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WMABA Advocates Consumer Choice in Senate & House Hearings - Page 36
April 2014 Volume 8, No. 4
$5.95 www.wmaba.com
www.grecopublishing.com
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28 COVER STORY
CONTENTS
APRIL 2014
ALLIES IN ANNAPOLIS: SUPPORT GROWS FOR WMABA’S CONSUMER PARTS CHOICE CAMPAIGN Legislators make their support of the association’s Parts Bill known. BY JOEL GAUSTEN
LOCAL NEWS 16 MD and VA Volunteers Gear Up for SkillsUSA
Repairers and educators join forces to support collision and refinishing students. BY JOEL GAUSTEN
LEGAL PERSPECTIVE 20 Do You Need Business Interruption
How to protect yourself when you are forced to close your business for an extended period of time.
DEPARTMENTS 8
Calendar of Events
10
Editor’s Message
Insurance?
BY JAMES A. CLEAVER
TECHNICAL FEATURE 32 Warning on Aluminum Repair:
JOEL GAUSTEN 12
DON BEAVER 14
NewsFlash
22
Technician of the
Don't Believe the Hype! - Part 2
A wake-up call on education and equipment. Is your shop ready?
President’s Message
Month: Dustin Mottley
26
Headliners
46
Advertisers Index
BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
COVER: Photo by Joel Gausten
SPECIAL FEATURE 36 Power of Truth: WMABA Advocates Consumer Choice in Senate & House Hearings
WMABA holds its own during crucial hearings on the future of parts. BY JOEL GAUSTEN
THIS PAGE, CLOCKWISE FROM TOP: ©thinkstockphoto.com/Steven Frame ©thinkstockphoto.com/Fuse ©thinkstockphoto.com/Edward White ©thinkstockphoto.com/filmfoto ©thinkstockphoto.com/Darko Novakovic
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Industry training opportunities and don't-miss events.
CALENDAR OF
EVENTS
april 8, 2014
sCrs open meeting & annual election Red Lion Hotel on the River, Portland, OR For more information, visit www.scrs.com
april 9, 2014
CLASS LISTINGS
April 3, 2014
insPeCting rePairs For quality Control Coxton’s Gold Team Collision Center, Yorktown, VA
April 7, 2014
repairer roundtable, sCrs industry awards & sCrs Corporate member recognition luncheon Red Lion Hotel on the River, Portland, OR For more information, visit www.scrs.c om
april 9-10, 2014
Collision industry Conference Red Lion Hotel on the River, Portland, OR For more information, visit www.ciclink.com
raCk & Pinion & Parallelogram steering systems First Team Toyota, Chesapeake, VA
April 8, 2014
vehiCle teChnology & trenDs 2014 Southern Auto Group, Norfolk, VA
April 8, 2014
vehiCle teChnology & trenDs 2014 Coxton’s Gold Team Collision Center, Yorktown, VA
eleCtroniCally ControlleD steering & susPension systems First Team Toyota, Chesapeake, VA
PlastiC & ComPosite rePair Harrisonburg (Manheim) Auto Auction, Harrisonburg, VA
aDhesive BonDing Hampton Inn, Salisbury, MD
Wheel alignment & DiagnostiC angles Frederick Co. Career & Tech, Frederick, MD
WelDeD & aDhesively BonDeD Panel rePlaCement Harrisonburg (Manheim) Auto Auction, Harrisonburg, VA
rePlaCing exterior aluminum Panels Southern Auto Group, Norfolk, VA
vehiCle teChnology & trenDs 2014 Frederick Co. Career & Tech, Frederick, MD
measuring Coxton’s Gold Team Collision Center, Yorktown, VA
steering & susPension Damage analysis First Team Toyota, Chesapeake, VA
WelDeD & aDhesively BonDeD Panel rePlaCement Coxton’s Gold Team Collision Center, Yorktown, VA
squeeze-tyPe resistanCe sPot WelDing Coxton’s Gold Team Collision Center, Yorktown, VA
Wheel alignment & DiagnostiC angles First Team Toyota, Chesapeake, VA
PlastiC & ComPosite rePair Hampton Inn, Salisbury, MD
seCtioning oF steel unitizeD struCtures Hampton Inn, Salisbury, MD
aluminum-intensive vehiCle rePairs Coxton’s Gold Team Collision Center, Yorktown, VA
steering & susPension Damage analysis Southern Auto Group, Norfolk, VA
steering & susPension Damage analysis First Team Toyota, Chesapeake, VA
struCtural straightening steel Coxton’s Gold Team Collision Center, Yorktown, VA
Corrosion ProteCtion Hampton Inn Salisbury, Salisbury, MD
April 8, 2014
April 10, 2014 April 10, 2014 April 10, 2014 April 14, 2014
April 14, 2014 April 15, 2014 April 15, 2014 April 17, 2014 8
April 21, 2014
April 2014
April 22, 2014 April 22, 2014 April 24, 2014 April 28, 2014 April 29, 2014 April 29, 2014 May 1, 2014 May 5, 2014 May 6, 2014
May 6, 2014
CosmetiC straightening aluminum Coxton’s Gold Team Collision Center, Yorktown, VA
May 8, 2014
Full-Frame Partial rePlaCement Frederick Co. Career & Tech, Frederick, MD
May 13, 2014
aluminum-intensive vehiCle rePairs Best Western Westminster, Westminster, MD
May 20, 2014
Wheel alignment & DiagnostiC angles Coxton’s Gold Team Collision Center, Yorktown, VA
May 20, 2014
rePlaCing exterior aluminum Panels Harrisonburg (Manheim) Auto Auction, Harrisonburg, VA
May 27, 2014
CosmetiC straightening aluminum Harrisonburg (Manheim) Auto Auction, Harrisonburg, VA
May 27, 2014
WelDeD & aDhesively BonDeD Panel rePlaCement Hampton Inn Salisbury, Salisbury, MD
May 29, 2014
hazarDous materials, Personal saFety & reFinish saFety Frederick Co. Career & Tech, Frederick, MD
www.i-car.com or (800) 422-7872 for info
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Joel gausten
EDITOR’S
(973) 600-9288 tgpjoel@verizon.net
MESSAGE Recently, I traveled down to Annapolis in the wintry cold of February to attend a special Lobby Day hosted by WMABA and bolstered by the presence of key senators and delegates who have voiced their support of the association’s Parts Bill. Despite the fact that it was 8:30am on a snowy Wednesday morning, the special breakfast meeting drew everyone from shop owners to parts suppliers to dealership collision center managers. Together, these industry members joined forces to create a positive energy in the room that was impossible to ignore. While the general spirit in the room was impressive, I was equally awed by the fact that these members of the WMABA community were in the room in the first place. There they were: Tables full of people, early in the day in the middle of a workweek, having breakfast in the Maryland Inn after making their way through the not-so-pleasant weather outside. I’m very sure that every WMABA member in that room had a job that was put on hold (or at least passed
along to someone else to cover) while he or she took the time to show his or her support of WMABA’s legislative efforts. Can you imagine stepping into your offices or bays after 10am to start your day? That’s what the folks in that room did after the gathering. As I looked around the room, I couldn’t help but take note of the kind of WMABA members who showed up: Shop owners acclaimed in their communities, dealership shop managers committed to embracing current technologies and Board members dedicated to building a better profession. All of these people produce great repair work at their shops, but they know that being great at their craft simply isn’t enough. If you want positive change to occur in your business, you need to be an active participant in events like this most recent Lobby Day. Bringing a hard hit back to pre-accident condition takes great skill, but ensuring your right to choose the best parts for that vehicle sometimes takes a trip to see your elected officials. Even if the demands on your business prevent you from attending functions of this nature, you can still make a huge difference by sending a letter or making a phone call to a senator or delegate when asked by WMABA to do so. Anything you are able to give is helpful and greatly appreciated. To learn more about WMABA’s Lobby Day, check out this month’s cover story on page 28. H&D
2014 WmaBa oFFiCers PresiDent
viCe PresiDent treasurer seCretary
immeDiate Past PresiDent
Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061 torchy Chandler torchy.chandler@gmail.com 410-309-2242 mark schaech Jr. mark@marksbodyshop.com 410-358-5155 John krauss jkrauss@craftsmanautobody.com 703-534-1818 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
BoarD oF DireCtors
Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Mark Boudreau (crashdaddy@aol.com) 703-671-2402
aDministration
Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128
exeCutive DireCtor Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WmaBa CorPorate oFFiCe P.O. Box 3157 • Mechanicsville, VA 23116
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staFF
PuBlisher managing eDitor eDitor art DireCtor oFFiCe manager aDvertising DireCtor
thomas greco tgp22@verizon.net
alicia Figurelli tgp2@verizon.net
Joel gausten tgpjoel@verizon.net
lea velocci tgp3@verizon.net
sofia Cabrera tgp4@verizon.net
norman morano tgp5@verizon.net 800-991-1995 Fax 732-280-6601
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 © 2014 Thomas Greco Publishing, Inc.
©thinkstockphoto.com/Feverpitched
WHY GOOD WORK ISN’T ENOUGH
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PRESIDENT’S
MESSAGE
Don Beaver
(443) 539-4200 ext. 17061 Dbeaver@antwerpenauto.com
There are times when I struggle with what to write about in this message because there are so many issues at hand within our industry. If it’s not one of our customers being steered, it’s an insurance company refusing to pay for a required repair or specifying the use of an aftermarket part on a brand new vehicle. Whatever the latest issue is, it always seems to be a huge bummer. When I reached out to Joel, our editor, for ideas for my next message, he said, “How about something a little more upbeat?” Boy, did I jump on that! As difficult as this industry is at times, there are still plenty of positives to enjoy. I was lucky enough to have become president at a time when we have incredibly talented, motivated and enthusiastic individuals on our Board. (Not that there weren’t before!) Whenever we have a changing of the guard, we always have new openings on the WMABA Board. We are always looking for new people, because our success is directly affected by new ideas and new enthusiasm. Recently, members of the WMABA Board have been spending a lot of time in Annapolis in support of Bills SB487 and HB574. In a nutshell, the bills would prohibit insurance companies from requiring any specified part procurement program and/or the use of a specified vendor. It also may prevent insurance companies from requiring the use of aftermarket parts on vehicles three years old and newer. The passion and the diligence that has been shown in soliciting support and explaining our cause is nothing short of stupendous and outstanding. Now, the battle isn’t over and the fat lady isn’t singing yet, but I can hear her backstage warming up. With all of that said, I give a big shout out and a huge THANK YOU to everyone involved. Mark, Torchy, Kevin, Hannah and anyone I may have missed - GREAT JOB!
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I’d especially like to thank Executive Director Jordan Hendler. Those of us here on the East Coast (and, more specifically, in the Washington Metropolitan area) know what the weather has been like in recent weeks. While most of us were safe and warm at home curled up in front of the TV or with a book, Jordan was braving the inclement weather in Annapolis, walking the halls of the State House soliciting support for our bills. On the evening of February 12, a storm rolled into the capital city; after beating the halls all day, Jordan took up residence in a hotel for the night so she wouldn’t miss the House hearing the next day. Well, that event ended up being postponed due to the weather. As I was sitting in my kitchen that day, drinking a cup of coffee as snow fell at the rate of one-to-two inches a hour, I said to my wife, “I bet that crazy woman is at that State House still drumming up support.” So I called her (for about the 20th time in the days leading up to the hearing), and she was right where I expected: Still in Annapolis, roaming office to office, delegate to delegate, senator to senator. I join the WMABA membership in thanking Jordan for everything she has done for us, and for having the passion, the fire and the belief that these bills before the Maryland General Assembly are so vital to our future. That kind of selfless dedication means spending a lot of time away from her family, and that is a great sacrifice we will always appreciate and never forget. H&D
©thinkstockphoto.com/plustwentyseven
IT’S NOT ALL BAD
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NEWS
News and reports from across the nation.
FLASH COLLISION INDUSTRY EDUCATION FOUNDATION RECEIVES MILLIONS IN SUPPORT in 2013, the collision industry nearly doubled the 2012 amount of support it provided to high school and college collision school programs through the Collision repair education Foundation with nearly $9.4 million in product and monetary donations. Ninety
©thinkstockphoto.com/Lightboxx
percent of this support was in the form of in-kind donations, and the collision industry surpassed the $20 million mark in total giving through the Collision Repair Education Foundation since 2008. Ninety cents of every dollar donated went towards supporting the school programs, instructors and students in 2013. “The incredible growth in support that the Collision Repair Education Foundation has been able to provide since 2008 is a direct result of the industry’s generosity,” said Clark Plucinski, Collision Repair Education Foundation executive director. “To nearly double the amount donated in 2013 compared to 2012 shows how much our supporters believe in the technical education of the industry’s future professionals. The vast majority of the donations are in the form of inkind donations, such as parts, tools, equipment and supplies, which are greatly valued by the collision school programs due to their limited budgets. In 2014, we are increasing our focus on securing additional monetary donations in order to be more strategic and impactful as a collision industry foundation. As a result, monetary donations provide the greatest flexibility to fund the industry’s most pressing needs, as well as emerging opportunities that cannot be addressed with in-kind support. Furthermore, the Foundation is working on innovative initiatives and has developed a new model for collaboration that we believe will deliver tremendous value back to the collision industry.” “The collision industry is facing the perfect storm of an aging workforce, shortage of qualified entry-level technicians and a technical tsunami of new technology entering the marketplace with an under-trained workforce,” added Chris Northup, Foundation Board of Trustees chairman and Professional Parts Group CEO/managing general partner.
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“This being the case, the need for the Collision Repair Education Foundation has never been greater. Because the success of the collision industry starts with education at the school level, the Foundation is committed to closing the curriculum gap, creating the optimal training environment and ensuring students have the fundamental skills necessary in order to be job-ready on day one of employment. “The 2013 results for the Education Foundation speak so highly of this generous industry that understands the importance of investing in the future, giving back and preparing entry-level people for a future in the collision repair industry,” he continued. “[Last year’s success] will certainly set the stage for the future growth of the Education Foundation and its efforts with students, schools and programs around the country. Thanks again to everyone who made the commitment to be involved and help us.” The Collision Repair Education Foundation is a 501(c)3 charitable organization within the collision industry that has given more than $10 million in scholarships, grants, tools and equipment since 2008 to secondary and post-secondary collision students and their schools’ collision programs. The mission of the Collision Repair Education Foundation is “to secure and distribute charitable donations to support endeavors that promote, qualify and properly train employees entering the collision industry.” For additional information about the Collision Repair Education Foundation, visit www.CollisioneducationFoundation.org. Inter-industry organizations and individuals who are interested in supporting the Collision Repair Education Foundation in 2014 and increase the amount of assistance provided to collision schools and students should contact Director of Development Brandon Eckenrode at (847) 463-5244. H&D
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Information and updates from WMABA and beyond.
LOCAL
NEWS MD AND VA VOLUNTEERS GEAR UP FOR SKILLSUSA With the date for this year’s SkillsUSA getting closer, the Maryland SkillsUSA Collision Repair and Automotive Refinishing Committees are seeking industry support for the future technicians in the Maryland area. With the help of local collision repair facilities, vendors and industry partners, the Committees have been successful over the years in obtaining great prizes for the talented young men and women who participate in the annual event. The Maryland SkillsUSA Collision Repair and Automotive Refinishing Competitions will be held at the Center of Applied Technology North in Severn, MD on April 4 and 5 and are open to the public. Although that date might be too tight for some readers to donate to this year’s event, Maryland SkillsUSA organizers encourage interested parties to donate year-round to a special SkillsUSA fund for 2015. Because Maryland SkillsUSA is a 501(c)(3) non-profit organization, all donations are tax-deductible. Longstanding Maryland SkillsUSA supporters include Chesapeake Automotive Equipment, GEICO and Enterprise Rent-A-Car. Teresa Bolton, director of collision repair test development for ASE, is assisting in the collection of donations for this year’s SkillsUSA and is blown away by the outpouring of support shown by the automotive community. “Our industry is so generous; they never say no,” she says. “We’re so very grateful for the industry’s support, because that just shows our competitors that we want them to come into our industry. “Each competitor gets something just for participating,” she adds. “One year in particular, GEICO gave buffers to all the refinishing competitors and hammer and dolly sets to all the collision competitors.” For more information or to make a
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donation to Maryland SkillsUSA, please contact: Beth meckel aCt randallstown
3636 Brenbrook Drive randallstown, mD 21133 (443) 506-7349-cell (410) 521-5155-work
tony Brooks, manager heritage mile one 9219 harford road #2 Baltimore, mD 21234 (866) 766-1431-work
teresa Bolton, ase
101 Blue seal Drive s.e., suite 101 leesburg, va 20175 (703) 669-6610-work
As Maryland prepares for their SkillsUSA festivities, volunteers in Virginia are also hard at work getting things in order for their state’s competitions. This year’s Virginia Auto Service Technology Competition will be held April 4 and 5 at the Roanoke Civic Center and overseen by volunteers from First Team Auto Mall, while the Automotive Refinishing Technology and Collision Repair Technology Competitions will be held on the same days at Berglund Body Works in Roanoke with help from Axalta Coating Systems. Mike Toney, a collision repair and auto mechanics instructor at Salem High School in Salem, VA, has been a SkillsUSA volunteer for nearly 15 years. Not surprisingly, he has seen the caliber of students involved in the competition steadily increase with each passing event. “I think the quality of the students has gotten better, simply because the industry is so high-tech now,” he offers. “We’re
attracting different students than we would have in the past.” Toney encourages industry professionals in Virginia to become part of SkillsUSA and build stronger ties between repairers and educators. “The biggest thing is that [people in the industry] need to get involved in the schools, see what’s being taught [there] and tell the instructors in the school system what would help them because they’re ultimately the ones we’re producing students for,” he says. This sentiment is shared by fellow Virginia SkillsUSA organizer Bob Owen, AYES State Manager for Virginia and member of the Virginia Automobile Dealers Association. “People in the dealerships need to be more involved in their local schools by sitting on the Career Technology Advisory Boards at stuff like that,” he says. “That’s where the instructor relies on getting his or her information about what to teach…The involvement of the industry in the local schools is so critical, but most service managers don’t see the need to do it. On the other hand, the instructors from the school system do not think it’s a necessity for them to go up to the dealerships to solicit [their help]. The more that two-way street ebbs and flows, the better the systems work and the better off the students are.” Toney invites anyone interested in becoming involved in Virginia SkillsUSA to contact him at (540) 761-3469 or through email at mtoney@salem.k12.va.us. The first place winners in the Automotive categories at the Maryland and Virginia SkillsUSA competitions go on to represent their respective states in the SkillsUSA National Leadership and Skills Conference, held June 23-27 in Kansas City, MO. More information on SkillsUSA is available at www.skillsusa.org. H&D
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LEGAL
PERSPECTIVE
What’s happening at the State House, in your industry and everywhere in between.
By James a. Cleaver, Senior Partner, The Law Offices of Alexander & Cleaver
Many local small businesses took a hit this winter because of the weather. Businesses were forced to close because of snow and had less traffic going in and out of them, since people were staying home. These weather-related inconveniences lasted just a few days. But what would happen if an event outside of your control occurred, closing your small business’s doors for more than just a day or two? Contingent business interruption insurance minimizes some of the risk that accompanies ownership. Business interruption coverage is usually a part of a broader commercial insurance policy. Its purpose is to insure the losses a business encounters when a significant customer’s or supplier’s operations are interrupted by covered loss or damage. Most often, contingent business interruption insurance comes into play after a natural disaster temporarily suspends normal operations. The majority of business interruption insurance policies cover loss or damage only to tangible items (equipment, inventory, warehouse, etc.), not lost profits. Policies vary and riders can be added. The loss that businesses may experience because of a shutdown may be, in some instances, sufficient “loss” necessary to invoke business interruption coverage. Business interruption insurance is a limited form of coverage and will normally be limited in time. Some policies may not immediately go into effect after an interruption, but will only take effect after a certain number of days. As with every commercial insurance policy, the insured business should provide prompt notice of a claim, be prepared to prove the loss through documentation and
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take any reasonable steps to mitigate loss. Businesses can fall victim to circumstances beyond an owner’s control – business interruption insurance can provide some reassurance that if an interruption occurs, the insured business will be covered. For more information, contact Jim at (800) 292-LAWS.H&D Jim Cleaver is the senior partner of the Alexander & Cleaver. Jim co-founded the firm in 1984 with Gary R. Alexander. He works primarily in the field of civil litigation, heading up the firm’s personal injury practice. In that role, Jim is the firm’s primary negotiator and litigator in personal injury cases, using his vast experience and knowledge acquired over parts of the past five decades to achieve results for clients. It is no surprise to colleagues and clients that Jim has been designated a Super Lawyer in personal injury cases, was named one of Maryland’s top trial lawyers and was selected by the prestigious Million Dollar Advocacy Forum.
©thinkstockphoto.com/filmfoto
DO YOU NEED BUSINESS INTERRUPTION INSURANCE?
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TECHNICIAN OF
Hammer & Dolly chats with the WMABA community’s best and brightest.
THE MONTH DUSTIN MOTTLEY
ongtime WMABA member Cliff O’ Connell (Cliff’s Hi-Tech Body Shop, Baltimore) has encountered his fair share of talented automotive professionals during his 45 years in the industry, but Dustin Mottley is truly special. “Dustin stands above anyone else I’ve ever worked for, had in my company or worked with out in the industry,” he says. For the past 11 years, Mottley has earned his employer’s praise as part of the Cliff’s Hi-Tech paint team. Since the first day he joined the business straight out of vocational school, he has made sure that every vehicle that greets him at the 18,500-square-foot facility receives the finest care possible. His talents in the booth are matched by his can-do attitude and willingness to go above and beyond to keep customers happy. “Dustin’s the guy our body techs go to if they need something now,” O’Connell says. “You don’t even have to ask him to work late; if we need to deliver [a job] tomorrow, he’ll get it painted whether it’s late at night or early the next morning. I’ll drive by the shop on Sundays, and I’ll see his truck sitting out front. And that’s without asking him to be there; he just does it.” Additionally, O’Connell is continually impressed by Mottley’s ability to approach every day in the shop with a positive attitude. “He’s never complained about anything,” he says. “He’s never come up and said, ‘Cliff, I don’t like that’ or said anything about another employee. He’s at the shop every day; we never have to wonder if Dustin’s here.”
L
Dustin mottley is a dedicated family man who is unafraid to take on unique jobs like painting this metal swan.
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Mottley’s skills extend far beyond the walls of Cliff’s Hi-Tech, as O’Connell has utilized his star painter’s gifts on special projects like the front door to his home and a six-foot metal swan he purchased in Ocean City. In and out of the shop, Mottley consistently receives his employer’s respect. “He came in here as a young guy, and I’ve watched him get married, have two kids and buy his own home,” O’Connell says. “He’s grown up here.” In an industry known for high turnover, Mottley is happy to call Cliff’s Hi-Tech home. “With my work ethic, they know they can just let me do my thing,” he explains. “I come in and give it 110 percent every day, and they know I’m going to get it done.” Like other refinish experts, Mottley made the switch to waterborne a couple of years ago. While the transition was rocky for some in the field, he embraced the change with open arms. “[The industry] should have done it a long time ago,” he shares. “Hands down, it’s better and easier now than it was four or five years ago.” Away from the shop, Mottley enjoys spending time with his wife Shelby and children Kylie (7) and Karter (19 months). In addition to giving him an opportunity to provide for his family, the industry allows Motley the chance to make life a little better for vehicle owners who have been involved in car accidents. “It’s hard work, but I’m not afraid of it,” he says. “I love cars, and I want to put good products out there for people.” H&D
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AS A COLLISION REPAIR SPECIALIST, YOU MUST ALWAYS FOC HOWEVER, INSURANCE ESTIMATES ARE OFTEN FOCUSED ON BMW centers stock Original Equipment Parts that never sacrifice quality or s
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 www.mybmwannapolis.com
BMW of Fairfax 2805 Old Lee Highway Fairfax, VA 22031 800-879-2269 Fax: 703-641-8562 www.bmwoffairfax.com
BMW of Alexandria 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 www.bmwofalexandria.com
Passport BMW 5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 www.passportbmw.com
Apple BMW  of York 1370 Roosevelt Ave. York, PA 17404 800-839-1755 Fax: 717-843-2948 www.applebmwofyork.com
BMW of Sterling 21826 Pacific Blvd. Sterling, VA 20166 888-954-8222 Fax: 571-434-7727 www.bmwofsterling.com
BMW of Silver Spring 3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Fax: 301-890-3748 www.bmwofsilverspring.com
Northwest BMW 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 www.northwestbmw.com
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FOCUS ON SAFETY, QUALITY AND COST. ON JUST COST. r safety for cost.
·
Every detail is exactly matched to the vehicle’s safety systems for optimum occupant protection.
·
Original BMW Panels and Components are built from premium materials using ultra-precise processes.
·
To maximize the safety of all passengers, replacement panels undergo strict and extensive quality control tests.
·
To ensure optimal paint adhesion, electrophoretically primer coats are applied during the manufacturing process.
Russel BMW 6700 Baltimore National Pike Baltimore,MD 21228 800-828-6529 410-744-2000 Fax: 410-744-5639 www.russelbmw.com
BMW of Bel Air 1705 Conowingo Road (US 1 in Hickory) Bel Air, MD 21014 443.640.1230 Fax: 443.640.1234 www.bmwbelair.com
Richmond BMW 8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 www.richmondbmw.com
Richmond BMW 12100 Midlothian Tpke Midlothian, VA 23113 Phone: 804-897-2211 Fax: 804-897-2202 www.richmondbmw.com
Checkered Flag BMW 5225 Virginia Beach Blvd Virginia Beach, VA 23462 757-687-3494 Fax:757-687-3495 bmw.checkeredflag.com
BMW of Towson 700 Kenilworth Drive Towson, MD 21204 410.296.7908 Fax: 410.296.4852 www.bmwtowson.com
Valley BMW 2824 Franklin Road SW Roanoke, VA 24014 PH: 540-342-3733 Fax: 540-345-9060 www.valleybmw.com
BMW of Rockville 1396 Rockville Pike Rockville, MD 20852 301-984-8989 Fax: 301-984-1710 www.bmwrockville.com
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HEADLINERS The latest news and notes.
MORE PARTS SUPPLIERS JOIN CCC NETWORK Since launching the CCC TRUE Parts Network in September 2013, there has been a steady stream of suppliers signing up to show, quote and sell their available parts inventories through the CCC ONE platform. According to a CCC press release, the latest aftermarket suppliers “include national and regional companies with parts inventories that range from broad to specialized.” New suppliers include Pacific Auto Company, PartsChannel Inc. and Perfect Fit Group Auto Parts. “We’re very excited by the response we’re getting from the parts supplier community,” said David Boden, vice president of CCC Parts Services Group. “The addition of these quality suppliers strengthens the power of the CCC TRUE Parts Network and demonstrates the supplier community’s interest in making parts procurement easier for their repair customers. At the same time, our repair customers are opting in to use the parts quoting, ordering and invoicing functionality at a great pace, making for a mutually beneficial solution.” According to the CCC release, participation in the CCC TRUE Parts Network is open to all parts suppliers. More information is available at www.ccc-true.com. Additionally, integrated parts quoting, procurement and invoicing are now available free of charge to CCC ONE Repair Workflow customers, with no setup required. Founded in 1980, CCC is a leading provider of advanced software, workflow tools and enabling technologies to the automotive claims and collision repair industries. Its client base includes more than 350 insurance companies and more than 21,000 repair facilities. CCC also delivers the most comprehensive, best-in-class industry insights by leveraging data captured from the millions of transactions processed through its network, and the forward-looking, trusted advisor perspective of its people. You can find out more about CCC Information Services Inc. by visiting the company’s website at www.cccis.com. H&D
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COVER
The Latest From WMABA Members and Supporters
STORY ALLIES IN ANNAPOLIS:
Support Grows for WMABA’s Consumer Parts Choice Campaign By Joel Gausten
the collision repair industry is respected and appreciated by the maryland general assembly. This was the ultimate takeaway for the body shop owners, dealership personnel and industry representatives who attended WMABA’s special Lobby Day at the Maryland Inn in Annapolis on February 26. Over a relaxed breakfast, these members of the WMABA community joined key legislators to discuss the association’s ongoing work to pass Senate Bill 487 and House Bill 574. This consumer-focused legislative push seeks to prohibit “a specified adjuster, appraiser, insurance producer or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle.” Additionally, the bills seek to require Maryland auto insurers to authorize use of genuine crash parts for vehicles that are three years old or less. Senate Bill 487 is sponsored by Senator John C. Astle, while the House companion bill is sponsored by Delegate John A. Olszewski, Jr. These two legislators should be commended on their efforts to not only author and sponsor the legislation, but for their advocacy of the bills as well. They have fielded a lot of targeting by the opposition, and have remained strong in their resolve to see this consumer protection passed into law. ,WMABA has been working extensively with the lobby firm of Alexander & Cleaver (and Government Relations Consultant Hannah Garagiola in particular) for the past several months to build a solid presence at the State House and ensure that the industry’s call for change on behalf of consumers is being heard loud and clear. If the sentiments shared by the senators and delegates in the room during the breakfast meeting are any indication, WMABA could be poised to enjoy a substantial victory.
Why legislation matters During her opening remarks to attendees, WMABA Executive Director Jordan Hendler noted that the association created the bills in response to consumer concerns over the use of aftermarket parts in the repair of their vehicles. According to reports from WMABA member shops, more and more vehicle owners are facing situations where they feel they are not being made whole in the repair process unless they pay extra money out of pocket for the difference in cost for OEM parts. This kind of expenditure is especially difficult for customers already struggling to pay their insurance deductibles. Additionally, delays caused by shops having to wait for bids to
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return through insurer-mandated parts procurement systems like PartsTrader (through State Farm) are already leading to consumers being upset that the repairs are taking longer than anticipated. On the shop side, Hendler has received reports from repairers that they are being prevented from utilizing the parts suppliers of their choice. “[Shops] are saying, ‘I’ve had lifelong relationships with these people, and all of a sudden this insurance company is saying I can’t order from them unless [the order] goes through this system. It’s taking longer and longer, and I’m not able to get started on the cars quickly,’” explained Hendler. “With those issues, the length [of repairs] in the shop equates to delays for [the vehicle owner]…We have made the consumer – the constituent – the primary backbone of what we’re trying to do here. It’s all about them.” One of the House Bill’s strongest supporters, Delegate Mark N. Fisher (R-Calvert County) told attendees that his support of WMABA’s efforts was a family affair. With his father, uncle and cousin – all veterans of the collision repair industry – at his side, Fisher shared the frustration he feels over the difficulties facing auto body businesses in his state. “[The insurance companies] have separated the industry,” he added. “They say, ‘We’re going to go over to these [DRP] body shops and separate them and pit them against their competitors.’ That’s wrong; what it has done is separate the industry so it isn’t united when we have bills like this.” Delegate Richard K. Impallaria (R-Baltimore & Harford Counties), a former body shop owner and insurance adjuster, encouraged the WMABA members in attendance to get to know their elected officials and ask for their support. “When you go up to them, don’t be afraid to say, ‘Look, I know insurance companies support you heavily. But just because they support you heavily doesn’t mean you have to vote with them 100 percent of the time. Why not just vote with them 98 percent of the time? If you care about small businesses, which body shops are, give us a shot,’” he said. Later in the meeting, Hendler shared her thoughts on the recent Senate and House hearings that WMABA attended in support of the legislation (see page 36). Despite strong push back from insurers and aftermarket parts suppliers, the association succeeded in separating fact from fiction. “The opposition did try to make the case that it’s going to raise rates,” she explained. “I think we did a fantastic job in the hearing of showing that this was not the case. In everywhere else this same
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members of the WmaBa community gather in annapolis. left to right: Joey izzo (Criswell Collision Center), stan Wist (Criswell acura), Brian hagerty (Brown’s City honda), Jordan hendler (WmaBa executive director), kevin marvin (Criswell Collision Center), torchy Chandler (WmaBa vice president), Barbara Chase (sisk auto Body), mark schaech, Jr. (WmaBa treasurer) and Don Beaver (WmaBa president).
legislation has been in place, it’s definitely not changed rates. And it’s not about the OEMs trying to create some kind of monopoly; it has nothing to do with that. It has to do with us, as the individual shops in the market, seeing this as an issue for our customers. It’s about being a whistleblower; it’s about protecting their investment and making sure they’re made whole post-claim.” One of Maryland’s most revered senators, Senate President Thomas V. “Mike” Miller Jr. (D- Calvert & Prince George’s Counties) made it clear that he was happy to work with the bill’s proponents in demonstrating bi-partisan support for WMABA’s initiative. “We’re both supportive of small businesses, especially in these tough times,” he said. “It’s always difficult for your industry to turn a profit; at least [this will] give you a fighting chance…Mark and I are going to stand shoulder to shoulder so we can move forward on this issue.” Delegate Fisher’s uncle, Dave Fisher Sr. of Dave’s Collision Center in Baltimore, echoed Senator Miller’s concern for the economic survival of small businesses. “I don’t think you can understate the importance of this to make sure that insurance companies’ intrusion into our business is blocked,” he offered. “An automobile is your second-largest investment, and [we] need capital and money to buy the equipment to repair it properly. If you have insurance companies steering all their good work to other shops, then you’re left with picking what’s left over.” staying the Course Speaking with Hammer & Dolly following the Lobby Day event, WMABA President Don Beaver felt confident that passage of the legisla-
tion would provide relief to a motoring public that has been pressured to have their vehicles repaired below their expectations. “At the end of the day, it’s about consumers – especially those who are driving new cars with warranties or leased vehicles,” he said. “If aftermarket parts are used on those vehicles, they can void part of the warranty, or be against their contract if it’s a leased vehicle. Consumers are going to be stuck with an out-of-pocket expense paying for the difference between aftermarket and OEM parts.” Additionally, Beaver is quick to dispel the myth that this push in Annapolis is merely a way for OEM parts suppliers to build a monopoly in the marketplace. “There are a lot of manufacturers that are actually in the pricematching business,” he argues. “It’s not about the dollars; at the end of the day, it’s about putting the right part on the right car for the right reasons.” Beaver wants it known that this is not an anti-parts procurement program bill, either. “Parts procurement programs are not a bad thing; we use them all day long,” he says. “The problem is with the mandated programs that are so one-sided that their only job is to lower the cost that an insurance company pays with no thought to the repair process or how long somebody is going to be out of a car.” Beaver’s fellow WMABA Board member Mark Schaech, Jr. views passage of the association’s legislation as a solution to the problems created when shops are forced to implement a system that offers no value to their business’ efficiency or bottom line.
continued on page 30
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consumers who already have pretty weak rental coverages. They end up digging in their pocket to keep the vehicle in the shop longer as delays in parts procurement get longer.”
Delegate richard k. impallaria (r-Baltimore & harford Counties) attended the lobby Day to show his support of WmaBa.
Delegate mark n. Fisher (r-Calvert County) discussed his family’s experience working in the collision repair industry.
senate President “mike” miller, Jr. offered words of encouragement to the small business owners in the room.
“There’s already a lot of intrusion in the collision industry by the insurance industry,” he says. “I think this was a back-breaking move by them to control how parts are purchased, where they are purchased and at what price they’re purchased. Unfortunately for consumers, the processes that have been introduced so far are really time-consuming and cause incredible delays – not only on the shop side, but also for
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the Battle Beyond maryland With PartsTrader now either pending or fully live in every state in America, shops and dealers in markets outside of Maryland are struggling to adapt to the drastic changes happening to the businesses. For one prominent Virginia dealership, signing on with PartsTrader was more a matter of responding to the demands of his customers than a genuine desire to add another process into his already-streamlined operation. As a result of their DRP agreement with State Farm, Select Service shops are asked to tell PartsTrader which dealers they prefer to work with, and these dealers are later contacted with an invitation to join the system. When nearly 50 shops dropped his name, the dealership’s wholesale parts manager had no choice but to accept an unproven and highly controversial product. “They kind of have us over a barrel; everybody knows that,” he admits. “You either embrace it with a warm smile or decide that you don’t want to do that anymore. You might lose some business or you might gain some business, but you’re not going to know right away.” At the same time, this manager is concerned how his decision to use PartsTrader will hurt his relationships with the shops that have stood up and rejected the system. “There have been shops that have said they will not use PartsTrader,” he says. “That was probably something that concerned every parts manager in the nation. I’ve heard stories where wholesale managers got calls from shops saying, ‘If you use PartsTrader, I’m not going to buy from you.’” Standing firmly between a rock and a hard place, the manager is moving forward with PartsTrader with considerable unease. “We don’t know yet if we’ve lost orders because of the quoting system,” he shares. “I know that we have gotten a lot of orders, but we’ve also gotten partials where they maybe bid it out to a secondary supplier. It’s probably going to take four or five months to really see what the effect is on certain customers… It’s still really too early to tell. You don’t know where [State Farm] will take their control once you give yours up. I just hope this isn’t a Trojan horse.” With a huge question mark hanging over the future of parts usage and procurement, members in both Maryland and Virginia should become involved in the political process and reach out to the Legislature for assistance. As Schaech says, something as simple as a phone call to invite an official to a tour of your shop or dealership can make all the difference in the world in showing them what you do to protect consumers. “I can tell you from experience that shops need to stay involved, and they need to get in touch with the senator and delegate and have them to the shop to see this process,” he notes. “Show them what an aftermarket part is; show them all the differences. These [legislators] are consumers; show them what the issues are in your shop so when it comes time to bring your legislation forward and ask for their help, they’ve been there, done that and seen what’s going on in your repair facility.” H&D
There’s more to the story! Turn to page 36 for a report on the Senate and House hearings on WMABA’s Consumer Parts Choice Campaign.
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Executive Director’s Thoughts If I’ve learned anything in this legislative session, it is the importance of repairers making individual connections with their legislators. We had one committee member call his auto repairer and say, “I’ve heard enough from these lobbyists; give me the real deal. I know you; you fix my car and I trust you.” This is golden! It’s empowering to have so many shops supporting the efforts in Maryland, and I hope that we’ll have even more when this issue comes to the other legislatures in our area. We’ve had to brave a lot of snow days, and our Lobby Day was one of them. While the weather surely hindered the attendance of repairers, our resolve to address the issues remained strong. It certainly didn’t negatively affect those delegates and senators who’ve been supportive of our consumer-friendly legislation. It was a great feeling to have the Senate President join us to offer his thoughts. It is obvious when working with these legislators that they have the constituent in mind. However, some others need to be convinced beyond the funds that are given to them by our opponents during the fundraiser season. This is how shops and parts vendors can step up to make our industry more visible. Attending a legislator’s event is an important way for him or her to see that we know how important his or her time is in Annapolis or Richmond. Mark Schaech, Jr. and our Immediate Past President Torchy Chandler have been longtime advocates of inviting legislators to come to your facility and see how things work. You have their undivided attention and can teach them how the process works as well as how the consumer needs to be protected. Educating them on how we are the professionals when it comes to vehicle repair is the most important aspect of establishing a long-term connection. - Jordan Hendler
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TECHNICAL
FEATURE
Nuts and bolts, tips and tricks from our resident industry experts.
By larry montanez iii, CDa & JeFF lange, Pe
WARNING ON ALUMINUM REPAIR: DON’T BELIEVE THE HYPE! - PART 2 last month, we addressed some common misconceptions and misinformation about aluminum repair. For this issue, we’d like to continue our discussion on aluminum repair by focusing on the equipment and training necessary to do a proper job. To be on any one of the many aluminum collision repair programs, you will need to invest in equipment and training. Generally, the repair facility will need to send at least two technicians to do the following: attend a specific set of i-Car classes and/or i-Car online courses (for an average of eight classes) Pass the i-Car steel and aluminum Welding qualification test Pass the ase certification tests for their job position (B2-B5) Pass the oem online training classes prior to attending a specific course Pass the specific oem aluminum welding certification test, iso 9606-2 aircraft aluminum welding certification test.
©thinkstockphoto.com/Edward White
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Please note that this is not a “how-to” article. WE WILL NOT DISCUSS OR EXPLAIN ALUMINUM WELDING PROCEDURES AND PROCESSES. ALTHOUGH LARRY MONTANEZ IS A CERTIFIED ALUMINUM WELDER AND TECHNICIAN WITH MULTIPLE OEMs, WE WILL NOT DISCUSS THE PROCESS. THIS IS DUE TO THE FACT THAT, WHEN REQUIRED TO WELD ALUMINUM, THE REPAIR FACILITY MUST BE ON AN OEM REPAIR PROGRAM. EACH OEM PROGRAM THAT ALLOWS ALUMINUM WELDING HAS ITS OWN PROPRIETARY WELDING CERTIFICATION TEST - ALTHOUGH ONE OEM HAS BROKEN THAT RULE, AND WE WILL DISCUSS THIS ISSUE IN THIS ARTICLE. ADDITIONALLY, THIS ARTICLE IS NOT A TRAINING GUIDE OR HOW-TO MANUAL; IT IS FOR INFORMATIONAL PURPOSES ONLY. IT IS A GENERALIZATION OF MULTIPLE DISCIPLINES OF OEM REPAIR PROCEDURES AND REQUIREMENTS.
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Some OEMs require re-testing every six months, annually or bi-annually. Currently, there is no reciprocity between the OEMs for the ISO 9606-2 test. Most of the testing is performed in the USA, but some are performed in Europe. These tests are extremely difficult, can be very expensive and are time-consuming. The shortest test is 4 days and the longest is 10 days. Recertification tests are one to three days, depending on the OEM.
Technicians should be fully trained on the basic physical properties of aluminum, as well as be able to:
understand aluminum properties, characteristics and their differences; Be able to identify vehicle part design (i.e. sheet, cast and extrusion); analyze and identify damage to aluminum exterior panels; analyze and identify damage to aluminum structural parts; identify the oem repair procedures and understand repair considerations; understand the considerations around making repair versus replace decisions; and understand how to perform test welds visually and destructively.
The repair facility will be required to purchase the following equipment:
1. specific structural realignment equipment. Currently, Celette is the most popular required equipment maker, followed by CarO-Liner and CarBench. Global Jig also has a few approvals. Lately, there has been some information from Ford that Chief and Spanesi have approvals for the F-150 Program. 2. aluminum Pulse Welders. These machines can be expensive, and in some cases have specific OEM computerized settings that are loaded in the equipment’s software. Fronius, Migatronic and Wieländer Schill are the most popular required welders. One program lists specific Miller and Lincoln welders in addition to the ones mentioned here.
3. Curtained-off clean area, clean room or a dedicated “aluminum only” repair building. 4. Specific rivet guns, hand tools, glass tools, OEM-specific specialty tools, dedicated aluminum body repair tools and miscellaneous tools. 5. Subscriptions to the OEM-specific website for repair information.
Additionally, the shop is subject to surprise inspections by the certifying body. As you can see, aluminum repair requires a very specific set of tools, training and a commitment by not only the repair facility, but by the technicians, too. The average cost to start on one of these programs can be around $70,000 for the simpler programs to more than $250,000 for the high-requirement programs. Once you are on one of the programs, other programs might be easier to get on and in turn be less expensive, as there may be duplicate equipment requirements. Another option is to make a deal with a certified shop. This may be your best option, as you retain your customer, ensure the proper repairs were performed and have a certified repair facility’s invoice to guarantee the workmanship. So should you or should you not invest in aluminum repair? We would recommend that you make a move towards the investment. The 2015 Ford F-150 is already constructed with an aluminum upper body structure. GM recently announced that the GMC 1500 and Chevrolet Silverado will be aluminum in 2018, as well. How long before we see aluminum Mustangs, Focuses, Impalas, Cadillacs and other American vehicles? Being ahead of the learning curve is important. We all must remember that aluminum repair requires much more skill and technique than steel. Besides I-CAR classroom training, there are other training options. P&L Consultants offers a six-hour, hands-on aluminum outer body panel repair workshop. We know this is not what everyone wants to hear, but it is what it is. If you do not invest in the training and equipment, you may not be in business anymore as you will be left behind. Opting to repair cosmetic damage only is really not an option, as many times the repairs require some structural work. Not only do the
technicians require new tools, equipment and knowledge, but the damage assessors will require the same training to understand all the procedures and precautions. A three-hour dent repair to a steel panel may be eight to 10 hours or even unrepairable on an aluminum panel with the same damage severity. Being able to understand what it takes to repair aluminum components will be paramount in six years; you need to invest in education now. We hope this article has helped the industry to better understand some of the prevalent issues involved in repairing aluminum cosmetically and structurally, and the commitment necessary to get involved with an OEM aluminum repair program. As always, please feel free to contact us if you have any questions.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 repairability and estimating issues. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860–3588 (cell), (718) 646–2733 (fax) or via email at info@ Pnlestimology.com. The P&L website is www.Pnlestimology.com. Jeff lange, Pe is president of Lange Technical Services, Ltd. of Deer Park, NY. Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.lange@langetech.net. The Lange Technical Services, Ltd. website is www.langetech.net.
Executive Director’s Thoughts With the advancement of all-aluminum structures in America’s most popular vehicles, repairers will need to address those repairs now. Will you make the investment into properly fixing these cars and trucks, or will you have to turn away repairs to someone who has? - Jordan Hendler
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SPECIAL
The Legislature takes on the parts battle.
FEATURE
POWER OF : TRUTH WMABA Advocates Consumer Choice in Senate & House Hearings By Joel Gausten
the truth will set this industry free.
Despite some strong (and at times surreal) opposition from insurers and aftermarket parts suppliers, WMABA continues to gain momentum throughout the Maryland General Assembly in support of Senate Bill 487 and House Bill 574, which seek to prohibit insurer mandate of aftermarket parts for the first three years of the vehicle as well as the mandate by insurers for particular procurement processes or vendors for parts or materials. This fact was made abundantly clear during the Senate and House hearings on the bill on February 18 and 21, respectively. As you’ll read in this feature, association representatives and other bill supporters held their own against some fierce – and, at times, highly questionable – arguments from the other side. continued on page 38
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Šthinkstockphoto.com/Fuse
Want to watch the hearing(s) and see it for yourself? Go to http://wmaba.com/legislations/ and click the Maryland tab for links to both the Feb. 21 House Economic Matters committee and the Feb. 18 Senate Finance committee hearings. You will not be disappointed!
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the scene at the senate A staunch supporter of the WMABA Parts Bill, Senator John C. Astle got the ball rolling at the Senate Finance Committee’s hearing by informing his colleagues of the strong consumer protection elements of WMABA’s current legislation. “If we go out and purchase a new car covered by a warranty, and then we have an accident [and] the body shop replaces those original parts with aftermarket parts, oftentimes the warranty doesn’t cover it,” he said. “That becomes a problem, and with leased cars, there are some financial obligations that you incur if you have an accident and [the parts] are replaced with aftermarket.” Hannah Garagiola, government relations consultant for WMABA lobbyists Alexander & Cleaver, revealed that the aftermarket parts debate has personal consequences for her as a Maryland auto consumer. “I recently traded in my old car, and when I asked the dealer what it was worth… they said $400 because it had aftermarket parts on it,” she said. Speaking on behalf of the WMABA membership, Executive Director Jordan Hendler stated that the aftermarket parts issue became a major legislative focus for the group after numerous members came forward to say they were having difficulty making their customers whole during the repair process. “Consumers have invested a lot of money in a new car with a warranty or lease agreement, and their reasonable expectation is that their policy will cover the warranty and lease agreement provisions,” she said. “If these parts are used in this process, [consumers] are not made whole unless they pay the difference. Consider yourself in [this] hardship: You’ve wrecked your car, you take it to the body shop, [and] you have a $500, $1,000 or $1,500 deductible that you’re already having to come up with…You’re usually scrambling to get that money together so you can your car repaired, just to find out that the insurance company – regardless of if the vehicle has 500, 1,500 or 2,000-plus miles – writes for aftermarket parts on their estimate for repair.” Hendler added that this situation leads the consumer to either pay the difference or get these parts and “pay at the end” when the trade-in value is substantially lower than anticipated. “If it’s a lease return, that consumer is then on the hook to pay the difference in value or to actually pay for the repair again,” she explained. “This is all above and beyond a deductible for a policy that they felt would cover the situation that they found themselves in.” Joe Tucker, owner of WMABA shop JT Restorations in Deale, expressed his belief that the use of aftermarket parts poses considerable risks and inconveniences for his customers. “It is not fair to the consumer for these parts to be pushed upon them,” he said. “Also, it takes longer to repair these vehicles, and the parts don’t fit as well as the OEM parts. Insurance companies tell me to try them on the vehicle, and if they don’t fit to go ahead and get the OEM parts. Why did they tell me that? Because they know the OEM parts fit. I’m wasting my time putting these [parts] on. Not only that, you get the consumers who are paying for the rental or don’t have a car.” Tucker also offered words in support of the limitations that the bill sets for insurer-mandated parts procurement. “This so-called ‘tool’ is being forced upon the DRP shops to be used,” he said. “If you don’t use this program, then you’re going to be off their program…This tool has canine-like teeth to it. It’s not a question of if it’s going to bite; it’s a question of when it’s going to bite, and how hard it’s going to bite you.” WMABA representatives have informed legislators of the delays the parts procurement bidding systems have created for consumers. If it takes additional time to source parts, then it adds to the overall repair
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time and equates to more days of rental or inconvenience to the customer. WMABA Board member and Maryland body shop owner Mark Schaech, Jr. noted that use of aftermarket parts on newer vehicles defies current industry standards of automotive repair. “The standard in our industry to repair a vehicle is following the manufacturer’s recommendations,” he said. “Anywhere we train in our industry, we’re told that the manufacturer is the default. I think all manufacturers recommend the use of genuine OEM parts in the repair of their vehicles.” Additionally, Schaech explained that he has customers who choose to use aftermarket parts sign a hold-harmless agreement stating that these parts could violate their lease, could void part of their warranty and were also not crash tested like OEM parts. “I just think it’s unfortunate that there’s not a law protecting consumers from forcing them to breach their lease agreements and oftentimes void [portions of] their factory warranties,” he said. “When consumers are buying a car these days, they are actively looking at the length of the warranty,” added Travis Martz, a representative from the Maryland Automobile Dealers Association. “Whether or not it’s two years or six years, the price of the warranty is actually built into the price of the car…When a customer comes in and there is an aftermarket part that has been put into that car and it invalidates part of the warranty, the dealers are left with not offering the proper service they seek [to offer] to the customers, and the customer is not getting what they bargained for when they first bought the vehicle because part of that warranty has been discredited.” Addressing the issue of increased premiums, Hendler stated that any concerns that the bill would raise costs for insurers were deeply unfounded. “The Property & Casualty Insurers Association of America has a report from January 2013 specifically outlining aftermarket parts,” she said. “Their estimation is that if a complete ban on aftermarket parts was in place, it would mean a 2.6-percent increase in the total liability and physical damage premium…or an average of $24 per year per car.” As the legislation only addresses the first three years of the vehicle, WMABA feels that premiums will not be affected primarily because the policies are more than likely priced based on use of genuine parts. It also includes the option for the consumer to sign consent at the time of repair. Both clauses show an expansion of consumer options, rather than the reduction the opposition poses. the opposition steps in Bruce Bereano, a lobbyist for LKQ/Keystone, stressed that aftermarket parts typically sell at 26 to 50 percent less than OEM products while offering the same quality. Additionally, he stated that many aftermarket parts are made in the exact same plants that produce original equipment parts. “The bill creates a monopoly,” he said. “It is not about capitalism.” Clarence Ditlow, executive director for the Center for Automotive Safety, noted that there were 43 safety recalls of six million OEM automobile hoods between 1980 and 2012. “The underlying assumption of SB487 that OEM parts are superior to aftermarket parts is simply wrong,” he insisted. “Just look at the recalls.” Jack Gillis, executive director of the Certified Automotive Parts Association (CAPA), shared his organization’s view that the bill would severely limit consumer choice, create an OEM parts monopoly, restrict the competitive marketplace and increase costs for Maryland drivers. “We consumers are outraged when you have a plastic bumper that
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can cost as much as a refrigerator [and] a fender that can cost as much as a laptop computer,” he said. “Why does that exist?” Additionally, Gillis urged the Committee to question the collision industry’s assertion that the use of an aftermarket part would void a vehicle’s warranty with the original manufacturer. “The Federal Magnuson-Moss Warranty Act prohibits the tying of a part to the original product’s warranty. It’s absolutely illegal,” he insisted, adding that a non-OEM supplier should be held responsible if its part is determined to have caused the failure in another part, but that a warranty is not voided simply because an aftermarket part is used. Gillis’ characterization is only partly true; it does not void the manufacturer warranty in whole, but those parts replaced with non-genuine parts will not be covered. Hendler contends that consumers had a warranty entirely intact prior to the collision. Part of getting them back to preaccident condition is not diminishing the value of their vehicle or reducing the warranty coverage they already had. This isn’t about repairers doing something wrong, but more about what is the right thing insurers should be doing. On the subject of insurer-mandated parts procurement, State Farm lobbyist Marta Harding noted that the parts vendor provisions under attack by WMABA’s bill have been in place in the State Farm Select Service contract since 2007, adding that shops agree to these terms on a strictly voluntary basis. “[There] is a group of about 200 body shops in Maryland that have voluntarily applied to be a Select Service shop, have met the criteria and have entered into a contract with State Farm guaranteeing certain things that you wouldn’t get in a typical repair shop situation,” she said. “It is totally voluntary; if they are unhappy with the terms of that relationship, they can terminate it at will and continue to serve State Farm customers who did not opt to use Select Service shops.” round two The debate over the WMABA Parts Bill carried over into a February 21 hearing before the House Economic Matters Committee. Delegate John A. Olszewski, Jr., the bill’s sponsor on the House side, made it clear from the beginning that this was a consumer-based legislative effort. “As we all know, if we have an accident with a new vehicle, first we’d like to think that we’re entitled to legitimate manufacturer replacement parts,” he noted. “Moreover, we trust that those who are doing the work on our cars are best equipped to decide and know what’s best for
the consumers – not anyone else.” Similar to their displays at the Senate hearing, members of the opposition turned out to the House hearing in full force. In his return performance on behalf of LKQ, Bereano suggested that concerns over aftermarket parts were a matter of misunderstood terminology. “‘Aftermarket part’ only means when it was manufactured; it was manufactured after the car originally was put together and sold,” he reasoned. “It does not mean – as the proponents [of this bill] are indicating – that it’s an inferior and less safe or less substantial part than the OEM.” Kimberly Robinson, a representative from USAA Insurance and the Maryland Insurance Alliance, argued that auto insurers already provide for the use of OEM because consumers can purchase an endorsement for OEM in their policies - thus leaving the choice up to policyholders and fostering a more competitive marketplace. “They’re not cookie cutter policies,” she explained. “Insureds can look for the features that are most important to them when they make their purchasing decisions.” Gillis added that passage of the bill would actually harm the business lives of Maryland collision repairers, saying, “One of the most perplexing aspects of this bill is that body shops supporting it will lose business because they will have fewer vehicles to repair as more cars are totaled.” Despite this testimony, Delegate Delegate Richard Impallaria remained unimpressed. “Let’s be honest here…You guys have not produced information showing what your crash tests are [for aftermarket parts], and no one has produced any information here on how it’s going to drive up the [premium] rate,” he said. “And this great monopoly of car dealers who are going to make a fortune? I don’t see any of them sitting here.” Gillis responded to the Delegate’s critique by stating that he would supply the requested information to the Committee on behalf of his organization. Laura Gay, owner of Fort Washington Auto Body in Oxon Hill and Sullivan Auto Body in Sunderland, testified on behalf of the opposition, supporting the removal of the three-year prohibition on aftermarket parts. However, she testified in support of the parts procurement portion of the bill, stating that she has been successfully using OEConnection for nearly a decade and didn’t see a legitimate need to have another system implemented at her businesses. “We’re efficient; we do a very good job of getting our parts ordered,”
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Executive Director’s Thoughts At press time, WMABA is still working through the voting and working processes of the legislation in both the Senate and House. Only a couple of weeks remain in the session. Tireless efforts have been continuing to not only have legislators support the consumer issues, but to reply to all the rhetoric from the opposition that is bombarding them on a daily basis. With strong support from committee members on both sides, the opposition has had a hard time giving their argument legs when it has been crippled from the start. It was made clear during the hearings that the insurer opposition will rest on their default answer to any piece of legislation that addresses their marketplace conduct by saying that the bill will raise premiums – without supplying the necessary documentation to prove it. I urge all readers to take the time to listen to or watch the audio and video recordings from these hearings, as I think that it shows how insurers and aftermarket parts vendors will stretch the truth to the point of breaking just to protect their pocketbooks.
The aftermarket parts vendors believe that the insurance industry buy-in to push their product should equate to perceived quality. Without a mandated recall process in place, or sufficient testing done, how can we know that these parts are safe - especially when considering they have problems with fit and finish, or don't even look similar in material to a genuine part? Some insurers will even discontinue use of known unsafe parts and yet never alert those policyholders who they know received them. By categorically addressing the oppositions’ thinly-veiled attempts within our own testimony, the association was able to effectively show the committee members how this important consumer legislation is only being opposed by those who profit off the backs of the collision repair industry and, for that matter, their own customers. For this legislation, our association is the “whistleblower” and can stand up to these unfounded remarks because it’s the right thing to do for the consumer.
- Jordan Hendler
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she offered. “We haven’t had any issues with that, and we really don’t need anyone coming in and telling us how to do that. It is correct that [PartsTrader] is completely optional, but if I decide to tell State Farm or any other insurance company that chooses to do it [that I won’t use it], obviously I’m going to see less work…I can’t afford to tell State Farm ‘no thank you,’ because I need their business.”
shop Floor struggles As the aftermarket parts and insurermandated procurement issues continue to grow in the Maryland Assembly, repairers in other markets are experiencing their own fair share of woes when using non-OEM products. A parts supplier who serves customers in Northern Virginia and surrounding areas, Rick Polansky of B&H Auto Parts and Paradise Auto Parts says that shops throughout the region are facing considerable obstacles in trying to get vehicles back on the roads in a timely manner while using the parts written by insurers. As he explains, “[Shops] say, ‘We have to order a hood and wait for it to come in. We go to bolt it on and we see that the bolt holes don’t align, and we’re being forced to use these aftermarket parts on vehicles that are three to five years old, and it’s just not what the OEM manufacturer used on this vehicle in the first place. How can we be proud of our work and say that we’re repairing a vehicle to pre-collision status using parts that aren’t made by the manufacturer and are of inferior quality?’” Like many parts professionals serving Virginia and Maryland repair facilities, Polansky is skeptical of the arguments made by the aftermarket representatives at the recent Senate and House hearings. “Aftermarket parts do have a place in the marketplace, but it’s mainly on older vehicles or vehicles that have been declared a total loss [and] received a salvage certificate – and if the customer wants to repair it at a significantly lower cost, is not worried about preserving the integrity of the vehicle and just wants to get the vehicle back on the road,” he says. Regardless of where the Parts Bill campaign goes from this point, WMABA has already succeeded in shining a penetrating light on some of the repair industry’s most frustrating issues. The truth is out there, and perhaps that’s the greatest victory of all. H&D April 2014
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An association fostering the exchange of ideas, and providing a voice and support for the collision repair professional.
OFFICERS
PRESIDENT: Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061
VICE PRESIDENT: Torchy Chandler torchy.chandler@gmail.com 410-309-2242
SECRETARY: John Krauss jkrauss@craftsmanautobody.com 703-534-1818
TREASURER: Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155
BOARD OF DIRECTORS
Rodney Bolton rbolton@aacps.org 410-969-3100 ext. 250
Mark Boudreau crashdaddy@aol.com 703-671-2402
Position Your Business as a Leader! Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment. WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, and VA collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities. Automotive collision repair facilities in Maryland, Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level. WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer and Dolly.
Kevin Burt kevinburt@walkermillcollision.com 301-336-1140
EXECUTIVE DIRECTOR: Jordan Hendler jordanhendler@wmaba.com 804-789-9649
PAST PRESIDENT: Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
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Bobby Wright bobby@burkevillebodyshop.com 434-767-4128
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Contact Executive Director Jordan Hendler to find out how WMABA can amplify YOUR voice in the collision repair industry.
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ADVERTISERS’ INDEX Alexander & Cleaver............................21 Alexandria Toyota ................................31 All Foreign Used Auto..........................41
Audi Group ..........................................17 Axalta Coating Systems ......................4
BMW Group ........................................24-25 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3
BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................43 CCC One ............................................7
Chesapeake Automotive Equipment ..46
Empire Auto Parts................................31 Future Cure ........................................26 Honda Group ......................................9
Hyundai Group ....................................11
Koons Ford ..........................................18 Mazda Group ......................................40 MINI Group ..........................................13
MINI of Baltimore County ....................IBC Mitsubishi Group..................................27 Mopar Group ........................................6
Nissan Group ......................................45 O’Donnell Honda ................................41 Packer Norris Parts ............................23
Porsche Group ....................................19
PPG ....................................................IFC P&L Consultants ..................................34 Russel Toyota ......................................21
Safety Regulations ..............................46 Subaru Group ......................................42 Tire Distributors Inc. ............................18
Toyota Group ......................................35
Valspar Automotive..............................OBC VW Group............................................15
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