Automotive Industry Trends News

CCC Publishes 2007 Crash Course:
- Report shows lower claim frequency
- Examines factors contributing to changes in vehicle mix and complexity and the relationship to rising repair costs and total losses

CCC Information Services Inc. today announced the availability of its 2007 Crash Course, an annual report on the many factors impacting collision repair and total lost costs. Among the topics addressed in the report is the increased competition among vehicle manufacturers which has led to a proliferation of new vehicle models. The report looks at how the use of specialty equipment and materials, including expensive metals, engine types, electronics and safety features is impacting the collision repair industry. A full copy of the report, in its 12th year of publication, is available by on their website.

According to the report, the platform-sharing that began in the 1990s as a way for manufacturers to more quickly and cost-effectively produce vehicles has, over time, evolved into a more modular approach where manufacturers mix and match components to produce a wide range of different vehicles. The increase in model variations impacts sales -- the number of models selling less than 100,000 units grew in 2005 to 117 from 54 in 1999, but also has far-reaching implications for the collision repair industry and parts suppliers.

"Model proliferation, coupled with greater vehicle complexity means more parts, more inventory to manage and more electronics," said Susanna Gotsch, Director and Industry Analyst, CCC. "Each of these factors requires more training for insurance appraisers, repairers and mechanics, which costs time and money, and also has potential negative impacts on cycle time and customer satisfaction."

Another trend addressed in the report is declining claim frequency, which has translated to fewer repairers for the collision repair industry -- a situation aggravated by the increase in the percentage of vehicles deemed non-repairable of total loss. Nearly 13 percent of the vehicles for which an appraisal was generated were flagged as total loss in 2006, showing a slow, but steady increase from previous years.

CCC's data warehouse, which contains vehicle and repair-related information from 100 million estimates processed through its system, is the primary source of trending information included in Crash Course. CCC also includes third party research to highlight broader industry trends, providing Crash Course readers with a comprehensive view of the auto-claims industry. A mid-year report with year-to-date information will be available in Summer 07.

About CCC

CCC Information Services Inc. provides leading automotive claims and repair solutions that drive efficiencies and enable its clients to make smarter decisions in every step of the process. CCC delivers integrated products and deep industry insight to clients through its network of insurers, repair facilities and information providers. CCC's network includes 350 insurance carriers, in excess of 22,000 repair facilities and information from more than 30 data providers that has resulted in the industry's most comprehensive data warehouse of claims file information.

For more information about CCC Information Services Inc., visit our Web site at http://www.cccis.com/

Source: CCC Information Services Inc.