Mmg july aug 2013

July-Aug 2013

Leaders in the sale of quality Mopar Parts.

In This Issue President Steve Hofer............................... 2 Pictures from Mile High Nationals... 6-7

Mopar Masters & Invitees Meet with Mopar in Denver at Mopar Mile High Na onals Pages 3-5

MMG Supporting Vendors .............10-11 ADP ......................................................12-13 UPS .............................................................14 FenderBender/Ratchet+Wrench.........15 Mopar ...................................................16-17 OEConnection ....................................18-19 Elite Extra...........................................20-21 AutoBody News .......................................22

NADA 2014 Announcement Page 9

Tracy Industries ......................................23 Reynolds & Reynolds........................24-25 Avenger, Grand Caravan & Wrangler Lives Extended ........................................26 RI Governor Signs Total Loss Bill .....27

Har ord Insurance Hit with $20M in Damages to Auto Body Associa on of CT Pages 30-31

Connecticut Governor Signs Anti-Steering Bill ....................................28 CT Association Raises $13K .................28 Maryland Shop Owner Wins Short Pay Lawsuit Against GEICO .......................27 Traveling Exhibit Teaches Youth About Auto Repair .........................................30-31 2013 MMG Committee..........................32

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

Mopar Masters Guild

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July-August 2013

Letter from MMG President Welcome to another edi on of the Mopar Masters Guild Magazine. In this edi on you will find useful ar cles about current industry news & events, as well as product informa on from our many vendors. As business managers it is always a good prac ce to evaluate our processes and business partners. Having recently completed such evalua ons, I realized how important it is to align business efforts with the right partners. Many business partners can be found here as suppor ng vendors of the Mopar Masters Guild. I would like to thank each of our vendors for the incredible effort that they put into the success of our businesses. I would also encourage each Guild member to take me over the next 30 days to review your own processes as-well-as what each vendor can offer your business.

In this edi on you will find preliminary informa on about the 2014 NADA conven on and Mopar Masters Guild annual mee ngs. NADA commi ee members are working hard pu ng plans together so the mee ngs will be a great success.

As many of you know this is an elec on year for the Guild. If you are interested in becoming more involved in the Mopar Masters Guild, please contact me at shofer@parkchryslerjeep.com. I would be glad to speak with you about the different opportuni es.

Recently, Masters Guild members and various managers from Mopar dealers met with Mopar execu ves during the annual Mopar Mile High Na onals held in Golden Colorado. The mee ng included a revised format that will be discussed on pages 3-5. The mee ngs were extremely produc ve and produced a lot of great ideas that could help all dealers. I would like to thank the Mopar team for their commitment towards improved communica on with dealers. The mee ng showed the dedica on and desire Mopar has to help dealers grow their business. Based on the success of this mee ng I would also hope to see future mee ngs with even greater dealer involvement.

I hope you enjoy this edi on of the Mopar Masters Guild Magazine. There is a tremendous amount of effort that is put into this magazine, none of which would be possible without the dedica on and hard work from Mopar Masters Guild Members, partners, and suppor ng vendors.

Un l next me I leave you with the words of George Bernard Shaw “The Single Biggest Problem in communica on is the illusion that it has taken place”.

Steve Hofer

President Mopar Masters Guild

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Mopar Masters & Invitees Meet at Mopar Mile High Parts Forum in Golden, Colorado Well it’s hard to believe another year has passed and the Mopar Masters Guild has made a return trip to the Mopar Mile High Na onals in Golden, Colorado!

We would like to send a big “Thank You” to the folks at Mopar for their invita on, hospitality and especially for the opportunity to gather ideas and informa on that allows us to try to improve our business and come up with poten al solu ons and processes to help with customer reten on.

This year’s mee ng was an invita on only affair that included two parts managers from each Business Center from across the country. Each manager was chosen because of a specific area that they were doing an excellent job in a certain por on of our business. Also every Manager was a given an assignment to complete before the mee ng. Here are the six areas that Mopar targeted to try and enhance areas of improvement and the a ending managers assigned to those areas:  Accessory Business o Rick Cutaia – Hendrick CDJ o Dennie Hyde – Waldorf Dodge  Magne Marelli o Josh Gouldsmith – Gladstone DCJ o Sam Debner – Helfman DCJR o Tom Schelonka – Griffin’s Hub CJD  Retail Business - Tires/Brakes/Ba eries/Express Lane o Randy Redmond – Crystal CJDR o Dave Graham – Westbury JCD o Terry Doll – Earnhardt DCJR  Service Marke ng-Reten on o Dan Hu on – Tom O’Brien CJD o Eric Walther – Brenner CJ o Steve Hofer – Park CJ Continued on Page 4

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July-August 2013

Continued from Page 3  Wholesale-Warehouse Opera ons/Delivery/Warehouse Distributor o Chris Brodeur – Glenn E. Thomas DCJ o Mike Hull – Beck CDJ o Mike Griffin – Bob Howard CJD

 Wholesale Mechanical Business o John Bozek – Dover DCJ o J.D. Ipsen – Ken Garff CJD o Ed Paholski – Frank Boucher CJD In prepara on for our mee ng, each manager was asked by Mopar to complete 2 assignments and come prepared to speak on specific topics (each outlined below).

Assignment #1 Mystery Shop  Call three local Chrysler dealerships (to remain anonymous) and three independents and tell them you want a price for res. Based on what you encounter, what can we do about it? Some things to pay a en on to: o How many rings before they answered? o How were you greeted? o How long were you on hold? o Did they ask for the business? o How long will it take once you bring it in? o How much does it cost?

Assignment #2 Idea /Best Prac ce Sharing  Each of you will be grouped with 1 or 2 other Managers/Directors on specific topics. We would like each group of Managers/Directors to present (on your specific topic) at our mee ng on Friday, July 19th – About what each of you do in your dealership that works well (best prac ce) and Continued on Page 5

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Continued from Page 4 how can we get more dealers to do something similar. This will require each of you to reach out to the other Managers/Directors in your group to plan how you will be presen ng your topic.

The hope is to share best prac ces and generate dialogue amongst everyone in the room. We are looking for a na onal approach, process or policy that we can adopt to support these processes.

Other topics to be prepared to discuss:  Mopar One Funds o Top items you use the funds for o What would you like to be able to use your funds for  GM/Ford/Other OE/Non OE o Know something about another OE & a Non OE o What are they doing that is helping them grow their business  What is an effec ve dealership contact in your eyes: o S&P Area Manager o Accessory / Mopar Vehicle Protec on Rep. o Tracy  Dealership Targets o What is your growth target/expecta on (% increase Year over Year) for 2013 o What are your constraints

Each manager was given the floor and they presented best prac ces that each was doing to excel in the specific area assigned. Many terrific ideas were shared along with construc ve cri cism and helpful solu ons.

Mopar will schedule follow up conference calls to further improve on all areas discussed and to discuss any issues that may need to be inves gated. This was a new format for this year and it looks to be a valuable way to get ideas from all across the country and fresh informa on.

Respecƞully submiƩed by Rick Cutaia Vice President - Mopar Masters Guild

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July-August 2013

Mo opar par M Mii lle e Hi gh Hig h Na attio i on nal alss G olden Go lden C o l o ra d o Colorado

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Sha S harring ing i deas, ide as, con cer c e rns n s,, ffrrie i en ndsh dshiip p an d fun and fu n!!

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July-August 2013

Parts Driver or the Face of your dealership?

O en we look for ways to create new business or increase what business we already have captured.

Some me back we decided to make our drivers not just delivery people but outside sales representa ves.

A er all, who has more face to face contact everyday with our customers than our delivery personnel?

We installed a dress code for them to abide by. Khaki pants and a polo shirt is required dress each day instead of shorts and t-shirts We also changed pay plans. As we all know that’s what drives behavior! We kept the base pay the same but added a commission plan that pays them 1% of the sales of any new or lost customers that they bring to each store.

Like any change, for some employees this brought mo va on and to some it had li le to no change.

With others, once the “light came on” the realiza on that this was a way to start earning some serious extra cash made them step up their efforts!

Each store is responsible to create the sales territory and guidelines for lost customers and to print monthly sales commissions for each driver.

We used to have high employee turnover which is very costly but since the incep on of this program we have had very li le employee turnover which has resulted in very good rela onships between driver and customer and an increase in our business.

So if you want to see an increase in sales turn your drivers into sales representa ves and into the face of your dealership.

Submi ed by Rick Cutaia Vice President - Mopar Masters Guild

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NADA 2014 is Right around the Corner!

It’s that me of the year again when the Mopar Masters Guild begins its prepara ons for our Annual Mee ngs at NADA 2014 which this year is being held in New Orleans, Louisiana!

NADA Chairperson, Andy Reed is working diligently to make sure that this event will be another of the Guild’s Five Star gatherings.

Mark your calendars and watch for email updates very soon as the plans materialize.

Informa on on hotels, mee ng and Performance Group updates will be released as soon as we finalize the details! Preliminary dates have us arriving on Thursday January 23rd, 2014. MMG mee ngs on Friday & Saturday January 24th & 25th with Super Performance Group Mee ng on Monday & Tuesday January 27th & 28th. (These dates are subject to change!)

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

Our Supporting Vendors: Support those who support you.

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July-August 2013

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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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.

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July-August 2013

ADP ServiceEdge The Most Advanced Service Selling System Ever Created Capitalize on Customer Pay Opportunities With consumers holding on to vehicles longer than ever, a continued decline in warranty work, and customers defecting to independents, dealerships across the country are looking for ways to utilize technology to help bolster their Service revenue as well as improve customer satisfaction and loyalty.

ADP ServiceEdge: One Solution to Do it All ADP ServiceEdge can help you take your fixed operations to new heights of profitability by using innovative technology to meet your customers needs like never before. There’s no need to rely on one vendor for appointments, another for reception, and yet another for technician inspections. ADP ServiceEdge helps you manage the complete vehicle ownership life cycle in order to drive more profit in your Service department.

Appointments Harness appointment entry from multiple avenues with complete control and synchronization. It allows for first and ongoing customer appointment scheduling via the dealership website, MyVehicle Customer Portal, and with a Salesperson. All of this can be done with complete visibility and accountability.

Lane (Includes Appointments) Gives Service Advisors the ability to meet customers as they drive into the lane. Perform walkarounds with your customers in the same amount of time it takes most systems to pull up the customer. Take pictures of damage, note concerns and upsell services with a tap of a finger.

Inspect (Includes Appointments & Lane) Fully automates the inspection and streamlines the process of selling additional work. Parts and labor integration, powered by Mitchell®, combined with a state-of-the-art direct DMS interface, packs a powerful punch.

To learn how ADP ServiceEdge can help you drive more Service Customer Pay, call 888.424.6342 or visit us at www.adpdealerservices.com/adpserviceedge.

ADP Dealer Services, Inc. / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 © 2013 ADP Dealer Services, Inc. / ADP is a registered trademark of ADP, Inc.

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The vast majority of dealership customers first make contact via the phone, but every dealer knows that some calls go unanswered and some customers hang up prior to speaking with a store representative.

Call management is a process of collecting and managing call information coming into and going out of a dealership. ADP s Call Intelligence provides dealerships with detailed reports about your phone traffic in an easy-to-read and easy-to-understand graphical format. The dealerships that are winning more often are the dealerships that are managing their phone calls effectively.

ADP s Call Intelligence reports help you: Evaluate the effectiveness of Sales responses and marketing campaigns with detailed opportunity reporting Make informed staffing decisions with productivity reporting—highlighting the parts of your day and week when call volumes are highest Reduce phone-related costs with cost containment reporting, which identifies frequent, afterhours, international and unnecessary calls You can access these reports—and many more—right from your dashboard. To find out how your dealership can benefit from Call Intelligence contact your local ADP representative.

ADP Dealer Services, Inc. / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 Š 2013 ADP Dealer Services, Inc. / ADP is a registered trademark of ADP, Inc.

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

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July-August 2013

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Mopar Masters Guild Magazine

4/16/13 1:52 PM

Leaders in the Sale of Quality Mopar Parts

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ADVERTISING IS...

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We are a Proud Supporter of the Mopar Masters Guild. ©2013. All rights reserved.

CONTACT US TO FIND OUT HOW TO GET THE MOST OUT OF YOUR ADVERTISING DOLLARS. Contact: Chris Messer, Publisher

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July-August 2013

MAKE YOUR MESSAGE STAND OUT WITH DISPLAY PANEL INSERTS FROM THE SERVICE DRIVE STORE Service and Tire Center Display Panels These 2-sided display inserts are designed to fit the Display Tower Fixture. Simply select which combination of messages you’d like to promote, then choose which side to display. Make sure to utilize both sides of the Display Tower for maximum exposure. Consider purchasing two kits for greater impact.

Kit contains (6) 2-sided panels (for a total of 12 messages) plus an instruction sheet with recommended pairings.

LEFT: Display Tower RIGHT: Service Display Panels – $36.00 SKU: MM08002STDI01

www.dealers-mopar.com >Sales Tools >Service Drive Store> Service and Tire Center

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All-New Customizable Display Panels Choose from four versions of all-new display panel inserts that can be customized with your dealership’s information or pricing. t "MM .BLFT 4FSWJDFT $VTUPN %JTQMBZ 1BOFM o UIJT DVTUPN EJTQMBZ JOTFSU NBLFT JU LOPXO UIBU ZPVS EFBMFSTIJQ PGGFST B XJEF WBSJFUZ PG TFSWJDFT GPS BMM NBLFT BOE NPEFMT BU DPNQFUJUJWF QSJDFT t 0QFO 4BUVSEBZT $VTUPN %JTQMBZ 1BOFM o TQSFBE UIF XPSE UIBU ZPVS EFBMFSTIJQ JT PQFO GPS TFSWJDF PO 4BUVSEBZT XJUI TQFDJBM PGGFST GPS DVTUPNFST TFFLJOH DPOWFOJFODF BU B DPNQFUJUJWF QSJDF t &TTFOUJBM $BSF 1BDLBHF $VTUPN %JTQMBZ 1BOFM o SFNJOE DVTUPNFST UIBU ZPVS EFBMFSTIJQ JT UIF QMBDF to go for a great deal on an oil change. Featuring the popular four oil change package, this panel prompts customers to return to your dealership for their next oil change. t #SBLF 4FSWJDF $VTUPN %JTQMBZ 1BOFM o SFNJOE DVTUPNFST UP NBLF ZPVS EFBMFSTIJQ UIFJS mSTU TUPQ GPS CSBLF TFSWJDF BU B HSFBU WBMVF 'FBUVSJOH B GSPOU PS SFBS CSBLF TFSWJDF PGGFS UIJT DVTUPN QSJOUFE panel can be personalized with the pricing of your choice.

All Makes Services Custom Display Panel – $26.00 each SKU: MM08002STDI05

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www.dealers-mopar.com >Sales Tools >Service Drive Store> Service and Tire Center

Open Saturdays Custom Display Panel – $26.00 each SKU: MM08002STDI04

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* Excludes tax. Additional charges may be applied for uid disposal. May not be combined d with aany other offers.

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COMPLIMENTARY VEHICLE CHECKUP

MAKE MOPAR YYOUR FIRST STOP FOR VALUE ÂŽ

FRONT OR REAR BRAKE SERVICE FR

$

8995

See Service Advisor for details.

See Service Advisor for details. * Excludes tax. Additional charges may be applied for uid disposal. May not be combined with any other offers.

* Includes IInclu front or rear disc brake pad or shoe replacement with MoparŽ Value Line Brakes (semi-metallic), inspect rotor, drum and caliper, check brake uid level and road-test vehicle. Refacing/machining and uids extra. Lifetime rotor Limited Warranty on Mopar Value Line brake pads and shoes. See your Service Advisor for details. Original equipment Limit and ceramic brakes available at additional charge. Price does not include tax.

Š 2012 Chrysler Group LLC. All Rights Reserved. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC. FIAT is a registered trademark of Fiat Group Marketing & Corporate Communication S.p.A., used under license by Chrysler Group LLC. Printed in U.S.A.

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i˜iĂ€>Â?ĂŠ ÂœĂŒÂœĂ€ĂƒĂŠU ÂœĂ€`ĂŠUĂŠ ĂžĂ•Â˜ i˜iĂ€>Â?ĂŠ ÂœĂŒÂœĂ€ĂƒĂŠUĂŠ ÂœĂ€`ĂŠUĂŠ ĂžĂ•Â˜`>ÂˆĂŠUĂŠ œ˜`> `>ÂˆĂŠ ` UĂŠ œ˜`> /ÂœĂžÂœĂŒ>ĂŠUĂŠ >Â˜ĂžĂŠ ÂœĂ€i Ăž Ăž * Excludes tax. Additional charges may be applied for uid disposal. May not be combined with any other offers.

17990 Š2013 Chrysler Group LLC. All Rights Reserved. Mopar is a registered trademark of Chrysler Group LLC. Printed in U.S.A.

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July-August 2013

Your dealership branding.

Chrysler catalog and illustrations. Tap in to the online buying market today! greatest value of the ConsumerLink “The site is the convenience to our customers.

The catalog and illustrations are great. ” - Joe Archambault, Parts Manager Lochmandy Motors, Elkhart, IN

• Set up as a stand-alone website, or integrate into your current dealership website.

• Full Chrysler electronic parts catalog and illustrations, including Mopar • VIN filtering allowing customers to get the right part, the first time • Your dealership branding • Process orders through the OEConnection system as you currently do for CollisionLink and RepairLink with MORE • Customizable pricing rules for Chrysler and Mopar parts • Customer promotions including order discounts and free shipping • Multiple payment options, including credit card and dealer direct • Accurate shipping rates calculated utilizing weights and dimensions from the catalog with options for including handling and processing

For a demo, give us a call at 330-523-1923 From OEConnection.com/consumer

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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July-August 2013

Elite EXTRATM ; džƚƌĞŵĞ dƌĂĐŬŝŶŐ ĂŶĚ ZŽƵƟŶŐ ƉƉůŝĐĂƟŽŶͿ ŝƐ ĂŶ ŽŶůŝŶĞ͕ ƌĞĂůͲƟŵĞ ƚŽŽů ƚŚĂƚ ƐƚƌĞĂŵůŝŶĞƐ LJŽƵƌ ĚĞůŝǀĞƌŝĞƐ͕ ǁŚŝůĞ ůŽǁĞƌŝŶŐ LJŽƵƌ ŽƉĞƌĂƟŽŶĂů ĐŽƐƚƐ͘ ydZ ĂƵƚŽŵĂƟĐĂůůLJ ĐƌĞĂƚĞƐ ŽƉƟŵĂů ƌŽƵƚĞƐ ŽŶ Ă ǁĞďͲďĂƐĞĚ ŝŶƚĞƌĂĐƟǀĞ ŵĂƉ͕ ŝŶĐƌĞĂƐŝŶŐ ƉƌŽĚƵĐƟǀŝƚLJ ĨŽƌ LJŽƵƌ ĚŝƐƉĂƚĐŚĞƌƐ ĂŶĚ ĚƌŝǀĞƌƐ͕ ǁŚŝůĞ ĂůƐŽ ƌĞĚƵĐŝŶŐ ǀĞŚŝĐůĞ ĂŶĚ ĨƵĞů ĞdžƉĞŶƐĞƐ͘

>OH[ JHU ,?;9( KV MVY `V\& Ź Increase revenue Ź /ŶĐƌĞĂƐĞ ƉƌŽĮƚĂďŝůŝƚLJ Ź /ŵƉƌŽǀĞ ĐƵƐƚŽŵĞƌ ƌĞůĂƟŽŶƐŚŝƉƐ Ź Control driver and fuel costs Ź 'Ž ŐƌĞĞŶ ǁŝƚŚ ůĞƐƐ ĨƵĞů ĂŶĚ ƉĂƉĞƌ

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Mopar Masters Guild Magazine

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Leaders in the Sale of Quality Mopar Parts

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Elite EXTRATM is an investment that has a proven return. We’ve crunched the numbers using data from several clients and on ĂǀĞƌĂŐĞ͕ ŵŽƐƚ ŽĨ ŽƵƌ ĞdžŝƐƟŶŐ ĐůŝĞŶƚƐ ƌĞĂůŝnjĞĚ their return on investment (ROI) within the ĮƌƐƚ THREE MONTHS of using it.

How do we do it? dŚĞ ydZ ƌŽƵƟŶŐ ĂŶĚ ƚƌĂĐŬŝŶŐ ƐLJƐƚĞŵ ƚƌĂŶƐĨŽƌŵƐ ĂŶƟƋƵĂƚĞĚ ƉĂƉĞƌͲďĂƐĞĚ ĂŶĚ ƉŚŽŶĞ ĐĂůůͲĚĞƉĞŶĚĞŶƚ ƉƌŽĐĞƐƐĞƐ ŝŶƚŽ ĂƵƚŽŵĂƚĞĚ ĂŶĚ ŝŶƚĞŐƌĂƚĞĚ ƚƌĂĸĐ ĐŽŶƚƌŽů ĐĞŶƚĞƌƐ͕ ŝŶĐƌĞĂƐŝŶŐ ƉƌŽĚƵĐƟǀŝƚLJ ĨŽƌ LJŽƵƌ ĚŝƐƉĂƚĐŚĞƌƐ ĂŶĚ ĚƌŝǀĞƌƐ͕ while also reducing vehicle and fuel expenses.

Elite EXTRA welcomes MMG back to Eau Claire, Wis. September 27-30. ...EXTRA didn’t create revenue, it cut expenses, mainly human and fuel resources. Today I’m doing more volume with only a marginal increase in expense. Without EXTRA I can’t imagine spending my way into more return. We are earning more revenue because we are better, faster and different.

-- Rick Monteiro - Parts Director, Jack Powell Chrysler Jeep Dodge

Setting the standard for the delivery of automotive parts.

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July-August 2013

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July-August 2013

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July-August 2013

Avenger, Grand Caravan & Wrangler Lives Extended!

DETROIT -- In a sweeping change from the product plan Chrysler Group outlined this year, the lives of the Dodge Avenger, Dodge Grand Caravan and Jeep Wrangler have been extended, The Detroit News reported today. The newspaper, ci ng supplier sources, said the current Avenger would con nue through 2015, a year longer than planned; the Grand Caravan through 2017, an extension of 2 years; and the current Wrangler through 2018.

Chrysler spokesman Gualberto Ranieri declined to comment on the report. If true, the product extensions might signal that the automaker and its corporate parent, Fiat S.p.A., are trying to conserve cash in the face of economic pressure in Europe and a planned purchase by Fiat of remaining Chrysler shares.

The mid-sized Avenger sedan had been expected to end late this year or in the first quarter of 2014 as Chryslerâ&#x20AC;&#x2122;s Sterling Heights assembly plant in suburban Detroit geared up to produce the next genera on Chrysler 200 sedan.

CEO Sergio Marchionne said this year that the next Chrysler 200 -- which shares a pla orm with the Dodge Dart and Jeep Cherokee -- would be shown in January 2014. The Sterling Heights plant, with two body shops, will have the capability to produce the redesigned Chrysler 200 and the older Avenger. Since taking operaonal control of Chrysler in 2009, Marchionne has sought to end the Daimler-era prac ce of producing similar vehicles to compete against one another in Chrysler showrooms. He has said the automaker should have one minivan going forward, for example, and not the Chrysler Town & Country and Dodge Grand Caravan.

Chrysler purchasing head Sco Kunselman told Automo ve News this week that the automaker has begun bid prepara on for its next minivan program.

Which of the minivan nameplates will survive has been the subject of more than a year of specula on, but no defini ve answer -- even from the top execu ves of each brand.

The hot-selling Jeep Wrangler was to be refreshed in 2016, which would provide me for the Toledo plant where it is made to expand its constrained capacity.

Jeep brand head Mike Manley said last month that a new op onal diesel engine would be available with the next refresh of the Wrangler, and said earlier that a long-sought pickup version would wait un l addi onal produc on capacity could be found.

Source: www.automoĆ&#x;venews.com

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Rhode Island Governor Signs Total Loss Bills Fri, 19 Jul 2013

Rhode Island Governor Lincoln D. Chaffee signed H-5263 and S-465 into law on July 17. The bills, which took effect upon passage, require an insurance company to obtain the owner’s consent before declaring a vehicle a total loss if the cost to repair the vehicle is less than 75 percent of its value.

The Auto Body Associa on of Rhode Island (ABARI) said in a statement, “We are grateful to the Governor and the Legislature for recognizing that consumer protec on is the true purpose of this law. For too many years, consumers across this State, many at the lowest economic levels, have been subjected to the heavy hand of insurance companies that seek only to increase their profits.

“Many consumers have lost their second largest asset, because an insurance company could save more money if they totaled a safely repairable vehicle. This prac ce is now prohibited thanks to Governor Chaffee and the General Assembly,” ABARI said.

“The new law also ensures that consumers receive the full value of their vehicle when it is lawfully determined a total loss; it requires insurers to value vehicles based upon publically available guides used in the automo ve industry such as Kelly Blue Book and NADA. They are now prohibited from using their own cost-cu ng programs that take advantage of those who do not have the means to fight such unfair claims prac ces,” ABARI added.

Insurers had campaigned against the bill with online and radio adver sements and the Property Casualty Insurers Associa on of America (PCI) said they were “profoundly disappointed” that the Governor approved the legisla on.

Frank O’Brien, Vice President State Government Rela ons for the Property Casualty Insurers Associa on of America (PCI) said, “By forcing vehicles that are badly damaged to be repaired rather than totaled, this law is designed to increase body shop revenues. But in the end it is the Rhode Island consumer who will pick up the tab. Over the years special interest groups such as ABARI have wielded significant influence in Providence and they have reaped the benefit of bill a er bill being passed with the end result being repair costs growing at more than twice the na onal average and increased hassle and inconvenience for consumers. Unless someone provides a check and balance on body shop costs, this trend is likely to con nue.

“We believe consumers, insurers and body shops should have the same goals - high quality repairs at reasonable costs. Although this new law falls short of the mark, the insurance industry remains commi ed to protec ng the interests of consumers and pu ng safety first.”

Source: www.collisionweek.com

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July-August 2013

Connecticut Governor Signs Anti-Steering Bill into Law A Connec cut bill designed to extend a ban on steering by third-party administrators and auto damage appraisers to specific repair shops, which includes auto glass repair, has been signed into law by Gov. Dannel O’Malley.

House Bill (HB) 5072 “requires ini al communica ons between a glass claims representa ve or a third-party claims administrator of an insurance company doing business in Connec cut and the company’s insured about automo ve glass works or products to inform the insured about his or her right to choose where to have the work done.”

Addi onally, “The bill bars insurance companies or their representa ves from steering an insured to a licensed glass shop owned by the company, claims administrator or their parent company, unless they provide the insured with the name of at least one other shop in the area where the glass work is to be performed,” according to a summary of the bill from the Connec cut government website. The bill passed the House on May 7 and gained approval from the Senate May 22.

Source: www.collisionweek.com

Connecticut Association Raises $13,000 for Operation Comfort The Connec cut Collision Repair Specialists (CCRS) 3rd Annual Golf ou ng raised $13,000 for Opera on Comfort’s AutoMo va on Program.

Members joined the effort by making individual dona ons as well. CCRS donated $10,000, CARSTAR CT donated $2,000 and other members contributed as well to bring the total dona on to thirteen thousand dollars.

As members of the collision repair industry, CCRS decided to step up and give back to those who have sacrificed so much for our country. “We applaud the efforts of NABC in promo ng the Opera on Comfort project and challenging the industry to get involved,” says Lisa Siembab, CCRS Execu ve Director. “Once our Execu ve Board was made aware of the need, we commi ed to donate all of the proceeds from our 2013 CCRS Annual Golf Ou ng.”

CCRS Vice Chairman, Gene Crutchfield men oned, “Returning veterans face a tough job market and they have been through so much. If we can help them, we will and we must. It’s me for us to give back.”

Vic Hash, a strong advocate and volunteer for Opera on Comfort and a wounded veteran, was the guest of honor at the golf ou ng. “I asked Vic to join us for our banquet to speak to our a endees. He agreed, but he insisted that he would spend the en re day with us, ge ng to know our members and sharing more informaon on this project for veterans. He hosted a pu ng contest on one of the holes and was very successful in raising addi onal monies. He is very passionate about helping our returning veterans and we were honored to have him with us,” Siembab stated.

Source: www.collisionweek.com

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29

Maryland body shop owner wins short-pay lawsuit against GEICO on behalf of a customer Mark Schaech, co-owner of Mark’s Body Shop of Bal more, filed the suit against GEICO due to the insurer’s refusal to pay $392.95 in repair costs on behalf of its policyholder. The underpayments included: degreasing vehicle prior to repair; feather, prime and block repaired panels; clean vehicle for delivery; clear OBD fault codes; reset electronics (recorded se ngs); mask for primer; and overhaul door handle for refinishing.

“We offer excep onal quality and service to our customers, and to con nue to do so without being properly compensated is simply unreasonable and unsustainable,” said Schaech. “While my father (partner) and I would rather avoid having to take such legal ac ons, something had to be done as the insurer’s efforts to underpay our customers con nued to increase. I felt like that guy in the movie Network where he stuck his head out the window and yelled, ‘I’m mad as hell and I’m not taking this anymore!’

“While Maryland does not allow the recovery of legal fees to the prevailing par es in such issues, we couldn’t allow that to be a deterrent in our being able to properly serve our customers and our employees. Insurers have con nued cu ng their costs while our costs for labor, materials and overhead have steadily increased. The only way we could survive was to either concede to the underpayments and cut our quality of materials and labor…or push back. We found short-pay li ga on necessary to stop the insurer’s prac ce of underpaying our customers and to enable us to provide the quality repairs that earn our customers (and their referrals) for life.”

Schaech credited a free legal seminar in Florida hosted by Barre Smith of Auto Damage Experts, Ray Gunder of Gunder’s Auto Center and Gunder’s a orney, Brent Geohagan, with mo va ng him and giving him the informa on he needed to take ac on.

“That was a turning point for us. To hear Ray talk about how he knew that if he hadn’t done something he would be out of business struck a chord in me, and I knew then that I, too, needed to do something or we would lose our business,” Schaech said. “Ray gave much credit to his success in having a great support team in Barre as his consultant and Brent as his legal counsel.”

Source: www.autobodynews.com

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July-August 2013

The Hartford Insurance hit with $20 million in damages to Auto Body Association of Connecticut The Har ord was hit with $20 million in puni ve damages for allegedly fixing prices when paying to repair cars in Connec cut.

“We are disappointed in the ruling and plan to appeal,” Thomas Hambrick, a spokesman for The Har ord, said in an email. State Superior Court Judge Alfred J. Jennings Jr. handed down the penalty Friday, nearly a decade a er the Auto Body Associa on of Connec cut filed suit against The Har ord.

The judge said the award was meant to send a message to The Har ord and other insurers that viola ng fair trade rules would not be tolerated. The puni ve damages come on top of $15 million a jury awarded the auto body repair shops in 2009, money that s ll hasn’t been paid. “We haven’t collected anything,” said the repairmen’s lead a orney David Slossberg, of the Milford firm Hurwitz, Sagarin, Slossberg and Knuff. He said the team of a orneys expects this case will be appealed to the state Supreme Court, but also feels strongly the judge’s rulings will stand.

“This is a win for all those guys who think they can’t push back against the big insurance companies,” Slossberg said, adding he believes it’s the biggest award ever for viola ng the state’s Unfair Trade Prac ces Act. More than 500 auto body shops might be eligible to collect should the insurer’s appeal be rejected.

The auto body shops claimed The Har ord was ge ng a discount rate from a network of direct repair shops which agreed to lower labor rates in exchange for high volume. But the Connec cut Auto Body Associa on said The Har ord also a empted to pressure independent shops to lower their rates by having the insurer’s inhouse appraisers use a uniform labor rate to es mate what repair costs would be covered. But labor rates are not uniform across the state, Slossberg said, and the rate The Har ord used was low, at $50 an hour.

Slossberg, who teamed with Westport-based A orney Alan Neigher and lawyers from the New York firm Bernstein Liebhard, said The Har ord should have used a higher rate that was more comparable to the rates of mechanics, which are about $90 an hour.

Labor rates for auto body shops are not set by law.

Fees for the lawyers will be set later, according to Slossberg, who noted they have worked on this case for 10 years without collec ng any fees. He said there is a bigger issue here, however, because the ac vi es of The Har ord have hurt some small businesses. Slossberg said prior to the first insurance company crea ng a network of preferred repair shops, auto body businesses were making a 6 percent profit. Today, they’re at 2 percent, he said. In Connec cut, the shops have a lot of expenses related to equipment and environmental regula ons, Slossberg noted, and the shops need to pay for talent.

“They’re cra smen,” he said.

Continued on Page 31

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Continued from Page 30 Tony Ferraiolo, president of the ABAC and owner of a lead complainant, Wallingford-based A&R Body Specialty, said despite the wins, insurers don’t appear to be ge ng the message. “We certainly feel great about the judge’s decision,” he said. “We don’t feel very good about The Har ord actually doing what the court has put in place.”

Besides the payments, The Har ord was issued a cease-and-desist order related to its appraisals.

But Ferraiolo said he’s not seeing any changes in the way it and other insurance companies are se ling bills.

He said some mes shops are being paid at lower labor rates, and the shops then have to take the insurer to small claims court. Besides The Har ord, ABAC is also suing Progressive in U.S. Federal Court regarding similar claims.

Source: www.ctpost.com - Rob Varnon

Traveling Exhibit Teaches Youth About Auto Repair July 25, 2013—Audra Fordin, owner of Great Bear Auto Repair and Auto Body Shop in Flushing, N.Y., and founder of Women Auto Know, has teamed up with the Long Island Children’s Museum to educate children on the auto repair experience.

The duo put together a traveling exhibit tled “Broken; Fix it” that will travel to children’s museums throughout the U.S. and focuses on automo ve educa on.

“The disconnect in the automo ve industry starts at a young age. By educa ng our children early in their lives that they can do anything, regardless of gender, they will be more apt to take care of themselves as second nature, without the s gma of outside stereotypes holding them back,” Fordin said.

Fordin is featured in the exhibit’s “Mechanic’s Corner,” a garage-like se ng that will feature three par al, lifesize cars for children to nker The three cars, one on ground level, one on a li and one jack accessible, will give children the experience of learning differences between working car parts and defunct ones.

The exhibit will feature a variety of tasks including using a re jack to raise, release and replace a so sculpture re with ghtening and loosening bolts as well as replacing a dirty air filter by choosing a good one out of a variety.

The goal of the exhibit is to teach children to assess, determine a problem and tackle it with proper tools.

“This is a win-win-win for the future drivers of America, the automo ve industry as a whole, and for generaons of children who will be caring for us later in life,” Reprinted with permission Source: www.fenderbender.com

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July-August 2013

2013 M MMG MG C Com o m m itte i t t ees es President Vice President Treasurer Secretary Executive Committee All of the above as well as:

Steve Hofer Rick Cutaia Mark Skinner Joe McBeth

Park CJ – Burnsville, MN Rick Hendrick DCJR - Charleston, SC Power CJD – Phoenix, AZ Dallas DCJ – Dallas, TX

Gerry Oakes Marvin Windham Dan Hutton Paul Allred

Baxter CJD – Omaha, NE Benchmark CJD – Birmingham, AL Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC

Dan Hutton Don Cushing Andy Reed TBA Steve Hofer Rick Cutaia Mark Skinner Joe McBeth

Tom O’Brien CJD – Greenwood, IN Bald Hill DCJ – Warwick, RI Allen Samuels DCJ – North Richland Hills, TX Park CJ – Burnsville, MN Rick Hendrick DCJR - Charleston, SC Power CJD – Phoenix, AZ Dallas DCJ – Dallas, TX

ADP

Gerry Oaks Paul Allred Andy Reed Rick Monteiro

Baxter CJD – Omaha, NE Stateline CJD – Fort Mill, SC Allen Samuels DCJ – North Richland Hills, TX Jack Powell CJD – Escondido, CA

R&R

Rick Cutaia Ken Kokoszka Rich Schott

Rick Hendrick DCJR – Charleston, SC Christopher’s Dodge World - Golden, CO Moore CJ – Peoria, AZ

Dan Hutton Paul Allred Steve Hofer

Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC Park CJ – Burnsville, MN

Dealer Tire

Paul Allred Susan McDaniel Joe McBeth

Stateline CJD – Fort Mill, SC Bill Luke CJD – Phoenix, AZ Dallas DCJ – Dallas, TX

Elite Extra

Rick Monteiro Ken Kokoszka J.D. Ipsen

Jack Powell CJD – Escondido, CA Christopher’s Dodge World - Golden, CO Ken Garff West Valley CJD – West Valley, UT

UPS

Marvin Windham Glen Hojnacki

Benchmark CJD – Birmingham, AL Milosch’s Palace CJD – Lake Orion, MI

Tracy Industries

Mike Mulkins

Go Chrysler Jeep West - Golden, CO

GuidePoint

Mike Mulkins

Go Chrysler Jeep West - Golden, CO

Katzkin

Mike Gerber

Rairdon CDJ - Kirkland, WA

Committees: Vendor Chairman Newsletter Nada 2014 Planning Membership Finance Committee

Vendor Committees

OEConnection Snap-On

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