New England Automotive Report June 2024

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Serving the New England Collision and Mechanical Repair Industry "Your Massachusetts Auto Body Association" June 2024 U.S.A. $5.95 NOTHING LASTS FOREVER: What to Know Before It’s Time to Sell Your Shop www.grecopublishing.com AI Trends, Data Collection & More DISCUSSED AT APRIL CIC Calibrate Correctly or DON’T EVEN BOTHER!

COLONIAL NISSAN

104 Mystic Avenue

Medford, MA. 02155

Phone Number: 781-395-3025

FAX Number: 781-475-5063

CITY SIDE SUBARU

790 Pleasant Street

Belmont, MA 02478

Phone Number: 617-826-5013

FAX Number: 617-489-0733

NORTH END SUBARU

757 Chase Road (Rte 13) Lunenburg, MA 01462

Phone Number: 877-289-0053

FAX Number: 978-582-9843

COLONIAL CHRYSLER JEEP DODGE-RAM

24 Coolidge Street (Rte. 62) Hudson, MA 01749

Phone Number: 978-568-8000

FAX Number: 978-562-1213

COLONIAL HONDA OF DARTMOUTH

225 State Road (Rte. 6)

Dartmouth, MA. 02747

Parts Direct: 508-997-2919

FAX Number: 508-730-6578

COLONIAL FORD OF PLYMOUTH 11 Pilgrim Hill Road Plymouth, MA 02360

Phone Number: 800-233-8109

FAX Number: 508-830-1658

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

COLONIAL VOLKSWAGEN

89 Turnpike Road (Rte. 9) Westborough, MA 01581

Phone Number: 888-322-6570

FAX Number: 508-616-0445

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

NORTH END MAZDA

757 Chase Road

Lunenburg, MA. 01462

Phone Number: 800-322-1241

FAX Number: 978-582-9841

COLONIAL SOUTH CHEVROLET 361 State Road (Rte. 6) Dartmouth, MA 02747

Phone Number: 508-996-6266

FAX Number: 508-979-1219

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

We provide the highest level of customer-friendly ser vice through our knowledgeable and helpful personnel! Place any order online with our par ts order for m at www.buycolonial.com • We carry over $2,000,000 in collision
parts • Daily UPS shipping available • Servicing Massachusetts, Rhode Island and New Hampshire • We build our reputation on providing you the best SERVICE!!
& mechanical
WE WANT TO EARN YOUR BUSINESS!

You’ve got the right tools, staff, technology and procedures to give your customers the best repair possible. The missing piece of the puzzle? Genuine Volkswagen Collision Parts. Contact an authorized dealer today and find your perfect fit.

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

Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475

Volkswagen of Hartford 133 Leibert Road Hartford, CT 06120

Direct Parts: 860-543-6012 fax: 860-728-4408 email: ebautista@vwofhartford.com

Balise Volkswagen 525 Quaker Ln. West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands!

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

“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2024 Volkswagen of America, Inc.

Wholesale Parts

New England Automotive Report June 2024 3
4 June 2024 New England Automotive Report Statutory Benefit Programs Are What We Do. Mktg #24-25 *The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier, and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark. Policies for Private Plans of Statutory Benefit Programs are underwritten by ShelterPoint Life Insurance Company (principal office in Garden City, NY) in NY, NJ, CT, MA, CO; and underwritten by ShelterPoint Insurance Company (a FL-domiciled carrier) in OR. www.shelterpoint.com sales@shelterpoint.com | 800.365.4999 (516.829.8100) Learn more about Paid Leave Programs in our Statutory Benefits Center. shelterpoint.com/stat-ben-center
New England Automotive Report June 2024 5 PRESIDENT’S MESSAGE 6 | Calibrate Correctly or Don’t Even Bother! by Kevin Gallerani EXECUTIVE DIRECTOR’S MESSAGE 8 | We Can Get it Done! by Evangelos “Lucky” Papageorg LOCAL NEWS 16 | AASP/MA General Meeting Information NATIONAL NEWS 18 | AI Trends, Data Collection & More Discussed at April CIC by Alana Quartuccio VENDOR AFFINITY PROGRAM SPOTLIGHT 20 | BASF Automotive Refinish by Alana Quartuccio GUEST FEATURE 24 | Why the Collision Industry Is Losing the Employee-Retention War by Joel Gausten CONTENTS June 2024 • Volume 22, No. 6 ALSO THIS ISSUE 7 | AASP/MA MEMBER APPLICATION 21 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS DEPARTMENTS LEGAL PERSPECTIVE 32 | From Hoops to Harmony: Enhancing the Shop-Insurer Relationship in Massachusetts - Part One by Sean Preston, Coverall Law 28 | Nothing Lasts Forever: What to Know Before It’s Time to Sell Your Shop by Chasidy Rae Sisk & Alana Quartuccio COVER STORY FOR SALE

KEVIN GALLERANI

Calibrate Correctly or Don’t Even Bother!

Recently, I had an interesting interaction with a customer, who we’ll call Ms. H. She drives a 2022 Hyundai SUV, which she brought into the shop after – surprise! – she was in an accident. Her vehicle is fairly new, so it’s equipped with all the bells and whistles that newer vehicles seem to have, including a front crash avoidance system. Yet, she managed to rear-end another vehicle.

Ms. H admits that she’s had a few close calls in the year she’s been driving the SUV, but relying on the car’s ADAS has proven effective…until now. Surprisingly, this situation has not made her question the effectiveness of the system. In fact, when she brought the car in, she told us that she had her windshield replaced one week before the collision; she indicated that her camera and possibly her radar were recalibrated, and she suggested that perhaps the big glass company that performed the reinstall did something incorrectly.

As of the moment, I cannot confirm that’s true (and I may never be able to verify whether that company calibrated the systems correctly or not since the vehicle was involved in a crash), but I’m well aware of quite a few companies that perform windshield repairs and replacements offering calibrations in a parking lot. They make it seem like they’re doing the right thing because they’re performing the calibration, but they aren’t following procedures. I think it’s just a money grab.

STAFF

PUBLISHER

Thomas Greco | thomas@grecopublishing.com

VICE PRESIDENT/SALES DIRECTOR

Alicia Figurelli | alicia@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Quartuccio | 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 @grecopublishing

AASP/MA

Evangelos “Lucky”

Back in 2019, we built a clean room for calibrations. The floor was laser-measured and re-poured. We painted the walls a special matte gray and installed special LED lights with controls. We removed the windows. We invested in the targets and equipment to perform calibrations correctly. We built our clean room the right way, and we’ve been calibrating vehicles the right way for several years now. But insurance companies want to push back and refuse to pay for calibrations to be done properly in a clean room.

Instead, they want to direct us to a mobile calibration company that will perform the “same job” in a parking lot for half the price. You cannot perform a static calibration outside where you’re unable to control the environment! It’s just not possible. There are even dealerships that have purchased the targets but have not constructed a clean room where they can perform calibrations correctly. Trying to calibrate a system next to lifts and other equipment does not meet the standards that OEMs have set; these systems are not being calibrated accurately, and they may not perform as intended. And when a customer like Ms. H is counting on her system to prevent her from crashing into a guardrail – or the family of four in the next lane – lives are at stake! And so is your livelihood. Let me make something very clear: If you’re incorrectly

continued on pg. 30

Jeff

Affiliate

Angelo Memmelo

Jayce Mitchell

Gregg Tanguay

Scott Varney

P.

6 June 2024 New England Automotive Report AASP/MA EXECUTIVE COMMITTEE AASP/MA STATEWIDE DIRECTORS AASP/MA DIRECTORS WWW.AASPMA.ORG 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 © 2024 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com AASP/MA ADMINISTRATIVE OFFICE President Kevin Gallerani Vice President Matthew Ciaschini Treasurer Dana Snowdale Secretary Don Dowling Legislative Director At-Large Brian Bernard Collision Director At-Large Dan Wenzel ZONE 1 Mike Penacho John Studer Dan Wenzel
Director Al Correia Brent Dabrosca C.J. Ellis
Kelsey Russ Oagles
Begin ZONE 2 Ray Belsito Brenda Lacaire ZONE 3 Gary Cloutier Andrew Potter Brian Stone Affiliate Directors Mike Nawrocki McColl Rhodes ZONE 4
Affiliate
Jimmy
Doug
Dean Luther
White
Directors
J.R. Force
Executive Director
Papageorg
Administrative Assistant Alana Quartuccio
AASP/MA
O. Box 850210
Braintree, MA 02185 617-574-0741
PRESIDENT’S MESSAGE

Membership Application 2024-2025

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 # __________________

Company’s Official Name:

Business Physical Address:

Business Mailing Address (If Different):

Total number of Staff (Techs, office, Mgrs)________

Telephone Number: ( )- -___________ Fax: ( )- -

DUES STRUCTURE. Collision Shop Annual Dues: $650 / 12 Months*

PRIMARY BUSINESS CONTACT

Name: _________________________________________________

Email: _____________________________________________

As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.

Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � FMLA savings program � Grant writing/training � Google presence optimization � All benefits

PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION

Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) OR CC #: ______________ EXP: ________/___________ CID: _________________

Billing Address: ____________________________________________________________________________________________________________

Name On Card: _____________________________________________ Signature: _____

Check here � to opt out of auto renewal using this credit card information for future renewal

Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction

I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2024-2025 as provided for in this contract.

*Membership Dues are for a twelve-month period commencing on your anniversary month of membership.

12/23

New England Automotive Report June 2024 7 AASP-MA
REV
RECOMMENDED BY:__________________ FROM BUSINESS NAME: ___________________ REV 12/23

We Can Get it Done!

It is that time of the year again, when the really heavy lifting needs to be accomplished regarding our legislative initiatives. At the time of this writing, both our bills have received “OUGHT TO PASS” recommendations and are now being considered in the Ways and Means Committees of both the House and the Senate. H4412 “An Act to establish minimum reimbursement rate to insurance claimants” is in the House, and S2568 “An Act relative to the licensure of appraisers” is in the Senate. In our democratic society, the relationship between constituents (you and your customers) and elected representatives is fundamental to the functioning of our government. Nowhere is this relationship more crucial than at the local level, where state legislators directly impact the lives of their constituents through policymaking and advocacy. In the state of Massachusetts, fostering strong relationships with local legislators is not only essential for effective governance but also for advocating for the interests of various industries, especially the collision repair industry. The importance of developing relationships with local Massachusetts state legislators cannot be stressed enough.

State legislators play a pivotal role in shaping public policy and legislation that directly impacts the lives of Massachusetts residents. From education and healthcare to transportation and environmental regulations, state lawmakers have the authority to introduce, amend and vote on legislation that affects the daily lives of constituents. By establishing meaningful relationships with local legislators, we can effectively communicate our concerns, advocate for policy changes and seek support for legislative initiatives that benefit the communities in the legislator’s district. For industries such as collision repair, engaging with local legislators is essential for advocating

for industry-specific interests and addressing regulatory challenges. By building relationships with state lawmakers, collision repairers can ensure that their concerns are heard and understood within the legislative process. Whether it's advocating for fair labor practices, addressing environmental regulations or supporting initiatives to promote workforce development, a strong relationship with local legislators can facilitate meaningful dialogue and collaboration on issues of mutual concern and bring meaningful change to fruition.

Building relationships with local Massachusetts state legislators is not just about political influence; it's about fostering trust, collaboration and mutual understanding. By establishing open lines of communication and engaging in constructive dialogue with legislators, our industry can continue to build rapport, gain insight into legislative priorities and effectively advocate for policies that address our needs and the needs of their legislative communities and industries. Whether through meetings, town halls or grassroots organizing efforts, developing relationships with local legislators is essential for effective advocacy and positive policy outcomes.

It's imperative that all collision repairers and their employees, as well as their families, actively participate in the political process and heed the call to action. By staying informed and engaging with legislators, constituents can make a meaningful impact on legislative outcomes and shape the future of their communities. Whether through financial contributions, grassroots advocacy or voter engagement efforts, every individual has a role to play in advancing the interests of OUR industry and promoting positive changes.

The importance of developing relationships with local Massachusetts state legislators cannot be overstated. By engaging with legislators and advocating for industry interests, constituents in the automotive service sector can make their voices heard, shape public policy and influence legislative outcomes. As active participants in the democratic process, constituents (shop owners, employees/family members and customers) have the power to build relationships, drive change and strengthen communities through effective advocacy and collaboration with their elected representatives.

We are closer than we have ever been. We have huge support in both the House and Senate, but there are still hurdles to overcome. TOGETHER, WE CAN GET IT DONE!

8 June 2024 New England Automotive Report
EVANGELOS “LUCKY” PAPAGEORG EXECUTIVE DIRECTOR’S MESSAGE GENUINE GENESIS PARTS. Contact us for all your Genesis parts needs! GENESIS OF WEST WARWICK 405 Quaker Lane West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org MASSACHUSETTS
New England Automotive Report June 2024 9 Maxisys COLLISION SIMPLIFIED A WORKFLOW-DRIVEN SOLUTION FOR A COMPLICATED PROCESS MAXISYS ULTRAADAS ADAS BAY MAX LIFT ADAS CALIBRATION. SAFER ALIGNMENTS. ONE MAXIMIZED BAY. MAXISYS IA900AST FOUR-WHEEL ALIGNMENT & ADAS CALIBRATION SYSTEM AUTEL.COM 1.855.288.3587 FOLLOW US @AUTELTOOLS COLLISION CENTERS - CONTACT AATI TODAY FOR A FREE ADAS CONSULTATION WE PROVIDE REAL BUSINESS AND TECHNICIAN TRAINING AT OUR WORKING ADAS CALIBRATION FACILITY APPLIEDAUTOMOTIVETECHNOLOGY.COM | GARY@APPLIEDAUTOMOTIVETECHNOLOGY.COM | 978.420.2138 KEEP ADAS CALIBRATIONS IN-HOUSE SUBLET TO YOURSELF
10 June 2024 New England Automotive Report

Genuine Replacement Parts For the Road Ahead.

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

For Genuine Subaru Body Parts, contact the following Authorized Subaru Dealers:

Long Subaru

7 Sutton Rd.

Webster, MA 01570

800-982-2298

Fax: 508-879-1212

tschube@longauto.com

Quirk Auto Dealers

115 E. Howard St.

Quincy, MA 02169

Toll Free: 877-707-8475

Balise Subaru 561 Quaker Ln.

Warwick, RI 02893

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Patrick Subaru

247 Boston Turnpike

Shrewsbury, MA 01545

508-756-8364

Fax: 508-752-3691

www.patricksubaru.com

jlavalley@patrickmotors.com

New England Automotive Report June 2024 11

An Investment in Success: Wieländer+Schill Welding Equipment Provides Precision, Peace of Mind

What makes an elite collision repair facility? Expert technicians, impeccable attention to detail, unwavering adherence to OEM repair procedures and top-notch customer service. Just as important is the facility’s investment in cutting-edge, quality equipment.

Wieländer+Schill’s full range of welders available through Reliable Automotive Equipment (RAE) helps leverage a shop’s investment into efficient, accurate repairs, elevating the overall customer experience while ensuring the vehicle is restored as close to preaccident condition as possible.

W+S welders help repairers performing a wide variety of welding repairs with simple, self-explanatory, intuitive operation and the highest safety standards. The InvertaPuls IP7-2 offers 2-button handling, dual 3G torches, ergonomic torch removal and narrow housing construction for ease of use in any size shop performing steel and aluminum welding, while the InvertaPuls IP6-2 uses Automatic Cold Transfer technology for a user-friendly MIG brazing experience. Just select your material thickness!

The InvertaPuls IP4-3 is your go-to for steel, brazing and aluminum welding with automatic torch recognition, parameter retention and a 4-roller wire feed for seamless results. With 90 memory spots and 240A current, pulse and double-pulse welding procedures can be performed effortlessly. And shops looking

for inverter technology need look no further than the MIG/ MAG IM240-I, a powerhouse featuring a 4-roller drive with trim adjustment and D300 wire spool compatibility for ensured precision. Dynamic pulse adjustment guarantees impeccable results on thin sheet metal as thin as 0.6mm.

For more information on the full line of Wieländer+Schill welders and all available equipment, service, training and support through Reliable Automotive Equipment, visit raeservice.com.

12 June 2024 New England Automotive Report
[INDUSTRY] UPDATE
Wielander & Schill MIG welders ensure quality welds, every time.
New England Automotive Report June 2024 13

$19,900

GENUINE NISSAN PARTS MAKE ALL THE DIFFERENCE.

Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts.

Contact these Nissan dealers for all your parts needs:

Mastria Nissan

1305 New State Highway

Raynham, MA 02767

Direct Toll Free: 800-248-2458

Direct Fax: 508-802-6118

E-mail: parts@mastrianissan.com Web: www.mastria.com

Kelly Nissan of Lynnfield

275 Broadway

Lynnfield, MA 01940

Toll Free: 800-698-9280

Fax: 781-598-8026

E-mail: dlacoste@kellyauto.com

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

Balise Nissan of Warwick 1350 Post Rd. Warwick, RI 02888

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

New England Automotive Report

MASSACHUSET TS

AASP/MA General Membership Meeting:

Saturday, June 22

Assabet Valley Regional

Technical High School (Marlborough)

Registration starts at 7:15am; Meeting starts promptly at 8:45am

Join Us For an

All Day Workshop with Dave Luehr (Elite Body Shop Solutions)

A combination of operational training, time management and mindset development, all wrapped into a day-long powerful package!

Attendees will walk away from this program excited about the future, instead of afraid of it, and they will be better equipped to take ownership over their businesses, instead of feeling trapped by their businesses.

COST:

(Includes light continental breakfast, lunch and snacks)

$175 for members; $250 for non-members ($75 for additional attendees)

Don’t miss this great opportunity from AASP/MA to see Dave at a HUGE savings! His day-long seminars normally cost $500!!

Paid attendees will be eligible to receive PowerPoint presentation on thumb drive and video of meeting! *ONE PER SHOP*

All Alliance members in good standing who register for this event will be entered to win a free 2025 AASP/MA membership! (A $650 value, including all the great benefits that come with being an Alliance member)

16 June 2024 New England Automotive Report
"GETTING MORE IN
'24"
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
Dave Luehr
SCAN TO SIGN UP!

415 Taunton Ave. | East Providence, RI 02914

Direct: 401-438-2206 | Fax: 401-431-0673

7:30am-7pm | FRI: 7:30am-6pm | SAT: 7:30am-5pm

381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062

Parts Line: 781-762-9210

Toll Free: 800-559-9210 bchwholesale@boch.com

New England Automotive Report June 2024 17 Your One Stop Shop AUTOMOTIVE SOLUTIONS PROVIDER! • Programming • Diagnostic Scanning • Alignments • A/C Service • Consulting and Training Services • And more! 508-443-2134 office@crowncollisionsolutions.com crowncollisionsolutions.com Vehicle Pick Up and Delivery Options When Available - Call To Confirm We’ll come to you! Open to Traveling TIMELY TURNAROUND - usually within 24 hours! ADAS CALIBRATION SERVICES SOUTH SHORE / SOUTH COAST SHOPS: Contact Us Today to Get Started! Boch Chevrolet
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AI Trends, Data Collection & More Discussed at April CIC

The spring Collision Industry Conference (CIC) left no stone unturned in tackling just about every element of the changes and challenges this industry is facing – and will face for years to come. Technologies like AI are gaining a stronger voice, while data sharing concerns increase, and paint processes and other repair procedures need better solutions toward efficiency. As Interim Chairman Darrell Amberson put it, industry professionals traveled to Seattle, WA for “the greater good of the industry.”

Before the back-to-back presentations got underway, “the enthusiastic, driven and energetic” Dan Risley (CCC Intelligent Solutions) was introduced as the new Chair for 2024-2025. Risley’s term will begin with the July meeting in Denver, CO.

Piggybacking on previous discussions concerning artificial intelligence (AI), Gabriel Morley (DEKRA) reported that the Future Disruptions Committee has been researching AI trends, and instead of continuing the conversation about what AI could do in the future, they decided to focus on what AI can do for the industry now

“I know there are a lot of folks who think that AI is going to take jobs away, but the best thing I can tell you is that isn't going to be true, at least for a while,” shared James Spears (Tractable). “If a company knows how to leverage AI, it'll be that company that knows how to leverage the tools and do better,” he commented,

indicating that AI could make work life easier by taking tasks away from employees but not actually eliminating their jobs.

“I have a lot of technical guys on my team who may not do a lot of business writing,” Spears explained. “There’s a tool called Grammarly, which we load up for them, so now when they have to write an email to a client or back to a partner, they have tools to help them tighten up their business writing. It will help you write out your email, to make it more concise, persuasive or direct. This helps a lot of people who have not traditionally had to do this writing in their past to present themselves more professionally.”

Ryan Taylor (Bodyshop Booster)

“However, that doesn’t necessarily make the process of restoring the finish any

the customer experience. “Think about the beginning of that customer journey when they have an accident. How can we instantly be there for that customer? AI can really fill that void for us. A lot of us are off enjoying the weekend. But that customer is in distress dealing with a stressful situation, and they need help. So, from the first point of contact, AI can be a really good co-pilot.”

The Parts and Materials Committee sparked a conversation about matte finishes, a growing trend increasing in popularity as more manufacturers have begun to make this luxury option more affordable. “This starts to open it up even more as now people realize it’s more attainable and will select the option,” suggested Aaron Schulenburg (Society of Collision Repair Specialists).

responsible for returning that finish upon repair. Shops are more likely to see this in their shops.”

Bradley Letourneau (BASF) suggested that “because there are no standards, and we should expect to see variation, what do we need to do as your finishers to put these back to factory conditions? We need to spend extra time and effort in properly preparing to match the sheen and match the color and above all to do the repair back to OEM specifications.” Ultimately, knowledge is power, and one should have no fear as long as they follow the steps and OEM procedures.

Kye Yeung (European Motor Works) shared his perspective of having to redo

18 June 2024 New England Automotive Report
[NATIONAL] NEWS
continued on pg. 38
Aaron Schulenburg (Society of Collision Repair Specialists) CIC Interim Chairman Darrell Amberson (From L-R:) Gabriel Morley, Ryan Taylor and James Spears
New England Automotive Report June 2024 19

There are multiple reasons BASF Automotive Refinish is one of the oldest and most trusted brands in the industry. Their stellar reputation goes beyond their premium products, reliable business development techniques, training and customer service. Body shops know they can count on BASF to not only deliver an excellent experience, but to be a partner in their success.

“BASF puts premium products out into the market along with good services and the right people for shop success, such as full-time business development and strategic account managers to address our customers’ needs,” cites New England Regional Business Manager Matthew Dennison, who outlined some of the key elements that make the brand stand out. “BASF is known for their premium line Glasurit, but we have something for everyone, including our value line baslac.”

Supplying their customers with the products and tools necessary to help them save time and money is key in their business model.

“We’ve been growing by leaps and bounds over the past few years. We’ve achieved a lot of success with our 100 Line, a wet-on-wet application which saves shops time and money in the booth. Shops are able to get additional cars through the booth per day with up to 40 percent shorter process times while using up to 30 percent less material consumption. We also just launched RMC1000, a one-application clear coat with up to 30 percent reduction in material consumption, which really increases

cycle time and performance. There’s a lot of exciting things happening with BASF right now across the whole country and especially here in New England.

Dennison says the growth and excitement surrounding the brand were obvious reasons that led him to come on board with the brand. He has 32 years of experience working within the New England automotive scene, starting out at the young age of 19 as a driver for a different refinish company. He always embodied a passion for wanting to see the businesses he’s worked for succeed, and with that, he’s also taken an active role in supporting the industry by way of participating with the Alliance.

“I’ve always wanted to immerse myself in the business, wanting our company to be successful,” he shares. “I want to understand what shops’ needs are and learn about the issues and hot button topics. Back in the day, as a sales representative, I would attend MABA meetings, and I’d also assist with bringing in guest speakers.”

Dennison is doing exactly that with BASF, bringing the company on board with AASP/MA’s Vendor Affinity Program as a Platinum sponsor.

“We want to help our customers and potential customers be successful in today’s environment. Our customers are our partners. If we are able to help them learn something and become better at what they do, we all win. That’s very important to me and to BASF.”

Producing valuable business tools such as Refinity, BASF’s seamless digital solution, simplifies the customer experience while

helping them grow their business. Refinity covers color, business, training and partners with Learning University to offer hundreds of classes one can take toward I-CAR points and certifications.

Dennison credits BASF’s distribution network as being “the best distribution network in the northeast, let alone New England, with great technicians and sales people to help shops grow their businesses. In addition to our products, it’s our distributors that really make us stand apart from the rest.”

The BASF name may span the globe, but that doesn’t keep them from having close personal relationships in local markets via regional sales managers who can come in and work closely with the shops in that area.

“Our brand has a long history of over 150 years. We have over 100,000 employees worldwide, but at the regional level, they allow us to really focus on our customers and what is important to our distributors and the body shops,” Dennison states. “Our regional business managers literally go into the shops to evaluate their numbers and what their needs are and work out a program to help them improve.”

He stresses the importance of working with the Alliance and looks forward to BASF being a part of their events.

“The people of AASP/MA want to grow and learn, and we want to be a part of fostering that environment. We want to be a partner in helping those who want to be better in their business.”

20 June 2024 New England Automotive Report
MASSACHUSETTS by Alana Quartuccio [VENDOR AFFINITY PROGRAM] SPOTLIGHT
New England Automotive Report June 2024 21 VENDOR AFFINITY PROGRAM SPONSORS GOLD LEVEL SILVER LEVEL BUY FROM YOUR AASP/MA SPONSORS For more information or to become a sponsor of AASP/MA please call (617) 574-0741 or email admin@aaspma.org. MASSACHUSET TS PROTECTING CONSUMERS AND THE COLLISION INDUSTRY "Your Massachusetts Auto Body Association" PLATINUM LEVEL DOUBLE BLACK DIAMOND LEVEL DIAMOND LEVEL

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New England Automotive Report June 2024 23

Why the Collision Industry Is Losing the Employee-Retention War

Many of you reading this may remember me as the old editor of this magazine, so let me quickly fill you in on what I’ve been doing since late 2021. Before landing my current role as an editor for an international nonprofit organization, I spent 14 months as a job coach in New Hampshire. In that role, I helped people in their twenties and thirties focus on their career goals, better organize their résumés and determine the right employers they should pursue based on their skills and ambitions. When I decided to move on from that position to pursue work closer to my skills and ambitions, I found myself slugging it out in the job marketplace alongside millions of other folks. The lessons I learned from these two experiences could fill 10 books, but since I’m limited to around 1,200 words here, I’ll stick to presenting what I believe are some of the reasons why the collision repair industry is having such a hard time attracting and retaining younger employees – and what it can do to turn things around.

Younger Employees Are Afraid to Stay with You

The next time you have a few minutes, go through LinkedIn and check out a few profiles for professionals in their early twenties through early thirties who work in other industries. It’s likely you’ll see people staying at a position for 12 to 18 months before moving on to something new. Years ago, this may have been a red flag for an employer who’d see a résumé like that and immediately question that potential hire’s commitment level. I don’t disagree with that concern, but one surprising thing I discovered while working in the job coaching field is that longevity at a previous position is now a potential barrier to future employment. A more “old-school” employer may still look at a potential hire’s 10-year stint at a past company as an indicator of that person’s loyalty and ability to hold down a steady job, but there’s a much greater likelihood that the majority of today’s hiring managers will view this candidate as someone who’s been applying their talents in just one direction for far too long – possibly leading to a stale skill set or (even worse) a decade’s worth of bad habits.

I’m the first person to scratch his head over Corporate America’s willingness to embrace a revolving-door workforce. Frankly, this mindset is utterly insane. After all, if an employer is looking to hire someone who’s acquired a variety of skills by jumping around, shouldn’t they expect their new hire to bounce after a year or so? That’s not how you build stability in your operation and work culture.

The good news is that the collision repair field is one of the very last industries in this country that values employee longevity. The bad news is that you need to work damn hard to push against a culture that has made job-jumping the norm. In the November 2023 issue of Hammer & Dolly (available online at grecopublishing.com/hd1123askmike), Mike Anderson of

Collision Advice shared how one of his shop clients uses retention bonuses to encourage employees to stick around. The owner of this shop gives his employees a $500 retention bonus for the first year, $1,000 for the second year, $1,500 for the third year and so on. That’s not a bad idea at all.

Do you have a solid training plan in place for employees to sharpen their skills consistently? Are you an innovative, techsavvy owner who provides your employees with the most current equipment and processes available? Do you communicate to a potential employee what they could make if they stay with you for five or more years? What are some other ways you’re incentivizing them to stay with you for the long haul?

Start thinking in these directions immediately, as securing long-term employees through the allure of a steady paycheck alone just doesn’t cut it anymore – even in this economy. If you want to grow a dependable long-term employee base, it’s your responsibility to present them with a clear career path and reward them for not leaving. You need them more than they need you.

You Don’t Clean Up – or Shut Up

I say this with the utmost respect for my friends in the industry: More than a few of you run absolute dumps. Sure, your customer waiting area may be spotless and impressive, but what about that hellhole in the back? Is garbage everywhere on the floor? How many political signs and posters of women in bikinis are on the walls? In 2024? (You know who you are.) To be blunt, you can’t afford to show a potential hire — and, in some cases, their parents, guidance counselors, etc.— that they’d be working in tacky squalor.

In addition to simply cleaning up the mess in your shops, you need to tidy up the social culture within your four walls as well. Today’s society is more politically and socially varied than ever. Whether you agree with concepts like “social justice,” “cultural sensitivity” and “gender fluidity” doesn’t matter – the fact is that younger members of today’s workforce do care about these things. A lot. I raised my stepson in rural New Hampshire, and even his high school had a transgender student support group.

Do I personally align with “woke” culture? Not always, but that doesn’t matter—and it doesn’t matter if you do, either. Why alienate a potential hire because your current staff wants a picture of a half-naked woman on the wall or you want to display campaign posters for your favorite political candidate? Are you ready to call your employees by their preferred pronouns? Your competitors in other fields sure are. Your job is to fill your business with employees with the skills to keep your customers and partners happy – not to make your business a reflection of your sociopolitical beliefs. Save that stuff for your dinner table, and keep it out of your bay.

24 June 2024 New England Automotive Report
by Joel Gausten [GUEST] FEATURE
continued on pg. 42

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New England Automotive Report June 2024 25 For Toyota Genuine Parts please call one of these authorized local Toyota Dealers:
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26 June 2024 New England Automotive Report
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New England Automotive Report June 2024 27

NOTHING LASTS FOREVER:

What to Know BEFORE It’s Time to Sell Your Shop

Running a business is more than a job; it’s a way of life. And for many collision repair shop owners, it seems like it is their life – they’re often so busy tending to today’s needs, such as investing in new equipment and employee training, that it may be difficult to look around the corner to the future. No matter how much one loves what they do, all things eventually come to an end; the day will come when it’s time to retire or sell the business. When that time finally arrives, many realize that – although they’re ready to get out – they aren’t actually prepared.

Whether you plan to pass the business along to a family member, sell to a valued employee or join the consolidation bandwagon, exiting the business isn’t as simple as typing up a letter of resignation or relinquishing your key to the front door. The process requires forethought and preparation…or at least, it should if you want to walk away with something to show for all your hard work. In fact, exiting the business is not a process that can take years, it should take years, according to industry experts.

“The time to start thinking about exiting the business and making those future plans is NOW,” stresses Rachel James (Torque

Financial Group). “Ideally, a shop owner should be thinking about this decision five to 10 years before they actually plan to sell or retire because the more time you have to plan, the more options you’ll have later.”

“It’s never too early to begin thinking about it, and, as a matter of fact, every move a shop owner makes should have succession in mind,” agrees Matt DiFrancesco (High Lift Financial). “Shop owners need to put the vehicle in place, so when the time comes, they are able to exit on their own terms.”

James worries that many shop owners have an “expectation that once they’re ready to sell, the transaction happens immediately, so it takes them some time to come to terms with the idea of exiting the business and then to deal with the reality that it doesn’t happen overnight. It can take a couple years to transfer ownership due to titling, building, zoning, etc. Any number of things could delay the process.”

Although Consolidation Coach’s Laura Gay agrees that it’s never too early to start thinking about one’s exit strategy, she points out that the actual time frame necessary for any specific shop

28 June 2024 New England Automotive Report [COVER] STORY

depends on the owner and the business itself. “I think most shop owners fall into the category of not wanting to deal with it until the time comes,” she observes. “Obviously, that’s not ideal, but it’s not a deal killer either. There are plenty of shop owners who are just focused on running their business the best they can, being the most efficient. If you are running a good shop from top to bottom, that’s really what you need to focus on because at the end of the day, it comes down to having a really nice, well-run facility. That is what brings the dollars.”

In fact, in the world of consolidation, “Not having an exit strategy may not be as big of a deal as it used to be,” Gay claims. “Planning is good, but if you want out, most shops can find a buyer, especially if they are located in a populated area with a 10,000 square foot shop that does over $1 million in annual sales. Of course, in the Northeast, some shops are smaller because of space constraints, and they are still viable sales because that’s normal for the market.”

So, what is the first thing a shop owner should keep in mind when they make the decision to get out?

“The business owner should start by considering the income they’ll need to live off,” James suggests. “It’s tricky because we don’t have a crystal ball to predict how many years they’ll need to survive on a specific amount, so it’s important to honestly evaluate one’s health, longevity and family history to estimate how many years they need to plan for. Don’t forget to think about the expenses that the business pays for, like health insurance, that will also need to be paid from that fixed income.”

The first thing all shop owners need to think about is what they want their post-transition/exit life to look like, DiFrancesco adds. “Without a picture of what that looks like, it is difficult to structure a plan according to what they want. The starting point comes down to figuring out if they want to fully exit or still be involved but not with the day-to-day operations as they want the flexibility to travel, play golf or go hunting. Once they know what that life looks like, we can start to build out the different ways we can structure a transition plan.”

Many may not be aware of the true value of their business, so it’s important to have an assessment done early in the process. “You should always do a valuation, and not just the value of the business but what your free cash flow is in the business,” suggests DiFrancesco. “That’s what a consolidator or a third-party buyer will look at since they want to buy a business that’s profitable. With an inside transfer, you can utilize free cash flow to fund that transition, so getting that valuation as soon as possible is a key first step.”

Many different deal structure platforms are taking place when it comes to the sale of collision shops – there’s MSOs buying other MSOs, private equity deals and shop owners looking to grow their business by acquiring other shops or those entering into a succession plan. Each type of sale will require some different considerations, but regardless of deal structure or which entity is buying the business, shop owners will want to position themselves to make the most profit possible from the sale, and they can do that by “consistently reviewing their financial statements to stay ahead of business trends,” according to James, who recommends frequent perusals of all documents, from profit and loss statements to balance sheets and taxes. “You want to figure out the value of your business well in advance so, if it’s lower than you’d like, you have plenty of

time to pivot and make changes to increase that value. By evaluating in advance, you can make small tweaks over time, but if you wait until the 11th hour, it’s a lot harder to make impactful changes.”

She compares financial planning to repairing a vehicle. “You can’t just spray basecoat on a dented panel, and it’s magically restored. Properly repairing a vehicle to its pre-existing condition requires a strategy and many components. The similar is true with financial planning. And just like each damaged vehicle has different circumstances and requirements, people are unique, so they’ll want to evaluate their income needs, liabilities, health care options, legacy and estate plans…In the shop, the first step is to begin. With succession planning, the best way to get started is to start, and just like your customers want a qualified shop to repair their vehicle, it’s wise to contact a CPA or trusted financial advisor who can help you understand the plans you need to make and walk you through the process.”

“Always keep in mind what your strategy is going to be,” Gay agrees, emphasizing the value of relying on experienced experts to help throughout the sales process. “Are you going to do it alone, or are you going to get someone to help you? The important part is not leaving money on the table, and that is easy to do if you don’t know what you are doing. If you do it alone, you have to come up with your own internal strategies on how to handle it, specifically confidentiality and how you are going to look at what the different buyers are and how to make sure you don’t leave money on the table. If you decide you want someone to help you, you need an understanding of what the business is worth versus what you can get for it. That’s a big disparity. You can probably get a lot more for it than what it’s worth in a lot of markets, especially in the northeast. It’s just getting red hot with consolidation, and more and more buyers are entering the market.”

While consolidators have historically avoided the New England market, that trend has begun to shift, as discussed in last month’s New England Automotive Report (read the story online at grecopublishing.com/near0524coverstory). Gay indicates that consolidation in Massachusetts is “on fire! VIVE Collision is the leader; however, Caliber, Gerber and others are active. Many new private equity folks have formed and are working that area.”

Consolidation isn’t the only option, of course. “There are three options,” offers DiFrancesco. “They can do an internal succession to a family member or an employee. They can do a third-party sale, whether it’s to a consolidator or a small MSO, or they can look for another third-party buyer in the market who may be looking to acquire shops. There is even what could be called a fourth option where one does an internal succession, but does not completely step away. The owner still maintains some control, but they give equity to employees so they no longer have to be involved with the dayto-day stuff. That is a lifestyle exit where they still have control over the business but no longer participate as part of the daily operation. That equity can be structured either as a stock purchase program for key employees or an ESOP (employer stock option program).”

According to DiFrancesco, “On insider sales, I like to see them hold on to the real estate as an income stream, but also if the owner has children who are not involved with the business, the real estate can be part of their legacy. I try to maintain that family

New England Automotive Report June 2024 29
continued on pg. 30
Quartuccio

unit, so if there is one child getting the business, the others don’t feel slighted and you can structure the real estate to be able to create a fair distribution and maintain that family harmony. If you go to a third party, especially with consolidators, they want the owners to maintain the real estate, and that remains a cash flow stream.”

The type of entity one chooses to sell the business to can have a significant impact on how much the property is worth, Gay points out. “If you lease it to an individual or a private entity, the property value will be significantly different. Selling to a consolidator typically means a cash sale, and if you retain ownership of your real estate, property value will increase post-sale with a strong lease in place.” If consolidation is the route that makes most sense for your business plan, one important thing to realize is that everything is negotiable in the process, from the big stuff to the tiny details, according to Gay.

The influx of consolidators in the Commonwealth community may actually have an added benefit for Massachusetts shops that have been dealing with a suppressed labor reimbursement rate for far too long as some research indicates that consolidators may be more successful at negotiating labor rate increases with insurers. Gay confirms, “If a consolidator owns 10 shops in a market, they control [the market’s labor reimbursement rate] to a degree.”

Although “the environment with consolidation is very bright,” DiFrancesco insists, “The independent shop really has a place in this environment. It may be a different place, but it’s a very important one.”

PRESIDENT’S MESSAGE

continued from pg. 6

performing a calibration, you are doing a disservice to everyone, especially the customer. But you’re also performing a disservice to yourself and to other shops! Because we are liable when something goes wrong, even if the calibration is being sublet out. The body shop has the contract with the customer, and if they smash into someone or something because that system doesn’t perform as it was designed because the calibration is off by a fraction of a centimeter, we’re still the ones on the hook. The liability falls on us. But it’s about more than just money and protecting our own behinds; it’s also about morality and doing the right thing. If you’re unwilling to calibrate the vehicle correctly (or sublet to a company that does the right thing), there’s no point in calibrating it at all. And I’m not saying, “Don’t calibrate the vehicle.” I’m telling you to pass the job onto a shop that IS willing to do what’s right. The government isn’t going to do anything to mandate this unless so many people die that they have no choice. And I don’t know about you, but I can’t live with that. So, it’s up to us to do the right thing for our customers and for all drivers in Massachusetts. It is your independent business decision…but the decision seems clear.

AASP/MA PRESIDENT KEVIN GALLERANI is president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com.

30 June 2024 New England Automotive Report
[COVER] STORY MASSACHUSETTS
One Call, One Truck for 14 Brands!
continued from pg. 29
MASSACHUSETTS

Here’s to 241 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.

Thank you for your many years of loyalty.

626 E. Elizabeth Ave., Linden, NJ 07036 Phone: (908) 925-6133 Fax: (908) 925-4344 414-416 Madison Ave., Paterson, NJ 07524 Phone: (973) 279-8300

(973) 279-9030 631 Clifton Ave., Toms River, NJ 08753 Phone: (732) 797-3942

(732) 797-0774 100 Melrich Road, Cranbury, NJ 08512 Phone: (609) 860-2800 Fax: (609) 860-2801 4 Emery Ave., Randolph, NJ 07869 Phone: (862) 244-4818 Fax: (862) 244-4822 www.kemperle.com

New England Automotive Report June 2024 31
decades of creating
Co-celebrating
chemistry between two industry leaders
Fax:
Fax:

From Hoops to Harmony: Enhancing the Shop-Insurer Relationship in Massachusetts – Part One

In the complex world of automotive repairs in Massachusetts, repair shops frequently navigate a labyrinth of insurer requirements. These demands range from the necessary to the seemingly redundant, with each insurer having its protocols that significantly affect the operations of repair shops. Most adhere to a standard set of practices, but there are instances where outliers – such as certain out-of-state insurers – introduce outdated demands that complicate the landscape further.

These non-standard requirements, particularly when they involve cumbersome paperwork like the unnecessary Work Completed Form, not only slow down processes but also introduce significant administrative burdens on shops. These demands often stand out starkly against a backdrop of evolving legal standards and industry norms, highlighting a need for ongoing adaptation and a firm understanding of both legal rights and the practical challenges faced daily by repair shops.

This article, presented in two parts, aims to provide a comprehensive overview and actionable insights into navigating these challenges. Part One delves into the current landscape of insurer requirements, underscoring the specific challenges introduced by outdated demands, and explores how emerging legal tools are beginning to transform the relationship between repair shops and insurers. It covers the legal framework governing these interactions, the specific challenges posed by non-standard insurer requirements and the benefits of aligning with preferred legal practices.

In Part Two, which will follow next month, we will provide strategic recommendations for repair shops on how to effectively handle these insurer demands, including a proposed script for requesting legal justification from insurers. We will also discuss the role of innovative legal tools, like the "Forever Forms," created by Coverall Law and designed to empower shops through enhanced legal strategies, and then we will conclude with a look forward to the future implications of these evolving dynamics.

Section One: Legal Framework and Insurer Requirements

Legal

Overview of Massachusetts Motor Vehicle Repair Regulations

In Massachusetts, the handling of motor vehicle damage

claims is primarily governed by Chapter 90, Section 34O of the Massachusetts General Laws. This legislation delineates the responsibilities and rights of insurance companies and repair shops in the aftermath of an automobile accident. Specifically, it states that an insurer is required to pay the claimant the fair market costs necessary to restore the vehicle to its pre-accident condition, minus any deductible that may apply. This creates a clear legal expectation for insurers to fulfill their financial obligations toward vehicle repair promptly and adequately.

However, Massachusetts law also empowers vehicle owners significantly in this process. It clearly stipulates that the ultimate decision regarding which repairs to authorize – and where to have them performed – rests solely with the vehicle owner, not with the insurer or the repair shop. This places a legal limit on how much control an insurer can exert over the repair process, which is a crucial protection for both vehicle owners and repair shops against potential overreach by insurance companies.

Insurer Reluctance to Make Payments

Despite the clarity of these legal requirements, insurers often exhibit a reluctance to make prompt and full payments, which can be attributed to several factors. Insurers are naturally motivated to minimize their financial outlays, leading them to scrutinize claims closely, sometimes excessively. Under Massachusetts General Laws Chapter 176D, which governs the practices of insurance companies to prevent unfair methods of competition and unfair and deceptive acts, several common excuses are used by insurers to delay or deny payments:

• Disputes Over Repair Costs: Insurers may argue that the repair costs are higher than what is reasonable or necessary, pushing back against the amounts billed by repair shops.

• Questions about the Necessity of Repairs: Insurers might claim that certain repairs are unnecessary for restoring the vehicle to its pre-accident condition, challenging the repair shop's assessment.

• Incomplete Documentation: Another common excuse is the claim that the repair shop has not provided sufficient documentation to substantiate the repairs done or the costs incurred.

• Pre-existing Damage: Insurers frequently refuse to cover damages

[LEGAL] PERSPECTIVE by Sean Preston, Coverall Law 32 June 2024 New England Automotive Report

they deem pre-existing and unrelated to the reported incident.

• Delay in Inspection: Insurers might also delay their inspection of the vehicle, using the lack of inspection as a reason to postpone payment.

Legal Protections for Repair Shops

To counteract these tendencies, Massachusetts law provides robust protections for repair shops. Repair shops are not obligated to accept the insurer's appraisal as final and can negotiate or contest claims amounts they believe to be insufficient to cover the necessary repairs. Moreover, the law mandates that insurers must act in good faith and deal fairly with all claimants, a requirement that includes making timely payments once liability is reasonably clear. Furthermore, should an insurer consistently fail to adhere to these standards, repair shops and vehicle owners have recourse through the provisions of M.G.L. c. 93A, which allows them to seek damages for any unfair or deceptive acts practiced by an insurer.

While Massachusetts law establishes a framework designed to ensure fair dealings and prompt payments, the reality often involves a tug-of-war between insurers' reluctance to disburse funds and the rights of repair shops to receive fair compensation for their services. This dynamic necessitates a vigilant and informed approach from repair shops to safeguard their interests and those of their customers.

Section Two: Specific Challenges Faced by Repair Shops

An Outlier in Insurer Requirements

Massachusetts repair shops have recently encountered a single out-of-state insurer insisting on the submission of a Work Completed Form. This demand starkly contrasts with the practices of other insurers who have not required such forms for decades. Under Massachusetts law, specifically Chapter 90, Section 34O, there is a clear framework for handling motor vehicle repairs, which does not mandate this form. The section outlines the process for obtaining pre-approval from insurers for certain necessary repairs, emphasizing that once an insurer agrees to the repairs and the costs involved, they are obliged to compensate the repair shop or insured without undue delay.

The Real-World Impact on Shops

Delays in Payment:

The insistence on a Work Completed Form has introduced significant delays in payment for many shops. These delays are often due to the additional time required to complete and process these forms, which are not standard practice and can lead to disputes or misunderstandings regarding their necessity or the information required.

Confusion Among Shop Owners:

For shop owners, this one insurer’s deviation from the norm has caused considerable confusion. Many are unsure of the legal basis for this requirement and whether they are obliged to comply, especially given that no other insurers impose this condition. This confusion can lead to inconsistent practices among shops, potentially affecting their efficiency and financial stability.

Administrative Burden:

The requirement to fill out non-mandated forms adds an unnecessary administrative burden on repair shops. These forms require time and resources to manage, which diverts attention from core business activities. This requirement is particularly burdensome because it seems to serve no clear legal or operational purpose under the current legal framework, as established by Section 34O.

The Importance of Documentation

While the law does not require the specific Work Completed Form, it does emphasize the importance of documenting the repair process and the damages being addressed. This documentation is crucial in establishing that the repairs performed are directly related to the valid claim under which they are billed. Proper documentation ensures that there is a clear and traceable link between the claim, the damage assessed and the repairs conducted, which is essential for accountability and transparency in the claims process.

Repair shops must maintain comprehensive records of all repairs, including detailed descriptions of the damage, the repairs made and the costs incurred. This documentation is not only vital for insurance purposes but also serves as protection for the shops in any disputes over the scope of work or the nature of the repairs.

The requirement by one insurer for a Work Completed Form, despite being an outlier, has highlighted the need for clear and consistent practices across the insurance industry. It underlines the importance of aligning insurer requirements with state laws to avoid placing undue burdens on repair shops. As repair shops navigate these challenges, they must continue to advocate for practices that are legally sound, minimize administrative burdens and promote timely payment for services rendered. This advocacy is essential not only for the health of individual businesses but also for the integrity of the auto repair industry in Massachusetts.

Section Three: Legal vs. Preferred Practices

Insurer Benefits from Using Outdated Forms

While the use of outdated forms like the Work Completed Form is not required under Massachusetts law, some insurers may perceive benefits in maintaining such practices. One potential advantage is the increased control over the repair process. By requiring additional forms, insurers might feel they can better monitor the quality and extent of repairs, ensuring that the work aligns with their appraisal and cost expectations. Additionally, these forms could serve as a mechanism for insurers to verify that the funds they provide are being used precisely as intended, which could be seen as a safeguard against fraud or overcharging by repair shops.

Legal Rights vs. Preferred Practices

Contrasting these perceived benefits, the legal framework in Massachusetts explicitly supports the autonomy of vehicle owners and the rights of repair shops. Under Chapter 90, Section 34O, it is clear that the decision regarding which repairs to authorize and which shop to utilize rests solely with the vehicle owner. This law effectively limits the level of control insurers can exert once they continued on pg. 34

New England Automotive Report June 2024 33

continued from pg. 33

have agreed to cover the costs of repairs.

Furthermore, the law stipulates that insurers are obligated to pay for the reasonable costs of necessary repairs, as long as these are appropriately documented and justified by the repair shops. This provision ensures that shops are compensated fairly for their work without being subjected to undue control or delayed payments by insurers.

The Role of Education in Mending Relationships

Coverall Law has taken a proactive approach in addressing the tensions between repair shops and insurers, particularly focusing on educating both parties about their rights and responsibilities under current laws. By promoting a better understanding of legal standards, Coverall Law aims to mend broken (and prevent potential breaking of) relationships between these entities. This educational focus is crucial as it helps both insurers and repair shops to navigate their interactions more smoothly. For insurers, education about the legal limits of their control and the importance of timely payments can lead to more compliant practices that align with state laws. For repair shops, understanding their rights to negotiate repair terms, document their work and insist on fair compensation can empower them to push back against unfair practices.

While insurers might prefer practices that give them more oversight and control, such as requiring additional forms, these

practices must be balanced against the legal rights and autonomy granted to repair shops and vehicle owners in Massachusetts. The emphasis should be on aligning insurer requirements with legal standards, reducing unnecessary burdens on repair shops and fostering a cooperative environment that benefits all parties involved. Through continued education and advocacy by organizations like Coverall Law, the goal is to ensure that the relationship between repair shops and insurers remains robust and mutually beneficial, reflecting both legal mandates and industry best practices.

Conclusion to Part One

As we have explored in the first part of our discussion, the landscape of insurer requirements for Massachusetts auto repair shops is fraught with legal complexities and outdated demands that challenge even the most adept shop owners. The nuances of Chapter 90, Section 34O and the pitfalls of insurer tactics, such as the use of non-mandated forms like the Work Completed Form, highlight the ongoing struggle for shops to navigate a system that often seems tilted against them.

Yet, there is a pathway forward, illuminated by the evolving legal tools and educational resources that aim to empower shops and restore balance in their dealings with insurers. The insights gleaned so far underscore the importance of understanding one’s legal rights and the potential benefits of aligning practices with these rights to ensure fair treatment and compensation.

In Part Two of our article, we will shift our focus towards actionable strategies and detailed recommendations that repair shops can utilize to effectively counter unjust insurer demands. Expect to find practical advice, including a script for engaging with insurers that challenges them to justify their outdated requirements legally. Additionally, we will delve deeper into the transformative potential of the "Forever Forms" developed by Coverall Law, which offer a robust legal framework designed to bolster the bargaining power of shops and streamline their interactions with insurers.

Stay tuned to New England Automotive Report as we continue to explore these empowering strategies that not only promise to safeguard the interests of repair shops but also foster a more equitable and efficient operational environment for the entire automotive repair industry in Massachusetts.

Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or spreston@coveralllaw.com

34 June 2024 New England Automotive Report
[LEGAL] PERSPECTIVE
MASSACHUSETTS
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36 Juue 2024 New England Automotive Report
New England Automotive Report June 2024 37

improperly done matte finish vehicles in his shop, recommending steps he uses to minimize the need to redo these jobs. One tool he uses is known as a gloss meter. “It measures things in gloss units from zero to 100. The glossiest is zero, and the 100 is matte. They have three cameras in them at 20, 60 and 85 degrees. When you take a sample of a finish, you'll see that it can differentiate the amount of loss that the human eye can't detect.”

The Data Access Privacy and Security Committee set out to answer the industry’s most pressing questions concerning the collection and removal of data appearing on vehicle history reports with a panel discussion featuring Ed Pontis of Experian who shared, “Our biggest source comes from the states. We also get data from local police departments, auctions and some from body shops.”

Panelists discussed how to manage customers who believe a shop is at fault for accidents showing up on vehicle history reports. “We’re better equipped now [on how] to tell them,” shop owner Scott Benavidez (Mr. B’s Paint and Body Shop; Albuquerque, NM) reported. “We’ve been going through this for a long time figuring out that when we hit one button, it turns into 10 people [having access to data], and then those 10 people can send it to another 10 people, and those 10 send it to another 10 people, so we have no idea where information ends up. That’s tough to explain to a customer.”

Conversations will continue at the next CIC meeting scheduled for July 10 in Denver, CO. Visit ciclink.com for more information.

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40 June 2024 New England Automotive Report

Why the Industry Can – and Will – Win

Simply put, cubicle farms suck. There are few things more impersonal than having to run a simple question or a time-off request through a 10-person Human Resources email chain and then wait for a reply. I had clients at my previous job who hated those environments. Why? Because they just loved working with their hands and didn’t want to waste their time writing an email to someone they’ve never met to ask if they could leave early to take their kid to a dentist appointment. One of the greatest things about most body shops is that employees see the owners every day. You’d be stunned by how rare that kind of interaction is these days, especially when some companies competing for your hires have 300 employees.

There’s an intimacy and family spirit in the collision repair industry that is virtually non-existent in almost every other profession out there. Use that rare gift to your highest advantage. Host regular parties or other social events for your team. Don’t just throw a few pizzas on a table once a month; invite your employees to a family-friendly place on a Saturday afternoon – on your dime – and encourage them to bring their kids and/ or significant others. Laugh with them. Make them feel like they’re part of your family –because they’ll be spending a lot more time with you than their actual one. Market these things to your potential hires. It’s simple stuff, sure, but believe me – this is an art that’s dying in today’s workplace. Be the industry to keep it going. Your employees will love you for it – and stay with you for more than 18 months.

I’ll always have a deep love and appreciation for the collision repair industry, and I hope these few words have helped shed some new light on an old problem. I wish you well in your search for new employees. You have an extraordinary opportunity to offer them.

Accudraft Paint Booths OBC Albert Kemperle ............................................. 31 Applied Automotive Technology Inc. 9 Audi Group 27 Balise 12 BMW Group .................................................. 26 Boch Chevrolet (GM Parts Group) 17 Boch Hyundai 39 Colonial Auto Group ........................................ 2 Coverall Law 35 Crown Collision Solutions 17 Empire Auto Parts 42 Ford Group .................................................... 35 Grieco Toyota 17 Honda Group 36 Hyundai Group 38 ADVERTISERS’ INDEX Check out our website www.empireautoparts.com or reach us at 800.624.4561 YOUR RELIABLE SOURCE FOR QUALITY AFTERMARKET PARTS THE PARTS YOU NEED, WHEN YOU NEED THEM. [GUEST] FEATURE continued from pg.
24
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