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Ford and Toyota are collaborating as equal partners to accelerate consumer availability of a new advanced hybrid system for light trucks and SUV.
Ford and Toyota have signed a memorandum of understanding (MOU) on the product development collaboration, with the formal agreement expected by next year.
Both companies have been working independently on their own future-generation rear-wheel drive hybrid systems. The two now have committed to collaborate as equal partners on a new hybrid system for light trucks and SUVs. This new hybrid powertrain will bring the full hybrid experience of greater fuel efficiency to a new group of truck and SUV customers without compromising the capability they require in their vehicles. Ford and Toyota believe that their collaboration will allow them to bring these hybrid technologies to customers sooner and more affordably than either company could have accomplished alone.
“This agreement brings together the capability of two global leaders in hybrid vehicles and hybrid technology to develop a better solution more quickly and affordably for our customers,” said Derrick Kuzak, Ford group vice president, Global Product Development. “Ford achieved a breakthrough with the Ford Fusion Hybrid, and we intend to do this again for a new group of truck and SUV buyers – customers we know very well.”
Takeshi Uchiyamada, Toyota executive vice president, Research & Development, said: “In 1997, we launched the first-generation Prius, the world’s first mass-produced gasoline-electric hybrid. Since then, we have sold about 3.3 million hybrid vehicles. We expect to create exciting technologies that benefit society with Ford – and we can do so through the experience the two companies have in hybrid technology.”
The two companies also agreed to work together on enablers to complement each company’s existing telematics platform standards, helping bring more Internet-based services and useful information to consumers globally.
Under the MOU agreement, the two companies will bring the best of their independently developed hybrid powertrain technology and knowledge to a new co-developed hybrid system, which will be used in rear-wheel-drive light trucks arriving later this decade. Specifically, Ford and Toyota will:
Jointly develop as equal partners a new rear-wheel drive hybrid system and component technology for light trucks and SUVs
Independently integrate the new hybrid system in their future vehicles separately
For years, both Ford and Toyota have been working independently on similar new rear-wheel-drive hybrid systems aimed at delivering higher fuel economy in light trucks and SUVs. When the two companies began discussing this potential collaboration, they discovered how quickly they were able to find common ground.
“By working together, we will be able to serve our customers with the very best affordable, advanced powertrains, delivering even better fuel economy,” said Ford President and CEO Alan Mulally. “This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability.”
Don’t miss the September GCIA meeting. GRC-Pirk Management will present a first-of-its kind “Green Guides” workshop for owners and managers in the automotive service and collision repair business.
The workshop describes why greenwashing seems to be the new craze and why some shops find Green hype to be a convenient, yet dangerous advertising tool. And, why many collision repair shops are so anxious to create positive public opinion as an environmentally-friendly business that they are willing to grasp at any option. Read more about the workshop – click here.
Mark your calendar today. Don’t miss this opportunity to get educated about how to successfully become a “Green” shop.
Thursday, September 22nd. Start at 6:30 pm at MAADA Headquarters. Click here for location and directions. Please RSVP to howard@gcia.org with number of attendees so we may better plan for food and beverages.
DETROIT – The 100-millionth Chevy Small Block engine will be produced in 2011, commemorating a defining chapter in Chevrolet’s 100-year history. Introduced in 1955, the “Chevy V-8” transformed the brand, and fueled American’s love of performance that continues today.
“The introduction of the Small Block changed everything,” said Jim Campbell, vice president, GM Performance Vehicles and Motorsports. “The Small Block was an instant success because it offered customers high performance and an affordable price, in a compact design that was very easy to modify. The Small Block also started a wave of innovation – and escalating performance – that transformed the cars Americans drove on the street and the track.”
From 1929 and 1955, Chevrolet only offered six-cylinder engines. To address the burgeoning performance market, chief engineer Ed Cole set out to design a Chevrolet V-8 that was powerful, lightweight and affordable.
His solution was elegantly simple: a compact, efficient 90-degree V-8 engine, featuring overhead valves, pushrod valvetrain, and 4.4-inch on-center bore spacing. The Chevrolet Big Block follows the same formula, with the exception of a wider 4.8 inch bore spacing.
When it debuted, the Small Block delivered 195 horsepower with an optional four-barrel carburetor, and outperformed most anything then on the market. But that was just the beginning. New technologies rapidly increased horsepower. Just two years after the Small Block was introduced, the addition of fuel injection increased output to 283 horsepower – or one horsepower for every cubic inch of the 283 cid engine. By 1970, the Chevy V-8 family grew to include a staggering 450 horsepower, 454-cid Big Block.
“The performance of the Small Block transformed Chevrolet,” said Campbell. “The Small Block made Chevrolet the weapon of choice for grassroots racers on the drag-racing and sports-car tracks across America. It also powered Chevrolet’s factory racing programs, leading to wins in stock car, endurance, and Trans Am series. Chevrolet’s racing experience in turn led to more potent production cars, creating legendary names like Corvette, Camaro, Impala, and Chevelle.”
The combination of compact dimensions, impressive power and available aftermarket parts made the Chevy V-8 the most popular crate engine in the industry. For example, Tammy Ray never considered anything but a Chevy Small Block when building “Gold Digger,” her 1933 Ford Phaeton hot rod that won the 2010 Ridler Award:
“My builder will say you can get more horsepower out of a Chevy than a Ford,” she said. “For me, the decision was based solely on appearance. The Chevy V-8 is much cleaner, more compact, and with so many parts available, I could customize every part of engine – right down to the gold nuggets inlaid on valve covers.”
Today, hot rodders can select from a wide range of new Chevrolet V-8 crate engines from General Motors Performance Parts. For example, the classic 350 cid Small Block, with 290 horsepower, delivers affordable power and easy modification, making it ideal starting point for many project cars. The earth-shaking, 572-cid ZZ572R Big Block delivers 720 horsepower and 685 pound-feet of torque make it ideal for drag racing.
The newest addition to the GMPP line is the E-ROD engine family, the first crate engine in the industry to meet California emissions requirements. The E-ROD engine package includes everything customers need to get modern performance, emissions and fuel economy out of their hot rods, including: GMPP engine wiring harness and engine control module; exhaust manifolds, catalytic converters, oxygen and mass-airflow sensors; and even a fuel-tank evaporative emissions canister.
“More people do more things with a Small Block than any other engine, and probably more than all other engine platforms combined,” said Campbell. “There’s a Small Block to fit almost any hot rodder’s needs, whether they are building a gold-plated hot rod, a 1,000-horsepower dragster, or an emissions-compliant project car.”
The Continued Evolution of the Small Block
Today, Chevrolet sells more four-cylinder engines than V-8s. But, descendents of the original Chevy small block still power Chevrolet’s most-capable production and racing vehicles. As per the original, the newer V-8s are physically small and light – and extremely efficient at turning fuel into horsepower.
“Without question, the current Chevrolet V-8s are lineal descendants of the 1955 small block,” said Sam Winegarden, GM executive director for Global Engine Engineering. “They retain the 90-degree V-configured eight-cylinder layout, overhead valve placement and characteristic pushrod valve train. Where they differ are the modern technologies that would have sounded like science fiction 50 years ago, such as all-aluminum blocks, titanium connecting rods, Active Fuel Management, and variable valve timing.”
On the track, the Small Block has made Chevrolet the most-winning name in NASCAR history, and it powered the Corvette Racing team to seven class wins at Le Mans between 2001 and 2011.
On the street, the modern Small Block powers Chevrolet’s full-size trucks, such as Silverado and Suburban, as well as performance cars including the Camaro and Corvette. These modern engines deliver levels of power, durability, and efficiency that were inconceivable 50 years ago. For example, the 6.2L Small Block in 2012 Corvette delivers 436 horsepower, up to 26 miles per gallon, and is backed by General Motors’ five-year/100,000-mile powertrain warranty.
“Constant innovation and evolution have made the Small Block relevant for more than 50 years,” said Winegarden. “We are actively working on the fifth generation of the Small Block, which we believe will be the best V-8 engines ever made. By adding new technologies, such as direct injection, we will continue to improve the performance, durability, and efficiency of the iconic Chevy V-8.”
About Chevrolet
In the aftermath following the tornados that struck parts of the southern United States earlier this spring, Toyota’s Japan employees asked how they could reciprocate the gesture of giving to those in need.
Today, Toyota and its Japan employees announced a $330,000 donation to the tornado relief efforts to be evenly distributed between the disaster relief programs in Alabama and Mississippi.
Commenting on the new donation, Steve St. Angelo, executive vice president of Toyota Motor Engineering & Manufacturing North America, Inc., said, “We are grateful to our colleagues in Japan for their generosity to the tornado relief efforts particularly during their own difficult time following the March 11 earthquake and tsunami. Many of our Japanese colleagues and their families have worked and lived in parts of the U.S. where the tornados struck and many more regularly work with affected manufacturing plants, suppliers and dealerships in the region. They wanted to help and their donation demonstrates the true human spirit of reaching out to those in need. We deeply appreciate their thoughtfulness.”
Toyota and its North American employees in May donated $1 million dollars to the American Red Cross for tornado relief efforts in all affected states and regions across the country.
Nissan Americas today confirmed that, starting in early 2013, it will produce the electric motor for the Nissan LEAF – the world’s first all-electric, zero-emission vehicle designed for the mass market – at its Decherd, Tenn., powertrain assembly plant. Preparation of the plant for electric motor production, facilitated by U.S. Department of Energy Advanced Technology Vehicles Manufacturing Incentive Program loan funds, will include addition of a new assembly line and will create up to 90 new jobs. When the new assembly line is completed, the plant will have the capacity to produce up to 150,000 electric motors annually for Nissan LEAFs, which will be built at the company’s assembly plant in Smyrna, Tenn.
"Nissan's Tennessee operations are paving the way to a zero-emission future for everyone,” said Bill Krueger, vice chairman of Nissan Americas. “By delivering motors for the first mass-produced electric vehicles manufactured in the United States, our Decherd plant will play a vital role in making zero-emission mobility a reality for American consumers.”
The work to support the electric motor assembly line represents the fifth addition to Nissan’s Decherd operations, which began production in 1997. The new assembly line will be located within the existing facility using 100,000 sq.-ft. of available floor space, and will feature highly automated, state-of-the-art equipment including wire winding machines, magnetization and magnet insertion equipment, varnishing and hot press equipment and test equipment. Today, the 1.2 million sq.-ft. Decherd plant produces engines and components for Nissan vehicles built in North America, and also houses engine casting and forging operations. The plant currently has the capacity to produce 950,000 engines, 1.1 million crankshaft forgings and 192,000 cylinder-block castings annually.
Nissan will produce the Nissan LEAF and the batteries that power it at its Smyrna manufacturing complex. The advanced, lithium-ion battery plant is on track to be operational late next year at approximately the same time LEAF production is targeted to begin in Smyrna
Chevrolet confirmed today it will add a diesel variant to the Cruze lineup in North America in calendar year 2013. Diesel versions of the Cruze are currently being sold in Europe. Additional details on the Cruze diesel for North American markets will be released at a later date.
The diesel will bolster the already fuel-efficient Cruze lineup. Cruze Eco with a standard six-speed manual transmission, is the most fuel-efficient gas-powered/non-hybrid vehicle in America, with an EPA-rated 42 mpg on the highway.
Cruze recorded a total of 24,896 sales in the United States in June, the fifth consecutive month sales have exceeded 20,000. The success of the Cruze has increased Chevrolet’s total share of the compact-car segment from 9.5 percent a year ago to 11.9 percent for the first five months of 2011, even as the segment size grew 19 percent.
Founded in Detroit in 1911, Chevrolet celebrates its centennial as a global automotive brand with annual sales of about 4.25 million vehicles in more than 120 countries. Chevrolet provides consumers with fuel-efficient, safe and reliable vehicles that deliver high quality, expressive design, spirited performance and value. The Chevrolet portfolio includes iconic performance cars such as Corvette and Camaro; dependable, long-lasting pickups and SUVs such as Silverado and Suburban; and award-winning passenger cars and crossovers such as Spark, Cruze, Malibu, Equinox and Traverse. Chevrolet also offers “gas-friendly to gas-free" solutions including Cruze Eco and Volt. Cruze Eco offers 42 mpg highway while Volt offers 35 miles of electric, gasoline-free driving and an additional 344 miles of extended range. Most new Chevrolet models offer OnStar safety, security and convenience technologies including OnStar Hands-Free Calling, Automatic Crash Response and Stolen Vehicle Slowdown. More information regarding Chevrolet models can be found at www.chevrolet.com
Recently, some of the industry trade publications have already reported on the concern voiced from repair facilities across the country over intrusive elements of Far-mers Insurance new COD agreement. The Society of Collision Repair Specialists (SCRS) reviewed the content, and believe that it is in the best interest of the industry to make the agreement available for public review.
Insurance carriers have continued to increase pressure over repair shops to obtain the quickest/cheapest repair, while interjecting themselves further into the oversight and management of repair businesses. The industry is often disadvantaged by restriction of communication from participants of these pro-grams, and it is important for the industry to rely on factual review of documents, rather than anecdotal musings. If we wish for business conditions to improve, it is important that our industry finds the voice to express our concerns openly and honestly without fear of being transparent.
To that purpose, SCRS has highlighted some areas of interest below. All recipients of this communica-tion are notified that the materials presented are not to be construed as direction or suggestion, and is intended simply to better inform individuals acting within their own judgment, making sound business decisions, without agreement to take concerted action.
Please note that in these excerpts, “Exchange” refers to Farmers Insurance, and “Vendor” refers to the DRP repair facility:
5.2 DISPUTED AMOUNTS. If Exchange in good faith disputes any portion of a Vender in-voice (“Disputed Amount”), Exchange will timely pay Vendor for the undisputed amounts of that invoice. Unless otherwise specified by federal or state laws, statutes, codes, rules, or regu-lations, within thirty (30) days of receipt of an invoice from Vendor on which a Disputed Amount appears, Exchange will (i) notify Vendor in writing of the specific items in dispute; and (ii) describe in detail Exchange’s reason for disputing each such item. Within thirty (30) days of Vendor’s receipt of such notice, the Parties agree to negotiate in good faith to reach set-tlement on any items that are the subject of such dispute. Vendor will not terminate this agree-ment on the basis of an alleged breach involving Exchanges failure to pay a Disputed Amount unless the Disputed Amount exceeds fifteen percent (15%) of the total amount payable under this Agreement or the sum of twenty five thousand dollars ($25,000.00), whichever amount is greater.
(SCRS Note: DRP facilities would seemingly have agreed that the carrier can dispute their charges 30 days after they are invoiced, and the repair facility can’t terminate their agreement based on a breach of contract if they fail to pay unless it is a $25k short-pay.)
11.4 Vendor shall ensure that its General Liability, Workers’ Compensation, Garage Liabili-ty, Coverage for Garage Operations, and Physical Damage insurance policies allow Vendor to waive its rights of recovery prior to a loss and that the carriers furnishing such insurance poli-cies shall be required to waive all rights of subrogation against Exchange, its officers, agents, employees, and other vendors and subcontractors. To the extent permitted by law, Vendor shall look solely to its insurers and not to Exchange’s insurers for loss or damage arising from work performed for Exchange.
(SCRS Note: How many business carriers will allow their clients to waive their rights in this man-ner through this agreement? Will a collision repair business still have coverage if they sign this? How many of the shops have taken the time to forward this provision to their carriers to ask if they approve of their unilateral waiver of rights to subrogate against the carrier in question? What if a staff re-inspector injures themselves on the shop property due to their own negligence? It appears plain and simple; the liability falls on the shop for their repair approach and choices.)
12. MOST FAVORED CUSTOMER. During the term of this Agreement, if Vendor en-ters into a written contractual relationship with an insurance company or organization pursuant to which (a) Vendor provides services substantially similar to those provided to Exchange, and (b) Vendor provides pricing or other commercial terms that are more favorable than the pricing or commercial terms being provided to Exchange for work performed by Vendor, then Vendor shall offer to Exchange in writing, within thirty (30) days of Vendor entering into such agree-ment, the same or better pricing and/or commercial terms to Exchange. On a quarterly basis, Vendor shall provide a written certification executed by an officer of Vendor of Vendor’s com-pliance with this Most Favored Customer provision.
(SCRS Note: “Most Favored” pricing language is currently being challenged in the healthcare in-dustry. Is it interesting that the repair industry is constantly asked to be “competitive” and those same parties now want the industry to guarantee pricing given to another party, which by virtue is not competition.)
16. SUBCONTRACTING
16.1 (ii) Sublet repairs reflecting a retail price within the local market should be written without a mark-up. Sublet items reflecting a wholesale price may be considered for a mark-up not to exceed 25% of the sublet charge. All invoice mark-ups combined may not exceed $200 for the entire repair.
17. INSPECTION OF BOOKS AND RECORDS. Vendor agrees to maintain and preserve its books and records in accordance with generally accepted accounting procedures (“GAAP”) for a period of three (3) years or for a longer period if required by applicable law or regulation. Any time prior to the termination of this Agreement and for a period of two (2) years thereafter, Ex-change shall have the right to inspect and audit such portions of the Vendor’s books and records as is necessary for purposes of verifying amounts payable to Vendor or its authorized subcon-tractors and to verify compliance with the terms and conditions of this Agreement. Vendor agrees to make such books and records available for inspection by Exchange, its designee, or any insurance regulatory authority immediately upon request.
(SCRS Note: Are business owners, willing to open internal accounting books to a party outside of the business? There are concerns voiced regularly throughout the industry regarding data that is shared through electronic mechanisms. Now this program appears to require businesses to open up all their books, P&L statements and proprietary business information to another party.)
27. BACKGROUND CHECKS.
27.2 In no event will Vendor in the performance of this Agreement use the services of an indi-vidual who has been convicted of a felony, including but not limited to any convictions involv-ing dishonesty, a breach of trust or moral turpitude.
(SCRS Note: Language in this section is similar to requirements in other programs, requiring com-plete background checks, and no shop can employ individuals who have ever been convicted of a felony; in some states that may mean a DUI. How many of businesses hire good, decent employees - from detailers, technicians to office staff - who may have made mistakes in the past, but have earned their employers trust and respect for the work they do today? Is it necessary to allow anoth-er party to interject who is employed in a privately run business? Is the requirement reciprocal to the representatives who will interface with repair facilities in the field?)
There is lots of information in this agreement. SCRS’ decision to release a link to this document is in no way to be construed as legal or ethical advice or opinion; however, it is our hope that the industry finds the information useful in making educated business decisions, and discusses the material responsibly.n
With nearly four and half months until the doors of the 2011 SEMA Show open to industry professionals on November 1st, the collision repair community has already shown up to the event in a big way. The Collision Repair & Refinish (CR&R) section of the show has far surpassed the number of exhibitors and floor space square footage in the section from the previous year, pacing to see even further growth of collision industry participation as the show nears.
While at the show, there is an abundance of opportunity for collision repair professionals that compliment the expansive amount of services, equipment and offerings on the show floor. Attendees will also have world-class education opportunities available to them through SCRS' Repairer Driven Education (RDE) series which entails sessions held on each day of the SEMA Show in the afternoon. RDE features subject matters geared specifically to collision repair businesses, and will include a high-energy, impactful headline presentation from Afterburner Fighter Pilots on Thursday evening which you won't want to miss. A complete outline of the schedule and more details on the event can be accessed in the RDE Digital Overview which was recently published by SCRS. This overview contains all the information attendees will need to easily plan their trip to Las Vegas this November.
"This is a highly exciting position to be in," exclaimed Aaron Schulenburg, Executive Director of the Society of Collision Repair Specialists (SCRS). "SCRS was very pleased with the response we received from the industry during our first year of partnering with the SEMA Show in 2010, but obviously, there was the understanding that our follow up year had to be bigger and better and we had to take the feedback we received from attendees, and put it to use with goal of enhancing our constituents experience at the show even more. We worked closely with the show management and with SEMA to use the input we received, and I think it is clear that the early results this year have demonstrated the industry's excitement and support of our involvement at this venue. We are very fortunate to be in this position in June, and are so appreciative of all the vendors who made the early decision to be a part of shaping our destination for the collision industry."
While registrations to the RDE program have already seen a dramatic uptick from last year's figures at this time, there has also been noticeable increase in interest from international repair groups making the journey to the SEMA Show for both the RDE series and interaction with the exhibiting vendors. As one example, arrangements are underway for a group of over 40 crash shops from Australia to participate in the RDE program and the SEMA Show.
"We firmly believe the caliber and variety of educational offerings found in our RDE program is one of the significant draws for our industry," added SCRS Chairman Aaron Clark. "There has been a continued emphasis and focus into putting together a program that delivers tangible and relevant information that a repair business can put to use as soon as they return home from the show; this year's lineup is no exception, and the immediate response has been tremendous."
In addition to the programs offered by SCRS, I-CAR will have training classes available to attend in the mornings on each day of the show, and the week will host a variety of collision industry-specific events and meetings from groups such as SCRS, I-CAR, CIC, NABC and many others.
For exhibitors who want to be in on the action, but haven't reserved space just yet, there are still plenty of options...but act quickly!
"While the CR&R section nears capacity, we will continue to work with interested exhibitors to make sure they not only have a place on the show floor, but that the experience is exactly what they have come to expect from the SEMA Show," added, Peter MacGillivray, Vice President of Events & Communications of SEMA. "The SEMA Show has a fortunate history of growth and expansion, and our recent collaboration with SCRS and the collision industry have noticeably added to that formula for success on the show floor and attendance. We couldn't be more pleased to partner with groups like this to provide collision repairers a world class show experience, with content that propels added business opportunities for these small businesses. For exhibitors, it is certainly not too late to participate in what is shaping up to be one of the best SEMA Show turnouts in years!"
As already evidenced by the amplified presence of exhibitors in the Collision Repair & Refinish section, the industry is not delaying in making their plans to be in Las Vegas this November. Register today for the SEMA Show and RDE, to ensure that you have space in each of the sessions that you want to attend.
Michael Duffee, James Hendricks
In a further attempt to add to the heavy regulatory burden already placed on car dealerships, the Wage and Hour Division of the U.S. Department of Labor announced on April 5, 2011, that a proposed clarification for overtime requirements for service advisors would not be adopted. Therefore, the Department of Labor will not regard service advisors as exempt from overtime.
Section 13(b)(10)(A) of the Fair Labor Standards Act (29 U.S.C. §213(b)(10)(A)) provides that "any salesman, parts man or mechanic primarily engaged in selling or servicing automobiles . . . if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to the ultimate purchaser" is exempt from the Act's overtime requirements. Although the Department of Labor's current regulation which interprets this provision states that "a service manager, service writer, service advisor or service salesman who is not primarily engaged in the work of a salesman, partsman or mechanic is not exempt" (29 C.F.R. § 779.372(c)(4)), since 1987, the Department has adopted an enforcement position that it will not deny this exemption for service advisors. Wage and Hour Division Field Operations Handbook, Section 24L04(k). The agency took this position after numerous courts had rejected the Department's treatment of these persons as overtime eligible, concluding that the Department had misread the requirements of Section 13(b)(10)(A) of the Act. See generally Walton v. Greenbrier Ford, Inc., 370 F.3d 446, 452 (4th Cir. 2004) (service advisors are "functionally similar to the mechanics and parts men who service the automobiles. All these work as an integrated unit, performing the services necessary . . . with the service salesmen coordinating these specialties.")
In 2008, the Department of Labor published for notice and comment a new set of regulations which in part decided to re-write its rule concerning service advisors to conform to this long-standing enforcement policy. However, on April 5, 2011, the Department abruptly changed course, and decided not to adopt the proposed changes to Section 779.372(c)(4). Instead, agreeing with the position of the AFL-CIO, the Department determined that service advisors should be treated as overtime eligible as stated in the current regulation, thus expressing its disagreement with the court's decision in Greenbrier Ford. The Department's announcement went on the say that "the Department has concluded that the current 779.372(c) sets forth the 'appropriate approach' to determining whether employees in such positions are subject to the exemption." 76 Federal Register 18838 (April 5, 2011).
Toyota announced a $1 million contribution to the American Red Cross to support relief efforts for victims of the recent outbreak of tornados in the Southern, Midwestern and Eastern regions of the United States. In addition, Toyota will match employee contributions to the American Red Cross. The company will also provide additional support and assistance to those Toyota employees who have lost their homes.
Commenting on the donation, Yoshi Inaba, president and chief operating officer of Toyota Motor North America, Inc., said, “All of us at Toyota express our sincere condolences to the families affected by these devastating storms. Since we have manufacturing plants, suppliers and many dealerships in the regions that were hit the hardest, we felt a special responsibility to lend a hand. In addition to this financial support, many Toyota employees are already involved in volunteer activities to support those in need. We very much appreciate their personal engagement."
Former General Manager Jay Walsh Regularly Insulted and Mistreated African-Americans, Federal Agency Charges
CLEVELAND – Ganley Lincoln of Bedford, Inc., an auto dealership in Bedford, Ohio, will pay $300,000 to four African-Americans to settle a racial harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.
In its lawsuit, the EEOC charged that Jay Walsh, Ganley’s general manager at the time, routinely used derogatory terms to refer to blacks, customers as well as employees, including the epithet “n----r.” Walsh, in referring to an older African-American employee, wished the “old n----r ... would hurry up and die.” Further, the agency charged, Walsh utilized a compensation system that disadvantaged black salespeople with regard to sales opportunities and commissions.
Racial discrimination violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit, No. 1:07cv2829, in U.S. District Court for the Northern District of Ohio, Eastern Division, after first attempting to reach a pre-litigation settlement through its conciliation process.
In addition to the monetary relief, the two-year consent decree settling the suit provides for training on employee rights and employer obligations under Title VII, as well as supervisor accountability with regard to racial discrimination. The decree also requires Ganley to post a notice to employees about the lawsuit that provides the EEOC’s contact information.
“Racial harassment is utterly unacceptable and illegal,” said EEOC Regional Attorney Debra Lawrence. “It demeans the entire workplace as well as the direct victims. This settlement – both the monetary relief and the training -- will help ensure that African-Americans at this company will never have to face such abuse again.”
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on the agency’s web site at www.eeoc.gov.
With the help of The Impact! Group, Sports & Imports Collision, a member of the National Auto Body Council (NABC), delivered an Oldsmobile Intrigue to The Jeremy Burse Family in a ceremony at 3400 McDaniel Rd., Duluth, Ga. The project was part of a nationwide vehicle donation program called Recycled Rides, a community awareness project whereby members of NABC repair and donate recycled vehicles to families in need. As part of this program, simultaneous vehicle donations took place throughout the country in the month of November.
“We are exceptionally pleased with the results of the project,” states Gene Hamilton. “The vehicle was well received and all of our staff worked hard to make the donation a reality. The Burse family was extremely grateful and we wish them a great holiday season. Hopefully, having this vehicle will brighten their lives and make it easier for them to accomplish the daily tasks most of us take for granted.
“I want to thank our staff. This would not have happened without their efforts.
“We appreciate all those who attended the event, at which we presented the vehicle—decorated with a huge green bow—to the Burse family. Our thanks also go out to The Impact!Group of Lawrenceville, Ga, and Howard Batchler of Finish Master that attended the presentation.. We look forward to participating again next year and we invite other auto body repair facilities in our community to join us so our industry can serve even more local families next year.”
“The event was a great success,” says Avis Lucas of The Impact! Group. “We’re proud to be a part of Recycled Rides. The family is just thrilled to have reliable transportation. Sports & Imports Collision did a great job getting the vehicle ready.”
The National Auto Body Council is a not-for-profit organization committed to the goal of improving the image of all dedicated professionals in the collision repair industry. NABC headquarters is located at 9404 Ashking Drive, Mechanicsville, VA 23116. For more information on the Recycled Rides program, call (804) 427-6982 or visit www.autobodycouncil.org