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The average age of cars and light trucks currently in operation in the U.S. has increased to 10.8 years, according to Polk, a leading global automotive market intelligence firm. Passenger cars showed a modest increase in age since 2010, from 11 years to just 11.1 years at the end of June 2011 (see table A). Light trucks (including pickups and SUVs) show a more sizeable gain in the same timeframe, from 10.1 years to 10.4 years. Overall, average vehicle age has been increasing quickly over the past five years. Polk reports average age based on an analysis of national vehicle registration data.
SALES DECLINES IN 2008-09 CONTINUE TO IMPACT AGE OF FLEET
The slowdown of the aging of passenger cars directly correlates to the low sales volumes and the mix of car and truck sales in the U.S. market in 2008 and 2009, a time in which more trucks than cars were registered. While more trucks were sold over the same timeframe, they showed a faster aging rate. Polk expects this trend may change in the coming years as CUV and small SUV populations in the U.S. market have risen in 2010 and 2011 due to their continued success in the market. Additionally, the rebound in new vehicle sales in 2011 and for the next couple of years will most likely slow down the aging rate seen in the market over the past three years, according to Polk.
“The increasing age of the vehicle fleet, together with the increasing length of ownership, offers significant business growth opportunity for the automotive aftermarket,” said Mark Seng, global aftermarket practice leader at Polk. “Dealer service departments and independent repair facilities, as well as aftermarket parts suppliers, will see increased business opportunity with customers in need of vehicle service.”
YEAR-OVER-YEAR LIGHT VEHICLE POPULATION DECLINES COME TO AN END
2011 marked the end of the U.S. vehicle population decline that has occurred annually since 2008. According to Polk, the total vehicles in operation (VIO) in July 2011 was just over 240.5 million, an increase of 500,000 units over July in the previous year, and nearly equal to 2009 VIO (see table B). The highest VIO on record was achieved in July 2008, when more than 242 million passenger cars and light trucks were on America’s roads.
The TIME Dealer of the Year Award has been called the most prestigious honor a new-car dealer can receive. In partnership with Ally and in cooperation with the National Automobile Dealers Association (NADA), TIME is proud to present the 43rd annual TIME Dealer of the Year Award.
In addition to exhibiting exceptional performance in their dealerships, TIME Dealer of the Year nominees perform heroic community service and are strong advocates for improving the world around them. Through the TIME Dealer of the Year program, TIME, Ally, and NADA honor outstanding new-car dealers across America and their unyielding commitment to improving their communities.
The presentation is titled "New Metals & Repair Technologies", presented by Dave Gruskos with Reliable Automotive Equipment. Dave will cover materials in today's vehicle bodies, repair methods for use on these materials, and how these materials affect the collision repair process.
Dave presented at a course offered during the recent SCRS Repairer Driven Education at SEMA. He received rave reviews from those who attended. To miss this learning opportunity would be a shame ... so make plans now to attend.
The meeting will be held at MAADA Headquarters located at 440 Interstate North Parkway, Atlanta, GA 30339. Get directions - click here. Please RSVP to Howard Batchelor at howard@gcia.org or call (770) 367-9816 with number attending so we may plan for food and refreshments.
In a letter released December 20th, 2011, the Society of Collision Repair Specialists (SCRS) provided commentary on an article written by USA Today contributing editor, Adam Belz, and entitled, Auto body shops say they, not insurers, should set costs.
The letter from SCRS counters points raised in the initial article, and provides information supporting the assertion that the property & casualty insurance industry's direct influence over collision repair market pricing, has impacted both the consumer and the small businesses that make up the collision repair industry. Several key components of the letter identify that:
- Property and casualty insurance carriers have become increasingly involved in activities that extend beyond the business of insurance, while interjecting themselves into collision repair business activities.
- The responsibility to compensate for fair and reasonable costs of the loss is significantly different than defining what is fair and reasonable.
- Average gross collision appraisal values have remained stagnant comparing the first and third quarters of 2009, 2010 and 2011, and older data indicates that the average appraisal value has remained flat for at least the last 7 to 8 years; meanwhile, consumer auto insurance premium costs continue to rise and the Insurance Information Institute recently reported that private auto insurance is the most profitable line of insurance coverage in the United States.
- The insurance industry's approach to establishing a singular prevailing labor rate charge for all businesses within a market fails to recognize the existence of reasonable variance between competitive businesses.
- When the repair shop has entered into both the DRP contract with the carrier, and an authorization to repair contract with the vehicle owner, it is not necessarily as simple as insurers "promoting poor quality work," but it becomes a question of who has more influence over the repair facility's decision making in the repair process, and whose interest drives those decisions.
In summary, the association states that, "the question is not IF insurance carriers directly impact collision repair market pricing, but rather IF their approach and purpose is appropriate. Are we really talking about saving consumer's money, or are we talking about increasing insurance company profits at the expense of their policyholders and the small businesses who serve them?"
To read the full letter, click here.
Toyota announced plans to export U.S.-assembled Camry sedans to its distributor in South Korea. Camry exports to South Korea are initially forecasted at approximately 6,000 units annually.
These Camry vehicles will be produced by team members at Toyota’s manufacturing plant in Georgetown, Ky. The plant is Toyota’s largest manufacturing facility outside of Japan, employing nearly 7,000 team members directly and creating nearly 20,000 additional jobs with vendors and suppliers in Kentucky and other states.
The Toyota Camry has been the top selling car in America for 13 of the past 14 years and a best-selling vehicle around the world. This is the first time the U.S.-assembled Camry will be exported outside of North America. The vehicles are scheduled to arrive in South Korea beginning in January.
Toyota began exporting U.S.-assembled vehicles in 1988. These exports increased 30% in calendar year 2010 to approximately 100,000 units. Toyota now exports U.S.-assembled vehicles to 19 countries around the world. The company began exporting Indiana-made Sienna minivans to South Korea last month.
Other exports include the Kentucky-produced Avalon sedan, the Indiana-produced Sequoia SUV and the Texas-produced Tacoma and Tundra pick-up trucks.
“We are pleased with the reaction that the redesigned Camry is receiving from our customers, and the sales success it is having in the U.S. and overseas,” said Yoshimi Inaba, president and COO of Toyota Motor North America, Inc. “The export of thousands of Camry vehicles to South Korea is an important development that builds on the great work of our talented U.S. team members as well as our extensive investments across North America to help maintain a strong, stable base of U.S. jobs. We look forward to other opportunities to continue growing exports from our American operations.”
Camry exports to South Korea will ship from the Port of Hueneme, near Oxnard, Calif.
"Passing the hat" is a time-honored tradition of collecting donations for a worthwhile cause. At the 2011 SEMA Show, taking place from November 1-4 at the Las Vegas Convention Hall, the Society of Collision Repair Specialists (SCRS) put its own unique spin on the tradition by "passing the helmet" for Operation Comfort's Automotivation initiative; the overall fundraising effort resulted in the collection of over $3200 for the non-profit organization.
Operation Comfort, located in San Antonio, Texas, provides support to U.S. service members who have been wounded in Afghanistan or Iraq and are receiving treatment at the Brooke Army Medical Center (BAMC). As a form of occupational therapy and career replacement, Operation Comfort runs a program entitled Automotivation where wounded service members rehabilitate through automotive-related activities such as rebuilding and restoring cars, trucks, and motorcycles on a ranch outside of San Antonio. Two vehicles the soldiers worked on as part of the Automotivation program, a 1957 Dodge Power Wagon used by the Army as a weapons carrier and a 1966 Cobra kit car, were on display at the SEMA Show.
"Operation Comfort provides a great place to work with lots of space and tools I wouldn't otherwise have access to, like a lift, power tools and a compressor," said Sergeant Robert Dickey, an Automotivation participant who was at the SEMA Show. "It's an opportunity to get out and do something I enjoyed doing before I got injured, plus it gives me the opportunity to consider doing something that I love for a living. I'm very thankful for that."
In an exclusive interview conducted by CollisionHub with SCRS Executive Director Aaron Schulenburg at the SCRS booth, Operation Comfort Executive Director Janis Roznowski expressed her gratitude for the industry's efforts on behalf of the program. "A lot of our guys are gear heads, and Automotivation gives them a chance to leave the hospital and the barracks to do something they love," Roznowski explained. "In the process, they may find a new career path opening up in front of them. We thank SCRS and the collision industry for their generosity. The money collected at this show is going to go to our next project, the restoration of a 1934 Ford Cabriolet."
Visitors to the SCRS booth on the SEMA Show floor couldn't help but notice the upturned military helmets stuffed full of bills of various denominations; donations from visitor
s wishing to give back to those who are there to defend our country. The helmets were also passed at Collision Industry Conference (CIC) and were visible in the hands of volunteers standing at the exit doors after the stirring Repairer Driven Education (RDE) Flawless Executionsm keynote by Afterburner Inc.'s Patrick "Lips" Houlahan. In addition, as part of a special tie-in with Afterburner's military aviation inspired headline presentation, SCRS held a silent auction throughout the week at their booth for a set of three "Flawless Execution One-on-One" DVDs produced by Afterburner.
"I was enthralled by the content of the RDE Afterburner presentation," shared Boyd Dingman, Owner of Dingman's Collision Centers in Omaha, Nebraska. "The message points were so relevant, and the simplicity of the practical application of the process really highlighted opportunities we may have been missing in the shop, and how we could start taking advantage of them when we got back home. I'm thrilled that I placed the winning bid on the DVD set. Since our business is comprised of multiple locations, I'm looking forward to utilizing the training in all three of my stores, to bring everyone up to speed on some of the process adjustments we are going to make; plus, it's an honor to know the money is supporting such a great cause like Operation Comfort. I got to meet some of the soldiers in the program while at the SEMA Show, and it is great to know there is a program like that to help."
"Everyone had the best time ever and that's all they've been talking about," concluded Roznowski in a post-event discussion. "Meeting the top leaders in the automotive industry gave the guys a real boost and I am amazed at the change in them. I can't thank all of you enough for bringing life back into our wounded men."
"This year's SEMA Show was an unforgettable event for a lot of different reasons, but nothing really compares to the feeling you get when you help rally support around a worthwhile cause," stated SCRS Chairman Aaron Clark. "Collision repairers have demonstrated time and again that the industry believes in community support and philanthropy, and it was great to see that on display yet again. Good luck to Operation Comfort, and thank you to the many industry professionals that contributed. Like those who serve our country in the military, you make us all proud."
About Operation Comfort: Operation Comfort is a 501(c)(3) organization that provides opportunities for wounded service members to participate in rehabilitative adaptive sports and Automotivation-a program where the wounded can work on cars. Operation Comfort also provides family financial assistance and therapeutic trips, emphasizing that an injury is not the end, but a new beginning. Browse this web site for more information. If you have any questions or would like to speak with an Operation Comfort representative regarding our service, please e-mail us at info@operationcomfort.org or call us at 210-826-0500.
The Society of Collision Repair Specialists (SCRS) announced today that the organization has secured a new contract for merchant services for association members. The new merchant services agreement has been signed with Total Merchant Services (TMS), and to celebrate this new relationship, TMS has extended an introductory incentive to all SCRS members. Any new or returning SCRS member who signs on with TMS to handle their merchant service needs through the SCRS program before Jan 1, 2012 will receive $150 - equivalent to half of a general member's annual dues payment.
Total Merchant Services is proud to be rated A+ on the BBB and offers the following benefits to SCRS members:
To take advantage of the special promotion, simply contact SCRS Account Representative Joe Forkner at 480.580.9430 or email JForkner@TMSPARTNER.COM to schedule a free, comprehensive review to find out how much you can save on your merchant account and what alternative payment options or cash advances may help you reach your business goals. All new clients will receive $150 and all new corporate accounts will receive $150 per location.
Interested collision repair facilities must be a current member of the Society of Collision Repair Specialists to be eligible for the incentive offer, and to take advantage of the specially negotiated merchant services offering from TMS. To find out more about Total Merchant Services, you can visit their website at www.totalmerchantservices.com. To find out more about SCRS, or to find information on joining the association, you can visit our website at www.scrs.com, or contact our administrations office at (877) 841-0660.
Giving back to the industry is a central premise of the Society of Collision Repair Specialists' (SCRS) activities throughout the year, and a pivotal piece in the development of Repairer Driven Education (RDE) and other SCRS events at the SEMA Show. For 2011, SCRS wanted to find a way to give back to another group who also supports the collision industry and had a special tie-in with this year's headline presentation from the Afterburner, Inc. fighter pilots.
Operation Comfort is a non-profit organization located in San Antonio, Texas with a mission to provide support to our service members who have been wounded in Afghanistan or Iraq and are receiving treatment at the Brooke Army Medical Center (BAMC). As a form of occupational therapy and career re-placement, Operation Comfort runs a program entitled "Automotivation," where wounded service members can get out of the barracks and go work on vehicles, learning repair techniques and processes, on a ranch outside of San Antonio. While the program has received generous support for the Automotivation program from companies such as CollisionHub, Chief Automotive Technologies, Sterling Autobody Centers and Vehicle Service Group, funding is an ongoing priority to keep programs like this in good working order.
In an effort to raise funds to support the rehabilitation of soldiers that have given so much in service of our country, and for a program that gives these men and women a new career path in our industry, SCRS is holding a silent auction from our booth (North Hall #10727) during the 2011 SEMA Show. Available for auction will be the Afterburner, Inc. Flawless ExecutionSM One-on-One Complete DVD Series, donated by SCRS with a retail value at $1,785.
The series is a course of three DVD/CD learning modules designed around the Flawless Execution Model. This model accelerates an organization's performance by embedding the effective planning and execution practices developed in the zero-tolerance environment of high-performance military aviation. This three-part course will take you through the following: development of an organization's "Future Picture" and strategy; aligning campaign and mission plans to that strategy; executing your plans; and continually learning from that execution in a fast-paced modern business environment. An accompanying CD is included in each chapter. It contains a companion Executive Student Guide in a PDF format. This guide will lead you through structured lessons by combining clear, written, explanations; exercises that help you apply the lessons to your business; and cues to the video lectures and demonstrations on the DVD. Separate audio tracks are also included on the CD.
SCRS is asking that you stop by their booth and enter into the silent auction so that you can support this worthy cause, and bring back some very valuable training tools for your employees. If you wish to simply donate to the effort, individual donations will also be accepted at the booth and at the conclusion of the SCRS RDE Headline Presentation from Afterburner, Inc.
If you are interested in seeing the handiwork from the program, two of the vehicles that the soldiers have worked on, a 1957 Dodge Power Wagon used by the Army as a weapons carrier and a 1966 Cobra kit car, will be on display at the 2011 SEMA Show.
For more information about SCRS' RDE program, or to register, please visit www.semashow.com/scrs.