FLASH SNOW STORM CREATES LARGE NUMBER OF ACCIDENTS

NEW CHANGES EXPECTED FROM ONTARIO TO CURTAIL “CHASING”

CCIF is a national forum that holds four meetings per year in different cities across the country. CCIF offers the opportunity to listen and learn from others, to share ideas, and voice opinions on current issues in a non-confrontational forum.

April 16 CCIF Surrey, BCSheraton Guildford

June 18 CCIF Fredericton, NB Delta Fredericton

Sept. 16-17 Collision Industry Fall Conference, Saskatoon, SK Delta Bessborough

Oct. 15 CCIF Regina, SK - Location to be announced

For additional information about the CCIF visit their website.

January 26, 2005

Companies involved in the Canadian automotive aftermarket have contributed more than $4 million to the Tsunami Relief Efforts.

On behalf of the aftermarket industry, AIA presented a cheque to the Canadian Red Cross in the amount of $22,227, which was raised directly in less than three days.

As a result of urging from members of the Canadian automotive aftermarket, the Automotive Industries Association of Canada and Jobbers News, SSGM, and Autoserviceworld.com coordinated efforts to help raise funds for the Tsunamis stricken region in Asia. Gates Canada ignited the industry with a $1000 challenge which was quickly met by companies such as Zurawel Patton Sample, Ultra Fit Exhaust Systems and a number of warehouse distributors and jobber stores.

"Zurawel Patton Sample is very pleased to note that AIA has stepped in to coordinate this fundraising effort. We will be matching the challenge amount set by Gates Canada," responded Gord Patton within minutes of receiving the AIA advisory regarding the Tsunami.

"AIA knew that if each AIA member were to make a donation, the aftermarket industry could make a significant contribution to the tsunami relief effort," said AIA President Ray Datt. "The area hit by the tsunami is in such great need and will be for years to come, many aftermarket companies felt the need to take some sort of action. AIA and Jobber News felt that the most efficient and effective thing to do is to work with a respected and
experienced agency like the Red Cross."

"The more than $22,000 donated to the Red Cross was primarily raised as a result of jobber contributions," says Jobber News Editor and Publisher Andrew Ross. "Jobbers are an important member and contributor to their local economy, I think they understood more than everyone else how this natural disaster would impact the small and rural communities hit by the disaster."

A number of members also raised money on their own for the relief effort. Lordco staff raised over $5000 in the first few days after the disaster. "I am going to match dollar for dollar what the staff contributes," indicated Lordco President Ed Coates. "I expect we will raise over $25,000."

Piston Ring Service in Winnipeg allowed its employees to donate through payroll deduction regardless of the amount; it also let employees convert vacation and overtime accruals into actual dollars. Some of its employee's children shovelled snow to raise money. Piston Ring also collected funds from some of its local manufacturing representatives who wanted to get involved. Piston Ring chose the Mennonite Central Committee for its donation because they are an on-the-ground, hands-on, grassroots charity with an ongoing physical presence in the area. "We are very proud of the way our employees joined together to raise funds and are pleased to report that our final donation, including matching funds from head office, exceeded $10,000," says Piston Rings John Tennant.

Many people made personal donations, such as Debra and Bruce Hague who made their donation in loving memory of William Forrester Taylor.

"AIA was also proud to see that so many of its large member companies, who are multinationals, had fuelled the tsunami relief efforts by making significant contributions," stated Ray Datt.

"Great idea for the AIA to raise funds for the Tsunami relief effort. I just wanted to let you know that as a global company with operations in that part of the world Shell (including subsidiary Pennzoil Quaker State) has decided to make a $1 million donation to the relief effort," says Owen McManamon, Pennzoil Quaker State.

"I am pleased to announce that the Board of Executive Directors of BASF Aktiengesellschaft has already announced that BASF will provide $1 million in immediate aid and, in addition, has promised to match employee contributions made through January 31, 2005," said BASF Canada President John Clarke. "Here in Canada, we have selected the Canadian Red Cross to handle our employee contributions and ensure that those contributions are matched by BASF Canada."

"Immediately following the first news reports, we began to account for employees and contact clients in the affected areas. Within hours, we deployed IBM Crisis Response Teams in India, Indonesia, Sri Lanka and Thailand to assist local governments and relief organizations," said IBM Chairman and CEO Sam Palmissano.

"These teams are prepared, skilled and authorized to coordinate IBM's response to situations like this one. Our support in Asia includes hardware, software and, most important, our expertise, which are being applied to the design and implementation of systems for tracking missing persons, fatality data, logistics management, donation management, volunteer coordination and unique government social and financial support systems. Our teams are building systems and solutions that can be applied across agencies and the affected countries. We are also working directly with United Nations
agencies and international relief organizations to help coordinate technology support. I authorized a preliminary allocation of $1 million to support these relief efforts."

"Honeywell will donate $1 million to assist with relief efforts in the areas most severely damaged by last week's disaster. The donation, made through Honeywell Hometown Solutions, will target programs to rebuild damaged and destroyed communities and provide basic necessities for survivors," explained Honeywell CEO Dave Cote. "Several Honeywell employee teams from around the world have already united in volunteer efforts. A Honeywell team from Bangalore, India, is supporting a 90-day construction effort to rebuild
50 houses in one of the most severely affected villages. Separately, each of Honeywell's 1,500 employees in Pune, India, has agreed to donate one day's salary to relief efforts. Teams of employees have also delivered clothes, utensils, and other basic amenities to the affected village of Kulachol, India."

"I know everyone in the Canadian automotive aftermarket industry joins me in saying that our thoughts and prayers are with the millions of people who are suffering as a result of the catastrophe," says Datt. "In the coming weeks and month, if the disaster relief teams require any kind of automotive aftermarket expertise in the rebuilding effort, we would be happy to coordinate a volunteer effort."

The AIA, Jobber News Magazine, SSGM and Autoserviceworld.com would like to thank the following companies and individuals for making a contribution to the Automotive Aftermarket Tsunami Relief Effort:

Action Automotive & Towing
Accesoires d'autos Roberval (1986) ltée
Aero P.R. Services Ltd
AIA Manitoba Division
Auto Atlantic Magazine (ALFERS ADVERTISING)
Amin Zaman, AZ-Co International
Andrew Ross, Jobber News Magazine
A-Star Automotive Recyclers Ltd
Auto Sense Auto Parts
Automotive Parts Centres Corp, Vicky Baroudi
B&B Dixon Automotive Inc.
BASE Automotive
Bruce & Debra Hague
Bumper to Bumper Hanna
Chieftain Auto Parts (1987) Inc.
D&T Auto Parts Ltd
Dempster's Automotive Supplies Ltd
Excel Sales
Exide Canada Inc.
Gates Canada Inc.
Gorwood Automotive
McArthur's Automotive & Supply Ltd., Gwen McArthur
Hood Hardware and Automotive Ltd
Industrial Supplies Ltd
John Morris, Marcovitch Public Relations
John Vanstone, Specialty Sales & Marketing
Keith Gordon, Specialty Sales & Marketing
Ken Coulter, Specialty Sales & Marketing
Lavoie & Beaudry Inc.
Lisa McClelland, NAPA Canada
Loran Faraday, Exide Canada Inc.
Marc Brazeau, AIA Canada
Mike Bryan, Michael Bryan & Associates
Paint FX Autobody &
Parcoll Products Limited
Parts Unlimited Inc.
Phillipe Sirois, NAPA Canada
Pico of Canada Ltd
Pièces d'auto Blouin & Roy Inc.
Pieces d'Auto Leon Grenier Inc.
Pieces d'auto MB7 Inc.
Pieces d'autos B.L.
Pieces d'auto de la Baie, Marcel Mercier
Pieces d'auto S.M. Inc., Serge Millette
R.A.D. Limited
Rayner's Automotive Ltd
Replacement Parts Depot Limited
Richard Repair Services Ltd
Roland Zikmanis, Clearwater Impex Group
Serge LeBlanc, Specialty Sales & Marketing
Sherri Langfield, Specialty Sales & Marketing
SOLVIT
Southside Auto Supply Ltd
Stewart Auto Parts Ltd., Mary Wilson
Tom Wilson, NGK Spark Plugs
Trimax Automotive Parts Inc.
Ultra-Fit Exhaust Systems
Wakefield-Sperling Auto Parts
Zurawel Patton Sample

(see headlines)

Canada's only nationwide collision repair network, CARSTAR Automotive Canada, is celebrating its 10th anniversary this year. In December 1994, the licensing rights for CARSTAR in Canada were awarded and since then the company has grown from 8 locations in one province to 107 locations in 9 provinces. Total network sales for CARSTAR Automotive Canada have climbed to over $130 million annually.

"This is an incredible landmark for our company," said Sam Mercanti, President and CEO of CARSTAR Automotive Canada. "We have a proven track record of providing the highest quality collision repairs in Canada, superior customer service, and improved turnaround times. All vehicles repaired by CARSTAR are backed by an unprecedented nationwide, lifetime guarantee."

CARSTAR also works very closely with its partners, from insurance companies to vendors. Since being established in 1994, CARSTAR has over 15 partnerships with major insurance companies across the country.

"We are so grateful to all of our partners. We would not be as successful as we are today without their help and support throughout the years," said Larry Jefferies, Executive Vice President of CARSTAR Automotive Canada. "And it is our franchisees across the country that make the CARSTAR name live up to the high level of quality that consumers have grown to know and expect."

There have been other milestone achievements over the past 10 years. Brand awareness among consumers was non-existent, and now it is at 16.4% across Canada. Also, CARSTAR franchisees are excelling and growing in market share and now over 30 stores in the network are multi-store operations.

"We have aggressive goals for the future, including having over 200 locations throughout all major markets in Canada and to reach a goal of between 10-20% market share," said Mercanti. "And with this team of insurance partners, vendors, our staff and franchisees, I have no doubt we will reach these goals."

(see headlines)

The Automotive Industries Association of Canada has announced that it has partnered with The NPD Group Inc. to provide consumer market research in the automotive aftermarket sector to its members.

"In recent years AIA members identified a need for consumer research into channel preferences and consumer demographics," says AIA president Ray Datt. AIA produces a number of statistical reports, such as the biennial Outlook Study. "Members continue to find the Outlook Study information useful, but they were also looking for AIA to provide supplementary information on automotive aftermarket consumer trends."

"NPD is honoured to partner with AIA," says Bob McPherson, vice president, NPD Group Inc. "AIA has a long and distinguished track record as a vital and vibrant association. AIA continuously strives to better meet the needs of its members, and this report is yet another example. We are confident the Association and its members will find the AutoTrac information useful in better understanding consumer attitudes towards automotive aftermarket service repairs."

AIA struck a task force, lead by Larry Raymond of Blue Streak-Hygrade Motor Products, to guide the Association in determining the needs and resources required to better meet member needs in the area of consumer market research in the automotive aftermarket sector. The task force determined that the industry had made inroads at gaining knowledge into the automotive service provider sector, but did not have adequate data into the behaviour, choices and habits of the consumer. After an extensive search process, AIA chose to work with NPD Group and its AutoTrac online survey to follow consumer trends
in a number of categories including: Replacement Parts, Motor Oil, Appearance Products, Performance Additives, Installed Service, Customer Paid Loyalty Service, and Motor Fuels.

AutoTrac will monitor total service occasions and break the occasions down by total national and regional categories. The service information will include service occasions by outlet type, by age of vehicle, and type of service. NPD will provide AIA with aggregate data including analysis on outlet loyalty and the factors that drive consumer loyalty and frequency of service. The research will also track the awareness and habits of consumers
in response to the Be Car Care Aware consumer education program in Canada.

"This report will be an excellent addition to our market research line-up and will assist us in our on-going efforts to provide AIA members with timely information and analysis to assist them in making informed business decisions," says Datt.

The initial findings of the NPD research for AIA will be shared at the AIA Aftermarket Conference for Executives to be held May 24 to 26 in Ottawa, Ont.

(see headlines)

The intense snowstorm, called an " Alberta Clipper" on Saturday, dumped some 25 centimeters of snow in just 6 hours over the southern Ontario region and more snow, up to 30 centimeters in the Thorold/St. Catharines area of Niagara region.

A number of major escarpment accesses were closes at various times as tandem snowplows could not see each other in the blinding snowstorm.

About 75 people were trapped on the Lake Ontario waterfront around Confederation Park and were taken inside a local restaurant until roads were cleared.

Motels and hotels reported turning people from already fully booked facilities or having them stay in the lobby while the roads was plowed and the snowstorm abated.

Police reported hundreds of minor collisions in the Hamilton and southern Ontario areas. No traffic related injuries or deaths were reported.

By 11 am Sunday, Hamilton police had responded to 744 emergency calls.

Police couldn't say how many were snow-related accidents but Staff Sergeant Ian Matthews said they had to close the collision reporting centre to keep people from venturing out into the storm and possibly getting into an accident themselves.

OPP reported 1,242 car accidents by 5:00 pm Sunday. Most were in the GTA and were low speed collisions into guardrails, ditches and each other. There were no fatalities.

(see headlines)

Hit-and-hide Policy

Bajans paying dearly to keep accidents secret

Some vehicle owners are digging into their pockets to pay for their own accident repairs and avoid higher premiums from insurers.

Local garages are reporting that the prevalence of this practice ranges from 25 per cent to 70 per cent of their collision repair business.

They have noted that the practice was prevalent among owners whose premiums were already high, those with multiple accidents in a short period of time, and those whose teenage children were not listed on the insurance policy.

One garage owner, who asked not to be identified, said the practice was very widespread.

"From a one to ten ratio, at least seven of the persons coming to have their vehicles repaired following an accident do so from their pockets," he said.

PAY FROM POCKETS

Manager of De Auto Spot Inc, Errol Medford, said at least 50 per cent of his clients usually 25 to 40 years old, whose vehicles were damaged in accidents, preferred to pay from their pockets.

But director of Prestige Collision and Coach Builders, Anthony Barrow, said people in this category accounted for no more than 25 per cent of his business, with parents whose children damaged the cars and those with at least three previous accidents being the main clients.

With costs ranging between $500 and $4500, Barrow said his garage fixed an average of one to two cars under such conditions per month, but the figure increased to four and five cars during July and August.

Barrow noted that each year he also did a certain volume of business for elderly drivers who also sought to have repairs done without alerting their insurers.

"They are very sensitive when they get into accidents and they don't want the insurance companies to know for fear of further problems which they were likely to encounter," he said.

MORE BENEFICIAL

One garage owner is advising that it might be more beneficial for these drivers to file their accident claims.

"Anybody with a $4000 to $5000 repair job could claim it on the insurance because it would be cheaper for them," he said.

He said drivers believed that once they caused an accident their premiums would jump, but in reality they only increased by $1000 in some instances.

General manager of Consumers Guarantee Insurance, Peter Harris, said insurance companies were aware that vehicle owners were not reporting accidents to them and paying for the repairs themselves. He added this trend was beneficial to the insurance companies.

However, Constable Shawn Holder, attached to the Training Division of the Royal Barbados Police Force, has warned motorists that all accidents, whether minor, serious or fatal, must be reported to the police.

Failure to do so was an offence which carried a fine and/or imprisonment.

(from the Daily Nation, Barbados)

(see headlines)

Before paying any invoice, businesses and consumers should:

Take careful note to determine if they have agreed to purchase the product or service involved

Call the phone number listed on the invoice for further details, if there are questions about an invoice

Contact the usual sales representative to verify the legitimacy of the invoice if there is any doubt

If an invoice has been mistakenly paid, assuming it was a genuine invoice for services rendered, call the company and request an immediate refund. It is an offense under section 52 of the Competition Act for anyone, for the purpose of promoting a business interest or product, to knowingly or recklessly make a representation to the public that is false or misleading in a material respect.

The Competition Bureau examines complains of suspected misleading representation in the marketplace. Businesses and consumers who believe they have been misled should contact the Bureau toll free at 1-800-348-5358 or visit the Bureau’s web site at www.cb-bc.gc.ca

HARA UPDATE TO MEMBERS
This is further to our warning to you dated August 17, 2004. We wish to reiterate that the invoicing and billings you may have received from CIAG (Collision Industry Action Group) are not authorized by HARA. Despite the implication in their letter that “Through the payment of your membership dues, you are enabling your local trade association and CIAG to represent your interests with government” and “CIAG and its local trade associations have been holding meetings with collision repairers”, CIAG is not working with your local trade association (HARA). On June 21, 2004, CIAG, in writing, advised HARA that they would avoid contact with HARA, and we have not heard from them since that date. Some of our members have received unsolicited invoices and / or telephone calls falsely advising that “HARA is not your trade association”. We believe this to be an unprofessional business practice that should be terminated immediately. If you have been subject to such business practices, please let the HARA office know at 1-866-309-4272 or hara@ciia.com

On your behalf, HARA continues to provide innovative and cutting edge programs, training and other benefits to our members. Do not be misled by unsolicited invoices that you receive by mail, e-mail or facsimile transmission.

(see headlines)

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)

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)

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)

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)

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)

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

(see headlines)

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)

(see headlines)

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

(see headlines)

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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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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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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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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