SPRING 2009 Ford’s New TECHNOLOGY CENTER FOCUSES ON REPARABILITY Ford Customer Service Division has opened its new-and-improved Paint and Body Technology Center, a first-of-its-kind collaboration of repair and safety experts, product suppliers and insurers, in an effort to improve vehicle reparability and reduce repair costs. The 9,400-square-foot facility in Inkster, Mich., gives the company nearly 20 percent more space than the original location, which opened in 2002, and more importantly, puts Ford’s repair engineers in direct contact with its safety personnel by merging its operations with those at the existing Safety Crash Test Analysis building. This new relationship gives FCSD a great opportunity to utilize vehicle design to help develop key repair recommendations earlier in the product development process, and have that On The Inside The new Paint and Body Technology Center features state-of-the-art equipment from several suppliers; it aims to provide repairers with all of the information they need to return vehicles to pre-accident condition. • New Technical Service Bulletins • Legislative & Legal Update information available to repairers when a vehicle collaborations of Ford repair and safety engineers, reaches the showroom. during the development of both the 2009 F-150 • Updated Anti-Theft Label Information “The main goal of the PBTC is to determine what and the 2008 Focus. “The extensive use of real-world technical applications are needed to advanced technologies and materials in the new • Ford’s Reparability Matrix perform proper repairs, and to anticipate any F-150 required specific procedures and repair potential problems a repair technician may recommendations for the industry,” said Bonanni. encounter and provide him or her with all the To address the issue, Ford developed special necessary information,” said Gerry Bonanni, front and rear frame-section kits, which cost at Ford damageability/collision repair senior least $2,000 less than full frame replacements, engineer. “This could include anything from reducing the chance of a total loss. details concerning new materials used in a Mark Albrant, Ford customer service engineering vehicle’s production, to addressing questions supervisor, said such product developments, such as how paint and adhesives work with the along with the ability to create repair procedure new repair procedures.” manuals ahead of the introduction of new vehicles, The decision to house the two operations in the will help cut the overall cost of collision repair, same location stems from recent successful Continued on page 3 INSIDE THE INDUSTRY New Ford Vehicles Receive LKQ Financials and Acquisitions LKQ Corporation, the nation’s largest distributor of Anti-Theft Labels aftermarket and salvage crash parts, says its fourth- quarter net earnings fell 39.8 percent to $13 million, as The 2009 Ford Flex and Lincoln MKS have been added sales of new and refurbished aftermarket parts dipped to the list of vehicles requiring identification for service about 2.0 percent versus prior year. For the full year, replacement parts, as part of the ongoing effort to the company reports its net income hit $99.9 million, an reduce vehicle theft. increase of 51.6 percent, as recycled parts and service sales jumped 23 percent. The designation means ID labels must be placed on However, same-store sales for the quarter rose less each vehicle’s major components, as dictated by the than 1 percent, pulling the number for the year down Federal Motor Vehicle Theft Prevention Standard – 49 to 8.8 percent; and – citing the continuing drop in CFR Part 541 – published by the National Highway both miles driven and insurance claims volume – Traffic Safety Administration in 1985. the company says its aftermarket part sales inched up by just 1 percent for all of 2008. The standard aims to decrease vehicle theft by Meanwhile, LKQ has wrapped up several acquisitions in facilitating the tracking and recovery of stolen parts recent months. It has added to its fledgling heavy-duty and requires manufacturers to inscribe or attach the 2009 Ford Flex recycled truck parts business by securing facilities in vehicle identification number onto major parts of new Toledo and Tampa; increased its presence in Ontario, vehicles selected as high-theft car lines (an R-DOT – Canada, through the purchase of two auto recyclers Ford Oval or FoMoCo – is used on replacement parts). there; and obtained a wholesale salvage recycling The anti-theft identification labels will be found on the operation in North Carolina. following parts: engine, transmission, fenders, hood, Salvage VIN Database Up And Running doors, bumpers, rear quarter panels, decklid, tailgate, After becoming law nearly two decades ago, the National hatchback, and/or rear doors. Motor Vehicle Title Information System database (www. While anti-theft labels must not be removed from nmvtis.gov) is now available to the public, having gone parts at any time and replacements cannot be live on January 30, 2009. The site requires insurers and salvage yards to report vehicles that are severely ordered, repairers are reminded that replacement damaged or totaled. The goal is to curb the practice of emissions labels are available and can be ordered by “title washing,” where damaged or stolen vehicles are faxing form FPS-8604 – found on FMCDealer.com – to moved between states to receive new titles that hide (734) 374-8460. Independent repairers should contact their histories. their local Ford or Lincoln Mercury dealer for assistance, The database was signed into law in 1992, but never and other questions or concerns can be directed to the created. Last year, three consumer groups filed a Label Helpline at (734) 374-8353. 2009 Lincoln MKS lawsuit requesting it be created as soon as possible, and in September, a U.S. District Judge ordered the U.S. Attorney General to begin its implementation. Currently 36 states are participating to some degree, representing about 73 percent of the U.S. vehicle population. All states must be full participants by FORD HEADS LIST OF January 1, 2010. CCC/Mitchell Merger Off TOP SAFETY PICKS The proposed $1.4 billion merger between CCC Information Services and Mitchell International – two Fifteen Ford Motor Company vehicles have been Ford Taurus Ford Edge of the three main providers of electronic collision repair named “Top Safety Picks” by the Insurance Institute estimates – will not take place after all. for Highway Safety for the 2009 model year, more than Ford Escape Ford Taurus X The two companies have announced they will no longer any other automaker. pursue the transaction, following a U.S. District Court’s Ford Fusion Ford Flex The award recognizes those vehicles that earn the decision to grant the Federal Trade Commission’s Lincoln MKX Lincoln MKS request for a preliminary injunction blocking the move. highest rating in the Institute’s front, rear and side- The FTC filed the suit late last year, saying the merger impact crash tests and offer electronic stability Mercury Milan Mercury Sable would limit competition, and called the court’s decision control. a “triumph for consumers.” Mercury Mariner Volvo C70 The number of Ford vehicles on this year’s list accounts for over 20 percent of the total vehicles named, nearly Volvo S80 Volvo XC90 State Farm Tweaks Select Service doubling the eight that made it last year. The list Ford F-150 State Farm has announced it’s making some minor includes: changes to its Select Service program contract. Among the revisions: giving shops the ability to do a more thorough tear-down of the vehicle prior to completing the initial estimate; matching the requirements of the parts-ordering process being tested in Indiana and California; and requiring shops to meet local, state and federal licensing or certification mandates. According to State Farm Estimatics Consultant George Avery, who announced the changes at January’s Collision Industry Conference meeting, the new agreement does not request new concessions or discounts, nor are there plans for a significant cut in the number of participating shops. Continued on page 5 2009 Ford Fusion 2009 Mercury Milan 2 New PBTC Targets Reparability Continued from page 1 and in turn reduce auto insurance premiums. He Focus’s bumper bigger and stronger to better added, “Some of our work with improved design protect adjacent components,” according to Ford for damageability and reported successes in Damageability Engineer Larry Coan. “The new reducing insurance rates are, and have been, Paint and Body Technology Center will allow us defined, developed and implemented based on to develop even more affordable repairs before our work coming out of this facility. It is unique vehicles launch.” in the industry and a competitive advantage for Another key component of the PBTC is the Ford.” participation of several industry suppliers The current Ford Focus is another success story – including Akzo Nobel, BASF, DuPont, PPG, when it comes to trimming repair costs. According Sherwin-Williams and Chief – which actually to the Highway Loss Data Institute, the four-door invested the $650,000 needed to construct the model saw a 13 percent improvement in average facility and make it a fully-equipped, state-of-the- Chief Automotive Technologies is one of the many insurance loss payments compared to the 2007 art body shop, and will be able to use it to train equipment providers that helped fund the new center. model as a result of design improvements. “The certified repair technicians. “I am proud of the relationship between the PBTC and our sponsor- effort put forth by both helps to validate the work that Ford’s reparability experts already have ongoing development of the repair procedures.” done with Ford’s safety engineers has made the vendors,” noted Bonanni. “The collaborative The center is also working closely with industry groups such as I-CAR and several insurers, including State Farm and Allstate, which are providing their input on improving reparability earlier than ever in the development of new vehicles.