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2018 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 *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ City

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MEMBERSHIP TYPE (check one) Collision Repair Shop

ACCOUNTS PAYABLE CONTACT: Name: __________________________________________________

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AASP/MA CHAPTER (check one) MidState Southeastern Northeastern Western

(The AASP membership year is from January 1 to December 31, 2018)

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PLEASE COMPLETE THIS MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP-MA OFFICE. 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|ckane@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

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March 2018 • Volume 16, No. 3

CONTENTS

DEPARTMENTS VICE PRESIDENT’S MESSAGE by Adam Ioakim 8 | The Truth about Aftermarket Parts LOCAL NEWS 10 | ADALB Tackles Parts Specification Issues NATIONAL NEWS 22 | I-CAR Expands In-Shop Assessment Program 24 | National Training Close to Home: A NORTHEAST® Education Preview

by Kristen Dalli and Joel Gausten

LEGAL PERSPECTIVE by James Castleman, Esq. 42 | After John Eagle: Should You Ever Use an Aftermarket Part?

FEATURES

30

LOCAL FEATURE 16 | The Importance of Working Together: A Conversation with Tom Ricci

by Kristen Dalli

ALSO THIS ISSUE 5 | AASP/MA MEMBERSHIP APPLICATION 13 | I-CAR IN MASSACHUSSETTS

COVER STORY

13 | AASP/MA SPONSOR INFO

30 | John Eagle, Aftermarket Parts and Beyond:

34 | AASP/MA SPRING MEETING SAVE THE DATE

An Interview with Attorney Todd Tracy

38 | CREF CAREER FAIR ANNOUNCEMENT

by Joel Gausten

54 | INDEX OF ADVERTISERS New England Automotive Report

March 2018

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VICE PRESIDENT’S MESSAGE

The Truth About Aftermarket Parts ADAM IOAKIM

This month’s issue of New England Automotive Report features an extensive interview with Attorney Todd Tracy – one of the most talked-about people in our industry right now. In addition to winning millions of dollars for his clients in the recent John Eagle case, Tracy organized a crash test that included a variety of aftermarket parts.

The results indicate that the tested aftermarket parts did not perform as well as the OEM versions. In fact, some test results revealed a very high risk of serious injury to passengers. I strongly encourage you all to read this interview and consider Attorney Tracy’s words the next time a vehicle arrives at your shop. He clearly articulates what can go wrong if OEM parts are not used in the repair process.

Of course, a big question raised by what Attorney Tracy has been doing these days is, “How can this situation be applied to Massachusetts?” The bottom line is that the shop is responsible for the repair, and it’s our job to be the consumer’s advocate in that process. The insurance company is not out for the customer’s – or the shop’s – best interest, nor are they trained repairers. They shouldn’t have any business in determining the methodology used in the repair; their job is to insure the vehicle and pay the bill. In my mind, that bill should include charges for OEM-recommended repairs using OEM parts.

We’ve been raising the red flag over aftermarket parts for years. Many of us complain about the poor fit of the vast majority of these parts, but that’s just the tip of the

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iceberg. We also need to seriously consider the impact these parts have on energy absorption and other critical factors in a subsequent repair. This fight has never been about making more money by using OEM parts; this is about keeping the people who depend on us alive. We all deserve to sleep well at night.

Elsewhere in this issue, Attorney Jim Castleman takes a look at our current regulations in Massachusetts that apply to aftermarket parts. As you’ll read in his piece, the use of aftermarket parts in our state is not unconditional.

Please take the time to review Jim’s article in addition to our interview with Todd Tracy. You will be enlightened.

Every shop in Massachusetts needs to understand what is going on and apply what Attorneys Tracy and Castleman are advocating. A part is only of like kind and quality if it is equal to or better than the condition of the pre-accident part. How do we know if an imitation part can meet that benchmark? Do we receive scientific proof of its strength (such as crash test results) when it arrives at our shop? If an aftermarket part might compromise a vehicle’s operational safety, should you use it? How do we know if we’re keeping our customers safe? This is why OEM parts are so important.

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@hoganandvan.com.

G

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AU M TIVE AUT T TI TIV STAFF

AASP/MA EXECUTIVE COMMITTEE

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco - thomas@grecopublishing.com

Lea Velocci - lea@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Kristen Dalli - kristen@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com

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

PRESIDENT

TREASURER

Molly Brodeur

Kevin Gallerani

VICE PRESIDENT

LEGISLATIVE CHAIR

Adam Ioakim

Peter Langone

SECRETARY

IMMEDIATE PAST PRESIDENT

Gary Cloutier

Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rob DelGallo

AASP/MA DIRECTORS 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 © 2018 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

Darlene Andrade

Kevin Kyes

Matthew Ciaschini

Frank Patterson

Alex Falzone

Mike Penacho

Joshua Fuller

WWW.AASPMA.ORG

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

8 March 2018

New England Automotive Report

AASP/MA EXECUTIVE DIRECTOR Anne Lynch 12 Post Office Square, 6th Floor Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: alynch@lynchassociates.com

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[LOCAL] NEWS

ADALB Tackles

Parts Specification Issues The January 17 meeting of the Auto Damage Appraiser Licensing Board (ADALB) saw Board members confront issues pertaining to inappropriate parts information written on estimates.

ADALB Board member Bill Johnson shared a recent conversation he had with an area body shop representative who received an appraisal that specified aftermarket parts, but also included a notation to the customer that they should check with the shop since an OEM part may be available at the same price or cheaper.

Later in the meeting, audience member Adam Haddad (Accurate Collision; Worcester) informed the Board of two estimates that he received that specified LKQ parts but also included a notation from the appraiser that the parts selected were damaged.

Complete video of the January ADALB meeting is available in the Members Only section of aaspma.org.

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[LOCAL] FEATURE by Kristen Dalli

The Importance of Working Together: A Conversation with

Tom Ricci

This month, we sit down to talk with former AASP/MA president and Massachusetts industry veteran Tom Ricci, owner of Body and Paint Center in Hudson. Recently retired from the AASP/MA Board of Directors, Tom discusses some of the experiences and highlights of his nearly three decades in the collision industry. These include the 2010 merger between AASP/MA, the Central Massachusetts Auto Rebuilders Association (CMARA) and the Massachusetts Auto Body Association (MABA); his tireless attempts to improve the Labor Rate and overall relations between insurance companies and auto body repair facilities in Massachusetts; his tenure working with regional SkillsUSA volunteers and competitions; and much more.

New England Automotive Report: You had a very long career with CMARA before and during the merger with AASP/MA and MABA. In fact, you were president of CMARA for 14 years! What got you involved with the association to begin with, and what led you to take over the presidency for as long as you did?

Tom Ricci: Bob Waldron [current owner of Thomas Waldron Auto Body CARSTAR in Worcester] asked me to come to a couple of meetings. I went to them, and I had no idea what I was doing. I started going as Bob’s guest, and then I would just go regularly. I then joined the 16 March 2018

association and joined the Board a few years later. There was a lot going on, and I enjoyed it.

I got involved on the Board level, and then I was vice president and later president. I just felt like I could learn and hopefully make a difference some way, somehow.

Before my presidency, I would go to the monthly meetings to hear what others were doing and what was going on in the world outside of my own shop and immediate region.

The more involved I got, the more I could see it was a wealth of fruitful information. It was a way to stay on top of topics that were going on in the industry at the time. The more involved I got, the more I enjoyed learning and the more involved I wanted to get. It continued to evolve; at some point, I was enjoying it enough to think I could give back. I could help others learn and grow by sharing and providing information.

Walter Thomas, past owner of Thomas Auto Body, served as CMARA president right before I took over the position and was a true mentor to me. He unselfishly gave back to the industry.

When I became president, it helped me better myself. The day after our Board meetings, I’d be thinking about what I was going to bring to the table next month. It made me more self-aware of what was going on in the industry – and more acutely aware that if I was going to be president, I’d need to

New England Automotive Report

bring something to the table. I’d keep my eyes and ears open. If somebody came in and talked to me about an issue they were having in the shop – or if I saw something in a magazine or on the internet – I wanted to share it.

NEAR: How do you think the merger of MABA, CMARA and AASP/MA has ultimately helped the collision repair industry in Massachusetts?

TR: Number one, there’s strength in numbers. Number two, as three separate associations, we had a number of common goals.

It was Rick Starbard, the past president of AASP/MA and the owner of Rick’s Auto Collision in Revere, who started the discussion with me of a joint venture. We talked about the merger when we were out in Vegas one year at NACE. That led to a discussion about trying to bring the associations together to potentially gain more members and have greater strength. We figured we’d be able to combine our resources so we could have a better presence at the State House. It was Rick’s brainchild. We continued to have discussions with other association members; once we started getting to the point where we felt it could happen, we rolled it out to the Board of Directors to see what they thought about it.

Eventually, the Boards showed

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[LOCAL] FEATURE opportunity to say, ‘How can we make this better?’ The rest of the volunteers and I would sit down after the competition and see how we could keep making it better year after year.

We tried to mirror the National competition as much as we could.

That is hard because of the time constraints, but it was all about making it better for the kids, to be involved and hopefully help somebody along the way.

Tom Ricci with AASP/MA President Molly Brodeur at last year’s AASP/MA Golf Outing

how beneficial it would be to consolidate the associations. We’d all be on the same page, working together and ending the competition. We weren’t always competing – we always had common goals, but they were still always ‘the other associations.’ We found a number of common threads to pull us together.

NEAR: You’ve been involved in the legislative process, especially with respect to the Labor Rate. Why is it important for body shops to get involved with what’s going on at the State House?

TR: Rick and I worked together to discuss the Labor Rate Bill along with the executive director at the time, who had experience with creating bills. It all started with lengthy discussions between the three of us trying to resolve the longstanding stagnant Labor Rate.

There’s no doubt about it: Laws and regulations are created by legislators. It has been a long, painful road for over 10 years of having a bill at the State House without having the legislation approved. The political process is crazy, but it’s the one that’s in place. I always felt, ‘If you’re not at the table or on the train, you’re going to miss out or get run over.’ We 20 March 2018

thought that if we were there, we could make a difference. If we show up, talk to people and discuss what’s happening in our world, we can try to make a change.

NEAR: You’ve been very active in SkillsUSA over the years. What has been the best part about working with the organization, and how does it ultimately help young people in the industry?

TR: The best part for me is that year after year, we get to see the students’ talent. The best students in the state are competing against each other in multiple areas and stations. I have served as chairman on the Collision side, while Ken Robbins of BASF chairs the Refinish competition. It’s nice to see them putting their best feet forward. They do the written testing to get to the State Finals, and I get to see them show off their talents. That’s what’s so rewarding about it.

Part of why I got involved with SkillsUSA was because I wanted to make sure I was giving back the best I could – like when I was president of the associations. With Skills, I wanted to create an atmosphere that was conducive to students competing together. It wasn’t all my doing, but just being involved gave me that

New England Automotive Report

NEAR: What do you think have been some of the most significant events to occur in the industry since AASP/MA has merged, and how has the association worked to address those issues?

TR: The most significant event? Well, I missed one meeting in the last 100 years; while I was gone, they made me the interim president! (laughs) True story.

As painful as it was at the State House, once we joined forces, there were no more ‘other associations.’ By getting together, we had one unified voice at the State House – that’s without a doubt one of the most significant events for me.

Also, the merger enabled us to hire lobbyists along the way. It had become almost impossible to do it as a single entity, but we were able to do so once we were all one team.

We also did a lot of work to provide our members with comprehensive benefits and assistance from AASP National – the mothership – to provide more information.

NEAR: Moving forward, what are some issues that you’d like to see the association work on?

TR: The Labor Rate is still the biggest issue in Massachusetts. In 1987, we had the highest Labor Rate in the United States; now, we have the lowest – with the cost of living in the top five nationally. Second, and just as important, is aftermarket parts. It’s not just an issue that affects our industry;

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it also affects consumers. The current regulation that sets the threshold for OEM-only parts at 20,000 miles is antiquated.

Beyond that, I’d like to see the association start working on sharing and spreading information on how shops can become certified – both general certification and aluminum certification. A lot of information is out there, but everything seems to be quite splintered. I’d love to see the association focus on assisting members with this.

A number of national companies have services that aid individuals in gaining their certification, and I’d like to see the association help with that on a local level – on what certification means, how you go about doing it and the different contacts you need.

There are different tool guys out there telling us, ‘Oh, this is what you need,’ while another will say, ‘No, this is what you need.’ There’s never one streamlined process. If the association brought some guest speakers in to help alleviate some of these issues, it would benefit members tremendously.

This is the crux of what we’re all dealing with. It would be great if they could create something that showed us how to deal with this and what we need to be doing. I think it’s one of the greatest things the association could do in the upcoming months.

NEAR: Ultimately, how has being such a long-running association member benefited your life and career in the industry?

TR: It all goes back to all the meetings I went to, all the guest speakers, the resources – everything we’ve spoken about. It’s all helped me.

I was always poking around trying to do better for the members.

It’s not all about me; there were others who brought speakers in as well. The information I’ve received from other people has helped me keep up with the industry. It’s helped me stay current with – and understand – what’s going on out in the world beyond the four walls of the body shop.

NEAR: What’s the best piece of advice you’d offer a new member to help them get the absolute most out of AASP/MA? TR: Share information. Go to meetings. Those are key to seeing what’s going on in Massachusetts – or the ‘Island of Massachusetts,’ as I call it, because nobody does business like we do! Beyond that, keep up with the

training and the information that’s available to us.

The camaraderie – coming to meetings, talking to people – is key.

We all have the same problems, but we can really help each other be better businesspeople and professionals.

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[NATIONAL] NEWS

I-CAR ExPANDS In-Shop Assessment Program

If you have techs at your shop who balk at taking I-CAR courses because they “already know how to repair cars” or if you simply want a professional review of the technical expertise at your facility, I-CAR is here to help.

Initially piloted last year and set to greatly expand in 2018, I-CAR’s In-Shop Knowledge Assessment program was created to examine the knowledge every technician in a shop already possesses before they start I-CAR training. According to I-CAR, the system “will confirm up to I-CAR ProLevel 1 knowledge for technicians, relieving them from taking redundant training classes. An In-Shop Knowledge Assessment involves a trained I-CAR assessor going to a shop to execute a step-by-step process. By working through the process, the assessor will be able to recognize and acknowledge the existing skills and training throughout the shop.” After this review, the assessor will write a prescription for the shop for the I-CAR training its staff should attend.

“We recognized that technicians possess knowledge. One of the knocks against I-CAR has always been, ‘Gee, I already know this stuff. Why do I have to go to a class?’ – and rightfully so,” offered I-CAR President and CEO John Van Alstyne during a recent media briefing in Palm Springs, CA. “We invented [the Assessments], where we’re actually going into shops and conducting face-to-face interviews with technicians. We’re taking them through our ProLevel 1 knowledge areas and [determining whether] they know it or not. If they know it, then they qualify for credit in those knowledge areas 22 March 2018

New England Automotive Report

and don’t have to take the courses. This is a major innovation for I-CAR; I think it’s of high value to the industry.”

In other I-CAR news, the organization recently launched a new course called “Using Vehicle Maker Repair Procedures.” Module 1 covers the importance of I-CAR President and following OEM repair CEO John VanAlstyne procedures, with additional emphasis on I-CAR’s information sources (such as the Repairability Technical Support [RTS] Portal, training and videos). Other sources for OEM repair information, such as technical service bulletins and the National Automotive Service Task Force (NASTF) website, are also identified. Module 2 discusses what can be found on the various OEM websites regarding specific repair procedures. This module also touches on scan tools and flowcharts and how they can be instrumental for quick and accurate diagnosis and repair.

These recent projects are part of an upward climb in I-CAR’s overall work to educate the industry. From a student perspective, I-CAR training was completed by 83,693 individuals in 2017. In total, these students completed 178,955 unique courses. Welding training and certification also set new records, with 17,639 students attending 9,758 events. The participation level for I-CAR’s annual welding program is now up 700 percent since 2010, with the number of welding training and certification events up 1,300 percent.

Additionally, I-CAR reported an increase of 2,000 shops engaged in I-CAR training in 2017, while a 27 percent increase in the total number of Gold Class shops was achieved. I-CAR’s Gold Class count now stands at 5,570 shops across the United States, plus 1,300 shops now on the Road to Gold. “[This past year] showed considerable increases in the collision repair industry’s commitment to training,” offered Van Alstyne in a recent statement.

“From OEMs and insurers acknowledging I-CAR programs to technical schools and suppliers working in concert to help secure sites for better learning environments – [and] more and more shops now understanding the critical need to train and the value it creates for them – I commend the progress our industry is making towards performing complete, safe and quality repairs.”

For more information on I-CAR (including updates on live classes in Massachusetts), visit i-car.com.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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SMALL PARTS, BIG HEARTS.

MINI of Warwick Maintains an Infinite Inventory of Original MINI Parts.

• Experienced and dedicated MINI Parts Staff • Extensive inventory of collision parts and components

• Fast and free delivery • Fax or email will speed your order fulfillment

MINI OF WARWICK

1515A Bald Hill Road Warwick, RI 02886 Wholesale Direct at 401-824-2313 Fax 401-824-2251 janine.brown@penskeautomotive.com MINIOFWARWICK.COM Hours: M-F: 8:00-5:00 Sat: 8:00-3:00 © 2018 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

WE SUPPORT YOUR BUSINESS WITH ORIGINAL BMW REPLACEMENT PARTS. · Our BMW Parts Professionals know BMW vehicles better than anyone else. · Same day delivery on all in-stock parts, next day on non-stock items. · Fax or emailing your order will speed processing and delivery to your location.

BMW OF WARWICK 1515 Bald Hill Road, Warwick, RI 02866 Parts Direct at 401-824-2321 Fax 401-826-1204 ldisaia@penskeautomotive.com Hours: M-F: 8:00-5:00 Sat: 8:00-4:30 European model shown

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[NATIONAL] NEWS by Kristen Dalli and Joel Gausten

National Training Close to Home:

2 2018 201 0 PREVIEW

EDUCATION OFESSIONAL R P EPAIRER R

ED

U C AT I O N PROGRA M

ith just a few weeks before the Meadowlands Exposition Center in Secaucus, NJ is flooded with vendors, attendees and industry mainstays for the 2018 NORTHEAST Automotive Services Show, there’s no better time to prepare for one of the biggest weekends in the industry. The Alliance of Automotive Service

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Providers of New Jersey (AASP/NJ) and the Washington Metropolitan Auto Body Association (WMABA) recently released the full slate of classes for the debut of the Collision P.R.E.P. (Professional Repairer Education Program) series. With 17 seminars and/or panels featuring some of the most well-known professionals in the industry,

New England Automotive Report

NORTHEAST is absolutely worth the trip down to New Jersey March 16-18.

Collision P.R.E.P. will be headlined by Texas-based attorney Todd Tracy, who will present “Anatomy of a Lawsuit – Crash Testing for Evidence.” Tracy will share the evolution of his firm’s multimillion-dollar win against John Eagle Collision and discuss the full results of the crash tests on aftermarket parts he recently had performed in California. (See page 30 of this month’s issue for an extensive interview with Tracy.)

Longtime NORTHEAST presenter John Niechwiadowicz (QLC, Inc.) is set to return this year to present “Three Keys to Proper Compensation for a Proper Repair & What to Do When They Say NO: Education, Documentation & Collaboration” alongside AASP/NJ President Jerry McNee. “We’re hoping that attendees will walk out with solid action steps for taking better advantage of the resources they currently have at their disposal,” Niechwiadowicz says.

“We’ll discuss utilizing your customers as repair allies, effective alternative parts policies, how to address ‘we don’t pay for that’ and many more topics that should prove to be useful on a daily basis.

“One of the differentiating features [in our classes] that we really pride ourselves on is the level of dialogue among participants. This is not a boring lecture, but an engaging, interactive exchange of information.

We regularly receive feedback on how much people enjoy that aspect of our seminars.”

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FRIDAY, MARCH 16 SHOW HOURS 5pm - 10pm 2pm | Upstairs Press Room (Main level)

The Estimate Toolbox: Using FREE Resources to Complete an Accurate Vehicle Damage Repair Plan Danny Gredinberg, Database Enhancement Gateway 5pm | NORTHEAST Room A (Main level)

Riveting and Bonding, and Other Repair Operations & Procedures Dave Gruskos, Reliable Automotive Equipment 7pm | PREP Room 1 (Pavilion level)

Write it Right, with Life Nuggets to Live By Mike Anderson, Collision Advice

SATURDAY, MARCH 17 SHOW HOURS 10am - 5pm 10am | PREP Room 1 (Pavilion level)

OEM Repair Panel: Becoming a Certified Repairer and Understanding the OEM Repair Procedures Panelists: Dave Gruskos, Reliable Automotive Equipment; Aaron Clark, Assured Performance Network; Larry Montanez, P&L Consultants; Barry Dorn, Dorn’s Body & Paint; Bill Hawkins, BMW of Annapolis; Mark Allen, Audi USA; Moderator: Gary Wano, Jr, GW & Son Auto Body 12:30pm | PREP Room 1 (Pavilion level)

Write it Right, with Life Nuggets to Live By Mike Anderson, Collision Advice 12:30pm | PREP Room 2 (Pavilion level)

Structural Repair Methods – Critical in Today’s Vehicles with Advanced Technologies K. Michael Bradshaw, K&M Collision Center 12:30pm | PREP Room 3 (Pavilion level)

Developing and Delivering Effective Written and Verbal Negotiation Practices Keith Manich, ATI 3pm | PREP Room 1 (Pavilion level)

Severity Doesn’t Matter and How to Manage Insurer Expectations Tim Ronak, AkzoNobel Coatings 3pm | PREP Room 2 (Pavilion level)

Diagnostics, Calibrations and Programming: Understanding Shop Liability in this New Era and How to CYA! Panelists: Chuck Olsen, AirPro Diagnostics; Aaron Clark, Assured Performance Network; Paul Sgro, Lee’s Garage; Larry Montanez, P&L Consultants, Greg Potter, Equipment and Tool Institute; Robert Gruszczynski, VW/Audi America; Moderated by Michael Quinn, AirPro Diagnostics 3pm | PREP Room 3 (Pavilion level)

Three Keys to Receiving Proper Compensation for a Proper Repair and What to Do When They Say NO: Education, Documentation and Collaboration John Niechwiadowicz, QLC, Inc. and Jerry McNee, Ultimate Collision Repair 5pm | NORTHEAST Room A (Main level)

Anatomy of a Lawsuit – Crash Testing for Evidence Todd Tracy, The Tracy Law Firm

SUNDAY, MARCH 18 SHOW HOURS 10am - 3pm 10am | PREP Room 1 (Pavilion level)

The Time is Now! An Update on Scanning and Calibration Jake Rodenroth, asTech 10am | PREP Room 2 (Pavilion level)

Developing an Effective Digital Marketing Strategy that Will Grow Your Business Lee Emmons & Brent Betts, AP Digital 10am | PREP Room 3 (Pavilion level)

The Estimate Toolbox: Using FREE Resources to Complete an Accurate Vehicle Damage Repair Plan Danny Gredinberg, Database Enhancement Gateway 12:30pm | PREP Room 1 (Pavilion level)

Basics of Blueprinting John Shoemaker, BASF 12:30pm | PREP Room 2 (Pavilion level)

Social Media Mania Jim Saeli, Management Success 12:30pm | PREP Room 3 (Pavilion level)

Alignment to Calibrations: A New Focus on Body Shop Profitability Michael D’Ercole, Hunter Engineering; Robert Barbieri, Hunter Engineering; Paul Stern, Liftnow Automotive Equipment New England Automotive Report

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

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

For Genuine Honda parts, contact these Authorized Honda dealers.

Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com

Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com

Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com

Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com

Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com

Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com

26 March 2018

New England Automotive Report

Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com

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[NATIONAL] NEWS This year’s NORTHEAST will receive a considerable boost of support from BASF, who has once again signed on as this year’s Platinum Sponsor.

“As a regional show, NORTHEAST draws a large crowd but provides interaction on a very personal level,” observes Dan Bihlmeyer, director of marketing for BASF Refinish North America. “Being a part of the show offers BASF the opportunity to strengthen our relationships with current and prospective customers in the Northeast market and gain insight into the daily challenges that collision centers face in our rapidly evolving industry.”

Over the course of the weekend, Collision P.R.E.P. will present two can’t-miss panel discussions. The first, “Becoming a Certified Repairer and Understanding the OEM Repair Procedures,” will feature Virginia-based shop owner Barry Dorn (Dorn’s Body & Paint), Dave Gruskos (Reliable Automotive Equipment), Aaron Clark (Assured Performance Network), Larry Montanez (P&L Consultants), Bill Hawkins (BMW of Annapolis), Mark Allen (Audi USA) and moderator Gary Wano, Jr. (GW & Son Auto Body). “[This panel] will give attendees the ability to hear and see firsthand knowledge of what current and future OEMs are looking for in their repair programs and what that will look like long term in the future,” shared Dorn. “Right now, we’re at the tip of the iceberg, but there’s a lot more that’s going to be coming down from all of the OEMs that will impact almost everyone.”

Dorn is excited for what’s to come at NORTHEAST and sees the value in attending the show as both a business owner and an association member.

“The NORTHEAST show brings together all the industry vendors and leaders in one location, and it allows you to see and speak to just about anybody within that three-day period. The expense and the travel of going to other shows can be time-prohibitive or cost-prohibitive to a lot of shops. NORTHEAST allows techs, owners, managers – everybody – to come to one place and experience new and exciting education that’s never been offered in the Mid-Atlantic or Northeast region.”

The second panel discussion, “Diagnostics, Calibrations and Programming: Understanding Shop Liability in This New Era and How to CYA!” will feature Chuck Olsen (AirPro Diagnostics), Aaron Clark, Paul Sgro (Lee’s Garage), Robert Gruszczynski Chuck Olsen (VW/Audi America), Larry of AirPro Diagnostics Montanez and Greg Potter

(Equipment and Tool Institute). AirPro Diagnostics’ Michael Quinn will serve as moderator.

Olsen hopes that the discussion will enlighten attendees on both the potential liabilities of improper diagnostics and the major differences between OEM position statements and specific service information.

“Position statements have really raised awareness.

However, the position statement is really just leading you to the service information. That’s really where you need to go. Even if you do a pre- and post-repair scan, a scan tool can’t tell you that an alignment has been changed and the steering angle sensor needs to be recalibrated. That’s in the specific service information.

“Some OEMs haven’t released statements on pre- and post-repair scanning,” he adds. “In some of these cases, the automaker’s position is that the requirement about scanning is already made in the service manual.”

Legendary industry speaker Mike Anderson (Collision Advice) will return to NORTHEAST to present “Write it Right, with Life Nuggets to Live By” on Friday and Saturday. With many past appearances at NORTHEAST behind him, he has some great advice for attendees from Massachusetts and beyond.

“Always arrive a little bit early. I’ve done some classes in the past at NORTHEAST that sold out. We couldn’t get anybody else in the room; unfortunately, we had to turn people away. Don’t be one of those people who gets there at the last minute. Get there early and get your seat! Also, come Mike Anderson with an open mind and a of Collision Advice willingness to listen. The biggest thing with my sessions is that I hope to make them interactive. Shops can hear other shops’ opinions and not just come to hear me talk.”

NORTHEAST 2018 is made possible thanks to the generous support of its sponsors: Platinum Sponsor – BASF, Gold Sponsor – Ford, Silver Sponsors – American Honda Motor Co., Flemington Car & Truck Country, Lanyard Sponsor – Pro Spot/Innovative Solutions, General Sponsors – Lincoln Tech and Valspar/Sherwn Williams and Attendee Prize Sponsor – Axalta Coating Systems.

As you eagerly anticipate NORTHEAST 2018, preparation is key to making the most out of your time at the show. Have you registered? Secured your spot in Collision P.R.E.P. classes? Booked your hotel room? Visit aaspnjnortheast.com for more information.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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

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

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

ToyotaPartsAndService.com

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

For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Copeland Toyota 970 West Chestnut Street Brockton, MA 02301 Toll Free: 800-856-1172 Fax: 508-559-9264

wholesaleparts@copelandtoyota.com www.copelandtoyota.com/wholesaleparts

Prime Toyota of Boston 1605 VFW Parkway West Roxbury, MA 02132 PH: 617-469-1022 Fax: 617-469-8987 www.driveprime.com kmcisaac@driveprime.com

28 March 2018

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481

stirrell@iramotorgroup.com www.iramotorgroup.com

parts@wellesleytoyota.com www.wellesleytoyota.com

IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098 www.iramotorgroup.com

New England Automotive Report

Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895 www.bernarditoyota.com

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John Eagle, Aftermarket Parts and Beyond: An Interview with Attorney Todd Tracy

[COVER] STORY By Joel Gausten

Todd Tracy could very well change the collision repair industry forever.

Last year, Tracy earned headlines when he led his clients, Texas-based couple Matthew and Marcia Seebachan, to a multimillion-dollar win in their lawsuit against John Eagle Collision in Dallas, TX. The couple sued John Eagle after they sustained serious injuries following an accident in their improperly repaired 2010 Honda Fit. In addition to traveling the country to present special seminars on the case to industry members at national and regional events, Tracy soon found himself in the spotlight once again when he partnered with the Auto Body Association of Texas (ABAT) to have three vehicles crash-tested by Karco Engineering, a National Highway Traffic Safety Administration (NHTSA)approved testing facility in Adelanto, CA. The first vehicle involved in the crash test was an undamaged and unrepaired 2010 Honda Fit that had never been in an accident, while the second vehicle was a 2009 Honda Fit

left/right hood hinges and windshield replaced with non-OEM-approved parts. (At the time of this writing, alternative parts manufacturer Diamond Standard announced plans to conduct its own crash tests. More on that later in this piece.)

This month, New England Automotive Report connects with Tracy to discuss his legal victory, his crash tests in California and his plans to address some of the other critical issues affecting collision repair professionals across the country.

Attorney Todd Tracy is putting non-OEM procedures - and aftermarket parts - to the test. that had an aftermarket windshield installed and a roof that was bonded using 3M 8115 adhesive instead of welded on as recommended by the OEM – the same procedures performed on the Seebachans’ vehicle. The third vehicle was a 2013 Honda Fit with the hood, left and right fenders, radiator support, bumper reinforcement bar,

New England Automotive Report: When you first took on the case for the Seebachans, your initial thought was to go after Honda for what happened to their vehicle. What led to your decision to instead go after John Eagle Collision? Why was going after the OEM the wrong direction for this case to take?

Todd Tracy: First of all, when we looked at the vehicle and realized there were no welds holding this roof

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in place, we went and bought two exemplar model-year vehicles. We removed the paint so we could get access to the spot welds, and we realized there were 108 of them. We got access to Honda’s weld map, which specifically stated that there were supposed to be 108 welds and also showed where they were supposed to be located. It talked about the size, the shape, the location, the depth and the type. Clearly, we didn’t have a design defect, because there were supposed to be 108 welds. Was there a manufacturing defect? Based on our experience, when you have a manufacturing defect, you don’t miss 108 welds. You might have a missing weld or an edge weld or a cold weld, but you’re not going to miss 108 welds. Once we realized there were those welds missing, that’s when we started looking at other avenues, such as, ‘Had the vehicle been repaired and been involved in an accident?’ That’s when we ultimately learned about John Eagle.

NEAR: One of the most eye-opening elements of this case was the fact that this vehicle had a clean CARFAX report when the Seebachans purchased it.

TT: That is a source of great concern to us, because the vast majority of people who buy vehicles rely on CARFAX to give them accurate, reliable information about accidents and repair history. When there’s no requirement that CARFAX is actually receiving information, that’s a problem within the industry.

NEAR: With that in mind, how can a conscientious customer truly

determine if a used vehicle is indeed safe to own?

TT: Short of tearing the vehicle down, what you need to do is take it to a certified facility and let them put it up on a rack and start looking for some of the telltale signs that the vehicle may have been involved in a prior accident.

This includes looking for overspray, looking for welds that do not look like OEM welds and looking for reinforcement panels that are used after a vehicle’s frame is straightened.

Once a frame is straightened, that’s a weakened point. What they have to do is put a reinforcement bracket in there.

You need to take the vehicle to someone to basically do a differential diagnosis.

NEAR: Clearly, John Eagle Collision chose bonding over performing the 100-plus welds that Honda recommended for this repair. Why was that critical in making your case?

Bonding has been viewed by some in the industry as a reasonable alternative to welding. What were the key factors in determining that this was not the appropriate way to go in getting this car back on the road?

TT: After we figured out that it was a repair issue, we went to the Mitchell repair manual. The way the manual specifically stated it was that you were supposed to weld [the roof] back. We then bought a Honda body repair manual for the 2009-2013 Honda Fit; lo and behold, the identical language that was in the Mitchell repair manual was in the Honda repair manual. It specifically stated that you had to weld the roof panel back on when you replaced the roof. We started doing our due diligence; part of that was

looking at the various certifications and organizations that are out there.

We learned about I-CAR. What does I-CAR tell these certified facilities?

Always follow OEM repair specifications.

That’s their number one rule that they talk about. We then started checking out some of the material out there, and we realized that this was an adhesive that 3M used called 8115. Doing more due diligence, we learned quickly that 3M had actually written material that said there are certain vehicle manufacturers that do not want their body panels to be bonded and that you had to follow the OEM repair specification – and if that includes welding, do not use this. That’s what the hook was.

NEAR: Why would a large, reputable and certified professional facility like John Eagle Collision perform a repair in this manner as opposed to what the OEM stated was appropriate?

TT: I think that was summed up in one trial exhibit. 3M actually put out a video for the 8115 adhesive that specifically stated that using bonding increases profitability for the shop. It doesn’t take as much time; your hourly rate’s a lot cheaper for somebody bonding versus welding. At the end of the day, you can get the vehicle out quicker. It saves money and time.

NEAR: Since this case, you’ve moved your attention towards the use of aftermarket crash parts, going as far as to partner with the Auto Body Association of Texas to have aftermarket parts crash tested in California. Why was this the next target for you to hit in this industry?

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[COVER] STORY TT: What we started seeing and hearing is not just a recent problem; this is an ongoing, decades-long problem. The insurance industry has been bullying these repair shops for years to use these non-OEM-approved repair methods – but more importantly, forcing them to use aftermarket parts, salvage parts and used parts rather than OEM parts.

When I heard that, I said, ‘I need to see some testing on this to back you up.’ I heard, ‘Well, we don’t have any.’ We had learned about some testing that had been conducted back in the 1970s on some aftermarket parts and on some bonding and stuff like that, but I wanted to see current testing on a methodology that is repeatable and acceptable. That’s why we went and conducted a crash test that the federal government recognizes, the vehicle manufacturers recognize and the insurance industry recognizes as being repeatable.

NEAR: The energy absorption data compiled through these tests is quite interesting. How does energy absorption potentially affect the safety of the occupants in a vehicle in a collision?

TT: Energy absorption, energy distribution and energy channeling is what’s called the ‘crash wave.’ You want to spread that out over as long a period of time as possible. The way that people get injured is due to the material not holding the line long enough so that there’s a big, sudden jolt of energy. That’s what we saw happening on the aftermarket parts, and even to a lesser degree on the OEM-unapproved bonding. If the material and/or the repair is not done properly, you never get what’s called ‘engineering stack-up.’ You want to

have engineering stack-up so that the material can do its job. If it releases too quickly, then you’re going to spread this dangerous energy wave to the occupants. Once that happens and you don’t have the engineering stack-up, then not only does that affect structural integrity, but it affects the occupant kinematics - which are the body’s movements inside the vehicle, both in the forward direction as well as on rebound. It also affects the injury numbers, from the tip of the head down to the tip of the toe, and all body points in between. It also affects the crushability of the survival space.

What we saw in our crash testing was that with the aftermarket parts – because [the vehicle] was not achieving engineering stack-up as designed by Honda – you alter the restraint system so that you have 13 inches of forward excursion compared to eight inches on the OEM. The anthropomorphic test device rebounded in such a violent and altered manner that the dummy’s head actually missed the head restraint. On every single injury index that was measured, the aftermarket parts and the repaired part with the adhesive had considerably higher numbers than the OEM. If the aftermarket parts and the approved method are supposed to act in an identical manner, then the crush, the kinematics, the energy wave and the injury number should be the same. We clearly don’t have that.

NEAR: As I’m sure you’re aware, Diamond Standard has announced plans to perform their own crash test.

TT: I absolutely applaud them, but here’s my question to Diamond Standard: Why aren’t you letting Karco run the test? We did a couple of

things different from – and added on to – the Insurance Institute for Highway Safety [IIHS] test. We wanted to study this energy wave, the injuries to the ankles and the effect this crush has on the toeboardfootwell area. Why don’t they let Karco run the same test – and everybody who’s going to do this let Karco do it? They know exactly where it was measured from. Is Diamond Standard going to open up their test to let everybody look at it? Are they going to reproduce the results just like we have – in an unaltered, unmodified and unadulterated fashion? Put your money where your mouth is. If you’re so confident, let us go out there. Are you going to keep the vehicles so that they can be studied like we’re doing?

NEAR: Let me ask you a Devil’s advocate question. I’ve heard people on the insurance industry side say on record that policies would skyrocket in price if OEM-recommended procedures were performed on a regular basis. I’ve also heard shop owners who are good, professional repairers say that they feel pressure to perform the repairs per the insurance company’s instructions because they’ll lose work if they don’t. Based on your experience in the field, how do you respond to both points?

TT: First of all, I would say that if the repair costs go up, guess what? It doesn’t cost the insurance companies any money, because they get to spread it out to the consumer. I think the consumer wouldn’t mind spending $1,500 extra for a repair versus buying a casket or paying for a lifetime of care for somebody who’s catastrophically brain-damaged, quadriplegic or paralyzed. I think that’s a real short answer to that. The repair shops are

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told by these insurance companies, ‘You will do this our way or we are taking our business elsewhere.’ These poor men and women who own these repair shops have mouths to feed – not only for their own families, but for their employees. They are put in a hell of a dilemma. Do you do what’s right for your customer, or do you do what’s right for yourself and your employees? The repair shops are forgetting that they have a valuable tool in their tool chests called the customer. The customer wants it done right; the customer doesn’t want corners cut. At the end of the day, they need to realize that the repair shops and themselves are in this together so that their family can get home safely.

They need to get the insurance company out of there, because the insurance companies don’t care about getting the family home – they care about putting more money in their pockets.

NEAR: If a shop performs an OEMrecommended procedure, that will lead to a short-pay in many cases.

Obviously, short-pay is an area you will be exploring down the road. What are some of your intentions at this point in time in terms of addressing the elephant in the room that some shops are not keen to pursue a shortpay situation?

TT: For any shop to not be willing to pursue short-pays is a level of laziness and basically malpractice for their own company. Here’s the fix: You’ve got a lawyer who’s willing to come in there and say, ‘I want to get 5,000 companies to retain my firm to go after individual short-pays, and I’m going to do it for free.’ It will cost you nothing. How could any conscientious business owner not be willing to fight

The damaged Honda Fit that started it all. (Photo courtesy of prnewswire.com) that? At the end of the day, the way that change evolves is a three-legged stool. The first leg of the stool is the repair shops getting involved and standing up. Right now, we may have 50 shops around the country that routinely do it. My objective is to get 50,000 shops. The second leg of the stool is getting the customers involved. Now you’ve got the repair shop and the customer fighting together to save their family. Number three, you get the legal system involved. We start with the short-pays, we start with steering…and I’m convinced there’s RICO [Racketeer Influenced and Corrupt Organizations] involved here. That’s the long game on this thing. A perfectstorm result would be as follows: Insurance companies no longer get to dictate the methodology or the material that can be used to repair a vehicle, because they’re not the safety professionals. If we can do that, then the shop owners and their employees will be able to sleep better at night, the customers will be able to sleep better at night and the insurance companies

are not out any more money because they’re going to pass it along anyway.

That’s just the way business works, and it has in every industry. I don’t care what it is. If it’s a toaster, a car or a Slip ‘N Slide, if there’s litigation and it costs the company money, you pass it along to the consumer. At the end of the day, it’s pennies per year.

NEAR: Conceptually, it’s very similar to health insurance in a sense.

TT: Sure it is. The insurance companies are pretty smart; they have actuaries sitting out there, and they know exactly what it’s going to cost them to do it the right way. They know what it’s going to cost over time to spread it out to make money. You can’t tell me that they haven’t already factored this out.

NEAR: On another topic, we’ve been hearing a lot about the concept of photo estimating in the collision repair industry.

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[COVER] STORY TT: I’ve got a good analogy for you on photo estimating.

Take two eggs. Take one of the eggs and shake it up really well, and leave the other one. Then, take a picture of both eggs and say, ‘Which one of these eggs has been scrambled?’ By using the photo estimator, you can’t tell.

Now, let’s look at it a little bit deeper. We know that front bumpers have fascia plates on them. They have honeycomb bumper absorbing systems, and they have energy management capsules below there that are designed to crush. Looking at the photo estimator, you’re never going to see that. I’m sorry, but with the way that these vehicles are designed these days, you have to take off a couple of layers of the outside of the onion to get in there and see what’s been damaged. Anybody who thinks a photo estimate serves any useful benefit at all has no idea what they’re talking about. You need to sit inside a vehicle; you need to put a vehicle up on the racks. You need to do an examination of a vehicle just like a doctor does on a patient when they’re trying to do a diagnosis. I guarantee that you’re never going to get a doctor to put their medical license at stake by not examining the patient.

stick together on this. For years, you’ve been waiting for something to get some momentum and some synergy, and you finally have the right time and environment. Why anybody would sit on the sidelines and not do anything about it is beyond me. For those who are bellyaching and not willing to jump in the arena and get the snot beat out of them a couple of times, that’s okay. Don’t bellyache about the scraps you’re getting. But if you’re tired of taking it, it’s time to get in the arena. Let’s go fight them together. It’s that simple.

The complete results of Attorney Tracy’s crash tests are available via Google Drive at https://drive.google.com/open?id= 1Q7JOm7aldtz0auus91cHY9iJTQZ6vnQm. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NEAR: You’ve been in touch with associations and other industry representatives all over the country in the last few months. Based on your experiences and the feedback you’ve received, what can the collision industry at-large do more of to ensure that repairers embrace OEM procedures and ultimately protect themselves from the kind of litigation that hit John Eagle Collision?

TT: The repair industry needs to stop thinking of themselves as body shops and repair shops. They need to start calling themselves what they actually are: Safety professionals. The repair industry men and women are on the front line of safety day in and day out, more so than the vehicle industry ever will be, because it is incumbent on the men and women who put our vehicles back to a safe condition that’s crashworthy to ensure that our families get home. That’s their sole job. I read a mission statement the other night from an organization, and I said, ‘Why wouldn’t your mission statement be, ‘Our job is to ensure that our customers and their families gets home safely each and every night. We’re going to do this by education, education and education. We’re going to educate our members, certify our members and train our members to be the safety professionals that we are’?’ I think that’s critically important to get across. With respect to what they can do, the guys are bands of brothers now. They need to

Save the Date!

AASP/MA’s Spring Meeting

Featuring Keynote Speaker: Attorney Todd Tracy May 2, 2018 10am-3pm DoubleTree Hotel

5400 Computer Dr, Westborough, MA 01581

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For more information, contact Colleen Kane (ckane@aaspma.org) or the AASP/MA Office: (617) 574-0741

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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Contact these Ford or Lincoln Mercury dealers for all your parts needs:

IMPERIAL FORD 6 UXBRIDGE ROAD MENDON, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 E-mail: johnl@imperialcars.com First Time Customers call John

© 2017, Ford Motor Company

SARAT FORD LINCOLN MERCURY 245 SPRINGFIELD ST. AGAWAM, MA 01001 413-786-0430 FAX:413-789-3715 www.saratford.com

SENTRY FORD LINCOLN 4100 MYSTIC VALLEY PARKWAY MEDFORD, MA 02155 PARTS: 617-506-6309 FAX: 781-874-9934 E-mail: pnewell@sentryautogroup.com

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Boston High School & College Transportation Career Fair Thursday, April 26, 2018 Assabet Valley Technical High School 215 Fitchburg St. - Marlborough

The Collision Repair Education Foundation will be organizing a transportation (collision, auto service, heavy duty, etc) career fair in the Boston area on April 26 that will be attended by hundreds of high school & college students and industry employers. Don’t miss out on this opportunity to meet industry employers.

•

Event Details 8:30am-2pm - Event open to students to attend and meet industry employers.

• All grade levels welcome to attend, not just seniors.

• 20+ industry vendors/employers are anticipated to be at the event.

• Lunch will be provided for all attending students.

Interested in participating as a vendor/sponsor?

Contact: Brandon.Eckenrode@ed-foundation.org

Funds raised during this event will support local high school and college collision repair school programs and students.

www.CollisionEducationFoundation.org 38 March 2018

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GENUINE NISSAN PARTS

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Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’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: Kelly Nissan-Infiniti 155 Andover Street, RTE 114 Danvers, MA 01923 Main: 978-774-1000 Direct: 866-883-7093

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

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

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Unsurpassed Quality. Genuine Hyundai Parts.

HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE. SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS. TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR A HYUNDAI WHOLESALE PARTS SPECIALIST.

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HERB CHAMBERS HYUNDAI 735 Southbridge Street Auburn, MA 01501 TOLL FREE: 800-767-1898 FAX: 508-832-6026 EMAIL: pobrien@herbchambers.com www.herbchambershyundaiofauburn.com

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[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

After John Eagle: Should You Ever Use an Aftermarket Part?

“One must remember that a vehicle’s safety systems are like links in a chain.

Each system must work together to ensure the other safety systems perform as designed.”

– Neil Hannemann, auto industry engineer, expert witness for the plaintiffs in Seebachan v. John Eagle Collision Center

My previous two articles in New England Automotive Report addressed why collision repair shops need to follow OEM procedures when making repairs and how they can get paid for them in light of the Seebachan v. John Eagle Collision Center case. In this case, a Texas jury awarded the severely injured plaintiffs $31.5 million in damages against a collision repair shop. The jury found that because the shop repaired the roof of a car using adhesive bonding instead of OEM-specified spot welding, the vehicle had not reacted as engineered when it was in a subsequent collision, resulting in the compromise of the passenger compartment and gas tank protection systems. The plaintiffs were trapped in the car and suffered horrific, life-altering burn injuries.

However, what has not yet been 42 March 2018

directly addressed to this point is the effect of the case on the use of aftermarket parts. It does seem apparent that unless it can be established that an aftermarket part will react in the exact same manner in a collision as an OEM part, there is a clear danger that using aftermarket parts for collision repair will put vehicle owners and their passengers at unreasonable risk for severe injuries in a later accident.

Aren’t Aftermarket Parts Tested to Make Sure That They React like OEM Parts?

Most aftermarket parts never go through proper testing to establish they will react the same way as OEM parts. Further, as discussed in an interview with Todd Tracy (attorney for the Seebachan plaintiffs) elsewhere

New England Automotive Report

in this issue of New England Automotive Report), when certain aftermarket parts were collision tested, they didn’t react in the same way as the OEM parts they were replacing. They did not crush at the same rate or in the same manner, which compromised vehicle safety systems in the same way that failing to follow OEM procedures did in the Seebachan case.

Even if aftermarket parts manufacturers do begin to conduct more testing on the parts they produce, indications are that those tests (at least as proposed to date) will not be of the same caliber or rigor as the tests done by OEM manufacturers or by a limited number of respected (and truly independent) testing facilities. There are testing organizations that do perform crash tests on some aftermarket parts, but those organizations tend to have insurance industry or aftermarket parts manufacturer bias since those are the industries funding these organizations. These are industries that reap the greatest economic benefit from the use of aftermarket parts. A quick Google search of the tests by these organizations tends to show that the tests are from many years ago, are limited to form and fit analysis or only look at “low-impact” collisions. None of these tests really seem to address how the parts react in a collision as part of today’s total vehicle safety systems.

Unless an aftermarket replacement part is purely cosmetic, it will affect how a vehicle will react in a subsequent collision. With today’s cars, you can never be sure that any replacement part is purely cosmetic.

Today’s cars are specifically

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engineered to make almost all of their elements part of the unibody construction of the car. Is there any part in a vehicle manufactured today that is not integrated into its safety and passenger protection systems?

Perhaps not.

Based on this, a legitimate question arises whether collision repairers should ever use an aftermarket part when making repairs. To use an aftermarket part may put the vehicle’s owner and guest occupants at unreasonable risk of suffering significant personal injuries in a subsequent crash. It may also put a repair shop - and its liability insurer - at unreasonable risk of having to pay significant amounts of monetary damages as a result of any such injuries. After all, if a repairer knows that a risk of injury exists when an aftermarket part is used, then that repairer could well be found to be negligent for using such a part.

Doesn’t Massachusetts Law Require the Use of Aftermarket Parts?

At first blush, Massachusetts insurance regulations seem to require that aftermarket parts be used when making insurance-covered repairs. The regulations that govern standards to be used for the repair of damaged vehicles, 211 CMR 133.04, offer the following: “When it is determined that a part must be replaced, a rebuilt, aftermarket or used part of like kind and quality shall

be used…” (Emphasis added).

However, there are major exceptions to the requirement. The first exception is evident on the face of the quoted language, i.e., that the replacement part must be “of like kind and quality.” It is suggested that if it cannot be demonstrated that an aftermarket part is going to perform in the exact same manner as an OEM part in a collision, then the aftermarket part is not “of like kind and quality” to the OEM part.

Further, the regulations have another exception, stating that an aftermarket part shall be used “unless the operational safety of the vehicle might otherwise be impaired.” To me, this is the crux of the issue. With today’s cars, unless it has been unequivocally demonstrated that an aftermarket part will react in a collision identically to the OEM part that it replaces, the use of the aftermarket part is going to impair the operational safety of the vehicle. Unless an identical reaction can be established, it is inappropriate to use the aftermarket part.

Additionally, Auto Damage Appraiser Licensing Board (ADALB) regulations, at 212 CMR 2.04(1)(e), mandate that when writing damage appraisals for the repair of insurance covered damage, “[t]he appraiser shall itemize the cost of all parts, labor, materials and necessary procedures required to restore the vehicle to pre-accident condition…” (Emphasis added). If it Visit us at NORTHEAST® Booth # 108

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[LEGAL] PERSPECTIVE cannot be established that an aftermarket part is going to react in the same manner as the OEM part that it replaces, then making a repair with that aftermarket part is not going to restore a car to “pre-accident condition.”

Massachusetts law does appear to mandate the use of an aftermarket part in certain situations, but only if the aftermarket part is of like kind and quality to the OEM part it replaces, only if the aftermarket part does not impair the operational safety of the vehicle and only if using the aftermarket part restores a damaged vehicle to pre-accident condition. In my opinion, none of these tests – never mind all three of them – can be met with aftermarket parts now on the market. In my opinion, Massachusetts law requires that currently available aftermarket parts never be used to repair damaged vehicles.

At this point, the cited regulations by both the Division of Insurance and the ADALB were written many years ago – before the individual parts of unibody cars became so universally integrated into vehicle safety and passenger protection systems. These regulations may have made sense when they were written, but in today’s world – with today’s cars and with current knowledge of the possible consequences of using a repair part that may not properly react in a collision – perhaps those regulations are no longer valid, at least to the extent that they require the use of aftermarket parts at all.

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Conclusion In light of the Seebachan decision, collision repair shops should question whether to ever use aftermarket parts when repairing vehicles. Unless it can be clearly demonstrated that an aftermarket part is going to react in the same manner as an OEM part in a collision, there is just too much risk to car owners and their guest passengers.

There is also too much financial risk to repair shops and their liability insurance carriers.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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FOR SALE Two Pro Spot welders

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2017 Buick laCrosse Right Quarter Panel (Missing rocker panel section) Excellent condition

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New England Automotive Report

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Genuine Replacement Parts For the Road Ahead.

Avoid problems down the road that will cost you time, money and customers. Choose Genuine Subaru Replacement Parts, engineered to fit better today, and perform better tomorrow.

For Genuine Subaru Body Parts, contact an Authorized Subaru Dealer.

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Audi dealers strive to make you an Audi Genuine Parts fan •

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Audi Cape Cod 25 Falmouth Road (at the Hyannis Airport Rotary) Hyannis, MA 02601 PH: 508.815.5600 FAX: 508.568.9410 www.audicapecod.com

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N

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W

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A

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AU M TIVE AUT T TI TIV ADVERTISER’S INDEX

LET US TURN THEM AROUND! Contact New England Automotive Report Sales Director Alicia Figurelli (973) 667-6922 alicia@grecopublishing.com

54 March 2018

Accudraft Paint Booths ............................OBC AkzoNobel......................................................19 American Honda Motor Co. ..........................4 Audi Group ....................................................52 Audi Shrewsbury ..........................................29 Axalta Coating Systems..................................6 BASF ................................................................11 Best Chevrolet/Best CDJR ........................IFC BMW Group ......................................................14-15 BMW/Mini of Warwick................................23 Colonial Auto Group ......................................9 Empire Auto Parts ........................................45 Enterprise........................................................40 First Chrysler-Dodge-Jeep-Ram ..................49 First Ford ........................................................49 First Hyundai ................................................49 Ford Group ....................................................37 Future Cure/DriveBlueBuzzard.com ........21 Honda Group ................................................26 Hyundai Group ............................................41

New England Automotive Report

Imperial Ford ................................................37 Ira Subaru ......................................................13 Ira Toyota of Danvers....................................12 Kelly Automotive Group ..........................IBC Kia Group ......................................................53 Linder’s, Inc. ................................................54 Long Automotive Group ..............................17 Mazda Group ................................................50 McGovern Chrysler Jeep Dodge Ram ........10 Mercedes-Benz of Shrewsbury ....................29 Mopar Group ................................................36 Nissan Group ................................................39 Polyvance........................................................43 PPG ....................................................................3 Robertsons GMC Truck ................................40 Sarat Ford Lincoln ........................................47 Sentry Group..................................................44 Spanesi ............................................................50 Subaru Group ................................................51 Tasca Group....................................................18 Toyota Group ................................................28 Volvo Group ..................................................35 VW Group ......................................................46 Wagner BMW of Shrewsbury ......................29 Wagner Kia of Shrewsbury ..........................29 Wellesley Toyota/Scion ................................47 Wheel Collision Center ................................45

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