CARSTAR calls for nationwide recall system for aftermarket parts

"We're entering an era of objective, performance-based competition – and we welcome that," says Chairman and CEO Dick Cross.

As insurers seek enhanced efficiency throughout the repair process and motorists look to social networking sites for recommendations from online friends, "the stores that perform at the highest level are going to get the work," notes Dan Bailey, president and COO.

"I don't care if Betty Crocker makes it if it's of like, kind and quality," says Bailey, lamenting a lack of overall accountability regarding faulty aftermarket components. "There's no recall process to take them out of the marketplace. We track them to try to get them out of the marketplace with some success, but not as much as I'd like."

According to Cross, CARSTAR's management strategy of individual ownership coupled with effective business plans is especially well-suited for body shops eager to improve their operations amid a tough economy. An owner is likely to feel that "I need some help to get through this thing," he observes: "I don't want to be the last independent hamburger stand in town."

Cross emphasizes that "nobody runs a store like the owner; the owner has skin in the game. That's what I like about our model, and insurers are liking it too."

Moving forward over the next 18 to 24 months, CARSTAR owners will be showing an "openness to changing their methods" as new initiatives are implemented.

In addition to pursuing a pattern of "consistency and the look and feel of our stores," the company is embarking upon a system-wide "IT Solution" designed to compile factual information on cycle times and related performance factors.

"We've got to have data on every car, every day, from every store," says Bailey. Being able to objectively prove an operation's effectiveness is a boon to both marketing and working with insurance carriers. "We're going to improve the performance and we're going to improve our stores. It's going to give us a huge competitive advantage."

"Going green" is another ongoing effort among the 365 U.S. and Canadian CARSTAR locations. Thirty-five outlets are already using waterborne paints with more on the way, although some conversions have been slowed by the recession.

"The first step in going green is switching to the water-based paint," Cross explains, adding that energy-saving lighting, recycling programs and other environmentally friendly alterations will follow.

"It's a whole package," says Cross. "We are moving that way – we think it is the right thing to do." Company executives have compiled nearly 100 "green solutions" that can be applied to a body shop. "There have been tremendous improvements in repair technology, new methods for decreasing energy use and better ways to reduce waste that, collectively, help the collision centers deliver a more 'green' car repair," Bailey points out. CARSTAR's Certified Green program will help deliver a projected annual savings of $5,300 to each location along with a yearly "eco savings" of 26.7 percent, which reflects lower pollution levels and a contribution toward reducing global greenhouse gases. Certified Green stores also qualify for tax credits, utility service rebates, government grants and other plusses such as reduced insurance premiums, workers compensation discounts and compliance concessions.

"Going green has definitely delivered a big benefit to our business," says Chip Scuderi of Scuderi Auto Body CARSTAR in Rockville, Md. "We converted to waterborne paint two years ago and have continued to make improvements in our lighting, our waste management and our recycling," he reports. "We've seen a great reaction from customers, who are happy to know that their cars are being repaired in an environmentally friendly way," Scuderi adds. "And the insurance companies have been very receptive to the changes." For more information, visit www.carstar.com.