New England Automotive Report July 2018

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 1

Serving the New England Collision and Mechanical Repair Industry

July 2018 U.S.A. $5.95

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

PLUS: Billing for Info Access Inside Audi Certification www.grecopublishing.com

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 2

45,000 sq. ft. warehouse with over 35,000 parts, ready for delivery.

Genuine GM Wholesale Parts at competitive aftermarket prices including a complete line of Saturn parts now in stock 10 delivery trucks, ready to bring you the parts you need fast and easy.

All free delivery in Metro Boston, Cape Cod, throughout Massachusetts and Rhode Island; shipping

by FedEx or UPS. 75 years of experience, making us ready to fill any type of order, large or small.

GET MOPAR QUALITY AT AFTERMARKET PRICES. ®

BEST CHRYSLER DODGE JEEP RAM 520 Colony Place Road Plymouth, MA 02360 Order Hotline: (800) 932-7900 Fax: (781) 749-7804

Send your electronic insurance estimate to your local FCA US LLC dealer and get the parts that fit true and finish right. We price match* against aftermarket or salvage collision parts. *Some exclusions apply. See dealer for details.

COLLISION CONOUEST

Check out MoparRepairConnection.com for resources, promotions and technical information.

See us for all the parts you need!

www.bestjeep.com ©2017 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 3

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 4

We provide the highest level of customer-friendly service through our knowledgeable and helpful personnel!

WE WANT TO

EARN YOUR BUSINESS!

• We carry over $2,000,000 in collision & mechanical parts • Daily UPS shipping available

COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155 Phone Number: 781-395-3025 FAX Number: 781-395-4863

COLONIAL HONDA OF DARTMOUTH 225 State Road (Rte. 6) Dartmouth, MA. 02747 Parts Direct: 508-997-2919 FAX Number: 508-730-6578

CITY SIDE SUBARU 790 Pleasant Street Belmont, MA. 02478 Phone Number: 617-826-5005 FAX Number: 617-489-0733

COLONIAL FORD 147 Samoset Street Plymouth, MA. 02360 Phone Number: 800-233-8109 FAX Number: 508-830-1658

NORTH END SUBARU 757 Chase Road (Rte. 13) Lunenburg, MA. 01462 Phone Number: 800-548-8887 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 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

• Servicing Massachusetts, Rhode Island and New Hampshire • We build our reputation on providing you the best SERVICE!!

COLONIAL BUICK - GMC 66 Galen Street Watertown, MA. 02472 Phone Number: 888-560-5337 FAX Number: 617-489-6875

NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841

COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 888-322-6570 Phone Number: 508-996-6266 FAX Number: 508-616-0445 FAX Number: 508-979-1219

COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155 Phone Number: 781-475-5200 FAX Number: 781-391-3506

WELLESLEY VOLKSWAGEN 231 Linden Street Wellesley, MA. 02482 Phone Number: 800-228-8344 FAX Number: 781-237-6024 Contact: Dan Bettencourt / Wholesale Parts Manager

COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587

COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152

COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728

Place any order online with our parts order form at www.buycolonial.com

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 5

Membership Application 2018 & 2019

AASP-MA P.O. BOX 212 Marlborough, MA 01752 Phone: 617-574-0741 Fax: 781-848-1603 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): ________________________________________________________________________________ Telephone Number: ________________________________________________________________________________________________________ Website: ______________________________________________________________________________________________________________________ Additional Social Media: Facebook____________________________________Twitter_________________________________________ DUES STRUCTURE Type of Membership (Collision or Vendor): _________________________________ Annual Dues: $495/12 Months*

BUSINESS CONTACTS PRIMARY CONTACT ACCOUNTS PAYABLE Name: _______________________________________________________ Name: _______________________________________________________ Phone: ______________________________________________________

Phone: ______________________________________________________

Email: _______________________________________________________

Email: _______________________________________________________

CONTACTS WHO WISH TO RECEIVE NEWSLETTERS, EVENT INFORMATION, & LEGISLATIVE UPDATES Name: __________________________________________________ Email: _______________________________________________________ Name: __________________________________________________

Email: _______________________________________________________

Name: __________________________________________________

Email: _______________________________________________________

Name: __________________________________________________

Email: _______________________________________________________

Name: __________________________________________________

Email: _______________________________________________________

PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Please Check Here If Paying By Check: ___________ (Please note RS# on memo line of check if Collision Shop) Please Check Here If You Wish To Pay With A Credit Card: _______________ CC #: ______________________________________________________________________

EXP: ________/___________ CID: _________________

Billing Address: ______________________________________________________________________________________________________________ Amount to Charge: ______________________________ 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 for 12 months as provided for in this contract. *Membership dues are for 12 months commencing on your anniversary date.

New England Automotive Report July 2018 5

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 6

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 7

July 2018 • Volume 16, No. 7

DEPARTMENTS VICE PRESIDENT’S MESSAGE by Adam Ioakim 8 | Billing for Info Access

CONTENTS COVER STORY

by Joel Gausten

LOCAL NEWS 10 | AASP/MA Announces New Executive Director & Administrative Assistant NATIONAL NEWS 13 | Right to Repair Roadblocks Detailed at AASP National Meeting COLLISION DIRECTOR’S MESSAGE by Rob DelGallo 20 | Rolling the Dice OEM CERTIFICATION PROFILE 30 | Audi of America, Inc. INDUSTRY UPDATE by John Walczuk, ZB Negotiations 36 | Diminished Value: Vehicle Owners Lose Again - Part 1 of 2

26 | AASP/MA’s Next Era: A Chat with New Executive Director Lucky Papageorg

ALSO THIS ISSUE 5 | AASP/MA MEMBERSHIP APPLICATION 11 | WHERE’S LUCKY? 13 | I-CAR IN MASSACHUSSETTS 17 | 2018 AASP/MA ANNUAL GOLF OUTING INFO

LEGAL PERSPECTIVE by James Castleman, Esq. 40 | Certifying that Repairs Have Been Made

22 | AASP/MA SPONSOR INFO 46 | INDEX OF ADVERTISERS

New England Automotive Report July 2018 7

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 8

VICE PRESIDENT’S MESSAGE

Billing for Info Access ADAM IOAKIM

A few days ago, I was excited to receive an Estimating Tip email from the Database Enhancement Gateway (which offers a ton of great tips at degweb.org) and the Society of Collision Repair Specialists (SCRS) that discussed how information website access, research and diagnostic costs are not included in labor times. The tip reads as follows:

ridiculous. Even if an architect has been in business for 20 years, that person still needs to develop a blueprint for every new house they design. If you’ve ever had to hire a lawyer, then you know they have to research data for every case they handle – and that is a billable activity. The collision repair industry should be no different.

We’re at a crossroads within the industry. There are technologies hitting our bays that will ultimately lead us to bill for new items and procedures. As repairers, we should view this as an opportunity to take back our industry and come up with our own pricing structure for what needs to be performed to get these vehicles back on the road.

On another topic, I’d like to welcome our new executive director, Lucky Papageorg, and our new administrative team, Greco Publishing. Lucky’s previous experience and vast industry knowledge will be an incredible asset to AASP/MA, and we will also greatly benefit from Greco Publishing’s history with numerous state associations across the country. I look forward to working with them both as our association moves forward in addressing the intricate animal that is the Massachusetts collision repair field. You can learn more about our new relationship with Lucky and Greco Publishing on page 10, while this month’s cover story features an extensive Q&A interview with Lucky about his past work on behalf of shops and his plans for AASP/MA’s future.

OEM information website access cost is NOT INCLUDED in developed labor times in all three estimating systems.

OEM technical information sites offer multiple subscription options available to end-users depending on their specific needs and time. Research and diagnostic labor time is also not included in published labor times.

Both labor and subscription cost would require an onthe-spot evaluation to be added on the repair plan/work order.

The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.

To research the repair procedures (every time) is a must – and it’s not an overhead cost. There’s an investment that has to be made in the fees that go into accessing that information and the time it takes for the damage assessor to retrieve it.

Lately, I’ve had insurers ask me, “Oh, so I’m going to pay you to learn how to fix cars?” It’s not about that; it’s about building an accurate OEM repair plan for every job that is performed at our facility. Suggesting that only an inexperienced tech needs to research repair information is N

E

W

E

N

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

ADAM IOAKIM is the co-owner of Hogan & Van

Auto Body in Medford, MA. He can be reached at (781) 436-0366 or adam@hoganandvan.com.

G

L

A

N

D

AU M TIVE AUT T TI TIV STAFF

AASP/MA EXECUTIVE COMMITTEE

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco - thomas@grecopublishing.com

Lea Velocci - lea@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Alana Bonillo - alana@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com

TREASURER Kevin Gallerani LEGISLATIVE CHAIR Peter Langone IMMEDIATE PAST PRESIDENT Paul Hendricks

PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier

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

COLLISION DIRECTOR Rob DelGallo

www.grecopublishing.com

Darlene Andrade Matthew Ciaschini Alex Falzone Joshua Fuller

AASP/MA DIRECTORS

New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2018 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

WWW.AASPMA.ORG

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

8 July 2018

New England Automotive Report

Kevin Kyes Frank Patterson Mike Penacho

AASP/MA ADMINISTRATIVE OFFICE Evangelos “Lucky” Papageorg: AASP/MA Executive Director

Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741

NEAR0718.qxp_NEAR1014 6/18/18 4:39 PM Page 9

New England Automotive Report July 2018 9

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 10

[LOCAL] NEWS

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

ANNoUNCES New Executive Director & Administrative Assistant The Alliance of Automotive Service Providers of Massachusetts (AASP/MA) is thrilled to announce its new executive director and administrative assistant. The association has partnered with Evangelos “Lucky” Papageorg, who will take over as executive director, and Thomas Greco Publishing, Inc., who will perform administrative duties.

Papageorg previously served as the executive director for the Massachusetts Auto Body Association (MABA). More recently, he ran his own consulting business. He has been on the road for AASP/MA as of June 1, canvassing shops across the state with the goal of reenergizing the association’s focus on long-term member growth and retention.

“We are very encouraged that a longtime, recognized industry professional has agreed to join AASP/MA as our executive director,” says AASP/MA President Molly Brodeur. “Lucky is a consummate professional with a wealth of knowledge, not only about the Massachusetts industry, but about the collision repair industry at-large. The level of expertise that he will bring to our association is unmatched in Massachusetts.”

Papageorg is looking forward to working with the association. His primary 10 July 2018

New England Automotive Report

goal is to help make AASP/MA membership as beneficial as possible for all members.

“I am very excited to once again be working as the executive director of the collision repair association here in Massachusetts,” he said. “I am especially pleased to be assisting the Board members as they strive to make AASP/MA the premier collision repair association in Massachusetts. Together, we will work hard to advance the industry and benefit and assist its members as they work towards safe, proper repairs to protect the motoring public.”

Brodeur is confident that many AASP/MA members will recognize Papageorg from his extensive time in the industry and is excited for what’s to come.

“Lucky is somebody who can walk into a shop and immediately empathize with the struggles repairers face in negotiations with appraisers, customer interactions – anything! He’ll be so accessible to all of our members and will do everything in his power to help solve any problems as they arise.”

Thomas Greco Publishing, Inc., publishers of New England Automotive Report (the official publication of AASP/ MA), will provide administrative support to AASP/MA.

AASP/MA Executive Director Evangelos “Lucky” Papageorg

“We are very excited to be enhancing our relationship with Greco Publishing,” Brodeur says. “We’ve had a longtime relationship that’s been mutually beneficial for both of us, and we felt like we were in a good position to take that relationship to the next level. Having a staff in place, we’re reassuring folks that when they call, we have a very capable, professional group on the other end ready to assist.”

Overall, Brodeur is eagerly anticipating the bright future ahead for AASP/MA with a brand-new team.

“In our industry, there is a constant evolution of vehicle technology, certifications, training – so much is coming at us every single day. We intend to position ourselves as a clearinghouse of all that information for our members so they have one place to go to get the answers.

We want to be the primary resource for our members, and I think we’re more than capable of taking on that task.”

For more information on AASP/MA, please contact the association via phone at (617) 574-0741, via email at admin@ aaspma.org or online at aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 11

New in NEAR...we'll be letting you know where

AASP/MA Executive Director Lucky Papageorg will be visiting in the state each month.

3

4 2

For the month of July, Lucky will be spending the first week visiting shops in the Southeastern region.

For the second week, he will be in the

JULY

2018

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

1

Midstate region.

In the third week, he’ll be visiting the Western region.

During the fourth week, he will be in the Boston/Northeast region.

Lucky can be reached at (617) 574-0741 or lucky@aaspma.org.

NEW ENGLAND’S NEWEST MOPAR DEALER

Hours: M-F: 7am-6pm Sat: 7am-1pm

777 Washington Street • Newton, MA 02160

Call Us For All Your MOPAR Needs or visit us on the web: www.mcgoverncjdrofnewton.com

For First Time Customers, Call me: Mando Bogosian, Wholesale Manager

Hours: M-F: 7am-6pm Sat: 7am-1pm

TOLL FREE: 800-741-7563 DIRECT: 617-454-2990 FAX: 617-467-0006

Call us and get the right MOPAR parts the FIRST TIME! New England Automotive Report July 2018 11

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 12

12 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 13

[NATIONAL] NEWS in Massachusetts July 9, 2018 Corrosion Protection

New England Collision Equipment, Inc. (Mansfield)

July 10, 2018 Hazardous Materials, Personal Safety & Refinish Safety

Enterprise Rent-A-Car (Burlington)

July 16, 2018 Automotive Foams

Right to Repair Roadblocks Detailed at AASP National Meeting

New England Collision Equipment, Inc. (Mansfield)

July 17, 2018 Steering and Suspension Damage Analysis Enterprise Rent-A-Car (Burlington)

July 23, 2018 Structural Straightening Steel

New England Collision Equipment, Inc. (Mansfield)

July 24, 2018 Replacement of Steel Unitized Structures Enterprise Rent-A-Car (Burlington)

July 30, 2018 Plastic and Composite Repair

New England Collision Equipment, Inc. (Mansfield)

July 31, 2018 Plastic and Composite Repair

Enterprise Rent-A-Car (Burlington)

For more information, visit i-car.com

The accessibility of mechanical repair information is a critical issue that requires immediate attention.

This was one of the major takeaways from a guest presentation by Tom Tucker, director of state affairs for the Auto Care Association, during the May 4 AASP National Board Meeting in Chicago.

Tucker updated AASP state affiliate leaders on a number of Auto Care Association initiatives currently underway to improve conditions for repairers/service professionals and the public they serve.

On the Right to Repair front, the Auto Care Association is working to guarantee that automakers provide

Tom Tucker of the Auto Care Association

independent facilities with vehicle service/repair information in an appropriate and responsive manner.

Recent compliance testing performed by the Auto Care Association in Massachusetts revealed that Kia and Hyundai have been slow in meeting the cloud-based diagnostic requirements of the agreement. Additionally, the testing uncovered issues with the subscription platforms currently offered by MercedesBenz, Nissan and Volvo. Tucker also noted that General Motors is changing to a VINbased subscription platform, which he noted may not comply with the law. The Auto Care Association plans to pursue continued on page 46

New England Automotive Report July 2018 13

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 14

14 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 15

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

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

For Genuine Honda parts, contact these Authorized Honda dealers.

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

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

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

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

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

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

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

New England Automotive Report July 2018 15

NEAR0718.qxp_NEAR1014 6/18/18 4:34 PM Page 16

16 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 17

2018 AASP/MA ANNUAL

GOLF OUTING SPONSORED BY:

Don't miss your chance to sign-up, this event will sell out!

SPONSORSHIP OPPORTUNITIES: HOLE SPONSORSHIPS: Hole in One Sponsor: $1,500 (1 Available) Hole Sponsor: $200 (10 Remaining)

THAN KS TO OUR

SPON SORS !

COMPETITION HOLE SPONSORS: Closest to the Pin: $500 (1 Available) • Longest Drive: $500 (1 Available)

ADDITIONAL SPONSORSHIPS:

Tournament Sponsor: $2,500 (SOLD OUT)

Raffle Prize Sponsor: $1,500 (1 Available) Team Prize Sponsor: $1,000 (1 Available)

Lunch Sponsor: $500 (SOLD OUT) Dinner Sponsor: $500 (SOLD OUT)

EMAIL admin@aaspma.org or CALL (617) 574-0741 for sponsorship opportunities!

Wednesday, July 25, 2018 Blackstone National Golf Club

227 Putnam Hill Rd., Sutton, MA 01590 10am: Registration (Deadline to register 10:30am) 11am: Shotgun Start 4pm: Dinner & Award Ceremony *Collared shirts only. No regular or colored jeans.

No cutoff or short shorts. No metal spikes.

TO REGISTER, EMAIL admin@aaspma.org or CALL (617) 574-0741

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Pricing:

Single Golfer: $150 Foursome: $600 Pair: $300 Dinner Only: $60 (Pricing includes golf, cart and greens fees, lunch and dinner!)

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 18 T

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

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

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

ToyotaPartsAndService.com

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

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

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

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

18 July 2018

New England Automotive Report

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

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

stirrell@iramotorgroup.com www.iramotorgroup.com

parts@wellesleytoyota.com www.wellesleytoyota.com

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

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

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 19

SMALL PARTS, BIG HEARTS.

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

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

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

MINI OF WARWICK

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

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

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

New England Automotive Report July 2018 19

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 20

COLLISION DIRECTOR’S MESSAGE

Rolling the Dice Rob DelGallo

At 62 years old, I’ve never been busier as a shop owner.

As I write this, my facility is on the Road to Gold through I-CAR and holds certifications for a number of OEMs. We’re constantly making investments into new equipment, and we attend as many industry events as possible. We believe in repairing vehicles based on the OEMs’ requirements and recommendations, and we devote time to locating and utilizing the manufacturers’ repair information. As vehicle safety professionals, we’ve held up our end of the bargain, but we’re not being treated fairly for the commitment we’ve made to serve and protect our customers in the best way possible.

If you know me, then you know I’m referring to the Labor Rate we’re paid in Massachusetts. We’re proud of what we’ve achieved as a certified and highly trained facility, but the fleabag shop down the street with a fan kicking its overspray outside gets the same money I do. On top of that, these shops are allowed to operate without even attempting to reach the minimum standards necessary to perform adequate repairs. That’s even worse than the money issue, since these shops are ignoring their moral obligation to ensure that their customers make it home in one piece. These places put volume over quality, and that’s just wrong.

There has to be some type of reward for those repairers who are willing to step up to the plate to ensure consumer safety. Of course, doing things the right way helps us avoid liability and legal headaches – a major threat in the age of Todd Tracy. But there needs to be a greater incentive for professionalism than simply avoiding getting sued. We need to eat, too.

What happens when the money isn’t there? Let’s have a look: Can’t afford new equipment? Hacked cars.

Can’t pay for qualified help? Hacked cars.

Can’t afford suitable technician training? Hacked cars.

Hack a car in 2018? A lawsuit or something worse.

We can’t roll the dice on our futures – and our customers’ lives – by keeping repair costs down when that could result in an unsafe job. The Labor Rate has always been a problem in Massachusetts, but now it’s a matter of life or death. It’s time to push back and secure our future.

The Labor Rate has been stagnant for the last 10 years while all facets of our business have skyrocketed. How can we sustain investing in equipment and training and paying our techs more – both in the paycheck and for new technology training? We must also think about how steering to shops that keep our Labor Rate down is hurting us. The Labor Rate has got to move up – and only we (you) can make that happen!

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

20 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:39 PM Page 21

New England Automotive Report July 2018 21

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 22

Corporate Sponsors

DIAMOND LEVEL

PLATINUM LEVEL

GOLD LEVEL SILVER LEVEL

BUY FROM YOUR AASP/MA SPONSORS 22 July 2018

For more information or to become a sponsor of AASP/MA please call (617) 574-0741 or email admin@aaspma.org.

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 23

New England Automotive Report July 2018 23

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 24

24 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 25

New England Automotive Report July 2018 25

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 26

[COVER] STORY By Joel Gausten

Evangelos “Lucky” Papageorg is no stranger to the Massachusetts auto body scene. A decades-long industry veteran, he recently began another chapter in his career by becoming the new executive director of AASP/MA. In this special interview, he discusses his history in the Commonwealth collision repair community and his plans to bring the association into a brighter future.

New England Automotive Report: For those who may be unfamiliar with your history in the Massachusetts collision repair industry, what is your experience as an association executive director and industry advocate?

Lucky Papageorg: I have been a licensed auto damage appraiser in Massachusetts since 1990 and have worked in and managed several collision repair facilities since 1987. During my tenure as a body shop manager, I saw the implementation of the Insurance Reform Act of 1988, which brought into play the Direct Payment policies that are currently followed today. It 26 July 2018

New England Automotive Report

was a transition from the old work-completed method everyone was used to and brought major adjustments to how shops got work and did business.

I was the first president of the Norfolk/Suffolk Chapter of what was then known as the Massachusetts Auto Body Association [MABA]. I became more involved with the association; in 1993, I became the full-time executive director while working with Association Management Consulting Resources [AMCR], which was headed by Bill Boutwell. During my time as the executive director of the association, we increased membership and developed 10 strong chapters that met on a regular monthly basis. The chapters were a great platform by which relationships were forged between shop owners that still survive today. It was also a great way to bring information to the membership, their staff and technicians.

There were many great advancements made during those years on behalf of the industry and the motoring public. After leaving the position of executive director, I began working as an

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 27

industry consultant and spent time as the body shop manager for the Herb Chambers companies in Braintree.

I took a break from the industry for a time, but I stayed on top of the issues through the continued involvement with the close friendships I had developed over the years. I then reentered the industry, focusing my efforts as a consultant with shops across the state. My consulting also took on the form of advocating on behalf of consumers attempting to resolve issues with their insurers. That pretty much brings me to where I am now in becoming the AASP/MA executive director.

NEAR: The industry has changed tremendously since your time with MABA. What do you view as the industry’s primary concerns in 2018, and how will you work with the association to address these issues?

LP: As the saying goes, ‘The more things change, the more things stay the same.’ In many instances as a consultant, I have seen the same issues arise repeatedly. One important problem is the amount of reimbursement given to customers from their insurers, which those customers then use to pay a shop’s final invoice. Additionally, technological changes have far outdistanced the ability for some shops to keep up – both from a knowledge position as well as with the equipment that is required to properly repair today’s ‘smarter’ vehicles. The sheer

implement to include value-added programs and services for our members. While visiting the shops, I will perform inperson surveys regarding the issues facing the shop, along with gathering data regarding door rates and who pays for what. The results of these surveys will be compiled and made available through our members-only enhanced website portals. The surveys will also give a better sense to the Board of Directors of the types of services and information the membership is seeking and how the membership would like that information to be provided. Most importantly, I want the shop owners to know that as the executive director, I have firsthand knowledge of this industry and have experienced what they face daily.

They are not an island unto themselves. Through a strong and robust association, their voices will be heard at all levels, including at the Division of Insurance and the Attorney General’s Office and through the media. I will spend time with them as needed to answer their questions and concerns. They will know that we are a statewide association as I will travel to all regions of the state. I plan on being on the road a minimum of three days per week, and a schedule will be posted beginning in this issue of New England Automotive Report as well as on our website. Any member or prospective member will be able to set up an appointment for a personal meeting based on that schedule.

My primary goal will be to make sure the shops, both current members and prospective ones, are aware of the business plan the AASP/MA Board of Directors has begun to implement to include value-added programs and services for our members. volume of information is mind-boggling. The information is out there, but finding it can be very time-consuming and expensive. In addition, there is no guarantee that the research you performed and the equipment you purchased will be current next year or even next week. One of AASP/MA’s main goals is to bring the most current information to its members through educational gatherings – similar to the recent Spring Industry Meeting – as well as through developing portals on its website to assist the membership and its technicians to easily find resources in answering the questions they have on a daily basis.

We will continue to work with vehicle manufacturers to gather and update our members of changes as they become available. As with the Spring Industry Meeting featuring guest speaker Todd Tracy, AASP/MA will focus on the issues that can drastically affect our members in all regards, along with the liabilities they face and how to best protect themselves.

AASP/MA will also continue the very important role of being the industry’s eyes and ears legislatively, safeguarding against legislation that could have an adverse effect on our members and their customers.

NEAR: You are planning to visit with shops throughout Massachusetts in the months to come. What are your goals for these visits, and what can the shops expect from these conversations?

LP: My primary goal will be to make sure the shops, both current members and prospective ones, are aware of the business plan the AASP/MA Board of Directors has begun to

NEAR: In your mind, why is it important for a collision repair facility in Massachusetts to join AASP/MA? What do they get from being a member that they won’t be able to achieve on their own?

LP: As I touched on earlier, it is far too easy to get the feeling of ‘being the only one’ who is facing a particular issue or asking for a specific item/operation reimbursement on an estimate, particularly when you are told that is the case on nearly a daily basis by some appraisers. By joining AASP/MA, they strengthen their voice and the voice of the industry. A robust association will be a force to be reckoned with. A robust AASP/MA will benefit each and every one of its member businesses and – even more importantly – their customers.

NEAR: What are your greatest hopes for your new role with AASP/MA? LP: To have AASP/MA become more recognized as the premier collision repair association in Massachusetts. My goal – and that of the Board of Directors –is to become the ‘go-to’ association for information regarding all aspects of the collision repair industry for collision repairers and the motoring public. That information will include up-to-date changes in technology, legislative and regulatory monitoring and consumer advocacy. I am sincerely excited for what the future has in store for AASP/MA, its members and the industry as a whole.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report July 2018 27

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 28

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: Kelly Nissan-Infiniti 155 Andover Street, RTE 114 Danvers, MA 01923 Main: 978-774-1000 Direct: 866-883-7093

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

28 July 2018

New England Automotive Report

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

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

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 29

New England Automotive Report July 2018 29

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 30

[OEM CERTIFICATION] PROFILE For the first installment of our latest regular feature, we sit down with Audi of America Collision Programs Manager Mark Allen for a discussion exploring the structure and requirements of the company’s current shop certification program. Similar conversations with other automaker certification program representatives will be featured in future issues of New England Automotive Report.

Audi of America, Inc. do we need five or 10? This is where we need to start refining our program.

Mark Allen of Audi of America, Inc. New England Automotive Report: How many shops do you have participating in your certification program in New England and nationally overall?

Mark Allen: We have 11 in New England and 194 nationally.

NEAR: In terms of capacity goals, does Audi have a cap in mind, or is it a matter of adding as many qualifying shops as possible?

MA: Our goal is two-fold. One, we want every dealership to have a relationship with an Audi-authorized repairer. Once we’ve established that, we’ll then ask ourselves, ‘Okay, are we giving enough good answers to our customers in a given area?’ For example, are the one or two shops that are covering Boston enough, or 30 July 2018

New England Automotive Report

NEAR: With any new evolution in repair procedure, we see companies introduce products that they will sometimes market as one-size-fitsall applications. In terms of Audi, what goes into making a piece of equipment certified? Why must a certified facility keep that equipment in mind and not look into other pieces that are not certified at this time?

MA: Great question. The equipment that we specify is what is used when we developed the repair procedures.

By the time the new C-BEV comes to market in early 2019, these cars have already been crashed in Germany.

They document the repair process; in that documentation, they say, ‘We used this welder; we used this rivet gun.’ They go down the list of equipment, adhesives and everything else. When they go back and crash the car again, they check to see if the structure performs the way that it was intended to protect the occupants in the first accident. If it does not, then they look at it from every aspect of engineering, including, ‘Was the weld done properly and appropriately?’ and everything that interacts with the structure. It’s super-important,

because that’s what gives you a repeatable outcome. We say to use an Audi-specific riveter; to say to use a 10-year-old gun from Jaguar is ludicrous because they’re different strengths. They’re not going to be able to give you the attachment that’s appropriate to add rigidity to the structure.

We go to this length, but we also share our tool list with other manufacturers. Everybody in the house of Volkswagen shares our selfassessment list, but then we share it with Honda, GM and Jaguar Land Rover and say, ‘Okay, these are the tools that we use. If they’re applicable to your program, please tell us.’ We make up a matrix that the shop can look at and say, ‘Okay, this is going to work for these manufacturers going forward.’

NEAR: Let’s talk about training. The phrase “A tech” seems to be somewhat subjective in the industry.

How does Audi define “A tech,” and what does that individual have to possess in order to reach and maintain that designation?

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 31

New England Automotive Report July 2018 31

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 32

[OEM CERTIFICATION] PROFILE MA: We’re not looking to go to the minimum standard; we are looking to go to the maximum standard.

We’re not looking for your new guys coming in. We announced last year that you have to be I-CAR Gold.

When they come to us to train, this is where we’re tremendously different than a lot of the programs – especially for the higher-volume vehicles. When you come here, you go through the repair procedures and disassemble an Audi body and build up parts for whatever repair you’re going to do. You’re going to demonstrate those capabilities here in the training facility, and then you’re going to go back and apply them to the vehicles that come into the shop. It’s not online; it’s not a bunch of questions asking you what you know. It’s physically doing this.

If you think about it, it makes a lot of sense. Technicians learn differently.

We try to cater to those folks to make sure they’re capable of doing their jobs. There is no ‘B tech;’ you’re going to be an‘A,’ and ‘A’ is for Audi.

NEAR: When a shop becomes certified, what checks and balances are in place to ensure that the facility maintains the standards that led to them being certified in the first place?

MA: We monitor training through our learning management system as well as through I-CAR’s learning management system. We track equipment; when we do our audits, we go down to the level of recording serial numbers. In my past with another manufacturer, we would have equipment show up at different locations on different days. We knew that it wasn’t being purchased; it was being borrowed for an audit. We’re 32 July 2018

New England Automotive Report

very much on it. We want to see that the equipment is working. Does the welder work? Was the bench certified and checked? Is this stuff in good condition? That’s a yearly thing, but we monitor purchases and movements throughout the year.

We’re now getting information from Enterprise Rent-A-Car so that we’re looking at things like days’ wait so that we can help set the expectation for our customers. We’re looking at usage of the repair procedures. Are you going in on a regular basis and looking at those procedures to see that you’re repairing the cars the right way? Obviously, we can’t stand there and watch every car get repaired, so there are some back-end things that we’re developing to further refine that. Of course, we’re also watching the CSI [customer service index].

MA: Yes, plus we charge what basically breaks down to $300 a day per tech.

NEAR: What kind of time and monetary investment is needed to join the certified program?

MA: Because we have two tiers – hybrid and ultra-advanced lightweight materials – we do have restrictions on parts. There’s a checks-and-balances system that we have where it has to be entered into a vehicle tracker. Our parts logistics people look to see if you’re a hybrid or ultra shop. If you are, they will release the part. If you’re not, they send a note back to the dealership saying, ‘Sorry, we cannot release these parts. The shop is not on the program; they haven’t been trained to do the repairs.’

MA: With the I-CAR decree, it does get longer because so many shops are not I-CAR Gold. Once you get that out of the way, the average is somewhere around eight months. In the extreme, we’ve had shops that are I-CAR Gold and have done their homework, and they were ready to come to our training in a matter of a month. Depending on how you’re equipped, the monetary investment could be $100,000 to $300,000. It really just depends on what you start off with.

NEAR: The training has to take place in either Ashburn, Virginia or ontario, California, so shops need to keep travel, lodging and food expenses in mind as well.

NEAR: How often do you require retraining?

MA: If you’re a shop that’s been with us forever and you’ve done all of your training, you’re going to need to do whatever new models come in.

Usually, we give you six months to get that done. We give our schedules out at six-month intervals, so we give you half the year to do that.

Obviously, we prefer to get everyone in as soon as possible, because we try to get that out before the vehicle’s released.

NEAR: What is Audi’s position in terms of parts restrictions in the certification process?

Audi encourages shops that are interested in pursuing certification to contact their local dealership for more information.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NEAR0718.qxp_NEAR1014 6/18/18 4:39 PM Page 33

New England Automotive Report July 2018 33

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 34

Genuine Replacement Parts For the Road Ahead.

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

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

Long Subaru 7 Sutton Rd., Webster, MA 01570 800-982-2298 Fax: 508-879-1212 tschube@longauto.com 34 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 35

Unsurpassed Quality. Genuine Hyundai Parts.

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

Buy Hyundai Parts.

For Genuine Hyundai parts, contact an Authorized Hyundai Dealer.

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

New England Automotive Report July 2018 35

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 36

[INDUSTRY] UPDATE by John Walczuk, ZB Negotiations

Diminished

Value:

Vehicle owners Lose Again — Part 1 of 2

We are seeing a trend where vehicle owners are at the mercy of insurance carriers who formulate their own interpretations of laws and rules. Some states are also guilty in this regard, as they adhere to archaic laws and possible interpretations that were established when a horse and buggy was the main form of transportation. While any vehicle that is involved in an accident might have diminished value (DV), it is important for claimants to understand that such claims can only be pursued on a third-party basis.

Regardless of the source, the vehicle owner – and possibly other entities – are impacted with financial losses when their vehicle has been in an accident.

This is evident when the vehicle owner attempts to trade or sell a vehicle that has a negative history. In those cases, many automotive dealerships will not accept it as a trade-in, will not try to sell the vehicle in their used car facility and (if accepted on trade) will opt to sell the car at a wholesale auction. This all comes with a direct loss to the consumer and 36 July 2018

New England Automotive Report

can often result in an offer of 20 percent less on trade-in than a vehicle without accident history.

In pursuing diminished value claims, one of the most frustrating methods used by insurance carriers is known as the 17C formula. This was established by the Georgia Supreme Court in November 2001 and was used as the method to settle a class-action suit involving 25,000 claimants. The formula assumes that all damaged vehicles have lost resale value; however, it limits the loss to 10 percent of the market value on the date of loss and then reduces the maximum 10 percent based on the degree/type of damage (as well as current mileage). Remember, this was based on a class-action suit that pooled 25,000 vehicles regardless of age, model or purchase price. Consider a onemonth- old vehicle that was purchased for $60,000 dollars with a repair cost of $30,000 dollars and noted frame damage. A certified vehicle appraiser might determine that this vehicle has a 35 percent diminished value, or $17,150

dollars. The 17C formula would likely be less than $6,000. While the example is extreme, it provides one of the obvious issues with using the formula. Two national carriers have adopted this method on all their diminished value claims and point to Georgia as the basis or give no justification for its use.

The State of New York falls into what we will call the “archaic ruling” category. Possibly 100 years ago, an appellate court decision with respect to diminished value might have had merit, but it lacks logic or application today.

One-hundred years ago, there were limited vehicle manufacturers, while today there are many (as well as large numbers of models available). The court’s decision to limit diminished value claims to only appreciating assets lacks merit today and only benefits the insurance carrier. Court rulings should have understandable merit and be logical and understandable. Today, the average vehicle owner in New York State cannot find merit or logic in this outdated court ruling. One can accept

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 37

Wheel Collision Center

Excellence in Wheel Sales and Repair

Patent assures

100% WHEEL INTEGRITY • From $75/wheel • Sales/Exchange • Superior Workmanship

• Tested Process • Guaranteed Lifetime Warranty!

NEW 2018

ONLINE OEM WHEEL CATALOG that vehicles do depreciate or lose value over time in the normal course of use. However, accidents tend to accelerate that depreciation. The onetime event of an accident is the cause behind the accelerated loss in resale value and cannot be attributed to normal wear. This is especially true when the vehicle owner who purchases the vehicle has a history of replacement every three years and has no recourse but to absorb the excess loss. The insurance carrier who denies the diminished value claim based on this archaic court ruling just points to the court decision, and replies, “We are following the law.” The question we should be asking ourselves is, “What is right?” As one can only pursue diminished value claims against thirdparty carriers whose insureds are at fault, the innocent vehicle owner is again expected to bear the burden of another negligence based on this outdated ruling.

Look for Part 2 of this story in next month’s New England Automotive Report.

Stocking THOUSANDS of refinished wheels!

7286 Penn Drive, Bath, PA 18014

www.wheelcollision.com

1.800.292.RIMS (7467)

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

*This article is not legal advice and may not reflect the opinions of AASP/MA and Thomas Greco Publishing.

John Walczuk is the director of client services for ZB Negotiations. The company specializes in helping vehicle owners obtain fair market settlement offers for their totaled vehicles. John can be reached at John@ZBLLC.net or (516) 364-0713.

New England Automotive Report July 2018 37

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 38

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

Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.

•

Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.

•

Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.

•

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers.

No other supplier comes close.

Helping you do business is our business. Order Audi Genuine Parts from these select dealers.

Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841

IRA Audi 105 Andover Street Danvers, MA 01923 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.iraaudi.com

Audi Shrewsbury 780 Boston Turnpike Shrewsbury, MA 01545 508.581.5880 Fax: 508.581.5880 email: parts@wagnermotors.com www.audishrewsbury.com

Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com

Mattie Audi 80 William S. Canning Blvd.

Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com

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

38 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 39

WE BRIDGE THE GAP We are different!

We provide a unique level of claims settlement services. This level of service is not offered by other vendors and helps to ensure positive valuation settlements.

Our company goes the extra mile to ensure your customer is satisfied. We will evaluate the insurance carriers initial offer AT NO COST, and if need be we will work as your customers agent and negotiate directly with the insurance carrier.

WHAT CAN WE DO FOR YOU? • Total Loss • Diminished Value • Loss of Use

CALL TODAY

(516)364-0713

zbllc.net

Let us help make your customer financially whole.

New England Automotive Report July 2018 39

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 40

[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

Certifying that Repairs Have Been Made Back in the Dark Ages, before some of you reading this article were born, Massachusetts had a unique system for settling insured auto damage claims. In the 1980s, insureds making a claim under collision or comprehensive coverage were required to have all repairs made to their damaged vehicles before their insurer had to make payment. When repairs were completed, the claimant had to return a “Completed Work Claim form” to their insurer, certifying that all repairs had been made.

Within seven days of receipt of the form, the insurer then had to pay the claim in full (less any applicable deductible) either to the claimant or to their designated repair shop. If the form was not submitted, then the insurer was obligated to pay only for the decrease in value of the vehicle resulting from the damage.

Because of the way the system worked, and because insurers had the right to reinspect repairs within the seven-day payment window, almost everyone got their damaged vehicles repaired in full. The consequences for not making repairs were just too severe, and there was no upside to having less-than-full repairs made. Knowing how the system worked, repair shops also became adept at getting insurers to 40 July 2018

New England Automotive Report

pay the full cost of all needed repairs. Although insurers were the ones that first pushed for the Completed Work Claim System, they ended up hating it. They found that they were paying much more in claims than they had anticipated because too many people were actually getting full repairs made.

Things changed drastically in the late 1980s, when a push by insurers led Massachusetts to adopt the current “Direct Payment” claims system. Under the Direct Payment system, insurers were (and still are) supposed to pay claimants up front for the full actual cost to repair their vehicles back to pre-accident condition, less any applicable deductible. Theoretically, insureds could then take that payment and shop around and try to make the best deal that they could to have repairs made at a registered Massachusetts auto damage repair shop. (Of course, this assumed that insurers were going to pay for all necessary repairs up front.) Insureds could also choose to not make repairs or to only make partial ones.

If insureds could negotiate a good deal with a shop, or if they had no repairs or only partial repairs made, then they could pocket the excess payment or legally pocket their deductible. (Under the law,

claimants still have the right to refuse a Direct Payment check and to use the old Completed Work Claim form system instead - but almost nobody does. And if someone does try to do this, most insurers don’t know what to do.)

Regulations regarding the operation of the Direct Payment system became effective in 1989.

One important aspect of the new regulations was that although insured claims got paid up front, claimants now had to submit a Repair Certification form to their insurer when repairs were completed.

What is a Repair Certification Form?

The governing regulations mandate that insurers give claimants a Repair Certification form when the insurer first provides a claimant with an appraisal of repair and a check for payment for those repairs.

The form is required to include, at a minimum: an explanation of the claimant’s rights and obligations with respect to the form; certification that the repair work has been completed; identification of the repair shop or individual who performed the work; and

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 41

an agreement that the claimant will allow the insurer to reinspect the vehicle within a reasonable period of time after receipt of the form.

The claimant is required to return the Repair Certification to the insurer when repairs are completed.

The Consequences of Not Making Repairs or Not Returning the Form If repairs are not made or if the Repair Certification form is not returned, then the insurer is required to reduce the insured actual cash value (ACV) of the vehicle by the amount of the claim payment check, plus any applicable deductible. That means that if there is a subsequent unrelated claim for the vehicle, then the insurer will only pay a maximum amount for repairs or for a total loss up to the calculated diminished ACV. Even though the insured ACV of the vehicle is reduced, the claimant’s insurance premiums are not; they continue to be based on the ACV of a

completely repaired or undamaged vehicle.

A claimant who has had repairs made but has not returned the form has the right to reverse this consequence by submitting the form to the insurer or any successor insurer at a later date. If there is a loss before the form is later submitted, then the insurer is supposed to pay (at most) only the ACV less the amount of its prior claim payment check and less the applicable deductible.

Since the inception of this system, it has been quite common for claimants to fail to return the Repair Certification form, even when all repairs have been made. Many claimants just do not understand the form or forget to return it.

Recognizing that this causes an unfair result for which they would be incurring the wrath of a large number of their customers, insurers generally have allowed claimants who have repaired their cars to still

submit the form - even after a subsequent loss - and still get paid up to the actual ACV of their vehicles.

Although it is questionable whether the regulations as written allow this, the reality is that insurers have generally recognized the necessity of handling subsequent claims in this manner, and no objection has been raised by the Commissioner of Insurance.

Problems with Repair Certification On its face, the regulations seem clear and seem to make sense in requiring that an insurer reduce the insured ACV of a vehicle if repairs are not made. But in the real world, there are many troubling questions with less-than- clear answers regarding the operation of the system.

What repairs are we talking about? The regulations require the claimant to certify that “the repair work” has been completed but do not specify what repair work. Is it

Prompt & Dependable Delivery

Experienced and Professional Parts Team

Ask about our Competitive Prices

Parts Line:

Parts Line:

Parts Line:

Fax Line: 508.699.4761 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00

508.699.4700 270 East Washington St. North Attleboro, MA 02760

www.firsthyundai.com

774.888.6666

292 William S. Canning Blvd.

Fall River, MA 02721

www.firstfordma.com

508.316.8410 280 East Washington St. North Attleboro, MA 02760

www.firstchryslerma.com New England Automotive Report July 2018 41

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 42

[LEGAL] PERSPECTIVE the repair work on the insurer’s appraisal? On the repair shop’s appraisal? On the shop’s repair order? On the shop’s final bill?

Insurers take the position that “the repair work” means the work that they have written, as itemized on the insurer’s appraisal and supplemental appraisals. Further, when insurers conduct reinspections, they usually note if any work to the vehicle was not done in the manner that they wrote it. But that’s not what the regulation says it just says “the repair work.” It could be argued that the repair work written by the repair shop or shown on their final bill should control what work is done. Insurers do not buy this argument, but I am not sure what a court would do if faced with the question.

What if only some repairs are made? Under the Direct Payment claims system, claimants are entitled to make only the repairs that they choose. Nevertheless, in reading the regulation, it appears that an insurer is required to reduce the insured ACV of a damaged vehicle by the full amount of its payment to the claimant (plus any applicable deductible) when only some repairs are made.

However, insurers recognized early on that this would be an untenable result that would have angry claimants beating down their doors trying to strangle claims adjusters. Instead, the general practice has been for insurers to reduce the insured ACV of a vehicle only by the cost that they attribute to those particular repairs that were not performed. Again, the Commissioner of Insurance has agreed to allow this.

What if different repairs are made? This is the most difficult question to answer, and it is one that leads to many more questions.

If repairs are supposed to be made according to the insurer’s appraisal but are made in a different manner, is the insurer required to reduce the insured ACV of the vehicle 42 July 2018

New England Automotive Report

Massachusetts law requires claimants to always submit a Repair Certification form to their insurer when covered repairs are completed. by the full cost of all of its specified repairs that were performed differently? If a part is repaired rather than replaced, might that still maintain equivalent value for the vehicle? If it doesn’t, is there some added value because of the repair?

Shouldn’t an insurer be required to always consider offsetting added value to the ACV because of the repairs that actually were made?

What if a better repair is made, such as if a more expensive new OEM part is used rather than the untested after-market part specified by the insurer? What if additional procedures are used by the repair shop, such as scanning a repaired vehicle even though the insurer has refused to pay for it? In these cases, maybe the insured ACV of the vehicle should be increased even though there is no provision for doing so in the regulations.

What if a portion of a claim payment is used to repair unrelated old damage rather than some of the new damage, perhaps keeping the total cost of repair the same by repairing a newly damaged part rather than replacing it as specified by the insurer? Should the insured ACV be decreased by the work not done as specified by the insurer but then concurrently increased by the value of the additional repairs? It seems to me that it should be, but I have doubts that insurers would agree with me.

What should a claimant do if lesser, different or better repairs are made? In these situations, the

claimant is still required to submit a Repair Certification form, and they are still required to make a truthful certification. Yet, in my experience, Repair Certification forms usually do not have a place to let the insurer know what repair work was done.

The only relevant statement on the form is often something like, “I certify that my damaged vehicle has been repaired” or, “I certify that the repair work has been completed in accordance with our appraisal.”

In my opinion, the way for a claimant to handle this is to handwrite a change on the form to the effect of, “I certify that my damaged vehicle has been repaired according to the repair bill attached,” and to attach their final accurate repair bill when returning the form. I am not sure what an insurer would do when they receive this, but I think that this is the proper way for claimants to protect themselves.

Conclusion Massachusetts law requires claimants to always submit a Repair Certification form to their insurer when covered repairs are completed.

Before doing so, however, the claimant and their chosen repair shop should understand - as much as they can - how the repair certification process works.

Everyone involved should understand their rights, their obligations and the difficult unanswered questions that are inherent in the system.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 43

New England Automotive Report July 2018 43

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 44

44 July 2018

New England Automotive Report

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 45

Get it right from the source.

Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs.

When you need fascias, grilles, headlamps, wheels or any other Ford Motor Company Genuine Part, call your local wholesaling dealership. They’re a great souce for technical and repair information as well. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership.

Contact these Ford or Lincoln Mercury dealers for all your parts needs: Imperial Ford 6 Uxbridge Road Mendon, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 E-mail: johnl@imperialcars.com First Time Customers call John

Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com

Sentry Ford Lincoln 4100 Mystic Valley Parkway Medford, MA 02155 Parts: 617-506-6309 Fax: 781-874-9934 E-mail: pnewell@sentryautogroup.com

© 2018, Ford Motor Company New England Automotive Report July 2018 45

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 46

[NATIONAL] NEWS continued from page 13

action under a Right to Repair statute against non-complying companies if these problems are not addressed.

“While we have the agreement, we are concerned that some of the manufacturers are not fully in compliance. There are definitely some issues with how some of the vehicle manufacturers have approached the MOU [Memorandum of Understanding] that need to be worked out.”

Members of the Auto Care Association include manufacturers and distributors, parts stores, service/repair shops, importers, business services, manufacturers’ reps and more. Members represent all major product segments of the aftermarket industry (automotive, heavy duty, engine rebuilding, trim, paint and body, electrical, tools and equipment and other specialized sectors).

More information is available at autocare.org.

N

E

W

E

N

G

L

A

N

D

AUT M TIVE

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

ADVERTISER’S INDEX Accudraft Paint Booths ........................OBC Audi Group ............................................38 Audi Shrewsbury ....................................43 Axalta Coating Systems ............................6 Best Chevrolet/Best CDJR ......................IFC BMW Group ..................................................14 BMW/Mini of Warwick ............................19 Colonial Auto Group..................................4 Empire Auto Parts ..................................37 Enterprise ..............................................29 First Chrysler-Dodge-Jeep-Ram ..............41 First Ford ..............................................41 First Hyundai ..........................................41 Ford Group ............................................45 Honda Group ..........................................15 Imperial Ford..........................................45 Ira Subaru ..............................................13

46 July 2018

New England Automotive Report

Kelly Automotive Group ........................IBC Kia Group ..............................................33 Linder’s, Inc. ........................................46

Hyundai Group ......................................35 MASSACHUSETTS

Ira Toyota of Danvers ..............................12

Long Automotive Group ............................9 Mazda Group ..........................................16 McGovern Chrysler Jeep Dodge Ram ..........11 Mercedes-Benz of Shrewsbury ................43 Mopar Group ..........................................25 Nissan Group ..........................................28 Polyvance ..............................................39 PPG ........................................................3 Robertsons GMC Truck ............................29 Sarat Ford Lincoln ..................................44 Sentry Group ..........................................24 Subaru Group ........................................34 Tasca Group............................................23 Toyota Group ..........................................18 Volvo Group ............................................21 VW Group ..............................................31 Wagner BMW of Shrewsbury ....................43 Wagner Kia of Shrewsbury ......................43 Wellesley Toyota/Scion ............................44 Wheel Collision Center ............................37 ZB Negotiations ......................................39

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 47

NEAR0718.qxp_NEAR1014 6/18/18 4:35 PM Page 48