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News, Events, Canada
December 2004

 


Insight Magazine
Click on the month below for News / Events in 2006
May
June
Click on the month below for News / Events in 2005
Click on the month below for News / Events in 2004

In order of most recent

COLLISION TV INTERACTIVE DISTANCE COLLISION REPAIR TRAINING AVAILABLE..

ECOLOCYCLE INC. FINED A TOTAL OF $4,000 FOR NON-COMPLIANCE WITH ENVIRONMENTAL..

December 2004
Twelve Arrested in Los Angeles Auto Collision Fraud Ring

Task force investigators estimate that $1.5 million in fraudulent insurance claims have been generated by the alleged crime ring as a result of at least 75 staged auto collisions over the past year. This ring operated primarily on busy Los Angeles County freeways. *
Auto Insurance Fraud Task Force (AIFTF) members arrested 13 suspects on Dec.17, 2004. Four suspects remain at large. Task force actions included executing ten search warrants in Los Angeles on five law offices, two medical clinics and three private residences. Previous search warrants allowed investigators to recover items such as fraudulent documents, falsified insurance paperwork, and information detailing many of the staged collisions. Numerous victim interviews were also conducted, as well as photographic line-ups which implicated several suspects involved in multiple collisions.

The AIFTF investigation began in March 2004 after Task Force investigators received information about a staged auto collision ring. Authorities said it detailed what is a typical maneuver for similar types of rings, where they allegedly orchestrate a collision that appears to be the fault of an innocent victim, then file fraudulent insurance claims for financial gain. They reportedly target vehicles which they feel would be fully insured.

Following the collisions, the parties involved either exchange information with the innocent driver, or the police (usually CHP) arrive and handle the collision report.

Complicit legal offices and medical clinics, typically attorneys and chiropractors themselves, allegedly work with the involved parties to indicate injuries on the proper forms and use the fake identities throughout the claim. The attorneys subsequently submit the claims to the insurance companies and refer the suspect drivers and passengers to medical clinics.

Suspects arrested in connection with the scam face various charges from an 85-count complaint, ranging from insurance fraud to assault with a deadly weapon. All suspects reside in Los Angeles. Those arrested include Beatriz Mejia Campos, Patricia Cardenas, Edgar Leonel Catalan, Sonia Cisneros, Jabbar Enrique Moulton, Inocente Nunez, Adilia Palacios, Yolanda Palomares, Evelyn Xiomara Torrento, Francesca Vidaur, Mary Kathryn Vines, Denise Wilds and Ramiro Zavala.

Several suspects are not yet in custody, including Rodrigo Daniel Flores, Roberto Edgardo Tobar Barraza, Constantino Guillen Pineda, and Jose Carlos Vera.

The case is being prosecuted by the LA District Attorney's Auto Insurance Fraud Division. Anyone who suspects they may have been a victim of these crimes, or has information about the whereabouts of suspects still at large, should call the Department of Insurance hotline at 1-800-927-HELP.

(see headlines)

 

THE BOYD GROUP INCOME FUND

Boyd Group Income Fund announces December 2004 cash distribution

WINNIPEG, MB, Dec. 16 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) today announced a cash distribution for the month of December 2004 of $0.095 per trust unit. The distribution will be payable on January 27, 2005 to unitholders of record at the close of business on December 31, 2004.

Boyd Group Income Fund's policy is to pay monthly distributions to unitholders of record on or around the last business day of the month.

Holders of units who are non-residents of Canada will be subject to withholding taxes in respect of any distributions made by Boyd Group Income Fund.

The Fund is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including an interest in The Boyd Group Inc. and its subsidiaries. The Boyd Group Inc. is the largest operator of collision repair facilities in Canada and is among the largest in North America.

(see headlines)

 

Lexus announces industry first: vehicle service history available online

December 22, 2004

TORONTO, Dec. 22 /CNW/ - Lexus today announced an industry first for its Canadian website www.lexus.ca - through their personalized password-protected Owner Home Page, Club Lexus owners can now access Lexus dealer service information for their vehicle online.

From the time they take ownership of their Lexus vehicle, owners can find service information that includes the service date, service description, parts descriptions, repair order number and the odometer reading at the time of service. Owners of a pre-owned Lexus will even be able to access the previous owner's last service date information and odometer reading.

"Lexus is totally committed to providing an exceptional ownership experience," said Stuart Payne, Director responsible for Lexus in Canada. "Our goal is to have the best website in the industry in Canada. Our Owner Home Page offers Club Lexus members a user-friendly, convenient, informative yet secure way to get the information whenever they need it and
wherever they need it."

The Club Lexus link at www.lexus.ca also allows owners to track the status of their factory warranty or Extra Care Protection (ECP) coverage, and obtain their current personal financing information from Lexus Financial Services.

(see headlines)

 

Autoprise, Inc. expands its staff team into Ontario

Autoprise Inc., an innovator in the field of technology solutions specializing in process automation and transaction management for the automotive collision repair industry, announced today the expansion of its staff team with the addition of its first Ontario based Account Executive, Cameron Kerr. With over 10 years of automotive industry experience ranging from ECARS to Enterprise Rent-A-Car, Kerr brings his strong individual drive
and established relationships to a unique team that is setting the benchmark in a rapidly changing business environment.

"We're very excited to have Cameron on board with Autoprise. Cameron personifies our corporate values and has a proven track record of developing exceptional business growth, profitability and customer loyalty in the Ontario marketplace," said Ryan Volberg, Chief Executive Officer of Autoprise. "He has spent the past decade managing the growth and development of Enterprise's southwestern Ontario operations. After a lengthy selection
process Autoprise has found an individual in Cameron who will provide rock solid business development and customer service support to the Canadian marketplace. Cameron fits our collision repair solutions team ideally."

Over the last decade, while forging relationships with the intricate network of collision repair facilities, insurance companies and automotive dealerships, Kerr developed a reputation for establishing mutually beneficial solutions for the automotive industry.

"In the world of technology, it is our relationships with our customers that define the success of Autoprise, and Cameron upholds our belief in the value added proposition," said Volberg. "Autoprise's products have always been founded on leading edge technologies, but their true value is derived from the business outcomes they empower our customers to achieve. The human element remains the linchpin for achieving results and Cameron's experience will be greatly beneficial to our clients."

Contact
Kevin Froese
Vice President of Sales and Product Marketing
Phone: (604) 408-4306 ext. 106
E-mail: kfroese@autoprise.com

(see headlines)

 

I-CAR To Hold Instructor Event At Tech Centre

I-CAR instructors will be the featured guests during the first ever I-CAR Instructor Event that will take place at the I-CAR Tech Centre and surrounding Appleton, Wisconsin area February 24 -27, 2005. This event for I-CAR instructors is not designed to replace future regional conferences that are geared towards committee members, instructors and volunteers but rather to provide an agenda focused on the needs of the instructor.

The I-CAR Instructor Event agenda includes:

Thursday, February 24

Registration - Radisson Paper Valley Hotel
Miller Electric tour
Regional breakout meetings
Welcome reception and dinner

Friday, February 25

I-CAR Tech Centre tours
Breakout sessions
Aluminum technology seminar
Instructor Training Evaluation (ITE) review seminar
Video shooting seminar
Shipping processes and fulfillment seminar

Saturday, February 26

Morning breakout sessions
Instructor Qualification Workshop (IQW) refresher
Simulator boards
Round table discussions
Train-the-trainer sessions
WebEx demonstration
Emergency and Extrication Safety Training overview
Afternoon breakout sessions
IQW refresher
Future technologies
Adult learners informational session
Train-the-trainer sessions
Psychology of an adult learner
Round table discussions
Learning environment
Understanding I-CAR resources
Alternate delivery strategies
Dinner - special guest speaker, Vince Lombardi, Jr.

"This year, I-CAR wanted to hold this special event for I-CAR instructors to provide them with a networking and learning opportunity that goes beyond what we can accomplish on a regional level," said Rick Tuuri, I-CAR Director of Business Development and North American Operations. "While we will not be conducting regional conferences and the Canada national meeting this year, as have they have been held in the past, we will continue with them next fall or winter. Similar to what we are doing with the 2005 I-CAR Instructor Event, our goal will be to provide a new and unique approach to the regional
conferences and the Canada national meeting next year to support, recognize, and show our appreciation to the I-CAR volunteers and committee members for all that they do for the collision industry."

"This event will strengthen the I-CAR instructor network by introducing them to the technical development staff, learning more about the program development process, participating in program development seminars, and attending technical or presentation seminars. Instructors from across North America will also have an opportunity to network with each other," said I-CAR Instructor Support Manager Todd Hank. "I-CAR has become the collision industry training leader due to the efforts of the instructors, committee members, and volunteers. Events such as this and future regional conferences are conducted specifically to assist and recognize their continued efforts."

Additional information regarding the Instructor Event 2005 will be posted online at www.i-car.com when available and sent via e-mail to current I-CAR instructors.

(see headlines)

 

COLLISION TV INTERACTIVE DISTANCE COLLISION REPAIR TRAINING AVAILABLE TO ENTIRE CANADIAN COLLISION INDUSTRY

Are you looking for easily accessed and convenient training? Look no further than Collision TV! I-CAR, CARSTAR Canada, and Canadian Automotive Repair & Service (CARS) Network have produced this interactive distance-learning platform, which is available to the entire Canadian collision industry.

The upcoming month's schedule of Collision TV training programs is:

Class Date Training Program

12/21/04 Structural Straightening Steel (SSS01)
1/4/05 Structural Straightening Aluminum (SSA01)
1/11/05 Tires And Wheels (STE01)
1/18/05 Suspension Systems (STE02)

Satellite training locations for these programs and an extended Collision TV training schedule are available online. For additional information and registration, please call 1.800.422.7456.

(see headlines)

 

Become A Host Site For I-CAR Training Via WebEx Today

The ability to host an I-CAR WebEx class is open to the entire collision industry! Whether you are located in an insurance office, collision repair facility, or career and technical school or college, by contacting your l-CAR regional manager at 800.422.7456 you can arrange to have your site host a future class. *

While your I-CAR regional manager will be able to go into specifics regarding setting up your facility as a host site, here are some other site requirements...

Here's what you'll need:

Computer with:

- Microsoft Windows 95, 98, ME (Millennium Edition), XP, NT, or 2000.
- Intel Pentium 500 MHz or faster processor.
- 64 MB RAM (128 MB recommended).
- Microsoft Internet Explorer 4.x or later, Netscape Navigator 4.x, or AOL 5.0 or later.
- JavaScript and cookies enabled on the Web browser; ActiveX enabled on Internet Explorer.
- Broadband Internet connection (DSL/Cable/T1) etc.
- WebEx Training Centre software client (free download from WebEx).
- Speakers.
- Separate phone line.
- Speaker phone or conference phone.
- Conference room/meeting room with phone line, phone and computer with requirements listed above.
- A volunteer from your facility, or a local I-CAR Committee member to become the Administrator. This person will register students, collect I-CAR student paperwork and start the training session.
- A facility manager, supervisor or local committee member to proctor the post-test.
- I-CAR training delivered via WebEx, helping I-CAR become a step closer to training the entire collision industry.

(see headlines)

 

NEW TOWING STORAGE RATE SET BY TORONTO COURTS

Two month storage bill of $7,000 leads to court action


December 21, 2004

When Toronto -based financing company VFC Inc. was faced with seven thousand dollar storage invoice for a two month period, for a car that was surrendered as part of a bankruptcy, the storage yard operator wouldn't budge.

The storage yard operator shot back with the fact that Toronto had no fixed rate for storage and the storage yard was entitled to charge a rate of $100 a day.

This despite pictures of the storage yard showing no enclosed fence and accessible from the street from three different entry points.

The finance company set into motion a court case in line with the Repair and Storage Lien Act (RSLA)

When the case finally went to court, the storage facility argued that the rate of storage was indeed fair and that they were not gouging. At same time, VFC Inc., stated that the rate of storage was exorbitant and that the court had to consider rates government organizations and even a city located outside of Toronto area deemed "acceptable" rates.

The courts considered and ordered that the proper daily rate of storage for a vehicle was $37.00

"This decision marks a first precedent for storage rates in the City of Toronto." VFC Inc. believes that the courts will rely upon this set precedent in the future should a company dispute storage rates.

Moreover, says VFC Inc., such a precedent creates fertile ground for Toronto's city council to enact a by-law outlining acceptable storage rates.

For the two-page information file, courtesy of VFC Inc., please see http://www.ciia.com/provinces/ontario/VFCletter.pdf

(see headlines)

 

NEW CHANGES EXPECTED FROM ONTARIO TO CURTAIL “CHASING”

Insurance Act proposals would target tow truck referrals
December 20, 2004

Ontario’s lead on auto insurance, Mike Colle, Parliamentary Assistant to the Minister of Finance provided HARA representatives with the new Insurance Act proposals that have gone to Cabinet for their review.

John Norris, Executive Director for the Hamilton-based collision repair trade association (HARA), Alex Szabo, President of the Collision Industry Standards Council of Ontario and Bill Davis representing the new car dealers association in Ontario met with MPP Colle last Monday to discuss solutions to working on the benefits introduced in the Collision Repair Standards Act of 2002. The Act was passed unanimously by Queen’s Park but never implemented.

MPP Colle, has addressed some of the provisions in sections of the Act that entailed controlling tow truck and collision repair shop abuse.

Included in the proposed Insurance Act regulations are: service providers (tow truck operators, storage facilities and collision repair shops) who charge an amount in consideration for the provision of goods and services if the goods or services are not provided would be guilty, upon conviction, of an unfair or deceptive act or practice

Other deceptive practices would include:

Soliciting or demanding a referral fee, directly or indirectly, by or from a service provider.

Acceptance of a referral fee, directly or indirectly, by or from a service provider

The payment of a referral fee, directly or indirectly, to or by a service provider

Charging an amount in consideration for the provision of goods and services where the amount charged unreasonably exceeds the amount to other persons for similar goods and services

For more information on the Collision Repair Standards Act, please see:

http://www.ciia.com/provinces/ontario/cisco.html

(see headlines)

 

ECOLOCYCLE INC. FINED A TOTAL OF $4,000 FOR NON-COMPLIANCE WITH ENVIRONMENTAL PROTECTION ACT

OTTAWA – Ecolocycle Inc. has been fined a total of $4,000 – plus victim fine surcharges – after pleading guilty to three counts under the Environmental Protection Act (EPA).

Ecolocycle Inc. is a Quebec based company that is in the business of retrieving and recycling waste oil and glycol from businesses in Ontario and Quebec. The company is authorized, through a provisional certificate of approval issued by the Ministry of the Environment (MOE), to operate a waste management system. The certificate of approval sets out a number of terms and conditions under which the company may collect and transport waste.

The court heard that, in June 2004, MOE staff observed the driver from Ecolocycle Inc. pumping waste oil from a company tanker truck to a tanker trailer while parked in a hotel lot in Ottawa. Ecolocycle Inc. was not authorized to transfer the waste at this location as the hotel parking lot was not an approved transfer site under the company’s certificate of approval. Also, a certificate verifying the driver’s completion of required training under the EPA was not kept in the vehicle, an action that constitutes a second breach of the company’s certificate of approval. In addition, MOE staff found that the Ecolocycle Inc. truck was not marked with the company’s name and approval number, as required under Ontario Regulation 347.

By failing to comply with conditions under its certificate of approval, Ecolocycle Inc. committed two breaches of Section 186(3) of the EPA and, in failing to clearly mark its vehicle, it acted contrary to Section 16(1) of Ontario Regulation 347 under the EPA. The company pleaded guilty to the three charges and was fined a total of $4,000 for these offences.

Justice of the Peace Brian Mackey accepted the guilty pleas and fined the company on November 25, 2004 in the Ontario Court of Justice in Ottawa.

(see headlines)

 

I-CAR LOSES MARC JULIEN
Accepts position at College


December 14, 2004

Marc Julien , the well-liked I-CAR instructor and charged with increasing the number of
I-CAR instructors is gone.

Marc's role in assisting I-CAR in Canada was to move the I-CAR curriculum into government training activities and curriculum for apprenticeship.

Having a good shop background and working for some of the best known namesin collision repair in the past, Marc was a well-known fixture on CITY-TV Breakfast television and broadcasts.

Marc has taken a position with Centennial Colleges as an auto body instructor in the new year and will continue in an instructor role for I-CAR in Canada.

In other I-CAR news, I-CAR warns in its annual report that "satellite delivery can be effective delivery, but the cost of training using this method must be considered and may prove prohibitive." Collision TV, announced in Hamilton by CARS, I-CAR and CARSTAR Canada just started in early 2004 with 164 coupons sold for this IDL training up to June 30, 2004

I-CAR's Gold Class shop numbers continue to dwindle- now done to 435 at the end of June 2004 compared to 697 Gold Class shops in Canada in the year 2000. The largest majority of Gold Class shops is in Manitoba, with Ontario's numbers down 50% . Quebec has 12 Gold Class shops with 10 or these being FIX AUTO facilities.

Student numbers have dropped from a year 2000 high of 6015 to 4668 in 2004 while the budget was 6500

Platinum levels individuals numbers have plummeted from 332 four years ago to only 36 in 2004.

Interest in updating and aftermarket training courses is waning across Ontario, for many training delivery agents. Many classes are being cancelled for lack of attendance.

"The collision market has been challenging for repairers and insurers across Canada over the past few years for a variety of reasons. These challenges have had an impact in many ways including a decline of investment in training," said Rick Tuuri, Director of Business Development and North American Operations for I-CAR. "People need to understand that every company pays for a training program, whether they have one or not. Therefore,
raising awareness of the benefits of training to quality, safe and productive repairs is crucial to the future success of the collision industry."

In a related and ironic story, the Canadian Collision Industry Forum's Montreal meeting in October was to have an earlier session on how to create more interest in collision repair update training. Chair Tracey Blouin of I-CAR organized the meeting to try and solve the challenges in Canada. There were so few interested in attending, that the meeting was cancelled.

I-CAR continues to advertise classes across Canada and a number are featured on the November and December news/events section of www.ciia.com, including a very popular training course on hybrid vehicles

I-CAR recently announced discounted pricing of 50% off for customer service and collision repair courses for Gold Class shops and details are on www.ciia.com in the October news/events page

For more information on I-CAR and to attend a course near you see www.i-car.com

(see headlines)

 

WORKPLACE INSURANCE PREMIUMS LEVELS TO DROP FOR COLLISION REPAIR SHOPS

WSIB announces a 4.5% reduction in costs

Ontario Workplace Safety and Insurance Board (WSIB) is again this year reducing the premiums paid by collision repair facilities for their workplace insurance.

Workplace insurance covers the costs of injuries and illnesses that create off-work situation for employees.

The 2004 rate for collision repair facilities was $3.57 per $100 of assessed employment wages.

The new rates announced for 2005, reduce those shop expenses by 4.5 % to only $3.41 per $100 of assessed wages.

Shops that require mandated health and safety training (or WHMIS) can call HARA at
1-866-309-4272 or info@ciia.com for more information or access the health and safety page on this web site.

HARA is a proud supporter of the Ontario Service Safety Alliance and is a Committee member of the OSSA’s Vehicle Sales and Service Committee.

OSSA can assist shops with shop audits and advise on health and safety compliance at no change to a collision repair facility

(see headlines)

 

GM Says Insurance Policy is Key to Avoid Non-OEM Parts

In a new public release, General Motors is warning consumers that their insurance coverage may not provide for the replacement crash parts they want. The OEM says that insurance policy coverage often is limited to repairs that use "like kind and quality," "certified" or "functionally equivalent" parts. These are parts intended to cost less than OEM parts, and there is reason to beware, the automaker said.

Pointing to the recently released impact tests conducted by GM (see related story below), the carmaker says there can be big difference between aftermarket parts and genuine OEM parts. "When a customer purchases genuine GM collision parts, they are getting replacement parts made with the same engineering requirements, materials, construction methods and tooling as the original parts," said Bob Clark, director, Collision Business Line, GM Service and Parts Operations. "These OEM parts also were tested on the
vehicle to assure compliance with applicable Federal Motor Vehicle Safety Standards."

Aftermarket parts are produced through a reverse engineering process and are typically not tested on a vehicle to assure that they maintain the vehicle's compliance to applicable federal safety standards.

To demonstrate that imitation parts can sacrifice vehicle performance, GM conducted tests on some aftermarket parts that the company said are typical of aftermarket parts requested by many insurance policies. The tests involved two identical 2001 Chevrolet Cavaliers and followed the Insurance Institute for Highway Safety IIHS 5 mph rear-into-pole impact protocol.

"These tests proved the tested parts were inferior to the OEM parts they were intended to imitate, and were neither functionally equivalent nor of like kind and quality," Clark said.

"The bumper performance test results reinforce the findings of sheet metal comparison tests we performed in 2002 - aftermarket crash parts may look similar, but may not perform to the standards of genuine GM Parts," Clark said.

GM says that insurance coverage is key and that many consumers aren't aware that their insurance coverage may allow use of aftermarket parts. One of the easiest ways for consumers to ensure they get the highest quality parts, GM concludes, is to choose an insurance policy that assures use of OEM parts.

(Courtesy of CollisionWeek)

(see headlines)

 

AADCO Reports 56 Percent Revenue Growth

Automotive recycler, Aadco Automotive Inc., announced its financial results for the first quarter of fiscal 2004 with revenue for the quarter ended

September 30, 2004 coming in at $1,605,342 compared to $1,027,032 for the same period last year, an increase of 56 percent.

Net profit for the quarter was $141,255 compared to a profit of $2,300 for the same period last year.

States Charlie Hodgkinson, CEO, "Our increased sales reflects increasing business with our network clients and the integration of Coreline into our operations. Our expenses have increased also as a result of Coreline and its eight employees and operational costs. In addition AADCO has adopted a more conservative approach towards the capitalization of costs to inventory." Mr.Hodgkinson adds, "During the quarter we focused on finalizing the financial restructuring that was commenced in late fiscal 2003 as well as preparing
for the move into our new facilities on Hansen Road. We appreciate the continued support of shareholders and customers as we continue to make progress towards achieving our corporate goals."

AADCO serves mechanical and body shops across Ontario through its LKQ parts division. AADCO maintains the largest unbolted inventory of used OEM parts in Canada at its 118,000 sq. ft. facility in Brampton, Ontario.

(see headlines)

 

Boyd Group Income Fund announces December 2004 cash distribution

WINNIPEG, MB, Dec. 16 /CNW/ - Boyd Group Income Fund (TSX: BYD.UN) today announced a cash distribution for the month of December 2004 of $0.095 per trust unit. The distribution will be payable on January 27, 2005 to unitholders of record at the close of business on December 31, 2004.

Boyd Group Income Fund's policy is to pay monthly distributions to unitholders of record on or around the last business day of the month.

Holders of units who are non-residents of Canada will be subject to withholding taxes in respect of any distributions made by Boyd Group Income Fund.

The Fund is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including an interest in The Boyd Group Inc. and its subsidiaries.

The Boyd Group Inc. is the largest operator of collision repair facilities in Canada and is among the largest in North America.

(see headlines)

 

Boyd Group Experiences Weaker U.S. Collision Repair Market

In announcing its financial results, the Boyd Group Income Fund said revenue for the third quarter ended September 30, 2004 increased 45% over the third quarter last year with net income of $1.3 million compared to $980 thousand a year ago.

"While we have achieved solid revenue growth, primarily as a result of our acquisition of Gerber Group earlier this year, our overall financial performance continues to be negatively impacted by a prolonged slowdown in the North American auto collision repair industry." said Terry Smith, President and CEO of the Fund.

Sales in the U.S., which included $14.0 million in new sales from Gerber Group and $600 thousand in new sales from the recently acquired Atlanta locations, increased to $28.5 million in the third quarter of 2004, from $15.7 million in the same period a year ago.

Same store sales in the U.S. were down $1.8 million compared to the third quarter a year ago. U.S. dollar exchange rate relative to the Canadian dollar accounted for approximately $800 thousand of the decline in same store sales. Excluding the impact of foreign currency translation and the aforementioned acquisitions, U.S. same store sales declined $1.1 million or 6.7% compared to the same period a year ago.

Smith said, "During the third quarter, we opened two new locations in the greater Chicago area, acquired two additional locations in the greater Atlanta area and disposed of under-performing operations in Kansas. Further, we expect to commence operations in three new locations in Illinois by the end of this year. These initiatives are expected to positively impact our operating results."

Sales in Canada in the third quarter of 2004 increased to $13.8 million from $13.4 million a year ago, representing same store sales growth of 2.9%.

(see headlines)

 

Legislature Approves McGuinty Government's Budget Legislation for apprenticeship tax credits

TORONTO, Dec. 16 /CNW/ - The Ontario legislature has endorsed the McGuinty government's plan to restore the province to financial health, encourage economic growth, improve health care and invest in education with the passage of Bills 106 and 149 today, Finance Minister Greg Sorbara says.

"I sincerely appreciate the thoughtfulness that all members of the House brought to the debate on our first budget," Sorbara said. "We still have a great deal of work ahead of us, but I believe that we're on the right track to restoring Ontario's financial health and improving public services."

The legislation approved today:

- Creates the Apprenticeship Training Tax Credit to encourage the hiring of apprentices, addressing the expected wave of retirements in skilled trades, and helping to build a strong and prosperous economy

(see headlines)

 

CO-AUTO STARTS NEW COLLISION NETWORK

Norm Mangrove to be vice-president
December 16, 2004

Vlad Romanchych, President and CEO of Co-Auto Co-operative Inc., today announced that Norm Angrove has accepted the position of Vice-President of the Co-Auto Collision Network.

The Co-Auto collision banner program is designed to compete with CARSTAR and FIX AUTO. Norm Angrove, says Romanchych, is an industry veteran with over 30 years experience in collision centre sales and marketing strategies as well as the insurance
industry.

Part of Norm's experience involves being Vice-President of Insurance Relations and Business Development for a banner franchise network in Ontario Roamnchych also advises that Norm is director of the Toronto Collision Repair Society and the Collision Industry Action Group.

In his new position Norm will report to Mr. Rokmanchych and have total responsibility for all areas of the new venture called "The Co-Auto Collision Network".

(see headlines)

 

LOCAL COLLISION REPAIR SHOPS HELP IN THE SPIRIT OF GIVING
Donation of repaired cars to needy women
December 18, 2004

Two collision repair facilities have helped Christmas be a little more special this year in their communities. Collision Solutions Network member Julio Bruno from Glen Merritt Collision in St. Catharines donated a refurbished 2000 Neon to a Women's Place client in St. Catharines

Louise Mayer, a client of the shelter for abused women and children received the gift on Wednesday, along with free auto insurance from HUB International and a free membership from CAA Niagara.

CARS Auto Collision, owned by Nick DeLuca in Burlington also gave a car to Darlene Howitt on Tuesday.

Brant Hills Presbyterian Church helped CARS Collision identify Howitt as a person in need of a vehicle.

(see headlines)

 

Survey: New Car Owners Know Little About Insurance Coverage

A recent national survey by the Mayfield Village, Ohio-based vehicle insurer Progressive found that new car owners know much more about the features of their vehicle than they do about the insurance that protects it, themselves and others.

The survey found that a vast majority of drivers who had recently purchased a new vehicle knew its transmission type (98 percent) and number of cylinders (91 percent). Also, nearly all drivers who recently purchased a new vehicle said they knew how many airbags it had and where they were located (99 percent, respectively).

By contrast, more than half (51 percent) did not know the amount of bodily injury liability coverage they had for one person, and 62 percent didn't know their liability coverage limits per accident.

The survey revealed that almost one in three drivers (30 percent) didn't know how much they paid every six months to insure their newly purchased vehicle.

New car buyers should know that the make and model they choose does affect insurance premium. That's because rates are determined not only by driver characteristics such as age and gender, but also by vehicle characteristics, which generally include the car's make, model and year, weight, horsepower, body type, wheel base, and vehicle type (passenger car, van, pickup, SUV, etc.). To illustrate how the cost of insurance can vary by vehicle, Progressive compiled its list of the most and least expensive 2004 vehicles
to insure.

The top five most expensive cars to insure were the Dodge Viper, Acura NSX, Jaguar XKR, Porsche 911 and BMW M5. The least expensive to insure were the Oldsmobile Silhouette, Pontiac Montana, Saturn SL, Chrysler PT Cruiser and Saturn SC.

(see headlines)

 

CANADIAN HONOURED FOR WORK IN COLLISION REPAIR

Also strong participant in CCIF activities

Sharon Wells is well-known voice in the collision repair industry in Newfoundland. As well as being the guiding light at Collision Clinic in St. John's, Newfoundland, she just completed a two-year term as president of the Mt. Pearl Chamber of Commerce.

It was only reasonable that Sharon's efforts attracted the attention of one of Canada's major coatings manufacturer. In Las Vegas, Nevada at this years' NACE conference, Akzo-Nobel honoured Sharon with the award for one of the Most Influential Women in Collision Repair.

Wells also is an active assistant in the activities of the meetings of the Canadian Collision Industry Forum at their meetings across Canada.

Sharon is also the Vice President of the local trade association, the Newfoundland and Labrador Collision Repair Association (NLCRA). She is also a member of BANL, Business Association of Newfoundland and Labrador. In addition to the day to day running of a collision repair (Collision Clinic) facility Sharon is also responsible for the management and control of the financial department of a sister company Auto Parts Network, an automotive recycling and dismantling facility.

Congratulations to Sharon from the industry in Canada.

For a quick trip through Collision Clinic, Please see:

http://www.ciia.com/provinces/nfld/nfld.html

(see headlines)

 

Allstate Connects Safety, Pollution Prevention, and Quality

NORTHBROOK, Ill., Dec. 10, 2004 - Oil, antifreeze, and paint. An auto body repair facility can create more than 200 gallons of potentially hazardous waste each year. Where do these by-products of the body shop business go?

Allstate, the nation's second largest auto insurer, is asking the more than 3,200 auto body repair facilities across the country that participate in its direct repair program to complete an autobody-specific environmental and safety-training program. Specifically, the company is encouraging its direct repair facilities to complete the nonprofit Coordinating Committee for Automotive Repair's Safety and Pollution Prevention (S/P2) training. S/P2 is an online training program that focuses on safety and environmental issues specific to the repair industry, including proper material handling and disposal.

"Allstate [works] closely with repairers to help ensure the quality of repairs and customer service provided to our customers and claimants," said Allstate assistant vice president for claims Jim Murray. "A clean, safe work environment is good for repairers, the community and creates an atmosphere that promotes quality and customer service."

Murray says most auto body repair facilities are cautious and conscientious when it comes to protecting the environment, but he says Allstate is taking a stand on the environment.

In addition to basic environmental issues, Allstate says the new training can also help repairers by improving overall safety inside shops by preventing unnecessary employee illnesses, injuries and dangerous situations that could lead to fires or explosions in repair facilities.

Allstate revolutionized the auto insurance and repair industries when it introduced the idea of an auto body direct repair program (DRP) 30 years ago. Allstate's new environmental training guidelines are part of an overall enhancement of the company's DRP. Other components of the new, redesigned program include expanded quality inspections of completed repairs, new quality rankings for repairers and greater emphasis on new technology training.

More than 3,200 auto body shops around the country participate in Allstate Insurance Company's direct repair program. The DRP includes repair facilities that have agreed to provide priority service to Allstate insurance customers and claimants. Many consumers never realize the DRP program exists, but the program helps Allstate to provide repair facility recommendations to customers and claimants after an accident and helps speed up the claims process by giving the customer a one-stop-shop for estimates and repairs that Allstate guarantees.

Allstate says it will continue to honor the choice of repair facility by customers and claimants. According to Allstate, new environmental standards strengthen the power of its referral program for those customers that request help in choosing a repair facility.

Source: GreenBiz.com

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U.S. Feds urge recall of 600,000 Dodge trucks

December 10, 2004

WASHINGTON (CNN) -- Federal safety regulators Thursday demanded that DaimlerChrysler recall up to 600,000 vehicles from two of the most popular lines on the road, the 4x4 Dodge Durango and the four-wheel drive Dodge Dakota pickup, due to problems with front-end ball joints.

The National Highway Traffic Safety Administration's recommended recall covers Durangos and Dakotas built from 2000 to 2003, a spokesman confirmed.

CBS News has reported that some Durango drivers were put in dangerous driving situations when ball joints failed.

Ball joints are part of an automobile's front-end suspension system, attaching the trucks' wheel assemblies to the vehicle. CBS reported that NHTSA found defective ball joints in nearly a third of the vehicles it investigated, and almost all were made at a plant in Indiana.

Recalls are very expensive for car companies, and the costs could rise if DaimlerChrysler is hit with lawsuits as a result of the vehicle problems. The company has until Monday to respond to the government's recall request.

An NHTSA spokesman said that some companies do not comply with its requests for recalls. If that is the case, he said, the agency would fight for a recall.

(courtesy of Jennifer Westhoven, CNN)

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Recycling a business

Scrapyard began in '65, sold to Ford, now it's back in the family

By Mark McNeil, The Hamilton Spectator

For Joe Plazek, it's all come full circle. At the age of 44 he finds himself back where he was several years ago, running a family-owned car recycling business in Caistor Centre.

The company started by his father in 1965 and sold four years ago is now back in family hands.

In the Darwinian world of family businesses -- that tend to either implode or are bought out before the second or third generation -- Plazek Auto Recyclers is definitely an anomaly.

It was sold to a big corporation and then, astonishingly, bought back. It seems no one other than the family is capable of running it.

"I guess it's a family business that was meant to stay that way," says Plazek.

It all started in 1999 when a group of people in suits from Ford Motor Company came to visit Plazek's recycling business.

The scrapyard, with more than 50 employees, had several thousand cars that were sold for parts. What wasn't useful for parts was sent on as scrap metal to make new cars.

"At end of the meeting, they asked if there was somewhere to talk in private," Plazek recalls.

They wanted to buy the scrapyard and they were prepared to pay millions of dollars. A deal the following year was signed and Plazek stayed on as manager.

Plazek says the people from Ford, operating under the name Greenleaf "took the ma and pa system of recycling yards and tried to corporatize them. It just didn't work. It was a mixture that didn't gel."

Plazek lasted as manager until 2001 when, he says, "things got real ugly when they were starting not to make money," and he got fired.

That wasn't so bad for him because he had money left over from the initial sale and it gave him time to indulge in his passion of stock car racing.

John Jelinek, a spokesperson for Ford said the purchase of Plazek was a reflection of a company decision to diversify which was replaced two years later with a back-to-basics movement that saw Ford's recycling yards being sold.

"The business ran very well. It provided some good opportunities to expand into end-of-life industries. It is just that we were in a place that we needed to focus all of our attention on the core business."

The Caistor Centre scrapyard ended up being passed on to Lecavalier Auto Parts and lasted for five months.

As Lecavalier was closing the doors and getting ready to ship equipment and inventory to Montreal, Plazek walked in and inquired about buying some equipment.

"They told me they'd rather I bought everything. So I ended up negotiating a deal to buy the assets back." Ownership of the business and the Plazek Auto Recyclers name came with it.

He won't say what he paid, only that it was a "portion of cents on the dollar."

And while it looks as if he made a windfall -- buying back a business for a fraction of the millions of dollars he was paid for it -- he notes the scrapyard by that stage was not in great shape.

Over the past several months, Plazek and his brother Frank, with the advice of their father, Ed, and bookkeeping skills by their mother, Marilyn, have been working to get the business back on its feet.

They have upgraded the building, purchased new computers and even have hired some of the old staff back.

"I learned a lot about how good a business we had," says Joe. "Looking back I probably should never have sold. But I guess sometimes your greed overcomes your thought and that is probably what happened. The money looked better than what we had."

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AUTOBODY SCRAP METAL NOW BRINGS IN REAL DOLLARS

With scrap steel, aluminum and brass prices higher than ever, shops can make money from their scrap. Hamilton Spectator reporter Meredith Macleod highlights the new interest in recycling waste metal profitably.

The metal recycling business is getting more competitive as prices for steel continue to soar and more scavengers are in a hunt for trash for cash.

Scrap sellers William Morden and Alonzo Fewer unload scrap at Triple M Metals. He rumbles up to the scrapyard door with his neat stack of double-wide kitchen sinks piled high in an off-kilter grocery cart.It would be a very odd sight anywhere else, but in the industrial North End it's just another "entrepreneur" trying to make a living.Pickup trucks, cars, vans, bikes and wobbly wooden carts pull up in a steady stream of scrap to the Wentworth Metal Recycling on a rainy November afternoon.The metal is pulled out, sorted and weighed, cash is handed over and the material is added to a staggeringly huge pile out back.As quickly as it comes in, loaded transport trucks thunder off to plants where the metals will be shredded or bundled for their final fate in a furnace.

Metal recyclers say homeowners should plow through their garages and basements for trash they can turn into cash.Old appliances, extruded aluminum from windows and doors, bikes, old farm equipment, old cars, pots and pans, pipes and faucets, tire rims, air conditioners, radiators could all net some cash at a local scrapyard, it's all money.Prices have never been so high.There are even reports of bidding wars between scrapyards for some scrap in a homeowner's truck.Demand for scrap metal to fuel booming steel industries in China and India has spiked prices by at least 50 per cent in the past year.Scrap may seem unsightly, but it's key to making steel.Dofasco alone buys 1.4 million tonnes a year. The company's steel contains an average 40 per cent of recycled material.Between 200 and 300 customers a day file into Posner Metals on Beach Road. Some have scrounged for metal, usually from residential curbsides in the cover of night, others have bought renovation materials from contractors or old bikes, lawn mowers or screen doors from homeowners.

"People might think they could take it to a scrapyard to get $5, so they can't be bothered," said Posner general manager Michael Kam. "It might actually be worth $60 or $70."If you have scrap metal around, this month is as good as any ever to sell it."Jim is one of those sellers. He arrives at Wentworth with a pile of copper piping, aluminum rims and copper and brass from rads, on a rickety wooden cart.He and a buddy have spent all day sifting through garbage bins and hauling scrap away from garages.Their work has netted them $50.The No. 2 copper is the sweet stuff, at $1.20 per pound. Aluminum brings about 50 cents on average. Brass, nickel and stainless steel is also lucrative.

"I'm a self-taught expert," says Jim, who has three kids to feed and is struggling to get by on social assistance.He has about $150 to live on every month after paying his rent and doesn't want to give his last name because his scrap income isn't reported.He used to be
one of the only ones out scavenging the streets when he started out five years ago. But high scrap prices and ever-tougher times for those on the margins has brought much more competition, he says."Too many people know about it now. It's really stressful."You can do a whole neighbourhood and not get a thing that day."But he's learned some tricks along the way. A tossed out stove isn't valuable except for the copper wire at the back. Old
pots and pans often have copper in them. A scrapped toilet often has copper pipe nearby.And a building where there has been a fire is a good place to visit a lot because renovations are a gold mine."It's a learning process. I carried a magnet around for years. Basically, if it sticks, it's not worth it. Now I don't need the magnet."

Morley Balinson, another seller, says scrapyards act as "the poor man's bank."If you don't have a bank account or a debit card, you go out picking for a few hours and come in to get a few dollars," says the retired printer.He carries in a few pounds of crushed pop
cans he saves and collects over a few months and gets 45 cents a pound for his efforts."It's fun. I'm not going to retire on it but I bank it up and go out for dinner every now and again."With the higher value comes increased thefts. Aluminum and copper are the primary targets. The stuff is hard to trace and smart thieves go to great lengths to make it look used before they show up to sell it, says the Hamilton police scrapyard investigator.

"We used to get maybe one or two reports a month and now we're getting that every
couple of weeks," said Detective Constable Rodney Pieon, a member of the Hamilton police's BEAR unit.The yards are required to record the names, addresses and licence plates of people who bring in scrap. That's somewhat unique to Hamilton, it comes along with the Steeltown territory. And so does Pieon. He's the only scrap officer in the province.Local scrapyards generally know who is trouble, says Pieon."Most people who steal scrap in Hamilton go outside the city to sell it. The people who steal it from outside come here."Metal recyclers say scrapyards are doing a good deed. People get money for their castoffs and the material stays out oflandfills.

Triple M Metals opened a new cashyard in October on Brampton Street. It's doing a booming business - 1,144 drive-up customers offloading more than 1,000 tonnes of scrap.Some peddlers are making really good money, says Jacek Hejmej, general manager of the Triple M public yard.He says his company is trying to tackle the reputation of the industry for being tough or even unscrupulous."We treat everyone with honesty, integrity, fairness and respect. Many peddlers maybe are not very sophisticated but they deserve
respect. We're trying to change the face of this business."

(courtesy of the Hamilton Spectator)

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ADP Drop in Refinish Times to Be Reversed with November Update

While the company has not made it clear why they lowered the refinish times to begin with, they have made it clear that the changes will be reversed in November.

A widespread and significant drop in ADP refinish labor times discovered in recent weeks will be corrected in ADP's November CD update release, which the company says will be on its way to ADP customers this week.

"The operational issues with the refinish times in the October CD are revised in the November CD," Scott Jenkins, senior director of estimating solutions for ADP, said. "The November CD is consistent with the September CD. If the user did not load the October CD, they were not impacted. We are instructing our customers to load the November CD immediately upon receipt."

The October CD included many decreased refinish labor times of 10 percent or more. Refinish times for 2000-2004 Ford Taurus hood, for example, dropped from 3.9 on the September ADP CD to 3.4 on the October CD. Times for a 1999-2004 Pontiac Grand Am fender dropped from 2.4 to 1.9, and the front door time for a 1999-2004 Chevy Cavalier dropped from 3.1 to 2.8.

Although some have looked for some sort of intent behind the widespread reductions, ADP, while avoiding using the term "mistake," maintains that the problem was an "operational issue," not an attempt to shave labor times. "Some of our clients have experienced an operational issue regarding refinish labor on hoods, doors, fenders, roofs, decklid/tailgates and back doors," Peggy Adams, operations manager for client services for ADP, wrote in an email response to questions about the October CD. "When the November CD is loaded, our clients will need to deselect the 'Using Original Labor' box in the 'Open Estimate' dialogue box when updating an estimate or supplement created with the October CD. Consistent with ADP's ongoing commitment to quality, we have insured the November CD contains the most accurate, detailed, vehicle-specific data in the industry. We apologize to our clients for any inconvenience we may have caused."

"The Shoplink Update shipped with the November CD will contain additional details," Jenkins said. "We are asking our clients to please contact our Client Services team for any questions or further assistance. ADP's Client Services team will be happy to address individual situations with our clients."

The issue has resulted in a flurry of email activity between shops and industry organizations since it came to light in early November. Part of the concern was fueled by the fact that various ADP personnel were giving conflicting - or, at a minimum, ambiguous - responses to questions about the labor time changes. An ADP tech support employee, for example, told one ADP shop customer in the Pacific Northwest that the revised times were based on "new time studies" ADP had done.

Another shop owner reported receiving a similar explanation: That time studies using "new equipment readily available in the market" showed that paint operations took less time.

"He would not specify which new equipment was being used, or which vehicles or repairs were being studied," the shop owner said. He did, however, say "that since not all facilities are currently equipped with these new technologies, ADP is...reverting back to their old labor times until the majority of the market has updated their equipment."

The Alliance of Automotive Service Providers/New Jersey (AASP-NJ), which was among the first organizations to bring the lower times in the October CD to light, is pleased that the drop in times is being corrected. But the association feels shops who have used or continue to use the October version of the ADP database deserve compensation because of the inaccurate data.

"AASP-NJ is strongly recommending reimbursement from ADP to its members for the subscription cost of its Shoplink product, prorated for the amount of time that the October release was in use and until such time that a repaired database is made available," the association said in a written statement. "AASP-NJ is also seeking reimbursement for measurable damages resulting from artificially low estimate totals that cannot be recovered at a future date."

"ADP shouldn't be able to just dismiss this as a 'software defect,' correct it and move on," Charles Bryant, executive director of AASP-NJ, said. "There has been money lost, and we intend to pursue all channels to get it back."

Click here for a list of vehicles affected by the October CD update

UPDATE: There was a reduction in refinish times that affected approximately 10% of the vehicle files on our October CD.

After conducting comprehensive internal investigation and audit, ADP concluded that changes made to refinish times on the October CD were not supported by sufficient industry data as required by our operating policies and procedures.

All of our clients, including our Canadian clients were immediately notified and corrections were made to the November CDs which were distributed via overnight delivery.

Detailed instructions on how to process supplements together with a complete list of vehicle files affected have been published on our website (http://www.support.adpclaims.com). A dedicated Client Services team will assist clients with their individual needs and concerns.

ADP is committed to providing quality client service. We have enhanced our database operations processes with additional safeguards to ensure that we deliver reliable estimating tools to our valued clients

(courtesy of CollisionWeek)

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IMPORTANT INFORMATION ON UPCOMING CCIF MEETING

Viewers should note that news releases and information from CCIF regarding date and location of the Janaury 2005 meeting is confusing. The meeting has been variously shown as being in Mississauga and to take place on January 16. There is no information showing on the CCIF web site.

The CCIF meeting will, in fact, take place in Toronto on Saturday January 15, 2005

For the flyer and registration form, please see: http://www.ciia.com/provinces/ontario/cciftoronto.pdf

For more information on CCIF please see: http://www.ciia.com/provinces/ontario/ccif.html

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CARSTAR Introduces Newest Multi-Store Franchisee

Sam Saccoia, owner of Nick's CARSTAR Collision in Toronto, has acquired Ontario Auto Collision CARSTAR in Mississauga.

The Multi-Store Owner business model is gaining momentum throughout North America by creating efficiencies and effectiveness in the professional management of the collision repair business according to CARSTAR.

"Sam has been providing customers in Toronto with high quality repairs and service for the last 15 years, and we are excited to now have him provide that same level of service to customers in Mississauga", said Sam Mercanti, President and CEO of CARSTAR Automotive Canada. "Both of the CARSTAR locations in Mississauga will work together to build a strong brand in the community."

The facility located on 3575 Hawkestone Road was purchased from Harry Belmont and his family. "On behalf of the entire CARSTAR organization, we wish Harry all the best with his retirement, " says Mercanti.

Founded in Hamilton, Ontario in 1995, CARSTAR Automotive Canada has grown from eight to over 100 locations.

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CARSTAR Reaches $1 Million Milestone for Cystic Fibrosis

CARSTAR Collision Repair Centres across Canada have raised over $200,000 for cystic fibrosis research, breaking the $1 million mark over five years, by supporting the FrightLites campaign and other fundraising initiatives.

CARSTAR presented a check to the Canadian Cystic Fibrosis Foundation on Friday evening at a Cabaret & Casino Night held in Hamilton, Ontario also in support of CF research.

The FrightLites campaign is a partnership between the CCFF and over 100 CARSTAR Collision Repair Centres across the country. Each location sold FrightLites, non-toxic glow sticks that trick-or-treaters wear on top of their costumes to be more visible on Halloween night.

"This is such an amazing achievement," said Sam Mercanti, CEO and President of CARSTAR. "This would not have been possible without all the people involved in this program, including our staff, our insurance partners, the Kin Canada organization, our vendors, and the CCFF chapters and volunteers. But most of all I want to thank and congratulate all the CARSTARfranchisees. This incredible result is a testament to what can be achievedthrough great people working together for a common goal."

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Akzo Nobel Honors Most Influential Women in Collision Repair

Eight of the collision industry's finest leaders were honored at the sixth annual Most Influential Women in the Collision Repair Industry Awards program held in Las Vegas, Nevada on Thursday November 4th.

Kate Lawrence of Brighton Mich., Lorene Lombardi of Livermore Calif., Sharon Wells of St. John's N.L., Stacy Bartnik of Palatine, Ill., Star Lena Bishop of Bluefield, W.Va., and Marilyn Martinez Toa Alta, Puerto Rico were among the recipients. Also during the ceremony, for the first time, Akzo Nobel gave special recognition to Judy Gore of Macon, Ga., who was recognized posthumously for her contributions to the industry.

"This events gives us an opportunity to honor individuals who have dedicated themselves and their careers for the improvement and advancement of the collision industry," said North America Car Refinishes Director of Marketing Tim Loden.

The personal and professional accomplishments of the Most Influential Women are extraordinary. Lawrence currently serves as the Mayor of Brighton, Mich. She is the first woman Mayor the city has ever had and has served in that position since 1999. Wells just completed a two-year term as president of the Mount Pearl Chamber of Commerce. Wells, Bartnik, Kostik and Lombardi all serve on numerous boards that promote the growth of the industry and improvement of its image. Bishop has more than doubled the sales of her company as a body shop manager and is involved with numerous educational and philanthropic organizations in her community. Marilyn Martinez is on the cutting edge of industry changes in Puerto Rico. She and her husband have brought emerging technology and educational resources to collision centers on the island.

Judy Gore was instrumental in the formation of the Georgia Auto Body Association, now called the Georgia Collision Industry Association. She also served I-CAR in various capacities. Her passion for her work prevailed despite her failing health.

"These women are leaders not only in this industry, but also in their communities. We are pleased to honor them with this award and to support the industry that they have supported with the scholarship that is given in their honor," Loden added.

This year Akzo Nobel increased the Most Influential Women scholarship given by more than 50% from $10,000 to $25,000. The I-Car Education Foundation will use the money for prospective females students pursuing a career in the collision repair industry.

The Most Influential Women program began in 1998, by Akzo Nobel to recognize the unique leadership characteristics, accomplishments and contributions of women to the collision repair industry.

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Canadian Road Fatalities Down

New statistics show that fewer people are dying on Canada's roads. The latest edition of the Canadian Motor Vehicle Traffic Collision Statistics - released annually by Transport Canada - provides statistics on motor vehicle collisions and casualties for the year 2003, as well as historical information dating back to 1984.

The figures reveal that there are 21.7 million licensed drivers and over 18.8 million passenger vehicles on Canadian roads - more than ever before. In spite of this, collisions and casualties decreased by five per cent from the previous year, and injuries were down by three per cent.

"I am pleased to see a decrease in lives lost on Canadian roads," said Transport Minister Jean-C. Lapierre. "Transport Canada will continue to work with its partners on Road Safety Vision 2010 and other initiatives to continue to further reduce fatalities and injuries on our roadways."

Although road fatalities still represent over 90 per cent of all transportation-related fatalities, Canada's road safety record has steadily improved over the years. Since 1980, road traffic deaths have declined by almost 50 per cent. The statistics, collected by Transport Canada in cooperation with the Canadian Council of Motor Transport Administrators, show that in the year 2003, there were 2,496 fatal collisions leading to 2,778 deaths. Motor vehicle occupants accounted for 76.6 per cent of all road user fatalities, with 1,473 drivers and 656 passengers killed. In addition, 378 pedestrians, 178 motorcyclists and 45 bicyclists were also killed on the road.

Road Safety Vision 2010, an initiative introduced by the federal, provincial and territorial governments and the Canadian Council of Motor Transport Administrators, aims to raise awareness of road safety issues, to improve collaboration and cooperation among safety agencies and to toughen enforcement. This national plan calls for a 30 per cent decrease by 2010 in the average number of people killed or seriously injured on Canada's roads.
Transport Canada receives data from the provinces and territories related to collisions occurring in these areas. The department uses these statistics to further improve road safety through public awareness and outreach programs with the goal of making Canada's roads the safest in the world.

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INSURERS PROFIT REACHES $2.7 BILLION IN NINE MONTHS

Collision repair take a beating

Body shops are suffering a drop in business, as motorists are reluctant to file insurance claims for damage if their vehicle is drivable.

According to the Insurance Bureau of Canada, the claims frequency rate in Ontario feel to 12% in 2003, down from 27% in 1993.

Insurance Bureau of Canada's Ontario Vice-President Mark Yakabuski confirmed a 30% drop in collision repair claims in the past 18 moths, and a 20% drop in home insurance claims- but said this trend is now reversing itself.

John Norris, Executive Director of the Hamilton District Autobody Repair Association (HARA) says shops he's talked to have seen their business fall by 30% to 47%. Some have had to lay off staff.

Although business is down, shops have been hit with 30%-40% hikes in commercial insurance, further eroding profitability.

Norris points out that although insurance profits have rebounded, insurers haven't spread the wealth by raising the rates they pay body shops.

Don Teevens of Hawley Collision Centre in Mississauga has experienced a 50% drop in insurance-paid repairs.

"About 90% of the people who come into my shop say they don't want to go through insurance," said Teevens. "They are literally petrified. Some are afraid to give you their name."

Teevens estimates he's fixing about 25% more cars than last year, but making less money because he's doing more minor repairs and fewer major insurance claims.

However, he's seen people pay $7,000 out of their own pocket for a repair to avoid a big rate hike.

"Even if they finance the $7,000 on a line of credit they figure it's better than seeing their premium go up by 31%," notes Teevens.

High auto insurance rates are also causing car sales to stall. For the first ten months of the year, new vehicle sales in Canada are down 4.9% compared to 2003, despite low financing rates and hefty incentives by automakers.

Auto analyst Dennis DesRosiers has cited insurance affordability-along with high prices-as factors pulling sales down.

"It's had a very, very negative effect on us," said Hugh Brennan, owner of Brennan's Dixie Chrysler in Mississauga.

"We're seeing cases where a person's car payment is $300 a month, but by the time they add in gas and insurance, it's up to $1000 per month."

(Courtesy Toronto Sun)

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APPRAISERS GROUP PRAISES HARA'S EFFORTS

Professional Association of Vehicle Evaluators hear and see industry message

November 14 2004

With some 25 appraiser's and adjusters attending the meeting, the Fourth Annual General Meeting of P.A.V.E. (Professional Association of Vehicle Evaluators) were eager to find out about Ontario's Bill 186(2002) that provides for self-management of the collision repair industry.

The Oakville, Ontario meeting all day Sunday event featured HARA's preetnation on their accomplishments and successes in the collision repair industry.

P.A.V.E. Executive Director Dean Renwick had invited HARA to make the guest-note presentation.

Attender members also discussed insurance libilty issues with appraisals and the challenges of appraisals on older vehicles that are antique or classic.

For the HARA presentation to P.A.V.E., and pictures of the event please click http://www.ciia.com/provinces/ontario/pave.html

For more information on P.A.V.E. please see www.trustpave.com

For minutes please click here

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INDUSTRY WEB SITE ACHIEVES AN AMAZING 2.5 MILLION HITS IN 12 MONTHS

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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NEW FINANCIAL NEWSLETTER HELP OFFERED FREE TO HARA MEMBERS

HARA introduces another reason to be a member

November 10, 2004

Starting December 1, all HARA member shops will start to receive the new SB Partners newsletter that addresses modern business concerns.

Delivered electronically by HARA’s audit firm, the newsletter will be sent automatically to all HARA members by e-mail.

In past issues the newsletter handled topics such as:

- Business valuation
-
Personal financial planning
-
Minimizing credit card fraud
-
Long term strategizing
-
Technology and check-ups for your business
- GST and tax credit programs
- Financial indicators and check lists for your shop
- Auto deduction limits for tax planning and reporting

HARA President Tony Nigro says “this is just another advantage of HARA membership. We now offer special environmental and WHMIS training, new profitability manuals and product discounts and this new free service for members makes association membership even more valuable.”

Any member shop who does not want to receive this free assistance, should e-mail info@ciia.com or 1-866-309-4272 (HARA) and will be removed from the list.

HARA also reminds shops to access the free “Productivity” section of the industry web site for new “not-included” lists, ADP and Mitchell online estimating, aftermarket parts information, labour complaint time forms and small parts listing for payment. All of this and more is available at: www.ciia.com/provinces/ontario/productivity.html

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HARA PRESENTATION TO CAMPE A FIRST FOR COLLISION INDUSTRY

Canadian Association of Motive Power Educators gets a first look at collision repair

October 22, 2004

An hour-long presentation on the achievements in the collision repair industry was well received and praised at the Fall meeting at Fanshawe College by the members of the Canadian Association of Motive Power Educators (CAMPE).

This was the first time a collision repair association has presented a Canadian update on their activities to promote apprenticeship and learning and how they attract and retain young people in the industry. The Executive Director of HARA handled the presentations.

CAMPE is a national bilingual network of community colleges and training institutions specializing in motive power training. Their mandate is the promotion and delivery of flexible, high quality, cost effective education, training and services to meet the needs of the industries involved in power.

Speaking at their Fall meeting in London, members of CAMPE, largely college educators, were shown the new “Steps to Collision Repair Apprenticeship” package now available online at www.ciia.com under “Training” and the Art of Earning cd-rom from the Canadian Collision Industry Forum and the Automotive Industries Association.

CAMPE members asked the HARA representative making the presentation, questions on air bag legislation and regulation, particularly in Ontario. Other areas of interest shown by CAMPE members were the change to customer-pay repairs rather than insurance-paid repairs and the decline in apprentices signing up for apprenticeship training at community colleges.

For more information on CAMPE, see their web site at: www.transportation.bcit.ca/campe/

For an online view of the “Steps to Collision Repair Apprenticeship” see: www.ciia.com/provinces/ontario/stepstoapp.html

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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

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