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WMABA Plots Collision P.R.E.P. 2020
October 2019 Volume 13, No. 10 $5.95
www.grecopublishing.com
Mike Anderson in Australia
Consumers to Hit CIC
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CONTENTS October 2019
26 COVER STORY
BY JOEL GAUSTEN
FIXING A BROKEN SYSTEM: THE 1963 CONSENT DECREE AND NATIONAL NEWS ALWAYS MATTER
A critical document faces a possible end.
LOCAL NEWS 14
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“MARK” YOUR CALENDAR! WMABA WEST VIRGINIA WORKSHOP: “SHOP PROCESSES, CULTURE AND QUALITY CONTROL WHILE REDUCING LIABILITY” WMABA to explore quality, efficiencies and more.
NATIONAL NEWS 18
DEPARTMENTS
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RDE, CIC AND MORE: SEMA 2019 READIES FOR LIFTOFF SCRS’ flagship event gets stronger.
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SEEBACHANS, PLAINTIFFS OF JOHN EAGLE CASE, SPEAK AT CIC 12
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WMABA’S COLLISION P.R.E.P. TO RETURN TO NORTHEAST® The association partners with AASP/NJ for more education.
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32 INDUSTRY ADVICE: ASK MIKE WHAT DID YOU LEARN FROM THE AUSTRALIAN COLLISION INDUSTRY?
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Editor’s Message JOEL GAUSTEN
Executive Director’s Message JORDAN HENDLER What’s WMABA Up To WMABA Sponsorship Page
WMABA Membership Application Member Spotlight: South Riding Auto Collision
Calendar of Events Advertisers’ Index
Stock Images © www.istockphoto.com
Thoughts from a world traveler.
October 2019
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THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 Fax:410-349-2586 mybmwofannapolis.com
Passport BMW 5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 passportbmw.com
BMW of Alexandria 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 bmwofalexandria.com
BMW of Owings Mills 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 www.bmwofowingsmills.com
BMW of Silver Spring 3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Direct: 301-890-3015 Fax: 301-890-3748 bmwofsilverspring.com
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Richmond BMW 8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 E-mail: tdailey@crownauto.com richmond-bmw.com BMW of Catonsville 6700 Baltimore National Pike Baltimore, MD 21228 855-996-2906 410-744-2000 Fax: 410-818-2600 bmwofcatonsville.com
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SIMPLY BRILLIANT
OUR BEST BASECOAT EVER #SWrefinishsolutions sherwin-automotive.com/ultra9k
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Joel Gausten
EDITOR’S
(973) 600-9288 joel@grecopublishing.com
MESSAGE CONSENT AND CONSEQUENCES For several weeks now, I’ve been following the moving target that is the Department of Justice’s proposed plan to terminate the 1963 Consent Decree. If you’re unfamiliar with the document, you’re not alone. Although the Decree has been on the books for decades, it has been largely swept under the rug with no real enforcement. In this month’s cover story, you’ll read about the reasons behind the Consent Decree, why it has a valid and necessary place in the collision repair industry and the growing call to keep it in existence. Although the Consent Decree has been one of the industry’s best kept secrets, certain factions within the national auto body community have been actively promoting it for years. In fact, one of the very first articles I ever edited way back in 2000 was on its past and hopeful future. I urge everyone reading this message to become better informed on the Consent Decree and assist WMABA and other industry entities in fighting to convince the Department of Justice of its importance. In an ever-challenging profession, this document could prove to be the lifeline that keeps repairers moving forward for years to come. Elsewhere in this issue, we provide another update on this year’s SEMA Show. One of the biggest things that will hit the Las Vegas Convention Center next month is the appearance of Matthew and Marcia Seebachan on the Collision Industry Conference (CIC) stage. They were the young couple who won the
WMABA OFFICERS PRESIDENT
VICE PRESIDENT
TREASURER SECRETARY
IMMEDIATE PAST PRESIDENT
Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Bill Hawkins hawkinswilliamjr@gmail.com 510-915-2283 Barbara Chase barbara@siskautobody.com 301-855-5525 Phil Rice phil@ricewoods.com 540-846-6617 Mark Schaech, Jr. markschaech@gmail.com 410-358-5155
BOARD OF DIRECTORS
Don Beaver (donbeaver3551@gmail.com) 443-235-6668 Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928
Ben Gibson (bgibson@richmondmarinecenter.com) 804-355-8151 Steven Krieps (srkrieps@live.com) 304-755-1146 Danny Szarka (danny@dynamiccollisionservices.com) 410-500-9200
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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history-making multimillion-dollar lawsuit against John Eagle Collision Center in Dallas, TX for improper repairs to their Honda Fit. Unfortunately, all the money in the world wouldn’t relieve the Seebachans of the permanent and catastrophic injuries they sustained as a result of their poorly repaired vehicle being involved in a subsequent collision. Our pages are always full of discussions on the importance of OEM-required/recommended repair procedures. At the next CIC, you will see and hear exactly why these things matter. The Seebachans are living proof of what can go wrong when a shop fails to perform a safe and proper repair. You owe it to yourself – and your industry – to travel to Las Vegas for the discussion or read our subsequent coverage in our December issue. Either way, it will likely be the most critical time you could ever devote to your shop and livelihood. H&D
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
Alana Bonillo alana@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 © 2019 Thomas Greco Publishing, Inc.
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October 2019
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EXECUTIVE DIRECTOR’S
MESSAGE GIVE UP THE EXCUSES AND GET DOWN AT SEMA WEEK
I know you all associate Vegas with Party Central, but I’m here to tell you that’s…well, all true. Okay, it’s a party town; I will give you that. That said, Vegas also hosts the premier offering of education and business advancement our industry has – bar none. We think WMABA’s Collision Professional Repairer Education Program (Collision P.R.E.P.) and the NORTHEAST® Automotive Services Show in New Jersey are the best regional options you’ll find, and I’m not downing anything anyone does. SEMA is just where all the national events take place, and you shouldn’t put the opportunity aside. Those who go to Vegas to party will find it, without question, but those who want to further their business and expertise will find an
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
even bigger celebration. SEMA week has SCRS’ Repairer Driven Education (RDE) series, the Collision Industry Conference (CIC), numerous association meetings and SCRS’ RDE Afterparty. (See, even a real party!) You really owe it to yourself to make it a priority, make the effort and get there. Even if you just want to make new relationship connections with vendors, insurers, repairer colleagues, association leaders or others, you’d have them all in a captive location. There’s just no reason to miss it. It’s all over this issue and in industry news, and I’m sure it’s in your inbox as well. But if you need help navigating the waters of all the education and meetings going on the first week of November, please reach out to me! I’d be happy to help you plan a schedule that works for you and your team. H&D
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.
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.
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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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WMABA THANKS
YOU WMABA thanks their generous supporters of the
LEVEL 1
Corporate Sponsor Program for 2019!
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
LEVEL 2 BAPS Auto Paints & Supply • Certified Automotive Parts Association
www.wmaba.com
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FinishMaster • Single Source National Coatings and Supplies • WheelsOnsite
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October 2019
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When service and experience collide.
MEMBER
SPOTLIGHT
BY ALANA BONILLO
SOUTH RIDING AUTO COLLISION Sadiq Hafiz, owner of South Riding Auto Collision in Chantilly, VA, settles for nothing but the best for his customers. Providing highquality repairs sets the foundation for this business and has been the key to its success since he opened his doors in 2011. He also believes that working for the consumer and the community are among the key attributes that makes the shop stand out among the rest. “We strive to provide the best customer service and quality repairs.” Before venturing into business for himself, Hafiz co-owned a shop in New York with his uncles. Due to the city rezoning the area where their shop was located, they received an offer to relocate the business or take a payout. A native of Fairfax, Hafiz had always believed he would return to his home area someday. He decided to take the payout, move back to Virginia and open his own shop. In just eight years, the facility has tripled in size, growing from 4,000 square feet when he first opened to 12,000 square feet and a crew of eight employees. The shop is OEM-certified for Ford, Nissan, Kia, Infiniti, Hyundai, GM and FCA. Hafiz is currently working to secure additional certifications, including Subaru, Mercedes, Audi and Porsche. When it comes to staying on top of the training and tools required by the manufacturers in order to perform proper repairs, Hafiz says, “We are constantly training. Especially over the past three years, we’ve had to retool and make sure that every tool we have acquired meets the broad range of certifications that each OEM manufacturer requires.” Having been in the business since 2001, Hafiz has seen a lot of changes over the years – the biggest being technology with the growth of advanced driver assistance systems (ADAS) and telematics that connect vehicles to the internet. “I feel that we’re starting to see the OEMs take control of the repair process and how and October 2019 12
South Auto Riding Collision of Chantilly, VA
South Riding Auto Collision's technicians (from left to right) Maynor Galan, Shaker Sindi, J.R. Barker and Jose Serano
where vehicles are repaired – that is something we’re investing a lot in to keep up with the training and equipment.” A commitment to eco-friendly processes is another unique feature of South Riding Auto Collision. “We utilize waterborne paint that is environmentally friendly, and we pretty much recycle just about everything we can to leave behind the [smallest] carbon footprint possible.” Recognizing the work of WMABA and and all the association does to help the industry, South Riding Auto Collision recently became part of its membership.
“[It’s important to] have a voice in the industry. WMABA is heavily involved with legislation, and we wanted to be part of that and the auto body community at the ownership level.” Hafiz is pleased to be in an ever-changing industry, as it inspires him to keep going. “I like the challenges [and] the technical changes that occur in our industry. It is what keeps you on your toes, and I like that. We strive to stay ahead and reinvest [in the business], and I believe that is what separates one from their competitors. That is the drive here at this shop.” H&D
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JOIN ! TODAY
Get it right from the source.
Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs. When you need fascias, grilles, headlamps, wheels or any other Ford Motor Company Genuine Part, call your local wholesaling dealership. They’re a great souce for technical and repair information as well. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership.
Contact us for all your parts needs: WALDORF FORD 2440 CRAIN HWY WALDORF, MD 20601 Phone: 301-843-3028 Fax: 301-843-0334 e-mail: parts@waldorfford.com waldorfford.com
JERRY'S FORD ALEXANDRIA 6510 LITTLE RIVER TURNPIKE ALEXANDRIA, VA 22312 Phone: 703-256-0638 Fax: 703-354-4834 e-mail: parts@jerrysford.com jerrysford.com
© 2018, Ford Motor Company
October 2019
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Can't-miss education in West Virginia.
LOCAL
NEWS “Mark” Your Calendar! WMABA West Virginia Workshop: “Shop Processes, Culture and Quality Control While Reducing Liability”
Presented by Mark Olson, Vehicle Collision Experts **as seen in Repairer Driven News and on Collision Hub
Mark Olson of Vehicle Collision Experts will go through his “10 steps for quality and efficiencies” as well as walk through a self-assessment. Giving insight to liability, he will show you a Bulletproof File. He will also discuss how to improve processes and culture and the importance of OEM procedures.
To register, go to tinyurl.com/y5pbmbha.
CALENDAR OF
Thursday, October 10 Cabela’s
200 Cross Terrace Blvd. Charleston, WV 25309
3pm-6pm: WMABA Brings Mark Olson to Explore Quality Education
Industry training opportunities and don't-miss events.
EVENTS CLASS LISTINGS
October 10, 2019 UNDERSTANDING THE CYCLE TIME PROCESS Alexandria Training Center, Alexandria, VA
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6pm-7pm: Dinner with Open Discussion
www.i-car.com or (800) 422-7872 for info
November 21, 2019 UNDERSTANDING THE CYCLE TIME PROCESS Alexandria Training Center, Alexandria, VA
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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
RADLEY CHEVROLET 3670 Jefferson Davis Highway Fredericksburg, VA 22408 Phone: 800-355-8202 Direct: 540-898-0055 Fax: 540-891-2074 www.radleychevrolet.com
OURISMAN CHEVROLET OF ROCKVILLE 807 Rockville Pike Rockville, MD 20852 Toll Free: 800-345-4640 Direct: 301-424-5332 Fax: 301-294-6381 www.rockvillechevrolet.com
JERRY’S CHEVROLET 1940 E. Joppa Road Baltimore, MD 21234 Toll Free: 844-817-9405 Local: 443-219-3339 Fax: 443-403-0803 chevyparts@jerryschevrolet.com www.jerryschevrolet.com
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WHY GENUINE PARTS? It’s the Right Thing to Do
You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Antwerpen Toyota 12420 Auto Drive Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com
Jerry’s Toyota 8001 Belair Road Baltimore, MD 21236 Phone: 410-661-4610 Fax: 443-455-1453 toyotaparts@jerrystoyota.com driley@jerrystoyota.com
Younger Toyota 1935 Dual Highway Hagerstown, MD 21740 Phone: 800-296-1190 Fax: 301-733-5465 dthompson@youngertoyota.com
Koons Toyota Annapolis 1107 West Street Annapolis,MD 21401 Phone:(800)262-3330 Fax:(410)280-6361 roy.easter@koons.com
ToyotaPartsAndService.com October 2019
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NATIONAL
NEWS RDE, CIC AND MORE: SEMA 2019 READIES FOR LIFTOFF In just a few weeks, tens of thousands of collision repairers from all over the country will fill the aisles of the Las Vegas Convention Center for the 2019 SEMA Show. This year marks the 10th anniversary of the Society of Collision Repair Specialists’ (SCRS) Repairer Driven Education (RDE) series at the Show. Over the past decade, the series (scheduled this year for November 4-8) has offered nothing less than the most exclusive, high-quality programs given by celebrated names in the industry. This year’s RDE slate will certainly be no different. Kicking things off will be the keynote presentation, “Advanced Business Communications – The A-B-Cs of Building Trust,” which
“Where Quality and Customer Service Collide”
SEEKING TALENTED INDIVIDUALS Tysons Corner Collision Center is searching for qualified individuals to join our team, in multiple areas! Positions available include: • Body tech • Aluminum tech • Estimator
The ideal candidate will possess the following qualities: • Commitment to ongoing education • Good attitude and a team player • Attention to detail and high quality repairs
If this sounds like you and you’d like to work with the best techs out there, please contact General Manager Tim Pfeifle for information!
703-564-6101 TPfeifle@penskeautomotive.com 18
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will occur in a special timeslot: November 4 from 1pm to 3pm. Paul Webb and Elle Artison of WebbVT will introduce attendees to a way of communicating that is all about building trust and teaching people how to buy as opposed to selling people things. The workshop is ideal for anyone who walks the halls at this year’s SEMA event, including shop owners, vendors and fellow presenters. All will learn how to increase revenue and lower their outside expenses. “Our talk on communication is going to address how to work better with building trust with your staff; in doing so, you will lower your overhead,” explains Webb. “The second key ingredient is matching co-worker strengths with job responsibilities to reduce employee turnover, which also reduces overhead.” “Paul and I want to express the importance of communicating effectively,” suggests Artison. “Number one, the people working in these shops are millennials, and there needs to be connection between the millennials and baby boomer owners. I believe our talk will give them the tools to communicate with their customers [and] internally communicate as well.” Those looking to seriously grow their business can’t afford to miss “Crushing It,” presented by Ryan Taylor of Body Shop Booster on November 5. “Attendees will walk away from this discussion with simple but powerful strategies, which they can implement as soon as they return to their shops and see instant results to really help them CRUSH IT,” offers Taylor. Before entering Taylor’s seminar room, attendees should have a good grasp of their market size, market draw and their estimate capture ratio, as they will be taught how to leverage these things via aggressive growth strategies that will help them instantly boost sales. COLLISION INDUSTRY CONFERENCE The Seebachans Speak When not in the RDE classrooms on November 5, collision professionals should make attending the Collision Industry Conference (CIC) at the Renaissance Hotel an absolute priority.
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Vital events in Vegas.
With education and training being of the utmost importance to making the industry better by way of improving the repair process and protecting consumer’s lives, CIC has an agenda in store that is designed to educate the collision repairer in all areas of vital importance. Perhaps the most notable moment of the day will be when Matthew and Marcia Seebachan, the plaintiffs in the multimillion-dollar John Eagle Collision case, take the CIC stage to tell their personal story of how their lives were turned upside down as a result of an improper repair. “They experienced what we always feared would happen at some point,” comments CIC Chairman Jeff Peevy. “The industry will now hear their personal story. We’ve heard from the attorney [Todd Tracy] and we’ve read about the case, but what hasn’t been fully disclosed is hearing from Marcia and Matthew [about] their story and how this has impacted them. [Sitting and listening to their perspective] of before and after the accident and how it’s impacted their lives makes this very human.” Attendees will also hear updates and discoveries compiled so far by the CIC Talent Pool Committee, which was launched earlier this year to tackle the serious recruitment problem felt by shop owners throughout the country. Before taking the helm of CIC late last year, Peevy sat down with hundreds of shop owners and found that although the circumstances varied, there was a shared need for attracting new talent. This led to the Committee’s formation. To sign up for the November 5 CIC meeting, visit ciclink.com. To learn more about SCRS’ RDE series and register for courses, visit semashow.com/scrs. H&D
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Executive Director’s Thoughts I know I’m a broken record, but as always, this is a huge value for the amount of information and relationshipbuilding you can get in one place. Make it your mission to get there! Those not getting to these types of events are behind the curve in the industry for technology, training and more. It’s so important for a successful business! - Jordan Hendler
12420 Auto Drive, Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com
October 2019
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“The Right Way”
INDUSTRY
UPDATE RELIABLE AUTOMOTIVE EQUIPMENT’S
NEXT BIG THING Reliable Automotive Equipment, an industry leading OE Certified company, has always been a large proponent of doing things “The Right Way,” and has demonstrated superior customer service for over 30 years while tailoring its equipment solutions to the ever-changing automotive market. Whenever people think of RAE, their first question is always, “What’s their next big thing?” Well, here it is. The Weiländer and Schill MEC600 is the newest all-in-one tool for the application and cutting of a car’s outer body panels, whether it
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Weiländer and Schill MEC600
be steel or aluminum. An incredibly versatile piece of equipment, the MEC600 is perfect for the cutting of doors, quarter panels, roofs, and more. Now you’re probably asking yourself, “What makes this tool different?” The truth is that this incredible tool is not only designed to effortlessly open welding seams, but it also has an adjustable guide to prevent the cutter from slipping off and damaging your car. What really makes the MEC600 stand out, however, is the fact that there is no heat treatment of the car required whatsoever. This new cutter is a winner of the Federal Innovation Award and promises to be a game changer in the years to come.
Outstanding product performance, unsurpassed product quality and most of all, the human touch are only a few amazing qualities the Reliable Automotive Equipment team have to offer.
Stop by Reliable Automotive Equipment’s SEMA booth this November to check out the MEC600 in action.
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www.raeservice.com October 2019
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NATIONAL
NEWS
OFESSION PR EPAIRER AL R
ED
U C AT I O N PROGRA M
WMABA’s Collision P.R.E.P. to Return to As a regional association with strong national ties, WMABA is committed to bringing the news, information and insight it gains across the nation directly to its membership back home. One major way the association has achieved this for the past two years has been through its partnership with the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) in presenting the Collision Professional Educational Program (Collision P.R.E.P.) at the NORTHEAST® Automotive Services Show. WMABA is pleased to announce that it will again present Collision P.R.E.P. at next year’s NORTHEAST, scheduled for March 20-22 at the Meadowlands Exposition Center in Secaucus, NJ. “Every year, WMABA aims to bring the most relevant and timely education available to the NORTHEAST show for all participants coming from near and far,” comments WMABA Executive Director Jordan Hendler. “We want to cover a variety of subjects that pertain to each key employee type in the repair shop – from front office to technician to owner. Not only is NORTHEAST the premier education event for the entire East Coast as far as learning a lot in a short time, but it is also a great place to make new industry acquaintances who can strengthen your peer group. It’s important to revitalize your mind with the latest in technologies, processes and how to maintain that culture throughout the year.” Past highlights of Collision P.R.E.P. include the national debut of Mike Anderson’s (Collision Advice) course on scanning, an extensive OEM Panel, General Motors’ first public presentation on its national shop certification program and an unforgettable talk by
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New training up north.
WMABA Accepting Proposals for Collision P.R.E.P. Speakers
WMABA is currently accepting proposals for Collision P.R.E.P. speakers for NORTHEAST 2020. The association seeks leaders in their fields and experts in particular knowledge areas who can give particular insight into various subjects of interest and value to the collision repair community. “Whether these presenters are technical or philosophical, we are looking for individuals who will leave a lasting and meaningful mark on those who attend,” says WMABA Executive Director Jordan Hendler. Proposals are due by November 22. To submit, please contact Hendler at (804) 789-9649 or jordanhendler@wmaba.com.
Texas-based attorney Todd Tracy. With the industry in a state of constant change, Hendler sees NORTHEAST as a chance for repairers, owners and other stakeholders to stay ahead of trends before they directly impact their business lives. “A lot of previous years’ Collision P.R.E.P. attendees have raved about classes on processes and repair procedures as well as the OEM Panel for understanding the current and future dynamics in the world of certified repair. We want to keep that and expand into some more current areas, such as key new equipment, in-house scanning, educating consumers and more.” In addition to providing national-level speakers and educational opportunities to WMABA members within driving distance, Hendler is thrilled to again collaborate with AASP/NJ in making Collision P.R.E.P. possible. “We are better together in this endeavor. Teaming up is of greater value to both associations and the industry we are trying to serve well. It’s a great partnership for which we are very grateful.” “AASP/NJ is excited to have WMABA involved for another NORTHEAST show,” comments AASP/NJ President Jerry McNee. “The past Collision P.R.E.P. seminars were excellent, and we expect the same caliber of industry discussions in 2020. The program will add to what is already the best training, networking and information available from a regional show anywhere in the country.” For more information on the NORTHEAST Automotive Services Show, please visit aaspnjnortheast.com. More information on WMABA is available at wmaba.com. H&D
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October 2019
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October 2019
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The DOJ has concerning plans.
COVER
BY JOEL GAUSTEN
STORY
FIXING A BROKEN SYSTEM: The 1963 Consent Decree and National News Always Matter If you haven’t been following national industry issues lately, now is the time to get serious about doing so. From insurers’ unsatisfactory responses to the need to compensate shops for pre-and postrepair scanning to data protection and securing a future workforce, the auto body world is changing even faster than vehicles are arriving at your facilities. There are things happening every day that will drastically alter how you do business down the road. One recent – and quite distressing – matter that requires your attention is the Department of Justice’s (DOJ) current review of the 1963 Consent Decree for possible termination. As of this writing, the DOJ had placed an October 2 deadline for public comment of its proposal. WMABA is one of several industry entities that have already submitted correspondence in support of keeping the Decree in place.
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“There’s been chatter about the Decree since way before my time about how it should be upheld and enforceable against today’s marketplace tactics,” says WMABA Executive Director Jordan Hendler. “It’s like asking for a law already on the books to simply be applied. If it’s not there, then I’m sure there’s validity to the belief that enforcement of it is now not only impossible but also much harder to regain what’s lost. I see why it’s important to cry out for the implementation of its intent, even if it had to be in another way. This is not an ‘anti-insurance’ outcry; it’s an effort to keep boundaries for bad behavior.” The 1963 Consent Decree forbade three insurance trade associations and their members (more than 250 at the time) from engaging in several practices, including setting prices and steering automotive repair work away from certain auto body facilities.
The insurers and co-conspirators involved in the Decree were permanently barred from (among other things) placing into effect any plan, program or practice that has the purpose or effect of: (1) sponsoring, endorsing or otherwise recommending any appraiser of damage to automotive vehicles; (2) directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with (a) any appraiser of damage to automotive vehicles with respect to the appraisal of such damage, or (b) any independent or dealer franchised automotive repair shop with respect to the repair of damage to automotive vehicles; (3) exercising any control over the activities of any appraiser of damage to automotive vehicles; (4) allocating or dividing customers, territories, markets or business among any appraisers of damage to automotive vehicles; or (5) fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage to automotive vehicles, or to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or otherwise.
Although the Consent Decree clearly draws critical lines in the sand for insurers, true enforcement of the documents has remained largely elusive. At a time when the friction points addressed in the document threaten the very future of the collision industry, it remains
continued on page 29
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Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138
Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841
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Karen Radley Volkswagen 14700 Jefferson Davis Hwy. Woodbridge, VA 22191 703-550-0205 Fax: 703-643-0081
King Volkswagen 979 North Frederick Ave. Gaithersburg, MD 20879 Parts Direct: 240-403-2300 Fax:240-403-2398 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
Ourisman Volkswagen of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Toll Free: 855-417-4511 Fax: 240-499-2488
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Ourisman Volkswagen of Bethesda 5415 Butler Road Bethesda,MD 20816 301-652-2452 Fax: 301-652-2589 e-mail: vwwholesale@ourisman.co
October 2019
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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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October 2019
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COVER STORY continued from page 26
little more than a minor papercut on Goliath’s hand. “The DOJ deals with a lot of things, and it has not been compelled to give focus to this,” Hendler observes. “Some conspiracy theorists believe that because the insurance companies bailed out the government in the Depression era, they somehow received a free pass all this time and that the Decree was a little wrist slap to tame their behavior. Insurance is a part of big business in America, and many administrations don’t want to rock those boats. They are also hugely effective at lobbying and, let’s face it, the collision repairers have none by comparison.” Despite this rocky history, the Consent Decree is now in a new spotlight thanks to the DOJ’s stated intentions. If allowed to remain, the Decree could finally receive the attention and application that it should have been getting all along. If it is terminated, an important piece of history and one of the repair community’s greatest potential defenses will be lost. Few people have followed the Consent Decree story more than veteran shop owner and current industry consultant Tony Lombardozzi. As a member of the Coalition for Collision Repair
Excellence (CCRE) and other consumer-focused industry groups, the New Hampshire-based industry leader has spent decades defending the Decree and publicly identifying issues with how insurers conduct themselves during the repair process. Not surprisingly, he maintains his belief that the Decree must survive. “By no means is the 1963 Consent Decree outdated. If anything, the insurers’ influence and interference is stronger today than it ever has been in the past. That is very detrimental to consumers. It ranges from insurers forcing repair shops to use non-OEM-specified parts to not reimbursing them for the complete repair and using the Direct Repair Program system to keep the costs of repairs down. But most important, it forces the use of the data provider systems that are used to control the price for parts and services across the country.” While shop/insurer relations were already frayed long before the Consent Decree was even signed, Hendler stressed that the industry’s push for the document’s continued existence is not a further example of “us against them.” In her mind, it is about ensuring that a truly level playing field exists between both sides.
“Most repairers would be happy to work with insurers under a ‘fair’ market that is mutually beneficial. Some insurers are fair and reasonable on procedures and rates, given proper documentation. Many have bad actors at the market level who are not. I think if all insurers had accountability to the liability, safety and quality of their practices for repair, it would be heading in that direction.” Of course, the Consent Decree is one of several national issues that could heavily impact the industry’s future. Hendler strongly urges WMABA members to stay on top of as many critical developments beyond the walls of their businesses as possible. “Being a member of our association locally – and involved in national groups like the Society of Collision Repair Specialists [SCRS] – is a big way to stay informed on what matters most. There’s so much news available, and knowing the key issues and what’s going on with them is part of what the associations do. Supporting the associations helps members get in front of those issues on behalf of themselves and the entire industry.” H&D
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October 2019
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INDUSTRY
ADVICE
Do you have a question for Mike? Contact Hammer & Dolly Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.
ASK MIKE
What Did You Learn from the Australian Collision Industry?
This month, we “ASK MIKE” to share some thoughts on his recent visit with shops and industry professionals in Australia. 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, you recently spent time with the industry in Australia. How does their industry compare to ours back home?
Mike Anderson: First of all, I’m very appreciative of everyone who enabled me to make this trip. [CIC Administrator] Jeff Hendler opened the door for me to have the opportunity to go there. Also, Barry Dorn and Aaron Clark flew there as well, and I appreciate their friendship and support with that. I really didn’t know a lot about the Australian market before I went there. I tried to do as much research as I could, and I even talked to shop owners and managers before I went there. I did some work for an organization called Capricorn, which is a coop of about 1,800 shops in Australia and New Zealand. Then, I did some work for Axalta while I was there. Obviously, things are a bit different in Australia than they are in the US. For example, they call a hood a ‘bonnet,’ and they call a roof a ‘turret.’ We call it a ‘deductible;’ they call it an ‘excess.’ They call insurance estimators ‘assessors.’
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October 2019
At the end of the day, I tried to focus my talk on technical aspects of fixing cars. Fixing a vehicle in Australia might have a different repair procedure in another country based on what that country’s standards were when they built those vehicles. I did my research, and I found out that the way we have to fix cars as per the OEM repair procedures in the US is the same exact way in Australia. I do believe that in Australia, they are not as advanced and knowledgeable as we are in regard to scanning and calibrations. I don’t mean that disrespectfully, but it seemed like that is a very new advancement for them. I tried to educate them on scanning, calibrations and some of the technical things I’m privy to thanks to my new opportunity to work with OEMs in the US. One thing I found out is that Australians have something called ‘fixed pricing.’ Most shops don’t use the phrases ‘Direct Repair Program’ or ‘network shops’ for insurance companies, but they have to keep the severity at a fixed cost for drivable or non-drivable vehicles. If it’s more than that and they bill each month, their Labor Rate gets lowered for the next working period. So, they do a lot of what they call ‘batch uploads.’ They pick and choose which final bill they want to upload to make sure they don’t go over that threshold. That, to me, is a lot of administrative burden. This causes a friction point between a lot of shops and insurers. Having an organization there like the Society of Collision Repair Specialists [SCRS] would help.
With some insurance carriers there, the shops don’t even get paid for materials; they just get paid a rate for paint labor that includes materials. Insurers put an emphasis on this ‘fixed pricing;’ they’re not really focused on cycle time or customer service metrics like we are in the States. Shops in Australia only have one estimating system versus three here in the US. I had a chance to go to a shop and look at its estimating system. I was quite shocked; whereas our estimating system has graphics or pictures of the cars or parts, their estimating system has none of that. They just have the name of the part. That’s a bit of a challenge for them, because we actually see pictures and can select the part. Another thing I learned in Australia is that if you’re an insurance shop, you can only fix either insureds’ or claimants’ jobs; you can’t fix both. I also saw that they don’t have many OEM certification programs like we have here in the US. They don’t have General Motors, but they have what’s called Holden, which is the Australian version. Holden is just now rolling out a certification program there, as is Subaru. While they do have two or three, they don’t have all the certifications that we have here. They also don’t have any factory training. In fact, some of the shops that work on BMWs commented that they had to send their technicians to California for training. Most of the technicians in Australia make about the same as they do here, and all of them are hourly. They don’t appear to have
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Same industry, different views.
any great challenges with getting parts; they seem to have a pretty good handle on that. There are no vehicles manufactured in the country, so everything has to be imported. As far as paint technology, they pretty much spray the same paint we do. Waterborne is not mandated there, but there are some shops that spray water. There are some MSOs in Australia. Fix Auto has a little bit of a presence there, but there are no CARSTARs, Calibers or Service Kings. Some insurers actually own shops there. And of course, they have kangaroo hits instead of deer hits. It was a wonderful experience. I hope I get the opportunity to go back. H&D
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Executive Director’s Thoughts
Having been to Australia several times for national collision repair conferences, I understand many of the issues Mike has referred to. There is a significant lag in their ability to propel the industry forward with technology and repair processes because of a seeming “lack” of a robust, fair and competitive marketplace. - Jordan Hendler
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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). October 2019
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October 2019
Fitzgerald Lakeforest Subaru 905 North Frederick Ave., Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
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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
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October 2019
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ADVERTISERS’ INDEX American Honda Motor Co. . . . . . . . . . . . . . . . . .16 Antwerpen Toyota . . . . . . . . . . . . . . . . . . . . . . . . .19 ATI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Audi Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 BMW Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 CAPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Chesapeake Automotive Equipment . . . . . . . . . .33 Cowles Nissan . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Crashmax Equipment . . . . . . . . . . . . . . . . . . . . . .35 Empire Auto Parts . . . . . . . . . . . . . . . . . . . . . . . . .34 Fairfax Hyundai . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Ford Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Fred Beans Parts . . . . . . . . . . . . . . . . . . . . . . . . .38 Goliath Carts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IFC GM Parts Group . . . . . . . . . . . . . . . . . . . . . . . . . .15 Honda Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 Hyundai Group . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Koons Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Malloy Hyundai . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Mazda Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 MINI Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Mitsubishi Group . . . . . . . . . . . . . . . . . . . . . . . . . .36 Mopar Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Nissan Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Nucar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Packer Norris Parts . . . . . . . . . . . . . . . . . . . . . . . .IBC Porsche Group . . . . . . . . . . . . . . . . . . . . . . . . . . .23 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .OBC Reliable Automotive Equipment . . . . . . . . . . . . . .21 SEMA Show . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Sherwin-Williams . . . . . . . . . . . . . . . . . . . . . . . . .5 Subaru Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Toyota Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 USI of North America . . . . . . . . . . . . . . . . . . . . . .9 VW Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Wheel Collision Center . . . . . . . . . . . . . . . . . . . . .19
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October 2019
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