GEARS Buyer's Guide Issue 2015

GEARS TABLE OF CONTENTS FOR THE TRANSMISSION REBUILDING INDUSTRY Tales From The Bench: Repairing What’s Working: Generation IV: The Cottman of Denver and JANUARY/FEBRUARY 2015 Jatco’s JF011E CVT Next Step in Business Thinking Wheat Ridge, Colorado Page 12 Page 38 PHONE (805) 604-2000 Page 48 Publisher Dennis Madden SPECIAL INTEREST & TECHNICAL Managing Editor Rodger Bland Technical Director Lance Wiggins 4 LET'S PLAY BALL: Not Just Another CVT Advertising Frank Pasley — by Lance Wiggins Senior Designer Jeanette Troub Graphic Artist Aurelio Peña 12 TALES FROM THE BENCH: Repairing Jatco’s JF011E CVT — by Jarad Warren Contributing Editors: Steve Bodofsky Jim Cathcart 22 THE WORD ON THE STREET: Introducing The New General Motors 8L90 Art Eastman Thom Tschetter — by Mike Souza Jesse Zacarias 30 Simplifying Solenoid Electrical Codes ATRA Technical Staff: — by Jesse Zacarias Rolando (Rolly) Alverez Bill Brayton Mike Brown Keith Clark 34 STREET SMART: Pieces of Eight Rob Faucett Pete Huscher — by Mike Brown Mike Souza Jarad Warren 38 WHAT’S WORKING: Generation IV: The Next Step in Business Thinking Seminars & Convention Mgr Vanessa Velasquez — by Dennis Madden The views expressed in this publication should not necessarily be interpreted 42 UP YOUR BUSINESS: You Just Went Through It as the official policy of the Automatic Transmission Rebuilders Association (ATRA). — by Thom Tschetter Publication of product information or any advertising does not imply recommenda- tion by ATRA. 46 Where’s the Problem? — by Jim Cathcart GEARS , a publication of ATRA, 2400 Latigo Avenue, Oxnard, CA 93030, is published for the betterment of the transmission industry and is distributed 47 Ten Reasons Why the SBA May Decline Your Buyer’s Loan ten times per year. No part of this issue may be reproduced without prior written — by Art Eastman permission of the publisher. GEARS is distributed to members of the transmis- sion industry in the United States, Canada, ATRA Members in Mexico & Europe, 48 SHOP PROFILE: Cottman of Denver and Wheat Ridge, Colorado and related automotive industry firms and individually. Send changes of address — by Steve Bodofsky to GEARS in care of ATRA. Subscriptions are available by contacting GEARS in care of ATRA. 54 ATRA'S 2015 GEARS BUYER'S GUIDE LISTING Advertisers and advertising agencies assume full liability for all content of adver- tisements printed and also assume full responsibility for any claims arising there- from against the publisher. The publisher reserves the unqualified right to reject any advertising copy as it deems appropriate, with or without cause. GEARS is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance, is required, the services of a competent profes- sional person should be sought from a Declaration of Principles jointly adopted by a Committee of the American Bar Association and Committee of Publishers. GEARS also welcomes articles submitted by members of the industry. GEARS considers all articles for publication that contribute positively to the welfare of the transmission industry, and reserves the right to edit all articles it publishes. If you would like to submit an article to GEARS, include background information about the author and a telephone number where he/she may be reached. If you want submissions returned, enclose a self-addressed, stamped envelope. Editorial and Business Offices DEPARTMENTS 2400 Latigo Avenue, Oxnard CA 93030 2 FROM THE TECH DIRECTOR Phone (805) 604-2000 Training… It’s No Longer a State of Mind; It’s a Habit! Fax (805) 604-2006 — by Lance Wiggins www.gearsmagazine.com www.atra.com 110 POWERTRAIN INDUSTRY NEWS 114 SHOPPERS AND CLASSIFIEDPOSTMASTER: Send address changes to GEARS, P.O. Box 16118, 120 LIST OF ADVERTISERS North Hollywood, CA 91615-6118 Publications Mail Agreement No. 40031403 Return Undeliverable Canadian Addresses to: Station A, PO Box 54, Windsor, ON N9A 6J5 Email: [email protected] Issue #191 Printed in U.S.A. Copyright ATRA 2015

FROM THE TECH DIRECTORTraining… It’s No Longer aState of Mind; It’s a Habit! by Lance WigginsLast January I wrote an article members.atra.com called Training… It’s a State this year. That’s right, another first for of Mind. In it, I articulated the ATRA: ten issues of GEARS. My guys up to date and make modifications if and several outside authors kicked it needed. Our technical database contin- ues to be the best way to report on thereasoning behind the thought process into high gear last year and we have most common failures, which we usethat so many of us go through regard- more on the way for this year. for bulletins, quick fixes, Expo presen-ing training. If you went to the 2014 Expo, you tations, and our seminar book.Let’s face it: Not everyone’s excit- may have seen the ATRA Expo app. One of the most dramatic chang-ed about training. And no wonder: Wow, what a cool tool to have during es is from the Knowledgebase (KB)You get home from a long day’s work, the seminars and on the show floor! searches performed. The Search bar wehands hurt, back sore, hungry, and It’s available for downloaded for the installed at the end of 2013 has been thein need of a shower. But wait, lookie Android, Windows, or Apple smart- easiest way to find bulletins and infor-there, homework! Just what you were phones. This was our first app, but not mation from the repair center.hoping for! our last: We have others in the works. In January of 2013, we launchedWe realize there’s much more than These apps will make your job easier our new testing and certificationjust being tired when you come home. and allow you to be more efficient in program. Since then, we’ve had aboutThere’s family, friends, weekend trips, the shop. 10 master’s certifications completed,first day of fishing, hunting, or summer. We’re also collaborating with AVI and over 250 other certifications in theThese are also very important. (Automotive Video Inc) out of Florida, Diagnostician, Rebuilders, and ChassisSo we decided a couple things a company that produces training vid- technician programs.were going to happen last year and we eos for the auto repair industry. We just How can you start to take advan-worked very hard to make them hap- completed the 722.9 rebuild training tage of all this training? It’s easy!pen. First, we created a way to bring the video; look for it soon! We’re planning Consider our online webinars: Theretraining to you, on your terms. Second, five videos for 2015 to complement our are about 275 shops that sit in on thosewe made it available if you missed it. rebuild books. webinars every two weeks. That worksHere’s what we did… We had 18 speakers for the 2014 out to about 1000 attendees. We haveAs we finished up 2014, we Expo. And, if you were there, you’ll no about 3500 attendees at our annualexpanded and generated more techni- doubt agree that this was, by far, one of seminars and over 600 attendees in ourcal material for our industry than ever the best shows ever! It was easily one technical sessions at the annual EXPO.before. We inundated the industry with of the best lineups we’ve ever had. You can be one of those too… all itarticles, bulletins, webinars, training We had three hands-on shows takes is desire.through T&C, seminars, Expo, video on Thursday: Bill Brayton and John They say if you do somethingpresentations, books, and specialized Parmenter were tearing transmissions consistently it becomes a habit. Sometraining seminars. down for hands-on research. Bob habits, like smoking, are a bad thing;We scheduled 20 webinars last year Warnke did a presentation with John they cost you money and wreck yourand we’re scheduling 20 more for 2015. Parmenter that showed off vacuum test- health. But a habit isn’t automaticallySeal Aftermarket Product, TransTec, ing. We filmed the show and broadcast a problem that you have to eliminate.and ETE sponsored our webinars last it on the big screen. If you’d like to get Some habits can be valuable assets.year. Their support is generally why a taste of what you missed, check out Those are the ones you want to nurturethose webinars don’t cost you a cent. these web pages: and develop.Our seminar book for 2015 will http://vimeo.com/user16124267/ So start off 2015 by embracingbe over 270 pages of up-to-date fixes review/111848350/dcc3c2bc87 a new habit: Take training out of theand includes some of the latest factory https://vimeo.com/user16124267/ things you think about doing and turntraining. It’s this type of information review/111879078/50deb52204 it into something that you just auto-that keeps you in the game and gets Here in the Technical department, matically do. It’s the best way to keepthose vehicles out the door. we use an inter-departmental chat sys- yourself sharp and up to date for theYou may have also noticed an tem between Tech and membership. road ahead.additional issue of GEARS at your shop This allows us to make sure shops are2 GEARS January/February 2015

THE NAME OF THE GAMEIS FINDING THE RIGHT PART.With FordParts.com, a simple VIN grants you 24-hour accessto the exact parts you need. And, while you’re there, you’llfind it’s the fastest, easiest way to get assembly diagrams,shipping and delivery options, business tools and so muchmore. No matter what your name is, let VIN find the right part.So get cleared for access.

Not Just Another CVTLET'S PLAY BALLN t Just AnotherCVT by Lance Wiggins members.atra.comApair of new transmissions reverse gear ratio is 1.714:1. RPM, torque, load, ABS, etc.) Sensors were introduced in the 2014 The two-step gear ratio is con- include: Chevrolet Spark (C Body):The CVT-7 and 1ET35. We’ll take a trolled by the addition of the auxiliary • enginelook at the details of each of them. portion of the transmission. This allows • primary, secondary, and output for using smaller pulleys, reducing the The CVT-7 (RPO M4M) is manu- overall length by 10% and the weight speedsfactured by Jatco Corporation (known by 13%. The new pulley size allows • line pressureas a model APO by Jatco) and it’s also the pulleys and belt to be repositioned • transmission oil temperatureused in some Nissan models (JF015E). in the case, reducing friction loss byUnlike most other CVTs on the market, 30% because the oil isn’t being agitated …and an inhibitor switch. Outputsthe CVT-7 is a two-step unit, designed as much. include pressure control and engineto provide improvements in fuel econo- torque request via CAN.my and performance when compared to A dedicated transmission controllera conventional CVT. sits under the driver’s side of the dash, Fluid Level and Type near the brake pedal. Like other TCMs, The gear ratio of the CVT is it must be programmed if replaced. The transmission has a stand pipeexpanded with an auxiliary gearbox, for checking fluid level; there’s no dip-which is a planetary gearset attached to The inputs to the controller are stick even though it has a dipstick tube.the output pulley. The two forward gear carried on the CAN data bus (engine The dipstick tube provides a fill pointratios are 1.821:1 and 1.000:1 and the for the transmission.4 Check the fluid level at 122ºF (50ºC) with the engine running, in park, GEARS January/February 2015



Not Just Another CVT Figure 1on level ground. Remove the Figure 2 Oil Pumpstand pipe plug and look for ATFto drip from the stand pipe: Clutches and Brakes The CVT-7 uses an off-axis, chain- driven, vane-style pump. • If nothing comes out, you’ll One drive clutch and two brake need to add fluid. clutches are used. The low brake and Auxiliary Gear Box high clutch apply in D and M ranges • If fluid rushes out, the unit and are controlled based on the gear The gear box consists of a plan- is overfilled: Allow the ratio required. The reverse brake only etary gearset, and the high, low, and excess fluid to drain. applies in reverse. reverse clutches/brakes. • When the fluid level is cor- GEARS January/February 2015 rect the fluid should drip from the stand pipe. The fluid is CVTF I GreenFluid, GM part number 19260800.Fluid capacity is 6.21 qts (5.88L).Line Pressure This unit doesn’t have apressure tap. The only way tocheck line pressure is with a scantool. Normal line pressure: 1.2Lengine 72.5 PSI at idle; 652-725PSI at stall. 1.0L engine 72.5 PSIat idle; 620-693 PSI at stall.Pulleys Each pulley consists of onefixed sheave and one moveable sheave.The pressure applied to the primary andsecondary pulley pistons determinesthe ratio and torque capacity by vary-ing the size of the two pulleys. Pulleysize and the ratio available from theauxiliary gear box planetary systemdetermine the over-operational 7.3 ratiospread (figure 1).6



Not Just Another CVT • Primary Solenoid: Controls the • Secondary Pressure Sensor: A primary pressure control valve variable pressure sensor that cre-Reduction Gearset (N/H solenoid) ates a signal based on the pressure(Counter Gears) applied to the secondary pulley • Low Brake Solenoid: Controls the piston Like other transmissions, the reduc- operation of the Low Brake (N/Ltion gearset transmits power from the solenoid) • High Clutch Oil Pressure Switch:transmission section to the final drive. Signals whether oil pressure isThe counter gear ratio varies depending • High Clutch and Reverse Brake being fed to the high clutchon the engine. The 1.0L engine uses a Solenoid: Controls the operation1.178:1 ratio while the 1.2L engine uses of the high clutch and reverse ROMa 0.967:1 ratio. Both applications use a brake. (N/H solenoid)3.882:1 final drive ratio. The CVT-7 uses a ROM (Read • TCC Solenoid: Controls the TCC Only Memory) box mounted to theValve Body, Solenoids, control valve (N/L solenoid) valve body area. It stores baseline cali-Sensors, and Valves bration comparative data for the sole- • Line Pressure Solenoid: Controls noids and can only be replaced with the The valves, solenoids, and sensors the pressure regulator valve (N/H valve body assembly.used by the CVT-7 include (figure 2 solenoid)and 3): • Fluid Temp Sensor: A thermis- • Control Valve: Controls oil pres- tor that creates a signal based on sure from the pump to feed the transmission fluid temperature rest of the valve body and control systems Figure 3 • Pressure Regulator: Controls line pressure • Torque Converter Regulator: Controls the pressure within the torque converter • Torque Converter Clutch Control Valve: Controls the pressure to the TCC solenoid • Pilot Valve: Controls pressure feeding each solenoid • High Clutch/Reverse Brake Switching Valve: Controls when pressure goes to the high clutch or reverse brake • Manual Valve: Determines gear range based on shifter position • Primary Pressure Control Valve: Controls pressure to the primary pulley to control primary pulley operation Figure 48 GEARS January/February 2015



Not Just Another CVTAdaptive Learning Reset Figure 5 to the drive motor gen- erator power inverter Like other transmissions, the mode switch (IMS); a temperature sen- module.CVT-7 uses adaptive learning to sor; a high-voltage electric auxiliaryimprove transmission operation. The fluid pump; and the housing (figure 5). The drive motorreset process synchronizes the trans- position sensor, ormission ROM to the TCM calibration. The hydraulic system uses an elec- resolver, contains aYou’ll need to reset the adaptive learn- tric auxiliary fluid pump motor assem- drive coil, two drivening values during any of these condi- bly located inside the transmission for coils, and an irregularlytions: cooling and lubricating rotating compo- shaped metallic rotor. nents. This system consists of a gerotor- • TCM was replaced or repro- type pump; an electric, 3 -phase, 360- The metallic grammed volt, high voltage pump motor; a wiring rotor is mechanically harness; and a control module. attached to the shaft • Internal repairs that could affect of the drive motor transmission operation The control module is located generator. When the under the hood, inside the drive motor vehicle is on, the drive • Transmission was replaced generator power inverter module. The motor generator power To reset the adapts, use a scan tool transmission fluid pump operates under inverter module out- low pressure and will only run when the puts a 5 VAC, 10 kHzand select the “Transmission Adaptive transmission is out of park or neutral excitation signal to thePressure Reset” function. This process and the module detects vehicle speed. drive coil. The drivewill take about 10 seconds (figure 4). coil excitation signal The drive motor is a permanent creates a magnetic Another transmission available for magnet, 85 kW peak-power AC motor, field surrounding thethe Chevrolet Spark (C Body) is known and is controlled by the power inverter two driven coils andas the 1ET35 (RPO MME). It’s an elec- module. Drive motor speed is controlled the irregularly shapedtric drive transmission. and monitored by a resolver-type posi- rotor. tion sensor (like the 2ML70). The drive The 1ET35 is a fully automat- motor generator power inverter module The drive motoric, front wheel drive, variable-speed, monitors the angular position, speed, generator power invert-electronically-controlled transmission. and direction of the drive motor based er module then moni-It consists of one 85kW, 360-volt, on the signals from the position sensor tors the two driven coil3-phase electric drive motor; one plan- circuits for a return signal. The positionetary/differential gearset; an internal of the irregular shaped metallic rotor causes the magnetically-induced return10 signals of the driven coils to vary in size and shape. A comparison of the two driven coils’ signals allows the motor control module to determine the exact angle, speed, and direction of the drive motor. Fluid The 1ET35 uses Dexron VI HP, GM part number 19300536. The fluid capacity is 4.4 qts (4.2L). Lately it seems as though there’s a new transmission being introduced every day. But a careful examination of the details shows that these new trans- mission aren’t all that different than those you’ve already seen. Once you identify the details, the rest isn’t all that difficult to understand… or repair. Portions of materials contained herein have been reprinted with permission of General Motors Corporation, Service Technology Group Agreement # 061O228. GEARS January/February 2015



Repairing Jatco’s JF011E CVT TALES FROM THE BENCHRepairing Jatco’sJF011E CVT byJaradWarren members.atra.comB y now, most of you have run into Figure 1 the Jatco Continuously Variable Transmission, or CVT. Getting GEARS January/February 2015the parts is becoming less of a problem,and bearings, solenoids, and steppermotors are now available. The Jatco CVT comes in manydifferent makes and models and itisn’t going anywhere soon. So, if youhaven’t already started, now’s the timeto learn to rebuild this unit. In this article we’re going to goover a few of the issues with the JatcoCVT including the wear areas to lookfor to rebuild this transmission suc-cessfully.Engine Stalls onEngagement A car comes into your shop. Thecustomer says the engine stalls whenyou put the transmission in gear. Acode scan reveals that it sometimesstores code P0744 in memory (TCCsolenoid or valve function). To keep it simple,the lockup solenoids have multiplefunctions to controlengagement feel and lockup operation.12

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Repairing Jatco’s JF011E CVT Figure 2 Nissan has a TSB for this code that Figure 3 even though there doesn’t appearsuggests replacing the valve body. But to be any electrical problems inthat isn’t always what’s needed to fix Here are the conditions necessary the circuit.this problem. to set code P0744: • Transmission Control Module14 • Torque converter can’t lock up GEARS January/February 2015



Repairing Jatco’s JF011E CVT Before performing any further diagnosis, alwaysverify the complaintand check fluid level and condition. (TCM) detects irregular values Vacuum test at with slip rotation speeds. the red shaded • There’s a big difference between engine speed and primary speed areas. when TCM lockup signal is on. The code definition states that Figure 4P0744 can be caused by an open orshorted wire to the lockup select sole- • TCC control solenoid and should operate around half an ampnoid valve or a mechanical failure, Valves (figure 2, pg. 14) to one amp. This is a normally-closed,such as the control valve sticking or • Lockup control valve and sleeve on/off style solenoid.improper solenoid operation. But prob- • Select switch valvelems aren’t limited exclusively to these • TCC regulator valve The TCC control solenoid shouldareas. have 3 to 9 ohms resistance and should Before performing any further Checking the Solenoids operate around one amp. This is a nor-diagnosis, always verify the complaint mally-closed, pulse width modulatedand check fluid level and condition. The lockup select switch solenoid solenoid.And check scan data to make sure the should have 15 to 30 ohms resistancerange switch and speed sensor are oper- GEARS January/February 2015ating correctly. A major trap when diagnosing thiscondition is that the scan data can bewrong. Some scan tools have shownfluid temperatures around 100ºF (about55ºC) higher than it actually is. Alwaystry a different scan tool to confirm yourreadings. A second trap is when you put thetransmission in gear: The TCC controlsolenoid and lockup select solenoidwill change states on engagement. Thisis normal and isn’t causing the engineto stall. The TCC control solenoid controlsthe lockup control valves and also regu-lates forward and reverse engagements. The lockup select switch solenoidcontrols the select switch valve, whichdiverts fluid between the lockup andselect control valves. To keep it sim-ple, the lockup solenoids have multiplefunctions to control engagement feeland lockup operation. Here’s where you need to look fora problem: Solenoids (figure 1) • Lockup select switch solenoid16



Repairing Jatco’s JF011E CVT Vacuum test at the red shaded areas. Figure 5Checking the Valve Body the bore freely. downstream for clutch regulation. Assuming the converter and oil Circuit pressures for the primary and Check the lockup control valve secondary pulleys range from 72 toand sleeve (figure 2, pg. 14). This is circuits are working properly, checking 870 PSI.where most problems occur. The sleeve these valves and solenoids will usuallytends to wear and the valve sticks in reveal the source of the engine stalling The clutch pressure regulator valvethe sleeve. There are aftermarket solu- on engagement. provides the supply pressure necessarytions available to replace this valve and for the forward and reverse clutches,sleeve. Regulation Issues and downstream for TCC regulation. The circuit pressures for the forward The TCC regulator valve is also The pump in this transmission can and reverse clutches range from 15 tois a high wear bore (figure 3, pg. 14). produce up to 1000 PSI. The job of the 218 PSI.If this valve is worn, it causes torque pressure regulator valves is to lowerconverter clutch to lock up too quickly pressure to a usable range for each The TCC regulator valve providesand may also cause the converter clutch circuit. This is where this transmission supply pressure necessary for the TCCto slip or not lock up. operates a little differently than most and lube/cooler circuits. Circuit pres- other transmissions. sures range from 0.0 to 145 PSI. Check the select switch valve fornicks, burrs, or worn areas. See if the The line pressure regulator valve The solenoid regulator valve’s jobvalve strokes all the way in and out of provides supply pressure to the ratio is to provide supply pressure to the control valve, secondary valve, and solenoids to operate the transmission.18 GEARS January/February 2015



Repairing Jatco’s JF011E CVT Figure 6 The Jatco JF011E uses a high-pressure, dual-working, vane-style pump. See figure 6. In the middle valve body, you can vacuum test the solenoid regulator, clutch regulator, and the lockup control sleeve for wear (figure 4, pg. 16). In the lower valve body, you can vacuum test the TCC regulator, second- ary regulator, and the main regulator valve for wear (figure 5, pg. 18). Remember, when vacuum testing, keep a log of your test results so you become familiar with what’s normal versus what’s not. There are aftermar- ket repair kits for most of these valve bores. The Pump The Jatco JF011E uses a high-pres- sure, dual-working, vane-style pump (figure 6). The filter is connected direct- ly into the suction side of the pump. As the chain drives the pump, it draws fluid in on each side of the rotor. The high pressure fluid runs out the other side of the pump through two ports into a combined chamber. From there, oil pressure is routed to the flow control and pressure regulator valves.20 GEARS January/February 2015

A good visual Figure 7 inspection of the valve and its bore 21 will usually reveal any signs of wear. To change ratio, the stepper motormoves the ratio control valve. The ratiocontrol valve controls oil flow to eachpulley. Large volumes of oil are neededto change the ratio; the greater the ratiochange the more oil needed to movethe pulley. Why is this important? Keepingthis transmission running properly is allabout volume and pressure. The job ofthe flow control valve is to control oilvolume when needed. When the pulleys change posi-tion, the pressure and volume of oilincreases; if the flow control valve isn’tworking correctly, the pressure and vol-ume will be low. The flow control valve has pumppressure on one end. When there’senough force on the valve, it opens,exhausting oil to the suction side. Whenthe ratio changes and volume is need,the valve closes and directs more oil tothe pulleys. You can vacuum test the flowvalve and bore by applying a test plateto the filter inlet port and plugging offthe other port (figure 7). A good visualinspection of the valve and its bore willusually reveal any signs of wear. When working on the Jatco CVT,always remember that there are a fewtraps in the temperature sensor readingon some scan tools, and the TCC con-trol and lockup select solenoids changestates on engagement. Pay attention to the wear in regu-lation valve bores and the pump flowcontrol valve. This transmission is different thanmost others, but with a little under-standing of common wear areas andhow it’s controlled, you can rebuild itwith confidence. Special thanks to PerfectionPlus Transmission Parts, in Portland,Oregon, for the use of this core to helpmake this article possible.GEARS January/February 2015

Introducing The New General Motors 8L90 by Mike Souza THE WORD ON THE STREET members.atra.comINTRODUCINGTHE NEWGENERAL MOTORS8L90 Figure 1General Motors is introducing the EPA-certified, 30-mile-per-gallon One of the main its new, 8L90 RPO code (MPG) highway fuel efficiency rating reasons the 8L90 is M5U in the 2015 Corvette category. The earlier 2014 Stingray much lighter is theZ06 (Stingray) equipped with a equipped with a 6L80 transmission has use of magnesiumsupercharged 6.2L LT4 V8 engine. an EPA rating of 16 MPG in the city and 28 MPG on the highway, with a castings for the This new, 8-speed, automatic combined rating of 20 MPG. The 8L90 clutch pistons andrear wheel drive transmission, with its improves the Stingray’s efficiency up to“squashed” torque converter and one- 5% versus the 6L80, with a steeper first valve body.piece, die-cast aluminum case with an gear ratio to improve launch capability.integral bellhousing, was developed in GEARS January/February 2015house (figure 1). The 8L90 transmission The transmission controller ex-is eight pounds lighter with the same ecutes commands at 160 times peroverall size as its 6-speed predecessor, second, providing wide-open-throttleallowing it to fit in the same space. upshifts up to 0.08 seconds faster than the Porsche 911 equipped with a Direct Its new overall ratio changes will Shift Transmission (DCT).place the new Corvette Stingray into22



Introducing The New General Motors 8L90 Figure 2 Sixth gear is 1:1 direct whileseventh and eighth are overdriven at0.85:1 and 0.65:1 (figure 2). It hasa five-clutch arrangement and a 738pound-feet rated torque capacitycapable of handling an estimated 635pounds of torque. Built in the GM Toledo, Ohioplant, the 8L90 will also becomeavailable in the Cadillac and other rear-wheel-drive models as an upgrade;for now the 6L80 transmission is thestandard option. This transmission’sbeta hardware, although available in2014, was delayed during the globaleconomic recession for one year andreplaced with the Aisin TL-80SN eightspeed in the 2014 Cadillac. The 8L90 is equipped with four,close-coupled planetary gearsets, twobraking clutches, and three drivingclutches. The driving clutches arelocated in front of the geartrainto minimize the oil feed distance(figure 3). Figure 324 GEARS January/February 2015



Introducing The New General Motors 8L90 Figure 4 The 258-millimeter torque with one discharge per revolution, The 2-3-4-6-8 and 4-5-6-7-8-Rconverter is based on the 6-speed which serves as two pumps in one small clutch drums have the same type blindtransmission, modified to use an space. It supplies a high flow rate when spline as the 6L80 transmission (figuresoff-axis fluid pump. This moves the the demand is needed by recirculating 5 and 6). In addition, the solenoidpump away from the center of the the oil through half the pump at a time. identification and strategy is similar tobellhousing, where it was on the 6L80 This reduces pump pressure loss and what Ford is doing with the 6R140W,transmission. The 8L90’s pump is improves efficiency. also known as the Torqueshift 6.located lower in the case, inside thevalve body (figure 4). One of the main reasons the 8L90 A part unique number (PUN) is is much lighter is the use of magnesium located on the valve body and solenoids The new, small, magnesium, castings for the clutch pistons and and a transmission unique numberbinary, vane-type pump has two inlets valve body. (TUN) is located on the case (figure 7). Figure 5 Figure 626 GEARS January/February 2015



Introducing The New General Motors 8L90 PUN On Valve Body PUN On SolenoidsThe part numbers identify the solenoidunique performance characteristic data, TUN On Casewhich is stored in the transmissioncontrol module (TCM) as part of Figure 7the TIS2 Web Service ProgrammingSystem (SPS). GEARS January/February 2015 If you change the transmission,valve body, solenoids, or TCM duringa repair, the unique performancecharacteristic data must be downloadedfrom the web server and reprogrammedinto the TCM for the system to functionat maximum efficiency. You can reprogram the solenoidcharacterization using capable laptopsoftware to access the TIS2Web ServiceReprogramming System. You can alsoreprogram the solenoid characterizationto refresh the unique performancecharacteristic data in the TCM.Here’show: Document the new part uniquenumber (PUN) or the transmissionunique number (TUN) as required. Log into the TIS2Web/SPS website and enter the vehicle identificationnumber (VIN). Select transmission control moduleprogramming. Select the applicable serviceprocedure and provide the TUN orPUN required. The system will read the VINfrom the ECM using GM’s MultipleDiagnostic Interface (MDI) and thenretrieve the applicable data tree throughthe internet. The data tree accesses theoriginal characterization data so it canbe updated with the new componentinformation. The system acquires thecharacterization data for the newPUN/TUN and updates the genealogytree. It then updates the TCM withthe correct solenoid characterizationdata and updates the web with the newgenealogy strategy. That’s about all for now. So staytuned because you can be sure thatyou’ll see future articles, bulletins, andseminar information on this new GM8L90 transmission in the months ahead. Portions of materials contained herein havebeen reprinted with permission of GeneralMotors Corporation, Service Technology GroupAgreement # 061O228.28



Simplifying Solenoid Electrical Codes by Jesse Zacarias Valve Body Pro Research and Development www.valvebodypros.comDealing with solenoid electrical RY1 Transmission Control Relay problems sometimes can be confusing, especially when you C4 11 10 8 6 4 2 1 18read the possible causes on the factorydiagnostic tree. LP LR/LU UD 2C MS 4C OD For example, on a code P0755 for Figure 1a 545RFE, which is described as a 2Csolenoid circuit, the possible causes are When you turn the ignition on or solenoid. If all the solenoids’ circuitsaid to be one of these conditions: start the engine, the PCM provides tests are approved, the PCM will voltage to the transmission control keep the transmission control relay • 2C solenoid control short to relay through pin 18. The transmission energized; from there it’ll run the control relay, represented by RY1 in integrity test periodically. other circuits the drawing, is grounded to the body; this causes the relay to close, which, in If the test fails on any of the • 2C solenoid control circuit open turn, provides system voltage to all of solenoids, the PCM will de-energize • 2C solenoid short to ground the solenoids. the transmission control relay, which • Transmission solenoid assembly cuts off the supply voltage to the • Power control module (PCM) Then the PCM runs a solenoid shift solenoids and puts the vehicle in integrity test by grounding each shift failsafe mode. The diagnostic procedure providedisn’t very helpful. GEARS January/February 2015 Let’s simplify things a little. Withthis in mind, I’ve redrawn the solenoidelectrical circuit (figure 1) to keep itsimple and easy to understand.30

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Simplifying Solenoid Electrical CodesLet’s apply this information to a Let’s take a closer look using2004 Dodge Ram 2500 4x2 with a If the test fails on any of a one-to-one scale (figure 3). At545RFE and code P0755. This truck cursor 1, both the OD solenoid (lightwas brought in after the technician the solenoids, the PCM will blue trace) and the 4C solenoidreplaced the solenoid pack and the (green trace) passed the integritycode persisted. de-energize the transmission test, since both dropped to 0.54V Since this is an electrical when grounded. But the 2C solenoidcode, you’ll want to check both control relay, which cuts off failed the integrity test since thethe voltage supply and ground at voltage never dropped; it remainedthe same time. By backprobing the the supply voltage to the shift at 12.29V.solenoid in question, in this case This test proved there were nosolenoid 2C at the PCM connector solenoids and puts the vehicle open circuits on the 2C solenoidC4 pin 6, and backprobing any other circuit from the C4 connector to thetwo solenoids on the solenoid pack in failsafe mode. transmission control relay, becausefor reference, in this case solenoids system voltage was there when theOD and 4C, you can begin the test relay closed.Channel 1 (yellow trace) shows the 2C solenoid control And there was a good ground at the PCM becauseat C4 connector pin 6; channel 2 (green trace) shows the 4C the solenoids that did pass the integrity test dropped tosolenoid at pin 2; and channel 3 (light blue trace) is the OD 0.54V (540mV). That leaves only the driver inside thesolenoid at pin 1. PCM, represented by the S4 on the drawing, as neverThe scope is grounded to the battery to provide a good switching closed.ground source. Figure 2 shows the signal zoomed out 16x to We replaced the PCM, reprogrammed the Vehiclereveal the whole 16 seconds. Identification Number (VIN) and ran the test again (figure 4); this time all three solenoids passed the integrity test. Cursor 1 shows the 2C solenoid integrity test and cursor 2 during the OD and 4C solenoid integrity test. Figure 2 Figure 4 Ignition turns on at about two seconds; the engine started As you can see, this test procedure can help youat cursor 1 and you can see the PCM run three integrity diagnose future solenoid electrical codes easily and withouttests on the solenoids before it finally went in failsafe mode the confusion of the manufacturer’s diagnostic tree.because solenoid 2C failed to pull to ground. Figure 3 Jesse Zacarias is a consultant for Snap-on and32 part of the Research and Development Department of Valve Body Pro. GEARS January/February 2015



STREET SMART by Mike BrownPieces members.atra.comof EightHave you ever seen a front Figure 1 torque, so, after replacing the drum for drum blown apart like this the second time, I asked the technician (figure 1)? I hadn’t either… with the transmission, other than to put a gauge on it before shiftinguntil recently. putting more power behind it. through the gears. This transmission had been rebuilt When the truck showed up at Wow! The transmission built uptwice at two different shops before shop three, it had no 3rd or reverse. 200 PSI at idle, and rose over 320 PSIit showed up at shop number three. The front drum was blown apart, but at stall. Not bad… if it were a TH400That’s when I got involved with it. everything else in the transmission with a Trans brake. But on a 48RE it looked good. A nice, easy fix, right? was a recipe for disaster. The vehicle was a 2003 DodgeRam 3500 5.9 diesel. It had been Not so much: It blew the drum The pressure at the accumulator“chipped,” which had nothing to do apart again while it was still on the lift! tap should only be 50-60 PSI34 That type of failure indicated the GEARS January/February 2015 problem wasn’t due to horsepower or

This was missing Figure 2(3.45–4.12 Bar) at idle and 95-100 Easy install. No comebacks.PSI (6.55–6.90 Bar) max at stall. Thatexcessive pressure is what blew the It has a nice ring to it, doesn’t it?drum apart. (Unless you like doing things the hard way. Twice.) Since there had been at least twoother sets of hands on this unit, we $20 GEAR SET REBATE! There’s only one part that was engineered,decided not to try any further valve built and validated to the exact vehiclebody modifications; instead, he ordered Purchase an 8.6 gear set. Get a $20 Visa card. manufacturer’s specs.a new valve body right from the dealer. Visit www.DemandAAM.com for full details. There’s only one part that was made to fit the With the new valve body installed, first time. It’s the only one you can trust tothe pressure came right down to where be the authentic original equipment for lightit should be. And, even with the added trucks manufactured by the Big Three.horsepower, the transmission workedterrific. In fact, the owner came There’s only one original.back to the shop to tell them that thetransmission had never worked better! Promotion applies only to 8.6 gear sets for axle ratios of 3.73, 3.42, or 4.10. Products must be purchased between November 1, 2014, and March 31, Once we had the trans fixed, I sent 2015. Rebate form, original UPC label from box and original sales receipta call tag to get the old valve body so I must be sent to AAM within 30 days of purchase. Offer good on purchasescould check it out and figure out what made within the USA and Canada only. All other parts are excluded.was wrong with it. Demand the original. When the valve body showed upat ATRA, I tore it down to see what www.DemandAAM.comhad been done to it. No one had doneanything in the way of updates or Axle Components | Driveshaft Components | Repair Kitsrepairs. It was just plain worn out. 35 And this was one of the worstvalve bodies I’d ever seen. Every borewas worn out. It had a replacementmanual valve and pressure regulatorvalve in it. No repairs whatsoever, noholes drilled, no springs replaced. So what was wrong with it? Forstarters the pressure regulator valvewas severely worn out, compound thatwith a missing boost valve plug andyour recipe was complete (figure 2).That’s what allowed the pressure to goso high. Next I decided to perform avacuum test to see what kind of wearwe were dealing with. And there wasplenty of wear to go around: Only oneGEARS January/February 2015

Pieces of Eight vacuum test. this one! — all the repairs in the Obviously no one in any of world wouldn’t have compensated forvalve in the entire valve body actually the wear.passed the vacuum test. the previous shops had performed a vacuum test on this valve body. If they This valve body was just flat Even with a new, aftermarket had, they’d never have reinstalled it. worn out and needed to be replaced.pressure regulator valve installed, They’d have known right away that Sometimes there’s no fixing a valvethe bore was so bad it failed the they needed to replace it. body; your only choice is to replace it.vacuum test. So, if you’re not vacuum testing And that’s not just smart… that’s One governor plug wouldn’t hold your valve bodies, you really should street smart!any vacuum at all (figure 3) and the start. Just because you install a repairother only held about 6” of vacuum. I or replace a valve doesn’t mean it’sinstalled a governor bore plug kit just fixed. In fact, in some cases — liketo see if it’d make any difference. Notmuch: One bore still wouldn’t pass the SEVERE WEAR Figure 336 GEARS January/February 2015

“ATRA HAS STEPPED UP TO THE PLATE AND BROUGHT US SOME OF THE BEST BUSINESS TRAINERS IN THE INDUSTRY.” DOUG DIRKS DIRKS AUTOMOTIVE & TRANSMISSIONAT ATRA, TRANSMISSIONS ARE ALL WE DO.ATRA has always been a great technical resource. But, in today’s businessenvironment, it takes more than being just a great technician to survive. ATRAhas stepped up to the plate and brought us some of the best business trainersin the industry. Along with their continuous market research, our industry willcontinue to thrive. Thank you ATRA for your support of our Industry.– Doug Dirks, Owner of Dirks Automotive & Transmission Oroville, CAJOIN TODAYMEMBERS.ATRA.COM // 1-866-GO-4-ATRA

WHAT’S WORKING by Dennis Madden members.atra.comGENERATION IV:The Next Stepin Business Thinking Generation IV, let’s revisit the first three generations to make sure we have a firm grasp on their evolution.The What’s Working program thought as generations. So far, we’ve We’ll also examine the challenges that started in 2006 with one identified three. came about for each generation and purpose: to examine what how the industry faced them.successful shops were doing and then Now we believe we've enteredshare those success methods with the a fourth generation. The important GENERATION I: thing to keep in mind is that, with each THE PIONEERSrest of the industry. generation, we moved from one to the Automatic transmissions startedOne thing we discovered is that next because of a need or problem. becoming popular in the early 1940s.most of the improvement in business That is, we found ourselves with a The pioneers of that generation set outhas less to do with tactics; rather, it problem that the existing practices fix those new-fangled contraptions andcomes from a change in thinking. couldn’t address, so we had to discover formed an industry. The automaticEvery meaningful change that we’ve an approach that could get us back into transmission was a mystery to mostobserved has been preceded with a business growth. automotive professionals, so the peoplerevelation in business thinking. Before we discuss the makeup of that could fix them were sought out.Over the years we’ve studiedbusinesses and consumers in a rangeof surveys and focus groups to help Generations Timelineshape our approach. We’ve evenstudied demographics — the locationof businesses — to see if therewere city characteristics that eitherbenefited or detracted from businesssuccess. There weren’t. Generation I Generation II Generation III Generation IV That was an important discoverybecause it meant people couldn’tblame the city they were in for theirlack of business. Sure, there may be acouple of outliers, like Detroit, but forthe most part the city didn’t matter.As the What’s Working study tookshape, we began to characterize the 1945 1955various phases or business modes of 1965 1975 1985 1995 2005 2010 201538 GEARS January/February 2015

THE FUTURE OF TECHNICAL TRAINING REGISTER NOW! Jan 27 & 28 FREE* CFT 30 Rebuild WEBINARFLienbIenraturrotardrouynci1tci0oCn&V11T Join ATRA as we boldly leap intoFebruary 24 & 25 the future of professional online training with industry trend-setting IntrZoFd8uHcPtion technical content you can access anywhere. A special ‘Thank You’ to Seal Aftermarket Products, a driving force behind innovative education and for their continual support in promoting the betterment of the industry. HOW TO PARTICIPATE: Login at http://members.atra.com and click on the webinar schedule. Once registered, you will receive an email confirming your registration along with information you need to join the webinar. *Free for everyone on the day of the webinar. ATRA Members have access to all pre-recorded webinars.This and other technical webinars were made possible by;Seal Aftermarket Products engineers and manufactures theToledo Trans-Kit brand, the most trusted and complete kitsin the industry for the past 25 years. NEW WEB ADDRESS www.sealsap.com

Generation IV: The Next Step in Business Thinking The key to succeeding in than capable of fixing transmissions, shop and the industry exploded.Generation I was simply the ability to but running a competitive business Many consider this the heyday of thefix the transmission. One challenge was another story. They knew only transmission repair industry.was finding technical information and one way to deal with it: compete onpractical repair techniques to get the price. As Generation I was coming to Generation II stretched fromjob done. Another was finding parts. a close, those businesses could fix the around 1975 to the late ’90s. car, but they weren’t making money. The dissemination of technical GENERATION III:information is what led to the GENERATION II: CREATING A CUSTOMERformation of ATRA in 1954. It was LEARNING TO SELLshops helping other shops by sharing Generation III began in the mid-information. As information became With so many new shops popping to late-90s. As with all generations,more available and the parts supply up, including the pressures from there was no finite date, and thechain grew, so did the industry. newly-formed franchises, it became a “threat” that caused the change sort of challenge to make a profit, even if the sneaked up on everyone. The business model was pretty bays were full.simple: Get known as the shop In this case, the transmissionthat could fix transmissions and Around the early ’70s, shop industry was humming along until twothe business would come to you. owners began learning more about things emerged: the internet and remanThroughout the ’50s and ’60s, this running a business. ATRA began transmissions. Now the customer wasbusiness plan worked pretty well. offering business and sales training. armed with knowledge (not always Ter r y G reen hut, the man who right, but that didn’t matter) and they But there was a threat on the practically single-handedly steered had more choices. These two entitieshorizon: With technical information this industry into a business-thinking were fairly minor in the early ’90s, butand parts so readily available, it became entity, showed people how to sell at grew in scope as time went on.easier to fix automatic transmissions. a profit.Shops began popping up left and By the early 2000s, no one couldright. Shops that made their livelihood Terry was the associate executive escape the fact that consumers couldfrom a steady flow of referrals all of director for ATRA back then, and buy a transmission from a range ofa sudden had competition. And they taught thousands of shop owners how sources and they could learn the priceweren’t prepared for it. to be profitable. This was a major leap of the transmission without going forward in running a transmission through the RDI process. I remember As mechanics they were more having conversations with shop40 GEARS January/February 2015

owners saying “I know how to sell “Where can I find a good builder?” this’ll take an investment in time.and I can fix the transmission. But the Often, the owner had the same builder Sounds difficult, but notphone isn’t ringing!” for years and now it’s time for them to retire. impossible. To begin, we have to The winning ticket was to let ask the right questions. Instead ofpeople know you cared about their The last time they had to look “where can I find a good builder?”automotive problems… that fixing for a builder was the mid-90s when let’s ask “how can we attract talentedtheir transmission was more than just all they had to do place an ad in their people to our industry?” What cananother sale. This lead to ATRA’s local newspaper and in a couple days you, as a shop owner, do to cultivateWhat’s Working study: It consisted of they’d have several prospects. Today the next generation of talent fora range of surveys and focus groups, that’s a distant memory. your business?all targeted at what customers werelooking for when it came to getting To make matters worse, the That’s the next challenge fortheir car fixed and what successful transmission industry as a whole has the transmission industry and yourshops were doing to address been reluctant to embrace on-going trade association, ATRA. As I’mtheir needs. training and employee development writing this, we’ve already begun our and retention. next study: to understand what the As shops around the country were younger generation is looking for inreporting better sales and business The expectation is that, when a an employer and what those who aregrowth, little did we know that the prospect comes through the door, they venturing into automotive repair arenext crisis was right around the corner. should be fully capable of building looking for in a career.And, like every other problem that’s today’s high-tech transmissions. That,emerged in the past, this one snuck too, is less and less likely. So the pool We’ll also examine what we, as anup on everyone until it couldn’t be of prospects is not only smaller, but its industry, can do to improve our imageignored. The problem? Finding good constituents are less capable, too. to start attracting this new talent. It’s ahelp to get the work done. challenge, sure, but it’s one that we’re Today’s challenge is having a happy to accept.GENERATION IV: team of highly skilled and motivatedGETTING IT OUT THE DOOR employees that are eager and capable Welcome to Generation IV. of delivering the quality service you’ve Talk to shop owners around the staked your reputation on. And, unlikecountry and the question is the same: moving from Generation I to II and then III, it won’t happen overnight;GEARS January/February 2015 41



ALL WE DO ARE TRANS- MISSIONS ARE ALL WE DO. Your goal is to make your transmission shop more successful, and ours is to help you do it. As the world’s largest and strongest trade organization of transmission rebuilders, ATRA is your premier source for transmission problem-solving and repair information. A partnership with ATRA means profit for you.JOIN TODAY ATMEMBERS.ATRA.COM // 1-866-GO-4-ATRA





Where’s the by Jim CathcartProblem?We lost a sale today and I’m not to resolve it for keeps. Ask yourself, things in a different sequence, or at asure why. Our diagnosis was what’s the source? Use the acronym different work station, or following aaccurate, our price was fair, we SPITS as your formula for locating the different protocol will get the desiredhave the ability to do the job, and cause of the problem. results. Don’t just follow the old waysthe customer needs it. But he because they’re familiar.didn’t buy. Why not? S – Is this a Situational problem? For example: If John was late to work So you lost a sale and don’t knowSound familiar? Okay, how about today, was it due to weather or traf- why. Could it be that the customer this one? fic (situational), or is he habitually didn’t feel you were interested in him Jennifer’s attitude has been late (personal)? If it’s situational, then or her? Just interested in the car? Toosour lately and I’m not sure what’s don’t worry about it; the situation will eager to get the payment? Not eagerwrong. She’s usually cheerful and eager change. enough to solve her transportationto help, but lately she’s been quiet or problem? (Interpersonal problem.)cynical. What do I do? P – Is it a Personal problem? In John’s case, maybe he leaves home too Jennifer’s new bad attitude might How’s this one? late each day or gets up too late. Maybe be due to some problems at home Three times now the car has come he has some childcare or other duties (Personal), from a financial crisisback for corrections or additional each morning that affect his ability to (Situational), or being overwhelmedrepairs. We fixed it the first time, so be at work on time. If so, give him a dif- by her workload (Technical or System).what are we doing wrong? ferent start time that meets your needs Don’t assume it’s any of these until you The first part of solving any prob- and his. It could also be an attitude check further.lem is defining the problem. What problem or something else. Address itexactly is wrong and why is it that way? at its source. The boomerang car that keepsOur instinctive tendency is to start returning might be due to a faulty pro-immediately solving problems without I – Is this an Interpersonal prob- cess of checking your finished worktaking extra time to determine why lem? If his work performance is suf- (System) or it could be something thethey exist. This can lead to even more fering, John might have a conflict with customer is doing that’s aggravating theproblems and wasted time on the wrong you or someone else that’s affecting his repairs (Personal).solutions. work. If so, the solution will involve This isn’t really a new concept. two parties, not just John. Once you become skilled at defin-We’ve been saying for years that, when ing the source of your problems, you’lldiagnosing a customer’s complaint, the T – This could be a Technical become much better at not only solvingfirst step is to duplicate the condition. problem. If someone gets wrong infor- but also resolving them. SPITS is yourThat way you have an accurate view of mation, or doesn’t have the right tools guide.what you’re trying to fix. or techniques to do the work, then prob- People problems are no different: lems will emerge. Don’t blame or scold Jim Cathcart is the author of 16Diagnosing a problem is still diagnos- the person. Resolve this with clearer books including Relationship Sellinging a problem. The first step is always information, better tools, or more train- and a member of the internationalto identify the condition, to make sure ing. Sales & Marketing Hall of Fame. Asyou know what you need to fix. part of the ATRA team he is a ready Here’s a way to look for the source S – Systems sometimes cause prob- resource and advisor for those of youof a problem so that you’re more likely lems. Using the same system or process growing your businesses as owners for multiple tasks may not work. Make and operators. He can be reached at4466 sure your methods are a good match to www.Cathcart.com. the outcomes you desire. Maybe doing GGEEAARRSS JJaannuuaarryy//FFeebbrruuaarryy 22001155

Ten ReasonsWhy the SBAMay Decline by Art EastmanYour Buyer’s Loan members.atra.comThe SBA, or Small Business Administration, is a government and approval process for the loan will include checking the agency that’s tasked with helping provide small businesses buyer’s tax returns, credit report, and resume. These willwith financial support to get off the ground or expand. In many need to be up to date and consistent with each other.cases they provide distinct advantages over an industrial bank, 6. Lease the length of the SBA loan — If the businesseither financially or through relaxed loan requirements. requires a lease, the SBA loan application needs to show that the landlord has approved a lease for the buyer that’s at least But before you get the idea that the SBA is just another the length of the loan. So if the SBA loan is for 10 years, thename for Santa Claus, think again: The SBA doesn’t give out term of the lease must also be at least 10 years.any presents. Their loan application process isn’t quick and 7. Clean background — The SBA will check the applicant forit requires heavy documentation. An application needs to be a criminal record. If you’ve had a drunk driving offense andprepared carefully, and the buyer needs to be ready to address all it goes back a few years, they’ll require a full explanation sothe details they’ll require. they can determine whether they want to underwrite the loan or not. And they can only approve loans to US citizens or Failure to document the application properly won’t just documented legal aliens.cause delays, it may cause the loan to be denied. As a seller, 8. Financial statements less than 90 days old — When ayou’ll want to make sure your buyer is prepared and meets business is listed for sale it can often be six months or morethe minimum qualifications and requirements for an SBA before a buyer comes along. The SBA requires businessloan approval. financial statements to be no more than 90 days old. So the1. Management experience in auto repair — In assessing seller needs to keep financial statements completely up to date if an SBA loan is part of the purchase. an application, the SBA will look at whether the applicant 9. Consultant agreement with seller less than a year — If has industry management experience in the type of business the buyer’s offer requires the seller to remain as a consultant, being acquired; in this case, running an automotive repair the term of the consulting agreement can’t exceed 12 months. shop. If the buyer has extensive management experience but 10. Lender’s exposure isn’t maxed out in the industry — not in the auto repair business, the loan may be denied. There are many banks that offer loans and service providers2. Demonstrate positive cash flow — The loan application that process and underwrite loans. Many lenders manage a needs to include a business plan that shows the buyer’s cash book of loans, often based on a mix of industries they know flow projection for his business, the price, and the terms and have researched to help reduce and manage their risk. of the deal. Absent unusual circumstances, the buyer’s cash flow will be expected to mirror the seller’s cash flow. If a lender already has too many loans exposed to a The SBA will only make a loan to an applicant who can particular industry or has decided to avoid loans in a particular persuasively show that the business will have a positive cash industry, that lender may decline the buyer's loan even though flow. If the business hasn’t achieved a positive cash flow, the another lender might be willing to consider it. SBA probably won’t want to risk it.3. Down payment — The SBA program requires the buyer If you’re trying to buy an auto repair shop, you may need to make a capital investment to buy the business. When to consider applying to the SBA. In some cases the SBA can filling out the SBA loan application, the buyer must submit be dramatically easier to work with than an industrial bank. But a personal financial statement. Because the SBA won’t the SBA is no picnic: You’ll have to meet serious requirements approve a zero-down loan, this document needs to show to prove that you have the potential to be successful… at least, how much of a down payment the buyer is providing and successful enough to pay them back! where it’ll come from.4. Buyer must have working capital — The business But if you’re having trouble being accepted by the regular, plan and financial cash flow models provided to the SBA industrial banks, you might want to consider the SBA. Just specifically need to show working capital for the buyer, and approach them the way you would an industrial bank. If you where that working capital will come from. meet their requirements, you could become one of the small5. Buyer must have 700 minimum credit score — The SBA businesses that owes at least a part of its success to the SBA. requires that the buyer have a minimum credit score of 700. Obviously the higher the score the better. Part of the review 47GEARS January/February 2015

SHOP PROFILE by Steve Bodofsky members.atra.comCottman of Denver andWheat Ridge, ColoradoThe crew at Broadway Center, L-R: Shane Pejdrup, Dwayne Spanyers, Jim Dietvorst, Mark Andersen, Jacqueline Aggen, Edgar GalvanMeet Jim Dietvorst, owner Jim Dietvorst, Owner of two shops in Colorado: GEARS January/February 2015 Cottman of Denver (www.cottmanofdenver.com) and Cottman ofWheat Ridge (www.cottmanofwheat-ridge.com).History As with many franchise owners,Jim isn’t a technician. He found theCottman franchise through an offer fora business opportunity. “I’m an engineer by trade,” saysJim. “I have a Master’s in mechanicalengineering. I did mechanical designfor about 5 years, designing turbinesand pumps. After that I went into pneu-matics and air regulation. One of my48