PLUS: AASP/NJ Cancels NORTHEAST
®
2020; Virtual Options Planned - see pg.12
July 2020 Volume 14, No. 7
www.wmaba.com
$5.95
WILD FRONTIER The
Shops and Insurers Adapt to a Changing World
CIC Goes Virtual SCRS Addresses Audatex Inconsistency Anderson: Supporting Vocational Schools Letter to the Editor
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24 CONTENTS JULY 2020
COVER STORY
BY JOEL GAUSTEN
24 THE WILD FRONTIER: SHOPS AND INSURERS ADAPT TO A CHANGING WORLD
A look inside evolving repairer/carrier relationships.
LOCAL NEWS 10
Saying goodbye to an early WMABA figure.
REMEMBERING EMMETT EARLY BY ALANA BONILLO
DEPARTMENTS 6
NATIONAL NEWS 12
Keeping industry members safe and secure.
16
COLLISION INDUSTRY CONFERENCE TO HOST FIRST-EVER “VIRTUAL” MEETING
18
SCRS ADDRESSES AUDATEX INCONSISTENCY, PLOTS “VIRTUAL” JULY EVENTS Industry reps react to database discrepancies.
AASP/NJ CANCELS NORTHEAST® 2020, PLANS “VIRTUAL” OPTIONS
A new approach against COVID-19.
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15
21
23
INDUSTRY ADVICE: ASK MIKE 28
Providing much-needed assistance when fall comes around.
HOW CAN THE INDUSTRY SUPPORT VOCATIONAL SCHOOLS HURT BY COVID-19?
34
Executive Director’s Message JORDAN HENDLER Letter to the Editor Who Is Your Customer?
WMABA Membership Application WMABA Board Page
WMABA Sponsorship Page Advertisers’ Index
Stock Images © www.istockphoto.com
July 2020
3
Superior service starts with superior parts. Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life. Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you
Contact these Mazda dealers for all your parts needs: Brown’s Fairfax Mazda 10570 Lee Hwy. Fairfax, VA 22030 Toll Free: 800-234-8642 Phone: 703-385-3994 Fax: 703-591-5348
Nu Car Mazda 172 North Dupont Hwy. New Castle, DE 19720 Toll Free: 800-346-5283 Fax: 302-322-7135
Ourisman Mazda of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Phone: 855-417-4511 Fax: 240-499-2488 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanmazdaofrockville.com
Fitzgerald Mazda of Annapolis 1930 West Street Annapolis, MD 21401 Toll Free: 866-280-8022 Phone: 410-224-4636 Fax: 410-224-4264
Fitzgerald Mazda 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax 877-696-1841 E-mail parts@fitzmall.com www.fitzparts.com
4
www.fitzmall.com
July 2020
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: 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 bmwofalexandria.com
5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 passportbmw.com
3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Direct: 301-890-3015 Fax: 301-890-3748 bmwofsilverspring.com
8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 E-mail: tdailey@crownauto.com richmond-bmw.com
6700 Baltimore National Pike Baltimore, MD 21228 855-996-2906 410-744-2000 Fax: 410-818-2600 bmwofcatonsville.com
©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.
July 2020
5
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
EXECUTIVE DIRECTOR’S
MESSAGE
Wanna Chat at the WMABA Watercooler?
We are so excited to be premiering a casual monthly “WMABA Watercooler Chat” session where members can get together to discuss current events, shop relations, repair issues or any other topic they care to chat about. With no set agenda so that discussions can be spontaneous, it’s clear there’s no shortage of current happenings to provide fodder to the attendees. There’s anything related to coronavirus/COVID-19, the changes in insurance company claims handling to online, dealing with economic adversities, the Payroll Protection Program and much more. Some of our shops may even be affected by the current civil unrest relating to protesting or how their business is addressing or preventing any racial issues. Our goal is to create a laid-back environment, modeled from the mental image of a watercooler in a corporate office, and a safe place where anything can be brought forward for feedback. Members need places to vent, throw out ideas, ask similar businesses how they are handling certain matters and get honest responses. It’s also a place where the association can get ideas of projects or initiatives to assist our membership beyond the discussion.
This year has no doubt been one of change. Some of that change has been very negative. With half of the year still in front of us, we want to make sure that WMABA helps with the positive wherever possible. At the time of this writing, WMABA is also working on pivoting our Collision Professional Repairer Education Program (Collision P.R.E.P.) to bring a virtual series of the highest-caliber content to the membership and industry. Though the NORTHEAST® Automotive Services Show has been canceled this year, that is all the more reason that shops need to educate themselves. This is a way they can do that from the comfort of their offices or home office – pajamas optional. Watch for announcements online at wmaba.com or let us know you want to get the notices by sending us an email or calling! See you at the Watercooler!
H&D
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.
WMABA OFFICERS PRESIDENT
VICE PRESIDENT
SECRETARY
IMMEDIATE PAST PRESIDENT
Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Bill Hawkins hawkinswilliamjr@gmail.com 510-915-2283 Phil Rice phil@ricewoods.com 540-846-6617 Mark Schaech, Jr. markschaech@gmail.com 410-358-5155
BOARD OF DIRECTORS
Don Beaver (donbeaver3551@gmail.com) 443-235-6668 Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Kris Burton (kris@Rosslynautobody.com) 703-820-1800
ADMINISTRATION
Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928 Ben Gibson (bgibson@richmondmarinecenter.com) 804-355-8151 Steven Krieps (srkrieps@live.com) 304-755-1146 Danny Szarka (danny@dynamiccollisionservices.com) 410-500-9200
EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116
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July 2020
STAFF
PUBLISHER SALES DIRECTOR EDITORIAL DIRECTOR GRAPHIC DESIGNER
Thomas Greco thomas@grecopublishing.com
Alicia Figurelli alicia@grecopublishing.com
Joel Gausten joel@grecopublishing.com
Lisa M. Cuthbert lisa@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR
Alana Bonillo alana@grecopublishing.com
OFFICE MANAGER
Donna Greco donna@grecopublishing.com
PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2020 Thomas Greco Publishing, Inc.
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Audi Chantilly 14839 Stonecroft Center Court Chantilly, VA 20151 703.956.2100 Fax: 703.956.2139 www.audichantilly.com
Audi Bethesda 5206 River Road Bethesda, MD 20816 Parts Direct: 240.762.5636 Parts Fax: 301.718.1847 www.audibethesda.com
Rockville Audi 1125 Rockville Pike Rockville, MD 20852 Parts Direct: 301.296.2870 Parts Fax: 301.762.5055 www.rockville-audi.com
Audi Silver Spring 3151 Automobile Boulevard Silver Spring, MD 20904 844.413.6929 Fax: 301.890.3748 www.audisilverspringparts.com
Audi Owings Mills 9804 Reisterstown Road Owings Mills, MD 21117 Parts: 877-411-6825 Parts Fax: 410-372-3380 www.audiowingsmills.com
July 2020
7
A repairer speaks.
LETTER TO THE
EDITOR
Who Is Your Customer? Dear Hammer & Dolly:
Who my real customer is has been weighing heavily on my mind for months now. Even prior to the craziness of COVID-19 and the unprecedented lockdowns, insurance companies had decided what parts should be utilized, how a vehicle should be repaired (including what is necessary for that repair) and what they would pay for regardless of OEM guidelines and requirements. When an outside influence dictates what will transpire in the course of repairs and what a shop will be paid for, we have handed over our keys, our checkbooks and our reputations to an entity whose only interest is cutting costs and keeping more profits for themselves. The only things that a shop will keep in these situations are all of the liabilities and most likely a whole lot of disgruntled employees. Insurance companies are quick to speak out of both sides of their mouths by telling a shop that they can use any vendor they want for parts or materials, but because they found a part 3,000 miles away for $20 less, that’s all they are going to pay. This leaves the shop holding the bag. Well, do we just eat the difference and buy from our reliable sources? Do we do a supplement for the difference and increase our supplement frequency numbers, or do we order the part from a place that is often unknown and unreliable? That part will require a credit card purchase in advance of shipping and will (in most cases) arrive late, damaged or wrong and destroy our cycle time numbers. Let’s move on to pre- and post-repair scans. Even if an OEM states they are required procedures, many insurers will say, “Well, if there wasn’t a light on when it arrived, we’re not paying for it.” Document all you want, but you’ll likely get a very callous response of, “Well, go ahead on this one, but we’re still going to use a case-by-case approach.” How about cleaning and re-taping emblems with individual letters? Yes, they do sell templates, but there’s no way you’re ever going to be compensated for the actual time required to use them. Who foots the bill for the emblem replacement when the adhesive fails? How about the flat-out refusal to pay for any type of collateral damage done in the course of repairs or the R&I of parts on a blend panel? Partial refinish and full clear has become a major way to absolutely screw a shop out of fair
8
July 2020
compensation. During partial refinish, the only part of the refinish time premise is the actual time a painter is pulling the trigger on the gun. It is sanded the same, masked the same, the paint is mixed the same, the vehicle is still degreased the same and the cleanup time is the same, but you will often find the refinish time has been cut in half with the explanation of, “Well, you’re not painting the whole panel.” That may be true, but actual color application is about 17-25 percent of the time premise in most cases. This means that even if allowed, only a small portion of that 17-25 percent – not the complete refinish time – is reducible. Aftermarket parts are their own special problem. In a lot of cases, the estimate is written with an economy-line part found four states away from a vendor that ships once a week and requires payment before shipping. Lord forbid that vendor’s shipping guy had a dentist appointment; now, your part is two weeks out. You can certainly locate and order from your common source, but insurers will only pay a certain amount. Just today, we were questioned over cycle time on a vehicle and were asked to absorb rental costs because a part the insurance company found in the Midwest for $50 took 10 days to get. We could have ordered local, but we would have had to eat the $250 difference. Who is your customer? To whom are you most obligated? If your answer is, “Whoever is paying the bill,” you may want to re-evaluate your business plan. “We didn’t get paid for that.” “That’s all that they pay for.” These are excuses that will not hold up in court if you are sued or (God forbid) hurt or kill someone because you didn’t get paid to do something. I have never been a huge supporter of DRPs, but in this day and age, it’s almost a necessary evil. Decide who your customer really is and keep asking, telling and educating. If we all do this, maybe one day this all will become an industry standard. United we stand, divided we fall. Trust me; you are not the only one asking or charging for something when you’re told, “We don’t pay for that.” Stay strong, my friends!
Sincerely, Rusty Dent H&D
KEEP IT GENUINE
INSIST ON GENUINE GM PARTS
We stand behind our product, providing collision repair professionals and vehicle owners peace-of-mind and confidence. Contact these Genuine GM Parts dealers for all your parts needs: NU CAR CHEVROLET 172 North Dupont Highway New Castle, DE 19720 Phone: 800-633-6606 Fax: 800-346-5285 e-mail: parts@nucar.com www.nucar.com
OURISMAN CHEVROLET 4400 Branch Avenue Temple Hills, MD 20748 Phone: 301-899-6990 Fax: 301-899-9375 www.ourismanchevrolet.com
RADLEY CHEVROLET 3670 Jefferson Davis Highway Fredericksburg, VA 22408 Phone: 800-355-8202 Direct: 540-898-0055 Fax: 540-891-2074 www.radleychevrolet.com
OURISMAN CHEVROLET OF ROCKVILLE 807 Rockville Pike Rockville, MD 20852 Toll Free: 800-345-4640 Direct: 301-424-5332 Fax: 301-294-6381 www.rockvillechevrolet.com
July 2020
JERRY’S CHEVROLET 1940 E. Joppa Road Baltimore, MD 21234 Toll Free: 844-817-9405 Local: 443-219-3339 Fax: 443-403-0803 chevyparts@jerryschevrolet.com www.jerryschevrolet.com
9
LOCAL
Celebrating an industry maverick. By ALANA BONILLO
NEWS
EMMETT EARLY
Remembering
WMABA is saddened to report the passing of Emmett Early on May 9 at the age of 86. An early supporter of the association, Early was the former owner of WMABA industry mainstay Craftsman Auto Body. Early opened Craftsman Auto Body with partner Walter C. Dalton in the late ’50s before becoming the sole owner. In 1972, he sold the business to Frank Krauss and Walter’s son Jerry to sail around the world with his first wife, daughter and son. A few years later, Early returned to Virginia and opened up a new shop before later becoming part of the Craftsman management team as the operation grew to include multiple locations. Craftsman Auto Body was purchased by Caliber Collision Centers in 2016. “Emmett Early was truly one of a kind,” shares former Craftsman Auto Body/Caliber owner John Krauss. “He was just one of the nicest guys you could ever meet. He would give you the shirt off his back, even if he just met you. He was a great storyteller as well; you could listen to him for hours upon hours. He will be missed by many.” Early, who most recently lived in Inman, SC with his wife, Suzie, is remembered by friends for his many adventures that led them to believe he had nine lives. During his years at Craftsman Auto Body, he was once lost at sea for three days off Hatteras with his youngest son, Derek, friend Randy Bevis (Bevis Auto Body) and Bevis’ son after the engine stopped working on their small fishing boat. The boat drifted into the ocean while they rested overnight. The crew survived on a few candy bars and some drinks until Early rigged up a pair of water skis and a tarp to make a sail. This helped return them to the shore area during a severe storm, and the Coast Guard was able to rescue them. His travels also took him to the skies, where he once had to make an emergency landing with his private plane at a Michigan airport after getting caught in a cloud bank. After
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July 2020
Emmett Early (right) of Craftsman Auto Body was a critical figure in the early years of WMABA.
landing safely, Early’s passengers (including Bevis and Dick Krauss) took commercial flights home while he returned on his plane. WMABA and Hammer & Dolly offer their condolences to Early’s friends, family and colleagues. H&D
A SYSTEM
R EBO OR N w it h e v er yt hing y ou u a s k ed f or in a r e f inish s y s t em – c olor c onsis t enc y and t ools .
M AV ER IC K AP P R OV ED . R EQ UE S T A D EM MO , V ISI T AT MA TRIXSYSTEM.COM
July 2020
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NATIONAL
A new direction for attendee health.
NEWS AASP/NJ Cancels NORTHEAST 2020, Plans “Virtual” Options
After closely monitoring the COVID-19 situation both locally and nationwide for months, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has made the difficult decision to cancel its 2020 NORTHEAST® Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ. NORTHEAST 2020, originally scheduled for March 20-22 then postponed to August 21-23, will resume its normal schedule next year with show dates of March 19-21, 2021. “When we first realized the magnitude of COVID-19 and postponed NORTHEAST in March, we hoped we wouldn’t be faced with this decision,” says AASP/NJ President Jerry
McNee. “With the uncertainty about what restrictions will be lifted by August, we felt the public health and safety of our attendees, staff and volunteers outweighed any other considerations to go on with this year’s event and decided instead to plan for an even greater NORTHEAST in March 2021.” While statistical data throughout New Jersey continues to trend in a hopeful direction, the viability of holding NORTHEAST this summer remains too uncertain amidst no short-term timeframe of mass gatherings resuming in New Jersey. As of early June, mass gatherings remain prohibited
OVER 40 YEARS NISSAN EXPERIENCE #1 WHOLESALE DEALER IN DISTRICT MULTIPLE DELIVERY DRIVERS Visit Us 14777 Jefferson Davis Highway Woodbridge, Virginia 22191 M-F 8am-7pm SAT 8am-5pm
Contact Us www.cowlesnissan.com parts@cowlesauto.com Phone Number: 703-497-3097 Fax Number: 703-490-4407
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July 2020
Continued on page 31
MAINTAIN AN INFINITE INVENTORY OF ORIGINAL MINI PARTS.
At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function.
For Original MINI parts, contact any of these authorized MINI dealers. MINI of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 fax: 410-349-2586
Crown MINI 8710 West Broad Street Richmond, VA 23294 804-527-6860 fax: 804-965-6254
MINI of Alexandria 5990 Duke Street Alexandria, VA 22304 703-461-6250 fax: 703-751-0595
MINI of Montgomery County 820 Russell Avenue Gaithersburg, MD 20879 Parts: 240-238-1204 Parts fax: 240-238-1493
MYMINIANNAPOLIS.COM
MINIOFALEXANDRIA.COM
CROWNMINI.COM
MINIOFMONTGOMERYCOUNTY.COM
© 2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
July 2020
13
WHY GENUINE PARTS? It’s the Right Thing to Do
You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Antwerpen Toyota 12420 Auto Drive Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com
Jerry’s Toyota 8001 Belair Road Baltimore, MD 21236 Phone: 410-661-4610 Fax: 443-455-1453 toyotaparts@jerrystoyota.com driley@jerrystoyota.com
Younger Toyota 1935 Dual Highway Hagerstown, MD 21740 Phone: 800-296-1190 Fax: 301-733-5465 dthompson@youngertoyota.com
Koons Toyota Annapolis 1107 West Street Annapolis,MD 21401 Phone:(800)262-3330 Fax:(410)280-6361 roy.easter@koons.com
ToyotaPartsAndService.com
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July 2020
JOIN ! TODAY
GENUINE NISSAN PARTS
MAKE ALL THE DIFFERENCE.
Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts.
Contact these Nissan dealers for all your parts needs: Passport Nissan 5000 Auth Way Suitland, MD 20746 Phone: 301-423-6930 Fax: 301-423-2965
Sheehy Nissan of Manassas 9010 Liberia Ave Manassas, VA 20110 Toll Free: 800-969-4778 Local Direct: 703-361-0377 Fax: 703-361-5165 martinfisher@sheehy.com
Cowles Nissan of Woodbridge 14777 Jefferson Davis Hwy. Wodbridge, VA 22191 Phone: 703-497-3097 Parts Fax: 703-497-4407 Email: parts@cowlesauto.com
July 2020
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NATIONAL
NEWS Collision Industry Conference to Host First - Ever “Virtual” Meeting In the face of continued restrictions for mass gatherings, the Collision Industry Conference (CIC) will soon be hosted as a virtual meeting for the first time in its history. The next CIC will be held July 22 and 23 from 11am to 3pm eastern time via Zoom, with pre-registration required. As with the live CIC, several committees will make presentations and attendees will have the opportunity to raise their hand and speak during Q&A and Open Mic sessions. This is the first CIC to be held since the January 2020 meeting in Palm Springs, CA. An April meeting originally scheduled to take place in Jacksonville, FL was canceled amid coronavirus concerns. After considering COVID-19 restrictions, CIC organizers and committee members felt the open industry forum needed to meet and continue serving the industry. Organizer Jeff Hendler believes this “virtual” platform will also give those who have been curious about CIC – or have been too busy to attend a meeting in the past – the opportunity to experience the unique gathering without the added cost and burden of travel. “If you have been interested in attending a Collision Industry
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July 2020
Conference but haven’t had the opportunity, this is the perfect way to join in and see what it’s all about.” Various CIC committees have been hard at work throughout the crisis and plan to bring that work to the industry stage in July. The Emerging Technologies Committee will discuss the conversion of the Collision Industry Electronic Commerce Association (CIECA) ADAS Workflow to a CIC project. It will also explore steering column inspection challenges and invite the CIC body to offer feedback on both topics. The Parts and Materials Committee (co-chaired by Aaron Schulenburg of the Society of Collision Repair Specialists and Ken Weiss of SSF Imported Auto Parts) is set to continue its top-priority discussions on how parts are described or identified by various platforms, while both the Education & Training Committee (co-chaired by Gene Lopez of Seidner’s Collision Centers and Josh McFarlin of AirPro Diagnostics) and the Talent Pool, Recruitment and Development Committee (chaired by David Luehr of Elite Body Shop Solutions) will discuss the merging of their bodies of work related to recruiting, educating and retaining the industry’s workforce.
Keeping the Conference going. The July virtual meeting will mark the debut of the Future Industry Disruptions Committee, which was created to identify issues affecting the collision industry for the future. This new committee will look to attendees for more insight into the topics that will impact the auto body field in the years to come. Additionally, the Industry Relations Committee has been working on an “industry relations map” to clearly define who is involved in the industry and how they can work more effectively together. “This health crisis is impacting the collision industry just as much as any other industry, and it’s important we meet to continue our committee work,” comments CIC Chairman Jeff Peevy. “There’s no doubt the COVID-19 response will be an included topic, but there are many more items on the agenda related to repair processes and technologies. The industry is still changing, and we want to stay at the forefront of those discussions.” Founded in 1983, the Collision Industry
Conference (CIC) is a forum comprised of participants from all industry segments for the expressed purpose of discussing and exploring the issues that occur among them. Through discussion and research during meetings and extensive interim committee work, CIC attempts to form consensus on various issues, aware that all such findings are nonbinding and voluntarily accepted. The meetings are open to all interested individuals of all segments of the industry, including repairers, insurers, paint/material companies, equipment entities, vehicle manufacturers, data providers, representatives of trade associations and anyone with an interest in creating a more professional collision community. Each agenda has Open Mic time set aside for participants to publicly address concerns that are not on the published agenda. In 1992, CIC formed a committee to address the costly lack of standardization in the computer and electronic systems linking the various segments of the industry
together. This initial committee evolved into CIECA, an organization devoted to developing these important standards. Specific CIC committee information, as well as a full agenda of topics for each time slot for both meeting days and preregistration information, is available at ciclink.com. A special FREE meeting participation code is available on the CIC Sponsor page at ciclink.com/sponsors.
H&D
Executive Director’s Thoughts This is the first time that anyone can attend a CIC without having to travel, unless of course it’s being held in your hometown. To get to hear from the leaders in the industry and participate in the discussions is something that may only be available virtually this one time. I hope everyone takes advantage! — Jordan Hendler
July 2020
17
NATIONAL
NEWS SCRS Addresses Audatex Inconsistency, Plots “Virtual” July Events
The Society of Collision Repair Specialists (SCRS) has sought answers from Audatex in regard to what the national association views as an inconsistency in the database provider’s position and methodology with feather, prime and block (FPB). As far back as 2007, Audatex had stated that FPB were not-included procedures in welded panel replacement, as noted in its 2007 Database Reference Manual. However, Repairer Driven News (RDN) reports that Audatex’s 2019 Database Reference Manual states that “[t]ime to perform this operation is included in the Audatex time for welded panel replacement in the seamed areas to bring the panels to the condition of a new, undamaged panel for the purpose of refinish. Although the time is included, Audatex does not provide a material allowance for the feather/prime/block process.” Additionally, SCRS research reveals that Audatex seemingly reversed its position as far back as 2008, as noted in its response that
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July 2020
Seeking truth in labor times. year to a Database Enhancement Gateway (DEG) inquiry regarding FPB labor times for welded panel replacement. In response to what Repairer Driven News calls a “180-degree” turn in Audatex’s philosophy on the procedures, SCRS has been in regular communication with the company to see if this revised position resulted in repairers seeing an increase in existing Audatex welded panel repair times for 2007-2008. Additionally, SCRS sought Audatex’s explanation for its change in how it classifies FBP. “We recognize that some members of SCRS would prefer that our products detail, as a line item, the time involved in the [FPB] processes relating to replacement of welded-on panels,” wrote Audatex in response to Repairer Driven News’ questions on the matter. “That is not an option currently available in our product. The time involved in the [FPB] operations is included in the overall labor time.” SCRS has expressed frustration in Audatex’s reluctance to address the association’s direct questions. “We have asked Audatex to address all these issues without affirmative response,” noted the
Continued on page 32
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. Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138 e-mail: parts@alexandriavw.com
Karen Radley Volkswagen 14700 Jefferson Davis Hwy. Woodbridge, VA 22191 703-550-0205 Fax: 703-643-0081
Ourisman Volkswagen of Bethesda 5415 Butler Road Bethesda,MD 20816 301-652-2452 Fax: 301-652-2589
Fitzgerald Volkswagen of Annapolis 34 Hudson Street Annapolis, MD 21401 Phone: 410-224-4636 Fax: 410-224-4264
e-mail: vwwholesale@ourisman.com
www.fitzmall.com
Ourisman Volkswagen of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Toll Free: 855-417-4511 Fax: 240-499-2488 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanvolkswagenofrockville.com
Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841
Ourisman Volkswagen of Laurel 3371 Ft. Meade Rd. Laurel, MD 20724 Phone: 301-498-6050 Fax: 301-498-0157
e-mail: parts@fitzmall.com www.fitzparts.com
www.laurelvolkswagen.com
“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2020 Volkswagen of America, Inc.
July 2020
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An association fostering the exchange of ideas and providing a voice and support for the collision repair professional.
Position Your Business as a Leader!
OFFICERS
PRESIDENT: Torchy Chandler torchy.chandler@gmail.com 410-309-2242
VICE PRESIDENT: Bill Hawkins hawkinswilliamjr@gmail.com 510-915-2283
SECRETARY: Phil Rice phil@ricewoods.com 540-846-6617
BOARD OF DIRECTORS
PAST PRESIDENT: Mark Schaech Jr. markschaech@gmail.com 410-358-5155
Rodney Bolton rbolton@aacps.org 443-386-0066
Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment. WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, VA and WV collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities. Automotive collision repair facilities in Maryland, Virginia, West Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level. WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer & Dolly.
EXECUTIVE DIRECTOR: Jordan Hendler jordanhendler@wmaba.com 804-789-9649 Kevin Burt kevinburt@walkermillcollision.com 301-336-1140
Ben Gibson bgibson@richmondmarinecenter.com 804-355-8151
Don Beaver don.beaver3551@gmail.com 443-235-6668
Contact Executive Director Jordan Hendler to find out how WMABA can amplify YOUR voice in the collision repair industry. Danny Szarka danny@dynamiccollisionservices.com 410-500-9200
Steven Krieps srkrieps@live.com 304-755-1146
Kris Burton kris@rosslynautobody.com 703-820-1800
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July 2020
WMABA THANKS
YOU WMABA thanks their generous supporters of the
LEVEL 1
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We encourage YOUR SUPPORT of those who SUPPORT US! For more information about the sponsorship program, please contact Executive Director Jordan Hendler at (804) 789-9649 or email jordanhendler@wmaba.com
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FinishMaster • Single Source National Coatings and Supplies • WheelsOnsite
July 2020
23
COVER STORY
WILD FRONTIER
The
Where do we go from here?
It’s hard to fathom that there are still six months left to this year. The first half of 2020 blindsided the world; now, the national collision repair community is one of many industries trying to stand strong against the tide and prepare for whatever is to come. This month, Hammer & Dolly takes a look at some of the trends and advancements that are already reshaping “normal.”
To Charge or Not to Charge?
As COVID-19 continues to affect every facet of the collision repair industry, expecting the unexpected has practically become a standard operating procedure. Perhaps the biggest headscratcher to come along in recent weeks is the idea of a shop refusing to be paid by an insurer for work on a vehicle. That’s not a typo; that’s exactly what’s happening at Greg Cline Automotive (Winfield, WV). In late April, it received a notice from an insurer indicating that it would begin refusing to pay shops’ invoices unless these facilities included “COVID-19 cleaning” – plus a half-hour for labor and a $25 charge for
24
July 2020
materials to cover “pre- and post-repair sanitizing” – on their estimates. The notice, which the carrier noted would be in effect for 90 days and subject to review after that time, was met with great resistance from Greg Cline Automotive Shop Manager (and WMABA Board member) Steven Krieps. As he stated in last month’s Hammer & Dolly, “I’ve never been a big proponent of documenting and charging for something that I am in no way, shape or form an expert at, so I let people know that we’re wiping their cars with Lysol wipes and isopropyl alcohol – no different than the way we clean our homes. We know our customers trust us, and we don’t want them to think that if we cleaned it they have nothing to worry about. That’s just not true.” Now, Krieps is adhering to this philosophy to the point where he’s pushing back against insurer reimbursement. “We told this carrier we were not charging for that due to some liability issues and our personal stance on it. They basically said, ‘Well, it has to be on there or we’re not going to issue payment on the claim.’ I thought it was odd that they said this had to be on the estimate as a condition of payment.
New demands, new directions. BY JOEL GAUSTEN
Shops and Insurers Adapt to a Changing World
“I saw from the beginning that there would be some potential liability with giving a consumer something in writing that says we disinfected and sanitized their car for COVID-19,” he continues. “If they later come down with even a cold, there is the potential for them to claim they got sick because you didn’t do something right to their car. Our process could be put under a microscope; if there’s something wrong with it, now we’re at risk for potentially endangering the public. That was our reasoning behind not wanting it to be something we were offering as a paid service. However, we are doing everything we think is reasonable, and we are telling this to our customers. For the most part, they’ve been very grateful; they understand. I’ve had a few of them ask me, ‘Why are you not charging for it?’ I tell them, ‘I don’t want somebody leaving here feeling all warm and fuzzy thinking they’re 100 percent when, in reality, I can’t guarantee that.’ They often say, ‘Well, that makes a lot of sense.’ I think everybody understands that when we’re in a position where even the Centers for Disease Control and Prevention [CDC] changes their guidelines every couple of weeks, who am I to tell them that I can do anything better?”
At a time when shops throughout the country are marketing their “disinfecting” and “sanitizing” services online and elsewhere, the need for clarity as to what these mean to these businesses – and their customers – is incredibly high. Are these shops using EPA-approved products or simply grabbing whatever might be available to them at the time? Is there documentation for their procedures that can stand up in court? Unless a facility can truly answer these questions, Krieps cautions the industry to be careful with exactly what they’re offering and the verbiage they use to promote it. “I really and truly believe that when this is all said and done, there will be a potential for some kind of case in the next few years centered around COVID-19 that could eye-opening, to say the least.”
Faceless Frustrations
Photo estimating has always been a controversial topic in this industry. As vehicle technologies continue to evolve – and the possibility of litigation grows along with it – there is little wiggle room for repairs to be performed without the utmost
Continued on page 26
COVER STORY Continued from page 25
precision. Many insurers were already pushing hard for the use of photo estimating long before the arrival of COVID-19. With social distancing still a critical practice at the time of this writing, determining vehicle damage through images has been the only way some carriers are conducting claims. While this is reasonable from a safety perspective, it has caused more than a few logistical concerns at Cliff’s Hi-Tech Body Shop in Baltimore. “Sometimes, no matter what you do, [the photo] doesn’t really show the true dent,� explains owner Cliff O’Connell. “We’ve had that before [and told them], ‘You’re going to have to come out and look at it.’ Now, [they say], ‘Well, we can’t come and look at it.’� O’Connell rarely knows who will actually be on the phone when he contacts a carrier about a job. In a profession that often relies on the personal relationships developed between shops and insurance appraisers, O’Connell has not seen an adjuster in person since the pandemic began. Instead of dealing face to face with a local representative who has extensive experience with his facility, he’s now attempting to work over the phone with people who are thousands of miles away. “We might call into an insurance company and end up dealing with a guy in New Jersey.� Additionally, O’Connell notes that some insurers now appear to be scrutinizing estimates more than ever, noting a recent example of a carrier contacting the shop to reduce a $10 charge on a $4,000
repair. These scenarios, coupled with the general complications caused by coronavirus, have led to many jobs taking much longer than usual to complete. Although this currently doesn’t pose a problem in light of the COVID-related decline in work at his operation, he questions how these changes in insurer practices might impact things once consumer volume eventually picks up in Maryland. “If we had the normal amount of business coming in the door, it would kill us.� Like many, O’Connell has traveled a difficult road in recent months. For the first time in 32 years, he was forced to issue layoffs. Additionally, he saw a 70 percent decline in overall work. His mechanical shop, Cliff’s Direct Effect, also saw a steep loss in revenue. While the PPP loan enabled him to reinstate several employees, the lack of consumers hitting his doors has left many in his staff to find new ways of keeping busy. “I have experienced bodymen rolling paint and running pressure washers.� Fortunately, O’Connell reports that he has so far been able to successfully charge for cleaning vehicles before and after repairs. While he and his staff are committed to doing everything they possibly can to apply disinfectant and keep customers’ vehicles clean and safe (including wiping down steering wheels, door handles and “anything in the car we touch�), he is cautious not to overstate the protections these procedures provide to motorists. “I was told by some legal authorities you’ve got to watch [with] guaranteeing that. All you can say is, ‘We’ve done it, but I can’t guarantee it’s COVID-pure.’�
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Riding the National Whirlwind
With stay-at-home orders across the country severely impacting the number of cars on the road, it comes as little surprise that auto insurers are tightening their grip on cost containment. Reports of insurers refusing to pay for third-party scanning and other sublet work are hitting the Hammer & Dolly offices with great frequency these days, while shops in and out of the WMABA region have expressed unease over the growing appearance of “Opt OE” parts on insurer estimates without any clear definition of what these products are and from where they are being sourced. Progressive in particular is taking drastic actions to address the claims shortfall. In April, it announced the creation of its “Apron Relief Program,” a $1 billion endeavor touted as an attempt to assist “customers, employees, communities and agents” in overcoming current obstacles. As part of the initiative, Progressive’s referral shops received aid checks totaling more than $2 million (or roughly $1,000 per shop based on estimates of the size of the insurer’s current DRP network). Additionally, the “Apron Relief Program” is offering “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.” While this is being marketed as a service for American heroes, it is
reasonable to conclude that this also serves as a way to incentivize insureds to only use Progressive-aligned facilities. Automakers are also working hard to reinvent the wheel. In late May, Ford announced that it had designed a new heated software enhancement to “neutralize” COVID-19. Currently being piloted in 2013-2019 Ford Police Interceptor Utility vehicles, this software has been designed to elevate passenger compartment temperatures beyond 133°F, which the automaker says is “long enough to help disinfect vehicle touchpoints.” Once activated, the vehicle’s powertrain and climate control systems work together automatically to hit the desired temperature. The software warms up the engine to an elevated level, and both heat and fan settings operate on high. The software automatically monitors interior temperatures until the entire passenger compartment hits the optimal level. From there, that temperature is maintained for 15 minutes. “This heated process can be used by law enforcement regularly to help sanitize vehicles when officers are not inside,” stated Ford in a press announcement. “When used in conjunction with sanitization guidelines approved by Centers for Disease Control and Prevention, flooding the passenger compartment with elevated air temperature can help reach areas that may be missed by manual disinfecting procedures. Heat has the ability to seep into crevices and hard-toreach areas, helping reduce the impact of human error in applying chemical disinfectants.”
Continued on page 32
6913 Ritchie Hwy #2, Glen Burnie, MD 21061 410-689-8066 Fax: 410-689-8008 subparts@wilkinsautomotive.com www.wilkinssubaru.com
July 2020
27
INDUSTRY
ADVICE
Do you have a question for Mike? Contact Hammer & Dolly Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.
ASK MIKE: How Can the Industry Support Vocational Schools Hurt by COVID-19? This month, we “ASK MIKE” for his thoughts on how the industry can help vocational schools whose budgets and resources have been impacted by the coronavirus pandemic. We at Hammer & Dolly hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.
Hammer & Dolly: As we prepare to move into the fall soon, it’s obvious that vocational schools will be one segment of this industry that will be really hurting as a result of COVID19. What have you heard from vocational schools as far as what they’re facing, and what can the industry do now in the summertime to pull things together to help these schools once they are back in session? Mike Anderson: Because of my involvement in the ASE Test Review Committee and some things ASE does with high schools, I know a lot of instructors who have reached out to me personally. I sent emails out to Axalta, AkzoNobel, Car-O-Liner, 3M, BASF, the Automotive Management Institute [AMI], the Society of Collision Repair Specialists [SCRS] and other entities I thought might have online e-learning modules or videos that instructors could use. Obviously, it’s not hands-on training, but if a shop has ever attended some really good online training that it
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liked, that shop should reach out to that vendor and see if it would be willing to share that with some of the vocational instructors. As shops start to get back on their feet a little bit, if there’s an instructor who’s obviously having issues or is being furloughed, maybe there’s a way to find a spot for them in your organizations to improve their skill sets. As industry stakeholders, we should be reaching out to our vendors and the companies we do business with to make that introduction between them and instructors. We don’t want to lose the momentum. When instructors don’t have students, they lose their programs. We don’t want to have situations where instructors don’t have the resources to keep students engaged. We need to step up. Obviously, if we have financial resources we can give to a school, that’s always helpful, but I recognize these are challenging times. So, outside of money, we can just make the right introductions between instructors and the companies that can offer them some training. H&D: At the time of this conversation, it’s just under three months since the lockdown began. Things are beginning to reopen, which means more people are hitting the roads. How would you describe the current mindset of the industry based on your experiences?
Building instructor/vendor relationships.
MA: I’ve got to tell you; I’ve only heard a couple of naysayers. Most shops haven’t expressed any gloom and doom. Most people started out thinking, ‘This is only going to be for a little while. I’m going to keep my employees on, and we can use this time to clean up the shop and paint the walls.’ As things went on a little bit longer, some people started making cuts; they had to make some hard decisions. I’ve seen some data indicating that claims count is already starting to spike up a little bit, but we’re still down by a high percentage nationwide. But I think the good shops have the right relationships with the right banking institutions, and they got their PPP loans. A lot of non-DRP shops always marketed their businesses before this; they didn’t have to rely on insurance work. They haven’t felt the pinch as hard as someone who was relying on DRP work. For the non-DRP shops, the marketing has paid off. There were also a lot of people who were embracing technologies, such as electronic signatures, in advance. They were poised for this, and they seem to be doing okay with it. Some shops managed their finances well and have been able to keep their staff and do upgrades. Honestly, I can only think of two people – who were both from dealership shops far away from the WMABA market – who told me they were struggling. They laid off 75 percent of their staff. But for the most part, people are staying positive and are still in a good frame of mind. They’re using this time to train, train, train. I think things are going to look up sooner rather than later. Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com) H&D
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NATIONAL
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by the state, with indoor gatherings limited to a maximum of 10 people. NORTHEAST show manager Thomas Greco of Thomas Greco Publishing adds, “The association struggled with making a final decision but ultimately determined the health and safety of everyone involved in NORTHEAST must remain our top priority, along with providing all with a high-quality trade event that is not only safe, but worthwhile for exhibitors and attendees alike.” To honor the experience you expect from an in-person trade show, AASP/NJ is thrilled to announce an online NORTHEAST event for the weekend of August 21-23. The virtual experience will allow attendees to enter an online NORTHEAST portal and access exhibitors’ products, videos and information and even schedule a private meeting. Educational opportunities will also be available in concert with the NORTHEAST-exclusive Collision Professional Repairer Education Program (P.R.E.P.), presented by the Washington Metropolitan Auto Body Association (WMABA). Exhibitors will be contacted by event management ASAP to discuss all options. Watch for more details coming soon from AASP/NJ and WMABA, and go to bit.ly/NEPREPemailsignup to be added to an e-blast list for important announcements about NORTHEAST and Collision P.R.E.P. To learn more about AASP/NJ, visit aaspnj.org. For more information on NORTHEAST, visit aaspnjnortheast.com. More information on the Washington Metropolitan Auto Body Association (WMABA) is available at wmaba.com. H&D
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NATIONAL
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association in a May statement to RDN. “Instead, SCRS was routinely advised that it was being researched, escalated and prioritized, with no conclusion to date and no further commitment to resolve.” SCRS will provide updates to the industry as they become available. In other SCRS news, the association plans to host a “virtual” Open Board of Directors Meeting via Zoom on July 20. SCRS will also hold its annual Board of Directors election on the same day. Event details were still being finalized at press time; further information will be made available at scrs.com. H&D
COVER STORY Continued from page 27
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The Ford engineering team initiated the project in late March and soon conducted software operational trials in vehicles owned by the New York City Police Department, the Los Angeles Police Department, the Michigan State Police, the Massachusetts State Police, Boardman Township Police Department in Ohio and Seminole County Sheriff’s Office in Florida. Ford is looking into bringing this technology to additional Police Interceptor Utility vehicles. Plans to introduce this technology to other Ford lines were not announced at press time. As COVID-19 continues to create a moving target for everyone involved in the automotive industry, businesses of all sizes and specializations will undoubtedly have a challenging road ahead. With profits and procedures changing by the day, shops in the WMABA area face the need to revolutionize how they protect the safety and health of consumers and employees. Perhaps the only guarantee available in today’s industry is that the future will be far different from what anyone could have imagined. Only time will tell if the months and years ahead will lead to struggle or success. In the meantime, the industry is strapped in for a ride that won’t be slowing down anytime soon. H&D Chaos always breeds ingenuity, and it’s very exciting to see new technologies that could prevent the spread of coronavirus/COVID-19 and other communicable bacteria, viruses and diseases. Our shops are suffering greatly through this, as is the rest of the country. Where improvement needs to happen soon, in my opinion, is the education of claims-handling practices to match the complexity of correct repair methods and how to understand those things remotely. A level of trust in the professional needs to happen, and now. — Jordan Hendler
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