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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2019 - 2021 OFFICERS PRESIDENT Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net COLLISION CHAIRMAN Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Brad Crawford, Livingston Collision, Inc. 973-992-5274 / livingston.collision@gmail.com Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com
CONTENTS
VOLUME 51 NUMBER 1 | January 2021
COVER STORY by Joel Gausten
A NEW YEAR, A NEW BEGINNING: Automotive Repair in the Post-COVID-19 World
10 14
OUT OF BODY (AND MECHANICAL) EXPERIENCES PRESIDENT’S MESSAGE
Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com
LOCAL NEWS
Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com
20
Sam Mikhail, Prestige Auto Body 908-294-1985 /prestige@goldcar.us
BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com
PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert/ lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com CONTRIBUTING EDITORS Charles Bryant • Mario DeFilippis • Jeff McDowell • Mitch Portnoi • Ron Ananian Keith Krehel • Jerry McNee • Bob Dirkes • Jacquelyn Bauman
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
www.grecopublishing.com NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2021 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www.istockphoto.com.
34 16
EXECUTIVE DIRECTOR’S MESSAGE
50 NJA ADVERTISERS’ INDEX
AASP/NJ Membership Meeting Explores Massachusetts Right to Repair Victory by
NATIONAL NEWS 24
SCRS’ Repairer Driven Education Addresses Shop Liability and More by
30
WMABA Collision P.R.E.P. Concludes with Internet Marketing, Calibration Courses
42
How Book Accounts/Collection Practices Can Lead to Litigation
COLLISION P.R.E.P. NEWS LEGAL PERSPECTIVE
AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 46 Wharton Insurance Briefs by Mario DeFilippis Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Phil Dolcemascolo Tom Elder Bob Everett
Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Keith Krehel Joe Lubrano Michael Lovullo Jeff McDowell Sam Mikhail Ron Mucklow
George Petrask Russ Robson Jerry Russomano George Threlfall Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson
New Jersey Automotive | January 2021 | 7
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60?
OUT OF BODY (AND MECHANICAL) EXPERIENCES by THOMAS GRECO, PUBLISHER
Can you see it? Squint with your eyes about three quarters closed. See it yet? No? Well, it’s there. Trust me. I’m talking about that ever-elusive light at the end of the tunnel. As I write this, during the last few days of this dreadful year, that light is coming head on like the one on the front of a locomotive. It may seem hundreds of miles away, but it’s coming. Earlier this week, they started COVID-19 vaccinations. This weekend, Congress finally agreed to a second COVID19 relief package for all of our struggling businesses. Only a month ago, that train was a fantasy. Now, it’s coming on the fast track. Lord, I hope by the time you hold this article in your hands, you can hear that train engine coming around the corner and stopping at the door. Then we can all get back to normal.
That’s right, I said normal. Screw all that “new normal” bullshit. We need to get back to the life we knew a year ago. And we need to do it as soon as possible. Open the schools. Open the restaurants. Open the trade shows! Safely, of course. These aren’t political statements (although to some people, EVERYTHING is a political statement). No, these are statements of hope. Statements of faith. Pure and simple. Nothing more. I want a new year like our old years. How about you? Two days ago, I turned 60. Two days ago, I turned 60. I had to write it twice to believe it. Where the hell did it all go? I can still remember sitting next to Norman Morano in sixth grade and hearing the teacher talk about the year 2000. I remember thinking how crazy it was that I would be 40 in
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2000. My pre-teen mind couldn’t conceive any age older than that. 60??? Well, at least I made it. When my dad died at 60, I figured I would be lucky to get that far. When I had my first heart attack at 35, I figured, “Oh well. My odds just got even longer.” But here I am. 60??? I have been so blessed throughout my life. You know the names from all my articles. All those people: From my beloved parents, siblings, my wife and kids, all my dear friends from inside and outside this great industry to my nieces, nephews, pets and co-workers (especially Alicia Figurelli) and my fantastic readers. Every one of them played a part in my blessed life. And I saw that come to life a few weeks ago. My wife and kids had told me they rented out a movie theater for a private showing of my favorite Christmas movie, It’s A Wonderful Life. I was excited to be able to do something that special, as a family, to watch our fave movie alone on the big screen. 12:20 PM When we were leaving the house, my daughter wasPage 1 nowhere to be found. My wife told me she was meeting us at
the theater. Hmmm. When we got to the theater in Ridgefield Park, we pulled in and there was my daughter’s car. Hmmm. She’s NEVER early. When we walked into the lobby, she wasn’t there either. Now, this was all happening within a two-minute span, so I knew something was off. But I didn’t have quite enough time to put it together before they opened the doors to the theater and I saw all my relatives and friends standing and yelling, “Surprise!” Now, it takes a lot for me to be speechless, but this had me mute. It was 8:45 on a cold Sunday night in the middle of a pandemic. And here were some 30 people (masked and socially distant, of course) I loved more than anything applauding me. But it gets better… After making a brief speech thanking everyone, we sat down to watch It’s A Wonderful Life. Or so I thought. Soon after the lights came down, the screen lit up with the “Tom Greco Chronicles!” My daughter, son and wife had managed to get just about everyone who ever meant something to me to send a video message wishing me happy birthday along with their
Continued on page 29
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12 | New Jersey Automotive | January 2021
New Jersey Automotive | January 2021 | 13
PRESIDENT’S MESSAGE by JERRY MCNEE
Holding Insurers Accountable
We’re almost a year into COVID-19, and to say that it has changed our industry is an understatement. In addition to working hard to stay in business and keep our employees and customers safe, we’ve been dealing with major – and often very difficult and frustrating – changes to how insurers handle claims at our shops. Delays have been common since this situation began, but things are really getting out of control. Just the other day, an insurer informed our customer that payment for repairs would be issued in 90 days. Ninety days! What are we supposed to do with that? As I look around my shop, insurance delays of some kind are impacting at least 35 percent of the vehicles here. As a shop owner, it’s a bitter pill to swallow that I’m starting off a new year under these circumstances. I feel like I’m running a marathon with an anchor tied to my back. I know I’m not alone. Everybody in America has been impacted by COVID-19 in some way, but insurers must be held accountable for how they are handling things. Shops can’t sit back and blindly accept things that will put them out of business if they’re not addressed. One way to stand up and push back is by supporting the New Jersey Insurance Fair Conduct Act
(A1659 and S1559), which has been discussed at length in this magazine over the past several months. Another option we have is to encourage our customers – the most important people in the equation – to file complaints with the New Jersey Department of Banking and Insurance and copy their local legislators who support this bill. They need to know what is going on out here and that insurers are taking advantage of all of us. Many legislators have no idea what shops or customers go through. The third piece of the puzzle is to be as active in AASP/NJ as possible. This association is here to serve as your voice, and we need your participation to make that voice louder as COVID-19 and the questionable practices of the insurance industry carry on. The days of one-sided negotiations with insurers need to come to an end. Based on current news and figures, it looks like it will take at least another six months for things to even out. We can’t afford to keep accepting whatever insurers put on our plates. Is it ever going to be a perfect world? Absolutely not, but at the end of the day, we need to start doing our part to change things for the better. If you want to plan for the future, get involved now. NJA
KEEP IT GENUINE INSIST ON GENUINE GM PARTS Using Genuine GM Parts for collision repairs is better for your customers, and better for your business. Contact the following dealers for all your Genuine GM Parts needs: MAXON BUICK GMC 2301 Route 22 West Union, NJ 07083 Phone: 800-964-7281 Fax: 908-851-5631 maxonwholesaleparts@gmail.com www.maxonbuickgmc.com
14 | New Jersey Automotive | January 2021
NU CAR CHEVROLET 172 North Dupont Highway New Castle, DE 19720 Phone: 800-633-6606 Fax: 800-346-5285 parts@nucar.com www.nucar.com
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Join our growing list of satisfied customers. Save time, improve profits and keep your customers loyal. * If your order is placed by 10:30am, we will confirm availability and provide you with and ETA for delivery. ©2021 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. New Jersey Automotive | January 2021 | 15
EXECUTIVE DIRECTOR’S MESSAGE by CHARLES BRYANT
Beware of Deceptive Practices during COVID-19
It should also be noted that the New Jersey Auto Body Since the COVID-19 pandemic took hold, the collision License Law makes it illegal for a New Jersey-licensed auto industry has seen insurers attempt to take advantage of body shop to prepare an estimate based on photos, people submitting auto property damage insurance claims telephone calls or any other means other than personal rather than attempt to go above and beyond the norm to try inspection of a vehicle. Breaking these rules creates a basis and assist those who have suffered damage to their vehicles for the New Jersey Motor Vehicle Commission to fine the in this unprecedented and difficult time. facility, refuse to grant a license or suspend or revoke an Although there is no way to prepare a proper estimate existing license. See the provisions below: based on photos of a damaged vehicle (especially when the damage is substantial), insurers are refusing to personally inspect vehicles and insist that MOTOR VEHICLES - REPAIRS consumers photograph the damage or LICENSE AND PERMITS force collision shops to take photos of AASP/NJ would that damage instead. P.L.2001, c.053 (A1957 3R) CHAPTER caution our members As a result, we are seeing estimates 53 of putting their prepared by insurers that are so out of license in jeopardy line with collision shop estimates that the C.39:13-4 Fine; refusal to grant by providing any difference cannot be attributed to suspension, revocation of license. conflicting opinions. In one case, the consumer an 4. The director may fine or refuse to insurer’s estimate based on photos was estimate based on grant or may suspend or revoke a around $2,400 when the shop’s blueprint photos of the vehicle. license of an auto body repair facility for clearly showed that the damage was well any of the following acts or omissions over $11,000. Naturally, the insurers are related to the conduct of the business of claiming that their estimates reflect all the auto body repair facility: they can pay based on the photos submitted. Then, when challenged, the insurers are requesting that the collision shops take more photos and submit them to substantiate the f. Making appraisals of the cost of repairing a motor additional damage. This goes on over and over, time and time vehicle which has been damaged as a result of a again. collision through the use of photographs, telephone Then, after dragging out the process for weeks and calls, or any manner other than personal inspection hoping that the consumer or the shop will just accept whatever the insurer is willing to pay, reality sets in and the Many insurers are now preparing estimates based on vehicle is often declared a total loss. Then, the insurer photos of damaged vehicles that they have convinced attempts to refuse to pay the storage charges that the insured consumers, collision shops and even Uber drivers to take. has incurred to protect the vehicle from further loss while the This practice is resulting in consumers continuing to drive photo estimating game was being played. unsafe vehicles after an accident because of the lack of an The reality is, part of an insured’s duties after a loss is to inspection by a professional who would deem those vehicles take steps to protect the vehicle from further loss for the unsafe. Consumers are being shortchanged on their claim by benefit of all concerned, including the insurer responsible for thousands of dollars (and often with unbelievable delays in that loss. Unfortunately, many consumers and even some them getting their vehicle repaired and back on the road) shop owners are not aware of the “Duty to Protect” provision while insurers are being unjustly enriched by millions. This that can be found in most standard auto property damage has been and continues to be documented daily. policies. It should be noted that the “Duty to Protect” provision The provision discussed in this message was put in the applies to both repairable vehicles waiting for repair as well New Jersey Auto Body License Law to prevent exactly what is as vehicles that ultimately are considered a total loss. In other now taking place. AASP/NJ would caution our members of words, storage charges incurred while awaiting repairs is putting their license in jeopardy by providing any consumer owed on repairable vehicles just as storage is owed on total an estimate based on photos of the vehicle. loss vehicles. A third and final deceptive practice, where an insurer tells
16 | New Jersey Automotive | January 2021
an insured that they are obligated to take their damaged vehicle to another shop for an estimate, has also been recently reported. This has been taking place after the insured has informed the insurer that their vehicle is at a repair facility of their choice and has requested that the insurer negotiate the estimate to repair the vehicle at this chosen facility. The regulation is clear that an insured has the right to have their vehicle inspected at a place and time reasonably convenient to the insured. See the following provision:
N.J.A.C. 11:3-10.3 Adjustment of partial losses (a) If the insurer intends to exercise its right to inspect, or cause to be inspected by an independent appraiser, damages prior to repair, the insurer shall have seven working days following receipt of notice of loss to inspect the insured’s damaged vehicle, which is available for inspection, at a place and time reasonably convenient to the insured; commence negotiations; and make a good faith offer of settlement. [Emphasis added.]
Continued on page 40
AASP/NJ wishes all members and supporters a happy, healthy and successful New Year! We look forward to serving you in 2021!
New Jersey Automotive | January 2021 | 17
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LOCAL NEWS by Alana Bonillo
AASP/NJ Membership Meeting Explores Massachusetts Right to Repair Victory On December 17, AASP/NJ welcomed industry representatives from Massachusetts via a virtual meeting to inform its membership of the efforts behind the recently passed Massachusetts Right to Repair Law ballot measure and advise how grassroots actions can be taken to help pass industryrelated legislation in the Garden State. Tommy Hickey, director of the Massachusetts Right to Repair Coalition, and AASP/MA Executive Director Evangelos “Lucky” Papageorg began by giving AASP/NJ members a history of the Massachusetts Right to Repair Law. Originally passed in 2012, the law was enacted to establish a level playing field by ensuring that independent auto body and mechanical service shops had access to the same diagnostic and repair information as dealerships and car manufacturers. Thanks to the recently voted-in ballot measure, consumers and independent shops now have access to telematics information as well. This was originally carved out of the 2012 law by manufacturers at the eleventh hour before the law was passed. Hickey explained that the use of telematics back then was nothing like it is today and was not a major concern at the time. That is no longer the case in 2020, as about 90 percent of current vehicles on the road have this technology. “We wrote the ballot initiative as a way to close that loophole but also with a twist,” Hickey explained. “We wanted to allow the car owners – not the car manufacturers – to be the gatekeeper of their diagnostic repair information and codes. Through a mobile-based application, the car owner would get the information directly and allow an independent repair and body shop to have access to information for a period of time the owner allows them to have it […] We made this about consumers and getting their cars fixed.” According to Hickey, major manufacturers spent $30 million to fight against the Coalition’s movement to get this law revised. However, a strong grassroots campaign geared toward consumers helped solidify victory at the polls last November with more than two million votes. “Technology will change, but technology shouldn’t take away your right to choose where to get your car repaired.”
20 | New Jersey Automotive | January 2021
While Right to Repair has largely been viewed as a mechanical issue, it has become a major concern for collision repairers in recent years as vehicles become more computerized. “A major concern for collision repairers is the increased cycle times,” shared Papageorg. “Not having access to collision-related repair information and codes stored in a damaged vehicle forces repairers to send vehicles to an OEM dealership for repair, adding to cycle time and administrative expense. Also, the OEM could be a potential competitor. The vehicle would be far from a priority at the dealership. Additionally, there is the factor of trusting that the work was properly performed at the off-site location while having to accept the full liability. We voiced strongly that it should be the consumer’s right to have access to their information and to have the final say who gets to fix their vehicle and at what price. It’s their car; it’s their right.” Although the automotive manufacturer-comprised Alliance for Automotive Innovation is currently suing Massachusetts Attorney General Maura Healey to block the ballot measure’s aims from going through, Hickey is confident that this effort will not succeed. “We feel good, and we don’t think we will get struck down.” The ballot question received 75 percent of the vote in its favor, all thanks to the strong messaging Hickey and his Coalition team sent out to consumers by way of visiting shops, distributing materials to them and asking them to make their customers aware of the Right to Repair Law. AASP/NJ President Jerry McNee commended Hickey and Papageorg for their efforts and reminded attendees that AASP/NJ is an example of similar “strength in numbers” closer to home. He advised members to consider making a contribution to the AASP/NJ Legal Fund and informed them that the association recently hired an attorney to assist with legislative efforts, including the New Jersey Insurance Fair Conduct Act (A1659/S1559), which would create a private cause of action for first-party claimants regarding certain unfair or unreasonable practices by their insurer. NJA
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NATIONAL NEWS by Joel Gausten
SCRS’ Repairer Driven Education Addresses Shop Liability and More With the in-person 2020 SEMA Show canceled due to COVID-19, the Society of Collision Repair Specialists (SCRS) took a different approach in delivering the latest installment of its popular Repairer Driven Education (RDE) series by partnering with SEMA360, the online portal created to accommodate SEMA attendees’ desire to experience the legendary event through a virtual format. Thanks to this partnership, SCRS currently has 18 online RDE video courses (plus the multi-part 2020 SCRS OEM Collision Repair Technology Summit) that are available now through August 2021. One of RDE’s many highlights, “Scanning and Diagnostics: Get Educated and Be Prepared in Order to Get Paid,” includes a frank overview by former MSO owner Aaron Clark, now vice president of strategic initiatives at AirPro Diagnostics, of the “traumatic experience” he faced several years ago when a vehicle repaired at one of his Indiana-based Collision Solutions locations was involved in a subsequent collision. On paper, the approximate $1,700 repair of the Nissan that arrived at Clark’s bay should have been an easy job. The car wasn’t even moving when it was hit, and the airbag hadn’t deployed. “The vehicle had a single crash sensor that was attached to the vertical support, and part of my repair was to replace the upper tie bar. The vertical support that the airbag sensor was attached to had to be removed and reinstalled because the vertical support was included with the new replacement tie bar. We did in fact replace the vertical and the upper tie. As a result of that, we had to disconnect the SRS components in the vehicle. We performed our repair, and that airbag sensor was simply reattached. The compensation I received as a repairer was 0.2 [hours] to remove and reinstall the airbag sensor, which again is the only airbag sensor in this particular vehicle. I think there was 0.3 [hours] for diagnostic time essentially to reset the electrical components […] That’s what the P-Pages allowed us to charge for, so it was twotenths of body labor and three-tenths of mechanical labor.” With the vehicle returned to the customer, Clark assumed
24 | New Jersey Automotive | January 2021
his time with the vehicle was over. Unfortunately, it was involved in a “terrible” frontal impact a few weeks later, leading to several injuries to its occupants when the airbag didn’t deploy. Before long, Clark was faced with “a lifechanging process for me and a lot of my employees” – a major lawsuit against his facility that went on for five years. “We had substantial evidence that I had performed my repair correctly, but there were a couple of things that were missing […] Nissan has published information for what to check or replace in the event of a frontal collision with deployment or [one] without deployment of the airbag. In the event of a frontal impact/non-deployment, there are multiple operations that are recommended and/or required by the vehicle manufacturer […] In my case, whether [they were] recommended or required, sadly I must say we didn’t perform the operations.” Clark’s insurance company ultimately decided it was in its best interest to settle the claim. Although he explains that the legal process included “expert testimony” in his favor that illustrated “that the system was performing the way that it should after [his facility] had repaired the car,” he is quick to acknowledge that there were still steps not taken by his business. “The damage really occurred to my staff and me. Why did we not see this information? Why did we not perform it? We have to live with that whether or not it was responsible for anyone’s injuries. Again, they settled, so it was never decided by a jury. But at the end of the day, shops need to know where to look for this information. Ignorance is no excuse.” During his RDE presentation, “Overcoming Insurer Objections to Payment for Needed Repair Procedures,” Tim Ronak of AkzoNobel brings clarity to shop/insurer relationships by providing an overview of what carriers are required to do to settle a claim as per the policies they issue to consumers. He explains that insurance policies state that an insurer will fully indemnify an insured for a covered and demonstrated loss, adding that the original insurance estimate is not a legitimate tool in accomplishing this goal. “The insurer estimate is strictly an internal document for
Continued on page 29
Co-cele ebrating decad des of creating g chemistry be etween two industry leaders
Here’s to 235 year s of combined service e excellence This ye ear, as Albert Kemperle Inc. c. celebrates its 80th anniversary versary, BASF al so celebrates its 155th anniversary nniversary. We are proud of o our decades off partnership t hip with BASF and d years off serving i the auto a t paint i t and d bo ody industry together. Kem mperle’s founders would be e pr proud of this relationsship and the growth their company c has experienced because of it. Today T oday, as we look forward to t many more decades of service to our custtomers, we find ourselves filled with gratitude. The creativity, cr hard w work, and sense of responssibility of the people workin ng for our two comp panies have made us what we are today. Than nk you for your many yea ars of loyalty y..
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HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE. SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS. TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR A HYUNDAI WHOLESALE PARTS SPECIALIST. For Genuine Hyundai parts, contact an Authorized Hyundai Dealer. MAXON HYUNDAI 2329 ROUTE 22 WEST UNION, NJ 07083 TOLL FREE: 800-964-7281 FAX: 908-851-5631
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NATIONAL NEWS
Continued from page 24
OUT OF BODY (AND MECHANICAL) EXPERIENCES
the insurance company. It’s intended solely for them to substantiate an internal estimated cost of loss calculation – to justify the check they write. That insurance document is strictly for their use only; it has no place outside of their internal documentation for their repair. It’s interesting to point out that, in many cases, this appears to be the starting point for some repairers. Frankly, the procedures that an insurer might assert are irrelevant, as the insurer is not liable for any repairs and does not perform [them].” During “Leveraging Your OEM Certifications,” copresenter Dave Gruskos (Reliable Automotive Equipment) stresses that the advantages of advertising and attending AASP/NJ’s NORTHEAST® Automotive Services Show and SEMA far outweigh the financial commitment. “Who wants to throw their money into marketing? In a lot of cases, you don’t even have a measurable return […] But you have to market yourself. Nobody’s going to do it for you; nobody’s going to automatically come to your door.” The current Repairer Driven Education series is available for purchase and viewing through August 31, 2021 at rde.scrs.com. NJA
Continued from page 11
memories of me. I mean, they were able to get friends from as far back as midget league football and high school. For over an hour, I sat there alternating between tears, smiles and laughter as I watched all of these wonderful people. And interspersed with those videos, my kids (along with their cousins and Alicia) created four hilarious reenactments of me. Me ordering dinner at Ruth’s Chris. Me ordering hot dogs at a food truck. Me coming into work. Me during game night. Me showing off my John Lennon fur coat. They were all made up to look like me, with fake beards, clothes my wife supplied them and even my signature Adidas sneakers! They had all my mannerisms, speech patterns, mispronunciations, etc. down perfectly. What a tribute. It was extraordinary. It was humbling. It was magnificent. I get goosebumps just retelling it here. After that, how can I complain about turning 60??? I hope I have made all of your lives as joyful as you have made mine. I am blessed. Happy New Year! Stay safe! NJA
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MEMBER New Jersey Automotive | January 2021 | 29
COLLISION P.R.E.P. NEWS
Concludes with Collis ion Internet Marketing, P.R. E.P. Calibration Courses
Josh McFarlin (AirPro Diagnostics)
Bill Enross (cPrax Internet Marketing)
The Washington Metropolitan Auto Body Association (WMABA) recently wrapped up its 2020 Collision Professional Repairer Education Program (Collision P.R.E.P.) held in conjunction with AASP/NJ’s virtual NORTHEAST® Automotive Services Show with two final Zoombased presentations. To help members build the most comprehensive and useful online presence possible, WMABA welcomed Bill Enross of cPrax Internet Marketing for “Tackling Online Storefront Presence for the Collision Repair Business.” Enross’ 70-minute discussion focused on how shops can optimize their local listings and make their websites better communication tools for consumers. He also explored the increased use of digital forms (including Direction to Pay, Repair Authorization and insurer-specific documents) in body shop websites as a result of COVID-19. With internet use on the rise during the pandemic, Enross encouraged attendees to stay on top of online reviews (which Enross referred to as “digital currency”). A bad review should never be left unaddressed, as the SEO platform BrightLocal reports that 97 percent of consumers read companies’
30 | New Jersey Automotive | January 2021
Chuck Olsen (AirPro Diagnostics)
responses to reviews. Of course, this means that shops need to handle negative postings in a responsible and professional manner. “You need to look at a bad review not as the end of the world but as an opportunity to make a really, really happy customer.” For further insight into online reviews, Enross welcomes readers and attendees to view and download cPrax’s “2020 State of Reviews” report for free at cprax.com/media/reviews.pdf. During the Collision P.R.E.P. course “Vehicle Diagnostics & Calibrations: Know What You Know…But More Importantly, What You Don’t Know,” Chuck Olsen and Josh McFarlin of AirPro Diagnostics offered extensive technical information – as well as sobering statistics – on what modern vehicles demand in terms of technical know-how and the industry’s readiness to meet these requirements. Although diagnostics and calibrations have quickly become valid and much-needed steps in the repair process, the presentation made it clear that the industry has been slow Continued on page 37
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New Jersey Automotive | January 2021 | 33
A NEW YEAR, A NEW BEGINNING: COVER STORY by Joel Gausten
AUTOMOTIVE REPAIR
in the Post-COVID-19 World
“Collision shops have been known as fighters for as long as I can remember.” When AASP/NJ Executive Director Charles Bryant said these words in a recent conversation with this writer, he perfectly summed up everything body shops in New Jersey went through in 2020. Every repair professional in this state saw their resolve tested last year, and 2021 is sure to present even more challenges as COVID-19 – and the impact it has had on the health and economic security of our country – carries on. However, there’s much more to the story than just stress and struggle. This month, New Jersey Automotive takes a look at some of the unexpected positives of the pandemic that have benefitted the collision repair field and how 2021 could see things rebound in inspiring ways.
34 | New Jersey Automotive | January 2021
Rising Above…and Standing Up On paper, there are few things for shops to be happy about when considering how hard the industry has been hit since last March. Work has slowed for many, hitting payroll has been an upward climb and the majority of insurers are keeping their estimators at home. Fortunately, these strains have led to more facilities working harder than ever before to make the most out of every job that arrives – which has often meant successfully pushing back against some of the more common obstacles thrown at them by the insurance industry. “As the result of COVID-19 and the reluctance of insurers to perform personal inspections of damaged vehicles, collision shops have had to learn how to make
presentations to insurers – sometimes through the use of photography or videos or often even video conferencing – to show these companies just how complicated and time-consuming it is to do research, prepare a repair blueprint and eventually perform repairs to these complicated modern vehicles,” Bryant explains. “Because of the extensive time,
points to help document what they need and why they need it.” For SCRS, embracing virtual methods of industry engagement has meant (among other things) developing and hosting a virtual version of its popular Repairer Driven Education (RDE) series (see story on page 24), participating in online Collision
In an industry often driven by cycle time and getting as many vehicles in and out of bays as possible, technicians and appraisers are typically more likely to be abducted by aliens than they are to find free time to catch up on the latest procedures and technological trends. But all that changed in 2020, and an inspiring new era in automotive education is upon us. energy and expense that collision shops have to put into this new way of doing business, more and more of them are beginning to demand to be adequately compensated for the services they are providing or refusing to perform those services. Although it appears to be the pandemic that triggered this change to come about, it is long overdue.” Making Work from Home Work Obviously, COVID-19 has not been an overtly positive situation for the collision repair industry. But in the 10 months that inter-industry members have had to adapt to the pandemic, Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg has seen the internet pave the way for considerable progress in educational and networking efforts. “I think that there are tremendous opportunities that have been impacted this year that would have benefited from gathering in person and interacting with peers. But with conditions as they have been, it’s pushed many of us to our computers for more virtual interactions. This can create some challenges in both delivery of content and the degree of how invested the participant is in the material if they are multi-tasking with their daily obligations, but I think a silver lining is that it has generated a plethora of content and sources that collision repairers can access for information, resources and reference
Industry Conference (CIC) events and promoting its online Blueprint Optimization Tool (scrs.com/bot). Closer to home, AASP/NJ continues to regularly host online meetings and training events, including its most recent Right to Repair-centric virtual membership meeting with AASP/Massachusetts Executive Director Evangelos “Lucky” Papageorg and Right to Repair Coalition Director Tommy Hickey. (See our coverage on page 20.) Additionally, the complete Collision Professional Repairer Education Program (Collision P.R.E.P.), hosted by the Washington Metropolitan Auto Body Association (WMABA) in conjunction with AASP/NJ’s virtual 2020 NORTHEAST® Automotive Services Show, is currently available on demand. (See page 30 for details.) While nothing can truly replace the experience of attending a brick-and-mortar industry event, Schulenburg believes that going virtual has opened far more doors for collaboration and learning than it has closed. “For the repair facilities that may have otherwise attended a live event, it may feel like a substitute to a degree. But for a repairer who has never participated in the past, the increase in online material may open up learning opportunities for their facility and hopefully instill priority in escaping from the four walls of the shop when the option opens back up and to participate in some of the extracurricular industry events that can help boost business practices.”
Continued on page 44
New Jersey Automotive | January 2021 | 35
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COLLISION P.R.E.P. NEWS
Continued from page 30
to embrace this reality. According to data provided by McFarlin, less than three percent of vehicles repaired during the fourth quarter of 2018 were calibrated. That figure more than doubled to seven percent for newer vehicles during the fourth quarter of 2019, but the need for increased engagement in these operations is obvious. Glass calibrations are currently performed on nine percent of all claims including calibration despite the fact that 20 percent of all claims require them (with that number increasing year over year). Additionally, a 2019 report revealed that roughly 45 percent of vehicle repair claims listed scanning on the estimate, while position statements alone indicated that over 85 percent of vehicles should have received some form of diagnostic at the shop. “We’re not quite hitting the mark here,” McFarlin said, adding, “What happened to the other 40 percent of vehicles? That’s an awful lot of vehicles that all the information indicates should have had additional diagnostics, calibrations, pre-and post-[repair] scans, etc., and yet they don’t appear on the
invoice […] Most of the individuals I interact with aren’t looking to do work for free. So, if it’s not on the invoice, I suspect it’s not getting done.” With technological advancements in the automotive industry already at an all-time high, McFarlin cautioned that the demands they place on technicians will very likely continue. “The car manufacturers want to keep building cars. If they keep building the exact same car and they don’t add any new features and capabilities, people aren’t necessarily going to want to keep buying them.” “Automotive is getting more and more high-tech,” Olsen added. “We’re going to need more people in the industry who are willing to tackle these things so that we can meet the needs of consumers and keep our families safe.” Complete recordings of all 2020 Collision P.R.E.P. courses are available for On-Demand purchase at wmaba.com/collisionprep. NJA
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ATTENTION NEW JERSEY COLLISION REPAIR FACILITIES:
The State of New Jersey Department of the Treasury, Division of Purchase and Property, will be requesting sealed Quotes for collision repairs on State vehicles.
NOTICE OF BID SOLICITATION 20DPP00539/T0704 – Vehicle Collision Repairs for Department of the Treasury and State Police Companies interested in obtaining a bid package will have to register in NJSTART (http://www.njstart.gov)
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EXECUTIVE DIRECTOR’S MESSAGE
Continued from page 17
Based on these rules, consumers have the right to demand that their vehicle be inspected at the repair facility that is going to repair it in a timely manner. The reason that this rule is so important is that we have recently been receiving reports that insurers are insisting that their insureds take their vehicle to a shop on the insurer’s DRP list for an estimate. Then, the shop on the program steals the job from the original shop that had a signed agreement to repair the vehicle. If any AASP/NJ member has experienced this type of activity, we can assist in a resolution.
If you are a member of AASP/NJ, please keep us informed of any unusual practices that are taking place as the result of the pandemic or otherwise, and we will assist in any way we can. If you are not a member, I would strongly recommend that you consider joining, especially because of the unusual activities being reported as the result of the pandemic. For those interested, I can be reached on the AASP/NJ Hot Line at (732) 922-8909. Thank you. NJA
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LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.
How Book Accounts/Collection Practices Can Lead to Litigation I currently represent a company that sells tangible goods to small and medium-sized companies on credit usually 30 to 90 days. Optimally, there is a credit agreement
What happens when a case morphs from a typical “book account” collection into all-out litigation about the actual delivery of the goods and/or services? signed and a personal guarantee that insures the payment. Occasionally, there is not – usually when the company is thought not to be a credit risk or when it is a substantial or larger entity. What happens when a case morphs from a typical “book account” collection into all-out litigation about
the actual delivery of the goods and/or services? In a typical “book account” collection, there is no dispute about the delivery of the goods or services. However, on occasion, a debtor will raise a defense about either the actual delivery of the “goods” or the quality or quantity of the delivery. When that occurs, who bears the burden of proving the delivery in court? What are the practical considerations that businesses must be aware of? In a collection case back in 1964, a hospital sued on a book account offered only the actual book account as proof of the debt. A trial court upheld this as proof of the debt and entered judgment for the hospital. The Appeals Court set aside the judgment and ordered a new trial indicating that the hospital could prove the services it rendered to the
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42 | New Jersey Automotive | January 2021
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defendant by its books of account. But when the reasonable value was placed into issue, the books alone could not
delivery of the goods and/or the quality of services provided – just as the plaintiff would have the burden of going forward
the quantity or quality of the goods or services into issue, it continues to be the plaintiff’s responsibility to bear the “burden of proof” in going forward and proving both the
Should you have any questions regarding any commercial litigation, please do not hesitate to call my office at (973) 228-9900, ext. 217. NJA
supply the proof. In other words, when the defendant places
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New Jersey Automotive | January 2021 | 43
COVER STORY
Continued from page 35
An Education Revolution Lockdowns and lowered work volume aren’t always bad things. In an industry often driven by cycle time and getting as many vehicles in and out of bays as possible, technicians and appraisers are typically more likely to be abducted by
44 | New Jersey Automotive | January 2021
aliens than they are to find free time to catch up on the latest procedures and technological trends. But all that changed in 2020, and an inspiring new era in automotive education is upon us. After already seeing a significant spike in online training during the early days of the pandemic, I-CAR soon experienced massive growth in its user base as the months moved on. As Nick Notte, I-CAR’s senior vice president of sales and marketing, observes, “We had shops that hadn’t taken a whole lot of I-CAR training saying, ‘I’ve got downtime here. I haven’t really taken a lot of training – not because I didn’t know that I needed it, but because we were so busy that I didn’t think I could get my technicians free. I want to keep them working and employed. They might not be working on cars, but they sure can take some training.’” In addition to helping auto body pros maintain their skills and knowledge, the increased focus on I-CAR in recent times is leading to a more educated insurance industry. According to Notte, personnel from one insurer – which, interestingly, refused to be directly named in this story – went from taking 2,018 courses over a four-month period in 2019 to 96,456 classes during the same timeframe in 2020. That’s an extraordinary jump – and a clear sign that at least one major carrier is extremely well-versed in proper repair procedures even if it doesn’t always reflect this knowledge in what it pays for at the shop level. “They were serious about it,” says Notte of the carrier. “It was great to see that in a slowdown like this, the value that they saw in training was there, and they took a ton of it.”
Other I-CAR services, including its In-Shop Knowledge Assessment initiative, also found a virtual home in recent months, while the organization plans to package training in the near future to make it less expensive for the industry. Additionally, it has posted a special COVID-19 Policy Page at info.i-car.com/information/I-CAR-Information-onCOVID-19 to keep industry members up to date on credentialing extensions, training events and other logistical concerns associated with the pandemic. Above all, Notte stresses that I-CAR is here to assist shops in their educational goals in 2021 and beyond. “Training should be a good thing and a needed thing for shops, but we’re not trying to make it something they will hate having to do, especially in a difficult time. We want to work with the industry […] We want to make sure that we are good collaborative
LET US TURN THEM AROUND!
Contact New Jersey Automotive Sales Director Alicia Figurelli
partners. If you have a credential that you have to meet, we can help you get that done.” The industry – and our world – looks and feels a lot different than it did 12 months ago, but the forward motion detailed in this story reminds us that while this profession may be down, it will never be out. NJA
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ARANJ Board of Directors David Yeager EL & M Auto (800) 624-2266 elandmauto@aol.com
Ed Silipena American II Autos (609) 965-0987 esilipena@yahoo.com
Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com
46 | New Jersey Automotive | January 2021
Dillon Rinkens East Brunswick Auto (732) 254-6501 ebautonj@comcast.net
ARANJ The Automotive Recyclers Association of New Jersey
Wharton Insurance Briefs Drivers face out-of-the-ordinary challenges when winter weather strikes. Snow, slush or icy road conditions are related to one in four vehicle crashes, according to the US Department of Transportation Federal Highway Administration. These conditions make it harder to see, brake and stop, which are all factors that can increase the chances of an accident. When winter weather arrives, make sure your vehicles are prepared in advance (with an ice scraper, a shovel, sand or salt), know the forecast (by monitoring road and weather conditions) and instruct your employees to drive based on the road conditions. Make sure they clear snow or ice from windshields, windows, mirrors, lights, reflectors, the hood, the roof, etc. Drive with headlights on, and be cautious when approaching snowbanks that limit your view. If you break down or get stranded, make sure you are out of harm’s way, stay in your vehicle, keep your seatbelt on and call for help. It would be advisable to share your travel plans with someone else in case you’re not in an area with cell service. This way, if you’re overdue in arriving at your destination, first responders will know where to start looking. We hope you had a wonderful holiday and stay safe and healthy in the new year.
Mario DeFilippis, AAI Vice President (732) 686-7020 (office) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com
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Genuine Volkswagen Collision Parts Are a Call or a Click Away. The best repairs start with the best shop-supplier relationship. Contact the following Authorized Volkswagen dealers by phone, fax or email to get the parts you need, when you need them. Flemington Volkswagen 213 Route 202/31 Flemington, NJ 08822 TOLL FREE: 877-657-2787 FAX: 908-782-1795 rmuir@flemington.com www.NJPARTS.com
Douglas Motors 491 MORRIS AVE. SUMMIT, NJ 07901 PHONE: 908-277-1100 FAX: 908-273-6196 TOLL FREE: 800-672-1172 www.douglasvw.com email: douglasparts@douglasautonet.com
Paul Miller VW of Bernardsville 118 Morristown ROAd Bernardsville, NJ 07924 Toll Free: 877-318-6557 Local: 908-766-1600 Fax: 908-766-6171
Trend Motors 221 Route 46 West Rockaway, NJ 07866 888-267-2821 fax: 973-625-4985 www.trendmotors.com email:dreinacher@trendmotors.com
Crestmont Volkswagen 730 ROUTE 23 NORTH POMPTON PLAINS, NJ 07444 TOLL FREE: 800-839-6444 fax: 973-839-8146 www.crestmontvw.com email:vwparts@crestmont23.com
“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2021 Volkswagen of America, Inc.
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New Jersey Automotive | January 2021 | 49
ADVERTISERS’ INDEX 1-800-NEW-PARTS ................................18-19 Lynnes Nissan East ................................11 Acme Nissan ..........................................6
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Maxon Buick-GMC..................................29
Accudraft................................................IBC
Maxon Hyundai ......................................31
Albert Kemperle ......................................25
Maxon Mazda ........................................31
Amato Agency ........................................32
Mazda Group ..........................................38
Audi Group..............................................21
MGM Auto Body Supplies........................37
BMW Group............................................4
Mike Kaufmann Dealer Group..................17
BMW of Springfield ................................15
Mini Group..............................................50
Bolt On Technology..................................22
Mopar Group ..........................................40
Clinton Honda ........................................43
NJSTART.gov ..........................................38
Collision Solutions ..................................43
NUCAR ..................................................12-13
Collision Supplies of New England ..........10
Paul Miller Subaru ..................................50
Empire Auto Parts ..................................46
Performance Ford Lincoln ......................10
Fenix Parts..............................................44
Porsche Group ........................................33
Flemington Audi ......................................5
PPG ........................................................3
Flemington Group....................................23
Reliable Automotive Equipment................26-27
GM Group ..............................................14
Sherwin-Williams/Sunfire ........................OBC
Hyundai Group ........................................28
Spanesi ..................................................49
Innovative Solutions & Technology / Pro Spot ................................................IFC
Subaru Group ........................................45 Town Motors ..........................................36
Jaguar Land Rover Parsippany ................11
USI of North America ..............................39
Jaguar Princeton ....................................43
Valtek ....................................................47
Klean Frame ..........................................46
VW Group ..............................................48
Kollective Auto Group ..............................8-9
Wheel Collision Center ............................47
Land Rover Princeton ..............................43
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