatory branding fee (if required) $55.00 per vehicle

Damage appraisal fee $55.00 per vehicle (refunded on work done)

Vehicle storage
-$30 per day (outside)
-$50 per day (inside as required or security)

Detailing vehicle $25.00

Oxygen/acetylene/welding fee $3.95

Your understanding of our increased costs is appreciated. Please contact me if you have any questions.

Yours truly,

John Norris

Executive Director

(see headlines)

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

(see headlines)

NEW HARA CONTACT INFORMATION

The HARA office has new phone numbers. We apologize for any recent inconvenience. We are eager to hear from you and help you with any problems or needs.

Our new contact information is below:

Hamilton District Autobody Repair Association (HARA)
mailing: P.O. Box 47594, Centre Mall,
Hamilton, Ontario
L8H 7S7

Office: 350 Dosco Drive, 2nd Floor
Stoney Creek, Ontario
L8E 2N5

Phone (905) 664-7888
Fax (905) 664-3340
Toll free 1-866-309-4272 (HARA)

E-mail hara@ciia.com

Best wishes,

John Norris

(see headlines)