Hammer & Dolly February 2014

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A Look at WMABA's Legislative Agenda - page 48

February 2014 Volume 8, No. 2 $5.95 www.wmaba.com

Inside this issue: Welding the Right Way NORTHEAST速 Preview www.grecopublishing.com

Leaving PartsTrader

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CONTENTS

COVER STORY A REAL CLAIM STORY FROM AN EXECUTIVE DIRECTOR

FEBRUARY

WMABA’s Jordan Hendler shares her personal tale of steering and frustration in the claims-handling process.

2014

NATIONAL NEWS 16 NORTHEAST® 2014 to Hit NJ in March

Industry pros gear up for the east coast’s top industry show.

BY JOEL GAUSTEN

DEPARTMENTS

FEATURE 26 Decisions & Dilemmas: Living with (and without) Parts Mandates

Shops deal with the consequences of leaving – or staying with – DRPs that have parts programs.

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Calendar of Events

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Editor’s Message JOEL GAUSTEN

BY JOEL GAUSTEN

TECHNICAL FEATURE 34 The Issues with Welding In Collision Repair An overview of the right way to perform welds on today’s vehicles.

BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE

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DON BEAVER 14

NewsFlash

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Headliners

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INDUSTRY ROUNDTABLE 38 State Associations Share Successes,

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Challenges & Goals for 2014 & Beyond

Association reps from across the country share their experiences representing and improving the industry.

President’s Message

Technician of the Month: Roy Zamostny Advertisers Index

COVER: ©istockphoto.com/pandpstock001 THIS PAGE, CLOCKWISE FROM TOP:

2014 LEGISLATIVE UPDATE 48 The Maryland General Assembly Session is Off & Running! What Does it Mean to You?

©istockphoto.com/pandpstock001 ©istockphoto.com/alexdans ©istockphoto.com/Adyna

A look at WMABA’s efforts to strengthen the industry – and what you can do to help.

©istockphoto.com/fatchoi ©istockphoto.com/wildpixel ©istockphoto.com/enviromantic

BY ROBIN SHAIVITZ

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Industry training opportunities and don't-miss events.

CALENDAR OF

EVENTS

NORTHEAST® Automotive Services Sh ow

March 21-23, 2014

Meadowlands Exposition Center, Sec

aucus, NJ

For more information, visit www.aaspnjn ortheast.com

CLASS LISTINGS February 4, 2014

AUTOMOTIVE FOAMS Automotive Collision Technologies, Randallstown, MD

February 6, 2014

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS State Farm Silver Spring, Silver Spring, MD

February 10, 2014

February 18, 2014

RESTRAINT SYSTEMS DAMAGE ANALYSIS Laslie’s Auto Body, Lynchburg, VA

WATERBORNE PRODUCTS, SYSTEMS & APPLICATION Best Western Westminster, Westminster, MD

STATIONARY GLASS N T Auto Body Inc., Alexandria, VA

WELDED AND ADHESIVELY BONDED PANEL REPLACEMENT Keystone Linthicum, Linthicum, MD

VEHICLE TECHNOLOGY & TRENDS 2014 Canby Motors Collision Repair, Aberdeen, MD

REPLACEMENT OF STEEL UNITIZED STRUCTURES King Volkswagen, Gaithersburg, MD

VEHICLE TECHNOLOGY & TRENDS 2014 Tristate Collision Center, Columbia, MD

STRUCTURAL STRAIGHTENING STEEL Frederick Co. Career & Tech, Frederick, MD

COSMETIC STRAIGHTENING ALUMINUM Kunkel’s, Baltimore, MD

WHEEL ALIGNMENT & DIAGNOSTIC ANGLES State Farm Silver Spring, Silver Spring, MD

SUSPENSION SYSTEMS Frederick Co. Career & Tech, Frederick, MD

COLOR THEORY, APPLICATION, TINTING & BLENDING Automotive Collision Technologies, Randallstown, MD

February 11, 2014 February 11, 2014

February 12, 2014 February 13, 2014 February 13, 2014

February 13, 2014

BLUEPRINTING PROCESS & DAMAGE DISCOVERY Baugh Auto Body, Richmond, VA

February 18, 2014

March 13, 2014

February 20, 2014

March 18, 2014

February 27, 2014 March 4, 2014 March 6, 2014

March 11, 2014

STRUCTURAL STRAIGHTENING STEEL Canby Motors Collision Repair, Aberdeen, MD

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS Frederick Co. Career & Tech, Frederick, MD VEHICLE TECHNOLOGY & TRENDS 2014 Keystone Linthicum, Linthicum, MD

March 18, 2014

VEHICLE TECHNOLOGY & TRENDS 2014 Best Western Westminster, Westminster, MD

March 20, 2014

SECTIONING OF STEEL UNITIZED STRUCTURES King Volkswagen, Gaithersburg, MD

March 27, 2014

SECTIONING OF STEEL UNITIZED STRUCTURES Frederick Co. Career & Tech, Frederick, MD

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

SUBSCRIBE TO the official publication of the Washington Metropolitan Auto Body Association today!

Subscriptions are a free member benefit to all WMABA members (Washington, DC, MD and VA), and $34.99 to all others for a one-year subscription.

For more information, please contact WMABA Executive Director Jordan Hendler at (804) 789-9649 or via email at jordanhendler@wmaba.com.

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Joel Gausten

EDITOR’S

(973) 600-9288 tgpjoel@verizon.net

MESSAGE BACK TO SCHOOL

Any active WMABA member and regular reader of this magazine knows that there are some huge issues affecting this industry right now. More than a few of you are now experiencing the PartsTrader system for the first time through your State Farm DRP, while the rest of you are waiting to see how this situation will ultimately impact you as a non-Select Service shop. Couple that with the increased workload common of this time of year, and it is completely understandable if you feel pretty edgy these days. While these matters are extremely important, there is another facet of this industry that you must also consider: Training. I know, how in the world can you find time for that with so much going on? How can you afford to send your techs to a class when you need every person in your shop to handle the work orders greeting you every day? I sympathize with the restrictions placed on your time, but you need to realize that nothing you do in your shop matters if your staff doesn’t have the education necessary to properly fix the vehicles in your bay.

If you read the Technical Features in Hammer & Dolly on a regular basis, then you

know that writers Larry Montanez and Jeff Lange are regularly shocked by the conditions they see in shops across the country. Larry has told me on more than one occasion that he sees multiple shops not keeping up the equipment and technology needed to repair a vehicle per OEM recommendations. As a husband and parent, that truly scares me. As an automotive magazine editor, I urge you to read this month’s Technical Feature on welding – and every other Technical Feature we publish in 2014. I encourage you to contact WMABA Executive Director Jordan Hendler and/or members of the Board of Directors if you would like more information on educational opportunities in your area. Most of all, I request that you let us know if there is a technical topic that you would like us to explore in this publication. These are the most challenging times any of us have ever experienced in this field, and we want to help.

Even during a crazy day, stop and take a good look at the equipment and training you have at your business. If you discover some areas in need of improvement, please don’t hesitate in taking the necessary steps forward. After all, what’s the point of debating over parts profits when you don’t know how to properly install those parts in the first place?

H&D

©www.istockphoto.com/IvelinRadkov

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

Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128

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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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.

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PRESIDENT’S

MESSAGE

Don Beaver

(443) 539-4200 ext. 17601 Dbeaver@antwerpenauto.com

DON’T GIVE UP THE SHIP

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department. This will also mean shops will have to hire additional staffing due to increased administrative requirements, but do so while making less money.

These procurement programs aimed at parts are just the tip of the iceberg. Once these systems are in place, you can believe they will be coming after materials, paint and any other profit center you may use. Anyone who reads any of our industry publications has been seeing stories about this for the last two (or possibly more) years. Most know who the players are, but rest assured there are a lot of others waiting in the wings to see how all of this plays out. If this is able to gain traction in our market, our industry as we know it today will be gone.

Now, let me be clear: I am not against part procurement programs. Quite the opposite; I use electronic part ordering every day and am more efficient as a result. But these are programs that we chose, not programs that were mandated. The systems we use are a win/win for all parties involved. The more efficient we are, the more vehicles we can repair.

The more vehicles we repair, the more profitable we are. The more profitable we are, the more we can reinvest into our business. More training, better equipment… Heck, maybe we can even put another nickel in our pockets. This is also a win for the insurance companies because the more efficient we are, the better our cycle time is. The better our cycle time, the lower the rental costs and the faster our customers are back into their own vehicles. But nobody wins when cumbersome, antiquated and one-sided mandated programs are forced down our throats.

With all that said, it’s not quite time to give up the ship. We are not going to go quietly into the night. We (WMABA) and you (our membership) still have a say – and we’re going to use it. This is just the beginning of what could be a long, hard battle. When we call for reinforcements, know that we are talking to you. Be ready to help when we ask. Hang in there; there’s more to come… H&D

©www.istockphoto.com/vaeenma

Sometimes, I sit back and think about how much the auto body repair industry has changed since I entered this field. Most days, it seems like just yesterday I was sanding and masking cars for paint, sweeping floors and emptying trash cans. But other days, I think, “Man, am I tired. Why am I still doing this?”

Then I realize why, and I find that second (and sometimes third) wind. I do this because I love this industry, I love what I do and I love the people in it. They are my extended family of sorts.

When I joined the WMABA Board eight years ago, the association was at a crossroads with what some would refer to as “a changing of the guard.” For most of the first year, I wondered what I had gotten myself into. At that point in time, I wasn’t exactly sure what WMABA was or what they did. I just knew that I didn’t like how outside influences were affecting our business. I kept thinking, “If not me, then who?”

At our most recent WMABA meeting, I found myself both humbled and honored to be elected WMABA’s new president. There have been many passionate and dedicated people to hold this position, and I hope I can carry that torch forward in 2014. There really are some big shoes to fill, and I personally would like to thank all of the past presidents, past and present Board members and all of our membership for making this association what it is today. This year promises to be one of the important eras in our industry’s history. Without sounding like Chicken Little and screaming, “The sky is falling,” there are changes coming our way that have never had to be dealt with before. I am referring to insurer-mandated part procurement programs. These programs can and may prevent shops from being able to purchase from vendors that do not participate, in some cases to the extent that a dealer-owned body shop could not even purchase from their own parts

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NEWS

FLASH

News and reports from across the nation.

Judge Denies State Farm Protective Order in Gunder Case

On December 20, Polk County, FL Judge John E. Kirkland denied State Farm’s request for a protective order to prevent Florida-based shop owner Ray Gunder (Gunder’s Auto Center, Lakeland) from distributing depositions taken during his case against the insurer with other body shops across the nation. The request stemmed from Gunder’s online distribution of a six-hour deposition by State Farm claims adjuster Christopher Robinson in a short-pay case initiated by the shop against the insurer.

“I share every deposition,” Gunder says. “[Robinson’s] seemed to be one that State Farm decided to take a stand on. They had been trying to limit what I was sharing, and of course I refused not to share anything.”

According to Gunder, a judge had previously ruled that State Farm had the right to identify portions of its depositions that it considered to be discussing “trade secrets” in order to prevent distribution, with the Court ultimately determining whether or not the insurer was correct in its selections. However, nothing in the Robinson deposition was determined to involve “trade secrets” prior to Gunder’s distribution.

Now that State Farm’s request for a protective order has been denied, Gunder is determined to continue sharing information from his legal journey as a service to his industry peers.

“I could have kept everything I’m doing in-house, and my victory would have been my victory, but what is that doing for other shops across the country?” he says.

Prior to the December 20 ruling, Judge Kirkland also denied State Farm’s request for a summary judgment in Gunder’s suit against them for a short-pay in the use of OEM suspension parts in the repair of a 2011 Toyota Camry.

“State Farm tried to hide behind their policy language to use any type of aftermarket or used suspension, and that since the insured had bought that policy, there was nothing that anyone could do,” he says. “What we had to do was present to the judge how it was putting the consumer in harm’s way.”

In its November 26 Order, the Court found that the “overly long and strenuous discovery process” failed to prove State Farm’s position, as the terms of its contract allowed for both OEM and recycled parts and that “Florida statutes involving the use of recycled parts seemingly only address the use of non-mechanical sheet metal panel type parts.”

Gunder believes that used suspension parts pose a considerable safety risk.

“How does anyone know if that used suspension wasn’t involved in a high-speed chase?” he asks. “There is so much that can be wrong with that suspension; I’m not putting it on somebody’s car.”

According to Gunder, the difference between the used suspension and an OEM counterpart in this case was approximately $250. Despite the relatively small amount at stake, Gunder believes that addressing short-pays and parts usage issues in this manner could have a long-lasting effect on the entire collision repair industry.

“It’s not just a couple hundred dollars; this is something that goes on nationwide,” he says. “It’s much bigger than this little amount of money; what we’re trying to do is fix a billion-dollar problem.”

Gunder says that he is ultimately concerned with protecting the consumer from hazardous repairs resulting from a focus on saving money.

“It is a good feeling knowing that you can educate one consumer at a time,” he says. “It’s time consuming, but I’m convinced that it’s the right thing to do.”

Gunder has at least 40 other cases pending against State Farm as of this writing. H&D

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HEADLINERS The latest news and notes.

MT SHOP FACES OSHA FINES AFTER FATAL FIRE

The Occupational Safety and Health Administration has issued a report on Rick’s Auto Body, the facility where a technician suffered fatal burns in an August 19 fire. As reported in the October 2013 issue of Hammer & Dolly, 44-year-old Bruce Hall died on the morning of August 20 at Harborview Medical Center in Seattle from a vapor explosion from lacquer thinner that ignited from a static charge in a car bay at the back of the shop the day before. After an extensive investigation, OSHA found nine violations at the shop, resulting in a $51,100 fine.

According to a report in the Missoulian, Hall was pouring lacquer from a barrel into a smaller container through a funnel when the fumes exploded.

“The gravity of the violation is serious,” said Jeff Funke, OSHA’s area director in Billings, in the newpaper’s story. “The hazards that were noted have the ability to cause death or permanent disability, and that occurred.”

Funke added that there must be a physical clip between the containers to equalize potential static electricity buildup when distributing flammable or combustible materials between the original container and another one.

OSHA’s report on the shop indicates that the facility didn’t have appropriate grounding or bonding, and that flammable liquids with a flashpoint below 100 degrees Fahrenheit were dispensed into containers without the nozzle and container being electrically interconnected.

Some of the other OSHA violations at Rick’s Auto Body include:

• Open-sided floors and/or platforms four feet or more above ground level that were not guarded with standing railing and toeboards in the compressor room, subjecting employees to the possibility of being struck by items falling from above; • The distillation room not having a liquid-tight raised seal or ramp of at least four inches in height to prevent potential spills from leaking into other areas; and • Improper storage of flammable or combustible liquids in the distillation room. Several flammable liquids were stored in five-gallon, open-top plastic buckets without secondary containment to contain leaks.

A PDF of OSHA’s full report on Rick’s Auto Body is violation is available at http://missouli an.com/rick-s-auto-body-osha-citations/ pdf_0f6b45f4-52ff-11e3-8b76-001a4bcf8 87a.html. H&D

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NATIONAL

The latest from WMABA members and supporters.

NEWS O

NORTHEAST® 2014 to Hit NJ in March n March 21-23, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) will host the 37th Annual NORTHEAST Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ. The largest regional show of its kind in the country, NORTHEAST 2014 will feature hundreds of exhibitors showcasing the hottest products, newest technology and most valuable industry information. The Show’s proximity to the WMABA markets make it an ideal event for anyone looking to experience all that the industry has to offer without traveling to national shows like SEMA and NACE. This year, NORTHEAST Platinum Show sponsors BASF have stepped up their involvement in the festivities by arranging a very special guest appearance by TV star Chip Foose (Overhaulin’) on Saturday, March 22.

“Chip Foose will make a fantastic addition to our schedule this year,” offers AASP/NJ President Jeff McDowell. “His guest appearance at the show will only add to the full slate of industry events and educational seminars we have planned for our 37th year.”

A decades-long NORTHEAST tradition, the annual East Coast Resolution Forum & Leadership Meeting will return on Friday, March 21. As in previous years, the afternoon gathering will feature attendance and updates from industry associations from across the country. The Society of Collision Repair Specialists (SCRS) will once again co-host the event with AASP/NJ. For SCRS Executive Director Aaron Schulenburg, the Forum provides an incomparable experience for repairers looking to connect with their peers in other markets.

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“When the event started, it was a different day and age; there wasn’t the level of communication that there is today,” he offers. “In the onset of the Forum, it was about gathering people to exchange information, which is something we do a lot more of today through national networks like SCRS just because of the advancements in technology and communications. But that doesn’t replace that faceto-face value of getting together with your peers and networking and collaborating in person.”

Schulenburg believes the ongoing success of the Forum illustrates the industry’s willingness to work together to address common issues and achieve mutual goals.

“Not only has [NORTHEAST] been a leader in the region, but it’s also demonstrated how other regions can help bring information to the market at a local level through the collaboration of multiple state associations,” he says. “It ties right into what SCRS is about, which is being a network of different associations and repairers pulling together for the common good of the industry.”

Perhaps best of all, NORTHEAST gives shops, vendors and other industry pros in its namesake region an opportunity to experience a weekend on par with events that would otherwise require a plane ride to a major city like Las Vegas. Whether you’re in Maryland or Morris County, NJ, NORTHEAST is accessible and affordable.

“There are a lot of good regional shows out there, and there are a lot of folks in different areas of the country who are doing good work,” Schulenburg says. “But the NORTHEAST Show is an institution in that regional trade show space, and one that I think has taken a lot of cues from national shows to try to provide that higher level of opportunity to the members of that area.”

“NORTHEAST has always been much more than a trade show; it’s a chance to be with people who share your love for the industry,” adds McDowell. “Thanks to the help of BASF and our many exhibitors, we’re going to be able to offer three of the best days anyone has ever had in this industry.”

For more information on NORTHEAST 2014, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show YouTube page (www.youtube.com/user/AASPNJNORTHEAST) or on Twitter @AASPNJNORTHEAST. Free online pre-registration is available at www.aaspnjnortheast.com/registration.shtml. H&D

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TECHNICIAN OF

Hammer & Dolly chats with the WMABA community’s best and brightest.

THE MONTH: Roy Zamostny

If you ever need proof that this industry can offer a technician long-lasting success and security, have a chat with Roy Zamostny.

A second-generation repair pro and the oldest of 10 children, Zamostny has spent the last two of his 48 years in the industry with Criswell Collision Center in Annapolis, MD, where he enjoys the ability to work on a variety of vehicles.

“I like it here; it’s a nice shop with all the equipment you need to do your job,” he says. “It’s a clean building to work in, and a good environment.”

Zamostny’s life in the automotive world began when he was 10 years old. Back in those days, his dad Leroy Sr. worked on cars in the garage in the backyard. Excited by the sound of torches and the sight of sparks, he knew even at that young age that a life working on cars was for him.

“I have my father to thank for everything I know,” he says. “He worked at a lot of different places, but he also had a garage

out back that he worked at in the evenings and on weekends.”

By the time he was in his early teens, Zamostny was working part time as a painter at Al Packer Used Cars in Baltimore, where his dad also worked. Later, he spent his first five years after high school working on tractor trailers before moving on to collision repair. Speaking with Hammer & Dolly nearly 50 years after he started working on cars, Zamostny still expresses pure enthusiasm for his profession.

“I like working on all the newer-style vehicles as opposed to something that’s 10 years old,” he says. “There is something different here every day.”

Zamostny’s job at Criswell Collision is a true family affair, as his brothers Bernie (service writer) and Kenny (a fellow technician) both work for the legendary Maryland facility.

Criswell Body Shop Manager Kevin Marvin is pleased to see his longtime colleague spotlighted in the pages of Hammer & Dolly.

Roy Zamostny has been an active member of the industry for nearly 50 years.

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“I have known Roy for 20-plus years,” he says. “We worked together for a few years in the early ’90s at another shop in the area before each of us moved on to other opportunities. Roy always impressed me with his skill and experience, so when a position became available at Criswell Collision, I knew he would be a good fit. Many of the younger techs look up to Roy and rely on him for advice and guidance. He’s a valuable member of our team, and we appreciate his well-deserved recognition as Technician of the Month.”

In addition to producing high-quality work every day on the job, Zamostny was one of the first repairers in the area to attend Audi’s new Academy in Ashburn, VA. “It was almost like being in a military boot camp,” he says of the experience. “My father worked on old Jaguars and they had aluminum panels on them in the ’60s, so working on aluminum wasn’t that out of the ordinary for me. It’s just that the whole car is aluminum now, and of course Audi has their own way of welding and putting their cars together.”

Not surprisingly, Zamostny has experienced some notable changes to his industry over the years – especially when it comes to how shops and insurers do business.

“It seems like insurance companies have more control now,” he observes.

“When I was working with my dad, the shops told the insurance companies what was going to go down. Before, you could write an estimate and say, ‘This is how much we need,’ and they would pay it most of the time. Nowadays, you really have to fight tooth and nail to get everything.”

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When not at the shop, Zamostny finds time to work on cars on nights and weekends in his home garage – a tradition that has existed in the family for decades. When at the family garage, he often enlists his brother Steve, a professional painter for an area facility, to handle the refinishing.

“Whenever I have something to fix at home, he does all the painting for me so I can spread around the side work,” he says.

When asked to offer words of advice for tomorrow’s technicians, Zamostny recommends that they get familiar with proper repair procedures as soon as possible.

“If you’re going to repair certain manufacturers, you have to keep up on their information and instructions on how to fix their vehicles,” he says. “It can be a good living if you stay the course.”

Away from cars, Zamostny belongs to a local gun club and enjoys spending time with his wife, Kathleen. As far as parenthood, the only children he’s ever had are the ones parked in the garage.

“I was the oldest of 10 kids, so I helped out doing all of that and more or less had enough of it,” he says with a chuckle.

With an impressive career already under his belt, Zamostny looks to the future as a further opportunity to expand his craft and love of automobiles.

“Every car is different,” he said. “A vehicle might look like it was wrecked the same way as the one next to it, but it never is. It’s always a challenge to fix it.” H&D If you would like to nominate someone as Technician of the Month, please contact Hammer & Dolly Editor Joel Gausten at tgpjoel@verizon.net.

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HEADLINERS The latest news and notes.

Are your Parts Orders running on empty?

The best way to increase your wholesale parts business is to reach the automotive repairers.

And the best way to reach automotive repairers in your area is through the pages of Hammer & Dolly. Let us show you how!

Contact Norman Morano at 1-800-991-1995

LKQ-KEYSTONE ISSUES AFTERMARKET WHEEL RECALL As this issue of Hammer & Dolly went to press, reports surfaced that LKQ-Keystone had initated a recall in late October on an aftermarket replacement aluninum wheel because of potential defects. The recalled product (ALY63934U20N) is a seven-spoke wheel design that contains part number ALY99435U20N inside the wheel’s casting, as well as the TWC logo. The part is said to have been sold between September 1, 2010 and April 30, 2013. As of this writing, only shops and consumers in Connecticut have received the recall notice. The specfic reasons for the recall were no known at press time.

The use of non-OEM wheels remains a controversial practice in the collision repair industry, as evident in this June 2004 statement by the Ford Motor Co.: Ford Motor Company recommends use of replacement tires and wheels that are the same size and type as those originally provided by Ford Motor Company.

Use of any tire or wheel not recommended by Ford Motor Company can affect the safety and performance of the vehicle, which could result in an increased risk of loss of vehicle control, vehicle rollover, personal injury and death. Additionally, the use of non-recommended tires and wheels could cause steering, suspension, axle or transfer case/power transfer unit failure.

Hammer & Dolly will provide updates on this story as it develops. H&D February 2014

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Shops take on the industry's biggest issue.

FEATURE DECISIONS & DILEMMAS:

Living with (and without) Parts Mandates

by Joel Gausten

With PartsTrader currently active in 21 states (including Maryland and Virginia), Hammer & Dolly reached out to shops that have chosen to step away from the program – as well as the latest company looking to jump into the parts procurement game – to gain new insight into an ever-complex issue.

Walking Away In business since 1986, Taylor’s Auto Body in Charlottesville, VA was supposed to stand as an example of how successful a DRP relationship with State Farm could be. Originally signing on with Service First in 1998, the 15,000-square-foot facility enjoyed years of positive experiences with the nation’s largest auto insurer. “[Service First] operated with the premise that we were doing quality repairs and providing good service at a competitive price,” explains Shop Manager Chris Taylor.

However, Taylor grew concerned last November, when his shop received notice of PartsTrader’s impending arrival in Virginia. An active participant in WMABA activities and events, Taylor had learned about the parts procurement program early enough to decide that it wouldn’t find a home at his business.

“There’s no benefit to us or the consumer,” he says. “We’re not against change or technology; we’ve upgraded a lot with our computer networks and the equipment in the shop. When we looked at [PartsTrader], there was no benefit from it. I don’t have a parts problem. If the part is available, I can get it quickly. I don’t need to have a third party involved in our parts ordering process. Also, the software looks cumbersome.”

This negative impression of the PartsTrader system was solidified when Taylor’s Auto Body personnel attended the explosive discussion on insurer-mandated parts procurement that broke out at the Collision Industry Conference in Las Vegas in November. (“Against the Tide,” H&D, December 2013).

“It just confirmed everything that we felt prior to going,” he offers.

“It was very obvious that a lot of people don’t want to take part in it.

There are a lot of people who are not able to remove themselves because of the fear of being blackballed. We had that concern as well.

Just because there are anti-steering laws, the insurance companies still have ways of deterring people from coming to your facility when

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you’re not on the program. Customers think that if you’re approved by the insurance company, then everything is great – which we know is not true in reality. We only want people to come here if they want to come here; we don’t want people to feel like they’re forced to come here.”

In Taylor’s mind, utilizing PartsTrader would harm his business’ commitment to supporting other automotive businesses in his community.

“Every employee we have lives here, their kids go to school here and we buy every part we possibly can right here from our local dealers,” he says.

With PartsTrader inching closer to his market, Taylor brought in legal counsel to review the terms of his Select Service agreement.

“Basically, our attorney said, ‘There is no way from a legal standpoint that I would advise you to sign that agreement,’” Taylor shares.

“It’s really not much of a contract – it’s just a demand list.”

With his attorney’s words weighing heavily on his mind, Taylor walked away from his agreement with Select Service. Not surprisingly, he has already experienced changes to how State Farm claims are handled at his shop now that he is no longer partnered with the insurer. Although his shop has used CCC since 1992, that now appears to be a problem.

“It doesn’t matter if it’s one line or 20, we always input [the insurance estimate] into CCC,” he says. “When we were on their program, State Farm paid us off of CCC. Whatever the flat rates were, we always used that [system]. Now that we’re not on their program, their staff writes on the Mitchell flat rate and every single one of them comes out less. We are trying to resolve this problem with management, and hope to resolve it soon.”

Taylor adds that he is relying on “advertising [through] TV, the [shop] website, Facebook, social media – everything that we possibility can to keep our name and face out there and to make the public

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aware that they don’t have to go where [insurers] try to send them.”

Considering what has been said about insurer-mandated parts procurement in recent years, Taylor is amazed that more shops aren’t standing up and walking away from State Farm over the PartsTrader issue.

“If you sit down and actually look at what PartsTrader is, what it really does and what it is trying to accomplish – and the effect that could have on your business – I’m surprised that other people have not backed away from it,” he says.

While shops’ ultimate reaction to PartsTrader in the Maryland and Virginia markets largely remains to be seen, the question of whether or not to go along with the State Farm mandate has already been answered by one of Texas’ biggest industry players. As previously reported in our October 2012 issue, Sewell Lexus in Dallas was terminated from their Select Service agreement in late July after refusing to implement PartsTrader in the business. At the time, Select Service jobs comprised 22 percent of their overall collision repair business. Although several of the dealer’s most loyal State Farm customers have continued to utilize his department’s services, Sewell Lexus Body Shop Director Jim Sowle notes that the insurer appears to be stepping up its steering efforts.

“A lot of [customers] tell us that they were told they couldn’t bring [their vehicle] to us, or that it was going to take longer and cost them more money,” he says.

In addition to cutting ties with State Farm, Sewell Lexus has dropped two-thirds of their total DRP relationships in the last two years.

Sowle says that the carriers that were let go focused too much on discounts and alternative parts usage for his liking.

“If they stop being concerned about the quality repair and stop wanting to pay for the quality of repair, then it’s probably not going to be a good fit for us,” he says. “We’re going to do what’s right for the customer.”

Looking ahead, Sowle is committed to marketing his services to customers who purchase vehicles at the dealership.

“We’re trying to service a customer, not an insurance company,” he offers. “I don’t mean to say that we’re combative with insurance companies, but if a person buys his or her car at Sewell, we want to take care of [that person’s] collision-repair needs. The insurance is secondary.”

Sowle gained greater insight in the national industry’s response to PartsTrader when he appeared as a guest panelist at the same CIC attended by the Taylor’s Auto Body crew. The contentious atmosphere of the discussion left a strong impression on him.

“I think it’s clear that the repairers are getting more and more separated from insurance companies as far as the alignment of goals,” he shares. “CIC is bringing all of the stakeholders together, but the gap between what repairers need and what insurers need is continuing to grow pretty steadily.”

Despite the loss of his Select Service agreement, Sowle is confident that Sewell Lexus made the correct decision on PartsTrader.

“There was zero value brought to the table by PartsTrader for us or the customer,” he says. “It strictly serves an insurer.”

State Farm is Not Alone Although PartsTrader has received the majority of press coverage in recent months when it comes to the mandate issue, it would be a mistake to assume that State Farm is the only insurer looking to gain greatest control of the parts arena. Hammer & Dolly continues to receive reports that PartsCheck Live has been building a relationship with California Casualty, and that uParts is testing a program with GEICO in establishing a presence in the procurement arena. Meanwhile, Liberty

ATTENTION PARTS SUPPLIERS & DRP SHOPS Are you currently being directed by an insurer to use a particular parts procurement system? If so, Hammer & Dolly would like to learn more about your direct experiences with this system, as well as what you consider to be its benefits, faults, etc. Your comments and thoughts will be considered strictly confidential unless you give us permission to print your name and business. Help Hammer & Dolly better inform the industry by sharing your story with us! Please contact Editor Joel Gausten at (603) 715-1439 (office), (973) 600-9288 (cell) or via email at tgpjoel@verizon.net.

Mutual is said to be moving forward with a parts program through APU Solutions (a Solera company), who are also involved with American Family. And then there’s CCC. As reported in last month’s issue, the company recently launched the CCC TRUE Parts Network, a parts-focused initiative “that is connecting the industry’s parts suppliers with CCC’s expansive customer base of repairers and insurance carriers.” According to a company press release, the CCC TRUE Parts Network integrates with the CCC ONE platform to provide “parts suppliers of all sizes with a suite of solutions to display their parts, provide real-time price quotes and electronically sell their available parts inventories as estimates are being written.” Insurance carriers using CCC ONE can view parts and receive real time quotes; repairers using the CCC ONE Repair Workflow solution “have the same functionality, plus the ability to electronically purchase parts.”

Additionally, the program has a parts invoicing functionality that “makes it possible for parts suppliers and repairers to send and receive parts invoices through CCC’s shop management solution, providing repairers with a paperless option for their parts procurement and invoicing processes.”

“Providing a single connection between auto parts suppliers and repairers was the first step in CCC’s commitment to deliver a comprehensive solution to drive more efficiency into the parts selection and procurement process,” offered David Boden, vice president of CCC Parts Services Group, in a prepared statement. “[The fax invoicing] announcement addresses a key issue that many repairers spend considerable time on: Manual invoicing and reconciling parts orders against receipts. With the electronic parts invoicing functionality, repairers can easily manage orders, deliveries, costs and parts supplier discounts.

Auto parts suppliers are also able to provide an easier way for repairers to select and purchase their parts.”

According to the CCC TRUE website (http://ccc.cccis.com/pages/ parts_suppliers/427.php), CCC is currently offering three packages to suppliers: Show Package – Displays inventory “in front of the industry’s largest network of repairers and insurance carriers” while offering inventory status reporting.

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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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FEATURE

Quote Package – Provides live quotes to repairers and insurers requesting information about parts. Quotes are provided while estimates are being written, with transaction-level reporting available to track a supplier’s performance.

Sell Package – Integrates a supplier’s sales process with CCC ONE to sell more parts.

Although Keystone Aftermarket was the only supplier utilizing the CCC TRUE Parts Network at press time, Boden tells Hammer & Dolly that CCC has not only been actively pursuing parts suppliers to align with TRUE since November, but that “several” aftermarket suppliers have already formally signed up with the system. While he added that CCC was still weeks away from announcing these compa-

nies at press time, he hinted that some of them are particularly active in the WMABA market.

“The suppliers are seeing the value in our solution, and they want to be a part of it,” he says. “Accuracy has proven to be a real positive of the solution. You eliminate re-keying, phone calls and things like that. We’ve seen the right part get to the right place more often.”

With CCC actively meeting with customers in Maryland and Virginia to talk about the system, Boden wants it known that nobody is forcing anyone to use TRUE – and nobody is sharing customer data in inappropriate ways.

At least for now, it appears that use of the CCC TRUE Parts Network is strictly voluntary.

“Everything about our solution is optional,” Boden insists. “No one uses it unless they want to, and that goes for the suppliers and the buyers. With an optional solution, nobody is going to use it unless it is providing value to them.

Our whole goal is to provide value to both sides of the purchase. Extracting value in terms of sharing data against someone’s will is not going to cause anyone to use our systems.

I don’t know why we would ever do that.”

So what will insurers be able to see in TRUE? In the case of PartsTrader, State Farm is able to access all list prices that are submitted for a particular bid. While the insurer claims that it doesn’t see a shop’s cost for an individual part, they can see if that shop chose a part with the highest list price. Even if a shop has negotiated a nice discount for itself with a dealer, State Farm could have enough information from PartsTrader to see if a shop is choosing the “wrong” part. Will CCC TRUE be following in PartsTrader’s footsteps with respect to these prices?

“The estimate has the list price on it; that’s what the insurers see, and that’s what they pay,” Boden replies.

As PartsTrader, CCC and other parts procurement providers continue to move into the collision repair field, expect more thoughts and concerns expressed in these pages and at meetings locally and across the nation. This story has only just begun. H&D

Executive Director’s Thoughts We’ve contended all along that multiple insurers are looking at mandating particular parts processes that could interfere with your current practices. Now that the “rubber meets the road,” WMABA is continuing our stance against any mandate of a particular vendor for any part of the repair process. - Jordan Hendler

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HEADLINERS The latest news and notes.

ABPA SUES FORD OVER DESIGN PATENTS

The Automotive Body Parts Association (ABPA) has filed a lawsuit against Ford Global Technologies, LLC to have the manufacturer’s design patents deemed invalid.

According to the suit (filed in the United States District Court for the Eastern District of Texas), Ford has been using its patents to gain an unfair advantage in the marketplace: Ford Global Technologies has threatened to sue one or more ABPA members for alleged design patent infringement for selling automotive body repair parts allegedly covered by design patents owned

by Ford Global Technologies. Therefore, ABPA members otherwise would have standing to sue Ford Global Technologies for a declaratory judgment of patent invalidity, patent unenforceability and patent non-infringement in their own right…Ford Global Technologies uses design patents on automotive body repair parts to limit distribution and increase cost of the repair parts. This action seeks a declaration that such automotive body repair part design patents are invalid and/or unenforceable under the doctrines of patent exhaustion and/or functionality and are not infringed by ABPA members.

“The basis of our lawsuit is to challenge the validity and enforceability of Ford’s design patents on common collision repair parts,” explained ABPA Executive Director Ed Salamy in a statement on the association’s website. “The continued sale of these parts is of paramount concern, not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.

“The decision to go forward with this lawsuit did not come lightly,” he added. “The ABPA felt that it was time to make a stand and that if something was not done now, the situation would progressively get worse.”

Salamy also serves as the executive director of the Quality Parts Coalition, a group that describes itself on its website (www.KeepAutoPartsAffordable.org) as representing “the interests of the independent automotive parts industry, repairers, insurers, consumers and seniors. The goal of the Quality Parts Coalition is to develop and secure a permanent legislative change to US design patent law to protect the consumer’s right to benefit from quality, lower-cost alternative replacement parts and to preserve competition.” H&D

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Nuts and bolts, tips and tricks from our resident industry experts.

TECHNICAL

FEATURE THE ISSUES WITH WELDING IN COLLISION REPAIR Over the past few years, we have written multiple articles explaining all the different processes for welding operations in the collision repair field. This article will mention all those different processes, but we will also talk about the issues with each welding procedure.

Additionally, we will be listing a general setup procedure for each process. (*** NOTE: WE WILL NOT DISCUSS OR EXPLAIN ALUMINUM WELDING PROCEDURES AND PROCESSES. ALTHOUGH LARRY MONTANEZ IS A CERTIFIED ALUMINUM WELDER WITH MULTIPLE OEMs, WE WILL NOT DISCUSS THE PROCESS. THIS IS DUE TO THE FACT THAT WHEN REQUIRED TO WELD ALUMINUM, THE REPAIR FACILTY MUST BE ON AN OEM REPAIR PROGRAM. EACH OF THESE PROGRAMS HAS ITS OWN PROPRIETARY WELDING CERTIFICATION TEST.)

The main reason we are writing this article is to address the extremely poor quality of welds due to developed bad habits and a lack of education and pride in one’s work. Over the past three years, we have inspected over 300 vehicles for quality of repair issues, performed over 150 technician evaluations for welding, been contacted by email to review photos of welds and commented on numerous posts on Facebook, LinkedIn and Instagram about vehicle repairs involving welds. What we have seen is absolutely awful and disgraceful. The lack of proper welds we have observed on repaired vehicles is alarming. Through our inspections, conversations with other experts and in the hands-on classes we teach, we have been able to compile a short list of the main causes of bad welds. The following are the main issues that cause bad welds, with an explanation and a solution for each welding process.

Key: MAG/W: Metal Active Gas Welding (Steel) MIG/B: Metal Inert Gas Brazing (Steel) STRSW: Squeeze Type Resistance Spot Welding

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Seeing the weld: There are a multitude of issues in not seeing the weld. Many of these are easily correctable (MAG/W or MIG/B).

No protection at all: Many times, we see techs attempt to weld a “tack” weld or even try to weld two pieces together by closing their eyes or (even worse) looking at the weld with no eye protection at all.

This not only dangerous, but also very foolish. Not wearing eye protection will damage your eyes and you will eventually become blind.

Additionally, if a spark flies into your unprotected eye(s), you will most likely lose it/them.

Poor eye sight: Another issue with seeing the weld is just that – seeing the weld (STRSW, MAG/W or MIG/B). Even with the best welding mask, many techs have bad eyesight or just bad eyesight when welding, either of which can be corrected by a visit to the eye doctor. We suggest you bring your mask (MAG/W or MIG/B).

Inadequate welding mask (MAG/W or MIG/B): Many techs are still wearing the old style non-auto darkening masks, which make it very difficult for you to line up the welding gun to the weld location, set your hands and body position and then attempt to weld while trying to shake your head forward and back to get the mask to fall down over your face. A good quality auto-darkening mask is the best choice for welding; look for one with an adjustable shade selector. Shades for steel welding generally should be 9 – 11 depending on the amperage.

Poor mask maintenance (MAG/W or MIG/B): Even if the tech has a good quality mask, many of them forget that the front outside and the rear inside clear lenses require replacement regularly. A package of five for each lens is only about $12 to $15 and practically makes the mask as good as new.

Body position: To properly weld, you need to position yourself so you can see the weld puddle, and not look at the top of the nozzle from behind. For either the push or pull technique welding

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horizontally, vertically or flat, you need to position your body to either side of the gun torch and just ahead of the end of the stick out of the wire. For the overhead weld - either push or pull - you will need to position the workpiece or yourself to the workpiece at eyebrow or forehead level. This will give you an excellent position to see the weld puddle.

Your body position may be from the side, or you can be positioned directly in front of the welding gun and weld towards your mask. Remember that you may need to slide your hands and/or shift your weight as you make some of the welds, so practice a couple of dry runs in the right position with all of your equipment on.

Body protection (MAG/W or MIG/B): Many techs do not wear the proper welding jacket, gloves, boots or even pants when welding. Not wearing the proper gear can cause you to burn yourself – making you move your position while welding and causing incorrect welds.

Not cleaning (STRSW, MAG/W or MIG/B): One of the biggest issues we see is improper cleaning of the weld site. For any type of welding, it is necessary to clean the weld zone of any paint, dirt, debris, corrosion and grease. We have written about how to clean the weld zone before, but here is an overview. Never use brake cleaner to clean areas to be welded! Burning brake cleaner can generate very dangerous fumes.

For MAG/W or MIG/B, wax and grease the area, sand the area with 80-grit or a plastic rotary brush to remove only the paint material on all sides (both outer and inner areas), wipe the area with wax and grease remover (make sure you are wearing gloves) and make sure all welding edges are smooth. Do not use a grinder (36-grit or coarser), as it will thin out the material and may cause the area to be weaker and/or burnthrough to occur. Now, based on the OEM procedures, you may have to spray weld-through primer to the inner flanges or leave the area bare metal. Regardless of whether you use weld primer or not, make sure to clean the weld zone with a stainless steel wire brush just prior to welding. For STRSW, wax and grease the area and sand it with 80-grit or a plastic rotary brush to remove only the paint material on all sides (both outer and inner areas), or (per the OEM procedure) wipe the area with wax and grease remover. (Make sure you are wearing gloves.) Do not use a grinder (36-grit or coarser), as it will thin out the material and may cause the area to be weaker and/or burnthrough to occur. Based on the OEM procedures, you may have to spray weld-through primer to the inner flanges; just prime the original inner flange and leave the ecoat on the new panel’s inner flange or apply a specific seam sealer or structural bonding adhesive to the inner flanges. Remember: You must have access to both sides of the flange to complete a STRSW. Singlesided welding is not an approved welding procedure. Please remember that attempting to weld through anything but bare metal will cause poor welds.

Improper gun angle (MAG/W or MIG/B): There are multiple gun angles to use when welding, depending on the type of weld joint you are welding on, the thickness of the material and your welding position. We could spend an entire article explaining gun angles and positions. We recommend that you check out the Miller Welding or Lincoln Welding websites for more information on this, or feel free to contact us if you have any questions.

Equipment maintenance: For STRSW, you need to ensure the welding tips are always clean by sanding them with emery cloth every 10 welds.

Prior to using the machine, check the tips to see if they need sharpening (with the specific tool for that machine) if applicable, or change the end cap tips. Additionally, make sure the tips are lined up properly. For MAG/W or MIG/B, ensure that the contact tip and nozzle are clean using a stainless steel wire brush and welding pliers. Also, always have a few extra contact tips and nozzles on hand.

Weld testing (MAG/W or MIG/B): To prepare for welding on a vehicle, you should make test samples of the material you will be welding in the position you’ll be welding, and then destructively test them. This too could be a subject warranting its own complete article, so please feel free to contact us if you have any questions.

Although there are multiple joining procedures to repair today’s advanced substrate vehicles, MAG welding is still recommended in many cases. However, this is slowly being replaced with STRSW, MIG brazing, weld bonding and rivet bonding. Today’s technicians no longer have to make the decision of how to replace a component. Not only has the manufacturer done it for them, but they have also outlined the joining method to use. Today’s technicians must constantly practice and train to become professionals in their field. Following all the procedures and steps for replacing and affixing a replacement component to a collisiondamaged vehicle will ensure that the vehicle is repaired correctly per the only recognized authority – the OEM! We hope this article has helped the industry to better understand the issues surrounding welding on collision-damaged vehicles and how to correct those errors. Feel free to contact us if you have any questions.

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@PnLEstimol ogy.com. The P&L website is www.PnLEstimology.com.

Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY (www.LangeTech.net). 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@Lange Tech.net. H&D

Executive Director’s Thoughts

Sometimes, the simple things are easily missed when repair processes get complicated. You can have the best welder, the best training and the proper prep work, but if you go to weld with a bad/old helmet, you’re done for. Keeping up with these minor issues can be easily addressed with checklists that include all the basics. Step by step!

- Jordan Hendler

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INDUSTRY

ROUNDTABLE:

National leaders discuss representing and improving the industry.

STATE ASSOCIATIONS SHARE SUCCESSES, CHALLENGES & GOALS FOR 2014 & BEYOND What makes the leading trade associations across the country tick?

Hammer & Dolly recently sat down with several state associations from across the nation to learn more about each group’s priorities, goals for the future and drive to serve their particular membership. Read on as these industry leaders - including WMABA’s own Don Beaver, in his first official interview as association president - explain their current and future endeavors to improve both individual organizations and the repair industry as a whole.

How would you sum up the automotive repair industry during the past year?

WMABA: Over the past 12 months, I’ve witnessed the automotive repair industry becoming an increasingly worrisome place. Our members are facing shrinking profit margins combined with constantly changing vehicle technology and mounting insurer pressure to use aftermarket, used or reconditioned parts on new vehicles, not to mention pressure to perform repair processes that they don’t necessarily agree with. I would say the term ‘worrisome’ is an accurate one.

AASP/MA: There are several items that have been sweeping themes throughout the industry over the past year. First, technology: The cars do everything but fill their own tanks these days! As a whole, the vehicles are changing so rapidly, and we are facing a shortage of help to fix them. Over the past year, we’ve also noticed an increasing number of shops seeking legal advice in order to get properly compensated for the work they do.

This is something we never even thought of!

Shops are starting to get to a breaking point. In addition to seeking legal advice, there are many businesses out there that are becoming more and more vocal in their opposition to the DRP model, as insurance companies try to become more heavily involved in the repair process. Many shops are starting to realize that, in some cases, they are running their business for another industry altogether.

AASP/NJ: Over the past year, I’ve seen the auto repair industry face a number of challenges and changes to the way they do business. And yet, I see them continuing to stand strong, and invoking positive change nationwide.

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AASP-MN: 2013 has really been a great year for us as an association and for our members. The shops have stayed consistently busy throughout the year. AASP-MN enjoyed legislative success, great attendance at events, a 94-percent retention rate and will end the year with membership growth of more than five percent.

WACTAL: In general, we have found that as 2013 drew to a close, sales are roughly the same; however, profits among members were down a bit.

What are the issues that you feel could have a major impact on the industry in 2014 and beyond?

AASP-MN: Insurers continue to come up with new and evermore intrusive ways to micromanage the repair process and business operations of the shops. It is certainly an issue for our members currently, and I don’t see it changing in the near future. As an industry, it’s imperative that we remain vigilant and stand our ground. Secondly, advancements in vehicle technology will continue to be an ongoing challenge for our members, as well.

WACTAL: PartsTrader and insurer-mandated parts procurement programs are by far the most controversial issues affecting the industry. The practices of insurers not following [and not paying for] P-Page procedures and recognized and recommended repair procedures affect our members now and into the future, as well. Additionally, the Affordable Care Act [ACA] and its impact on businesses and individuals is a concern for everyone, not just those in the collision repair industry.

WMABA: Two issues that WMABA feels will affect the industry majorly in the immediate and long-term future are education and insurer mandates. The need for continuous high-quality training should already be a priority for automotive repairers. As the technology continues to evolve What is your association’s position on the concept of on these vehicles, those who do not make the commitment to better insurer-mandated parts procurement (i.e., PartsTrader, etc.)? themselves through industry training will quickly be left behind. Of course, insurer mandates also stand to have a huge impact on the entire WMABA: WMABA’s opinion of insurer-mandated parts procurement is auto repair supply chain, as well. PartsTrader, for example, has already that it is an absolute nightmare, from both a consumer and collision reforced its way into numerous markets in spite of mostly negative feedpairer standpoint. Mandating the use of a particular product, service or back from those using it, and it’s only a system removes the ability of a shop to matter of time before other insurers folbe flexible and fluid during the repair PARTICIPANTS low suit and implement their own simiprocess, and saddles them with unnecWashington Metropolitan Auto Body Association (WMABA) President Don Beaver lar platforms mandating the use of essary, unwanted and cumbersome specific suppliers for parts, paint, mateprocesses. PartsTrader in particular inAlliance of Automotive Service Providers of Massachusetts rials, you name it. creases cycle time, reduces profits for (AASP/MA) President Paul Hendricks the collision shop and creates adminisAlliance of Automotive Service Providers of New Jersey AASP/MA: I see repair standards taktrative bottlenecks. There are many (AASP/NJ) President Jeff McDowell ing center stage in the near and longgood part procurement programs out term future for our industry. It’s a there that do expedite the repair parts Alliance of Automotive Service Provideres of Minnesota (AASP-MN): Scott McClure with John Ritter, Mike Cox with crucial topic, plain and simple; we need ordering process; PartsTrader is not Tom Gleason and Joyce Weinhandl with to be repairing these cars properly. The one of them.

Wayne Watson as facilitators manufacturer-approved standards do Wisconsin Auto Collision Technicians Association Ltd. exist, and we can get our hands on AASP/MA: Quite simply, we are 100 (WACTAL) President Art Krolikowski; Vice President them. The major repair associations percent against insurer-mandated proLarry Terrien; Secretary Ronnie Goss are in agreement that this should be a curement programs. The concept of priority. Increasing vehicle technology having an insurer forcing you to buy and the necessary certifications to handle them will become a huge anything from one specific location or vendor is so completely against issue in the future, as the Mom and Pops who cannot or will not evolve anti-trust regulations already in place. It hasn’t hit home yet in Massabegin to be phased out of business, and those who do make the financhusetts, but we would be kidding ourselves to think that it won’t. In cial and time investments take their place. Sadly, the small shops will not terms of PartsTrader in particular, I have not heard any positive feedall have the resources to make these repairs, or even to attend training back on the program from anyone other than the insurer itself. I believe or purchase the equipment necessary to do so.

PartsTrader is just the beginning – the insurers are attempting to interfere with every aspect of our business. State Farm isn’t the only one tryAASP/NJ: Insurer-mandated parts procurement is, of course, a huge ing this by a long shot. They’re all trying their hand in controlling our issue for all areas of the repair industry, from the small shops to the industry, and nobody should be able to tell a shop where to buy their huge dealership parts departments. If platforms like PartsTrader become parts, their paint, anything. the norm in the industry, everything about the way we perform repairs AASP/NJ: We find insurer-mandated parts procurement platforms, will change. Vehicle technology continues to be a very important issue to PartsTrader or otherwise, 100-percent unacceptable in any form. watch, as well. Safety features like collision avoidance, for example, are intricately technical and will require new processes, skills and equipment AASP-MN: We are adamantly opposed to PartsTrader and any insurerto repair properly and safely. Repairers will need to work on these cars mandated program in general. AASP-MN is presently working on enin a much more interactive way than they have in the past. forcement of legislation already in place in Minnesota that would prevent PartsTrader from being mandated in our area, as it restricts market February 2014

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options for parts procurement. We are fighting to make sure that PartsTrader and any similar programs are not allowed to be required in Minnesota.

WACTAL: The Wisconsin Auto Collision Technicians Association Ltd. [WACTAL] urges shops to think seriously of the impact on their business, their future in the collision repair industry and the industry as a whole when considering State Farm’s PartsTrader program. Contracts should benefit all parties that agree to the terms within. Contracts with insurers have created oppression and control upon our industry and have also caused some to lose sight of the real customer: The vehicle owner. The PartsTrader program is another example of insurance companies trying to force their way into the process of repairing the customer’s vehicle. Insurers should not be involved in any way with the parts purchasing process, nor any other part of the collision repair process. State Farm says PartsTrader will be a ‘win-win’ for the collision shop, the parts supplier, the customer and the insurance company, yet there’s no win for collision repairers, parts suppliers or consumers. WACTAL believes that the PartsTrader program will increase cycle time, increase administrative costs, decrease supplier participation and create oppression and control on our industry. Therefore, the WACTAL Board of Directors goes on record opposing State Farm and PartsTrader practices.

How active is your association in the political/regulatory arena?

WMABA: Our association is very active in the legislative arena, in both Maryland and Virginia. Without tipping our hand, I’ll just say that there are some good things in the works and when the time comes, we will need the support and voices of our members to jump in feet-first with us.

AASP/MA: We have become very active in the Legislature thanks in part to aligning with Lynch Associates. Lynch, who provides lobbying, administrative and consulting services to our association - as well as the leadership of Executive Director Jillian Zywien - has many great contacts on Beacon Hill, and has facilitated some great meetings for us in recent months with Insurance Commissioner Joseph Murphy and the Commonwealth Auto Reinsurers group [CAR] to voice our concerns and initiatives as an association. We’ve never had an audience with entities like this before, and regardless of the outcome, we are very excited to be in the room having these discussions. We are moving forward in the legislative arena, with experienced people backing our goals.

AASP/NJ: AASP/NJ has a good presence at the Capitol in both the Assembly and the Senate, with various successes over the years. Most recently, the association was instrumental in preventing mobile repair shops from entering the state, which could have had a hugely negative impact on the collision repair industry in New Jersey.

AASP-MN: We are extremely active legislatively. We have a great lobbyist in place who has worked with AASP-MN for many years, and is in tune with our association’s goals and needs. We’ve experienced a number of successes in the legislative arena and will continue to work in both the legislative and regulatory sectors to protect and advance the interest of our members.

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WACTAL: WACTAL has and continues to address appropriate industry issues through the legislative process. Other issues and concerns are addressed with state agencies such as the Office of the Commissioner of Insurance, Department of Agriculture, Trade and Consumer Protection, Department of Natural Resources and Workers Compensation Rating Bureau. Currently, there is a bill pending in the state assembly that clearly states that a consumer has the right to select the motor vehicle repair facility of his or her choice.

When you “talk shop” with members, what topics come up the most?

WMABA: In recent months, I’d have to say that the most common topic of discussion has been PartsTrader. But even with so much discussion on insurer mandates, there is always short-pays and no-pays by insurers as a close runner-up. Additional topics of concern are the failure of insurers to recognize repair requirements and procedures and insurers’ attempts to take repair decisions away from the facilities, who are not only the real experts in the repair situation, but also the ones who will ultimately be on the hook in terms of liability.

AASP/MA: The topics of conversation are frequently the same: Aftermarket parts, Labor Rate suppression and the lack of quality help are the concerns I hear being voiced by our members most often. Lately, many have been having problems with the “prevailing rate” being told to them by various insurers. If you deal with four insurance companies, for example, you might be given four different figures of what the prevailing rate – or in other words, the rate the particular insurer is willing to pay the shop – is in the area. It can be incredibly frustrating.

AASP/NJ: I’ve been talking about this industry for 50 years, and after five decades I still hear the same topics coming up over and over again when talking with shops locally or nationally: Steering and Labor Rate suppression. The intricacies of the issues may change over the years, but those are still the two biggest issues after all these years.

AASP-MN: We actually just conducted a member survey to get a better sense of the issues affecting shops throughout the state. The top responses were insurer control, finding quality help and keeping up with vehicle technology.

WACTAL: It goes without saying: PartsTrader is by far the most discussed topic. Of course, dealing with insurance companies in general – not paying for certain items, suppression of labor and material rates, etc.

– continues to be brought up by our members.

With the educational system emphasizing college for all students, where do you think the next generation of automotive repairers will come from?

WMABA: I don’t know what the college attrition rate is, but I think that is where we need to work on getting the new faces of our industry: Redirecting those kids toward tech schools, apprentice programs and mentoring. Collision repair really is a tough business, and with the technology advancing the way it is, we’re going to need these younger kids who live by smartphones, computers and tablets. We need to get into these high schools earlier than we currently do, and show the

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students that there are options out there for people who work with their hands, and that they may be more valuable than they thought possible by going into collision repair.

AASP/MA: Getting ‘fresh blood’ into this industry is always going to be an issue. There will always be some who continue because they love working with their hands or tinkering with a car, and there will always be a few who are interested in working their way up the ranks to finally own their own shop one day. But the schools – and we as an industry, for that matter – really need to do a better job of promoting this trade as a great place for our students to work. Schools have talented, malleable kids going through their programs, and they don’t always do a great job of placement for these students after graduation, or of establishing cooperative programs while they’re still in the school. So these kids graduate and are left out there, with little to no guidance on how to succeed, and they end up working in another industry to get by. It’s on us, too – we’re the ones who need skilled help the most. We need to be fostering relationships with the schools – maybe opening up our doors to current students and going to speak at a Career Day – to keep this industry going.

AASP/NJ: It’s a sad commentary on the country and our youth, but I feel that eventually, new generations of trade labor are going to have to come from outsourced countries. Don’t get me wrong; the trades are still alive out there, but skilled labor is getting harder and harder to come by.

And unfortunately, some of the people coming out of the trade schools are not willing to work as hard or develop the varied skill set that you need to succeed in today’s industry. And many are not willing to start at the bottom of the totem pole. We can’t pay these people what they’d like to be making out of the gate. There are hard-working, eager young people out there; we just have to make a greater effort to find them, and to show them that this is a great industry for a career.

AASP-MN: The next generation of automotive repairers will come from the same place they have always come from – young people who have an interest and passion for all things automotive. Although their numbers may be fewer, there are definitely young people out there in trade schools who see the potential in someday being in business for themselves. And while they may not be coming to our industry immediately for example, some may initially go the college route but join the industry later in life - we feel that they will ultimately find their way here because of their passion.

WACTAL: First of all, we don’t necessarily agree that our educational system emphasizes college for all students. Wisconsin has a very strong technical college system, which has done an excellent job of supplying technicians to all of the trades for many years. Our next technicians must come from the technical schools. We need to find quality people from the high schools to enroll in these programs, and that’s not a simple thing.

Look at what you pay to have someone come in and repair your computer – they come in with a laptop and backpack and charge a minimum of $95 per hour. Now, take a look at the equipment a shop must have [spray booth, frame rack, etc.] and the tools a technician must possess.

Compare that against the shop door rate and technician hourly wage.

You get the picture.

Why should an automotive repairer join your association?

WMABA: All too often when talking to repairers, I hear their frustrations: ‘Why did this happen?’ ‘Why won’t this insurer pay me for this or that?’

‘Why aren’t I making any money?’ ‘How am I supposed to compete?’

‘Who can I talk to about changing this industry?’ WMABA is in place to not only answer those questions, but to actively help change the industry for the better. We provide a voice and outlet for collision repair professionals, as well as support wherever and whenever they need it.

AASP/MA: Repairers should become a part of AASP/MA because there is strength in numbers. If you have a problem, you’ll get the help you need as part of the association, whether through our lobbying efforts or in the training opportunities we provide. And for me, the best part of membership is the people. You will meet so many great people, and in networking with shop owners like you, you’ll learn the important truth that, in spite of how you feel or what outside parties may tell you, you are not the only one. You may not realize that the issues you’re dealing with are also being experienced by a neighboring member shop, or that perhaps a solution to your problem already exists. But until you get out there and start communicating with your peers, you won’t have your finger fully on the pulse of the industry without membership in AASP/MA. We offer great training, a terrific benefi package, legal representation and top-notch communication between our magazine and website. And as part of AASP National, you are privy to more contacts and benefits.

You probably can go it alone, but you shouldn’t have to. The leaders of our industry are involved in trade associations; that’s not a coincidence.

AASP/NJ: A repairer should join AASP/NJ to not be alone in this industry, and to gain valuable support, representation, education and information. The people you will meet by being a part of our association are truly second to none, and is just one of many huge perks of being part of AASP/NJ. AASP-MN: Joining AASP-MN provides repairers with a collective voice to help enact change, as well as exclusive access to industry information, news, savings and training that they simply cannot get elsewhere.

Our members have the benefit of being informed, educated and in the company of many like-minded, intelligent automotive repair professionals with whom they can communicate and share ideas.

WACTAL: Whenever the question of, ‘What will the association do for me?’ is asked, our answer is always the same: Whatever you want us to!

WACTAL is run by the members, for the members. The WACTAL directors are not paid for their time, nor reimbursed for out-of-pocket expenses to attend meetings. They do what they do because they care about the industry and their own business. The association is only as good as you make it. The industry has many issues to deal with today, and many of these can only be dealt with through solidarity. There is strength in numbers, and we need to keep all shops involved in the issues. H&D

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The latest from WMABA members and supporters.

COVER

STORY

A REAL CLAIM STORY FROM AN EXECUTIVE DIRECTOR It’s rare that an executive director for a collision association is involved in a collision and then shares his or her experiences. WMABA Executive Director Jordan Hendler, however, was recently rear-ended by a USAA-insured vehicle while stopped for a traffic light. This event was caused by a GEICO-insured driver of a third vehicle. Like a domino effect, one vehicle hit another, and the struck vehicle hit her. While the finite details of the actual collision are not really prudent, it helps to know that there were three vehicles with three insurance companies involved.

Because of her profession, Hendler mistakenly thought her knowledge of consumer rights and industry practices would lend her a less-troubling experience than most. However, the insurer tactics she experienced only solidified what she already knew about what our industry faces.

In the first of a two-part segment, Hammer & Dolly asked Hendler for a summation of the events leading up to taking her vehicle to the repair shop.

Here’s her story:

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I was dropping off some large items in downtown Richmond in our family vehicle, which normally stays at home. (I say that because it later made it harder to take the vehicle to be inspected and repaired.) After going through what happened at the accident scene with the responding officer, I was already provoked in several ways, mostly by her telling all involved that the entire accident had less than $1,500 of total damage and we would only exchange a formal “information sheet.” I literally laughed out loud and pointed to the sandwiched car and my vehicle parts sitting in a puddle on the ground; the officer refused to do more. Only after a complaint from me and her supervising officer forcing the issue later that day did the officer concede and write a full accident report. I didn’t realize how naïve an officer could be about vehicle damage. I’m not an estimator, and I could easily see that the amount of damage on the scene

between the three vehicles surely exceeded $10,000.

Following this initial minor hurdle, the ensuing issues I have experienced so far with the GEICO claims process are much deeper and far more offensive.

I think it’s important to note that the repair shop that responded to the scene with a tow vehicle, and later a repair authorization for the USAA-insured vehicle, subsequently had that vehicle towed out to a program shop for repairs. I know this because the original shop was where my car was going. Was it effective steering by GEICO, or maybe even by USAA? I would bet that it was, but don’t have the details on that one. Furthermore, the woman’s car that caused the accident will probably not even see the inside of a shop, as it looked like there was prior damage she’d neglected to have fixed before.

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Hearing directly from consumers (and through the stories recounted by shop personnel) about the issues that motorists have with the claims process is something that every association person in the collision industry has experienced on a regular basis. But at the end of the day, they’re all told from their point of view; I am outside of the actual discussions. I decided that I would remain completely neutral and see how the exchanges in my accident would go. As a third-party claimant, I knew that I did not have a contract with GEICO. That didn’t mean to me that they should just do anything and everything to make me happy, but I knew that they didn’t have a policy language limitation that applied.

Within the first day of the accident, GEICO took interview reports from all involved in the accident and then admitted fault. Once that took place, they wanted to schedule an appraisal of the damage.

This is where we got sideways. I was then given their dialogue that it is GEICO’s policy that a drivable vehicle is required to be taken to their DRP facility to be inspected. I thought, “Well, that isn’t going to happen!” I asked if this was the law. They told me it wasn’t, but that they would not under any circumstance come to me to look at the vehicle.

I asked the representative several times why it was my responsibility to take more time away from work, family, etc. when I didn’t cause the accident and was already dealing with a complete inconvenience. I knew for a fact that their adjuster was in my preferred shop on a When asked about the complaint to the Virginia Bureau of Insurance, Hendler said she wasn’t surprised – rather, a bit disheartened – by the results. The date of the loss was October 28, and the complaint was submitted by fax on October 31. The first response, dated November 4, arrived by physical mail November 6 and was simply a generic acknowledgement of receipt of the complaint and assurance that the Bureau would review the matter. The follow-up response from the DOI, included to the right, was issued to Hendler on November 20, 23 days after the accident:

very regular (if not daily) basis, and insisted it wouldn’t be inconvenient for them to see it there, in spite of their “policy.” After waiting several long holds to talk to a supervisor and ultimately get into a heated debate for over 20 minutes, I was told that if I could not take the vehicle to the other collision shop first, I would have to go through my own insurance company for the entire claim.

“Fine. Make me an appointment” was about all I could say to that. After hanging up the phone, I sat there for quite some time replaying the conversation – literally, because I had recorded it. I still couldn’t believe what I heard. Was I just steered, or was it actually allowable for them to basically force me to go to them? All those stories about the industry applied to me, and I was just stunned.

So I did what I tell everyone else to do: I filed a complaint with the Department of Insurance. That only took a few minutes and I faxed it in immediately. More on that later…

Doing what I normally do when faced with a large company representative who isn’t cooperative, I called back to try and reason with someone else. I was given the same dialogue by this new person about policies and what have you, but I stayed steadfast in my argument that I just couldn’t take the vehicle to a different shop with all my other commitments.

After a couple more episodes of hold music, she relented. Maybe they figured I wasn’t going to let it go.

This letter is in response to your inquiry regarding your concern that the other party’s insurance company had refused to inspect your vehicle at your body shop. We contacted GEICO and have recently received its response.

GEICO explained that it wanted you to drive the vehicle to a body shop because it would take more time if it sent an adjuster out to your shop, thus delaying the handling of your claim. The company indicated that when you called the company the next day,

a supervisor approved an adjuster to inspect the vehicle at your body shop. According to GEICO, an appointment was made for November 7, which you canceled because the car would not be available at that time. The company indicated that it is currently waiting for you to call to reschedule another time for the adjuster to inspect your vehicle.

Hendler reasons that the rescheduled appointment wouldn’t have been necessary if they had asked the adjuster at the beginning to go to her preferred shop. The vehicle was seen by the time of the letter. And now, here’s the kicker at the end: The company advised that you were first rear-ended by a vehicle driven by Mr. ****.

If you have not yet done so, you may want to place a claim with Mr. ****’s insurance company.

The driver indicated above was not at fault in the accident, and yet the Bureau that is supposed to understand that fault was already established is now suggesting that another insurer get involved. It was obvious to that all parties wanted someone else to take over the burden.

After this failure to agree on who is delaying the claim and with whom that fault actually lies, Hendler is currently submitting a further complaint due to the differences in the original estimate made by the adjuster and the actual cost of repair, which is about double.

While this likely only confirms many things our readers already know, it is helpful to understand that consumers do not just bear the burden of the inconvenience, but also must have the fortitude to make sure that the claim is handled fairly. In spite of the laws in place to protect consumers, it is obvious by this story that there are many holes still yet to be filled.

Stay tuned for part two, where the body shop gets involved, in our next issue. H&D

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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

PAST PRESIDENT: Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928

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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

Bobby Wright bobby@burkevillebodyshop.com 434-767-4128

February 2014

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EXECUTIVE DIRECTOR: Jordan Hendler jordanhendler@wmaba.com 804-789-9649

Contact Executive Director Jordan Hendler to find out how WMABA can amplify YOUR voice in the collision repair industry.

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2014 LEGISLATIVE

UPDATE The Maryland General Assembly Session is Off and Running! What Does it Mean to You? Happy New Year from your friends at Alexander & Cleaver. We are looking forward to a very productive year on your behalf as we work with the General Assembly and WMABA membership to pass legislation important to the Washington Metropolitan collision industry.

One bill in particular, sponsored by Senator John Astle (D-Annapolis) and Delegate Johnny Olszewski (D-Baltimore County), will require insurance companies to pay for original parts in the first years of the vehicle rather than the aftermarket parts they currently pay for. It also will prohibit insurer mandates for

particular processes or vendors in the procurement of parts or materials for the vehicle.

Hannah Garagiola is taking the lead on this issue for Alexander and Cleaver, and is working with our entire team to see that the legislation passes and is signed by the Governor. We will plan for hearings and testimony, and will educate WMABA members on what to expect during the 90-day session. These bills will not be easy to pass, but our team is putting all efforts behind this initiative and we look forward to working with you. The hearings will be before two standing committees, the House Economic Matters Committee and the Senate Finance Committee. Following a favorable report on the bills, they will be taken up on the floor of each house and passed.

We are excited to announce a new system of communicating with WMABA on bills that are important to you. While Alexander & Cleaver has continuously worked to keep you updated and informed, this new system is state of the art and gives you information that

BY ROBIN SHAIVITZ,

Chief Operating Officer, Government Relations Division, The Law Offices of Alexander & Cleaver

is not only timely, but also easier to follow and understand. Our goal is to communicate with you in ways that make sense to your organization and leadership as we strive to consider what’s best for you at all times.

Speaking of communicating, we reach out to you from time to time about events and information that we think will be important to you for networking and staying up to date on government relations. On February 19 at noon, a policy maker luncheon will be taking place with Dave Iannucci, the director of economic development for Prince George’s County. Dave is a very experienced economic development expert, having served in this capacity at the state and local levels.

Alexander and Cleaver will hold additional events throughout the year; we encourage WMABA members to check their emails for invitations to upcoming events, or visit our website for updates at www.alexander-cleaver.com.

Executive Director’s Thoughts As Robin has explained, WMABA is in the middle of the legislative process for the “Parts Bill” we are hoping to see through to the signature by the Governor. At the time of this writing, the bill is in drafting by our sponsors but has not yet been assigned a number. The bill itself addresses two separate but important parts issues that consumers and repairers face: One, the use of aftermarket parts on their new vehicles that are either still under manufacturer warranty, a lienholder or even under lease agreement; two, the insurer mandates for parts or material procurement systems or vendors. The selection and timeframe for parts distribution is something that has the potential to have an effect on the consumer the more that insurers get involved in the procurement process. It also would affect tax revenues for the state if their actions affect price.

It’s important to know that each individual who makes any effort is a valuable contribution. You can assist in many ways, and any method is both helpful and appreciated: • Send an email to your Delegate and Senator asking them to support our legislation that helps your customers, your employees, your business and your state revenue. (To find your legislator or for more information such as the bill

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number and language, go to our website, www.wmaba. com.)

• Meet with your representatives during session to ask their support. You can set up a meeting through WMABA’s legislative team by calling our office. It’s easy and it helps more than you can imagine.

• Contact your vendors to get involved, as well. Your parts vendors have as much of an interest in this as you do, if not more. They also have their own associations they can go to for assistance.

• Send in donations to assist the efforts. Any amount helps to offset our financial costs in pursuing legislative initiatives.

• Tell other shops! The more repairers who get involved, the more likely our efforts will pay off.

As always, we encourage you to contact our association office to find out more information about our industry’s legislative efforts and how you can help. WMABA will continue to keep our members informed on progress of this and other legislative initiatives through frequent member updates and the pages of this magazine. Stay tuned!

- Jordan Hendler

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What’s happening at the State House, in your industry and everywhere in between.

Given that this is the fourth and last year of the term for most elected officials in Maryland government (with Baltimore City one significant exception), most legislators will have their minds on their elections. Since most of the state is either very Democratic or very Republican, the races will be decided in the primary elections held in June. Additionally, as readers are likely aware, there will be an election for Governor this year. Martin O’Malley’s name will not be on the ballot. Having served two terms, O’Malley is term-limited from running again for this office. It is no secret that he has his sights on higher office and wants to make sure that his last year as Governor in Maryland is “smooth sailing.” He will set his priorities, however, in areas including the environment, health care, employment and business opportunities. As small business owners, WMABA members should look for policy initiatives that impact the minimum wage, business tax credits and other programs that might benefit small business.

Please contact the Alexander and Cleaver team with any questions about how government relations work for you. We want to help, inform, educate and accomplish priorities for WMABA and the industry as a whole. We wish you all an exciting and productive 2014! H&D

Robin Shaivitz is the chief operating officer of the government relations division of the Law Offices of Alexander & Cleaver. The firm represents WMABA on legislative issues and represents many of its members on a wide variety of legal issues as well. To reach Robin, please call (410) 974-9000 or visit www.alexander-cleaver.com.

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ADVERTISERS’ INDEX Alexander & Cleaver............................47 Alexandria Toyota ................................23 All Foreign Used Auto..........................49

Audi Group ..........................................13 Axalta Coating Systems ......................7

BMW Group ........................................28-29 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3

BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................4

Chesapeake Automotive Equipment ..50

Empire Auto Parts................................50 Future Cure ........................................30 Help Wanted ........................................18

Honda Group ......................................44 Hyundai Group ....................................15 I-CAR ..................................................25

Koons Ford ..........................................47 Mazda Group ......................................19 MINI Group ..........................................32 MINI of Alexandria ..............................33 Mitsubishi Group..................................36 Mopar Group ........................................9

Nissan Group ......................................21

NORTHEAST™ 2014..........................17 O’Donnell Honda ................................49 Packer Norris Parts ............................6

Porsche Group ....................................20

PPG ....................................................IFC P&L Consultants ..................................37 Russel Toyota ......................................24

Safety Regulations ..............................23 Subaru Group ......................................31 Tire Distributors Inc. ............................24

Toyota Group ......................................45

Valspar Automotive..............................OBC VW Group............................................11

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