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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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A TRIP WORTH TAKING U THE ADALB BEGS FOR IT U KEEPING RATES REAL
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New England Automotive Report
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COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155 Phone Number: 781-395-3025 FAX Number: 781-475-5063
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COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464
COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801
COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728
NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841
COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 888-322-6570 Phone Number: 508-996-6266 FAX Number: 508-616-0445 FAX Number: 508-979-1219 COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155 Phone Number: 781-475-5200 FAX Number: 781-391-3506
WELLESLEY VOLKSWAGEN 231 Linden Street Wellesley, MA. 02482 Phone Number: 800-228-8344 FAX Number: 781-237-6024 Contact: Dan Bettencourt / Wholesale Parts Manager
COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587
COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152
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YES Please list my business as an AASP/MA member in good standing on the AASP/MA website for consumers to consider using for the collision repairs and assistance with the claims process. I understand this is a member benefit (_________ initials Date ___/____/2020) !
!
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! New England Automotive Report March 2020 5
CONTENTS
March 2020 • Volume 18, No. 3
DEPARTMENTS
FEATURES
VICE PRESIDENT’S MESSAGE By Kevin Gallerani 8 | Keping Rates Real
EXECUTIVE DIRECTOR’S MESSAGE By Evangelos “Lucky” Papageorg
12 | They Are Asking (Begging) For It
LOCAL NEWS
11 | Important Announcement! Fundraiser for Larry Pearson & Family 17 | ADALB Addresses Sublets, Announces Bi-Monthly Meetings 22 | AASP/MA President Named “Vocational Partner of the Year” by Crossroads School 29 | AASP/MA Testifies in Support of Revised Right to Repair Law 31 | In Memoriam: Eugene “Geno” Nawrocki
VENDOR AFFINITY PROGRAM MEMBER SPOTLIGHT By Alana Bonillo
30 | Balise Collision Repair
13 | WHERE’S LUCKY? AASP/MA CHAPTER MEETING SCHEDULE 18 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS 19 | AASP/MA VENDOR AFFINITY PROGRAM BENEFITS
Accudraft Paint Booths ................................OBC AkzoNobel ....................................................32 Audi Group....................................................37 Axalta ............................................................6 BASF ............................................................24 Best Chevrolet ................................................21 BMW Group ..........................................................25 BMW/Mini of Warwick ..................................33 Boch Chevrolet ........................................31, 46 Boch Hyundai ................................................31 Colonial Auto Group ........................................4 Empire Auto Parts ..........................................23
A Clear Path to Success: National-Level Education to Return to NORTHEAST
35 | NORTHEAST 2020 COLLISION P.R.E.P. CLASS SCHEDULE
Pro-Consumer, Pro-Profit: Inside the AASP/MA Philosophy
5 | AASP/MA MEMBERSHIP APPLICATION
ADVERTISERS’ INDEX
By Alana Bonillo and Joel Gausten
38 | COVER STORY By Joel Gausten
ALSO THIS ISSUE
21 | CREF CAREER FAIR
34 | NATIONAL FEATURE
42 | LEGAL PERSPECTIVE By James Castleman, Esq.
What Can a Repair Shop Charge For?
Ford Group....................................................36 Genesis of Norwood ......................................46 Honda Group ................................................45 Hyundai Group ..............................................11 Ira Subaru ......................................................11 Ira Toyota of Danvers ......................................10 Kelly Automotive Group ................................IBC Kia Group ......................................................21 Linder’s, Inc. ................................................17 Long Automotive Group ................................20 Mazda Group ................................................28 McGovern Chrysler Jeep Dodge Ram ................22 Mopar Group ................................................15 Nissan Group ................................................40
PPG................................................................3 Quirk Wholesale Parts ..................................IFC Reliable Automotive Equipment ........................9 Sarat Ford Lincoln..........................................46 Sherwin Williams ..........................................14 Spanesi ........................................................44 Subaru Group ................................................16 Toyota Group ................................................27 Volvo Group ..................................................26 VW Group ....................................................39 Wellesley Toyota/Scion ..................................41 Wheel Collision Center....................................23
New England Automotive Report March 2020 7
VICE PRESIDENT’S MESSAGE
uploaded by other users – helps provide insight into
Keeping Rates Real
what a realistic Labor Rate looks like in our community. Numbers don’t have emotions; they simply are what they are. We can use the data collection by BillableGenie and NABR to demonstrate that insurers need to step up their
KEVIN GALLERANI
game and compensate us at legitimate and respectable levels.
For months now, AASP/MA has been urging
Collision repair facilities in Massachusetts have
members to subscribe to the BillableGenie program available through National AutoBody Research
put up with enough. We are the ones who invest in
(NABR). At our standing-room-only Fall
the tools, equipment, employees and training
Membership Meeting last September, we provided
necessary to properly repair modern vehicles. We
an extensive overview of BillableGenie and NABR’s
know better than anyone what we need to charge to
VRS Standardized Labor Rate Survey
make a profit in order to keep going. It’s time to end
(laborratesurvey.com). These endeavors are serving
the daily battles we face to get paid. If you don’t
a critical role in helping our industry in
charge for it, then you’re never going to get it. And
Massachusetts gain the knowledge necessary to
if you don’t support AASP/MA, use BillableGenie
identify and charge a realistic Labor Rate. For years,
and participate in our Labor Rate Survey, then
we’ve been conducting business under the lowest
you’re in no position to complain about the way
average rate in the country. We simply won’t survive
things are. Information on BillableGenie is available at
unless drastic action is taken. As 2020 moves on, I’m
nationalautobodyresearch.com.
calling on every member of AASP/MA to put in the
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
work on the ground level to make change happen.
MASSACHUSETTS
As of this writing, I’ve uploaded more than 70 documents to BillableGenie since signing up with it
AASP/MA VICE PRESIDENT KEVIN GALLERANI is vice president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com
last year. This information – as well as the figures
N
E
W
E
N
G
L
A
N
D
AUT M TIVE AASP/MA EXECUTIVE COMMITTEE
STAFF PUBLISHER
GRAPHIC DESIGNER
Thomas Greco - thomas@grecopublishing.com
Lisa M. Cuthbert - lisa@grecopublishing.com
SALES DIRECTOR
EDITORIAL/CREATIVE COORDINATOR
Alicia Figurelli - alicia@grecopublishing.com
Alana Bonillo - alana@grecopublishing.com
EDITORIAL DIRECTOR
PRODUCTION
Joel Gausten - joel@grecopublishing.com
Donna Greco - donna@grecopublishing.com
TREASURER Matthew Ciaschini
PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier
IMMEDIATE PAST PRESIDENT Paul Hendricks
AASP/MA STATEWIDE DIRECTORS 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
COLLISION DIRECTOR Rob DelGallo
AT-LARGE DIRECTOR Adam Ioakim
AASP/MA DIRECTORS Ray Belsito Alex Falzone Rick Fleming
Joshua Fuller Kevin Kyes Frank Patterson
Mike Penacho Dana Snowdale Bill Spellane
AASP/MA ADMINISTRATIVE OFFICE -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 © 2020 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
WWW.AASPMA.ORG 8 March 2020
New England Automotive Report
Evangelos “Lucky” Papageorg: AASP/MA Executive Director
Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741
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IMPORTANT ANNOUNCEMENT!
[LOCAL] NEWS
Larry Pearson and Family Fundraiser for
On January 28, AASP/MA member Larry Pearson (Columbia Ford) lost his nine-year-old son, Lukas, and stepfather, William, in a devastating fire in Plainfield, CT. The fire has not only resulted in two lives lost, but it also destroyed the family home and all personal belongings. A GoFundMe page has been set up to accept donations to help with funeral expenses, personal needs during this difficult time and a memorial to honor Lukas: tinyurl.com/yx34k5nm
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New England Automotive Report March 2020 11
EXECUTIVE DIRECTOR’S MESSAGE
They Are Asking (Begging) for It EVANGELOS “LUCKY” PAPAGEORG
As an industry, we have the ability to make positive changes. This is a theme I have written and spoken about on numerous occasions. I am soliciting you once again to provide information and examples of improper handling of the claims and appraisal processes. We have been asked, if not begged, by the ADALB (by their actions if not so much in their words) to bring forward a deluge of complaints. If we do not heed this request, we will have no one but ourselves to blame. At the most recent ADALB meeting in January, there was once again discussion about the protocol that the Board follows to enter Executive Session. The Executive Session is used for the purpose of discussing complaints that have been filed. Back in September 2019, Bill Johnson, one of the two collision representatives on the Board, had previously requested that they consider bringing some “transparency” to the process. He felt this could be accomplished by having a very brief description of the nature of the complaints up for discussion. Attorney Michael Powers, legal counsel for the Division of Insurance (DOI), was to investigate what the Department of Professional Licensure’s process was and report back. No such report was given at the November 2019 meeting. The fact that the item had not been followed up on by Powers was disheartening, to say the least. What has become even more distressing are the DELAYS in the Board taking swift action on issues. These delays have been increasing under the current Board. Since the shake-up of the ADALB that began in January 2019, the Board has only met six times in open session, and one of those meetings
12 March 2020
New England Automotive Report
lasted less than 10 minutes. During 2019, the issue of shops being unable to procure designated aftermarket parts from the designated vendor on the insurance estimate was the focus of discussion. This is an issue that not only affects collision repairers; more importantly, it affects their customers. These are the very consumers that the ADALB was created to protect under MGL 26 8G. Those of you who have followed this issue (and/or have been directly affected) felt the frustration as this could and should have been resolved in a relatively short period of time instead of being DRAGGED out. It was apparent that the “three Ds” - Delay, Deny and Defend - were hard at work to keep a resolution from being reached. All one needs to do is look back on the Members Only section of our website, aaspma.org, and view the absurd reasons given for “blackballing” repairers whose return rate was “high.” It MUST be noted that the decision to return parts because they were shown to be unfit for use was a mutual agreement by both the shop and the insurance company appraiser. Even though this was the case, it was the shop and its customers who were being punished by unyielding insurance companies that refused to take a common sense approach to resolve the issue. Adding to the frustration was the fact that this was the first meeting of 2020 – the first since November 26. The Board scheduled its next meeting for March 24. Yes, another two months away! When questioned why meetings are being scheduled at what has become increasingly longer intervals, the reason (excuse) given was the lack of complaints being submitted. This is where the ASKING (begging) for complaints was made,
albeit not in so many words. When the Chairman was specifically asked if more complaints would mean more frequent meetings, the answer was, “Probably, yes. I would say that would be required, yes.” Here, I’ll spell it out for you: The only way the ADALB will meet on a monthly basis is if we provide more complaints for them to take action on. The fact that the Chairman had to preface his answer with “probably” clearly shows there is a complete disconnect and lack of understanding brought on by the delays that – due to the ADALB’s infrequent meetings – cause an impact on consumers and can inflict financial damage to repairers when they are forced to wait 60 days or longer for a resolution. This is a very important fact to grasp. THEY WANT COMPLAINTS if we expect them to meet more frequently. The complaints do not have to be long and involved, but they DO need to be properly documented and written, direct and right to the point. Items for complaints may include (but are not limited to): • not using a method to calculate paint and materials that is “documentable” rather than an arbitrary dollar amount-timeshours formula; • failure to locate an alternative vendor when parts are not available – through no fault of the repairer –from the specified vendor on the estimate (high return rate is NO excuse); • delays in producing original and supplemental appraisals; the intentional underwriting or overwriting of an estimate; • an appraiser stating they “cannot” write a procedure or pay because they have been
instructed (forbidden) to do so; • failure to acknowledge a sublet bill as part of the estimate when given documentation is provided; and • failure to write the costs of repairs WITH A MARKUP when documentation is provided. There is a complaint form on the ADALB website: mass.gov/service-details/licensing-board-motor-vehicledamage-appraisers. It can be easily downloaded, printed and filled out. If you are unfamiliar with the process or unsure if you have something that the ADALB has jurisdiction over, please contact AASP/MA directly. We will assist in the determination and can review your complaint and documentation. This a service we provide to our members along with the ADALB meeting videos posted to our website. Shops have played the key parts of the videos for the benefit of the customers and insurance appraisers at their facility. If you are a non-member and would like to take advantage of this service, please see the AASP/MA membership application on page 5. The collision repair industry must act on the ADALB’s invitation. I implore you to watch the videos and listen to this statement made by an insurance industry Board representative: “We do not make any decisions for the appraisers…We do not override decisions they make.” It
has also been indicated that appraisers are not told what to write. How many times have you been told by a staff or independent appraiser, “I cannot write that; they won’t let me”? Apparently, THIS IS NOT TRUE!!! If you were to watch the videos on our website, it comes up several times. Appraisers ARE free to write and negotiate. It sounds like someone is being less than forthright, and this is ALSO a basis for a complaint. EVERY ESTIMATE IS SIGNED UNDER THE PAINS AND PENALTIES OF PERJURY! It is about time these words are enforced and made to mean something. This WILL ONLY be accomplished through the complaint process. I know that the complaint process takes time and energy, which you do not have an abundance of when you are trying to run a business that is so controlled by a third party. If you just took a little of the time and energy you spend bitching about the injustices to write a complaint, then we could make huge inroads. DO IT NOW! THEY ARE ASKING (BEGGING) FOR IT!
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org
Where’s Lucky?
AASP/MA Chapter Meeting Schedule
Visiting Midstate Visiting Boston/Southeast
M
In the first week of March, Lucky will be visiting shops in the Midstate region.
Visiting Boston/Northeast
During the second week of March, he will be in the Boston/Southeast region and hosting a chapter meeting on the 11th at the Bristol-Plymouth Regional Technical School in Taunton.
Visiting Western
M
In the third week of March, he will be visiting the Boston/Northeast region. He will be visiting shops in the Western region in the fourth week of March and hosting a chapter meeting on the 25th at Smith Vocational and Agricultural High School in Northampton. (Note: An ADALB meeting will held on the 24th at the Division of Insurance in Boston at 10am.) In the first full week of April, Lucky will be visiting shops in the Midstate region and hosting a chapter meeting on the 8th. (Location TBA.) During the second full week of April, he will be visiting shops in the Southeast region. He will be visiting shops in the Western region in the third full week of April and will be hosting a chapter meeting on the 22nd. (Location TBA.)
Visiting Midstate
For the fourth week of April, he will be visiting shops in the Western region. M Visiting Southeast
AASP/MA will be hosting a General Membership Meeting on April 29. (Location TBA.) Lucky and AASP/MA President Molly Brodeur will be attending the AASP National Board Meeting in Minnesota April 30-May 1.
Visiting Western
M Visiting Western
Subject to change. Everyone should keep an eye out for meeting notices in their area. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
Lucky can be reached at (617) 574-0741 or lucky@aaspma.org.
M
MASSACHUSETTS
New England Automotive Report March 2020 13
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[LOCAL] NEWS
ADALB Addresses Sublets, Announces Bi-Monthly Meetings At their January 21 meeting at the Division of Insurance in Boston, the Auto Damage Appraiser Licensing Board (ADALB) discussed various topics introduced by Board member and collision repair industry representative Bill Johnson. These included requesting the Board’s views on the proper documentation of “sublet bills” on an estimate and whether the current regulations mandate that an estimate must be written using a dollars-times-hours formula to reflect labor costs. Additionally, Johnson again inquired about a possible change to ADALB
ADALB member Bill Johnson introduced several topics at the Board’s most recent meeting.
protocol that would allow for greater public transparency on the complaints heard by the Board during executive session. In other news, ADALB Chairman Michael Donovan indicated that the Board will begin meeting on a bimonthly basis unless they receive more complaints to review. (Please read this month’s Executive Director’s Message for more information.) Complete video of the January meeting is available in the Members Only section of aaspma.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report March 2020 17
18 March 2020
New England Automotive Report
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Â&#x2021; Link to website Â&#x2021; Quarterly copy of paid member list Â&#x2021; AASP/MA logo for your collateral -Bi-Monthly digital advertising in Damage Report Newsletter -Up to 9 Brands, 6x/year -Your copy due to AASP PGmDF PO UIF TU PG 'FC "QSJM June, Aug, Oct, Dec -NEAR Article QFS ZFBS -Company logo on AASP-MA website and published monthly in NEAR 7YVTV[PVUHS Ã&#x2026;`LY LTHPS ISHZ[ to membership -3x/year $PQZ EVF UP ""41 PGmDF PO TU PG 'FC "VH BOE %FD -25% discount on advertising in NEAR
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New England Automotive Report March 2020 19
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New England Automotive Report
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[LOCAL] NEWS
AASP/MA President Named “Vocational Partner of the Year” by Crossroads School AASP/MA President Molly Brodeur of Al Brodeur’s Auto Body in Marlborough, MA was recently named “Vocational Partner of the Year” by Crossroads School. Established in 2002, Crossroads School provides individualized, comprehensive education and related services to students with autism ages three to 22 to enhance their quality of life and independent functioning so they may reach their full potential. Every year, Crossroads recognizes one business as its “Vocational Partner of the Year” for providing outstanding service and dedication to the school. “Two years ago, we were lucky enough to partner with Molly,” said Ryan Palmison, OTR/L, M.Ed., director of related and vocational services at Crossroads. “She has provided a wonderful opportunity to our students that ranges from folding towels to office work, such as putting together thankyou packets for customers. Molly has even provided our students with a workstation in her office and given them work shirts to make them a part of the Al Brodeur’s team.” In addition to vocational opportunities, Brodeur is an active member in the Crossroads community and donates to various events throughout the year, including the recent #GivingTuesday campaign. “When we became aware of what Crossroads did for young people in our community, we couldn’t wait to be involved,” commented Brodeur. “We’re honored to have
Crossroads students actively involved at our shop on a weekly basis, as many hands make light work! They have been a tremendous help to us, and we’re delighted to provide them with an environment in which to develop important skills.” Crossroads School’s Related Services Department includes speech-language pathology, occupational therapy Continued on page 31
AASP/MA President Molly Brodeur with Ryan Palmison, OTR/L, M.Ed, director of related and vocational services for Crossroads School (photo by Jamie Faulkner, Crossroads School)
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New England Automotive Report
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©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. New England Automotive Report March 2020 25
Quality Repairs Start With Volvo Genuine Parts.
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26 March 2020
New England Automotive Report
Volvo of Wellesley 962 Worcester Street Wellesley, MA 02482 Parts Direct: 800-247-3033 Fax: 508-651-1220 www.volvoofwellesley.com
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You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419
IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098
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Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895 www.bernarditoyota.com
Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481 parts@wellesleytoyota.com www.wellesleytoyota.com
ToyotaPartsAndService.com New England Automotive Report March 2020 27
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Contact these Mazda dealers for all your parts needs: Mastria Mazda 1545 New State Highway Route 44 Raynham, MA 02767 Phone: 877-272-8876 Fax: 508-802-4074 wholesale@mastria.com
28 March 2020
New England Automotive Report
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
[LOCAL] NEWS
AASP/MA Testifies in Support of Revised Right to Repair Law AASP/MA Executive Director Evangelos “Lucky” Papageorg recently appeared before the Massachusetts Joint Committee on Consumer Protection to urge its support of House Bill 4122, which seeks to update the state’s current Right to Repair law to better address the growing presence of telematics in vehicle technology and repairs. Included in House Bill 4122’s proposed updates is the insertion of the following key language (with minor edits for clarity): Commencing in model year 2022 and thereafter, a manufacturer of motor vehicles sold in the Commonwealth, including heavy-duty vehicles having a gross vehicle weight rating of more than 14,000 pounds, that utilizes a telematics system shall be required to equip such vehicles with an inter-operable, standardized and open access platform across all of the manufacturer’s makes and models. Such platform shall be capable of securely communicating all mechanical data emanating directly from the motor vehicle via direct data connection to the platform. Such platform shall be directly accessible by the owner of the vehicle through a mobile-based application and, upon the authorization of the vehicle owner, all mechanical data shall be directly accessible by an independent repair facility or a class 1 dealer licensed pursuant to section 58 of chapter 140 limited to the time to complete the repair or for a period of time agreed to by the vehicle owner for the purposes of maintaining, diagnosing and repairing the motor vehicle. Access shall include the ability to send commands to in-vehicle components if needed for purposes of maintenance, diagnostics and repair. Additionally, the bill defines a “telematics system” as “any system in a motor vehicle that collects information generated by the operation of the vehicle and transmits such information […] utilizing wireless communications to a remote receiving point where it is stored.” It also defines “mechanical data” as “any vehicle-specific data, including telematics system data generated, stored in or
transmitted by a motor vehicle used for or otherwise related to the diagnosis, repair or maintenance of the vehicle.” Addressing the Committee, Papageorg explained that performing motor vehicle repairs with the most current information is of utmost importance, as auto body facilities take on the liability that such repairs will guarantee the vehicle will react as intended while driven and in a potential subsequent collision. He also noted that an independent shop’s cycle time and additional costs increase substantially if it does not have access to the same needed information that is obtained through an OEM facility repair. In addition to supporting the current legislation, the Massachusetts Right to Repair Coalition – whose members include AASP/MA – announced last December that it had turned in 102,000 signatures to ensure an initiative petition to enact the revised law reaches the 2020 ballot. “We’re hoping the Legislature takes up this bill,” comments Massachusetts Right to Repair Coalition Director Tommy Hickey. “But if they don’t, we’re fully prepared to move to the ballot for November 2020.” Hickey believes that revisions to the Right to Repair law are needed to secure the safety of consumers who have vehicles repaired at independent repair facilities. “Cars are becoming computers on wheels. Ninety percent of vehicles have wireless technology that consumers nor independent repair facilities have access to.” Papageorg says AASP/MA plans to continue its push to have the revised Right to Repair Law pass the Legislature. “Cycle time is paramount to collision repairers. It is critical for them to have timely information readily available at their shops as opposed to them having to send vehicles out and add to the overall expense of the repair and cause delays.” More information on the Alliance of Automotive Service Providers of Massachusetts (AASP/MA) is available at aaspma.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report March 2020 29
[VENDOR AFFINITY PROGRAM MEMBER] SPOTLIGHT By Alana Bonillo
Balise Collision Repair
Brian Stone of Balise Collision Repair Quality and experience have led the Balise name to become one of the most recognizable in the New England automotive industry. Balise Collision Repair has been a staple in the Springfield area since 1983. While being in the collision repair business for nearly 40 years is a major achievement, the Balise name actually goes back several generations. Balise Automotive Group just celebrated its 100th anniversary in 2019; its founding father, Paul E. Balise, opened the first Balise dealership back in 1919. The family business remains active today and is currently led by James E. Balise Jr., who has been president and leader of the group since 1986. “Doing the right thing is kind of our motto for Balise as a whole. We always put the customer first,” states Group Collision Director Brian Stone. Today, Balise Collision Repair has locations in West Springfield and Springfield and three locations in Rhode Island. Stone reports exciting times are ahead, as the company looks forward to further expanding its footprint with the opening of a third Massachusetts location on Belmont Street in Springfield this coming May. Plans to open a fourth collision repair shop in Rhode Island in early 2021 are also on deck. With more than 25 years of experience under his belt, Stone has spent the better part of his career leading body shop operations for the family-owned/operated repair business. Over the past 17 years, he has worked his way up from paint shop foreman and production manager to leading the operations at one of the Rhode Island body shops. From there, he became director of all Rhode Island collision shops, which eventually led him back to Massachusetts as group collision director. He now oversees operations for shops in both states. One of the Balise Collision Repair teams’ greatest 30 March 2020
New England Automotive Report
Balise Collision Repair’s Springfield location achievements is having the Warwick, RI location named Toyota Certified Collision Repair Center of the Year in 2017 and 2018. The award is given to the number one Toyota certified shop in the country. This was a direct result of the company’s commitment to its customers, strong awareness of its KPIs and commitment to continued training. “A person gets into an accident roughly every seven years; when they come in, they really don’t know what to do. We take it from there and take the hassle out of it for them. We put them in a rental car, work with the insurance company, get their car fixed to pre-accident condition and get them their car back. To me, that is what it is all about.” Balise Collision Repair prides itself on cycle time and providing customers with a one-stop solution for all their needs. Being certified in over 20 brands keeps the shops on top of training and puts them in a position to make sure they have all the latest and greatest equipment needed to properly repair vehicles. “Being in this industry, it has gotten harder and harder to do business and keep up with the times. The industry is changing monthly, never mind year to year. You have to evolve with the business. We are a big facility; we do a lot of volume. We keep a balance of quality and quantity, but quality comes first.” Fully aware of industry challenges, Balise Collision Repair recently decided to join AASP/MA. “We have the lowest Labor Rate in the country in a state with a high cost of living. At the end of the day, we all have the same goal, which is to correctly fix cars back to preaccident condition using the proper equipment and procedures. For most, [a vehicle] is the second biggest investment of their life. They drive their family in that repaired car; it’s our job to make sure it’s right. That’s just one of the reasons why I joined AASP/MA.” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
[LOCAL] NEWS
[NATIONAL] NEWS
Continued from page 22
and physical therapy. Crossroads also provides consultative services to other organizations and home and community-based services to Crossroads students and individuals with disabilities. Crossroads students and clients require highly individualized curricula to meet their educational and behavioral goals. All instruction and programming are based on the principles of Applied Behavior Analysis (ABA), the scientifically validated approach to understanding behavior and how it is affected by the environment. Since moving to Marlborough in 2017, Crossroads has experienced tremendous growth and success, with enrollment increasing from 55 to 68 students. The Marlborough Regional Chamber of Commerce recognized Crossroads as its 2018 Business of the Year. To learn more, visit crossroadsschoolma.org.
Boch Hyundai
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
THE SERVICE NEVER STOPS AT BOCH HYUNDAI! PARTS LINE:
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VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062
In Memoriam: Eugene “Geno” Nawrocki Eugene “Geno” Nawrocki, a longtime shop owner and member of the Massachusetts automotive service and repair communities, passed away on January 13 at 81. A graduate of Chicopee Vocational High School, he opened Geno’s Auto Service, a successful collision/mechanical repair facility, in Chicopee in 1956. Additionally, he ran Granby Auto Salvage from 1983 to 2000. He was a member of Chicopee Moose Family Center Lodge #1849, Chicopee Elks Lodge #1849 and the Fraternal Order of Eagles #404. Geno is survived by his beloved wife of 58 years, Dianne (Mainville) Nawrocki; sons Michael and Darren; daughter Starlene; sister Alice Fitzgerald; sisters-in-law Beverly and Cynthia Nawrocki; and five grandchildren. Memorial contributions may be made to the American Cancer Society, 30 Speen St., Framingham, MA 01701 or the Lahey Hospital & Medical Center, 41 Mall Rd., Burlington, MA 01805, Attn: Philanthropy.
Eugene “Geno” Nawrocki, a longtime shop owner and member of the Massachusetts automotive service and repair communities AASP/MA and New England Automotive Report offer Geno’s family and friends our deepest condolences.
Boch Chevrolet
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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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781-762-9210 800-559-9210 TOLL FREE:
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E-MAIL:
VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062
New England Automotive Report March 2020 31
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New England Automotive Report
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New England Automotive Report March 2020 33
A CLEAR PATH TO SUCCESS:
[NATIONAL] FEATURE By Alana Bonillo and Joel Gausten
In just a few short weeks, collision repairers from New England and beyond will make their way to New Jersey for the 2020 NORTHEAST® Automotive Services Show. Hosted by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ), this year’s show will take place March 20-22 at the Meadowlands Exposition Center in Secaucus. NORTHEAST is the largest regional event of its kind, regularly delivering the biggest names, the finest products and the best training available on the East Coast. “NORTHEAST is the only event that provides nationallevel education and networking opportunities for our members within a comfortable driving distance from Massachusetts,” comments AASP/MA President Molly Brodeur. “I have attended the show several times, and I always walk away with valuable tools and information to improve my business. Attending NORTHEAST also provides AASP/MA with the added bonus of supporting another AASP state affiliate that shares our commitment to improving our industry and providing the best and most professional repair experience for consumers.” For the third consecutive year, AASP/NJ has teamed up with the Washington Metropolitan Auto Body Association (WMABA) to present the Collision Professional Repairer Education Program (Collision P.R.E.P.), a three-day series of training events and presentations by some of the most recognized subject experts in the field. “People really need to get involved in their businesses, take control and start educating themselves, and there is nothing better than Collision P.R.E.P. at NORTHEAST,” comments AASP/NJ President Jerry McNee. “Collision repairers really need to participate in the show and get the full effect.” 34 March 2020
New England Automotive Report
Bill Enross of AASP/MA Bronze Sponsor cPrax Internet Marketing will present “Tackling Online Storefront Presence for the Collision Repair Business” on March 20 and March 22. A former shop owner who creates websites and online marketing strategies for collision repair shops nationwide, Enross will provide attendees with an eye-opening look into the importance of having a solid online presence that effectively promotes their business. He is prepared to show shop owners that although it can be complex to be found locally through search engines, there are probably some simple things they may be overlooking. The benefits of generating online reviews and the positives of text message marketing will also be discussed. “There are many basic things that shops may either be unaware of, ignoring or just don’t have set up correctly that could be changed at relatively little or no cost to help their businesses be found in local search results. I will send them off with items that they can take back to their shops that increase their probability of being seen.” Enross fully believes most shops are missing out on easy ways to generate online reviews. His talk sets out to reverse that. “I think a lot of shops are afraid to ask [for reviews]. When a customer picks up their car, the owner or estimator should be there to thank them, make good eye contact, ask them if they were happy, mention that online feedback would be appreciated and show them how it can be done.” After attending NORTHEAST for the first time last year, he is excited to now experience the show as a presenter. “Even though the show was well attended, I found it
Continued on page 41
NORTHEAST 2020 COLLISION P.R.E.P. CLASS SCHEDULE
FRIDAY, MARCH 20 SHOW HOURS 5pm - 10pm 3pm
OEM Workshop: Ford Discusses Accessing Repair Information, Collision Sectioning Procedures for Aluminum Gerry Bonanni (Ford Motor Company), Adam Gair (Ford Motor Company), Pete Fryzel (I-CAR) 5pm
Test Drives Done Right! Why and How to Perform, Manage, Document and Get Paid for Test Drives Frank Terlep, Auto Techcelerators, LLC
5pm
Tackling Online Storefront Presence for the Collision Repair Business Bill Enross, cPrax Marketing 5PM
Positioning Your Business for Sustainability Among Constant Change John Shoemaker, BASF
7PM
Utilizing the Vehicle Owner’s Manual to Educate Consumers and Insurers and Special SCRS Blueprint Optimization Tool Preview Mike Anderson, Collision Advice & Danny Gredinberg, Database Enhancement Gateway
SATURDAY, MARCH 21 SHOW HOURS 10am - 5pm 10am
Getting and Staying Certified – OEM Repair Requirements and Relationships Intertwined Dave Gruskos, Reliable Automotive Equipment & K. Michael Bradshaw, K&M Collision 10am
How to Control the Money in Your Collision Business in 2020 Matt Winslow, ATI
10am
Commonly Missed Items in Estimating – SCRS Blueprint Optimization Tool Utilization Danny Gredinberg, Database Enhancement Gateway 12:30pm
The Life of a Certified Repairer: An In-Depth Panel Discussion with Nationally Known Certified Repairers Panelists TBA 3pm
Documenting for Repair Process and Liability, Building a Bulletproof File and Improving Processes Over Time Mark Olson, VECO Experts
3pm
Structural Identification for Profitability – Knowing and Understanding Structural Damage Kelly Logan, Car-O-Liner & Ron Reichen, Precision Body & Paint 3pm
Build Great People: Creating an In-House Technician Development Program Charlie Whitaker, Akzo Nobel
5pm
The Wide World of ADAS: Panelist Discussion of Advancements in Safety Systems, Diagnostics and Calibrations Panelists TBA
SUNDAY, MARCH 22 SHOW HOURS 10am - 3pm 10am
Vehicle Diagnostics & Calibrations: Know What You Know…But More Importantly, What You Don’t Know Chuck Olsen; Aaron Clark; Josh McFarlin, AirPro Diagnostics 10am
Safety System Alignment: A New Focus on Body Shop Profitability Paul Stern, Liftnow Automotive Equipment 10am
Tackling Online Storefront Presence for the Collision Repair Business Bill Enross, cPrax Marketing New England Automotive Report March 2020 35
Get it right from the source.
Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs. When you need fascias, grilles, headlamps, wheels or any other Ford Motor Company Genuine Part, call your local wholesaling dealership. They’re a great souce for technical and repair information as well. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership.
Contact 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 Call us for your wholesale parts needs
Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
© 2019, Ford Motor Company 36 March 2020
New England Automotive Report
Audi dealers strive to make you an Audi Genuine Parts fan •
Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.
•
Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.
•
Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.
•
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.
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
Audi Peabody 252 Andover Street Peabody, MA 01960 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.audipeabody.com
Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com
Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com
New England Automotive Report March 2020 37
[COVER] STORY By Joel Gausten
PRO-CONSUMER, PRO-PROFIT: Inside the AASP/MA Philosophy AASP/MA is helping Massachusetts collision repairers take back control of their industry. The association’s efforts to improve conditions for shops and consumers alike were exemplified at its first chapter meeting of the year, which saw Executive Director Evangelos “Lucky” Papageorg update a full house of attendees at the Quirk Chevrolet Training Center in Braintree on the successes, initiatives and philosophies driving much-needed change at Beacon Hill, the Auto Damage Appraiser Licensing Board (ADALB) and beyond. After a year of debate within the ADALB, the Board recently passed an Advisory Ruling in response to various AASP/MA members’ concerns over aftermarket parts vendors blocking shops from purchasing products from them based on a high return rate. These shops argued that this practice made it impossible to comply with state regulations that required a shop to order from the vendor specified on the insurer’s estimate. Although the return of an ill-fitting or subpar aftermarket part only occurs after both the shop and insurer agree that it is inappropriate for use, some vendors still refused to sell to certain shops after the number of returns they generated reached a certain amount. “There have been a lot of people who have been blackballed because they want to do the right thing, and that’s what this Advisory Ruling has addressed,” stated Papageorg, who later paraphrased comments made by ADALB member and collision industry representative Rick Starbard that “if a vendor will not sell to you, that part is unavailable. Therefore, it is a supplement.” Papageorg addressed the related topic of parts price matching, which he believes adds to the struggles shops face when working to provide the best and most professional repair experience to customers. “The OEM vendor, the aftermarket vendor or whoever it may be should be able to get what they deserve for their product. It shouldn’t be a price matching issue to a lowest-of-the-low level, which only serves to financially benefit the insurer. Once you make the business decision to start pushing back, it will become easier for you and for everyone else. We should be able to get better-quality aftermarket parts that may fit better or be paid properly to use OEM.” Away from its work at the ADALB, AASP/MA continues to push hard on the legislative front. In addition to promoting its long-running Labor Rate Bill (including sending a letter to the Commissioner of 38 March 2020
New England Automotive Report
AASP/MA Executive Director Evangelos “Lucky” Papageorg Insurance outlining the issues surrounding a suppressed rate), the association recently testified in support of revisions to the existing Right to Repair law (see page 28) and is moving forward in pushing for passage of legislation that would move the ADALB from the Division of Insurance to the Division of Professional Licensure. Moving on to day-to-day shop issues, Papageorg tackled the increasingly controversial topic of sublet charges, stressing that facilities, as retailers, deserve to make a profit on work they pass on to outside entities during repairs. This is especially true in the case of scanning, which is now recommended or required by dozens of automakers. “You towed the vehicle to [the outside facility], they scanned it, they handed you a bill, you paid it and you had the vehicle brought back to your facility. You’re entitled a markup on that sublet bill...Why do [insurers] think you’re a bank? You’re not; you’re a retail repair business. You make profit based on your ability to charge for what you’re doing to repair a vehicle.” For those AASP/MA members who are actively using the AASP/MA-endorsed BillableGenie system offered by National AutoBody Research (NABR), an increase in profit is slowly being realized. Papageorg noted that some insurers have already raised their Labor Rate anywhere from one dollar to $1.50 an hour. While this amount is still far from the change truly needed, he was quick to point out that the tide is beginning to turn. Continued on page 46
Genuine Volkswagen Collision Parts Are a Call or a Click Away. The best repairs start with the best shop-supplier relationship. Contact the following Authorized Volkswagen dealers by phone, fax or email to get the parts you need, when you need them. Mattie Volkswagen 80 William S. Canning Blvd. Fall River, MA 02771 800-678-0914 fax: 508-730-1283
Lia Volkswagen 140 Elm Street Enfield, CT 06083 860-698-6890 fax: 860-265-7840 www.liavw.com
Volkswagen of Hartford 133 Leibert Road Hartford, CT 06120 Direct Parts: 860-543-6012 fax: 860-728-4408 email: ebautista@vwofhartford.com
Mastria Volkwagen 1619 New State Highway Raynham, MA 02767 Toll Free: 888-581-1146 Direct Parts: 508-802-9955 fax: 508-802-9966 email: vwparts@mastria.com www.mastriavw.com
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2020 Volkswagen of America, Inc.
New England Automotive Report March 2020 39
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: 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
Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940 Toll Free: 800-698-9280 Fax: 781-598-8026 E-mail: BSherman@Kellyauto.com
Web: www.mastria.com
40 March 2020
New England Automotive Report
Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: mbosma@kellyauto.com www.kellyauto.com
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
[NATIONAL] FEATURE Continued from page 34
easy to navigate. It was enjoyable to interact with the vendors, and the education classes were top-notch. With the short travel from the Boston area and great accommodations close to the hall, I’d recommend it highly to any AASP/MA member.” One of the most popular speakers in the industry, Mike Anderson (Collision Advice) will be among the featured Collision P.R.E.P. presenters for the 2020 show. “Next to SEMA, there is no other industry event that has the level of participation from OEMs and training offerings like NORTHEAST. There isn’t anything in the same league. It amazed me how many OEMs come out and support it. Honda has had events there, and General Motors launched its certification program there a few years ago. Every year, NORTHEAST ups its game.” Other featured presenters include John Shoemaker, business development manager for BASF, who will give attendees a thorough overview of how
they can position themselves for sustainability. This March 20 class will include an interactive discussion about the changes in the collision industry and how they affect shop owners. The presentation will stress the need to adapt to these changes and the consequences shop owners could face if they don’t move beyond the way things are currently done. “We will discuss how shop owners must adapt their environment to allow them to keep their business operating over a period of time. So, what does this really mean? The environment seen in some of today’s shops is not the one needed to continue doing business in the collision industry. Status quo is not positioning you for sustainability; it’s treading water in a rising river.” Shoemaker believes NORTHEAST is the perfect location for such a discussion to take place. “NORTHEAST provides the ability to meet up with the best in the industry in a close location and accomplish a lot in a short period of time. The talent the show attracts is the top in the
industry, and it is a great opportunity to be able to present at this premier event.” Longtime NORTHEAST supporter and industry veteran Frank Terlep (Auto Techcelerators, LLC) will challenge collision repairers to take a good look at their existing processes and ask themselves how they are performing and managing their test drives with his course, “Test Drives Done Right! Why and How to Perform, Manage, Document and Get Paid for Test Drives” on March 20. “We really want people to understand that this isn’t your father’s test drive anymore and to understand that when you deliver a vehicle to a customer, you need to make sure that all systems on the vehicle operate as designed before you deliver it.” See page 35 for the full Collision P.R.E.P. schedule. Pre-registration for NORTHEAST 2020 is underway. To sign up and/or learn more about NORTHEAST and Collision P.R.E.P., visit aaspnjnortheast.com. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report March 2020 41
[LEGAL] PERSPECTIVE By James A. Castleman, Esq.
What Can a Repair Shop Charge For? I was recently asked whether a collision repair shop can charge for the time and expense involved in researching OEM procedures applicable to particular repair jobs. After all, I was told, it has become increasingly necessary to research what the OEM procedures are in order to properly repair today’s vehicles so that they will be safe to drive. I was also told it can be timeconsuming and expensive to try to find out what procedures might apply. According to information obtained from the Database Enhancement Gateway (DEG; degweb.org), the CCC P-Pages state that labor time does not include “access to repair information/ subscription cost” or “repair information retrieval/lookup.” In a response to DEG Database Inquiry #12,442, Audatex noted that “[a]ny
42 March 2020
New England Automotive Report
labor related to research and/or investigation of OEM EPC and/or service information is not included in Audatex-provided labor values. Additionally, any relative OEM information subscription costs are not included in parts nor labor values provided.” In its response to DEG Database Inquiry #13,388, Mitchell stated that “[l]abor associated with purchasing an OEM subscription is not factored into any published labor allowances.” Is the time and expense involved part of the shop’s overhead that it must absorb? Can a shop add the time needed to do the research to their appraisals? Can a shop add in whatever their out-ofpocket costs might be to get the information? The simple answer is that repair shops can charge for whatever they want, in whatever way they want
and at whatever price they want. Yet, that does not mean that it is going to be easy to actually get paid for these charges without a fight. Can a Shop Really Charge for Whatever It Wants? What a collision repair shop can charge is governed by a number of factors, including various statutes and regulations and basic contract law. As an example, a regulation issued by the Massachusetts Attorney General says that it generally is an unfair or deceptive trade practice for an auto repair shop – whether collision repair, mechanical repair or glass repair – to charge for any repairs that its customer has not authorized in advance. If a shop fails to get advance authorization, the Massachusetts Motor Vehicle Damage Repair Shop statute says that a registered shop cannot make any false or fraudulent statements to its customer with regard to the repair and cannot prevent the vehicle owner from recovering their car without lawful authority. Further, as a key sentence in the Auto Damage Appraiser Licensing Board (ADALB) regulation states with regard to all auto damage appraisals, “The appraiser shall itemize the cost of all parts, labor, materials and necessary procedures required to restore the vehicle to pre-accident condition and shall total such items.” Notably, the Attorney General’s regulation also states that certain information must be on the final bill that a repair shop gives to its customer, including an “itemized list of the repairs performed on the customer’s vehicle; a list of the parts supplied to the customer by name and number, the price charged to the customer for each such part and the total amount charged to the customer for parts; [and] the number of hours of labor
charged for the repair work, a designation of such hours as actual hours worked or flat-rate hours, the price charged to the customer for each such hour and the total amount charged to the customer for labor.” Reading all of this together, there is nothing that limits what a repair shop can charge for. There is nothing that says what is and is not included in a shop’s overhead or included in otherwise listed procedures, and there is nothing that forces a repair shop to accept anything as being included in overhead or in otherwise listed procedures. It appears that a shop can truly charge for whatever it wants if the customer has authorized those repairs in advance and the elements of the work are specifically itemized in any appraisal of damage written by the shop’s licensed appraiser and also itemized in the final bill that the shop gives to that customer. Under these circumstances, a repair shop has an enforceable contract with its customer whereby they are obligated to pay that shop for everything they authorized – if itemized by the shop in its final bill and actually done by that facility. So, What’s the Problem? The problem, as every person in the collision repair industry knows, is that no matter what you charge for and what your customer authorizes, the vast majority of auto damage repair bills are paid for by insurers – and insurers limit what they will pay. You can charge your customer whatever you want, but the responsible insurer is not necessarily going to pay that full amount. Under the standard Massachusetts private passenger auto insurance policy – which is the contract of insurance that exists between your customer and their
insurer – the insurer says that it will pay the lesser of “the actual cash value of the auto or the cost to repair the auto” for first-party collision or comprehensive claims. But the policy also says, “The cost to repair the auto is limited to the prevailing competitive price, which is the price we can secure from a licensed repair facility conveniently located to you.” I am not sure exactly what that means, or if it even meets the standard required by the Massachusetts statutes governing collision and comprehensive insurance coverages. But courts generally have interpreted collision and comprehensive policy language to mean that insurers are required to pay the “reasonable” cost of repair. For third-party property damage claims, insurers are required to pay on behalf of their insureds “the amount the owner of the property [i.e., the third-party claimant, your customer] is legally entitled to collect through a court judgment or settlement for the damaged property [their car].” Courts have generally interpreted this to mean that insurers are required to pay the “reasonably foreseeable” cost to repair your customer’s vehicle. While there is a subtle legal distinction between the “reasonable” and “reasonably foreseeable” cost of repair, courts usually have read these standards to limit what a claimant or their repair shop can collect to whatever the “reasonable” cost would be for the repair industry near the customer’s locality. This is not a fixed standard and can (and does) vary from case to case. But if these matters actually ever get tried in court, experts on behalf of both the claimant and the insurer will be able to testify what, in their opinion, is reasonable in their particular area. A big problem arises whenever a new element of repair costs comes
into play. As an example, while it used to be an industry standard to always charge for – and get paid for – paint and materials on a dollarstimes-hours basis, new paint colors, widely varying paint costs and new painting techniques caused an uproar several years ago when repair shops sought to get paid for the actual costs for these things. While there initially was massive resistance in the insurance industry to change the way that they paid for paint and material costs, things eventually turned around (at least somewhat) to the extent that even the ADALB regulation was changed to require the recognition of this difference. Likewise, when unibody cars first came into existence decades ago, there was resistance to paying the necessary costs to make those repairs, but that certainly has changed. While the P-Pages in estimating manuals used to be largely ignored in the distant past, they are now necessary procedures in computerized estimating systems and eventually became an industry standard recognized as necessary to consider when writing appraisals. Until repair shops insist on getting paid for new items and there is an acceptance by insurers in the way that they think about these items in determining the “reasonable” cost of repair, there are going to be conflicts between repair shops and insurers in the battle to get paid for these items. Perhaps a key example today is the question of whether the cost of preand post-repair scanning should be included in the “reasonable” cost of repair. As (hopefully) the vast majority of repairers now know, it is impossible to properly repair today’s cars without performing these scans. A repairer does not know the full extent of damage to a car if he or she does not perform a pre-repair scan, and a repairer does not know if everything has been New England Automotive Report March 2020 43
[LEGAL] PERSPECTIVE properly repaired (or if a new problem arose during repair) unless a post-repair scan is performed. Today, a repair shop needs to have access to a scanning device in order to properly repair cars, and these devices are becoming necessary purchases for shops â&#x20AC;&#x201C; the same way that paint booths and frame machines became necessary in the past. The devices are expensive, and there is a cost involved in using them. There has been resistance by insurers to paying for these scans, but it is my understanding that they are coming around, even though there still may be resistance as to how much an individual insurer may agree to pay for a scan. As the devices have become more prevalent and their necessity has become more accepted, there has been more acceptance by insurers of paying for scanning. It appears that will continue as more shops use the devices and insist on getting paid. How about OEM Procedures? By the same token, it has become clear recently that researching and using OEM procedures has become a necessary part of the collision repair business. The fact that virtually every repair of almost every item on every car today involves safety makes it imperative that shops know what OEM required or recommended procedures are â&#x20AC;&#x201C; and that they use them.
A few days ago, I was presented with a disturbing piece of information. A recent nationwide survey found that only 25 percent of the respondents currently research OEM procedures, and only about 60 percent of that number utilize OEM websites to get the information. Knowing the serious safety implications involved, I was appalled. I would not want my car fixed without my repair shop using OEM-recommended procedures, and I would hope that all repair shops would learn to find out what those procedures are in every repair they perform and them. Further, I would expect that my repair shop would get paid for using these procedures during the course of repair. Yet, until more repair shops understand the importance of these procedures and start to include them in their repair contracts with customers, their repair appraisals, their negotiations with insurance appraisers, their supplement requests and their final bills, insurers may still continue to be resistant to paying for them. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 4723424 or at jcastleman@prclawoďŹ&#x192;ce.com.
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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 canâ&#x20AC;&#x2122;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
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
New England Automotive Report March 2020 45
[COVER] STORY
Continued from page 38
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“The fact of the matter is, [the rates] went up. There’s pressure being applied, and we need to keep that up.” With current vehicle technologies demanding the use of OEM-recommended/required repair procedures, Papageorg urged attendees to access or utilize the resources available that provide proper OEM documents and methodologies. He noted that he learned through Mike Anderson of Collision Advice that owner’s manuals often provide an alternative to paid subscriptions to OEM information sites. “As an example, the owner’s manual might say that calibration procedures must be performed. The only way to perform those procedures is with a scanning tool. That kind of insight is available in the owner’s manuals, and that’s free. You just need to know where to look.” As AASP/MA moves on with its Labor Rate Survey, BillableGenie campaign, social media activities and other key membership initiatives, Papageorg stressed the importance of current members helping the association grow its numbers. “It’s incumbent upon you to bring in a member. That extra voice makes your voice that much louder.” For information on upcoming AASP/MA meetings and events, please visit aaspma.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
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SARAT FORD, WHERE CUSTOMERS BECOME FRIENDS! 46 March 2020
New England Automotive Report
New England Automotive Report March 2020 47