New England Automotive Report May 2020

Serving the New England Collision and Mechanical Repair Industry

"Your Massachusetts Auto Body Association"

MAY 2020 U.S.A. $5.95

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

THE STRENGTH TO SURVIVE: AASP/MA Members Rise above the Crisis

BEATING Quarantine Emergency ADALB UPDATE AASP/MA on WGBH

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COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155 Phone Number: 781-395-3025 FAX Number: 781-475-5063

COLONIAL HONDA OF DARTMOUTH 225 State Road (Rte. 6) Dartmouth, MA. 02747 Parts Direct: 508-997-2919 FAX Number: 508-730-6578

CITY SIDE SUBARU 790 Pleasant Street Belmont, MA. 02478 Phone Number: 617-826-5013 FAX Number: 617-489-0733

COLONIAL FORD OF PLYMOUTH 11 Pilgrim Hill Road Plymouth, MA. 02360 Phone Number: 800-233-8109 FAX Number: 508-830-1658

NORTH END SUBARU 757 Chase Road (Rte. 13) Lunenburg, MA. 01462 Phone Number: 877-289-0053 FAX Number: 978-582-9843

COLONIAL CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA. 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213

COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464

COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801

COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728

NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841

COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 888-322-6570 Phone Number: 508-996-6266 FAX Number: 508-616-0445 FAX Number: 508-979-1219 COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155 Phone Number: 781-475-5200 FAX Number: 781-391-3506

WELLESLEY VOLKSWAGEN 231 Linden Street Wellesley, MA. 02482 Phone Number: 800-228-8344 FAX Number: 781-237-6024 Contact: Dan Bettencourt / Wholesale Parts Manager

COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587

COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152

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CONTENTS

May 2020 • Volume 18, No. 5

DEPARTMENTS

FEATURES

PRESIDENT’S MESSAGE By Molly Brodeur 8 | Stay Strong

EXECUTIVE DIRECTOR’S MESSAGE

By Evangelos “Lucky” Papageorg

12 | Adversity Only Makes Us Stronger

LOCAL NEWS

18 | Emergency ADALB Advisory Ruling Changes Personal Inspection Threshold 22 | AASP/MA’s Papageorg Discusses COVID-19, Consumer Safety on WGBH 26 | Remembering Brian Duffy

NATIONAL NEWS

30 | Beating Quarantine: National Industry Groups Provide Educational Resources and More

34 | COVER STORY By Joel Gausten

The Strength to Survive: AASP/MA Members Rise above the Crisis

ALSO THIS ISSUE 11 | AASP/MA VENDOR AFFINITY PROGRAM BENEFITS 15 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS 23 | NORTHEAST® 2020 SAVE THE DATE 24 | FOR SALE 38 | AASP/MA MEMBERSHIP APPLICATION

ADVERTISERS’ INDEX Accudraft Paint Booths ................................OBC Audi Group....................................................10 Axalta ............................................................4 Balise Wholesale ............................................13 BASF ............................................................16 Best Chevrolet................................................18 BMW Group............................................................6 BMW/Mini of Warwick....................................21 Boch Chevrolet ..........................................45, 46 Boch Hyundai................................................46 Collision Supplies ..........................................26 Colonial Auto Group ....................................IFC

42 | LEGAL PERSPECTIVE

By James Castleman, Esq.

The Upside of Being a Collision Repair Shop in Massachusetts Empire Auto Parts ..........................................37 Ford Group ....................................................19 Genesis of Norwood........................................45 Honda Group ................................................20 Hyundai Group ..............................................24 Ira Subaru ....................................................33 Ira Toyota of Danvers ......................................32 Kelly Automotive Group ................................IBC Kia Group ....................................................30 Linder’s, Inc. ................................................41 Long Automotive Group..................................25 Mazda Group ................................................14 McGovern Chrysler Jeep Dodge Ram ................29 Mopar Group ................................................28

Nissan Group ................................................17 PPG................................................................3 Quirk Wholesale Parts ....................................36 Reliable Automotive Equipment ........................7 Sarat Ford Lincoln ..........................................29 Sherwin Williams ..........................................27 Subaru Group ................................................40 Toyota Group ................................................39 Volvo Group ..................................................44 VW Group......................................................17 Wellesley Toyota/Scion ..................................33 Wheel Collision Center....................................37

New England Automotive Report May 2020 5

THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of West Springfield 1712 Riverdale St. West Springfield, MA 01089 PH: 413-746-1722 FAX: 413-304-9009 bmwwestspringfield.com

BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com

Tulley BMW of Nashua 147 Daniel Webster Hwy Nashua NH 03060 PH: 603-888-5050 FAX: 603-888-8427 tulleybmw.com

New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com

BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com

BMW of Sudbury Wholesale Parts 68 Old County Road Sudbury, MA 01776 PH: 800-338-3198 FAX: 508-881-7578 bmwofsudbury.com

©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

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PRESIDENT’S MESSAGE

have stepped up in remarkable ways to assist our healthcare communities through direct donations of PPE. Vendors have stepped up with creative ways to ensure we are able to keep our stakeholders healthy and safe with alternative filters for our respirators and access to cleaning agents, gloves and other protective items that we all desperately need.

We’ve all quickly adapted to social distancing by implementing SOPs to ensure we are able to continue to safely repair vehicles. This is no small feat, and we’ve done it by identifying what’s necessary to operate as an essential business. Whether we’ve chosen to remain open or temporarily or permanently close, we’ve identified what is possible for each of us. While it’s difficult to imagine in the moment, we will move forward from this and will have achieved a greater sense of purpose and, hopefully, a greater connection to each other.

AASP/MA is committed to each and every one of you. Reach out. Ask questions. We are here to ensure that you feel supported in whatever path you choose.

As an industry, we’ve always been resilient and able to achieve the impossible. This is no different. Stay strong, healthy and safe.

Stay Strong MOLLY BRODEUR

“Start by doing what’s necessary; then do what’s possible; and suddenly you’re doing the impossible.”

– Francis of Assisi

By the time you read this message, I hope this horrific virus has reached its peak and we are closer to moving toward some level of healing relative to the COVID-19 pandemic. As I sit here on March 31, I am doing what’s necessary to make informed decisions about how to continue to operate my business. There is a lot of uncertainty, and this is unchartered territory.

One thing that has become apparent over the last few weeks is that we are all in this together. We need each other now more than ever, and each of us brings our own unique insight and strategies to help our industry survive in these unprecedented times.

Collision communities from across the nation are holding webinars, disseminating information relative to the CARES Act and other economic stimulus resources, securing PPE for our employees and so much more. Repairers throughout the Commonwealth

N

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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA PRESIDENT MOLLY BRODEUR is the chief operating officer of Al Brodeur’s Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com G

L

A

N

D

AUT M TIVE AASP/MA EXECUTIVE COMMITTEE

STAFF PUBLISHER

GRAPHIC DESIGNER

Thomas Greco - thomas@grecopublishing.com

Lisa M. Cuthbert - lisa@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Alana Bonillo - alana@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com

TREASURER Matthew Ciaschini

PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier

IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS 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

COLLISION DIRECTOR Rob DelGallo

AT-LARGE DIRECTOR Adam Ioakim

AASP/MA DIRECTORS Ray Belsito

Joshua Fuller

Mike Penacho

Alex Falzone

Kevin Kyes

Dana Snowdale

Rick Fleming

Frank Patterson

Bill Spellane Brian Stone

AASP/MA ADMINISTRATIVE OFFICE -New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2020 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

WWW.AASPMA.ORG 8 May 2020

New England Automotive Report

Evangelos “Lucky” Papageorg: AASP/MA Executive Director

Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741

TO OUR VALUED SUPPORTERS: You don’t need me to tell you about the impact of COVID-19 on the automotive repair industry. Certainly, you’re getting it from all ends already - the news, social media, your customers, vendors, the mailman...the list goes on. If you’re a small business like Greco Publishing, all you have to do is look at your cash flow over the past few weeks to see how this virus is affecting you, symptomatic or not.

In a world where you’re worried about paying staff, retaining customers and, most importantly, keeping yourself and your family healthy, our magazines could understandably be the last thing on your mind. So, what can Greco Publishing do for you right now?

As it turns out, quite a lot.

Information. We will continue to put out our regular publications informing the repair industry at-large of the issues affecting your daily success, both in and out of this post-coronavirus industry. We vow to keep our readers informed, whether you are receiving our magazines in print or online. I encourage you to bookmark our website, grecopublishing.com, and follow us on Facebook and Twitter to stay in the loop when our issues come out.

Connection. While many of us remain in isolation, quarantine or physical and social distancing, don’t forget that assistance in almost any area - from insurance relations (yes, shops are still hearing “We don’t pay for that” even now) to completing Small Business Assistance (SBA) paperwork remains very much available. We can directly connect you to representatives from each of our client associations: The Alliance of Automotive Service Providers of Massachusetts (AASP/MA), New Jersey (AASP/NJ), Minnesota (AASP-MN/ "The Alliance"), The Washington Metropolitan Auto Body Association (WMABA), Wisconsin Auto Collision Technicians Association Ltd. (WACTAL), Auto Body Association of Texas (ABAT) and many more leading organizations with just a phone call or email. Your trade association is in place to help you through these tough times; we encourage you to utilize them, and us.

PUBLISHER’S MESSAGE

Publishers of New England Automotive Report grecopublishing.com

Guidance. Vendors, I won’t claim to have the magic formula to reach more customers than you would if things were “normal,” but I will remind you that as of today (April 10), auto repair is still considered an “essential” business.

That means that you remain essential as well, even if your customers’ (or your) doors are temporarily closed. This is not the time to withdraw from the public eye, but rather a time to stay in communication with your contacts. Trust me that they need you now more than ever. Please contact me to discuss how we can work together - for free - to reach your customers until, and well after, this industry is back on its feet.

Support. Our top priority is your success, in good times and in bad. I ask that you reach out anytime if we can assist you or your company in any way. No request is too big or too small. Call or text me at (908) 565-3270, or email me at alicia@grecopublishing.com. I want to help you through this however I am able.

These are uncertain times, to say the least. But I promise you that until we are all back to “business as usual” - and for long after that - that all of us at Greco Publishing are here for you, no matter what.

Sincerely,

Alicia Figurelli Sr. Vice President & Sales Director alicia@grecopublishing.com

New England Automotive Report May 2020 9

Audi dealers strive to make you an Audi Genuine Parts fan •

Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.

•

Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.

•

Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.

•

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers.

No other supplier comes close.

Helping you do business is our business. Order Audi Genuine Parts from these select dealers.

Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841

Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com

10 May 2020

New England Automotive Report

Audi Peabody 252 Andover Street Peabody, MA 01960 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.audipeabody.com

Mattie Audi 80 William S. Canning Blvd.

Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com

New England Automotive Report May 2020 11

EXECUTIVE DIRECTOR’S MESSAGE

EVANGELOS “LUCKY” PAPAGEORG

Adversity Only Makes Us Stronger

To say that we are facing unprecedented adversity would truly be the understatement of the century. No one could possibly have imagined how our society has been rocked globally by the terrible effects of COVID-19. It has certainly been a gamechanger, and we will be feeling the effects for a very long time to come. Sadly, there will be multiple casualties along the way back to “normalcy;” even then, we may not completely recognize what “normalcy” is for quite some time. How we conduct ourselves during this period and the months to come will speak volumes about our will to survive and persevere. So many people have exemplified what it means to stay positive and make adjustments. Many have had to make very hard decisions about their families, businesses and employees.

As challenging as these times are, it is important to stay focused on the future. As the saying goes, “This too shall pass.” How you react and work through this tough period will dictate how well you will be poised for success when it does pass. It is very important to do what it takes to stay sharp in our industry, now more than ever. Some repairers have had to make the decision to close or move to a skeleton crew, while others have been working on the stimulus package loans to continue functioning as best they can and keep their employees working.

Whichever category you may find yourself in, you have many opportunities to turn our current situation into a positive one.

I have spoken with many, many shops over the past few weeks, and I would like to share some of the activities they are undertaking that they shared with me. As you all are very much aware, when we are in full operational mode, there are times we must push things to a back burner. Now is the time to bring those things forward and actively pursue opportunities to add to earning potential now and in the future. Some of this earning potential actually lies in the past. Shops that I’ve spoken to are taking this opportunity to go back and review their previous repair blueprints and receipts for procedural omissions and parts that were either not paid for or had parts price increases (PPIs) that had not been previously reconciled. They are submitting supplements for these items. During this

12 May 2020

New England Automotive Report

“downtime,” it should be relatively easier to also look up things to substantiate repair procedures you performed as part of the repair and may have been denied because you lacked the time to research the backup documentation.

I have also had multiple requests for copies of the CMRs and MGLs that govern appraisers and the

That which does not destroy us only makes us stronger!

obligations we must all follow in the repair and claim settlement process. This is a great time to refamiliarize yourself with claim processing timeframes and estimate requirements. All the regulations are on the AASP/MA website and available for download through the Members Only portal. Also available through the same portal are documents pertaining to current and past Advisory Rulings issued by the Auto Damage Appraiser Licensing Board (ADALB) as well as the video recordings of ADALB meetings where the issues are discussed during open session. The videos are a great tool to gain insight as to how the ADALB works and the intent and interpretation of their Advisory Rulings. It is also a great way to debunk the propaganda that is sometimes spread about what truly went on during a meeting. Some shops have even had their own appraisers as well as insurance appraisers view the meeting videos to substantiate their positions.

For those of you who have not had the opportunity to attend a meeting personally, this will give you the ability to do so without leaving your office or home. Each video has notes attached, directing you via time stamps to key moments and statements made during the meeting. The most recent video will illustrate how the collision repair representatives and AASP/MA work to keep the insurance companies from exploiting repairers. It shows the insurance industry’s utter disregard for anything but its own self interests. For more

information regarding the emergency Advisory Ruling meeting held on March 26th, please see page 18 on this issue of New England Automotive Report and the April issue of the Damage Report newsletter.

I have also spoken to many shops that are taking the time to review their business financials in preparation for applying for the stimulus packages available. In the process, they have had their accountants assist them in determining what their posted Labor Rates should be to keep pace with the cost of doing business. This is a Labor Rate that allows them to properly pay their employees (who are an integral part of their designated “essential businesses”), properly train them and provide the proper equipment to perform technical repairs on today’s vehicles. This is a rate that also allows them to make a fair and reasonable return on their investment.

More importantly, it is a rate that justifies the enormous liability all collision repairers accept when they repair any vehicle. Scores of these same shops are also resubmitting their adjusted Labor Rates to the Variable Rate System Survey data we have been collecting for a year through National AutoBody Research (NABR).

As part of the shop’s review of previous repair

orders and blueprints of repair, collision repairers are also adding to the NABR database of documented procedures and Labor Rates charged and paid for by customers and insurers. Shops that have subscribed to the BillableGenie program offered through NABR have realized the great value of the information they have collected – not only here in Massachusetts, but across the country. I urge you to take the opportunity while you have time available to contact NABR regarding this valuable tool. If you have not taken the survey to date, do so now. At the end of the survey, you will be given the opportunity to take a virtual look at BillableGenie and set up a no-obligation tour. You will be very impressed to see and hear how the information has been used nationally and how to substantiate a better rate of reimbursement/payment for procedures and have the ability to prove that “WE DON’T PAY FOR THAT” is nothing but a myth.

Now is the time to make advances. It is the time to set yourself and your business up for even greater success. Take advantage of the opportunity. There are additional ways to do so by checking out the OEMs’ websites and looking for their position statements on repair procedures. Have your employees continue to continued on page 37

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New England Automotive Report May 2020 13

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14 May 2020

New England Automotive Report

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475 Balise Mazda 635 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!

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‡ Link to website ‡ Quarterly copy of paid member list ‡ AASP/MA logo for your collateral -Bi-Monthly digital advertising in Damage Report Newsletter -Up to 9 Brands, 6x/year -Your copy due to AASP PGmDF PO UIF TU PG 'FC "QSJM June, Aug, Oct, Dec -NEAR Article QFS ZFBS -Company logo on AASP-MA website and published monthly in NEAR 7YVTV[PVUHS Å`LY LTHPS ISHZ[ to membership -3x/year $PQZ EVF UP ""41 PGmDF PO TU PG 'FC "VH BOE %FD -25% discount on advertising in NEAR

-Bi-Monthly digital advertising in Damage Report Newsletter -Up to 3 Brands, 6x/year -Your copy due to AASP PGmDF PO UIF TU PG 'FC "QSJM June, Aug, Oct, Dec -NEAR Article QFS ZFBS -Company logo on AASP-MA website and published monthly in NEAR 7YVTV[PVUHS Ã…`LY LTHPS ISHZ[ to membership -3x/year $PQZ EVF UP ""41 PGmDF PO TU PG 'FC "VH BOE %FD -20% discount on advertising in NEAR

-Bi-Monthly digital advertising in Damage Report Newsletter 6Q UP #SBOET Y ZFBS -Your copy due to AASP PGmDF PO UIF TU PG 'FC "QSJM June, Aug, Oct, Dec -NEAR Article QFS ZFBS -Your company logo on AASP-MA website and published in monthly edition of NEAR 7YVTV[PVUHS Ã…`LY LTHPS ISHZ[ to membership UJNFT QFS ZFBS $PQZ EVF UP ""41 PGmDF PO TU PG 'FC "VH BOE %FD -15% discount on advertising in NEAR

-TWO complimentary attendees for all chapter meetings TDIFEVMFE NFFUJOHT Y ZFBS QFS NPOUI NPOUIT

-TWO complimentary golfers at annual Golf Outing - June 24, 2020 - FOUR complimentary attendees for General Membership Meetings: - Spring Meeting - April 29, 2020 - Fall Meeting - TBD -Hole sponsor at Golf Outing - June 24, 2020

- TWO complimentary attendees for all chapter meetings TDIFEVMFE NFFUJOHT Y ZFBS QFS NPOUI NPOUIT

-TWO complimentary golfers at annual Golf Outing - June 24, 2020 TWO complimentary attendees for General Membership Meetings: - Spring Meeting - April 29, 2020 - Fall Meeting - TBD -Hole sponsor at Golf Outing - June 24, 2020

- ONE complimentary attendee for all chapter meetings: TDIFEVMFE NFFUJOHT Y ZFBS QFS NPOUI NPOUIT

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ONE complimentary attendee for ONE General Membership Meeting: - Spring Meeting - April 29, 2020 OR - Fall Meeting - TBD

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-Sponsor of 24 weekly tip email blasts per year to membership -Recognized sponsor at all regional chapter meetings Y NPOUI NPOUIT

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-Recognized sponsor at General Membership Meetings: - Spring Meeting - April 29, 2020 - Fall Meeting - TBD

-Your promotional materials can be distributed to attendees at all AASP/MA events

-Your promotional -Your promotional -Your promotional materials can be materials can be materials can be distributed to distributed to distributed to attendees at all attendees at all attendees at all AASP/MA events AASP/MA events AASP/MA events

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New England Automotive Report May 2020 15

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New England Automotive Report

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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.

Mattie Volkswagen 80 William S. Canning Blvd.

Fall River, MA 02771 800-678-0914 fax: 508-730-1283

Lia Volkswagen 140 Elm Street Enfield, CT 06083 860-698-6890 fax: 860-265-7840 www.liavw.com

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

Volkswagen of Hartford 133 Leibert Road Hartford, CT 06120 Direct Parts: 860-543-6012 fax: 860-728-4408 email: ebautista@vwofhartford.com

Mastria Volkwagen 1619 New State Highway Raynham, MA 02767 Toll Free: 888-581-1146 Direct Parts: 508-802-9955 fax: 508-802-9966 email: vwparts@mastria.com www.mastriavw.com

Balise Volkswagen 525 Quaker Ln. West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com

One Call, One Truck for Eleven Brands!

“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2020 Volkswagen of America, Inc.

New England Automotive Report May 2020 17

[LOCAL] NEWS

Emergency ADALB Advisory Ruling Changes Personal Inspection Threshold At an emergency teleconference held March 26, the Auto Damage Appraiser Licensing Board (ADALB) voted 3-2 to pass a special Advisory Ruling – proposed by Board member Peter Smith and amended by Board member William Johnson – that temporarily waives the requirement of personal inspection of motor vehicle damage in cases where the amount of loss, less any applicable deductible, is under $3,000. This amount represents an increase from the $1,500 threshold established in current state regulations. The Advisory Ruling was issued in response to Governor Baker’s State of Emergency declaration in Massachusetts as a result of the coronavirus pandemic. The text of the Advisory Ruling is as follows: ADVISORY RULING The Auto Damage Appraiser Licensing Board (Board) has passed a motion, temporarily waiving the requirement of “personal inspections” of motor vehicle damage where the amount of the loss, less any applicable deductible, is up to $3,000.00, as required by 212 CMR 2.04(1)(a), which provides in relevant part: (1) Conduct of Appraisals (a) Assignment of an Appraiser. Upon receipt by an

insurer or its agent of an oral or written claim for damage resulting from a motor vehicle accident, theft, or other incident for which an insurer may be liable, the insurer shall assign either a staff or an independent appraiser to appraise the damage… However, the insurer may exclude any claim for which the amount of loss, less any applicable deductible, is less than $1,500.00.

The Board reminds licensed appraisers that any review of motor vehicle damage must be conducted in a manner in consideration of the safe operation of the motor vehicle and they have a duty to notify consumers when a motor vehicle is unsafe to operate. This Advisory Ruling shall be effective upon posting on the Auto Damage Appraiser Licensing Board public website. The Advisory Ruling will terminate in accordance with Governor Baker’s determination that the State of Emergency no longer exists or by the Board posting such notice on its public website, whichever event occurs earlier.

Failure to comply with this ruling could result in fines and penalties as provided for by law.

Smith’s proposed Advisory Ruling had originally called for a threshold of $5,000, a figure that received

Continued on page 45

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New England Automotive Report

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Contact these Ford or Lincoln Mercury dealers for all your parts needs: Imperial Ford 6 Uxbridge Road Mendon, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 Call us for your wholesale parts needs

Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475 Balise Ford of Cape Cod 90 High School Rd. Ext. Hyannis, MA 02601 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com

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© 2019, Ford Motor Company New England Automotive Report May 2020 19

It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards.

In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it.

For Genuine Honda parts, contact these Authorized Honda dealers.

Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com

Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com

Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com

Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com

Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com

20 May 2020

New England Automotive Report

Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com

Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com

Balise Honda 400 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!

Balise Honda of West Warwick 509 Quaker Lane West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!

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· Fax or emailing your order will speed processing and delivery to your location. © 2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

New England Automotive Report May 2020 21

[LOCAL] NEWS By Alana Bonillo

AASP/MA’s Papageorg Discusses COVID-19, Consumer Safety on WGBH AASP/MA Executive Director Evangelos “Lucky” Papageorg recently made a guest appearance on the WGBH radio program “In It Together” to address the Commonwealth and surrounding New England area on how the COVID-19 pandemic is affecting auto body shops and what can be done to safely repair cars at this time.

While auto body, mechanical shops and industry suppliers have been declared essential businesses and are allowed to remain open, Papageorg explained that likely 25 to 30 percent of shops may have chosen to close or cut back on hours for the time being due to a decline in work.

“The thing to keep in mind is that there were vehicles already either in the pipeline being repaired or had appointments scheduled...but

what has happened is with the diminished number of people on the road, there are fewer incidents of accidents and things of that nature happening mechanically as well.”

With the need for social distancing coming into play, Papageorg says shops have had to implement a number of new measures to keep employees and the motoring public safe.

“We’ve all had to put in different methods of handling customers. A lot of mechanical and auto body shops have started to offer pick-up and delivery. An added step to the procedure of taking in a vehicle now involves the disinfecting of that vehicle 22 May 2020

New England Automotive Report

Continued on page 41

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.

HERB CHAMBERS HYUNDAI 735 Southbridge Street Auburn, MA 01501 TOLL FREE: 800-767-1898 FAX: 508-832-6026 EMAIL: pobrien@herbchambers.com www.herbchambershyundaiofauburn.com

BOCH HYUNDAI 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210 bchwholesale@boch.com

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New England Automotive Report

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Remembering

[LOCAL] NEWS

BRIAN DUFFY

The AASP/MA community is mourning the loss of Brian Duffy, a longtime sales manager for LKQ Corporation and supporter of the association who passed away April 1 at the age of 60.

An active industry participant for more than three decades, Brian was a regular at the AASP/MA Golf Outing and other industry events.

“I had the distinct pleasure of

26 May 2020

New England Automotive Report

Brian Duffy (second from right) during the 2015 AASP/MA Golf Outing knowing Brian for nearly 30 years,” comments AASP/MA Executive Director Evangelos “Lucky” Papageorg. “He was not only a business colleague, but a close friend. For Brian, it was more than just about the business; he cherished all his relationships and was always at the ready with a great and welcoming

Continued on page 46

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MCGOVERN CHRYSLER JEEP DODGE RAM 777 Washington Street Newton, MA 02460 Order Hotline: (800) 741-7563 www.clarkandwhiteautos.com For the best customer service ask for Mando Bogosian PREMIER CAPE COD 460 Yarmouth Road Hyannis, MA 02601 Order Hotline: (888) 927-8261 Fax: (508) 778-0900 www.premiercapecod.com QUIRK AUTO DEALERS 115 E. Howard Street Quincy, MA 02169 Order Hotline: (877) 707-8475

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28 May 2020

New England Automotive Report

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New England Automotive Report May 2020 29

[NATIONAL] NEWS

Beating Quarantine: National Industry Groups Provide Educational Resources and More

0

With coronavirus forcing the postponement or cancelation of a number of regional and national industry events, a number of entities are working to provide a host of resources to assist repairers as they continue to experience unexpected downtime.

I-CAR has made its Reparability Technical Support (RTS) Portal (rts.i-car.com) free to users through May 31.

The RTS Portal provides comprehensive collision repair technical resources to technicians, appraisers, shop owners and managers, including reference tools for airbag and partial part replacements, OEM-specific repair information and access to real-time Ask I-CAR technical support.

As reported in last month’s New England Automotive Report, the 2020 NORTHEAST® Automotive Services Show has been rescheduled to August 21-23 at the Meadowlands Exposition Center in Secaucus, NJ. Hosted by AASP/New Jersey with education presented by the Washington Metropolitan Auto Body Association (WMABA), NORTHEAST will feature three days of national-level speakers and seminars, hundreds of

Make Quality Your Goal.

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Contact these select dealers for assistance and delivery of your Kia Genuine Parts.

Bald Hill Kia 1021 Bald Hill Road Warwick, RI 02886 Parts Direct: (800) 822-3015 www.baldhillkia.com Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: (877) 707-8475

Balise KIA 603 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!

industry exhibitors, on-site equipment demonstrations and more. Regular news and updates on NORTHEAST, the largest regional show of its kind in the country, are available at aaspnjnortheast.com.

Despite having to reschedule its Annual Elections and Repairer Roundtable to Philadelphia this July, the Society of Collision Repair Specialists (SCRS) is still actively providing critical content to the inter-industry. These include educational videos from the most recent SEMA Show and other events available on the official SCRS Facebook page (facebook.com/SCRSCollision).

Additionally, SCRS Corporate Member KPA has published a free online guide, “How Employers Can Manage Coronavirus Anxiety and Safety” (available at kpa.io), for the benefit of industry members and non-members alike.

SCRS has also provided a special online directory of industry-related COVID-19 resources at scrs.com/covid19-resources.

Although the next meeting of the Collision Industry Conference (CIC) won’t be held until this July in Philadelphia, PA (after the cancelation of its April meeting in Jacksonville, FL), CIC attendees and other industry members are encouraged to watch the guest presentation by Matthew and Marcia Seebachan, the Texas couple behind the multimillion-dollar lawsuit against John Eagle Collision Center of Dallas, from the November 2019 CIC at the Collision Industry Conference YouTube page. The 34-minute video offers an educational and emotional examination of the need for industrywide adaption of OEM-approved parts and procedures. More information on CIC is available at ciclink.com.

The Specialty Equipment Market Association, the organization behind the annual SEMA Show in Las Vegas, has launched a comprehensive online COVID-19 page (sema.org/corona-updates) for automotive industry members and enthusiasts. In addition to links to federal loan programs and state-by-state “essential” business updates, the site features free webinars to help businesses better navigate through the issues caused by the pandemic. As of this writing, this year’s SEMA was still scheduled to be held November 3-6 at the Las Vegas Convention Center.

Closer to home, the Members Only portal of the AASP/MA website (aaspma.org) includes valuable information on how Massachusetts repair facilities can take advantage of the Coronavirus Aid, Relief and Economic Security (CARES) Act to keep their doors open during the pandemic. The portal also features videos of Auto Damage Appraiser Licensing Board (ADALB) meetings, ADALB Advisory Rulings and links to various forms, statutes, regulations and administrative authorities pertaining to the auto body industry.

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MASSACHUSETTS

30 May 2020

New England Automotive Report

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Contact these Nissan dealers for all your parts needs: Mastria Nissan 1305 New State Highway Raynham, MA 02767 Direct Toll Free: 800-248-2458 Direct Fax: 508-802-6118 E-mail: parts@mastrianissan.com Web: www.mastria.com

Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940 Toll Free: 800-698-9280 Fax: 781-598-8026 E-mail: BSherman@Kellyauto.com

Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: mbosma@kellyauto.com www.kellyauto.com

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

Balise Nissan of Warwick 1350 Post Rd. Warwick, RI 02888 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!

32 May 2020

New England Automotive Report

New England Automotive Report May 2020 33

[COVER] STORY

The Strength to Survive: AASP/MA Members Rise above the Crisis

Note: This article represents current information as of our press deadline of April 14. We encourage our readers to follow the Center for Disease Control (CDC) and state and municipal news for the most up-to-date information on the coronavirus response in your area.

This has not been the spring any of us could have imagined.

As the nation continues to grapple with the coronavirus pandemic – and the severe effect it has had on businesses in the Commonwealth and beyond – the auto body industry is one profession that is standing strong despite unexpected (and at times immeasurable) obstacles.

While the pandemic has had a substantial impact on all facets of the collision repair industry, many businesses within the Massachusetts community are keeping their doors open while doing all they can to assist others.

As luck would have it, AASP/MA Secretary Gary Cloutier (Cloot’s Auto Body; Westfield) had purchased nearly 40 boxes of gloves at an auction long before the crisis began. When it began clear that these items would be needed in his community, he quickly donated several boxes to Baystate Noble Hospital, the Westfield Police Department and all three fire stations in town. He also made sure to give his employees an extra supply for their use in and out of the shop.

“Everybody stops and gets gas, but you don’t think about how many people have touched that pump or keyboard. So, now when we get gas or go to Costco, we throw a pair of gloves on.”

Fortunately, those gloves are being used more than anticipated these days on the shop floor. As of early April, Cloutier still had a two-week backlog of work with very few cancelations.

“It is slowing down a little bit, but we still do have people coming in.”

In addition to this steady work, Cloutier and his crew have been keeping busy by working on the 1941 Divco milk truck he acquired three years ago. The “super-unique piece” has been

By Joel Gausten providing the shop something fun to do to keep up morale. The truck will eventually feature the Cloot’s Auto Body logo and serve as a fun promotional opportunity once things eventually even out.

Over in Braintree, Rainbow Supply, Inc. has donated between 2,500 and 3,000 N95s and P100 masks to area first responders in addition to keeping its own operations moving forward.

“We’ve certainly stepped up the cleaning and maintenance of the building and vehicles, and we’re taking advantage of the extra time to re-inventory our product lines,” says owner Rob Knight. “We’ve stocked up on anything we can think of that is probably going to be affected with anything to do with PPE.” Knowing that it will be quite some time before shops will be able to restock their businesses with the essential PPE to keep their employees safe, Knight has developed a possible short-term solution for the shortage of N-95 masks for those shops that remain open at this time. One of the services Rainbow provides is cutting spray booth filters to fit. As such, they have a supply of scrap stock as well as rolls of material on hand. The filter material can be cut to fit and placed in the cartridge portion of disposable respirators that most shops already have a supply of. The same process may be used in respirators with replaceable charcoal cartridges.

“It’s a five- to seven-micron filtration, so it’s going to stop any dust,” explains Knight, who has sent out samples to some shops to consider for when their current supplies run low. “I just figured that we could very easily cut that material to the size of a cartridge on a respirator and use that for the pre-filter on the mask.”

Knight is quick to stress that this is not an approved modification, nor is it intended to stop the spread of COVID-19. It is only intended for particle and dust filtering use during the sanding process. However, it is a possible way to free up what N95 masks may be available for a shop to donate to those in immediate need. Rainbow Supply, Inc. has offered to help other distributors if they are in need of the necessary materials and can be reached at (781) 848-1116.

As shops and industry vendors continue to approach their business day to day, AASP/MA has worked hard to keep its membership informed with almost daily updates on how industry members can weather the escalating storm. One of the most these critical announcements shared guidelines from Nissan North America on how to properly disinfect touchscreens and radios in vehicles: 1. Using a mixture of ~70% Ethanol and ~30% water, spray a small amount of solution onto a lint-free microfiber cloth, such as one used for cleaning glass, and gently wipe the contact surfaces of the touchscreen.

It is also okay to wipe painted surfaces such as buttons and knobs. a. Note: Do NOT spray the solution directly onto the display or radio, as liquid could enter the unit and cause damage.

2. After Step 1, using a new dry cloth, gently go over all contact surfaces again to remove any remaining residue.

The following materials should not be used: · Acids (hydrochloric acid, sulfuric acid, vinegar, etc.) cause damage to the coating layer. · Any kind of alkaline surfactant (soap, detergent, etc.) causes damage to the coating layer. · DO NOT use organic solvents other than ethanol. · Be careful when wiping not to scrub too vigorously, which could deteriorate the paint and coatings.

With Massachusetts shops now taking greater precautions in keeping customers’ vehicles clean, the association is committed to ensuring that these procedures – which are not factored into published database work times – are acknowledged and paid for by insurers. With reports coming in that some carriers were already balking at paying for vehicle disinfecting, AASP/MA took action on April 2 by sending a letter to Governor Baker calling for his immediate attention to the matter. The letter reads in part: As part of our function in estimating and repairing collision-damaged vehicles, we place ourselves in harm’s way, as there is no way to know if a vehicle carries the COVID-19 virus. We are taking every precaution by minimizing direct contact with vehicle owners, etc. The first line of defense we have other than the wearing of PPE is to properly and thoroughly disinfect every vehicle which we come in contact with before and after the repair is completed. This additional procedure required is a direct cost of repair of the vehicle. As such, it should be covered by the insurance policy sold to the vehicle owner.

AASP/MA is requesting that your office contact the Division of Insurance demanding that they issue a mandate to ALL insurers that they cover a reasonable amount of time and materials for the proper disinfecting of ALL vehicles which a collision repair shop comes into contact with while we all work to stem the spread of COVID-19. In this time of crisis, insurers must put the public’s safety ahead their desire for increased profits at the expense of collision repairers in Massachusetts.

Continued on page 46 New England Automotive Report May 2020 35

36 May 2020

New England Automotive Report

EXECUTIVE DIRECTOR’S MESSAGE Continued from page 13

take I-CAR and other forms of continuing education courses.

For those shops that do get approved for stimulus packages, this is a great way to keep your employees working and bettering themselves while making your business eligible for “forgiveness” for portions on the loans being offered.

For those of you who are members, please review the Members Only portal and become familiar with the tools that are available there. If there is anything you would like to see added, please provide our office with your suggestions. If you know someone who would benefit from becoming a member, please encourage them to join now.

AASP/MA has been providing information to our members regarding all facets of the current situation. The association is connected to AASP National and many others with whom we exchange information and ideas.

This information is valuable now more than ever. If you are not an AASP/MA member, there is no better time to join than now. If you have any questions as a nonmember, please feel free to contact our offices or myself directly.

I hope that we all stay safe and healthy and not only survive, but get through this time of adversity stronger and better than we went in. Remember, collision repairers such as yourselves are an important “essential” link in the automotive industry and deserve to be treated as such. We are all worth it!

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1.800.292.RIMS (7467) New England Automotive Report May 2020 37

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YES Please list my business as an AASP/MA member in good standing on the AASP/MA website for consumers to consider using for the collision repairs and assistance with the claims process.

I understand this is a member benefit (_________ initials Date ___/____/2020) !

!

LY;+8;!;:HY=8;!L+X";:?!O9?Z!X=7>!";"6;>8Z9L!+LLY9H+?9=:!

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31%!($(&$%-#,.!:6$-!?@?@A?@?B!)-!.%17,:$:!31%!,2!+#,-!012+%)0+C!!

D;$(&$%-#,.!E6$-!)%$!31%!)!+4$/7$!(12+#!.$%,1:!01(($20,2F!12!'16%!)22,7$%-)%'!(12+#!13!($(&$%-#,.C! !

"#$!%&'&%!

38 May 2020

New England Automotive Report

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40 May 2020

New England Automotive Report

[LOCAL] NEWS

Continued from page 22

when taking it into the shop in order to protect the employees. It is then disinfected again when returned to its owner.”

Collision repairers must also deal with the issue of finding out if insurers will consider this disinfecting a payable step in the repair process.

“There have been many insurance companies that have added disinfecting to what they cover, but there are still some other companies that are balking at it and not considering it part of the repair process.”

Papageorg explained that many businesses have also turned to sending their customers the paperwork to authorize repairs electronically in order to eliminate any contact. It’s recommended that vehicle owners wipe down their vehicles before they are picked up for repair.

Most shops have adopted the practice of bringing along disinfecting materials as well as gloves and N95 masks to protect themselves and prevent the spread of the virus.

During his appearance on WGBH, Papageorg offered advice for consumers who may be concerned about the condition of their vehicles sitting unused during this long quarantine period. Gas can go bad by sitting idle; therefore, he recommended putting in a fuel additive. He

also put an end to the myth that starting the vehicle’s engine every few days will save the car’s battery. He advised that this is not a good practice, as running an idle vehicle can diminish the battery’s voltage. Taking the car for a solo short drive is a much better idea “There have been many and is also a good way insurance companies that to practice social have added disinfecting to distancing. what they cover, but there “As a good rule of are still some other thumb, if your companies that are balking at it and not considering it vehicle has been part of the repair process.” sitting for some time, you want to make sure you take a walk around the outside of your vehicle and look at your tires.

They will lose air just sitting there due to the nature of the rubber and air getting out.

“If you haven’t driven for a while, you may want to pull the car back or forward far enough to check underneath and make sure there aren’t any water or oil leaks that may have developed,” he added.

To listen to the full “In It Together” broadcast on WGBH, visit aaspma.org/in-it-together.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

New England Automotive Report May 2020 41

[LEGAL] PERSPECTIVE

The Upside of Being a Collision Repair Shop in Massachusetts As an attorney, I’m usually contacted by people when they have a problem. They rarely reach out when they have good news. In dealing with collision repair shops, I often hear about how some insurance company is refusing to pay for some necessary procedure or refusing to pay enough for the overall repair – or how a customer took their claim check and abandoned their car at the shop. I also often hear about how some customer is threatening to sue a shop for problems with their car that have nothing to do with the repairs that were made. How are repair shops supposed to make a living here with the restrictive laws and regulations in this state and when insurers pay such low rates for repairs?

Well, the truth is that things are not always so bad in this state. In fact, while all businesses have their own difficulties, many repair shop owners have found themselves in a business that gives them great satisfaction and have somehow found a way to make a good living here. I do not want to downplay the problems that exist within the industry, but from a legal perspective, there are many good things about being a collision repair shop in Massachusetts. Here are some of them.

1.The Auto Damage Appraiser Licensing Board (ADALB) Yes, I do hear complaints that the ADALB is ineffective, slow to act and has regulations that do not go far enough. However, please recognize that the Board, their governing statute and their regulations provide some protections that do not apply in other states. I have seen how many of those protections have gotten positive results for my clients over the years.

The original ADALB statute was drafted by the collision repair industry and served to try to make sure that people who were engaging in auto damage appraisals at least had some degree of competency. Prior to the establishment of the ADALB, almost anyone could get an appraiser’s license from the Division of Insurance. There was no testing, and there were no standards. Further, insurers could engage in direct referral of their claimants to favored repair shops with no restraints. While some of the protections of the original statute have been whittled away, it does still assure that licensed appraisers in this state have some knowledge of what is needed to repair a car and that there are at least some limitations on direct referrals.

While it may appear that the ADALB is hesitant to take action against licensed appraisers against whom a

valid complaint is made, in my experience it is not always that simple. I have represented many collision repair industry appraisers before the Board, and whether or not any penalty was ever assessed against them, the proceeding itself has always had a profound effect on them and made them think twice about how they conduct themselves.

I also have been told the same thing by attorneys who represent insurance industry appraisers before the Board. Members of the collision repair industry may not have been happy when the ADALB eventually did not take action against an appraiser who seemed to have engaged in outrageous conduct, but in general, the appraiser has had to go through the process and has known that their license and livelihood were at stake.

Meanwhile, the insurers that were paying their lawyers to defend those appraisers often have not been happy with some of the conduct that their appraisers engaged in. Even when the ADALB has done almost nothing, the effect on the errant appraiser has sometimes been more effective than it might otherwise seem. This is not just guessing on my part; I have been told this many times by my counterparts working for the insurance industry.

Moreover, the ADALB statute and regulations provide numerous specific protections for the collision repair industry that do not apply in some other states, even though you sometimes have to fight for what they provide. Here are just a few of those protections: (i) While the regulations do provide some wiggle room, both the governing statute and the regulations generally require an insurance appraiser to leave their appraisal at a repair shop at the time of inspection.

Because of this, a repair shop should be able to know right away what an appraiser is agreeing to pay for. (ii) Both the statute and the regulations require an appraiser to remove a vehicle’s inspection sticker if damages make it impossible for that vehicle to meet inspection safety standards. This has actually meant that a lot more cars get repaired than might otherwise be the case. If you don’t have a valid inspection sticker, then you are driving illegally, so there is a real incentive to get repairs made. To the best of my knowledge, the inspection sticker removal law is unique to Massachusetts. (iii) Repair shop and insurance appraisers are required by regulation to at least attempt to agree on the cost of repair. Although your ability to get a particular appraiser to agree with you may depend on whom the particular appraiser is, there still must be an attempt.

This is unlike some other states, where the insurance

By James A. Castleman, Esq. appraiser gets to dictate what the insurer will pay for repairs without having to consider what the repair shop is looking for. (iv) “With respect to paint, paint materials, body materials and related materials, if the formula of dollars-times-hours is not accepted by a registered repair shop or licensed appraiser, then a published manual or other documentation shall be used unless otherwise negotiated between the parties.” Again, this is something that you may have to fight for, but does any other state have a similar provision written into its statutes or regulations?

2. The Motor Vehicle Damage Repair Shop Registration Statute Not only does this statute provide protection for vehicle owners, but it also helps to assure that collision repair shops in Massachusetts meet certain minimum standards. Enactment of the statute also helped lessen the huge problem of unqualified “backyard” repair shops that used to exist. Making it illegal to get paid to repair vehicle damage unless you are a registered shop, and requiring that insurers make direct claim payments only to registered shops, went a long way to reduce the number of backyard operations – shops that often did not have proper repair equipment, did not properly pay their help and often endangered the lives of the driving public.

What this all means is that a registered shop in Massachusetts can take pride in what it has accomplished by becoming registered. It also means that registered repair shops are competing against other shops that have similar obligations and similar costs of doing business. Registered repair shops in Massachusetts do not have to worry as much as shops in some other states about competing with fly-by-night operators who are able to undercut prices at the cost of unsafe and unreliable repairs.

3. The Direct Payment Regulations I can already feel the barbs being thrown at me from some of you, but the truth is that the Direct Payment Regulations – which govern what insurers must do to have an approved plan for settlement of auto damage claims – do have some protections for repair shops.

As an example, an insurer is generally required to pay all auto damage claims within five days of completion of an appraisal, and that payment must be in cash or by “negotiable instrument.” This does two things for repair shops. First, it assures that the claimant should have their payment in hand before repairs are completed so that there is money available to pay the shop. Second, since the payment is required to be made by “negotiable instrument” (no insurer ever pays in cash), it means that an insurer can never say that its payment is being tendered as payment in full.

So, an insurer is always going to be on the hook for legitimate additional charges related to the repair

(except only when there is an agreed “contract” repair).

I doubt that many repair shops have any idea about this concept, but to lawyers, it is a critical element of a claim payment that always allows for further dispute as to whether the amount is adequate. And this requirement does not apply to claim payments in every state.

There are also some protections in the “Referral Shop” provisions of these regulations, even though some insurers have done their best to try to skirt some of them. Among these provisions are the following: (i) No insurer can ever insist that its insureds’ repairs be made at one particular repair shop. While you all know that some insurers do their best to try to steer customers to particular shops, the law is still clearly on the books that no insurer “shall require a claimant to have repairs made at any specific repair shop.” (ii) It is still in the regulation that insurers are required to provide claimants with lists of all registered shops, although it may indicate at least five geographically convenient shops on the list that are its referral shops. However, “[a]n insurer shall not provide a separate list containing only its referral shops.” Again, insurers try their best to skirt this, and the Commissioner of Insurance has often seemed to turn his head the other way regarding this requirement. Yet, it is still there. (iii) An insurer cannot discriminate when determining which shops it will accept as referral repair facilities. Essentially, an insurer must accept all shops as referral shops if they meet certain fairly straightforward requirements, ask to be a referral shop and agree to repair the insurer’s claimants’ cars for the amount of the insurer’s claim payment plus any agreed supplement.

While insurers have done their best to try to avoid some of these requirements, all of them are still there, and they certainly do not exist in many other states.

Conclusion Running a collision repair shop business in Massachusetts is not always easy. Like all businesses, the collision repair industry has its challenges. But there are some advantages to operating a repair shop here that you should be aware of. And during most winters here, we also get our share of what one shop owner I know used to call “white gold” – snow that just lightly covers the roads, encouraging Massachusetts drivers to speed along thinking that conditions are much safer than they are. That’s certainly not an advantage that repair shops have in Florida.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 4723424 or at jcastleman@prclawoffice.com.

New England Automotive Report May 2020 43

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[LOCAL] NEWS

Continued from page 18

opposition from Johnson (who suggested $3,000) and Board member Rick Starbard (who recommended the amount be lowered to $2,500). A letter submitted to the Board by Alliance of Automotive Service Providers of Massachusetts (AASP/MA) Executive Director Evangelos “Lucky” Papageorg also voiced concerns over the originally proposed $5,000 threshold: “Any amount higher than a potential of $3,500 risks leaving consumers in vehicles which may not be roadworthy and therefore unsafe to the rest of the motoring public.”

As stated in the Advisory Ruling, the new $3,000 threshold will remain in effect until terminated “in accordance with Governor Baker’s determination that the State of Emergency no longer exists or by the Board posting such notice on its public website, whichever event occurs earlier.”

“All in all, this was a ‘win’ for the collision repair industry,” comments Papageorg. “It gives us a fighting chance to continue servicing our customers in need of insurance-related repairs and guaranteeing that they can be accomplished in a timely fashion under the current State of Emergency. It also reinforces the fact that the collision repair industry is truly an ‘essential’ cog in the wheel, and we should be proud as an industry as to the role we play!”

A recording of this emergency ADALB meeting is available through the Members Only portal of aaspma.org. Members are strongly urged to listen to the recording to clearly understand what the Advisory Ruling means and the ulterior motives behind the language that was originally proposed.

During another ADALB teleconference on April 9, the Board voted to allow a 90-day extension past the date of termination of the state of emergency for the renewal of motor vehicle damage appraiser licenses for licensees in good standing that have expired or would expire during the state of emergency period. Additionally, the Board approved a motion submitted by Johnson to “temporarily waive the requirement until September 1, 2020 for applicants for a motor vehicle damage appraiser license to attend a Board-approved course of instruction in motor vehicle damage appraising as a condition to take the Part-I written portion of the motor vehicle damage appraiser test.” The Board also approved an addition to the motion that allows those who can demonstrate they have completed the majority of their courses prior to their postponement to take the Part-I exam if they felt comfortable doing so.

The next in-person ADALB meeting is currently scheduled for May 19 at the Division of Insurance in Boston.

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New England Automotive Report Sales Director Alicia Figurelli (973) 667-6922 alicia@grecopublishing.com

MASSACHUSETTS

New England Automotive Report May 2020 45

[LOCAL] NEWS

[COVER] STORY

Continued from page 35

Continued from page 26

AASP/MA members were also provided with a download of the letter for them to fill out with their names and send to the Governor and/or representatives in their area.

Amidst the growing concern and confusion surrounding the pandemic came the arrival of the Coronavirus Aid, Relief and Economic Security (CARES) Act, a government stimulus package aimed to keep small businesses like collision repair facilities operational and profitable. In early April, AASP/MA provided members with information on the Act via a special Zoom webinar, “Small Business Loan Programs Under the New Federal CARES Act,” hosted by Phillips Garcia Law in Dartmouth. Using its own business as an example, the law firm explained the loan process and the steps needed to determine eligibility. (The Small Business Owners’ Guide to the CARES Act is now available in the Members Only section of aaspma.org.)

Although the final word on this unexpected and challenging time in history has yet to be written, the collision repair community is working hard to overcome the difficulties ahead. If there’s one profession with the will to keep going while keeping customers safe and secure, it’s this one.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

smile. Although we were at opposite ends of some issues due to the nature of our industry agendas, Brian was always there to give support to the collision and automotive industry. He and his sales staff would attend association events and meetings and were there in force to support the recent Right to Repair legislative hearings. It is true when they say, ‘Only the good die young.’ Brian will be sorely missed by all those he ever came in contact with. May his memory be eternal.”

Brian is survived by his wife, Cheryl (Moser) Duffy; daughter, Erin Robins; son, Ryan; grandchildren Ryan and Brooke; sisters Robin, Joanne, Maura, Shauna and Sharon; sisters-inlaw Judy Matthews and Linda Marini; and numerous nieces, nephews, great-nieces and great-nephews who loved him dearly.

AASP/MA and New England Automotive Report offer Brian’s family and friends our deepest condolences.

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46 May 2020

New England Automotive Report

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New England Automotive Report May 2020 47