MMG Magazine November-December 2016

Leaders in the sale of quality Mopar Parts.

November - December 2016

Also In This Issue MMG 25th Anniversary Itinerary ... 2-3

Mopar Masters Guild Celebrates 25 Years of “The Best of The Best” in New Orleans Jan 24th - Jan 29th - 2017

From the Desk of MMG President Susan McDaniel ...................... 4 NADA 2017 MMG Attendees ............... 5 Celebrating 25 Years as “The Best of The Best” ........................................... 6-7 Passages - Ernie Wennerstrom.............. 8 The Process ................................................ 9 MMG Supporting Vendors .............10-11 Know Your Rights.............................12-13 High School & College Collision Student Career Fairs Scheduled.....14-15 Autobody News........................................16 CDK Global ........................................17-20 Dealer Tire ..........................................21-23 Elite Extra...........................................24-25 FenderBender/Ratchet+Wrench...26-27 Reynolds & Reynolds........................28-29 KIS ..............................................................30 Rousseau Storage.....................................31 OEConnection ....................................32-33 Sell More Tires with a Low Price Guarantee ............................................34-35 Huge Decrease Reported as State Farm Recalculates Labor Rates .................35-37 I-Car Warns abour Bumper Covers Over Blindspot Sensors..........................38 Why OEM’s Make Techs Travel ........39 2016 -17 MMG Committees ................40

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

Mopar Masters Guild

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November - December 2016 Mopar Masters Guild I nerary – NADA 2017 (Tenta ve)

25th Anniversary Celebra on Intercon nental Hotel 444 St. Charles Avenue – New Orleans, LA 70130

Tuesday, January 24th 2017 Arrive in New Orleans 5:30pm – 6:15pm 6:15pm – 7:00pm

Meet at Intercon nental Lobby Bar Mopar Masters Guild 25th Anniversary Parade to Dinner!

7:00pm – 10:00pm

Welcome Recep on & Dinner at Court of Two Sisters 613 Royal St. New Orleans, LA 70130

All Mee ngs will be held at the Intercon nental Hotel – The French Ballroom

Wednesday, January 25th 2017 7:00am – 7:45am 7:45am – 8:45am

8:45am – 9:00am 9:00am – 10:45am 10:45am – 11:00am 11:00am – 12:00pm 12:00pm – 12:45pm 12:45pm – 1:30pm 1:30pm – 1:45pm 1:45pm – 3:15pm 3:15pm – 3:30pm 3:45pm – 5:00pm

Breakfast MMG Discussions Opening Comments of the 25th NADA Mopar Masters Guild Mee ng Secretary’s Presenta on of Minutes Treasurers’ Report Commi ee Reports Guild Business Old/New Break MMG Discussions Begin sharing most posi ve and nega ve thing affec ng your business Break MMG Discussions Lunch Mopar Execu ves Break Mopar Execu ves Break Mopar Execu ves - Adjourn Mee ng

Thursday, January 26th 2017 Spouses Brunch 10:00am – 12:00pm The New Orleans School of Cooking 524 St. Louis St. – New Orleans, LA 70130

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Thursday, January 26th 2017 7:00am – 7:45am 7:45am – 8:45am 8:45am – 9:00am 9:00am – 12:00pm 12:00pm – 12:45pm 12:45pm – 1:30pm 1:30pm – 1:45pm 1:45pm – 2:30pm 2:30pm – 3:15pm 3:15pm – 3:30pm 3:30pm – 4:15pm 4:15pm – 5:00pm 5:00pm

Breakfast MMG Discussions Break MMG Discussions Lunch Guest Speaker – Reynolds & Reynolds Break Guest Speaker – Snap-On Business Solu ons Guest Speaker – CDK Global Break Guest Speaker – Elite Extra Guest Speaker – UPS Adjourn

Friday, January 27th 2017 8:30am - ???

NADA Conven on Floor 901 Conven on Center Blvd New Orleans, LA 70130

6:00pm – 9:00pm

Mopar Masters Guild 25th Anniversary Celebra on & Recep on Gordon Biersch Brewery - 200 Poydras Street - New Orleans, LA 70130

Saturday, January 28th 2017 7:00am – 7:45am 7:45am – 8:45am 8:45am – 9:00am 9:00am – 10:45am 10:45am – 11:00am 11:00am - 12:00pm

Breakfast MMG Discussions Break MMG Discussions Break Tier 2 Vendor Fair Featuring: *Corporate Billing, LLC

*Rousseau Metal/Storage

*Autobody News

*Katzkin Leather

*10 Missions Media (FenderBender/Ratchet+Wrench) 12:00pm – 12:45pm 12:45pm – 1:30pm 1:30pm – 1:45pm 1:45pm – 2:30pm 2:30pm – 3:15pm 3:15pm – 3:30pm 3:30pm – 4:15pm 4:15pm – 5:00pm 5:00pm

Lunch Guest Speaker – OEConnec on Break Guest Speaker – Dealer Tire Guest Speaker – AER Sales Break Guest Speaker – KIS MMG Discussions Adjourn – End of Mopar Masters Guild’s 2017 NADA Mee ng

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

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November - December 2016

From the Desk of MMG President Susan McDaniel

2016 - Year in Review Wow! What a year this has been!

We tend to say this every year but this year has really flown by. It seems like we are all becoming busier and busier with each passing day…if there is a slot empty…we fill it immediately.

As we approach our 25th anniversary of the Mopar Masters Guild I think we can all agree that as we reminisce back over the years and think about the first MMG mee ng we a ended (or those of you who were lucky enough to be in that very first mee ng) it really seems like yesterday. This guild has made some amazing strides over the years.

There have been many problems and issues that we have overcome in our businesses that we thought, at the me, were really bad. Each me made the one before look less important. In the end…we overcame them all and will con nue to do so.

I would like to thank each and every one of our readers for taking the me and interest to browse our publica on and I truly hope it has made an impact on you in some way.

A big THANK YOU to our suppor ng vendors for s cking with us. Our vendors help keep this guild going and we try really hard to stay in constant communica on with them throughout the year. We have commi ees for each one and meet at least once during the year at various loca ons to discuss new ideas, what is working and what isn’t. We always do a lot of brain storming during these gatherings whether it is in a conference room, a baseball game, fishing, riding horses and shoo ng guns, four wheeling or just out for a nice dinner somewhere. We ALL feed off of one another in some way. There is no way that you can be in a room full of great minds and not learn something.

I would also like to thank our friends at FCA for mee ng with us throughout the year and the many conversa ons that we have engaged in. Even though we don’t always see eye to eye, the important thing to remember is that we all need each other to make our businesses succeed. We all get up every morning and drive to work to make money and it takes all four wheels to make the car roll.

Thank you to all of those who made our business conferences a huge success. All of the guest speakers and presenters along with all of the ones working behind the scenes to bring hundreds of people together to learn, converse and network. I think we all had a great me and got to know each other a li le be er.

Each and every member of our guild is important. I cannot say this enough. We all look forward every year to seeing and talking with one another, as well as our guests, vendors and FCA. Every single person in our mee ngs has value and an idea that may launch another onto a whole new path of success in some way. Please con nue to share your presence and your thoughts.

Last, but certainly not least, I would like to thank Don Cushing, our Publisher, for making this magazine possible. He works relessly, behind the scenes, throughout the year collec ng informa on and ar cles from us to bring this all to frui on. He films and takes pictures during our NADA mee ngs and keeps track of us all. He keeps and updates email files of past and present members, along with managing our Facebook page. Besides all of this, he is a great friend!

Susan The more you are grateful for what you have the more you will have to be grateful for.

Mopar Masters Guild Magazine

- Zig Ziglar

Leaders in the Sale of Quality Mopar Parts

NADA 2017 Scheduled Attendees Use this list to contact fellow members prior to our meeting!

First Mike Justin Andy Casey Matt Gerry Mike Marvin Joe Susan Jim Eric Carl Rick Joe Philip John Derek Phil Dean Mick Denny Bob Chris Tom Alan Randy Gary Rick J.D. Cody Robert Don Steve Adam Ed Mike Rick Doug Paul Dan Tim Will Eric

Last Mulkins Bantock Reed Brown Jarvis Oakes Opperman Windham Handzik McDaniel Jaeger Avondet Kellums Stewart Mcbeth Southwick Russo Johnson Krueger Taylor Padgeon Loux Wittig Brodeur Kellogg Yancey Rogers Block Monteiro Ipsen Eckhardt Chatwin Cushing Hofer Thompson Lueras Gerber Cutaia Price Allred Hutton Miller Manous Beam

Dealership AUTONATION OF GOLDEN AUTONATION OF GOLDEN AUTONATION FORT WORTH AUTONATION KATY BALD HILL DCJR BAXTER AUTO BAXTER AUTO BENCHMARK CDJR BETTENHAUSEN AUTOMOTIVE BILL LUKE CJDR BOSAK MOTORS OF MERRILLVILLE BRUNSWICK AUTO MART BRUNSWICK AUTO MART COMMONWEALTH DODGE RAM DALLAS DODGE CJR DALLAS DODGE CJR DALLAS DODGE CJR DALLAS DODGE CJR DEPENDABLE DODGE DEPENDABLE DODGE FRED BEANS DCJR FRED BEANS DCJR GANLEY CDJR GLENN E. THOMAS COMPANY HAROLD ZEIGLER CDJR HAYES CHRYSLER DODGE JEEP HUFFINES CJD PLANO JACK POWELL CJDR JACK POWELL CJDR KEN GARF WEST VALLEY CJDR SRT LARRY MILLER CJDR SANDY LARRY MILLER CJDR SANDY MOPAR MASTERS MAGAZINE PARK CJDR PARK CJDR PERKINS DODGE RAIRDON DODGE CJ OF KIRKLAND RICK HENDRICK DCJR SECURITY DODGE STATELINE CJDR TOM OBRIEN CJDR TOM OBRIEN CJDR TRONCALLI CHRYSLER DODGE JEEP RAM TRONCALLI CHRYSLER DODGE JEEP RAM

email mulkinsm@autonation.com bantockj@autonation.com reeda2@autonation.com brownc4@autonation.com mattj@baldhill.com goakes@baxterauto.com mopperman@baxterauto.com mwindham@withyoudowntheroad.com jhandzik@bettenhausenauto.com smcdaniel@billluke.com jjaeger@bosakmail.com bam.eric@gmail.com brunswickparts@yahoo.com rstewart@commonwealthdodge.com jmcbeth@group1auto.com psouthwick@dallasdodge.net jrusso@group1auto.com dejohnson@dallasdodge.net pk@dependabledodge.com dtaylor@dependabledodge.com MPADGEON@FREDBEANS.COM dloux@fredbeans.com wittigbob@msn.com getparts@getdodge.com tomkellogg@zeigler.com AlanY@hayesauto.net randy.rogers@huffines.net gblock@jackpowell.com rmonteiro@jackpowell.com jd@kengarff.com ceckhardt@lhmauto.com rjchatwin@lhmauto.com dcpubnews@gmail.com shofer@parkchryslerjeep.com athompson@parkchryslerjeep.com elueras@perkinsdodge.com mgerber@rairdon.com rick.cutaia@hendrickauto.com secdodge@gmail.com pallred@millsautogroup.com dhutton@obrienauto.com timmiller@obrienauto.com wmanous@troncalli.com ebeam@troncalli.com

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

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November - December 2016

The Mopar Masters Guild Motto: “The exchange of information by like-size dealers in a non-competitive environment” Celebra ng 25 Years as “The Best of the Best” “Established in 1992”

In 1989 Chuck Hartle’ met Bart Cooper at a 20 Group mee ng in Dallas Texas. Over the next four years they developed a great friendship that changed their lives as parts managers forever. During this me the pair developed the idea of forming a Na onal Mopar Parts Managers Guild. In 1992 the tandem became a tri with the introduc on of Cy Yates. The Three managers con nued to conceptualize the idea of developing a Na onal Parts Managers Guild. This was the beginning of the Mopar Masters Guild, as we know it today.

Since being established by these 3 men, the first annual Mopar Masters Guild mee ng was held in New Orleans. The small group met in conjunc on with the Na onal Automobile Dealers Associa on (NADA) annual conven on. This tradi on is con nued today and gives managers a pla orm to tackle business challenges together as well as interact with Mopar.

Realizing how important guild, vendor and brand interac on is, the Mopar Masters Guild has expanded its communica on through the years. The Mopar Masters Guild Magazine, Website, Vendor mee ngs and Mopar events all contribute to the sharing of knowledge. Knowledge that is beneficial to all FCA brand dealers.

Since the first mee ng the guild has been ac ve in the development of many factory programs. Not a day goes by that an FCA dealership does not use a program that the guild has played a role in.

Over the past 25 years there have been members that have moved on to new adventures. Likewise many Mopar employees have also come and gone. The most important thing however, remains the concept started with the three Guild founders. The concept of sharing informa on with others has made many members, be er managers and people. Today with the addi on of a forum available to all FCA brand dealership employees the Mopar Masters Guild’s future con nues to look bright.

We are governed by our own by-laws that were established that same year and are led by elected officers serving 2 year terms. The guild was founded on the principles of sharing ideas and best prac ces with like size dealers in a non compe ve environment. The ini al membership were invited from Chrysler’s Mopar Masters Club which was a dealer group represen ng the top 100 distributors of Mopar parts in the country. The group has evolved into an established collec ve voice with FCA as well as a proven sounding board helping vendors be er their product offering to the automo ve industry.

We now present to you the leaders of the Mopar Masters Guild for the past 25 years who have guided us to what and where we are now. We are very proud of every one of them for their guidance and leadership quali es: Continued on Page 7

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts Continued from Page 9

Chuck Hartle

Founder & First President

1992-1993

Bart Cooper

Founding OďŹƒcer

1992

Cy Yates

Founding OďŹƒcer

1992

Ernie Wennerstrom

2nd President

1994-1995

Gerry Oakes

3rd President

1996-1997

Paul Allred

4th President

1998-1999

Rick Monteiro

5th President

2000-2001

Alan Yancey

6th President

2002-2003

Marvin Windham

7th President

2004-2005

Gerry Oakes

8th President

2006

Roy Benner

9th President

2007

Mike Gerber

10th President

2008

Brent Hoge

11th President

2009

Dan Hu on

12th President

2010-2011

Steve Hofer

13th President

2012-2013

Rick Cutaia

14th President

2014-2015

Susan McDaniel

15th President

2016-2017

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November - December 2016

Passages - Ernie Wennerstrom Bald Hill DCJ - Rhode Island Ernest “Ernie” Wennerstrom, 66, of Foster, Rhode Island, passed away on Sunday, December 11, 2016 at home. Born in Providence, he was the son of the late Ernest G. Wennerstrom and the late Yve e Walsh, and the loving husband of the late Janet A. (Thornton) Wennerstrom.

Ernie spent over thirty years as the Parts Manager of Bald Hill Dodge, where he used his sharp intellect to build a thriving business, his quick wit to pull numerous pranks, and his fluency in sarcasm to keep his employees on their toes. His work ethic was only surpassed by his devo on to his family, and, whether he was sharing fabricated stories of his youth or playing a killer game of Frisbee, he loved being with his children and grandchildren. In his free me, he enjoyed local auto racing, golfing, playing hockey and riding his Harleys. Upon re rement, Ernie became heavily involved with the Rhode Island chapter of Bikers Against Child Abuse (B.A.C.A.), an organiza on that he held close to his heart and which gave meaning to his final years.

Besides his loving dog, Pi, he leaves a son, Roth P. Wennerstrom, and his spouse, Jennifer, of Greenville, RI; a daughter, Erika A. Wennerstrom of Gra on, MA; three sisters, Lois Haulish of Fall River, MA, and Carol Hu and Noel Wennerstrom, both of California; five grandchildren, Cameron, Hayden, and Kaia Wennerstrom and Alice and Eli Peck; and his fellow members of B.A.C.A. who became his brothers and sisters and to whom he was known as “Easy.”

Visi ng hours were held Thursday, December 15, 2016 from 4-8pm in the Russell J. Boyle & Son Funeral Home, 142 Centerville Road, Rt 117 Warwick. In lieu of flowers, dona ons to Bikers Against Child Abuse, PO Box 17152, Smithfield, RI 02917 in his memory will be very appreciated.

Says Execu ve Commi ee Member Rick Monteiro, “Ernie was a founding father and second President of the Mopar Masters Guild. This year we are celebra ng our 25th Anniversary of the MMG. Ernie’s early leadership through some rough mes made this possible. Ernie took me under his wing and his great mentoring skills allowed me become one of the Mopar Masters Presidents. I will always be grateful to him for showing all of us how to conduct ourselves as honorable business people. He is dearly missed. Good bye my friend.”

Many of you knew Ernie through the Mopar Masters Guild. Ernie & I met in 1974 when we worked at Harris Auto Sales in East Providence, RI. Ernie mentored me and guided me in learning the wholesale aspects of business. He also taught me that honor and integrity were of the utmost importance in life and a career. Although I went out on my own a er a few years of his tutelage we always kept in contact. In 1997 Ernie hired me to come work for him at Bald Hill Dodge as his Wholesale Manager. Again, he con nued to teach me processes that would allow me to excel. Ernie was instrumental to my rela onship with the Mopar Masters Guild. He introduced me to the Guild in late 1997 and helped me secure a role that I s ll enjoy to this day as their publisher. We shared a business rela onship that I can honestly say I could not have shared with any other boss. He was firm but fair. Away from the dealership we enjoyed many years of riding our Harleys on many different bike runs. Laconia was one of our favorites and we tried never to miss a “Bike Week”. That changed when he became ill. No one will ever know the amount of pain and discomfort he endured his last few years. But for those who knew him, that was Ernie. Stubborn as a Mule.

For all his guidance through the years I called him “Captain” as he directed us through the rough waters of business and always seemed to point us in the right direc on. Yes, I agree Rick Monteiro, Ernie will be dearly missed.

Rest in Peace my Captain!

Don Cushing - Bald Hill DCJ

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

The Process From Wikipedia: Process thinking, also known as the process, is a philosophy that emphasizes prepara on and hard work over considera on of outcomes or results, and it is par cularly popular in professional sports. Prac oners of process thinking focus on the present instead of past events or future outcomes, and they believe that all ac ons one takes in life, regardless of how trivial they may seem, affect the desired outcome. The philosophy was popularized by Alabama football coach Nick Saban.

As most of you are aware, I am a fan of college football, and of Alabama football in par cular. Bama has been on a remarkable run the past few years, and Nick Saban gets most of the credit for that. As I follow his program, it amazes me how simple he makes it appear. Here are a few of the points I’ve heard him make over the years:  It is never OK to lose.  Be disciplined in your prepara on and do whatever is necessary to be prepared.  Be disciplined and take care of your area of responsibility.  Do the basics: blocking, tackling, ball security. It’s the small things that affect the outcome.  We can’t worry about the opponent because we have no control over them. We have to take care of our business and make the most of what we can control.  Focus on the play that you are playing. Don’t worry about past plays or what might be next.  Balanced offense—run and pass.

In thinking about the things that make Alabama football successful, I have to wonder if we as managers could do the same thing in our approach to business. I can tell you that I don’t run as ght a ship as Saban, and based on his success, even though his process sounds simple, it takes supreme discipline to pull this off. And guess what—it doesn’t always work. We haven’t been beaten yet this year (assuming this goes to press before December 31), but I can guarantee you that we will be beaten some me in the future. (I just hope it doesn’t happen this winter!)

I’m trying to commit myself and my team to be more focused: To be more prepared, To learn from our past but not focus on the past, To focus only on the business opportuni es before us today, And to do all the basics well, such as delivering parts in an accurate and mely manner, looking up parts correctly, communica ng with customers, answering our phones, and so on.

As we watch the games this holiday season, we can think about our business and how we can use these lessons to make us be er.

Roll Tide!

Submi ed by the very passionate college football fan, Marvin Windham

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

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November - December 2016

Our Supporting Vendors:

Support those who support you.

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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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November - December 2016

Know Your Rights: Mopar Introduces Awareness Campaign on ‘Right to Request’ O.E. Collision Parts 

New campaign informs owners of right to request Original Equipment (O.E.) parts for collision repairs

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Campaign includes informa onal ad, guidebook, images and more



Mopar collision parts are superior to a ermarket in areas including fit, finish, corrosion resistance and material strength

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O.E. Mopar parts are created using factory specifica ons o en not available to the a ermarket

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Accident Assistant feature directs owners to Cer fied FCA US Collision Repair shops

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Mopar por olio includes more than 75,000 collision components

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Addi onal O.E. Mopar collision parts facts/stats

October 18, 2016 , Auburn Hills, Mich. - The Mopar brand is rolling out a new mul -faceted awareness campaign designed to both inform consumers of their “Right to Request” Original Equipment (O.E.) collision parts and to highlight the benefits of choosing Mopar products over the a ermarket for collision repairs.

The ini a ve will include a new informa onal ad that details the rights of owners to ask for O.E. parts for collision repairs.

The “Right to Request” ad will be featured on the brand’s YouTube page, as well as on its official website at www.mopar.com/collision. A Mopar collision repair guidebook showcasing the superior fit, finish, performance, safety and warranty coverage of OEM Mopar collision products will also be distributed for display at collision shops and FCA US LLC dealers. Addi onal videos and images will reinforce the Mopar brand’s commitment to helping repair vehicles the right way with O.E. parts.

“Consumers have the freedom to choose, and that includes the freedom to insist on O.E. Mopar collision parts to protect their investment in their vehicles,” said Ross McGinnis, Vice President – Parts Sales and Field Opera ons, Mopar. “Owners have the right to ask for O.E. parts created by the same engineers who designed and built their vehicles in order to protect their vehicles and the people riding in them.”

In some cases, repair shops can be pressed to install generic, lower-quality a ermarket parts instead of O.E. factory products. The case for insis ng on O.E. parts is even more cri cal considering the complex technology and safety systems integrated into the manufacture of today’s modern vehicles. In areas such as corrosion resistance, material strength, appearance and even packaging, O.E. Mopar collision parts provide factory performance and reliability that unknown a ermarket parts o en lack.

Continued on Page 13

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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Continued from Page 12

Mopar has earned a reputa on as a leader in the OEM collision parts arena. The brand was the first OEM to issue a posi on statement on the importance of using a scan tool, such as the Mopar vehicle diagnos c tester, for collision repairs. The Mopar Scan tool uses so ware that a ermarket tools may not contain to assess whether the safety and security systems of an FCA US vehicle contain ac ve or stored Diagnos c Trouble Codes (DTCs). The tool performs up to 150 cri cal evalua ons on maximum-op oned vehicles, including evalua ons of air bag, air suspension, electronic limited slip differen al and HVAC systems, among others.

The brand also introduced an Accident Assistant feature on all downloadable mobile applica ons, specifically created for FCA US vehicle owners. All applica ons, available through the two major mobile opera ng systems, connect owners with Cer fied FCA US Collision Repair shops that use O.E. Mopar collision parts.

To view the “Right to Request” Mopar collision parts ad, visit h p://www.mopar.com/collision or www.youtube.com/mopar.

Mopar Collision: The Crash Course 

Mopar offers more than 75,000 collision components

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Mopar collision products are created using factory specifica ons o en not available to the a ermarket

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More than 1.3 million FCA US vehicle owners have downloaded owner mobile applica ons for the Chrysler, Dodge, Jeep®, Ram, FIAT, Alfa Romeo and Mopar brands

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All brand apps include an Accident Assistant feature that directs owners to Cer fied FCA US Collision Repair shops

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More than 1,500 shops are signed up as Cer fied FCA US Collision Repair facili es

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More than 87,000 owners have accessed the Accident Assistant feature, of which more than 12,600 documented an accident and more than 13,000 viewed detail pages regarding a Cer fied FCA US Collision Repair shop

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O.E. collision parts provide an acceptable fit on 93 percent of repairs*

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Collision shops experience acceptable fit on just 54 percent of repairs using cer fied a ermarket parts, dropping to just 25 percent for non-cer fied, non-O.E. parts*

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Only six percent of O.E. parts were returned to the vendor by collision shops*

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29 percent of cer fied a ermarket parts and 39 percent of non-cer fied, non-O.E. parts were returned to the vendor*

*Source: Body Shop Business, 2015

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

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November - December 2016

High School & College Collision Student Career Fairs Scheduled Across the Country The Collision Repair Educa on Founda on is working to connect high school/college collision and automo ve students to collision industry employers around the country by organizing career fairs. Each of these career fairs in 2016 averaged 200+ students from local technical school programs and helped mo vate these students in being able to see the many different types of companies that are interested in their futures.

The career fairs will be con nuing this spring and the current schedule includes: Des Moines (2/3), San Diego (3/9), Houston (3/22), Dallas (3/23), Phoenix (4/8), Pi sburgh (4/19), Sea le (4/20), Atlanta (4/25), Chicago (week of May 1st), Madison (5/3), Denver (5/8), Nashville (5/17).

More ci es to be added.

In addi on to these physical events, in order to gather students’ resumes from around the country, the Collision Repair Educa on Founda on will also be reaching out to students this spring and have them upload their resume to the organiza on’s Student Resume Database if they are looking for part- me, full- me, and internship work. This database of student resumes and contact informa on will be shared with Educa on Founda on supporters.

If your dealership might be interested in par cipa ng in one of these events and/or would like to be connected to local collision school programs please contact Educa on Founda on Director of Development, Brandon Eckenrode at Brandon.Eckenrode@ed-founda on.org / 847.463.5244.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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Spring 2017 High School & College Collision & Automotive Student Career Fairs

The Collision Repair Education Foundation will be hosting career fairs this spring that will be attended by hundreds of local high school & college collision and automotive students who are looking to meet industry employers/vendors. Don’t miss this opportunity to meet the future professionals of the industry.

These events are available to all industry members to participate.

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November - December 2016

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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

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November - December 2016

Making Service an Ecosystem

How to Elevate Your Fixed Ops Experience and Win Over Your Customers Vehicle manufacturers are building cars be er than ever. Fewer warranty repairs, longer factory-recommended service intervals, and cars that can outlive their financing periods. And while this evolu on is great for consumers, it can lead to fewer visits to your service department, and poten ally your customers defec ng to independent repair shops and a ermarket chains.

What’s the solu on? You need a strategy that makes it easy for customers to do business with you, and gives them a compelling reason to come back to your dealership again and again. Rather than viewing “finding customers” as a separate process from “comple ng service,” but instead viewing your en re Fixed Opera ons as an ecosystem, you can do just that.

Here’s how, in four simple steps.

1. Understand how customers shop for service and what they expect.

Every month, there are more than 70 million Google searches for parts and service keyword terms. 43% ul mately choose a service center based on the results of those searches—whether they’re si ng at a computer or using a mobile device.

That’s why it’s cri cal that you connect with drivers whenever and wherever they’re searching for their next service.

Despite the cri cal nature of digital marke ng, however, dealers simply don’t show up in Google search results. A quick search of “oil change” shows a series of fatal errors:  OEM dealer ads may appear first, but with the highest priced oil change listed on the page ($39.95, compared to several other results at less than $20).  Local compe tor ads, with coupons, appear more frequently than local dealers.  Non-dealers are adver sing on this keyword search as well, adding more noise to the space.

Keep in mind that customers who turn to Google with this search are not invested in any given repair shop or dealership; they’re looking for a convenient loca on, easy scheduling, and compe ve prices. It’s up to you to not only be found when customers search, but also to deliver on those expecta ons. Use digital adver sing to tell shoppers why they should book their next service appointment with you, and make it easy to schedule those appointments. Although many customers s ll like to dial a number and connect with a person to schedule appointments, more and more customers are showing a preference for booking appointments through a website or from their mobile device. Make sure you’re accommoda ng all of those preferences. And once those appointments are booked, don’t forget to remind your customers; get them in the door with mely appointment reminders. We know that when customers are reminded of their appointments, no-show rates fall drama cally.

2. Compete with a ermarket chains.

A recent 360Service Partners study found that 63% of consumers say that independent service centers are as good as dealership service centers when it comes to fixing vehicles. And we are definitely seeing the results of that percep on; dealerships are losing service customers to a ermarket chains and independent shops—par cularly for high-value repairs, due in part to consumer percep on that dealer service is not price compe ve.

Another key reason that customers are defec ng to independent shops: no one stands out. There’s li le to no differen aon among service providers, and in fact, many consumers don’t even remember the name of the place they take their car. Instead, consumers remember the loca on and that it’s convenient. It’s “the place at the corner of Main and Center,” rather than “Bob’s Repair Shop.”

The silver lining for dealership service centers is that 81% of drivers agree that quality service is more important than price (source: Google). So, once you have your customer through your door, make a great first impression. Greet your customer by name, conduct a walkaround inspec on, and make sure your customer is aware of recommended service and general maintenance. Savvy dealers today are using tablets to make this process easy, and they’re not only seeing revenue increase up to 20%, they’re also seeing closing rates as high as 41% on recommended service.

Continued on Page 19

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Continued from Page 18 In addi on, when Service Advisors use tablets and involve the customer in the walkaround inspec on, customers are more engaged in the process, which improves the customer service experience.

3. Leverage mobile trends to make the most of every customer experience.

Comple ng a thorough walkaround inspec on does more than just iden fy opportuni es to upsell, it can also enhance customer sa sfac on with your service department. While the percep on may be that you’re making your Service Advisor a Salesperson, the truth is that you don’t want your customers returning to your Service department to correct something that should have been caught in the first place. Not only is that frustra ng for the driver, but it may have a nega ve impact on how your customers view your knowledge and exper se.

Tablets do make this process more effec ve and simpler than ever, and they offer the added benefit of enhancing the customer experience in other ways. Today’s dealers are challenged with making the payment process smooth, par cularly in light of all the new and unique ways customers are able—and expect—to pay.

Consider offering your customers the op on of having bills emailed or texted to them, so they can pay the bill before they even arrive to pick up their car. Customers can also specify the me when they will pick up their vehicles, helping eliminate lines at the cashier, saving your customers me and frustra on.

For customers who choose not to pay ahead of me, mobile technologies allow your Service Advisors to collect payment from you customers via smartphone or tablet as they arrive. The other benefit of paying directly with the Service Advisor is when customers have ques ons about work that was completed; advisors have those details, as well as the technical knowledge, whereas cashiers may not.

All of these processes combine to create the experience your customers expect. Customers want an easier, be er experience, and when those expecta ons are not met, 59% will try a new brand or company to find that be er service experience.

4. Ensure customers return to your dealership.

The fact remains that customers have choices about where to service their vehicles, so it’s essen al that you not only deliver the customer experience they expect, but then do everything you can to keep your customers coming back to you.

Before your customer leaves the Service department, schedule the next appointment. According to a MyGuy North America survey, just 16% of Service Advisors schedule the next customer appointment? Your den st doesn’t let you leave without scheduling your next cleaning; become the den st. Book the next appointment and start the engagement process again from the beginning. In between visits, you can stay top-of-mind by sending valuable Service offers and relevant coupons to customers’ inboxes, reminding them of the good experiences they’ve had, and following up on any declined work.

The work doesn’t end there, however; the cycle must con nue as you build that customer loyalty. The sooner you embrace the “ecosystem” mindset for your Fixed Opera ons, the sooner you can create an excep onal customer experience.

Kim Saylor is the Product Marke ng Manager for CDK Global’s Fixed Opera ons Solu ons. She is responsible for the research, launch, and marke ng of products to improve the efficiency and profitability of dealerships’ parts and service departments.

Much of Kim’s career has been spent as a Solu on Consultant for CDK Global. In this role, she worked side by side with dealerships’ personnel training and presented technology solu ons to solve the complex issues faced by each department.

Prior to joining CDK, Kim worked for Fi h Third Bank in Cincinna , Ohio. She earned her Bachelor of Science degree in Marke ng from Northern Kentucky University.

Kim currently lives in Florence, KY with her husband and two children. In her spare me, she enjoys running and going to boot camp fitness classes.

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November - December 2016

DOES YOUR SERVICE DEPARTMENT NEED A LIFT? The biggest opportunity to grow your business is closer than you might think. And by partnering with CDK Global, we will help you increase Service drive traffic and sell more customer pay hours. Seize this opportunity to make your Service department work smarter.

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FGNJOREDO FRP VROXWLRQV ð[HG RSV ©2016 CDK Global LLC | CDK Global is a registered trademark of CDK Global, LLC. 16-0120

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Tire Sales | New Customers | Parts & Service Revenue

For Mopar dealers who want more.

More and more consumers are buying tires online, but online sales are dominated by the aftermarket.

Until now.

Through RightTurn.com, consumers buy tires and schedule installation at their nearest Mopar dealership. You set your tire and installation prices — and earn revenue on both. We deliver the tires to you for free, and deliver you a new customer.

Part of the Mopar TireWorks Digital Selling Strategy, RightTurn.com brings customers back into your dealership.

Sign up today.

RightTurn.com/Dealer

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November - December 2016

MOPAR TIREWORKS & BATTERY ADVANTAGE:

The program of choice for Mopar dealerships With Mopar TireWorks & Battery Advantage, you enjoy industry-leading product support: • Comprehensive online ordering portal • Dynamic Retail Selling Guide® (DRSG™) to show tires to customers • Automatic replenishment through ARO Tire • Calibrated inventory and quarterly adjustments • Dedicated Account Manager support • Tailored tire training • Tire expertise a phone call away • 24-month road hazard coverage • Tire Price Match Guarantee • Warranty claim facilitation

WE THANK YOU FOR CHOOSING US. Please call the Mopar TireWorks & Battery Advantage Program Headquarters at 888.31.MOPAR (888.316.6727) with questions or for more information.

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YOUR MOPAR TIREWORKS DIGITAL SELLING STRATEGY Chances are that you know how important tires can be both to your customers’ safety and to your dealership’s profitability.

As a parts manager, turning over your inventory is highly important. Ordering and storing tires is pretty easy. It’s the sell-through that becomes the challenge — unless you’re a Mopar TireWorks dealership. Then you’re already armed with the Mopar TireWorks Digital Selling Strategy.

In short, the DSS offers four solutions to reach consumers wherever they are: on the drive, in between service visits, and on the web. The four solutions are the Dynamic Retail Selling Guide® (DRSG™), eServices, Online Tire Stores, and RightTurn®.

The Dynamic Retail Selling Guide Service Advisors can easily see tires marked to stock and sell, allowing them to recommend the right ones to customers on the drive. Dealers who utilize this tool sell about 2x more than those who don’t. The DRSG is the foundation of the Digital Selling Strategy. It needs to be optimized for the other tools to work effectively. eServices eServices integrates dealer-level pricing and stocking strategies into existing service lane tools like wiADVISOR, seamlessly displaying tire recommendations across all of your channels and helping to ensure tires are being presented wherever possible.

DRSG

ON THE DRIVE

Online Tire Stores Linking from your dealership website, your Mopar Online Tire Store sells tires for you!

Your customers can even set up tire installation appointments right then and there.

eServices

Online Tire Stores

ON THE WEB

RightTurn

RightTurn.com But what about those customers who haven’t been to a dealership in a while, if ever?

That’s where RightTurn.com comes in. RightTurn.com helps capture online users who are searching for tires. Every purchase includes installation at a nearby dealership — sending you customers who otherwise would be lost to the aftermarket.

RightTurn.com even delivers tires as they’re ordered, and the packing slip includes the customer name. You don’t have to do anything except receive the tires and install them. Inventory turnover doesn’t get more efficient. You set your own pricing and get the tire and installation revenue for every RightTurn.com order you install.

Your Mopar TireWorks Digital Selling Strategy is an innovative and comprehensive solution to help keep your tire business efficient and competitive — and profitable.

WANT TO LEARN MORE? Please contact your Account Manager or call the Mopar TireWorks & Battery Advantage Program Headquarters at 888.31.MOPAR (888.316.6727).

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November - December 2016

Route. Track. Manage. Profit!

visit us at the

Booth 3212

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,ĞƌĞ ĂƌĞ ƐŽŵĞ ƌĞĂůͲůŝĨĞ ZK/ ĞdžĂŵƉůĞƐ ĨƌŽŵ ydZ ƵƐĞƌƐ͕ ǁŚŽ ŽŶ ĂǀĞƌĂŐĞ ĞdžƉĞƌŝĞŶĐĞ Ă ϭϱй ŝŶĐƌĞĂƐĞ ŝŶ ĞĸĐŝĞŶĐŝĞƐ ĂŶĚ Ă ϭϱй ĚĞĐƌĞĂƐĞ ŝŶ ĨƵĞů ĐŽƐƚƐ͗

16% Increase in Parts Delivered in four months of using EXTRA; amount of time at locations cut in half

19% Reduction in Costs on route deliveries after four months of using EXTRA

50% Improvement in Miles on Routes by a large market user after only nine months of using EXTRA

$4,065 Fuel Savings Monthly after six months of using EXTRA

www.EliteEXTRA.com

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Congratulations to MMG for 25 years of innovation, invention and introductions!

Proud to be a member since 2011.

We’ve valued your input and ideas as a Tier 1 member and enjoyed great camaraderie and collaboration on how to make Elite EXTRA the best in class.

Cheers to all of the members for their continued devotion to their industry colleagues and their vendors. We wouldn’t be where we are without you!

www.EliteEXTRA.com

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November - December 2016

How to find

The perfect gift.

STOP SEARCHING

BE GENUINE

THINK LONG-TERM

The perfect gift is one that keeps on giving. By advertising with FenderBender and Ratchet+Wrench , you’ll not only increase sales, you’ll have found a friend you can rely on for years to come. Happy holidays.

SERVING 45,000+ COLLISION REPAIR PROFESSIONALS

SERVING 91,000+ AUTOMOTIVE SERVICE REPAIR PROFESSIONALS

WE ARE A PROUD SUPPORTER OF THE MOPAR MASTERS GUILD. ©2016. ALL RIGHTS RESERVED.

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The Complete Solution for Parts, Service and Collision Success I’d like to introduce Fixed Ops Business, the newest publication from 10 Missions Media, the publishing company for FenderBender and Ratchet+Wrench magazines. Fixed Ops Business will deliver critical, tangible and actionable business-building strategies for ¿[HG RSHUDWLRQV GHSDUWPHQWV QDWLRQZLGH²DQG ZH¶OO GR LW XVLQJ modern, sophisticated media platforms to reach you, our readers, where you are.

6R OHW¶V JHW WKLV RXW RI WKH ZD\ ¿UVW 7KLV LV your magazine.

Our team created Fixed Ops Business for you, our readers, the men and women operating the service centers, parts departments and collision repair shops at dealerships across the country. :H¶UH QRW EDFNHG E\ D JLDQW FRUSRUDWLRQ :H¶UH QRW SDUW RI D ZRUOG FUXVKLQJ PHGLD FRQJORPHUDWH FKXUQLQJ RXW QHZ WLWOHV ZKHQHYHU DQG ZKHUHYHU DGYHUWLVLQJ RSSRUWXQLWLHV DSSHDU :H¶UH D VPDOO LQGHSHQGHQW FRPSDQ\ DQG ZH¶UH UHVSRQVLEOH WR QR RQH RWKHU WKDQ \RX 7KH RQO\ ZD\ ZH VXFFHHG LV E\ KHOSLQJ \RX EHFRPH PRUH VXFFHVVIXO 2XU ¿UVW SULQW HGLWLRQ ZRQ¶W UHDFK \RXU GHVN XQWLO $SULO EXW ZH¶YH DOUHDG\ VWDUWHG :H KDYH FRQWHQW UHSRUWHG DQG ZULWWHQ RQOLQH²XQLTXH RULJLQDO VWRULHV WKDW ZLOO JLYH \RX D JOLPSVH LQWR ZKDW Fixed Ops Business FDQ RIIHU \RX 3OHDVH WDNH D PRPHQW WR YLVLW RXU ZHEVLWH ¿[HGRSVEXVLQHVV FRP 5LJKW QRZ LW¶V VLPSO\ D ODQGLQJ SDJH <RX FDQ VLJQ XS IRU WKH PDJD]LQH LW¶V IUHH DQG RXU HPDLO QHZVOHWWHUV <RX FDQ FKHFN RXW RXU FRQWHQW ZKLFK LQFOXGHV ERWK VWUDWHJ\ LQIXVHG KRZ WR SLHFHV DQG LQGXVWU\ VSHFL¿F QHZV DOO XSGDWHG GDLO\ WKURXJK RXU )DFHERRN SDJH $QG \RX FDQ ¿QG OLQNV to our other social media platforms, as well.

6LJQ XS *HW HQJDJHG :H ZDQW WR KHDU IURP \RX 7HOO XV ZKDW \RX ZDQW WR UHDG DERXW WHOO XV what you need WR UHDG DERXW 7KLV LV \RXU PDJD]LQH :H¶UH KHUH WR KHOS

Bryce Evans Editor, Fixed Ops Business bevans@10missions.com

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November - December 2016

Advertorial

Change the Game in Service As automotive retailers, we make L]LY` LÉ&#x2C6; VY[ [V ZJV\[ NYLL[ X\HSPM` HUK ZLSS [V WV[LU[PHS J\Z[VTLYZ VU [OL MYVU[ LUK >L HK]LY[PZL PU WYPU[ KPNP[HS HUK [LSL]PZPVU >L ZLUK V\[ THPSLYZ Y\U WYVTV[PVUHS JHTWHPNUZ and attempt to spread the word HIV\[ V\Y ºNYLH[ KLHSZ » ;OLU VUJL ^L HJX\PYL H J\Z[VTLY ^L KV L]LY`[OPUN ^L JHU [V MVSSV^ \W ^P[O Rob Leary National Director [OLT JVU[PU\L [V THYRL[ [V [OLT Fixed Operations HUK THRL [OLT H J\Z[VTLY MVY SPML :V ^O` HYLU»[ ^L KVPUN [OL ZHTL [OPUN VU [OL IHJR LUK& :PTWS` W\[ ^L \ZL H ]HYPL[` VM *94 [VVSZ PU ZHSLZ [V THPU[HPU H YLSH[PVUZOPW ^P[O H J\Z[VTLY /V^L]LY ^OLU P[ JVTLZ [V ZLY]PJL HZ HU PUK\Z[Y` ^L KV H WVVY QVI VM JHW[\YPUN PUMVYTH[PVU [V TH_PTPaL L]LY` WYVÃ&#x201E; [ VWWVY[\UP[` >L HYL L_[YLTLS` PULÉ&#x2030; JPLU[ HUK ^L RUV^ P[ /LYL HYL [OYLL X\PJR [PWZ [V JOHUNL [OL NHTL PU ZLY]PJL! à ® .YLL[ J\Z[VTLYZ ^P[OPU [^V TPU\[LZ VM HYYP]HS *\Z[VTLY ZH[PZMHJ[PVU PTWYV]LK I` WVPU[Z ^OLU J\Z[VTLYZ ^LYL HJRUV^SLKNLK I` HU HK]PZVY ^P[OPU [^V TPU\[LZ VM HYYP]HS 1 Use digital greeter boards to MHJPSP[H[L [OPZ WYVJLZZ HUK `V\Y J\Z[VTLYZ ^PSS OH]L H IL[[LY L_WLYPLUJL MYVT [OL TVTLU[ [OL` HYYP]L à ® 6É&#x2C6; LY HKKP[PVUHS YLJVTTLUKLK ZLY]PJLZ L]LY` [PTL

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Rethink Service: How to Capture Every Opportunity To learn more about how you can analyze your RZQ SURFHVVHV DQG GULYH SURð WV DWWHQG RQH RI 5REâV IHDWXUHG VHVVLRQV RU YLVLW RXU ERRWK #2201 at NADA 100 in New Orleans.

We hope to see you there!

Presentation Times: à ® ;O\YZKH` 1HU\HY` H[ ! W T à ® :H[\YKH` 1HU\HY` H[ ! H T à ® :H[\YKH` 1HU\HY` H[ ! H T

www.info.reyrey.com/nada100

For more information on Reynolds service solutions please call 888.781.3020 or visit rr.reyrey.com/advanced-service. © 2016 The Reynolds and Reynolds Company. All rights reserved. 12/16

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J.D. Power

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We increased our average monthly accessories sales by

$58,000.

Nick Short

General Sales Manager Landmark Chrysler Jeep

Experience Accessories Part of Reynolds Retail Management Systemâ&#x20AC;Ś transforming the way consumers experience your dealership.

reyrey.com/AddOnAuto | 888.781.3020 Š 2016 The Reynolds and Reynolds Company. All rights reserved. 1007122 12/16

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November - December 2016

Your one call for all things Audio...and more!

WHAT ARE YOU LOOKING UP TO?

WWW.KISPRODUCTS.COM OR 817.919.0190 INTRODUCING THE…

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November - December 2016

FOUR WEB TIPS TO MAKE YOUR DAY EASIER

1

ADD TRUSTED SITES TO YOUR WEB BROWSER. Eliminate the need to approve access of frequently used webpages by adding them as trusted sites through your web browser’s internet options.

DISABLE POP-UP BLOCKER FOR FREQUENTLY USED SITES. Disable the pop-up blocker for sites you frequently use and trust through your internet options. Note: Only do this for sites you trust.

3

2

INCREASE WEBPAGE FONT SIZE.

Hold “Ctrl” and then press + to increase the size or – to decrease the size.

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33

KEEP SOFTWARE UP-TO-DATE. Web browser not running smoothly lately? Check to see if it needs updated by clicking on “About” in most browsers.

BONUS TIP:

Make ordering OE parts easier for your customers with CollisionLink® and RepairLink®

For more information, visit OEConnection.com/wholesale or call 888.776.5792, ext. 3

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November - December 2016

Sell More Tires with a Low Price Guarantee There is no easy way to say this – if you aren’t aggressively selling res, you need to start right now. Make your service department look and smell like a re store. Have good, be er, best deals with prices that include installa on and balancing. Go to a Goodyear or Firestone store and look at the way they merchandise res and be a copy cat – there’s nothing wrong with that.

You’ve probably have heard these, but the numbers are so important it bears repea ng: 1 out of 7 cars in your drive needs res and 4 out of 5 will buy res from the first person that tells them they need them- let’s face it guys, those are great odds. And here is the real juice - 75% of customers will buy their service where they buy their res. So, sell more res and you will sell more service – that isn’t rocket science!

Here’s what I am saying: Start really merchandising, selling and tracking your re sales and you will grow your service business, it’s that simple. Set objec ves for your advisors based on the numbers above and hold them to it. Get your advisors to look at and touch the res and get them to do a li le show and sell – in other words, they need to engage the customers in the re inspec on process. Show customers the wear pa erns on their res and make sure your advisors get their hands dirty... if your advisors have clean hands, they aren’t checking res, it is that simple. To really make a difference, you need to get your advisors to be “ re saavy” – they need to know what they are talking about and most re suppliers will do training classes free of charge – take advantage of that.

A er you get them to consistently check res, you need to give them the tools they need to sell more res and one of the best tools I’ve ever seen for increasing re sales is a low price re guarantee. Here’s how it works, have your advisors inform customers that they can buy today with confidence and they can know that they are ge ng the best deal - because if they find the same re for less within 30 days, you will give them the difference plus 20%. It’s called a “20% Low Price Guarantee” and it works. Have flyers made adver sing your low price guarantee and put them everywhere. Put them on advisors desks. Have them stapled to customers copies of their repair order. Have signs made and posted everywhere in service that boasts about your “20% Low Price Guarantee”.

Think about this: most customers naturally think you charge too much for everything – so in their mind you probably also charge too much for res, but the guarantee puts them at ease and proves you are confident that you really do have a great deal. This way they can feel comfortable about the re purchase – knowing they can always get the difference back plus 20% if they do find the same res somewhere else cheaper. And here’s a li le news flash – hardly anybody shops for something a er they already bought it - and even if they do find the same res for a be er deal, you only have to give them the difference back and how much can that be? And how much can it be if you then add 20% to that difference amount – it’s nothing! Use the low price guarantee to sell more res and keep more customers.

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Continued from Page 34 You know this is true - if you tell a customer they need res, and they leave without buying the res, they will go somewhere else to buy them and you will probably never see them again.

This isn’t rocket science. Get your lost customers to return, bring new customers in, be nice, fix the car right the first me and give them a reason to come back! We have several programs that can help you boost service traffic and improve customer reten on...if you want to know more contact us today for a 15-minute demo online, on the phone or in person – CarPeopleMarke ng.com – 866.227.7337 As a side note to the Mopar Masters Guild, let me know if any of you want to learn how our mul -media marke ng programs can recapture lost customers, a ract brand new customers they could never reach before and keep them from ever going anywhere else.

It only takes 15 minutes and we can do it on the phone or online!

Sincerely, Randy Johnson - Rjohnson@carpeoplemarke ng.com Randy Johnson is the Founder and President of Car People Marketing

386.846.2430

Huge Decreases Reported as State Farm Recalculates Some N.Y., N.J. Auto Body Labor Rates

By John Hue er on December 5, 2016 Associa ons | Business Prac ces | Insurance | Market Trends Some New York and New Jersey collision repairers could receive $15-$16 less an hour from the na on’s largest auto insurer a er a change in how State Farm determines “prevailing compe ve prices” in certain metropolitan areas. State Farm in 2015 redefined at least parts of New York, New Jersey and Pennsylvania using Census Bureau Core-Based Sta s cal Areas. On Monday, spokesman Jus n Tomczak confirmed that State Farm had ceased using labor rate surveys to deduce the market rate in four areas and instead would calculate based on “analyzing the cost of vehicle repairs” in claims: The State Farm Repair facility survey program will no longer be u lized in the divisions that make up the CBSA in NY, NJ, PA that the repair facility was previously included. PCP rates in this “Division” were developed by analyzing the cost of vehicle repairs for Insurance work. This analysis did not include DRP type repairs.

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Continued from Page 35 Rates for repairers are (based on division): 

Dutchess/Putnam Division



Nassau/Suffolk Division

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Newark, New Jersey – Pennsylvania Division



New York – Jersey City – White Plains Division

Those decreases have been reported to be about $15-16 in the New York City and Long Island areas (New York-Jersey City-White Plains and Nassau/Suffolk, respec vely) must be passed on to the customer, eaten by the shop, or tested through court ba les over whether the cost was “reasonable.” State Farm is expected to handle supplements to exis ng repairs at the previous rates in at least one of these regions, we’ve also heard.

The Newark-Pennsylvania area doesn’t seem to have experienced much, if any, change based on ini al reports, and we haven’t heard what’s going on in the Dutchess/Putnam area of New York.

We also discussed CBSAs and State Farm in greater detail back in 2015: Ironically, some of the shops which saw the rate decrease had seen a couple of dollars/hour worth of increases from State Farm just last year. The decision could lead to changes in other carriers trying to stay compe ve amid higher severity and (for now) higher frequency. Insurers tend to match each others’ labor rates, li ga on in several states has claimed; the plain ff shops alleged this is done improperly, while the defendant insurers argued that it’s just good business sense not to pay more than your compe tors do.

We asked Tomczak if State Farm had changed labor rates in other parts of the country, but he didn’t answer this or other ques ons except to say: “State Farm has nothing addi onal to share with Repairer Driven News at this me.”

Jack Molodanof, lobbyist for the California Autobody Associa on, said Monday he hadn’t heard complaints from his repairers about drama c reimbursement policy shi s. A Pennsylvania repairer located outside of the Newark-Pennsylvania region told us he hadn’t experienced that kind of thing either. The decreases appear to have taken effect Monday.

“My phones are blas ng off the hook,” Alliance of Automo ve Service Providers of New Jersey Execu ve Director Charles Bryant said Monday. “I don’t have a handle on it yet,” he said. He said he’s heard different responses from his membership, including one repairer who was resigned to the change and another which planned to make customers pay out-of-pocket.

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Continued from Page 36 Another op on for those unwilling to accept State Farm’s rate decision might be to pursue what is a “reasonable” charge in court — something that’s been done successfully before in California.

Of course, State Farm doesn’t have to ba le over “reasonableness” at all. New Jersey law allows the carrier to take a customer’s vehicle to any shop near the customer which will fix the repair at the price the carrier wants.

But the insurer is then on the hook for the shop’s repair quality.

As the state’s insurance ombudsman explains: Provided the repair shop is licensed, your insurer has to try to reach an agreed price with the shop of your choice. If your company cannot reach an “agreed price”, they will provide you with the names of licensed shops who can do the repairs for the price the company has determined. … At your request, your company must recommend a qualified repair facility convenient to the vehicle’s loca on which will repair the vehicle at the price the company is willing to pay and whose work is guaranteed. Your insurance company further stands behind the repair shop’s guarantee.

‘We’re s ll trying to figure it out,” Ed Kizenberger, execu ve director of the Long Island Auto Body Repairmen’s Associa on and Auto Body Cra smen’s Guild of New York City, said Monday. “We’re trying to understand the dynamics here,” he said. Cars are growing more advanced and demanding more training and equipment to repair — which repairers recoup through labor charges — and his area sees “mostly newer-model cars.” Collision repairers “can’t go backward, for crying out loud,” Kizenberger said. Kizenberger said the insurer seemed to be “looking at the numbers without looking at the reality of it.” State Farm had been “fairly accurate” in its past es ma ng, Kizenberger said. “Now, we’re gonna have inaccurate dollars,” he said. He raised the ques on of policyholders, who would receive “less of a recovery then they were last week” on their property.

A representa ve from the New York Department of Financial Services, which regulates insurance, said he would look into the issue but wouldn’t be able to respond un l Tuesday at the earliest. “A vibrant, profitable auto collision repair industry is in the interest of State Farm. At the same me, we are advocates on behalf of our customers for reasonable repair costs,” Tomczak said in a statement. “We believe repairer profitability and quality auto repairs that are reasonably priced can both be achieved. This change in our labor rates brings us more closely into alignment with the actual cost of vehicle repairs and is in the best interest of our customers.”

As noted above, he declined to answer further when asked if State Farm would lower premiums for policyholders following such major cuts in its own repair costs.

Source: www.RepairerDrivenNews.com

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I-CAR Warns About Bumper Covers Over Blindspot Sensors I-CAR warned collision repairers Wednesday that many OEMs do not allow repairs on a bumper cover if a blind spot sensor exists behind it.

It also noted even bumper cover removal can require a calibra on of blind spot sensors under some OEM procedures. “Events that may require a calibra on of the sensor include, removal of the sensor, removal of the bumper cover, or damage to moun ng loca ons,” I-CAR wrote. “Programming will be required on many blind spot sensors, followed by an aiming procedure. … Also, keep in mind that most OEMs do not allow repairs to bumper covers in front of blind spot sensors.”

The cau on was the latest entry in the organiza on’s ni y “Typical Calibra on Requirements” series. The educa onal organiza on has been reviewing OEM procedures and giving readers a nice summary of typical best prac ces and what they might expect for procedures like windshield replacement and ADAS calibra on.

(Though as I-CAR notes, you’ve got to check and use the actual OEM procedures for the specific model in front of you.)

As bumper covers are the most commonly affected items in a collision (68 percent of the me), according to Mitchell data, repairers need to pay extremely close a en on to these kinds of OEM requirements as advanced driver assistance technology appears more frequently behind fascias and panels. About 72 percent of those mes, the affected bumper covers are replaced, according to Mitchell’s study of a 3 million-es mate subset of the IP’s data.

Don’t miss the blind spot piece or other entries in the calibration series on the Repairability Technical Support portal. Here’s some other recent entries: 

“Typical Calibra on Requirements of Forward Facing Cameras”



“Typical Calibra on Requirements of 360° Camera View”



“Typical Calibra on Requirements for Forward Radar Sensors”

Excerpts sources from: www.RepairerDrivenNews.com

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Why OEMs make techs travel, owners pay for collision repair training Though General Motors recently announced a slate of in-shop courses, many OEMs offering collision repair training demand auto body shop owners send technicians offsite to a dedicated facility — some mes interna onally. That’s inconvenient for the owners — which based on brand reten on data are doing the OEMs a favor by being prepared to deliver proper repairs.

As A&B CARSTAR owner Bre Bailey pointed out in April, losing a produc ve technician temporarily for the days of training can be the “expensive part” to a proprietor — far more painful than paying the tech’s actual travel costs. But logistically and practically, training at the shop itself just doesn’t work, representatives of mainstream and luxury OEMs said during two Society of Collision Repair Specialists “Meet the Trainer” events in April and November. In part, it’s the owners’ own fault.

Tesla’s Kelly Logan said in April at a Repairer Roundtable that he used to travel to shops around the world before Tesla built a dedicated training center in California. Sometimes during in-shop training, “the tech gets pulled away” to put out one fire or another. “Things are going on. ‘We need to get a car out.’ There’s a lot of distractions,” Logan said.

James Meyer of Toyota agreed during the OEM Collision Repair Technology Summit in November. Toyota Collision Repair & Refinish Training tried in-shop training, but gave it up because it never worked, he said.

Jason Bartanen of I-CAR, which handles training for Jaguar Land Rover, in April said a technician simply wasn’t as focused on learning delivered on their home turf — they’re leaving a er work for a kid’s baseball game, etc. At off-site training, “they’re there the en re me,” he said. “You want to have the technician’s full awareness and for him to take it seriously,” Logan said. Besides distrac ons, a shop just doesn’t have all the necessary equipment on-site to train an en re class, OEM trainers said. Audi’s Shawn Hart, who a ended both events, said in November that Audi doesn’t profit from the offsite training, and “we give them the perfect environment.” Hart describes his class as extremely hands-on, and the Audi center has enough copies of each piece of equipment that everyone can use it. Contrast that with a shop, which might have just one of each item. Logan agreed, no ng that much of the Tesla course is built around a Fronius welder used to repair the OEM’s aluminum vehicles. Trying to have eight to 10 of them at even a regional facility isn’t feasible, he said. Hart also pointed out that he physically would only have been able to go to a certain number of facili es had Audi held classes within a shop itself — “There’s only 52 weeks in a year,” he said.

Cost of training for OEMs, shops One audience member at the November panel wondered if OEMs would subsidize the cost of training for auto body shops given the automaker’s stake in the mutual customer ge ng a good repair. Mike Kukavica of Porsche said his company doesn’t charge for training beyond an ini al fee — which hadn’t changed in the nine years of the training. A er the shop pays the ini al fee, Porsche will train anyone an owner sends there. Rick Miller of Jaguar Land Rover said his company’s fee is used to pay the program’s third-party partner — and that charge actually went down a er 13 years of existence. Jag doesn’t make any money off of training, he said.

Meyer called Toyota’s cost “very reasonable,” poin ng out that there was no way the company’s investment in its training facility was recouped by what it charged shops.

Source: www.RepairerDrivenNews.com

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20 2 01 166-1 17 7 M 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 Treasurer - J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT 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 2017 Planning

Newsle er/Website/Social Media

Casey Brown - Autona on CDJ - Katy, TX

Don Cushing - Bald Hill DCJ – Warwick, RI

Finance Commi ee

Vendor Chairmen

J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT 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 Cutaia - Rick Hendrick DCJR – Charleston, SC 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

OEConnec on/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 J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT 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 J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT Larry Morris - Fred Beans Parts - Doylestown, PA

KIS/Alpine Louis Osuna - Huffines CJD - Lewisville, TX (Chairman) Paul Allred - Stateline CJD – Fort Mill, SC Mike Opperman - Baxter CJD - Omaha, NE Casey Brown - Autona on CDJ - Katy, TX

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