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New England Automotive Report
March 2022 • Volume 20, No. 3
DEPARTMENTS
CONTENTS COVER STORY
EXECUTIVE DIRECTOR’S MESSAGE 6 | Is Today the Day…? by Evangelos “Lucky” Papageorg LOCAL NEWS 10 | Opening Doors in 2022: AASP/MA Presents “Your Key to Success: Optimize Your Labor” by Alana Quartuccio Bonillo 12 | Insurers Hinder ADALB Vote on Regulatory Amendments 14 | Failure to Thrive: Special Commission’s First Hearing Explores Suppressed Labor Rates by Chasidy Rae Sisk NATIONAL NEWS 16 | “Who Pays for What?” A Powerful Tool to Help Repairers Succeed by Alana Quartuccio Bonillo
26 | Breaking Into the Boys’ Club: Women in Collision by Chasidy Rae Sisk
LEGAL PERSPECTIVE
VENDOR AFFINITY PROGRAM MEMBER SPOTLIGHT 20 | Long Automotive by Alana Quartuccio Bonillo JUST FOR FUN 22 | Craziest Car Names by Alana Quartuccio Bonillo
ALSO THIS ISSUE 7 | AASP/MA MEMBER APPLICATION 21 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS
34 | Are Insurer Direct Referrals Illegal?
by James A. Castleman, Esq.
New England Automotive Report
March 2022 5
EXECUTIVE DIRECTOR’S MESSAGE
Is Today the Day…? EVANGELOS “LUCKY” PAPAGEORG
Every day we are faced with a multitude of decisions and choices. Some are minor, while others can have a life-changing effect. The decisions may only affect you personally, or they could have a far-reaching impact. Some of us shy away from making decisions for as long as we can as we consider every possible scenario. There are times we overthink a decision and take so long that, in the end, it is too late. Indecision could cost us dearly. Often, we know what we should do, yet we are paralyzed with indecision. You may very well be asking yourself, “Is today the day for me to make a critical and potentially life-changing decision?” If you are a technician in the collision repair industry, you may be asking if today is the day you decide to throw in the towel and move on to a different profession? A profession where you can make more money. A profession where you can earn what you are worth based on your knowledge and expertise. Where you don’t have to work nearly as hard and where you get better benefits. A place where you will be able to provide better for your family and not jeopardize your body and health to earn just a little bit more than when you knew a lot less and were much younger. Do you find yourself being shortchanged every time the minimum wage goes up and the gap lessens between your pay and that of someone with no technical skills or thousands of dollars tied up in tools? Is today the day you go to work driving a truck for Amazon to make
six figures and get home for dinner with your family and not be exhausted? If you are a licensed auto damage appraiser working for an insurer or appraisal firm, you may be asking if today is the day that you can finally do what you know to be right, fair and ethical without fear of losing your job? Will today be the day you can walk into a shop and properly assess the damage and negotiate in good faith for the repair of a collision damaged vehicle? Is today the day, rather than being disrespectful saying, “No, we don’t pay for that,” that you look the shop appraiser in the eye and say, “Yes, I see that is something you need to do”? Is today the day you take a step to ensure the privileges you have been granted as a licensed appraiser are protected by calling your local state Representative and Senator and telling them – as a staff or independent appraiser – you want them to vote in favor of HB 4242 to move the ADALB to the Division of Occupational Licensure? A move which could ultimately protect your job because the regulations would have to be upheld and followed and not trampled on by your bosses who are jeopardizing your ability to make a living. When you are told to break the regulations, it is you who is being put in harm’s way. Imagine not having to go into a shop and argue so the insurer can save and make millions for their stockholders on your back and the backs of hard-working body shops. continued on pg. 40
STAFF
AASP/MA EXECUTIVE COMMITTEE
PUBLISHER
President Kevin Gallerani
Thomas Greco | thomas@grecopublishing.com
SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio Bonillo | alana@grecopublishing.com
OFFICE MANAGER Donna Greco | donna@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com
MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com
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
Treasurer Dana Snowdale
Secretary Gary Cloutier
AASP/MA STATEWIDE DIRECTORS Director At-Large Adam Ioakim
AASP/MA DIRECTORS
Legislative Director At-Large Tom Ricci
ZONE 1 Mike Penacho Dan Wenzel John Studer
ZONE 2 Ray Belsito Joshua Fuller Brenda Lacaire
Affiliate Director Rick Fleming
Affiliate Director Bill Spellane
ZONE 3 Andrew Potter Brian Stone
AASP/MA ADMINISTRATIVE OFFICE AASP/MA Executive Director Evangelos “Lucky” Papageorg
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 © 2022 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
6 March 2022
Vice President Matthew Ciaschini
New England Automotive Report
AASP/MA Administrative Assistant Alana Bonillo
WWW.AASPMA.ORG
Collision Director At-Large Rob DelGallo ZONE 4 Kevin Kyes Jim Marshall Paul Tuscano Affiliate Directors Frank Patterson Jeff White Don Dowling P. O. Box 850210 Braintree, MA 02185 617-574-0741
Membership Application 2022-2023
AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741 Fax: 973-235-1963 Email: admin@aaspma.org
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You! BUSINESS INFORMATION Massachusetts Shop Registration # __________________
Total number of Staff (Techs, office, Mgrs)________
Company’s Official Name: ________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: (______)-________-___________ Fax: (______)-________-___________ DUES STRUCTURE. Collision Shop Annual Dues: $495 / 12 Months* PRIMARY BUSINESS CONTACT Name: _______________________________________________________________________________________________________________ Email: _______________________________________________________________________________________________________________
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 ___/____/2022) Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � Grant writing/training � Google presence optimization � All five PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) CC #: ______________________________________________________________________
OR
EXP: ________/___________ CID: _________________
Billing Address: ______________________________________________________________________________________________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues 2022-2023 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
REV 12/21 New England Automotive Report
March 2022 7
8 March 2022
New England Automotive Report
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New England Automotive Report
March 2022 9
[LOCAL] NEWS
by Alana Quartuccio Bonillo
Opening Doors in 2022: AASP/MA Presents “Your Key to Success: Optimize Your Labor” Working to make sure its members have access to the best resources and tools needed to help keep their body shop businesses afloat during these stormy times, AASP/MA has put together a program for its first general membership meeting of the year that is guaranteed to give repairers an open door to success. AASP/MA will host an in-person gathering March 30 at the DoubleTree Hotel in Westborough. The event sets out to cover various topics from legislative efforts, Labor Rate Study Commission hearing updates and preparing ADALB complaints which will all be followed by the featured presentation, “Your Key to Success: Optimize Your Labor,” delivered by Lee V. Rush of Sherwin-Williams Automotive Finishes. Dinner and networking will also be part of the event. “We’re really excited to have Lee Rush here in person,” states AASP/MA Executive Director Lucky Papageorg who recalls the great reception Rush received last June when he presented a virtual estimating seminar for Massachusetts repairers. “He’ll address how to optimize the technology that is out there right now to help shops be more efficient and be able to properly repair today’s vehicles in a more expedient fashion,” adds Papageorg. “New technicians are not entering the industry because the work is seen as chaotic and labor intensive,” reported Rush in a
statement. “Of 18-24 year olds considering a skilled trade, collision repair had the second lowest consideration. In an industry where vehicle complexity is increasing and repair cycle times are increasing with an industry average touch time of 2.6 labor hours per day, labor improvement is our greatest opportunity – an opportunity not just for profitability but the quality of life that comes with it.” In an industry of constant and unpredictable change, a more productive business model will be necessary in order to thrive. Rush’s presentation will arm participants with the ability to increase technician labor utilization, improve shop touch time, increase vehicle throughput, drive production efficiencies and improve customer satisfaction. “Utilizing labor correctly is essential to being truly agile and profitably sustainable in the collision repair industry,” Rush emphasized. “Labor undoubtedly creates the biggest potential profit, typically returning a 62 percent margin. A full parking lot without the available labor to complete the work on-time (meet cycle time goals) or a depleted parking lot with unsold labor are both undesirable situations for any collision center.” Rush is an accredited speaker who regularly presents at the NORTHEAST® Automotive Services Show and SEMA. He has an extensive background in managing collision centers, independents, dealers and MSOs, and he possesses an extensive amount of expertise in business center expansion. “We also plan to give attendees a report on how well we are doing with our legislative initiatives and what the plan is moving forward to continue that momentum,” Papageorg encourages collision repair professionals not to miss this meeting. There are also plans to discuss the Labor Rate Study Commission hearings, and attendees will receive templates to be used to help ensure written complaints to the ADALB are thorough so they will move forward based on their merits. Registration is underway at aaspma.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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10 March 2022
New England Automotive Report
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March 2022 11
[LOCAL] NEWS
Insurers Hinder ADALB Vote on Regulatory Amendments Hopes ran high as the Auto Damage Appraiser Licensing Board (ADALB) met virtually for its first meeting in 2022. After spending the bulk of last year’s meetings debating amendments to 212 CMR 2.00 which were approved in 2016 by the previously seated ADALB, the Board completed its review during its November meeting, leaving only one remaining vote to accept the regulations. Yet, despite last year’s repeated scrutiny of each word in the ninepage document, that final vote did not take place during this meeting due to concerns raised by the insurance representatives sitting on the ADALB. The conversation progressed smoothly until the Board reached 2.04(1)(e) when Board member Peter Smith (MAPFRE) raised a new concern related to “some minor grammatical changes.” “This has been going on for five and a half years, and I just don’t get it,” Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) objected. “This seems like a delay tactic by the insurance representatives, and I’m not trying to throw stones, but it’s just very frustrating.” “We’ve rehashed this thing a million times,” Board member Rick Starbard (Rick’s Auto Collision; Revere) agreed. “We were all cool with it at the last meeting.” Smith made a motion to table discussion on those revisions until the next meeting, and after a long pause, Board member Samantha Tracy (Arbella Insurance) seconded the motion. Both representatives from the insurance industry voted in favor of the apparent attempt at
a filibuster, and when Johnson and Starbard voted against the motion, the decision fell to ADALB Chairman Michael Donovan who sided with Smith and Tracy. When Smith expressed concerns with the language added to 2.04(2), Starbard pointed out that he and Johnson had no issue with the original verbiage, but at his suggestion that they move forward with the previous content as written, Smith thwarted his efforts to hasten the review by offering to “clean this up and bring it as a suggestion to the next meeting.” The ADALB is scheduled to meet next on March 15, though Starbard and Johnson pressed for an earlier meeting in order to complete the long-overdue review. After reviewing the final two concerns raised by Smith in relation to 212 CMR 2.00, the ADALB plans to begin reviewing the first 20 complaints which have been in queue since before the COVID pandemic in order to move them forward and start addressing the additional filed complaints that have been piling up over the last two years. AASP/MA members are strongly encouraged to listen to the recording of the January 26 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. The original proposed revisions can be found on the November meeting agenda, available at bit.ly/ADALB0122. More detailed coverage of this meeting appears in the February issue of the Damage Report members only newsletter. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
12 March 2022
New England Automotive Report
New England Automotive Report
March 2022 13
[LOCAL] NEWS
by Chasidy Rae Sisk
Failure to Thrive: Special Commission’s First Hearing Explores Suppressed Labor Rates “If we only look at the past, how will we ever move forward into the future?” AASP/MA Executive Director Lucky Papageorg asked during the first hearing of the 15-member Labor Rate Special Commission (LRSC), held on January 25, which included testimony from over 30 collision professionals from independent shops and dealerships as well as several vo-tech instructors and one insurance industry representative. Established pursuant to Chapter 24, Section 130 of the Acts of 2021, the LRSC was created to review issues related to auto body rates and the auto body industry in an effort to determine whether legislative action is needed to support collision repairers and allow them to raise their Labor Rates which have remained nearly stagnant for the past 30 years. “We’ve seen little to no movement on insurance reimbursement rates, despite previous recommendations, despite rising expenses, increases in minimum wage and inflation; quite frankly, I’m appalled that something so obvious needs to be studied,” asserted AASP/MA Vice President Matthew Ciaschini (Full Tilt Auto Body & Collision; West Hatfield). “The $40 Labor Rates we have worked under for so long are bordering on criminal, and without legislation, they will stay that way. We continue to do more with less, day after day, forced to become efficient beyond belief to keep our doors open. We can no longer continue to turn a blind eye to insurer suppression. We need a sustainable solution that will allow our industry to not just survive but to thrive.” Molly Brodeur (Al Brodeur’s Auto Body; Marlborough) observed, “The collision repair industry in Massachusetts continues to suffer from failure to thrive in comparison to repairers across the nation, and we are at a critical crossroad of being able to survive. The rate being reimbursed to Massachusetts consumers to repair vehicles is a disgrace. I’m extremely concerned about the safety of the motoring public, the viability of repairs and our overall ability to repair the technology-rich vehicles of today and the future.” Shops located near Massachusetts’ borders emphasized that the Labor Rate discrepancy is especially obvious when a technician can cross into a neighboring state and make significantly more money. “I’m on the New Hampshire border, and technicians can go 10 minutes across the border and make more money than I can compete with,” lamented Jeffrey White (North Andover Auto Body; North Andover) whose concerns were echoed by several others. “The same insurance adjuster who tells me they can’t negotiate my Labor Rate will go to a shop in NH and is able to pay that rate of $10 to 15 higher than they’re paying me. I don’t see that as fair and reasonable, and it’s certainly not sustainable.” While Massachusetts’ collision repair Labor Rate is the lowest in the country, mechanical shops often make three or four times 14 March 2022
New England Automotive Report
as much, a disparity that was repeatedly pointed out during the hearing, with testimony from dealership representatives lending credence to these claims. “The collision business is not a viable business for me without subsidizing it from my other businesses, but I keep it because it’s an important service for our customers who really don’t know where to go when they get into an accident,” acknowledged Edward Lutz (Alden Buick GMC; Fairhaven). “I implore you to not underestimate this issue and to understand that it does have a direct effect on our ability as collision repair centers to provide customers with safe, quality repairs while providing our employees with a competitive living wage.” “The body shop rate has not even increased with the cost of living, yet a collision repair technician needs to invest in tools and training at the same level as a service technician. There should be equal pay for equal work,” asserted David Brown (Bill DeLuca Family of Dealerships). “The average age of a technician in our shop has grown from 59.5 [years old to an average age of ] 69 years old. We recently lost one of our youngest technicians to a trade that offers more money per hour.” Shop owners who sit on vo-tech advisory boards were joined by collision repair program instructors in confirming that the suppression of Labor Rates in the Commonwealth have a detrimental effect on the number of students interested in pursuing a career in the industry with many students losing interest when they’re unable to see a viable career path. “We’re struggling to get kids in our program due to the labor wages they pay,” Tim Arruda, automotive collision repair instructor at Upper Cape Tech in Bourne, noted, adding that other programs’ starting Labor Rates are significantly higher for less technical trades. “We have a hard time selling [the industry] to these young teenage kids who come into our program trying to look for a future. A lot of kids are interested in working on cars and enjoy it, but when they go out to the co-op program their junior or senior year, they don’t want to stay because they don’t get paid enough.” “If we’re recruiting students to enter a skilled trade, we need equal footing,” agreed instructor Gabe Coutinho (Upper Cape Tech; Bourne). “It’s just as simple as that.” Witnesses from multi-generational shops provided testimony substantiating claims that the industry does not offer a viable career path for the future generations. “As a second-generation owner, as it stands right now, I will not have a legacy business,” Brodeur admitted. “I will not subject my children, if they have an interest in this industry, to the egregiousness of the inequities that have plagued us for over 30 years without any care or concern for the consumers or us as
business owners carrying all of the liability and employing many constituents of Massachusetts.” Matthew Penacho (Mike’s Auto Body; Fall River) grew up in the industry, working in the shop alongside his father Mike since he was seven years old. “I remember being fascinated by cars as a kid, and I always wanted to be with my father because he’s my hero. But he always told me, ‘I don’t want you to get involved in this industry,’ and I never understood why. Now that I have a son who wants to come to work with me, I don’t want him to get involved. It breaks my heart because I have such a passion for repairing vehicles, but I know that my son will not be able to have the same opportunities as his friends in different industries because he won’t be paid a fair and reasonable rate. We’re not looking to become millionaires. We’re just looking to run a business efficiently and be able to hire and train good technicians.” The only representative from the insurance industry to provide testimony, Massachusetts Insurance Federation Executive Director Christopher Stark, shared a different opinion than other witnesses, blaming stagnant Labor Rates on supply and demand rather than insurer suppression.
“We in the auto body industry are at a breaking point. Take some action, and do what is ethical!” “We don’t have a government-set price right now. This is the market setting these prices, partially still based on supply and demand economics of the commonwealth versus our surrounding states. When you have an oversupply of a service, there are going to be those in the market, as there are today, willing to negotiate that price with insurers, as they have been doing. And their agreements do impact the rest of the market.” Papageorg objected to Stark’s stance: “The argument that there’s too many shops in Massachusetts has no bearing on what it costs to run a business in Massachusetts. continued on pg. 44
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March 2022 15
[NATIONAL] NEWS
by Alana Quartuccio Bonillo
A Powerful Tool to Help Repairers Succeed In this complex and – all too often – challenging industry, collision repairers certainly need all the help they can get their hands on to remain successful. One of the best tools around is available to all repairers for FREE, courtesy of CRASH Network and Collision Advice via their quarterly “Who Pays for What?” survey. The survey provides an opportunity for shops to lend their voices to the industry by reporting about operations, and the results help educate them – and the whole industry – about “not included” operations, while also tracking trends and reporting issues. The data compiled can be used in negotiations and even as a training tool. Repairers can sign up to take the surveys at crashnetwork.com/ collisionadvice/. Everyone who completes the survey receives a report once the results are compiled. Results are also available for download via the website. Making its debut in 2015, the survey came to be as a result of a collaborative effort between well-known industry consultant Mike Anderson (Collision Advice) and John Yoswick (CRASH Network). “When I had my shops, there was a publication called Collision Insight, produced by this guy named Charlie Baker,” explained Anderson. “It was this little newsletter with industry trends in it. He always had a survey about 20 things relating to the top eight insurers which asked, ‘How often did you get paid for those?’ This was back in the days of fax machines. So, you would fill it out and fax it to him. Then he’d compile the results and put them in a future issue. “I used to love that,” he continued. “Once I became a consultant, I wanted to do something along the same lines but on a grander scale. So, I called John Yoswick at CRASH Network and suggested putting out a survey collaboratively. We put together a list of questions and got it out, and people saw value in it.” Once the survey got off the ground, repairers took to it quickly, Yoswick and Anderson report; one of the first surveys brought in more than 1,000 responses, according to Yoswick. 16 March 2022
New England Automotive Report
Anderson decided to break it into four surveys, which are distributed in January, April, July and October and conducted annually. “We decided to group them into themes,” says Yoswick. “There have been some changes over the years, but we always do one on refinishing operations, one on body labor operations, one on frame and mechanical and one on scanning and calibration and/or shop materials, which would ask questions such as ‘Are you charging for seam sealer?’” Anderson cited the four main reasons why repairers should take the 15 to 20 minutes to complete the quarterly survey: “The number one reason is to create awareness about things repairers may not be charging for. Number two is to show repairers that they aren’t ‘the only one’ and to give them confidence they aren’t alone. Third, it’s also a great training tool; repairers can take the results and share it with their staff during training. “The fourth benefit is a credit to the Database Enhancement Gateway (DEG). We’ve upgraded over the years to include links to the DEG inquiries that show ‘not-included’ operations after every question.” Some interesting things have been uncovered over the years as a result of the surveys. For the past six years, repairers have been asked if they charge for administrative fees on total losses. Back in 2015 when the survey debuted, only 46 percent reported asking for reimbursement “regularly, always or most of the time.” Yoswick indicates their most recent results show that figure has driven up to 72 percent. Although the survey does generate results from hundreds of shops each quarter, Anderson still wishes more would complete it and therefore encourages every repairer to invest the time. It doesn’t cost anything more than a few minutes and using the results brings a high-level of value into one’s business. “It’s just good for the industry,” says Anderson. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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New England Automotive Report
March 2022 17
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New England Automotive Report
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March 2022 19
[VENDOR AFFINITY PROGRAM] MEMBER SPOTLIGHT
What is the secret behind Long Automotive Group’s success? Longevity! The Subaru and Cadillac dealership group has been serving Massachusetts and surrounding states for over 90 years and counting. A one-stop shop for all automotive needs from new vehicles to service and parts, the family-owned operation has been in the caring and capable hands of multiple experienced professionals who have been a part of the Long Automotive family for decades. One of those longtime professionals is Tom Schube who is in his 40th year with the parts department. The parts manager started out as a driver and later worked his way into the shipping and receiving departments. Eventually, he wound up working in the wholesale parts department which was managed – and basically built – by his own father, Fred Schube. The company’s owner, Charles Long, asked Tom to take over for his father when Fred entered semi-retirement. Although the elder Schube was semi-retired for a number of years, he remained active with the department until less than a year ago. “He made it 61 years! You don’t hear about that type of longevity at any dealership,” says the parts manager about his father.
Left to right: Tim Leroy, Mike Gentile, Ray Antinovitch, Ed Poor, Al Chamberlain, Josh Johnson, Sean Mahoney, Steve Brown-Boone, Skye Mazuroski, Ken Parker
by Alana Quartuccio Bonillo
Tom is now on the path toward retirement as he approaches completing four decades with Long Automotive. Semi-retired, he is currently working half days and plans to finish out the year. As Tom transitions toward retirement, his role will be shared by Skye Mazuroski and Kenny Parker. Mazuroski has been with Long Automotive for well over a decade and has the expertise to step into any role needed, and Parker has been assistant manager of wholesale parts with 40 years under his belt. The company remains family-owned and operated after 92 years. Although original owner Charles Long has retired, another member of the Long family – Scott Barry – has taken the reins. Growth has been steady and happening so rapidly that Long Automotive already outgrew the additional 12,000 square foot which was constructed only a few years ago. In fact, they are now looking to add on a satellite warehouse as they are maxed out of space at their current location. Delivery trucks are jammed, and they have pushed up their call times from 9:30am to 8:30am. “Business has been so good the past couple of years, it’s just crazy!” Tom reports. He attributes some of the growth to the fact that the chip shortage has led to more vehicles being fixed than replaced, but it’s also due to the personal attention Long Automotive employees give their customers and their ability to provide same day delivery. In addition to adding onto their storage, they’ve increased their manpower as well. The wholesale team has grown from 29 to 38 people strong in just two years’ time. Many of those in the wholesale parts department have been around for at least two decades such as Tim Leroy (29 years), Al Chamberlain (25 years), Ed Poor (24 years) and Mike Gentile (23 years). Based on the belief that it’s important to support the local automotive community, Long Automotive has been an active supporter of AASP/MA for many years. They recently renewed their Silver level sponsorship in the association’s Vendor Affinity Program for 2022. Tom always takes part in the AASP/MA annual golf outing, and the company consistently lends its support to that annual fundraising event. It’s highly likely that with the longevity of its employees and the longevity of its success, Long Automotive is here to stay for the long haul.
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20 March 2022
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JUST FOR FUN - CRAZIEST CAR NAMES
by ALANA QUARTUCCIO BONILLO
Well-known vehicles like the Ford Mustang, Dodge Charger and even the Honda Civic tend to exude character, class and boldness through their names, which leave their driver with confidence and pride in the automobile of their choosing. Likely, this is exactly what the manufacturer had in mind. Well, not every vehicle released onto the roadways has exuded the same type of effect via its name. So, then what exactly were manufacturers thinking when they came up with vehicles named after vegetables, celebrities or slang terms that leave us thinking WTF?
Mitsubishi Minica Lettuce
This 1989 Japanese minicar from Mitsubishi with the leafy green name was one of the first crazily named vehicles we stumbled across. Believe it or not, there is some logic behind its unusual name. The automaker was looking to appeal to a specific audience – females. But that’s just the tip of the iceberg. According to the New York Times, the Mitsubishi Minica Lettuce was created for supermarket shopping and, in fact, was designed for and sold at a Japanese supermarket, Seiyu. In addition to having an odd name, the car featured three doors, rather than the standard two or four doors. Intended for women who likely were assumed to be mothers, the unique design of one door on the driver’s side and two on the passenger’s side was to prevent children from getting out and to make unloading groceries easier. And just in case you’re wondering, yes, it did come in green.
Toyota Deliboy
This pickup truck was designed by Toyota to be a smaller and cheaper version of the Toyota Quick Delivery, an odd name in itself, but its knockoff version, the Deliboy, implies a vehicle made of or filled with meats and cheeses. Now that would really be crazy! Unfortunately, the vehicle just didn’t deliver in so many ways. In the discomfort department, it was said to have had small doors and the passenger seat left one uncomfortable. It also didn’t feed the need for speed due to its insufficient engine power. Not surprisingly, the Deliboy wasn’t a moneymaker for Toyota and was produced only from 1989 until 1995
Subaru Legacy Touring Bruce
Back in the late 1980s, Japanese fans went crazy for the Die Hard actor, Bruce Willis. They were so crazed about the action-film star that Subaru launched an ad campaign featuring the celebrity to promote their mid-sized Legacy. Later, they decided to rename a special edition of the Legacy after Willis himself. Although the vehicle didn’t exactly take off, the manufacturer remained crazy about him, and Willis has continued to appear in their ad campaigns over the years. A famous one can be viewed here: youtu.be/hvVMqkTeu70.
Volkswagen Thing
Upon seeing this vehicle, one’s first reaction may be, “What is that crazy looking thing ?” and here is the thing: This early 1970s vehicle was originally called the Safari in other countries, but here in the US, the Pontiac Safari was already a thing. So, Volkswagen decided to go ahead and pick a new name for it, and for some crazy reason, the manufacturer couldn’t come up with anything but settled on calling it the Thing. Another thing is that the Thing was known for being slow, it completely lacks safety features, and its removable wooden floor is quite a puzzling thing. This vehicle’s lack of appeal therefore kept it from a sure thing, and therefore, the vehicle never amounted to anything.
Nissan Friend Me
Back in 2013, Nissan was apparently trying to appeal to the budding social network generation with this “friendly” model; however, its name tends to exude more of a desperate and lonely feel, and the Friend Me went the way of Friendster and MySpace. Perhaps it was lacking in emojis and varied “reaction” buttons.
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Photo credits: InsideEvs.com, second.wiki.com, commons.wikemedia.org, reddit.com, autoblog.com
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24 March 2022
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March 2022 25
[COVER] STORY
by Chasidy Rae Sisk
Breaking Into the Boys’ Club:
Women in Collision While women make up around 51 percent of the population, less than two percent of auto body repair technicians are women, according to a 2021 report by the US Bureau of Labor Statistics. Yet, nearly 60 percent of women participate in the labor force, which begs the question: Why aren’t more women working in collision repair shops where we so desperately need help? A large reason for the lack of female technicians is simply… the lack of female technicians. Young women don’t pursue careers in the collision industry because they don’t see other women in those roles, limiting their belief that there’s a place for them. That belief, of course, is completely inaccurate; although women are different from men, those differences are a strength when leveraged properly! Women think differently. Their focus on efficiency and accuracy tend to be huge assets for shops, not to mention the fact that female consumers are typically more comfortable visiting shops that employ women. But defying the odds and being the only woman in the room comes with its own unique set of challenges and fears. Overcoming the fear of being different is never easy – just ask any repairer whose negotiations with insurers have been quelled by the claim that they’re “the only one!” – but not 26 March 2022
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everyone allows their aspirations to be subdued by the fear of being unique. New England Automotive Report talked to a few of the amazing women who’ve found a home in the collision repair industry in Massachusetts about their experiences working in a male-dominated industry, the benefits of diversity and how shops can attract more female employees. Like many women in this industry, McColl Rhodes (Nesco Sales, Inc.; Bondsville) found her way to collision “quite by accident, actually. I followed my brother to Pathfinder RVTHS, our local vo-tech high school, but I had my heart set on joining the web design program in hopes of becoming an animator. I found out that was not for me. After testing the other programs to decide which program I wanted to enter with no luck, I was frustrated about not finding my place and requested my brother’s advice. “After my brother and I reviewed what I liked and disliked about each shop as well as what I hoped to learn from them, he asked if I had ever thought about collision. The thought had never crossed my mind! He pointed out the creative aspect of the industry and stressed that it was definitely much more than just dirty, grumpy guys working on cars. He encouraged me to try painting, and when I explored the collision shop, I fell in love.”
Once she graduated high school, Rhodes was hired at Nesco Sales where she began her career performing minor repairs, R&Is, detailing and masking before becoming a licensed auto damage appraiser. Although she initially planned to become a painter, she soon realized that wasn’t her favorite part of the repair process. “I found that I was very good at teardowns and assessing damage. After working in the shop for a few years, the owner, Kevin, recognized my eye for appraising and encouraged me to get my license. He taught me everything I know! Since obtaining my auto damage appraiser’s license nearly three years ago, I handle most of the estimates and supplements that pass through the shop, plus I also run the office – taking care of customers’ rentals and appointments, parts ordering, scheduling, most of the accounting and (perhaps most importantly) caring for our shop dog, Bondo.” Rhodes’ journey hasn’t always been easy. “Being a woman in this industry can be very difficult. Often, people take one look at me and assume I’m only capable of answering a phone. They’re always shocked to discover that I’m at home on the shop floor and know what I’m doing. Customers are usually surprised when I tell them I’ll be writing their estimate, but they quickly realize I am more than capable.
Most appraisers do not treat me equally, though I haven’t figured out if they don’t trust my opinion because I’m young, if it’s due to my small stature or if it’s simply because I’m a woman. It’s frustrating, especially when your boss can write the exact same estimate without being questioned.” Fortunately, Rhodes’ boss and co-workers always make her feel welcome. “When I graduated, I interviewed at more than a dozen shops, but all the men I spoke to were so dumbfounded about me being a girl that they couldn’t take the interview seriously. When I applied for a job at Nesco, Kevin was the only interviewer who did not comment on my gender; everyone else made a big deal about it, but he just saw me as an applicant for an open position. He hired me the next week and has never seen me as anything other than a valuable employee. I could not work in a place that saw me as anything else. My co-workers have always been great also; they have made me into the tech I am today.” Brenda Lacaire entered the collision industry in 1996 as an office assistant, working her way up to become the office manager. After working in the industry for 20 years, she and her husband purchased Steve’s Collision Center in Sturbridge in continued on pg. 28 New England Automotive Report
March 2022 27
[COVER] STORY continued from pg. 27 2016, which she runs. “For many years, working in the shop was just a job,” Lacaire shared. “But the longer I worked in this industry, the more I learned until helping someone who has been in an accident became second nature. It feels good to help someone through an accident with what’s usually their second largest purchase.” Transitioning from co-worker to shop owner often presents challenges for collision professionals, but Lacaire didn’t share that experience. “All my employees are male, and they’re all great. I had no problem with the people who were my co-workers and then became my employees. In fact, I’ve worked with all men in this field for the past 26 years and have never had any problem.” On the other hand, industry events can be a lonely place for a female collision professional. “Being a woman in the industry is occasionally frustrating,” Lacaire admitted. “Many years ago, I attended a local trade show by myself and was pretty much ignored by the vendors. When a gentleman standing next to me was helped immediately and shown what they were promoting, I left and never had an interest in attending another. At association meetings, I used to feel like an outcast – since it was like a good ole’ boys club, I pretty much sat alone, so I only attended meetings when I felt like I was going to learn something.” Her comfort level at association events increased significantly last year after joining AASP/MA’s Board of Directors. “I built relationships with other shop owners and got to know them virtually through committee meetings and general Board meetings. Now, I feel a little more comfortable when attending live meetings as well.” While male collision professionals don’t seem to have any concerns with Lacaire’s abilities, her gender has created barriers with some customers. “I lost some customers when I bought the shop from the former owner because I’m a woman, but if that’s their thinking, it’s no great loss! It’s very common for a male customer to ask to talk to ‘one of the guys’ about looking at their car, and when I explain that I can help them, they don’t trust my ability – they merely want one of the guys. Sometimes, I’ll look at the vehicle and provide the information before having a male employee tell them the same thing, just to prove a point. Other times, I just let a technician come out with me to look at the work from the start. “When a woman or younger guy comes to my shop for an estimate, they are usually more open-minded about me being the one to assess the damage. Appraisers in the past have occasionally acted a little ‘off’ when dealing with me, but now, there seems to be a younger generation of appraisers who don’t have any issues with me being a woman.” Massachusetts-licensed auto damage appraiser and insurance agent Nadine Nesbitt’s interest in collision repair began several decades ago, taking her to many different roles within the industry. “In the late 1980s, I had a habit of wrecking cars, so I became very interested in the repair process. I married a collision repair technician, and when we opened a shop together, I loved helping people through the claims process. I felt that my knowledge and connections were a great resource for our clients.” Eventually, Nesbitt obtained a license to sell insurance where 28 March 2022
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she focuses on “developing personal relationships with my clients. I love helping people through their claims process. I also founded WAITT! (We’re All In This Together), an AASP/MA Bronze level Vendor Affinity Program member that supports businesses that need a system to effectively connect to their communities to attract new clients, retain existing ones and also attract new employees.” Nesbitt relies on her shop and insurance experience in her third role, assisting AASP/MA’s Executive Director. “I’m able to use all my knowledge in negotiations today. I love the industry, and I have an advantage: As far as I know, I’m still the only woman licensed as an auto damage appraiser and insurance agent in Massachusetts.” In fact, Nesbitt believes that being a woman in collision has benefitted her career in many ways, especially when it comes to communication. “Our industry’s biggest problems stem from a lack of communication – namely, how to educate consumers, carriers and shops – and to fix this, we have to work on relationships. As a woman, it’s more acceptable for me to focus on developing friendships and trust, to work well with others and to negotiate fairly and honestly. “Back in the 1990s when I co-owned a shop and my main role was increasing our revenue, I was delighted at networking events to find that I was almost always the only female in the auto trade industry. It was a novelty in the 1980s and 1990s to find a woman at those events, so it became easy to grow our work stream aggressively.” AASP/MA Past President Molly Brodeur began working with her father Al at Al Brodeur’s Auto Body (Marlborough) in 2006 when he “approached me to gauge my interest in the business as he began preparing his exit strategy. I began working in the office, and over time, I took control of the shop’s operations before ultimately becoming co-owner and president.” Since she began working in the shop, Brodeur has “not found gender to be an issue at all. I’ve worked in many industries throughout my work life, and the collision industry has been virtually barrier-free with respect to my gender, in my experience.” With the proper education and training, women excel in the shop just as easily as men can, but there are differences between the genders. “I find that women add a little more finesse and can be more detail-oriented in a job,” Rhodes suggested. “They tend to care more. There are a lot of things women can do that men can’t do as well, just as there are many things men do better than women. It’s important to have a little variety and work together to make the job come out as best as possible. Shops that want to attract more female employees merely need to make them feel welcome. We don’t want to be treated differently because of our gender. It’s 2022, and we should be past that.” “The industry traditionally attracted the good old boy network, which is typically closed to anything other than what the mirror reflected at that time,” Nesbitt recalled. “Things have certainly begun to change over the decades with women owning repair shops and working as vendors, technicians and so forth. These days, shops often complain that they can’t get enough help to get the work done in a timely manner, but diversity adds a huge continued on pg. 30
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[COVER] STORY continued from pg. 28 opportunity to connect others, fill vacant positions and grow your client base. Anyone can do a great job – the key now is finding the right people (not the ‘right man’) for the job. We just need to be open to what that looks like.” Brodeur echoed that sentiment: “Across all industry segments, it’s more about having the right mix of skills, character traits and passion to be successful. As work/ life balance has evolved over the years, I feel all employees are interested in working for an employer who values that balance.” “It’s hard to attract anyone to want to get into this business,” Lacaire lamented. “It’s difficult just to run a collision repair business with the Labor Rates we get in Massachusetts, never mind attracting new talent – male or female – when we can’t offer the pay and benefits that other industries can afford.” With all the challenges thrown at collision repairers, being confronted with additional hurdles related to gender can be daunting. What advice would these ladies offer other women interested in pursuing a career in the collision industry? “Honestly, I’d tell them to run!” Lacaire expressed. “Unless there is change in Massachusetts, there aren’t a lot of good reasons to join the industry. Why would you choose to join an industry that’s financially struggling to survive? We make a living – barely – but I definitely didn’t get into it for the money! It’s only worth it if you can find your success in being able to help people get through a tough time.” “There’s always a seat at the table, and I encourage everyone
to find their passion and pursue it,” Nesbitt encouraged. “We are finally making progress in 2022, and we now have ways to work together to improve our industry as a whole. The current challenge is getting more shops to join our association so we can help them make measurable improvements for themselves as well as their communities. Insurance companies have been sharing information for years to their mutual benefit, but shop owners are often too busy to step back and look at the myriad of new opportunities to get what they need to stay in business. Let’s work smarter, not harder!” “I would encourage any woman who is interested in this industry to find the segment they’re passionate about and pursue that career path,” Brodeur contributed. “The opportunities in this industry are limitless!” “Don’t let the fact that you may be the only female in the business deter you from following your passion,” Rhodes advised. “In my experience, the guys take a little time, but they will warm up to you. They’re actually more intimidated by you being there than you are of them!” …as they should be! The women in the collision industry are brave and formidable, and we stand in awe of them. Happy Women’s History Month.
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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
Are Insurer Direct Referrals Illegal?
As an attorney who has represented collision repair shops in Massachusetts for many years, one of the issues that has disturbed me the most has been the approval by the Division of Insurance (DOI) and the Auto Damage Appraiser Licensing Board (ADALB) of insurer programs that allow the insurers to essentially steer claimants to individual repair shops. The issue recently came to my attention again, when I received a report of an insurer calling their insured who had chosen an independent repair shop and whose car was already on the floor of that shop, being prepped for repair. The call’s purpose was to convince their insured to take their car out of that shop and to bring it to one of the insurer’s preferred “program” shops. The insurance representative told their insured that the insurer would guarantee the work of its preferred shop and that, while their preferred shop would not charge the claimant anything more than their deductible, the independent shop charged a higher hourly Labor Rate than their preferred shop, and the claimant could have to pay part of the cost of repair out of their own pocket. This and similar incidents disturb me for several reasons: How does the insurer know what the independent shop will actually end up charging for repairs? How does the insurer know what their preferred shop will charge, since the preferred shop has not even seen the damaged car? What does the insurer know about the quality of repairs that will be made by the independent shop or at their preferred shop? And, from a legal perspective, how can the insurer attempt to convince their insured to take their car to an individually named preferred shop when the law clearly appears to prohibit this conduct? It is just my opinion that direct referrals and the conduct engaged in by this insurer is illegal. And I am not the Commissioner of Insurance, a member of the ADALB or a judge sitting on a Massachusetts appellate court – or a judge of any kind. Yet, it is an opinion that I strongly hold, based on many years of dealing with laws affecting insurance-covered auto damage repairs in Massachusetts. And it is an opinion that the DOI, the ADALB and the Massachusetts Supreme Judicial Court apparently held until 2011, when the DOI first approved insurer Direct Payment Plans which, by their terms, openly allowed insurers to directly refer their claimants to individual preferred shops. The Evolution of the Law The following analysis contains some technical legal language. 34 March 2022
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But take your time to read it carefully, and you will understand exactly what the law says and why I hold such a strong opinion. In 1981, the statute establishing the ADALB was enacted. One of the provisions of that statute says: “No appraiser or insurer shall request or suggest that repairs be made in a specified repair shop.” That provision has never been repealed or amended, and it is still statutory law in Massachusetts. The same statute established the ADALB and gave that Board the authority to issue regulations relating to the statute. In 1982, the ADALB did develop and adopt a regulation which, although it has been amended over the years, is still in existence. The original regulation interpreted the anti-referral provision of the governing statute and made it stronger, stating: "No staff or independent appraiser, insurer, representative of insurer or employer of an independent appraiser shall refer the claimant to or away from any specific repair shop or require that repairs be made by a specific repair shop or individual." Unhappy with these provisions of the statute and regulation, many insurers attempted to challenge it. They wanted to be able to disclose the names of preferred repair shops to their insureds. Allstate Insurance Company brought a lawsuit in an attempt to invalidate the anti-referral rule. That case went all the way to the Massachusetts Supreme Judicial Court (SJC), which issued an opinion in 1987. The SJC did limit the scope of the statute and regulation to some degree, ruling that: "An insurer, on the request of a customer, may provide that customer with a LIST of repair shops or individuals which it believes can do quality repair work as long as the communication makes it clear that the choice of the repair shop or individual belongs to the customer." Notably, the Court did NOT invalidate either the statute or the regulation. Further, the ruling was limited to situations where the customer requests the names of repair shops and then requires the insurer to give a list of shops, not just the name of one shop. The ruling affirmed that the statute and regulation legitimately prohibit insurers from “referring, sending or directing” their claimants to individual repair shops. In 1988, the so-called Direct Payment statute was enacted, which significantly changed the way that first-party auto damage claims are settled in Massachusetts. With regard to repair shop referrals, the statute allowed the Commissioner of Insurance to continued on pg. 36
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[LEGAL] PERSPECTIVE continued from pg. 34 require insurers to give all claimants “a list of at least five registered repair shops, geographically convenient for the insured, from which the insured may at his or her option select a shop, which will without undue delay complete the repair work for the amount of the payment to the insured, plus any applicable deductible, that the insurer will guarantee the quality of the materials and workmanship used in making repairs if the repairs are performed at one of the repair shops so listed.” The statute also requires, however, “that no insurer or appraiser shall require that repairs to any motor vehicle be made at any specific repair shop, or list of repair shops.” Shortly after adoption of the statute, the DOI issued regulations in line with it. Those regulations required that claimants “receive a list of all registered repair shops,” which also includes a list of at least five insurer referral repair shops. The communication with the claimant must let the claimant know that “he or she may choose to have repairs made at any repair shop, whether or not the shop is an insurer's referral shop.” Soon thereafter, the ADALB amended their regulation. With regard to the provision in that regulation prohibiting referrals, the ADALB added that the section “shall not apply to any approved direct payment plan pursuant to [the DOI Direct Payment regulations]. This exception, however, was always interpreted to apply only to the degree that the Direct Payment regulations allowed referrals – and those regulations do NOT allow for referral to an individual repair shop, nor do they override the original antireferral provisions of the ADALB statute or the existing anti-referral provision of the ADALB regulation. In 1994, the DOI issued a bulletin that specified in detail how insurers are required to communicate their list of referral repair shops to claimants. That bulletin affirmed that insurers needed to give claimants a list of all registered shops in the county in which the claimant lives, on which the insurer could indicate which were its referral repair shops – and there still has to be at least five of them. The bulletin allows an insurer to tell a claimant that they may choose one of the listed referral shops but also that: “You may choose any other registered auto repair shop from the enclosed list.”
NOTE WELL: The original ADALB statute and the ADALB regulation prohibit insurers from directing an insured to any one repair shop, and the Direct Payment statute, the Direct Payment regulations and the 1994 bulletin do NOT change that prohibition. The 2011 Changes In 2011, the DOI approved new Direct Payment plans submitted by certain national insurers, several of which had not until then written auto insurance in Massachusetts. These plans blatantly state that the insurers will direct claimants to individual preferred repair shops. Despite such provisions in these plans, the DOI approved them, allowing insurers to direct claimants to individual preferred repair shops. Some things should be noted about approval of these plans: (1) The particular Commissioner who was serving at the time let it be known that he wanted to attract more national insurers to Massachusetts, even though those insurers depended on direct referrals to their preferred shops. (2) The submitted Direct Payment plans were approved without public hearing, despite the Direct Payment regulations requiring that a hearing be held prior to approval – unless a submitted plan is substantially the same as other plans that already had been approved. NONE of the new plans were substantially the same as other plans that previously had been approved. (3) Records of the DOI show that DOI staff initially questioned the legality of the direct referral provisions of these plans, but that questioning terminated at some point – for no apparent reason – and the plans were approved with those provisions. (4) The ADALB initially questioned if insurers and appraisers working under the terms of the new plans would be in violation of the ADALB statute and regulation, but – apparently under pressure from the DOI – the Board dropped its questioning of those issues. For the past decade, the Direct Payment plans approved in 2011 have continued, and many other Massachusetts insurers have developed their own “program” plans with individual preferred repair shops and have followed the lead of the national insurers by trying to direct their claimants to individual program shops.
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New England Automotive Report
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Conclusion Please note again: The anti-referral provisions of the ADALB statute and of the ADALB regulation are still the law in Massachusetts, and the validity of those laws were affirmed by the highest court in this state. Neither the Direct Payment statute nor the Direct Payment regulations change the antireferral provisions of the ADALB statute and regulations. The law still prohibits an insurer from directing a claimant to an individual repair shop. Yet, somehow, many auto insurers writing policies in Massachusetts have had Direct Payment plans approved that allow them to refer claimants to individual repair shops, and those insurers do try to direct their claimants to individual shops. As stated near the beginning of this article, it is my opinion that the direct individual referrals made by these insurers are illegal under Massachusetts law. But, again, that is just my opinion. What do you think? 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) 472-3424 or at jcastleman@prclawoffice.com.
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 Ge uine 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
Sarat Ford Lincoln Mercury
Quirk Auto Dealers
6 Uxbridge Road
245 Springfield Street
115 E. Howard St.
Mendon, MA 01756
Agawam, MA 01001
Quincy, MA 02169
Toll Free Parts: 877-272-0332
413-786-0430
Toll Free: 877-707-8475
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Fax: 413-789-3715
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www.saratford.com
Balise Ford of Cape Cod 90 High School Rd. Ext. Hyannis, MA 02601 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
© 2019, Ford Motor Company
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EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 6 As an independent shop owner running a “retail” business, you have probably been asking yourself for quite some time what you can do to turn this situation around. Why can’t you calculate a rate and then adjust that rate as your cost of doing business increases? How can you possibly serve and retain your customers by doing safe and proper repairs on today’s vehicles based on Labor Rates from nearly 30 years ago? How do you deal with insurers telling your customers that you are asking for too much either in Labor Rate per hour or required procedures in an effort to steer them away? Is today the day you realize that you are worth what your posted door rate states? Is today the day you finally get sick of subsidizing the multibillion-dollar insurance industry? Is today the day you document EVERY attempt to negotiate a fair Labor Rate by addressing the issue on EVERY estimate you write from now on? Is today the day you decide to issue your final bill at your posted door rate and have the vehicle owner turn to the company they chose to insure and indemnify them for full reimbursement? As a shop owner who has made the business decision to be in a referral or program relationship with an insurer, is today the day that you come to the realization that you cannot serve two masters? Is today the day you realize that you are part of a minority of shop owners in programs? No insurer in the state has more than 30 percent of the registered shops in the state under any kind of contract! That means that less than 30 percent of the collision repairers are being used to set (Strike) the “prevailing” rate for the remaining 70 percent! Does that make any sense whatsoever? Is today the day that you sit down and take a long hard look at your business model and realize that it is unsustainable? Will today be the day that you realize the huge liability you took on when you signed the contract to repair the vehicle, not the way it should be, but repaired how and for the price the insurer dictates? (This very same contract in which you agreed to hold the insurer harmless for the “privilege” of working on their insured’s vehicles at a substandard Labor Rate. Also, the same contract that won’t let you charge the customer a fair and reasonable price for mechanical work the insurer will pay the dealership up the street to do.) Is this the day you realize you are being used as a tool to suppress the Labor Rate and hold down an entire industry? Believe me when I say I know these are tough questions and even tougher realizations to come to grips with. As with any problem, it must be identified before a solution can be developed. It is each shop owner’s independent business decision as to what course of action they choose to take to address the issues our industry is facing. There are those who have said, “Enough is enough” and have decided to break the cycle. The frustration at the stranglehold insurers have placed on our industry has never been more evident than at the first of two Labor Rate Study Commission 40 March 2022
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Is today the day you decide to issue your final bill at your posted door rate and have the vehicle owner turn to the company they chose to insure and indemnify them for full reimbursement? (LRSC) hearings which took place on January 25. I have never been prouder to be a part of this industry than at the end of that day’s hearing. Individuals from all segments of the collision repair industry – shop owners, managers, dealerships, trade associations and vocational schools – all expressed how dire the situation is and explained that since the last LRSC hearings in 2008, things have only gotten worse, making it clear insurers do not intend on making a substantive change in the labor reimbursement rate. Insurers are counting on our legislators to once again kick this issue down the road. It is up to each and everyone of us to not let that happen AGAIN! You must answer the call to action. We have already generated hundreds of emails and must continue to apply the pressure if we expect anything to change significantly. Is today the day you join the movement? Is today the day you become part of the “Alliance”? This industry only has a limited number of days in its future if significant change is not brought about. You can make that change happen. We have already garnered more support than we ever have before, but it’s a long way to the end. Is today the day you contact your legislator and urge them to support HB 1111 which is a long term solution to a three-decadesold problem? If today is indeed that day for you and you are not a member of AASP/MA, JOIN NOW! If you are a member, then keep up the pressure! Stay involved! Each of us has an important part to play in the success of getting our much-needed bills passed. MAKE TODAY THAT DAY! See the AASP/MA member application on page 7.
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.
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[LOCAL] NEWS continued from pg. 15 If there were fewer shops, the cost to run those businesses — heat, insurance, property taxes, everything else making Massachusetts the fifth highest in the country to run a business — would not change. We would still need to have a fair and equitable rate of reimbursement that would allow for being compensated enough to cover those costs and the increase associated with them. And the insurance industry is one of those costs that shops are absorbing all the time – their liability insurance, workers’ comp insurance, all for the same Labor Rate. “You’re going to kill this industry…You’re already killing this industry!” “We in the auto body industry are at a breaking point. Take some action, and do what is ethical,” Tom Ricci (Body & Paint Center of Hudson) urged legislators. “We need action NOW!” The LRSC is tasked with conducting a study according to the following: The study shall include, but not be limited to: (i) an analysis of auto body labor rates in the commonwealth, including a comparison of labor rates in surrounding states; (ii) an analysis of the impact of managed competition in the automobile insurance market on labor rates; (iii) an assessment of whether current labor rates are reasonable
and, if not, an evaluation of potential methods for calculating a reasonable labor rate; (iv) the number of auto body shops in the commonwealth each year from 2008 to the present, including the number of shops that have closed during that time period; and (v) an analysis of the impact of labor rates on the auto body labor workforce. Watch the recording of the first hearing at bit.ly/LRSC0122. A second hearing will be scheduled in the future with the LRSC required to file a report of its findings by July 1, 2022. The LRSC will also accept written testimony which can be submitted via email to danielle.littmann@mahouse.gov. Be sure to contact your legislators to explain how important this issue is to your business and express support for House Bill 1111. AASP/MA and New England Automotive Report will keep you informed regarding the scheduled hearing dates, and we encourage you to attend the next hearing or submit written testimony to make your voice heard and help emphasize the importance of this issue that impacts the viability of all collision repair facilities in the Commonwealth.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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ADVERTISERS’ INDEX Accudraft Paint Booths............................. OBC Albert Kemperle............................................42 Audi Group...................................................17 BMW Group...................................................8 Boch Chevrolet..............................................36 Boch Hyundai.................................................9 Colonial Auto Group.......................................2 Crown Collision Solutions.............................10 Empire Auto Parts.........................................46 Ford Group...................................................37 Genesis of Norwood......................................36 Grieco Toyota................................................23 Honda Group................................................32 Hyundai Group.............................................23 Ira Subaru......................................................12 Ira Toyota of Danvers....................................13 Kelly Automotive Group............................ IBC Kia Group.....................................................23
EMPIRE AUTO PARTS
Linder’s, Inc. ...................................................9
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Mazda Group................................................44
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Lombard Equipment.....................................35 Long Automotive Group.................................4
McGovern Chrysler Jeep Dodge Ram �����������30 Mopar Group................................................41 Nissan Group................................................29 NORTHEAST® 2022....................................15
Lamps
Bumper Covers
Radiators
Hoods & Fenders
Pro Spot / Collision Tools Inc........................19 Quirk Wholesale Parts...................................45 Reliable Automotive Equipment...............24-25 Sarat Ford Lincoln.........................................15 Sherwin-Williams/Valspar................................3
Door Mirrors
Steel Bumpers
Cooling Fans
Grilles & Bezels
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Spanesi..........................................................11 Subaru Group................................................33 Toyota Group................................................38 USI North America.......................................39 Volvo Group..................................................37
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VW Group....................................................18 Wagner Motors..............................................43 Wheel Collision Center.................................46
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