AASP-MN News June 2017

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June 2017

AASP-MN Awards

$18,000 in Scholarships to Automotive Students Plus: AASP-MN Night Out With the Saints Registration (See pg. 13) www.grecopublishing.com

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CONTENTS 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. © 2017 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 2017 - 2018 PRESIDENT Wayne Watson IMMEDIATE PAST PRESIDENT Greg Kasel, AAM SECRETARY-TREASURER Will Latuff COLLISION DIVISION DIRECTOR Bruce Tschida, AAM

Vol. 25 No. 6

COLLISION DIVISION DIRECTOR’S MESSAGE ................................................4 Decision Time is Here

by Bruce Tschida, AAM, AASP-MN Collision Division Director

LEGISLATIVE UPDATE........................................................................5 Legislature Completes its Work Nearly On-Time

by Kevin Walli, AASP-MN Lobbyist LOCAL NEWS..................................................................................6 NATIONAL NEWS ............................................................................10 AASP-MN NIGHT OUT WITH THE ST. PAUL SAINTS REGISTRATION ................13 NEWS FROM THE DEG ......................................................................14 Database Enhancement Gateway Announces New Administrator DEG ESTIMATING TIPS ......................................................................14

MECHANICAL DIVISION DIRECTOR Carl Thomas ASSOCIATE DIVISION DIRECTOR Dave Bock COLLISION SEAT Matthew Feehan MECHANICAL SEATS Randy Notto, AAM Mars Overlee

INSURANCE I.Q. ..............................................................................16 Auto Liability: A Growing Problem PARTNERS IN PREVENTION ................................................................19 Keeping Lakes and Rivers Clean CASH IN ON YOUR MEMBERSHIP! ........................................................22 AASP-MN and Certegy Partnership

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM 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) CREATIVE DIRECTOR Lea Velocci (lea@grecopublishing.com) EDITORIAL ASSISTANT Nick Fernandes (nick@grecopublishing.com) OFFICE MANAGER Donna Greco (donna@grecopublishing.com) www.grecopublishing.com

UPCOMING EVENTS June 15, 2017 Assured Performance’s 20/20 Vision Certified Collision Care Provider Clinic Minneapolis Airport Marriott Bloomington

June 20, 2017 23rd Annual AASP-MN Golf Outing Keller Golf Course Maplewood

August 23, 2017 AASP-MN Night Out With the St. Paul Saints CHS Field St. Paul

For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.

ADVERTISERS’ INDEX aaa Auto Parts ......................................................16 AmeriPride ............................................................15 Axalta Coating Systems ........................................IFC Buerkle Hyundai....................................................18 Choice Auto Rentals..............................................21 Dentsmart..............................................................20 FinishMaster ........................................................17 Inver Grove Honda / Inver Grove Toyota ................17 Jack McClard ........................................................12 Keystone ..............................................................18 Libson Twin City....................................................8

AASP-MN News

Maplewood Toyota ................................................8 Mills Parts Center ................................................21 Morrie’s ................................................................5 Motorwerks BMW ................................................IBC MPA ......................................................................9 PAM’s Auto............................................................17 Proven Force ........................................................12 Rosedale Chevrolet ..............................................4 Roseville Chrysler ................................................21 Straight & Square..................................................15 Toyota Group ........................................................OBC

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COLLISION DIVISION DIRECTOR’S MESSAGE

Decision Time is Here

by Bruce Tschida, AAM AASP-MN Collision Division Director

We are at a point in time where we can no longer just fix all brands of cars and trucks. The vehicle manufacturers are not only changing the materials being used, but are also moving towards requiring repair facilities to be certified according to their specific requirements. Those requirements might be based on the use of Customer Satisfaction Index Reporting and involve limitations regarding the proximity of one certified repair facility to another.

They might indicate that a facility needs dealer sponsorships, special equipment, I-CAR Gold certification for employees and even a sectioned-off area for aluminum repairs. Manufacturers feel that certification is necessary to protect brand loyalty and the safety of their vehicles by requiring that they only be repaired by qualified technicians using approved equipment.

The cost to be a repairer of all makes and models is becoming too high. So now the decision that every repair facility may have to make is to determine what brands are right for them.

Here are a couple of ideas that might help make that decision:

1. Utilize a demographic report. This can be obtained through most paint companies, and the reports can be very detailed, right down to a specific model and year for a particular zip code.

2. Research the manufacturer brands in which you want to become certified. Weigh out the cost of the additional equipment,

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employee certification and any other requirements you need to comply with in order to become certified and to maintain that certification. a. Review parts requirements. One manufacturer has a requirement of 90% OEM parts on its brand. If it’s a lease car, the requirement is 100% OEM parts, with no used or aftermarket parts allowed. This may go against what is currently expected for some Direct Repair Programs. b. Research the required equipment. Consider not only the quality, but note which equipment manufacturer is approved for the brands that were identified in your demographic report.

Some facility owners might say, "I don’t need to be certified to fix vehicles." They will find that, for some vehicles, if you are not certified, a dealer will not sell you the parts you need. Other manufacturers have even said they will contact customers at accident scenes via vehicle electronics such as OnStar and offer free towing to a certified shop.

So, as the demands for certification from the manufacturers increase, taking the wait-and-see approach and then trying to play catch-up will be difficult, expensive and maybe even detrimental to your business.

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LEGISLATIVE UPDATE

Legislature Completes its Work Nearly On Time

by Kevin Walli, AASP-MN Lobbyist

After a short – 36 hour – Special Session, the 2017 Legislature completed its business – nearly on time. The final two or three weeks of the Session were characterized by lengthy and sometimes late negotiations between the House and Senate and with the Governor to reach agreement on state agency budgets, tax changes and a Bonding Bill to repair and/or build new public facilities.

As the clock ran out on the midnight May 22 adjournment deadline, the Governor and Legislative leaders came to terms on a series of compromise provisions to wrap up the remaining issues. But by the time the agreements were reached, there was not enough time to prepare the bills for immediate action. Some of the bills are hundreds of pages long – including the nearly 700-page long Health and Human Services Bill – which

presented logistical challenges for finishing the Special Session quickly.

The news of greatest interest to AASP-MN members is the change to the state levy on commercial-industrial property. The final Tax Bill includes an exemption from the levy for the first $100,000 of value of business properties subject to the tax. The Legislature also eliminated the automatic inflator of the rate of the levy. Any future increase will have to be enacted by the Legislature – no more automatic rate increases.

As soon as the dust settles on the 2017 Session, AASP-MN will be ramping up our preparations for 2018. The next meeting of the Government & Regulatory Affairs Committee is set for late June.

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LOCAL NEWS

AASP-MN Awards Scholarships to Automotive Students

AASP-MN is pleased to announce scholarship awards totaling $18,000 to help automotive service and collision repair students pay for tuition and tools during the 2017-18 school year. The scholarships are in the amount of $1,000 per student and were made possible by a successful fundraising drive within the AASP-MN membership, as well as a generous donation from the Minnesota State I-CAR Committee.

Twenty college students from nine schools submitted scholarship applications. This year also marked the first time that AASP-MN opened the scholarships to high school students entering their first year of a two-year NATEF-certified automotive program, resulting in an additional four applicants. Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations.

College recipients were: • Samantha Adams, MN State Community & Technical College, Moorhead – Automotive Service Technology • Trevor Bitterman, South Central College, Mankato – Auto Body Collision Repair • Joshua Bradfield, Century College, White Bear Lake – Automotive Service Technology • Ben DeMarais, MN State Community & Technical College, Moorhead – Automotive Service Technology • Paul Gilpin, Dakota County Technical College, Rosemount – Automotive Service Technology • Jordan Hockens, Rochester Community & Technical College, Rochester – Automotive Service Technology • Wyatt Krampitz, South Central College, Mankato – Auto Body Collision Repair • Benjamin Lamb, Century College, White Bear Lake – Automotive Service Technology • Angel Paucar, Dunwoody College of Technology, Minneapolis – Auto Body Collision Repair • Gabino Rodriguez-Arguelles, South Central College, Mankato – Auto Body Collision Repair • Jacob Simmel, Century College, White Bear Lake – Automotive Service Technology • Trieu Tran, Century College, White Bear Lake – Automotive Service Technology • Billy Watson, St. Cloud Community & Technical College, St. Cloud – Auto Body Collision Repair

Five scholarships were awarded to high school students – one Auto Body Collision Repair student entering Hennepin Technical College (Eden Prairie) and four Automotive Service Technology students entering Dakota County Technical College, St. Cloud Technical College, Century College and Central Lakes College.

Congratulations to all of this year’s recipients!

The scholarship awards are the centerpiece of AASP-MN’s Automotive Education Fund, which was established to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry.

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AASP-MN to Host a Night Out with the Saints

AASP-MN is pleased to announce it will host “A Night Out with the Saints” again this year. “The last couple of years were so well attended and so much fun, we had to do it again,” said Executive Director Judell Anderson.

Bring your family, employees and friends out to watch an exciting game of baseball as the St. Paul Saints take on the Wichita Wingnuts at 7:05pm on Wednesday, August 23 at CHS Field.

AASP-MN member Carl Thomas of Lancer Service Auto Care (St. Paul) will host a tailgate party prior to the game and provide free parking for those that attend. (See page 13 to register.)

Complete Your AASP-MN Member Profile

The AASP-MN website was designed to help you seek out and connect with other AASP-MN members when looking for products, services, tools or equipment and has extensive search capabilities.

However, in order for the search results to include information about your shop, you must complete your member profile on the website.

To do that, go to www.aaspmn.org and click on the “Members Only” button in the upper right corner. You will be prompted for a username and password. Your default username is the first letter of your first name and your last name (i.e. JDoe). Your password is the telephone number of your business, including the dashes (i.e. 612623-0000). Note: You do have the option to change these settings once you are logged in.

Once you are logged into the site, click on “Members Only” on the navigation bar. A drop-down menu will appear. The first option on that menu is “My Profile.” Click on the “My Profile” option to update your company profile. Once you’ve completed your profile, hit the save button at the bottom of the page.

Please take the time to check out all of the great information and resources on the AASP-MN website, including:

Information about: • Association news • Member benefit programs • The Get to Know Your Neighborhood Auto Repair Pro™ campaign • Current and past legislative activities & find your legislator • Industry training and upcoming events

Member shops, tools and equipment: • Search our database to find a member shop in your area, see what diagnostic or other equipment they own, what repair information they subscribe to, which management system they use and more! Our extensive database was designed to help members connect with and be a resource to other members. So be sure to log in and complete your member profile!

Sample documents: • Complaint Letter to Department of Commerce • Loaner Car Agreement • Repair Authorization form • Assignment of Insurance Proceeds • Sheriff’s sale instructions and documents

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Resources/links: • Regulation of Claims Practices & Prohibition on Insurers Statutes • Truth in Repairs Act • Insurer Unfair Claims Practices Report • MN Motor Vehicle Damage Disclosure & Reporting Requirements • P-Pages, DEG & other estimating resources • OEM service information • MPCA Fact Sheets and other regulatory compliance information

Recently, AASP-MN sought sponsorship support from its Associate members and other industry vendors to help support the association’s educational programming and other activities in 2017.

Sponsorships help AASP-MN deliver the quality programs members expect, and keep registration fees affordable.

AASP-MN extends its thanks to the following companies:

Consumer info: • Find a Shop • Auto Insurance Claims & Claimants’ Rights “Nuts & Bolts” brochure • Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) • Motor Vehicle Service Contracts: FTC, MN Attorney General and Consumer Reports • FTC Consumer Alerts on auto warranties and warranty scams • Automotive career and scholarship info, including links to state college automotive programs

Other: • AASP-MN News – Check out the current or past issues of the association’s monthly magazine, AASP-MN News • Lending Library – AASP-MN’s lending library consists of a number of the AMI self-study courses and other materials free for members to use

And much more! Please take the time to check out the resources available to you from AASP-MN at www.aaspmn.org.

NSF International has issued its first automotive recycler certification to AASP-MN member PAM’s Auto in St. Cloud. PAM’s Auto met all requirements for NSF International automotive recycler certification including traceability, labeling and grading.

NSF International’s automotive recycler certification provides independent third-party confirmation that automotive recyclers meet federal, state and local recycler requirements. PAM’s Auto also met the additional certification requirements for dismantling, stocking, sales and delivery and customer service.

“The NSF International certification requirements and guidelines align with PAM’s Auto best business practices and business philosophy,” said Pat Huesers, PAM’s Auto Co-Owner. “We feel the future of our business success is supported by NSF International certifications.”

In addition to earning NSF International recycler certification, PAM’s Auto also previously earned NSF International automotive parts distributor certification, meeting requirements in quality and customer service, business liability insurance, traceability, inventory tracking and recall procedures.

Congratulations, PAM’s!

PAM’s Auto Earns NSF Certifications

AASP-MN News

Thank You to Our Sponsors

GOLD SPONSORS AASP National Auto Value Parts Stores/APH Autoshop Solutions Axalta Coating Systems CBIZ AiA FinishMaster Meadowbrook Insurance PPG Automotive Finishes United Fire Group

SILVER SPONSORS aaa Auto Parts Enterprise Rent-A-Car LKQ/Keystone Automotive O'Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet

BRONZE SPONSORS Advance Auto Parts C.H.E.S.S.

LEADERSHIP CONFERENCE ENTERTAINMENT SPONSOR Dent Impressions

A LA CARTE Choice Auto Rental

LEADERSHIP CONFERENCE VENDOR SPONSORS 1 Collision Network 3M Automotive Aftermarket Division AmeriPride Services Automotive Training Institute BASF Automotive Refinish Casualty Insurance of Chaska Dentsmart PDR Heartman Insurance Hertz Corporation IDENTIFIX Insurance Brokers of MN Matrix Electronic Measuring MN Dept. of Labor & Industry Monroe, Moxness, Berg, PA Net Driven Rapid Refill Safety-Kleen Sherwin-Williams Automotive Finishes

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NATIONAL NEWS

AASP-MN ATTENDS AASP NATIONAL BOARD MEETING

By Joel Gausten

When you join AASP-MN, the value of your membership extends far beyond Minnesota.

In addition to serving the Minnesota automotive service and collision repair industry, AASP-MN is a longtime affiliate of AASP National, a multi-state organization founded in 1999 that currently represents over 7,100 automotive businesses in 27 states. The Minnesota association’s affiliation with this group gives it direct access to a larger entity that is committed to strengthening the business success of repairers, forging strategic

(L-R) AASP-MN Collision Division Director Bruce Tschida and former AASP-MN President Dan Sjolseth were among those in attendance at AASP National’s May 5 Board meeting.

alliances and monitoring federal legislation and regulations.

Last month, representatives from affiliates in Minnesota, Massachusetts, New Jersey, Missouri, New York, North Carolina and Pennsylvania gathered in Boston for AASP National’s biannual Board meeting. The four-hour gathering allowed an opportunity for participants to detail their individual group’s efforts to improve the industry. AASP-MN was represented at the meeting by Executive Director Judell Anderson (who also serves as AASP National administrator), Collision Division Director Bruce Tschida (who is also the current AASP National president) and former AASP-MN President Dan Sjolseth.

During her update on AASP-MN activities, Anderson reported that the association is working hard to address the critical workforce shortage that is affecting the state’s automotive industry.

“The availability of qualified technicians and other shop personnel is the number one issue facing our members,” she offered, adding that the dilemma was being driven in large part by the public’s general lack of knowledge about the various – and potentially lucrative – career paths available in today’s industry.

Last year, AASP-MN kicked off a new organization, Minnesota Careers in Automotive Repair and Service (MNCARS), with the sole objective of encouraging more students to enroll in two-year technical college automotive programs and eventually enter the workforce in industry businesses. The two-year, $250,000 campaign includes the hiring of a marketing firm to execute the initiative.

“We’re starting to see a change where educators and parents are now recognizing the value of career technical education and that following the four-year college path isn’t the answer for everyone,” Anderson said.

The MNCARS project targets three distinct audiences: 10 June 2017

“Tinkerers” (who Anderson describes as the “low-hanging fruit” students who have an interest in automotive but are not currently considering it as a career path), parents and school counselors.

The official MNCARS website (carcareers.org) boasts a host of information including the salary expectations for a variety of industry-related positions. It also includes direct links to the web pages for area post-secondary automotive programs and a special “letter to parents” translated into Spanish, Hmong, Somali and Russian.

Now that the foundational materials have been developed and are in place, MNCARS is moving to the next stage of spreading its message far and wide. This will include (among other things) establishing an “industry speakers bureau” and recruiting “student ambassadors” to hit the streets and promote careers in the auto service and collision industry. Additionally, MNCARS will continue to present to high school automotive students and participate in career and college fairs throughout the state and work to drive traffic to carcareers.org through its ongoing social media campaign.

Sjolseth added that the automotive industry’s appeal to students is stronger than ever – especially in a culture where some college-educated people can have a $45,000 annual salary and $145,000 in school debt. In his mind, a two-year tech degree could have prevented this dilemma from occurring.

“Also, many of the school counselors in the high schools and middle schools are young enough to experience that same debt,” he observed.

In other AASP National news, Collision Director Rick Starbard (AASP-MA) discussed the ongoing success of the Database Enhancement Gateway (degweb.org). Launched in 2007, the DEG is a free-to-use initiative that was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the repairers and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. The DEG was created and is equally funded and maintained by AASP National and the Society of Collision Repair Specialists (SCRS). Starbard noted that the DEG was approaching the 11,000-inquiry mark,

Representatives from affiliates in Minnesota, Massachusetts, New Jersey, Missouri, New York, North Carolina and Pennsylvania gathered in Boston for AASP National’s bi-annual Board meeting.

while the recently revamped DEG website has allowed for greater tracking and recordkeeping. “It adds a lot more automated reporting, so we’re getting more detailed reports every week on users and how things are being handled,” he said.

For more information on AASP National (including special member discounts from companies including Mitchell 1,

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One Eighty Business Solutions LLC and Autoshop Solutions), visit autoserviceproviders.com. Additional information on AASPMN is available at aaspmn.org.

www.langmarketing.com

CONSUMERS RATE GARAGES & DEALERS Four Key Performance Factors: Lang Marketing has tracked the consumer ratings of garages and dealers in terms of four key performance factors: • Convenience of Repair • Technical Repair Capability • Low Price • Fair Pricing In addition to consumer evaluations of garages and dealers, Lang Marketing has collected consumer perception data for repair chains and tire stores.

Repair Convenience Garages are ranked by consumers as the most convenient place to have their vehicles repaired, followed by dealers in second position. Repair chains and tire stores are rated lower by consumers than garages and dealers in convenience of repair.

Despite a decline in their numbers over the past several years, surviving dealers are redoubling their efforts to make repairs more convenient by extending service hours, adding quick service bays and expanding the menu of services for which they provide same-day service.

Technical Repair Capability Consumers rate dealers significantly higher than the other three repair outlets for technical repair capability. Garages are ranked second by consumers for technical repair capability, followed by repair chains and tire stores in third and fourth position, respectively.

The importance of technical repair capability for customers as they select outlets varies depending on the complexity of repair required.

Consumers also differ significantly in how they perceive the technical repair capability of specific groups of repair outlets depending on the type of vehicles they own (domestic versus foreign nameplate) as well as the age of their vehicles.

Low Price Garages are ranked at the top by consumers for low price of vehicle repair, followed by repair chains and tire stores.

Dealers are at the bottom in consumer perceptions of low prices, although their rating has improved from a similar study conducted by Lang Marketing two years ago.

Fairness of Price Garages received the best consumer rating for fair pricing, followed by repair chains and tire stores. Dealers are rated lowest in fair pricing.

Vehicle Differences Influence Repair Outlet Perceptions Owners of newer vehicles, particularly those five years and younger, give higher ratings to dealers for repair convenience and fair pricing than consumers with older vehicles, particularly those at least 10 years old.

Foreign Nameplate Owners Owners of foreign nameplate vehicles give dealers higher ratings for technical repair capacity and garages lower ratings for technical repair capacity than do consumers who own domestic nameplate vehicles give them. Foreign nameplate car and light truck owners give higher ratings to dealers for convenience of repair than do domestic nameplate owners. Owners of foreign nameplate vehicles also give higher ratings to dealers for fairness of price than do owners of domestic nameplate cars and light trucks.

Six Major Takeaways: • Consumers rank garages highest for convenience of repair, with dealers receiving a strong second place rating.

• Dealers are improving in consumer perceptions of repair convenience, with substantially higher ratings over the past two years.

• Dealers receive the highest ranking for technical repair capability, significantly higher than the other three major groups of repair outlets covered.

• Garages received a higher rating for technical repair capability by consumers in Lang Marketing’s latest research than they did two years ago.

• Garages attain their highest consumer ratings for low price and fair pricing, with dealers fourth, behind garages, repair chains and tire stores.

• Over the past two years, dealers have received improved consumer ratings for convenience, while garages have improved consumer perceptions of their technical repair capability.

FORD BOOSTS DEALER IMPACT Ford Motor Company’s recent actions illustrate how carmakers can strengthen the position of their dealers in the parts and service market, while improving their own parts profits in the large and expanding aftermarket.

Six Major Takeaways: • Dealers have redoubled efforts to expand their service and parts business, marketing their bays to a much wider age and nameplate range of vehicles.

• Carmakers have realized that the success of their dealers in the parts and service market is critical to maintaining a strong dealer network, which is a keystone of carmaker strength in the rapidly-changing new vehicle market.

• Ford has become a leader among carmakers in encouraging dealers to install quick service lanes, with more than one-third of Ford/Lincoln dealerships currently operating quick service lanes.

• Ford estimates that up to a third of vehicles passing through their quick service lanes are nameplates other than Ford/Lincoln. continued on pg. 20

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NEWS FROM THE DEG

Database Enhancement Gateway Announces New Administrator The Database Enhancement Gateway (DEG) has announced Danny Gredinberg as the new administrator of the free, online resource developed to address inquiries to Information Providers (IPs) about collision repair estimating data. With nearly sixteen years of collision repair experience as a certified technician, estimator and senior technical repair advisor, Gredinberg brings a wealth of experience and insight to the position, providing a fresh perspective for the DEG. As an experienced user of the DEG in his prior roles, Gredinberg saw great benefit from using the DEG to submit inquiries on errors, inaccuracies or omissions found in the estimating data content. As an end-user, he found the site to be an effective mechanism to make positive changes through feedback and interaction with the IPs. “It’s an exciting time to be in the collision repair industry,” shared Gredinberg. “The advancement of vehicle technology is evolving and changing quickly; from vehicle construction, advanced driver assist systems, repair methods, tooling and training. We sometimes forget how challenging it can be to capture those dynamic changes to the vehicles and get the information out to the people working on them. The Information Providers rely heavily on the OEMs for information, but there is a tremendous resource in having regular feedback from technicians and collision repair businesses who have the vehicle in front of them, and can communicate areas where the data may not align with the vehicle reality.”

“Danny really seems to be the ideal individual to assume the role of DEG Administrator,” added Ron Reichen, member of the Joint Operating Committee. “I’ve had the opportunity to work with him directly in the past through other programs, and I think we all believe his technical aptitude and passion for advancing the industry are going to serve the DEG well. Danny shares the values of the DEG and is Danny Gredinberg committed to continue its legacy in the spirit of March Taylor; doing the right things, the right way for the right reasons.”

Danny Gredinberg assumed control of inquiries on May 29, and will work closely with end-users on resolving both existing and new submissions.

“I am really passionate about giving back to this industry and helping to raise awareness and understanding of the information necessary to capture accurate repair procedures,” added Gredinberg.

“The DEG isn’t about changing labor times. It’s really about helping to educate those using the system, to facilitate feedback to those developing it and to get accurate information to the collision repair

ESTIMATING TIPS Back Up Sensors in Audatex – Drilling holes for the backup sensors in a bumper cover is a not-included operation in Audatex and would require a manual line. This can be found in DEG inquiry 10780 and the Audatex DBRM under labor exclusions on page 56.

Welder Setup In CCC One – Setting up the welder for a repair is a not-included operation in CCC One and would require a manual entry. This can be found in the CCC Collision Estimating Guide on page G10 under “Labor Time Does Not Include…”

Audatex Glossary of Terms – Located in the back of the Audatex DBRM is a Glossary of Terms. It includes definitions for items that you may find in the Audatex Estimating System. Located

in the same area is a Glossary of Refinish Terms. For example, page 199 of the Audatex DBRM shows its definition of “Application of guide coat” and “Apply a flash color.”

Audatex Custom, User-Defined Labor Rates - In the most recent Audatex software release, the program now allows users to create a User-Defined Labor Rate. This is especially helpful when working on complex vehicle designs with advanced vehicle construction. A user can now charge a separate rate for Aluminum, Carbon Fiber or any other type of specialty material they are working on. A user-defined rate can be accessed thru the “rate section”. The user can manually change the charge category on a specific labor or part line and charge the custom labor rate for that specific line.

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,WWW.DEGWEB.ORG.

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industry in the most efficient way possible. I’m proud to be a part of it, and to have the opportunity to work closely with great organizations like AASP and SCRS to make a difference.�

For more information about the DEG or if you have an inquiry regarding estimating data, please visit www.degweb.org.

About the Database Enhancement Gateway (DEG): The DEG is an initiative designed to help improve the information in collision repair estimates through proactive feedback about vehicle-specific errors, omissions and inaccuracies in the database and labor times. With support and funding from the Alliance of Automotive Service Providers (AASP), Society of Collision Repairs (SCRS) and other industry organizations, the DEG can provide its services free of charge to the industry. For more information on the DEG please visit www.degweb.org or email admin@degweb.org.

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INSURANCE I.Q.

Auto Liability: A Growing Problem

It is common knowledge that a well-maintained vehicle will lead to less problems and overall cost of operation. This holds equally true for auto liability and insurance coverages.

Auto Liability controls include, but are not limited to: 1. 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.

2. 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.

3. Non-employees should be prohibited from driving or riding in company vehicles. Personal use of company vehicles should be prohibited or limited to owners or with specific permission in writing.

4. 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. No exceptions. Many shops have chosen to use a third party car rental service to reduce this exposure further.

5. 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. Or, test drivers must provide 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. No overnight tests should be allowed.

FAILURE TO CONTROL WHO DRIVES YOUR CAR IS LIKE LEAVING YOUR KEYS IN THE CAR IN A PARKING LOT!

For more information, contact Brad Schmid at CBIZ AiA at 763-549-2247 or bschmid@cbiz.com.

16 June 2017

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18 June 2017

AASP-MN News

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PARTNERS IN PREVENTION

Keeping Lakes

and Rivers

CLEAN

Spring rains have washed away the dirt and debris of winter, but where is ‘away’? When snowmelt or rain run off your property into a gutter or ditch, they flow through storm drains directly into the nearest lake or river. Pollutants left on sidewalks and pavement, such as engine fluids, grass clippings, pet waste, dirt and salt go along for the ride.

Businesses regulated by the Minnesota Pollution Control Agency’s stormwater permit simply follow the requirements of the permit to keep pollutants out of waterways. But most auto body and repair shops aren’t regulated by that permit. What can you do to help keep your local lakes and rivers clean?

A lot of it is common sense. Pick up windblown litter around your property. Check for dumped trash in out-of-the-way and hidden areas on your property regularly. Pick up spilled trash in the area around your dumpsters after they’ve been emptied. Keep dumpster lids closed to keep rain and snow out.

Don’t store anything outside that isn’t meant to be kept outside. Cars are made to sit outside, so they’re fine most of the time, but what about cars that have been in an accident? Make sure a drip pan is available for cars that are towed in. Use a squeegee and dustpan to clean up engine fluid leaks on pavement, and drain the engine if you need to store a leaking car for a while.

Cast a critical eye outside your shop bay doors. What’s in that drum? If the answer is “nothing” or “I don’t know,” get rid of it. If you know what’s in it and you need it, move the drum inside before it leaks or rusts. How about that personal project stashed out back – the one you haven’t gotten around to? Move it inside or get rid of it.

Do you have a gravel parking lot? Look for areas where dirt might be washing away. Stabilize it with plants if you can. Consider paving small areas that are particularly muddy or prone to washing out. Make sure cars aren’t tracking dirt and mud out.

If your parking lot is paved, sweep regularly. Keep the parking lot litter-free whether it is paved or gravel.

If your shop is on a hill, strips of lawn or coarse gravel can help control stormwater that runs onto your property. Consider aerating lawns so water will soak in rather than washing over hard-packed dirt.

Depending on what you do at your shop to keep stormwater clean, you might even save some money. Check your city utility

Landscaping with raingardens can help earn stormwater fee credits while also creating a welcoming environment for customers. bill. Is there a line for a stormwater fee? You might be able to shrink that fee if you can reduce the amount of stormwater that leaves your property or make it cleaner. Ask your city if they offer a stormwater fee credit and how you can earn it.

One popular way to earn stormwater fee credits is by landscaping with raingardens. You may not even notice how many raingardens are around, because they just look like little gardens.

Runoff directed to a raingarden will soak into the ground rather than carrying pollutants to the lake or river you enjoy so much.

Many watershed districts will help you design and pay for a raingarden. A shop with grass and attractive plantings can be more welcoming for customers, too.

Community groups that work to keep lakes and rivers clean remind us that “every curb is a shoreline.” A little effort this summer will help keep your neighborhood shoreline fishable, swimmable and enjoyable all year long.

And a heads-up: There are a few automotive businesses that need a stormwater permit from the Minnesota Pollution Control Agency, such as salvage yards, commuter bus lines, charter bus services, taxi and limo services and construction sites larger than one acre.

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NATIONAL NEWS continued from pg. 11

• Ford announced the rollout of its Omnicraft program last month, which will provide an expanding range of replacement parts to dealers for non-Ford nameplates.

Omnicraft will enable dealers to more quickly service nonFord/Lincoln cars and light trucks.

• Omnicraft also provides a substantial profit opportunity for Ford Motor Company since Omnicraft will replace a growing volume of outside parts purchases by dealers.

While initially available only to dealers, the Omnicraft program might be extended to independent (non-dealer) distributors in the future.

LIGHT TRUCKS TAKE OVER AFTERMARKET Light trucks hold a dominant position in aftermarket product volume and growth.

Six Major Takeaways: • Light trucks are expanding both their share of new vehicle sales and vehicles in operation (VIO).

• Light trucks have increased their share of new light vehicle sales in the U.S. over the past five years.

• Light truck aftermarket product growth topped $10.5 billion between 2011 and 2016.

• Light trucks expanded aftermarket product volume at a 3.6 percent average annual pace, four times the growth rate of passenger car products over the past five years.

• Light trucks generated over 86 percent of light vehicle aftermarket product growth between 2011 and 2016.

• The typical light truck accounts for approximately $150 more in aftermarket product volume than the average passenger car in the U.S.

20 June 2017

AMAZON UPENDS DRIVERLESS VEHICLE RACE Amazon, the country’s largest retailer in market value, could soon become the leader in driverless vehicles. Unlike most driverless technology developers, Amazon is focusing on the technology and its implementation, rather than designing and building driverless cars.

Six Major Takeaways: • Amazon’s entry into driverless vehicle development could be a game changer in terms of how quickly the technology is used in large numbers of vehicles.

• Amazon has two significant advantages over its competitors that could push Amazon into the lead in implementing driverless technology on U.S. roads.

• First, Amazon would initially be its own largest customer in the implementation of driverless vehicle technology.

• Amazon’s second advantage in the driverless technology race is that it would quickly enjoy financial benefits from improved logistics and reduced shipping costs.

• Use of driverless technology in over-the-road hauling is potentially much less complicated than applying this technology to passenger vehicles in urban environments.

• Operating driverless trucks would greatly reduce Amazon’s shipping costs and improve its logistics by eliminating drivers and dramatically cutting the time needed to transport goods over long distances.

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CASH IN ON YOUR MEMBERSHIP!

AASP-MN and Certegy Partnership

The AASP-MN is pleased to recommend Certegy, an FIS™ Company, as the preferred provider for check warranty/verification services.

For nearly 50 years, Certegy has been the trusted leader in payment processing and loss prevention solutions supporting more than 289,000 merchants worldwide. With proven results built on innovative technology and a solid financial reputation, Certegy brings security and reliability to fraud prevention and risk management – valuable commodities for an ever-changing market.

The following program is customized specifically for AASP-MN members.

- Discount rate of only .75 percent, which covers NSF, closed accounts and non-disputed stop payment checks - Discount rate of .93 percent, which includes full stop-payment coverage

-

No transaction or statement fees No check minimums $25.00 monthly minimum ACH billing and claims payment $1.25 voice surcharge-only if remote transaction was not obtained - 60-day claim submission - Enhanced Warranty™ program-virtually eliminates disallowed claims - Discounted equipment pricing

For more information, call toll free (877) 520-2987 to speak with a Certegy representative or email an inquiry with your company name, address and phone number to: product.info@ fisglobal.com and reference “AASPMN” in the subject line.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums. Ask about our program with United Fire Group!

EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, longterm care and disability insurance.

UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.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.

22 June 2017

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.

INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson 651-486-4866 Discounts on industrial supplies and paper products. Free, next-day delivery is available in the metro area. Shipping free to outstate members with $100 purchase.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up).

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.

Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aaiassessment.com / www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

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).

Members who switch prior to June 30 will receive first month of payroll processing free.

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.

BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE and Teamworks products. For more information, contact Customer Service at 888-724-6742, ext.

6986.

AASP-MN News

BUSINESS COACHING 180biz 540-833-2014 / info@180biz.com Website: www.180biz.com Members receive a 20-percent discount on oneon-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments.

Members also receive a 25-percent discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.

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.

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