Caliber Collision Settles Fraud Suit
AAIA Seeks Industry Volunteers

CALIBER COLLISION SETTLES FRAUD SUIT

Autobody repair chain Caliber Collision has agreed to pay $5.8 million in fines to settle a consumer fraud lawsuit as well as suspend operations for up to a week at 19 of its locations and revisit repairs on customers' vehicles.

The lawsuit against Caliber was filed by California Attorney General Bill Lockyer and the Fresno District Attorney's office in Orange County Superior Court in December. The suit claimed that Caliber employees told customers they needed parts and service that were not necessary, performed "substandard work," and charged customers for work that had not been authorized.

Caliber Collision CEO Matthew Ohrnstein said in response to the suit that the state was holding the company to an unreasonable standard and characterizing minor violations as major problems with the repair chain.

"We are trying to run a business," said Ohrnstein, "and we have the Bureau that's trying to put us out of business."

California officials said they investigated Caliber after consumer complaints, looking at vehicles after they had been repaired by Caliber employees to see if the work requested had been performed. The results of the investigation led to the lawsuit.

Under the terms of the settlement, Caliber will pay $3.3 million in civil penalties, $2 million to cover the state's expenses for the investigation, and $500,000 in fines to the Bureau of Automotive Repair.

As part of the penalty, Caliber Collision also agreed to suspend operations between one to five days at 19 of its facilities.

In the investigation, state officials said they found approximately 100 customers who they believe were defrauded by Caliber. Under the terms of the settlement, these customers either will have their cars properly fixed by Caliber or Caliber will pay for a third party to fix their vehicles.

Caliber also agreed to offer free inspections of their work to the 56,000 customers who had their automobiles serviced at a Caliber facility between August 1, 2002 and July 31, 2004. If any of the work originally done is found to be below standard, Caliber agreed to fix the vehicles free of charge.

"Caliber is pleased to put this matter behind the company," said Caliber officials in a statement following the settlement.

Caliber operates 38 repair facilities across the state of California.

AAIA SEEKS INDUSTRY VOLUNTEERS

The Automotive Aftermarket Industry Association (AAIA) is seeking volunteers to serve on its 2005 committees.

The committees meet three times a year "to provide direction and develop plans for the association."

The standing committees are:

Category Management — The committee works to bring aftermarket manufacturers, retailers and distributors together with the mutual trust necessary to share information, and to improve business operations and customer service.

Education — The committee strives to enhance the business potential and competitive advantage of aftermarket professionals through its support of automotive aftermarket educational events and programs.

Government Affairs — The committee works with association staff to protect and enhance the business of the vehicle aftermarket in the United States and abroad.

Market Research — The committee, together with the association's staff, works to identify major shifts in aftermarket industry trends and assesses the impact on current and future industry business practices.

Marketing & Member Relations — The committee works with communications staff to identify and respond to issues impacting membership, to enhance internal and external communications, and review and suggest strategies to market and promote the association.

Next Generation Club — NGC provides networking and mentoring opportunities for new individuals to the automotive aftermarket. Through its events and Web site, NGC can provide its members valuable career-building connections and educational forums to assist in building an exciting and challenging career in the automotive aftermarket.

Show — The committee reviews the content and presentation of AAIA events during the Automotive Aftermarket Products Expo (AAPEX) and Automotive Aftermarket Industry Week (AAIW) in Las Vegas.

Technology Standards & Solutions — The committee develops computer standards and best business practices in the area of electronic commerce and data exchange.

The AAIA says "If your job responsibility coincides with one of the AAIA committees and you are interested in becoming more involved in the association by joining a committee, please let us know in writing."

To apply to participate on an AAIA committee so please submit requests (including a biography) by Oct. 15 to David Caracci, Chairman, c/o Dedra Lancaster, 4600 East-West Hwy. Suite 300, Bethesda, MD 20814. You may also fax your request to 301-654-3299 or e-mail dedra.lancaster@aftermarket.org.

Originally published in the October 2004 issue of Automotive Booster Magazine.
Copyright 2004 by KAL Publications Inc.