Mechanical Labor Rate Survey
Skills USA 2014 at Camp Withycombe
Meet Jim Moore, Third Generation,
Baxter Auto Parts
Jim Moore, NATA Board Member
NATA - AUTO OUTLOOK STAFF
May | June | July 2014
NATA Staff
NATA’s Executive Director
Barbara Crest barbara@aboutnata.org
AUTO OUTLOOK ARTICLES IN THIS ISSUE
Letter from the Executive Director
2
Performance Warehouse Trade Show
3
Mechanical Labor Rate Survey 2014
4&7
Insurance Specialist
Cathi Webb cathi@aboutnata.org
Meet Jim Moore, Third Generation, Baxter Auto Parts
5&6
Office Manager
Laurie Kolar laurie@aboutnata.org
Auto Care News for the Northwest
7
Contributing Author
John Yoswick
New NATA Members & Associate Members
8
Skills USA 2014 at Camp Withycombe
9
Contributing Photographer
Julie Almquist
AUTO OUTLOOK INFORMATION
Editor
Barbara Crest
Graphic Designer
Julie Almquist, www.AlmquistProductions.com
Mail editorial news, notices and correspondence to:
NATA Administrative Office:
7931 NE Halsey St., Suite 212, Portland, OR 97213
Article and Advertisement Deadlines:
Jan. 10 for the February NATA Auto Outlook
Apr. 10 for the May NATA Auto Outlook
July 10 for the August NATA Auto Outlook
Oct. 10 for the November NATA Auto Outlook
Copyright 2014 Northwest Automotive Trades Association
All rights reserved. This material may be reprinted only with the
expressed written permission of NATA.
Vehicle Telematics
Preparing (even years prior!) to Sell Your Business
NATA Board Members, 2014
Ross Bradshaw, President
Portland Transmission
Warehouse
Portland, Ore.
Mary Ann Trout,
Vice President
Hillsboro Auto Wrecking
Hillsboro, Ore.
Jim Moore, Secretary
Baxter Auto Parts
Oregon, Northern California
Jake Hammer, Treasurer
Everett Street Autoworks
Portland, Ore.
General Directors:
Administrative Office: 7931 NE Halsey St. Suite 212,
Portland, OR 97213
1.800.730.7282 Fax: 503-253-9890
503.253.9898 www.facebook.com/nwautotrades
www.aboutNATA.org
10
Bob Anderson
AJ’s Auto Repair
Salem, Ore.
Scott Asla
S & S Auto Parts
LaPine, Ore.
Rick Field
Salem Transmission
Salem, Ore.
Jerry Geiszler
Jerry’s Custom Paint
Gresham, Ore.
Monte Reed
Blue Mountain Auto Parts
LaGrande, Ore.
Ron Reichen
Precision Body & Paint
Portland and Bend, Ore.
Catherine Skiens
RGS Auto and Marine
Albany, Ore.
back
cover
LETTER FROM THE EXECUTIVE DIRECTOR
NATA Executive Director
Barbara Crest
NATA In Step with National Auto News
The May 2014 issue of Parts & People (Northwest) features two headlines above the fold
on their front page: “Toyota Embrace of J-2534
Paying Off”, then “Courts Consider Lawsuits
Related to non-OEM Parts and Collision ShopInsurer Disputes.”
Northwest Automotive Trades Association finds
ourselves in step with these headlines. For
instance, In 2011 NATA hosted a “Right to Repair” technology night for our
members. Brian Herron, Drew Technologies, demonstrated the J-2534 scan
interface tool, at the heart of an initiative in Massachusetts called “Motor
Vehicle Owners’ Right to Repair” which was enacted in that state in 2013.
Now a Memorandum of Understanding (MOU) for all 50 states, automakers
and repair shops have agreed to adopt the Massachusetts law as a national
standard. The law requires automakers to make available to repair shops the
same vehicle repair information they give to dealers. It allows repair shops to
purchase that data with an ordinary computer over a standardized, Internetbased service, and requires automakers to offer a nonproprietary interface
for diagnosing problems with vehicles, starting in the 2018 model year.
The NATA Board voted unanimously, twice, to support “Right to Repair,” and
worked closely with the national association, AAIA, now the Auto Care
Association to bring the initiative home.
Describing efforts to recover some costs for collision repairers in the US,
this February 2014, Mississippi attorney John Eaves, Jr. and John Mosley,
Director, Mississippi Autobody Association, visited with our members in
Oregon about how they could be paid for all performed procedures both past
and future based on Oregon’s state statuettes. To see a clip of this meeting
with the two Johns, go to the NATA website www.aboutnata.org, click on the
U-Tube icon in the upper right corner, then open “NATA Presents: Collision
Repair.” If you would like to get involved, contact information will appear at
the end of the video.
NATA is there to protect our members by keeping in touch with the latest
news and activities of the day, the week, and the year!
Dozens of collision shops, vendors and students participated in an open
house at Portland Community College’s recently-revamped 17,000 square
foot collision repair training facility in March. The event helped introduce
the program to potential students, and helped bring current students and
shops seeking new employees together.
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Performance Warehouse
Trade Show
The annual Performance Warehouse Tradeshow was held on April
26 & 27, 2014. Called “Come Catch the Big One,” the Hillsboro,
Ore. show featured special discounts, vendor booths and displays
of the latest in automotive parts and accessories.
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Mechanical Labor Rate Survey 2014
In the winter of 2014, the Northwest Automotive Trades
Association (NATA) distributed a rate survey to more than
1,500 shops throughout Oregon, both members and nonmembers of the association. About 100 shops from around
the state responded. The average size of the shop’s
responded was fairly similar statewide. Most had 7-9 bays,
3-5 technicians and 2-3 people working in the office.
•There is significant variance in how much shops mark-
up prices on parts. In Portland and the Willamette Valley, shops typically charge a customer about $183 for an aftermarket part that costs the shop $100. But shops in Southern Oregon on average are more than doubling the cost of the part, and shops on the coast and in rural Northeast Oregon are charging less than in other parts of the state. There is less variance
market-to-market on OEM parts, but a $100 used part is marked up to an average of $177 in Southern Oregon but only to $134 in Northeast Oregon.
Some of the findings of this year’s survey included:
•The general shop labor rate statewide is about $90, but Portland shops tended to have labor rates about $10 more per hour than shops outside of the Portland area. The lowest rate around the state was $65-$70. About
1 in 8 of all shops had a labor rate above $100; all of these were in the Portland area. The most common labor rate charged in Portland was $95 (charged by more than 11 percent of responding shops).
•Sublet items are marked up somewhat more in Portland and Eugene-Springfield-Albany-Corvallis than they are elsewhere in the state.
•Of shops charging a flat fee for an oil change, the statewide average was $31.20; the average was slightly higher outside of Portland and the Willamette Valley.
•Shops in Portland and the Willamette Valley tend to charge more than there general labor rate for
diagnostic work; elsewhere in the state, shops tend to charge less than their general labor rate for
diagnostic work. There is even more range in
diagnostic rates shop to shop, from a low statewide
of $35 to a high of $120 per hour.
•Labor rates in Portland are up just 3.3 percent over what a similar survey found in 2010. Most of that growth occurred prior to 2012. The average labor rate in Portland was up just 31 cents in 2014 compared to two years earlier, an increase of just one-third of
1 percent.
• Shops in most markets charge about $8 more per
labor hour for truck or RV work than the shop’s general labor rate.
Mechanical Labor Rate Survey: In the winter of 2014, the Northwest Automotive Trades Association (NATA) distributed
a rate survey to more than 1,500 shops throughout Oregon, both members and non-members of the association. Here are
the findings on a market area basis.
NATA 2014 Mechanical
Labor Rate Survey
Greater
Portland
Area
Eugene
Corvallis Area
Mid-Valley
Area
Includes Springfield
and Albany
Including Salem,
McMinnville
Southern Oregon
Medford, Kalamath Falls,
Grants Pass, Lakeview
Oregon
Coast
Northeast
Oregon
Statewide
Includes Pendleton
John Day Baker City
No. of participating businesses:
64
7
6
7
6
4
96
Average number of bays
8
8
9
9
7
7
8
Average number of technicians
3
3
4
5
5
4
4
Average number of office staff 2
2
3
2
3
2
2
Average number of other staff 1
2
0
2
2
3
1
Shops were asked: If selling a part (or a sublet service) that cost you $100, how much do you charge the customer?
Aftermarket Parts
$183.56
$181.73
$185.70
$213.00
$175.33
$153.42
$184.15
OEM/Dealer Parts
$149.81
$159.73
$128.75
$144.25
$146.50
$139.67
$148.13
Used Parts
$154.18
$166.67
$173.13
$177.00
$155.00
$134.75
$155.69
Sublet
$133.76$152.00 $123.33
$125.00
$125.50 $120.00 $134.77
Continued on page 7.
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Meet Jim Moore, Third Generation, Baxter Auto Parts
In the Beginning
The history of Baxter Auto Parts goes back to Chehalis,
Washington before World War II. At the outbreak of the
war Ray Baxter Sr. and his wife Wilma Baxter relocated to
Portland to build Liberty Ships. After a few years of working
in the shipyard and no new cars being built in Detroit, Ray
convinced the government his skills would better serve the
country selling auto parts and running their machine shop
in Portland. Ray was then able to return to auto parts along
side his wife Wilma.
It’s All in the Family
Baxter Auto Parts was started in 1936 and continues today
as an Oregon family-owned business. The second generation
came along and ran Baxter Auto Parts until recently. The
reigns have now been handed over to the third generation
of Baxter’s, which includes Jim, his siblings, and cousins.
Jim Moore Profile:
Younger Years: a Portland native, born at Legacy
Emanuel Hospital, grew up in NoPo’s (North Portland’s) Mock’s Crest working class neighborhood
near Columbia Park and the University of Portland.
Education: George Fox University B.S. Business,
Benson Polytechnic High School
Employment: Runs Baxter Auto Parts with 3rd
generation of family. His travel territory has 37
stores, which extends from Colusa, California up
to Port Angeles, Washington and east as far as La
Grande, Oregon and all parts in between.
Mentors: Many mentors including his parents,
brothers, Uncle Skip Baxter, Grandma Baxter as
well as many employees and customers. Jim’s
mother is a second generation Baxter and is
semi-retiring this year.
Favorite Author: John Nance, because Jim likes
aviation stories (he has his private pilot’s license
but hasn’t used it much, yet!)
Hobbies: Family activities, traveling,golf and skiing
Family: wife of 13 years, son (11) and daughter
(9). Son plays lacrosse, is in Boy Scouts, swimming,
and interested in scuba diving. Daughter plays
lacrosse, is a Brownie Scout and is very artistic.
Favorite Legislation: Right to Repair bill passed
in Massachusetts in 2013, now MOU throughout
the United States with the Alliance of Automotive
Manufacturers and the Global Alliance of Automotive Manufacturers.
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Change is integral to running the business in today’s world.
Through the proliferation of parts and the complexity of
running a business with a growing inventory, Baxter Auto
Parts focuses on stocking the right parts based on anticipated consumer demand. Jim explained that it used to be
easier when a customer needed parts for a Chevy V-8, the
salesperson knew the numbers in his head. If he didn’t he
went to the books to look it up. Today there are so many
different brands of vehicles as well as more expensive and
complex parts. It’s a changed business. Electronic cataloging is continuing to replace the books and inventory optimization has become an integral part of the business.
Business in the Second Decade of 2000
Baxter works to have its massive inventory closer to the
customer. Delivery drivers hit the stores in the Portland
market eight times in a day. Their 150,000 square foot
warehouse in Hillsboro, Oregon, has 143,000 different
part numbers. Getting the exposure of this inventory to the
installer market they feel is critical for servicing customers.
In addition to the warehouse in Portland they have facilities
in Bend, Medford, Tacoma and Kennewick serving as hubs to
support these outlying markets.
Performance Warehouse (PW) incorporated in 1969 as a
wholesale establishment to enable their three existing
retail stores of “Baxter Auto Parts, Inc.” to compete on
speed and performance lines. As the stores grew so did
PW. Today PW is a member of the Aftermarket Alliance and
markets under the name Auto Value. Auto Value gives them
the horsepower needed to compete in today’s extremely
competitive environment. They are one of just a few
warehouses carrying hard parts, as well as speed, performance, truck and accessory lines. PW provides nightly
delivery service to the Canadian border to the north,
Northern California to the south, and into Western Montana
and Idaho.
Automotive Education & NATA
Jim bemoans the loss of automotive programs in Oregon’s
high schools and community colleges. There is less training
and exposure people can receive, and it robs the industry of
those potential customers and employees. “Our business has
been built by great people who love cars. Today we are working to educate our people more than ever before”, he said.
One of his concerns is the growing regulatory restrictions
imposed on the industry, and applauds Northwest Automotive Trades Association for its proactive approach to knowing
about, changing, or stopping legislation that won’t work for
the industry. “Along with the Auto Care Association (formerly
AAIA), these associations are really important to looking out
for the welfare of the aftermarket”, he said.
However, consumers are getting less involved in cars than
they did in the past. “The Aftermarket has abandoned the
high ground and lost traction delivering the message about
the quality of today’s parts,” said Jim.
The Baxter Family Is Securely in the Driver’s Seat
The future of Baxter Auto Parts is great because they know the
automotive sector is growing and doesn’t see America’s love
affair with the car going away any time soon. Currently Baxter
business consists of about 50% DIY and 50% mechanical shops.
He sees the DIY market growing along with repair shops.
The 4th generation of Baxter is coming up, the oldest being
in their early 20’s and the youngest is nine years old. The
parents of this generation of Baxter’s encourage them to
get experience outside of the Baxter Auto Parts business
by getting their education and going to work at other jobs.
What they will bring back to the Baxter organization will
help them run the business for the better in the upcoming
decades.
“This industry has been great to our family”, said Jim. In
the early days, the Baxter family belonged to Oregon Automotive Parts Association, whose membership only included
other members in the same area of the industry. Now, NATA
is a much more diverse association with a complimentary
employee base business by business. “We can sell to each
other, and it is a symbiotic relationship we have with our
members. The complexity of membership in NATA allows
us to work to the betterment of the industry specialty by
specialty”. Jim finishes, “It is important to be involved in a
group that is out for the best interests of our industry.”
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NATA 2014 Mechanical
Labor Rate Survey
Greater
Portland
Area
Eugene
Corvallis Area
Includes Springfield
and Albany
Mid-Valley
Area
Including Salem,
McMinnville
Southern Oregon
Medford, Kalamath Falls,
Grants Pass, Lakeview
Oregon
Coast
Northeast
Oregon
Statewide
Includes Pendleton
John Day Baker City
General Shop Labor Rate
High
$119.00
Low
Average
$95.00
$98.95
$95.00
$98.00
$84.00
$119.00
$70.00$70.00 $65.00
$75.00
$70.00 $70.00 $65.00
$93.20$83.50 $98.95
$95.00
$98.00 $84.00 $119.00
Oil Change
Labor Rate
Flat Fee
Varies
$55.18
$32.53
$31.32
$31.27
$33.28
$35.13
$31.20
Truck/RV Labor Rate
$99.76
$95.63
$97.96
$85.00
$86.88
$85
$95.90
Diagnostic Labor Rate
$96.71
$89.92
$86.97
$77.77
$66.67
$67.25
$90.93
Storage Fee (per day)
$22.40
$13.33
$16.00
$18.33
$22.80
Varies
$21.17
$4.50
Varies
Varies
Varies
Varies
Varies
$4.04
Hazardous Waste Disposal
Flat Fee
% of Labor
2.36%
Shop Supplies
Flat Fee
% of Labor
$4.86
5%
Cap
$31.22
Varies
3.88%
$36.00
Auto Care News for the Northwest
New Group Aimed at Future Industry Execs
Under Age 40
The Auto Care Association (formerly AAIA) has created the
“Young Auto Care Network Group” for future executivelevel staffers of the auto care industry seeking industry
connections and collaboration. YANG’s first event is a
workshop being held on Wednesday, Sept. 3 at the Westin
Boston Waterfront in Boston, Mass. as part of Auto Care’s
Fall Leadership Days. YANG will be offering scholarships to
deserving young professionals to attend the workshop.
All professionals in the auto care industry under the age of
40 are eligible to join. Membership is free and open to Auto
Care members and non-members. For an application and
more information, visit http://tinyurl.com/n5kw264 or
contact Courtney Carbone at (240) 333-1067 or
courtney.carbone@aftermarket.org.
ASE Now Offers Online Introductory Course
The National Institute for Automotive Service Excellence
(ASE) has launched an 4-part online learning program,
“Introduction to Automobile Service.” The program focuses
on awareness of entry-level tasks related to basic automobile service. An embedded glossary and safety zone section
also help to promote proper safety measures. The program
includes quizzes to measure the knowledge necessary to
perform basic tasks. The target audience for this program
includes prospective and entry-level personnel.
For more information, visit www.ASEcampus.com.
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Varies
Volume 26 May I June I July 2014
$4.26
Varies
5.25%
$26.50
$29.97
Members, Northwest
Automotive Trades Association
Welcome New NATA Members!
AM-PM Towing – Emergency Roadside Assistance and
towing since 2004. They have 10 employees and an
additional location in Redmond. 63066 Plateau Ct.,
Bend, OR 97701. 541-686-2915 www.tractowing.com
Cooke’s Brake Service – Auto repair specializing
in brakes. They have been in business for 25 years and
have three employees. 830 SE 46th Ave., Portland, OR
97215. 503-232-6440
Hillside Imports – Family-owned and operated since
1999, they service VW and Audi vehicles. 4402 SW
Beaverton-Hillsdale Hwy, Portland, OR 97221.
503-293-0146 www.hillsideimports.com
Irvine & Company LLC (Associate Member) –
They are a growing, independent CPA firm located in
Portland. They partner with automotive, manufacturing
and retail businesses to provide accounting, tax and
advisory solutions. 345 NE 102nd Ave, Portland, OR
97220. 503-252-8449 www.irvinecpas.com
McMinnville Auto Wreckers – An automotive
Demandforce Richard Berglund 22 4th Street,
12th Floor, San Francisco, CA 94103. (800) 246-9853
rberglund@demandforce.com www.demandforce.com
Hays Companies of Oregon Hamilton Barnes 5285 SW
Meadows Rd., Suite 451, Lake Oswego, OR 97035
(503) 624-4750 hbarnes@hayscompanies.com
www.hayscompanies.com
Irvine & Company LLC Nick Shepherd
345 NE 102nd Ave., Portland, OR 97220. (503) 252-8449
nicks@irvinecpas.com www.irvinecpas.com
Kaiser Permanente Joel Stephens
500 NE Multnomah Street, # 100, Portland, OR 97232.
(503) 813-4630 Joel.D.Stephens@kp.org www.kp.org
Kukui Mike Giblin 300 Santana Row, Suite 400, San
Jose, CA 95728. (877) 695-6008 mike@kukui.com
www.kukui.com
LKQ Corporation Ray Colas 5975 North Federal
Highway, Suite 130, Ft. Lauderdale, FL 33308.
(954) 492-9092 rjcolas@lkqcorp.com
www.lkqcorp.com
recycler and dismantler, they also offer 24-hour tow
and recovery. 13341 SE Old Station Rd., McMinnville,
OR 97128. 503-835-2661
www.mcminnvilleautowreckers.biz
NACM of Oregon Clara Nemeth 7931 NE Halsey Street,
Suite 103, Portland, OR 97213. (971) 230-1144
cnemeth@nacmoregon.org www.nacmoregon.org
Mercedes-Benz & Smart of Portland – A
Net Driven Jon Napoli 201 Lackawanna Ave, Suite
302, Scranton, PA 18503. (877) 860-2005
jnapoli@getnetdriven.com www.netdriven.com
franchised Mercedes Benz & Smart new car dealership
in the business of selling new and used cars, parts,
and automotive service. 1605 SW Naito Parkway,
Portland, OR 97201. 503-228-8351
www.mercedesbenzportland.com
Thank You, Associate Members!
Advanced Employer Solutions Clay Bundy
2979 SE 75th Ave, Hillsboro, OR 97123. (503) 848-0588
admin@callaes.net www.pem-connectinc.com
ALLDATA Debbie Murray 9650 W. Taron Dr., Suite 100,
Elk Grove, CA 95757. (800) 829-8727
dmurray@alldata.com www.alldata.com
American National Insurance Co. Melvin Young 4001
Main Street, Suite 314, Box 16, Vancouver, WA 98663.
(503) 851-8657 melvin.young@american-national.com
www.anpac.com
Car-Part.com Roger Schroder 1980 Highland Pike,
Ft. Wright, KY 41017. (859) 344-1925 (859) 344-1954
tradeshows@car-part.com www.car-part.com
Oregon Lien Service Cherise Gunter 14325 NE
Sandy Blvd, P.O. Box 301159, Portland, OR 97294.
(503) 233-3580 cherise@oregonlienservice.com
www.oregonlienservice.com
Real Benefits Group Bob Kohnle 412 Jefferson
Parkway #201, Lake Oswego, OR 97035. (503) 710-1779
bk@realbenefitsgroup.com www.realbenefitsgroup.com
SAIF Corporation Pat Morrill 400 High St. SE, Salem,
OR 97312. (503) 373-8827 patmor@saif.com
www.saif.com
Superior Financial Services Todd Lazar 260 Newport
Center Dr., #100, Newport Beach, CA 92660.
(888) 737-7762 todd@sfsprocessing.com
www.qualifiedprocessing.com
Willamette Valley Benefits Tressa Girt 6400 SE Lake
Rd., # 155, Milwaukie, OR 97222. (503) 810-2500
tressagirt@comcast.net www.wvbenefits.com
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Skills USA 2014 at Camp Withycombe
Camp Withycombe, located in Happy Valley, was originally
established as Camp Benson after Governor Frank Benson,
but was later renamed Camp Withycombe during World
War I for Governor James Withycombe. In 1909 it was a
training camp and headquarters for the National Guard.
With a history as colorful as our state’s military, the 2014
Skills USA competition included judges from the National
Guard along with skilled Oregon mechanics. Together, they
put high school and community college automotive students
through their paces to place First, Second and Third in the
competition.
Volunteers included members of Oregon’s National Guard,
Tonia Haney, Clark College, Scott LaPlante, Sherwood Auto
Repair, and Michael Launder, Tom Dwyer Automotive, and
Margaret Ragan.
THE WINNERS:
Automotive Service, High School
Gold: Mountain View - Cameron Petrie
Silver: Mountain View, John Schultz
Bronze: Benson, Kurt Wilke
Automotive Service, Community College
Gold: Umpqua Community College, Anthony Dacosta
Silver: Umpqua Community College, Erin McCall-O’Dell
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We wish to thank the people and the companies who donated gifts to the students who competed this year:
Fast Undercar
Multnomah Hot Rod Council
Mac’s Radiator
Clackamas Auto Parts
Carquest
Portland Transmission Warehouse
SnapOn Tools
NW Performance
Regence
Vic’s Auto Center
Lifewise
Baxter Auto Parts
Kaiser Permanente
Automotive Products
Chilton
Todd’s Automotive
Portland Community College
Northwest Automotive Trades Association
“The Skills USA competition for 2015 will also be held at
Camp Withycombe in Clackamas County. For more information, visit their website at http://skillsusaoregon.org or
email teresa@skillsusaoregon.org. This is a VERY important
event for automotive students who want to show their
knowledge and mechanical skills troubleshooting, diagnosing and fixing automobiles. Let’s help get these students to
this fun and informative show of their mechanical abilities.
See you next year!”
Vehicle Telematics
Protecting consumer privacy and access to a competitive vehicle repair market
Similar to homes and businesses, wireless technology is
quickly becoming an important part of the “smart”
connected vehicle. This “telematics” technology provides
motorists with remote access to a wide range of entertainment and information services that includes navigation,
traffic, email, web browsing, social media and travel
assistance. Telematics will likely provide significant safety
benefits through use of technology that enables vehicles
to communicate with each other and with the roadway
network, and quickly communicate the need for
emergency or breakdown assistance to authorities.
significant privacy concerns for car owners and could
impact the availability of competitive vehicle repair.
The car owner has no control over where the information
generated by their vehicle is being sent. All information
generated by a vehicle’s telematics system, including
repair information and GPS data, is sent directly to the
manufacturer, providing them with the opportunity to
direct service business to their franchised dealers. In
most cases, car owners do not have the option of choosing
where any of the information from their vehicle is
transmitted, nor do they have a clear means to turn off
the transmission of data. Depriving drivers of choice in
service and degrading competition in auto repair threatens
to raise costs for consumers and threaten the viability of
the independent auto care industry, which is an important
cog in the American economy.
It is critical that once a vehicle is purchased by an individual, the car owner, not the car company, should determine
where the information from those systems is sent. Such
action is needed to uphold consumers’ expectation of
privacy and choice regarding their personal data and to
maintain a healthy competitive landscape for vehicle
repair.
Therefore, requirements must be put in place that:
•Clearly define that the information extracted by a telematics system is the property of the car owner
and cannot be accessed by others, including the
manufacturer of the vehicle, without prior approval;
Telematics also plays an important role in the repair and
service of motor vehicles. This wireless technology permits
remote monitoring of the health and safety of a vehicle’s
systems both on the road and in the garage. A vehicle’s
telematics system has the ability to wirelessly receive
services and software updates as well as send information regarding a vehicle’s operational status in real time.
Telematics permits a vehicle to alert a driver or car owner
that maintenance is required, whether it is an oil change
or a new timing belt, before a failure even occurs. It can
help the owner make an appointment at a service facility or even communicate the data directly to the service
provider.
•Require car owner consent and choice on where
information from their vehicle is transmitted so as to ensure consumer control over the privacy and use of personal data generated by a vehicle;
•Mandate that new car manufacturers build telematics systems with the capability to communicate data using a standardized interface such that the information can
be read and used by the car owner as well as which
ever service provide the vehicle owner so chooses; and,
•A vehicle’s telematics system should be open to free competition and be accessible to all independent providers selected by consumers in a non discriminatory manner.
The promise of telematics is that it will make car owners
safer, more productive and lowers the cost of vehicle ownership. Rather than guess at what a “check engine” light
means, the telematics system can send diagnostic information to a technician who can immediately diagnose the
problem and advise the car owner on their options. Smart
phones can interface with cars to unlock doors, check
battery life or inform the owner of a leaky tire. Parents
can remotely monitor their children’s driving habits.
Stolen cars can be tracked and disabled by their owners or
the police. However, all these applications create certain
challenges when it comes to security, privacy and the right
for consumers to select their vehicle service providers.
Today, when vehicles need repair, their owners often have
limited knowledge as to what exactly is wrong and what
options are available for repair. When given private access
to a telematics system, the consumer can choose to send
data from their vehicle to a technician or an automated
web site that can provide insights and options, before
bringing the vehicle in for service. Now, few consumers
have competitive choices with their telematics systems
and, when making an initial purchase of vehicle or other
electronic device, are often left with nothing more than a
“take or leave it” option. In order for this country to fully
benefit from the great promise of this technology, it is
imperative we empower the consumer.
While the development of vehicle telematics presents
clear benefits for the motoring public, it also raises
It is their car, their data, their choice!
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Preparing (even years prior!) to Sell Your Business
Getting the most for your business – and having the sale
go as smoothly as possible – means preparing even years in advance. Here is advice from some former shop owners who have
sold their business about what they think shop owners should do
even if exiting the business isn’t an immediate goal.
Make it a business deal
– even if it’s among family.
Mike Anderson, who sold his
two Virginia shops in 2010,
said you have to look at the
ability of the buyer to pay
off the business, even if that
buyer is a son or daughter.
“Too often I’ve seen parents sell a business to their
children after they’ve taught
them how to manage a body shop, but not how to manage cash
flow, how to build a budget, etc.” Anderson said. “The kids run
the business into the ground when that’s what mom and dad are
counting on as their nest egg and they are left with nothing. If
I were selling to a son or daughter or relative, I would have in
the agreement that I have the right to review the financials
every quarter. That’s no different than a bank providing financing. They reserve the right to look at those financials any time.”
Separate the business from the property.
Many buyers will want to acquire only the business and just
lease the building and property. This can be a great source of
revenue for the seller who owns both, though how the sale
price and lease terms are negotiated can also impact the tax
burden for the seller. But all of this entails separating the
business and property from each other, something that
should be done years ahead of a sale, the former shop
owners said.
Always be truthful in your disclosures, but also
prudent. Anderson cautioned against revealing too much
information about your business – your sources of work or
discounts offered, for example – to a potential buyer too
early in the process.
“I’ve seen (buyers) come in to buy a shop from certain
individuals who are too free with their information,”
Anderson said. “The deal falls through and then those other
people open a shop right next door. It’s not a done deal until
the money is in the bank.”
“Remember that it’s a negotiation until the very last day,”
agreed Pat O’Neill, a former owner of seven 9-1-1 Collision
Centers in Arizona and Nevada, who sold in 2011.
— John Yoswick