October 19, 2004

HARA, the autobody, auto refinish and collision repair trade association, today has advised both the Ontario Ministry of Environment and the Ontario Ministry of Consumer and Business Services of their concerns regarding the posting for comment of new isocyanate standards for air emissions from auto refinish facilities.

The province has posted for public comment a rationale and description of new air emission standards for types of isocyanate emissions that may escape into the atmospheres from spray-painting activity.

In the past, the isocyanates found in paint product were largely considered to be absorbed in the paint curing process with little if any entering the atmosphere. Certificate of Approval review, a mandatory permit requirement for spray-painting shops, used very low standards for examining those emissions. Recently, the Ministry has led a technical examination at three large companies in the Toronto area by trying to design a new measurement process and measuring isocyanate emissions.

Their results, discussed in a recent conference and tele-conference last week, identified that the emissions may be significantly higher that previously thought.

If new higher levels of standards are developed, it is possible, depending on modeling data and distance from other local receptors, that from 40 % to ALL auto refinish shops may find themselves non-compliant with the new standards, if adopted.

HARA has expressed a concern to government that without a thorough examination of the cost/benefit analysis of these proposed changes, that auto refinish shops would be put in serious financial risk and a position of not being compliant with Ontario's environmental regulations.

HARA's President. Tony Nigro says " We anticipate that government will not want to put in standards that are so tough that most shops cannot meet them. We have no idea what emission reduction equipment may be viable or at what cost. We are asking Ontario to examine the impact of these standards in the same fashion they looked at VOCs (Volatile Organic Compounds). This is a critical review for the future of all Ontario shops."

With VOC standards, it was decided that the planned costs of abatement furnaces on rooftops to capture escaping VOCs would not be practical for the auto refinish sector and HARA successfully lobbied for a new system of paint formulation changes, spray guns, training and a maintenance program producing better results. Adopted by industry, the program has reduced emissions significantly.

For a copy of HARA's written submission and technical report to government, please access: www.ciia.com/provinces/ontario/ebr.html

HARA is the co-chair of the Government/Industry Compliance Assistance program for auto refinish facilities and was the industry representative to the federal /provincial governments that designed new VOC (Volatile Organic Compounds) emission reduction standards for the Canadian Council of Ministers of Environment.

HARA provides shop and industry environmental compliance services and assists shops with meeting and exceeding government requirements. HARA has assisted over 400 Ontario shops who requested compliance help.

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Yves Landry Foundation Awards of Excellence Recipients for 2004:

Frank Stronach: Person of the Year;
Research In Motion: Company of the Year;
Alberta Learning, Apprenticeship and Industry Training: Program of the Year

Toronto, Ontario-October 13- The Yves Landry Foundation is pleased to announce the recipients of their 2004 Awards of Excellence. Awards will be presented at our 5th Annual STARS Technological Education Awards Gala Celebration (November 18, Sheraton Centre Toronto Hotel, Grand Ballroom, 123 Queen Street West, Toronto).

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

PERSON OF THE YEAR
Frank Stronach, founder and Chairman of Magna International Inc.
Local contact: Paul Pivato (905.726.7136; Paul_Pivato@magna.on.ca)

COMPANY OF THE YEAR
Research In Motion (accepting for RIM will be Mike Lazaridis, president and Co-CEO).
Local contact: Lauren Doherty (519.888.7465; ldoherty@rim.com)

PROGRAM OF THE YEAR

Alberta Learning, Apprenticeship and Industry Training (accepting for Alberta Learning will be Shirley Dul, Executive Director, Apprenticeship and Industry Training)
Local contact: Josepha Vanderstoop (780.427.0965;
Josepha.vanderstoop@gov.ab.ca)

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It was announced, at the October 16 Canadian Collision Industry Forum, held i Montreal, that CARSTAR Canada executive vice president Larry Jefferies would replace the outgoing chair, The Newfoundland Collision Clinic owner Glenn Hickey, whose term ends at the completion of 2004. "We will remain the voice of Canada's collision industry, and for all of its stakeholders," said Jefferies who commended the job done by outgoing CCIF chair Glenn Hickey. "A new leader will bring fresh ideas," said Hickey.

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Now in its fifth year, the safety campaign is a partnership between the CCFF and over 100 CARSTAR Collision Repair Centres across the country. Each location sells FrightLites, a non-toxic glow stick that trick-or-treaters wear on top of their costumes to become more visible to traffic on that eventful night of candy gathering. The program has already helped raise over $800,000 for CF.

"This year we have the opportunity to reach the $1 million mark for cystic fibrosis research," said Sam Mercanti, CEO and President of CARSTAR. "By purchasing FrightLites, Canadians are not only helping kids be safe on Halloween night but they are also helping fight a devastating disease that affects children and young adults across the country." On top of all the money raised from the FrightLites campaign, CARSTAR centres will also donate $2 to the CCFF on behalf of every customer that has his/her car repaired in
the month of October.

FrightLites are available in five colors, and cost $3 each. They are safe for children and glow for eight to 12 hours.

"The FrightLites campaign is a huge part of our fundraising efforts," said Cathleen Morrison, CEO of the Canadian Cystic Fibrosis Foundation. "And each dollar raised is really helping us reach the goal of a cure for CF."

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I-CAR announced that for a limited time it will be offering its latest training program, Customer Relations And Collision Repair (CUS01) at half price to all Gold Class Professionals.

The program provides insurance and office personnel with an inside look at how collision repairs are performed. Upon successful program completion, students will earn two Gold Class points. To take advantage of this offer, Gold Class businesses will pay for the eight-hour program with one Gold Class discount training coupon; all other students will pay with
two discount training coupons or pay full price at-the-door.

"Gold Class Professionals represent the industry's highest trained businesses in proper collision repair," stated Rick Tuuri, Director of Business Development and North American Operations for I-CAR. "Extending that training to office personnel will help these businesses understand and improve upon their existing customer relations and enhance their customers' experience."

To take advantage of this special limited-time offer, Gold Class business must simply present one Gold Class discount training coupon at the start of the Customer Relations And Collision Repair class - no other form of payment qualifies for this discount. All other attendees will need to pay full price for the eight-hour program.

Discount training coupons may be downloaded from the I-CAR web site at www.i-car.com.

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ING TO ACQUIRE ALLIANZ OF CANADA
ALLIANZ TO KEEP ALLIANZ GLOBAL RISKS (AGR) IN CANADA

October 8, 2004

ING Group and Allianz Group announced today that ING Canada has concluded a definitive share purchase agreement for the acquisition of Allianz's property and casualty (P&C) insurance operations in Canada.

Under the terms of the agreement, ING will acquire Allianz of Canada Inc. and its subsidiaries Allianz Insurance Company of Canada, group insurer Trafalgar Insurance Company of Canada as well as Canada Brokerlink, a network of insurance brokerages operating in Ontario and Alberta. Allianz will however retain its Canadian industrial lines business, which is part of Allianz Global Risks (AGR). These transactions will be subject to regulatory approvals.

As a result of the acquisition, ING's gross written premiums in Canada will increase by approximately CDN$ 600 million to reach more than CDN$ 4 billion. ING will also expand its network of independent distribution partners. More than 800 employees from Allianz Canada will transfer to ING, which currently has a workforce of more than 5,600 employees across the country. Also involved in the transaction are Canada Brokerlink's 525 employees.

The Allianz acquisition with its portfolio of personal and small to medium commercial lines business reinforces ING's position in its preferred segments of the market. "The acquisition allows us to continue expanding our activities within the P&C insurance industry, especially in Ontario and Alberta", said Claude Dussault, President and Chief Executive Officer of ING Canada. "As we increase the scale of our activities, we will also be in a better position, in collaboration with our distribution partners, to improve our offering of innovative solutions to consumers."

"With its solid performance, ING Canada continues to be the leading provider of P&C insurance in Canada. Its past success and future growth potential were decisive factors in the decision to grow our market share in Canada", said Fred Hubbell, Member of the Executive Board of ING Group and responsible for Insurance Americas.

"This transaction enables Allianz to achieve two objectives. In selling our Canadian personal lines, some of the commercial lines operations and the brokerage business, we stick to our strategy to focus on core business and markets and to reduce complexity. Secondly, retaining the industrial lines operations will allow us to successfully support Canadian and international clients of Allianz Global Risks," explained Jan Carendi, Board Member of Allianz AG, responsible for the Americas.

Amsterdam-based ING Group is a global financial institution offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. In Canada, ING is the leading provider of property and casualty insurance with projected premiums of approximately CDN$3.6 billion in 2004. Assets at the end of last year amounted to CDN$7.6 billion. ING Canada offers its insurance products and solutions through ING Insurance, ING Novex, BELAIRdirect and Nordique.

Allianz Group, with its head office in Munich, is present in over 70 countries providing its customers worldwide with a comprehensive range of services in the areas of property and casualty insurance, life and health insurance, asset management and banking. Allianz Canada is the 13th largest property and casualty insurance company in the country with premiums of CDN$898 million and CDN$1.9 billion in assets.

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Speaking at HARA's "Collision Repair at the Crossroads" dinner presentation, MPP Mike Colle, the evening's guest speaker, worried publicly about the influence of insurers in promoting preferred vendor programs to motorists with claims.

He preferred to have a process where motorists of damaged cars have the right to pick a shop of their choice to perform the repair, as many smaller shops are feeling that they are being unfairly treated by the insurer's drive to preferred programs.

MPP Colle, the Parliamentary Assistant to the Minister of Finance spoke highly of the Collision Repair Standards Act, which although not yet law, would have the effect of ensuring the public was protected by allowing repairs at any shop that met industry standards.

Colle was adamant that the government would find a solution to the issue of overpriced tow truck chasing and aggressive storage fees.

MPP Colle, was speaking during panel discussions, with other panelists, Mark Yakabuski, Ontario Vice-President of the Insurance Bureau of Canada, Ted Doyle, Vice-President of Claims for ING Insurance and Wendy Hillier, Vice-President of Claims, Aviva Canada.

Panelists wee presented with some tough questions by moderator John Norris, before a hall of over 200 attendees, just after a presentation by Maryanna Lewyckyj of the Toronto Sun spoke about her reader's experiences with auto body shops and with insurance companies.

Questions to the panelists ranged from why insurers pay a higher hourly rate for sublets, and mechanical services, why labour rates for shops have not appreciated despite huge insurer profit, why an average multiplier for paint rate increases can't be used and questions on customer-pay work that may not be safe and yet the car continues to be insured.

When one of the panelists answered a question on the freedom of motorists to choose their own shops for repair, the audience response was loud and boisterous. Panelists stayed and answered questions from the floor-questions from involved collision repairers, that became passionate and determined. Panelists were kind enough, after this late meeting, to stay and talk individually with audience participants.

HARA President, Tony Nigro, thanked PPG Canada and BASF Canada for their
sponsorship support.

For the questions asked and pictures of this special event please see:
http://www.ciia.com/haradinner.html

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HARA's meeting moderator asked for the time needed to honour individuals and companies for their outstanding contributions to making collision repair industry training exciting and vibrant. A number of the award recipients had donated product and services, time and money to ensuring that collision repair, autobody repair and auto refinishing training is well equipped and well taught in the schools and community colleges that young people attend
to become skilled apprentices and technicians. Without these special gifts, autobody programs could have been lost and fewer young people would find out that the trade offers a great career with a good future.

Among those receiving awards were:

PPG Canada for their work at Mohawk College
Don Teevens for arranging a vehicle donation to Our Lady of Mount Carmel
Secondary School
Don Treschak of Treschak Enterprise for their work with Niagara College
Akzo Nobel Coatings for their donations to Niagara College
Halton District School Board honoured Treschak Enterprises, Akzo Nobel
Coatings for their work at General Brock Secondary School
Toyota Canada was honoured for their donation of a spraybooth for the
autobody program at the new Robert Bateman Secondary School
Peter Woodall from Centennial College thanked Mike Elliot from Elliott's
Collision in Newmarket for their donation of fame rack equipment and Sean
Basilio of 3M Canada for their contributions to their programs at Centennial

Executive Director of Skills Canada-Ontario, Gail Smyth handed out industry sponsorship awards to Toyota Canada, DuPont Canada and CARSTAR Automotive Canada for their help in the provincial technological skills completions

Hartley Ellis of Ken Shaw Lexus Toyota and Mark Millson of Budd's Collision in Oakville were honoured for winning the Ontario and National Canada Skills competition. Mark Millson received a surprise when it was announced that he would be taking a trip to Helsinki, Finland to compete in the World Championship.

The sponsoring shops for Mark's trip to compete in the national competition in Winnipeg were:

HARA
Meray Collision
Budd's Collision Services
Trafalgar CARSTAR Collision
Leggat Pontiac Buick Cadillac
CARS Auto Collision

Special industry awards were also presented to the Ministry of Training, Colleges, and Universities-Apprenticeship Branch, and to the students and teacher Peter Nicolaidis, of Holy Trinity Catholic Secondary School in Simcoe by Toyota Canada and PPG Canada for their work with the Baja 1000 winning Hummer race vehicles on display in the parking lot and for winning last years' contest at the PPG-sponsored Canadian Collision Industry
Congress by sending some 139 students to Autobody Career Day.

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New interactive long-distance training starts again for the fall from I-CAR. 164 students have taken the courses from February to June of this year and more are expected as the list of training locations grows to 35 across Canada.

Trafalgar CARSTAR Collision, in Oakville, Ontario is one of those locations hosting the training programs on every Tuesday night starting on September 7 and ending February 8, 2005

Refreshments are included for the 6:00 to 9:00 evening dates.

Cost of the course is $75.00 with a $25.00 service fee per student per broadcast. GST may be applied.

For more information contact Trafalgar CARSTAR at 905 845 7579 or I-CAR at
1-800-422-7456

LOCATIONS for Collision TV training

SCHEDULES for Collision TV training

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9/1/2004

Effective September 1, 2004 I-CAR has restructured the pre-paid class payment coupon discount in Canada for the benefit of Gold Class Professional businesses. Training for I-CAR Gold Class Professional businesses in Canada is even more affordable now!

The new Canadian price structure is as follows:

Gold Class Non-Gold Class At The Door
I-CAR Coupon $80CDN $100CDN $125CDN

"I-CAR is committed to continue to add value to the Gold Class Professionals program in Canada. Offering this further discount shows that commitment," stated I-CAR Canadian Manager Tracey Blouin.

"I am pleased that we are able to reduce prices for Gold Class Professionals in Canada," added Rick Tuuri, I-CAR Director of Business development and North American Operations. "I-CAR is a not-for-profit organization that is committed to offering the best value possible in collision training. As such, we constantly reevaluate our pricing structure and are very happy that we are able to make this change."

For additional information, please contact I-CAR Canadian Manager Tracey Blouin at 416.299.4227 or 800.422.7456.

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Aviva Canada is planning to test a new auto rating system which would allow drivers to have premiums based on how much they use their vehicle.

The new "Autograph" program will be tested early in 2005, and the insurer is currently looking for 5,000 Ontario drivers willing to test the system.

The program allows drivers to track their driving habits – how much, where and how fast they drive – through a device installed in the vehicle. The information can then be downloaded to the driver's home computer and submitted to the insurer to be used in calculating premiums. The driver has the choice of whether to submit the information or not.

The insurer says discounts will be offered where data warrants, up to a maximum of 25%. But anyone who does submit data will receive a minimum 5% discount just for participating.

"Insurance consumers have been asking for more clarity and control over how their premium is set," says Aviva Canada CEO Igal Mayer. "Autograph is a way for drivers to better understand and positively influence their auto insurance premium."

The technology behind Autograph comes through an agreement with Progressive Casualty Insurance in the U.S., the company notes.

(courtesy Canadian Underwriter)

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10/18/2004

Keystone Automotive Industries, Inc. has announced that it has voluntarily suspended the sale of aftermarket headlamps for the Ford Taurus ('96 --'04) and for the General Motors Pontiac Grand Am ('99 -- '04) as a result of independent tests indicating that at the present time, these headlamps do not fully comply with the federal standards.

As a result of the publication of the independent test results, at least six insurance companies have indicated that they have also suspended the use of the non-complying aftermarket headlamps in repairing damaged vehicles. In addition, Keystone believes that one or more insurance companies may have discontinued specifying all aftermarket headlamps in vehicle repair. Keystone's sales of headlamps for the Taurus and Grand Am during the last 12 months constituted less than one-half a percent of its total sales and the
sales of all headlamps during the period constituted approximately 12 percent of total sales.

"Rigorous testing and ongoing evaluation of products are fundamental to our industry. While the temporary suspension of the sale of these headlights is unfortunate, this action highlights Keystone's commitment to product safety and quality. Aftermarket parts are an important alternative to OEM brands, providing favorable economics compared with
original equipment parts. This factor and Keystone's quality assurance programs continue to drive the acceptance of the company's products by collision repair shops, the insurance industry and consumers," said Richard L. Keister, president and chief executive officer of Keystone Automotive.

The company noted that sales to date have not been materially and adversely affected by recent suspension actions by certain insurance companies and the discontinuance of the sale of the Taurus and Grand Am headlamps will not have a material adverse effect on Keystone. However, a discontinuance of the specification of all aftermarket headlamps by a number of insurance companies would have a material adverse impact on the company's financial results.

Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 126 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada. Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 19,000 stock keeping units that are sold to more than 25,000 repair shops throughout the United States and Canada.

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October 13, 2004

R & R Collision at 325 Millen Road did not have a good day on Wednesday. Police identified that a “chop shop” was raided at that address and R & R’s owners, Ralph Paolini and Rick DiPrata, had to spend all day on the phone letting curious callers know it was not them.

R & R Collision is in a large industrial building and the “chop shop” was on the other side of the building behind an industrial coatings factory. R & R Collision has no connection to the “chop shop” raided by Hamilton Police, and has been an active HARA member and well-respected collision repair shop for eight years.

The local media is expected to print a clarification on their news article tomorrow.

Police found, in the other portion of the building, dozens of auto parts when they entered with a search warrant. Inside they found transmissions, engines, body panels and many other smaller parts they suspect are stolen.

Police say they seized a new Mustang engine, a Chevrolet Crew Cab and a GMC Denali valued at around $60,000 stolen in Kitchener.

Police arrested Ayman (Moe) Backhour, 28 of Hamilton. He is charged with possession of stolen property over $5000

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HAMILTON DISTRICT AUTOBODY REPAIR ASSOCIATION PRESENTS

Collision Repair at the Crossroads

"A Hummer of an evening"
An exciting dinner event with current and future insurance and industry importance

Thursday October 7, 2004
Chandelier Place (Barton and Fruitland Road, QEW Exit, Stoney Creek)

Join Mike Colle, MPP, Parliamentary Assistant to the Minister of Finance and Ontario's lead on auto insurance & towing and storage issues and the challenges government is working with. How will these changes impact shops?

Our insurance industry panel guests include:

Mark Yakabuski, Vice-President Ontario, Insurance Bureau of Canada
Ted Doyle, Vice-President, Property Claims, ING Insurance Company of Canada
Wendy Hillier, Vice-President of Claims, Aviva Canada

Maryanna Lewyckyj, Assistant Money Editor and Consumer Affairs Writer, Toronto Sun will identify the problems that anger consumers.
Alex Szabo, President of CISCO ( Collision Industry Standards Council of Ontario) will bring the latest updates on Ontario's Collision Repair Standards Act.

An industry celebration to praise those generous supporters of school and college training

From spraybooths to paint, from cars to engineering, this evening gives us all a unique and needed chance to publicly and enthusiastically praise those companies and individuals for their help in enhancing, and sometimes saving, autobody programs in local schools and colleges.

Join Gail Smyth, Executive Director of Skills Canada/Ontario as community colleges and school boards join together in a unique celebration honouring the winners of the Skills Canada National Autobody competition, Skills Canada sponsoring companies, and coatings firms for their paint donations. A special award to Toyota Canada for a spraybooth donation to keep the autobody program vibrant in Halton region. Join Niagara, Mohawk and other Colleges as they thank suppliers and individuals who made better autobody apprenticeship training possible Help us honour shop owners who have donated vehicles and resources to help young people in our industry and in our schools.

P.S. Come early to this 6:30 p.m. event and talk to the local secondary school students that are now the pit crew for Team Trinity Hummer Racing, the 400 hp., three-time winners of the Baja 1000 desert run, the world's toughest off-road race. See the Hummers, equipment and trailer.

Tickets $40.00 (incl. GST) for HARA members. Non-members $50.00 (incl. GST)

Call 1-866-309-4272 or e-mail info@ciia.com more information or to order by charge card

For directions please visit http://www.chandelierplace.com/location.html

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

On the morning agenda for the one-day meeting are topics including: training & education, attracting and retaining staff, defining cycle time steps, Quebec update, and defining quality in recycled parts.

The afternoon offers attendees the opportunity to join break out discussion groups to address industry issues.

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

For details on attending the meeting contact CCIF Administrator, Mike Bryan at
905 726 9027 or administrator@ccif.net.

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September 1, 2004

This is further to our warning to you dated August 17, 2004. We wish to reiterate that the contact and communications you may have received from CIAG are not authorized by HARA. Despite the implication, CIAG is not working with your local trade assocation (HARA)

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.

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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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