By Jeff Sanford
Toronto, Ontario — January 19, 2017 — This week’s edition of Friday Fun looks at a shop owner who donated his entire business to charity, how Cadillac plans to roll out a luxury vehicle subscription service, Rolls-Royce goes custom with 3D printing and much, much more!
– The Financial Services Commission of Ontario just released its latest information on auto insurance rates in the province. According to the latest data prices have, “… inched down a notch in Ontario, though the Liberal government is still far from its self-imposed target of an average 15-per-cent reduction,” according to a report from CityNews. “The Liberals promised in 2013 to cut auto insurance premiums an average of 15 per cent by August 2015, but after that deadline came and went, Premier Kathleen Wynne later admitted that was what she called a ‘stretch goal.’… Approved rates in the fourth quarter of 2016 decreased on average by 0.14 per cent…That puts the average decrease since August 2013 at about 8.3 per cent, or a little over halfway to the government’s goal …”
– The Baltimore Sun relates the story of a mechanic who donated an entire auto repair shop to a charity. The mechanic, Jerry Greeff, gave his entire $2.5 million shop to an organization named Vehicles for Change. The charity runs the Center for Automotive Careers, a program that prepares former inmates for jobs in auto repair and detailing. “Vehicles for Change could be a good way to address some of the tech shortage the collision repair industry is facing … The 18-month-old training program, based on Washington Boulevard in Halethorpe, has placed 30 graduates into jobs. Another 14 are still in training, working 40 hours per week.”
– Good news for CARSTAR. According to a press release the North American chain is the first MSO to expand beyond 500 locations. The report notes that, “CARSTAR recently unveiled a new facility in West Chester, Ohio. The new location is the network’s 500th collision repair shop—making CARSTAR the first MSO to surpass that milestone.” It was also reported this week that CARSTAR has been ranked in Entrepreneur magazine’s 38th Annual Franchise 500.
– A report released this week projects growth in lightweight autobody panels. According to the study, “Global consumption of lightweight automotive body panels was pegged at 9,500 thousand tonnes in 2015. Sales revenue of lightweight automotive body panels is expected to register a CAGR of 4.8% over the forecast period (2016–2026) … However, high costs associated with lightweighting materials are hindering widespread adoption and this is likely to restrict market growth over the forecast period,” according to a press release. The report goes on to say that high-strength steel is, “… projected to remain dominant throughout the forecast period … The high-strength steel sub-segment is estimated to account for maximum share of 73.5% in the overall market. The Aluminium sub-segment is estimated to account for a significant share of 18.0% … ”
– ABRA Auto Body & Glass announced some new key leadership appointments this past week as the major banner firm continues to grow, rapidly. A press release states that, “James Kessler has been appointed to the newly created position of Chief Operating Officer. Mr. Kessler joins ABRA with substantial experience in the automotive space, spending 17 years in several senior leadership roles at Pep Boys. Most recently, Kessler served as President & COO for various private equity backed growth companies where he lead operations through remarkable revenue and market share gains.”
Also announced is the promotion of Scott Krohn to the newly created position of Chief Process & Quality Officer. He previously held the role of ABRA’s Executive Vice President of Operations. The other appointment sees Toan Nguyen promoted to the, “… newly created position of Chief Information & Strategy Officer. He will lead ABRA’s critical technology area in addition to building the company’s analytical growth roadmap and corporate strategy.” He previously served as ABRA’s Chief Information Officer. ABRA’s President and Chief Executive Officer, Ann Fandozzi, was quoted as saying, “I am thrilled to announce the appointment of these three talented leaders … Their knowledge and clear vision for ABRA’s future will be instrumental in our long-term growth.” According to the press release ABRA now has 335 locations in 25 states and more than 5,000 employees.
– LKQ is about to undertake a major expansion of its hub in Nashville. The Chicago-based company will create 150 new jobs in the capital of country music. The company will set-up a 100,000 square foot regional headquarters. The expansion will ensure that, “… LKQ can continue to meet the growing demand for our products in North America and around the world,” said Justin L. Jude, the company’s senior vice president of operations. The new hub will include accounting, human resources and IT services.
– An article on Insurance Business suggests Cadillac’s new subscription service could up-end the auto insurance industry. The story notes that, “Car manufacturer Cadillac is set to launch a new service next month that could potentially disrupt the auto insurance industry … Book by Cadillac is a ‘luxury vehicle subscription service’ that works similarly to on-demand services such as Netflix and Spotify by allowing members access to popular Cadillac vehicles without purchase. Members only have to pay a flat monthly fee of $1,500 to have access to some of the manufacturer’s cars. They can then have the Cadillac automobile of their choice delivered to a specified time and location via app … Cadillac noted that members need not purchase their own auto insurance, since coverage will come with membership. Maintenance costs, taxes, and detailing will also be covered by the monthly subscription fee.” Who gets that collision repair fleet contract? Wow.
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| Cadillac is rolling out a subscription service that could cause some disruption to the {source}<br/>{/source}insurance industry. |
– Google Maps is creating a new tool that will let drivers know, “… how hard it will be to find a parking place once you arrive at your destination.” A story on Ars Technica notes some users in a test group now have access to an app that “… details parking information near your destination when you set driving directions … When you first set a destination, a parking availability indicator appears next to your estimated driving time in the form of a ‘P’ symbol. There appear to be three levels of parking availability: ‘easy,’ ‘medium,’ and ‘limited’ for areas where parking is typically hard to come by.”
– Honda Canada’s plant in Alliston, Ontario, is getting a nearly $500-million upgrade according to a story on the Financial Post. A chunk of that money will be used to, “…build a ‘state-of-the-art paint shop’ that will reduce greenhouse gas emissions by 44 per cent.”
– Some analysts continue to warn of a coming meltdown in auto financing in the United States. In a way not that dissimilar to the housing meltdown in the 2000s, car loans are being extended to people with bad credit and terms are being extended, creating risk for the financial firms doing the lending.
A recent story on Live Trading News notes the “New York Fed warns that surging delinquency rates for subprime auto loans are a ‘significant concern’ about the real health of the car industry … The worsening in the delinquency rate of subprime auto loans is pronounced, with a notable increase during the past few years … [Six million] people were at least 90 days late on repaying their car loans … The swelling delinquencies come at a time when unemployment is low and borrowers typically should be able to make their payments … That such serious trouble is emerging in a relatively good economy suggests that lenders have been loosening their standards and letting borrowers take on more debt than they can afford.”
– A story on 3D Printing Industry about Torsten Müller-Ötvös, the CEO of Rolls-Royce notes that, “Today, practically every motor car that leaves the Home of Rolls-Royce in Goodwood, England is Bespoke.” That is, every car is a custom one. The company is using 3D printing to create one-of-a-kind cars. Creating a teak dashboard inlaid with a clock based on a, “… customer’s favourite watch,” are the kinds of things the company is doing now.
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| Rolls-Royce is going big with customization through 3D printing. |
– An autobody shop owner in the US who posted his classic car for sale online has had it stolen from the shop’s garage just days later according to a story on the local ABC affiliate.
“Surveillance cameras captured the suspects hauling away the 1967 Chevrolet Impala, and driving away in a customer’s Saturn. The video shows the suspects arriving at Auto Body Care on Gibson Blvd. near Broadway shortly before 1:30 a.m. Friday. The same video shows them driving away more than four hours later,” according to the story. The owner of the shop, Ray Montoya, said the thieves got away with $8,000 in tools by breaking down the back door. Montoya said he, “… posted the Impala on sale on Craigslist days before it was stolen. He said the photos he posted show the body shop in the background, and Montoya believes the thieves recognized the shop.”
– A report from Global News notes a string of robberies at auto part stories in the town of Vernon, BC. Six stores, including a NAPA Auto Parts location, were hit around December 20, 2016. A report from the RCMP notes the thieves got away with, “… a portable TIG welding system, which owners value at $3,000.”
