February 2021
The Technology Tug of War: OEM PROCEDURES
VS.
WHAT INSURERS PAY
PLUS: • Member Recruiter of the Year Award • AASP-MN’s Automotive Scholarships Up for Grabs
Your Champion. Your Ally. www.aaspmn.org
CONTENTS Vol. 30 No. 2
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. ©2021 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.
AASP-MN BOARD MEMBERS 2020 - 2021
PRESIDENT Matthew Feehan IMMEDIATE PAST PRESIDENT Carl Thomas SECRETARY-TREASURER Tom Archambault COLLISION DIVISION DIRECTOR Jesse Jacobson MECHANICAL DIVISION DIRECTOR Tony Newman ASSOCIATE DIVISION DIRECTOR Loren Feldkamp 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. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 FAX: 973-235-1963 PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com www.grecopublishing.com
MECHANICAL DIVISION DIRECTOR’S MESSAGE................4 Tap into the Wealth of AASP-MN Membership! by Tony Newman, AASP-MN Mechanical Division Director
LEGISLATIVE UPDATE........................................................6 Legislative Session Begins; AASP-MN Reaches Out to Insurers by Kevin Walli, AASP-MN Lobbyist
LOCAL NEWS.....................................................................8 NATIONAL NEWS...............................................................10 FEATURE............................................................................14 APH/BENCO Expands with JMC Acquisition by Alana Bonillo
COVER STORY....................................................................16 The Technology Tug of War: OEM Procedures vs. What Insurers Pay by Joel Gausten
D.E.G. ESTIMATING TIPS....................................................17 INSURANCE I.Q. .................................................................18 CASH IN ON YOUR MEMBER BENEFITS!.............................22 CBIZ Provides AASP-MN Members a “One Stop Shop” for Insurance Needs UPCOMING EVENTS May 20
Summer 2021
September 28, 29, 30
Annual Meeting & Leadership Conference
26th Annual Golf Outing
Race for Automotive Education
Nicollet Island Pavilion Minneapolis
TBD
ProKart Indoor Racing Burnsville
ADVERTISERS’ INDEX A-Con Recycling.......................................................17 Aramark.......................................................................18
MPA...............................................................................IBC Proven Force..............................................................OBC
Bolt On Technology.................................................5 Dentsmart...................................................................20 Inver Grove Honda/Inver Grove Toyota...........15 Jack McClard..............................................................14 Keystone.....................................................................6 Maplewood Toyota..................................................10 Mopar Group .............................................................17 Morrie’s .......................................................................15
Reliable Automotive Equipment..........................12-13 Rosedale Chevrolet..................................................4 Sherwin Williams.......................................................IFC Spanesi.........................................................................7 Straight & Square......................................................19 CBIZ............................................................................... 11 Toyota Group............................................................ 21
AASP-MN News
February 2021 | 3
MECHANICAL DIVISION DIRECTOR’S MESSAGE
Tap into the Wealth of AASP-MN Membership! by Tony Newman, AASP-MN Mechanical Division Director
As a shop owner, I’m always thinking about the next best thing for my shop. What’s the next improvement? Should I make one? Is it necessary? I have a waste oil burner and could use a new holding tank. My scan tool could use an upgrade. Do I need a sandblast cabinet? Would a new alignment machine be useful? All these items could be easily justified and easily implemented into the shop. But what is the change that would upset and disrupt shop life the most? Shop Management Software (SMS)! Who in their right mind would go and upend every aspect of how their shop operates and turn it upside down and do it on purpose? It would disrupt the front office, the technicians, the accounting, the parts receiving and returning, inventory, scheduling. You name it, and it will change. I am not going to get into what we changed from or to. After a significant time thinking about the former system’s pros and cons and what a new system could offer, it became abundantly apparent something needed to change. On our wish list were digital inspections, easy ways to convey vehicle needs to the customer, and an easier way to communicate in general with our customers.
Most importantly, we wanted the most transparency with our customers as possible. I wanted a cloud-based platform that I could log into from anywhere, better reporting, and accountability from the front office workers to the shop workers. My old system could handle some of these concerns, but at a cost – literally. There was an added cost to add digital inspections and improve customer communications. The process would have been far less seamless. It was not an easy transition. A lot of front-end work was needed to input continued on page 20
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AASP-MN News
AASP-MN News
February 2021 | 5
LEGISLATIVE UPDATE
Legislative Session Begins AASP-MN Reaches Out to Insurers by Kevin Walli, AASP-MN Lobbyist
The Minnesota Legislature convened on January 5 with Minnesota continuing to be the only state in the Union operating with divided government. Every other state has the executive branch and/or both bodies of their legislature controlled by a single party – either Republican or Democrat – while Minnesota has a DFL Governor and DFL House but a Republican-controlled Senate. Essentially, everything approved by the Minnesota Legislature must have passed muster with both political parties. You would expect that what emerges is a more balanced set of proposals, but sometimes it’s simply a barrier to passing anything at all. AASP-MN’s legislative agenda once again seeks to change certain state statutes in the realm of the insurance claims process. The insurance industry is very strongly supported, and very strongly supports, the Republicancontrolled Senate and, in order to accomplish any change to the insurance claims process, we would need the support, or at least “non-opposition”, of the insurance industry. We’ve embarked on that process in the early days of the 2021 legislative session. Our issues this year focus on making it an illegal claims practice for an insurer to deny payment
6 | February 2021
for repair procedures that a vehicle manufacturer designates as necessary to make safe repairs to the vehicle. This is a carry-over issue for us and one on which we have not yet gained the insurance industry’s support. We have also proposed amendments to the statute which reduces the timeframe for inspecting damage and reaching final agreement on repair costs. Our third initiative pertains to establishing a reasonable marketplace within which repair shops must obtain replacement parts. Rather than having a nationwide market, the AASP-MN proposal would require that market price be determined by replacement parts available from vendors within a 150-mile radius of the repair shop. We have engaged in initial discussion with the Insurance Federation of Minnesota on all three of these topics. We are not particularly hopeful that we will see movement on the OEM repair procedures legislation. The Insurance Federation of Minnesota staff has indicated that the insurers believe this is an issue which should be addressed on a national basis rather than with a patchwork of state laws. At our early January meeting with the Insurance continued on page 20
AASP-MN News
SPANESI NEW
AASP-MN News
February 2021 | 7
LOCAL NEWS Member Recruiter of the Year Award The Alliance is pleased to announce the 2020 Member Recruiter of the Year contest ended in a tie. The award honors members who recruit or provide leads for prospective members to the Alliance. Mike Cox (Ed’s Collision Center, Maple Grove) and Carl Thomas (Lancer Service, St. Paul) will both be recognized as 2020’s Member Recruiter of the Year for their efforts. Each recruited a new Associate member and year-long sponsor. “Current members know the value of membership firsthand, and their personal endorsement is by far the most effective recruiting tool that we have,” said Judell Anderson, AASP-MN Executive Director. The Member Recruiter of the Year award is based on a point system: five points are earned for new member recruits and two points are earned for referrals. The member who accumulates the most points throughout the year receives the award. Thank you to the following members who earned points in the 2020 Member Recruiter of the Year contest: • Tom Archambault (BLVD Auto Works, St. Anthony) • Bob Auman (Finishmaster,Fridley) • Randy Miller (Collision Specialists, Austin) • Dan Sjolseth (Superior Service Centers, Eagan & Apple Valley) To learn more about the Member Recruiter of the Year program, contact the AASP-MN office at (612) 623-1110 or (800) 852-9071. AASP-MN’s Automotive Scholarships Up for Grabs The Alliance will be awarding scholarships to select students enrolled in post-secondary automotive (auto service or collision repair) programs. Scholarship awards will be $1,000 per student and can be applied towards tuition or tool purchases. Applicants must be enrolled in a Minnesota-based ASE-accredited automotive program in the fall of 2021. Applications will be reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations. Applications must be submitted
Minnesota Careers in Auto Repair & Service (MNCARS) MNCARS is a non-profit organization established in 2016 by AASP-MN. 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. To further those efforts, MNCARS recently participated in the following events:
•Virginia High School virtual presentation to automotive
students. Thanks to Motormouths John Meglen, J.M. Auto Service, Eveleth and Wes Maki, Chestnut Collision & Restoration, Virginia, for participating in this event.
Take advantage of the resources in the MotorMouth toolbox at https://carcareers.org/motor-mouth/. Get out and get active in your local community promoting industry careers!
8 | February 2021
electronically or postmarked no later than March 31, 2021. Applications can be downloaded from the Alliance’s website, aaspmn.org/scholarships or submitted online at automotivescholarships.com/scholarships/alliance. Online submissions give students the opportunity to compete for several different awards, including those offered by the University of the Aftermarket Foundation Scholarship Committee and over 40 other automotive aftermarket organizations and companies. Specific requirements for each organization’s awards can be found at automotivescholarships.com. The Automotive Education Fund was established in 2002 to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry. Since that time, nearly $270,000 has been invested in student scholarships, SkillsUSA and automotive education programs throughout the state. In 2016, AASPMN’s efforts to attract a future workforce expanded significantly with the creation of Minnesota Careers in Automotive Repair and Service (MNCARS), a statewide marketing and outreach initiative to encourage high school students to pursue an education and career in the automotive service and collision repair industry. Visit carcareers.org to learn more. Sponsorships Available for AASP-MN Annual Meeting & Leadership Conference Vendor sponsorships are now available for the AASP-MN Annual Meeting & Leadership Conference May 20, 2021 at Nicollet Island Pavilion, Minneapolis. The event will feature management education and social activities that provide opportunities to learn, meet and get to know AASP-MN members and other industry professionals. Vendor sponsors are rewarded by increased visibility and recognition within the AASP-MN membership and industry at-large. It’s a great way to stand out, expand marketing dollars and connect with the best shops in the industry. If you are interested in becoming a Vendor sponsor at this year’s event, please contact the AASP-MN office or visit the AASP-MN’s website, aaspmn.org, for more information.
Enrollment for the 2021 Get to Know Your Neighborhood Auto Repair Pro™ campaign is now underway. This year marks a transition to a precision-targeted digital campaign with the ability for participating shops to customize their landing pages, banner ads and geographic area. Messaging will still center around the benefits of doing business with independently-owned auto repair shops, but the digital format will allow for ads to be delivered only to the right people, in the right place, that can lead to business for the shop. Participating shops will now also have the benefit of knowing exactly how many ads were served and how users engaged with the campaign (click-to-calls, store visits, click for directions, etc.) If you are interested in learning more about the 2021 Get to Know Your Neighborhood Auto Repair Pro™ campaign, contact the AASP-MN office at (612) 623-1110 or visit the Alliance’s website, aaspmn.org.
AASP-MN News
Display OSHA Forms Feb 1 to April 30 State and Federal OSHA regulations require that employers with 11 or more employees at any time in 2020 must post the OSHA 300A, Annual Summary of Injuries and Illnesses, from February 1, 2021 to April 30, 2021. This form lists summary data for all job-related injuries and illnesses that occurred during calendar year 2020. Businesses with no injuries or illnesses for the year must still post the form. Businesses subject to these regulations should review their OSHA Form 300 to verify that all recordable injuries and illnesses are listed, that all entries are complete and accurate, and correct any deficiencies. Record workrelated injuries or illnesses that result in death, loss of consciousness, days away from work, restricted work activity or job transfer, or medical treatment beyond first aid. (Other incidents that are significant, as defined by OSHA, must also be recorded.) Positive COVID-19 cases must be recorded if there is a reasonable belief that the employee contracted it at work. COVID-19 cases are recorded as respiratory illnesses. Use Form 300A, to report a summary of these injuries and illnesses, have an officer of the company sign the form, and then post it from February 1 to April 30 in a location that employees will see it. Minnesota companies with 20 or more employees must also submit the data from the OSHA 300A to federal OSHA by March 1. For more information and copies of the forms, go to osha.gov/recordkeeping. Minnesota Minimum Wage Changes The state’s minimum wage rate was adjusted for inflation effective January 1, 2021 to $10.08 for large employers (annual gross revenues of $500,000 or more) and to $8.21 for other state minimum wages (small employers, training rate, youth rate). Information on the state minimum wage can be found here: dli.mn.gov/ business/employment-practices/minimum-wageminnesota. St. Paul and Minneapolis have higher minimum wage requirements than the state and those higher requirements remain in effect in those cities. For Minneapolis, the minimum wage changes that went into effect in July of 2020 remain unchanged at $11.75 for employers with less than 100 employees and $13.25 for employers with more than 100 employees. St. Paul’s minimum wage for macro businesses (10,001+ employees) goes into effect on January 1, but new minimum wage requirements on other businesses do not go into effect until July 1, 2021. The current minimum wage requirements for St. Paul are $11.50 for large businesses (101-10,000 employees), $10 for small businesses (six to 100 employees) and $9.25 for micro businesses (five or less employees). Are You in Compliance? Since February 3, 2020 all automotive repair facilities in Minnesota have been required to have A Workplace Accident and Injury Reduction (AWAIR) program. Minnesota OSHA has been out since last July enforcing and citing violations of the AWAIR standard. If you don’t yet have your program in place, AASPMN’s “Creating an AWAIR Program for Your Shop” webinar is now available on-demand. Presented by Carol & Janet Keyes, Complete Health, Environmental & Safety Services
(CHESS), the webinar covers the purpose and requirements of the AWAIR standard and walks you through the process to begin developing a customized program for your shop. Registration includes a 20-minute phone consultation with CHESS to review your draft program. Cost for this webinar is $100 per member/$150 nonmember shop. To view the webinar, click “On Demand” at elearning. autoserviceproviders.com. 2021 Membership Dues Are Due! If you have not paid your 2021 membership dues, PLEASE do so today. Your timely payment will save AASPMN the additional cost and time incurred with re-billing and other collection efforts. We’d much rather be working on programs and initiatives to improve the automotive service industry – and your business. Thank you! Year-Long Sponsorships Support AASP-MN’s Educational Programs & Other Activities in 2021 Recently, AASP-MN asked for year-long program sponsorships from its Associate members and other industry vendors to help support educational programs and other activities in 2021. Sponsorships help AASP-MN deliver the quality programs members expect and keep registration fees affordable To date, the following companies have made sponsorship commitments: Platinum Sponsors Fix Auto LKQ Minnesota Lube Tech & Partners Gold Sponsors AASP National Auto Value Parts Stores/APH Axalta Coating Systems CBIZ FinishMaster Podium PPG Automotive Finishes United Fire Group
Silver Sponsors aaa Auto Parts AmeriPride Services Colonial Life Enterprise Rent-a-Car O’Reilly Auto Parts Single Source Sherwin Williams Suburban Chevrolet Bronze Sponsors C.H.E.S.S. Twin Cities Auto Glass
Leadership Conference Vendor Sponsors 1 Collision Network 3M Automotive Trades Division Dentsmart PDR
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AASP-MN News
February 2021 | 9
NATIONAL NEWS SCRS Announces New Weekly Series featuring Mike Anderson and Danny Gredinberg The Society of Collision Repair Specialists (SCRS), working with Mike Anderson of Collision Advice and Danny Gredinberg of the Database Enhancement Gateway (DEG), has announced a new weekly series focusing on quick tips to boost collision repair businesses. The series will contain very focused subjects that can positively impact collision repairers, with the first topic addressing the not-included steps associated with a second color or clear for interiors or undersides. A new video will be released each Thursday afternoon, and other topics will continue to touch on technical processes, repair planning considerations and not-included items, accounting practices, negotiation and documentation approaches, and more. "I am so excited about this ongoing project with SCRS and partnering with Danny from the DEG to provide quick tips that I am confident are going to help collision repair centers thrive and not just survive,” stated Mike Anderson. “We are tying some of the ‘Who Pays for What?’ survey results in with critical responses to the DEG, and I can’t wait to hear from repairers about the impact I believe this information is going to make. I always say this and I’m very sincere, if you don’t belong to SCRS as a member, don’t delay - join today!” To be notified as new videos are released, click the subscribe button on youtube.com/scrscollision.
10 | February 2021
For more information about SCRS, or to join as a member, please visit scrs.com, call toll free 1-877-841-0660 or email info@scrs.com.
www.langmarketing.com Light Trucks Rev Up the Aftermarket The light truck population on U.S. roads has surged at an unprecedented pace during the past ten years. From 125 million at mid-year 2009, the number of light trucks topped 159 million by 2019. The light truck explosion has generated over 85% of the growth of vehicles in operation (VIO) since 2009. This has resulted in a significant expansion of their aftermarket product sales. Light trucks are the growth engine of the light vehicle aftermarket and they will fuel the aftermarket recovery during 2021 and beyond. Driverless Cars Not Just Around the Corner Countless headlines trumpet that driverless cars will soon transform the mobility landscape. Significant progress has been made in driverless car technology, but many formidable challenges could delay, for decades, their widespread and everyday use. Note: The focus of this report is driverless cars that operate without human assistance. Self-driving cars, on the other hand, require a human at the wheel to take control when the self-driving vehicle cannot effectively or safely operate.
AASP-MN News
continued on page 20
Two Great Companies. One Great Program. ®
®
AASP-MN News
February 2021 | 11
FEATURE
APH/BENCO Expands with JMC Acquisition by Alana Bonillo
Automotive equipment and parts distributor BENCO continues to expand its footprint in Minnesota and the Upper Midwest. The almost 50-year-old business recently acquired Jack McClard & Associates (JMC) of Hopkins. “We acquired a great name and some really great talent to our team,” comments BENCO General Manager Jason Vogel. In addition to taking on JMC’s business, BENCO also retained its experienced crew, which includes veteran technicians with 30 years’ plus experience. JMC’s former owner, Dave Fischer, a well-known figure in the industry, also remains on board. BENCO also has a location in St. Cloud and two in North Dakota (Bismarck and West Fargo). This past November, BENCO opened a location in Eau Claire, WI. BENCO was originally established in 1972; APH acquired the company in 2017. BENCO services the entire Midwest, while APH also owns the Auto Value chain in that region. APH/Auto Value Parts Stores is a Gold Sponsor of the Alliance. “[We achieved a] substantial amount of growth, not
only in the equipment world but the service world as well,” shares Vogel. “We are unique in the fact that we offer everything under one umbrella. Not only do we sell equipment, but we service equipment, install it and inspect it. We are a one-stop shop.” One of the products BENCO specializes in is vehicle lifts. The company is a distributor for Rotary Lift, Forward Lift and Direct Lift. Additionally, BENCO offers wheel service, tire machines, balancers and alignment racks, AC machines, compressors and much more. The acquisition of JMC added Hoffman wheel service as well as the distribution of the German-based vehicle lift company Nussbaum Lifts, which BENCO had not worked with previously. Vogel confirmed that more growth is on the horizon for BENCO. “[There are] plenty of plans for continued growth. With APH’s recent acquisitions in Wisconsin and South Dakota, there is potential for BENCO to follow in its footsteps.”
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AASP-MN News
February 2021 | 15
COVER STORY
by Joel Gausten
THE TECHNOLOGY
TUG OF WAR
OEMs are actively pushing for their procedures to be embraced as the standard of repair in this industry, but are insurers doing what they should to provide proper compensation to those facilities that are committed to restoring a damaged vehicle to manufacturer specifications? If some of the experiences recently shared by members of AASP-MN are any indication, the answer to that question is a resounding and encouraging “YES!” “We don’t have much pushback on OEM procedures – not like we used to,” observes Jake Moser, general manager of Hopkins Auto Body in Hopkins. “Even two years ago, there was a lot more pushback on it. But as of now, insurance companies have gotten a lot better in terms of realizing that this is what the manufacturers need from us. Once it’s in writing with those guys, [insurers] don’t really have a leg to stand on or push back on doing it correctly.” Moser views this positive development as the direct result of actions taken by dedicated members of the state’s automotive community. “We have a pretty strong association up here. [AASP-MN] put in the work to let the insurance companies know we’re on top of it, and then the body shops in general are just kind of standing up and saying, ‘This is what the manufacturers are saying. This is what we’ve got to do.’ As more of us put our foot down, then [insurers] understand that this is what needs to happen for these cars to be properly repaired. There are big liabilities for us not to repair them correctly.” For Mike Matteson, co-owner of Century Avenue Collision in North St. Paul, successfully negotiating for payment for the OEM-recommended/ required procedures he performs – even from his DRP
his mind, this method provides stronger documentation than general position statements, which he notes are not always acknowledged by carriers. “Sometimes, the insurance companies are not accepting the position statements because they’re too broad in scope or they’re not entirely up to date. They might be a year or two old.” As shops continue to push for adequate payment for proper repairs, it is critical for them to ensure that the estimating systems accurately reflect the time it takes to perform them. This is where the Database Enhancement Gateway (DEG) comes in. Launched in 2007 and co-funded by AASP National and the Society of Collision Repair Specialists (SCRS)*, the DEG is a free online service that addresses labor time questions and other database inaccuracies brought forth by end-users of Audatex, Mitchell and CCC. As of January 2021, the DEG had resolved nearly 17,000 inquiries from shops, insurers and other interindustry personnel. A complete history of all inquiries is available at degweb.org. According to DEG Administrator Danny Gredinberg, the service has led to considerable clarification on P-Page language and assisted repairers in better identifying and confirming not-included items. “Any inquiry can be submitted for any operation to be double-checked, verified and potentially increased. Every operation counts, especially with some shops seeing a slowdown in vehicles due to COVID-19. They’ve had to capture opportunities in each job, and they’ve also had more time to reach out to the DEG as questions arise. More than ever, associations, suppliers and even the Information Providers are funneling people through the DEG so that they can get answers or resolutions through the system.”
partners – comes down to educating insurers. A regular user of OEM websites, he makes sure to have the information necessary to back up his repair methods if/when he’s challenged by the other side. “We usually don’t get into too many situations where they don’t pay. I’ve been at this for 35 years here at this location, so we have a good standing. A lot of insurance companies know that we do our homework. There are times when I have to argue over the phone with people who get hired by insurance companies who have no clue how to fix cars. My biggest complaint is having to dig deep to prove to them that something needs to be done and they need to look at the procedures. We hate doing that, but we have to every once in a while. We stand our ground; if there is a procedure that needs to be done, we fight for it. We’ve been able to prove our point enough that no one’s really stood their ground against us in a long time.” Aaron Rolfsrud, who oversees operations for Master Collision Group’s five locations in the state, has had similar success in getting paid for doing things the OEM way. He is particularly firm in utilizing OEM recommendations and requirements at the BMW-certified Master Collision shop in Bloomington, where technicians access the necessary repair procedures for that automaker’s vehicles via their VINs. In
As an example of how useful the DEG can be for repairers seeking clarity (and perhaps more realistic labor times) on the shop floor, DEG inquiry #17435 submitted last December on a 2009 Audi A5 Coupe resulted in the estimated refinish time applied to the uniside assembly increasing from 4.5 hours to 6.4 hours in CCC. Additionally, the estimated refinish time applied to the aperture panel for that vehicle in CCC changed from 1.8 hours to 3.2 hours. Of course, no discussion about OEM procedures would be complete without a mention of scanning. Jesse Jacobson, vice president of Heppner’s Auto Body & Glass’ five Minnesota locations, got on board early with implementing the procedure at his facilities. “We started with a basic aftermarket tool at all the locations and basically said, ‘Whether we’re getting paid for it or not, we’re going to scan every car that comes in.’” This decision proved to be correct – and potentially life-saving – when a scan on a rebuilt vehicle that arrived at Heppner’s revealed the absence of an airbag. This is just one example of the dangers and liabilities that can be avoided by adhering to what manufacturers require and recommend for their vehicles. continued on pg. 18
16 | February 2021
AASP-MN News
ESTIMATING TIPS Audatex: Frameless Door Window Recent DEG Inquiry 17327 identified Audi Q8 Doors with frameless door window design adds additional horizontal and laterial adjustments for correct fit on the vehicle. Audatex has responded that: “Per the DBRM, Audatex labor includes normal adjustment and alignment for correct fit but does not include any duplicated effort. Any additional adjustments needed would have to be a manual entry as we have already accounted for a normal adjustment.” DEG has confirmed this applies to all vehicles with frameless door window designs where the OEM has provided above and beyond normal adjustments of the window glass to the sealing strips.
Audatex: Weld Thru Primer NOT INCLUDED in Small Weld on Brackets Recent DEG Inquiry 17464 states, “We have reviewed weld thru primer and according to our internal guidelines the only parts that include the application of weld thru primer are those listed in DBRM sec 4-3 that included this operation. Little brackets do not include this operation. No change warranted at this time.” Audatex includes application of weld thru primer on replacement operations parts only shown on pages 43-139 Section 4-3 Audatex DBRM. Weld thru primer material cost or any additional labor related to application of weld thru primer (masking, disposal, etc.) are NOT INCLUDED.
Alldata: Technicians Reference Watch the DEG’s latest tip on accessing Alldata’s newest feature of “Technicians Reference - Collision” with access to OEM position statements, bulletins, and global brand repair overview documents. https://youtu.be/6Dh8KRqqIJY
Mitchell: Not Included Operations for R&R Time Used on R&I Operations In this video, the DEG will discuss how using R/R values for R/I operations may not include additional necessary steps when re-using a part. https://youtu.be/vjDatpqlCTk
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
February 2021 | 17
INSURANCE I.Q.
AUTOMOTIVE EXPOSURES
A Safety Checklist Developed by United Fire Group for Automotive Service Providers The use of vehicles can present various claim exposures. These exposures can include vehicles loaned to customers, pick-up and delivery of customer vehicles, test drives, parts runs, business errands, courtesy rides and towing services. Liability controls include, but are not limited to: • Motor vehicle driving records (MVRs) of all employee drivers should be reviewed annually. Potential new driver MVRs should be reviewed at the time of hire and annually thereafter. MVRs for drivers with marginal driving records should be reviewed more than once a year. Drivers with poor driving records should be excluded from driving company and customer vehicles. • Drug and alcohol testing should be completed on all prospective new employees. A post-incident drug and alcohol testing policy should be
in place. • A fleet safety policy including no cell phone use and no texting should be in writing and reviewed with all drivers. A signed copy should be kept on file. The fleet safety policy and safe driving procedures for company or customer vehicles should be reviewed with drivers at least annually. • Non-employees should be prohibited from driving or riding in company vehicles. Personal use of company vehicles should be prohibited or limited to owners and managers. • Obtain insurance information for any employee vehicle being used for company business. Conduct at least an annual inspection of non-owned vehicles used for company business to ensure they are safe to drive. • Towing operations, if hired out, should provide proof of insurance. • Loaner vehicles, if provided,
should be limited to customers who are over 21 years old. Drivers should be required to present proof of a valid driver’s license and auto insurance. A photocopy should be made of their license and insurance information. A liability waiver should be signed. • Test drivers must have a valid driver’s license and auto insurance. A photocopy should be made of their license and insurance information. A liability waiver should be signed. • If selling vehicles, customer road tests should be limited to a predetermined route or a set time out. An employee should accompany all test drives. No overnight tests should be allowed. • Vehicles used for business errands and as courtesy vehicles should receive regular maintenance with records kept on file. • Vehicles should be inspected before each use. For more information on how to avoid exposures, contact Brad Schmid at (763)-549-2247 or bschmid@cbiz.com.
COVER STORY continued from page 16 In addition to increasing their use of OEM scanners over time, Jacobson’s operations (including a sixth Heppner’s business in Hudson, WI) have succeeded in fostering stronger communications with carriers in regard to the importance of using these tools before and after a repair. “We have good relationships with our insurance partners, and I think we have a pretty good dialogue as far as why we need to do certain things.” With OEM repair procedures clearly gaining ground in Minnesota, many have learned that the best way to get paid by insurers for utilizing them is by properly researching and documenting every step taken to bring a vehicle back to pre-loss condition. As Moser says, “It’s pretty hard to tell a person, ‘No, that’s not what needs to be done’ when it’s in writing.” *A full list of DEG sponsors is available at degweb.org/sponsorship/ our-sponsors.
18 | February 2021
AASP-MN News
AASP-MN News
February 2021 | 19
MECHANICAL DIVISION DIRECTOR’S MESSAGE
LEGISLATIVE UPDATE
continued from page 6 Federation, they expressed a willingness to engage their members in a review of continued from page 4 all the necessary inventory, canned jobs, the AASP-MN proposals. It has been our position that speeding the process for settlement negotiations and having a more reliable supply of replacement parts permissions, communications, etc. can provide financial benefit to insurers. If we can find a way to make some of Then there was the learning curve. these changes a win-win proposition for repair shops and insurers, we want to Before we started, we did many trial seize that opportunity. runs of creating tickets, estimates and We have received no assurance that the insurance industry will ultimately appointments. We went live at 7:00 come to terms with us on these issues. But given the strength of the insurance industry – particularly in the Minnesota Senate – we need to invest the time and a.m. on a Monday. By 8:00 a.m., I was energy it takes to find agreement in meetings away from the Capitol that will thinking, “What have I done!?” Day 2 allow us to bring solutions back to the Capitol. was the day I thought for sure I had made a mistake and a mutiny was going to happen. On day 3, things NATIONAL NEWS were starting to make sense. We still continued from page 10 had a way to go, but a few things were Six Major Takeaways: becoming apparent. Both the office • Driverless cars have the potential to reduce accidents, lower pollution, and team and the shop team were on board. provide a number of other significant benefits, but their presence on U.S. We stayed calm and kept moving roads in great numbers across the country is much further into the future than most proponents currently claim. forward. We made sure to communicate • The extensive mapping of roadways that is necessary for driverless cars to with our customers that we were in the operate will take many years to achieve, with less than five percent of total process of adopting new shop software. roadways in the U.S. having been adequately mapped for driverless cars so There are all sorts of things that far. can affect your business; some easy • Inconsistent roadway conditions provide challenges for driverless cars, which to fix, some not so much. We have presently cannot respond to common occurrences such as police received excellent customer feedback directing traffic, variations in traffic configurations, road construction, on communications, better transparency potholes, driving in parking lots, and countless other driving situations that with our customers, better reporting, require drivers to make quick decisions in order to safely operate their vehicles. and easier communications with our • Hacking could have catastrophic consequences for driverless cars. Hacking technicians, all resulting in better tickets. by nefarious persons or groups could lead to widespread chaos with deadly It was a massive change for my shop, results. This would destroy consumer confidence in the reliability and safety but well worth it. of driverless cars. AASP-MN members helped me get • Significant legislative and legal issues must be resolved before driverless cars information on available SMS systems, can take to the road in great numbers. how systems work in various shops • Lang Marketing believes that these issues present substantial challenges and inspired me to try new things. I that will take many years to resolve before driverless vehicles operate in encourage you to tap into the wealth of great numbers. Lang Marketing projects that everyday use of self-driving vehicles will not be widespread across the U.S. for at least 20 years, or even information that membership gives you! much longer.
20 | February 2021
AASP-MN News
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
parts@invergrovetoyota.com
Burnsville Toyota 14730 Buck Hill Road Burnsville, MN 55306 800-448-5912 PH: 952-435-8401 FAX: 952-435-8515
Maplewood Toyota 2873 Highway 61 Maplewood, MN 55109 PH: 651-490-2648 FAX: 651-490-2652 TOLL FREE: 877-574-0667 parts@maplewoodtoyota.com
ToyotaPartsAndService.com AASP-MN News
February 2021 | 21
CASH IN ON YOUR MEMBERSHIP BENEFITS!
CBIZ Provides AASP-MN Members a “One Stop Shop” for Insurance Needs CBIZ is the recommended insurance agency for property and casualty, workers’ compensation and employee benefits coverage for members of AASP-MN. CBIZ has developed a program designed specifically for members of the Alliance which includes: Property & Casualty - CBIZ and United Fire Group created a policy with forms specific to the garage industry. There is special pricing for AASP-MN members and the opportunity to qualify for a dividend based on the group’s performance. A seven percent dividend totaling over $183,000 was distributed in 2020 to participating members! CBIZ and United Fire have made this program available to all the contracted United Fire agents in the state of Minnesota. If you, or your agent, want more information on how to gain access to the program, contact Brad Schmid.
Workers’ Compensation – With over 20 carriers, CBIZ has the flexibility to offer you the best coverage at an affordable price. Contact Brad Schmid to get a quote before your policy renews. Employee Benefits - CBIZ, in conjunction with Dennis Begley of Business Planning Professionals, offers a full line of employee benefits. Dennis brings over 30 years of experience in the business. He can customize your employee benefits plan, focusing on the budget of the owner and the needs of the employees. For more information, contact Brad or Dennis at: Brad Schmid (763) 549-2247 bschmid@cbizaia.com
Dennis Begley (612) 308-6577 dennis@begley-group.com
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. EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASPMN members with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. 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/Aramark 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/Aramark 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.
22 | February 2021
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. 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! Net Driven Contact: Phil Walter 877-860-2005 / phil.walter@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. INFORMATION PROVIDERS Mitchell 1 Contact: Mitchell 1 Representative 888-724-6742 Mitchell 1 offers AASP members special discounts on the Mitchell 1 family of integrated software tools. 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. TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. 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.
AASP-MN News
AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. 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-onone 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 Contact: Stephanie Sheppard 405-547-4077 / membersupport@cars.coop Members receive discounts on a variety of products and services they use every day! From discounts on paint and rental cars to office supplies and phone services. Over 50 programs available!
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.
Toll Free 800-238-6664 Direct 651-423-2432 Fax 651-423-2808
Toll Free 800-537-6072 Direct 651-204-4610 Fax 651-256-9258
Toll Free 800-569-5735 Direct 763-424-3472 Fax 763-424-4631
Toll Free 800-448-5912 Direct 952-435-8401 Fax 952-435-8515
Toll Free 800-642-2654 Direct 952-947-5432 Fax 877-947-5479
Toll Free 800-661-4765 Direct 952-895-9514 Fax 800-661-4768
Walser Nissan - Wayzata Toll Free 800-328-9552 Direct 651-484-8888 Fax 877-593-2526
Toll Free 800-328-3551 Direct 952-475-1721 Fax 952-475-2024
Contact Sales Representative Toll Free 800-592-9514 Direct 651-484-0975 Fax 651-484-1970
Mark Bowman
Cell 715-828-7638 Marxmale@aol.com
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