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SB 988 redefines glass shop liability. Plus: paint supply uncertainty ahead.
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Regulatory tightening hits glass and paint supply chains
Wednesday, July 29 · #60
~2 min read
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Mobileye led the group with a 5% pop, dragging the broader ADAS names higher while Tesla sat out the rally.
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🎯 Carrier of the Week
Nationwide

Nationwide is soft-denying calibration with the 'not required' line

What they're cutting
  • Cutting post-scan as a standalone line, calling it included in the calibration fee
  • Denying static calibration R&R time on windshield replacements, asking for 'proof of requirement'
  • Flagging sublet calibration invoices as unreasonable without a labor rate justification
Rebuttal that's flipping it
When they ask for proof of requirement, hand them the OEM procedure directly. Ford, GM, Stellantis, and most Asian nameplate service manuals explicitly state calibration is required after windshield replacement or suspension work, and I-CAR's position is clear that pre- and post-scans are separate, necessary operations that produce separate documentation.
▶ Play this weekPull the OEM repair procedure page that mandates calibration for the specific vehicle, attach it to your supplement with the exact section cited, and send it before they can kick it to a second review cycle.
Good morning, {{firstName}}.

California is narrowing what counts as a glass shop under SB 988, which changes your liability exposure if you do any glass work. Meanwhile, Axalta is flagging tariff and geopolitical risk for the rest of 2026. Both hit your bottom line.

INSURANCE

1. California SB 988 redefines glass shop; Assembly passes amended version

California's Motor Vehicle Glass Act is moving through the Assembly with a narrower definition of what qualifies as a motor vehicle glass repair shop. The amendment tightens scope and liability exposure. If your shop touches glass work at all, you need to review whether this definition affects your licensing, insurance, or scope of work.

Mark says: Talk to your CA glass or body shop lawyer before August 15; a narrow definition could shrink your work scope or spike your insurance.

Source: Repairer Driven News →

INDUSTRY

2. Axalta flags tariffs and Iran conflict creating 2026 supply uncertainty

Paint supplier Axalta reported solid Q2 earnings but warned that geopolitical tension, tariffs, and other factors will create uncertainty through year-end. The company is also merging with AkzoNobel, which could affect supply chains and pricing. Expect volatility in paint costs and availability over the next six months.

Mark says: Lock in paint supply contracts now if possible; budget extra margin for material cost swings through Q4.

Source: Repairer Driven News →

OEM

3. NHTSA opens rulemaking on obvious door handles across all vehicles

The National Highway Traffic Safety Administration is starting a formal rulemaking process to require all motor vehicles have an obvious door egress system. This addresses safety concerns around hidden door handles on luxury and EV models that confuse drivers in emergencies. Shops will eventually need to stock and repair these new systems.

Mark says: Monitor this rule closely; parts inventory, training, and procedures will shift once OEMs implement obvious handles across their lineups.

Source: Repairer Driven News →

INSURANCE

4. California bandit towing bill clears judiciary; body shops now included

A bill to deter unlicensed towing and vehicle sales has passed the Assembly Judiciary Committee unanimously and now sits before the Appropriations Committee. Auto body shops are explicitly included in the liability framework. The bill restricts how shops can hold and sell vehicles out of repair.

Mark says: Review your CA shop's vehicle hold and lien procedures now; this bill will likely pass and change your storage and sale practices.

Source: Repairer Driven News →

INDUSTRY

5. IIHS finds federal AV crash reporting system fragmented and redundant

The Insurance Institute for Highway Safety published research showing the federal system for tracking autonomous vehicle crashes has gaps and duplicate data collection. Better reporting and transparency are needed. As AVs roll out, this signals demand for clearer safety and liability documentation in shops.

Mark says: Start documenting AV repairs with extra detail now; federal rules on AV liability and repair standards will tighten soon.

Source: Repairer Driven News →

Got a denied calibration or ADAS supplement claim? Reply with the details and get an OEM-cited rebuttal in 60 seconds, free, no pitch attached. We'll cite the bulletin so your estimators can fight back on the phone.

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📬 Hit reply. Reply: is your paint supplier already warning you about price hikes or allocation limits for Q3?

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Published by Absolute ADAS. Mark Fowler, owner. Mobile ADAS calibration in Western Washington. 50,000+ calibrations on the floor.

👀 Tomorrow: Axalta's AkzoNobel merger timeline gets clearer and California SB 988 hits Appropriations with body shops watching every word.
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