Earl Scheib
Encyclopedia
Earl Scheib was a company which specialized in repainting and collision repair of automobiles, with locations in 23 states in the US. It ceased operations nationwide on July 16, 2010.
and by 1975 had branches in Germany
and England
, all company owned, with Scheib manufacturing his own paint
through a wholly owned subsidiary.
Earl Scheib's paint-coating systems were used by its company-owned paint and collision repair shops. The paint also was sold to original equipment manufacturers and architectural construction firms.
Scheib's policy of one-day service and production line techniques flew directly into the face of state-of-the-art professional Auto Body standards and caused the company to become a national joke at the time.
Scheib has been plagued with a high employee turnover rate due to the demands of attempting to paint up to five cars a day. The company's main criteria in hiring and promoting management trainees is based on sales skills only. Knowledge of auto body repair or painting techniques is not required. Trainees undergo a short training period and are then assigned to their own shops. Managers who failed to increase sales for three successive months are fired, regardless of seniority.
Auto body, painting and prep personnel are represented by Teamsters Unions.
On February 18, 2009, Earl Scheib and Kelly Capital LLC, a private equity firm, announced the signing of the merger agreement. Kelly Capital LLC acquired the company in the second quarter of 2009 following shareholder approval of a merger agreement.
Earl Scheib ceased operations nationwide on July 16, 2010. The corporation will no longer honor its customer warranties. In January 2011 all Earl Scheib locations in Nevada, California, New Mexico were purchased by Earl Scheib Las Vegas LLC, according to the company CEO Arash Hashemi Las Vegas more plans are under way to reopen other locations nationwide. Hashemi stated we started Earl Scheib Las Vegas to ensure that our processes and standards were up to snuff. We redefined Earl Scheib standards for paint jobs, collision repair and spot repair and ensured that those processes are part of the our new system. It included prepping for spot repair, proper color match and blending, denibbing and polishing, etc. We’re checking on those standards and processes, production methods and other variables relating to CSI and net promoter scores. He continued on saying "“ This business is about generating customer satisfaction,” he says. “Our mission is to be recognized by consumers as North America’s body shop for all of their automotive collision repair, body work and painting needs.”
Company history
Founded by Earl Scheib (February 28, 1908 – February 29, 1992) in Los Angeles in 1937 the company grew quickly following World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
and by 1975 had branches in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, all company owned, with Scheib manufacturing his own paint
Paint
Paint is any liquid, liquefiable, or mastic composition which after application to a substrate in a thin layer is converted to an opaque solid film. One may also consider the digital mimicry thereof...
through a wholly owned subsidiary.
Earl Scheib's paint-coating systems were used by its company-owned paint and collision repair shops. The paint also was sold to original equipment manufacturers and architectural construction firms.
Scheib's policy of one-day service and production line techniques flew directly into the face of state-of-the-art professional Auto Body standards and caused the company to become a national joke at the time.
Scheib has been plagued with a high employee turnover rate due to the demands of attempting to paint up to five cars a day. The company's main criteria in hiring and promoting management trainees is based on sales skills only. Knowledge of auto body repair or painting techniques is not required. Trainees undergo a short training period and are then assigned to their own shops. Managers who failed to increase sales for three successive months are fired, regardless of seniority.
Auto body, painting and prep personnel are represented by Teamsters Unions.
Fast Track Management
In 1997 the company devised a "Fast Track" Management training program and recruited college and business school graduates for immediate placement in upper middle management positions, requiring relocation to another state upon completion of the program. Scheibs' corporate office and shareholders were dismayed to find that 85% of those participating in the program resigned upon relocation. After Scheib's death, the company was sold to former college basketball champion Chris Bement and Dan Siegal, who made his fortune in Las Vegas winnings, and other investors. Improvements were made in the quality of paint and a corporate restructure.Restructuring
In 1999, the company began closing branches and selling company owned properties to show a profit to shareholders. The organization has reduced the number of its shops as a result of this practice, with most of its centers in the western States, where rust and corrosion is less likely to be a problem.http://www.earlscheib.com/about.phpOn February 18, 2009, Earl Scheib and Kelly Capital LLC, a private equity firm, announced the signing of the merger agreement. Kelly Capital LLC acquired the company in the second quarter of 2009 following shareholder approval of a merger agreement.
Earl Scheib ceased operations nationwide on July 16, 2010. The corporation will no longer honor its customer warranties. In January 2011 all Earl Scheib locations in Nevada, California, New Mexico were purchased by Earl Scheib Las Vegas LLC, according to the company CEO Arash Hashemi Las Vegas more plans are under way to reopen other locations nationwide. Hashemi stated we started Earl Scheib Las Vegas to ensure that our processes and standards were up to snuff. We redefined Earl Scheib standards for paint jobs, collision repair and spot repair and ensured that those processes are part of the our new system. It included prepping for spot repair, proper color match and blending, denibbing and polishing, etc. We’re checking on those standards and processes, production methods and other variables relating to CSI and net promoter scores. He continued on saying "“ This business is about generating customer satisfaction,” he says. “Our mission is to be recognized by consumers as North America’s body shop for all of their automotive collision repair, body work and painting needs.”