Mopar Masters Guild Magazine Jan - Feb 2018 Edition by Don Cushing

Leaders in the sale of quality Mopar Parts.

January - February 2018

Also In This Issue

Mopar Masters Guild Prepares for 26th Annual MeeƟng at NADA Las Vegas!

From the Desk of MMG President Susan McDaniel ............. 2-3 NADA 2018 Preliminary Info ........ 4-6 Scheduled MMG Members Attending Annual Meeting ....................................7 Ram Plan Brings Detriot Ripples ................................. 8-9 Waymo, FCA Expand Partnership ......................................9-10 Fiat Chrysler Sticks with 2018 Forecast ......................................10 The View from My Office...........11-13 MMG Supporting Vendors .........14-15 Reynolds & Reynolds ...................16-17 UPS .................................................18-20 AER Manufacturing ...........................21 CDK Global ...................................22-23 Autobody News ...................................24 Elite Extra ...........................................25 10 Missions Media .............................26 Katzkin Leather ..................................27 Snap-On Business Solutions .............28 OEConnection .....................................29 Dataset .................................................30 Rousseau Storage ...............................31 “Anatomy of a Lawsuite” Pulls No Punches at ABAC Meeting .........32-33 Adjuster: “Want to Get Paid?” ..34-35 2018 MMG Committees ...................36

The exchange of information by like size dealers in a non-competitive environment.

Mopar Masters Guild

January - February 2018

From the Desk of MMG President Susan McDaniel LET GO and LET’S GO! Hello Everyone! It’s almost me for our BIG EVENT in Las Vegas! I hope you all have made your reserva ons because the rooms are going quick! We have rooms blocked at the Monte Carlo on Las Vegas Blvd., right smack dab in the middle of the Las Vegas strip. Please click on the passkey below if you have not booked: h ps://aws.passkey.com/go/SMOP0318PK Our 20 Group with Mark Beaton and Jen Short (oﬀering #638633) will begin on Monday morning March 19th and conclude Tuesday a ernoon March 20th. It is always a pleasure to get together with everyone at these 20 Groups to share ideas and concepts especially now that we have so many Service Managers involved. It is always eye-opening to hear the processes and ideas that make other dealerships successful…let’s face it, we could all use some fresh ideas! Our Mopar Masters Guild mee ngs will begin on Wednesday morning at 7:00 A.M. and, of course, breakfast will be served….well, actually, you will serve yourself….but you get the jest of it..right? We will have a jam packed schedule this year with introduc ons, elec ons, vendor presenta ons, and Mopar mee ng with us Thursday a ernoon. Please see outline below: Monday – March 19th – FCA 20 Group – 8:30 A.M. – 4:30 P.M. Tuesday - March 20th – FCA 20 Group – 7:00 A.M – 12:00 P.M. Wednesday – March 21st – MMG mee ng – 7:00 A.M. – 5:00 P.M. Thursday – March 22nd – MMG mee ng – 7:00 A.M. – 5:00 P.M. Friday – March 23rd – NADA Floor to support our vendors! Saturday – March 24th – MMG mee ng – 7:00 A.M. – 5:00 P.M. (See Full Tenta ve I nerary on Pages 4-6) We will have open discussions on today’s topics that are directly aﬀec ng our business but our main theme will be focused on “growing our retail service lane business”. As always, we like to plan events where we can relax with some food and beverage to get to know each other and let our hair down a li le.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Tuesday – March 20th – 6:00 P.M. – 9:00 P.M. – The Moon Nightclub – located at the top of the Palm’s Fantasy Tower at the Palm’s Hotel Wednesday evening – Explore Las Vegas! Thursday – March 22nd – 9:00 A.M. – 12:00 P.M. – Ladies Brunch at The Hexx – Located at the Paris Hotel in the heart of the strip. The Hexx has spectacular views of the Bellagio Fountains! Thursday – March 22nd - Recep on for Vendors, members and guests, Mopar – Drai’s A er Hours Drai’s A er Hours is located at The Cromwell Hotel (basement level). This will be a good me to get to know our vendors, members and their guests, along with our friends from Mopar. This is the big night where we go all out to let each and every one of you know how much we appreciate you and how important it is to the growth of our businesses that we con nue to come together and share our ideas with each other. I know how hard it is to leave our departments behind and venture out of the store for so long but just think about what you will gain from being around this group of great minds who have great ideas to share and great connec ons to be made. Let’s face it, we could all use the help. So LET GO and LET’S GO! Your President,

Susan Susan McDaniel susan@billluke.com 602.336.1557

“Leadership and learning are indispensable to each other - JFK”

The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

Mopar Masters Guild IƟnerary – NADA 2018 (TentaƟve)

Monte Carlo Resort & Casino - 3770 S Las Vegas Blvd, Las Vegas, NV 89109

*FCA 20 Group MeeƟngs will be held in Victoria Room 1 *MMG MeeƟngs will be held in Victoria Rooms 1 & 2 *All Lunches will be held in the Kensington Gardens Room Monday March 19th, 2018 FCA Performance InsƟtute Day 1 8:30am – 4:00pm

Service & Parts Managers 20 Group

Tuesday March 20th, 2018 FCA Performance InsƟtute Day 2 8:30am – 4:00pm

Service & Parts Managers 20 Group

Tuesday March 20th, 2018 Mopar Masters Guild Welcome RecepƟon 6:00pm - 9:00pm The Moon Nightclub Located at the top of the Palm’s Fantasy Tower at the Palm’s Hotel 4321 West Flamingo Rd, Las Vegas, NV 89103

Wednesday March 21st, 2018 7:00am – 7:45am 7:45am – 8:45am

Breakfast MMG Discussions President’s Opening Comments of the 26th Annual Mopar Masters Guild MeeƟng Secretary’s PresentaƟon of Minutes Treasurers’ Report CommiƩee Reports Continued on Page 5 Guild Business Old/New

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Continued from Page 4 8:45am – 9:00am 9:00am – 10:00am 10:00am – 10:15am 10:15am – 12:00pm

12:00pm – 12:45pm 12:45pm – 1:45pm 1:45pm – 2:00pm 2:00pm – 2:45pm 2:45pm – 3:00pm 3:00pm – 3:45pm 3:45pm – 4:00pm 4:00pm – 5:00pm 5:00pm

Break MMG Discussions ConƟnue Break Tier 2 Vendor Fair Featuring: •

Corporate Billing, LLC

•

Rousseau Metal/Storage

•

Autobody News

•

10 Missions Media (FenderBender/Ratchet+Wrench/Fixed Ops Business)

•

Katzkin Leather

•

Elite Extra

Lunch/Vendor Fair cont. Guest Speaker - OEConnecƟon Break Guest Speaker - CDK Global Break Guest Speaker - AER Manufacturing Break Guest Speaker - Snap-On Business SoluƟons Adjourn

Explore Las Vegas!

Thursday March 22nd, 2018 Spouses Brunch 9:00am – 12:00pm

Brunch at The Hexx – Located at the Paris Hotel In the heart of the Strip – Spectacular Views of the Bellagio Fountain!

Thursday March 22nd, 2018 7:00am – 7:45am 7:45am – 8:45am 8:45am – 9:00am 9:00am – 9:45am 9:45am – 10:00am 10:15am – 10:45am 10:45am – 11:00am 11:00am – 12:00pm 12:00pm – 12:45pm 12:45pm 1:45pm – 2:00pm

Breakfast MMG Discussions Break Guest Speaker - UPS Break Guest Speaker – Reynolds & Reynolds Break PreparaƟon for FCA Lunch Welcome Mopar Break

Continued on Page 6

The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

Continued from Page 5 2:00pm – 3:30pm 3:30pm – 3:45pm 3:45pm – 5:00pm 5:00pm

Mopar ConƟnues Break Mopar ConƟnues Adjourn

Mopar Masters Guild Annual Cocktail RecepƟon 6:00pm – 10:00pm

RecepƟon for Vendors, members and guests, Mopar Drai’s AŌer Hours – 3595 Las Vegas Blvd South – Las Vegas, NV 89109

Friday March 23rd, 2018 8:30am - ???

NADA ConvenƟon Floor Las Vegas ConvenƟon Center & Westgate Las Vegas Resort & Casino

Saturday March 24th, 2018 7:00am – 7:45am 7:45am – 8:45am 9:00am – 12:00pm 10:45am – 11:00am 12:00pm – 12:45pm 12:45pm – 1:30pm 1:30pm – 1:45pm 1:45pm – 3:15pm 3:15pm – 3:30pm 3:30pm – 5:00pm 5:00pm

Breakfast MMG Discussions MMG Discussions Break Lunch MMG Discussions Break MMG Discussions Break MMG Discussions Adjourn – End of MMG 2018 MeeƟng

Sunday March 25th, 2018 Depart for Home Safe Travels! See you all in San Francisco for the Mopar Masters Guild’s 27th Annual MeeƟng!

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Scheduled Attendees for the 26th Annual Mopar Masters Guild Meeting Casey Don Gerry Mike Marvin Shane Susan Jim Tony Eric Carl Rick Mike Joe Derek Dean Phil Mick Bob Chris Tom Alan Randy Kent Gary Rick Cody Robert Glenn Tom Bill Rick Robert Doug Paul Dan Tim

Brown Cushing Oakes Opperman Windham Birdyshaw McDaniel Jaeger Bailey Avondet Kellums Stewart Wiseman Mcbeth Johnson Taylor Krueger Padgeon Wi g Brodeur Watson Yancey Rogers Cogswell Block Monteiro Eckhardt Chatwin Hojnacki Saigh Wheeler Cutaia Brown Price Allred Hu on Miller

AUTONATION KATY BALD HILL DCJR BAXTER AUTO BAXTER AUTO BENCHMARK CDJR BENCHMARK CDJR BILL LUKE CJDR BOSAK MOTORS OF MERRILLVILLE BOSAK MOTORS OF MERRILLVILLE BRUNSWICK AUTO MART BRUNSWICK AUTO MART COMMONWEALTH DODGE RAM COMMONWEALTH DODGE RAM DALLAS DODGE CJR DALLAS DODGE CJR DEPENDABLE DODGE DEPENDABLE DODGE FRED BEANS DCJR GANLEY CDJR Glenn E. Thomas DCJ GUEST HAYES CDJ HUFFINES CJD PLANO JACK PHELAN DODGE JACK POWELL CJDR JACK POWELL CJDR LARRY MILLER CJDR LARRY MILLER CJDR MILOSCH’S PALACE CDJR MILOSCH’S PALACE CDJR PERKINS MOTOR COMPANY RICK HENDRICK DCJR RICK HENDRICK DCJR SECURITY DODGE STATELINE CJDR TOM OBRIEN CJDR TOM OBRIEN CJDR

The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

Ram Plan Brings Detroit Ripples

FCA US’ plan to spend $1 billion to move produc on of its heavy-duty Ram pickup out of Mexico has big economic implica ons for Detroit. But it’s unclear how far the project’s ripples will spread — or when. Suppliers are typically the biggest generators of jobs in a major plant project, but FCA already has a large number of truck suppliers in the Detroit area, says Mike Robinet, managing director of IHS Markit’s automo ve global advisory prac ce. Last month, the automaker revealed that in 2020 it will move heavy-duty Ram produc on from Sal llo, Mexico to its Warren, Mich., assembly plant north of Detroit. In discussing the plan with reporters, FCA CEO Sergio Marchionne called moving the pickup to Mexico in 2008 “an error.” The Warren plant already is scheduled for a major capital project, handing oﬀ produc on of the light-duty Ram to a nearby Detroit-area assembly plant with increased capacity, while Warren will be repurposed to build high-end, body-on-frame Jeep SUVs. Adding the heavy-duty Ram will require the automaker to hire 2,500 workers on top of the work force needed for the Jeep plan, FCA said last month. But unclear is how much addi onal spending or how many more Detroit-area jobs will be created by suppliers to the pickup. Continued on Page 9

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Continued from Page 8 Many heavy-duty Ram suppliers are also likely to provide parts for the light-duty Ram 1500, which has been moved 10 miles north to FCA’s Sterling Heights, Mich., assembly plant. Robinet believes bringing the heavy-duty Ram to Michigan will shore up some suppliers that might have had produc on decline in recent years. But other suppliers will need to make new investments and add workers, he said. The Ram supply chain has received few specifics. An FCA representa ve told suppliers in a three-minute conference call on Jan. 26 that they should con nue planning to support the launch of the next-genera on heavy-duty Ram in Sal llo in January 2019, with their current parts plants, according to one supplier on the call. The FCA representa ve said that early builds of the next-genera on heavy-duty pickups would be produced in Mexico through April of this year, with preproduc on models star ng in October, also in Mexico. That schedule means that suppliers will have to be prepared to meet 2019 produc on requirements for the truck in Sal llo while preparing to launch parts for the truck 1,800 miles north in Michigan in 2020. “It’s going to be a cost, no ques on about it,” said Julie Fream, CEO of the Original Equipment Suppliers Associa on, which represents auto suppliers. “Who bears that cost will have to be nego ated between FCA and its suppliers.” A spokesman for FCA declined to comment. Marchionne said the Sal llo plant would be repurposed to build one-ton commercial pickups for export to FCA’s Europe/Middle East/Africa, La n America and Asia Pacific regions. Source: www.automo venews.com

Waymo, FCA expand partnership to ‘thousands’ of Chrysler Pacifica minivans Fiat Chrysler Automobiles agreed to supply “thousands” of Chrysler Pacifica minivans to Waymo, Google’s self-driving aﬃliate, for its ride-hailing pilot and public road tes ng, the two companies said Tuesday. The agreement adds to the 600-vehicle fleet the automaker has already supplied, further cemen ng a partnership formed in 2016. “With the world’s first fleet of fully self-driving vehicles on the road, we’ve moved from research and development to opera ons and deployment,” Waymo CEO John Krafcik said in a statement. “These addi onal vehicles will help us scale.” The companies did not specify the exact number of vehicles involved in the agreement, but Waymo said the volume and meline would depend on the progress of its self-driving pilots. FCA will supply the first wave of minivans late this year. Continued on Page 10

The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

Continued from Page 9 The Pacificas that FCA supplies to the tech company are specifically designed to integrate Waymo’s autonomous driving hardware and so ware. By working with a large-scale automaker, the self-driving company is looking to quickly scale the technology for its planned commercial ride-hailing service. In November, Waymo said it would remove the safety drivers from its small-scale ride-hailing pilot in Chandler, Ariz. The company is also performing public road tests in 25 ci es, including San Francisco, metro Detroit, and most recently, Atlanta. The partnership with FCA is the only such rela onship Waymo has established with an automaker. The tech company was reported to be in talks with Ford Motor Co. and Honda Motor Co., though no agreements have emerged. Source: www.automo venews.com

Fiat Chrysler sticks with 2018 forecast as profits rise Fiat Chrysler Automobiles commi ed to mee ng ambi ous 2018 financial targets set by outgoing CEO Sergio Marchionne, as the automaker builds on a shi to SUVs and crossovers that boosted earnings last year. FCA said fourth-quarter earnings before interest and taxes rose 22 percent to more than $2.3 billion. Net profit nearly doubled to $997 million. Total revenue in the quarter fell 3 percent to $35.9 billion. For 2018, FCA’s adjusted earnings before interest and taxes will total at least 8.7 billion euros ($10.8 billion), the automaker said Thursday in a statement, equal to the lower end of a profit range it’s been targe ng in a five-year business plan. The company bolstered profit margins with lucra ve SUVs and crossovers at its Jeep, Alfa Romeo and Masera divisions. New versions of the Jeep Wrangler SUV and Ram 1500 truck and a refreshed Jeep Cherokee are slated to go into produc on in the first few months of this year. In addi on, changes in U.S. tax law are projected to save the company $1 billion a year. Improving margins in North America led to $5,500 profit-sharing checks on average for UAW members, up from $5,000 a year earlier, Fiat Chrysler also said. These payouts will be on top of a $2,000 bonus paid to all U.S. workers, except for top execu ves, related to the U.S. corporate tax cuts. Fiat Chrysler cut its industrial debt almost in half last year, to 2.39 billion euros ($2.97 billion) from 4.59 billion. The company could be debt-free by the end of the second quarter, Marchionne said last week in Detroit. Marchionne plans to re re early next year a er seeing the business plan through 2018 to comple on and setng out a new mid-term strategy in coming months. The CEO, who has run Fiat since 2004, has said he expects one of the carmaker’s top managers to succeed him. Source: www.automo venews.com

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

The View From My Oﬃce

With Kat Monteiro

Hello everyone from sunny California! Yes, it is February and winter should be in full swing but I am afraid that Old Man Winter has forgo en about us here in San Diego where the temperatures have been running in the 70s and 80s, the sky is blue and we have only logged about 5 inches of rain since October! Now don’t get me wrong! I know that many of you have been hammered by Old Man Winter, and I would not want to trade places with you (sorry) but I would like to have a li le winter with a li le bit of rain. Meanwhile many of the flowers and trees have been fooled into thinking it is Spring and it is truly beau ful here in Southern California. Coming up soon is NADA in Las Vegas baby! Looking forward to seeing everyone and catching up. Looks like the Guild Commi ees have been working hard to put on some great gatherings and par es, like they do every year! Our events have become well known and the hot cket in town! Can’t wait to see what they have in store for us this year. For this issue I wanted to write about our trip back to Texas for the AER/Fred Jones Focus Dealer trip. I was very excited to be included and able to a end with Rick as his outside sales representa ve. The mee ngs and tour of the AER Plant were on a Monday and Tuesday in Addison, Texas. My story starts on Saturday! Rick and I flew in early on Saturday. We had 2 nights on our own before we needed to be at the host hotel and we have no plans. We caught an early flight so we landed early and had most of the day. We rented a car and headed down the road to Fort Worth. I have never been there so I was excited to see the Longhorn ca le drive. When we got there we had an awesome lunch and then had some me to walk around before the ca le drive. What a great place! We found a li le bar right on the route to hang out and wait. Continued on Page 12

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January - February 2018

Continued from Page 11 When it started I walked out to the curb to get a closer view. Those Longhorn caƩle are big! It was so cool! And we were there on a special day because a er the ca le drive, we were treated to a hometown Christmas parade. It was so fun to see all the local kids and all the riding clubs on their horses all decked out. The adults driving old trucks and tractors, horse drawn wagons with people waving at us as they went by. It was a great experience and I am so glad I got to go. So that night we booked a room at a bed and breakfast that was close by. It was called The Texas White House. It was so charming and comfortable , I could have stayed there for days and been completely content. If you are ever in the area I highly recommend it. Sunday we woke up, had a great breakfast with some of the other guests and then we were on our way over to the the George W. Bush Presidenal Library. I really enjoyed the Presiden al Library. Since it was December their special exhibit was White House Christmas Trees so it was really beau ful. And they had an area dedicated to George and Laura’s Sco sh Terriers Barney and Miss Beazley, it was so cute. Rick even got to play President in the Oval Oﬃce, si ng at the big desk with the secret phone and the red bu on! It was an enjoyable a ernoon, well worth the visit. Now where to go next? Food started to come to mind so Rick hit the internet and found Babe’s Chicken Dinner House. That is how we ended up in Frisco, Texas Sunday night! Now if you have never been to a Babe’s Chicken House - go! It was so fun! You get a choice of 3 diﬀerent types of chicken - fried, hickory smoked, or chicken fingers. Then it comes with creamed corn, mashed potatoes and gravy, green beans, yummy biscuits and a salad served family style. It was the best fried chicken I have ever had. The atmosphere is fun and if you so desire you can get up with the servers and all the small children and dance the hokey pokey! Monday we drove around some more and ended up by some big lake and crossed over a bridge that rivals Lake Pontchartrain! Not quite as long but it was s ll a long way to the other side. We finally ended up in Addison where we checked into the hotel and got ready to go meet up with our hosts. Monday evening we met up with Dave Carroll, Greg Gordon, Bill Taylor and Chris Wages of AER. We all piled in vans and headed over to Jaxx’s for dinner. It was a great dinner and good company. Tuesday morning a er breakfast we had a training session with Bill Taylor. Continued on Page 13

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Continued from Page 12 He went over new tools that are available to us and gave some really good informa on and encouragement to get out there and sell power train. This was my first me at one of these types mee ngs, I felt honored to be able to a end. A er the mee ng we headed over to the AER (Authorized Engine Rebuilders ) plant where Jus n took us on a guided tour through the plant. It was amazing to see the process and what goes into remanufacturing engines for Mopar. I was impressed by the detail that goes into the process. Knowing that the engines remanufactured here are to Chrysler specifica ons and that all components are replaced with brand new factory Mopar parts is good informa on I can take back and share with my customers. People at this plant work hard and they take their jobs seriously and pay a en on to detail. I give them real big Kudos because it is hard and some mes dirty work. A er the tour we loaded back up in the vans and we were the lucky ones because our driver ended up being none other than Ma McGraw - AER Vice President, the owners son! It was a fun ride over to Pole Posi on where we were heading for lunch and some go kart racing. He told us about his days as a kid working at the plant for his dad. Now he and his brother Robert have taken over opera ons with their dad, Bob s ll at the helm. Three genera ons of McGraws have made AER the leader in remanufacturing and reassembleing engines. Originally started back in 1945 with Ford, they now have 5 lines, FCA Chrysler being the most recent addi on in 2016 when AER acquired Na onwide Chrysler Distribu on from Tracy Industries and partnered with Fred Jones Enterprises in sales and distribu on. Over at Pole Posi on everyone had the opportunity to really let go and have some fun. I was impressed that Ma McGraw was out there racing with the rest of them. He was a great guy, easy going and just fit right in with the group. It was a pleasure ge ng to talk to him. So all the boys got out there and raced their hearts out. Some doing really well, others spent a lot of their me spinning out. It was a hoot! Lots of laughs, high fives and cheering going on. Here again, watching all these guys - parts managers from diďŹ&#x20AC;erent dealers and states - all in the same room together having fun, really speaks loudly about our group. A er all, in one way or another they are compe tors, but chose to share, talk, encourage each other and figure out how to be the best they can be at what they do. I hope to see some of the group attending Mopar Master Guild mee ngs in the future. At the end of the day I would like to say congratula ons to our race winners. 1st place - Jarrod Bandy 2nd place - Eric Schmid 3rd place - Jeremy Tietz Greg Gordon announced his re rement. I would like to say to Greg that it was a pleasure to have met you. Have a great re rement you will be missed. Thanks to all of you who read this and to Don for publishing it!

Kat

The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

Our Supporting Vendors:

Support those who support you.

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Our Supporting Vendors: Support those who support you. The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

With Reynolds’ telephone system,

we reached 97% CSI. Experience Personalized Communication

Reynolds Retail Management System…transforming the way consumers experience your dealership.

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Meghan Scranton Dealer Principal Scranton Motors Vernon, CT

Leaders in the Sale of Quality Mopar Parts

Labor sales are

up 130%.

Randy Yockey Co-Owner Friendly Ford Roselle, IL

Experience Service Advanced Service – Part of Reynolds Retail Management System… transforming the way consumers experience your dealership.

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January - February 2018

This is the third in an installment based on Routes to the Future.

www.ups.com/future

How Analytics Will Drive the Logistics of the Future By Jack Levis, Senior Director of Process Management at UPS

Today, companies mostly use data to explain what has already happened, a practice known as descriptive analytics. The more advanced companies, however, turn to analytics to predict what might happen next.

Image: Oakland wire overlay train station

Mopar Masters Guild Magazine

But just 3 percent of firms deploy prescriptive analytics, which goes beyond prediction and determines the optimal action to use. This scant count will undoubtedly grow. We’ll see businesses use analytics to diagnose – and solve – problems well before they even realize an issue exists. Imagine that.

Leaders in the Sale of Quality Mopar Parts

Overall, data is expected to grow 50 times by the year 2020. The question is how companies will turn that data into insights to make better decisions. In the world of logistics, analytics will help us get packages to your doorstep faster and in a more personalized manner than ever before. We’ve already seen the transformative power of analytics investments: I was part of a team that designed ORION, a proprietary routing software that helps UPS drivers select the most efficient delivery route. ORION looks at all the things a delivery driver needs to do: the stops that day, required service times, even less-obvious issues like lunchtime. No matter how outwardly counterintuitive at times, ORION spits out the ideal plan for a driver to follow. But for problem-solving purposes, even this level of technology is incomplete. We need to move from wisdom to clairvoyance. I’m talking about foresight that would make Sherlock Holmes jealous. By combining the power of predictive and prescriptive analytics in real time, systems will look clairvoyant to the user. That, friends, is the Holy Grail.

But imagine a system in which we can predict, with near certainty, the fastest way to move any parcel between different modes of transportation – and in real time. The data would even tell us who should drive the delivery vehicle. A completely optimized network provides unlimited ways to get anything to any destination, making the supply chain more ﬂexible. In the process, we would eliminate chronic inventory problems by ensuring supply never outpaces demand. Analytics also will revolutionize how logistics companies manage their ﬂeets, providing the equivalent of a check-engine light on steroids. Say you’ve ordered 1,000 alternators for delivery trucks. Big data will tell you exactly when the parts begin to deteriorate.

Data is expected to grow times

by the year 2020

We’ll soon see systems so advanced they won’t wait for traffic issues before reacting. They’ll predict when and where gridlock will occur and communicate to smart vehicles, re-routing drivers as needed. Everyone’s commute improves. Analytics will enhance the entire transportation network, rather than just improve an isolated step in the supply chain. This is transaction-by-transaction optimization. For example, we’ll crunch the numbers to determine the speciﬁc trailer that can best transport an individual package to its next destination. We would know the exact time a trailer should move, how far it should go, the speciﬁc moment it should stop and whether a package should go somewhere else.

People always ask me about the next algorithm. I tell them that we have to get the data right ﬁrst and make maps even more accurate. These maps will include not just a street address but the exact location of your mailbox – and better yet, the distance between various mailboxes. Coupled with every bit of available information about the weather and traffic patterns, logisticians will do more than predict the most efficient route for delivery. They’ll know when and where to send trucks – and why they’re doing it.

This will become reality at some point in the next 10 years. The logistics of the future will tap into human resourcefulness and with an assist from analytics, help us find solutions not yet imagined. Once we gather the data, innovation will follow.

The exchange of information by like sized dealers in a non-competitive environment.

January - February 2018

UPS Dealer Services Drive Better Performance Receive exclusive MarketCenter dealer discounted pricing on: •

Small package/parcels shipped via domestic ground/air and international services - Savings up to 20% for ground shipping - Savings up to 70% for air shipments

Reduce returns costs •

Ensure compliance by controlling speed and cost of inbound shipments.

•

UPS Returns® services provide you and your customers full visibility and tracking for return shipments.

Improve operational efficiency Quantum View® technology allows you to track your inbound and outbound UPS shipments, customize reports and keep your customers informed of shipment status or potential delays.

Simplify processing and billing UPS Billing Center allows you to receive and view your invoices faster, pay online and create reports to track shipping costs.

Streamline online sales Turnkey solutions offered by UPS Ready® Marketplace Providers allow you to strengthen just about every aspect of your online offering — from website development to order management tools to streamline your orders from all sales channels.

To enroll, visit www.DealerCONNECT.com or visit the FCA US Market Center site located within Dealer Connect. To learn more about UPS’s Market Center Shipping Advantages: Contact the UPS support line at 1-800-567-9989.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

AER AND FRED JONES

POWERTRAIN PRODUCT AND SALES TRAINING OPPORTUNITIES. MOPAR POWERTRAIN NETWORK (AER) AER Sales and Manufacturing is the world’s largest engine remanufacturer and is a Tier 1 supplier to FCA US LLC. AER, along with partner Fred Jones, is the national Mopar Powertrain Network with 34 warehouses nationwide, fully stocked with Mopar powertrain products ready to ship to you.

AER OFFERS A TEAM OF 31 DEDICATED SALES SUPPORT SPECIALISTS TO HELP YOU GROW YOUR BUSINESS AND PROVIDE SAME-DAY DELIVERY AND DROP-SHIP CAPABILITY, INCLUDING: » Inventory available locally — save time getting the part to your customer! » 34 warehouse strategically located throughout North America to enable you to sell to national accounts » Hot Shot/drop ship deliver — saves you expense, saves employee resources and frees up your vehicle for other parts deliveries » National core pickup: You can pick the core up, or Mopar Powertrain Network (AER) can pick it up at $100 charge (gas engine or transmission) or $125 charge (diesel engine)

Free delivery to you or your customer (if AER stocks the part)

SEVEN INFORMATIVE AND MOTIVATIONAL TRAINING CLASSES (APPROX. 2 HOURS EACH): » NEW FOR 2018 How to ﬁnd, gain and retain new business » INSIDE SALES PERSON TRAINING #2 ADVANCED A deeper dive into phone selling skills, role playing, and handling difﬁcult customers » OUTSIDE SALES REP TRAINING #1 The basics of outside sales (Prerequisite or combine with Inside Sales Person Training #1) opportunities, product and competition knowledge

» »

OUTSIDE SALES REP TRAINING #2 Finding business, overcoming objections, schedule planning and role playing (Prerequisite: Outside Sales Rep Training #1) INSIDE SALES PERSON TRAINING #1 Includes counter personnel (retail and wholesale), focusing on product and competition knowledge, and selling O.E. powertrain

SERVICE ADVISOR SALES AND PRODUCT TRAINING Product and competition knowledge, and selling O.E. powertrain

DRIVERS CLASS For anyone who comes into contact with customers not covered in other classes (30–60 minutes)

KNOWLEDGE IS POWER All training classes are offered at NO COST to you or your employees and meals or snacks are provided. For more information or to schedule one of these courses, contact Bill Taylor, AER National Trainer, at billtaylor@aermfg.com; your local AER or Fred Jones Powertrain Sales representative; your FCA US LLC Area Manager; your FCA US Wholesale Manager; or call (540) 419-4882. Don’t wait to increase your sales and proﬁts! Our classes are meant to be motivational as well as informative! *Note: It is strongly recommended that management attend the Sales Awareness course before sending any employee to any of the other courses listed.

MOPAR POWERTRAIN NETWORK (AER) LOCATIONS

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We focus on you.

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Your customers want an experience that’s convenient, consultative and customized. And we’re dedicated to helping you make it happen. Now.

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We focus on service. So you can serve your customers better.

Customers want your Service department to take good care of them and their cars. We help you make it look effortless.

Customer connected.

Dealer driven.

cdkglobal.com ÂŠ 2018 CDK Global, LLC / CDK Global is a registered trademark of CDK Global, LLC. 18-0120

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We’ve Got You Covered! Don’t Risk Losing Parts Sales if the Internet Goes Down. Choose EPC 5 for FCA as your Backup Parts Catalog of Choice. We know the EPC is a critical tool that you and your dealership rely on to drive parts and service revenue, and support your customers. Snap-on’s EPC 5 for FCA is a reliable, low cost EPC that can be installed on a local PC and doesn’t require internet connection. Eliminate the risk of lost sales that may occur due to your current EPC being down during an internet outage. Sign up for one seat of EPC 5 for FCA today as a backup catalog and never lose parts sales again.

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ABAC Hosts Attorney Todd Tracy “Anatomy of a Lawsuit” Presentation Pulls No Punches! President Tony Ferraiolo met A orney Todd Tracy at an interac ve OEM Summit Mee ng while a ending SEMA. “He pulls no punches, he’s uncensored and tells it like it is!” When you’re right you can fight ll the end. Times are changing due to the complexity of today’s vehicles.” asked Ferraiolo. You will have to change the way you do things in your business,” he con nued. That was the opening salvo at the January 11th special event hosted by the ABAC welcoming A orney Todd Tracy, who recently won a $42-million-dollar verdict against a Dallas, Texas repair facility. Mr. Tracey, who spoke at SEMA, is very dynamic and passionate about vehicle safety and he believes that our industry is ready to fight and prevail over the insurance bullies that dictate safety repairs to our shops. He is leading an eﬀort in Texas to enact legisla on that prohibits insurers from dicta ng repair methods. Ferraiolo introduced Mr. Tracy to the guests and started his presenta on with, “How many of you have had the insurance companies bully your shop into doing repairs that you knew were NOT OEM cer fied? How many of you were bullied into using a ermarket parts instead of OEM parts? How many of you have not go en paid to repair a vehicle to the OEM specifica ons but always took what the insurance companies were willing to pay?” Well, that certainly got some a enon with the more than 80 a endees! Tracy con nued, “I’m not here to talk about your wages tonight because I don’t want anyone to think there’s an -trust going on here, but, what I will tell you is that there is nothing wrong with groups of people ge ng together and forming associa ons and talking about safety. Improving safety! I think it starts with all of you men and women that work in this industry. You’re on the front line of safety. Each and every day people come to you bringing their second most valuable possession they’ll ever own, which is their car, only behind their home. And they bring that possession to you to restore it back, so it will safely get them to and from work, get their wife and children to and from work and school and take care of their family in the event that another unforeseeable accident occurs. That is an incredible responsibility that people place upon you, and you deserve to get paid for these responsibili es. Continued on Page 33

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Continued from Page 32 And we are going to fight for you to do that.” “It’s me for somebody to get into the arena for all of you and this li le guy from Texas is willing to do it,” exclaims Tracy! Tracy then covered a few key points he would discuss:  Shops need to band together – not just 5 in Connec cut but 1,000  Remember who the primary voice is in this fight – The Customer  The customer needs to be informed AND involved  Social Media is your friend in this fight  Li ga on  Keep the sharks out of your shop  “Imita on” parts – NOT a ermarket  Why he won his landmark verdict.  How shops can avoid ge ng sued.  How our industry must stand up and fight the insurance companies who refuse to follow OEM repair specifica ons.  The results of 3 crash tests that he has commissioned out at KARCO Engineering that will evaluate the safety of a glued-on roof, a ermarket parts and an OEM vehicle when the same type of vehicle is evaluated under an IIHS moderate oﬀset impact. These tests will hopefully prove that OEM parts and repair specificaƟons must be uƟlized to ensure the safety of our customers. Mr. Tracy also gave us hands-on engineering techniques that will enable us to conduct more detailed repair es mates as we begin to start thinking about crashworthiness experts. Mr. Tracy then presented the details of the now famous 2010 Honda Fit lawsuit. He broke down each and every segment of the vehicle including all of the crash tes ng involved. He brought us through his presenta on, step by step, slide by slide, fielding ques ons throughout. “We will give every test that we conduct to the Auto Body Shop Associa ons around the country. We’ve run 3 tests so far. We’re going to run 3 more in February/March so that we con nually build up a database of informa on. This way, you guys and gals will finally get some ammuni on. I’m going to devote 18 months to this AND $5 Million dollars of doing the crash tes ng because it does cost a lot of money to do this. But that’s because I see a payday down the line for myself. I see a payday for you (the collision repair shops). But, most importantly, I see the opportunity to put the insurance companies in their place,” said Tracy The Auto Body Associa on of Connec cut would like to thank A orney Todd Tracy for making me available to meet with our members and guests and for presen ng us with this valuable informa on. Submi ed by Don Cushing

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Adjuster: Want to get paid? Document everything your auto body shop does A staff appraiser for a small na onal insurer this week pushed collision repairers to document every element of a collision repair, describing it as “a li le more work, to get paid a lot more.” The adjuster, whom we’ve agreed to keep anonymous to protect his job, provided a fascina ng look at the business from an insurer’s perspecve in an interview with us. He strongly encouraged shops to follow the lead of Montana shop owner Ma hew McDonnell and his message of “transparency.” McDonnell, who owns the small MSO the McDonnell Group, in 2017 promoted the idea that documentaon gets a shop paid in interviews with us, at a Collision Industry Conference and at SEMA. The Montana repairer has said he learned how to properly document a repair from Collision Advice CEO Mike Anderson and by asking two insurers to teach what they needed. It’s paid off with what McDonnell said was a 90 percent accounts receivable success rate despite o en having “200-line es mates.” McDonnell teaches “show what you do, and get paid for what you do,” the adjuster said. Label parts, photograph every step of a repair, and provide the OEM informa on to support what you’re doing. “You’re going to get paid if you do all of those things, without an argument,” the appraiser said. “… I’ll pay you. Just show me.” Shops who provide a “half-done es mate with no photos, I’m not paying you,” he said. The insurer agreed that “severity’s definitely higher” for his carrier when this happens, but as so few shops — he es mated 5 to 10 percent — show their work, “Are we really paying that much more?” “I do not get dinged in no way shape or form,” the adjuster said of his higher severity. The company ceased to grade adjusters on severity. Instead, it cares about factors like “leakage” and how many claims a staffer is handling. “If it’s required to be there … we will absolutely follow what the OEM standards say,” he said of his company. “You could teach a 12-year-old to do our job,” he said: If it’s documented, it gets paid. If every shop in the country learned from McDonnell, “insurance companies aren’t gonna like it.” DocumentaƟon protects insurer against ‘leakage’ audit “Leakage” in this case involves the adjuster paying line items on an es mate without something to support the decision, according to the adjuster. This reveals why documenta on is crucial. You might be frustrated at having to prove your work or expert opinion over and over. But the adjuster will be audited on how much documenta on he provides to back up what he paid you, and he needs that material to protect himself even if he knows you’re right. “That’s exactly it,” he said. The appraiser’s company always pays with the documenta on, but even if it didn’t, a shop could give the proof of the repair and the OEM instruc ons suppor ng it to the customer and let them challenge the carrier for denying something that obviously needed to be done, he suggested. “If it’s required, it needs to be paid,” the adjuster said. Shops ‘lazy’ about documentaƟon The real reason many shops aren’t ge ng paid is “they’re lazy,” he said. “They don’t want to show in-process photos,” he said. Are you fixing marks le by a frame machine? Show pre- and post-repair photos. Welding a quarter panel? Do the same. “Show all the damage,” he said. Is a trunk interior a different color than the exterior? “Show a picture.” Want to get paid for a painter’s me cleaning their gun? Document it. Continued on Page 35

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Continued from Page 34 Nine out of 10 shops don’t bother showing pre- and post-measurements of frame straightening, so why pay for it? Many shops, “they don’t show very many photos at all,” the appraiser said. He recalled a BMW X5 with $27,000 worth of damage — and the shop only took nine photos. “‘You know what, I’m not paying you,’” he said.” “That’s the issue that a lot of shops have to insurance companies,” he said. Asked why a professional opinion wouldn’t be enough, as seems to be the case with doctors, the appraiser recounted one example of a health insurer who had demanded a photo of a surgical procedure. “It’s pre y much the same thing as us in this field,” the appraiser said. “… They’re asking for photos as well.” Asked if he paid a shop for the me they spent collec ng such exhaus ve documenta on, he wrote in an email, “I have never paid for administra ve me, I feel that is part of ge ng paid. If it’s not documented you don’t get paid.” This adjuster requires documenta on to educate himself, survive an audit, and encourage the car to be fixed properly by sending shops to the OEM repair procedures. However, there’s also a cost-containment element as well, he acknowledged. “If you don’t do it, I don’t pay for it,” he said. Scanning This adjuster pays for his own training into auto body repair. It’s not provided by his company, nor do his colleagues seem to be pursuing it on their own, he said. This training has taught him the importance of certain procedures like scanning, but the knowledge also can be used to suit his needs as a carrier. For example, the adjuster says he knows he will always pay for scanning; he knows it’s necessary. However, if a shop doesn’t ask for scanning, he doesn’t include it on an es mate. If the shop is savvy enough to do so, he will approve that line item but zero it out ($0). Once documenta on is provided proving the scan — for example, an output showing the codes and the VIN of the car — he automa cally pays the shop’s bill. “I will absolutely pay for it,” he said. “… I don’t ques on scanning at all.” This has been convenient for shops who know him — they can go ahead and scan the car, as he won’t fight them on it as long as they ul mately support it with documenta on. The company formally authorized appraisers to pay for scanning in October 2017, but “I’ve been paying it since Day One” without issue, he said. He said he’s even used his familiarity with OEM repair procedures to nudge a couple of shops eager to learn in the right direc on and improve both the repair quality and his own knowledge. If they add a procedure, he’ll ask if it’s what the OEM states. “I now know if they’ve pulled them or not,” he said. The customer ideally gets a be er repair, the claim file has its documenta on, and he gets a chance to read repair procedures. When insurer knows correct repair, shop doesn’t Trying to grow one’s exper se through training can produce situa ons where the adjuster knows a necessary repair procedure being done. He said his shops who show an interest in learning will get a nudge in the right direc on. But he’s not going to include the item for just any shop unless the shop asks for and documents it. “I know it needs to be done, and they’re not doing it,” he said, calling that a diﬃcult thing. But at the end of the day, “the shop repairs the car,” he said — he won’t add items that should be done to an es mate just so the repairer will do them. “I don’t say, ‘Why isn’t it on there?’” he said. “I know it should be on there,” he said, but he said he also knows who pays his salary. He said he encounters a dilemma “every single day” regarding shop choice; he can’t tell the customer to take it somewhere else if he doesn’t think the shop is correct. He won’t always nudge the customer to ask for the correct repair either,; however, if the policyholder asks the right ques ons, “I will not lie to them.” Source: John Hue er - www.repairerdrivennews.com

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2018 20 18 M MG M G Committee Com m i t t eess Oﬃcers:

Execu ve Commi ee - All Oﬃcers Including:

President - Susan McDaniel - Bill Luke CJD – Phoenix, AZ Vice President - Andy Reed - AutoNa on DCJ – North Richland Hills, TX Secretary - Ma Jarvis - Bald Hill DCJR - Warwick, RI

Marvin Windham - Benchmark CJD – Birmingham, AL Rick Monteiro - Jack Powell CJD – Escondido, CA Joe McBeth - Dallas DCJ – Dallas, TX Paul Allred - Stateline CJD – Fort Mill, SC Gerry Oakes - Baxter CJD - Omaha, NE Dan Hu on - Tom O’Brien - Greenwood, IN Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

Commi ees: Nada 2018 Planning

NewsleƩer/Website/Social Media

Casey Brown - Autona on CDJ - Katy, TX

Don Cushing - Mopar Masters Magazine

Finance CommiƩee

Vendor Chairmen

Susan McDaniel - Bill Luke CJD – Phoenix, AZ Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

Paul Allred - Stateline CJD - Fort Mill, SC Mike Opperman - Baxter CJD - Omaha, NE

Vendor Commi ees CDK Global

Reynolds & Reynolds

Andy Reed - Allen Samuels DCJ – North Richland Hills, TX (Chairman) Paul Allred - Stateline CJD – Fort Mill, SC Mike Opperman - Baxter CJD - Omaha, NE Mick Padgeon - Fred Beans Parts - Doylestown, PA Rick Monteiro - Jack Powell CJD – Escondido, CA (ALT)

Marvin Windham - Benchmark CJD – Birmingham, AL (Chairman) Susan McDaniel - Bill Luke CJD – Phoenix, AZ Alan Yancey - Hayes CDJ - Alto, GA Ed Lueras - Perkins Mtr. Co. - Colorado Springs, CO Kent Cogswell - Jack Phelan CDJR - Countryside. IL Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

OEConnecƟon/Snap On

Dealer Tire

Dan Hu on - Tom O’Brien CJD – Greenwood, IN (Chairman) Paul Allred - Stateline CJD – Fort Mill, SC Steve Hofer - Park CJ – Burnsville, MN Robert Chatwin - Larry Miller Auto - Sandy, UT Marvin Windham - Benchmark CJD – Birmingham, AL

Susan McDaniel - Bill Luke CJD – Phoenix, AZ (Chairwoman) Tom Kellogg - Ziegler Auto Group - Kalamazoo, MI Joe McBeth - Dallas DCJ – Dallas, TX Robert Chatwin - Larry Miller Auto - Sandy, UT Cody Eckhardt - Larry Miller Auto - Sandy, UT Marvin Windham - Benchmark CJD – Birmingham, AL (ALT)

UPS

AER

Paul Allred - Stateline CJD – Fort Mill, SC (Chairman) Marvin Windham - Benchmark CJD – Birmingham, AL Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Ma Jarvis - Bald Hill DCJR - Warwick, RI

Mike Mulkins - Go Chrysler Jeep West - Golden, CO (Chariman) Glen Hojnacki - Milosch’s Palace CJD – Lake Orion, MI Josh Gouldsmith - Gladstone DCJ - Gladstone, MO Steve Hofer - Park CJ – Burnsville, MN

Katzkin

Elite Extra

Mike Gerber - Rairdon CDJ - Kirkland, WA (Chairman) Louis Osuna - Huﬃnes CJD - Lewisville, TX Dan Delisle - Golling CDJ - Bloomfield Hills, MI Mike Mulkins - Go Chrysler Jeep West - Golden, CO

Rick Monteiro - Jack Powell CJD – Escondido, CA (Chairman) Joe McBeth - Dallas DCJ – Dallas, TX

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