Mopar Masters Guild Magazine July - August 2018 Edition by Don Cushing

Leaders in the sale of quality Mopar Parts.

July - August 2018

Also In This Issue From the Desk of MMG President Susan McDaniel ............. 2-3 Sergio Marchionne Dies at 66 ....... 4-6 MMG Annual Meeting at NADA 2019 Announcement ............................7 Fiat Chrysler Seeks to Block Sales of Mahindra “Jeep” ...................................8 GM Will Reward Researchers for Finding Cybersecurity Threats .........9 Data Access is the New Information Availability .....................................10-11 Rhode Island Body Shop Legislation Goes into Effect ...........................11-12 Katzkin Leather ..................................13 MMG Supporting Vendors .........14-15 Reynolds & Reynolds .........................16 Autobody News ...................................17 AER Manufacturing .....................18-19 Reynolds & Reynolds .........................20 UPS .................................................21-23 10 Missions Media .............................24 Snap-On Business Solutions .............25 Elite Extra ...........................................26 Rousseau Storage ...............................27 CDK Global ...................................28-29 OEConnection ...............................30-31 10 Missions Media .............................32 Katzkin Leather ..................................33 The View from My Office...........34-35

Sergio Marchionne June 17, 1952 - July 25, 2018

Find Your Next Star Tech ..........36-37 2018 MMG Officers/Committees ..40

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Mopar Masters Guild

July - August 2018

From the Desk of MMG President Susan McDaniel

The Path 35 years ago, I knew this guy who had a crazy idea that I go to work for him at the parts store on the corner in Yuma, AZ. The store was Chief Auto Parts. I didn’t know anything about cars; I just knew that I wanted to be the best at whatever I did. Desi spent a lot of me with me walking around the store and talking about all of the parts and their func ons. In the evenings, we would all sit around under the carport and look under the hood of whatever happened to be available and talk about what made that machine run. In the next several months I would learn about core exchanges, checking in orders, preparing for ads, inventories, daily deposit paperwork, loss preven on, and ordering with a Telxon machine. A year later we moved to Phoenix and went on to open several new stores for Chief Auto Parts. In the following years, I learned so much about merchandising, forecas ng, people, organiza on and management. I met so many interes ng characters and lifelong friends during this me. I had no idea that these experiences were shaping my future and who I would become. In 1988 I went to work for Bill Luke Chrysler Plymouth. My first assignment in the Parts Department was working on the front retail counter. This proved to be a whole new experience because all of the parts I sold were so different from what was moving in the retail parts chain world. My next assignment was the Wholesale Department. I went on to manage that department for several years; growing our business, ordering, se ng up perpetual inventories, and organizing the employees, then moving on to Assistant Manager and Manager in 2000. I’m now the Parts Director for the Bill Luke Auto Group and the proud president of The Mopar Masters Guild. Desi took a different path. Later in life, he became very ill and not able to work for many years. He turned that me into a posi ve and helped many people get their lives on track by telling stories of his own experiences and offering his sage advice. He had the biggest heart of anyone I have ever known. He passed away a few months ago and since then I have become reunited with many people I haven’t seen in years and reminded of the very beginning of my journey. When my journey in the parts business first began, I had no idea where the path would lead. I just knew that I was having a great me, learning a lot, laughing a lot, and having so many new and exci ng challenges.

Continued on Page 3

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Continued from Page 2 Your President,

Susan McDaniel Susan McDaniel susan@billluke.com 602.336.1557

I truly believe that everything that we do and everyone that we meet is put in our PATH for a purpose. There are no accidents; we’re all teachers – if we’re willing to pay aƩenƟon to the lessons we learn, trust our posiƟve insƟncts and not be afraid to take risks or wait for some miracle to come knocking at our door. - Marla Gibbs

Mopar Masters Guild’s 27th Annual Mee ng NADA 2019 San Francisco See Page 7 for up-to-date info

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July - August 2018

Sergio Marchionne, Who Revived Fiat and Chrysler, Dies at 66

Sergio Marchionne in 2015 at the Chrysler Tech Center in Auburn Hills, Mich. He took over Fiat in 2004 and spearheaded the acquisiƟon of Chrysler in 2009, becoming one of the most closely watched chief execuƟves in the automaking industry. Sergio Marchionne, the execu ve who pulled two ailing carmakers from the brink of collapse and led the improbable transforma on of Fiat Chrysler into an automo ve giant, died on Wednesday in Zurich. He was 66. John Elkann, the chairman and chief execu ve of Exor, the holding company controlled by the Agnelli family, which founded Fiat in 1899, announced the death in a statement. Mr. Marchionne had been incapacitated about three weeks ago by sudden complica ons of shoulder surgery, which he had undergone in Zurich. He was reportedly later put on life support. A er Fiat Chrysler announced that he would be “unable to return to work,” the company has ly appointed a successor this past weekend. “Unfortunately, what we feared has come to pass,” Mr. Elkann said on Wednesday. “Sergio Marchionne, man and friend, is gone.” Mr. Marchionne took over Fiat, in Turin, Italy, in 2004 and spearheaded the acquisi on of Chrysler in 2009. On both occasions the businesses were near low ebbs, and few gave him any chance of success. But he defied those gloomy predic ons. Today, Fiat Chrysler Automobiles and Ferrari, which was spun oﬀ during Mr. Marchionne’s tenure, are worth nearly 10 mes as much as they were when he took over. An Italian-born Canadian, Mr. Marchionne had a reputa on as a chain-smoking workaholic, one who forged his career as a tax consultant before moving on to a metals-trading firm and a trade services company. His legacy was defined, however, by his work in the automo ve industry. When he was hired by the Agnelli family to run the company, it was faltering, and they charged him with reversing its long decline. Continued on Page 5

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Continued from Page 4 Ac ng quickly, he dismissed several execuves, pared back produc on levels to meet demand and eliminated some slow-selling models. Before long, Mr. Marchionne became closely watched as one of the fastest-moving chief execu ves in the auto industry.

Mr. Marchionne, leŌ, at an automobile show in Geneva in March. Recalled as a chain-smoking workaholic with a quirky side, he defied gloomy predicƟons in resurrecƟng Fiat, a postwar mainstay in Italy.

He also had a quirky side. At news conferences, he entertained reporters with answers peppered with references to philosophers, pop music and ancient history. He once gave a commencement speech at the University of Toledo, in Ohio, that quoted Nelson Mandela and Albert Einstein while lauding the city’s long associa on with Fiat’s Jeep brand.

In 2006, he arrived at a mee ng wearing a black sweater and black jeans; deciding that he liked not having to think about his wardrobe, he stuck with that look for years. (He said he kept dozens of iden cal sweaters and pairs of jeans in each of his homes.) His business acumen was also repeatedly on display. Soon a er becoming chief execu ve, he took advantage of an exis ng deal between General Motors and Fiat to a empt to force G.M. to buy the Italian carmaker, a move G.M. had no desire to make. In a high-stakes game of corporate poker, Mr. Marchionne compelled G.M. to pay Fiat $2 billion to end their alliance, and used the money to develop new models, including the Fiat 500, a small car that became a hit in Europe. His crowning achievement may have been his decision to drive a hard bargain for Chrysler in 2009. As the Treasury Department in Washington hastened to prevent the collapse of much of the United States auto industry in the wake of the financial crisis, Mr. Marchionne stepped forward with an audacious oﬀer: Fiat would take control of Chrysler, the sickest of Detroit’s Big Three automakers, and provide cars and technology to revive it. There was a catch, however: The government would have to hand Chrysler over to Fiat free of charge. It was a hardball oﬀer typical of Mr. Marchionne. But he knew that the Treasury, as well as Chrysler’s creditors and its labor union, had li le room to nego ate. The American economy was slipping deeper into recession, the collapse of Chrysler would have meant the loss of tens of thousands of jobs, and no other company was willing to rescue it. It was the beginning of one of the most remarkable rescues in the auto industry. Today, Fiat Chrysler, while s ll facing challenges, is solidly profitable, and Mr. Marchionne is revered in the halls of two headquarters, in Turin, Italy, and in Auburn Hills, Mich., north of Detroit. Continued on Page 6

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July - August 2018

Continued from Page 5 A confidant of his, Mike Jackson, the chief execu ve of AutoNa on, a large dealership chain, said Mr. Marchionne had an unusually analy cal mind. “He could take a fire hose of complexity and reduce it to its fundamentals in minutes,” Mr. Jackson said. “He had the courage to make very aggressive decisions, and if it went badly he’d be totally accountable for it.” Mr. Marchionne was born on June 17, 1952, in Chie , on the Adria c coast of Italy. His father, a police officer, saved and invested enough to re re early and move his family to Toronto when the young Sergio was 14. Mr. Marchionne studied philosophy at the University of Toronto, earned a master’s degree in business administra on from the University of Windsor, in Ontario, and a law degree from York University, also in Toronto, before beginning his career as a tax specialist. He had planned to re re next year before becoming cri cally ill as a result of his shoulder surgery on July 5. The company chose Mike Manley, the head of Fiat Chrysler’s North America opera ons and its Jeep and Ram truck brands, to succeed him. Mr. Marchionne is survived by two sons, Alessio and Tyler, as well as Manuela Ba ezzato, his companion of the last several years. She is a member of the Fiat Chrysler communica ons office. In Italy, where Fiat was synonymous with the country’s postwar economic boom for decades, lawmakers from across the poli cal spectrum paid tribute to Mr. Marchionne on Wednesday, and flags flew at half-staff at Fiat Chrysler’s offices in Turin. President Sergio Ma arella said Mr. Marchionne had wri en “an important page in the history of Italian industry.” The Italian news media broadcast video recordings of Mr. Marchionne’s last public appearance, on June 26, in Rome, where he donated a Jeep to the Carabinieri, Italy’s paramilitary police. Taking deep breaths between words, Mr. Marchionne noted that his father had been a Carabiniere and lauded the group’s “values that were at the basis of my educa on: seriousness, honesty, sense of duty, discipline and the spirit of service.”

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Mopar Masters Annual Meeting NADA 2019 – San Francisco Our plans for our 27th Annual Mopar Masters Guild Mee ng at NADA 2019 in San Francisco, California are well underway! Our Hotel of choice this year is the Marines Memorial Hotel, 609 Su er Street, San Francisco, CA 94102 h ps://marinesmemorial.org/ Below are instruc ons for booking with the MMG room block. You can book in a number of diﬀerent ways:  Using the Weblink  You may call in your reserva on at 800-562-7463 and ask for the MOPAR Group Block  Fax Reserva on request to 415-441-3649 or  Email reserva ons to reserva ons@marineclub.com There is one catch: Because we can make reserva ons on the phone, via fax, and via the link, they only allow about half of the rooms to be booked via the Pass - Key link online, (just in case they do get a good number of call ins.) Because of this, we may get a guest or two who thinks that the block is full when they try to book online. If that ever happens, please let us know, and they will release more rooms for us from the allotment they had for call ins, all we need to do is give them a call. They will be monitoring the link, and so we will try and make sure that this does not happen! Here is your weblink. Just in case some people want to come in a li le earlier, I added 3 rooms to the shoulder dates. h ps://be.synxis.com/?adult=1&arrive=2019-01-20&chain=17448&child=0&currency=USD&depart=201901-29&group=MOPAR2019&hotel=15825&level=hotel&locale=en-US&rooms=1&sbe_ri=0&sbe_sid=YFCbk9se6DnWF7quCu9EPTY Times and Places will be announced soon. Tenta ve plans are as follows:  Tuesday Jan 22nd, 2019 – Arrival in San Francisco  Wednesday Jan 23rd, 2019 MMG Mee ngs MMG Members Welcome Recep on th  Thursday Jan 24 , 2019 MMG Mee ngs Open Night th  Friday Jan 25 , 2019 MMG Mee ngs Mopar Masters Guild Annual Cocktail Recep on (TBA) And thank you Jillian Vance from Avenue Event Group for making this happen once again! Regards, Don Cushing - Treasurer - Mopar Masters Guild - Wholesale Manager - Tasca AutomoƟve Group -401-578-6945

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July - August 2018

Fiat Chrysler seeks to block U.S. Sales of Mahindra ‘Jeep’ NEW YORK -- Fiat Chrysler Automobiles filed a U.S. trade complaint seeking to prevent Indian automaker Mahindra & Mahindra from impor ng an oﬀ-road vehicle that looks like its iconic Jeep. The Fiat Chrysler group filed the complaint on Aug. 1 at the U.S. Interna onal Trade Commission, claiming that the Mahindra Roxor infringes key characteris cs of Jeep’s signature trade dress -- namely the “boxy body shape with flat-appearing ver cal sides and rear body ending at about the same height as the hood.” “They are a nearly iden cal copy of the iconic Jeep design,” Fiat Chrysler said in its complaint, which included photos comparing the Roxor to the Jeep. “In fact, the accused product was ‘modeled a er the original Willys Jeep.’” In 2017, Mumbai-based Mahindra, which claims to be India’s largest SUV manufacturer, opened a headquarters in southeast Michigan for its newly developed North American branch. FCA has also said that Roxor imports threaten it with substan al injury as they are underselling Jeeps. Mahindra capitalizes on the cost advantages of manufacturing their products in India and then impor ng knockeddown kits to the U.S., where they’re assembled in the Detroit area. Fiat Chrysler has become increasingly reliant on its Jeep product line. On Wednesday, the company reported its highest ever July sales for Jeep brand vehicles, up 16 percent, to power the company’s overall 5.9 percent jump from a year ago. Mahindra announced plans in November to invest $600 million in its Roxor manufacturing facility. The Michigan unit tripled its workforce and by 2020, the group plans to employ as many as 670 workers there. Fiat Chrysler’s complaint pointed to Mahindra’s “substan al foreign manufacturing capacity combined with its demonstrated inten on to penetrate the United States market and harm FCA’s goodwill and business.” Mahindra has a rela onship with the Jeep brand that long predates the existence of Fiat Chrysler. As early as the 1940s, the Indian company had a license from Willys to assemble Jeep SUVs for the Indian market based on the iconic CJ design, and has since secured licenses from successive owners of the Jeep brand for its own version of the vehicle, now called the Thar. FCA last year began building Jeep brand SUVs in India. Source: www.automoƟvenews.com

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GM Will Reward Researchers for Finding Cybersecurity Threats DETROIT -- General Motors will begin a high-stakes bug bounty program designed to privately find poten al weaknesses in the automaker’s cybersecurity and products. Such programs are common in so ware and tech firms. They’re becoming more prominent in the auto industry, as automakers prepare to launch autonomous vehicles and more service-based programs such as ridehailing fleets. “The overall focus, threat level and so on is only going to grow from here, which is why we’re pu ng so much energy and resources into ge ng ahead, and staying ahead, and itera ng rapidly,” GM President Dan Ammann said Friday following a presenta on at the Billington Cybersecurity Summit in Detroit. GM’s program, announced Friday by Ammann, is expected to begin by the end of summer. It will include a group of about 10 or less researchers, also known as white-hat hackers. “We’ll show them the products, the programs and the systems for which we plan to establish these bug bounes,” Ammann said. “Then we’ll put them in a comfortable environment -- ply them with pizza and Red Bull or whatever they might need -- and we’ll turn them loose.” The selected individuals, according to Jeﬀ Massimilla, GM vice president of Global Cybersecurity, were chosen from more than 500 researchers who have par cipated in GM’s vulnerability disclosure program. GM launched the vulnerability program with HackerOne, a friendly hacker pla orm to iden fy work, in 2016. The bounty program, oﬃcials said, is “a step further” than the disclosure program, which has iden fied more than 700 vulnerabili es since launching in January 2016. “We started that through the disclosure program but what we really see is we want to get their exper se really working on the product,” Massimilla told Automo ve News. “We’ll look at the highest risk systems in our products.” The bounty program, Massimilla said, will include “large sums of money” for the researchers based on what “bugs” they may find. He declined to disclose exact payment amounts. Car hacking has been demonstrated in controlled simula ons in recent years -- mostly when hackers are physically plugged into the vehicle’s hardware. The most well-publicized occurred with security researchers Chris Valasek and Charlie Miller remotely hacking into a 2014 Jeep Cherokee in a real-world test in 2015. Source: www.automoƟvenews.com

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July - August 2018

DATA ACCESS IS THE NEW INFORMATION AVAILABILITY Why should repairers be interested in what’s going on with autonomous vehicle policy, data access and cybersecurity? Because having the right tools and the right informa on to repair vehicles are cri cal elements to the longevity of a successful automo ve repair business. Those reasons apply to both mechanical and collision repairers. Without access to important data, repairers will struggle to provide consumers the level of service necessary to sustain their businesses. At the center of the 1990 Clean Air Act Amendments (CAAA) legisla ve debate was the issue of service informa on, or be er known as “informa on availability.” The Automo ve Service Associa on (ASA) worked diligently to get language into the CAAA that required, “manufacturers to provide promptly to any person engaged in the repairing or servicing of motor vehicles or motor vehicle engines … with any and all informa on needed to make use of the emission control diagnos cs system … including instruc ons for making emission related diagnosis and repairs.” “No such informa on may be withheld … if that informa on is provided (directly or indirectly) by the manufacturer to franchised dealers or other persons engaged in the repair, diagnosing, or servicing of motor vehicles or motor vehicle engines.” It required several a empts by the U.S. Environmental Protec on Agency (EPA) to get a workable informa on availability regula on, as well as an industry agreement to assure new automaker websites included nonemissions informa on. Most industry experts agree that the current process works for the independent repair industry. With the onslaught of new vehicle technologies and much public policy focus on autonomous vehicles (AV), automo ve repairers are again at a cri cal juncture for the future. The term in the early 1990s was “informaon availability,” but today’s terminology is “data access.” ASA is an ac ve member of mul ple coali ons addressing new vehicle technologies, data access and cybersecurity, including: • Ad Hoc HAV Data Access Coali on • A ermarket Telema cs Task Force • Coali on for Future Mobility • Global Alliance for Vehicle Data Access Several states have moved quickly to address research and deployment policy for autonomous vehicles. Although the Na onal Highway Traﬃc Safety Administra on (NHTSA) has issued guidelines on many of these issues for states and the industry, the U.S. Congress has yet to finalize legisla on in these same policy areas. The U.S. House of Representa ves unanimously passed House Resolu on (H.R.) 3388, the SELF DRIVE Act, which clarified state and federal roles in the autonomous vehicle policy arena. However, the SELF DRIVE Act did not address the data access issue for independent repairers. Continued on Page 11

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Continued from Page 10 The U.S. Senate Commerce Commi ee did address data access in its AV START Act, S. 1885. U.S. Sen. James Inhofe, R-Okla., oﬀered an amendment addressing data access during the Commi ee markup, which was agreed to. The Inhofe Amendment establishes a HAV Data Access Advisory Commi ee at NHTSA. And the Federal Trade Commission (FTC), which has shown much interest in the vehicle cybersecurity policy area, was also included in the advisory commi ee at NHTSA. This stakeholder commi ee provides for automo ve industry par cipa on, including “independent vehicle repairers.” The Senate bill has not been considered on the floor of that body to date. It is important for independent repairers that the Inhofe Amendment be included in the final AV legisla on sent to the president. If the Senate does not approve S. 1885 by the August break, it will become increasingly diﬃcult for final passage before Congress adjourns for the year due to the brief fall congressional schedule and the November elec ons. As important as informa on availability was to the repair industry, data access is taking an even larger publicpolicy role. This issue does not have to be conten ous and hopefully will be resolved by the automo ve industry. ASA will con nue to be part of this conversa on. Source: www.abrn.com

Rhode Island Auto Body Shop Legislation Goes into Eﬀect Wri en by Elizabeth Blosfield, Insurance Journal Updated legisla on regarding the use of a ermarket parts in the repair of motor vehicles, passed by the Rhode Island General Assembly in June, has become law without Rhode Island Governor Gina Raimondo’s signature. Rhode Island law allows bills passed by the General Assembly to become law a er 10 days of being transmitted to the governor if they aren’t vetoed, according to a Rhode Island Legisla ve Press and Public Informa on Bureau spokesperson. H-8013/S-2679 provides that insurance companies cannot mandate the use of a ermarket parts without the owner’s consent on motor vehicles less than 48 months beyond the manufacture date. A ermarket parts are motor vehicle body replacement parts that are not original equipment manufacturer parts, or parts produced by the manufacturer of the motor vehicle being repaired, according to the legisla on. The updated legisla on expands the me frame of Rhode Island’s previous law, which mandated consumers are en tled to choose original manufacturer parts over a ermarket parts if a vehicle is 30 months old or newer. The bill has faced opposi on from some insurers, with The Property Casualty Insurers Associa on of America (PCI) ini ally encouraging Raimondo to veto the bill over concerns it could create pressure to raise auto insurance premiums and raise auto repair costs. Continued on Page 12

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July - August 2018

Continued from Page 11 “We’re disappointed that the governor decided to let this bill become law,” said Frank O’Brien, vice president of state government rela ons for PCI, in a statement to Insurance Journal. “It is yet another in a series of auto body-related bills that the Rhode Island legislature has passed and have gone into eﬀect which do nothing but increase rates for Rhode Island consumers so that the auto body industry in Rhode Island can con nue to make the kind of money that it makes.” O’Brien had previously spoken out in a PCI press release against the bill when it passed the General Assembly, adding that, “Rhode Island drivers, as a result, could end up paying the highest auto insurance premiums in the U.S.” The Auto Body Associa on of Rhode Island (ABARI) has expressed its support of the legisla on, however, contending it is good for consumers as it en tles owners of vehicles that are 4 years old or newer to choose original manufacturer parts for repairs. “We’re very pleased, and we believe it’s a big win for consumers,” ABARI spokesperson Jina Petrarca said in a statement to Insurance Journal. Petrarca countered claims that the bill’s passage could raise auto insurance premiums. “[Insurers] said the same thing when the original law was passed more than 20 years ago, and it didn’t happen,” she added. “Insurers in Rhode Island have some of the highest profit margins for auto damage property claims in the country. It’s a highly compe ve market, and it will adjust itself accordingly. Consumers will not be spending more for insurance.” Since 2003, Rhode Island has passed several laws regarding auto body shops in the state. PCI stated in the release that it believes that overall, these laws have increased the amount paid for auto body repairs and have limited the role of auto insurers in the claims process, as well as reduced insurers’ ability to provide checks and balances on behalf of their customers. “It’s simple,” O’Brien said in the release. “The more the auto body shop owners pad their profits repairing vehicles, the greater the pressure to raise auto insurance premiums.”

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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

Our Supporting Vendors: Support those who support you.

July - August 2018

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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

July - August 2018

What’s trending with accessories?

Accessory Market

$41 Billion Accessory Buyers

50%

of new vehicle buyers plan to ACCESSORIZE

Most Popular Accessories by Region

24% 57% Spend over $300

Spend over $1,000 Most Profitable Trends

Top Accessorized CDJR Models

Chrysler Pacifica

Dodge Charger

Jeep Grand Cherokee

Ram 1500 Crew Cab

Protection Products

Alarms, Remote Starts, and Recovery

Window Tint

Step Bars

Floor Mats

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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

July - August 2018

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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

July - August 2018

Keep Your Parts Inventory Accurate Have you considered how to keep your parts inventory accurate throughout the year? Here are a few tips to help: CONDUCT PERPETUAL INVENTORIES Perpetual inventories give you a much better chance to identify discrepancies, correct them HZ `V\ ÄUK [OLT HUK TPUPTPaL variances during your next physical inventory. During idle time in the parts department, assign each counterperson a few bins to count weekly and update the inaccuracies immediately. Consider \[PSPaPUN 9L`UVSKZ 7HY[Z )HYJVKPUN Scanners to speed up the process and increase accuracy.

MONITOR PARTS IN YOUR SPECIAL ORDER BINS Identify special order parts that have not been picked up within 15 days of being received and notify the customer or service advisor once more. If the parts still aren’t picked up within 30 days, return them to the OEM, place them in stock, or get rid of them. This will keep your special order bins free VM \UULJLZZHY` WHY[Z HUK TPUPTPaL obsolescense.

EVALUATE DIRTY CORE INVENTORY Maintaining an accurate record of customer-returned cores and promptly returning them to the supplier is important. It ensures the inventory value is up-to-date for both Parts and Accounting. Plus, physically removing them allows you to make better use of vital space in your department.

Follow these guidelines consistently throughout the year to keep your inventory accurate and make your next annual physical inventory audit less stressful.

Work smarter, not harder. To see how Reynolds and Reynolds can help, call 888.781.3020, visit reyrey.com/parts-barcoding, or email info@reyrey.com. © 2018 The Reynolds and Reynolds Company. All rights reserved. 08/18

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July - August 2018

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

www.ups.com/future

What’s Driving Self-Managing Vehicles? By Kelly Brock, Director of Marketing, Industrial Products & Automotive at UPS

Though driverless vehicles have been a staple of science fiction for decades, the technology for turning that fiction into reality is closer than ever. The big question isn’t when, but how?

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So, why the rush? Learning to drive is a rite of passage and the nation’s infrastructure has long been designed for the old-fashioned car requiring two hands on the wheel at 10 and 2 o’clock. The business angle is obvious, but there’s more to it. As the size of cities expand and populations swell, the number of hours spent in traffic congestion and the cost of that gridlock in fuel and time will only continue to grow. Many cities already experience grueling traffic conditions daily, and these will only escalate over the next decade.

Leaders in the Sale of Quality Mopar Parts

However, studies by the Organisation for Economic Co-operation and Development and the University of Utah each indicate that autonomous vehicles, functioning as a taxi system, could reduce the necessary vehicle ﬂeet by a factor of 10. A Morgan Stanley report puts savings at $1.3 trillion in fuel consumption, crash costs and productivity gains. Also, two demographic bulges are converging to support a future of autonomous vehicles. Baby boomers are entering the age at which driving becomes unattractive – and unsafe. Many look forward to driverless cars as a way to keep their independence. At the same time, millennials (those roughly between ages 16 and 34) are moving to urban cores and spending less – or nothing – on cars. Here’s how to think about the future of driverless cars: They’re not just about getting around any more than a smartphone is just about making calls. They will create a new ecosystem of activities and services that change the way we live. They will offer up solutions to long-standing problems that plague today’s cities and challenge us to consider a host of new societal, technological and ethical questions. Image courtesy of Navya

Here are some big changes we could see in our lifetime: Fewer Roads Given the historical inefficiencies in human-piloted driving – cars can’t follow too closely, and drivers waste time and fuel looking for a parking space – some urban experts believe that roads, parking lots and garages today make up 30 percent of urban space in cities like Los Angeles. But as vehicles become more efficient – imagine a caravan of self-driven cars all following within a few feet of each other, limiting fender-benders – new freeways will require less space. Instead of eight lanes, traffic can ﬁt into six lanes and, as the technology improves, eventually three. One-way streets become ubiquitous, while stop lights and stop signs become a thing of the past, as autonomous vehicles collectively decide to obey the algorithms managing traffic ﬂow at every intersection.

Forget Parking By 2026, when more than 90 percent of new vehicles are fully autonomous, they’ll park themselves. No longer will sports and music fans fork over $20 to park in a lot next to the sporting event or concert – or commuters pay $8 to park in their office garage. In the future, their car will drop them off at their destination and proceed to a cheaper auto-pay lot ﬁve miles away. When the game, concert or workday is over, the car will be waiting again for its owner outside the venue.

Smaller Parking Areas If autonomous vehicles can receive wireless signals from parking lot owners of available spaces, the amount of land devoted to garages and surface lots shrinks as well. Parking decks could be built more efficiently: if cars can park and retrieve themselves, parking spaces would only need to be the width of the car. And high-rise garages could be built with each level constructed just a few inches taller than the height of most cars.

Need for Speed IAs self-driving cars become more ubiquitous, this trend will spark a number of policy questions: For starters, transportation officials will debate whether to raise speed limits – and how high. Imagine special express lanes or toll roads for autonomous vehicles that are allowed to travel at 85, 100 or – in remote areas – 120 miles per hour. If that happens, we could see a reversal of the urban migration that’s prompted many frustrated commuters to move in-town. If you could drive at 100 mph – and with minimal delays – the notion of commuting from Rhode Island to Manhattan suddenly isn’t so far-fetched.

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July - August 2018

The View From My Oﬃce

With Kat Monteiro

So here it is, already mid-August and this year is flying by so fast! Out here in California we have been in a heat wave and drought, many parts of our state is burning up with fires. My hometown was threatened with the Mendocino Complex Fire which now holds the tle of California’s largest fire in history. The whole town along with 4 other small towns were evacuated for 6 days, but the firemen and women who are out in the field and up in the air did an amazing job keeping the massive fire from coming down the hill into town and it was saved! And there are so many of these amazing stories all across the country, whether it is with the fires or the flooding that has affected so many of you all, our emergency personnel are out there working hard to save everything they can. So I want to give a big shout out to all of our emergency workers, and their families, who risk so much for every disaster. It is a busy me for our parts and service managers right now. We have the regional Business Conference mee ngs coming up in Vegas and in Orlando, then for many there is The SEMA Show October 30-Nov. 2, then our 27th Annual Mopar Masters Guild Mee ng at NADA, Jan. 22 - 25, 2019. This month many are headed to Detroit, Michigan to a end training with the FCA Service & Parts MAnagers 20 Group and to meet up with MOPAR Execu ves. Hopefully many will be able to go out early and a end the world famous Woodward Dream Cruise. It’s what keeps life interes ng! I am looking forward to seeing many of you at these upcoming events. For this issue I wanted to write about a very special lady named Carol Morrison. Carol is the owner/operator of Fallbrook Autobody and Paint here in Fallbrook, California. Fallbrook is a small country town 36 miles north of San Diego. It is a very community based town. I was trying to focus on Women in the Industry. I have a few more women that I plan to highlight over the next few issues. Fallbrook Auto Body is a small independent shop with Carol running everything in the front office and doing the es mates, she has a crew of 3 guys who work on the cars. She only hires the best, the ones with a minimum of 10 years experience, people who work hard, pay a en on to detail, and like what they are doing. Cra smanship is important and Carol has built her reputa on on it. Most of her jobs come from referrals. In fact the day I was there she had a couple come in for an es mate and the first thing they said when they walked in the door was - so and so sent us here because he said you are the best in town… Carol and her husband, Wayne, bought Fallbrook A/B in 1975 along with a couple partners. Carol came to work the office in 1976. Continued on Page 35

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Continued from Page 34 Wayne and his brother bought out the partners, then Wayne and Carol bought out the brother, and she has been running it ever since. Wayne did the paint and body work, but his passion was restora on. So half of their small shop was filled with old cars that Wayne was working on. They needed more room, so in 1989 Wayne built a garage on their property for his restora on work, and le Carol to run the Auto Body Shop business. It wasn’t always easy, being a woman in the industry back in the day. There were not too many women who actually ran a body shop business on their own, and there were many mes she was shut down or discriminated against. It was, and s ll is, a tough business to be in. She recalled a me when they were at a big Vendor Fair conven on that was held at Disneyland. They were walking the halls looking at equipment and she walked up to a booth with li s and tried to engage with the salesman, he pointed out to her that the wives were over in a diﬀerent part of the building heading over to the Disneyland park…. Even a er she told him she was not there as a wife, but as an owner, she didn’t feel respected. There have been many ba les fought and won with insurance companies. A er all these years they have come to realize she means business and will not take any crap! She believes as the years have gone by that things are be er for women in the industry now then they used to be, but there is a lot of room for improvement. She s ll feels that some people do not believe that a woman can do this type of work and be any good at it. But year a er year more women are out there doing it and doing a good job at it. I asked Carol what she liked least about the business and right oﬀ she told me it was dealing with the insurance companies. She spends hours a day dealing with all the paperwork, and figh ng for every dime, and ge ng supplements. She is a shop that will only use OEM parts. In fact, LKQ won’t even sell to her anymore because she returned too many parts because they did not sa sfy her expecta ons for quality and fit. She also feels that the insurance industry caters more to the bigger shops and they don’t care as much about the small independent shops. When I asked Carol what she liked best about the business she said it’s all about the people. She likes mee ng and talking with people. Over the last 43 years she has had many people come through her shop doors. She gets many comebacks, so there are many families that she has known for over 30 years, watching them get married, raising families, and now their kids - kids are bringing their cars in! There are adjusters that she has built up a 30 year rela onship with. That is the good part, the part that has kept her going all these years, taking care of her community. I really enjoy talking with Carol every me I am there. She is so nice and interes ng. She amazes me! I don’t know anyone who works harder and cares so much. She will be 70 years old and she looks great, you would never know it, and she s ll runs every bit of her shop,goes to work every day and works hard long hours. I am very inspired by her. And she has the greatest laugh and smile! I really look at her as somewhat of a pioneer for women in the auto industry. I wish her the best of luck and a happy re rement if she ever decides to do so!

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

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Find Your Next Star Technician

Last month, I took a look at how one shop approaches recrui ng. But one of his other sources leads into another part of our story on a company that is trying to solve our recrui ng issues. That company is Find a Wrench, which Jay Goninen founded. Jay grew up working in his family’s automo ve shop in Wisconsin. He found his skillset to be be er served in the management roles, but he kept coming into issues regarding recrui ng good technicians. He tried recrui ng companies, which was a good solu on for other businesses but the pay rates and knowledge needed for properly recrui ng in our space always led to frustra ons on both sides. Jay knew from recruiters that the need for boots on the ground, industry knowledge and the fee structure prohibited owners from really being able to u lize this opportunity. Jay then decided to combine industry knowledge, high-quality recruiters and an aﬀordable fee structure to found the company called Find a Wrench. With the industry knowledge and experienced recruiter knowledge they found that a one-size-fits-all strategy was not the right answer. Therefore, they looked at how technicians of all ages and exper se looked at informa on or found new jobs. They created a combina on program of boots on the ground, Facebook, tex ng, automo ve sites, career sites and proac ve calls to go into a market and ac vely recruit for the technicians needed for shops. One of the best tools they found was through Facebook. According to Jay, there are over 2.2 billion ac ve users each month and using ads that grab people’s a en on has been one great solu on for recrui ng in their communi es. They work to target the right demographic and get consistent results with the right campaigns. However, many shop owners will spend money in the wrong areas and take me away from much-needed opera ons. Jay said that many shop owners start by not pu ng out ads or employment opportuni es on their own websites. Today, most valuable poten al employees will start their research of your company on the website. If there’s not an easy way to apply or find open posi ons, then the search will end right here. Continued on Page 37

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Continued from Page 36 The second biggest mistake that shops make is that they stop recrui ng when they are slow and start recruiting when they are really busy. This is the worst approach to take. You need to be recrui ng all the me but especially when all shops are slow. This is when technicians are looking because that’s usually when they may not be ge ng the hours they want and are more willing to look at other op ons. If you are busy and your compe tors are busy, the technicians you want are probably ge ng more than enough hours. Also, when you are finally blown out, you don’t have me to recruit or train the right way. So, you are poten ally se ng up a new technician to be thrown in the fire and possibly have cultural issues along the way, which will perpetuate a bad reputa on in the area and kill future recrui ng (we all know it’s a small world). Jay said that if you just plan to recruit with a basic focus on, “what do you want to make,” then you probably won’t recruit well in your area. All techs want a fair pay plan with great opportuni es for a lot of hours. However, they can get that anywhere; so why are you different? Technicians want op ons for pay on billable hours, benefits, days off, great reputa on shop, investment in training, engagement to grow the business, fair pay for hard work and more. The main thing to remember is that you need to know all pay plans, reputa ons and benefits that are being offered in your area, find out what’s important to each of the poten al candidates you are talking to and then figure out how to think outside the box to help them accomplish those goals at your business.

Jay does suggest that you should be involved in your community and in front of future talent. You should be a known face at tech schools, unemployment office, the military recrui ng groups in your area, and at some vendor training programs. Each community is different, so by being ac ve in all facets, you will have a chance to touch every possible manager and technician in your area. Finally, beyond using Find a Wrench’s full recrui ng program, owners can take advantage of the new assisted self-recrui ng program.” This hybrid plan means they will post ads on all networks, weed through the candidates and only provide owners with resumes that meet minimum qualifica ons. The main thing to remember is that recrui ng never ends and a one-size-fits-all approach won’t work. Employees are different ages, have different goals, come to you from different places, and want different op ons. If you are ac ve in your community, consistently recruit every week, offer flexible pay/benefit plans based on technicians goals, then you will probably be be er than 60 percent of the shops in your area. However, if you plan to engage your team, train your team, get involved in the community, and become the place where people want to come to work, then you will be in the top 99 percent of shops in your area and recrui ng issues will be a thing of the past. Rissy Sutherland is an auto care industry lifer, having grown up in her family’s automoƟve franchise business and later implemenƟng the training and operaƟonal systems for all 300 auto repair franchise locaƟons for Moran Industries—the automoƟve giant that purchased her family’s shops. She has opened more than 400 shops in her career as the execuƟve for nearly a dozen automoƟve brands. She is one of the industry’s foremost experts in shop operaƟons.

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2018 2 01 8 M o opar p ar M ast aster er s G Gui ui ld O fffi fi cer c e r s & Com Committee m i t t eess Vendor CommiƩees

Oﬃcers: President - Susan McDaniel - Bill Luke CJD – Phoenix, AZ Vice President - Joe McBeth - Dallas DCJ – Dallas, TX Secretary - Mike Opperman - Baxter CJD - Omaha, NE Treasurer - Don Cushing - Tasca Automo ve Group - Johnston, RI

Execu ve Commi ee - All Oﬃcers Including: Dan Hu on - Tom O’Brien DCJR - Greenwood, IN Marvin Windham - Benchmark CJD – Birmingham, AL Alan Yancey - Hayes CDJ - Alto, GA Rick Monteiro - Jack Powell CJD – Escondido, CA Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Paul Allred - Stateline CJD – Fort Mill, SC Gerry Oakes - Baxter CJD - Omaha, NE Glenn Hojnacki - Milosch’s Palace CJDR – Lake Orion, MI Cody Eckhardt - Larry Miller DCJR - Sandy, UT

Guild Commi ees:

CDK Global Mike Opperman - Baxter CJD - Omaha, NE - (Chair) Dan Hu on - Tom O’Brien DCJR - Greenwood, IN Paul Allred - Stateline CJD – Fort Mill, SC Joe McBeth - Dallas DCJ – Dallas, TX

Reynolds & Reynolds Rick Cutaia - Rick Hendrick DCJR – Charleston, SC (Chair) Randy Rogers - Huﬃnes CJDR - Plano, TX Kent Cogswell - Jack Phelan CDJR - Countryside. IL Alan Yancey - Hayes CDJ - Alto, GA Marvin Windham - Benchmark CJD – Birmingham, AL (Alt)

OEConnec on & Snap On Business Solu ons

Finance Commi ee

Dan Hu on - Tom O’Brien CJD – Greenwood, IN (Chair) Paul Allred - Stateline CJD – Fort Mill, SC Susan McDaniel - Bill Luke CJD – Phoenix, AZ Cody Eckhardt - Larry Miller DCJR - Sandy, UT Don Cushing - Tasca Automo ve Group - Johnston, RI

Susan McDaniel - Bill Luke CJD – Phoenix, AZ Don Cushing - Tasca Automo ve Group - Johnston, RI Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

UPS

Nada 2019 Planning Jill Vance - Avenue Event Group, LLC

Newsle er/Website/Social Media Don Cushing - Tasca Automo ve Group - Johnston, RI

Paul Allred - Stateline CJD – Fort Mill, SC (Chair) Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Rick Stewart - Commonwealth DR - Louisville, KY

AER Robert Chatwin - Larry Miller DCJR - Sandy, UT (Chair) Glenn Hojnacki - Milosch’s Palace CJD – Lake Orion, MI Josh Gouldsmith - Gladstone DCJ - Gladstone, MO Shane Birdyshaw - Benchmark CDJR - Birmingham, AL Jim Jaeger - Bosak Motors - Merrillville, IN (ALT)

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