TORONTO, May 17 /CNW/ - The McGuinty government will reduce the dropout rate and create new opportunities for all students with a $158 million secondary school investment, Education Minister Gerard Kennedy said today as he announced the first details of the $820 million 2005-06 increase to publicly funded education.

"We have undertaken a concentrated program to transform our high schools so they are equipped to unlock the potential of every student," said Kennedy. "We will dramatically reduce Ontario's unacceptably high dropout rate and give all high school students the ability to succeed in their destination of choice - whether that means a work placement with training, apprenticeship, college or university."

The McGuinty government has increased its investment in education to over $17 billion since coming to office. Of the $820 million boost for education in this year's overall budget, $158 million will be allocated to the Student Success Program. Last year, $100 million was invested in initiatives to help more high school students graduate and lower dropout rates. An estimated 30 per cent of high school students are at risk of not graduating.

The government will continue to invest in programs to keep students learning, at least to age 18. The comprehensive plan to fundamentally shift the role of high schools includes:

- $89 million for 1,300 new high school teachers, contingent on successful labour agreements. At least 800 teachers dedicated to the student success program,
- At least one student success teacher in each school to work with students who need extra help,
- Lowered class sizes in specific courses and more resource teachers, such as librarians and guidance counselors that benefit all high school students,
- $23 million in special projects to support struggling students and students with English as a second language - more details of thisinvestment will be announced soon,
- $14.5 million for textbooks for secondary schools.

In addition, $31 million has been allocated in one-time funding to support student Success, this includes:
- An additional $25 million, for a total of $45 million, for technological education programs - New equipment, expanded programs and increased opportunities for students,
- $6 million to purchase new resource materials for secondary school libraries.

Over 70 per cent of parents expect that their children are headed for university, but only 33 percent of high school students go on to university after graduation. The Student Success Program provides experiential learning that gives students workplace skills and experience - so every student, including those who do not choose university, have a good outcome from their high school education.

"From horticultural studies to culinary arts to avionics and construction, our high schools will give students more exposure and preparation for in-demand skilled trades and apprenticeships," said Willowdale MPP David Zimmer who joined Kennedy at Newtonbrook Secondary School. Other student success initiatives already underway in Ontario high
schools include:

- Student success leaders in every school board,
- Resources for principals and teachers to deliver local action plans to meet the specific needs of students,
- Revisions to the curriculum to offer more flexibility and options, and
- Training for teachers.

An upcoming announcement will provide details about increased funding for library resources and special projects for secondary schools.

Significantly higher test scores in reading and writing illustrate the impact the student success initiatives are having on student achievement. The percentage of first-time eligible English-language students taking applied courses who passed the Grade 10 literacy test went from 49 per cent in October 2003 to 62 per cent in October 2004 - a 27 per cent increase.

(see headlines)

In a May 20 Chapter 11 filing in U.S. Bankruptcy Court in Cleveland, the company that does business under the name "Warranty Wizard" said it had liabilities of $8.8 million and assets of $948,57 5

(courtesy UCDA)

(see headlines)

Canadian collision industry professionals who attended the May 13, 2005 "Aluminum Repairs - Evolution or Revolution" seminar now have an increased knowledge base of where the industry is headed in the future with aluminum materials and vehicle makers' designs. Not only were attendees given presentations by industry leaders but they were also the first participants to ever see the newest I-CAR training program - Aluminum Panels and
Structures Damage Analysis (DAM05) - during a pilot for the program slated for release later this year.

"CARSTAR is the leader in the Canadian collision industry. As such, we have an obligation to our franchisee's, our insurance partners, and our suppliers to dispel the myths about aluminum, high-strength steel, and other new materials being used by the OEMs. This one-day seminar showed us that I-CAR is the leader in sharing this information with us and our stakeholders. All of us now have a better understanding of what our needs are to handle these new vehicle designs, so that we can complete repairs to the manufacturer's
specification. This will ensure that our mutual customers, the vehicle owner, will have their repairs done right at our CARSTAR locations across Canada. My sincere thanks to I-CAR, and its team for a bang up job!" said CARSTAR Automotive Canada President and CEO Sam Mercanti.

Steve Marks, I-CAR Industry Support Manager, presents to a full classroom on the topic of "Automotive Trends."

Mark Kadrovach of Audi of America addresses the attendees during one of the aluminum presentations.

Attendees learn about OEM aluminum repair networks from Eric Leport, BMW Canada.

An overview of the seminar events includes:

"Automotive Trends"
Presenter - Steve Marks, I-CAR

This presentation offered insight into emerging technologies being used by vehicle makers. Topics discussed included aluminum vehicle construction, new advanced high strength steels, and the use of new composite materials. There was also a brief overview of some of the electromechanical systems being introduced on some of today's vehicles.

"OEM Aluminum Repair Networks"
Presenter - Mark Kadrovach, Audi of America and Eric Leport, BMW Canada

OEM representatives were on hand to cover information on their respective aluminum repair networks. Topics discussed include equipment and repair facility requirements and information on training requirements.

"Aluminum Panels and Structures Damage Analysis (DAM05)" I-CAR Instructor - Steve Hudey, Manitoba Public Insurance

I-CAR conducted the pilot class of this new I-CAR training program. This was the first time that this program was seen by the public. The class not only provided attendees with the knowledge essential for accurately analyzing damage on aluminum-intensive vehicles, it also offered an opportunity for attendees to add input for suggested changes to the program before its North American release. Topics discussed included aluminum characteristics, aluminum-intensive vehicle designs and construction, damage analysis, and information on panel attachment, removal, and installation methods.

CARSTAR Automotive Canada Executive Vice President Larry Jefferies added, "In addition to the obvious need and value of having the knowledge and training on the technical aspects of new vehicle technology, the manner in which I-CAR is focusing on engaging the OEMs and ensuring the professional collision repairer has the opportunity to work with them is of great benefit to all. Thanks!"

The event took place at the CARSTAR location in Mississauga, Ontario and was widely attended by various Canadian collision industry professionals.

Attendees, who represented collision repair facilities and insurance companies, were also provided breakfast and lunch courtesy of CARSTAR.

Congratulations on the success of the event. Keep your eyes on the I-CAR class schedules for the eventual release of Aluminum Panels and Structures Damage Analysis (DAM05) later this fall!

(see headlines)

CISCO PROVIDES UPDATE FOR ONTARIO SHOPS

May 31, 2005

An update to the Ontario collision repair industry from the Collision Industry Standards Council of Ontario (CISCO) representing collision repair facilities in this province.

In 1999, representative of all local collision repair trade associations in Ontario, formally incorporated the non-profit Collision Industry Standards Council of Ontario (CISCO), to represent the auto body, collision repair and auto refinish industry. CISCO had one goal - the establishment of legislated self-managed shop accreditation program. The vision of an industry-managed provincial-wide voice of professional, competent and caring collision repairers operating on a level-playing field of fairness was the motivator.

The goal was the passage of legislation at Queen's Park to put into form a Bill that would ensure self-management and a series of mandatory shop standards for equipment, legal compliance and customer service that were fair and reasonable, protected the public and encouraged good and honest operations in the industry.

Twenty-five stakeholder meetings were conducted, insurer and government organizations consulted and in December 2002, the legislature approved a private members' Bill introduced by Conservative MPP'S Frank Klees and Rob Sampson - Bill 186, the Collision Repair Standards Act (2002). Although celebrated by industry, the Act has never been proclaimed and efforts by CISCO to encourage government enthusiasm to put the Bill into force continue to be met with reluctance.

Segments of the Collision Repair Standards Act have been implemented in other legislation - provincial controls on "bandit" towing are in front of Cabinet, disclosure of aftermarket parts and full identification of repair costs to consumers takes effect July 30, CISCO standards have been accepted by other national organizations and insurance companies and municipal By-Laws have adopted CISCO's standards as their own. Despite these successes, we still have not achieved the industry dreams of a self-managed provincially mandated program.

We want to move forward with identifying to government the advantages of the implementation of Bill 186, and need your help. Consultants, lobbyists, meetings and efforts to attract other levels of support are expensive, and we are asking for your contribution to CISCO, to allow us to help our industry. We have to gain control and direction over our industry. We have invested our lives and our children's future into our shops, only to watch the backyard, illegitimate shops take our business away. How can we compete with shops that do not pay taxes, and perform improper repairs? Others have controlled and made decisions that have not always been in our best interests and we have to stand together as an industry so that we can control the direction of our businesses. In 1999 you chose twelve individuals through your local associations, listed below, who have unselfishly spent many hours over the last six years away from their businesses to help all of us. Unfortunately, it takes money to take action, and while most of us have everything invested our businesses, considering the size of our current investments, a donation to CISCO is the best investment we can ever make for the future.

Please help us with your contribution of $100.00, $150.00 or $200.00 or more. Cheques made payable to CISCO can be forwarded to 34 Plaza Drive, P.O. Box 63051 Dundas, Ontario L9H 6Y3.

Information on CISCO can be found at www.ciia.com/provinces/ontario/cisco.html.

Thank you,
On Behalf of the Board of Directors,

Tony Canade, Wes Killins, Randy Sundell, Bill Davis, John Norris, Don Teevens
Brian Good, John Reiner, Mike Wilson, Walter Grego, Doug Rothwell

Alex Szabo
CISCO President
905-627-5458

(see headlines)

CCIF Chairman Larry Jefferies will open the meeting at 8:00 am, following registration and breakfast beginning at 7:00 am.

CCIF is an open forum that brings together all industry participants including collision repairers, insurers, suppliers, service providers and associations. CCIF meets fours times a year in different cities across Canada focusing on actions that bring change on issues such as performance, profitability, efficiency, professionalism and "Need to Know" topics.

Jefferies calls for more collision repairers to participate in CCIF. "There are hundreds of CCIF participants," he says, "but there should be thousands. Through CCIF their voice influences and drives those that can make a difference for our industry - AIA, I-CAR, CARS, trade associations. We must leverage CCIF's strength and take the industry to a new level."

The morning session covers topics of industry interest, followed by the afternoon session, which offers attendees the opportunity to join break out discussion groups to address industry issues.

A reception will take place after the meeting at 5:00.

For further details you may contact CCIF Administrator Mike Bryan at Tel: 905 726 9027 or e-mail administrator@ccif.net

Download registration form from CCIF web site. (Adobe Acrobat)

(see headlines)

Canadian property and casualty insurers lifted net income for the first quarter of this year by 16% to $683.5 million compared with the $589.6 million reported for the same period in 2004, according to industryfinancial data collected by the Office of the Superintendent of FinancialServices (OSFI). The OSFI data indicates that insurers' net profitability
for the latest quarter was driven by a significant gain in underwriting while investment earnings declined and premium growth flattened.

The industry boosted its underwriting profit for the first quarter of this year by 57% to $392.6 million compared with the $250.1 million reported for the same period in 2004 (insurers produced an underwriting loss of $171 million for 2003's first quarter). Insurers' claims costs for the latest reporting period clocked in 1.2% higher at $3.27 billion versus the $3.24 billion disclosed a year ago.

Notably, net written premium growth for the latest quarter dwindled to a mere 4% at $4.42 billion compared with year-on-year growth of 27% for the first quarter of 2004. Similarly, net earned premiums for the first quarter of 2005 rose by 6.5% to $5.2 billion versus the 23% year-on-year growth rate achieved for the same period last year. The modest rise in premiums (despite the almost flat growth in claims costs) tempered the improvement of the
industry's combined ratio which clocked in at 92.8% for the latest quarter - showing a 2.4 percentage point reduction on 2004's first quarter ratio of 95.2%.

Although insurers were able to lift investment income for the first quarter of this year by 6.5% to $399.5 million (2004 1-Q: $374.8 million),companies' realized gains dropped by 22% to $182.4 million compared with the $234.3 million posted for the same period in 2004. As a result, total net investment income (income and realized gains combined) for the latest quarter came in 5.5% lower at $560.1 million versus the $593.8 million
reported a year ago.

(courtesy Canadian Underwriter)

(see headlines)

The Registered Insurance Brokers of Ontario (RIBO) are contacting some 400 people known to have purchased home, car or commercial insurance policies from York Commonwealth Direct Insurance Company through Peter Bariamis to inform them that York Commonwealth Direct Insurance Company is not licensed to write insurance in Ontario.

"Our primary concern at this stage," says RIBO CEO Jeffrey Bear, "is to advise anyone that has purchased insurance from Peter Bariamis that their insurance is not valid and they need to take immediate steps to protect their interest by contacting another insurance broker or agent. In other words, they cannot drive their car until they acquire legitimate insurance. If they have purchased house or commercial insurance, once again, they do not have valid insurance and need to contact another insurance broker or agent immediately to make sure they have proper coverage. "

RIBO's first priority is the protection of the public. "This is why," says Mr. Bear, "we have taken Mr. Bariamis' consumer list and used it to contact every person we are aware of that may have dealt with him."

RIBO advises anyone who has recently purchased insurance from Peter Bariamis that has not already been contacted by RIBO to please call (416) 365-1900 to assist with our investigation.

RIBO is working in coordination with local police and other insurance regulatory bodies, including the Financial Services Commission of Ontario (FSCO).

(see headlines)

Mary Anne Chambers, Ontario Minister of Training, Colleges and Universities presents a trophy to Tony Nero, owner of Regent CARSTAR Collision, to recognize the company's leadership in apprenticeship training. The company was one of 16 businesses recognized at the Minister's Awards for Excellence in Apprenticeship Training, held in Toronto last evening, and one of four to receive a trophy

(see headlines)

"Akzo Nobel continues to demonstrate its commitment to corporate citizenship and stewardship in North America by providing grants," said CIAI Advisory Council member Don Treschak. "The grants chosen this spring by the CIAI will provide much needed assistance towards the growth of the industry. It is great to be a part of a project that carries such a positive impact on our industry. Be it small or large, this is truly a unique position for a
company to take in the marketplace, and I commend Akzo Nobel for doing it."

This meeting marked the first application review since Akzo Nobel launched the initiative in September of 2004. The Council reviewed the applications and awarded grants, totaling approximately $50,000, to roughly half of the petitioners who are currently in the process of being notified.

"We identified numerous applicants whose requests were worthy of note," said the Chair of the CIAI Sheila Loftus. "The council decided to award grants that covered a wide array of needs and aligned with the mission of the organization. Grants were awarded to four schools, three individuals and one organization. Recipients were from Canada and the United States," explained Loftus.

Also during the March meeting the CIAI Advisory Council established new guidelines for future requests. Applicants that were awarded grants can apply for similar grants every other year. Applications that were sent in but not awarded can be resubmitted. New requests that are non-related to previous submittals will also be accepted.

All requests should provide all of the necessary detailed information. The CIAI Advisory Council will meet again in October. The deadline for submitting applications for review is Friday, September 30, 2005.

Requests to the Collision Repair Industry Advancement Foundation can be made through the Akzo Nobel Car Refinishes we site, www.akzonobelcarrefinishes.net

The CIAI Advisory Council meets twice annually to review requests for support. Akzo Nobel will then disburse funds based on the recommendation of the council.

(see headlines)

MISSISSAUGA, ON - PPG Canada Inc. and the CertifiedFirst® Network are helping to grant wishes with the Starlight Starbright Children's Foundation.

The Ontario Chapter of this non-profit international organization will use a donation from the CertifiedFirst Network to help a child who suffers from illness realize a dream of a lifetime.

"As a caring supporter of the community, PPG Canada is proud to be associated with the Starlight Starbright Children's Foundation by granting a wish that turns a child's dream into reality," said Lee Smith, director, Refinish, PPG Canada. "Believing that excellence in business and high ethical standards go hand in hand, we are dedicated to being a good
corporate citizen in the communities, like those in Ontario, where we work."

The Starlight Starbright Children's Foundation is a non-profit organization dedicated to brightening the lives of seriously ill children and their families by providing a broad array of both in-hospital and out-patient programs designed to enhance their ability to cope with the stress of illness. The Starlight Starbright Children's Foundation Canada is able to touch the lives of over 8,000 seriously ill children and their families each month.

"With support from companies like PPG and the dedicated supporters and volunteers so vital to our organization's success, we pledge to fulfill the hopes and expectations of the children we serve," said Camille Alexander on behalf of Starlight Starbright Children's Foundation.

(see headlines)

Toronto-based Imperial Collision Centres and Oaktown Collision Centres have merged. The new entity, Collision Care Canada Inc. (CCC), was approved by the board of directors and shareholders of each company at an April 5 meeting.

"There are three fundamental reasons that drove the merger," says company chair and CEO Desmond D'Silva. "[They are] an alignment of core values, the opportunity to improve collision repair economics and the development of a unique and differentiated value proposition for our key insurance partners."

CCC will comprise 10 corporately owned collision repair facilities in the greater Toronto area.

Phrase one of the merger involves focusing on the consolidation of all back office functions -- the business services required to support the organization's combined $30 million in annual throughput.

The merged company will repair at least one out of ten cars involved in a collision in the Greater Toronto Area and intends to grow market share through store sale increases and business unit acquisitions.

"A priority will be to leverage our market share and size to create new and improved operational efficiencies within our existing operations," says president and chief operating officer Tony Canade. "A strong foundation built with the goal of operational excellence and predictable outcomes will form our platform for future growth."

(see headlines)

An updated set of satellite training programs will begin May 3 on Collision TV, an interactive distance learning tool offered by I-CAR, CARSTAR Canada and Canadian Automotive Repair & Service (CARS) Network.

Broadcasts are scheduled every Tuesday evening from May 3 to June 28, and can be viewed at about 50 locations across Canada. Topics include aluminum technology, spot welding, corrosion protection and airbags.

Check www.i-car.com for a complete schedule and viewing locations.

(see headlines)

May 2, 2005

A number of workers in the autobody and collision damage repair trade have been employed in the trade in excess of the 7000 hours required for a licensed technician. However, they’re not registered technicians.

Traditionally the only way to become a licensed technician would be to complete an in-school learning portion of 720 hours for training as a registered apprentice and an approximate time of three years working with a qualified technician, before challenging the qualification exam. An alternative process is also available. CIIA.com has introduced a free package. Included in the collision repair, auto body and auto refinishing package are:

- Process for trades equivalency including application page

- Curriculum of competencies required

- Pre-license training class information

- Fee information for license exam

- Grants, incentives and tax deductions to hire an apprentice

- Ten Top Steps to Become a Collision Repair Apprentice

If you need this free package or have an employee who has never completed trades school or completed his/her Certificate of Qualification exam, please contact us.

Please call CIIA at 1-866-309-4272 or e-mail info@ciia.com

The online version of the Top Ten Steps to Become a Collision Repair Apprentice can be found at:

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

(see headlines)

The Ontario Ministry of Transportation (MTO) have been active in enforcement of the Salvage Branding and Inspection program since becoming mandatory in the province in March 2003, with charges laid totaling 454.

There are approximately 550 salvage vehicle inspection stations in the province that are licensed by the Ministry to structurally inspect vehicles Successful completion of the inspection is required for a vehicle registration status to be changed from "salvage"- meaning potentially rebuildable to "rebuilt"- meaning the vehicle has passed a structural inspection and is structurally fit.

Inspections by the MTO found:

One location that was operating so poorly that over 190 charges was laid at that firm alone.
A number of inspection stations that were charged with issuing a false statement, when "rebuilt " vehicles were found to have structural variances more that the 3 mm allowed in regulations
Instances when the used parts identified by the inspection station as being used on the repair of a "rebuilt" car actually showed a VIN from an on-road vehicle. Further investigation showed that a major insurance company had taken ownership of a car, sent the car to an salvage yard and the parts from that car used to rebuilt another, which was successfully inspected then licensed. The insurer never changed the original registration for the donor car into their name as required in law.
A salvage inspection station apparently never used their frame measurement equipment yet generated structural measurement figures
The same repair technician at more then one-inspection station inspected significant numbers of cars in one day at several different locations. His signature was not always the same.
Complaints investigated also came from purchasers of "rebuilt" vehicles

The complete inspection process, including equivalency standards for other provinces and states and Inspection Requirements and Performance Standards for inspection stations can be found at: http://www.ciia.com/mandatorybranding.html

For further information and how to become an inspection station, please call the collision repair trade association at www.ciia.com or info@ciia.com or 1-866-309-4272.

(see headlines)

BY TONY VAN ALPHEN

TORONTO - The sputtering, dilapidated clunker is more popular than ever.

Chances are one of the vehicles beside, behind or ahead of you on the road today is at least 10 years old.

About 37 per cent - more than 6.7 million - of the cars and trucks in operation across the country were 10 years or older in 2003, according to statistics from auto researches R.L. Polk Canada Inc. Forecasts for 2004 show the trend continuing but final vehicle registration data are not yet available.

That's a huge jump from 1989 when 24.7 per cent or 3.6 million old-age vehicles occupied the roads.

Polk's statistics also show the number of vehicles that are 16 years or older has shot up. Fourteen per cent or 2.5 million of those rusting models rattled along roads in 2003 and 2004. In 1990, only 6 per cent or 933,000 could still wheel around.

Industry watchers say Canadian motorists are hanging on to their old autos because automakers have improved the quality and durability of vehicles dramatically.

Auto analyst Dennis DesRosiers said one of the major changes driving longer lasting vehicles is the use of galvanized steel in the bodies of autos. The trend away from carbon steel, which is more susceptible to corrosion, started in the late 1980s.

But DesRosiers noted stats and forecasts show the number and percentage of clunkers on the road has started to stabilize during the last few years.

Although sales dipped in 2003 and 2004, healthy sales of new autos over the last five to eight years are a strong sign against a further rise in older vehicle numbers, he said.

Polk also found the average age of an auto in Canada has climbed from 7.16 years in 1989 to 8.47 in 2003.

Toronto Star

(see headlines)

General Motors is voluntarily conducting a safety recall of nearly 1.5 million full-size sport utility vehicles and crew cab pickup trucks because the routing on the second-row center occupant seat belt may make it difficult to properly position the lap portion of the belt. *
The lap portion of the seat belt routing should be low and snug on the hips to minimize the risk of abdominal and internal organ injury in a crash.

GM is not aware of a single incident in which this condition has been alleged to have caused or contributed to any injuries, and statistical analysis indicates a very low likelihood of this condition occurring. There was no National Highway Traffic Safety Administration investigation into this condition.

"Our commitment to promoting safety and to reminding everybody to buckle up properly on every trip led us to this decision," said Bob Lange, Executive Director of Structure and Safety Integration. "Recalling these vehicles to provide improved routing of the lap belt is an important precautionary measure."

Dealers will repair the safety belts for free.

A total of 1,486.502 Chevrolet Silverado Crew Cab, Suburban, Tahoe, Avalanche; Cadillac Escalade, Escalade ESV, Escalade EXT; GMC Sierra Crew Cab, Yukon XL, Yukon; and Hummer H2s from the 2003-2005 model years included in the recall.

Most of those vehicles (1,359.824) were sold in the United States. Some were sold in Canada (75,507); Mexico (9.464) and through the North America International Product Center (40,607) and to the European Community (1,356).

GM also announced the following:

A safety recall for 332,202 (1500 Series) Chevrolet Suburban and Yukon XL from the 2000 and 2001 model years for possible overheating of fuel pump wires that could lead to engine stalling or failure to start, a possible fuel leak and/or inaccurate fuel level readings. Owners will be notified of the condition in May and again when parts are available later in the year.
GM knows of no crashes or injuries related to the condition.

A safety recall for 142,585 (1500 Series) 1999-2002 Chevrolet Silverado and GMC Sierra pickups and (2500/3500 Series) 2001-2004 pickups with manual transmissions for parking brake friction than can lead to parking brake ineffectiveness and possible movement of unattended vehicles.

A safety recall for 69,037 Buick Lacrosse and Buick Allure (Canada only) 2005 models for a possible bent clip that secures the brake pushrod to the brake pedal arm pin. If a bent clip came off, brake loss would result and a crash could occur. GM is aware of one low-speed crash but no injuries due to this condition. Owners are being notified April 29 of the recall. Dealers will repair the condition for free.

A safety recall for 39,078 Buick Rendezvous and Pontiac Azteks from the 2004 model year for intermittent stalling or failure to start due to a faulty ignition relay. GM is aware of one minor crash but no injuries due to this condition. Owners will be notified May 4 to bring their vehicles to their dealer for free repairs.

A non-compliance recall for 22.115 Saturn L Series Wagons from the 2002-2004 model year. These vehicles were built with a center and passenger side rear seat belt anchor that do not comply with U.S. and Canadian safety standards. Saturn retailer will install a rear seat center belt anchor reinforcement plate to the floor pan of the vehicle to correct the condition. GM is aware of no injuries related to this condition. A total of 2,091,819 vehicles are included in the six recalls.

(see headlines)

Some customers of M2 Collision Care Centers yesterday began claiming cars that had been under lock for a week following the seizure of the company by its creditors.

"All 27 of the M2 locations should be open by (today) for people to reclaim their cars," said Bob Hoder, vice president of CMA Business Services, the company appointed last week to liquidate M2 Collision. "We have been working as fast as we can to get those cars back to their owners."

As many as 2,000 vehicles statewide were locked inside auto repair shops after M2 Collision creditors turned the business over to liquidators April 17.

The state Bureau of Automotive Repair urged consumers to work through their insurance companies to regain custody of their impounded autos.

"Working with your insurance company is the best thing you can do right now," said Patti Roberts, a spokeswoman for the bureau.

CMA held a sealed-bid auction for M2 shops Friday, reviewing offers and notifying successful buyers Friday night. CMA was able to sell 21 of the shops and plans to liquidate the others if no buyers surface in the next few days, Hoder said.

Three San Diego County locations were sold for an undisclosed price to Pacific Collision, a Yorba Linda company that operates five other locations. The company bid on M2 shops in Carlsbad, Escondido and near the Sports Arena in San Diego, as well as a fourth shop in Cathedral City, near Palm Springs.

"We've wanted to come to San Diego for the past couple of years, so this looked like a good opportunity," said Steven Vettel, president and chief executive of Pacific Collision.

A fourth San Diego County location, in Kearny Mesa, was sold to Tri M Industries, Hoder said. He could provide no further information about the company.

Vettel said Pacific Collision representatives spent the weekend in the San Diego shops, taking photos and doing an inventory of vehicles in various stages of completion.

"We'll be working with insurance companies and claimants to help them get their cars to other repair shops," Vettel said, indicating that Pacific Collision will not try to finish work on partially repaired cars.

"I know there are some people who are very upset with this situation," he said. "Our goal is to help them get their cars somewhere where repairs can be made as fast as possible. We decided we didn't want to get in the middle of trying to fix these cars."

Vettel said he would be looking to rehire former M2 employees at the shops that Pacific Collision took over.

Hoder said most of the M2 locations were sold to small auto repair operators. Pacific Collision bought the most shops at four, while several other companies purchased two shops each, he said.

He urged consumers to call the location where a car is being held to determine when it might be available for pickup. Some M2 customers might have been able to pick up their vehicles yesterday, he said.

M2 Collision had been having financial problems in recent months and was put up for sale early this year.

Caliber Collision Centers of Irvine struck a deal at the end of March to acquire all 27 of the chain's locations, but backed off April 15 after an inspection of M2 operations and financial records.

That same day, checks bounced for M2's 700 employees, and GE Capital, the firm's primary secured lender, arranged with CMA to begin liquidation proceedings.

Hoder declined to say what CMA expects to raise through the liquidation process, although he doubts there will be any money for unsecured creditors. The only other secured creditor is DuPont, a vendor.

The amount of M2 Collision's debt was not disclosed.

By Michael Kinsman - UNION-TRIBUNE STAFF WRITER

(see headlines)

Ontario's insurance regulator had its hands full last week, issuing several "cease and desist orders".

The first came on Wednesday, when insurers Security National and TD General - both Meloche Monnex companies - were cited for charging rates for coverages of categories of auto insurance which had not been approved by the Financial Services Commission of Ontario (FSCO). FSCO ordered the companies to reimburse policyholders affected by the rates and also for each of the companies to pay a fine of $50,000 to the province's Finance Ministry. Also, the companies were told to institute internal control mechanisms to ensure
all rates charged are in accordance with those approved by the regulator.

On Thursday last, a permanent cease and desist order was handed down for Marcello Calise and Calise & Associates Legal Services Inc. Back in February, FSCO had alleged the St. Catherines, Ontario-based paralegal had "misappropriated a client's settlement funds and accepted fees under a contingency fee arrangement".

And on Friday, a cease and desist order was issued against Ian Stuart-Smith and Heritage International Inc. or Surplus Lines. This follows a lengthy process which began back in December of 2003, when FSCO first issued a temporary order against Stuart-Smith (aka Ian Stuart) to stop him from selling or placing insurance. The ban extends to acting as an agent in Ontario, accepting money for or placing insurance, or advertising the sale of insurance.

Stuart-Smith was convicted in 2002 by the Court of Queen's Bench in Saskatoon on a charge relating to a forged certificate of insurance. At that time, both Lloyd's and Great American Insurance Group had issued notices that Stuart-Smith and the companies he operates (Heritage and Surplus Lines) have no authority to issue policies for them.

(courtesy Canadian Underwriter)

(see headlines)

Collision Solutions Network (CSN) has announced the signing of their 35th member. Lockwood Collision Centre in Hamilton, Ontario is the newest addition to this rapidly expanding network. Owned by Ron Lockwood and managed by Fred Dath, Lockwood Collision Centre is an impressive 20,000 square foot facility and has been in business since 1946. An integral part of Hamilton's community, Lockwood offers 24 hour towing and the highest quality and service for its customers.

"We are quite pleased and excited to have a shop of this stature amongst our group. For a repair facility like Lockwood's to join our network, it is truly an honour." says, Lorenzo D' Alessandro, President of CSN. For more information on Collision Solutions Network, visit www.csninc.ca or email info@csninc.ca.

(see headlines)

April 22, 2005

Imperial Collision and Oaktown Collision Merger

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

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

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

Collision Solutions Network Expands Coverage to the Maritimes

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

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

27 Shop Collision Repair Chain Closes
Vehicles reported trapped in shops

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(see headlines)

Shops praise industry trade association for their continuing refund efforts

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

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

HOW TO RECEIVE REFUNDS

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

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

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

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

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

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

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

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

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

(see headlines)

New posters and packages assist repair facilities

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

Tony is talking about the free:

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

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

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

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

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

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

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

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

HARA helps

For a printable Motorist rights poster please click here

(see headlines)

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

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

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

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

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

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

(see headlines)

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

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

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

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

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

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

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

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

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

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

Also announced:

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

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

(see headlines)

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

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

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

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

4) Instituted regional member newsletters to provide more member assistance

5) Made two $75 manuals available free to members

6) New financing of repairs package free to members

7) Updated supplier discount program for members from NEBS

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

9) Expanded CofA and audit assistance made available to shops

10) New rules on additional pricing for salvage vehicle inspections

11) Introduced brand appeal process for total loss vehicles

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

13) Offering free employment online ads for shops and members

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

15) Set up donations program to link schools with suppliers

16) Provide government with new definitions of service provider

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

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

19) Started local area meetings to assist shops

20) Start of apprentice renewal initiative

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

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

23) Draft price list supplied to shops for review

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

25) Special insurers’ panel at October 7 special event

26) Successful introduction of online environmental training

27) Updated WHMIS training offered

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

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

30) New court ordered tow storage rates set for Toronto

31) Requested to Mitchell for re-keying shop help

32) New equivalency package for trades certification updated

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

34) New 25% tax credit for hiring apprentices

35) All members receive free online news events information

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

37) New improved benefit program announced

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

39) New help package for salvage inspection for shops

40) Over 1000 students completing new training course

41) Simplified self-survey for environmental profitability now available

(see headlines)