Canadian Technician March 2012

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MARCH 2012 WWW.CANADIANTECHNICIAN.CA

ALSO:■ Resolved: That OE service

procedures be consideredstandard.

■ Understanding GM evapsystem leak-checks

■ How the latest scan tool trend could help your pocketbook

ALSO:■ Resolved: That OE service

procedures be consideredstandard.

■ Understanding GM evapsystem leak-checks

■ How the latest scan tool trend could help your pocketbook

TaxTimeKeeping Revenue Canada happy without all the stress

CT-March2012_Layout 1 2/22/12 11:53 AM

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MARCH 2012 CANADIAN TECHNICIAN 3

FEATURES

COLUMNISTS

Canadian Technician • March 2012 • Vol. 11 No. 2

Service Notes................................................. 5

Letters ............................................................ 6

Out & About.................................................... 9

Eye Spy......................................................... 11

Products........................................................27

Ad Index ........................................................29

Tax Time......................................................................... 19

Settling up with Revenue Canada doesn’t have to be stressful. We’ve got a few tips on how to keep your numbers straight and your tax bill low.

Evap Testing .................................................................. 22Jeff Taylor explains how GM’s evap system self-checks for leaks. Knowing the procedure will help you diagnoseevap issues.

contents

It’s Your Turn By Allan Haberman .................................... 12

Management S.O.S. By Kelly Bennett ............................. 15

DEPARTMENTS

22The Car Side By Rick Cogbill 30

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Iwas talking to a technician yesterdaywho, completely unsolicited, sighedand offered the following obser-

vation: “Man, this industry sucks!” Heslipped it in toward the end of ourconversation, as if this is how heregularly wraps up phone calls. “Thisindustry sucks.”

There is a lot of negativity in thisindustry. I hear it all the time and,quite frankly, it is hurting our industry.It damages our reputation and makes itharder to recruit new talent. It needsto stop.

Now, I know that negativity in theworkforce is nothing new. Millionairehockey stars and Hollywood actors willwhine about their lot in life, given half achance. It’s natural, I suppose. But it’snot healthy.

I was, for a while, the editor of a trademagazine for truck drivers, and I had todeal with a lot of negativity there too.

It seemed to be mixed with confusionabout why their fortunes have fallen sodramatically. It wasn’t that long ago thatdriving long haul was the ideal job forfree-spirited mavericks with a taste for theopen road. Now a lot of drivers feel likeprisoners in their own cabs.

Well, I can tell you that some techni-cians feel trapped too. Trapped bystagnant wages, demanding customers,the rising cost of tooling up, therelentless need for skills upgrading,burdensome environmental laws,meddlesome governments, and a searinglack of respect from the general public.

But I also know there are technicianswho love their jobs, love the industry,and love coming to work every day.When I talk to them, I get energized. Itis infectious.

In January, I met three technicians atthe Worldpac training expo inCalifornia, who were like kids in a candystore. They made a big impression on me

because they were excited about theirjobs. They soaked up the training andcouldn’t wait to get back home to putwhat they’d learned to use.

Perhaps even more surprising was theway they spoke about their bosses – theshop owners who had sent them fortraining. They never once used the term“ESO,” which apparently stands for “evilshop owner” and is frequently found ontechnician forums.

There was no grumbling or frustration.On the contrary, they all had stories thatdemonstrated the mutual respect thatexists in their work places. All three hadbeen asked to take over running the shopduring personal crises in their boss’s lives.All three rose to the challenge and addedsome management skills to their resumes.These guys are not trapped or demor-alized. They are not nay-sayers. They aretrue leaders in this industry. Thoughtleaders. Attitude leaders.

Every once in a while, when I’mtalking to industry folks, we play thegame, “If you could change one thingabout this industry, what would it be.”

Truthfully? I would wish for rampantoptimism among technicians. I wouldwish for positivity and confidence.

Think of all the cars out there thatneed to be maintained. Think of all thecustomers who rely on us to do whatthey cannot. Anyone with a head formechanics and electronics will always bein high demand.

This industry has its challenges, andI’m as frustrated by the slow progress indealing with them as anyone. But itdoesn’t suck. Opportunities are every-where. And the best way to find them isto start with a positive attitude.Otherwise you’re beaten before youeven start.

You can reach me at [email protected]

We need more thought leadersNegativity is hurting this industry and it’s time someone called attention to it. It needs to stop.By Allan Janssen

SERVICE NOTES

EDITORAllan Janssen

[email protected](416) 614-5814

PUBLISHERMartyn Johns


CIRCULATION MANAGERLilianna Kantor


DESIGN & PRODUCTIONTim Norton


GENERAL MANAGERJoe Glionna

PRESIDENTJim Glionna

PUBLISHED BYNewcom Business Media

451 Attwell DriveToronto, Ont. M9W 5C4

Canadian Technician is published monthly except for January and July by Newcom BusinessMedia, Inc., 451 Attwell Drive, Toronto, Ont. M9W 5C4. The magazine serves the Canadianautomotive repair and service industry. Subscriptions are free to those who meet the cri-teria. For others: single copy price: $5.30; one-year subscription in Canada: $42.00 ($40.00plus applicable taxes); one-year subscription in U.S.: US$60; one-year subscription in allother countries: US$90. Copyright 2012. All rights reserved. The contents of this publicationseptember not be reproduced by any means, in whole or in part, without prior written con-sent of the publisher. The advertiser agrees to protect the publisher against legal actionbased upon libelous or inaccurate statements, unauthorized use of photographs, or othermaterial in connection with advertisements placed in Canadian Technician. The publisherreserves the right to refuse any advertising which in his opinion is misleading, scatological,or in poor taste. Postmaster: Send address changes to Canadian Technician, 451 AttwellDrive, Toronto, Ont., M9W 5C4. Printed in Canada. Second class mail: Postage paid atToronto. Canadian Publications Mail Sales Agreement #40063170. ISSN 1710-7644.

Tax TimeBy Wayne Moore • (905) 632-8770

VOLUME 17 NUMBER 2

Canadian Business Press

Member

Kenneth R. Wilson Award Winner

451 Attwell Drive, Toronto, Ont. M9W 5C4

We acknowledge the financial support of the Governmentof Canada through the Canada Periodical Fund (CPF) for our publishing activities.


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6 CANADIAN TECHNICIAN MARCH 2012

WHERE IS OUR RESPECT?I was recently in hospital for sometesting and my doctor told me I neededa procedure that might or might nothelp with my symptoms. And, by theway, the procedure wouldn’t be coveredby B.C. health, so it would all have to bepaid for out of my own pocket. It got methinking about why it seems to be OKfor a medical doctor to expect people topay for something that might or mightnot work. If it doesn’t work, you can bet,they’ll come up with another idea thatwe should try, and it might cost us evenmore money.

The more I thought about it, theangrier I became. Because if we told acustomer we were going to charge themto try something that “might or mightnot” fix their car, they would go ballisticand call us crooks. The general publicexpects us to diagnose their extremelycomplex and ever-changing vehicleswith 100-per-cent accuracy. The humanbody hasn’t changed in thousands ofyears, yet highly educated doctors aren’texpected to be precise in their diagnoses.In fact, they can take a wild guess whenthey don’t know the answer. And if itcosts us money, well, that’s just too bad.

And that’s not where the unfairnessends. Think about how our customersexpect to be serviced immediately,without any delays when they show upwith or without warning. Yet even withan appointment, you will be expected to

wait in a doctor’s office until you can beseen. A wait of an hour seems to beaccepted as normal practice.

When is the world going to realizewe are highly trained specialists whohave to read up on, understand, and putinto practice more new proceduresevery year than a brain surgeon. Ratherthan getting respect for our skills andyears of continual training, we areconsidered crooks, stupid greasemonkeys, and the scourge of the earth.

Thanks for letting me vent!Tom HinesFountain TireRichmond, B.C.

SERVICE HINTS WERE RIGHT ON!Absolutely great article on serviceadvisors (December 2011). It was righton! After 40 years in this career, I’velearned to use all of those hints at onetime or another.Helmuth SlisarenkoGuelph Brock Road GarageGuelph, Ont.

INVOICES COULD BE MOSTIMPORTANT TOOL IN YOU BOXI strongly agree with Bruce Eccles onthe importance of a well-written invoice(December 2011). It is equally asvaluable to the shop as it may be to thecustomer. It is a document in which younot only explain what you found and

what was done to repair the issue, but italso becomes a reminder for both on thenext visit. It could be your best tool inyour box if used correctly!M. RemualdiMario’sNorth York, Ont.

INVOICES ARE ALSO A GREAT RESOURCEBruce, you are right on! Always give asmuch detail as possible. Many, manytimes we’ve been asked to recreate anexpense report for a client for taxpurposes. Try to do that with hand-written invoices. You’re only foolingyourself if you think it’s worth trying tohide income by not having a properinvoicing system.- Comment on www.canadiantechnician.ca

GOOD INVOICES IMPRESS CUSTOMERSWhat a great article. Depending on thetype of client you market to, or whovisits your establishment, you cannotdiminish the importance of goodgrammar, spelling, and the proper entryof customer name, address and phoneinformation on your invoices.

If you think these things don’tmatter, you’re sadly mistaken. Andhaving the viewpoint that, “Hey I’m atechnician, not a school teacher!”certainly won’t impress anyone,especially not those with highereducation. Generally speaking, these arethe customers that have the financialmeans to become your most lucrativecustomers. They are usually interested informing long-term relationships oftrust. Over time, when they’re presentedwith vehicle needs found on inspection,they’ll simply say, “Go ahead.”

These customers are the gravy in yourshop. Take full advantage of everyinvoicing detail possible and you willimpress your customers.- Comment on www.canadiantechnician.ca

How to reach usWe love to hear from our readers. Pleasesend along your opinions to editor AllanJanssen at [email protected].

LETTERS





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OUT & ABOUT


The National Automotive TradesAssociation of Canada (NATA) hasacknowledged that repair standardssuggested by original equipmentmanufacturers should be consideredindustry standards.

In a press release, NATA said mostrepairers assume the repair proceduressuggested by original equipmentmanufacturers are standards bydefault, but it has never been officiallyestablished.

The associations cautioned,however, that repair proceduresconstantly change and develop. A jointposition statement from the associa-tions reads, in part: “Whereas weacknowledge the OEM repair proce-dures are incomplete in comparison tothe full scope of vehicles and repairoperations which exist in the market-place, the OEM published repairprocedures shall serve as the baselinefor industry repair standards, with therecognition that further developmentof procedures will be necessary in areas

not covered by published procedures.” NATA and its affiliate associations

have now joined with other majorassociations in the United States andAustralia in acknowledging as much.

Signatories with NATA include theAutomotive Retailers Association ofBritish Columbia (ARA-BC), the Au-tomotive Service and Repair Association(ASRA), the Automotive Trades Associ-ation of Manitoba (ATA Manitoba), theHamilton District Autobody Repair As-sociatino (HARA), the Automotive Af-termarket Retailers of Ontario(AARO), the Collision Repair Associa-tion of Nova Scotia (CRANS), the Au-tomotive Recyclers of Canada (ARC),and the Saskatchewan Association of Au-tomotive Repairers (SAAR).

Other associations signing on to thisstatement include 22 U.S. state associa-tions, as well as the Alliance ofAutomotive Service Providers , theAutomotive Service Association, theSociety of Collision Repair Specialistsand the Assured Performance Network.

OEM procedures are industry standards: NATA

We’ve created a new way for you to enjoy Canadian Technician. Now youcan listen to it on your computer or MP3 player, whether you’re in your caron the way to work, in your office, or under the hood of a car.

Canadian Technician: In The Shop is a brand new podcast – a 30-minuteradio show designed to entertain and educate.

And we’d like to include your views on upcoming shows, so we’ve set upwhat we’re calling The Newcom Hotline. Just call 1-866-222-6787 and youcan leave a voice message that could make its way onto the podcast. Tell uswhat you thought of the show, give us your view of things, or leave a helpfulhint for other listeners. You can be part of Canadian Technician: In The Shop.

We’re really excited about this new way of sharing what’s new in theautomotive repair and service industry… and we hope you enjoy it.

Check it out at http:// tinyurl.com/CT-Episode01

Check out our new podcast


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Federal-Mogul is taking its automotivetraining courses on the road, offeringeducational opportunities throughoutCanada and the U.S.

The company, which has trainedmore than 200,000 technicians in thelast decade at its St. Louis, Mo, TechnicalEducation Center (TEC), will now taketechnical training directly to techniciansthrough a fleet of mobile training units.

Federal-Mogul says the “MarketConnect” training program is designedto make training more accessible andaffordable, and will offer a competitiveadvantage to its customers.

One of the advantages will be lesstime away from the shop and greaterreturn on investment for techniciansand shop owners, says Paul Johnson, vicepresident, Federal-Mogul NorthAmerican Aftermarket.

The mobile units will be centrallyscheduled and dispatched over several

geographic territories throughout theU.S. and Canada.

The company plans to deliver coretraining to technicians using “experi-ential, on-site instruction and new web-based and virtual training technologies.”

The mobile training units are part ofa broader strategy of bringing turnkeytraining services to the market,increasing curriculum penetration andmaximizing customer value by deliv-ering the best possible Federal-Mogulcustomer experience. The fleet willleverage and supplement the Federal-Mogul TEC as well as its online classofferings and technical hotline to bringFederal-Mogul training and innovationsdirectly to the technician in the mostefficient manner possible, raisingtraining ROI for the installercommunity.

Federal-Mogul Corporation isheadquartered in Southfield, Mich.,employing approximately 45,000people in 35 countries.


OUT & ABOUT

Federal-Mogul launches mobile training

The attached photo is from a Chrysler Caravan. The customer was complaining of a loud noise from hisexhaust! After consulting with the customer and bringing theissue to his attention he then remembered that two years

ago the temporary fix was performed on the side of the road! Well, I guess it doespay to use factory parts (the metal ruler has a Chrysler emblem on it)!Chris Sullivan, Tire Craft, Windsor, N.S.

EYE SPY

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12 CANADIAN TECHNICIAN FEBRUARY 2012

Do you need a factory scan toolor an aftermarket scan tool?The debate has been going on

for as long as there have been scan tools.In fact, the debate raised its head in

these very pages and on the CanadianTechnician Forum not so long ago.Maybe it’s time to look at the questionsyou need to be asking yourself when itcomes to tooling up with the latestdiagnostic equipment.

Would an aftermarket scan toolprovide all the data and test capabilitiesyou need to accurately diagnose andrepair your customers’ vehicles? Would afactory scan tool make the processeasier and or faster? What functions doyou need to have? Data PIDs? Bi-direc-tional testing? What cars do you workon? Is it a pretty even mix, or does itlean toward one or two manufacturers?Is versatility a key skill for you, or areyou ready to specialize?

There is clearly a lot to considerbefore making such a major investment.

One trend that is going to have a bigimpact on your decision is the moveaway from hardware-based toolstowards software-based tools. The elimi-nation of hardware has significantlyreduced the cost of these factory scantools.

Today, many tools require acustomer-supplied PC or laptop to runthe software and a VCI or VehicleCommunications Interface. When youpurchase the scan tool, you receive theVCI and required cables as well as a discwith the software on it and asubscription to the vehicle manufac-turer’s website. The software turns yourcomputer into a factory scan tool, whichcommunicates with the vehicle throughthe VCI. The subscription to themanufacturer’s website allows you accessto factory information, includingupdates for the scan tool functions,

factory wiring diagrams, and TSBs, aswell as the ability to reprogram or reflashmodules. A lot more too, in most cases.

Some manufacturers now offer theirfactory scan tool on a short term basis.Instead of purchasing a VCI andsoftware you can use your own J2534interface to replace the VCI. You stillneed to purchase the software but it’savailable on an as-needed basis.

Here’s how it works. You purchase asubscription to the manufacturer’swebsite and download a piece software.This software stays on your computerand becomes your link to the scan tool.Once the software has been loaded, youcan access the scan tool software on thewebsite. This turns your computer intoa virtual factory scan tool that commu-nicates with the vehicle using a J2534pass through device. (This is the samedevice used to reprogram or reflashvehicles when an update is required andyour shop may already have one.)

The scan tool is functional onlywhile you are connected to the websitewith an active subscription. If you loseyour Internet connection or yoursubscription expires, the scan toolfunction is also lost. The advantage tothis system is that you can purchase thescan tool when you need it for as longas you need it.

If you don’t service a certain make ofvehicle regularly but occasionallyrequire a scan tool, you can purchase ashort-term subscription and access thescan tool. Subscriptions are generallythree days, one month, or one year,although terms may vary depending onmanufacturer. For example onemanufacturer charges $55 for three daysand $1095 for a full year. This is anaffordable option for purchasing afactory scan tool, when available.

I believe as more manufacturersadopt software-based scan tooltechnology, the trend towards J2534-based tools will also increase. This willallow more technicians to have access tofactory-level diagnostic tools.

For more information on factoryscan tools and subscription costs go towww.nastf.org and click on theInformation Access Charges and ToolsMatrix links.

Scan tool decisionsThe latest trend toward software-based tools is going to change the way you think about what equipment you need to own, and what you can leaseBy Allan Haberman

IT’S YOUR TURN

Allan Haberman iswith Blue Streak-Hygrade in Winnipeg,Man. He is also amember of theCanadian TechnicianAdvisory Panel.


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DEAR EROL:I figure that every time you bring on atechnician, you’re half way to needinganother advisor. Ideally, the ratio shouldbe one service advisor for two techni-cians. In your case you have two techsand so you’re right, bringing on a thirdis definitely going to overload youradvisor – especially with your car count.

There are a few options you maywant to consider.

When you hire anther technician,you could hire an assistant serviceadvisor. That’s someone who can helpsupport the advisor by handling thebulk of the phone calls, estimating,parts ordering, and counter timeduring the morning drop off andafternoon pick up. That would be lesscostly than hiring a second advisor. Wehad a group member do this, and theyallowed the advisor to interview thecandidates and choose their ownassistant. It worked really well.

Or you could take the hybridapproach. Not all shops can afford theextra wage of a full-time parts person.But they can hire someone to be aservice advisor during the crunch timesand handle parts ordering the rest of thetime. The timing works. Since they’reon the counter in the morning, theyhave a better handle on what is needed

TO HIRE OR NOT TO HIRETHERE ARE A LOT OF FACTORS THAT GO INTO EXPANDING

YOUR STAFF. GETTING THE RIGHT INFORMATION

ABOUT YOUR BUSINESS IS THE FIRST STEP.

IN THIS SERIES OF FICTIONAL LETTERS FROM A NEW SHOP OWNER TO HIS FORMER BOSS, MANAGEMENT TRAINER KELLY BENNETT DISCUSSES BASIC BUSINESS PRINCIPLES THAT

APPLY TO THE AUTOMOTIVE REPAIR INDUSTRY.

MANAGEMENT S.O.S.

DEAR KELLY:I’m in the process of hiring another technician… mainly

because my existing techs can’t keep up with the car count.

Quite frankly, we’re getting really good at “rack ’em and stack

’em” management because we have so many carry overs on a

daily basis. But I’m concerned I’ll be overloading our current

advisor. She doesn’t have any free time during the day.

And if I have to hire another one, the economics might not

make sense.

I’m trying to do some number crunching to determine how

much I would need to increase my sales to pay those wages.

The last thing I want is to end up making less net profit.

Please help. All of this is starting to keep me awake at night!

—Erol



for the work and they can segue nicelyinto parts ordering. By the afternoonpick-up time, their parts job is done andthey can help out again on the counter.

Some shops have solved the problemby hiring a receptionist. Their main taskrevolves around the phone – takinginquiries and appointments, callingcustomers for authorization and sched-uling, and doing follow-up calls tothank them for their business. This freesup the service advisor to concentrate onthe work at hand.

Or you can just bite the bullet andhire a second advisor. That’s certainly anoption, especially if you get someonewho is trained in selling so they’rehelping to raise average hours perinvoice. That way they’re helping to paytheir own way.

All of this can be a tough decision,of course… and it’s just one of thehundreds you have to make in aaverage week.

Regardless of which approach youchose, I agree you need to do somenumber crunching.

I have to admit, though, that’s not mystrong suit. When I last faced thatdecision, I knew had to get some morecurrent data for my own business. Ibought an Excel for Dummies bookand tried to figure out exactly where Istood. It didn’t take me long to realize Iwas in way over my head. I guess I’vealways been a DIY guy. (I should havelearned my lesson when I did my ownplumbing a few years back. Fortunately,the deductible on the water damage wasonly $500!) Eventually I gave up anddecided to PSE. Pay someone else!

I hired an Excel wiz named Les whowas able to create an amazing tool thatallows me to see how much labour andparts revenue I should generate for eachtechnician. It also told me how much Ican pay the tech, how much more I canpay for management or an advisor, how

much more I have to pay for adver-tising, and lots more, right down to howmuch profit I should see per technicianevery month. It is amazing tool. Andsince then he has created several othermanagement tools. I don’t know how Imade major decisions in the past without this kind of data at my finger tips.

If you’d like, I can send you the mainspreadsheet. It is amazing! And it is just ajumping off point for understandingyour business better. Just send me anemail at [email protected].

I’m confident you’ll be able to figureout whether or not to hire a serviceadvisor. I can’t wait until you tell meyou’ve solved the problem of the carry-overs!

Well, I’m heading home. I have awine-making class tonight. As youknow, I’m bit of a compulsive guy. Iwent into a store last week to buy somebottled water and saw they sold winekits. I thought, hey, now there’s an idea!I left with bottled water and everythingI need to make wine. I guess you neverreally shake your inner DIYer!

I did take my own advice by the way.When I got home, I ran the numbers. Ican save 67.5% making my own wineversus buying it by the bottle. How coolis that! Actually I am having labels madewith our company name and will handthem out to customers when wecelebrate our 25th anniversary this fall.

Wow, how the years have flown!As always, I’m only an email away. — Kelly

Kelly Bennett is a certified management trainer and has been coach-ing automotive repair shop owners since 1990. You can reach him at [email protected].

Larr

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MANAGEMENT S.O.S.




It’s Coming!04-01-2012

Watch for an announcement in next month’s issue.


If you’re like many independent repair shop ownerswho started off as technicians before taking the reinsof the business, you know more about ABS than

GAAP.This time of year, however, it’s worth turning your

attention to things like Generally Accepted AccountingPrinciples.

That’s right. It’s tax time.But filing doesn’t have to be stressful. There’s plenty of

professional help out there – some of it free – and themore organized you are, the easier it’s going to be.

Here are seven tax tips from Mike Shellnut of ShellnutProfessional Accountants in Dartmouth, Nova Scotia.Among his clients are a number of automotive repair shopowners, so he knows a thing or two about our industryand the unique challenges we face.

1.

Track taxable benefits carefullyTaxable benefits is “quite a little monster,” Shellnutt says.It’s an issue that employers have to pay close attention to.

Company cars, in particular, can be tricky, and they’re ofspecial interest to Canada Revenue Agency (CRA).

Any personal use of employer-provided vehicles isconsidered a taxable benefit and should be reported withincome. (And, by the way, personal use includes going toand from work. You can’t claim your commute.)

By the same token, it is not uncommon for anemployee of a business – or even a business owner – to usehis own vehicle for business purposes without seekingcompensation. If employees use their own personalvehicles for work-related purposes, whether it is pickingup or delivering parts, or shuttling clients, they’re allowedto deduct expenses related to that use. For the 2011 tax

year, the formula is $0.52 per kilometer for the first 5,000kilometers and $0.46 for every kilometer after that. (In2012, that went up to $0.53 and $0.47 respectively.) Youmust keep a detailed log, a sample of which is available atthe CRA web site. Compensation back to the owner ofthe vehicle is not taxable (since they used after-tax dollarsto operate the vehicle).

Another potential taxable benefit is a loan from thecompany at less than the prescribed interest rate. Thisshould be claimed.

And if you decide to use credit card points to go on aholiday, that’s a taxable benefit too. Does anyone claim it?Probably not very often. But it’s a risk people have tothink about. And if it happens a lot, you could get caught.

2.Tool tax for apprentices

Although many in the industry would still like to seetechnicians be allowed to write off the cost of their tools,that provision has only been offered to apprentices, andonly to a maximum of $500 per year. The tools must bepurchased by the apprentice and be for exclusive use in hiswork. The employer will have to provide a T2200 – adeclaration of the conditions of employment. Claiming$500 doesn’t mean they get $500 back. It means they’ll getthe tax back on the $500 they spent on tooling up. And, ofcourse, they’ll need their receipts.

3. Capital purchases

Equipment that has a useful life of more than a year isdeemed to be capital equipment, so your Capital CostAllowance (CCA) comes into play here. Remember, only


Seven ways to make your annualencounter with Canada RevenueAgency a little less stressful and a lot less painful.

By Allan Janssen

12

3

TaxTime


a portion of it can be claimed each year, as depreciationand amortization need to be considered.

“We see that often that someone will spend $20,000or $30,000 on equipment and they’ll try to expense it,which would create a business loss,” says Shellnutt. “Butyou can’t do that because that equipment has a useful lifelong beyond one year. You can’t just take it off thebottom line.”

As useful life goes down, the claim portion changes, andyou’ll have to keep track of what you’ve claimed.

4.Training costs

When it comes to the cost of educating your workforce,you have to look at the nature of the training to knowhow to claim it. If you have to train your staff on the use ofa new piece of equipment, that becomes part of the capitalcost of the equipment. That training is essentially addedinto the price of the equipment and is amortized over thelife of the equipment. If it’s an employer paying for profes-sional development or skills upgrading, it is considered anexpense to the business and can be claimed as such.

5. Income splitting

If the owner has a spouse that is involved in the business,and is capable of doing bookkeeping, there’s an oppor-tunity for a shop owner to hire their spouse. It gives thatcouple the benefit of income splitting. Rather than theowner earning $100,000 a year which would be taxed ina high tax bracket, both partners can earn $50,000 andpay at a lower tax rate. Any wage you give to your spousemust be of fair market value. You can’t pay someone$50,000 to empty trash bins once a month just becauseyou want to split incomes.

6. Put yourself on the payroll

Getting paid through dividends in the company is great,but there are some advantages to putting yourself on thepayroll as well, even if it’s just a small salary. “Havingyourself on the payroll shows anybody external to yourbusiness that the company can sustain you as anemployee,” says Shellnutt. “That adds value to thecompany, particularly when it comes time to sell.”

Plus, you might find that financial institutions aremore receptive to you if you’re a salaried employee ofthe company. Dividend income fluctuates and issubjective, so they like to see a T4 coming through the

business, with dividends on top of that.And when it comes to taking dividends, remember, you

cannot do it if you have a retained deficit. You have to haveretained earnings.

7. Stay organized!

Probably the biggest incentive to stay organized is the timeand cost savings you’ll enjoy when you send yourdocuments to an accountant.

“If you are bringing your files in the proverbial shoebox, it’s going to cost you a lot of money to have anaccountant or even a clerk go through those records,”says Shellnutt.

As far as bookkeeping is concerned, it makes sense tohave someone on site, organizing the paperwork, day byday, month by month. There is also a strategic benefit tokeeping your numbers up to date. If you wait a year to getyour results back, there’s no way you’ll be able to respondto problems in the business.

If you’re not computerized and CRA ever gets you intheir cross-hairs, you’re going to face an uphill battleproving all your claims. In today’s day and age, hand-written invoices are really unacceptable. In fact, theylook suspicious.

Computer software is inexpensive, and easy to learn.And from a standpoint of management control, it offershuge advantages.

Need some automotive shop software for things likeinvoicing, cost tracking, accounts receivable, accountspayable, and inventory management? You can download aprogram called “Service Writer Express” for free atwww.kinsac.com. It’s basic… but it will get you started.

Needless to say, you should keep records for at leastseven year. That’s the general rule of thumb. On personalincome, CRA doesn’t go back beyond three years unlessthey detect fraud and then they can go back as far as theywant. Just saying.

These are things for employers to keep in mind as they getready for tax season. If number crunching does not comenaturally to you, it is worth seeking the advice of a profes-sional. Not only can they find all the deductions to whichyou’re entitled, but if something is not clear, they can getbetween you and CRA and can help answer questions onyour behalf.

Best of all, during the course of the year, they’ll be ableto read your numbers and suggest ways of improving yourbusiness processes.

You can’t beat the one-two combination of minimizingtaxes and maximizing profits!


4

5

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http://www.worldpac.com/2012

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The use of the Ideal Gas Law is not newwhen it comes to diagnosing evapo-rative system failures.

It’s been in common use since 1999when enhanced evap systems weremandated on all vehicles. Theenhancement was the ability to checkfor leaks… and most manufacturers didthat by employing the Ideal Gas Law.

You remember the Ideal Gas Law,right? It states that there’s a propor-tional relationship between thetemperature and the pressure of a gas ina sealed container. In other words, in asealed evaporative system, as thetemperature decreases, so should thepressure. And as the temperature rises,so will the pressure.

When the enhanced system was firstintroduced, the allowable leaks size was0.040” but by 2002 the allowable sizeleak had been reduced to 0.020”. That’sa pretty small hole. A fuel tank that isthree-quarters full will contain about600 cubic inches of vapour area (in thelines, tank, charcoal canister, valves andother parts). In all of that area, you haveto be able to find and seal a hole the sizeof a pin.

GM’s first attempt at the enhancedsystem worked fairly well at detectinglarge leaks… but it’s not so good at

finding the small leaks.Why? Becauseit’s dealing with a very volatile substance(gasoline) in an enclosed tank that issubject to sloshing, fuel pump action,heat from the exhaust, heat from theroad and even heat from returning fuelif it’s not returnless the system. All ofthese actions have an effect on thepressure inside the fuel tank and theevaporative system.

Want to know what kind of an effectit has? Put a little fuel inside a smalljerry can, tighten the lid, and shake it.Now carefully open the lid you’ll hear

the pressure escape. That pressure wasgenerated by the shaking.

It didn’t take long for manufac-turers to realize that the effects ofmovement, heat, and other factorswere constantly generating false leakcodes. They had to come up with asystem that would eliminate thosefactors and still provide an accurateleak test on the evaporative system.

Well, they knew that the best time totest for a leak is after the engine hasbeen shut off and the vehicle is parked.This is one of the main reasons thatmanufacturers started using the IdealGas Law to look for leaks in the evapo-rative system.

In 2003, when GM engineersstarting using the Ideal Gas Law todetect leaks in the evaporative systems,they called it “Engine Off Natural


TECHNICAL FEATURE

All the conditions have to be right for GM’s evap systems to check for leaks. Knowing the procedure will help you diagnose evap issues.

By Jeff Taylor

Testing One Two


Vacuum” or EONV. It was introducedfirst on light duty trucks and beganphasing it into passenger car platformsin the 2004 model year, with the goal ofhaving all models using the EONVsystem by 2006.

If you’re wondering if the car you’reworking on uses EONV, it can be a littledifficult to tell. That’s because none ofthe original components had to bechanged. EONV even uses the samepurge-and-vent valves. But theengineers at GM changed a couple ofthings to make the system work:

For one thing, they had to providefused B+ power to the vent valve. This isdifferent from the previous hot in runor start modes, to allow the vent to becontrolled by the PCM when the key isoff. You should watch for this duringyour diagnostics. If the vent solenoid hasfailed or the wiring been compromised,it has its own dedicated 10 amp fuse.)

Another change they made involved thediagnostic strategy and the softwareinside the PCM. GM had to change theenabling criteria to allow for a smallleak test to take place. There are manythings that are needed to allow thePCM to run the monitor, but some ofthe highlights that affect the way thatwe perform diagnostics are:• The monitors for codes P0446, P0455,P0496 must run and PASS. This meansthe PCM has checked the integrity ofthe purge and vent solenoids andchecked for a large leak;• A number of other trouble codes thatcould affect the test (IAT, ECT, FTP andothers);• Startup IAT is 4°- 30° C (39°- 86°F);• Startup ECT is less than 30°C (86°F);• The IAT and ECT are within 8° C(15°F) of each other;• There can’t be a refueling event;• There is a minimum engine run timeof 10 minutes;• The vehicle must have traveled at least5K (3 miles);• Fuel level must be between 15 and85%; and• The ECT has to be more than 70°C(158°F) when the key is shut off;

Only if all these requirements aremet will the PCM allow the test to runwhen the key is turned off. The test cantake up to 45 minutes to complete, so agood battery is important.

And the PCM will only allow twoattempted tests per day and must seeseveral tests completed with a FAILstatus and up to 17 hours between tests

before it will mature the code and turnon the check engine light.

So from this we can see that this testwill only run after a cold soak drivecycle. This is to allow the fuel tankpressure sensor to re-zero, and it meansthe vehicle will likely have to stayovernight at the shop to verify therepair. This is important to know unlessyou’re willing to let the customer takethe vehicle and hope that the drivehome meets all the proper criteria toenable the test to run. Remember thatif you perform a repair that requires acode to be erased, it may take four daysfor this monitor to run and PASS. Thisis an especially important consider-ation in areas that use OBDll testingfor emissions.

If all these requirements are meet andthe key is shut off, the PCM will go


Delphi-Canister-With-HC-Sensor

Delphi-Hybrid-Evap-Emissions-Canister-Module that is used on a hybrid.

This is a 1x1x1 (1 cubic inch) piece of wood.The pin is a 0.020 leak the paper clip is the0.040 leak. Show this to a customer to explain what you are up against.

o Three


ahead and start the test, which is done inthree phases: Volatility Test, Phase IPressure, and Phase II Vacuum.

The volatility test determines howvolatile the fuel is. The PCM uses thisknowledge in its algorithms to decide ifthe test can continue or has to beaborted. If the volatility is too high, thetest will be aborted. If it’s moderate, thePCM will change its pressure points tocompensate when it enters Phase I. Andif the volatility is low, the PCM moveson to Phase I without changinganything. During the volatility test thecanister vent is open, so if the pressurein the evap system rises during this partof the test, a FAIL will set.

In the Phase I test, the PCM checkssystem pressure. The PCM commandsthe vent valve to close and it monitorsthe fuel tank pressure sensor (FTP). Ifthe FTP notes a pressure increase thatpasses a calibrated value (calculatedusing temperature and fuel level), thetest passes and everything shuts off. Ifthe FTP senses a vacuum, the test movesto Phase II. But if the threshold pressureisn’t met, the PCM records the pressure,opens the vent valve and monitors thepressure. If the FTP records a decreasein pressure, the PCM will pass Phase I

and move on to Phase II but it will usethe pressures recorded in its pass-failcalculations in Phase II.

Phase II is the vacuum stage of theEONV test sequence. The PCM watchesfor the FTP to reach a threshold vacuumlevel. If it reaches the right level, the test

passes, the vent valve opens, and thesystem shuts down. If the pressurethreshold isn’t meet in Phase I, the PCMwill open and close the vent valve a fewtimes to stabilize the system. (Customersmay hear this clicking if they are near thevehicle while the test is beingperformed. You can tell them its normal).

The PCM will close the vent againand check for a vacuum reading. After aset amount of time, the PCM records thisvalue and will use it in combination withvalues that it recorded in Phase I andmake a calculation. It knows what aperfect pass, and a perfect fail looks like, soit can decide on a fail threshold fromthese values. If the calculated value fallsinto this threshold area the PCM recordsa fail, but remember it needs to see severalreported fails and up to 17 hours betweeneach test before it will set a DTC.

Some late model GM cars, minivansand trucks were very sensitive to powerspikes. This really doesn’t relate muchto an evap problem, until you havecleared the codes and are trying to getthe monitor to run. What wouldhappen is this:

The PCM has seen all the enablingcriteria and is ready to run the test, thekey is shut off by the customer and all iswell until they hit the remote powerdoor locks. This can send a power spikeinto the vehicle that can shut down thePCM. The result is the monitor neverruns. If you’re using OBDII for emissiontesting (or just trying to verify your

repair) this could be very frustrating.The way to watch for this is, after you

have enabled to PCM to perform a key-off evap test, leave your scanner pluggedin and turn off the vehicle. If the test hasbeen properly enabled the PCM shouldstay awake for up to 45 minutes or untilthe test sequence finishes. The fix forthe problem was to replace the PCM.

The importance of a good battery can’tbe stressed enough; if the battery voltagedrops or is too low, this test will not run ormay be aborted. Remember the PCM isgoing to be awake (up to 45 minutes)during this testing period so you will seedata on the scanner if you have it hookedup when the system is performing a test.Also be aware that if you’re doing a repairand the test is running (you may beunaware that it is) and you unplug asensor, you could set a false code.

The use of EONV to test the evapsystem on GM vehicles has eliminateda large number of false codes but it’snot without its pitfalls. If you under-stand what’s happening during this testit can make your diagnostics easier andyou can be more confident on a repairbefore giving the vehicle back to yourcustomer.


Never underestimate the power of a vacuum!This is an example of how the Ideal Gas Lawworks. This tanker was steam cleaned andthen sealed, by mistake. As the insidecooled, the pressure inside was reduced andthe tanker collapsed.

Delphi-Evaporative-Emissions-Canisters can come in manysizes and shapes.

Jeff Taylor is leadtechnician at Eccles AutoService in Dundas, Ont.


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Shad’s Chairman John Vanstone and board member Ray Osika accepting the first Annual Fred Shaddick Community Service Award.

Your continued support of SHAD’s and the almost $4M in donations has had a profound impact on MDC. So much so that MDC has recognized our efforts by creating the Annual Fred Shaddick Community Service Award.Awarded annually, the Fred Shaddick Community Service Award will recognize outstanding contribution in the community.

Won’t you consider joining us in pushing SHAD’s over the $4M mark this year ?

This ad space generously donated by Rousseau Automotive Communication.

Station Creek Golf & Country Club – Stouffville, ON

If you would like to become a sponsor or make a donation to SHAD’s R&R“For the Kids”, please contact one of our board members directly.

Shad’s Board of Directors:John Vanstone, Chairman [email protected] Champagne [email protected] Coulter [email protected] Fazackerley [email protected] Gushie [email protected] Holland [email protected] Osika [email protected] Shaddick [email protected] Stone [email protected] Young [email protected]

Since 1954, Muscular Dystrophy Canada has been committed to improving the quality of life, mainly through donations, for the tens of thousands of Canadians with neuromuscular disorders and leading research for the discovery of therapies and cures. Shad’s R&R has continually supported these efforts since 1973 by donating over $3.8M to Muscular Dystrophy Canada. Now entering its’ 39th year, the automotive aftermarket continues to fulfi ll founder Fred Shaddick’s original mission of “For the Kids”.

Mark your calendars for the 39th Annual Shad’s R&R Golf Tournamenton June 14th with all proceeds to Muscular Dystrophy Canada.












Synthetic oil filter Purolator has developed an oil filtermade specifically for vehicle ownersusing synthetic motor oils in their cars.The Purolator Synthetic features 100-percent synthetic media designed toperform for extended periods of time.http://tinyurl.com/ct-prod-108

Steering and suspensionThe Moog line of steering andsuspension parts from Federal-Mogulhas been expanded by 39 new parts,offering additional coverage for millionsof late-model foreign nameplate anddomestic vehicles.http://tinyurl.com/ct-prod-109

Classic creepers

Snap-on’s standard (JCW60) andstandard adjustable (JCW65) creepersare now available in both black and red.They feature high-density 80-poundfoam padding on an 11-inch by 39-inchsurface reinforced with steel-frameconstruction.http://tinyurl.com/ct-prod-110

Diagnostic and information system

The Snap-on Verdict diagnostic and in-formation system includes a wireless dis-play, scanner and meter that allowtechnicians to view all of their readingsand control the scanner and scope re-motely from the display.http://tinyurl.com/ct-prod-111

Engine leak sealerRislone says winter is thebest time to combat thehavoc that cold weather canplay on a vehicle’s coolingsystem. Its Rislone HeadGasket Fix is a chemicalsolution added directly tothe radiator to permanentlyrepair head gasket and othermajor cooling system leaks.http://tinyurl.com/ct-prod-112

Automotive inspection camera

SPX says the new OTC 3880XAutomotive Inspection Camera featuresa 5.5-millimeter camera, added wireless3.5-inch high-resolution color display,and ability to record images and video. http://tinyurl.com/ct-prod-113

Lift retrofitRotary Lift has intro-duced a retrofit per-formance packagethat enables currentSmartLift ingroundlift owners to step upto the company’snew Shockwave sys-

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Data bus fault finder Snap-on’s new Data Bus Fault Finder(EEFF500) diagnoses scan tool commu-

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Quick strutsTenneco has expanded its line of Mon-roe Quick-Strut replacement strut as-semblies to cover nearly two dozen

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Round-head ratchet

Snap-on says its new 1/4-inch drive 72-tooth round head ratchet (TKN72) is aversatile and durable ratchet that workswell in tight spaces and hard-to-get-atfasteners. It features a compact head andshort handle, which provides greataccess in tight quarters.http://tinyurl.com/ct-prod-124

Brake padsThe Wagner Ther-moQuiet line of re-placement brakepads now includesceramic rear discpad sets for the 2012Fiat 500 and FordFocus. The company

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Lifting pointsThe Automotive Lift In-stitute, Inc. has releasedthe 2012 edition of its“Vehicle Lifting PointsFor Frame-EngagingLifts” guide. The 60-page

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Oil filtersBosch has introduced a newline of spin-on oil filters andcartridge oil filters calledWorkshop Oil Filters.Ninety-seven Bosch Workshop Oil Filtersprovide a combined 98%coverage for do-mestic, Asian and European vehicles inoperation in North Americahttp://tinyurl.com/ct-prod-127

Fluid-exchange machines

Bosch has introduced a new series of au-tomatic transmission fluid, engine coolant,brake fluid, power steering fluid, and dif-ferential fluid exchangers. With ruggedsteel construction, they’re designed towithstand the shop environment, and im-prove fluid exchange efficiency.http://tinyurl.com/ct-prod-128


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Congratulations to Vern Meckel-borg of Auto Ethics Enterprise Ltd.,in Humboldt, Sask. for correctly an-swering our November AutoPuzzle.

B I C Y C L E S E A T S

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I grinned. “It also explains why the insurance company wasn’tinvolved. That would have brought in the Game Warden.”

We soon had the 2002 Dodge Durango figured out. Beefusneeded a new Central Timing Module, or CTM. It controlsthings like interior lighting, the headlights, intermittentwipers, and the door locks.

“We disconnected the battery temporarily to reset themodule,” I explained to Beefus when he came in. “It’s workingright now, but it will fail again – it’s a common complaint.Want me to order up a new one?”

“How much is that gonna cost?” he asked suspiciously. WhenI told him, he nearly leapt out of his boots. “What? You gotta bekidding me! How ‘bout a used one from the wreckers?”

I shrugged. “It’s possible, as long as it came from a truckwith the same options. But it won’t last long, and you’ll have toget it reflashed for the remote door locks to work.”

He snorted. “I can live without them suckers. Where is thismodule anyway? I’m gonna change it myself.”

I sighed. “It’s behind the left-hand driver’s kick panel.” We’dleft the panel off because we knew Beefus would want to see itfor himself.

After paying his bill, Beefus climbed into the cab and began todrive away. I figured we’d be seeing him again; I just didn’t realizehow soon. He only got 10 metres before his headlights startedflickering and some relays began clicking under the dash. Wildexpletives filled the air as Beefus jammed the truck in reverse.

He glared at me through his open window. “Is this some kindof joke, Shambles? Because if it is, I ain’t laughin’” In anger, heaimed a kick at the CTM with his left cowboy boot. Suddenlyeverything returned to normal. Beefus was flabbergasted.

“Y’mean all I gotta do is give this here box a little love taponce in awhile? Heck, that’s easy!” And with that he was gonein a cloud of dust and gravel.

Back inside, Basil was working on a crossword puzzle. “Ineed a six-letter word for ‘without intelligence.’”

“He just drove away,” I said. “With any luck, he’ll nevercome back.”

A few days later, Tooner was reading the morning paper.“Listen to this, Slim. ‘Single vehicle accident blamed on driverinattention.’ It says here local resident B. Rube drove his pickupinto an apple orchard off Simpson Road. His truck was totaled.”

“What was the cause? Bad road conditions?”Tooner chuckled. “Nope. Witnesses say the driver was

driving erratically, and that his headlights were flickering onand off. One lady walking her dog swore he was hollering andkicking at something under the dash as he went by.”

Basil stirred his tea. “Maybe we should have condemned hisvehicle as being unsafe to drive.”

I shrugged. “If you ask me, any vehicle Beefus owns isunsafe to drive – simply because he’s in it.”

continued from page 30

Rick Cogbill is a freelance writerand former shop owner. He lives inSummerland, B.C. WORLDPAC

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Some customers are a real joy. They value their automobiles andare passionate about regular maintenance. Some, it’s rumoured,even have a budget for car repairs. Shocking, I know.

But this wasn’t one of those customers. This was Beefus Rube.“So you gonna tell me what’s wrong with my truck or

not?” Beefus eyeballed me shrewdly, a toothpick jammedtightly between his teeth.

“How can I?” I replied. “All you’ve said is ‘My truck’s broke.’”Beefus rolled his eyes. “Sheesh. And you call yourself a

grease monkey?” He removed the toothpick and rubbed hisnose with the back of his hand. “Okay, here’s the scoop. I go toget in my truck this morning an’ the remote door locks don’twork.” He stabbed the counter with a stubby finger. “Not onlythat, the ‘service 4WD’ light is on.”

If Beefus was expecting sympathy, it wasn’t going to happenanytime soon.

“Why are you driving a Dodge anyway? I thought youwere a Chevy man.”

Beefus looked away and shrugged. “Yeah, well, I had a little

huntin’ accident with my Chevy last fall. The insurancecompany stiffed me, so my brother-in-law sold me this truckreal cheap.” He snorted. “Now I know why.”

“You’ll have to leave it with me, Beefus. I’ll call you when Iknow what’s going on.”

Over morning coffee I broke the news that Beefus had anew truck.

“Hunting accident?” Tooner laughed. “Yeah, you could callit that. Beefus was out deer hunting, only he don’t like thecold. So him and his buddy cruised the logging roads lookingfor game, with their guns loaded inside the cab.”

Beanie’s eyes grew wide. “But that’s against the law!”Tooner nodded. “You got ‘er.”“So what happened?”“A nice buck jumped right out in front of them. Beefus got

so excited that he accidently pulled the trigger and put a bulletright through the floorboards into the automatic transmission.”

Basil chuckled. “No doubt that caused some consternationinside the cab.”


Durango RedneckOne of Slim’s customers gives a whole new meaning to the phrase

“kick-starting” when he gets an intermittent CTM problem.

The Car SideBy Rick Cogbill

continued on page 29



http://www.retailers.winwithmobil.ca


http://www.worldpac.com/2011ct

Canadian Technician March 2012

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