Mitchell Industry Trends Report - Washington Metropolitan Auto

Transcription

®
Volume Nine Number One
Q1 2009
Published by Mitchell International, Inc.
Industry Trends
Report
In this issue:
Quarterly Feature:
The Time Has
Come for the
Mitchell
Information
Center
™
The Economy & Short-Term
Energy Outlook
Current Events in the Collision
Industry
Motor Vehicle Markets
New Vehicle Sales
New Vehicle Sales by Company
10 Best Selling Cars & Trucks
Used Vehicle Sales—
Current Monthly Index
Mitchell Collision Repair
Industry Data
Average Appraisal Values
Collision Losses
Comprehensive Losses
Third-Party Auto Property Damage
Supplements
Parts Analysis
Mitchell Crash Parts Index
Paint & Materials
Labor Analysis
Adjustments
Facts-at-a-Glance:
Automobile Technology Firsts
Total Loss
Canadian Feature Article:
Mitchell Looks at Estimate Accuracy
and Cycle Time for Mobile Appraisers
Canadian Collision Summary
Casualty Statistics
About Mitchell
Mitchell News Releases
Mitchell Brand Advertising at Work
Industry Trends
Report
Q1 2009
The Industry Trends Report is a quarterly
snapshot of the auto physical damage
collision and casualty industries. Just
inside—the economy, industry highlights,
plus illuminating statistics and measures,
and more. Stay informed on ongoing and
emerging trends impacting the industry,
and you, with the Industry Trends Report!
Questions or comments about the Industry
Trends Report may be directed to:
Greg Horn
Editor in Chief,
Vice President of Industry Relations
greg.horn@mitchell.com
For distribution and circulation questions,
or requests for back issues, please contact:
Table of Contents
3 Quarterly Feature : The Time Has Come for the
Mitchell Information Center™
6 The Economy & Short-Term Energy Outlook
8 Current Events in the Collision Industry
12 Motor Vehicle Markets
New Vehicle Sales
Used Vehicle Sales
14 Mitchell Collision Repair Industry Data
Collision Losses
Third-Party Auto Property Damage
Supplements
Parts Analysis
Facts-at-a-Glance: Automobile Technology Firsts
Paint & Materials
Labor Analysis
Adjustments
21 Total Loss
22 Canadian Feature Article : Mitchell Looks at Estimate Accuracy
and Cycle Time for Mobile Appraisers
24 Canadian Collision Summary
Canada Appraisal Severity
Canada Parts Utilization
Vehicle Age and ACV’s
Regina Merkey
Managing Editor,
Marketing Communications Specialist
Distribution and Circulation
(858) 368-7790
e-mail: regina.merkey@mitchell.com
Additional Contributors:
Manheim analytics provided by Thomas
C. Webb, Chief Economist at Manheim
Auctions. Webb has been associated with
the used vehicle market for more than 26
years, including serving as Senior Manager
at a professional services firm’s global
automotive practice, and Chief Economist
for one of the industry’s largest national
trade organizations.
The Industry Trends Report is published
by Mitchell International, Inc.
®
The information contained in this publication
was obtained from sources deemed reliable.
However, Mitchell International, Inc. cannot
guarantee the accuracy or completeness of
the information provided.
28 Collision Casualty Statistics
29 About Mitchell International, Inc.
News Releases Q4-2008
Mitchell International is a leading provider of information, workflow, and performance management solutions to the
property and casualty insurance claims, collision repair, and workers’ compensation industries. Mitchell facilitates millions of
electronic transactions between more than 25,000 business partners each month to enhance their productivity, profitability,
and customer satisfaction levels. For more information on Mitchell International, please visit our website at www.mitchell.com.
Mitchell Industry Trends Report
2
Quarterly Feature
The Time Has Come for the
Mitchell Information Center
™
By Greg HorN
Vice President of Industry Relations, Mitchell International
I was admiring a vintage 1960 Jaguar Mark II Sedan at a recent car show when I noticed
a red triangle in a chrome circle with the words “disk brake equipped” emblazoned on the
rear bumper. You see, at that time a sedan with four-wheel disc brakes was extremely rare,
(most all vehicles relied on run-of-the-mill drum brakes) so Jaguar saw it fitting to warn
drivers behind the wheel that this Jaguar could stop very quickly. Similarly, exotic sports
cars like the Aston Martin DB4 and DB5 proudly wore the badge “Superleggera,” which, in
a nutshell, meant that the body was “super light” and used aluminum body construction.
As I browsed a little more, I began to think how easy it was back then to simply affix an
emblem to indicate special equipment or construction materials. Today, however, vehicle
construction and equipment—and consequently repairs—are becoming more complex with
each model year. Lightweight materials and assembly procedures once reserved for exotic
sports cars like that Jaguar Mark II are now being used on familiar vehicles like Fords and
Chevrolets.
The Repair “Information Gap”
As I thought about it more, I also began to notice the constantly widening “information gap”
that exists between the automobile makers. This gap continues to grow as the amount of
knowledge, including a heightened number of special procedures, continues to increase the
skill level necessary for insurance appraisers and collision repair technicians to accurately
estimate and safely repair these increasingly complex vehicles. With the changes involved
in these estimates and repairs, also come changes in the approach to completing both.
Now, the once commonplace logical approaches to estimating and repair that used to be
tried and true seem to require a helping hand from technology.
Traditionally when a vehicle arrives at a shop for repair, most collision repair technicians will
look at its construction, note the welds, and use this information to figure out the best method
to replace the panel (usually it’s drilling out the old welds and welding in the new panel).
This conventional approach to repairs doesn’t always work anymore though, and using
this traditional logic would be a mistake if you were working on a new VW Passat, whose
laser-welded center pillar must be attached with adhesive bonding material if replaced in
the collision repair environment. If the replacement panel is welded, Volkswagen warns
that the structural integrity may be compromised and could result in serious injury in the
event of another collision. Think of the liability that your facility would incur if someone were
injured because proper repair procedures were not followed. Ok, you might be thinking, “I
can remember that the current model Passat needs to be laser welded, and besides, I don’t
see a lot of them anyway.” You’d be wrong again…
About the author…
Greg Horn
Vice President of Industry Relations,
Mitchell International
Greg
Horn
joined
Mitchell
International in September of
2006 as Vice President of Industry
Relations. In this role, Greg assists
the Mitchell sales force in providing
custom tailored business solutions to
the auto collision industry.
He provides guidance to Mitchell’s
Product Management and Business
Analytics teams, playing an important
role in shaping Mitchell’s solution
portfolio to ensure that it meets
the evolving needs of current and
future clients. Greg also presents
Mitchell’s Industry Trends Updates at
conferences across the country.
Prior to joining Mitchell, Greg served
as Vice President of Material Damage
Claims at GMAC Insurance, where
he was responsible for all aspects of
the physical damage claims process
and the implementation of a unique
vehicle replacement program along
with serving on the GM Safety
Committee. Prior to GMAC, Greg
served as Director of Material
Damage Processes for National
Grange Mutual in Keene, NH.
You’d Be Surprised by What You Can Miss in
Even the Most Popular Models on the Road
What about the Ford Focus? It’s been one of Ford’s top-selling vehicles since it was
introduced in 2000 and has since found new life on the showroom floor when fuel prices
spiked. It’s been pretty much the same car since it was introduced for the 2000 model
year with just a recent re-style, right? Not at all, as there have been some significant
3
Quarterly Feature : The Time Has Come for the Mitchell Information Center (con’t.)
modifications that require additional information and safety precautions. The 2007 base
model Focus did not offer side airbags. But in the 2008 model, side airbags are standard
in all Focus models. Attempt to section the quarter panel without disarming the airbags,
and you could trigger a deployment that would be both dangerous and costly—but easily
avoided if you followed the proper procedure. Again, we have another case where you can’t
take the risk of not having the most accurate and updated vehicle repair information. But
there are even more instances where having current repair information is critical.
Special instructions aren’t limited to the how involved in repairing vehicles, but they can also
apply to the what involved, as in the parts used to conduct repairs. Items that you wouldn’t
normally think of like simple fasteners, which used to be “generic,” are even manufacturerspecific these days.
Think of the liability
that your facility
would incur if
someone were injured
because proper repair
procedures were not
followed.
Take for example the 2004 and newer BMW 5 Series, which is equipped with the
new reduced weight aluminum front end. It requires the use of EMC (electromagnetic
compatibility) screws to ensure a proper transition to the electrical ground between panels
and components of dissimilar metals. In the BMW, EMC screws assume the function of
welded joints, which provide this proper transition to the ground and ensure operational
reliability of electrical components following repair. If you were to use the traditional repair
approach and substitute punch or blind rivets, it could cause a faulty ground and affect
any electrical component grounded to that panel. In that case, you’d run into that dim
side marker light that the customer complained about was indeed “not like that before the
accident,” and can’t be fixed by replacing the bulb.
Once again, if you were not working off OEM repair data and consequently unaware of the
EMC requirement, the oversight could cost you additional time and, more importantly, your
customer’s satisfaction with the repair. In fact, BMW’s repair procedure is so specific that it
recommends that each welded joint opened must be replaced by at least two EMC screws
with polyurethane sealing to avert corrosion. I wasn’t exaggerating when I said “specific.”
Understanding the need to adhere to specific manufacturer procedures is only half the
battle though.
Where Are All of the Answers?
Easy access to vehicle and Year/Make/Model specific information is quite another. True,
some information can be found in the headnotes and footnotes of the estimating systems.
But detailed “how-to” information and diagrams can’t be accommodated in this limited
space. While some automobile makers have done an admirable job of making repair
information available, others simply do not make it easily accessible. And out of those that
do, most charge a user fee for each of their sites. In any case, the individual charges add
up—not to mention slow you down if you have to spend hours searching for the information
from multiple sources on the Web.
Even then, you still aren’t done and won’t have the information you need. Once you’ve
found what you need, you then have to complete a purchase form and hope you picked the
right use time period. And what happens the next time that same make and model appears
back in your shop and your subscription has expired? Answer: you’re back to square one.
Whatever your role is in the collision repair industry, I know you’ve all experienced one or
more of these frustrations.
Once again, if you
were not working
off OEM repair data
and consequently
unaware of the
EMC requirement,
the oversight could
cost you additional
time and, more
importantly,
your customer’s
satisfaction with the
repair.
All of the scenarios I’ve just described are prime examples that clearly illustrate why the
new Mitchell Information Center™ (www.mitchellinformationcenter.com) is one of the
industry’s most valuable new tools that collision repair facilities and insurance appraisers
4
Quarterly Feature : The Time Has Come for the Mitchell Information Center (con’t.)
need in order to expertly perform their jobs in today’s increasingly complex environment.
This web-based tool is a single access point to databases that contain the most organized,
accurate and comprehensive vehicle repair information. The Mitchell Information Center
is a vehicle repair procedure warehouse that provides Year/Make/Model specific, detailed
manufacturer endorsed repair procedures and encourages each party involved in the repair
process to access and properly appraise the repair times and procedures necessary to
repair today’s complex vehicles—helping to eliminate many of the issues involved in today’s
increasingly complex vehicle repairs.
Using the Mitchell Information Center will save you time because you will be accessing
appropriate information, eliminating the time you would have wasted by not knowing the
proper procedure and debating what the accurate reimbursement for the repair should be.
Indeed, the time has come for the Mitchell Information Center.
Mitchell
Information Center
The Mitchell
Information Center
is a vehicle repair
procedure warehouse
that provides Year/
Make/Model specific,
detailed manufacturer
endorsed repair
procedures.
5
The Economy & Short-Term Energy Outlook
According to a statement released on January 6, 2009, the Federal Open Market
Committee decided to establish a target range for the federal funds rate of 0 to 1/4 percent
(.25%) in order to foster price stability and promote sustainable growth in output.
In the fourth quarter of 2008 economic activity contracted significantly as private payrolls
continued to fall at a faster pace than earlier in the year, and the unemployment rate rose to
7.2 percent. Industrial production, excluding special hurricane and strike-related effects, fell
further in November, and consumer spending declined across a broad range of spending
categories over recent months. The housing market weakened again as construction
activity, new home sales and home prices declined further, with homebuilding expected to
contract even further.
Real construction activity continued to decline in November, as single-family housing
starts and permit issuance fell further. In the multifamily sector, starts dropped sharply in
November while permit issuance remained on a downtrend. Housing demand remained
weak, and although the number of unsold new single-family homes continued to move
lower, inventories remained elevated relative to the current pace of sales. Sales of existing
single-family homes changed little, although a drop in pending home sales in October
pointed to further declines in the near term. The comparative strength of existing home
sales appeared to be attributable partly to increases in foreclosure-related and other
distressed sales. Financing conditions for prime borrowers appeared to ease slightly after
the Federal Reserve’s announcement that it would purchase agency debt and agency
mortgage-backed securities (MBS) to support mortgage financing, while the market for
nonconforming loans remained impaired.
The decline in household wealth resulting from large drops in equity and house prices,
together with tighter credit conditions, rapidly increasing unemployment, and deteriorating
consumer sentiment, has contributed to a sharp contraction in consumer spending.
Reduced consumer wealth and concerns about employment could lead to a further
increase in saving, which, although desirable in the longer term, could put additional
downward pressure on consumer spending in coming quarters. Theses concerns about
rising unemployment, the declines in stock market wealth, low levels of consumer
sentiment, weakened household balance sheets, and restrictive credit conditions are likely
to continue to hinder household spending over the near term. Amid the weaker outlook for
economic activity over the next year, the unemployment rate is likely to rise significantly
into 2010. Core inflation is projected to slow considerably in 2009 and then to edge down
further in 2010.
Real GDP (Gross Domestic Product) declined substantially in the fourth quarter of
2008 and is expected to fall much more sharply in the first half of 2009 than previously
anticipated. It is then expected to slowly recover over the remainder of the year as the
stimulus from monetary and assumed fiscal policy actions gain traction and the turmoil in
the financial system begins to recede.
In the business sector, investment in equipment and software appeared to continue to
contract. Financial markets saw a further pullback in risk-taking, spurred in part by the
more pessimistic outlook for economic activity; this situation led to lower equity prices,
higher risk spreads, and tighter constraints in credit markets, all of which intensified the
decline in real activity. In addition, credit conditions remained tight. Real nonresidential
investment declined in the third quarter after nearly three years of robust expansion, and
nominal expenditures edged down further in October. Vacancy rates rose and property
values fell in the first three quarters of the year.
Real nonfarm inventories (excluding motor vehicles), which had dropped noticeably in
the second quarter, fell again in the third quarter. The book value of manufacturing and
Information on the economy and short-term energy outlook was obtained from the US Federal Reserve Board,
Federal Open Market Committee (FOMC) and the US Department of Energy, Energy Information Administration
(EIA). For more information, or to view original source materials, visit: www.federalreserve.gov/FOMC or
www.eia.doe.gov
6
The Economy & Short-Term Energy Outlook (con't.)
wholesale trade inventories (excluding motor vehicles) showed a further drawdown in
October. However, the ratio of these inventories to sales increased noticeably in September
and October.
The U.S. international trade deficit widened in October, as a fall in imports was more than
offset by a significant decline in exports. Much of the decline in exports was the result of
drops in agricultural goods and industrial supplies, which largely reflected a decrease in the
prices of these goods. The decline in imports was led by lower imports of non-oil industrial
supplies, capital goods, and automotive products, although these declines were partly
offset by an increase in the value of oil imports.
The monthly average price of West Texas Intermediate (WTI) crude oil has fallen by more
than half between July and November, reflecting the fallout from the rapid decline in world
petroleum demand. The annual average WTI price is now projected to be $100 per barrel
in 2008 and $51 in 2009.
The average U.S. prices for regular-grade gasoline and diesel fuel, at $1.70 and $2.52 per
gallon respectively on December 8, were both more than $2 per gallon below their highs
in mid-July. With the assumption of a fragile economy throughout 2009, along with lower
projected crude oil prices, annual average retail gasoline and diesel fuel prices in 2009 are
projected to be $2.03 and $2.47 per gallon, respectively.
Residential heating oil prices during this current heating season (October though March)
are projected to average $2.53 per gallon, a reduction of 24 percent from the 2007-2008
heating season. Residential propane prices are projected to average $2.10 this winter, a
decrease of 14 percent from last winter. Residential natural gas prices are projected to
average $12.56 per thousand cubic feet (Mcf), a decrease of 1.3 percent from last winter.
The U.S. economic recession is also contributing to lower natural gas wellhead prices. The
Henry Hub natural gas spot price is projected to decline from an average of $9.17 per Mcf
in 2008 to $6.25 per Mcf in 2009.
Overall, the current global economic slowdown is now projected to be more severe and
longer than previously expected, leading to further reductions of global energy demand and
additional declines in crude oil and other energy prices.
Information on the economy and short-term energy outlook was obtained from the US Federal Reserve Board,
Federal Open Market Committee (FOMC) and the US Department of Energy, Energy Information Administration
(EIA). For more information, or to view original source materials, visit: www.federalreserve.gov/FOMC or
www.eia.doe.gov
7
Current Events in the Collision Industry
Household Hybrids
The OEMs Look to Simplify Recharging with Plug & Play Technology
By: Joan Engebretson
Excerpted From: ABRN—January 2009
When General Motors’ chief executive drove to Washington D.C. late last year seeking
federal funds to keep the company afloat, the big story for automotive enthusiasts, and
much of the American public, was the prototype car he drove. Still targeted for release in
2010 (a date that may or may not slip, depending how GM fares financially), the Chevy Volt
represents the next generation in hybrid vehicle technology.
Until now, the economics of hybrid vehicles such as the Toyota Prius have been a bit
problematic for the buyer. Today’s hybrids, which switch back and forth between gas and
electric power, can offer substantial savings on fuel. Unfortunately, it takes a long time for
the savings to cover the higher up-front cost in comparison with equivalent gas-powered
vehicles. The Chevy Volt ultimately could change that through a new approach that should
reduce fuel consumption even further.
The Volt is expected to rely much more on electric power, using an approach that goes by
a variety of names, including “extended-range electric vehicle,” “series hybrid” and “plugin hybrid/electric vehicle (PHEV).” The latter refers to the fact that, unlike some of today’s
hybrids, the Volt must be recharged overnight. But unlike some vehicles that operate
only on electricity, the Volt does not require a special charging station. It plugs into a
conventional 110V or 220V electric socket, charging in up to eight hours at 110V power or
in about three hours using 220V.
After charging, the Volt operates for the first 40 miles entirely under electric power. The
system then taps into a fuel-powered motor, but it is only used to recharge the battery.
The vehicle continues to run on the electric motor. GM notes that because 75 percent of
Americans drive less than 40 miles a day, many of them would need almost no gasoline
if they were to choose the Volt. Still, by extending range beyond 40 miles, the vehicle also
should be more attractive than a purely electric vehicle, which typically has limited range.
AN EDITOR’S NOTE…
The Achilles heel for all hybrids
is the battery—charging capacity,
useful life and replacement
cost. I expect these issues to be
resolved quickly by the OEMs. If
they improve at the pace other
consumer electronics do—like
computers—we won’t have long
to wait.
The long-term price of the Volt and similar vehicles including a planned Saturn Vue PHEV
and anticipated PHEV offerings from Toyota and others will depend, in large part, on
advances in the large on-board battery. These will need to deliver considerably more power
than the already-large batteries included in hybrids currently on the road.
“The total energy in a Prius battery may be equivalent to maybe a half-gallon or gallon of
gas,” observes Jack Nerad, executive market analyst at Kelly Blue Book of Irvine, Calif.
“What you’re looking for to get a range of 40 miles may not be 10 times as much, but you’re
getting close.”
The nickel metal hydride technology used in today’s hybrid batteries won’t be up to the
task, developers agree. Instead, automakers are looking at lithium ion, a battery technology
that already has reduced the size and increased the power of cellphone and other small
consumer batteries.
Developers hope to get battery costs to between $5,000 and $8,000 by 2010 and between
$3,000 and $5,000 as the technology matures over time.
Adapting lithium ion technology for use in PHEVs entails a key challenge. Cellphone-size
lithium ion batteries typically use cobalt dioxide for the cathode material. The use of that
material in a large-scale battery could cause the battery to rupture, explode or even catch
fire in the event of a collision. The same thing could also happen if it became exposed to
high temperatures.
The Tesla Roadster electric vehicle, already on the market at a cost of more than $100,000,
appears to have avoided these dangers by using nearly 7,000 of the small lithium ion
8
Current Events in the Collision Industry (con't.)
batteries available today and using sensors, cell isolation and liquid cooling to address the
volatility problem. But that approach is impractical for a mass market PHEV.
Different manufacturers are pursuing different solutions to the volatility problem. GM is
focusing on two manufacturers—A123 Systems, which has employees in the United States
and Asia and has received funding from several highly respected venture capital firms, and
LG Chem, a unit of the Korean conglomerate that also makes cellphones. A123 hopes to
address volatility issues by using iron phosphate for the cathode material and miniaturized
components based on nanotechnology. For its part, LG is pursuing the use of manganese
oxide spinel for its cathode material.
Lithium ion batteries also may find their way into traditional hybrid vehicles where they
could offer a power or size advantage over today’s nickel-hydride batteries. MercedesBenz, for example, has made plans to use lithium ion batteries from a joint venture of U.S.
conglomerate Johnson Controls and French manufacturer Saft in the S400 hybrid with
a 275 horsepower V6 engine that it expects to roll out in the U.S. in 2010. The Johnson
Control/Saft partnership also has development contracts involving lithium ion batteries for
PHEVs with Ford for fleet tests on the Escape, with the United States Advanced Battery
Consortium and others.
Yet another approach to PHEV batteries avoids the use of lithium ion completely. Lithium
polymer batteries, already used in electric model airplanes, may offer more promise than
lithium ion batteries, argues Brian Hamman, an automotive consultant who answers
technical questions for visitors who log-on to the JustAnswer.com Web site. “Lithium
polymer batteries could hold more power per pound than equal size lithium ion batteries
and they’re even lighter,” says Hamman, who predicts that carmakers may drop plans for
lithium ion batteries and instead substitute lithium polymer.
Requirements for repairing these vehicles center around protecting the large on-board
battery from intense heat in paint booths, notes Craig Van Bat-enburg, owner of the
Automotive Career Development Center of Worcester, Mass.
Van Batenburg doesn’t anticipate many additional handling requirements for PHEVs in
comparison with traditional hybrids. A 2008 Morgan Stanley forecast expects traditional
hybrid sales to ramp up gradually in the next decade. PHEVs are forecast to climb from
just 5,000 units in 2010 to more than 200,000 by 2015 and to more than a million by 2020.
That’s some serious battery power eventually coming to your shop.
ADESA Sees Silver Lining at Vehicle Auctions
Excerpted From: CollisionWeek—January 2009
Auction results in December and early January appear to support the conclusion that “the
worst may be over” for the used vehicle market.
Auction industry average prices, sales volumes, conversion rates (units sold as a
percentage of units offered), and inventory levels, all indicated more-favorable wholesale
market conditions according to ADESA analyst Tom Kontos.
“Fundamentally, retail sales of used vehicles improved—perhaps as value-conscious
consumers increasingly look to used vehicles in these tough economic times. In turn, this is
driving demand by dealers seeking to supplement low trade-in volumes with the attractive
values and selection available in the auction lanes,” said Kontos.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle
Prices by Vehicle Model Class, wholesale used vehicle prices in December averaged
$9,022—a 3.6 percent increase over November. December’s year-over-year decline
was 7.4 percent, compared to declines of 10.0 percent in November and 11.3 percent in
October. This marks the second straight month-over-month increase since October’s near-
9
record low and record year-over-year price declines. Full-size SUVs showed the highest
monthly price gains, while compact car prices declined the most, as wholesale prices
continue to reset after over-corrections when gas hit $4.00 in May/June. Luxury cars and
SUVs showed increases similar to those of the market as a whole, as did full-size cars that
are popular fleet vehicles. Another popular fleet segment, minivans, showed strong price
growth.
December prices for vehicles sold in manufacturer sales were down 9.0 percent yearover-year, fleet/lease sales prices were down 10.9 percent and dealer consignment sales
prices were down 17.5 percent. These year-over-year declines were all milder than those in
November, and in the case of manufacturer sales, prices were up significantly (3.8 percent)
versus prior-month.
On a sequential basis, retail sales were up for both franchised and independent dealers,
yielding a 4.0 percent combined increase for the month. Although data from CNW
Marketing/Research, showed that December retail used vehicle unit sales were down 6.9
percent year-over-year for franchised dealers, 11.9 percent for independent dealers and
9.2 percent overall, these year-over-year declines were all milder than those in November.
Also of note, certified used vehicle sales were up 14.4 percent year-over-year in December,
allowing the year to show a modest, but important increase of 1.0 percent versus 2007.
Volvo’s “Car That Stops Itself” Goes on National Tour
Volvo is giving customers a sneak peak at its safest car ever made—the Volvo XC60 with
standard City Safety—through the nationwide From Sweden with Löv Experiential Tour
that will canvas the southern and western U.S. simultaneously, stopping in more than 85
cities.
The new XC60 features City Safety, a system designed to help the driver avoid or reduce
low-speed impacts that are common in city traffic. If the car is about to strike the vehicle in
front and the driver does not react, the car automatically applies the brakes.
“With the XC60, seeing is believing, and attendees to the tour stop events have been
excited by the City Safety feature,” says Doug Speck, president and chief executive officer
for Volvo Cars of North America. “Since the tour began last fall, an impressive number of
customers have preordered the new XC60 which goes on sale this March.”
Volvo says that according to surveys, more than 75 percent of all accidents occur at
speeds below 18 mph, and the company is involved in a dialogue with several insurance
companies regarding lower insurance premiums for cars equipped with City Safety.
For tour dates and locations, or to register to experience City Safety behind the wheel, visit
www.volvocars.us/XC60Tour. To learn more about the XC60 from a Volvo insider and to
watch video reactions of people behind the wheel when “the car that stops itself,” visit the
official XC60 blog, www.thecarthatstopsitself.com.
With the improvements in safety
that many automakers have
made, some in the industry
questionVolvo’s ability to retain
its “#1 safety rating.” But with
advances this high-tech with real
world benefit, is there any doubt?
National Title Information to be Available to Public
The National Motor Vehicle Title Information System (NMVTIS) will be implemented by
Jan. 30, providing a national database of vehicles compiled from state, salvage and insurer
reporting. It will require insurance companies and salvage yards to report vehicles that
are severely damaged or totaled, and consumers will have access to information such as
odometer readings and theft records.
10
NMVTIS data is expected to be more comprehensive, up-to-date and less expensive than
some private sector reports, according to the Automotive Service Association (ASA).
The NMVTIS implementation stems from the 2008 court case Public Citizen Inc.,
Consumers for Auto Reliability and Safety, and Consumer Action v. Michael Mukasey,
Attorney General of the United States. Public Citizen filed the suit to fight for a used car
database that was established by Congress in 1992 in the Anti-Car Theft Act. However, the
U.S. Department of Justice never made the system available to the public.
ASA said it supported legislation in the 110th Congress similar to the new NMVTIS.
This bill could end “title washing” and
help eliminate the practice of hiding
damaged vehicle histories from
unsuspecting buyers. After several
poor previous attempts at achieving
this kind of system, it seems they
have finally gotten it right.
Driving Simulator Expands Driver Safety Research
Wayne State University, Michigan’s only urban public research university, has added a
full-size sedan equipped with a state-of-the-art data collection system to study driver
performance under hazardous conditions while in a safe environment to collect data in
a virtual environment that will assist researchers and industry leaders in developing new
products and practices to reduce injuries and fatalities.
“The driving simulator will greatly enhance our research capabilities in the areas of driver
rehabilitation and community mobility,” says Joseph Pellerito, Jr., associate professor in the
occupational therapy program. Pellerito was instrumental in attaining the driving simulator,
which was donated by Motorola and has an estimated value of $225,000.
Located in the University’s Eugene Applebaum College of Pharmacy and Health Sciences
(EACPHS), the driving simulator replicates the interior of a vehicle featuring steering wheel,
gas and brake pedals, ignition switch, rear and side view mirrors, headlights, gear shift,
and turn signals. It is housed in a laboratory, which features an adjacent observation room
equipped with a one-way mirror.
It’s reassuring to see that safety
research includes the study of
human behavior as well as advances
in vehicle engineering.
The laboratory has five viewing screens that offer a 220-degree field of view. The
simulator’s software enables researchers to recreate typical and atypical driving scenarios,
including monotonous freeway driving at various times throughout the virtual day. Lighting,
weather conditions, damage threshold, and surface friction also can be manipulated in the
virtual environment.
Pellerito is preparing to use the driving simulator to examine the effects of a rapid-onset
cool air temperature within a vehicle. “Preventing motor vehicle crashes caused by fatigue
and drowsiness has become a major focus of researchers,” he explains. “Our research to
maintain a cool temperature in a vehicle is one tactic to increase or restore driver alertness
and reduce crash risks or incidences.”
11
Motor Vehicle Markets
New Vehicle Sales
According to Ward’s Auto, total new light-vehicle for full year 2008 were down an astonishing 2,894,659 vehicles from 2007, leading the
domestic manufacturers to request government assistance, and foreign manufacturers to drastically cut production. Now in the midst of
a deep recession, the question becomes—how will the industry that is built on producing 16 million units per year transform itself to be
profitable on production of 13 million or fewer units?
Ward’s U.S. Light Vehicle Sales Summary
January-December 2008
Number of Vehicles
0
2m
4m
6m
8m
10m
12m
14m
4,562,343
-13.2
Import Cars
2,251,193
-4.8
Total Cars
6,813,536
-10.6
Domestic Light Trucks
5,285,385
-25.4
Import Light Trucks
1,095,642
-21.1
Total Light Trucks
6,381,027
-24.7
Domestic Light Vehicles
9,847,728
-20.2
Import Light Vehicles
3,346,835
-10.8
Total Light Vehicles 13,194,563
-18.0
Vol % Change from 2007 Sales
Domestic Cars
Ward’s U.S. Light Vehicle Sales by Company
Number of Vehicles
0
2m
4m
6m
8m
10m
12m
Source is country of manufacture. Domestics are from U.S., Canada, Mexico. Imports are from overseas. Light vehicles are cars and light trucks (GVW Classes 1-3, under 14,001 lbs.). DSR is daily sales rate.
Source: Ward’s AutoInfoBank ©Copyright 2009, Ward’s Automotive Group, a division of Penton Media Inc. Redistribution prohibited.
-30.3
-20.3
-22.7
—
-23.9
-7.9
-14.0
-36.6
-10.5
-10.9
-24.6
-11.0
0.3
-16.7
-32.2
-15.4
-12.4
-9.7
-1.4
-25.0
-4.1
-6.1
-18.0
Vol % Change from 2007 Sales
Chrysler
1,447,736
Ford
1,942,041
GM
2,955,860
International (Navistar)
851
North America Total 6,346,488
Honda
1,428,765
Hyundai
401,742
Isuzu
7,262
Kia
273,397
Mazda
263,949
Mitsubishi
97,257
Nissan
951,446
Subaru
187,699
Suzuki
84,865
Tata
44,198
Toyota
2,217,660
Asia Total 5,958,240
BMW
303,190
Daimler
249,722
Porsche
26,035
Volkswagen
310,888
Europe Total
889,835
Total Light Vehicles 13,194,563
14m
12
Motor Vehicle Markets (con't.)
Ward’s 10 Best Selling
Cars and Trucks
Note: Table combines imports and domestics.
Source: W
ard’s AutoInfoBank.
©Copyright 2009, Ward’s Automotive Group,
a division of Penton Media Inc.
Redistribution prohibited.
Cars
1. Toyota Camry
2. Honda Accord
3. Toyota Corolla/Matrix
4. Honda Civic
5. Nissan Altima
6. Chevrolet Impala
7. Ford Focus
8. Chevrolet Cobalt
9. Chevrolet Malibu
10. Toyota Prius
Trucks/Vans/SUVs
436,617
372,789
351,007
339,289
269,668
265,840
195,823
188,045
178,253
158,884
1. Ford F Series
2. Chevrolet Silverado
3. Dodge Ram Pickup
4. Honda CR-V
5. GMC Sierra
6. Ford Escape
7. Toyota Tacoma
8. Toyota Tundra
9. Toyota RAV4
10. Honda Odyssey
515,513
465,065
245,840
197,279
168,544
156,544
144,653
137,249
137,020
135,493
Used Vehicle Sales – Current Monthly Index
By tom webb
Chief Economist – Manheim
Wholesale Prices Drop Again in November
After falling by a record 6.0% in October, wholesale used vehicle prices
(on a mix, mileage, and seasonally adjusted basis) fell another 5.7%
in November. The Manheim Used Vehicle Value Index stood at 98.3 in
November, representing a decline of 12.2% from a year ago.
Manheim Used Vehicle Value Index
November 2007 – November 2008
116
114
The retail and wholesale used vehicle marketplaces have been
characterized by unprecedented weakness for the last two-and-half
months. The poor macroeconomic environment will likely depress retail
activity well into 2009. On the wholesale side, the magnitude of the price
decline that has already occurred, coupled with the normal seasonal
uptick that begins in January, should mitigate the further erosion in
wholesale values and bring some improvement to conversion rates.
Nevertheless, we expect overall pricing and bidding activity at auction
to remain subdued. Today’s “bargain prices” at auction are no bargain if
there is no retail demand.
112
110
108
106
104
102
100
98
96
94
92
90
Nov
07
Dec
07
Jan
08
Feb
08
Mar
08
Apr
08
May
08
Jun
08
Jul
08
Aug
08
Sep
08
Oct
08
Nov
08
Source: Manheim Consulting
Make/Model
13
Mitchell Collision Repair Industry Data
The following information was assembled from industry-wide appraisal data uploaded from
participating insurance carriers, body shops, and independent appraisers, processed by
Mitchell International and compiled through Mitchell’s AIM™ (Advanced Information
Management) system.
With the obvious exception of the Total Loss section, all data in this section, including ACV
benchmarks, relate to repairable vehicle appraisals only.
Sections included in the Mitchell Collision Repair Industry Data:
• Average Appraisal Values
• Comprehensive Losses
• Supplements
• Paint & Materials
• Adjustments
• Collision Losses
• Third-Party Auto Property Damage
• Parts Analysis
• Labor Analysis
• Total Losses
Mitchell Product Solution:
AIM
AIM™ features immediate online data access,
custom report construction, ad-hoc query
capabilities, weekly updates, and the ability to
accept and consolidate detailed appraisal data
from all major estimating platforms. For more
information on AIM, visit Mitchell’s website at
www.mitchell.com.
Development Explained
The following data points are dynamic and subject to change from on-going supplement
and total loss designation activities amending original appraisal values. Average appraisal
values submitted in June, for example, will likely increase by several dollars over the next
few months, then stabilize as all supplements are factored into the final value for the period.
Raw values are provided, and then adjusted based on the observed six-month change
behavior from prior data to produce a projected final or “developed” value. Adjusted values
may therefore be considered reliable approximations of the eventual, industry value for
any given datum. As supplement frequency and severity, as well as total loss designation
activities vary by carrier, we suggest that each company isolate their own development
factors to apply to their own unique data sets.
The initial average appraisal value, as calculated by combining data from all first- and thirdparty repairable vehicle appraisals uploaded through Mitchell systems in Q4-2008, was
$2,556, $10 less than the previous year’s Q4-2007 appraisal average of $2,566.
Applying the prescribed development factor of 2.3%, it produces an anticipated average
appraisal value of $2,615.*
Average Appraisal Values, ACVs and Age
All APD Line Coverages
$14,000
$12,000
$12,591
$12,225
$12,730
$12,446
$12,694
$11,769
$10,000
$8,000
UltraMate
UltraMate is Mitchell’s advanced estimating
system, combining database accuracy,
automated
calculations,
and
repair
procedure pages to produce estimates that
are comprehensive, verifiable, and accepted
throughout the collision industry. UltraMate
is a central component of Mitchell’s all-inone estimating, imaging, and claims workflow
management solution, UltraMate Premier
Suite. For more information on UltraMate
and UltraMate Premier Suite, visit Mitchell’s
website at www.mitchell.com.
®
$6,000
$4,000
$2,000
Avg. Unit Age
$2,437
$2,546
$2,425
$2,566
$2,475
$2,556/
2,615
Q2 2006
Q4 2006
Q2 2007
Q4 2007
Q2 2008
Q4 2008
5.82
6.00
5.84
6.08
5.96
6.33
Appraisals
ACV’s
*NOTE: Values provided from Guidebook benchmark averages, furnished through Mitchell UltraMate®.
14
Mitchell Collision Repair Industry Data (con't.)
Collision Losses
Mitchell’s Q4-2008 data reflect an initial average gross collision appraisal value of $2,898,
just $55 more than the same period last year. However, if we apply the prescribed
development factor, we find the anticipated average gross collision appraisal value is
anticipated to be $2,967 on a vehicle that is slightly older and with an ACV of $1,194 less
than in Q4-2007.*
Collision Coverage*
$14,000
$13,320
$12,998
$12,000
$13,649
$13,223
$13,402
$12,455
$10,000
$8,000
$6,000
$4,000
$2,000
Avg. Unit Age
$2,943
$2,836
$2,943
$2,781
$2,898/
2,976
$2,808
Q2 2006
Q4 2006
Q2 2007
Q4 2007
5.47
5.70
5.54
5.72
Q2 2008
Q4 2008
5.58
5.94
Appraisals
ACV’s
In Q4-2008, the average initial gross appraisal value for Comprehensive losses processed
through our servers was $2,423, an increase of $56. When we apply the prescribed 3%
development factor, we anticipate the final comprehensive severity figure will be $2,497.*
$14,000
$12,542
$12,000
$12,912
$12,789
$12,552
$11,936
$11,943
$10,000
$8,000
$6,000
$4,000
$2,000
Avg. Unit Age
$2,156
$2,303
$2,100
$2,367
Q2 2006
Q4 2006
Q2 2007
Q4 2007
6.05
6.20
6.04
6.28
$2,439
$2,423/
2,497
Q2 2008
Q4 2008
5.99
6.41
Appraisals
ACV’s
15
Third Party Property Damage
The Q4-2008 Third Party Property Damage average appraisal value was $2,223, an
increase of only $4 over the same period last year. If we apply the appropriate development
factor, we anticipate the final value will be $2,332 on a vehicle with a lower ACV of
$11,132.*
Auto Physical Damage APD
$12,000
$11,966
$11,696
$12,071
$11,957
$11,803
$11,132
$10,000
$8,000
$6,000
$4,000
$2,000
$2,206
$2,244
$2,183
$2,292
$2,296/
2,332
$2,223
Q2 2006
Q4 2006
Q2 2007
Q4 2007
Q2 2008
Q4 2008
5.95
6.15
5.98
6.27
6.15
6.59
Avg. Unit Age
Appraisals
ACV’s
Supplements
Editors Note: As it generally takes at least three months following the original date of
appraisal to accumulate most supplements against an original estimate of repair, we report
(and recommend viewing supplement information) three months’ after-the-fact, to obtain
the most accurate view of these data.
In Q4-2008, 28.21% of original estimates prepared by Mitchell equipped estimators
during that period were supplemented one or more times. In the same period, the pure
supplement frequency (supplements to estimates) was 48.17%, reflecting less than a 2%
increase over the same period last year. At $563.93, the average supplement variance was
$81.55 (12.6%) lower than the same period in 2007.
Average Supplement Frequency and Severity
Date
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Pt/$ Change
% Change
% Est. Supplement
32.83
34.94
33.05
34.89
32.07
28.21
-6.68
-19%
% Supplement
44.58
46.45
46.71
47.33
45.84
48.17
0.84
2%
Avg. Combined Supp. Variance
632.76
659.36
617.25
645.48
635.89
563.93
-81.55
-13%
% Supplement $
25.96
25.9
25.46
25.15
25.69
22.07
-3.08
-12%
16
Average Appraisal Make-up
This chart compares the average appraisal make-up as a percentage of dollars, constructed
by Mitchell-equipped estimators. These data points reflect a slight decrease in the use of
parts, while the percentage of paint material and labor dollars used in the average appraisal
have increased between these respective periods, with paint and materials rising by 7%.
% Average Appraisal Dollars by Type
Date
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Pt/$ Change
% Change
% Average Part $
42.34
45.58
44.25
45.65
41.01
44.49
-1.16
-3%
% Average Labor $
47.08
43.62
44.95
43.49
48.11
44.26
0.77
2%
% Paint Material $
9.55
9.33
9.67
9.47
10.2
10.14
0.67
7%
Parts Analysis
As a general observation, recent data show that parts make up 42.4% of the average value
per repairable vehicle appraisal, about (.6) points more than the average allocation of labor
dollars. In addition, the current trend reflects a continued decrease in the use of new OEM
parts, likely as a result of the increases in collision parts taken by the manufacturers to
offset increased delivery and storage expenses
Editor’s Note: While there isn’t a perfect correlation between the types of parts specified
by estimators and those actually used during the course of repairs, we feel that the
following observations to be directionally accurate for both the insurance and auto body
repair industries. This segment illuminates the percentage of dollars allocated to each
unique part-type.
Parts Type Definitions
• Original Equipment Manufacturer (OEM): Parts produced directly by the vehicle
manufacturer or their authorized supplier, and delivered through the manufacturer's
designated and approved supply channels. This category covers all automotive parts,
including sheet metal and mechanical parts.
• Aftermarket: Parts produced and/or supplied by firms other than the Original Equipment
Manufacturer’s designated supply channel. This may also include those parts originally
manufactured by endorsed OEM suppliers, which have later followed alternative
distribution and sales processes. While this part category is often only associated with
crash replacement parts, the automotive aftermarket also includes a large variety of
mechanical and custom parts as well.
• Non-New/Remanufactured: Parts removed from an existing vehicle that are cleaned,
inspected, repaired and/or rebuilt, usually back to the original equipment manufacturer’s
specifications, and re-marketed through either the OEM or alternative supply chains.
While commonly associated with mechanical hard parts such as alternators, starters and
engines, remanufactured parts may also include select crash parts such as urethane and
TPO bumpers, radiators and wheels as well.
• Like Kind and Quality (LKQ): Parts removed from a salvaged vehicle and re-marketed
through private or consolidated auto parts recyclers. This category commonly includes all
types of parts and assemblies, especially body, interior and mechanical parts.
Editor’s Note: It is commonly understood within the collision repair and insurance industries that a
very large number of LKQ “parts” are actually “parts-assemblies” (such as doors, which in fact include
numerous attached parts and pieces). Thus, attempting to make discrete comparisons between the
average number of LKQ and any other parts types used per estimate may be difficult and inaccurate.
Mitchell
Alternate
Parts Program
Mitchell Alternate Parts Program (MAPP™)
offers automated access to nearly 30,000,000
Remanufactured, Aftermarket, and OEM
Discount parts from over 1,500 suppliers,
ensuring shops get the parts they need
from their preferred vendors. MAPP is fully
integrated with UltraMate for total ease-of-use.
Designated company administrators are also
provided the MAPP Matrix Manager application
free of charge—allowing clients the ability
to manage their MAPP matrices, run four
different matrix reports, add new suppliers/
parts, all from their local platform without the
need for Mitchell support/intervention.
Quality
Recycled
Parts (QRP)
Mitchell Quality Recycled Parts (QRP™) is
the most comprehensive source for finding
recycled parts. It gives online access to a parts
database compiled from a growing network of
more than 2,500 of the highest quality recyclers
in North America and Canada, covering more
than 400 part categories representing access
to nearly 44,000,000 parts from recyclers’
parts inventories—updated daily. QRP is fully
integrated with UltraMate for total ease-of-use.
In addition, for selected QRP parts, UltraMate
automatically applies Mitchell’s Assembly Time
Guide labor allowances and P-pages specific to
LK parts replacement.
17
Original Equipment Manufacturer (OEM) Parts Use in Dollars
In Q4-2008, OEM parts represented 72.15% of all parts used on repairable estimates written
by Mitchell equipped estimators. That is a 2.23 percentage point decrease from the same
period last year.
OEM Parts, as a % of Total Parts Dollars per Appraisal
73.2%
73.8%
74.5%
74.4%
74.3%
72.2%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Aftermarket Parts Use in Dollars
In Q4-2008, aftermarket parts increased by a mere .56 points over the Q4 2007 results.
Despite the decrease in OEM parts use, Aftermarket parts vendors were not the principal
beneficiaries.
Aftermarket Parts, as a % of Total Parts Dollars per Appraisal
10.7%
10.8%
10.2%
10.6%
10.5%
11.2%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Remanufactured Parts Use in Dollars
Non-new or remanufactured parts use increased a mere .49 points over the same period in
2007, again showing remarkable consistency in remanufactured part utilization.
Non-New/Remanufactured Parts, as a % of
Total Parts Dollars per Appraisal
4.8%
4.6%
4.7%
4.6%
4.7%
5.0%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Like Kind and Quality Parts Use in Dollars
LKQ parts use increased by 1.28 percentage points in Q4-2007. LKQ parts use seems to
be the primary offset for the reduced OEM parts use.
LKQ Parts, as a % of Total Parts Dollars per Appraisal
11.4%
10.8%
10.6%
10.6%
10.5%
11.7%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
18
The Mitchell Crash Parts Index is a new feature that we have added to this issue of the
Industry Trends Report. The methodology is pretty simple—we pulled data for the top five
most commonly replaced crash parts (bumpers, fenders, hoods, turn signals and headlamp
units) for 2003 through the third quarter of 2008. We then created weighted average prices
for these parts in aggregate, setting the base year at 2003 and equal to 100. This allows us
to compare inflationary trends by part type and vehicle nameplate country of origin.
Automobile Technology
Firsts: Facts At-A-Glance…
• The first production car to have disc
brakes was the 1949 Crosley Hotshot.
• The first production car to feature
electronic fuel injection was the 1968
VW Type 3 Squareback and Fastback.
Top Five Crash Parts Index – Average Per Part Price
• The first uni-body production car was
the 1924 Lancia Lambda.
119.04
120
115.43
• The first all-aluminium bodied vehicle
was the 1932 Riley Kestrel.
115
111.39
110
107.08
• The first carbon fiber unibodied car
was the 1993 McLaren F1.
105
100
100.00
101.96
95
90
2003
2004
2005
2006
2007
2008
Top Five Crash Parts Index – Nameplate Origin
140
136.28
130
European
Asian
119.42
120
Domestic
114.97
110
100
100.00
90
2003
2004
2005
2006
2007
2008
Top Five Crash Parts Index – Part Type
140
aftermarket
130
oem
124.47
121.83
118.29
120
111.88
110
100
remanufactured
lkq
100.00
90
2003
2004
2005
2006
2007
2008
19
Paint and Materials
During Q4-2008, Paint and Materials made up nearly 10.14% of our average appraisal
value, representing a .67 point increase over Q4-2007. The average hourly rate was
$27.56, a $1.40 increase over the last quarter of 2007.
Refinishing
Materials
Calculator
(RMC)
Editor’s note: The chart shown now excludes comprehensive estimates in the calculations
to avoid seasonal hail related swings in the data reported.
Paint and Materials, by Quarter
9.7%
9.6%
$26.16
$25.74
$25.45
$25.33
10.2%
Mitchell’s Refinishing Materials Calculator™
(RMC) provides accurate calculations for
refinishing materials costs by incorporating a
database of over 7000 paint codes from eight
paint manufacturers. It provides job-specific
materials costing according to color and type
of paint, plus access to the only automated,
accurate, field-tested, and industry-accepted
breakdown of actual costs of primers, colors,
clear coats, additives, and other materials
needed to restore vehicles to preaccident
condition. RMC is now also fully integrated
with UltraMate v6.0 and UltraMate v6.0
Premier Suite for total ease of use. For more
information on RMC, visit Mitchell’s website at
www.mitchell.com.
$27.56
$27.37
10.1%
9.5%
9.3%
Q2 2006
Q4 2006
Q2 2007
% of Appraisal $
Q4 2007
Q2 2008
Q4 2008
Rate = Average P&M $/Average Refinish Hours/Estimate
Labor Analysis
Average body labor rates have risen compared to the to 2007
full year average in all our sample markets with the exception of
Hawaii, which had no increase.
Average Body Labor Rates and Change by State
% Average Labor Dollars by Type
Refinish (33.1%)
Parts Replacement (27.6%)
Parts Repair (39.3%)
2007
2008
Pt/$
Change
%
Change
Arizona
44.99
California
47.03
45.4
0.41
1%
48.28
1.25
Florida
3%
40.44
41.15
0.71
2%
Hawaii
42.87
43.05
0.18
0%
Illinois
45.75
46.27
0.52
1%
Michigan
40.55
41.12
0.57
1%
New Jersey
43.86
44.65
0.79
2%
New York
43.92
45.26
1.34
3%
Ohio
40.96
41.78
0.82
2%
Texas
40.25
41.52
1.27
3%
Adjustments
In Q3-2008, the percentage of adjustments made to estimates declined from Q3-2007
levels. The dollar amount of betterment taken increased 6% ($6.76) compared to Q3-2007
levels. Average appearance allowances in the 3rd quarter of 2008 were slightly higher than
in Q3-2007.
Adjustment $ and %’s
Date
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Pt$/Change
% Change
% Adjustments Est
4.14
4.53
4.05
4.01
3.39
2.28
-1.73
-43%
% Betterment Est
3.13
3.51
3.22
3.22
2.55
1.47
-1.75
-54%
% Appear Allow Est
0.58
0.57
0.58
0.56
0.57
0.57
0.01
2%
% Prior Damage Est
5.23
4.57
4.83
4.53
4.56
4.74
0.21
5%
Avg. Betterment $
110.8
103.83
114.28
114
116.38
129.59
15.59
14%
Avg. Appear Allow $
171.4
169.64
165.82
168.81
177.99
180.7
11.89
7%
20
Total Loss
Average Vehicle Age in Years
The charts below illustrate the total loss data for both vehicle age and actual cash value of Total loss vehicles
processed through Mitchell servers.
Average Vehicle Age in Years
Vehicles
Q2
2006
Q4
2006
Q2
2007
Q4
2007
Q2
2008
Q4
2008
Convertible
9.42
9.94
9.73
10.23
9.95
10.33
Coupe
9.78
10.13
9.91
10.33
10.17
10.52
Hatchback
10.94
10.91
10.45
10.50
10.09
10.05
Sedan
9.03
9.35
9.10
9.51
9.25
9.68
Wagon
9.62
9.54
9.05
8.93
8.38
8.79
Other Passenger
10.57
10.85
10.99
10.84
10.95
11.02
Pickup
9.72
9.95
9.53
10.04
9.95
10.04
Van
9.38
9.77
9.38
9.85
9.51
9.90
SUV
7.84
8.29
8.01
8.45
8.28
8.57
Other Pickup/
Van/SUV
15.36
14.18
10.08
17.82
18.19
7.14
Average Vehicle Actual Cash Value
Vehicles
Q2
2006
Q4
2006
Q2
2007
Q4
2007
Q2
2008
Q4
2008
Convertible
$9,587.66
$9,905.33
$9,691.24
$9,779.54
$9,637.75
$9,410.57
Coupe
$5,510.85
$5,958.78
$5,939.83
$6,171.01
$6,011.29
$6,030.99
Hatchback
$4,028.65
$4,651.80
$5,059.30
$5,535.71
$5,525.65
$5,770.02
Sedan
$5,605.51
$5,928.03
$5,934.31
$6,164.07
$6,008.57
$6,103.50
Wagon
$6,403.87
$6,886.12
$6,939.32
$7,474.03
$7,390.40
$7,244.34
Other Passenger
$12,097.38
$14,033.72
$14,088.28
$14,966.13
$13,320.42
$16,255.88
Pickup
$8,587.96
$8,896.02
$8,932.94
$8,926.29
$8,923.41
$8,466.64
Van
$5,485.03
$5,694.70
$5,788.77
$5,714.80
$5,666.26
$5,330.96
SUV
$9,450.50
$9,347.94
$9,154.75
$9,293.42
$9,145.80
$8,361.83
Other Pickup/
Van/SUV
$9,730.11
$10,257.01
$15,321.26
$7,502.00
$3,136.13
$15,035.29
WorkCenter™ Total Loss
WorkCenter Total Loss is a state-of-the-art, loss vehicle valuation system designed to: 1) Improve policyholder
satisfaction with the settlement process, 2) Automate Department of Insurance regulation compliance, and 3)
Improve efficiency, reduce settlement time, and manage settlement costs. WorkCenter Total Loss’s valuations are
reliable and easy-to-understand. They’re reliable because they’re based on vehicles recently sold or advertised in the
same area as the vehicle owner. Valuations are easy-to-understand because they are intuitive, and reports include
details on comparable vehicles used in a valuation. WorkCenter Total Loss incorporates a leading-edge analytic
model developed through a partnership with J.D. Power and Associates®—widely recognized and respected for
their expertise and impartiality. You and your policyholders can be confident that valuations are fair and accurate.
™
21
Canadian Feature Article
Mitchell Looks at Estimate
Accuracy and Cycle Time for
Mobile Appraisers
W
By Greg HorN
Vice President of Industry Relations, Mitchell International
In the Q4 2008 edition of Mitchell’s Industry Trends Report, our feature article, “Are
Estimates Finalized at the Vehicle More Accurate?” outlined the recent findings of a Mitchell
study. The findings indicated that U.S. staff appraisals written at the vehicle produced no
fewer supplements than estimates written later in the day when not at the vehicle.
Of course I heard almost immediately from our Canadian customers who wanted to see
a similar study conducted on estimates written by mobile appraisers versus non-mobile
appraisers. I was intrigued because there are several differences in the Canadian
appraising environment versus the U.S. appraising environment. Namely, the types
of solutions, availability and widespread use of Mitchell products made me wonder if
the results could be different. In Canada, claims professionals use many of Mitchell’s
products—both classic and new products—that are fully integrated for ease-of-use with
insurers’ claims systems.
Classic Mitchell products being utilized include Dashboard, (a Canada-specific claims
workflow tool) Instant Price Updates, (a functionality only recently launched in the U.S.)
WorkCenter™ Compliance, (a solution that helps assure that estimates are in compliance
with carrier guidelines before upload) and eClaim Manager™ (a one-folder system with
wireless capabilities that routes, collects and shares claims information electronically).
Smart Dispatch™, (a Web-based assignment and dispatching solution designed to
streamline task scheduling and resources) is new to the Canadian market and is expected
to yield the same positive impact as Mitchell’s classic product offerings—taking the claims
process to the next level.
In Canada, claims
professionals use
many of Mitchell’s
products—both classic
and new products—
that are fully
integrated for easeof-use with insurers’
claims systems.
The Sample
The study examined just under 100,000 repairable estimates, split between mobile
and non-mobile estimates. Estimates were written more than 90 days ago, so that an
appropriate amount of time had elapsed to assure that supplements have been completed
on estimates that required them.
The Findings
The main difference found was the increased overall productivity (including supplementation)
for the mobile appraiser versus the non-mobile appraiser. Interestingly enough, the
percentage of supplements for mobile appraisals was higher, averaging 1.21 supplements
per estimate when an estimate was supplemented, compared to 1.12 supplements per
estimate when there was a supplement for non-mobile appraisers. However, the amount of
the supplement for mobile appraisers was 45 percent lower than the supplement amount of
non-mobile appraisers. When a supplement varies by such a significant amount, I believe it
indicates that the mobile estimate began and ends as a more accurate estimate.
22
Canadian Feature Article (con't.)
Cycle time was also dramatically different as well. Cycle time for mobile estimates, from
the time the estimate began until the estimate was finished and “committed” (meaning any
changes to the body of the estimate after committing would generate a supplement count),
was less than one-third the time it took for a non-mobile estimate to be completed. This
dramatic increase in productivity points to a marked differentiation—mobile appraising has
a higher productivity rate, and the resulting faster estimating equals increased customer
satisfaction.
W
The Conclusion
There is a compelling case to be made for the accuracy and cycle time benefits of mobile
appraising. As our study indicates, although slightly more supplements were generated
from mobile appraisers, they were of a considerably smaller dollar amount. Also, given the
fact that the overall cycle time to generate the final estimate was so much lower than for
non-mobile appraisers, vehicle owners would surely see the benefits of a faster resolution
of their claims.
23
Canadian Collision Summary
At the request of our customers and friends in Canada, we are pleased to provide the following
Canada-specific statistics, observations, and trends. All dollar-figures appearing in this
section are in CDN$. As a point of clarification, these data are the product of upload activities
from Body Shop, Independent Appraisers and Insurance personnel, more accurately
depicting insurance-paid loss activity, rather than consumer direct or retail market pricing.
The initial average gross appraisal value, calculated by combining data from all first and
third party repairable vehicle appraisals uploaded through Mitchell Canadian systems
in Q4-2008 was $3,097, a decrease of $44. However, when we apply the prescribed
development factor, we believe the final gross appraisal value will be $3,208.*
W
Editors Note: All dollar-figures
appearing in this section are in CDN$.
As a point of clarification, these data
are the product of upload activities from
Body Shop, Independent Appraisers and
Insurance personnel, more accurately
depicting insurance-paid loss activity,
rather than consumer direct or retail
market pricing.
Canada—Severity Overall
$14,000
$13,154
$13,558
$12,613
$12,260
$12,000
$12,779
$12,679
$10,000
$8,000
$6,000
$4,000
$2,000
Avg. Unit Age
$3,123
$2,878
$3,141
$2,906
$2,988
$3,097/
3,208
Q2 2006
Q4 2006
Q2 2007
Q4 2007
Q2 2008
Q4 2008
5.68
5.76
5.53
5.55
5.27
5.40
Appraisals
ACV’s
Collision Losses
Mitchell’s Canadian initial average collision gross appraisal for Q4-2008 was $3,153, a
decrease of $79 over Q4-2007. When the development factor is applied, we believe the
average appraisal value will be $3,252 for the last quarter of 2008.*
Canada—Severity Collision
$14,000
$13,597
$13,207
$12,791
$12,595
$12,284
$12,000
$12,660
$10,000
$8,000
$6,000
$4,000
$2,000
Avg. Unit Age
$2,980
$3,239
$3,000
$3,232
$3,002
$3,153/
3,252
Q2 2006
Q4 2006
Q2 2007
Q4 2007
Q2 2008
Q4 2008
5.56
5.63
5.42
5.47
5.19
5.36
Appraisals
ACV’s
24
Canadian Collision Summary (con't.)
For Comprehensive losses in Q4-2008, the initial gross appraisal value was $3,207,
which was a $164 increase over the same period in 2007. The developed value after all
supplements are counted is anticipated to be $3,391.*
Canada—Severity Comprehensive
$14,000
$14,203
$13,470
$12,000
$13,475
$12,967
$13,375
$12,156
$10,000
$8,000
$6,000
$4,000
$2,000
Avg. Unit Age
$2,901
$2,454
$3,291
$3,043
$2,696
$3,207/
3,391
Q2 2006
Q4 2006
Q2 2007
Q4 2007
Q2 2008
Q4 2008
6.15
5.97
5.75
5.69
5.33
5.41
Appraisals
ACV’s
Third Party Property Damage
The Third Party Property Damage initial gross written average appraisal value for
Q4-2008 was $2,788 compared to $2,643 in the same period of 2007. With the appropriate
development factor applied, the anticipated final value is estimated to be $2,925.*
W
About Mitchell in Canada…
For more than 17 years, Mitchell’s
dedicated Canadian operations have
focused specifically and entirely on
the unique needs of collision repairers
and insurers operating in the Canadian
marketplace. Our Canadian team
is known for making itself readily
available, for being flexible in its
approach to improving claims and
repair processes, and for its ‘second
to no one’ commitment to customer
support. Headquartered in Toronto,
with offices across Canada, Mitchell
Canada delivers state-of-the-art, multilingual collision estimating and claims
workflow solutions (including hardware,
networks, training, and more), worldclass service, and localized support.
To learn more about Mitchell Canada
and its solutions and services, contact:
Mike Jerry
Vice President and General Manager–
Mitchell Canada
t: 888.209.4338
f: 416.733.1633
®
Canada—Severity APD
$12,809
$12,000
$12,322
$12,793
$12,518
$11,483
$11,894
$10,000
$8,000
$6,000
$4,000
$2,000
Avg. Unit Age
$2,676
$2,744
$2,431
$2,643
$2,674
$2,788/
2,925
Q2 2006
Q4 2006
Q2 2007
Q4 2007
Q2 2008
Q4 2008
6.16
6.56
6.26
6.10
6.35
6.05
Appraisals
ACV’s
25
W
Supplements
In Q4-2008, 35.53% of original estimates prepared by Canadian Mitchell equipped
estimators during that period were supplemented one or more times. In the same period,
the pure supplement frequency (supplements to estimates) was 69.09%, reflecting a 33%
increase over the same period last year. At $248.31, the average supplement variance was
$114.65 (32%) lower than the same period in 2007.
Supplement %’s
Date
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Pt Change
% Est Supplements
26.2
31.7
38.27
41.9
40.91
35.53
-6.37
% Supplements
31.02
12.62
49.15
51.9
61.29
69.09
Avg Combined Supp Variance
321.95
447.72
344.58
362.96
337
248.31
% Supplement $
11.19
14.34
11.86
11.56
11.28
8.02
% Change
-15%
17.19
33%
-114.65
-32%
-3.54
-31%
Average Appraisal Make-up
This chart compares the average appraisal make up as a percentage of dollars for estimates
written by Canadian Mitchell equipped estimators. These data points reflect an increase in
both labor and paint and materials for the first quarter of 2008.
% Average Appraisal Dollars by Type
Date
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Pt/$ Change
% Change
% Average Part $
44.25
45.97
43.72
44.5
40.53
42.29
-2.21
-5%
% Average Labor $
44.78
43.15
45.05
44.35
47.48
45.83
1.48
3%
% Paint Material $
8.17
8.18
8.53
8.4
9.03
8.91
0.51
6%
Labor Analysis
All data reflects the percentage of labor-type dollars utilized in the construction of Mitchell
appraisals by Canadian estimators. Labor rates rose in all Provinces and Territories, with
Alberta and the Northwest Territories having the biggest increases.
% Average Labor Dollars by Type
Average Body Labor Rates and Changes by Province
Refinish (35.1%)
Remove/Replace (24.8%)
Repair (40.1%)
2007
2008
Pt Change
% Change
ALBERTA, CAN
$57.04
$65.68
$8.64
15%
BRITISH COLUMBIA, CAN
$57.89
$63.57
$5.68
10%
Newfoundland & Labrador, CAN $53.39
$54.71
$1.32
2%
NOVA SCOTIA, CAN
$51.85
$53.09
$1.24
2%
NORTHWEST TERRITORIES, CAN
$67.23
$76.61
$9.38
14%
ONTARIO, CAN
$49.96
$51.4
$1.44
3%
QUEBEC, CAN
$41.75
$43.79
$2.04
5%
YUKON TERRITORY, CAN
$74.44
$78.2
$3.76
5%
26
W
Parts Analysis
As a general observation, recent data show that parts make up 44.9% of the average
value per repairable vehicle appraisal, about 0.63 points more than the average allocation
of labor dollars. In addition, the overall trend now reflects a stabilized level of OEM parts
use, an increasing volume of Aftermarket and Remanufactured parts dollars used by
Mitchell-equipped estimators, and declining LKQ (recycled) parts use.
Editor’s Note: While there isn’t a perfect correlation between the types of parts specified
by estimators and those actually used during the course of repairs, we feel the following
observations to be directionally accurate for both the insurance and auto body repair
industries. This segment illuminates the percentage of dollars allocated to each unique
part-type.
For Parts Types Definitions, see page 18.
Original Equipment Manufacturer (OEM) Parts Use in Dollars
In Q4-2008, the Canadian OEM parts use decreased less than a percentage point
compared to the same period last year.
Aftermarket Parts Use in Dollars
In Q4-2008, Aftermarket parts use rose slightly compared to Q4-2007, but have
consistently remained between 10-11.2% of Canadian parts dollar use.
Remanufactured Parts Use in Dollars
Remanufactured use in Canada has been remarkably stable when comparing Q4-2008
to the same time period in 2007. There is no evidence in the Canadian industry that the
use will increase in the near future.
Like Kind and Quality Parts Use in Dollars
For Used parts, Q4-2008 showed a slight increase in utilization for Canada to 10.75%
of parts dollars.
Canada—OEM
72.8%
74.2%
74.8%
75.3%
75.3%
75.0%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Canada—Aftermarket
11.1%
11.0%
10.6%
10.9%
11.0%
11.2%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Canada—Non-New/Remanufactured
3.5%
3.5%
3.5%
3.2%
3.3%
3.1%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
Canada—LKQ
12.7%
11.3%
11.1%
10.6%
10.3%
10.8%
Q2/06
Q4/06
Q2/07
Q4/07
Q2/08
Q4/08
27
Casualty Statistics
Personal Injury Protection (PIP)
During the 3th quarter of 2008, the 12-month rolling average for countrywide Personal
Injury Protection claims (as calculated from the percentage of such claims reported per 100
insured exposures) was 1.36—a slight decrease likely due to reduced driving. The average
severity was $8,153, reflecting the highest quarterly severity recorded.
Countrywide PIP Frequency
About Mitchell Medical…
2.0%
1.5%
1.44
1.44
1.41
1.38
1.36
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
1.0%
0.5%
0%
Countrywide PIP Severity
$7,632
$7,747
$7,817
$8,017
$8,153
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
$8,000
$7,500
$7,000
$6,500
$6,000
$5,500
$5,000
$4,500
$4,000
Bodily Injury
As of the 3rd quarter of 2008, the 12-month rolling average for countrywide bodily injury
paid claims frequency was .94, down from previous quarters, again likely due to the
reduction in driving because of the year’s high fuel prices. The average paid severity for
bodily injury was again above $11,000 at $11,589, reflecting medical cost inflation.
Countrywide BI Frequency
1.01%
1.00%
0.99%
0.98%
0.97%
0.96%
0.95%
0.94%
0%
0.98
0.97
0.95
0.95
0.94
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Countrywide BI Severity
$11,500
$11,000
$10,500
$10,000
$9,500
$9,000
$8,500
$8,000
$7,500
$7,000
$6,500
$6,000
$10,956
$11,129
$11,288
Editors Note: All information depicted
here is based on the most recent and
available ISS (formerly PCIAA) Fast
Track data, reported one quarter in
arrears.
$11,427
$11,589
Mitchell’s Medical division has
20+ years experience delivering
successful technology, database, and
service solutions for collision-injury
claim handling that are accurate and
efficient. Mitchell Medical is proud to
serve many of the top P&C Insurers
using both enterprise-wide and
standalone implementations.
Mitchell Medical Decision Point®
facilitates 1st and 3rd party claimhandling by automating vital tasks,
thus streamlining claim processing.
Applying carrier-specific business
procedures,
claimant-specific
treatment protocols, and Mitchell’s
industry acumen, the majority of
claims are handled without human
intervention from first notice of loss
through payment. Exceptions are
handled via automated assignment to
the appropriate subject matter expert
(nurse reviewer, special investigator,
experienced adjuster). Decision Point
monitors compliance with federal
and state regulations, and includes
powerful analytic capabilities for
predictive modeling and performance
management.
Mitchell Medical’s extensive customer
service infrastructure provides clients
with training, plus systems, content,
regulatory, and litigation support,
process consulting, and outsource
service options.
To learn more about Mitchell Medical
and its casualty solutions, visit
www.mitchell.com, or contact:
Jeff Pirino
Vice President of Casualty Sales
Mitchell Medical
Jeff.Pirino@mitchell.com
t: 858-368-8381
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
28
About Mitchell
®
Mitchell International, Inc.
9889 Willow Creek Rd. – San Diego, CA 92131 – 858.368.7000
Mitchell International, Inc., founded in 1946 and headquartered in San Diego, California,
is a leading provider of information and workflow solutions to the automotive insurance
and collision repair industries, serving carriers, shops, and other commercial participants in
the physical damage, auto-related and workers’ compensation medical claims processes.
Mitchell facilitates millions of electronic transactions between more than 25,000 business
partners each month to enhance their productivity, profitability, and customer satisfaction.
From the moment policyholders notify their insurance companies of a vehicle claim,
Mitchell’s state-of-the-art solutions go into action throughout the entire claims and repair
cycle. Mitchell provides the information and workflow management expertise insurers and
collision repair shops rely upon to serve their customers. From initial damage appraisal to
helping collision repairers return vehicles to pre-accident condition, from shop management
to salvage, claims review to subrogation, Mitchell is there to ensure every aspect of the
industry has the tools it needs to get the job done.
All Mitchell collision solutions are backed by Mitchell’s industry-leading Parts & Labor
Database—the most accurate and comprehensive source for vehicle information available
anywhere—which also includes specialty lines such as motorcycles, recreational vehicles,
and watercraft. The Mitchell Database stands as a critical point of connectivity between
shops and insurers, an unbiased resource referenced by all industry participants as a basis
for resolving collision claims consistently and accurately.
Mitchell International is a privately-held company, owned primarily by the Aurora Capital
Group. Aurora Capital is a Los Angeles-based investment firm formed in 1991 that acquires
and builds companies in partnership with operating management. The firm currently
manages approximately $2 billion in capital and is committed to investing in companies
with unique, defensible market positions. Aurora is dedicated to generating long-term value
principally through investing the time and resources necessary to enhance the fundamentals
of each of its businesses.
For more information on Mitchell International, visit www.mitchell.com.
For more information on Aurora Capital, please visit its website: www.auroracap.com.
29
Mitchell News Releases Q4-2008
®
Mitchell International Releases New Versions of Business Management Solutions
Suite
ABS™ 8.2 and ABS™ Enterprise 8.2 add functionality that helps collision repair facilities
become more competitive, lean and profitable
San Diego, CA — December 08, 2008 — Mitchell International, Inc., a leading provider
of information, workflow, and performance management solutions to the property and
casualty claims and collision repair industries, today announced the result of its continuous
commitment to collision repair performance excellence—the availability of ABS™ 8.2 and
ABS™ Enterprise 8.2.
ABS 8.2 features new capabilities that enable individual collision repair facilities to operate
more efficiently and reliably while solidifying ABS Enterprise 8.2 as the preeminent
management system for high-performing or multi-location facilities. Both ABS 8.2 and ABS
Enterprise 8.2 include enhanced reporting features, providing users with easy, instant
access to performance details surrounding their business operations. ABS reports can now
apply filters and sort and export data to other applications.
Rod Matthews, owner of Pete’s Auto Body in Owen Sound, Ontario, Canada, and Mitchell
customer for over 15 years is currently using ABS 8.2 and commented on the solution
saying, “The new release is packed with features that all professional collision shops will use
on a daily basis. ABS 8.2 is as necessary to a business as their spray booth.”
Additional ABS capabilities include:
• Improved workflow to boost operational efficiency: ABS 8.2 helps collision repair facilities
support their unique business requirements with new events, logs and business rules.
• Enhanced reporting includes a new linear option that allows customer data to be
exported into other applications—such as Microsoft® Excel®—helping collision repair
facilities to implement marketing campaigns.
Multi-location collision repair facilities with more complex operations, as well as those
customers interested in a solution to enhance their consolidated reporting and oversight
needs will benefit from ABS Enterprise’s new enhancements including:
• Improved White Board usability helps users manage operations more actively: Collision
repair facilities can now make more informed business decisions by easily changing
Production Status and adding more information such as Towing Status and Out Date.
• Enhanced Shop Clock enhancements: Added functionality makes it easier for managers
to reflect more accurate times and improve technician performance.
ABS 8.2 and ABS Enterprise 8.2 are leading business management systems for collision
repair facilities because of their proven ability to increase operational efficiency and gain
invaluable decision-support information along with Mitchell’s superior customer support.
ABS 8.2 and ABS Enterprise 8.2 are both currently available.
AutocheX Premier Achiever Awards Honor “Best of the Best” Collision Repair
Facilities
San Diego, CA — December 04, 2008 — AutocheX, Mitchell International’s voice of the
customer performance management group, hosted the seventh annual Premier Achiever
Awards ceremony on Nov. 6, 2008, to honor collision repair facilities from throughout the
U.S. and Canada for their exceptional achievements in customer service and satisfaction.
The event was held at the Mandalay Bay Convention Center in Las Vegas in conjunction
with the International Autobody Congress and Exposition (NACE).
AutocheX is a leading provider of customer satisfaction measurement and performance
management solutions to the collision repair industry. The Premier Achiever Awards
30
Mitchell News Releases Q4-2008 (con’t.)
recognize collision repair facilities that consistently demonstrate their commitment to
customer service as reflected by their extremely high customer satisfaction scores.
The Class of 2008 Premier Achievers attained scores in the top five percent of facilities
that use the AutocheX service throughout the U.S. and Canada. They include collision
repair facilities of all sizes, from small, family-run businesses to large consolidators, and
represent 32 states across the U.S, as well as British Columbia, Canada. Over 28 percent
of the facilities were repeat winners, having also won the award in 2007.
“We are delighted to recognize the ‘best of the best’ collision repair facilities in North America
with the Premier Achiever Awards,” said Jason Bertellotti, Vice President of Mitchell Repair
Solutions. “Clearly, these facilities go the extra mile for their customers. Not only do their
high satisfaction scores reflect their ongoing commitment to customer care, but their efforts
create loyal customers who will help them drive growth for the long-term through referrals
and repeat business.”
This year, Ohio-based True2Form Collision Repair Centers, Inc. had two of its North
Carolina facilities win the award: the Mooresville and Wilmington North locations. True2Form
President and CEO, Rex Dunn, attended the award ceremony and said, “True2Form is
committed to satisfying 100 percent of our customers. Our team works really hard to meet
this goal, and receiving the Premier Achiever Award helps validate that we’re on the right
track with our customers. We’re very proud of the Mooresville and Wilmington facilities for
achieving this recognition of their outstanding dedication to customer service.”
Premier Achiever Award winners were congratulated at the ceremony by insurance
company representatives and the AutocheX team. On hand to present the award to facilities
participating in their respective repair programs were:
• Randy Hanson, Claim Service Manager for PRO, Allstate Insurance Company
• Rick Lewis, Unit Manager, Immediate Repair Program, Interinsurance Exchange of
the Automobile Club
• Gary Reichenbach, Manager, Claims Quality Engineering, Interinsurance Exchange
of the Automobile Club
• Darcy Gorchynski, Director, Material Damage Services, Insurance Corporation of
British Columbia (ICBC)
• Keith Jones, Manager, Material Damage Services - Policy & Training, ICBC
• Dave Mason, Manager, Material Damage Services - Operations Support, ICBC
• Mike Wilson, Manager, MD Services Business Support, ICBC
• Terry Fortner, Vice President, Material Damage Claims, Nationwide Insurance
• Jim Gadberry, Director of Blue Ribbon Services, Nationwide Insurance
“Every year Allstate looks forward to the Premier Achiever Awards as an opportunity to
recognize and thank our top-performing facilities for their ongoing commitment to providing
an exceptional collision repair experience for their customers,” said Randy Hanson, PRO
Claim Service Manager for Allstate. “Customer satisfaction is our highest priority, and the
AutocheX awards help to reinforce that message to our PRO partner facilities in a very
positive way. We are very proud of all the 2008 recipients.”
Preceding the award ceremony, Jim Lindner, Executive Chairman of Mitchell, presented
AutocheX co-founder Ray Kihara with a Lifetime Achievement Award. “For nearly 20 years,
Ray has worked passionately to promote and support collision repair facilities. It was a
real pleasure to recognize and thank him for his many contributions to the collision repair
industry — he truly is a lifetime Premier Achiever,” said Lindner. In 1989, Kihara founded
AutocheX with Dennis Kiyohara and served as Executive Vice President, responsible for
collision industry sales and support. Through the years he has been a key driver of industry
31
efforts on behalf of collision repair facilities, insurers, and consumers to streamline the
claims adjusting process. He is currently Director of Sales and Marketing for AutocheX.
AutocheX is dedicated to not only providing the most objective and actionable “voice of
the customer” data, but also to advancing the level of customer service in the collision
repair industry. AutocheX and the participating insurance companies present the Premier
Achiever Awards each year as a way of recognizing collision repairers that have proven their
devotion to quality, service, and customer satisfaction.
“The Premier Achiever Awards demonstrate the winners’ success in making customer
satisfaction a primary focus of their business,” concluded Bertellotti. “We want to thank
the winning facilities and the participating insurance companies for making the Premier
Achiever program so successful.”
On hand to congratulate winners at the seventh annual AutocheX Premier Achiever Award
ceremony were, from left to right:
• Jim Gadberry, Director of Blue Ribbon
Services, Nationwide Insurance
• Jim Lindner, Executive Chairman, Mitchell
International
• Jason Bertellotti, Vice President Repair
Solutions, Mitchell International
• Rick Lewis, Unit Manager, Immediate Repair
Program, Interinsurance Exchange of the
Automobile Club
• Terry Fortner, Vice President, Material
Damage Claims, Nationwide Insurance
• Jim Okun, Group Manager, Interinsurance
Exchange of the Automobile Club
• Allan C. Robinson, President, Sterling
Collision Centers, Inc.
• Gary Reichenbach, Manager, Claims Quality
Engineering, Interinsurance Exchange of the
Automobile Club
• Ray Kihara, AutocheX Director of Sales &
Marketing, Mitchell International
• Darcy Gorchynski, Director, Material
Damage Services, Insurance Corporation of
British Columbia (ICBC)
• Mike Wilson, Manager, MD Services
Business Support, ICBC
• Randy Hanson, Claim Service Manager for
PRO, Allstate Insurance Company
• Nicholas Bomarito, Vendor Management
Supervisor, California State Automobile
Association (CSAA)
CCC Information Services and Mitchell International Reaffirm Commitment to Merger;
Intend to Contest FTC’s Opposition
Chicago and San Diego — November 25, 2008 — CCC Information Services Inc., of Chicago,
Ill., and Mitchell International, Inc., of San Diego, Calif., reaffirmed their commitment to the
32
planned merger, and intend to contest the action taken by the Federal Trade Commission.
The companies received notice today regarding the FTC’s intent to oppose the merger.
CCC and Mitchell reiterated their commitment to the value of the proposed merger and the
competitive industry in which they serve.
Githesh Ramamurthy, CEO of CCC Information Services Inc. stated, “While we are
disappointed and disagree with the FTC’s position, we intend to vigorously challenge the
FTC in court.”
Alex Sun, President and CEO of Mitchell International, added, “The driving force behind the
proposed merger is the many benefits and innovations it can deliver to our customers. Our
industry is—and will remain—intensely competitive. This is something that continues to be
one of its defining characteristics.”
As stated in the initial announcement of the proposed merger these benefits include:
• An expanded communication network to deliver greater connectivity between insurers,
repair facilities, and other industry service providers and suppliers;
• Expanded Research & Development resources and a greater ability to enhance current
products and services, deliver new technology-based claims solutions, and provide
faster time-to-market product delivery;
• An expanded sales and service organization, providing broader and better customer
service across North America;
• A larger, more comprehensive data warehouse that will improve the companys ability
to deliver industry insights through benchmarking, data analytics and predictive
modeling;
The companies remain confident that this merger is pro-competitive and ultimately will be
recognized as such.
Despite Challenging Economy, Mitchell Reports Record Sales of ABS™ Autobody
Shop Management Solutions at NACE 2008
Collision repairers continue to adopt Mitchell’s business management solutions, eclipsing
record pace of sales achieved in years past
San Diego, CA — November 19, 2008 — Mitchell International, Inc., a leading provider of
information, workflow, and performance management solutions to the collision claims and
repair industries, today announced record sales of its industry-leading shop management
solutions—ABS™ and ABS™ Enterprise—at this year’s National Autobody Congress
Exposition (NACE). Sales of Mitchell’s business management solutions were up by nearly
20% over the previous year—a testament to the fact that Mitchell’s business management
solutions continue to lead the industry because of their ability to increase operational
efficiency and supply superior decision-support information, as well as Mitchell’s superior
customer support and its 60 years of collision industry expertise.
“We realize that this is a challenging time for the collision repair industry. Our goal at
Mitchell—as it has been for the past 60 years— is to continue to support collision repairers
by providing them with powerful solutions like ABS and ABS Enterprise. Mitchell helps
collision repair facilities get better control over their business operations, which can be
even more important in a difficult or down economy,” said Marc Brungger, Executive Vice
President of Auto Physical Damage Solutions at Mitchell. “We’re proud that record numbers
of repairers continue to choose Mitchell products to out-perform the competition no matter
what the economic environment, and we remain committed to continuing to invest in these
solutions to make them even more powerful. The key for any successful collision repair
facility is to focus its energy on what it can control— its customers, its business operations
and its trading partner relationships.”
33
ABS Enterprise and ABS streamline shop operations and provide repair facilities with
a comprehensive and practical solution for optimizing their business performance by
automating business functions and providing insight into key performance metrics. The
products automate many vital, everyday tasks such as parts-pricing, job costing, scheduling
of repairs, and integrated e-mail and event messaging capabilities. These solutions provide
owners and managers with the information they need to make better informed business
decisions. ABS Enterprise and ABS are the recognized industry leaders and the fastest
growing management systems in the market place today.
Mitchell International Enables eBill Connectivity Through Vast Provider Network
Decision Point® and SmartAdvisor™ Leverage E-Bill Connectivity for Auto and Workers’
Compensation Payers to Access up to 80% of U.S. Healthcare Providers
San Diego and Concord, CA — November 18, 2008 — Mitchell International announced
today the launch of its electronic connectivity to a vast provider network to support eBill
automation for its Decision Point and SmartAdvisor medical bill review customers. Mitchell’s
eBilling and electronic remittance advice/EFT processing solution, AutoExpress™ is powered
through a technology partnership agreement with Jopari Solutions, Inc.
Expanded eBill provider connectivity provides Decision Point and SmartAdvisor customers
with access to up to 80% of U.S. healthcare providers for exchange of electronic medical
transactions and automated processing of X12 837 professional and institutional medical
bills. Potential for customers’ broad acquisition of inbound eBill traffic and outbound
remittance and payment information is made possible through a partnership with Mitchell’s
partner, Jopari Solutions, and Jopari’s strategic relationship with Emdeon, an industry
leader in payer/provider connectivity.
Mitchell’s new provider connectivity via the Jopari/Emdeon relationship enables Mitchell
customers’ access to the single largest provider eBill connectivity network available in
the auto medical and workers compensation market, which is comprised of hundreds of
thousands of providers and hundreds of channel partners.
Tom McCarthy, Executive Vice President of Mitchell International and Founder of Mitchell
Medical, commented that, “An important dimension of our AutoExpress solution is enabling
eBilling compliance and business process improvement for our customers. Automating
medical transactions through AutoExpress allows our clients to achieve compliance with
eBilling requirements and continue to remove cost from the medical bill and payment
processing lifecycle. Mitchell’s comprehensive healthcare provider connectivity provides
Decision Point and SmartAdvisor customers with an easy transition to eBill compliance and
lower costsfrom day one.”
Mr. McCarthy continued, “This valuable service reinforces our leadership in supplying
medical claim processing solutions to the property and casualty industry.
Stated J.R. “Steve” Stevens, Chief Executive Officer of Jopari Solutions: “We are pleased
our transaction processing partnership with Mitchell Medical has added comprehensive
healthcare provider connectivity to further benefit Mitchell customers. Auto and workers’
compensation carriers working with Mitchell can expand their immediate operational savings
as a result of enhanced eBill, ePay and adjuster portal penetration, without the expense of
setting up large scale provider connectivity systems.
FIX Auto Canada Selects Mitchell International as Preferred Management Systems
Vendor
Leading Canadian Collision Repair Network chooses Mitchell ABS™ and ABS™ Enterprise
product suite to streamline operations and improve profitability
San Diego, CA — November 06, 2008 — Mitchell International, Inc., a leading provider of
34
repair industries, today announced that FIX Auto Canada has selected Mitchell’s ABS™
Enterprise and the French version of ABS™ as the preferred body shop management
systems for its collision repair network. The FIX Auto Canada relationship enables FIX Auto
to standardize its repair process using the industry’s leading management solutions.
“FIX Auto realizes the benefits of leveraging technology as a way to increase both operational
efficiency and overall profitability,” says Guy Bessette, President of FIX Auto Canada.
“Additionally, we wanted to provide clear guidance for our shops on the essential tools
needed to run their day to day operations. To that end, we put a number of management
systems through a rigorous evaluation process, which included reviewing the software
capabilities and how the vendors could support our shops success through educational and
support services in both official languages. Mitchell was the clear winner and as a result our
endorsement of Mitchell management systems to our shops.”
Mike Jerry, Vice President and General Manager of Canadian Operations for Mitchell
International, added, “We are excited about having our management systems endorsed
by FIX Auto Canada. Both of our companies understand today’s challenges for the collision
repairer, and that’s why we believe it’s even more important to have a management system
in today’s economic climate as a way to control costs, operate more efficiently, and to help
increase profitability.”
ABS Enterprise and ABS streamline shop operations by automating business functions and
providing insight into key performance metrics. The products automate many vital, everyday
tasks such as parts-pricing, job costing, scheduling of repairs, and integrated e-mail and
event messaging capabilities. These solutions provide owners and managers with the
information they need to make better informed business decisions and ABS Enterprise and
ABS are the recognized industry leaders and the fastest growing management systems in
the market place today.
Mitchell Introduces New Online Collision Repair Portal at NACE 2008
New Mitchell Information Center provides a single online source for comprehensive collision
repair reference information
San Diego, CA — November 03, 2008 — Mitchell International, Inc., a leading provider
of information, workflow, and performance management solutions to the collision claims
and repair industries, will introduce its new online portal—Mitchell Information Center—at
this year’s NACE in Las Vegas. Mitchell Information Center (www.mitchellinformationcenter.
com) is a user-friendly, searchable database of historical vehicle repair reference data
that spans 20 years and leverages Mitchell’s 60 years of collision industry expertise. The
portal provides access to critical repair information that can assist a collision repair facility
in efficiently and profitably restoring vehicles to pre-accident conditions in a safe and timely
fashion.
Mitchell Information Center combines the Company ’s industry-leading vehicle dimensions
data—including a new interactive frame viewer—with procedural and mechanical repair
information such as electrical and restraint systems. The result of this combination is a
comprehensive web-based solution that can help collision repair facilities improve their
bottom line by keeping jobs in-house that are frequently hired out to other vendors.
“With this new searchable and interactive online format, we’re able to enhance the end
user experience and help technicians get to the right information faster,” said Peter Lovasz,
Director of Product Management for Mitchell International. “Mitchell Information Center will
play a critical role in allowing us to deliver the full breadth of Mitchell’s world-class collision
repair reference data and offer our existing Collision Repair Series and Print Publications
customers a compelling upgrade path,” he added.
“Our goal at Mitchell is to provide collision repairers with solutions that give them the vital
35
information they need to repair vehicles safely, correctly and efficiently, which is why we
are so excited to introduce Mitchell Information Center to the collision repair community.
Mitchell has 60 years of collision industry expertise, and the Mitchell Information Center
continues that tradition and leadership,” said Marc Brungger, Executive Vice President
of Auto Physical Damage Solutions for Mitchell International. “In our current economic
climate, collision repairers are under extreme pressure to contain operating costs while
using proper repair techniques that comply with manufacturer repair guidelines. This new
portal helps repairers do exactly that by providing a single access point for the most timely
and comprehensive repair data while eliminating the cost, complexity and inconvenience of
using multiple sources.”
Collision repairers who would like to learn more about Mitchell Information Center are
invited to visit the Mitchell Booth—#N3587—at NACE, which is being held from November
6-8 at the Mandalay Bay Hotel in Las Vegas, NV. Collision repairers can also visit www.
mitchellinformationcenter.com for more information.
PPG Adds Mitchell International as a Preferred Management Systems Vendor
Relationship will provide integration of PPG’s Paint Manager™ software with Mitchell
International’s ABS™ Enterprise product suite
San Diego, CA — October 31, 2008 — PPG Industries, a global supplier of automotive
coatings and services to the automotive industry, today announced the addition of Mitchell’s
ABS™ Enterprise as a preferred body shop management system. The PPG-Mitchell
preferred vendor relationship integrates PPG’s Paint Manager™ software with Mitchell’s
ABS Enterprise body shop management system. This new integration will be introduced at
this year’s NACE.
“PPG realizes the need for its customers to leverage technology as a way to increase
both their operational efficiency and overall profitability,” says Bill Shaw, Director, Business
Development, PPG. “It is vital that our vendors share our commitment to help our collision
repair facilities drive productivity, revenue and profitability—by forming this relationship with
Mitchell to integrate PPG’s Paint Manager with ABS Enterprise, we are able to provide a
way for our customers to better manage and monitor their costs and, in turn, better gauge
their profitability.”
Armin Price, Sr., Director of National Accounts at Mitchell International, added, “We are
excited to be selected as a key strategic technology vendor of PPG. Both of our companies
understand the challenges our joint collision repair customers are going through today,
and we believe that our management solutions, along with the integration of PPG’s Paint
Manager, will help our customers become more efficient in their day-to-day operations,
which will ultimately lead to increased profitability.”
PPG’s Paint Manager provides shops with the ability to make informed decisions on job
costs, material usage, mixing efficiency inventory and much more. Shops can better
manage their paint products as well as employee production. This advanced tool provides
instant access to productivity reports to help increase the profitability of the shop’s paint
operation.
ABS Enterprise helps make collision repairers more efficient by streamlining routine errorprone and manual processes like job-costing, parts management, and scheduling. They
also provide owners and managers with more than 100 detailed productivity and profitability
reports containing the key performance indicators owners and managers need to make
better informed business decisions. ABS and ABS Enterprise are the industry’s leading
business management systems and are the fastest growing in the market place today.
36
Mitchell Unveils Hosted Shop Management Solution at NACE 2008
New ABS™ Enterprise Express Edition delivers core management system capabilities for
single-location collision repair facilities with fewer business requirements
San Diego, CA — October 20, 2008 — Mitchell International, Inc., a leading provider of
repair industries, will showcase ABS™ Enterprise Express Edition at this year’s NACE. ABS
Enterprise Express Edition is a hosted shop management solution that meets the unique
needs of single-location collision repair facilities that don’t require the comprehensive
capabilities of ABS Enterprise.
Mitchell
ABS Enterprise Express
The ABS Enterprise Express Edition is designed to give collision repair facilities the proven
core capabilities of ABS Enterprise—without the need for costly IT investments typically
associated with installing and maintaining a management solution. It is easy-to-use and
quick to implement, helping repair facilities to rapidly realize benefits of an industry-leading
shop management solution.
The ABS Enterprise Express Edition provides key benefits such as enhanced operational
efficiencies, insight into key performance indicators for improved business decision making
and customer satisfaction, job costing, parts management and repair order management.
The solution will include Mitchell’s UltraMate® estimating interface and one additional
interface to any one of the other major estimating systems and QuickBooks® accounting
applications.
“ABS Enterprise Express Edition’s core shop capabilities provide collision repair facilities
with a shop management solution that’s the right fit for their business needs today. Shops
can also choose to add capabilities as their business needs evolve over time, ensuring that
day to day operations become more efficient in an economical way,” said Jason Bertellotti,
Mitchell International’s Vice President of Repair Solutions.
Bertellotti added, “Offering the ABS Enterprise Express Edition affirms our commitment to
the collision repair market—and to providing viable solutions for collision repair facilities of all
sizes. Now smaller scale facilities that may not have prior experience using a management
system will have a practical and affordable way to automate processes and implement best
practices throughout their entire operation—while leveraging the proven capabilities that
ABS Enterprise was founded on.”
37
In 2009, the Mitchell ABS™ Suite of Business Management Systems is represented
in this advertisement appearing in Automotive Body Repair News and BodyShop Business
magazines as the iconic modernization of the classic American muscle car—a big block
under the hood to give collision repair businesses all the business management horsepower
they need to produce a highly competitive product and service and succeed in today’s
collision repair industry.
mitchell
solutions
with muscle
Business Muscle Never
Goes Out of Style.
The Mitchell ABS™ Suite of Business Management Systems
is simply the modernization of the classic American muscle
car—a big block under the hood to give you all the business
management horsepower you need to succeed in today’s
collision repair industry. With three equally powerful
2008 Ford Mustang Shelby GT Coupe
management models—ABS 8, ABS Enterprise Express, and
ABS Enterprise—there’s an ABS that’s perfect for the way you
drive business through your doors and with your industry
partners. Today’s ultra-competitive business environment
demands the power that only comes with ABS.
Business muscle for today’s collision repair enterprises
Get the only solution with muscle—Mitchell ABS. Call:
(866) 655-2544
© 2009 Mitchell International, Inc.
Business Management Systems | Estimating/Workflow/Communications | Collision Repair Information | CSI | Glass
38
Mitchell Brand Advertising at Work (con’t.)
This Mitchell advertisement introduces the Mitchell Information Center™—a single
access point on the Internet that combines the Mitchell industry-leading vehicle dimension
data with OEM mechanical and collision repair information to eliminate the expense and
inconvenience of gathering data from multiple OEM websites and other repair products.
It’s the most comprehensive coverage from the authority on collision repair information.
mitchell
online solutions
with muscle
Introducing the Mitchell Information Center.
Search. Find. Repair. Repeat.
The Mitchell Information Center is the collision repair
industry’s newest powerhouse portal to the most organized
and comprehensive OEM repair information. It features
Mitchell’s industry-leading vehicle dimensions database,
as well as collision repair procedures and a wide range of
mechanical repair topics. You’ll have fast and easy Internet
access to critical repair information needed to efficiently
and profitably restore today’s complex vehicles to their preaccident condition. This fully searchable website leverages
Mitchell’s 60 years of collision industry expertise and OEMrecommended repair information with vehicle coverage that
spans over 20 years—giving you a source you can trust.
Limited-time free 30-day trial available for new users!
Go to the most powerful collision repair database online—the Mitchell Information Center. Call:
(866) 655-2544
© 2009 Mitchell International, Inc.
Business Management Systems | Estimating/Workflow/Communications | Collision Repair Information | CSI | Glass
39
Industry Trends
Report
Q1 2009
The Industry Trends Report is a quarterly
snapshot of the auto physical damage
collision and casualty industries. Just
inside—the economy, industry highlights,
plus illuminating statistics and measures,
and more. Stay informed on ongoing and
emerging trends impacting the industry,
and you, with the Industry Trends Report!
Questions or comments about the Industry
Trends Report may be directed to:
Greg Horn
Editor in Chief,
Vice President of Industry Relations
greg.horn@mitchell.com
For distribution and circulation questions,
or requests for back issues, please contact:
Regina Merkey,
Managing Editor,
Marketing Communications Specialist
Distribution and Circulation
(858) 368-7790
e-mail: regina.merkey@mitchell.com
Original Cover Photography
Jennifer Therieau,
Senior Graphic Designer,
Mitchell International
Layout and Design
Larry Barnett,
Creative Director, Mitchell International
®
©2009 Mitchell International, Inc. All rights reserved.

Mitchell Industry Trends Report - Washington Metropolitan Auto

Transcription

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