DECEMBER 2020
Happy Holidays from
AASP-MN Board of Directors and Staff
PLUS: HELP LEAD THE ALLIANCE: Call for Board Nominations
DRPs TO STAY OR GO? TA L DIGI US BON NT TE CON
Part Three
E! D I S IN Your Champion. Your Ally. www.aaspmn.org
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ONE ONE SOLUTION
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2 | December 2020
AASP-MN News
CONTENTS Vol. 29 No. 12 AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 Roseville, MN 55113 Phone: 612-623-1110 Fax: 612-623-1122 email: aasp@aaspmn.org website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. 2020 All rights reserved. Cover image www.istockphoto.com.
AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.
ASSOCIATE DIVISION DIRECTOR’S MESSAGE ..........................4
Pandemic, Phase Two by Loren Feldkamp LEGISLATIVE UPDATE................................................................6
2020 Minnesota Election Recap by Kevin Walli, AASP-MN Lobbyist
AASP-MN BOARD MEMBERS 2020 - 2021 PRESIDENT Matthew Feehan IMMEDIATE PAST PRESIDENT Carl Thomas SECRETARY-TREASURER Tom Archambault
LOCAL NEWS ............................................................................8 AASP-MN FEATURE ..................................................................14 DRPs: To Stay or Go? - Part Three by Joel Gausten CASH IN ON YOUR MEMBER BENEFITS! ....................................17 AASP-MN and CARS Team Up to Offer Discounts to Collision Shop Members
COLLISION DIVISION DIRECTOR Jesse Jacobson MECHANICAL DIVISION DIRECTOR Tony Newman
DIGITAL BONUS CONTENT (@ WWW.GRECOPUBLISHING.COM)
ASSOCIATE DIVISION DIRECTOR Loren Feldkamp
National News
DEG Estimating Tips
Insurance I.Q.
Partners in Prevention
COLLISION SEATS Randy Miller Lee Schlosser MECHANICAL SEAT Jeremy Nordgren
STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc.
HAVE A SAFE AND HAPPY HOLIDAY SEASON From the AASP-MN Board of Directors & Staff Matthew Feehan, Fix Auto Brooklyn Park, President Carl Thomas, Lancer Service, Immediate Past President Tom Archambault, BLVD Autoworks, Secretary/Treasurer Loren Feldkamp, LubeTech & Partners, Associate Division Director Jesse Jacobson, Heppner’s Auto Body, Collision Division Director Tony Newman, Dale Feste Automotive, Mechanical Division Director Randy Miller, Collision Specialists, Collision Seat Jeremy Nordgren, Nordgren Automotive, Mechanical Seat Lee Schlosser, Autoworks Collision Center, Collision Seat Judell Anderson, Executive Director Kevin Walli, Lobbyist Jodi Pillsbury, Office Manager Tom Kluver, Membership Coordinator
PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert | lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com
www.grecopublishing.com
ADVERTISERS’ INDEX A-Con Recycling ......................................................12 AmeriPride..................................................................9 CBIZ ..............................................................................7 Dentsmart ..................................................................8 Inver Grove Honda/Inver Grove Toyota ..........6 Jack McClard ............................................................9 Keystone ....................................................................15 Maplewood Toyota ................................................13 Mopar Group ............................................................13 Morrie’s ......................................................................4
AASP-MN News
MPA ..............................................................................IBC Network 1 Solutions ................................................15 Proven Force ............................................................OBC Reliable Automotive Equipment ........................10-11 Rosedale Chevrolet ................................................16 Sherwin Williams ......................................................IFC Spanesi ........................................................................5 Straight & Square ....................................................16 Toyota Group ............................................................18
December 2020 | 3
ASSOCIATE DIVISION DIRECTOR’S MESSAGE
Pandemic, Phase Two The anticipated second wave of the COVID-19 virus has hit the world health Loren Feldkamp scene head on. Record numbers of new AASP-MN cases have been announced, heading for Associate Division 4,000 per day in Minnesota due to the inDirector creased rapid spread of the virus. As I write this, the positivity rate is over nine percent and heading for the 10-11 percent rate – up from the six percent range in prior weeks. Intensive care units in hospitals are now nearly full, reportedly at 92 percent of capacity in use and increasing. The new case rate is much higher than March and April levels and new daily deaths are approaching the March and April levels. Schools are now reverting to 100 percent virtual learning as community infection rates increase over previous levels. Healthcare workers and the 20-to 24-year-old age group show the highest increase in cases, with the 85-to 89year-old group still showing the highest number of deaths. In an effort to slow the spread, Minnesota will be opening more testing sites, some equipped with saliva-based quick response tests, as well as placing additional restrictions on gathering spaces. Nationally, the United States is setting records for daily confirmed cases, having surged 45 percent over previous levels in the last several weeks. The United States death toll has risen 15 percent recently. Internationally, record cases
4 | December 2020
abound and many nations are planning and executing lockdowns of businesses, as well as fearing more dismal economic news. Closing bars and restaurants is the effort that seems to be helping slow the spread of the virus most often. The vaccine timeline is still hoped to be authorized by year end 2020. Several national and international companies are in phase three testing and hoping to be able to start distribution soon; first to healthcare workers by year’s end, if testing protocols can move quickly enough. Some are touting a 90 percent effective rate. Preventing the spread of the virus seems to be overtaking economic fears as the number one priority among citizens. The antiviral drug Remdesivir is the only one with full FDA approval for hospitalized patients and has been helpful with some patients’ recovery. A loss of taste and smell after overcoming other symptoms is a curious consequence. As bars, restaurants, hotels, airlines and other hospitality industries continue to suffer, we have seen employment shifts to essential industries occur. Many job openings remain if workers want to enter new careers that they are qualified for. Numerous companies are struggling to find qualified workers to fill roles as they return to normal business levels. The work-at-home mandates continue for many companies and workers. The emphasis on digital meeting tools and
AASP-MN News
Continued on page 12
AASP-MN News
December 2020 | 5
LEGISLATIVE UPDATE
2020 Minnesota Election Recap Very little changed at the Minnesota Capitol as a result of the 2020 General Election. The same leaders who struggled through the 2020 legislative session and Kevin Walli six special sessions will continue to work AASP-MN Lobbyist with the same political divisions that we’ve had for the past two years. Republicans continue to control the state Senate. Their margin of majority control shrunk to the narrowest margin possible – 34 Republicans to 33 Democrats. The Democrats retained control of the House, but they too lost seats and will have a narrower margin with which to work. The Democrats now hold the House by a margin of 70 Democrats to 64 Republicans, down from a 75-59 seat advantage before the election. Governor Walz did not face re-election this year. He will continue working with Senate Majority Leader Paul Gazelka and Speaker of the House Melissa Hortman to shape the budget for the next two-year cycle as the COVID-19 pandemic continues and the state faces a multibillion-dollar deficit. After each election cycle, the House and Senate reorganize. The committee structure is reviewed and oftentimes committee chairs change. This year, there were so few changes in the Senate that they may very well keep the same committee structure and same committee chairs that they have had for the past two years. On the House side, eight DFL Committee Chairs were either defeated or decided to retire. This provides a little more
6 | December 2020
opportunity to jockey things around in terms of the committee make-up. We expect the Senate and House leaders to reveal their committee structure and committee assignments in December – in advance of the beginning of the legislative session scheduled for January 5. One area of special interest for AASP-MN is the leadership and make-up of the House and Senate Commerce Committees. Senator Gary Dahms (R-Redwood Falls) has been chair of the Senate Commerce Committee and he will likely retain that position. Senator Dahms’ career before he came to the legislature was in the insurance industry. Likewise, Senate Majority Leader Paul Gazelka (R-Nisswa) also made his career in the insurance industry. To make changes with respect to insurance claim practices, we will need to convince Senator Dahms and Majority Leader Gazelka of the importance of making the changes that AASP-MN proposes. The House is more of an open book. The chair the last two years was Representative Laurie Halverson (DFL-Eagan). Representative Halverson did not run for re-election to the House – instead seeking a seat on the Dakota County Board of Commissioners. This means we will have a new chair with whom we will be spending time to discuss the repair industry concerns with state law affecting insurance claim practices. We will be reaching out to new members to educate them about the repair industry. All of you are encouraged to reach out to your legislators to educate them about the industry and establish yourself as their “go-to” person whenever questions arise regarding the auto repair business.
AASP-MN News
Two Great Companies. One Great Program. ®
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AASP-MN News
December 2020 | 7
LOCAL NEWS Help Lead the Alliance The Alliance is looking for automotive industry professionals who are interested in advancing the industry by serving in leadership positions on the AASP-MN Board of Directors and advisory committees in 2021. A number of positions will be open on the Collision, Mechanical and Associate Advisory Committees, as well as the Government & Regulatory Affairs Committee. There will also be two seats open on the AASP-MN Board of Directors, one collision and one mechanical. Volunteer service is a great way for AASP-MN members to get more involved in the Alliance, influence the direction of projects and priorities and positively impact the association and the industry. If you have a personal interest or would like to nominate someone else, contact the Nominating Committee Chair Carl Thomas at (651) 224-0267 or carl@lancerservice.com or the Alliance office at (612) 623-1110 or (800) 852-9071 or aasp@aaspmn.org. Nominations must be received by January 10, 2021.
AASP-MN Partners with CARS Cooperative for Member Discounts AASP-MN is pleased to announce that it has entered into an agreement with the Collision Automotive Repair Services (CARS) Cooperative to increase members’ buying power. Benefits of the CARS Cooperative will automatically be included with AASP-MN membership at no additional cost. Under the new agreement, AASP-MN members automatically become part of CARS Connection Plus, which offers a slew of special rates and discounts. Participating vendors include I-CAR, Norton, Carborundum, Wurth, FindPigtails, Hertz, Axalta Coating Systems and dozens more. AASP-MN Executive Director Judell Anderson is excited to provide members the level of savings made possible through CARS. “The CARS Cooperative has been a partner to associations across the country for almost 30 years. Partnering AASP-MN with CARS benefits is one more way to provide di-
8 | December 2020
rect, tangible value to our members and we are pleased to add CARS Cooperative savings to our benefit offerings.” “We are excited about this new partnership between AASP-MN and CARS,” adds CARS Executive Director Matt H. Boyles, Phd. “This will enhance the benefits of membership in AASP-MN and increase the shops’ options and opportunities for savings. It’s truly a win-win-win situation for CARS, AASPMN and especially for the shops.” A complete list of vendors and programs available to AASP-MN members can be viewed at aaspmn.org/savings/. More information on CARS is available at cars.coop. MNCARS Provides High School Support As part of its 2020 workplan, Minnesota Careers in Auto Repair & Service (MNCARS) “adopted” two high school programs to provide enhanced support and mentoring during the year. With help from industry suppliers, MNCARS recently invested over $5,000 into automotive programs at White Bear Lake High School and Independent School District (ISD) 916. ISD 916, based at Century College in St. Paul, provides shared programming to 14-member school districts. The automotive program, overseen by instructor John Witthauer, received equipment and supplies to support a new detailing program. Shop vacs, pressure washers, buffers and detailing supplies – and training for their use – were among the items donated by MNCARS and its industry partners. Witthauer stated, “Last year the NE Metro 916 auto program committed to expand our curriculum to include an introductory class for detailing to allow our students to explore the auto body industry and to help the collision industry gain some new technicians. We are grateful for the support we received from MNCARS, which will enable us to introduce the detailing classes in the spring semester of 2021.” The automotive program headed by Derek Doescher at the White Bear Lake High School South Campus received support in the form of multimeters, motor oil, wheel weights and other consumable supplies. The program enjoys a current enrollment of over 140 students in five class offerings. Doescher commented, “We could not be growing our program like we are without the assistance from MNCARS and our local industry. We have already taken leaps and bounds to improve the education the students receive.”
AASP-MN News
“Everybody complains about the lack of technicians but very few are doing something about it,” said Dan Sjolseth, chairman of MNCARS and owner of Superior Service Center in Eagan & Apple Valley. “For five years now, AASP-MN and its members have funded and developed multiple resources to promote industry careers through MNCARS. I hope the industry takes note and follows our lead so we can have an even bigger impact,” he added. MNCARS is pleased to recognize the following industry supporters for their help in this effort: • 3M, Woodbury • Auto Value Parts Stores/APH, St. Cloud • Bosch Automotive Service Solutions, Owatonna • Finishmaster, Minneapolis • Key Automotive, Hugo • Lube-Tech & Partners, Golden Valley • Superior Service Center, Eagan/Apple Valley Minnesota Careers in Auto Repair and Service (MNCARS) is a non-profit organization established in 2016 by the Alliance of Automotive Service Providers
Continued on page 12
AASP-MN News
December 2020 | 9
INSURANCE I.Q.
Workers’ compensation is a system of no-fault insurance that provides monetary and medical benefits to employees, or their survivors, for workrelated injuries and illnesses. Minnesota workers’ compensation laws define employer responsibilities in the state’s workers’ compensation system. The Division of Workers’ Compensation (DWC), part of the Minnesota Department of Labor and Industry (MDLI), monitors compliance with workers’ compensation requirements throughout the state. COVERAGE REQUIREMENTS All employers in Minnesota (regardless of size) are required to have workers’ compensation coverage. Employers may satisfy this requirement either by purchasing a workers’ compensation insurance policy or by obtaining the DWC’s approval to self-insure. All employers must pay the full cost of providing coverage and may not require their employees to pay any portion. For an employer that provides coverage through an insurance policy, the insurance carrier must notify the DWC, within 10 days, that a policy has been issued, renewed, canceled or terminated. NOTIFICATION OF COVERAGE Employers must post a notice to employees that they have a workers’ compensation insurance policy that complies with state law. The notice must be displayed in a conspicuous place and must advise employees of: • Their rights and obligations in the workers’ compensation system; • The assistance available to them; • How the workers’ compensation system works; and • The name and address of the workers’ compensation carrier that is insuring them or the fact that their employer is self-insured. Employers may use this model poster to satisfy these requirements. The notice must be displayed at all locations where the employer is engaged in business.
EMPLOYER’S REPORT OF INJURY Employers must use the DWC’s First Report of Injury form to notify their insurance carriers or the DWC of any work-related injury or illness claims. If an incident results in an employee’s death or serious injury, the employers must report it to the DWC within 48 hours. This initial report may be made by telephone or personal notice, but employers must still submit the First Report of Injury form within seven days from when the incident happened. Any other work-related injury must be reported to the employers’ insurance carrier within 10 days of an incident if it: • Results in employee incapacity (total or partial); or • Prevents the injured employee from performing his or her labor for more than three calendar days. Insurance carriers and self-insured employers are required to file the First Report of Injury form with the DWC within 14 days of the incident. When an employee fatality takes place after an initial injury is reported, employers are required to report the fatality to the DWC within 48 hours of when they first learn of it. An employer that provides notice to the Occupational Safety and Health Division of the Minnesota Department of Labor and Industry of a fatality or a severe injury is considered to have satisfied its reporting obligations with the DWC. At the time the First Report of Injury form is filed with the DWC, employers must also provide a copy of the injury report and the “Minnesota Workers' Compensation System Employee Information Sheet” to the affected employee. BENEFIT PAYMENTS AND REPORTING Employers must begin paying workers' compensation benefits to or for injured employees as soon as reasonably possible. Medical benefits must be paid no later than 30 calendar days after receiving a bill for treatment, unless the employer denies the charge. If only part of a bill is in dispute, employers are required to pay the undisputed part of the bill within the established guidelines.
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Workers’ Compensation – Employer Responsibilities
BENEFIT DISCONTINUANCE & TERMINATION An employer may discontinue paying temporary total disability benefits when an injured employee returns to work. In this case, the employer must notify the DWC of the discontinuance of benefits and the justification for it within 14 days of the date when the employer has notice that the injured employee has returned to work. Employers must also notify every affected employee of their intention to discontinue the payment of benefits. Employees have the right to object to the discontinuance. Discontinuance of benefits for any reason other than an employee’s return to work must wait until the discontinuance notice and any applicable reports have been filed with the DWC. BENEFIT OVERPAYMENTS Minnesota law prohibits employers from requiring their employees to refund or return any benefit overpayment if the payment was: • Voluntarily paid; • Apparently or seemingly in accordance with Minnesota’s workers’ compensation laws; or • Received by the employee in good faith.
offset overpaid benefits against medical expenses, or any penalty awarded to the employee for late payment or underpayment of benefits. Minnesota workers’ compensation laws allow for recovery or reimbursement of overpaid benefits when payments are not received in good faith. Benefits are not received in good faith if: • They are obtained through fraud; or • The employee knew the compensation was paid under a mistake of fact or law and has not refunded it. RECORDKEEPING Employers must retain or arrange for the retention of: • All billing data that is electronically transmitted by health care providers to pay for the treatment of an injured employee; or • All electronically transmitted payment remittance advice. This information must be retained for at least seven years in the standard electronic transaction format required by the Minnesota Department of Health. Employers must be able to provide this data to the DWC or the Department of Labor and Industry within 120 days of a request. In addition, this information is considered confidential data on individuals. Confidential data is protected nonpublic data and employers must take adequate measures to ensure it is kept safe and private. However, the DWC may use this data to publish aggregate statistics and other summary information regarding the costs and outcomes of treatment in the workers’ compensation system. MORE INFORMATION Contact Brad Schmid at 763-549-2247 or bschmid@cbiz.com.
To recover overpaid benefits, employers may take a partial credit (up to 20 percent) of future periodic benefits such as benefits for temporary total disability, temporary partial disability, permanent partial disability, permanent total disability, retraining, death, economic recovery or impairment compensation. Employers may not AASP-MN News December 2020 DIGITAL BONUS CONTENT D2
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Other benefits must begin within 14 days after the employer receives actual notice of an injury or death. An extension to begin payment within 30 days is possible if approved by the DWC. Periodic benefits, such as temporary total disability or death benefits, must be paid at intervals as nearly as possible to the intervals when employee wages are paid. However, the DWC may authorize the lumpsum payment of periodic benefits. Employers are required to notify the DWC when they first pay benefits to an injured employee. The DWC may require employers to continue filing payment receipts to monitor compliance with Minnesota’s workers' compensation laws. At its discretion, the DWC may inspect these filings to determine compliance.
Put Your Sidewalks on a Low Salt Diet Use Less and Still Be Safe As the first snow of the season arrives, Minnesotans start thinking about clearing snow and ice from surfaces and how to travel safely during snow events. Auto service and collision shops often see firsthand the effects when conditions aren’t safe for travel, or when drivers do not exercise proper caution. Road salt is an important and widely used public safety tool during wintry weather. However, more salt does not always mean safer conditions. We all can do our part to assess our winter maintenance routines and to reduce salt. Salt use matters because Minnesota has a growing salty water problem. When snow and ice melt, the salt has to go somewhere. It flows directly into ditches and storm drains and on to lakes, streams, wetlands and groundwater. Fifty water bodies in Minnesota exceed the state chloride standard to protect fish and other aquatic life, and 75 more water bodies are at risk. Road salt is the largest source of chloride pollution. Here are some tips to reduce salt and keep parking lots and sidewalks clear: • Manually remove snow first. Use a broom, shovel, snow blower or plow to remove as much snow as possible. The more that’s removed manually, the less ice forms and the less salt is needed. Remove snow quickly to prevent compaction. • Spread salt grains three inches apart. Salt effectively removes snow and ice if the salt grains are scattered about
Too much salt!
three inches apart – no piles! Limit salt use to trouble areas and slippery spots. • Less is more. A 12-ounce coffee mug full of salt (one pound) is enough for a 20foot driveway or 10 sidewalk squares (roughly 1,000 square feet). That works out to four mugs of salt for seven parking spaces. • 15o F and below is too cold for salt. Most salts stop working at this temperature. Use sand instead for traction, but remember sand does not melt ice. • Sweep up extra salt. Any salt visible on dry pavement is no longer doing any work and will be washed away into local waters. Sweep to save it for reuse. Use less next time. • Train staff. View “Winter Site Maintenance for Small Sites.” This short video is helpful for training staff who clear entryways, sidewalks or other small sites. Find the video on the Minnesota Pollution Control Agency webpage, bit.ly/smartsaltonyourown.
That's better. Salt is effective when grains are 3 inches apart.
• Hire a certified Smart Salting contractor. Hire a winter maintenance professional trained and certified in limiting salt use. The total cost of property damage from one ton of salt is estimated at $800–$3,300 (Fortin Consulting, 2014). Salt damages building exteriors, sidewalks, steps, rails, curbs, parking lots and vehicles. Perhaps you’ve seen “vegetation burn” along sidewalks. Salt tracked indoors ruins entrance carpets and flooring. By using these tips, business owners or property managers may save on more than just the cost of salt. It takes only one teaspoon of salt to permanently pollute five gallons of water. You can play an important role in protecting Minnesota’s waters. For information on Smart Salting training and contractors visit the MPCA website pca.state.mn.us/ and search for “smart salting.”
AASP-MN News December 2020 DIGITAL BONUS CONTENT D3
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PARTNERS IN PREVENTION
Audatex: Tesla Model 3 HV Battery Disable Recent DEG Inquiry 16931 for Audatex has updated the Model 3 HV battery disable labor and provided feedback about the operation. “We have reviewed the current OEM service information for the HYBRID BATTERY DISABLE (GN 0702). The labor time has changed from 0.4 hours to 1.0 hours which includes D&R of 12 Volt battery, R&R of HV probe cover and electrical isolation. The time provided is for only one iteration as duplicate efforts are excluded as per the Database Reference Manual. All times are before option and/or overlap considerations. The change will appear on the December 2020 release.” Mitchell: Checking and Filling Transmission Fluid (ATF) Inquiry 17115 identified that checking and filling ATF is not factored into the radiator labor time. Additional labor for checking, filling and fluid cost is NOT included and would be an on-the-spot evaluation. Always reference OEM service procedures for necessary operations to refill these components as they can vary beyond filling from the dip stick tube (if equipped). All Three Systems: Duplicate R/I and/or Fitting Operations Some labor operations may include operations which are only accounted for one time during the course of repair. If duplicate r/i or fitting operations are performed, this would be an on-the-spot evaluation for additional time needed. An example would be when loosening a headliner is included to gain access to a roof- mounted antenna.
The time to temporarily raise and re-lower the headliner while the vehicle is being moved in various repair stages is NOT INCLUDED. Published labor times are based on one continuous operation and do not account for variables in the repair process. CCC: Rear Body Replacement “Rear Compartment Trim (as necessary)” Recent DEG Inquiry 17218 states that footnote “Rear Compartment Trim (as necessary)” is the general description used to describe any “Trim” that directly attaches to the inside of the “Rear Body Panel.” Some vehicles where Rear Body compartment trims do not touch the rear body panel, may NOT be included. Users can verify specifics in the footnotes, if available, or in the GTE P- Pages. When a repairer runs across a rear body panel replacement where the rear body trim not touching the rear body panel is still showing included with NO footnotes, please submit a DEG Inquiry for research of the concern. CCC & Mitchell: H Notes/Labor Footnotes Both CCC and Mitchell have H Notes/Labor Footnotes, which may reference important information to consider when repair planning. Examples of H notes in CCC and Labor Notes in Mitchell may include critical bulletins repairers would need to reference for the OEM information about steering gear replacement. Always use OEM repair information to verify the latest information on the vehicle you are repairing.
Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view these tips and others on the DEG website, DEGWEB.ORG. AASP-MN News December 2020 DIGITAL BONUS CONTENT D4
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ESTIMATING TIPS
Massachusetts Residents Vote ‘Yes’ on Direct Access to In-Vehicle Data Election Day in the United States proved to be a moment of victory for the auto care industry. On November 3, Massachusetts voters overwhelmingly voiced their support at the ballot box for Ballot Question One, which will preserve their right as vehicle owners to have access to and control of their vehicle’s mechanical data necessary for service and repair at the shops of their choice while also banning a vehicle manufacturer from requiring its authorization to access the data. “The Auto Care Association is extremely pleased that Massachusetts voters have overwhelmingly supported passage of Question One on this year’s ballot,” said Bill Hanvey, president and CEO, Auto Care Association. “Approval of Question One ensures that car owners can control the mechanical data that is being transmitted by their vehicle through telematics. This referendum also means that despite advances in technology, owners will be able to have their repair data shared directly with their trusted independent shops. The people of Massachusetts have decidedly favored competition in auto repair.” For more information, visit massrighttorepair. org. For questions contact Aaron Lowe, senior vice president, regulatory and government affairs at aaron. lowe@autocare.org. AASP National Elects New Officers; MN Provides State Report Despite the logistical restrictions placed on them in light of COVID-19, various affiliate association representatives still met in late October for a two-day AASP National Board meeting thanks to Zoom. During the first day, the following industry leaders were elected to comprise the 2021-2022 AASP National Executive Board: President – Tom Elder (Alliance of Automotive Service Providers of New Jersey), Vice President – Molly Brodeur (Alliance of Automotive Service Providers of Massachusetts), Secretary/Treasurer – Mike Moehlenkamp (Alliance of Automotive Service Providers of Missouri), Chair of Executive Directors – Amanda Henry (Alliance of Automotive Service Providers of Pennsylvania) and Immediate Past President – Bill Adams (New York State Association of Service Stations and Repair Shops). Elder had previously served a two-year stint as AASP National vice president. He is a longtime member and past president of AASP/NJ and has been actively involved with local collision and mechanical repair associations since the 1980s. He is the president of Compact Kars, Inc. of Clarksburg, NJ. “I am pleased to be elected as president of the
National Board and am hoping that we can further the cause through the U.S.,” commented Elder. “I look forward to directing the Board to make a difference for our member shops throughout the country.” Pat Kane, assistant vice president/regional marketing manager of United Fire Group, appeared at the meeting to provide an encouraging update on his company’s ongoing relationship with AASP National as a benefit provider. As the result of a seven-percent dividend, United Fire Group sent out more than 700 checks in 2020, totaling more than $540,000 to AASP member businesses insured on the program. The distributed checks averaged $764. AASP-MN State Report As with many automotive industry organizations, AASP-MN started 2020 with business as usual. In his affiliate report, longtime association member and Past President Dan Sjolseth shared that the association awarded $19,500 toward technical school scholarships funded primarily by the Race for Automotive Education event in mid-January. From there, AASPMN continued its legislative push to ensure coverage and payment for repairs conducted in accordance with OEM repair procedures. With no legislative action ultimately taken on the matter, Sjolseth noted that AASP-MN intended to re-evaluate its efforts following the conclusion of the current election season. As the year moved on, AASP-MN worked hard to stay one step ahead of the pandemic’s impact on the state’s collision repair and auto service industry. As former AASP-MN President Bruce Tschida shared during the affiliate report, the association ramped up communication with its members via weekly COVID19 updates on Payroll Protection Program (PPP) loans and related issues. Additionally, the association moved its educational offerings (including special General Motors training) to a webinar format. Fortunately, most membership renewals were in before the lockdown hit in March, and AASP-MN continues to receive invaluable support from its sponsors. Additionally, it was successful in producing a special online video – now available on the AASP-MN YouTube channel – on the benefits of association membership. “We accomplished everything that we had on our agenda for the year, even with all of this going on,” Tschida said. “It’s been a tough year, but we are fortunate in Minnesota; our association is pretty financially solid.” Although AASP-MN has had to contend with certain inescapable realities of COVID-19 (including the cancellation of its annual Golf Outing and Annual Meeting & Leadership Conference), Tschida was pleased to report that the general mood of his fellow members remains positive.
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NATIONAL NEWS
NASTF Announces New Website The new and improved NASTF.org will be launching in a few weeks. Whether a longtime NASTF member or a brand-new user, the customizable platform will ensure that users receive timely, customized information to best suit their business’ needs. With the new launch, all NASTF users will be required to set up a free account. The instructions will vary slightly depending on whether they’re an existing member with an account on the old platform, a NASTF user with no account or a vehicle security professional. For questions about the website launch, contact NASTF’s support team at support@nastf.org. The National Automotive Service Task Force is a not-for-profit organization established to facilitate the identification and correction of gaps in the availability and accessibility of automotive service information, service training, diagnostic tools and equipment and communications for the benefit of independent automotive service professionals.
www.langmarketing.com Over 45 Percent of Gen Z Teens Do Not Drive More than 40 percent of Gen Z Americans (born after 2000) who are 19 years old do not have a driver’s license. This is more than double the share of like-aged Baby Boomers (born 1946 to 1964) without a license in 1983. But it does not end there. Over 48 percent of U.S. teens 16 to 18 years old do not drive. The declining share of teenagers who do not drive is slowing the population growth of licensed drivers. This trend has significant implications for vehicle use and aftermarket product volume. Millennials Eclipse Baby Boomers The Millennial generation continues to grow, boosted by young immigrants entering the U.S., while Baby Boomers are in a steady and irreversible decline. Millennials have several values that differ from those
of Baby Boomers, some of which have significant aftermarket implications. Six Major Takeaways: • In 2015, Millennials (born 1985 to 2000) eclipsed Baby Boomers (born 1946 to 1964) as the largest generation in the U.S., and the gap continues to grow. • Millennials do not share the Baby Boomers’ famous love affair with the automobile. Millennials see vehicles from a utilitarian perspective and have little ego-involvement in the vehicles that they drive. • There are significant differences in how Millennials and Baby Boomers make aftermarket buying decisions. Millennials are much more likely than Baby Boomers to use social media and other internet resources to explore what is wrong with their vehicles, how much repairs should cost and where to have repairs performed. • Price can be very important in shaping Millennials’ decisions regarding aftermarket purchases, reflecting the fact that Millennials are the first generation in recent U.S. history to enter adulthood in worse economic shape than did their parents. • Millennials generally are more likely than Baby Boomers to have preconceived notions of what is wrong with their vehicles and what repairs should cost when going to a repair outlet. • Millennials are more likely than Baby Boomers to view vehicles from a utilitarian perspective. This has significant consequences for consumer acceptance of driverless vehicles and transportation as a service (TaaS), as well as other potential developments in the fast-changing mobility market. Eight Million Fewer Domestic Cars by 2022 As the number of light vehicles on U.S. roads climbed an estimated 25 million between 2014 and 2019, fewer than two million domestic nameplates were added to the vehicle count. The population of domestic nameplates will continue to struggle: Lang Marketing predicts that nearly three million domestic vehicles will disappear during 2020 through 2022. The loss of domestic nameplates will not be distributed equally among cars and light trucks. All of the domestic nameplate reduction will be suffered by passenger cars. This will have a significant negative impact on aftermarket product use by domestic nameplates and boost the aftermarket product volume and share of foreign nameplate cars and light trucks in the U.S.
AASP-MN News December 2020 DIGITAL BONUS CONTENT D6
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“Most of our businesses suffered, but we all kind of bounced back […] The attitude here is good. We’re all doing what we have to do, and we’re all surviving. There’s not a lot of negativity here.” AASP National was founded in 1999 by a coalition of state and regional organizations representing the industry. AASP affiliates represent over 8,000 automotive businesses in strategic alliances and monitor federal legislation and regulations. For more information, visit autoserviceproviders.com. For more information on AASP-MN, visit aaspmn.org.
ASSOCIATE DIVISION DIRECTOR’S MESSAGE
Continued from page 4
proper virtual meeting etiquette, tips and tricks continues to move up the priority list. LubeTech and other companies are moving away from older platforms and upgrading to newer, next-generation collaboration, communication and co-working tools such as Microsoft Teams. These newest platforms are more modern and consistent, offer more flexibility and sync with other Microsoft programs already in use. We will all need to continue researching and learning new virtual communication programs as we endure the pandemic-related business challenges. In the automotive industry, the EV movement continues to advance despite low fuel prices. Major automotive companies continue to announce partnerships and collaboration with other partners on EV design, research and facility creation. It appears that creating demand for EVs is a focus in the automotive industry. AASP-MN continues to lead the way in communicating with and informing the automotive industry during this time. Continue to share with others the benefits of your AASP-MN membership and subsequent relationship building within the automotive industry as we navigate phase two of the pandemic.
The effects on society and the economy are many. Please remain diligent about social distancing, handwashing, mask wearing and overall healthcare during this period of increasing outbreaks. Lead the way in keeping your businesses safe. Enjoy the holidays, but be wise in planning large family gatherings. We hope that next holiday season will find us safely resuming family gathering and holiday traditions.
WELCOME NEW MEMBERS: NOVEMBER 2020 CARS Cooperative, Perkins, OK Quality Paint & Body, Minocqua, WI TGK Automotive, Big Lake & Maple Grove
LOCAL NEWS
Continued from page 9
of Minnesota. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state’s college-level automotive service and collision repair programs and, ultimately, into industry workplaces. The comprehensive campaign includes event participation, social media engagement, YouTube advertising and other outreach efforts. Visit carcareers.org for more information. Mark Your Calendars: May 20, 2021 Despite the challenges of 2020, AASP-MN members have adapted quickly and are optimistic about the year ahead and so is the Alliance! Plans are coming together to hold the Annual Meeting and Leadership Conference as an in-person event on Thursday, May 20 at the Nicollet Island Pavilion in Minneapolis. Depending on the status of the virus, the event might look a little different, but we anticipate that we’ll be able to bring members together and deliver the education, networking and camaraderie that everyone is so hungry for right now. Rest assured, AASP-MN is closely monitoring the COVID-
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19 situation and will follow the relevant authorities’ actions, requirements and recommendations regarding the health and safety of attendees for an in-person event. We can’t wait to see you again! A Final Shout-Out to Our 2020 Sponsors Our sponsors play a key role in our organization. They support us. They provide us with extra resources to deliver exceptional programs, education and networking opportunities to members. They help us keep our costs and fees reasonable and affordable. Please acknowledge those companies that support us in this way!
Thank You to Our Sponsors Platinum Fix Auto LKQ-Minnesota Lube-Tech & Partners Gold AASP National Auto Value Parts Stores Axalta Coating Systems CBIZ AiA FinishMaster Podium PPG Automotive Finishes United Fire Group
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Silver aaa Auto Parts AmeriPride Services Colonial Life Enterprise Rent-A-Car O’Reilly Auto Parts PAM’s Auto, Inc. Sherwin Williams Single Source/NCS Suburban Chevrolet Bronze C.H.E.S.S. Twin Cities Auto Glass
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December 2020 | 13
AASP-MN FEATURE By Joel Gausten
DRPs: To Stay or Go? – Part Three This month, we wrap up our series on DRPs with a look at how OEM certifications may impact insurer referral programs down the road. Opening (and Closing) Doors For Superior Service Center in Eagan, succeeding as a DRP comes down to choosing wisely. Currently, the collision repair side of the facility has agreements with three major auto insurers. Earlier this year, the facility elected to drop its fourth DRP after owner Dan Sjolseth and General Manager Tony Hoffman decided that the stress and concessions associated with this arrangement were no longer worth the referral business they received. As Hoffman sees it, “It got to the point they were asking for concessions we weren’t willing to give.” “It just became so combative to do business with them,” Sjolseth adds. Around the same time, the shop was approached by another carrier about joining its program. The offer was declined. “Their practices for locating parts were not in line with our values,” Hoffman says. “They use a lot of aftermarket and ‘OE Surplus’ parts from vendors that we personally don’t vouch for and have not had the greatest luck with. We just decided it wasn’t a fit.” In addition to working with the three insurers, Superior Service Center is currently certified with 17 brands. While embracing certifications has enabled the facility to stay on top of the latest automaker procedures and recommendations, Hoffman admits that finding a coherent balance between OEMs and insurers in terms and operations hasn’t always been easy. “Some carriers ask us for the documentation and go about their business, but it affects our scorecard with others. They say we’re charging more than the shops down the road, but then we find out those shops are not using OEM equipment. It’s been challenging to be both a certified shop that pushes for proper repairs and what the manufacturers call for and a shop that scores well with carriers and gets work from them.” “I think certifications are important to have a place at the table, but I don’t know if they’re that advantageous for us as of yet,” Sjolseth observes. “With
14 | December 2020
that said, I think they’re going to start playing a major role at shops in that they are going to need certifications in order to get work directed to them through telematics.” As automakers continue to partner with shops while developing new technologies in their vehicles, Sjolseth believes that insurers will ultimately have no choice but to align themselves with what the OEMs determine to be safe and proper repairs. “Manufacturers are becoming king and telling us how we need to repair these vehicles. It’s not up to the insurance companies, nor is it up to I-CAR or anybody else. Having said that, insurers are going to have to step up to the plate and say, ‘This is the fair and reasonable price for this,’ and they’re going to have to pay it. It’s just a matter of time before that comes to pass.” Although certification is clearly the wave of the future, the shop owner is quick to stress that insurers will always have a critical presence in the collision repair process. “If we don’t have insurance companies, then we don’t have much business. People aren’t going to self-insure and bring in $20,000 repairs. Insurers are necessary partners to have, but they have to be willing to accept the fact that costs are going to continue to go up. Shops that are becoming certified are spending an awful lot of money on training and equipment.” Leverage and Loss While it will likely take some time before OEM certifications completely (if ever) replace the current DRP model, there is no denying that automaker-referred/endorsed facilities are becoming increasingly important to consumers. During the Society of Collision Repair Specialists (SCRS)-hosted online Repairer Driven Education course “Leveraging Your OEM Certifications”* released online in early November, copresenter Mike Anderson (Collision Advice) explored a recent consumer survey conducted by Assured Performance Network that asked, “What is most important to you when choosing a body shop for collision repair?” Fiftytwo percent selected the answer, “Certified by my vehicle manufacturer,” while only 20 percent selected, “Recommended by my insurance company”
AASP-MN News
– the same percentage that answered that a recommendation by friends and family determined their choice. “That is a complete paradigm shift from five or six years ago, when people trusted their insurance agent or insurance company to make that referral. People now place more trust into [who] the OEM manufacturer says should fix their car.” In addition to his recent RDE discussion of OEM certifications, Anderson works with John Yoswick of CRASH Network (crashnetwork.com) in studying national DRP trends as part of their regular “Who Pays for What?” industry surveys. This past August, CRASH Network reported that “[survey] data indicates that about 17 [percent] of shops over the past year increased the number of direct repair programs [DRPs] in which they participate, while 16 [percent] reported in July having fewer DRP programs than they had a year earlier. Of the nearly 400 shops that responded to a ‘Who Pays for What?’ survey question about changes in their number of DRP affiliations, 29 [percent] said they have not had any DRPs at their location for a year or more.” CRASH Network added that “[net] sales declines were worst among shops that had added DRP programs in the past year, with 79 [percent] of those shops reporting lower sales and just 10 [percent] having higher sales.” As we conclude this series, Anderson has some ideas as to what the survey results say about changes in the DRP landscape. “Some OEMs require scanning or safety inspections, but shops were unfortunately put in a position where they couldn’t serve two masters. You can’t be OEM-certified and not follow the guidelines and maybe be DRP-compliant when you’re getting monitored by severity. For some of [those survey results], I think shops were forced to choose; in some cases, the insurance company made that decision for them by saying, ‘Hey, we’re going to remove you from the program because you’re charging for things that we don’t want to pay for.’” *“Leveraging Your OEM Certifications” and the rest of SCRS’ Repairer Driven Education series is available online at rde.scrs.com through August 31, 2021.
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AASP-MN News
CASH IN ON YOUR MEMBER BENEFITS!
AASP-MN and CARS Team Up to Offer Discounts to Collision Shop Members AASP-MN recently entered into a partnership with Collision Automotive Repair Services, Inc. (CARS), a business cooperative that brings collision repair facilities together with vendors and suppliers to gain discounts, rewards and training on products and services used in their shops. Through this partnership, all AASP-MN collision members will automatically become a CARS Connection PLUS member on January 1, 2021 and can begin receiving CASH BACK REWARDS and discounts on supplies
that you may already be using – or can elect to use. And these benefits are available without disrupting any current jobber/supplier relationships. Check out the programs and discounts available at aaspmn.org/wp-content/uploads/ AASP-MN-CARS-Program-Line-Sheetfinal-1.pdf. For more information or to activate your account, contact Stephanie Sheppard at 405-547-4077 or membersupport@cars.coop.
AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbiz.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums.
WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cuttingedge marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your website, pay-per-click, search engine optimization, social media, and much more! With five levels of RPM to match your budget, goals, and competition, it’s built to drive your shop forward!
EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN members with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance.
Net Driven Contact: Rich Mullen 877-860-2005, ext. 224 / rmullen@netdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees.
EMPLOYEE VOLUNTARY BENEFITS Colonial Life Contact: Deb Ferrao 612-600-4135 / deb.ferrao@coloniallifesales.com or Tracy Bailey 612-801-0139 / tracy.bailey@coloniallifesales.com Dedicated representatives can help members transform their benefit package with competitive rates, value added services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility to create a plan to fit everyone’s needs. UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: John Majchrzak 612-670-4034/ majchrzak-john@aramark.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year. CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available. LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.
INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE & Teamworks products. For more information, contact Customer Service at 888-724-6742, ext. 6986. Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ products-services/collisionrepair-shop-solutions/cloud-estimating for more information.
CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.
REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS CARS COOPERATIVE TECHNICAL INFORMATION HOTLINE Contact: Stephanie Sheppard 405-547-4077 / membersupport@cars.coop IDENTIFIX Members receive discounts on a variety of products 800-288-6220 Members enjoy discounted prices on the industry’s and services they use every day! From discounts on #1 technical information hotline, Direct-Hit. paint and rental cars to office supplies and phone services. Over 50 programs available! AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring For information on decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. any of the programs/ BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars.
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services above, visit www.aaspmn.org/savings/
December 2020 | 17
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: Inver Grove Toyota 1037 Highway 110 Inver Grove Heights, MN PH: 651-306-4630 FAX: 654-457-8705 www.invergrovetoyota.com
Burnsville Toyota 14730 Buck Hill Road Burnsville, MN 55306 800-448-5912 PH: 952-435-8401 FAX: 952-435-8515
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ToyotaPartsAndService.com 18 | December 2020
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CUSTOMER SATISFACTION IS OUR TOP PRIORITY. PARTNERS OFFER DEDICATED WHOLESALE CALL CENTERS. OVER 50 DELIVERY VEHICLES WITHIN PARTNER NETWORK. ALL PARTNERS OFFER TECHNICAL SUPPORT FOR ASSOCIATE VEHICLES.
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