What does the term 'panel alignment' often refer to in body repairs?

The term 'panel alignment' in body repairs specifically refers to fitting body panels correctly after repairs. This process is crucial in ensuring that all components of a vehicle's exterior come together seamlessly. Proper alignment affects not only the aesthetic appearance of the vehicle but also its structural integrity and aerodynamics.

When body panels, such as doors, fenders, and hoods, are misaligned, it can lead to issues like difficult opening and closing, increased wear on components, and potential water leaks. Therefore, achieving the right alignment is essential for both safety and functionality after a collision.

The other options focus on different aspects of vehicle repair and maintenance that do not directly relate to the alignment of body panels. Color matching pertains to the refinishing process, polishing relates to surface treatment, and exhaust adjustments concern the exhaust system rather than body repair specifics. Thus, fitting body panels correctly is the accurate interpretation of 'panel alignment.'