Sept-Oct 2012 MMG Magazine

M a s t e r ’s G u i l d Leaders in the sale of quality Mopar Parts.

Sept - Oct 2012 In This Issue

MMG Members Convene in Kentucky for Chrysler Performance Group Meeting See Pages 8-9

President Steve Hofer................................ 2 Mopar Masters visit Elite Extra........ 3-6 Customer Input Valuable Asset to EXTRA’s Growth...................................... 7 Mopar Masters Meet with UPS.....10-11 SSD Feedback Requested.......................14 MMG Meets with Dealer Tire.......16-17 Our Supporting Vendors..................18-19 OEConnection.....................................20-21 Mopar....................................................22-23 Elite Extra...........................................24-25 Magneti-Marelli.................................26-27 UPS..............................................................28 Reynolds & Reynolds..............................29 FenderBender Press Release..................30 FenderBender/Ratchet&Wrench.........31 ADP.......................................................32-34 Rousseau Automotive..............................35 Race with Magneti-Marelli Extended.36 2 New Mopar Enthusiasts......................37 CT Association Slams State Farm.. 38-39 NABA Speaks Against PartsTrader....39 Congressmen Weigh Patent Protection for Crash Parts....................................40-41 2012 MMG Committee..........................42

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

Mopar Masters Guild

2

Sept-Oct ‘12

Letter from MMG President Welcome again to another issue of the Mopar Masters Guild Magazine. The past few months have seen improvements in car sales and profitability for Chrysler Brand dealers. State fairs have come and gone and kids once again claim street corners each morning as they wait for their buses.

As you read through this issue of the Mopar Masters Guild Magazine, make sure you don’t miss the recaps of the many supporting vendor meetings that have been taking place. As a member that has had the honor of participating in these meetings I can share first hand that they are important to the future products utilized by all dealers.

As fall is upon us please keep in mind that NADA and the guild’s Annual meeting is approaching quickly. This annual meeting is a great time to meet vendors and other guild members and develop relationships. As in the past we have assembled a team that is working hard to make sure the meetings will be memorable for all. A Chrysler super performance group meeting will also be held so you can complete your first segment of training at the same time. Be sure to watch for further information about this event.

Steve Hofer

Mopar Masters Guild

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

3

Mopar Masters visit Elite Extra Headquarters in Eau Claire, WI

By Rick Monteiro, MMG-Elite Extra Committee Chairman The Elite Extra – Mopar Masters Guild Committee meeting in Eau Claire, Wisconsin August 25th-28th, 2012 was inspiring.

From the moment we arrived Saturday evening until our departure Tuesday morning we felt like family. The employees at Elite Extra went above and beyond the call of duty to make sure we had a successful and positive collaboration.

Saturday evening we were greeted at our hotel by Ross Kleiner and his team and began planning our next two days together. Since Ross and his father are tournament bass fishermen they planned a day of small mouth bass fishing on Sunday. They made sure everyone caught fish and took care of everything. Having this father son team as personal private guides made our experience a very successful endeavor.

The early morning fishing expedition on Sunday was followed up with a big steak cookout at the Wildwoods Lodge in the Wisconsin woods that would be our home base until Tuesday morning. Many of Elite Extra employees were able to attend this event making this a very nice mixer before our meetings the next days events. Steve Hofer can sure cook a mean rib eye steak.

Our meetings began first thing Monday morning at Elite Extra’s headquarters. Upon our arrival we were greeted by Applied Data Consultants, Inc. (ADC) President Jim Ward. ADC is the parent company of Elite Extra. This was our first chance to see Jim on this trip since he had just returned from a three day, 37 mile canoeing trip with his boys in upper Wisconsin.

After introductions and a facility tour we got down to business discussing background technology, eCommerce, courtesy/ shuttle driver routing and tracking, and ADP delivery management integration. Our morning concluded with travel back to the lodge for a working lunch and continuation of the meeting. The lodge is equipped perfectly for this type of use, with large conference tables and plenty of seating for our group size.

During lunch we continued our discussion on Geocoding, Signature capture, Manifest printing and future enhancements.

At 5:30 it was time to shift gears again as our lodge was hosting the employees and spouses of Elite Extra for a meet and greet/employee appreciation dinner. During the transition your MMG team including Joe McBeth, Ken Kokoszka, Steve Hofer and myself participated in videotaped customer testimonial interviews. There’s a reason why they filmed us in Wisconsin and not in Hollywood.

It was great to meet all the behind the scenes staff that make the Elite Extra Real Time Driver Tracking Tool in this comfortable environment. Jim Ward took this opportunity to recognize his employees for the success of the company and the Mopar Masters Guild for their contributions. The Elite Extra employees are very proud of their work and it was fantastic for me to address the group, telling them firsthand how important this product is to our wholesale operations.

After our introduction to genuine Wisconsin cheese curds we enjoyed another great dinner consisting of roasted pork tenderloin and BBQ chicken. We were entertained with stories of Jim’s canoeing trip. His accounts of the group’s successes including landing a 48” Pike, sighting a Bald Eagle take a large trout out of the river in front of them and spotting a Fisher Cat which screams like a child, breeds at one year of age, and eat porcupines (not fish)! After hearing these stories I was thinking it was about time to head back to California…. and plan my next trip back to Wisconsin.

The MMG wants to thank the Elite Extra employees for making this meeting not only a resounding success but for making us feel like family. I have included an article on the next page authored by our fishing guide and Elite Extra’s Business Development Manager Ross Kleiner. Ross does a great job capturing this event and telling the rest of the story.

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

4

Sept-Oct ‘12

MOPAR Masters Guild Committee Visit at Elite EXTRA: The Value of Customers Coming Together August 27, 2012 By: Ross Kleiner, Business Development Manager Recently, Elite EXTRA had the honor of hosting a selected committee of four MOPAR Masters Guild (MMG) members for an annual meeting and update of our collective industries. Since this is EXTRA’s first full year as a MOPAR Masters Guild top tier vendor, this was the first of these meetings and we honestly didn’t know what to expect. The four attending members; Steve Hofer of Park Chrylser Jeep Dodge in Burnsville, MN (MMG President), Rick Monteiro of Jack Powell Chrysler Jeep Dodge in Escondido, CA (Committee Chair), Ken Kokoszka of Christopher’s Dodge World of Golden, CO, and Joe McBeth of Dallas Dodge in Dallas, TX, are all current Elite EXTRA Users and valued customers, so we certainly wanted to impress them with our hospitality, facilities and operations.

(L-R) Matt Porter, Jon Ward, Ross Kleiner, Lori Liddell, Rick Monteiro, Joe McBeth, Steve Hofer, Ken Kokoszka, Todd Wascher, Jim Ward

As current users of EXTRA, the Committee was certainly familiar with our system and how it currently operates.

So it was decided that the focus of our talks would be on Elite EXTRA’s continuous strive for excellence and our plans for future enhancements and updates. And what we received from the Committee in return was an unexpected outpouring of knowledge and consideration toward enriching EXTRA’s product and success.

Continued on Page 5

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

5

Continued from Page 4 The value of having customers with a knowledge base like this in our board room was made known right away as we started to examine a long list of prospective enhancements and updates planned to the burgeoning EXTRA software as a service by the end of 2012 and into 2013. The MMG members quickly identified the processes that would not only suit their auto parts wholesale and delivery model back home, but would enhance the routing and tracking process for users nationwide in both the wholesale and aftermarket side of the business. This, in turn, helped us at EXTRA prioritize our list of updates by moving the features more pertinent to the success of our Users toward the top of this list.

On top of assessing the value of each individual plan for EXTRA’s future, this meeting which now took a turn to a more ‘think tank’ setting, began to spawn brand new ideas for EXTRA Features in which the EXTRA Team had not even conceptualized yet. Ideas for features that we could only receive from people who know and understand the Fixed Ops business along with having an idea of how our technology should work to improve efficiencies while gaining ROI were brought to the table. These new ideas will not only enhance the value of Elite EXTRA to its users, but also maximize its usage for not only Dispatchers and Drivers, but Mangers, Salespeople, Wholesalers, Customer Service Representatives, and so on.

When reflecting on our meetings this week with the MMG Committee, I should have only expected these kinds of outcomes from a group like this. Three years ago Elite EXTRA was built on the knowledge of potential users who were looking to implement a software as a service to increase efficiencies and ROI through optimization, routing and tracking. Since then EXTRA has become the standard in automotive parts delivery routing and tracking while moving into several other markets. But what is more important are the users and groups like MMG who’s knowledge and willingness to share further solidifies EXTRA’s success in continuing to be the best high-tech, low-cost solution out there. And EXTRA believes that no one knows how our solution should run better than our customers.

Ross Kleiner, Steve Hofer and Matt Porter

Brandon Thatcher, Todd Wascher and Ken Kokoszka getting ready for water skiing.

More pictures on Page 6

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

6

Sept-Oct ‘12

Joe McBeth caught the biggest one

Rick Monteiro’s first Small Mouth Bass ever!

Ken Kokoszka giving a serious testimonial under the lights!

Steve Hofer cooking up the awesome steaks!

Ross Kleiner setting the table!

Lori Liddell presented the steaks.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

7

Customer Input Valuable Asset to EXTRA’s Growth September 10, 2012 By: Jim Ward Customer input continues to be a valuable asset to EXTRA’s Growth.

That was evidenced at a recent visit to our Eau Claire, Wis. headquarters by Mopar Masters Guild (MMG) members in August. Their visit was due to Elite Extra being a Tier One vendor, and it’s the guild’s policy to visit vendors annually to meet and brainstorm about new ideas.

Along with great camaraderie from four of these leaders in the automotive industry, all of whom are valued EXTRA customers, we learned how EXTRA is making their operations more efficient, while also discovering how it can be enhanced to have an even greater impact.

For example, Rick Montiero of Jack Powell Chrysler Jeep Dodge in Escondido, Calif. said EXTRA has reduced his operating expenses by 30 percent and he discovered at our brainstorming session that he wasn’t even using it to full capacity.

Steve Hofer of Park Chrysler Jeep in Burnsville, Minn., said using the newly enhanced signature capture add-on for EXTRA will save him $20/day in reduced paper costs alone. For his operations, this will mean $5,000 annually. And as more companies are being called on by their customers to be green, the combined reduction of fuel and paper use gives clients the ability to tout their environmentally-friendly business practices.

From the entire EXTRA team, I want to thank the MMG for the great input and feedback they provided during their visit. We look forward to a long partnership!

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

8

Sept-Oct ‘12

Mopar Masters Performance Group Louisville, KY August 23-24, 2012 Mark Beaton and Jen Short of Chrysler Academy served as moderators and instructors for our fall meeting of the Mopar Masters (both Parts and Service Managers). As a reminder we began this format of a second Mopar Masters meeting in conjunction with a fall performance group training of service and parts managers a few years back. We have committed to keeping this meeting primarily focused on growing our retail customer pay service business. This format has proven to be successful and also allows us to stay in touch more frequently, which is important during these fast changing times. We were very pleased to have several service managers in attendance and all of them contributed greatly. Our Service Manager attendance continues to rise, as the word spreads. We encourage all our members to start planning now for next fall and encourage your service managers to attend as well. It would be great to have an equal number of parts and service managers in 2013!

Mark and Jen did an excellent job of keeping our meeting on track and allowed us to accomplish a lot in a short time. We spent a lot of time discussing the financial review. Mark had us spotlight individual and specific data and then discuss how these numbers were generated. It was a very informative and interesting way to address the nuts and bolts of our business. It’s always all about the numbers! We also had a big majority of the group present their useful ideas. This is always a highlight of our fall meetings and just one idea implemented in your dealership generally pays for the trip many times over. This year I’ve already got two things working that I personally picked up! The knowledge and experience and “big-thinking” of this group will never cease to impress me. You’ve got to come and attend to get the full benefit!

We were also very fortunate to have some invited guests at this meeting who were able to share valuable information with those in attendance (Again, you’ve got to attend in order to get the full benefit of this advanced information!).

Doug Johnson, Director of OEM Development from Katzkin Leather provided some facts, product information and shared some good ideas of ways to increase sales with this popular Mopar accessory. Bonnie Hedeen (Mopar Customer Process Governance) and Lillian Leica (Direct Dealer Delivery Program Manager, Mopar Logistics) from Mopar gave presentations regarding initiatives they are working on. Some of the issues discussed: • Package changes (already implemented and those in the future) • Returns scorecard (just made active on Dealer Connect) Continued on Page 9

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

9

Continued from Page 8 • Supplier Ship Direct changes coming. Lillian has asked that we give her detailed feedback of what needs to be changed in this program. Funds have been allocated to make changes and she realizes she has one shot to get this right. Please communicate directly to Lillian at: LL774@chrysler.com We also added a new twist to our meeting this year and planned it in conjunction with a Vendor Committee meeting with UPS. Look for this to be a continuing theme as it appeared to be a big success. Tim Quinnette and Gary Meyers from UPS spent some time talking to the group about current joint initiatives with Mopar and expressing a desire to be a partner with us and Mopar on future initiatives. We continue to be proud of our association with a company of the history, quality and corporate integrity of UPS! We all met up late Thursday night and spent an awesome few hours touring one of the most amazing displays of organization in the world at UPS Worldport. Words can’t describe the size, scope and planning that has gone into that facility.

A lucky few (random drawing) were even given a rare opportunity to “Fly” the same flight simulator used by UPS pilots for training. (See our UPS Article on Pages 10-11 in this issue!)

Friday evening we were invited to a cookout at Rick and Kathy Stewart’s beautiful home just north of Louisville.

We spent a few hours enjoying time with the Stewart’s, their family and some of Rick’s employees. It was a great time and everyone in attendance was impressed with the food, fellowship and with the generosity of Rick and Kathy. Thanks Rick and Kathy for hosting this great cookout and putting such a pleasant ending to a great training and meeting!

Submitted by Marvin Windham Benchmark CJD

(L-R) Moderator Mark Beaton with the three “Best Idea” winners: Steve Hofer (2nd Place), Marvin Windham (1st Place) and Tom Adams (3rd Place)

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

10

Sept-Oct ‘12

Mopar Masters Meet with UPS Members Given UPS Worldport Tour Now, don’t get the wrong idea. The Mopar Masters had a great 2 day meeting with some excellent “Best Ideas”, many fantastic discussions regarding the issues we are facing on a daily basis.

During our first day of meetings our friend Tim Quinnette from UPS came in to talk with the representatives from the SSD program. Chrysler is revamping the SSD program in the first and second quarter of 2013 and UPS is working with the team to make major improvements.

At the end of their presentation Tim drew 5 attendee names out of a container and those drawn were going to get to go in a Flight Simulator at the UPS Worldport prior to the rest of our group getting a tour of this amazing facility.

I was not fortunate to be one of the chosen and neither was Rick Cutaia. We took a short break and I heard a member sitting next to Rick saying, “I don’t want to go – are you interested Rick?” Of course Rick jumped at the chance and I started giving him grief about being in the right place at the right time.

The chosen ones, as I will call them, were all to leave at 9:30PM in front of the hotel. As Rick, Mark Skinner, Andy Reed, Ken Kokoszka and I were walking back from having dinner we found out that one of our members was a no show. To make a long story short Andy and I (After many attempts to get it right and entertaining the crowd) did a one time winner goes game of Ro Sham Bo. Remember rock always beats scissors. Thanks Andy.

Our trainer was a great guy with lots of patience, thank goodness because he needed it with our group. We all were able to navigate the take-off and landing process (some of us better than others). We landed in Las Vegas and were able to see the Bellagio fountains and did a fly-by of the Statue of Liberty. I do believe that we Continued on Page 11

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

11

Continued from Page 10 came a little too close and may have clipped her arm off. I will attribute that to the “new guy� from Baxter CJD, Mike Opperman. His first Mopar Masters meeting will be memorable one for him.

Our tour started out with a presentation about the growth of UPS and their air shipments going in and out of the Louisville Worldport. Looking at a map of the area the Worldport sits next to and makes the Louisville airport look like a small city air facility.

Worldport is the largest fully automated package handling facility in the world. The operation currently turns over 130 aircraft daily, processing an average of 1.6 million packages a day with a record 3.6 million packages processed on Peak Day 2011.

Their operation spans 5.2 million square feet. That is equal to 90 football fields. They are able to sort 350,000 to 416,000 packages per hour. With 70 aircraft docks, 33,245 conveyors with 155 miles of conveyor belt this facility is truly an engineering wonder of the world. It is one of those things in life that you must see to believe.

We want to thank Tim Quinnette and all of his associates for sharing their knowledge and giving all of us the tremendous experience of seeing the UPS Worldport.

Submitted by Dan Murphy - Chapman DCJ

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

12

Sept-Oct ‘12

UPS WorldportSM Overview Worldport is the largest fully automated package handling facility in the world. The operation currently turns over 130 aircraft daily, processing an average of 1.6 million packages a day with a record 3.6 million packages processed on Peak Day 2011.

Worldport history Beginning in 1999, UPS undertook the largest capital project in the company’s history with the $1 billion expansion of its sort facility at Louisville International Airport. The expansion more than doubled the size of the air hub and increased sort capacity from 215,000 packages per hour to 304,000. Dubbed Worldport upon its 2002 completion, the facility initially grew from about 2 million square feet to 4 million.

By 2006, UPS needed to again expand Worldport. In a two-phase project, the company expanded its all-points air hub by 37 percent to 416,000 packages per hour. The second expansion was completed in April 2010, with the mammoth facility now measuring 5.2 million square feet, with a perimeter of 7.2 miles.

Looking to future possibilities, the facility’s design allows for further expansion to process up to a half million packages per hour.

Timeline September 1982 April 1999 September 2000

UPS Next Day Air® service initiated Expansion of Louisville air hub begins, driven by strong growth in international and domestic express business; the project is dubbed Hub 2000.

The first of three phases of the expansion opens, increasing sort capacity by 30,000 packages per hour. New automated processes and education programs help to lower employee turnover and retraining costs while increasing overall productivity.

July 2001

Second phase opens, adding another 30,000 packages per hour to the facility’s sort capacity.

September 2002

The third and final phase opens, increasing sort capacity by 29,000 packages per hour.

May 2006

UPS announces plans for a new expansion that will increase Worldport’s sort capacity by 37 percent – to 416,000 packages per hour. Phases 1 and 2 of the expansion are scheduled for completion by May 2010.

July 2009

UPS opens the first phase of the expansion project, increasing sort capacity to 350,000 packages per hour.

April 2010

UPS completes Worldport expansion, increasing sort capacity to 416,000 packages per hour.

Worldport Features • High-speed conveyors and “smart labels” read by overhead cameras facilitate the processing of documents, small packages and irregular-sized shipments.

• Automated equipment and overall process improvements reduce the amount of time employees spend lifting and lowering packages while reducing the average package cycle-sorting span.

Continued on Page 13

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

13

Continued from Page 12 • Newly developed IT systems rapidly transmit Customs information to expedite the movement of international shipments.

• Specially designed docks and hub floors let workers move package containers easily from one area of the building to another via more than 1.2 million casters and ball transfer units.

• The new expansion plans included two new aircraft load/unload “wings” and associated aircraft staging ramps.

Additional ramp space accommodates the new 747-400 cargo planes.

• UPS also approved plans to build a new vehicle loading facility for its ground delivery network serving Louisville.

• Like the initial Worldport construction project, UPS exceeded its goal to award at least 20 percent of the latest expansion project’s general construction and site work budget to minority- and women-owned businesses during expansion.

• Metropolitan College will continue to play a major role in helping attract and maintain employees for the expanded hub.

Worldport Hub

First Expansion

Size of Operation: Sort Capacity:

4,000,000 square feet 304,000 packages per hour

5,200,000 square feet (90 football fields) 350,000 packages per hour (Phase 1)

(expandable to 500,000)

416,000 packages per hour (Phase 2)

Processing Time:

Latest Expansion

Parcel = 8 - 43 min Smalls Sort = 11 - 16 min Incompatibles = 12 - 45 min

Capital Investment: Economic Impact:

$1 billion+

$1 billion $600 million+ in construction costs

Aircraft Docks: Number of Conveyors: Miles of Conveyors: Scan Tunnels: Camera Tunnels: Tilt Tray Sorters: Tilt Trays: Unload Positions: Load Positions:

44 19,000 110 37 299 15 - with 2.1 miles of track 13,592 218 1,100

70 33,245 155 0 546 19- 2.6 miles of track 17,220 325 1,520

For more information, contact: UPS Corporate Public Relations 404-828-7123 Mike Mangeot UPS Airlines Public Relations 502-329-3060

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

14

Sept-Oct ‘12

SSD Feedback Requested Bonnie Hedeen, Mopar Process Governance and Lillian Leica, Direct Dealer Delivery Program Manager, Mopar Logistics are in the process of a complete overhaul of SSD and are asking for feedback from everyone!

Please read the email below with the request and respond with your ideas/concerns.

Good afternoon Mopar Master’s conference attendees!

It was a pleasure meeting the top 20 dealers, and receiving the feedback regarding Mopar processes and procedures. As Bonnie stated, I think this was a great initiation for me into the complex world of service parts.

I look forward to receiving feedback from everyone regarding our current SSD(supplier ship direct) program and what you would like to see in the new, redesigned version of SSD. Please feel free to email me at this email address and I will use that feedback when working on the redesign.

Thank you, Lillian Leica Direct Dealer Delivery Program Manager Mopar Logistics Phone: 586-497-1765 Email: LL774@Chrysler.com

(L-R) Tim Quinnette, UPS Director Glbal Accounts Sales, Bonnie Hedeen, Glenn Hojnacki, Lillian Leica, Paul Allred, Steve Hofer, Gary Meyers, UPS National Accounts Manager with the statue of J.Graham Brown, founder of the Brown Hotel in Louisville, KY.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

15

Testimonials We asked for input, feedback and/or testimonials regarding our recent UPS Worldport Tour. Here are a couple: “The only word that comes to mind when I am asked to share my thoughts on the UPS Worldport Tour is AMAZING! It is absolutely unfathomable to try to comprehend the processes and mechanics, which are involved in this operation. I was very impressed with how much UPS cares about their customers’ experiences and want to hear from customers whether it may be good or bad. This tour was a great experience and opened my eyes to appreciate the effort UPS is supplying in constantly improving the shipping process.”

Jennifer Short Chrysler Performance Group Coordinator Chrysler Academy

“I would like to thank the Mopar Masters & UPS for the opportunity to tour the UPS facility in Louisville, Kentucky. It was truly an eye opening experience.

The first thing that caught my eye was the size of the facility. They told us that the location sat on what was equal to 900 football fields. Once inside the building you noticed that there were four levels of conveyor belts that moved the freight from one location to another and that if laid end to end the conveyor belts would reach over 130,000 miles in length. The fact that the freight was only handled by human hands twice during the entire process was amazing. Technology at its finest.”

Michael Tognarelli Parts Manager Hickley DCJ

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

16

Sept-Oct ‘12

Mopar Masters Meet with Dealer Tire The Mopar Master’s Guild Dealer Tire committee met in Cleveland at their national headquarters on Monday 24th, 2012.Representing the guild was Susan McDaniel, Tom Kellogg and Paul Allred the committee chairperson.

We started with a tour of their multi-floor facility that headquarters over 700 employees. The meeting then kicked off in one of their conference rooms and we were privileged to have Dean Mueller the president of Dealer Tire with us. Cindy Stull and Roger Ferguson which are managing partners with Dealer Tire were also in attendance. Bill Decker the Director of Program Management, David Jordanger Senior Director of Sales, John Bellissimo Director of Sales, and Jim Kutscher General Manager led an open forum of discussion.

We began the meeting by bringing them up to speed to the “All Makes” initiative utilizing Magneti Marelli from Mopar. We explained the challenges at the dealer level where the current Road Hazard plan does not apply to other brand vehicle tire fitments not being inclusive as OEM/OEA/WIN on the Mopar Tire Works program. We also discussed adding a notification flag in DRSG to flag all of the SEC (secondary equipment) tires that are not eligible for Road Hazard. They understood the issues and took on action items to investigate solutions to overcome the issues. Hopefully we will see Road Hazard applicable to all makes in the near future.

I had posted a Forum Topic on the Master’s Guild website forum early in September asking for feedback to take to the meeting.

We had several concerns about availability especially where there is not a major tire warehouse or one of the new minor warehouses that doesn’t have the coverage as a major warehouse. The response and discussion centered on some of the things they are working on as well as the guild helping the cause. First they are looking in some markets to set up dealers that have the resources to become a third party distributor. If you think you may be interested you should contact James Kutscher (General Manager for Mopar Tireworks) at jkutscher@dealertire.com to gain more information. To assist them with expanding stock at the existing mini and major warehouses I volunteered the guild membership to send a tire sales report to Bill Decker at bdecker@dealertire.com on a monthly basis. I will post on the website and email the document in the format that they put together to allow them to combine the data with ease. It will just consist of size, quantity and price paid for each.

We discussed the DOT data capture issue of having to document it on the repair order plus also having to record it on the DRSG site to comply with Federal requirements. This a very manual time consuming process for the dealer. They committed to look into the legality and road hazard company’s acceptance on being able to combine these two separate tasks into one.

The time it takes to process returns and tire claims were brought up. We learned that the Carline Services group headed up by Tim Stemen administers these tasks. They have to manually process these daily and then the warehouse has 7 days to pick them. The request from us was for them to work on a process to shorten the time with this process. Maybe they can use technology to close this gap.

When you submit a tire claim online you must still pick up the phone and call them to make sure they know it is out there. They currently don’t get a notification. This can result in a delay with the claim getting processed.

If you need help completing the form, the Carline Services group can help. Just call the Mopar Tireworks number.

Continued on Page 17

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

17

Continued from Page 17 I suggested again that they look at giving the dealer the ability to matrix tire prices based off cost. They have heard this many times before. They understand it needs to happen but are trying to decide to proceed internally within DRSG or to integrate and pull your price from your DMS. As the day progressed it was pretty evident to me that we have communication issues at the dealer level.

There are features and benefits that I just didn’t understand. With that said I committed to add the following to the article Did you know?

• In the administration tools on DRSG you can set the tool up on your dealership website. This will allow customers to shop for tires on line, generate a lead to the dealer, as well as set up an appointment for installation.

• You can set up a subscription for parts and service advisors to receive a monthly e-bulletin newsletter that includes selling tips, product and promotional information.

• There is a list of custom POS material that includes digital images that can be ordered. These may work with the new Service Flex Tool screens. Use the form on the website to review and order.

• In conjunction with the Road Hazard program they have a “REMA” (tire repair kit) that includes a poster of a step by step process to properly repair a flat.* note this kit is not currently in the catalog but can be ordered and redeemed with your promo points.

• If you are on ADP you can sign up for a process where they will access your DMS box and pull real time on hand inventory data into DRSG. • They are piloting Saturday delivery in Dallas and Boston to determine if there is enough business to sustain a business case to expand this service offering nationally.

• They have developed and are piloting an on line tire ordering tool that will drive the consumer to the closest participating dealer geographically called “Right Turn”. This is being piloted in Dallas. They are promoting the tool with TV commercials that we viewed that promotes the concept of buying the “Right” tire for your vehicle and beware of the “Hidden Fees”. My plans are to add that tag line into my current tire marketing.

We had a very informative meeting. I think we all learned a lot. I have committed to be the conduit to help eliminate the communication issues on dealer side utilizing the Mopar Masters Guild website, the Mopar Masters Guild Magazine and the throughout all of our meetings. We will also make sure that we are heard

by Mopar in helping them understand the needs and challenges by the dealer. We are fortunate to have a business partner as we have with Dealer Tire. Working together we can accomplish our mutual goals.

Submitted by: Paul Allred Dealer Tire Committee Chairman

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

Our Supporting Vendors: Support those who support you.

18

Sept-Oct ‘12

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

19

Our Supporting Vendors: Support those who support you.

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

20

Sept-Oct ‘12

What’s the Difference Between Dealer A and Dealer B? Dealer B has RepairLink with MORE! Inventory Lookups

450 400 350 300 250 200 150 100 50 0

Dealers using RepairLink with MORE average 450 inventory lookups each month.

Your staff can only eld so many calls per day, but you can be online 24 hours a day.

Increase your dealership’s visibility with RepairLink with MORE. Not enrolled yet? Call 1-888-776-5792 to talk to a sales representative.

Enrolled in RepairLink with MORE and want to know what shops are looking up your dealership’s parts information? Give us a call at 1-866-401-4610.

RepairLink with MORE: The OEM Mechanical Replacement Parts e-Commerce Solution of Choice.

View our webinar recording: Marketing to Shops and Overcoming Objections

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

21

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

22

Sept-Oct ‘12

NEW! MOPAR BULK WIPER BLADES! ®

10-Packs – Developed to support quick service and wholesale opportunities. Covers 95% of competitive make vehicles!

Mopar just made it quicker and easier for you to change a wiper blade with Mopar Bulk Wiper Blade packages.

All packages come with ten (10) wiper blades, so you are sure to have the wiper blade you need when you want it. ®

MOPAR CONVENTIONAL WIPER BLADES (VALUE LINE) • Traditional Mopar quality at a competitive price • Natural rubber blades are treated with a UV coating to increase wipe quality, reduce noise and protect from damaging ultraviolet light rays • Tested and approved by Chrysler Engineering ®

MOPAR BEAM WIPER BLADES

AUTHENTIC PERFORMANCE

• Superior All-Weather Performance • Skin coating seals the aerodynamic spoiler to protect it from the elements for superior all-weather performance • With no exposed parts, Mopar Beam Blades resist snow and ice clogging for excellent performance in winter conditions • Outperforms traditional blades in snow and ice wipe test

AERODYNAMIC PROFILE • Spoiler reduces wind lift at higher speeds • Provides quiet operation with less chatter • Sleek modern styling complements any Chrysler, Jeep , Dodge or Ram vehicle ®

EASY INSTALLATION • Features a pre-assembled connector to fit the most popular wiper arm types right out of the package

Conventional Blades are $45 per pack of ten (10) and Beam Blades are $95 per pack of ten (10).

Reference your Mopar Wiper Blade Application Guide for part numbers. However, please be sure to add a BA at the end for bulk packaging when placing the order. For example, the 2009-2007 Aspen (Driver Side) Conventional Blade part number for a bulk order would be WB000026BA.

Visit DealerCONNECT to place your order and start enjoying the convenience of Mopar Bulk Wiper Blades today.

17285 0812 © 2012 Chrysler Group LLC. All Rights Reserved. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC. Printed in U.S.A.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

23

MOPAR FLEXTECH PROGRAM: SUPERCHARGE YOUR BUSINESS.

Dealers in the know are talking about the two latest and greatest ways to shift profitability into high gear. First up: the dynamic, modular displays of the Mopar FlexTech Retail Dealership Program, designed and built around every possible reason customers shop. Plus, every display adds an instant “updated” look to any showroom, service or waiting area. Further boost these benefits with the Mopar Service Media Center (SMC). It’s an integrated, digital menu board which can simultaneously display information and play videos, commercials and more. And content such as pricing can be changed digitally – no matter where you are – in seconds. Best of all, both programs give a dealership the power to inspire and educate, while leveraging the proven performance and heritage of the Mopar brand.

TO ORDER BY PHONE OR ONLINE: 866-776-7906 WWW.DEALERS-MOPAR.COM The exchange of information by like sized dealers in a non-competitive environment.

24

Sept-Oct ‘12

A better way to deliver your parts.

Elite EXtRatm (Extreme Tracking and Routing Application) is an online, real-time tool that streamlines your deliveries, while lowering your operational costs.

EXTRA automatically creates optimal routes on a web-based interactive map, increasing productivity for your dispatchers and drivers, while also reducing vehicle and fuel expenses.

What can EXTRA do for you? ► increase revenue ► Increase profitability ► Improve customer relationships ► control driver and fuel costs ► Go green with less fuel and paper

Benefits of EXTRA SavingS • • •

15% increase in driver and dispatcher efficiencies 5% average fuel savings Less paper needed

Simplicity • • •

Routes displayed on web-enabled cell phones Integrates with other automotive industry apps Easy to install; upgrades done via web

SatiSfaction

Eau claiRE ChARLoTTEsvILLE | DEnvER | MILwAukEE | oMAhA | sAn FRAnCIsCo

2985 58th street | Eau Claire, wI 54703 | 715.874.2985

1.888.484.8729

w w w. e l i te ex tra.com

Mopar Masters Guild Magazine

• • •

Real-time ETAs for customers Driver accountability Fewer phone calls between all parties

Leaders in the Sale of Quality Mopar Parts

25

An investment with a proven return.

Elite EXTRATM is an investment that has a proven return. We’ve crunched the numbers using data from several clients and on average, most of our existing clients realized their return on investment (ROI) within the first THREE MONTHS of using it.

How do we do it?

The EXTRA routing and tracking system transforms antiquated paper-based and phone call-dependent processes into automated and integrated traffic control centers, increasing productivity for your dispatchers and drivers, while also reducing vehicle and fuel expenses.

Look for us at NADA 2013 in Orlando!

Setting the standard for the delivery of automotive parts. ...EXTRA didn’t create revenue, it cut expenses, mainly human and fuel resources. Today I’m doing more volume with only a marginal increase in expense. Without EXTRA I can’t imagine spending my way into more return. We are earning more revenue because we are better, faster and different.

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

We enjoyed the MMG visit to Eau Claire, Wis. in August.

EAu ClAiRE ChARlOTTEsvIllE | DEnvER | MIlwAukEE | OMAhA | sAn FRAnCIsCO

2985 58th street | Eau Claire, wI 54703 | 715.874.2985

1.888.484.8729

w w w. el i teex t ra . co m The exchange of information by like sized dealers in a non-competitive environment.

26

Sept-Oct ‘12

. s l e d o ll M

A . . e s u l e a V k l a a n ll M ptio

A lity Parts. Excet.

Qua te Suppor e l p m Co

• Full Line Of Maintenance & Repair Parts For All Makes & Models • Over 30 Product Lines • Available At Participating Chrysler, Jeep , Dodge and Ram Dealerships, and FIAT Studios ®

®

Mopar Masters Guild Magazine

The Right Choice In Parts

Leaders in the Sale of Quality Mopar Parts

27

AUTHENTIC PERFORMANCE

www.magnetimarelli-aftermarket.us facebook.com/magnetimarelli.aftermarketnafta

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

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

28

Sept-Oct ‘12

Copyright © 2012 United Parcel Service of America, Inc.

3 WAYS LOGISTICS DRIVES DEALER PERFORMANCE Options are vital in the auto industry, especially when shipping.

Important papers, parts or pallets may be needed to seal a deal or a gasket. UPS delivers the high-performance package to do it all.

1) Match Speed to need Contracts

2) expand your day Business doesn’t

3) Be More efficient Using UPS to

need next-day delivery, while parts can

always keep business hours. UPS is

ship documents, packages, LTL or inter-

arrive in a day or two. Either way, our

ready when you are. Later pickups, on-

national freight simplifies what’s coming

options help you meet commitments

call service and more access points than

and going. You can help customers

as well as budgets. And your custom-

any other delivery company — including

better plan their days with proactive

ers can get an early start because we

customer centers, retail locations and

status updates, and streamline your

deliver by 8:00 and 10:30 a.m. to more

over 40,000 drop boxes — keep you

own operations with our end-to-end

ZIP Codes than anyone.

working on your own schedule, not ours.

online tracking systems.

Stop by and discuss all of the options upS has to offer at a chrysler Marketcenter conference near you:

September 19 — Uncasville, CT October 11 — Orlando, FL October 28 — Las Vegas, NV For more information, contact UPS at 800-567-9989 or visit the Chrysler MarketCenter site within DealerConnect.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

29

or Keep Your Parts Inventory Accurate It’s the season where parts departments begin the grueling task of performing their physical inventory. But have you considered how you can continue to keep your parts inventory accurate throughout the year? Here are a few tips that can help: CONDUCT PERPETUAL INVENTORIES

MONITOR PARTS IN YOUR SPECIAL ORDER BINS

Perpetual inventories give you a much better chance to identify discrepancies, enabling you to correct them as you find them and minimize variances during the 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 utilizing Reynolds Parts Barcoding Scanners to speed up the process and increase accuracy.

CLEAR DIRTY CORE INVENTORY

Identify special-ordered parts that have not been picked up within 15 days of being received and re-notify the customer or service advisor. 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 of unnecessary parts and minimize obsolescense.

Maintaining an accurate record of customer-returned cores and promptly returning them to the supplier is important because it assures 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 your next annual physical inventory audit less stressful.

© 2012 The Reynolds and Reynolds Company. All rights reserved. 9/12

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

30

Sept-Oct ‘12

FOR IMMEDIATE RELEASE Contact: Chris Messer, Publisher FenderBender magazine Tel.: 651-224-6207 ext. 14 cmesser@10missions.com FenderBender Live Brings Comprehensive Event Coverage to Collision Industry PPG-sponsored coverage of NACE and SEMA includes videos, news stories and photo galleries.

ST. PAUL, MINN., Aug. 1, 2012 — In response to tremendous support for FenderBender Live’s coverage of NACE and SEMA in 2011, FenderBenderLive.com will once again be the media portal for the collision repair industry’s biggest events.

The site is scheduled to go live Oct. 10 in coordination with the first day of NACE, and will feature exclusive coverage through video interviews with celebrities, industry professionals, event staff and exhibitors, in addition to comprehensive event news and captivating photo galleries.

Content will be updated throughout each day of the events and recap emails will be sent to subscribers of FenderBender’s daily newsletter.

(Subscribe at fenderbender.com/FenderBender/Newsletters.)

“FenderBenderLive.com brings the best collision-related content from NACE and SEMA straight to the industry during each day of the events,” said Jake Weyer, editor of FenderBender magazine. “We had a tremendous response to more than 60 videos, hundreds of photos and countless news stories posted during last year’s shows. We expect to deliver an even better event experience this year.”

FenderBender Live’s 2012 coverage is sponsored exclusively by PPG. “After a successful venture in 2011, PPG is thrilled to once again be the exclusive sponsor of FenderBenderLive.com in 2012,” said Randy Cremeans, PPG product marketing director. “FenderBenderLive.com is a critical channel for those that can’t make it to the events to stay on top of all the happenings, ensuring they stay up to speed with the collision industry’s biggest events.”

NACE, the International Autobody Congress & Exposition, is scheduled for Oct. 10–13 in New Orleans. SEMA Show is set for Oct. 30–Nov. 2 in Las Vegas.

FenderBender magazine is the nation’s leading collision repair magazine, serving nearly 50,000 collision repair centers nationwide with its monthly print publication. Through its print and online offerings, FenderBender provides its readers with strategies and inspiration for collision repair success. Visit fenderbender.com for more information.

###

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

31

grow your wholesale mechanical Business

Find out how we can personalize your marketing message to help grow your wholesale parts business:

Contact Chris Messer, Publisher e

651.224.6207 ext. 14 cmesser@10missions.com

Proud supporter of the Mopar Masters Guild. Š 2012. All Rights Reserved

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

32

Sept-Oct ‘12

Solution Overview

The Document Solution that Assists Dealers with their Compliance Efforts When it comes to revenue potential, most dealers will agree that the Service department ranks near the top. When it comes to reviewing dealership paperwork and procedures though, the Service and Parts departments are often one of the last to hit the radar.

The DealerCAP program covers forms used in your Service & Parts departments. Repair Orders, Repair Invoice and Parts Invoice overlays have been updated to meet today’s business needs.

DealerCAP also offers Limited Warranty Backers, After Hours Repair Authorization Envelopes, Pre-Write Forms to help your dealership reduce those common paperwork errors, and streamline your service processes and increase customer satisfaction.

Choose from the following DealerCAP Service & Parts forms:  Service Invoice  Parts Invoice  Repair Work Order  After Hours Repair Authorization/Night Drop  Pre-write Form  Goodwill Repair Authorization  Backers

DealerCAP® is a complete document system that can assist your dealership in reducing common paperwork errors, streamlining your sales process and increasing customer satisfaction. While no paperwork system is a substitute for sound legal advise, DealerCAP forms help your dealership prevent some paperwork errors commonly found in a motor vehicle transaction.

DealerCAP does not substitute for legal advice, nor does the use of DealerCAP guarantee that legal challenges or issues will not occur. No Warranty is made as to the compliance of DealerCAP forms. It is essential that you seek independent legal advice with respect to the legal compliance of your dealership forms. DOX and ADP are registered trademarks of ADP, Inc.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

33

Solution Overview

Now is the Time to Review your Service & Parts Paperwork – Make Sure you Have the Right Forms Repair/Service Work Order  Allows Dealership to record additional repairs that are needed and customer’s consent to proceed  Explains shop supply and hazardous materials charges  Includes signature line to verify customer received estimates and authorized repairs  Comprehensive warranty statement explains what items are covered by the Dealership, the duration of the warranty and what the customer must do to submit a claim for warranty repairs

Generic Limited Warranty Service Backer  Use the Limited Warranty Service Backer with your Repair Orders, Repair & Parts Invoices. Offered with Labor – 1 UP , 2 Up, and Parts & Labor – 1UP, 2 UP

Repair/Service Invoice  Documents final costs for authorized parts and labor  Includes Warranty Statement and/or Disclaimer and other pertinent disclosures that are consistent with After Hours Repair Authorization and the Repair Order

Parts Invoice  Disclaimer clearly states Dealership does not warrant parts that were not installed by the Dealership  Notifies customers of return policies and restocking fees

For More Information, call Laser Imaging at 800.786.4416 Or email DOXInfo@adp.com

DealerCAP does not substitute for legal advice, nor does the use of DealerCAP guarantee that legal challenges or issues will not occur. No Warranty is made as to the compliance of DealerCAP forms. It is essential that you seek independent legal advice with respect to the legal compliance of your dealership forms. DOX and ADP are registered trademarks of ADP, Inc.

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

34

Sept-Oct ‘12

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

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

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

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

Inspect – (Includes Appointments & Lane) Automates the entire inspection, approval, and Parts procurement process. Parts and labor integration, powered by Mitchell®, combined with a state-of-the-art direct DMS interface, packs a powerful 1, 2, 3 punch.

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

ADP Dealer Services, Inc. / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 © 2012 ADP Dealer Services, Inc. / ADP is a registered trademark of ADP, Inc.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

35

Your Quality Solution • Durability • Quality • Flexibility

Organization

Service & Parts Storage Equipment

" The freedom to choose your own solution. " Overview of Rousseau’s products

1.866.463.4270 info@rousseaumetal.com

rousseau-automotive.com

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

36

Sept-Oct ‘12

THE RACE WITH MAGNETI MARELLI HAS BEEN EXTENDED! Program Ends on December 31, 2012.

Great news, The Race with Magneti Marelli incentive program has been extended until the end of the year!

This means you have plenty of time for participants to hit the gas and distance themselves from the competition.

The rules are simple. Every time an enrolled Parts or Service Manager sells $7500 worth of Magneti Marelli Offered by Mopar All Makes Parts, they earn a “prize draw.” Prize draws will be redeemed at special Magneti Marelli Days within each Business Center region early next year. Prizes include great travel and merchandise including flat screen TVs, cameras, Las Vegas Getaways, NHRA Race Trips, iPads, power tools, Italian gift specialties, gift cards and a Grand Prize Trip for two to Italy! The Top performers in each Business Center region will automatically win the Grand Prize Trip to Italy.

In addition, each month, top performers earn a chance to win in a spin to win racing game where they can win gift cards, power tools and marketing materials to help them promote the all makes program at their dealership/studio.

Just imagine yourself standing in front of the Roman Colosseum, exploring the Vatican, walking the Spanish steps and learning the art of wine-making. From Rome to Florence to Modena and more—this promises to be an amazing journey in a spectacular country. And, you can be there, if you are a winner of the Race with Magneti Marelli.

For more information on the Race with Magneti Marelli incentive program, log in to the website at racewithmagnetimarelli.com or call Program Headquarters at 1-877-404-4293.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

37

2 New, True Blue (and Young) Mopar Enthusiasts in the Making!

Recently, a very good friend of mine, Chris Sheehy, President of Sidewalk Branding Co. shared a story with me about a friend of his son Zachary (his friends call him “Z”). You see, Zachary and his dad were at one of our Bald Hill DCJ events and Z won a Mopar hat when he landed on the right number of the Raffle Wheel. Zachary has been wearing his Mopar hat all the time and with pride! It seems Zachary’s friend Justin really liked the hat. So much so that he wrote Zach’s dad two hand written letters trying to get a Mopar hat. Unfortunately, even after using all my technology, I have not been able to copy those letters for this article. I will however reprint the words that Justin used in an effort to get his own Mopar hat (including all of his grammar and spelling!): Letter #1 Dear Mr. Sheehy!

I really want a Mopar hat, so I asked my grandfather if I could have his and surprisingly he said no! Then one day this year I saw your son Zachary wearing a Mopar hat. So I asked Zachary if I could buy his hat off of him. Zachary said that you work with Mopar and I said can you get a hat for me? Zachary said maybe or yes. Mr. Sheehy can you pick me up a Mopar hat for me please?

Thank you Mr. Sheehy Sinceraly, Justin Pinheiro Zachary’s friend

Letter #2 (Written after Chris informed Justin that he was able to get a Mopar hat for him!)

Dear, Mr. Sheehy I appreciate you taking your free time to write back. I saw Zachary wearing the Mopar hat and it’s a good looking hat. I’m looking forward to next Wednesday. You rock! Thank you.

P.S. For this letter I was using my smencil to write but I only use it for special notes and work.

Your friend, Justin Pinheiro

Two of RI’s Biggest and Youngest Mopar Fans!

Justin & Zachary

Submitted by Don Cushing

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

38

Sept-Oct ‘12

Connecticut Association slams State Farm PartsTrader Program By: ABRN Wire Reports September 12th, 2012 The Auto Body Association of Connecticut (ABAC) presented a position statement to its members Sept.11 calling the State Farm PartsTrader program “bad for repairers, part manufacturers, and most importantly, consumers.” Here is their unedited position statement: The Auto Body Association of Connecticut (ABAC) stands with our brother and sister organizations across the country decrying State Farm’s PartsTrader program. The endeavor is a wolf in sheep’s clothing. It is bad for repairers, part manufacturers, and most importantly, consumers. The only two enterprises in place to profit – and profit handsomely – are State Farm Insurance and PartsTrader.

PartsTrader is a web-based, collision part sourcing, quoting and ordering system. According to its website, “PartsTrader is a tool to improve the collision replacement parts sourcing, quoting and ordering process. We are not a parts retailer.

We facilitate the matching of collision repairers with replacement parts suppliers.” Currently, PartsTrader is open only to State Farm Select Service repairers and parts suppliers nominated by Select Service repairers. According to PartsTrader, however, its long-term goal is to make PartsTrader available to the entire U.S. collision repair industry.

The idea, as we see it, is to hoodwink the part suppliers and repairers into negotiating away their respective profit margins in the name of greater profits for State Farm. Despite the program being sold as a benefit to repairers and consumers, it quite clearly benefits neither. There are already programs in place to ensure competitive pricing. What PartsTrader does is infuse a grossly inefficient process at the expense of the repairers and OEM vendors. Thus, not only is the program redundant, it is also inefficient. What is more, insurers simply cannot continue to draw profits from an already besieged industry without further affecting quality and safety. It just can’t happen. Similar to what is happening in the health care market, the insurer model of perpetually taking in more premiums, while perpetually finding new ways to pay less on claims, is fundamentally corrupting both industries.

If State Farm and PartsTrader are successful in penetrating the entire U.S. parts market, State Farm will find itself flush with new profits hot off the backs of repairers, retailers and consumers. It will not take long for the likes of Allstate, Progressive, GEICO and others to follow suit. History and experience have taught us that any time an insurer endeavors to “improve” the auto body industry, bad things happen. Instead of focusing on the business of insurance, State Farm has once again, taken it upon itself to meddle with the collision repair industry for its own selfish motivations. Insurers should not be involved in collision repair decisions, collision repair standards, setting pricing on repairs or establishing a new system for the sale and distribution of auto parts. None of this relates to the business of insurance.

Members of the ABAC and others across the country have unsuccessfully sought to secure the contractual documents detailing the specifics of this plan and respective rights and duties of State Farm, PartsTrader and the participating auto body shops. As with any program of this scope and degree, the devil is undoubtedly in the details. Seeing as the auto body industry had no say in this endeavor, the specifics are being kept from us, and we know State Farm’s history of selfishly interfering in our industry, we can only presume that what we do not yet know is even worse than what we already know. All of the facts, not just those selected by State Farm and PartsTrader, should be on the table.

The ABAC surveyed all of its supporting OEM vendors to ask a simple question: Do you intend on participating in PartsTrader? For many of the reasons articulated in this press release, every OEM vendor, all seventy-six (76) of them, said they will not. Not one OEM vendor said it would agree to participate in PartsTrader. Indeed, we are unaware of any OEM vendor in Connecticut who intends on participating.

Continued on Page 39

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

39

Continued from Page 38 Given the origin of the PartsTrader program, State Farm’s apparent objectives, the obvious inefficiencies and harms caused by the program, together with the litany of problems already experienced and highlighted by industry leaders across the country, the ABAC felt it imperative to interject its voice into the national debate. For all of the aforementioned reasons, we write to strongly oppose the PartsTrader program. Further, in light of the long-term damage this program will likely cause our industry, we are respectfully encouraging those of you who have not yet weighed in on this debate, to carefully examine the pilot program and voice your opinions.

Auto Body Association of CT (ABAC) is a statewide trade association of professionals dedicated to the protection and education of the motoring public and advancement of the collision repair industry, through safe quality repairs for Connecticut consumers.

For more information on how ABAC helps CT motorists or for more information on how to join visit www.ABAConn.com.

NABA speaks out against PartsTrader July 25, 2012—The Nebraska Auto Body Association (NABA) on Tuesday announced its opposition to State Farm Insurance’s parts procurement system through PartsTrader.

The announcement comes on the heels of other organizations that also recently denounced the program, including the Alliance of Automotive Service Providers (AASP) of Illinois and AASP of New Jersey. The NABA cautions collision repair shops to consider PartsTrader’s potential business impacts, such as additional administrative times and costs.

Norbert Zaenglein, director of the NABA, said all U.S. states have ineffective regulations for market conduct, which gives insurers free rein over the collision industry. He said state regulation of insurers’ claims settlement practices is seriously compromised, and the catalyst for several foundational problems faced by repairers.

“Lack of regulatory oversight allows insurers to take more and more control over the collision repair industry from influencing estimating databases, manipulating labor rates and controlling the repair process. Repairers who believe that this will be the final encroachment into their business are seriously mistaken. The squeeze by insurers will be relentless, and claimants will pay the price in terms of repairs that do not restore the vehicle as promised under the policy of insurance,” Zaenglein said. “Without adequate regulation of the insurance industry, it is up to shops to stand up to intrusive mandates by the insurance industry and get actively involved in fixing a very broken insurance regulatory process.”

State Farm launched its pilot program through PartsTrader earlier this year. The program requires shops affiliated with State Farm’s Select Service direct repair network to source parts from vendors through a Web-based process facilitated

by PartsTrader. Repairers submit parts orders through the system and vendors bid for the sale.

State Farm has said the process should improve part availability, process efficiency, order accuracy and create a better experience for customers. The pilot is being conducted in four U.S. markets—Grand Rapids, Mich.; Tucson, Ariz.; Birmingham, Ala.; and Charlotte, N.C. Source: www.fenderbender.com

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

40

Sept-Oct ‘12

Congressmen Weigh Patent Protection for Crash Parts Wednesday hearing looks at stripping design patent protections from OEM collision parts in the name of competition.

The House Judiciary Intellectual Property Subcommittee on Wednesday heard testimony regarding the Promoting Automotive Repair Trade and Sales (PARTS) Act authored by Reps. Darrell Issa and Zoe Lofgren. The bill, H.R. 3889, would dramatically shorten the time afforded to carmakers for design patent protection on collision parts from 14 years to just 30 months.

Supporters say the measure would expand consumer choices and cut costs paid by insurers on collision repair parts, a dubious benefit according to those opposed to the legislation who warn of a slippery slope that would stifle innovation.

“Competition is the hallmark of our free market system,” Issa said. “For decades Americans have been used to having choice when it comes to the component parts that they use to repair their vehicles after an automobile accident. My bill ensures that this choice will remain intact.”

“The PARTS Act is intended only to deal with auto collision repair [parts]. In recent years, auto companies have been increasingly seeking design patents on these parts which creates a 14 year window of exclusivity. The PARTS Act does not deal with interior parts, the engine, transmission or undercarriage, parts covered by utility patents,” Rep. Issa said. “This difference is important because utility patents are generally what we associate with the invention or discovery of a new and useful process or machine. Design patents, on the other hand, are generally granted to those who invent a new, original and ornamental design for an item, the underlying invention is not new, only its appearance,” Issa added.

Insurers support the measure.

W. Neal Menefee President and CEO of Rockingham Group testified on behalf of National Association of Mutual Insurance Companies (NAMIC), the Property Casualty Insurers Association of America (PCI), and the Quality Parts Coalition (QPC), a group supported by aftermarket parts manufacturers and suppliers.

“Consumers benefit from the lower costs created by the competition of alternative suppliers of collision repair parts,” said Menefee. “However, some car companies appear to have formulated a new business strategy to eliminate competition and expand their already dominant share of the market by obtaining 14-year design patents on their collision parts and enforcing them against alternative suppliers.”

“At its core, this is a consumer issue; the costs of auto body repair are borne by consumers, either reflected in their insurance costs, or directly when they pay for repairs themselves,” said Menefee.

Continued on Page 41

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

41

Continued from Page 40 Kelly K. Burris, a patent attorney and adjunct professor of intellectual property law at Thomas M. Cooley Law School testified against the measure.

“From a practical perspective, the proposed legislation will not accomplish its objective because I think most consumers can agree that there is serious doubt that our insurance premiums will actually be reduced,” Burris testified.

“And on the topic of trademarks or trade dress, non-OEM parts will likely be lower quality and present safety risks without any controls on their specifications. In fact, testing has shown that non-OEM parts do not perform as they should and do present safety risks. Even the Chief Research Officer for the Insurance Institute for Highway Safety (IIHS) acknowledged that ‘You can’t willy nilly change those parts, because the system won’t work the way it was designed.’ And when I asked my students about this proposed legislation, that was one of the first responses, that their personal experience involved inferior replacement parts, and that they know now to ask for OEM parts.

Burrus continued, “What sub-standard non-OEM parts translates to for the brand owners, such as Ford, Chrysler, and GM, is a tarnishment of their image because the replacement part is presumed to be made by the OEM once the vehicle is back on the road. When the plastic is crazing or the chrome is rusting, consumers will likely think that the OEM does not make quality vehicles. And when the air bag does not deploy because a cheap imitation bumper beam was used in a repair, consumers will also conclude that the OEM does not make safe vehicles.

Jack Gillis testifying on behalf of the Consumer Federation of America, Advocates for Highway and Auto Safety, the Center for Auto Safety, Consumers Union (the policy and advocacy arm of Consumer Reports), and Public Citizen, approached the subject of automobile safety from a different perspective. “On the safety side, tragically, as the cost of needed repair parts rises, many consumers will be forced to forgo or delay needed repairs, leaving them with a vehicle that may not offer needed safety.

Delaying or ignoring the replacement of a head light, side mirror, or brake light could have serious safety implications. Consumers with low incomes, seniors on fixed incomes and those consumers who pay for crash repairs out of their own pockets may not be able to afford needed repairs.

Gillis was not representing the Certified Automotive Parts Association (CAPA) at the hearing, of which he is the Executive Director, but perhaps hinted at the need for aftermarket parts certification programs when he said, “The consumer organizations supporting this effort do so with the insistence that all parts, whether they be service parts sold by the car companies or parts made and sold by independent companies, must not compromise the integrity or safety of the vehicle. Not only do consumers have the right to competition, but they have the right to safe and high quality competitive parts.”

The committee did not take a vote on the measure.

Source: www.collisionweek.com

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

42

Sept-Oct ‘12

2012 MMG C o m m itte e s

President Vice President Treasurer Secretary

Steve Hofer Rick Cutaia Mark Skinner Joe McBeth

Executive Committee

All of the above as well as:

Gerry Oakes

Marvin Windham

Dan Hutton Paul Allred

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

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

Committees:

Vendor Chairman Dan Hutton Tom O’Brien CJD – Greenwood, IN

Newsletter Dan Murphy Chapman CJD – Scottsdale, AZ

Don Cushing Bald Hill DCJ – Warwick, RI

Nada 2013 Planning Marvin Windham Benchmark CJD – Birmingham, AL

Andy Reed Allen Samuels DCJ – North Richland Hills, TX

Membership Open

Vendor Committees

ADP Gerry Oaks Baxter CJD – Omaha, NE

Paul Allred Stateline CJD – Fort Mill, SC

Andy Reed Allen Samuels DCJ – North Richland Hills, TX

Rick Monteiro Jack Powell CJD – Escondido, CA

Mike Mulkins Go Chrysler Jeep West – Golden, CO

R&R Rick Cutaia Rick Hendrick Dodge – Charleston, SC

Ken Kokoszka Pollard Friendly Motors – Boulder, CO

Rich Schott Moore CJ – Peoria, AZ

OEConnection Snap-On Dan Hutton Tom O’Brien CJD – Greenwood, IN

Paul Allred Stateline CJD – Fort Mill, SC

Brent Hoge Larry H. Miller CJD – Sandy, UT

Dealer Tire Paul Allred Stateline CJD – Fort Mill, SC Susan McDaniel Bill Luke CJD – Phoenix, AZ

Joe McBeth Dallas DCJ – Dallas, TX

Elite Extra Rick Monteiro Jack Powell CJD – Escondido, CA

Larry Morris Fred Beans DCJ – Doylestown, PA

Ken Kokoszka Pollard Friendly Motors – Boulder, CO

J.D. Ipsen Ken Garff West Valley CJD – West Valley, UT

Steve Hofer Park CJ – Burnsville, MN

UPS Marvin Windham Benchmark CJD – Birmingham, AL

Brent Hoge Larry H. Miller CJD – Sandy, UT

Casey Brown Allen Samuels DCJ – Katy, TX

Glen Hojnacki Milosch’s Palace CJD – Lake Orion, MI

Ken Kokoszka Pollard Friendly Motors – Boulder, CO

Mopar Masters Guild Magazine