Hammer & Dolly September 2017

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ASK

MIKE

Anderson pg. 16

SEMA Preview

SCRS

in Chicago September 2017 Volume 11, No. 9 $5.95

www.grecopublishing.com

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September 2017

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September 2017

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CONTENTS September 2017

37 NATIONAL DEBATES, LOCAL OPINIONS: INSIDE THE LATEST CIC

Industry stakeholders clash in Chicago.

BY JOEL GAUSTEN

NATIONAL NEWS 21

SCRS REITERATES POSITION ON OEM PROCEDURES, ADDRESSES IP TECH CONCERNS AT CHICAGO MEETING The national group maintains its support of auto manufacturers.

BY JOEL GAUSTEN

DEPARTMENTS 6 10

Editor’s Message JOEL GAUSTEN

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Executive Director’s Message JORDAN HENDLER

NATIONAL FEATURE 27

SEMA TAKES SHAPE: A REPAIRER DRIVEN EDUCATION PREVIEW Vegas is the place to be for incomparable industry courses.

BY KRISTEN DALLI

TECHNICAL FEATURE 32

WE ARE MEANT TO EVOLVE: WHY YOU CAN’T INSTALL USED WELD-ON COMPONENTS PART 2 OF 2 Ignorance is never bliss in collision repair.

BY LARRY MONTANEZ III, CDA

Calendar of Events

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WMABA Sponsorship Page

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What’s WMABA Up To?

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WMABA Membership Application

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INDUSTRY ADVICE: Ask Mike

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President’s Message MARK SCHAECH, JR.

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WMABA Board of Directors

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Advertisers’ Index

Stock Images © www.istockphoto.com

September 2017

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Industry training opportunities and don't-miss events.

CALENDAR OF

EVENTS September 6, 2017

ADHESIVE BONDING

Brown Honda, Charlottesville, VA

FULL-FRAME PARTIAL REPLACEMENT

N T Auto Body Inc., Alexandria, VA

September 7, 2017

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Criswell Collision Center, Annapolis, MD

STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR

King Volkswagen, Gaithersburg, MD

September 12, 2017

STRUCTURAL STRAIGHTENING STEEL

FinishMaster (Formerly Refinish Solutions), Springfield, VA STRUCTURAL STRAIGHTENING STEEL

Waldorf Toyota, Waldorf, MD

September 13, 2017

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

FinishMaster (Formerly Refinish Solutions), Springfield, VA PLASTIC & COMPOSITE REPAIR

Brown Honda, Charlottesville, VA

September 14, 2017

CORROSION PROTECTION

Criswell Collision Center, Annapolis, MD STRUCTURAL STRAIGHTENING STEEL

Caliber Collision Center, Randallstown, MD

VEHICLE TECHNOLOGY TRENDS & DIAGNOSTICS OVERVIEW

Fredrick Co. Career & Tech, Frederick, MD September 19, 2017

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY

Frederick Co. Career & Tech, Frederick, MD

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY

Canby Motors Collision Repair, Aberdeen, MD September 20, 2017

ADHESIVE BONDING

N T Auto Body Inc., Alexandria, VA PLASTIC & COMPOSITE REPAIR

FinishMaster (Formerly Refinish Solutions), Springfield, VA SECTIONING OF STEEL UNITIZED STRUCTURES

Brown Honda, Charlottesville, VA

September 21, 2017

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY

FinishMaster (Formerly Refinish Solutions), Springfield, VA UNDERSTANDING THE CYCLE TIME PROCESS

Criswell Collision Center, Annapolis, MD

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY

King Volkswagen, Gaithersburg, MD

September 23, 2017

WHEEL ALIGNMENT & DIAGNOSTIC ANGLES

FinishMaster (Formerly Refinish Solutions), Springfield, VA

September 26, 2017 MEASURING

Keystone Linthicum, Linthicum, MD

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CLASS LISTINGS

September 27, 2017

REPLACEMENT OF STEEL UNITIZED STRUCTURES

FinishMaster (Formerly Refinish Solutions), Springfield, VA

September 28, 2017

FULL-FRAME PARTIAL REPLACEMENT

Criswell Collision Center, Annapolis, MD

September 29, 2017

CORROSION PROTECTION

Collision Plus, Blacksburg, VA

SQUEEZE-TYPE RESISTANCE SPOT WELDING

Collision Plus, Blacksburg VA September 30, 2017

October 5, 2017

SECTIONING OF STEEL UNITIZED STRUCTURES

FinishMaster (Formerly Refinish Solutions), Springfield, VA PLASTIC & COMPOSITE REPAIR

DARCARS Collision Center of Rockville, Rockville, MD October 12, 2017

REPLACEMENT OF STEEL UNITIZED STRUCTURES

Frederick Co. Career & Tech, Frederick, MD

October 17, 2017

ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT

Frederick Co. Career & Tech, Frederick, MD

AUTOMOTIVE FOAMS

FinishMaster (Formerly Refinish Solutions), Springfield, VA STELL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR

Collision Plus, Blacksburg, VA

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY

Collision Plus, Blacksburg, VA

www.i-car.com or (800) 422-7872 for info

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KEEP IT GENUINE

INSIST ON GENUINE GM PARTS

We stand behind our product, providing collision repair professionals and vehicle owners peace-of-mind and confidence.

Contact these Genuine GM Parts dealers for all your parts needs: NU CAR CHEVROLET 172 North Dupont Highway New Castle, DE 19720 Phone: 800-633-6606 Fax: 800-346-5285 e-mail: parts@nucar.com www.nucar.com

OURISMAN CHEVROLET 4400 Branch Avenue Temple Hills, MD 20748 Phone: 301-899-6990 Fax: 301-899-9375 www.ourismanchevrolet.com

POHANKA CHEVROLET 13915 Lee Jackson Memorial Highway Chantilly, VA 20151 Phone: 888-266-2993 Direct: 703-502-3729 Fax: 703-968-0932 www.pohankachevrolet.com

RADLEY CHEVROLET 3670 Jefferson Davis Highway Fredericksburg, VA 22408 Phone: 800-355-8202 Direct: 540-898-0055 Fax: 540-891-2074 www.radleychevrolet.com

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The dirty little secret behind those “certification” programs and how they can damage your brand.

Imagine part testing programs without objective published standards that every part is required to meet—or exceed.

That’s “certification” in name only. And if that bothers you, imagine how your policyholders will greet that news.

That’s why CAPA invented automotive crash part certification with rigid standards, tests, and tolerances published for all to see. They eliminate nasty surprises and provide the certainty of true tested quality to everyone whose livelihood, whose life, or whose brand depends on a quality repair.

Because you value what people think of your brand, secret standards just don’t work. So insist on the only genuine replacement parts tested and found good enough to earn the yellow and blue CAPA Quality Seal. Because we care about what people think of us, too.

TM

If it isn’t CAPA Certified, it isn’t a genuine replacement part. capacertified.org

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Joel Gausten

EDITOR’S

(973) 600-9288 joel@grecopublishing.com

MESSAGE A TEST

Yesterday morning, my wife and I were driving home from the supermarket when the car in front of us was struck by an SUV that veered into our lane. Instantly, both vehicles shattered into pieces. My wife immediately swung to the right to avoid the crash as various plastic exterior car parts slammed into the left side of our vehicle. Once we pulled over and stopped, I jumped out to to call 911 and view the possible damage to our car (it was fine), and my wife ran over to the wrecked car closest to us. The accident was severe; casualties appeared possible.

My wife yelled to some of the other drivers who had pulled over to check in on the people in the first car, and she looked inside the SUV to see if everyone in it was okay. Mercifully, the

WMABA OFFICERS

PRESIDENT

VICE PRESIDENT

TREASURER

SECRETARY

IMMEDIATE PAST PRESIDENT

Mark Schaech, Jr. mark@marksbodyshop.com 410-358-5155 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928 Phil Rice phil@ricewoods.com 540-846-6617 Don Beaver don.beaver3551@gmail.com 443-235-6668

BOARD OF DIRECTORS

Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Barbara Chase (barbara@siskautobody.com) 301-855-5525 Ben Gibson (bgibson@harrisonbodyworks.com) 804-355-8151

Ashley Kruger (akruger@baughautobody.com) 804-285-8045 Bill Hawkins (whawkins@mybmwannapolis.com) 410-349-2578 Danny Szarka (dszarka@mileone.com) 410-525-1000

ADMINISTRATION

EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116

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inside of the vehicle was as safe and secure as a bomb shelter. Amidst the deployed airbags sat an elderly couple. The man, obviously in shock, looked straight ahead without saying a word. Blood appeared on his forehead – the result of hitting a sun visor that wasn’t all the way down. The woman sat shaking, clearly having a panic attack. My wife talked with her until the police and ambulances arrived, and they took things from there.

Returning to our car, my wife told me about the conversation she had with the woman. The couple were on their way home from a weekend of music and worship.

Terribly upset, the woman kept asking, “Why, God. Why?” Thinking on her feet (and always with her heart), my wife told her, “It’s okay. God is testing you.” Finding comfort in those words, the woman replied, “God bless you! You are an angel sent from Heaven!”

Regardless of your religious affiliation, the universal truth remains that we are tested in several ways every day. We are tested by how we interact with our co-workers and those closest to us. We are tested by having to keep our cool when we’re stuck in traffic or in a long line of slowpokes at the bank. We are tested when something bad unexpectedly happens to our homes and we get a hefty bill. We are tested when, like my wife, we are presented with the sudden need to offer words of hope and support to a complete stranger who is experiencing a moment of great fear.

The collision repair industry is no different. Each day, you are tested by your obligation to have the skills, parts and equipment necessary to bring a car back to preaccident condition. You are tested whenever a third party tells you that you have to use parts or perform certain procedures that contradict what the OEMs recommend. Because that SUV was built properly, the people inside it survived. Because that SUV was built properly, that elderly couple can now call their friends and family and tell them how much they love them. Every vehicle that enters your shop needs to be repaired with the same care. Doing the right thing isn’t up for debate on the floor of CIC; it is a matter of life and death.

Please…pass your tests today. H&D

September 2017

STAFF

PUBLISHER SALES DIRECTOR EDITORIAL DIRECTOR CREATIVE DIRECTOR EDITORIAL/CREATIVE COORDINATOR

OFFICE MANAGER

Thomas Greco thomas@grecopublishing.com

Alicia Figurelli alicia@grecopublishing.com

Joel Gausten joel@grecopublishing.com

Lea Velocci lea@grecopublishing.com

Kristen Dalli kristen@grecopublishing.com

Donna Greco donna@grecopublishing.com

PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2017 Thomas Greco Publishing, Inc.

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Unsurpassed Quality.

Genuine Hyundai Parts.

HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE.

SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS.

TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR THE WHOLESALE

PARTS SPECIALIST AT THESE FINE DEALERS. Buy Hyundai Parts.

For Genuine Hyundai parts, contact these Authorized Hyundai Dealers.

Fairfax Hyundai 10925 Fairfax Blvd.

Fairfax, VA 22030 Phone: 703-273-5188 FAX: 703-352-3115 E-mail: parts@fairfaxhyundaiinc.com

Fitzgerald Lakeforest Hyundai 905 North Frederick Ave. Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595

Malloy Hyundai 1880 Opitz Blvd.

Woodbridge, VA 22191 Parts Direct: 703-490-8263 Fax: 703-490-3864 E-mail: hmkparts@aol.com

Checkered Flag Hyundai 3033 Virginia Beach Blvd.

Virginia Beach, VA 23452 Phone: 757-687-3463 Fax: 757-687-3468 hyundai.checkeredflag.com

September 2017

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EXECUTIVE DIRECTOR’S

MESSAGE

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

BACK TO SCHOOL, FOR ALL As an industry, the majority have stopped learning. Every education entity out there says it at almost every national meeting I attend. While I find that the majority of repairers claim that busyness is pushing it to a lower priority, there are so many people who say, “I’ve done that repair operation a thousand times. I don’t need to look it up; I can do it in my sleep.” This is the epidemic of our industry that is choking the ability to attract new people. His name is Ego, and he’s a jerk.

If we want to engage people with excitement about the future, our industry needs to get a grip and latch onto the opportunity that continuing education brings. It gives folks purpose – and hope – that is desperately needed. They need to feel as though they are worth investing in, and that gaining knowledge is the path to success. The better they can understand how and why repair procedures have advanced, the better they can fix a car, educate the customer and reduce comebacks or liabilities the shop faces overall.

In my travels, the best and brightest shops with the technicians who are highly productive and love their jobs have a culture of learning. To them, knowing something yesterday means nothing today. That’s how you should feel, too. There is no room in repair for ego or “know-it-alls,” because truly there is no possible way to know it all. You must have a researcher’s heart, a librarian’s spirit and a team-player’s outlook.

If spending the time to do the research is a “waste of money,” well, I tend to argue that it’s not a paid endeavor when you look at it literally. As shops that do it will tell you, you make it up in documenting operations and writing a better and more complete sheet. If you don’t make this upfront effort, the time you end up losing is on the back end when something doesn’t work – or worse, when you’re scrambling to get a calibration or re-repair done.

There is a movement in America to get back to trade work and acknowledge how viable and lucrative it can be. Trust me, the young folks, other industry letdowns and ex-military personnel are listening with both ears – and their hands cupped around them. If we show them we care about education, quality and making happy customers, we can stomp out needing to find good help as an issue we all face.

Know your audience, give them a reason to be moved and – as we all know from experience – the collision industry will never let them go.

Everyone here will attest that once it’s in your blood, there is just no cure for collision repair.

Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.

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THANKS

YOU WMABA thanks their generous supporters of the

LEVEL 1

Corporate Sponsor Program for 2017!

We encourage YOUR SUPPORT of those who SUPPORT US! For more information about the sponsorship program, please contact Executive Director Jordan Hendler at (804) 789-9649 or email jordanhendler@wmaba.com

www.wmaba.com

LEVEL 2 Automotive Training Institute Certified Automotive Parts Association FinishMaster Mid-Atlantic Paint & Supply National Coatings and Supplies WheelsOnsite

September 2017

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Find more association updates at www.wmaba.com.

WHAT’S UP TO? WMABA MEMBERSHIP: THE UN-SECRET PLAYBOOK It’s always a good time to get involved in WMABA. If you’re reading this, your first benefit is already being realized: Staying up to date on the news in our area and beyond.

Get Your Team Jersey Supporting WMABA is an investment in the future of your business and your industry. By becoming a member, you are represented in all the places the Board or executive director go. Whether at a trade show like SEMA, assisting with the SCRS OEM Technology Summit regarding certified repairs or locally at the state capitol meeting legislators or testifying at a hearing, your interests and the interests of all repairers are at the forefront. Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team.

Get Educated WMABA offers issue-specific, topic-driven education throughout the year.

Participation in special events and local meetings, such as the Audi Training Center-hosted seminar and tour, offers your business the best in opportunities to advance your understanding of changes within our industry.

JOIN TODAY!

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The Playbook The association is your resource for all things related to your business.

Whether you have a question about current Labor Rate data, operations, customer interaction, insurer relationships, vendor products or national news, your association is the place to ask first. Through our relationships nationally, we can even take issues to the forefront of places such as the Society of Collision Repair Specialists, Collision Industry Conference or national contacts for insurers and vendors.

Locally, we research governmental regulations and oversight to make sure the repair industry is protected from any negative legislation. Represented in both Virginia and Maryland, WMABA proposes and opposes recommended bills that come into the legislature during open session. Also, we work with consumer-related entities, government agencies and other related industry organizations to ensure that the voices of the repairer and their customer are heard.

Many repairers take advantage of the knowledge and community the association has for navigating situations that arise. A simple phone call or email can circumvent many issues our members encounter.

Call the Game As a member, you decide your personal level of participation. Do you have interest in committees that address particular issues you feel passionately about? Would you want to be a Board member and assist in guiding the direction of the association? How about sitting on the sidelines so you can focus on your own business? All answers can be correct! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved.

The minimum is getting your membership. This year can WIN with your commitment to the betterment of your business and your industry. Sign up today! H&D

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INDUSTRY

ADVICE

ASK MIKE

How can OEM-certified shops balance their obligations to the manufacturers while also dealing with insurers?

This month, we “ASK MIKE” to explore how OEM-certified facilities can follow automakers’ guidelines while also receiving suitable compensation from insurers. We at Hammer & Dolly hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

Hammer & Dolly: Mike, here’s a question we’re hearing a lot these days. How can OEM-certified shops balance their obligations to the manufacturers while also dealing with insurers?

Mike Anderson: The first thing is we have to understand that we can’t be reliant upon position statements. It’s great that the OEMs provide position statements; it certainly is helpful, and I don’t want to make light of that.

But at the end of the day, the repair procedures are king. We have to be able to research the OEM repair procedures and have those as our documentation. For example, it’s good to have a bulletin from Chrysler that says we need to scan vehicles, but if I’m replacing a door on a Chrysler vehicle and I see in the door section of the procedures that I need to recalibrate something, then that’s an even stronger

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statement. We actually have to do that strictly for that specific vehicle and document our case.

When you want to get paid from an insurer, your opinion doesn’t mean jack. If we rely on our opinion, the outcome is not going to be very good. We need to stick to the facts.

The facts can be found in these four questions:

Is what we’re asking for required?

We have to be prepared to provide documentation if what we’re asking for is required. There are several ways to provide that information. One is the OEMs’ documentation. Another might be that we scan the vehicle, and now we have a scan report. Another way might be that we have a paint manufacturer’s bulletin.

Is it included in any other labor operations? How can we prove that something’s not included? Obviously, we can use the P-Page documentation direct from the estimating systems, or we can submit a question to the DEG website – degweb.org and they will provide us with an answer that says, ‘This is not included.’

Is there a pre-determined time?

Again, we either look it up in the

estimating system or submit an inquiry to the DEG. That’s the basis for what we should be reimbursed, and we remove our opinion from it and stick to factual information.

What is it worth? How do we determine this? In some cases, it may be a product like seam sealer where we just submit an invoice. It could be that it’s a labor operation that is not in a database, and maybe we need to submit an inquiry to the DEG and get the Information Providers to come up with a labor time.

Maybe we just need to do our own time, keeping in mind that a time should be how long it takes the average technician to gather up their tools, equipment and supplies and perform the task in a safe and proper manner before returning everything back to its appropriate storage place.

When you’re looking to repair a vehicle and you’re an OEM-certified shop – and even if you’re not – you want to be repairing it to the OEM standards.

Therefore, we stick to those four questions above. We need to have all that documentation ready in advance so that we can provide it to the insurer when they come out.

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Insights and advice from an industry mentor.

Obviously, there may be some OEMs that you’re doing work for that have other guidelines besides labor times. It might be something like aftermarket parts; maybe you have an OEM certification that says you can’t use them. Maybe you have OEM information that says in order to be certified, you have to mount the vehicle on a specific frame machine that is more labor-intensive than whatever your normal frame rack is.

At the end of the day, we need to realize that when a customer drops their car off with us, the contract is between us and that customer; it is not between us and the insurance carrier. Therefore, if an insurance company refuses to pay for something that is a safety issue, that doesn’t remove us from the liability.

Obviously, you want to approach this in a professional manner by providing all the documentation required – and, again, always have it there in advance. Also, make sure you use the correct terminology for the procedures included

on your estimate. One more thing that is extremely important is to use good line notes; you might have a desk auditor who’s actually looking at your estimate.

There are other things to consider.

For example, let’s say that a customer or an insurer doesn’t want to pay for scanning the vehicle. You still have to do it. That’s where we go back to the business decisions we mentioned in a previous article [“Ask Mike: What Do I Do When an Insurer Won’t Pay Me for What I Want or Need?” H&D April 2017]. You can choose to involve the customer, charge the customer, do the work for free, go up the chain of command, et cetera. I won’t say that a lot of the issues I see shops encountering are easily resolved, but they are also not insurmountable obstacles to overcome. Just being prepared and having the specific OEM information – and not just a position statement – will make a huge difference. H&D

Do you have a question for Mike?

Contact Hammer & Dolly Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists.

Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards.

In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it.

For Genuine Honda parts, contact these Authorized Honda dealers.

Ourisman Honda 3371 Ft. Meade Rd. Laurel, MD 20724 Direct: 301-498-6050 Fax: 301-498-0157 www.laurelhonda.com

Honda of Tysons Corner 1580 Spring Hill Rd. Vienna, VA 22182 Direct: 703-749-6652 FAX: 703-821-4229 www.hondatysonscorner.com E-mail: sebastian.venegas@hondaoftysonscorner.com

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September 2017

Miller Honda 3985 Valley Pike Winchester, VA 22602 Direct: 800-296-5020 Direct Local: 540-868-9916 Fax: 540-869-1074 E-mail: bmorgan@drivemiller.com

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News from the national scene.

NATIONAL

BY JOEL GAUSTEN

NEWS

SCRS Reiterates Position on OEM Procedures, Addresses IP Tech Concerns at Chicago Meeting The recent Society of Collision Repair Specialists (SCRS) Open Board of Directors Meeting in Chicago showcased some of the many ways the national association (for which WMABA President Mark Schaech, Jr. serves as a director) is fulfilling its commitment to strengthening the US collision repair scene.

In June, SCRS issued a position statement reiterating its longrunning support of OEM repair procedures as the standard of repair.

The statement, reproduced in unedited form below, references a position from 2011 when the association joined AASP National, ASA and Assured Performance in publicly endorsing the OEMs as the definitive sources of procedural information:

In 2011, the Society of Collision Repair Specialists (SCRS) along with other national entities representing collision repair businesses and technicians across the US issued a definitive position recognizing the standard of repair for collision damage. The statement read: We hereby recognize published repair procedures, as provided by the Automobile Original Equipment Manufacturers (OEM), as the official industry recognized repair standards for collision repair.

These standards, where they exist, shall be the basis for the establishment of training, testing, repair practices and documentations.

Whereas, we acknowledge that OEM repair procedures are incomplete in comparison to the full scope of vehicles and repair operations which exist in the marketplace; the OEM published repair procedures shall serve as the baseline for industry repair standards, with the recognition that further development of procedures will be necessary in areas not covered by published procedures.

This statement remains as true today, as it was in 2011; and while the statement in 2011 encompassed all published collision repair

SCRS’ Aaron Schulenburg during the association’s recent meeting in Chicago

procedures, it is equally inclusive of published diagnostic and mechanical operations required from a collision and the subsequent repair. It remains SCRS’ position that if an OEM documents a repair procedure as required, recommended or otherwise necessary as a result of damage or repair, that those published procedures would be the standard of repair until such time the documentation changes.

Disregarding a documented procedure that is made available to the industry creates undue and avoidable liability on the repair facility performing the repair.

During his report to attendees, SCRS Executive Director Aaron Schulenburg stressed that it was the repairer’s responsibility to abide

by OEM instructions and recommendations every time a vehicle arrives in the bay.

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NATIONAL NEWS “I know there’s a challenge over whether or not [insurers] pay or don’t pay for these operations, but there is undue and avoidable liability when documented repair procedures aren’t followed.”

In other news, Schulenburg noted that SCRS remains active in meeting with the major Information Providers to give these companies a “real-world perspective” on the challenges that their systems sometimes present to estimators. He explained that these discussions were “across-the-board” examinations of key issues in functionality, inaccuracies and the language used in these products and not restricted to any specific vehicle-related issue.

On a related topic, SCRS recently met with CCC in response to member feedback on how the IP currently handles change requests during the supplement process.

“If you’re on a DRP with some of the carriers, there’s a mechanism for them to actually communicate back to the shop and identify areas where they feel – as per their program outline – the facility has overwritten labor or operations,” shared Schulenburg. “In one case, the shop had already started a secondary supplement.

When they received the change request back [from the insurer], it also identified the removal of items that were only included on the supplement, which hadn’t been locked yet. It created a concern for the shop over how the insurer is seeing items on an unlocked supplement. A lot of questions occurred, including if the insurer is able to see [the document] as [the shop] is working on it. We went to CCC and [informed] them of the situation.

SCRS recently met with CCC in response to member feedback on how the IP currently handles change requests during the supplement process.

“What we ultimately identified was how their system is set up if a change request comes through and the supplement has been started,” he continued. “Essentially, the system must bring the sheet back to the condition of the original estimate of record, before the user applies the change request; then, you lock it and then you would start your next estimate. This means that lines that had been added since, even if not locked, would be removed back off the sheet. While it makes sense procedurally, it was very unclear to the shop that it

Executive Director’s Thoughts

wasn’t the insurer requesting that these items be removed. For somebody who’s on a program and trying to abide by it, I think many shops may simply remove it, thinking that the insurer was deleting the line and the expectation was that they could not charge for it.”

Other SCRS Activities In an effort to promote career opportunities in the industry, SCRS recently launched an online Career Center (available at scrs.com/ jobs) that allows users to search for jobs, post their résumés or publicize open positions.

Looking towards the future, SCRS continues work on organizing the collision repair industry’s presence at the upcoming SEMA Show in Las Vegas. In addition to offering a full slate of Repairer Driven Education (RDE) seminars and events, the association is set to host the first-ever Collision Industry Red Carpet Awards ceremony on November 2. Participating organizations that will be presenting honors at the morning gala include SCRS, BodyShop Business, CIECA and I-CAR, with others likely to be announced soon.

“We’re looking for an opportunity to really highlight the individuals and businesses in this industry who are [deserving] of recognition,” Schulenburg said. (A closer look at some of this year’s RDE presenters can be found on page 26. A full list of RDE classes and details on how to register are available online at semashow.com/scrs.)

Schulenburg also noted that SCRS is continuing its focus on assisting the collision workforce of the future through its support of the national SkillsUSA competition.

“It is a phenomenal event where the best of the best young competitors try to show their talents to the industry and demonstrate what they’re capable of. As in past years, SCRS has decided to award the four Gold medalist winners with $1,250 tool scholarships in conjunction with Snap-on, who work with us to give them significant discounts.”

The Open Board of Directors Meeting also featured a technical discussion presented by SCRS members Toby Chess and Michael Bradshaw regarding items not included when working with aluminum.

The gathering concluded with the premiere of the third part of the SCRS Education Committee’s video series on MIG welding. The nearly 12-minute video (which featured Bradshaw, Chess and fellow SCRS members Andy Dingman and Dave Gruskos) is available on SCRS’ official YouTube channel at youtube.com/scrscollision. The association encouraged the affiliate representatives in attendance to distribute the video, as well as the other free SCRS videos available on the YouTube page, to their members and others in the industry who would find the content beneficial to their businesses.

For information on upcoming SCRS meetings and special events, please visit scrs.com. H&D

This meeting showed exactly why WMABA is an active affiliate of SCRS and fully supports its efforts to continue to make this industry a better place for our repairers and their businesses. Their work on issues has been moving the needle; if you have any questions about getting involved, you should certainly reach out to us or them! - Jordan Hendler

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PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment September 2017

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Š 2017 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.

Diagnostically speaking, there is no substitute.

Porsche technology.

Porsche Genuine Service & Parts.

Contact one of these authorized dealers.

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Porsche of Rockville 1125 Rockville Pike Rockville, MD 301-296-2870 Fax 301-762-5055 rockville.porschedealer.com

Porsche of Arlington 3154 Jefferson Davis Highway Arlington, VA 703-684-8835 Fax 703-518-0467 arlington.porschedealer.com

Porsche Silver Spring 3141 Automobile Boulevard Silver Spring, MD 844-413-6929 Fax 301-890-3748 silverspring.porschedealer.com

Euroclassics Porsche 11900 Midlothian Turnpike Midlothian, VA 804-794-3399 Fax 804-794-9771 euroclassics.porschedealer.com

Porsche Towson 700 Kenilworth Drive Towson, MD 855-873-8619 Fax 410-296-4852 porschetowson.com

Checkered Flag Porsche 2865 Virginia Beach Boulevard Virginia Beach, VA 757-687-3483 Fax 757-687-3490 checkered-flag.porschedealer.com

September 2017

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NATIONAL

SCRS’ SEMA schedule intensifies.

BY KRISTEN DALLI

FEATURE

SEMA TAKES SHAPE: A Repairer Driven Education Preview

The Repairer Driven Education (RDE) series presented by the WMABA-affiliated Society of Collision Repair Specialists (SCRS) is one of the most anticipated aspects of the annual SEMA Show in Las Vegas. Following enormous successes in recent years, nearly 200,000 automotive enthusiasts from around the globe will gather at the Las Vegas Convention Center to take in the sights and learn from some of the industry’s most respected professionals at this year’s installment. With roughly three dozen classes being held throughout the week (October 30-November 3), attendees will be forefront to the latest technologies, innovations and current events in the collision repair industry.

SEMA 2017 is packed with an impressive portfolio of speakers and presenters, and SCRS National Director Tim Ronak (senior services consultant of AkzoNobel) is just one of the SEMA giants returning to present at this year’s Show – and one of the presenters kicking off the week with a session in a brand-new Monday timeslot.

“SEMA attracts a significant number of collision industry participants,” Ronak says. “With the number of people there, we’re able to present to a broad audience.”

Ronak will be presenting “Severity: Why it Does Not Matter and What to Do About It” (October 30) and “Which Certifications Are Right for My Business?” (November 1). In his first seminar, Ronak plans to teach audience members how repairers are truly not in control of their severity rating.

“Severity has gone up about 32 percent in the last three years, and that is not a cost increase due to repairers. It is a fallacy that shops can control their severity and have any impact on it. They have no ability to manage it; it is beyond their ability to manage it.

The inference then by insurers is that they can mitigate the cost of repairs using lower-cost part options, but the savings from that are truly minimal.”

In the class, Ronak will emphasize the complexity of vehicles and plans to provide attendees a tool with a severity-by-statistics model.

“Managing a company on severity is akin to playing Whack-AMole. When evaluating on severity value, most shops have nowhere near the sample size to measure true severity. A lot of times, repairers react to being told their severity is too high by simply not charging for stuff, or avoiding procedures under the guise of, ‘I need to keep severity low.’ Statistically, there is no impact. So in this class, we’re going to discuss statistics and requirements of statistics before they can be evaluated.”

Ronak’s seminar on certifications will highlight many aspects of the certification process that are overlooked by repairers, as well as decipher which options make the most sense for individual businesses. When deciding on certification programs, there is a financial component along with a time commitment, and Ronak plans to tackle both issues in class.

“There is a large investment in equipment, then the ongoing commitment of updating that equipment, along with training, and certification for training that are ongoing costs that people don’t factor into the cost of labor,” he says.

Along with Ronak, attendees will have the opportunity to learn from SEMA veteran Larry Montanez (P & L Consultants) as he presents “How to Find, Read and Understand OEM Repair Procedures” (November 1). Speaking with Hammer & Dolly, Montanez shared on his previous successes teaching at SEMA. “Traditionally, the classes are well attended. I have good interactions with people there, and it’s a really wide-range place.

SEMA is a good way to not only see announcements and new things coming out, but also what might be happening or occurring in the new year.”

With this class, Montanez is hoping to give attendees “a better understanding of how to find specific repair information,” and said his main goals are to help participants “understand [OEM repairs], decipher them and [understand] how to use them in their shops.” He added that, “OEM repairs are associated with the mechanical aspect of the collision repair industry, and a lot of times you have to look around for that information, but it’s critical to the repair.”

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Fellow presenter Keith Manich of Automotive Training Institute (ATI) will be hosting his first RDE session with “Preparing and Conducting Negotiations for Collision Repair Shops” (October 31). In the class, Manich will help collision repairers prepare for negotiation scenarios of all kinds, while he educates participants on repairer needs, the use of supporting repair and financial documentation and improved delivery of information.

“The big thing here is recognizing that there are negotiating processes that we enter into that are topics we really shouldn’t have to [negotiate] on. I think it’s really important that, as the folks are preparing their estimating processes in the repair planning, they are identifying areas they feel may be [ones] of concern and planning for discussions by pulling the information that is necessary…To put it in its simplest form, it’s important to know when you’re going to be challenged and what information is required to meet that challenge.”

First-time presenter Gary Hart (Independent Glass Association – IGA) will be presenting “Navigating the World of Automotive Glass Repair and Replacement” (October 31) alongside Bob Beranek. The class is particularly important for technicians who want to know what to expect in the next five years, get a better understanding of what training and education is available and – most importantly – keep safety as a priority.

“Attendees will learn about what it takes to manage the complex challenges that face automotive glass repair and replacement, from identifying the right glass parts to billing for services,” offers Hart. “They will also take back the knowledge of which tools to use in order to facilitate these processes, including scanning, calibration and internetbased software such as eDirectGlass.”

Hart also spoke to the unique dynamic of his class, highlighting the importance of the crossover between glass and collision repair.

“With each model year, manufacturers rely more and more on automotive glass to replace structural aspects of the vehicles they make.

Because of this, the complexities they introduce require the cooperation of collision repair and automotive glass shops to share services, knowledge and more. In addition, automated driver and advanced driver

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assisted systems (ADAS) rely heavily on integrated components that directly affect glass repair and/or replacement that require specialized services that only one or the other can provide.” Also, starting September 1 in preparation of SEMA, the IGA website (www.iga.org) will feature additional educational resources to better prepare for this class.

Will Latuff (Latuff Brothers Auto Body), who will be presenting “Building a Bigger Estimating Toolbox,” and Casey Lund (Warrensburg Collision), who will be presenting “Leadership: What Game Are We Playing?” also shared their SEMA experiences.

“SEMA is a fantastic venue for classes due to the high level of attendance by the collision repair industry, parts suppliers and OEMs,” Latuff says. “The opportunity to exchange information and learn is immense.”

When discussing his seminar, Latuff says, “I am dedicated to making a positive difference in the industry. I believe you never stop learning, and having that access to OEM repair information and parts diagrams is both powerful and exciting. Educating people about how to research, leverage and implement these resources will make the collision repair industry better for all stakeholders.”

Lund spoke similarly of his seminar, saying, “I hope those attending will take away a new view of what leadership really is. In most cases, we spend most of our time managing or directing. People don’t want to be ‘managed;’ they want to be led.”

Though this is just a taste of what the RDE series will look like, it is an exciting first step towards getting ready for SEMA 2017. To register for RDE presentations, visit scrs.com/rde. H&D

Executive Director’s Thoughts

The SEMA Show is the top-shelf opportunity for all repairers to get to the front of the class in their market. Knowing what is coming, learning from the best instructors and seeing the latest in all technological advances slingshots you into the future. Get your tickets, hotel room and flights today! - Jordan Hendler

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WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it.

You want the best part for a Toyota, but you’ve got to know when and how much.

Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”

ToyotaPartsAndService.com

©2014 Toyota Motor Sales, U.S.A., Inc.

For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Koons Tysons Toyota 8610 Leesburg Pike Vienna, VA 22182 Phone: 703-790-8310 Fax: 703-356-9081 www.koons.com Antwerpen Toyota 12420 Auto Drive Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com

Checkered Flag Toyota 5301 Virginia Beach Boulevard Virginia Beach, VA 23462 PH: 757-687-3443 FAX: 757-687-3437 www.checkeredflag.com

Ourisman Fairfax Toyota 10441 Lee Highway Fairfax, VA 22030 Toll Free: 800-626-2236 Direct: 703-273-2236 Fax: 703-385-8411 fairfaxparts@ourismanva.com www.ourismanva.com

Younger Toyota 1935 Dual Highway Hagerstown, MD 21740 Phone: 800-296-1190 Fax: 301-733-5465

Koons Toyota Annapolis 1107 West Street Annapolis,MD 21401 Phone:(800)262-3330 Fax:(410)280-6361

dthompson@youngertoyota.com

roy.easter@koons.com

September 2017

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Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138 e-mail: parts@alexandriavw.com

Karen Radley Volkswagen 14700 Jefferson Davis Hwy. Woodbridge, VA 22191 703-550-0205 Fax: 703-643-0081

Ourisman Volkswagen of Bethesda 5415 Butler Road Bethesda,MD 20816 301-652-2452 Fax: 301-652-2589

Checkered Flag Volkswagen 3025 Virginia Beach Blvd Virginia Beach, VA 23452 Parts Direct: 757-687-3465 757-490-1111 Fax: 757-687-3514

Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841

www.checkeredflag.com

e-mail: parts@fitzmall.com www.fitzparts.com

Ourisman Volkswagen of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Toll Free: 855-417-4511 Fax: 240-499-2488

King Volkswagen 979 North Frederick Ave. Gaithersburg, MD 20879 Parts Direct: 240-403-2300 Fax:240-403-2398

e-mail: rockvilleparts@ourismanautomotive.com www.ourismanvolkswagenofrockville.com

e-mail: parts@vwking.com www.vwking.com

Fitzgerald Volkswagen of Annapolis 34 Hudson Street Annapolis, MD 21401 Phone: 410-224-4636 Fax: 410-224-4264 www.fitzmall.com

Ourisman Volkswagen of Laurel 3371 Ft. Meade Rd. Laurel, MD 20724 Phone: 301-498-6050 Fax: 301-498-0157 www.laurelvolkswagen.com

e-mail: vwwholesale@ourisman.co

September 2017

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TECHNICAL

FEATURE WE ARE MEANT TO EVOLVE: WHY YOU CAN’T INSTALL USED WELD-ON COMPONENTS PART 2 OF 2 Last month, I concluded the first part of this feature with a question I get a lot: “Let’s say the technician is well-trained and can perform proper welds, and all the equipment is in top shape and the most advanced. In this case, why can’t we use salvage components?” It’s a good question; this article will answer it.

First, let’s look at the issues with “clipping a vehicle” or using outer and inner (reinforcement) assemblies obtained from totaled-out vehicles found in junkyards.

FACTS: 1. Sorry to break the news to you technicians, shop owners and even you insurance adjusters, but you are not engineers. Ninetynine percent of the time, you cannot produce any scientific, evidentiary proof to support your idea of what you want to attempt. Generally, the only proof given after the good old “I know what I am doing and have been doing this for years” (which really means you really don’t know) would be monetary.

The tech will claim it is “gravy” money, the shop owner will claim it is profitable and the insurance adjuster will claim it is cost effective and will follow up with the idiotic statement of, “It is usual and customary.”

2. Insurance companies, insurance adjusters, independent adjusters and claims managers do not fix vehicles, so their opinions come without any in-field training, ongoing experience

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or even OEM technician certifications. They can total the vehicle out (pay the actual cash value), pay the costs of repairs or repair the vehicle themselves (which, obviously, will never happen).

3. “Clipping or assembly sectioning preserves more factory spot welds and corrosion protection.” Although a very true statement written by I-CAR and mentioned in many of their classes, it is one of the worst excuses ever to support utilizing used weld-on parts. Preserving the factory spot welds and corrosion resistant materials (which are baked-on or electrostatically applied at the factory) is not as important as ensuring the repaired vehicle reacts in the same manner – in a subsequent accident – in which it was originally designed. As such, replacement of damaged components must be performed with new OEM components at the provided sectioning locations or at component mating flanges (partial or complete component replacement), using the required materials and equipment.

4. The design of the modern advanced material inner reinforcement panels makes it so they cannot be sectioned due to their metallurgical makeup. Friction (which creates heat) is

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A must-read for repairers.

BY LARRY MONTANEZ III, CDA created by the cutting of the AHSS on the vehicle and on the junkyard components, which tempers the cut areas. Dressing (grinding) of the cut area to prepare the area for welding additionally tempers the area. The welding of the cut area tempers that area further and finally dresses the weld. Remember the amount of areas that you would have cut into on the outer panel to gain access to the inner reinforcement panels.

Another thing to remember: You are making up your own sectioning areas and joining methods with no scientific testing to ensure the safety of the occupants. And no, you don’t know better.

Consider this scenario: You have a late-model vehicle (such as a 2016 Chevrolet Cruze) impacted in the rear. The vehicle sustained damage to the rear bumper assembly, rear body panel, trunk floor pan, trunk lid, left and right rear tail lamp assemblies, and both quarter panels sustained significant damage. Now, some uneducated and inexperienced estimator and technician will think this is repairable. (It is not.) Then, these two rocket scientists will offer to clip the vehicle (or it will be suggested by the insurance adjuster who comes to inspect the vehicle, the photo estimating virtual claims handler or a DRP manager). Many times, the shop guys will think the insurer is forcing them to do this (which they cannot) – which makes this even scarier.

Wrong move, guys. Now, the damaged vehicle that they want to “save” will need parts. To “save” more money and not total the vehicle, they will call junkyards to find a car from which to procure the clip. The vehicle they are repairing was wrecked a week or two ago, but the donor car was wrecked at some other point in the past. Although both of the vehicles are the same age, one sustained enough damage to deem the vehicle a total loss (obviously a non-greedy facility and

adjuster were involved in that claim). So you are going to be repairing a vehicle using junk parts from a junked vehicle that sustained more severe damage. What’s funny about this whole scenario is that this facility estimator and technician (and even the insurance adjuster) have probably attended multiple I-CAR classes. I guess they must have missed the part about how the collision energy travels throughout the entire vehicle and can cause damage in other areas of the vehicle away from, or even opposite, the point of impact.

Almost all OEMs have made the issues using junkyard, salvaged and/or used parts crystal clear, such as voiding portions of the vehicle’s warranty where replacements with non-OEM parts have been made. (Yes, this is 1,000 percent true. Read the entire MagnusonMoss Warranty Act. Insurance adjusters are not lawyers, either.) Other problems include corrosion issues with the salvaged component and the safety to the occupants (collision energy management and airbag deployment timing). OEMs have also stated that new, undamaged parts that are properly installed (by following the specific procedures and material) will react to a subsequent collision event in the same manner as the original parts. In a court case, this will become the final nail in the coffin for the collision repair facility.

Hopefully, this article has made you more aware of the issues with using weld-on junk parts to repair modern vehicles. Even if it made you mad, upset or angry at me, it doesn’t matter as long as you read and understood it.

For more insight and information, check out the online video “Repair University Live: What Does I-CAR say?” at youtube.com/watch?v=-rOwdHZ3unE. H&D

Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.

Executive Director’s Thoughts

All too often, we hear of repairers who truly felt that the insurer was “requiring” them to perform an operation, when at the end of the “investigation,” the insurer will relent that it was a suggestion and what they knew other repairers were doing. In walks “usual and customary.” As Larry points out, what may be usual and customary isn’t necessarily right.

It also won’t be acceptable to a judge and jury. As Momma always says, “Two wrongs most certainly do not make a right.” - Jordan Hendler

September 2017

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Superior service starts with superior parts.

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Contact these Mazda dealers for all your parts needs: Brown’s Fairfax Mazda 10570 Lee Hwy. Fairfax, VA 22030 Toll Free: 800-234-8642 Phone: 703-385-3994 Fax: 703-591-5348

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Ourisman Mazda of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Phone: 855-417-4511 Fax: 240-499-2488 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanmazdaofrockville.com

Fitzgerald Mazda of Annapolis 1930 West Street Annapolis, MD 21401 Toll Free: 866-280-8022 Phone: 410-224-4636 Fax: 410-224-4264

Fitzgerald Mazda 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax 877-696-1841 E-mail parts@fitzmall.com www.fitzparts.com

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www.fitzmall.com

September 2017

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COVER

STORY

Parts and privacy drive industry talks.

BY JOEL GAUSTEN

NATIONAL DEBATES, LOCAL OPINIONS: Inside the Latest CIC The recent Collision Industry Conference in Chicago put a penetrating spotlight on some of the greatest issues currently impacting the national automotive repair industry. This month, Hammer & Dolly provides an overview of the major points from the floor of the meeting and offers commentary on these matters from the WMABA-area industry.

Parts & Pressure Considering the number of inter-industry participants in the room, it came as little surprise that parts usage was a key topic. During the CIC Governmental Committee-hosted panel discussion on the regulatory impact on aftermarket parts, participants voiced strong opinions on the use and appropriateness of these products in today’s industry.

Stressing the quality of the non-OEM parts that his organization certifies, Certified Automotive Parts Association (CAPA) Executive Director Jack Gillis noted that alternative vehicle components should only be considered for a repair if their structural integrity is guaranteed.

“Anything that has safety ramifications in the vehicle must be tested to ensure that it performs the same way as that equivalent safety part in the car company’s products.”

However, Gillis expressed concern that existing patents on various OEM parts make it difficult for aftermarket providers to actively compete in the marketplace.

“The car companies need to open the door to competition. The design patenting of these parts is really a business strategy. We don’t certify parts that have a design patent on them…That means those parts are not going to be available in the marketplace [in alternative form]. That’s not right. We need those parts; we need competition [and] you need choice.”

Although panelist Jeanne Silver (CARSTAR Mundelein) shared her belief that there is a place in this industry for certified aftermarket parts as a financial alternative for customers, she also shared her experience dealing with insurers who insist on non-certified parts.

“We use CAPA-certified parts in our shop. More and more, we’re seeing insurance estimates come to us with non-certified parts specified for use in our repairs. For us, it’s kind of an exercise in futility to order a part, take a picture of it and send it back. If it’s not certified, it’s not going to work 90 percent of the time.”

What is the consumer’s place in these issues? If the debate over notification and consent was any indication, the industry has a long road ahead before being able to definitively answer that question.

Illinois shop owner Jeanne Silver: Not all aftermarket parts are created equal.

LKQ’s Terry Fortner: OEMs create a monopoly.

CCC’s Mark Fincher: Shop data has multiple owners.

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“I don’t understand why the insurers aren’t the ones carrying the warranty. It seems only fair to the consumer…I don’t see why we don’t have a bill in every state requiring informed consent.”

- Wayne Weikle, Alliance of Automobile Manufacturers

Addressing the panel from the crowd, SCRS Executive Director Aaron Schulenburg opined that the rise of legislative pushback on proconsent laws governing aftermarket parts is a potentially dangerous path for the industry to travel.

“If you really believe that these parts are appropriate…the fact that some pursue repeal of the ability for the consumer to say, ‘Yes, I want that on my vehicle’ sends a mixed message – especially if you look at the variation of parts that are available in the marketplace. There may be a consumer for every different type of part in different types of situations. Why not safeguard consumers’ ability to choose that on their vehicle? There’s a huge difference between disclosure and consent.”

Terry Fortner, vice president of corporate accounts at LKQ Corporation, countered Schulenburg’s position.

“Some of the vehicles have 15-year warranties [on their OEM parts]…We believe

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that creates a monopoly…We’ve talked to a lot of consumers; they are absolutely comfortable with disclosure as opposed to the written consent.”

“Why do you need to consent to something that is the same?” added Gillis. “You really shouldn’t…When you have to sign for something, there’s an inherent bias built into that signature.”

Wayne Weikle, senior director of state government affairs with the Alliance of Automobile Manufacturers (a group representing 12 of the world’s car manufacturers), suggested that the ultimate responsibility for the parts used on a vehicle should be placed on those who insist on them being used.

“If it’s the insurer [that requires] that aftermarket part to be on there, putting an obligation on the consumers to keep track of which part was used in their repair a couple of years before is ludicrous. You have to keep a stack of paper [and] understand what those

abbreviations are… I don’t understand why the insurers aren’t the ones carrying the warranty.

It seems only fair to the consumer…I don’t see why we don’t have a bill in every state requiring informed consent.”

The aftermarket parts controversy is just one of several obstacles that often stand in the way of successful shop-insurer relationships.

One of the biggest roadblocks – getting insurers to pay shops to perform OEMdocumented repair procedures – was tackled during the “Differences of Opinion and Recommendations” panel hosted by the CIC Insurer-Repairer Relations Committee. Right off the bat, State Farm representative Chris Evans made it known that he views OEM position statements as a legitimate and important element of the repair process.

“What [car manufacturers] say matters, and what we do matters,” he observed. “When they put a position statement out, it’s important that it be considered; if they put a technical repair procedure out, it’s important that it be considered.”

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Despite his apparent willingness to embrace what the OEMs have to say, Evans was quick to add that the areas surrounding individual automakers and their specific operations remain grey at best – at least from his company’s perspective.

“We recognize that there is a difference between [OEM position statements]. When it comes to position statements, we consider them largely on a case-by-case basis. We consider a lot of factors; we consider what those words on paper mean. When it comes to technical repair procedures, the hope is that the car company put as much thought, vigor and specificity into [it] that they put into building the car. That’s more vigor, discipline, work and effort than a position statement.”

Who Owns What?

The latest installment of CIC concluded with an extensive exploration of CCC’s new Secure Share platform. As previously covered in Hammer & Dolly (“Shop Information for Sale? CCC’s Advancements in Data Transfer Charges,” June 2017), Secure Share has led to widespread concerns from the repair community over data access and ownership.

After missing the previous two meetings (and thus being unavailable to directly address industry inquiries on the matter), CCC attended the Chicago meeting via CCC Vice President of Marketing Solutions Mark Fincher, who offered a presentation on the platform and its aims for the industry.

“This is a significant investment that we’ve made and a new platform to help enable repairers to exchange their information more securely with the trade partners that they do business with,” he said. “Repairers don’t have the ability to control what information they want to exchange with their trading partners today.

[Secure Share] gives the repair facility the ability to send just the relevant information to the applications they’re going to be sharing that information with.”

CIC Open Systems, Data Access and Sharing Task Force Co-Chair Dan Risley (ASA) revealed that he and other Task Force members learned more about the system at a recent meeting with CCC at the company’s corporate headquarters. For example, with CCC ONE, shops will still have the ability to export their data to an Excel spreadsheet format. Audatex and Mitchell estimates are not impacted at this time.

“Today, [Audatex and Mitchell] use the EMS standard,” Risley explained. “If you’re a collision repair shop and you have all three estimating platforms and you’re trying to export data, the only time you’re going to have a transaction fee is [with] anything that’s of natural origin from CCC ONE. If it’s a Mitchell or Audatex estimate…those will continue to flow in the system and flow out, and there’s no transaction fee. Nothing will be interrupted.”

In addition to providing Fincher’s direct commentary and participation, CCC gave the CIC body written responses to a number of questions submitted by the Task Force. One critical question attempted to address exactly who has access to the data generated during the Secure Share experience. The text of this exchange appears below: Q-25: In several responses to the first set of questions asked by the Task Force, CCC criticizes the use of “data pumps” and, for all practical purposes, conveys the idea that they are dangerous or evil. For example, in responding to the first question of that questionnaire, CCC responded, “This is a fundamental security component and avoids

‘data pumps’ that have historically concerned our customers.” And in response to question five, they said “…data pumps are not secure and are not permitted under Secure Share.”

Throughout the Secure Share agreements, third-party companies, other than CCC, are prohibited from being a “data pump” for a shop.

Is CCC the only company in the collision industry that can be trusted to be a “data pump” for body shops, and are body shops not capable of making their own decision as to who they would trust to provide them the same level of security for their data as CCC claims they will provide?

CCC Response: Multiple parties within the collision repair ecosystem claim ownership of estimating data including, but not limited to repair facilities, insurers, vehicle manufacturers and others from which we source data. CCC Secure Share was designed based on feedback from the industry to implement the CIECA BMS message and secure the data for those that claim ownership of the data.

Continuing to support the CIECA EMS file will perpetuate the lack of data security that exists in the industry today.

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COVER STORY

All app providers using CCC Secure Share will employ the same level of security as CCC to transmit information securely over the Internet.

Interestingly, the exact “others from which we source data” were not directly identified at any point in the CIC discussion.

“There’s a lot of people who claim ownership of the data; I will tell you that CCC does not,” Fincher said.

Page 1

WMABA Members Respond Not surprisingly, the events at CIC quickly inspired thoughts from the WMABA community. WMABA Board member William Hawkins found Chris Evans’ comments regarding OEM position statements to be curious at best.

“It seems that he is simultaneously saying that State Farm views OEM opinions as relevant, while also saying that ‘position statements’ are not serious enough for State Farm to take seriously.”

WMABA President Mark Schaech had plenty to say about the statements offered by CAPA’s Jack Gillis from the CIC stage.

“Part of what we do in Annapolis is try to get bills passed that outlaw aftermarket parts for the first three years under the warranty period. Jack Gillis said at CIC that consent is adequate when the parts are the same, but that’s not what shops are seeing. They’re not seeing aftermarket parts being equivalent to the OEM manufacturer parts; that’s just not the reality.

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September 2017

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Executive Director’s Thoughts I hear the same complaints over and over again from many of our members over high return rates and poor fit. From what I can gather, consumers are not being educated on what the differences are in the parts. There’s some paragraph on the back of the estimate that gives disclosure, and that’s all that’s required by law. But consumers aren’t reading it; they’re probably reading it as frequently as they’re reading their entire insurance policies.

“In my experience, I’ve had as many issues with CAPA-certified parts as I had with non-CAPA-certified parts,” he adds. “There may have been a slight improvement in the quality of the parts; they’re a little bit better, but they still weren’t even close to equivalent to the factory parts.”

Schaech says he does what he can at his facility (Mark’s Body Shop; Baltimore, MD) to inform customers of the potential issues that could surface if non-OEM parts are used on their vehicles.

“I don’t buy a whole lot of aftermarket parts, because our customers are told that we recommend the OEM parts, and we tell them about our experiences with aftermarket parts. If the insurer doesn’t pay for the OEM parts, I’d say our customers pay the difference 95 percent of the time.”

When customers still insist on using aftermarket parts, Schaech has them sign a Hold Harmless Agreement.

“We’re restating that it’s against our professional opinion and against the manufacturer’s opinion, and we’re stating to the customer that they’ve chosen to go with the insurer’s opinion. But if that customer is not happy with the fit or the quality of that part, they – or their insurer – are going to have to pay to re-do the job.’”

Former WMABA President Don Beaver echoes Schaech’s sentiments.

“Do aftermarket parts have a place in our market? To a degree, yes. On new cars and across the board? No, they do not. If we don’t create some sort of legislation or get some sort of consensus out to the general public, it’s never going to change. Insurance companies are not making people whole by putting these parts on consumers’ cars. There is a difference between OEM and aftermarket parts, and there is a difference in cost because of it.”

Asked for his thoughts on CCC’s Secure

Share, Beaver offered an outlook shared by many collision repairers at the present time.

“The shops are the ones who should own vehicle-specific information. We should be able to share that information with who we deem trustworthy. That’s a decision that we should make – not one that is made by the Information Providers we are paying for their services.” H&D

I’d like to address the issue of consumer consent. A consenting customer is an educated customer. The message the shop gives upon being questioned makes all the difference, but at minimum they’ve had the chance to ask. No customer reads the back of page five of the fine print talking about alternative parts. WMABA fully supports consumer consent, education and transparency. Cloak and dagger tactics no longer have – and never have had – a place in this industry that is already confusing enough for consumers. - Jordan Hendler

September 2017

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Mark Schaech, Jr.

(410) 358-5155 mark@marksbodyshop.com

PRESIDENT’S

MESSAGE WE ARE WINNING ...AND LEARNING

I say this with all sincerity – this is the best time to work in the collision repair industry.

When I first started in this field, it wasn’t always easy to navigate through all the equipment and training you needed to do the job correctly. To be honest, some of us didn’t even know where to begin. But in 2017, getting our hands on everything from OEM procedures to training on aluminum repair is as easy as hitting a key on our keyboards.

Having a problem getting an insurer to approve – and pay for – a particular repair? No problem – go to oem1stop.com and show them the OEM position statement on the matter. Having a labor time issue with an IP? That’s an easy fix: Submit an inquiry to the DEG at degweb.org and have the administrator reach out to that company on your behalf and get an answer. Want to know which I-CAR classes are hitting your area? Another quick solution: Go to i-car.com and see what is being offered within driving distance from your shop (and even online).

In addition to these great things, we have Hammer & Dolly, which keeps us informed on what’s going on across the country.

We have WMABA; all of us on the Board are always a phone call

or email away. We have our great Executive Director Jordan Hendler, who is an exceptional resource on things happening here and everywhere else in the US auto industry. These are all tremendous advantages that we have at our disposal to strengthen our businesses.

I know this industry is tough. I understand your frustrations, but I also look at every day in my shop with great excitement. It might not always seem like it, but shops everywhere are getting stronger – and knowledge is the key. H&D

WE NEED YOUR LEGISLATIVE CONTRIBUTION! I appreciate WMABA working on my behalf at the state capitol(s)!

Here is my contribution to the legislative efforts.

P.O. Box 3157 • Mechanicsville, VA 23116

Name: ______________________________________Company: __________________________________ Address: __________________________________________________________________________________ City:____________________________________________State: ______________________Zip: ________ Phone:

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$100

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September 2017

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For Genuine Subaru Body Parts, contact these Authorized Subaru Dealers.

Wilkins Subaru 6913 Ritchie Hwy #2, Glen Burnie, MD 21061 410-689-8066 Fax: 410-689-8008 subparts@wilkinsautomotive.com www.wilkinssubaru.com

Fitzgerald Lakeforest Subaru 905 North Frederick Ave., Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595

September 2017

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September 2017

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ADVERTISERS’ INDEX

American Honda Motor Co. ..........IBC Audi Group....................................9

Axalta Coating Systems................IFC

BMW Group ..................................24-25 BMW of Fairfax ............................3

CAPA ............................................8

Chesapeake Automotive Equipment 46 Crashmax Equipment ..................35 Empire Auto Parts ........................46 Estify Transfer ..............................35 Fairfax Hyundai ............................40 Ford Group ..................................18 Future Cure ..................................41 GM Parts Group............................7

Honda Group ................................20 Hyundai Group..............................11

Koons Ford ..................................45 Malloy Hyundai ............................30 Mazda Group ................................34 MINI Group ..................................36 Mitsubishi Group ..........................43 Mopar Group ..................................45

Nissan Group................................40

Nucar ............................................19 O’Donnell Honda ..........................6

Packer Norris Parts ......................15 Polyvance ....................................4

Porsche Group..............................26

PPG ..............................................OBC Reliable Automotive Equipment....23

Subaru Group ..............................43 Toyota Group ................................29 VW Group ....................................31

Wheel Collision Center ................39

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September 2017

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