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Current Events/News: I-CAR Press Releases

April 17, 2008

I-CAR ADDRESSES CIC WITH ITS NEW FOCUS WITHIN THE INTER-INDUSTRY

HOFFMAN ESTATES, IL – April 17, 2008 – Chairman of the I-CAR Board of Directors and interim CEO, John Edelen addressed the Collision Industry Conference (CIC) on Wednesday, April 16, at the Crowne Plaza in Philadelphia, Pennsylvania where he spoke about I-CAR’s recommitment to its core values, its recent reorganization, and how it is moving forward with a new customer-focused operating model.

“Thirty years ago I-CAR was created by the inter-industry to fulfill a fundamental need – the need for access to the training necessary to complete a safe quality repair,” explained Edelen. “Today, I-CAR is refocusing on those needs through a reorganization that aligns itself around consistent feedback from its customers.”

Edelen said, “As part of the reorganization, we established a new marketing and distribution organization bringing our field operations group – our instructors and volunteers – and marketing closer together. This was designed to bring the decisions about what products and services I-CAR will offer closer to the marketplace, closer to the consumers of those products.”

He added that the identification of six distinct industry segments - collision repair; vehicle insurance; vehicle manufacturing; tool, equipment and supply; education, training and related research; and, other related industry services – also help to shape the direction of the reorganization.

“When we announced the re-organization in November, we also announced that I-CAR would establish six Industry Segment Advisory Councils made up of industry participants from the six market segments in which I-CAR serves,” Edelen said. “Through these Industry Advisory Councils, we will work to identify the training needs of the industry segment, and how we can best respond to them.”

While I-CAR is not planning to move in the direction of segment-specific curriculum, Edelen noted that “The organization needs to provide product and services that are effective, relevant, contemporary, and that meet the training needs across the inter-industry segments.” He added, “To deliver on this goal, I-CAR needs to engage with the inter-industry on a segment basis to ensure that it has a clear view of the needs and interests of each segment, and strives to address them as efficiently and effectively as possible through its curriculum design and delivery.”

Edelen also commented on the current financial condition of I-CAR noting that while the organization continues to enjoy very respectable levels of revenue, the revenue growth has been outpaced by the rate of escalation in its operating expenses and that it is actively working to stop any further deterioration in its cash position by recommitting to an acceptable level of profitability which has included reducing staff levels and considering the sale of some assets.

Edelen said, “We found it necessary to consolidate some roles and activities, to reduce resource levels in some areas, and to eliminate some roles. This resulted in the reduction of the overall staffing needs of the organization, and the termination of the employees impacted by these decisions.”

He also noted that I-CAR has invested a significant portion of its cash in its buildings in Appleton, Wisconsin, and in Hoffman Estates, Illinois and that they are looking at various possibilities with the property as a means of further strengthening its cash position.

Edelen went on to state that, “No one should take these developments as an indication that I-CAR is failing – financially or operationally. To the contrary, we have identified our opportunities for improvement and we are acting purposefully to address them. I-CAR is moving quickly to a new operating model: customer-focused, market-driven, and fact-based in its approach to its activities and decisions. It is this strategic approach that will guide us in the future,” he added.




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