New England Automotive Report March 2015 by Thomas Greco Publishing, Inc.

AUT M TIVE Serving The new englAnd ColliSion And MeChAniCAl repAir indUSTry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

March 2015 U.S.A. $5.95

www.grecopublishing.com

2 March 2015

New England Automotive Report

CONTENTS

March 2015 • Volume 13, No. 3

DEPARTMENTS VICE PRESIDENT’S MESSAGE 8 | THIS IS ONLY THE BEGINNING by Adam Ioakim IN THE AREA 16 | AASP/MA Vendor Appreciation Night Notice INSIDE AASP/MA 20 | Member Benefits: Gonnello SEO 21 | Meet the Board: Adam Ioakim NATIONAL NEWS 25 | Closing Arguments Heard in $34M CT Case 27 | District Judge Stalls FL Case, Disregards Consent Decree

FEATURES

NEWS FROM NORTHEAST® 30 | NORTHEAST Show to Welcome I-CAR, AASP Affiliates

40 | FROM PUPIL TO PLATINUM: INSIDE I-CAR’S VOCATIONAL SCHOOL CURRICULUM

LEGAL PERSPECTIVE 34 | Personal Liability by James A. Castleman, Esq.

44 | THE PUSH CONTINUES: AASP/MA ANNOUNCES NEW LEGISLATION

EQUIPMENT AND TOOLING 48 | Getting the OEMs On Your Side: Assured Performance Network by Jacquelyn Bauman

ALSO THIS ISSUE 7 | CALENDAR OF EVENTS

New England Automotive Report

March 2015

AUT M TIVE STAFF

MARCH 2015

March 10, 2015 Vendor Appreciation Night Doubletree Hotel 5400 Computer Dr., Westborough, MA

March 20-22, 2015 NORTHEAST® 2015 Automotive Services Show Meadowlands Exposition Center 355 Plaza Dr., Secaucus, NJ Pre-register for free online at www.aaspnjnortheast.com

PUBLISHER

ART DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

DIRECTOR OF SALES

MANAGING EDITOR

Alicia Figurelli (alicia@grecopublishing.com)

Jacquelyn Bauman (jacquelyn@grecopublishing.com)

EDITOR

PRODUCTION

Joel Gausten (tgpjoel@verizon.net)

Sofia Cabrera (tgp4@verizon.net)

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2015 by Thomas Greco Publishing, Inc. Images courtesy of www.thinkstockphoto.com/ThinkStock Photos.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE COMMITTEE PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard

AASP/MA CHAPTER DIRECTORS NORTHEAST CHAPTER DIRECTORS Alex Falzone Kevin Kyes SOUTHEAST CHAPTER DIRECTORS Michael Penacho Darlene Andrade MIDSTATE CHAPTER DIRECTORS Tom Ricci Ray Belsito WESTERN CHAPTER DIRECTOR Peter Langone

Turn to page 15 for a detailed listing of sponsorship opportunities.

FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG

AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

WWW.AASPMA.ORG New England Automotive Report

March 2015

VICE PRESIDENT’S MESSAGE

ThiS iS only The Beginning It has been a few months since I was elected onto the Board of Directors as AASP/MA’s vice president, and in that time I have seen a number of actions put into place in order to address some of the issues we face as an industry. In this issue, you will read about the number of legislative actions the association will be taking (see page 44) to counteract a few of the challenges that affect our everyday business. I think that this is the first step towards resolving our problems, but even with a 100-percent success rate on our five pieces of legislation, this is by no means the final piece of the puzzle.

8 March 2015

I don’t think there is anyone in the collision repair industry who would argue with me when I say that insurance companies are guilty of taking shortcuts in order to increase their own bottom line. When insurance companies do things that are illegal or against regulation, it shouldn’t be necessary for a shop to go up against a multi-million dollar company in court. There needs to be another avenue to handle these issues. This is something I believe AASP/MA can work on addressing and managing in the future. The problems that we face as an industry were not built overnight and they will not disappear that quickly,

New England Automotive Report

either. This will require not only time, but support as well. Take the time out to attend a meeting to find out what it is that you can do every day to help the association work to make your industry better. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Adam Ioakim is the co-owner of Hogan & Van Auto Body in Medford, MA. He can be reached at (781) 436-0366 or adam@hogan andvan.com.

Presents

NORTHEAST® 2015! • Top-Notch Educational Opportunities • Over 150 industry-leading exhibitors • Fun for the Whole Family, And More!

Pre-register online for free admission at www.aaspnjnortheast.com!

March 20, 21, 22 at the Meadowlands Exposition Center 355 Plaza Drive, Secaucus, NJ

New England Automotive Report

March 2015

A MESSAGE FROM THE EXECUTIVE DIRECTOR

why yoUr SUpporT oF AASp/MA MATTerS Dear Members, Your support matters! AASP/MA’s strength and effectiveness comes from you, our members. Your participation in the association gives us the grassroots power to advance our mission of “Building the success of the auto repair industry.” As you are aware, AASP/MA has filed five pieces of legislation this session. This is quite possibly the most legislation ever filed by the association. Our legislative committee, led by Chairman Peter Langone, and our professional staff have crafted four pieces of legislation in addition to the Labor Rate Bill. The purpose behind our four new pieces of legislation is to highlight the association’s diverse efforts towards changing the industry. Not only are we working toward fair payment for services, but we are also focused on improving the industry as a whole.

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AASP/MA has fought hard over the years on one bill, which has left many of our members frustrated and burnt out. By expanding our legislative initiatives, the association is working to challenge insurers on other issues of disparity. Please take a look at our cover story on page 44 to learn more about our priority legislation. Our bills will also be posted on the Members Only section of our website, www.aaspma.org. During this new legislative session, we may call on you, our members, to activate our grassroots power. Your participation may include making calls to your Legislators, obtaining information from your shop experiences, attending hearings, etc. The more support we have, the more power the association has to pursue our legislative initiatives. For our current members, thank you for your continued support and

New England Automotive Report

participation. I know you all stand ready to assist the association when called upon. You are the foundation for “Building the success of the auto repair industry.” For those of you who are not members, I encourage you to join the association today. Become a part of the conversations that are shaping your industry. Take advantage of the benefits of membership and join the group that is making changes to the way insurance companies do business. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

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AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

AASP/MA NEWSLETTER SPONSOR

WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor! 14 March 2015

New England Automotive Report

2015 AASP/MA Casino Night Sponsorship Categories This year will feature more gaming tables, more entertainment, more raffle prizes and a special guest appearance! Tournament Sponsor- $7,500

Board of Directors Sponsor (2)- $750

Package Includes:

Company logo printed on event admission tickets Company logo printed on all promotional/marketing materials Extensive coverage in our publications (NEAR & Damage Report) NEW Picture with the Board of Directors published in NEAR & Damage Report NEW Company logo displayed on the outside stadium signage (Visible from the hotel and parking lot) NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Ribbon screens (surrounding the stadium) will display company logo NEW Prominent dinner station signage NEW Prominent dessert station signage NEW Attendees on the stadium tour will receive promotional materials for your company President & ED will recognize your company during the speaking program Company banner (you provide) will be displayed at the podium Four event tickets with stadium tour and reserved seating NEW Electronic book ad will be displayed on several TV’s throughout the event Company logo listed on AASP/MA website with a link back to your site A member of your company will “kick off” Casino Night!

NEW Electronic book ad will be displayed on several TVs throughout the event Recognition during President and ED’s speaking portion NEW Picture with the Board of Directors published in NEAR & Damage Report One event ticket with stadium tour Exclusive opportunity to personally present a small gift to each Board Member in recognition of their service to the association. (Your donation will pay for a ticket and two drinks for each Board member.)

“High Roller” Sponsorship- $5,000

Gaming Table Sponsor- $750

Package Includes:

NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Ribbon screens (surrounding the stadium) will display company logo NEW Prominent dinner station signage NEW Attendees on the stadium tour will receive promotional materials for your company NEW President & ED will recognize your company during the speaking program Company logo prominently displayed at two gaming tables NEW Two event tickets with stadium tour and reserved seating Engraved “High Roller” trophy to present to the night’s winner Picture with winner published in NEAR & Damage Report NEW Electronic book ad will be displayed on several TVs throughout the event

Company logo prominently displayed on gaming table One event ticket with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

Exclusive Casino Night Gift Sponsor- $3,000 Package Includes: NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Prominent dinner station signage Company logo prominently displayed at registration Representative from your company present at registration handing out your gift Three event tickets with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

“Pit Boss” Sponsorship- $2,500

Jim Simeone Texas Hold’Em Tournament Sponsor$1,000 Package Includes: Company logo prominently displayed on final tournament table One event ticket with stadium tour NEW Picture with winner published in NEAR & Damage Report Engraved trophy to present to the night’s winner NEW Electronic book ad will be displayed on several TVs throughout the event

Spin & Win with Bald Hill Auto Group- $650 We will provide our famous four-foot “Spin & Win” wheel with your company logo in the center of the wheel and your company name on five spokes. You provide the prizes. Each attendee will receive complimentary spins as part of the admission price. Spin & Win with your company logo will be listed on all publicity for attendees

Package Includes: NEW Electronic book ad will be displayed on several TVs throughout the event One event ticket with stadium tour

End Zone Signage Sponsor (Jumbotron) - $750 Package Includes: NEW End Zone signage (Jumbotron) complete with company logo/slogan ($2,000 value) NEW Your company logo listed on the website with a link back to your site

Package Includes: NEW End Zone signage (Jumbotron) complete with company logo/slogan NEW Prominent dinner station signage Company logo prominently displayed at one gaming table Two event tickets with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

“Card Shark” Sponsorship- $1,500 Package Includes: NEW Ribbon screens (surrounding the stadium) will display company logo Company logo prominently displayed at two gaming tables Two event tickets with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event

Cup Sponsor- $600 Package Includes: Provide us with 200 cups imprinted with your logo (18oz minimum). Attendees will use these cups all night to hold chips and coupons. One event ticket with stadium tour NEW Electronic book ad will be displayed on several TVs throughout the event NEW Your company logo listed on the website with a link back to your site

Company TableNEW PRICING- $1,125 Package Includes:

Dinner and Dessert Sponsor- $1,000 Package Includes: Two event tickets with stadium tour Prominent dinner station signage Prominent dessert and dessert signage NEW Electronic book ad will be displayed on several TVs throughout the event

NEW Prominent company signage at a VIP reserved table NEW Ten event tickets with stadium tour (cost nine tickets) NEW Two drink tickets

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

March 2015

IN THE AREA

AASP/MA Vendor Appreciation Night Tuesday, March 10 6pm-10pm

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Doubletree Hotel 5400 Computer Drive, Westborough, MA 01581 (508) 366-5511 •

• •

Vendors and Board of Directors Only (shops may attend but must pay $35 per meal) Hypnotist for entertainment Plated Meals

• • •

Two attendees from each vendor company attend for FREE Two complimentary drink tickets for vendor attendees Expanded New England Automotive Report advertising in lieu of vendor gifts

...And Much More! Registration Deadline: One week before the event For more information, please contact Executive Director Jillian Zywien at (617) 574-0741 (phone), (617) 695-0173 (fax) or jzywien@aaspma.org.

16 March 2015

New England Automotive Report

March 2015

18 March 2015

New England Automotive Report

Audi dealers strive to make you an Audi Genuine Parts fan • Audi dealerships have access to over 200,000 Audi Genuine Parts; no other supplier can make that claim • Six parts distribution centers provide daily overnight service to Audi dealers • Non-stocked items are available through the Audi computerized distribution and delivery network • Audi parts departments provide professional customer service that gets you the right part, the first time

Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800-247-3033 Fax: 508-651-6841

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Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860-282-0191 Fax: 860-290-6355 www.hoffmanauto.com

Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721 800-678-0914 Fax: 508-730-1283 www.mattieaudi.com

Audi Shrewsbury 780 Boston Turnpike Shrewsbury, MA 01545 508-581-5880 Fax: 508-581-5880 email: parts@wagnermotors.com www.audishrewsbury.com Audi Cape Cod 270 North St. Hyannis, MA 02601 PH: 508-815-5600 FAX: 508-568-9410 www.audicapecod.com

IRA Audi 105 Andover Street Danvers, MA 01923 800-774-8411 Parts Direct: 978-605-2182 email: pwalke@iramotorgroup.com www.iraaudi.com

New England Automotive Report

March 2015

INSIDE

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

MEMBER BENEFITS

onnello SEO

he Jetsons predicted a future with flying cars, robot nannies and jetpacks. While we may not be quite where Hanna-Barbera expected us to be in 2015, technology certainly keeps advancing at an alarmingly fast rate. The Internet has revolutionized the way that things run in our society. In fact, Google is so popular that in 2006, it was officially accepted into the Oxford English Dictionary as a verb. Even the least tech-savvy individuals know how to use Google, so why is it that there are so many shops that don’t even have a website? An online presence is pivotal to success these days, which is why New England Automotive Report sat down with Scott Gonnello, CEO of Gonnello SEO, to discuss the importance of search engine optimization (SEO) and the benefits his company provides to AASP/MA members to improve their digital image. New England Automotive Report: Tell us a little bit about your business. Scott Gonnello: I never thought of myself as a computer geek. I was writing code on a Commodore 64 before the Internet came out and once it did, in every business I was involved in I was working with computers. So I guess in the end I was a computer geek. These days, Search Engine Optimization (SEO) drives the Internet. SEO helps you get your page in the top one or two pages of search engine results. What we do as a company is teach companies how to manage their website. It’s easy on the Internet to get lost in the competition because the Internet is the only place where people go to look at commercials. Your website is one big commercial. Google is the best place to market your business – bar none. People can find out everything they want to know about you before they do business with you. If you’re not on those first few pages of Google results, you’re losing business. NEAR: Why should shops be actively involved in their online image? Why is a digital presence so important for shops of all sizes? SG: When you meet someone for the first time, you have got your mind made up about that person in a matter of seconds. It is the same thing with your website. People will 20 March 2015

New England Automotive Report

Scott W. Gonnello is considered to be one of the best SEO Consultants in America by many businesses because of his approach when it comes to Optimization. His knowledge and expertise has helped businesses of all sizes, from sole proprietors to large global companies like Victorinox Swiss Army, dominate the search engine results. Scott’s experience as an author and consultant goes back more than 30 years with many accomplishments and recognitions. As a board member of a large Chamber of Commerce for 10 years, he has created many workshops designed to help the small businessperson succeed. These workshops have been seen around the world and are still being presented today. His latest one is from his book, Common SEO Mistakes - Basic Edition: 25 of the Most Common SEO Mistakes That Can Kill Your Business. Scott’s ability to teach SEO is unrivaled. His explanations of these mistakes are quick and easily understood, making them easy to comprehend at any level and, more importantly, easy to fix. Scott’s other business book, Climbing the Food Chain: Business Success From the Ocean’s Depths, helps any individual see the business world clearer and help them become highly evolved by climb their industry’s food chain. Scott Gonnello can be reached by going to his website: www.GonnelloSEO.com.

make up their minds about your business in a matter of seconds within visiting your page. If they see an old-looking website that seems outdated, they’re going to think that your company is outdated. You page is a reflection of your business. Those first few seconds to draw them in are most important. It used to be that people would go through four or five pages of search engine results to find the information that they are looking for. However, in the past few years, these search engines have been optimized and have become more efficient. Because of this, people don’t often stray past the first one or two pages. If your business isn’t listed there, then you’re missing out.

NEAR: What is the best way for companies to get the most out of Google? SG: The first thing to getting the better results in Google is setting up a Google+ page; it’s a really great tool that a lot of companies underutilize. When you search in Google Maps for “shops near me,” those pins that come up come are from Google+ pages. Another thing that’s great about this service is that when you post an article, it goes to 100 percent of your followers. On Facebook, it only gets to one or two percent of your followers; if you want it sent to more, you have to pay a fee. Our company is constantly putting up Google+ articles for our clients, and often when you search for them, the Google+ article comes up more

than their webpage. The truth is, Google owns 70 percent of the market. If you’re focusing on why you’re not showing up on Yahoo! or Bing, it’s a wasted effort.

NEAR: What does your business have to offer AASP/MA members? SG: One of the biggest starting points that we offer association members is a free review of their websites and SEO capabilities. If you’re not really sure how your website is working or where it is in the scheme of things, we will do a free review to check your webpage, page content and where your site lands in search engine results. That service normally costs between $300 and $500, but association members get it for free. When we’re finished with the review and cleaning of their website, they can hire us to do further service, they can take advice we give them and bring it to another company or they can take our recommendations and do the work themselves. Some other services we offer include transfer of websites. If you have a website and would like to transfer to a better software, since cookie-cutter sites don’t do as well in the business world, we transfer those to servers that are more searchable. A higher-end service we provide is full management and SEO, constantly looking for ways to get you found. The problem with most hosting sites is that they don’t update their software, leaving doors open for malware that can shut down your page. NEAR: Why should association members look into your business and what it has to offer? SG: People spend money on marketing. If you’re spending on marketing but not on your website, you’re basically throwing that money away. Websites are like ads – except like a lot of celebrities these days know, something that is on the Internet is there forever. Your digital image is one of the smartest investments you can make as a business owner.

MEET THE BOARD: Adam Ioakim

At last year’s AASP/MA Casino Night, the Executive Committee welcomed an association mainstay to their ranks. A longtime member and previously AASP/MA’s collision division director, Adam Ioakim jumped on with AASP/MA as vice president. Like many others in the industry, Ioakim has been involved in collision repair since he was a kid, getting his start at Hogan and Van Auto Body (Medford) back when it belonged to his father, Andy. “Our shop is family-owned and operated,” Ioakim explains. “I started out working here in high school, learning from the ground up by cleaning cars. I learned not only from my father, but from the technicians, too.” Ioakim graduated from Bentley University with a degree in business. “I was able to learn about the technical side of things, so when I went to school I wanted to figure out everything that’s geared towards the business side,” he says. He followed his college education with stints at Enterprise, Bank of America (as a small-business consultant) and in media sales in order to learn about advertising. Yet he owes his knowledge of his business to his father. “When I finally came back to the shop, my father taught me everything in estimating, dealing with customers, repair blueprinting and everything I needed to know to run the shop,” he states. With this background, he has been able to take the shop into the next generation, something he considers to be one of his biggest accomplishments. “When the shop still belonged to my father, he was keeping up with the technology, but I knew we could do more and I think we brought it to the next level,” he boasts. “My brother George and I [who co-own the shop] try to stay ahead of the technology curve, both from a technical standpoint and an office standpoint.” Ioakim used to attend AASP/MA meetings with his father, so the association is not uncharted territory for him. With all of his experience, there is plenty that he hopes to accomplish in his role as vice president. “To me, it’s all about finding those challenges that affect shops on a daily basis,” he explains. “Insurance companies take so many liberties, and I want to bring those to light. If something is against regulation, someone shouldn’t be able to do it and there’s no functioning vehicle in place to [prevent that from happening]. We have the ADALB, but they only regulate appraisers, not insurance companies - not to mention, their complaint system is broken right now. We need something that doesn’t involve going to court. Ultimately, I want the shop owners to be the ones who handle their business; they should be able to run it the way they want to so they can get the job done right for their customer.” With big aspirations for his role on the Executive Committee, as well as responsibilities at his shop, Ioakim doesn’t get much downtime. What he does like to do when he gets it is go skiing in the winter and on tropical vacations whenever possible. Most importantly, he enjoys spending time with his wife, Amanda, and his two sons, Ashton (19 months) and Alex (4 months). The industry looks forward to seeing all that Ioakim is able to fulfill in his role.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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NATIONAL NEWS by Joel Gausten

CloSing ArgUMenTS heArd in $34M CT CASe one of the industry’s longest and most discussed legal battles will soon come to an end. On January 13, the Connecticut Supreme Court heard closing arguments in the Hartford Fire Company’s appeal in the class action lawsuit filed against them by the Auto Body Association of Connecticut (ABAC) and hundreds of body shops in the state. Originally filed in 2003 and eventually certified as a class in a 5-0 decision, the suit claims that The Hartford regularly engaged in unfair business practices by using its in-house employee appraisers and network of DRP facilities to artificially suppress the Labor Rates paid to shops in Connecticut. In November 2009, a Supreme Court jury in Stamford awarded the shops $14.7 million for compensatory damages. Three years later, Connecticut Superior Court Judge Alfred J. Jennings awarded an additional $20 million in punitive damages after considering post-trial motions by the plaintiffs. Additionally, he issued an order granting injunctive relief requiring that The Hartford “refrain from interfering with the independent judgment of motor vehicle physical damage appraisers in its employ in the performance of their duties…including the determination

of the hourly rate to be applied in calculating the labor component of costs to repair.” The Hartford appealed the order, which led to this latest - and final - courtroom showdown. Tony Ferraiolo, current ABAC president and a named plaintiff in the suit, tells New England Automotive Report that he remains a firm believer in the merits of the case even after 12 years on the front line. “I still believe that the only way you’re going to get change is through litigation,” he says. “Until [insurers] are forced to follow the law, they are not going to voluntarily do it. You can come up with a Labor Rate Survey that says, ‘This is our Labor Rate based on all these shops’ information,’ and they’ll basically disregard it. They’re not going to act unless a court of law forces them to do it.” The class’ attorney, David Slossberg, believes that the previous successes enjoyed by his clients during the case has greatly increased the chances of a final victory. “We felt that we had a very strong case against The Hartford,” he says. “Not only did the jury agree, but the Judge agreed. The ABAC and the named plaintiffs have been very determined to see this through. We remain very hopeful that at the end of the day, the verdict and the Judge’s rulings will be upheld.” According to Ferraiolo, the class action suit is for “any licensed repairer [in Connecticut] who could prove that they did business with The Hartford.” Hartford DRP shops are not eligible for the settlement. In addition to the Hartford suit, ABAC is currently among the plaintiffs in an ongoing suit against Progressive for steering and other issues. That case is now in its eighth year. If decided in the plaintiffs’ favor, the Hartford case could have a considerable effect on current conditions within the Connecticut - and national - auto body field. “What [a positive outcome] would do is require The Hartford to follow the law,” Slossberg says. “Presumptively, anyone else who is in the insurance industry and not following the law will be on notice. This is about leveling the playing field for the auto body repair shops to be able to negotiate a fair and impartial Labor Rate for their highly skilled labor.” Slossberg expects the Court to render its decision during this calendar year. Regardless of where this crucial chapter in collision repair history ends up, he believes that the journey shows just how dedicated and resilient auto body professionals can be when standing up for what’s right. “What the Auto Body Association of Connecticut has done by pushing back against a large insurance company like this and seeing this through is really extraordinary,” he says. “They should be commended for that.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

March 2015

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New England Automotive Report

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NATIONAL NEWS by Joel Gausten

diSTriCT JUdge STAllS Fl CASe, diSregArdS ConSenT deCree On January 21, the collision industry’s long-running legal fight against unfair auto insurance practices hit a roadblock in a Florida court. In a controversial order issued in A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al. (one of the more than 20 antitrust suits currently consolidated in the Middle District of Florida), US District Judge Gregory A. Presnell not only dismissed six of the seven counts in the case without prejudice, but also delivered a blow to the 1963 Consent Decree’s presence in today’s legal system. Judge Presnell dismissed one count in the case, “quasiestoppel,” with prejudice, meaning that the plaintiffs cannot re-file a revised argument for it. “Quasi-estoppel” prevents one party from taking a position inconsistent with a position that was previously advocated, regardless of whether the party to be estopped intended to misrepresent or conceal facts. Judge Presnell stated in his ruling that although Florida courts have long recognized that equitable estoppel serves as a defense, it was an unsuitable argument from a plaintiff perspective: In Count III, the Plaintiffs seek to have quasi-estoppel applied in regard to the repair estimating databases...The Plaintiffs allege that the Defendants “have relied upon and asserted the validity/authority of the databases … when it has been to their respective advantage” but that, in other instances, the Defendants “have refused to compensate and/or fully compensate Plaintiffs for materials expended and work performed, including labor and labor rates, upon reliance of these very same guides, claiming that they are unnecessary to complete the work at hand”...The Plaintiffs seek to have the Defendants estopped from denying the applicability and reasonableness of the repair databases...However, while Florida courts recognize the doctrine of quasi-estoppel, they do not recognize it as a cause of action. The Plaintiffs do not seriously attempt to argue to the contrary, and do not cite any cases in which a Florida court has permitted anyone to bring suit on the grounds of “quasi-estoppel.” The Court’s research has also failed to uncover any such cases.

original 1963 agreement have anything to do with the current legal matter in Florida: In the Amended Complaint, the Plaintiffs repeatedly refer to a consent decree entered in a 1963 suit between the United States on one side and three insurance trade associations on the other. (Doc. 167-5). Although some of the practices at issue in the consent decree are alleged to have occurred in the instant case, none of the parties in this case were parties to the 1963 case, and the Court does not find the 1963 consent decree to have any relevance to the instant case. In a special report by www.RepairerDrivenNews.com posted the day after Jude Presnell’s order, plaintiff legal counsel Allison Fry (Eaves Law Firm) stressed that the Judge’s ruling applied only to the Florida suit. The story added that the Judge’s subsequent rulings “would apply to each of the states in the [Multidistrict Litigation] separately with regards to their arguments and state law,” although “the Judge’s decision on the federal antitrust issues in one state could have repercussions on others.” As this issue went to press, the plaintiffs filed a 92-page amended complaint to address the counts previously dismissed without prejudice. The full complaint can be read at www.repairerdrivennews.com/wp-content/ uploads/2015/02/gov.uscourts.flmd_.294598.296.0.pdf. The full text of Judge Presnell's original order can be read online at www.repairerdrivennews.com/wp-content/ uploads/2015/01/gov.uscourts.flmd_.294598.291.0-01-2115.pdf. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Regarding the Consent Decree, Judge Presnell commented that the much-discussed document didn’t hold weight in this case since none of the parties involved in the New England Automotive Report

March 2015

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March 2015

NORTHEAST 2015 Hotel Information Coming to the show from out of town? These hotels are within walking distance from NORTHEAST:

NEWS FROM NORTHEAST®

NORTHEAST 2015 TO WELCOME I-CAR, AASP AFFILIATES On March 20-22, collision repairers throughout the east coast and beyond will gather at the Meadowlands Exposition Center in Secaucus, NJ for the 38th Annual NORTHEAST Automotive Services Show, hosted by the New Jersey chapter of the Alliance of Automotive Service Providers (AASP). This special three-day event will give New England repair professionals a rare chance to explore the national automotive scene without having to get a plane ticket. Only weeks away from NORTHEAST 2015’s arrival, Platinum Sponsor BASF is setting the stage for their most memorable experience yet. BASF is pleased to welcome Ryan Friedlinghaus of West Coast Customs for a special autograph session on March 21. This added jolt of genuine star power demonstrates BASF’s commitment to providing something truly special to the AASP/NJ community. Gold Sponsor Ford is also set to make a gamechanging appearance at this year’s show. In addition to boasting a sizable booth, Ford service engineers will present examples of the improved repair elements of the new 2015 F-150, including a look at the separately serviceable lower control arm brackets, the inner fender reinforcements that can be replaced more easily, the floor pan, cross member and rocker panel sectioning opportunities, along with the new bpillar design that can be replaced without disturbing the roof. Other topics covered will be enhanced service information, available training courses and recommended tools and equipment for repairing the 2015 F-150. In addition to showcasing hundreds of industry vendors, AASP/NJ will once again co-host the NORTHEAST East Coast Resolution Forum & Leadership Meeting with the Society of Collision Repair Specialists (SCRS). A NORTHEAST mainstay for decades, the afternoon gathering (held this year on Friday, March 20) welcomes industry leaders and participants from across the country for an in-depth, interactive discussion on the current state of the collision repair industry. The East Coast Resolution Forum has always provided an exceptional outlet for auto repair industry market leaders and influential representatives to network and learn from other state and regional collision repairers or associations facing very similar issues. NORTHEAST organizers anticipate this year’s Forum to provide the same stimulating dialogue and insight that attendees have come to expect. The East Coast Resolution Forum will again be moderated by longtime participant Ed Kizenberger, executive director for the New York State Auto Collision Technicians Association (NYSACTA) and the Long Island Auto Body Repairmen’s Association (LIABRA).

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Bolstered by the standing-room-only success of their courses held last year at the show, I-CAR is excited to present two classes at NORTHEAST 2015 “Vehicle Technology and Trends 2015” and “Aluminum Exterior Panel Repair and Replacement” on March 21. “Vehicle Technology and Trends 2015” will provide an “auto show view” of vehicles that will soon be commonplace in many repair facilities and delivers information that repair professionals will need to know to be prepared to perform complete, safe and quality repairs. This will include a glimpse into some of the features, technologies and materials found on new North American vehicles (including Chrysler, Ford and General Motors), plus a look into the new features found on Asian and European models. A course designed to address one of the industry’s fastest-growing trends, “Aluminum Exterior Panel Repair & Replacement” will present an overview of where aluminum is used in vehicles, and its characteristics. The class will explore techniques and certain differences between repairing aluminum and steel, while students will see demonstrations and explanations of several panel attachment and removal methods. The attendees will also learn about preparation and application, rivet bonding, hem flange removal, hemmed door skin replacement, welded exterior panel removal, joint preparation and a variety of other aluminum-related topics. Both classes will be taught by I-CAR mainstays Pete Fryzel and Michael Bonsanto. NORTHEAST 2015 will also serve as the home of a variety of nationally focused industry meetings and events that will draw attendees from across the country. On March 19, the National Automotive Service Task Force (NASTF) will hold pre-show Spring Board and General Meetings at the Exposition Center. For more information, please visit www.nastf.org. On March 20, AASP affiliate representatives from around the country will gather at NORTHEAST for the Spring National Board Meeting. To learn more about AASP National, visit www.autoservice providers.com. A complete schedule for NORTHEAST 2015 is on the facing page. For more information (including registration details), visit www.aaspnj northeast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show on YouTube page (www.youtube.com/AASPNJNORTHEAST) or follow the show on Twitter @AASPNJNORTHEAST.

New England Automotive Report

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NORTHEAST 2015 HOST HOTEL! Hyatt Place-Secaucus 575 Plaza Drive, Secaucus, NJ 07094 Phone: (201) 422-9480 Fax: (201) 422-9443 www.hyatt.com Courtyard by Marriott 455 Harmon Meadow Blvd., Secaucus, NJ 07094 Phone: (201) 617-8888 Fax:(201) 319-0035 www.marriott.com Meadowlands River Inn 250 Harmon Meadow Blvd., Secaucus, NJ 07094 Phone: (201) 867-4400 Fax: (201) 865-7932 www.meadowlandsriverinn.com Holiday Inn - Harmon Meadow 300 Plaza Drive, Secaucus, NJ 07094 Phone: (201) 348-2000 Fax: (201) 348-6035 www.hisecaucus.com Embassy Suites 455 Plaza Drive, Secaucus, NJ 07094 Phone: (201) 864-7300 Fax: (201) 223-0088 www.embassysuites.com Hotels Five Minutes or Less from NORTHEAST: Holiday Inn Hasbrouck Heights Phone: (201) 288-9600 Fax: (201) 288-6973 283 Route 17 South, Hasbrouck Heights, NJ 07604 www.meadowlandshi.com La Quinta Inn & Suites 350 Route 3 West, Secaucus, NJ 07094 Phone: (201) 863-8700 Fax: (201) 863-6209 www.lq.com (Shuttle Available) Crowne Plaza – Meadowlands Phone: (201) 348-6900 Fax: (201) 348-1407 2 Harmon Plaza, Secaucus, NJ 07094 www.cpmeadowlands.crowneplaza.com 15 Meadowlands Parkway Secaucus, NJ 07094 www.redroofinn.com

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March 2015

2015 Ford F-150 Instruction Sheets Now Available NEWS FROM FORD

As the all-new 2015 Ford F-150 begins hitting the road in significant numbers - and finding its way into collision repair shops - Ford is helping repairers get ready by rolling out 51 unique repair instruction sheets. Available at no charge through www.motorcraftservice.com and the Inter-Industry Conference on Auto Collision Repair (I-CAR), the sheets provide important detailed instructions on part removal and installation procedures for all key areas of the vehicle. “Many aspects of this truck were designed from the very beginning with repairers in mind,” said Gerry Bonanni, Ford senior damageability engineer. “With a high-strength steel frame and a cab and pickup box of high-strength, military-grade aluminum alloys, the truck features an upstream design that will enhance and improve its overall repairability. A large component of that is the development and inclusion of the 51 instruction sheets, which call out repairs in detail and provide repairers with a unique step-by-step repair process to help them restore the vehicle to proper working order.” The instruction sheets - which come packaged with any part that needs to be installed with rivets and/or adhesives - also provide a wealth of other important information, including part numbers and descriptions, the number of blind or self-piercing rivets needed and the proper Ford-approved adhesives to use. In addition, diagrams on the instruction sheets show the precise placement of the rivets and adhesives in the repair. The instruction sheets are segmented by Regular Cab, Super Cab and Crew Cab versions of the truck, and cover six categories:

Radiator Core Support and Front Upper Rail Cowl and Dash

Roof and Roof Rails

Doors and Cab Side (Outer Uniside, Pillars, Rocker Panel)

Floor Pan, Floor Crossmembers and Cab Rear Panel Box

“It was important to convey to repairers that the aluminum repair procedures approved for the truck are very similar to steel repair procedures, just with different techniques,” Bonanni said. “One way we accomplished that is through the instruction sheets, which provide more than the usual repair information to help technicians lay out their overall repair strategy up front.” It’s the first time Ford has released comprehensive collision repair instruction sheets to I-CAR on this scale through the RTS Portal, which highlights the value of I-CAR’s ongoing industry/OEM linking pin activity focused on making critical collision repair information available and accessible to the industry. “It is important for collision repair professionals to have the information readily available to repair this popular vehicle,” said Jason Bartanen, director of industry technical relations for ICAR. “Working with Ford to provide this information via the RTS Portal improves industry access to the

An example F-150 instruction sheet

information required to support complete, safe and quality repairs.” I-CAR also offers more in-depth training on the repair of the new F-150 through its structural repair course (# FOR06) and an aluminum welding and certification course (# WCA03), both of which were created with Ford. The 2015 Ford F-150 collision repair instruction sheets can be accessed at www.motorcraftservice.com or through the I-CAR Portal at www.i-car.com/rts. For questions on repairs to the 2015 F-150, or any other Ford Motor Company vehicle, contact Gerry Bonanni at (313) 317-9000 or the Ford Collision Parts Hotline at cphelp@ford.com. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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March 2015

LEGAL PERSPECTIVE

peRsONAl lIAbIlIty by James A. Castleman, Esq.

Just because your business is incorporated or is a limited liability company (LLC), doesn’t mean that you are off the hook if someone decides to sue you personally. What? How can that be? Everyone knows that corporations and LLCs protect their owners from being responsible in their individual capacities for the debts or negligence of the business. Well, to a large degree, that is true - but not completely. If you don’t take the proper steps to make sure that the rest of the world knows the true nature of your business entity, be careful. Do you do enough to protect yourself in the way that you run your business?

This case hit home with me. I have had many clients over the years who thought that they were personally protected because they were operating as a corporation or an LLC, but who did not take the minimal steps necessary to assure that a creditor would not be able to seek payment from them personally. Quite frankly, I have seen it often in the collision repair industry. If you have a formal business entity, take heed. It is not that hard to make sure that you are protected from personal liability, but you actually have to take the steps that will ensure that your individually owned assets continue to stay beyond the reach of business creditors.

A CAUTionAry TAle Recently, a couple of dog breeders learned a lesson about personal liability the hard way when they ended up paying $60,000 out of their own pockets in a consumer protection claim in which they were sued for misrepresenting the pedigree of a dog that they sold. Although they were operating their business as a legitimately formed limited liability company, the Massachusetts Court that heard an appeal of the case did not think that the owners of the company had taken enough steps to inform their customer of the nature of their business. They had not filed a “d/b/a” certificate with their town clerk. They did not identify themselves as an LLC on their letterhead or on their website. And on their sales contract, they listed their individual names as “agents for” their company, stating the company name, but not including the “LLC” notation. As the Court found, “It is well established that individuals acting on behalf of a corporate entity have the burden to disclose such representative capacity; otherwise, they may be held personally liable.” Based on the way that the dog breeders had operated their business, the Court found that there was no evidence that they had “at any point” put the buyers on notice that they were acting as an LLC. Rather, they gave the buyers - and the public in general the impression that they were “individuals who did business under a trade name.” As a result, the Court ordered them to pay the judgment, which included multiple damages and attorneys fees, from their personal assets.

The BASiCS oF enTiTy proTeCTion Under the law, an individual who acts for himself or herself, or as a sole proprietorship or partner in a partnership, is personally liable for the debts and actions of his or her business and of the employees acting on behalf of the business. On the other hand, certain forms of business entities are considered to be separate from their owners. Corporations and LLCs may be the best known, but there are also certain trusts (but not all trusts) that provide the same level of protection for their owners. If someone enters into a contract with one of these entities, then the owners generally have no personal responsibility for performing under the contract. That means that if a supplier sells products to a corporation or an LLC that has few assets of its own and the supplier does not get paid, then they cannot sue the owners of the entity personally for the debt, no matter how wealthy the owners may be, or how much the supplier has dealt directly with the owners. By the same token, if a person is injured as the result of negligence of someone working for the entity, then the owners are protected from personal liability for the injuries that the person sustained. However, there are limits. As an example, for negligence actions, not only is the entity liable for the negligence of its employees, but the individual employee who acted negligently may also be held personally liable. If the person who acted negligently also happens to be one of the owners, then that owner can be held personally responsible for the injuries.

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Additionally, an owner can be determined to have been negligent just by having negligently overseen the conduct of an employee, or by having been negligent in hiring an employee. If an employee is constantly smoking around flammable materials and the owner of the company knows about it but does nothing, then the owner could be held personally liable when the smoking employee one day flicks an ash that blows up a customer’s vehicle in the paint booth. As was made abundantly clear in a well-publicized case a few years ago, owners of day care facilities can be held liable for hiring a sex offender who ends up molesting a child at the facility, if the owner has not conducted proper background checks when hiring employees. As a result, liability insurance should almost always be purchased for most businesses, both to protect the assets of the business, and to protect the individual employees and owners of the business. diSCloSUre oF The “prinCipAl” As noted in the dog breeding case, in order for an individual to avoid personal liability for their actions taken in the course of their business, they must also disclose the true identity of the entity that they are acting for. In legal terms, the agent of the business must disclose who his true “principal” is. In other words, if you are operating as a corporation or an LLC, you must disclose the true identity of the entity to anyone you are dealing with. It is not enough to just file Articles of Organization with the Secretary of State. When you are entering into repair contracts, buying supplies and otherwise dealing with customers, suppliers and everyone else, the world must know that you are acting on behalf of the entity and must know the true name of the entity. It is common for a business to operate under an assumed or “fictitious” name. A business commonly known as “Joe’s Auto Body” may actually be incorporated as ABC Repair Services, Inc., or even Joe’s Auto Body, Inc. But unless the identity of the true entity has been disclosed, Joe may be personally liable for the debts and actions of the business and its employees. After all, when Joe’s friends and neighbors take their cars to his shop for repairs, they are relying on their relationship with Joe, and have no reason to know that Joe is actually operating as some type of limited liability entity. how do yoU proTeCT yoUrSelF? There are several simple steps that you can take to assure that you are protected from personal liability. You just have to make sure that you take them. One easy way to protect yourself is just to disclose on all of your business forms, advertising and signs who you really are. It is not that hard to change your repair orders, signs, website and letterhead to read: “ABC Repair Services, Inc., d/b/a Joe’s Auto Body.” The ABC Repair

Services, Inc. lettering can be in much smaller type than the better-known Joe’s Auto Body trade name - just so long as it is there and is readable. Note that, to be a protected corporation in Massachusetts, your business must have the words “corporation,” “corp.,” “incorporated,” “inc.,” “limited,” “ltd.” or “company” in its name. (Oddly, the abbreviation “co.” is missing from the list of statutorily allowed words.) If you are a foreign corporation, you may substitute similar words in the native language of your country, e.g., GmbH for German companies. To be a protected LLC, your business must have the words “limited liability company,” “LLC,” “limited liability partnership” or “LLP” in its name. If you are going to disclose your true entity name, you must have legitimately formed your entity by filing Articles of Organization with the Secretary of State, and you must state the full entity name, including the mandated corporate or limited liability appendage: It must be “ABC Repair Services, Inc.,” not just “ABC Repair Services.” Another way to protect yourself is to file a fictitious name certificate, commonly called a “DBA” or “d/b/a” certificate with your municipal Clerk. In fact, if you are doing business under any name other than your true entity name, you are required by statute to file one of these forms and to renew it every four years: “Any person conducting business in the Commonwealth under any title other than the real name of the person conducting the business…shall file in the office of the clerk of every city or town where an office of any such person…may be situated a certificate stating the full name and residence of each person conducting such business, the place, including street and number, where, and the title under which, it is conducted…“ There is also a fee to be paid. The fee is $1, or as otherwise set by the municipality. Most cities and towns choose to charge more, but it is usually still a reasonable amount. The purpose of the DBA certificate is supposedly to protect creditors, so that they know with whom they are truly dealing. But it is also a protection for the owners of the business, because it gives notice to the world of what the true entity is. A final step that you should take to protect yourself is to make sure that you always make it as clear as possible that your business is actually a separate entity. Even if you put your true business name on your letterhead and file a DBA certificate, you can get yourself in trouble if you tell your customers or suppliers, “Don’t worry about it; you can take my word for it,” if you sign your supply orders personally or if you tell everyone that you will personally stand behind your company’s work. If you do any of these things, you are becoming a guarantor, or holding yourself out as the principal instead of your company. continued on pg. 54 New England Automotive Report

March 2015

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New England Automotive Report

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FROM PUPIL

TO PLATINUM: INDUSTRY FEATURE

by Joel Gausten

hroughout its 35-year history, I-CAR has strived to provide the educational tools necessary to train a professional collision repair workforce. Over the last two years, the not-for-profit organization has expanded its reach beyond the body shop world and into America’s vocational school system in revolutionary ways. In August 2012, I-CAR launched an Education Edition of its Professional Development Program (PDP). The result of years of research and extensive conversations with hundreds of professionals from the education and repair communities, this special two-year curriculum was designed to give vocational school students an opportunity to reach ProLevel 1 status in the PDP’s Refinish Technician and Non-Structural Technician roles and leave school with ICAR Platinum recognition. By entering the workforce with these achievements already in place, a young technician has the credentials necessary to not only become a valued member of a professional collision repair team, but also to aid his or her employer by being one of four Platinum individuals needed on staff in order for a facility to earn I-CAR Gold status. As of this writing, the Education Edition is being utilized by 320 schools across the country, including 25 of the 41 vocational facilities in Missouri. I-CAR plans to begin offering a welding component to the curriculum later this month, while this spring will see the debut of a new Educator role within the PDP that will allow teachers to achieve Platinum status as well. This will include a requirement that instructors must have to successfully pass any ICAR course they intend to teach to students. Bill Stage, I-CAR’s senior director of segment development, sees the Education Edition as a way to bridge the ever-widening gap between collision repair career and technical education facilities and the industry they serve. “We want to give everyone in the industry the knowledge and skills to fix the cars right for the ultimate benefit of the consumer,” he says. “We want the graduating students to be productive from day one; that is what the industry has told us they want.”

Image © www.thinkstockphotos.com

INSIDE I-CAR’S VOCATIONAL SCHOOL CURRICULUM

Well known in the industry for its progressive attitude towards education, the Roger L. Putnam Vocational-Technical Academy in Springfield is one of a growing list of Massachusetts schools to embrace the I-CAR curriculum. Since implementing the program last year, Putnam instructor John Kennedy has been nothing but impressed. “[The program] breaks it down so that the students are understanding what it is to be a professional and what they have to look forward to [in the field],” he says. “The more knowledge [the students] have, the more money they’re worth. With the high-tech vehicles today, when a car gets into an accident, you have to have the training and knowledge to repair it. We try to reinforce that with the I-CAR curriculum.” In order to bring the program to their auto body department, a school pays I-CAR an annual $1,100 licensing fee. A $50 “start fee” is added for each student who enters the program, while an additional $100 is applied for each student who takes the End of Program Exam before graduation. Although I-CAR acknowledges that this amount might be prohibitive for some schools in an era of budgets cuts, Stage notes that the organization is willing to offer “heavily discounted” pricing for the first year to help a school get started. Additionally, I-CAR’s partnership with continued on pg. 50

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COVER STORY

THE PUSH CONTINUES: AASP/MA Announces New Legislation It’s time to improve the collision repair industry once and for all. Although AASP/MA has been a regular presence at the State House for many years, the association has just launched the most extensive legislative campaign in its history. From protecting consumer vehicle warranties to reshaping the ADALB, AASP/MA’s current bills aim to bring muchneeded change to the relationships between repairers, insurers and the motoring public. This month, New England Automotive Report connects with AASP/MA Executive Director Jillian Zywien for an inside look into 44 March 2015

how this latest push could finally bring relief to a struggling industry. pARts & CONsumeR pROteCtION When consumers take their collision-damaged vehicles to a repair shop, they trust that facility to ensure the pre-accident condition and safety of that automobile. But what happens when a repair shop is urged by an insurer to use an alternative replacement part that could adversely affect the customer’s vehicle warranty? In an

New England Automotive Report

effort to better protect Massachusetts car owners, AASP/MA is promoting a bill that seeks to prevent a motor vehicle dealer or registered repair shop from taking any action that would void the motor vehicle’s existing warranty. A second piece of warrantyrelated legislation asks that any estimate that includes non-OEM parts include a notice in 12-point type stating that such products were not provided by the original manufacture and could void existing warranties. Above all, these bills aim to protect the

customer from having to deal with unnecessary complications from a repair when they should simply be put back to their pre-loss state. As Zywien explains, “The AASP/MA warranty legislation is a consumer protection piece that prevents registered repair shops from taking any action that voids a motor vehicle warranty. It does not state what must be in the warranty or what the warranty covers. The terms of the warranty are what they are. This legislation simply prevents a registered repair shop from taking any action that will void the motor vehicle’s warranty. Accordingly, this proposal does not run contrary to any state or federal law. “Additional legislation supported by AASP/MA would further protect consumers by ensuring they were informed about their rights as motor vehicle owners and policyholders,” she adds. “The legislation, which increases the existing 10-point font size disclosure by two points, requires that notice be provided to consumers informing them of their existing right under law to choose a registered repair shop of their choice. The legislation further protects consumers by requiring notice be given to them at the start of their experience when reporting a claim. Ultimately, just as in health care, the way to reduce costs and improve quality is to educate consumers. AASP/MA’s legislation works towards empowering consumers with knowledge about their rights and responsibilities.” ADJustINg the ADAlb When lawmakers consider AASP/MA’s current legislative proposal, they will need to give some serious thought to how things are done at the Auto Damage Appraiser Licensing Board (ADALB). AASP/MA currently has two bills that seek to change the structure of the Board. First, the

association is asking that the ADALB establish two new Board positions - a representative of the Attorney General’s Office and a member of the general public to represent consumers. These members (as well as the rest of the Board) would be subject to new term limits that would end an individual’s tenure after two three-year terms. Additionally, AASP/MA has crafted legislation that calls for the Board to be moved under the Massachusetts Division of Professional Licensure. In terms of the personnel structure of the ADALB, AASP/MA feels that the proposed additions will help the Board better represent the interests of the Massachusetts motoring public. “As the business of insurance has become more intertwined with the activities of licensed professionals such as appraisers, it is becoming more important to have a consumer representative as part of the discussion,” Zywien says. “Most licensing boards have one or two public members already. That said, this legislation also includes a representative of the Attorney General’s office, which has one of the Commonwealth’s strongest consumer protection divisions, as part of this process as well. Many people forget, but a motor vehicle is often one of the two or three most expensive purchases they will ever make.” Regarding the second ADALBrelated bill, Zywien and the rest of the AASP/MA Legislative Committee believe that placing the ADALB under the care of the Massachusetts Department of Professional Licensure (DPL) is a crucial – and necessary – change to the way things currently are. “The ADALB is focused on the licensing of auto damage appraisers,” she explains. “The Massachusetts Department of Professional Licensure [DPL] currently licenses over 330,000 professionals throughout the Commonwealth. It is responsible for a vast majority of all licensed professions in

the Commonwealth, except for licensed appraisers. The ADALB is currently governed by the Department of Insurance, which licenses insurance companies and insurance producers. An appraiser is a licensed professional who is neither an insurance company, nor an insurance producer; the DPL is a more appropriate governing body.” the RAte DebAte RetuRNs Of course, AASPMA wouldn’t think of hitting the State House again without a Labor Rate-related bill in its arsenal. With Commonwealth repairers facing yet another year with the lowest Labor Rate in the nation, the association will be pushing legislation that requires insurers to set the hourly rate in Massachusetts at the average of the hourly rates paid by insurers for repairs in Connecticut, New York, New Hampshire, Rhode Island and Vermont. Establishing a Labor Rate based on the average rates of these neighboring New England states would have a substantial – and desperately needed – impact on the auto body industry here at home. “This legislation would have many benefits for both workers and the general public,” shares Zywien. “First, as anyone in the repair industry knows, attracting and retaining good employees can be difficult. An increase in the Labor Rate will allow body shops to increase wages paid to their employees, thereby attracting a quality workforce while retaining its experienced workforce. Second, the public benefits when quality employees are paid a rate which allows them to work in this industry for a long time, further developing the skills to repair cars quickly and correctly. The presence of a trained and experienced body shop employee can have lasting impacts on the quality and, most importantly, safety of a motor vehicle. continued on pg. 50

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EQUIPMENT AND TOOLING

geTTing The oeMS on yoUr Side: Assured performance network It can be difficult when an insurance company tells you that they don’t pay for X, Y and Z. That’s why knowing that everything you are doing is mandated by the manufacturer, and that you are recognized for doing so in your market, can help in these struggles with carriers. Assured Performance has developed a network of qualified shops that meet or exceed OE standards in having the proper tools, equipment, training and facilities. The Assured Performance Certification is recognized by Ford, GM, Chrysler, Nissan and Infiniti. General tool and equipment requirements for Assured Performance include the following: A Squeeze-type Resistance Spot Welder that produces a minimum of 600 pounds of clamping force and 10,000 amps of current at the electrodes. Electronic 3D Measuring Capability. A 220-volt Gas Metal Arc (GMA)/Metal Active Gas (MAG) welder. An R134a refrigerant recovery and recycling system or a sublet provider. Training requirements include the following: I-CAR Gold Class. Specialized repair equipment, training or certifications such as OEM certification or ASE Blue Seal. Technical Training-2015 Ford F-150 Structural Repair Training. (I-CAR FOR06) Technical Training-Welding Training & Certification(TM): Ford Aluminum GMA (MIG) Welding. (I-CAR WCA05) Aluminum tooling and equipment requirements include the following: A 220-volt Pulse MIG welder specifically for aluminum. A designated set of hand tools specifically for aluminum and containing all required hand tools per Ford F-150 CRP.

A dent extraction system specifically designed for aluminum including an aluminum stud welder, heat gun, pyrometer and aluminum hammer. A specialized aluminum Self Piercing Rivet (SPR) gun approved by Ford Paint and Body Technical Center. (Currently, only Henrob and Pro Spot SPR rivers are approved.) So how much does the aluminum equipment cost? According to Assured Performance Network’s Vice President of National Certification and Network Development Aaron Clark, the investment can range anywhere from $40,000-$60,000. “It really comes down to what a shop already has,” he says. “As an organization, we’re not concerned about the brand of equipment. It just needs to meet the requirements. If you don’t have the general requirements for steel, you could be looking at an additional cost for a $15,000 spot welder or a $28,000 spot welder. Which one do you want? There are some variables that exist that could more than double the cost of entry into the program. But it all depends on the user’s wants, needs and desires.” With all of this information, the last question is, “How do I get certified?” The first step is to visit www.certify myshop.com and complete the application process. After filling out the initial application and business information, a Business Capability Assessment is generated. This ensures that your business meets the minimum standards for certification. The system will score you and illustrate any deficiencies that exist. When the requirements are met, an on-site inspection and audit to prove compliance is necessary. If all requirements are met, your shop can be Certified and Recognized by several manufacturers. Certification-Recognition for Ford, Chrysler, GM and the Enterprise Elite Service Partner Program, has an annual fee of $2,950. To add Nissan to that list costs an extra $850, and Infiniti certified is an additional $1,000, these additional marketing fees give the shop access to On Demand Marketing options for direct to consumer advertising.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

For more information on Assured Performance Network, visit www.assuredperformance.net. 48 March 2015

New England Automotive Report

GENUINE NISSAN PARTS

MAKE ALL THE DIFFERENCE.

Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shopâ&#x20AC;&#x2122;s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts. Contact these Nissan dealers for all your parts needs: Clay Nissan of Newton 431 Washington Street Newton, MA 02458 Toll Free: 888-726-9924 Fax: 617-558-6326 E-mail: rphelan@claycars.com Web: www.claycars.com

Kelly Nissan of Beverly 420 Cabot Street (Route 1A) Beverly, MA 01915 Direct: 978-921-0146 Fax: 978-927-6823

Mastria Nissan 1305 New State Highway Raynham, MA 02767 Direct Toll Free: 800-248-2458 Direct Fax: 508-802-6118 E-mail: parts@mastrianissan.com

Web: www.mastria.com

Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940 Toll Free: 1-800-698-9280 Fax: 781-598-8026 E-mail: BSherman@Kellyauto.com

Premier Nissan of Newport 295 E. Main Road Middletown, RI 02842 Phone: 401-619-5050 Fax: 401-847-4559 www.premiernissanofnewport.com

Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: dcourtois@kellyauto.com www.kellyauto.com

New England Automotive Report

March 2015

indUSTry FeATUre continued from pg. 40 the Collision Repair Education Foundation provides free Education Editions to 50 schools annually as part of the Foundation ‘s Ultimate Collision Education Makeover Grants. (More information on these grants, including what schools need to do to apply by the May 29 deadline, is available at

http://collisioneducationfoundation. org/ultimate-collision-educationmakeover-grant/). For a complete overview of the Professional Development Program Education Edition, please visit www.i-car.com/home/educationalprograms/Career-technical-school-

programs/pDp-education-edition(pDp-ee). Information is also available through www.collision careers.org, a special I-CAR-created site for students interested in pursuing a career in collision repair. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Cover STory continued from pg. 45 Under the proposed legislation, Labor Rates in Massachusetts would simply be the average of its bordering states, but will never be the highest in the region.” Although it has long been a common tactic for insurers to claim that increasing the Labor Rate (especially in the way suggested by AASP/MA’s legislation) would increase policyholder premiums, Zywien is quick to calm these concerns. “Premiums do not have to rise to account for an increase in the Labor Rate,” she reasons. “There are many areas where insurers have the flexibility to address an increase in the Labor Rate. Whether redirecting advertising and marketing dollars to the benefit of policyholders, or in the same way insurers are able to offer special pricing on plans, these companies presently have the ability to address this without raising premiums. According to a report conducted by J.D. Power, the personal auto insurance industry spent more than $5 billion in marketing and advertising in 2010 alone. This figure has increased each year since.” As is evident in this feature, AASP/MA plans to make 2015 a pivotal year for the collision industry’s involvement in the Legislature. For more information on this legislation – including how you can help push the bills along – please contact AASP/MA at (617) 574- 0741.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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New England Automotive Report

BOSTON VOLVO VILLAGE Parts Direct: 800-336-2355 Fax: 617-560-1742

PORSCHE OF NORWELL Parts Direct: 888-744-8810 Fax: 781-878-1063

AUDI NORWELL Parts Direct: 888-744-8810 Fax: 781-878-1063

parts@bostonvolvo.com

parts@porschenorwell.com

parts@audinorwell.com

NISSAN VILLAGE Parts Direct: 888-309-0980 Fax: 508-699-2396

CHARLES RIVER SAAB Parts Direct: 617-923-0014 Fax: 617-995-7785

parts@nissanvillage.com

pvincent@crsaab.com

VOLVO VILLAGE OF HINGHAM Parts Direct: 781-829-3120 Fax: 781-829-3193 parts@volvohingham.com

VOLVO VILLAGE OF DANVERS Parts Direct: 978-741-3474 Parts Fax: 978-624-4455

HONDA VILLAGE Parts Direct: 800-555-4235 Fax: 617-965-3743

HYUNDAI VILLAGE OF DANVERS Parts Direct: 888-227-0956 Fax: 978-605-2640

splaisted@volvodanvers.com

parts@hondavillage.com

jperperian@hyundaidanvers.com

• Accurate, professional wholesale staff • Fast Delivery to Your Door • Competitive Discounts • Large Inventory - Over $4 million in mechanical and collision parts • Collision Link

For almost 50 years Ray Ciccolo has been supporting the retail and wholesale automotive market in the metropolitan Boston area. Your satisfaction is our first priority.

VILLAGE WHOLESALE HOTLINE: 1-855-VAG-PART Visit us on the web: www.villageautomotive.com 1-855-824-7278 New England Automotive Report

March 2015

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New England Automotive Report

2015 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service providers of Massachusetts (AASp/MA), i will abide by the association’s bylaws and code of ethics. i understand that membership in AASp of Massachusetts is non-transferable, and i must remain current with my dues in order to be a member in good standing. i understand that if i discontinue my membership that i must immediately cease using any association promotions, logos or materials. Additionally, i understand that as part of my AASp of Massachusetts membership, i will receive New England Automotive Report, the official publication of AASp of Massachusetts, faxes, emails and other mailings.

*** PLEASE TYPE OR PRINT LEGIBLY *** BUSINESS INFORMATION: Mr.

What benefits motivated you to join AASP of Massachusetts?

Mrs.

Ms.

Business Representative Name:

________________________________________________________

____________________________

Business Name ____________________________________________

PERSONAL INFORMATION:

Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ Street

Phone Number ( E-mail Address

City

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

Enrolled By (Name and Address) ________________________________________________________________________________________ MEMBERSHIP TYPE

Name ____________________________________________________

REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop

Nickname ________________________________________________ ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2016)

Total Due ....................................................................................$395.00 SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other)

NEW! Political Action Committee (PAC) Donation ...............$_____

Check or Cash Credit Card:

Visa

MasterCard

LIST OTHER SPECIALTIES ____________________________________ ________________________________________________________ Just like good tools and equipment, membership in AASP of Massachusetts is a valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services. Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

Card Number: __________________________________________ Expiration Date: ________________________________________ Signature: ______________________________________________ Date: __________________________________________________

For oFFiCe USe only Check number ______________________________Check date ________________________Check Amount ______________________________ date Joined ______________________________Member number ______________________next Bill date ______________________________

12 post office Square, 6th Floor • Boston, MA 02109 phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible. New England Automotive Report

March 2015

LEGAL PERSPECTIVE continued from pg. 35 N

ConClUSion Corporations and limited liability companies can provide significant protection for you and your family from personal liability for the debts of your business and the actions of your employees, but it is not enough to just form a separate entity. You have to acknowledge that the separate entity exists, operate your business in a manner that demonstrates that the

entity exists and disclose to everyone with whom you have business dealings the true name and nature of the entity.

AUT M TIVE AD INDEX

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at

jcastleman@ prclawoffice.com.

Audi Group ....................................................19 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram............11 Balise Wholesale Parts Express ....................18 Baystate Chrysler/Jeep/Dodge ..................39 Bernardi Group ........................................28-29 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................36-37 BMW/Mini of Warwick ................................42 Clay Subaru ....................................................39 Colonial Auto Group ......................................6 Empire Auto Parts............................................9 Enterprise ........................................................11 First Chrysler-Dodge-Jeep-Ram ..................10 First Ford ........................................................10 First Hyundai..................................................10 Ford Group ....................................................17 Future Cure ....................................................50 Honda Group..................................................23 Hyundai Group ..............................................41 Imperial Ford ..................................................56 Infiniti of Norwood........................................38 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Linder’s, Inc. ..................................................54 Long Automotive Group ..........................OBC Mazda Group..................................................26 Mopar Group..................................................24 Nissan Group..................................................49 NORTHEAST® 2015........................................9 PPG ....................................................................3 Robertsons GMC Truck ................................16 Sarat Ford-Lincoln ..........................................8 Sentry Group ..................................................43 Subaru Group............................................46-47 Tasca Group ....................................................22 Toyota Group..................................................33 Village Auto Group........................................51 VW Group ......................................................52 Wellesley Toyota/Scion ..................................9

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