By Geoff Crane



The collision repair market is being pummeled by the convergent events of OE bankruptcies, additional plant closings, the loss of thousands more dealerships and now the closure of several parts distribution centers. The already fragile parts supply chain will almost certainly be under enormous pressures when you consider the disruption to part availability and added logistics of transferring and delivering parts from fewer shipping locations.

Already we are seeing reports that the availability of parts is becoming a big problem and parts that in the past took 1-2 days for delivery some are now taking 3-4 days. This significantly increases repair cycle times resulting in costly delays and increased repair costs; particularly rental car costs.

The articles below from major industry sources underpin the reality of the parts availability issue, the serious impacts of delays in part delivery in terms of timely collision repair and increased costs. The need to establish an Alternative Parts Usage Program to navigate through these tough times to ensure part availability and timely repairs has never been greater.

Diamond Standard Brand Alternative Safety parts ARE NOT effected by the North American Auto Industry woes and backed by 5 factories with a manufacturing stream and part availability that are both secure and steady. Importantly, Diamond Standard Alternative Safety parts are available nationwide within 24-48 hours backed by our distribution assurance of delivering the correct ordered part. At the current time Diamond Standard parts are the exclusive safety parts available from LKQ-Keystone through the AQRP program and distribution is available through their 300+ locations.

Beyond the Diamond Standard assurance of part availability, Diamond Standard parts are true Alternative Safety parts to OEM which are precision engineered matching fit, form, function and performance for less. We are proud of our reputation for excellence in providing parts that meet the standard which came on the original vehicle and have been proven to be functionally equivalent to the original part in comparative crashworthiness testing as validated by industry crashworthiness experts from NHTSA and The Volpe Corporation.

This uncompromised quality in part development using OE style development and manufacturing processes, validated crashworthiness performance matching, the ability to supply the marketplace within 24-48 hours and the price assurance of costing less provides a most compelling and persuasive argument for considering and adopting Alternative Parts Usage within you business.




Publish Date: June 2, 2009
Source: Collision Week
Full Article Content

GM Plans to Close Three Parts Distribution Centers

As parts of its plan to reorganize the company, General Motors on Monday announced its plans to close 14 manufacturing facilities and three parts distribution centers.

The manufacturing plan reduces GM's total number of assembly, powertrain and stamping facilities in the U.S. from 47 in 2008 to 34 by the end of 2010 and 33 by 2012.

Under the plan, the New GM hopes to achieve full capacity utilization of its assembly operations in 2011, two years ahead of what was scheduled in its Feb. 17 viability plan submission. This will result in lower fixed costs per vehicle sold, and lower and more efficient capital investment.

GM's Service and Parts Operations (SPO) announced that it will cease operations at three Parts Distribution Centers in Boston; Columbus, Ohio; and Jacksonville, Florida by Dec. 31, 2009.

"As GM strengthens its aftersales business, we're aggressively pursuing strategies that allow us to continue fast parts delivery to our dealers and distributors, and improve our warehouse capacity utilization," said Kevin W. Williams, GMNA Vice President and General Manager, Service and Parts Operations.



Publish Date: May 25, 2009
Source: Crash Network
Full Article Content….

SHOP Letter Addresses Parts Issues

John Arnold of Arnold's Body Shop in Davenport, Iowa, has sent a letter to more than a dozen insurance companies explaining how the shop is responding to parts issues related to GM and Chrysler's financial woes. Arnold says because of changes at its primary parts vendor, the shop's parts discount and return allowance have been cut; many parts it used to receive in 1-2 days are now taking 3-4 (or are on indefinite back-order); and the shop is now expected to pay for more parts upfront. Because of this, he wrote, the 23-employee shop will be doing "extensive tear-down" of tow-in vehicles prior to damage reporting; will be scheduling drivable vehicles based on anticipated parts delivery; may be making more temporary repairs to make a drivable vehicle safe until parts arrive; and may be using more used and non-OEM parts. He said insurers should expect to pay for more parts upfront, and for rental costs to increase. "We've been around long enough to remember what World War II was like as far as parts availability," Arnold, a second-generation shop owner, said. "I don't think it will be as significant as it was then, but my letter was to notify the people we deal with what's going on and get their expectations set." He said the response he has received so far from insurers has been positive. "If we can help more shops and insurance companies understand what's going on, it's going to make it a lot easier for our joint customers," Arnold said.



Publish Date: February 3, 2009
Source: bodyshopbusiness.com
Article Excerpts

Repairers Say Detroit Three’s Troubles Could Affect Parts Pricing, Availability

The closing of hundreds of dealerships across the country and cutbacks at those that remain open have affected the parts supply.

by Hannah Schiffman, managing editor, BodyShop Business
With record losses, restructuring in progress, government bailouts and hundreds of dealerships closing across the United States, the Detroit Three automakers - Ford, Chrysler and GM - are far from in the black these days, and it's having a trickle-down effect on everyone connected to them, including collision repairers. Repairers Jeanne Silver and Neal Cummings weighed in on how the Detroit Three's troubles could affect the collision repair industry, and both said the availability and pricing of parts is likely to change.

But the closing of hundreds of dealerships across the country and cutbacks at those that remain open have affected the parts supply. At a recent gathering of the National Automobile Dealers Association (NADA), Ford reported that around 300 of its dealers shut down last year; GM had 401 dealers close or consolidate in 2008; and Chrysler had 287 dealers close last year. Auditing firm Grant Thornton LLP estimates that about 2,500 U.S. auto dealers may close in 2009.

Cummings, a facility manager of Church Brothers Collision in Avon, Ind., said that unlike other parts of the country, very few dealers have closed in his area, and none of the dealers that closed were major parts suppliers. However, those that are still in business are cutting back on staff, stock and deliveries, delaying repairs. On top of that, a nearby GM plant recently shut down for 10 days, backing up parts orders even more.

“The availability of parts is already a big problem,” Cummings said. “What used to be an overnight order is now taking two or three days to get in. With GM and Chrysler, it's like they've almost added a day or two to every order, and that may be due to the fact that a lot of our dealers are running out of money and not stocking parts. Also, I know that the GM Cincinnati plant was off for 10 days, and they're talking about doing that again. My parts supplier said it would take him two months to catch up from that." This article was originally published on bodyshopbusiness.com.

By Geoff Crane



The North American Auto Industry has entered what could well be described as a “Perfect” Storm of record losses, bankruptcies, dealership closures, and extended plant closings. The collision repair market should be closely monitoring the marketplace to measure the affects on parts availability, price stability and establishing Alternative parts usage programs to ensure part availability and repairs can be made without delay. As the deteriorating market conditions are already driving increased Alternative part usage be cognizant, especially with regard to safety parts, that the safety part represented as a replacement for the OEM part is a true alternative and not an aftermarket part from some manufacturer’s who will compromise and substitute using non-OE material and forming processes. This yields a part which fails to meet either the function and performance standard which came on the vehicle, the assurance of Diamond Standard Parts performance and/or Federal standards of crashworthiness. Use of these substandard performing safety parts will not properly restore the collision management system’s ability to withstand damage, increasing damage and total losses and can risk occupant safety as proven in extensive crashworthiness testing by an industry leading independent Research facility with results validated by 3rd party crashworthiness experts from NHTSA and The Volpe Corporation.

Importantly, Diamond Standard Brand Alternative Safety parts ARE NOT effected by the North American Auto Industry woes and backed by 5 factories/assembly plants with a manufacturing stream and part availability that are both secure and steady. Having anticipated increased Alternative parts usage and even new supply chain model relationships, Diamond Standard has invested in material, inventory and capacity to meet the needs of the collision repair marketplace now and going forward.

We believe there is systemic risk with this bankruptcy, plant closings and loss of thousands of dealerships when you consider the impact of the precipitous drop in new vehicle volume and tight supply for OE material that a number of Tier II and aftermarket part manufacturers could fail. The domino effect in fact could be substantial beyond those failures and that is price of parts. According to Kimberly Rodriguez, of turnaround advisory firm Grant Thornton, she believes that automakers not surviving on federal loans have been subsidizing their ailing suppliers for months in an effort to keep parts flowing to factories. “You are going to have to pay a lot more to ensure parts if they’re only operating at 20% capacity," she said.

Beyond the Diamond Standard assurance of a secure and steady supply of parts which are true alternative safety part to OEM we provide the assurance of OEM fit, form, function and performance for less. We are proud of our reputation for excellence regarding precision engineered safety parts, uncompromised quality and the ability to supply the market for less as we all weather these most difficult times.

By Geoff Crane

There is a very unique perception that a part standard is some magical regulation formulated by wise men in castles atop foreboding mountains, who see things none of us can and govern by threat of doom and hell. And we listen to them because they lead and feed us and we don't want to be unfed or unled.

For auto parts, the OE part is the STANDARD. “What?”….Let me say it again, “The OE part is the STANDARD”.

The OE part has variance from production line to service parts but always has a minimum for thickness and material type and strength. The production method is unique to a particular part but broad to a parts grouping or family.

Substitution of lower strength material or production shortcuts will and does create a substandard part.

"Words are words. Performance is reality." John Calipari, University of Memphis Head Basketball Coach

Geoff Crane and Mike O’Neal met with Mr. Sramcik @ the ABRN booth on the NACE floor November 6th, 2008 to discuss their great concern for increasing total loss and compromised vehicle safety due to use of substandard Offshore Aftermarket safety parts which have demonstrated in dynamic and destructive testing to fail to meet the crashworthiness and ability to prevent damage under FMVSS 208. We believe Diamond Standard Parts help reduce total loss while providing a safe alternative to OEM parts. We advocate the use of Diamond Standard or OEM parts (bumpers, reinforcements, absorbers) as the best way to ensure the optimum results in the areas of safety and damageability. The following blog statement was posted by Mr. Sramcik November 7, 2008.

To contact Geoff Crane directly please call 901-398-5759 M-F 8:00AM to 4:30PM CST geoff@diamondstandardparts.com

Full Text of Blog Post

NACE day 2: A Solution for Totals

For the past three years, I've read volumes about the impact of totals on the collision repair industry. It's an issue that hurts shops, insurers and consumers, so you'd think someone might have a solution. Today, finally, I heard one possible solution. I spoke with Geoffrey Crane of Diamond Standard Parts and Michael O'Neal of Reflexxion Automotive Products. O'Neal pointed to two of the factors leading to the rising number of totals: The high cost of OEM parts and the impact of substandard aftermarket parts. O'Neal points to a GM study that showed the use of substandard parts results in six to eight times the expected damage in any followup crashes. In short, poor parts means more totals. Their solution - provide the industry with cheaper alternative parts that are the equal to OEM parts in safety and protection (function!). These cheaper parts make repairs less expensive and protect a vehicle in crashes, also cutting repair costs. So, they attack totals on two different fronts. Crane and O'Neal are working hard to bring such products to market. I encourage you to speak to both of them.

By Geoff Crane

Diamond Standard Parts in association with MGA Research Corporation has developed a test to compare performance of the 3 types of parts:

• OEM
• Diamond Standard
• Offshore

Using OE as a base standard, steel rebar and energy absorber combinations will be tested equal to, stronger than and weaker than OE and measure calculations for air bag system deployments.



I expect we will learn a lot from these tests and what various parts do or do not do regarding passenger safety.

Our other dynamic IIHS protocol tests, quasi-static pole tests, and FMVSS 302 tests show a woeful comparison of offshore parts ability to prevent damage and in the case of energy absorbers also being flammable. “We believe these parts are in violation of most state laws regarding the use of aftermarket parts for like kind parts that must meet the fit, function, quality and performance of the original part which came on your vehicle and should be banned from use on American roads”.

Results will be posted on this website.

by Geoff Crane



In this era of high energy, steel and parts pricing Diamond Standard Parts is committed to meet the need of the consumer, shop and insurance industry providing a true alternative part to OEM in fit, form, function and performance for less.

Beyond the significant savings in part cost vs OEM, Diamond Standard Brand full assembly step bumpers represent an average savings to the insurer of $200-$300 in labor based on installation comparisons and local labor rates. Full assembly means it is no longer necessary to order all the individual parts required with OEM stepbumpers to create the assembly. Diamond Standard Brand has done this for you.

Depending on the application chosen Diamond Standard Brand stepbumpers full assembly models include the face bar, hitch pull bar, top and face pads, mounting brackets, support braces and connecting parts, license lamps and full bolt assembly packets necessary for a full replacement. Delivered as a full assembly ready to mount will reduce R&R labor time frames.

Importantly, our commitment to the industry to help manage costs is accomplished without sacrificing safety or future damageability as Diamond Standard Brand full assembly step bumpers are tested by MGA Research Corporation to the VESC Protocol V-5 Standard for towability safety.

152 Diamond Standard Brand full assembly stepbumper applications are offered representing an 80% coverage of the marketplace with availability nationwide within 24-48 hours through quality distributors nationwide.

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