New Jersey Automotive June 2020

THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (WWW.AASPNJ.ORG) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

JUNE 2020 $5.95

ROUND

1

Shops & Insurers

COME OUT SWINGING Over COVID-19

X Bigger, Better, Stronger X A ASP/NJ Vir tual Meeting Recap X Picking Apar t “Prevailing Competitive Price”

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4 | New Jersey Automotive | June 2020

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6 | New Jersey Automotive | June 2020

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

CONTENTS 10 12

VOLUME 50 NUMBER 6 | June 2020

OUT OF BODY AND (MECHANICAL) EXPERIENCES PRESIDENT’S MESSAGE

16

EXECUTIVE DIRECTOR’S MESSAGE

46 NJA ADVERTISERS’ INDEX

SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com

LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.

BOARD Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com

20

Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com Sam Mikhail, Prestige Auto Body 908-294-1985 /prestige@goldcar.us Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com

Tortious Interference with a Prospective Business Relationship or Contract

LOCAL NEWS

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com

22

Former AASP/NJ President Tommy Lee Passes

BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

26

AASP/NJ Virtual Meetings Provide COVID-19 Guidance by Alana Bonillo

32

Amato Insurance Agency and AmeriTrust Group Announce “Economic Relief Payment Plan” for AASP/NJ Members

34

Harbortouch Offers Free “Contactless” Terminals for AASP/NJ Members

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

COVER STORY by Joel Gausten 38

26

38

Round One: Shops & Insurers Come out Swinging over COVID-19

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 © 2020 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.

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 | June 2020 | 7

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Lean on Me

OUT OF BODY (AND MECHANICAL) EXPERIENCES by THOMAS GRECO, PUBLISHER

A

s I write this column on May 17, our state is slowly but surely reopening. I’m not going to say whether I think it is too slow or not. I do know that my gut tells me that something isn’t right about all of this.

Yet, my age and my heart disease also tell me maybe it might be. I really just don’t know, nor am I qualified to make an expert judgment on it. So, I won’t. All I can do is pass on this little bit of hope: On Friday, I took a ride down the Garden State Parkway around 5:15pm. And for the first time in my life, I was happy to see bumperto-bumper traffic. I took the picture shown at right and texted it to a body shop owner friend.

I said, “This industry will pick up sooner than we think.” From my lips to God’s ears…

For years, I have been telling you all how ashamed of what my chosen

field (journalism, in case you were fooled by these columns. LOL!) has become. The COVID-19 crisis has only enhanced my shame. At the beginning of this, I was like most of you: Watching and reading everything I could. But I quickly realized that the “facts” being presented depended on what news source I chose. As each day went by, I limited my search more and more until I decided just to stick with what was happening in New Jersey. Since probably the beginning of April through today, I have read NJ.com’s reports on the Governor’s press conferences and our town’s daily email updates. And that’s it.

NJ.com is hardly a balanced news source. Let’s face it, neither is our Governor.

But Page 1 call me naïve; I wanted to believe that during a health crisis like this, all politics would be put aside for the greater good. That went

out the window pretty fast. Now, like every goddamn thing in today’s world, COVID-19 has become a political football for the press and the politicians. People are dying.

Businesses are dying. And yet they, us, we, fight. Because you hate Donald Trump? Because you hate Nancy Pelosi? Sorry, but if I lose my business or someone I love gets sick, I won’t give a fuck who the President is.

Yet, the biggest proponent of all this division is the press. I see it every day when my homepage comes up on my computer. On that page, I have

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news feeds from several sources.

And every headline on every damn one of them for the last three months has made me sick to my stomach.

And it’s the same for NJ.com. If there are 10 headlines on their homepage, 10 of them are going to depress you.

I’m sorry, make that nine. For the last month or so, they have added something like this: “Our incredible coverage of high school sports needs your support.

Here’s how you can help us today.”

It’s pretty funny; up to a week ago, the headline said nothing about sports. It said something more like, “Our incredible journalism needs your support. Here’s how you can help us today.”

Every day, I would see that headline right below the one on the Governor’s press conference. And every day, it would piss me off. So, I decided to send the editor an email.

(OF COURSE I did.)

“As a longtime subscriber to the

Star Ledger and a journalist for over 40 years, I find your repeated begging for subscriptions desperate and predictable, much like your company’s reporting has become over the last two decades.

Since I was a child, my family subscribed to the Star Ledger. It was THE standard for balanced, nonpartisan journalism in New Jersey.

Forget The Record or the Herald News or the Asbury Park Press; the Ledger was always the definitive word for the first five decades of my life.

But around the turn of the century, the paper made a slow but obvious turn to the left. I stayed true for as long as I could but canceled my subscription several years ago.

I am a registered Democrat. But I don’t vote – nor do I write, read or think – red or blue. It saddens me that “our” industry has become one in which it is impossible to believe anything anymore. Truth is no longer a term associated with any form of media, whether it’s NJ.com, the Star

Ledger, CNN, Fox, the Daily News, the New York Times or the New York Post.

I understand what you’re doing. I publish print magazines. We are a suffering industry just as the newspaper business is. Yet, I don’t alienate half my readers. And I certainly wouldn’t ask them for money if I did.

You want to survive? Here’s a novel idea. How about not taking sides except on the Op-Ed page?

How about not writing articles that inspire hate, anger or guilt all the time? How about just reporting the news without the typical snide comments or partisan viewpoints?

Your editorials must run 90-10 percent liberal to conservative. Why would I want to contribute to a “news” organization that is so one-sided?

Why not try and move to the middle where the vast majority of us are?

If you worked for the news organization of Jerry Izenberg or

Continued on page 41

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PRESIDENT’S MESSAGE by JERRY MCNEE

W

Bigger, Better, Stronger

e’re now several weeks into dealing with the coronavirus pandemic, and there isn’t a single business in the automotive industry that isn’t feeling the effects to some degree. We all want to come out of this situation bigger, better and stronger, but the sad fact is that this won’t be possible for everyone. Some operations will be moving forward with severe impacts to their employee base and bottom lines, while others will likely never open their doors again.

Those of us who have been able to survive have an opportunity to make this one of the best times we’ve ever experienced in this industry. How is that possible? Well, if recent events have taught us anything, it’s that we can all do a better job of preparing for unexpected times that put our future at risk. I hope what I’m about to say will inspire you to step up in this regard like never before.

If you’re in this business, you’ve no doubt heard the phrase “key performance indicators [KPIs]” thrown around.

But how many shops truly know the difference between a great KPI, an average KPI and a miserable one? For example, what are you producing per hour? What are your

paint hours per RO? How about your hard cost percentages? Do you really know what a good severity number is? (By the way, severity doesn’t include sales tax.)

Beyond that, what is your gross profit? When I talk with fellow owners, I’ll sometimes hear a severity number that sounds great, but would you rather have a 47 percent gross profit at our average hourly Labor Rate or a 30 percent gross profit at a rate that’s more than double that amount? Numbers are just numbers unless there is some real research behind them.

I’ve written several President’s Messages in this magazine about the importance of knowing your numbers.

I don’t keep repeating this because I’m an expert; I’m far from perfect and am always learning new things myself.

But about 17 years ago, I made the decision to really focus on true KPIs and the meaning behind the numbers in front of me. I realized I had been giving away more things for free than I imagined. After being hit by this huge dose of reality, I was better able to gauge where I was and where I needed to go. I learned that it doesn’t matter how much Continued on page 41

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12 | New Jersey Automotive | June 2020

Mazda of Lodi 130 Route 46 East Lodi, NJ 07644 Phone: 866-716-0511 Fax: 973-594-4933 www.mazdaoflodi.com

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14 | New Jersey Automotive | June 2020

The “Prevailing Competitive Price” is “the Big Lie”!

EXECUTIVE DIRECTOR’S MESSAGE by CHARLES BRYANT

G

ive me a break!

I simply can’t take it anymore without speaking out.

Insurers are constantly saying they will only pay the “prevailing competitive price” for labor or the “prevailing Labor Rate” when a dispute arises on what a collision shop will be paid for repairs to a damaged vehicle.

Based on these statements, one would certainly be led to believe that such rates are established by reviewing the Labor Rates posted in collision shops and then either coming up with the average of the rates or determining the rate that comes up the most. Certainly, no one would think that the so-called “prevailing rates” would be established by intimidation, coercion or threats of reprisal. Well, think again!

For well over 20 years, I’ve been running the AASP/NJ Hot Line to allow collision shops to have a place to call and get answers to their questions when an issue arises.

Most of the calls are directly related to a problem a member is facing or dealing with at the time.

I can’t even begin to tell you how many times I have

VISIT

US AT

BOOTH #313

received calls from upset members informing me that an insurer has stated that it will only pay a Labor Rate that is much less than the one the shop has posted in its office for everyone to see. Then comes the statement that I imagine any collision shop owner has heard as many times as I have from an insurer: “We only pay the prevailing Labor Rate; if you don’t accept it, we will just have to move the vehicle over to one of our DRP shops.”

Another one is, “If you don’t accept our Labor Rate, and the vehicle owner insists on having the vehicle repaired at your shop, they will be responsible for anything over our established Labor Rate out of their pocket.” These statements may vary, but the sentiment is always the same.

So, let’s take a look at what happens when a shop decides to fight back and refuses to work for a Labor Rate much less than what it has established as its own.

Most of the time, the insurer will contact the insured and tell them their chosen repair shop is being unreasonable Continued on page 43

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LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.

Tortious Interference with a Prospective Business Relationship or Contract Under New Jersey law, the elements of a claim of tortious interference with a prospective business relationship are: q

a plaintiff’s reasonable expectation of economic benefit or advantage;

q

the defendant’s wrongful, intentional interference with that expectancy;

q

the reasonable probability that the plaintiff would have received the anticipated economic benefit in the absence of interference; and

20 | New Jersey Automotive | June 2020

q

damages resulting from the defendant’s interference.

Additionally, several Third Circuit panels have read in a fifth element: The defendant’s knowledge of the plaintiff’s expected advantage.

Regarding the second element, courts require facts alleging both intent and malice; that is, the harm was inflicted intentionally and without justification or excuse. The relevant question becomes whether the defendant’s conduct was “both injurious and transgressive of generally accepted standards of common morality or of law.”

This is to be contrasted with the tortious interference with contractual relations. Under the model civil jury charges for tortious interference with an existing contract, the law protects those in the pursuit of their livelihood. A person who unjustifiably interferes with the contract of another is guilty of a wrong. The protection of the law is not limited only to those contracts already made; it also protects a person’s interest in a reasonable expectation of economic gain.

In the first instance of tortious inference, there is no contract yet in existence; in the second instance, there is one in place. While both relationships are protected, the proofs involved are different and significantly easier when there is a contract. After proving the interference, then the issue becomes one of damages – both the existence of damages and the quantum (amount) of proof. The difficulty in many of these cases is the presentation and amount of damages. While the inference with a singular contract may be easily proven, it may be the amount of damages that is difficult to prove.

There is no fee shifting in these cases, so the offended party bears their own attorney’s fees and costs.

The potential for punitive damages is always a possibility depending on the conduct of the interfering party.

In order to discuss the potential for a claim of this type of interference, please call me at (973) 228-9900. I can also provide you with various cases and decisions that illustrate the points I’ve discussed in this article. NJA

New Jersey Automotive | June 2020 | 21

LOCAL NEWS

A

Former AASP/NJ President Tommy Lee Passes

ASP/NJ is saddened to report the recent passing of former President Tommy Lee. An industry veteran whose career was highlighted by a stint with DuPont in addition to being a shop owner, Lee served as president in the early 1990s before beginning a new career in the equine industry.

Past AASP/NJ President Edward Day (Collision Restoration; Fairfield) recalls Lee’s tenure in the association as an era of great camaraderie between Board members and other New Jersey industry pros.

“Tommy was part of a group of inseparable people.

That’s how we were; it was a very special time in the industry. Tommy was a great guy and a solid friend; we talked every day for years. He was someone you could trust. He was a good soul, one hell of a painter and a great bodyman. He really knew his stuff.”

“The biggest thing Tommy brought to AASP/NJ was his time and presence,” remembers past AASP/NJ Secretary/Treasurer Peter Cook (Citro’s Auto Body; Pompton Lakes). “He committed himself to attending as many industry events as he could, including NACE when it was still held in Las Vegas. Also, he made it a point to

attend events held by the Garden State Automotive Federation long before they merged with us in the northern part of the state to form what is now AASP/NJ. He was always in the room to participate and help make this industry stronger. His time with the association showed us the importance of stepping up and being involved – which is what AASP/NJ is all about.”

“Tommy Lee became president of AASP/NJ faster than anyone else I can remember,” adds longtime AASP/NJ Board member and New Jersey Automotive Publisher Thomas Greco. “I don’t think he was on the Board very long before he stepped up into the position and did a lot of learning on the job. At first, he was like a deer in the headlights, but it didn’t take him long to fill the leadership role. It was pretty impressive, especially because he couldn’t have been more than 30 years old at the time. Tommy always had interests outside of the industry; he loved music, and I think in his heart he always wanted to be a cowboy. When he sold his shop to get into the rodeo business, none of us were surprised. It was his true passion. He definitely made a mark during his short stint with AASP/NJ. He will be missed.”

NJA

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Audi dealers strive to make you an Au

Installing Audi Genuine Parts from an Audi dealer is priceless to your reputation and your Flemington Audi 213 Route 202/31 Flemington, NJ 08822 Toll Free: 877.657.2787 Fax: 908.782.1795 email: rmuir@flemington.com www.NJPARTS.com

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Classic Audi 655 North Macquesten Pky. Mount Vernon, NY 10552 914.663.2870 Fax: 914.663.2878 email: parts@westchesteraudi.com www.westchesteraudi.com

Paul Miller Audi 179 Route 46 East Parsippany, NJ 07054 Toll Free: 800.35.MILLER Parts Direct: 973.575.7793 Fax: 973.575.5911 www.paulmiller.com

DCH Millburn Audi 2211 Millburn Ave Maplewood, NJ 07040 Toll Free: 800.553.9250 Direct: 973.762.0262 Fax: 973.762.2381 www.dchmillburnaudi.com

Audi Brooklyn 211 63rd Street Brooklyn, NY 11220 Phone: 718.492.6400 Fax: 718.492.8899 rmerchant@audibrooklyn.com www.audibrooklyn.com

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243 Route 17 Upper Saddle River, NJ 07458 201.252.1500 Fax: 201.254.1552 email: tbabcock@jackdanielsmotors.com www.jackdanielsmotors.com

Audi Bridgewater 701 Route 202-206 N Bridgewater, NJ 08807 929.600.9156 Fax: 908.595.0237 email: parts@audibridgewater.com www.audibridgewater.com

Town Motors Audi 400 South Dean Street Englewood, NJ 07631 201.227.6506/6536 Fax: 201.541.0314 www.townmotors.com

New Jersey Automotive | June 2020 | 25

LOCAL NEWS by Alana Bonillo

AASP/NJ Virtual Meetings Provide COVID-19 Guidance A

s a way to answer questions weighing heavily on its members’ minds amid the COVID-19 pandemic, AASP/NJ tapped the legal team at Ansell Grimm & Aaron, PC of Woodland Park to address concerns via interactive Zoom meetings in April.

For the most recent virtual meeting on April 30, attorneys Joshua Bauchner and Rahool Patel led an interactive discussion to help auto body and mechanical shop owners better understand the Payroll Protection Program (PPP) loans, changes in employment law and other pertinent information. They focused on how the PPP loan works, including what qualifies businesses for the loan and how it is structured in relation to employees collecting unemployment.

PPP loans are designed to encourage business owners to restore their headcount, which means that 75 percent of the funding received must go towards paying employees at least 75 percent of their pre-pandemic salary or rehiring them fully if they had been previously laid off.

Many shop owners expressed concern that employees may not want to come back if they are afraid for their safety or if they find they are making more money on unemployment due to receiving an additional 13 weeks of $600 payments on top of the state-funded benefits. If that is the case, Patel and Bauchner explained that a shop owner may need to hire someone else if an employee does not wish to come back in order to retain headcount, which is important towards having the loan be forgivable.

Bauncher advised that it’s also important for shop owners to realize that independent contractors who

26 | New Jersey Automotive | June 2020

receive 1099s are treated differently. (However, those who receive 1099s should qualify for unemployment benefits.)

“Independent contractors are not considered employees, so you may run into issues with that; you can’t consider them employees in order to help the business.”

Patel and Bauchner also noted dramatic changes made to various existing employment laws in the state, all of which are in the favor of protecting employees. They advised owners to get familiar with the laws or consult an attorney or their human resources contact.

During the earlier session on April 16, they provided a more general overview of the PPP loan. Those who applied for the loan can get the equivalent of two-and-a-half times payroll expense for a single calendar month. Patel explained the interest rate of the loan is one percent, the term is two years and no payment needs to be made within the first six months. However, repayment may not be an issue for most, as the loan is forgivable for employers showing proof that 75 percent of the funds are used for payroll, health insurance or retirement account contributions. Employers have eight weeks from the time the funds are received to use the funding as intended by the government.

Additionally, Bauchner shared advice on the topic of insurance and business interruption claims.

“We’ve been advising our clients to file under any policy they have. Don’t be shy. Worst-case scenario, they deny coverage. But if you don’t file a claim, you waive the right to get anything.”

Members also learned about pending New Jersey legislation that could aid business owners who are having a hard time paying rent. This would give tenants the ability to defer rent payments for the time being, allowing them to use any funding they have to pay employees by eliminating the expense of rent. This would not be a forgivable loan, as rent payment would be due at a later time.

Continued on page 29

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2020 BOOTH 327

18 USI Italia Booths and Still Counting at No. 1 Collision

When anyone has a technical question for No. 1 Collision regarding any piece of equipment from a car rack all the way to a paint booth, they ask Facilities and Equipment Manager Milford Cumberland is the person to ask. At the age of 66, he is the old wise man that holds the cards and is the information gatekeeper on every facility, as well as all of its training, tools and equipment.

One of Cumberland’s job at No. 1 is overseeing the acquisition, installation and ongoing maintenance for 18 USI Italia booths. It’s an enormous investment that keeps paying for itself over and over again, and as a result, Cumberland is likely North America’s #1 expert about these Italian-made high-end spray booths.

The No. 1 Collision Centre in Richmond, British Columbia invested $19 million in an impressive 70,000 sq. ft. state-of-the-art location on two acres that is over the top in every way. “We call our facilities the superstars of the industry and our largest one definitely has that ‘wow’ factor,” Cumberland said. “Other shops and many of the OEMs request tours of this shop all the time and fly here from the U.S. and Europe just to see what we’re doing. When they see a dozen USI Chronotechs here set up side-by-side and full of high-end luxury vehicles, they are impressed, no doubt.”

If you walked into any of the No. 1 Collision locations, you’d find primarily Teslas, Land Rovers, Jaguars, Porsches, Mercedes-Benzes, Audis, Volkswagens, MINIs, Ferraris, Maseratis and even a few Rolls Royces being repaired. Certified to work on this impressive assemblage of 10 OE certifications, No. 1 Collision works hard to stay current with the training and equipment required to make this list.

CEO Rob Walker and his brother COO Scott purchased a shop in 1993 and today No. 1 Collision repairs a total of more than 1,0000 cars every month. The Walker Group of Companies have built an impressive business that includes four collision centers in Canada and one in the U.S. This MSO has invested approximately $1 million in its USI booths after acquiring their first one in 2009. When it comes to acquiring any tools, equipment or training, Walker isn’t afraid to pay for value, “We learned rather quickly that trying to cut costs isn’t the best way to go,” Rob Walker said. When we started looking at paint booths, we realized that the European ones were superior and that USI was the best.

Our Chronotechs are like BMWs while some of the others are more like KIAs. We will never buy another type of paint booth, because these have proven to be superior across the board. The technology is unmatched with incredible lighting, better air movement and sturdy construction.”

Cumberland agrees with Walker and is more than willing to expound on the capabilities and advantages of using USI booths, he said. “We are very impressed with the USI direct drive system and their powerful motors (15hp), and everything is tunable on-site. Some paint booths contain cheap components and in the end they’re nothing more than just cargo boxes with lights. A great booth is something you can install and then not worry about it for 20 years and that’s what we have with USI.”

Refinish Technician Ben Yi paints primarily high-end vehicles in a USI Chronotech spray booth at No. 1 Collision.

Whenever he purchases anything, Cumberland makes certain that the support that is both accessible and accountable. “We made sure that the support from USI was going to be strong, and that was one of the many things we considered before acquiring the booths,” he said. “At the very beginning, all of the USI people gave me their phone numbers, which has turned out to be a real blessing. They’re very responsive and you can tell they love what they’re doing. When I call them, especially their tech people, they are more than willing to answer all of our questions. We can’t afford to be down at any time if we want to maintain our reputation. I tell people the sign says No. 1, not No. 2.”

“I always tell people that to succeed in this industry, you should never skimp on things such as air compressors and paint booths,” Cumberland said. “We’ve been very fortunate with USI and now they’re an integral part of everything we do here.”

When it comes to maintenance and upkeep, Cumberland has a huge calendar that tells him what to replace and when with every USI booth. “With 18 of these babies, we have to stay on top of it, so that they will perform at a high level all the time. With USI, we don’t have to replace the filters or the intake and exhaust cubes as frequently as we would with another brand, which gives us another advantage over the competition.”

USI of North America 566 Commerce St. Franklin Lakes, NJ 07417 PH: 201-405-7761 EMAIL: s.moretto@usius.com www.usius.com

Audi Brooklyn

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Audi Brooklyn 211 63rd Street, Brooklyn, NY 11220 Business Hours: Monday - Friday 7:30am - 5:30pm Saturday 7am - 3pm (Deliveries not available on Saturday) Parts Direct: 718.392.6611 or 866.770.5999 Parts Fax: 973.556.1403 www.audibrooklyn.com

28 | New Jersey Automotive | June 2020

Installing Audi Genuine Parts from Audi Brooklyn is priceless to your reputation and your Audi customer’s peace of mind.

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LOCAL NEWS - Virtual Meetings Continued from page 26

AASP/NJ President Jerry McNee (Ultimate Collision; Edison) was grateful for the insight the presenters were able to provide to members as questions continue to be raised by the automotive community.

“As we evolve through this whole process, Josh and Rahool are really keeping everyone up to date and abreast of all the information.”

“Many thanks to Joshua and Rahool for putting on the webinars to inform and assist the members of AASP/NJ,” added AASP/NJ Executive Director Charles Bryant.

“The information was eye-opening and helpful to better understand the many options being made available.

“The association is here for our members during this difficult time, and the AASP/NJ Hot Line is available to answer your questions and assist with issues and problems all day, every day. Stay safe.”

For more information on AASP/NJ, please visit aaspnj.org.

NJA

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Paul Miller Porsche 3419 Route 46 East Parsippany, NJ 973-227-3000 Fax 973-575-8396 paulmillerporsche.com

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2329 RT 22 WEST, UNION, NJ 07083 New Jersey Automotive | June 2020 | 31

LOCAL NEWS

Amato Insurance Agency and AmeriTrust Group Announce “Economic Relief Payment Plan” for AASP/NJ Members

A

s part of its ongoing efforts to assist AASP/NJ members who may be struggling with cash

flow issues and other economic effects of the COVID-19 pandemic, association benefit provider Amato

Insurance Agency has partnered with AmeriTrust Group to offer a new “Economic Relief Payment Plan” for the AASP/NJ Workers’ Compensation Insurance Safety Group.

Effective May 1, this Plan will allow new enrollees to take advantage of services with no payment until the second month of

“If you are struggling to make a payment for your workers’ compensation policy, or if you have a large deposit due, call Amato to seek relief."

167 Route 31 Flemington, NJ 08822 Toll Free: 877-657-2787 Fax: 908-782-1795 bseymour@flemington.com www.njparts.com

55 Kinderkamack Road Emerson, NJ 07630 Phone: 201-261-7495 Fax: 201-261-3261 Toll Free: 888-782-9493 parts@libertysubaru.com www.libertysubaru.com

32 | New Jersey Automotive | June 2020

3469 Route 46 Parsippany, NJ 07054 Phone: 973-658-5714 Fax: 973-402-9591 mdaltilio@paulmiler.com www.paulmillersubaru.com/parts

the policy term. There will be 11 equal monthly payments starting in the second month.

“If you are struggling to make a payment for your workers’ compensation policy, or if you have a large deposit due, call Amato to seek relief,” advises Amato Insurance Agency Principal Joe Amato, Jr. “We hope this will allow AASP/NJ members to stay insured but pay the premiums when the economy opens up again.”

The “Economic Relief Payment Plan” will be available for a limited time. If you would like to learn more about this benefit, please contact Joe Amato, Jr. at (732) 530-6740 ext. 412 or via email at joejr@amatoagency.com.

Amato Insurance Agency is a division of World Insurance Associates LLC. NJA

New Jersey Automotive | June 2020 | 33

LOCAL NEWS

Harbortouch Offers Free “Contactless” Terminals for AASP/NJ Members

A

s New Jersey shop owners continue to work within social distancing guidelines, longtime AASP/NJ benefit provider Harbortouch is offering a contactless solution for credit card transactions.

Thanks to a new broadband wireless touchscreen terminal provided by Harbortouch to AASP/NJ members free of charge, customers can now pay for services via credit card without ever having to touch the terminal screen to sign.

“A customer waves their phone in front of the terminal; they don’t touch it but we’re still doing a cardpresent transaction,” explains Harbortouch Agent Office Represen-

tative Ken Racioppi. “Much like a wireless phone, the terminal has a SIM card and connects to either TMobile or AT&T. It’s a built-for-purpose device that has a built-in printer, so the customer is getting the receipt right then and there. It has a very bright touchscreen, so it can be used at night.”

Not only does the wireless

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terminal provide greater peace of mind during transactions, it also represents an evolution in preexisting credit card processing technology.

“Auto body shops are having to find better ways to conduct business outside the four walls of their office.

The wireless touchscreen terminal helps shops be able to do business curbside. Wireless had been a challenge in the credit card arena because of the data networks, but we’ve come a very long way with that. Now, it’s become a very viable solution for doing business away from the office.”

The terminal hardware is available to AASP/NJ members at no cost, and no contract is required.

Racioppi adds that transaction fees are “reduced for a few months while we put this virus behind us.” The system requires a $19.95 monthly subscription to an airtime plan.

In addition to providing free terminals to members, Harbortouch plans to continue its support of AASP/NJ by attending the 2020 NORTHEAST® Automotive Services Show.

“One of the great things for me about the show is that I get to see a lot of customers under one roof. It’s hard to pop in at all the shops, but the show allows me to meet face to face with new and exciting customers and let them know where we’re at and what we’re doing.”

For more information on Harbortouch and the free wireless terminals, contact Ken Racioppi at (973) 666-0882 or via email at ken@premiersolutionsnj.com. NJA

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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

36 | New Jersey Automotive | June 2020

LIBERTY HYUNDAI 371 ROUTE 17 NORTH MAHWAH, NJ 07430 201-529-3600 FAX: 201-529-3051

WAYNE HYUNDAI 1244 ROUTE 23 NORTH WAYNE, NJ 07470 PH: 973-646-0333 FAX: 973-694-1700 waynehyundai.com

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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

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FLEMINGTON CHEVROLET BUICK GMC CADILLAC 211 Highway 202 Flemington, NJ 08822 Phone: 877-657-2787 Fax: 908-782-1795 www.njparts.com

FRED BEANS PARTS 131 Doyle Street Doylestown, PA 18901 Phone: 877-942-3267 orders@fredbeans.com www.fbparts.com

BAY RIDGE CHEVROLET OF BROOKLYN 1575 86th Street Brooklyn, NY 11228 Phone: 833-244-3475 Fax: 718-392-6570 www.bayridgechevy.com

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

New Jersey Automotive | June 2020 | 37

COVER STORY by Joel Gausten

ROUND ONE: Shops & Insurers Come out Swinging over COVID-19 I

f you’re one of the many collision industry professionals in New Jersey who’ve thankfully been able to keep their businesses afloat during the pandemic, then you’ve inevitably noticed some major changes to how insurers are conducting themselves in and out of your shop. This month, New Jersey Automotive takes a look at some of the new practices – and unsettling trends – that point to the very different postcoronavirus world to come.

Letting Pictures Tell the Tale With automotive technology always evolving, the chances of “minor” vehicle damage arriving at a shop in 2020 are increasingly rare. As ADAS and other driver assistance systems continue to revolutionize the field, many in the repair community have argued that only in-person estimates performed by knowledgeable professionals can truly identify the extent of damage sustained and the methods needed to bring a vehicle back to pre-loss

38 | New Jersey Automotive | June 2020

condition. However, the current pandemic has seen insurers utilize photo estimating like never before. No matter where someone stands in regard to the legitimacy of the practice, creating a remote estimate from photos has become the new – and perhaps permanent – norm in the age of coronavirus.

The sudden rise in photo estimating is being met with mixed feelings at Ultimate Collision Repair in Edison, where owner and AASP/NJ President Jerry McNee has experienced plenty of obstacles in completing thorough repairs in this manner.

“Let’s face it, that is the wave of the future. You can jump in front of it and try to stop it, but I don’t see how.

COVID-19 has proven to the insurance companies that their staff working from home absolutely works. But here at my shop, it’s been hit-and-miss. We’ve had some success working with insurers through photo estimating, but there have been problems. For example, the timeframe it’s taking some insurers to get back to us with paperwork has been astronomical.”

Although McNee acknowledges that photo estimating presents considerable advantages on the insurance side, he fears that this latest trend could result in a new set of frustrations in completing jobs in his bay.

“Thirty years ago, an insurance appraiser would go out and look at three to four cars and call it a day. By 1pm, they’d be sitting in their living rooms. Insurers started catching on to that and started pushing these guys to work until later in the day – even to after normal business hours. Now, they can sit in their living room and view 15 claims a day without leaving their homes and dealing with the overhead of having a car or the insurance and maintenance on it. It’s evolution, but the curse of this is going to be when we encounter an insurance appraiser with zero experience – which is not uncommon in that industry – reviewing a supplement. Right now, I’m three weeks and two supplements into a repair, and they’re still off by $2,500.

I’m not starting on that car.”

Steering as “Relief” Last month, Progressive made headlines by announcing its new “Apron Relief Program,” a $1 billion endeavor touted as an attempt to assist “customers, employees, communities and agents” in these unprecedented times. What does this mean for auto body shops?

Depending on where you stand on the DRP issue, this “Apron” is either providing a layer of much-needed comfort or being used to choke out competition in the marketplace.

According to a statement found on Progressive’s official website, the insurer has provided checks totaling over $2 million “to all active auto and commercial network shops” to be used at these facilities’ discretion.

While some quick math based on the estimated number of Progressive DRPs in this country points to each recipient shop only receiving aid in the four-figure range, the “Apron” program has introduced something that could be considerably more lucrative in the long run: The promise of “a full-service claims experience for first responders and health care workers who experience a car accident by providing enhanced roadside service [including transportation to work or home from the accident if needed], expedited tow service and vehicle repairs [and] pick-up and delivery of the repaired vehicle, all while deferring deductibles and providing a rental vehicle if needed.” It doesn’t take a seasoned industry veteran to figure out which shops will be providing these special services to Progressiveinsured members of the rescue and medical industries – thus creating added pressure for non-network shops to attract and retain these same customers in a severely damaged marketplace.

Cost Containment on Steroids Automotive collisions typically don’t happen indoors, which means that vehicle owners are currently paying to insure cars they aren’t driving very much. This fact is not lost on the NJ Department of Banking of Insurance, which issued a May 12 bulletin (state.nj.us/dobi/ bulletins/blt20_22.pdf) advising

carriers on premium refunds, credits and reductions in response to the crisis. The Department has ordered auto insurers (and companies covering other lines) to make initial premium refunds or other adjustments to all adversely impacted New Jersey policyholders “for each month that the public health emergency is in effect.”

The mandated premium refunds are based on (among other things) reductions in policyholders’ “exposure base” (miles driven, payroll, receipts, etc.) to reflect actual or anticipated exposure. Insurers are required to inform policyholders of their refunds or adjustments no later than June 15.

Not surprisingly, many auto insurers appear to be addressing decreased revenue on their side the old-fashioned way: By containing the costs of repair any way they can. A shop owner with multiple OEM certifications, McNee has seen a dramatic drop in the money that some carriers are willing to pay for the repair of his certified lines since the pandemic began – even though he has a long history of receiving his requested rates.

“We’ve negotiated these rates in the past; I’ve been getting some of them for eight years. Now, we have companies coming in and saying, ‘This is what we’re going to pay. We don’t care what we paid you in the past. We feel that this is fair.’ There are no negotiations, and I have issues with that. Our upfront investment into those certification programs – as well as the costs for recertification – are very costly.”

According to AASP/NJ Executive Director Charles Bryant, McNee is far from the only OEM-certified repair shop owner in New Jersey up against the wall.

“Shops have been telling me that insurers have been informing them that the higher rates they’ve paid in the past were a mistake. Insurers like to say they only pay what’s ‘usual and customary.’ Well, they’ve been paying the higher amount for several years.

Now, all of a sudden, they’re taking these rates back. It doesn’t make any sense.”

It’s not just high-end work that is Continued on page 41

New Jersey Automotive | June 2020 | 39

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OUT OF BODY (AND MECHANICAL) EXPERIENCES Continued from page 11

Dave Klein, I wouldn’t hesitate to subscribe. But like those excellent sportswriters, that organization is long gone.

Good luck.”

To my shock, the editor responded within minutes.

“Thanks for the note, Mr. Greco.

We appreciate your readership.

One of our missions is to use our editorial page to advocate for people who don’t have a voice. Another mission is to serve a very large and

PRESIDENT’S MESSAGE

Continued from page 12

revenue you generate in a single month; it all comes down to what you actually have in the bank. That mindset is what has helped my business stay afloat during this lockdown. To be honest with you, ignoring my numbers for the past 17 years would have devastated my livelihood more than this pandemic.

Even in the best of times, 80 percent of a shop’s most common mistakes occur at the front end.

Repairing vehicles properly is just one part of what keeps a shop truly functioning. It all begins with writing a complete estimate, documenting your true costs and going after what you deserve for your time and expertise.

Thanks to PPP loans and other

diverse audience that wants a lot of different things. On busy days, we might write 200-300 articles. Maybe five percent of those are opinionbased? So, if there’s nothing for you in the other hundreds of pieces of content worth 33 cents a day, we’ll continue to look elsewhere for support.

Either way, I do want to thank you again for taking the time to write and appreciate you reading. I hope you and your loved ones are healthy, well and safe. And good luck with your publications.” resources, it appears that the vast majority of shops I know out there are going to make it through these hard times. That said, COVID-19 hasn’t been eradicated, and there is a chance we’ll all have to brace ourselves or COVID-20, -21 or -22.

Who knows where things might go from here? This is why taking a realistic look at what you’re charging for – and actually making on – every job that comes through the door is so important.

If things go well, we’ll be back to hitting restaurants in the near future.

Would you and three of your friends ever go to Ruth’s Chris Steak House together with $100 between you and hope for the best? That’s not even remotely possible, yet many shops run things with this kind of mindset.

By the way, things get even worse

COVER STORY

Continued from page 39

being affected. In order to make every attempt to keep customers and employees safe during lockdown, shops throughout New Jersey have been adopting extensive vehicle-cleaning regimens before and after services are performed. These include applying disinfectant to each vehicle at various stages of the process – something that takes time and comes at an expense. To keep carriers looped in, McNee has been providing these companies with PDFs detailing the steps associated with this process.

Have the majority of insurers recognized this as a procedure important enough to compensate shops for their efforts? Not usually. In one case, he did eventually convince one insurer to up its payment for cleaning; however, the amount was still well below what he had requested.

Okay. Credit to him for getting back to me so quickly. But I had to call bullshit.

“You honestly believe NJ.com doesn’t lean left? Wow. I don’t want anyone to go under, especially in our industry. But if you can’t see the forest for the trees...Stay safe as well.”

To his credit, he again responded immediately.

“I 100 percent agree we lean left.”

I rest my case. If only his (and all other) news sources were as honest as he is. NJA

if you’re paying employees in cash without a way to document what you’re giving them when the time comes. You’re under-billing for repairs, and you can’t apply for a future loan – thus hurting the entire industry. That’s something to really think about.

As president of AASP/NJ, I want every shop in our state to succeed.

I’m always happy to share what’s worked (and what hasn’t) at my shop.

The association is always working hard to provide all of us with the tools and information we need to make good decisions and better prepare for our futures. I’m always available to share what I’ve learned and get new ideas from others. Let’s work together as we all try to get through this thing.

Good luck and stay safe. NJA

“It was better than nothing, but it was still a slap in the face.”

When faced with similar refusals from insurers, he still has his shop perform the cleaning processes as a matter of public health.

“I don’t want any of my employees catching this, and I don’t want any of my employees who may have it give it to someone else.”

With shops adding more intense cleaning procedures to their jobs, there is a growing need for them to be extremely cautious with the verbiage they use to reflect this work to consumers and carriers. This was the main takeaway from “Ask the Experts: How Professional Restorers Deal with ‘Disinfecting’ Vehicles,” a recent twohour Zoom meeting hosted by the Society of Collision Repair Specialists (SCRS) that offered insights from both Continued on page 45

New Jersey Automotive | June 2020 | 41

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EXECUTIVE DIRECTOR’S MESSAGE

Continued from page 16

and if they decide to have their vehicle repaired at that shop, they will be responsible for the difference between what the shop charges and the amount on the insurer’s estimate. The insurer might also give the insured the names of a few shops on its Direct Repair Program that will repair the vehicle for the amount on its estimate. Well, as you can imagine, the last thing the vehicle owner wants to hear is that they are going to pay their deductible and additional money because the shop they have chosen will not accept the Labor Rate the insurer is willing to pay. So, more often than not, the customer will agree to allow the vehicle to be moved to the shop of the insurer’s choosing.

Naturally, the shop that refused to be bullied by the insurer feels proud that it stood its ground – even if it lost the job. But how many times can the shop afford to lose a job before it will be out of business? I don’t think I need to answer that question. So, what eventually happens? You guessed it – the shop reluctantly accepts whatever Labor Rate the insurer has established as the “prevailing rate” or “prevailing competitive price.” They either accept the rate the insurer is willing to pay or go out of business. It is as simple as that!

Now, with that explained (even though I am sure every collision shop that has ever dealt with an insurer already knows this and has lived it), let’s take a closer look.

Are “the prevailing Labor Rate” and “the prevailing competitive price” really what insurers call them, or are they something quite different? In reality, a better description for a Labor Rate established by intimidation, coercion or threats of reprisal would be “a Forced Labor Rate.”

When an insurer states they only pay a particular Labor Rate (which they refer to as “the prevailing Labor Rate” or “the prevailing competitive price”) and put shops in the position of either accepting it or having work taken away, something is desperately wrong.

In order to paint a clear picture, we must first take a look at the regulations that govern fair claim settlement practices here in New Jersey. To cut to the chase, I am going to go directly to the section of the regulations that governs the negotiation process that insurers are required to follow during the settlement of an auto property damage claim. I have inserted some of the wording below (with emphasis added), which collision shops should look at immediately:

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.

(b) Negotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price.

(e) Subject to the requirements of (d) above, the insured may use any repair facility of his or her own choice.

The insurer must make all reasonable efforts to obtain an agreed price with the facility selected by the insured.

Can anyone point out where it indicates that an insurer can dictate things rather than make all reasonable efforts to obtain an agreed price with the facility selected by the insured?

Remember the part of this message where I talked about an insurer stating something to the effect of, “We only pay the prevailing Labor Rate, and if you don’t accept it, we will just have to move the vehicle over to one of our DRP shops”? Does that sound like an attempt to “make all reasonable efforts to obtain an agreed price with the facility selected by the insured”? Does that sound like an insurer would be in compliance with the provision that “[n]egotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price”?

The bottom line is that an insurer cannot force a collision shop to accept a rate that it has established as the “prevailing rate” when it is in fact a forced Labor Rate established by intimidation, coercion or threats of reprisal. Based on the foregoing, a better and more descriptive name for the “prevailing competitive price” or the “prevailing Labor Rate” would likely be “The Big Lie”!

The question is, what is the collision industry going to do about it? The fact is, unless an insurer has chosen the option in the policy to repair the property, it cannot dictate how to repair a damaged vehicle or how much it is going to pay as the Labor Rate. The regulations governing fair claim settlement practices make it clear that insurers are required to make all reasonable efforts to reach an agreed price with the shop of the insured’s choice.

The COVID-19 pandemic has forced many people in the collision industry to slow down, wake up and take a close look at things – including the Labor Rates that insurers are forcing on collision shops – in the brightest of lights right now. The Labor Rates that collision shops are getting paid by insurers are less than what bicycle shops and lawnmower shops get paid on a regular basis because these businesses don’t have an insurer standing between them and their customers.

The time to address this issue is NOW! If anyone would like to speak with me about anything addressed in this message, I can be reached on the AASP/NJ Hot Line at (732) 922-8909. NJA New Jersey Automotive | June 2020 | 43

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44 | New Jersey Automotive | June 2020

2:46 PM

COVER STORY

Continued from page 41

the collision repair and property restoration industries on how body shops could provide a safer and more legally sound environment under our current circumstances. For example, strictly using the word “disinfecting” could open the door to litigation if a shop isn’t careful.

“Not all cleaners are built the same,” commented panelist and restoration industry expert Kris Rzesnoski (vice president of business development for Encircle). “When you’re using a disinfectant, is it on the EPA list? Does it meet those requirements? Then, you have to follow the instructions on the product…The customer has to have a choice in that, because you’re putting products inside that vehicle that may affect them differently.”

“Shops are using the terms ‘disinfecting’ and ‘sanitizing,’ and that was a concern for us,” added Jordan Hendler, executive director of the Washington Metropolitan Auto Body Association (WMABA). “They should be saying, ‘I applied disinfectant; I used this chemical.’ But after that, no guarantees.”

fulfill a shop’s obligation to perform a complete OEM repair. This extends to serious questions concerning whether such parts were even intended for use in the American marketplace.

Additionally, Bryant has received reports from AASP/NJ members that certain insurer-requested “Opt OE” parts have been a logistical nightmare to procure.

“Some of the parts listed are from Texas, Oklahoma or New York.

Sometimes, shops have to go to four or five different places to get them.”

Automaker positions on “Opt OE” (or “gray market”) parts vary. Although Nissan/Infiniti currently offers “Opt OE” versions of common mechanical parts (radiators, shocks/struts, brakes, etc.) through its Value Advantage line, the manufacturer is clear on where it stands in regard to collision-related products. As noted in official position statements for both Nissan and Infiniti, “original parts […] are designed and built to provide optimum fit, function, safety and structural integrity. For this reason, [Nissan/Infiniti] does not approve of the use of aftermarket,

gray market or imitation parts […]

Parts of the vehicle are designed to work together as a system, and we don’t know whether or how integrating aftermarket parts into these systems will impact crash performance. The safety of our customers continues to be our number one priority.”

In an online bulletin called “Don’t Opt for Opt-OE Parts” (toyotaparts andservice.com/collision/dont-optfor-opt-oe-parts), Toyota states that it does not have offer “Opt OE” or “surplus” parts programs. “‘Opt OE’ parts can seem like the real deal,” the bulletin states. “They appear to be Toyota parts but for a less expensive price than a collision center would normally pay when ordering parts through a Toyota dealer. However, ‘Opt OE’ parts may come with a hefty cost that isn’t reflected in the price tag of the parts.”

Additionally, Toyota stresses that “[any] parts marketed as such are not part of a Toyota program and are not sanctioned by Toyota for use in vehicles sold in North America. Even though parts classified as ‘Opt OE’

Continued on page 46

Debatable Parts Definitions Anyone who has read Bryant’s messages in New Jersey Automotive in recent months knows that the association’s Hot Line has been ringing off the hook with calls from concerned members sharing their experiences working through the pandemic. Now, the Hot Line is burning up with a new issue: The growing appearance of “Opt OE” parts on insurers’ collision repair estimates.

“Opt OE,” “Alt OE” or “Surplus OE” are terms commonly used to identify original automaker parts that have been sourced outside of traditional OEM dealers/suppliers. These products are often sold by third-party entities, including online sellers. While the presence of “OE” in the parts’ name would suggest that recipients of these parts are utilizing proper, OEMapproved products, there is considerable confusion and ambiguity in regard to whether such parts truly New Jersey Automotive | June 2020 | 45

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COVER STORY

Continued from page 45

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46 | New Jersey Automotive | June 2020

might appear in various estimating systems or parts ordering documentation, collision centers should be aware that they are not considered to be legitimate by Toyota.”

To make matters even more confusing, it is not uncommon for some OEM dealers to make “Opt OE” parts available to the repair industry. But what does “Opt OE” actually mean in these instances? Unfortunately, that’s a question not easily answered. For well over a year now, the Collision Industry Conference (CIC), the Society of Collision Repair Specialists (SCRS) and other nationally minded industry entities have worked to establish clear and accepted industrywide definitions for this and other alternative parts categories for the benefit of shops and customers alike.

However, as coronavirus has temporarily halted inter-industry work on the matter, many shops are seeing these terms show up during the repair process with greater frequency.

When encountering a parts source (online or otherwise) that is marketing “Opt OE” parts, shops would be wise to directly confirm with the respective automaker that such products are appropriate to maintain the structural integrity of the vehicle and endorsed for use in this country.

Even as America slowly begins to return to more regular work and life schedules, it is clear that the COVID-19 pandemic will have lasting effects on the shop/insurer dynamic. Will the events of 2020 make this relationship more adversarial than before? Only time will tell, but it appears that the collision repair community will soon have a slew of new fights on its hands. NJA

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