MAGAZINE LEADERS IN THE SALE OF QUALITY
PARTS
May - June 2010
Speaker Threatened with Lawsuit Pages 4-5 Future Challenges No Surprise To Repair Chains Page 6 Three Massachusetts Repair Associations Unite Page 29 A Message from New President Dan Hutton
Also In This Issue
The Monthly Managers Meeting Toyota Pays $16.4 in Safety Fine From the Northeast Strong Dealer Orders Prompt 2nd Shift CT AG Intervenes on Behalf of Body Shops CA DOI Issues memo on Aftermarket Parts Supporting Vendors OEConnection ADP UPS Tracy Industries Full Circle Solutions/DME Automotive Fender Bender Reynolds & Reynolds Rousseau Storage Dealermine CT DOI Fines Geico $177,500 Looking Stupid in a Court of Law
Page 2 Page 3 Page 5 Page 7 Page 8-9 Page 10-11 Page 11 Page 12-13 Page 14-15 Page 16-17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26-27
Jack Powell “Jeep Jam” 2010 Mopar Masters Guild Committees
Page 28 Page 30
Mopar Masters Guild Magazine
May - June 2010
Page 2
A Message from the desk of Dan Hutton Tom O’Brien CDJ Mopar Masters Guild President One of the things that the Guild is working on is updating our website. Some of the changes are giving it a new look and feel, a new logo, added a new site for members, and also updated the forum site. Steve Hofer has dedicated a lot of time and effort into this project. We are also working hard to update our Mopar Masters Membership List and get the word out to all Parts Managers about our Website. Watch for the upcoming announcement! The Mopar executive committee has been invited to the Mopar Mile High Nationals which is in Denver in July. Some of the topics that we will cover with Mopar Executives in our meetings are: Increase Retail Market Share Conquest Program Discuss Solutions on Damaged Packages Mopar made some new changes in Detroit last month:
Jeff Sloan ‐ Senior Manager Sales & Field Operations Kathy Murrenus ‐ Senior Manager Maintenance & Service Marketing Skip Olson ‐ Senior Manager Collision Kathy Wideman ‐ Senior Manager Repair & Reman Larry Benitz ‐ Senior Specialist, Wholesale
As a reminder do not forget about our performance groups coming up August 26th & 27th in St. Louis. We still have rooms remaining; also this is a training requirement for the new dealer standards. Please sign up on dealer connect as soon as possible. In closing I would like to thank Mopar for working with us on a daily basis, and for helping us achieve the same common goals.
Dan Hutton
Mopar Masters Guild Magazine
May - June 2010
Page 3
The Monthly Managers Meeting Submitted by Gerry Oakes - Baxter CJD
While pursuing a trade publication several weeks ago one of the articles popped out like a sore thumb. The subject matter contained is the service department’s belief that parts departments never stock the right parts. This has been an age old issue between parts and ser‐ vice since the invention of the automobile. And, it remains this way even today in dealerships across the country. Expectations of all department managers are high of other dealership departments. This article went on to describe the monthly meeting of department managers. The Service Manager wants to blame parts for not having the parts he needs when he needs them. The General Manager wants to ensure that customers are being taken care of and to keep peace between parts and service. The Parts Manager wants to go into a long litany of inventory phase‐in, phase‐out, lost sales data, inventory obsolescence, lack of return reserve and the high percentage of special ordered parts that never get installed. Every parts manager has been in this meeting at least, well, as many times as there have been meetings. In the environment of today’s dealership fixed operations is as important as ever for the service and parts managers to communicate and understand each aspect of both departments. Both must have reasonable expectations of each other. However, both have their own definition of reasonable. The only way to get over this hurdle is for each to know the challenges faced by the two departments and to educate each other about these two areas of profit for the dealership. It is my opinion that one change would go a long way in curbing the above friction between departments. And that would be a pay plan where parts and service managers are compensated from combined net profit of both departments. This would encourage working together for a common goal and creating a team atmosphere. It would also begin to tear down the walls between parts and service and eliminate the us versus them mentality. Imagine what the next managers meeting would sound like if this was implemented in your dealership. Do you think it would be different?
Mopar Masters Guild Magazine
May - June 2010
Page 4
INDUSTRY SPEAKER THREATENED WITH LAWSUIT At CONFERENCE Just hours before industry trainer Toby Chess was to make another presentation about non-OEM bumper and structural parts at last week's Collision Industry Conference (CIC) in Atlanta, Chess said he was threatened with a lawsuit if he did so. He declined to reveal who threatened the legal action - multiple sources have indicated it was LKQ Corporation, parent company of Keystone Automotive - but said because he had not had a chance to consult with an attorney, he chose to forego making his presentation at the meeting. In presentations at the last two CIC meetings, Chess showed potential problems with a number of nonOEM bumper parts, including apparent significant differences in the material and structure of the parts (CRASH 1/25/10). That has led at least four insurers to pull back from the use of such parts (CRASH 3/1/10); it has also led parts suppliers to develop tracking and recall programs for the parts, and to the launch of several testing and certification programs for such parts. Chess was clearly frustrated by the threat of legal action against him, saying he never portrayed the demonstrations as scientific research but merely as a way to "bring light" to a potential problem. "I was asked last month why I did this," Chess said. "I said that I don't work for insurance companies, I don't work for parts companies, I don't work for body shops. I work for the consumer. I'm a trainer. I teach. So I have no vested stake in this. I thought it was necessary to say these things. I think we've demonstrated to the industry that there has to be more than just selling these parts. I hope that after I get some legal counsel on this, I can come back to you and show you more of what I did find. Some (of the non-OEM parts) are very good. And I was prepared to tell you about that." RESPONSE AT CIC: A number of CIC participants in Atlanta expressed outrage that legal threats would be used to prevent a presentation and open discussion at the meeting. Speaking as a past CIC Chairman, Chuck Sulkala said this was the first such incident he was aware of in CIC's nearly 30-year history. He said Chess was merely raising awareness of issues that had been discussed for decades, and commended parts suppliers for finally taking action in the months since Chess' presentation last November to address traceability of the parts. "To have something stopped because of a potential lawsuit is shooting the messenger," Sulkala said. "The day of stopping discussions at CIC because of a legal issue has got to come to an end. It should never have come to be in the first place." Industry consultant John Bosin, who chairs the CIC Parts Committee, also called such a threat of legal action "reprehensible" and told Chess he would help start a legal defense fund if necessary. "Whoever has initiated this (threat of) legal action passed up the opportunity to use this as the forum it is, to express their views," Bosin said. "We would have been open. We may not have liked what we heard, but they could have come here. They were welcome. Whoever it is, why aren't they here talking about the issue and telling us what their concerns are and explaining their actions. I think they're chicken." CIC Chairman Russ Thrall assured CIC attendees he would "figure a way through this to make sure the (Continued on page 5)
Mopar Masters Guild Magazine
May - June 2010
Page 5
(Continued from page 4)
things that need to be said get said." Like Bosin, he said CIC's mission is to serve as an open forum for the industry. "If there's a presentation up here that you find uncomfortable or you feel is wrong, that's why the microphones (throughout the room) exist," Thrall said. LKQ RESPONDS: Without explicitly confirming or denying it was the source of threatened legal action against Chess, LKQ Corporation following the CIC meeting issued a written statement about Chess' presentations, including the one last November in which he used a firefighter's extrication saw to show how much easier it was to cut through the metal used to make a non-OEM bumper bar being sold as a replacement for an OEM part made from ultra-high-strength steel (CRASH 11/23/09). In its statement, LKQ Corporation said it tried to replicate such a test and found "the saw cut through the OE rebar with relative ease,"raising concerns that "there is a lot of misinformation being spread." The company pointed to crash testing it did that it says showed both an OEM and non-OEM bumper passed federal safety standards for passenger protection (CRASH 3/1/10). "LKQ believes that it is important for the consumer and the industry to receive relevant and accurate information, so we have communicated that message to the parties involved," the company wrote. Source: www.crashnetwork.com
Toyota pays $16.4 million U.S. safety fine Toyota Motor Corp. has paid a $16.4 million fine to settle allegations by U.S. regulators the company was too slow to recall vehicles with defective accelerator pedals. The civil penalty payment, the maximum allowed under auto safety regulations, came two days before Toyota's U.S. sales chief, Jim Lentz, was expected to appear before a congressional committee investigating Toyota recalls. In paying the fine as expected, Toyota did not admit wrongdoing regarding the 2010 recall stemming from a National Highway Traffic Safety Administration investigation of pedals that would not spring back as designed. Safety regulators are also investigating whether Toyota delayed a 2009 recall of all-weather floor mats that could jam the gas pedal. That investigation is expected to run through the summer and Transportation Secretary Ray LaHood last week would not rule out the possibility of another fine. The "sticky pedal" and floor mat recalls involving millions of vehicles globally are at the heart of Toyota's worst safety crisis over unintended acceleration.
Mopar Masters Guild Magazine
May - June 2010
Page 6
Future challenges no surprise to repair service chains CHICAGO — Future challenges and those that repair service chains currently face look a lot like those challenges they’re facing today. Determining where things are going in the economy and with consumer behavior is critical to determining how to address both current and future challenges are addressed. “Current challenges and future challenges blend together,” says Larry Magee, chairman, CEO and president, Bridgestone Retail Operations, LLC. “One of the first things that we need to determine is, is this flight of values a permanent shift in the landscape of consumer behavior or is it just a temporary shift. If it’s permanent, some business models need to change, merchandising needs to change and operational procedures need to change.” Magee was part of a four-person panel discussing “How Automotive Repair Service Chains are Gaining Traction in Today’s Market” at the 2010 Global Automotive Aftermarket Symposium (GAAS) on Tuesday. John Warzecha, senior vice president, franchise business development, Midas Inc., says his company is facing similar questions as it prepares for the future. He notes that the aftermarket needs to see if miles driven will increase and the average age of vehicles will decrease in order to understand the long-term effects this economy is having on consumers. In order to prepare for that, the chains, like independent shops, must make sure they’re up-to-date on vehicle technology and technician training. Warzecha says that while the lead time on vehicles used to be four years, his company’s shops now are seeing hybrids. “It requires us to be more timely in getting information and training out to our technicians,” he notes. The evolution of technology on vehicles and access to information is changing, as is the makeup of people running these businesses today. Joe Biggie, vice president of strategy and development, Just Brakes, adds that not only does the changing technology affect what the technicians need to learn, but for service chains, techs’ interest changes. For his business, many technicians get to a certain point and want to learn more than the brake systems on vehicles. “The future development to all technicians is, not just in our company but in the industry itself, of particular interest,” he states. So while these execs make sure their businesses are ready for the future, they’re also dealing with those technology challenges and changing consumer attitudes currently. “We’re basically in a problem business. Unfortunately, none of our consumers come in for prevention,” Biggie says. “They only come in when they have a problem, and that exists in the repair industry unilaterally across all aspects.” He says today’s consumers are better educated than before, to which Warzecha adds that they are a little bit pushier with repairs as well. “We’re seeing a consumer that’s a little more requiring, more value conscious and less patient,” Warzecha explains. “The market has always been plagued with a market of distrust and it’s something we’ve had to deal with certainly all my career.” Because consumers are more leery of what they’re getting for their money, Biggie says his company has opened its shops to show the consumers repairs and have them involved in the repair process from beginning to end. The panelists all note that challenges now will be similar going forward. Add to that the business side of things with changing regulations at the national, state and local levels, changing marketplaces and economic uncertainty among consumers, and the service chains, like independent shops, have a lot to face. Source: www.motorage.com Note: It’s always nice to know what the competition is up to!
Mopar Masters Guild Magazine
May - June 2010
Page 7
From the Northeast Submitted by Ernie Wennerstrom - Bald Hill DCJ
Passages: God bless Jim Belleau. The world was certainly a better place with him in it and he lives on in this heart. Thank you Jim for your quiet guidance in living with dignity, tolerance, morals, patience and so much more.
Politics:
In my youth I never really had a taste for tea, but with the advent of the people’s “Tea
Party” I’m learning to acquire a taste for things not overbearingly strong yet intriguingly flavorful. No politicians jailed in over a week. Will wonders ever cease? It seems that we as a society spend so much time bashing our leaders character and personal dealings that we often lose sight of the most important part, how they behave spending our money and deciding under what laws we will live our lives.
Sports:
The sports gods did the right thing when they gave us the Saints as our Superbowl
champs. We needed a “Feel good story” in sports. Ah, nothing compares to looking out at the yard and seeing green, not WHITE on your lawn, then tuning in to a Baseball game to put things right. The Nashville predators in the NHL??? Nashville Tennessee? NHL hockey? I think I’ll look into acquiring a “Beach Volleyball” franchise and move it to the Arctic Circle!
In general: Under things I observe in daily life: After listening to a gentleman speak, during a non business meeting I attended recently, and seeing that he was having difficulty in communicating his thoughts and was obviously aware that he was speaking to a knowledgeable and sizeable audience, still continued on with his message as best he could, I felt that God had graced me. I was reminded that the things we often take for granted are really treasures that we should be grateful for and not abuse. I felt validated in my thoughts when at the end of his speaking, he received the loudest and most prolonged applause of the evening. The courage to overcome fear and do the hard thing is as noble as anything we can ask for. I (for one) will remember this the next time (and hopefully all of the time) one of my employees offers his/her opinion/view on what is on their mind and put into perspective that it may not be so easy for them or that their offering is not well thought out or is too subjective. More import than what they say is how I handle it! A little bit of grace and open mindedness can lead to satisfactory results for all. Thanks for taking the time to read!
Mopar Masters Guild Magazine
May - June 2010
Page 8
Strong dealer orders prompt 2nd shift for new Jeep Grand Cherokee DETROIT -- Dealer orders for the redesigned 2011 Jeep Grand Cherokee have exceeded expectations by about a third -- a key factor in Chrysler Group's decision to add a second shift to its Jefferson North Assembly Plant here. Chrysler will hire an additional 1,080 workers for the second shift, which starts July 19, CEO Sergio Marchionne said today at the production launch ceremony for the vehicle. The plant already employs 1,700. “Initial orders are 30-40 percent higher than initial expectations,� Jeep brand CEO Michael Manley said on the sidelines at the ceremony. Chrysler declined to say what their volume expectations were for the vehicle. Jeep sold 50,328 Grand Cherokees in 2009, down 32 percent from the previous year. Sales have declined along with sales in the SUV segment in general. In 1999, Grand Cherokee sales peaked at 300,031. Chrysler will begin building another vehicle at the factory in the fourth quarter. The vehicle will carry the Dodge brand, will have seven seats and will replace the Durango SUV in the Dodge lineup. The Grand Cherokee has five seats. Major plant improvements Chrysler has invested $686 million in the Grand Cherokee program, including a new body shop. Marchionne hailed the 2011 Grand Cherokee as "the rebirth of the Chrysler Group." He drew a standing ovation from assembled workers and dignitaries at the plant. The Italian-Canadian executive made a dramatic entrance to the factory ceremony, driving a silver Grand Cherokee to the front of the stage with Michigan Gov. Jennifer Granholm as a passenger. Although the Grand Cherokee program was already in the works when Fiat took management control of Chrysler, Fiat S.p.A. already has brought major changes to Chrysler's manufacturing culture. Employees at the plant have received 44,000 hours of training in Chrysler's World Class Manufacturing process, developed by Fiat as a version of Toyota's lean manufacturing system. Marchionne said the system "is intended to put dignity into the workplace" by giving workers a greater role in shaping their jobs. "The workplace should be a place that you can be proud of, that you can take your kids to and show them where you work, and that will reflect fundamental values of human self-respect," he said. "That's why WCM is such an agent of change." Among the innovations Fiat has brought is a gauge called the Meisterbock, which allows Chrysler engineers to closely measure tolerances to see how parts will go together in the body shop before they go onto the line. "We found some parts that were out of conformation and had suppliers take them back to (Continued on page 9)
Mopar Masters Guild Magazine
May - June 2010
Page 9
(Continued from page 8)
the drawing board," said Trajche Sekuloski, a plant employee. Chrysler couldn't have anticipated these problems previously, he said. Premium SUV Jeep wants the Grand Cherokee to move upscale in every area but price. The premium Overland version will sell for $42,995, including shipping. Chrysler is launching the vehicle in three models: Overland, Limited and Laredo. The company is following its recent policy of offering more features at a slightly lower price than the previous model. The Overland features wood and leather accents geared to the luxury segment, including a woodtrimmed steering wheel. Two engine options will be offered. The new Grand Cherokee will be the first Chrysler vehicle to come with the company's 3.6-liter V-6 Pentastar engine, which will crank out 290 hp. With the V-6, the fourwheel-drive version gets 23 mpg and has a 500-mile cruising range. Phil Jansen, chief engineer on the program, said Chrysler anticipates that 75 percent of all Grand Cherokees will be sold with the V-6, up from 60 to 65 percent with the current model. The current Grand Cherokee V-6 only generates 210 hp. Also offered will be a Hemi V-8. Both engines are mated to existing five-speed automatic transmissions. Shared Mercedes components The Grand Cherokee started development when Daimler still owned Chrysler Group. It shares components with the Mercedes-Benz M class. Jansen said the Grand Cherokee shares suspension components and a steering column with the Mercedes models. But the Jeep features a suite of new off-road systems that are completely different, including a QuadraLift suspension that allows the driver to adjust the height of the body depending on conditions. "What they [Mercedes] want to do and what we want to do is totally different based on our brand" regarding off-road capability, Jansen said. For the first time, the Grand Cherokee has independent front- and rear axles for better on-road performance, Jansen said. The Grand Cherokee was designed so it could pass emissions and safety regulations around the world. The vehicle will be sold in 105 countries, Jansen said. Right-hand-drive versions will go into production this year. Chrysler plans to make all Grand Cherokee models in Detroit. In the past, the company manufactured European versions at a factory in Graz, Austria.
Mopar Masters Guild Magazine
May - June 2010
Page 10
Connecticut AG Asks to Intervene on Body Shops' Behalf in Suit Against The Hartford Connecticut Attorney General Richard Blumenthal wants to intervene in a body shop group’s class action lawsuit against The Hartford Insurance Co. to help “prevent unfair and biased automobile body damage appraisals.” The Auto Body Association of Connecticut (ABAC) announced that Blumenthal has asked the Stamford Superior Court for permission to file a brief in support of the ABAC motion for a permanent injunction to prevent The Hartford from exclusively using in-house representatives to perform appraisals. The injunction stems from a $15-million court decision in November in a class action suit on behalf of state body shops against The Hartford. Blumenthal’s petition said, “The State seeks to prevent unfair and biased automobile body damage appraisals and unfair suppression of labor rates – conduct which not only violates (state law), but which also has a direct and adverse effect on Connecticut’s general economy.” Further, it said the “State has an interest in preventing the unfair suppression of labor rates that significantly harms the State’s economy and results in extreme economic hardship for independent automobile body repair shops.” In November, a jury awarded $15 million to Connecticut auto body repair firms, saying The Hartford engaged in unfair business practices. The lawsuit filed by ABAC and three of its members alleged that the insurance company artificially suppressed body shop labor rates by eliminating the use of independent appraisers and relying exclusively on its own automobile service representatives to perform appraisals so the company could control their content, including labor rates. Following the verdict, ABAC filed a motion for a permanent injunction to prevent the unfair business practices and asked the court for punitive damages in addition to the $15 million. Those motions are pending. The Hartford has said it would appeal the court's decision. “Attorney General Blumenthal has been a champion of small business and has been with us every step of the way,” said Atty. David Slossberg of Hurwitz, Sagarin, Slossberg and Knuff, of Milford, co-counsel for ABAC. “The Attorney General’s intervention in this action sends a strong message – The Hartford’s unfair trade practices must stop, it must follow the law, and the hundreds of auto body shops in our state must be able to run their businesses on an even playing field, absent The Hartford’s influence and control. We are delighted with this development.” Thomas Hambrick, spokesman for The Hartford, told the Hartford Courant that the insurer was disappointed with Blumenthal’s actions, saying body shop owners are trying to increase costs to Connecticut consumers. "It is important to us that our customers have access to a repair program that provides great service at a fair price," Hambrick said. ABAC President Bob Skrip said that shops in his state need to be fairly compensated for the work they perform. (Continued on page 11)
Mopar Masters Guild Magazine
May - June 2010
Page 11
(Continued from page 10)
“Automobiles have become increasingly sophisticated over the years. Ongoing training is necessary. Expensive, sophisticated equipment is continually required to keep up with ever-more complex vehicles,” Skrip said. “Those who work in our profession today are extremely talented craftsmen and professionals. It’s time for compensation to catch up to our expenses.” Skrip added that ABAC plans to pursue legal action against other insurers in the state that are allegedly engaging in unfair business practices similar to those of The Hartford. “Enough is enough,” Skrip added. “We can no longer allow huge insurance companies to force their will on businesses and consumers. It’s your car. It’s your choice where to have it repaired.” Source: www.collisionweek.com
California DOI Issues Memo on Aftermarket Parts Regulations Department reminds insurers of legal responsibilities when it comes to specifying aftermarket parts. The California Insurance Department issued a memo on April 30 to all insurers in the state reminding them of the state's regulatory requirements on the use of Non-Original Equipment Manufacturer Replacement Crash Parts. The memo reiterates the requirement that all non-OEM parts specified must be at least equal to the OEM parts in terms of kind, quality, safety, fit, and performance, specifically noting aftermarket bumper reinforcement bars. The state writes, "It has come to the Department's attention that certain aftermarket bumper reinforcement bars may be significantly different in terms of like kind, quality, safety, fit, and performance." The memo also pays special attention to the section of the law [CCR Section 2695.8(g)(4)] that requires all aftermarket parts specified by insurers to carry "sufficient permanent, non-removable identification so as to identify the manufacturer," a section the California Autobody Association (CAA) has drawn particular attention to in a recent meeting with the department. CAA has been promoting the creation of a standard traceability system for aftermarket parts that will ensure that parts can be traced back to the manufacturer in the event of a failure or safety recall. In order to achieve this, the parts have to be properly identified, as required by California law. As noted in the attached notice, CCR Section 2695.8 (g)(4) requires that "all original and non-original manufacture replacement crash parts, manufactured after the effective date of this subchapter, when supplied by repair shops shall carry sufficient permanent, non-removable identification so as to identify the manufacturer." The CAA has been working to make its member shops aware of the regulation and promoting compliance by reminding them to be sure that all parts required by insurers carry the required manufacturer identification. "The CAA will continue to work with the DOI on the overall issue of traceability," said David McClune, CAA Executive Director. "This memo was a first step and we hope, with continued meetings, that the DOI can assist the industry further in their authority with this issue."
Source: www.collisionweek.com
Mopar Masters Guild Magazine
May - June 2010
Page 12
Our Supporting Vendors Support those who support you
Mopar Masters Guild Magazine
May - June 2010
Our Supporting Vendors Support those who support you
Page 13
Mopar Masters Guild Magazine
May - June 2010
Page 14
Mopar Masters Guild Magazine
May - June 2010
Page 15
Mopar Masters Guild Magazine
May - June 2010
Page 16
Mopar Masters Guild Magazine
May - June 2010
Page 17
Mopar Masters Guild Magazine
May - June 2010
Page 18
Mopar Masters Guild Magazine
May - June 2010
Page 19
Mopar Masters Guild Magazine
May - June 2010
Page 20
Mopar Masters Guild Magazine
May - June 2010
Page 21
Mopar Masters Guild Magazine
May - June 2010
Page 22
A Second Chance at Selling Declined Services Your service advisors likely are already completing a multi-point inspection with your customers on every vehicle that enters your service drive. But, do you have a process to follow-up with your customers on the recommended services they decline? What additional parts and labor profit might your service department add if you brought back just 10 percent of your customers to complete those services? The new Recommended Not Done (RND) feature in the Reynolds and Reynolds ERA® Service application can help you easily and efficiently record, track, and manage recommended services that customers initially decline. This enables you to have a second chance to get those customers back into the shop, strengthen customer relationships, and improve your profits.
How RND Works During the write-up process with the customer, instead of deleting the declined work from the repair order, use the RND feature to record that the service was recommended, but declined. This way, information about the declined service will print on the service invoice for the customer to see. It’s also stored in the vehicle’s service history. Because the information about what work was declined is stored in the ERA database, you’ll now have the opportunity to revisit that selling opportunity when the customer returns to your service department. Jobs marked as RND will display as recommended services during write-up, so your service advisors are able to present those service items again to the customer – giving advisors another chance to close the sale. You also can run RND tracking reports to create marketing campaigns encouraging customers to bring their vehicle back into your service department to have the work completed. In addition, as part of the RND option, a feature called “Done Elsewhere” (DE) is available to record that the customer had the recommended work done somewhere else – helping you avoid unnecessary follow-up on those items. RND works seamlessly with other Reynolds applications. It enhances the ERA Service Sales Kit multi-point inspection by streamlining the steps required to record and follow-up on recommended services on the vehicle report card. Contact Management from Reynolds can help you further automate your follow-up process with customized declined services campaigns. RND makes it easier than ever before to reach out to your service customers on declined services and begin generating additional parts and labor sales. If your dealership has loaded the latest ERA DMS release (version 9.5), RND is available for you to use immediately at no additional cost to you. This is another example of Reynolds’ continued commitment to enhancing the ERA DMS and making your business better. To find out more about RND, go to my.reyrey.com and search for “RND 9.5.”
Mopar Masters Guild Magazine
May - June 2010
Page 23
Mopar Masters Guild Magazine
May - June 2010
Page 24
Focusing On A Turnaround: American Truck Dealers 2010 DealerMine Talks To Dealers Convention & Expo At Events In April
Chrysler Northeast Business Center 2010 Service and Parts Business Conference Helping Truck Dealers Make Money On Their Obsolete Parts Truck dealerships rely heavily on their Parts Departments and it was great to talk to so many dealership owners and managers at their big meeting in Orlando, FL. Truck dealers are very open to the idea of selling off their aged inventory so they can buy new at half price. We went to the annual ATD Convention & Exposition which brings together more than 2,000 dealers, dealership managers, manufacturers and related-industry representatives under one roof. The program includes general sessions, luncheons, workshops, franchise meetings and exhibits. In 1970, The North American Auto Dealers Association (NADA) recognized that medium and heavy duty truck dealers had specific needs and encounter unique issues that were not always addressed by existing NADA programs and publications. Therefore, the American Truck Dealers (ATD) division of NADA was established to provide programs and services to this highly specialized segment of its membership. Today, ATD represents more than 2,000 franchised medium and heavy duty truck dealers holding nearly 3,000 separate franchises, domestic and import. Meeting Northeast Chrysler Dealers We were also able to attend Chrysler's Northeast Business Center 6th Annual Service and Parts Business Conference at the Mohegan Sun Casino in Uncasville, CT. The dealers we talked to weren't there to play slot machines, but to learn how to improve their profitability. DealerMine's message of getting your obsolete inventory levels down and your fast moving inventory up was well-received. Organizers say that about 250 dealership personnel attended this event, including Dealer Principals, Fixed Operations Directors, Parts Managers, and Service Managers.
Mopar Masters Guild Magazine
May - June 2010
Page 25
Connecticut DOI Fines GEICO Companies $177,500 Four GEICO subsidiaries were fined a total of $177,500 for improper rating, claim delays, failing to for pay loss of use and employing unlicensed adjusters, among other violations, Connecticut Insurance Commissioner Thomas R. Sullivan announced. The total fine amount is a result of smaller fines assessed to subsidiary companies. Violations and fines varied by company: • GEICO Casualty Company, Maryland – $49,000 • GEICO General Insurance Company, Maryland – $31,500 • GEICO Indemnity Company, Maryland – $64,500 • Government Employees Insurance Company, Maryland – $32,500 Although the violations varied by company, most companies did not comply with a state law that requires that optional coverage for safety glass repair or replacement be offered at all deductible levels. Connecticut law requires insurance companies to formally appoint and license with the state all agents who sell, solicit and negotiate insurance products on their behalf. The market conduct examination revealed instances of unlicensed adjusters within these subsidiaries. Other violations included instances where companies did not include loss of use payments in claims settlements. “Connecticut statutes are in place to protect consumers, and violations of these laws are unacceptable,” said Sullivan. “We will continue to scrutinize companies in this industry to ensure they are committed to conducting business within the boundaries of our insurance laws.” The company complied with the stipulation and final order and will submit a compliance report to the commissioner within 90 days.
Source: www.collisionweek.com
Mopar Masters Guild Magazine
May - June 2010
Page 26
Looking Stupid in a Court of Law By Ed Kovalchick NetProfit Inc. I assisted a dealer's lawyer on a case where a several-year-old vehicle rolled over, killing the driver and injuring a passenger. The worst happened after the crash - one person burned up, stuck in a seatbelt. It was a sad tale indeed, and something I will not forget. As a result, the manufacturer, dealer, and a multitude of suppliers were included in an aggressive lawsuit, which demanded compensation because it was alleged that the vehicle was not manufactured properly and/or not maintained properly by the servicing dealer. This occurrence is when repair order documentation can make or break a dealer's defense. Frankly, the dealer can end up looking like an idiot who hires idiots. I have personally witnessed it. Thoroughness Is Not An Option! Fortunately, in this case the dealer's service writers did a reasonably good job of documenting each visit; but the technician notes were sorely lacking in definition. Time and time again the writer made up descriptions to cover the various undocumented technician tracks, which developed the obvious question of what was and what was not actually performed. Were servicing activities being made up lawyers asked? We request that all of our service managers perform a weekly Repair Order Audit (we supply one) to ensure, among a number of things, that RO documentation is appropriate, thorough, and competent. Frankly, most managers act like I have asked them to wade through three feet of sticky mud at this request. I get upset after they have chosen to ignore the audit, citing normally weak excuses. As you can imagine, when I re-audit what these managers have claimed to perform, I find numerous problems they gleaned as OK. Most have low documentation standards until they look stupid in a court of law - then the need for improvement finally clicks. However, that unfortunate court experience is unforgettable. Who's Responsible? The responsibility for ensuring correct repair order documentation is wide reaching within a dealer organization, beginning with the dealer/general manager. And thank goodness for warranty documentation standards. From my viewpoint, the manufacturer field manager's haranguing about this sore subject is the best thing most dealers have in the realm of promoting acceptable documentation. 1. The Dealer/General Manager Legal Responsibilities - Clearly this person must be a student of ever-changing legal requirements and the related ramifications for all departments. There is no one else to do this, so don't go there. On-going Communication - If this sometimes self-important executive has not communicated, then followed up on the conforming to important legalities within each department, then fire them or yourself as the case may be. 2. The Service Director/Manager Hiring - Stop hiring service writers and technicians who can't or won't read and write to the standards required on legal documents. Why are there service writers who can't type? Test everyone before they are hired, not afterwards. Software - Where are the op codes? All repair order software makers supply provisions for development of proper repair order operation codes, to ensure managers have the opportunity to define labor operations for everyday use. Few create them properly and some just ignore them. As a consequence, I too often end up reviewing "baby stutter" for problem definitions, written in the heat of battle by weary service writers who can't type, and technicians who don't care, nor know the difference. (Continued on page 27)
Mopar Masters Guild Magazine
May - June 2010
Page 27
(Continued from page 26)
RO Auditing - Documentation can either protect or crucify every even slightly related dealership employee in the event of a legal action. Poorly defined legal information (the repair order is the primary legal document of record) can easily cost the company more money than any of us will make in a lifetime. 3. The Service Writers WWWW - What, When, Where, Who are fundamentals of problem definition. Substandard problem documentation drives technicians to drinking (so they say). Personally, when I was a technician I would have said "more drinking." How can problems be solved when they aren't defined, located, and confirmed? When vague generalities are presented, lawyers have a way of tying repair issues together. "Noise in vehicle. Ah, that's why the tire blew out and killed my client, and you sir were responsible." I'm not kidding. Spelling & Grammar - It's pathetic that the big two dealer management systems are still requiring that repair orders be written without spell and grammar checkers...perhaps if they were paid a few more thousand a month? If you can't construct a reasonable English sentence, without spelling errors, get out now before it's too late. I had to explain a repair order definition during a legal case where the writer referred to the CD player's "dick" three times. Don't be a dick. Vehicle Recalls - Never, never, never, never, generate a repair order without running a manufacturer update to determine if recalls are applicable to the assigned vehicle. If there is one, be darn sure it is completed now, not later. Passenger/Driver Sides - Do not use right and left for obvious non-political reasons. Fore, aft, starboard, and port will do too if you can't figure out on which side the driver sits. 4. The Technician NPF - No Problem Found. This common acronym is sometimes used as NPF regrettably. Do not use these letters. Document exactly what procedures were used to attempt to rectify the already acknowledged problem. Spare no details. The best part of this program is that it pays more too. Specs/Measurements - If you used one, document the before and the after if applicable. If you haven't created a measurement make sure it wasn't necessary. Eyeballing measurements is not acceptable and is treated as "not following protocol." An issue surfaced where clutch free- play was questioned. None was documented, and when I set the technician up for questioning I found that after he claimed it was "OK," he actually had no clue as to what the spec was, nor did he even know how to look it up. This is scary stuff in a legal scuffle. Road Testing - This is not an option in legal cases. It is commonly expected by customers and lawyers that a vehicle was checked and "passed" in this manner by the "car doctor," even for an oil change. Document mileage in and out to always prove this important procedure took place. Even if something unrelated isn't acceptable concerning the vehicle's performance, document this fact and present it to the customer. Technical Service Bulletins - It is imperative that any and all related technical bulletins be reviewed if even remotely connected to a customer concern. These will become fodder in the court room when TSBs have been ignored. TSBs are regularly updated with pertinent revisions, so looking at one does not cover the future. Always reference TSBs during RO documentation. Appropriate Documentation - Poor spelling, missing information, sloppiness, garbage definitions, and/or unprofessional descriptions can make you liable. Don't take this lightly. Anyone related to vehicle servicing can be viewed as responsible for the safety of both drivers and occupants of vehicles, which means it can be construed that you could literally kill someone. Document details of procedures used. Too much is a good thing; too little can make you accountable. By no means have I covered all details in the responsibilities of automotive professionals to the litigious world in which we do business. I should write a book on the intensive subject, and maybe I will. In the mean time, do an RO Audit today.
Mopar Masters Guild Magazine
May - June 2010
Page 28
Reprinted from the May 2010 Issue of Mopar Momentum
Mopar Masters Guild Magazine
May - June 2010
Page 29
Three Massachusetts Repair Associations Unite On May 24, three Massachusetts collision repair and automotive service associations became united in a historic undertaking. During a special industry dinner meeting held in Marlborough, Ma., the three associations - the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), the Massachusetts Auto Body Association (MABA) and the Central Massachusetts Auto Rebuilders Association (CMARA) - joined forces as one statewide industry association. Under the new agreement, the merged associations will carry on under the AASP/MA banner and will be open to both collision and mechanical members. The new interim AASP MA Board of Directors, which will be in place until elections this November, will be led by former CMARA President Tom Ricci. Former AASP/MA President Rick Starbard and former MABA Chairman Paul Hendricks will jointly serve as vice presidents. "This is truly a memorable event for our industry," Starbard said in his opening comments. "This [merger] wasn't thrown together off the cuff. This was about determination, fence-mending, friendship rekindling and a lot of hard work on behalf of all three associations' officers. The Boards of MABA, AASP/MA and CMARA should all be congratulated for their foresight in making this happen here tonight." The reconfigured association retains longtime AASP/MA Executive Director Peter Abdelmaseh and lobbyist Martin Corry and gains former MABA Administrator Nancy Russell, while the interim Board of Directors includes members from all three former groups. James Castleman, Esq. will provide legal counsel to the new group, while Thomas Greco Publishing, Inc. will continue to produce AASP/MA's monthly publication, New England Automotive Report. The unification of the three Massachusetts groups comes after an extensive 18-month negotiation process that ended decades of division. "From the Board of Directors' perspective, there is a great deal of excitement in the air because we now have one unified voice," remarks Ricci. "Instead of having three associations, there now exists one united front and the excitement of opportunities to come." "We're very fortunate that we can do it at this time in the industry's history," adds Hendricks. "We have so many issues with insurance companies and regulations not being enforced that the only way to get anything done is with a large group. Right now, I feel that we have the best leaders in the industry all joined together. We can only move forward from here." For Starbard, who also serves as president of AASP National, the restructured MA affiliate reflects a welcome spirit of unity and cooperation throughout the Commonwealth. "This is the first time in 20 years that the collision industry in Massachusetts will be united," Starbard says. "It's time to be on one page, set one course and start winning on behalf of the industry." For more information on AASP/MA, please contact Executive Director Peter Abdelmaseh at pabdelmaseh@yahoo.com. Source: www.collisionweek.com
Pictured left to right: Tom Ricci (CMARA), Paul Hendricks (MABA) and Rick Starbard (AASP/MA).
Mopar Masters Guild Magazine
May - June 2010
Page 30
2010 Mopar Masters Guild Committees President Vice President Treasurer Secretary
Dan Hutton Mike Mulkins Steve Hofer Rick Cutaia
Tom O’Brien Chrysler Jeep Dodge Go Chrysler Jeep West Park Chrysler Jeep Rick Hendrick Dodge
Executive Committee
All of the above and: Gerry Oakes Paul Allred Rick Monteiro Marvin Windham Alan Yancey Brent Hoge
Baxter Chrysler Jeep Dodge Stateline Chrysler Jeep Dodge Jack Powell Chrysler Dodge Benchmark Chrysler Jeep Dodge Hayes Chrylser Dodge Jeep Larry Miller Chrysler Jeep Dodge
Membership Committee
Brent Christensen (West) Doug Price (East) Robbie Jackson (South) (North)
Ken Garff West Valley CJD Security Dodge Chrysler Salsbury’s Dodge City TBA
Vendor Chairmen
Paul Allred Gerry Oakes Marvin Windham
Stateline Chrysler Jeep Dodge Baxter Chrysler Jeep Benchmark Chrysler Jeep Dodge
Newsletter Chairmen
Don Cushing Mike Mulkins
Bald Hill Dodge Chrysler Jeep Go Chrysler Jeep West
Performance Group
Mike Gerber
Rairdon’s Chrysler Jeep Dodge of Kirkland
Finance Committee
Brent Hoge Steve Hofer
Larry Miller Chrysler Jeep Dodge Park Chrysler Jeep
UPS
Rick Monteiro Paul Allred Marvin Windham
Jack Powell Chrysler Dodge Stateline Chrysler Jeep Dodge Benchmark Chrysler Jeep Dodge
ADP
Gerry Oakes Mark Skinner Dan Hutton
Baxter Chrysler Jeep Dodge Power Chrysler Jeep Dodge Tom O’Brien Chrysler Jeep Dodge
Snap-On
Dan Hutton
Tom O’Brien Chrysler Jeep Dodge
OEConnection
Brent Hoge
Larry Miller Chrysler Jeep Dodge
Dealer Tire
Steve Hofer Mike Mulkins Alan Yancey
Park Chrysler Jeep Go Chrysler Jeep West Hayes Chrysler Dodge Jeep (Dan, Brent, Steve, Mike & Alan are the Chairs for Snap-On, OEConnection and Dealer Tire)
Tracy Industries
Mike Mulkins Steve Hofer Brent Hoge Guillermo Nava
Go Chrysler Jeep West Park Chrysler Jeep Larry Miller Chrysler Jeep Dodge Buerge Chrysler Jeep
Reynolds & Reynolds
Paul Allred
Stateline Chrysler Jeep Dodge
NADA 2010 Planning
Mark Skinner
Power Chrysler Jeep Dodge
Website Chairman
Steve Hofer
Park Chrysler Jeep
THE GUILD MOTTO “THE EXCHANGE OF INFORMATION BY LIKE SIZE DEALERS IN A NON COMPETITIVE ENVIRONMENT” This is the reason the Guild exists. The strength of our existence relies not on the voices of a select few, but on the combined knowledge of all. With this in mind, everyone should remember to become as proactive as possible. The Guild is YOURS, be proud of it and be part of it!