New England Automotive Report July 2023

Page 20

www.grecopublishing.com Is the Industry Ready for THE EV BOOM? Shop of the Future: A Q&A WITH AASP/MA PRESIDENT KEVIN GALLERANI Is Inflation Good for YOUR BODY SHOP? PART 2 Serving the New England Collision and Mechanical Repair Industry July 2023 U.S.A. $5.95
"Your Massachusetts Auto Body Association"

COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155

Phone Number: 781-395-3025

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

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 & mechanical parts • Daily UPS shipping available • Servicing Massachusetts, Rhode Island and New Hampshire • We build our reputation on providing you the best SERVICE!! CITY SIDE SUBARU 790
Phone
FAX
NORTH
757
Lunenburg,
Phone
FAX
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
WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA.
Phone Number:
FAX Number:
Pleasant Street Belmont, MA 02478
Number: 617-826-5013
Number: 617-489-0733
END SUBARU
Chase Road (Rte 13)
MA 01462
Number: 877-289-0053
Number: 978-582-9843
COLONIAL
01420
978-345-5532
978-345-1152 COLONIAL VOLKSWAGEN 89 Turnpike Road (Rte. 9) Westborough, MA 01581 Phone Number: 888-322-6570
FAX Number: 781-475-5063 COLONIAL HONDA OF DARTMOUTH 225 State Road (Rte. 6) Dartmouth, MA. 02747 Parts Direct: 508-997-2919 FAX Number: 508-730-6578 NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841 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 CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213 COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte 6) Dartmouth, MA 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801 WE WANT TO EARN YOUR BUSINESS! COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728

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

Volkswagen of Hartford

133 Leibert Road

Hartford, CT 06120

Direct Parts: 860-543-6012

fax: 860-728-4408

email: ebautista@vwofhartford.com

Mastria Volkwagen

1619 New State Highway

Raynham, MA 02767

Toll Free: 888-581-1146

Direct Parts: 508-802-9955

fax: 508-802-9966

email: vwparts@mastria.com

www.mastriavw.com

Balise Volkswagen

525 Quaker Ln.

West Warwick, RI 02893

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

www.BaliseWholesaleParts.com

Quirk Auto Dealers

115 E. Howard St.

Quincy, MA 02169

Toll Free: 877-707-8475

One Call, One Truck for 14 Brands!

Wholesale Parts

New England Automotive Report July 2023 3
“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2023 Volkswagen of America, Inc.
4 July 2023 New England Automotive Report

DEPARTMENTS

EXECUTIVE DIRECTOR’S MESSAGE

6 | Ahhh, Summertime!

LOCAL NEWS

10 | ADALB Reviews One Complaint and “Other Business” in Public Session

14 | AASP/MA Enjoys Successful Chapter Meetings

14 | Mark Your Calendars! Join AASP/MA on the Green in September

VENDOR AFFINITY PROGRAM SPOTLIGHT

18 | Axalta Coating Systems

LOCAL FEATURE

20 | Shop of the Future: A Q&A with AASP/MA President Kevin Gallerani

INDUSTRY ADVICE: ASK MIKE

34 | If the EV Boom Is Real, Is the Industry Ready for It? with Mike Anderson

24 | Is Inflation Good for Your Body Shop? Part 2

7 | AASP/MA MEMBER APPLICATION

15 | AASP/MA ANNUAL GOLF OUTING FLYER

19 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS

30 | “On-the-Spot” Blending Options: CCC Responds to SCRS Blend Study

New England Automotive Report July 2023 5
July 2023 • Volume 21, No. 7 ALSO THIS ISSUE
CONTENTS
COVER STORY
NATIONAL FEATURE

Ahhh, Summertime!

Summertime is typically a time of year folks look forward to. For most, it is a time to kick back, relax and enjoy. For those of us in the collision repair business, it is a time of year that can be a bit unsettling and worrisome, especially after a winter that was unusually low in snowfall totals and other foul weather that typically leads to an increase in collision losses. When we come out of a winter which leads to a shorter backlog of work and future appointments, we have the tendency to change up what we have been doing in our business, but not always in a good way. What do you have planned for your shop in the next few months? Here are a few suggestions that could prove to be very beneficial and help you set the foundation for great success in the future.

Just as important as catching your breath when there’s a bit of a lull is using the “downtime” for some quality self-assessment to strategically prepare your business for greater success in the future. First on your list should be an assessment of the items we tend to complain about the most (and have the absolute power to change), but tend to fear the most to actually take action to correct. This statement does NOT apply to everyone. Obviously, this is a matter of the rates each shop chooses to charge for the work they perform and based on one’s own business expenses. As mentioned, this does not apply to everyone because more and more shops have been evaluating the effects of the historic

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

rise in CPI we have experienced and have started adjusting their rates accordingly. These same shops have made the independent business decision, when insurance appraisers fail to negotiate based upon that individual shop’s posted labor rates, to charge the vehicle owner a copay, representing the failure of their insurer to fully indemnify them by covering the full cost of repairs.

Day in and day out, shops have been proving to themselves that they can get paid fairly and properly for the work they perform. Through an educational discussion with their customers, they know they can justify why a copay has become necessary. They prove to themselves that their customers understand and are willing to pay for a quality repair, even if their insurer will not cover the full cost. These same customers, armed with the knowledge provided to them by their shops, are successful in obtaining reimbursement from their own or the third-party insurer in many instances. Consider using the “summer lull” to fine-tune your salesmanship and that of your staff to promote safe professional repairs performed by well-trained and equipped technicians versus having your customers be steered to a shop that has elected to sign a contract potentially giving away some of the customer’s rights to the insurer regarding the cost of safe repairs. You may even want

continued on pg. 40

ZONE

John Studer

Dan Wenzel

Affiliate Director

Al Correia

Brent Dabrosca

C.J. Ellis

Jimmy Kelsey

Russ Oagles

Begin

AASP/MA Executive Director

Evangelos “Lucky” Papageorg

Andrew Potter Brian Stone

Affiliate Directors Mike Nawrocki

McColl Rhodes

AASP/MA Administrative Assistant

Alana Quartuccio

ZONE 4 Kevin Kyes

Dean Luther

Jeff White

Affiliate Directors

J.R. Force

Simon Frietas

Jayce Mitchell

Gregg Tanguay

Scott Varney

P. O. Box 850210 Braintree, MA 02185 617-574-0741

6 July 2023 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 © 2023 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
Director At-Large
Director At-Large Dan Wenzel
Legislative
Ray Belsito Collision
1 Mike Penacho
Doug
ZONE 2 Ray Belsito Brenda Lacaire Tom Ricci ZONE 3 Gary Cloutier
EVANGELOS “LUCKY” PAPAGEORG
EXECUTIVE DIRECTOR’S MESSAGE

Membership Application 2023-2024

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

� Grant writing/training

� Google presence optimization � All five

PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION

Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) 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 2023-2024 as provided for in this contract.

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

RECOMMENDED BY:__________________ FROM BUSINESS NAME: ___________________

New England Automotive Report July 2023 7 AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741
12/22
Fax: 973-235-1963 Email: admin@aaspma.org REV
REV 06/23
8 July 2023 New England Automotive Report 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. GENUINE NISSAN PARTS MAKE ALL THE DIFFERENCE. 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 July 2023 9

ADALB Reviews One Complaint and “Other Business” in Public Session

The most recent meeting of the Auto Damage Appraiser Licensing Board (ADALB) on May 23 focused primarily on “other business,” though the second half of the public session provided time for a public review of a complaint (2022-44) brought against an independent appraiser, Thomas Newman, who was accompanied by Metropolitan Appraisal Services Owner Larry Kostant.

The complaint alleged that the appraiser would only pay $21 for a pre- and post-scan, despite the shop providing a sublet invoice showing the actual cost of the scans. Kostant argued, on behalf of his appraiser, that the invoice was presented prior to the post-scan being performed, causing Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) to point out that it’s “commonplace to write a sheet before repairs have been completed. Underneath the direct repair program, your responsibility is to write a sheet for the proper repairs for the car.

“Further, you commented, ‘I don’t deal with dollars,’ but the CMR says it’s your responsibility to negotiate the cost of repairs,” Johnson added. “If you’re only negotiating hours, how are you attributing that to the cost of repairs?”

Kostant suggested that his company pays based on database times, and in response, Board member Rick Starbard (Rick’s Auto Collision; Revere) pointed to the Database Enhancement Gateway and the thousands of inquiries that have resulted in changes to database times. “Those times are not etched in stone because they’re not based in reality.”

Observing that the appraiser wrote for all the operations, though at a lesser amount than the shop requested, Board member Peter Smith (MAPFRE) asked if any operations by the shop went unaddressed. Newman acknowledged that he denied the shop’s charge to blend a damaged panel since the panel was damaged prior to the accident in question and therefore not covered under the claim.

When Chairman Michael Donovan questioned the total amount of money in dispute, Kostant informed him that the dispute was for approximately $400 on a $10,000 estimate, further insisting that he would have approved the additional value if the shop owner had contacted him instead of filing a complaint.

“To me, there was a failure to negotiate. The shop submitted a sublet slip for $95, but the appraiser came back with 0.5 hours which equals $21; the shop wasn’t trying to negotiate in hours, but the appraiser chose to convert it to tenths of hours. That seems to be a very clear failure to negotiate,” Johnson expressed, making a motion to sustain the complaint; however, he failed to get a second.

Board member Samantha Tracy (Arbella Insurance) motioned to dismiss the complaint, and Smith seconded it. Starbard agreed to dismiss the complaint under the condition that Kostant promised to make the customer whole by paying the difference charged as a copay as logged in the complaint.

In “other business,” addressed earlier in the meeting, Starbard raised a concern with independent appraisers writing for multiple shops, including unregistered shops, with the Board discussing the lack of communication between state and municipal departments of licensure. Johnson also reiterated his concerns from the previous meeting related to insurers’ inability to deem a vehicle a total loss prior to an inspection.

Once the public session concluded, the Board retired to Executive Session to continue its review of the complaints they agreed to proceed on in order to determine whether the complaints will be dismissed or if they will proceed to the next step of the ADALB’s complaint procedures.

The ADALB is scheduled to reconvene on July 12. Don’t miss detailed coverage of the May meeting, only available in the June issue of the Damage Report members only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the May 23 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB0523

10 July 2023 New England Automotive Report [LOCAL] NEWS
MASSACHUSETTS Boch Chevrolet 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 Parts Line: 781-762-9210 Toll Free: 800-559-9210 bchwholesale@boch.com Balise Chevrolet Buick GMC 683 E. Columbus Ave. Springfield, MA 01105 Toll Free: 800-992-6220 Fax: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands! KEEP IT GENUINE INSIST ON GENUINE GM PARTS Contact the following dealers for all your Genuine GM Parts needs:

Co-celebrating decades of creating chemistry between two industry leaders

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.

New England Automotive Report July 2023 11 New England Automotive Report February
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 Fax: (973) 279-9030 631 Clifton Ave., Toms River, NJ 08753 Phone: (732) 797-3942 Fax: (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
LOMBARD COLLISION REPAIR SYSTEMS LE EQUIPMENT INC. THE LEADER IN COLLISION REPAIR EQUIPMENT SERVING THE ENTIRE EAST COAST, FROM MAINE TO MIAMI! VIRGINIA LOCATION Serving Virginia, Delaware, Maryland, N. Carolina, S. Carolina, and Georgia Lombard Equipment, LLC 2102 N. Hamilton St. Richmond, VA 23230 (833) MIG-WELD MASSACHUSETTS LOCATION Serving all of New England Lombard Equipment, Inc. 157 Mendon St. Bellingham, MA 02019 (800) 422-PULL FLORIDA LOCATION Serving all of Florida and Georgia Lombard Equipment South, LLC 10750 Endeavour Way Seminole, FL 33777 (888) 440-WELD Welding Systems | Frame Machines | Riveting Systems | ADAS Calibration Dent Pulling | Dust Extraction | Sanitization | Training | Service | Support & MORE! For over 30 years, Lombard Equipment has been serving the collision repair industry. Today, with an exciting product line and a support staff that is unmatched, we’re here to help make buying and owning a collision repair system the best experience possible. CONTACT US TODAY TO GET STARTED!

AASP/MA Enjoys Successful Chapter Meetings

The Alliance returned to in-person chapter meetings across the state this spring, with the last two chapter meetings taking place on May 10 in Zone 1 and May 24 in Zone 2, attracting over 150 attendees at all four meetings.

These recent meetings served to provide updates on AASP/MA’s legislative agenda, including its labor rate reimbursement bill and

movements to reform the Auto Damage Appraiser Licensing Board (ADALB), as well as an update on the Division of Standards (DOS) Notice to ensure attendees understand what it really means to them, especially if they are considering or charging a copay.

For more information on the next round of chapter meetings, visit aaspma.org/events.

AASP/MA’s chapter meetings provide an opportunity for members and non-members to interact with one another and receive valuable information about what’s going on in their industry.

Mark Your Calendars!

Join AASP/MA on the Green in September!

Summer is going fast, and fall will be here before we know it, but that isn’t any reason to think the fun will end anytime soon. In fact, with AASP/MA, the fun is only about to begin!

Mark your calendar for September 13 when AASP/MA once again gathers the automotive community on the green for a full day of golf, networking, social interaction and fun – which is par for the course!

The annual golf outing is one of the Alliance’s biggest fundraisers and most anticipated annual events. It gives members of the auto body world a chance to get away from the daily grind, partake in some leisure time on the golf course in support of AASP/MA and all their efforts. The Alliance has been working nonstop in support of its proposed legislation to bring long overdue change to the labor reimbursement rate and to reform the ADALB. The work of the Alliance and the momentum they created would not be possible without support gained from events such as this annual fundraiser.

After two very successful outings at the Heritage Country Club in 2021 and 2022, there was no question about the Alliance’s decision to return to the Charlton golf course for the 2023 iteration of the popular event.

All the featured components which have made the event so great over the past few years – including the amazing steak dinner – are on deck once again. The day will lead once again with the popular kick off ball drop contest. This contest is open to all participants, even those who aren’t able to attend the event in person

as individually numbered golf balls can be purchased in advance. As the festivities get underway, AASP/MA Executive Director Lucky Papageorg dumps a bucket of the numbered golf balls onto the green. The person who purchased the numbered ball that lands closest to or in the hole walks away $500 richer!

There are chances to win prizes at every turn. Not only are there contests on the green with hole-in-one, closest to the pin and team prizes to be awarded, tons of raffle prizes are donated by supporting members of the auto body community and made possible thanks to generous sponsors. Dozens of super cool items will be raffled off from smart TVs, bluetooth speakers, coolers and more! It’s guaranteed that just about every participant or team will leave with a prize!

If the game is not your sport but you still want to take part, you can join the group for a delicious steak dinner and the awards ceremony. In fact, invite the whole body shop crew down to the course for a meal – it’s a great way to give back to your team!

AASP/MA is always grateful for its strong network of vendor supporters who never cease embracing the opportunity to pitch in and support the event through various sponsorships from Tournament Sponsor, Lunch and Dinner Sponsors, Raffle Sponsors and Tee Sponsors. Hole sponsors will once again receive a commemorative flag featuring their company logo.

Make your plans to spend the day with AASP/MA now by visiting aasp-golf-tournament.perfectgolfevent.com/

[LOCAL] NEWS
[LOCAL] NEWS
Door prize winner Brian Bernard (Total Care Accident Repair; Raynham) donated the winnings to the Lobby and Legal fund. Zone 1 Winner
MASSACHUSETTS MASSACHUSETTS
Executive Director Lucky Papageorg traveled around Massachusetts in April and May to provide association updates at four chapter meetings. Door prize winner Troy Dinsmore (Body & Paint Center of Hudson, Inc.; Hudson) donated the winnings to the Lobby and Legal fund.
14 July 2023 New England Automotive Report
Zone 2 Winner
SAVE THE DATE! MASSACHUSET TS PROTECTING CONSUMERS AND THE COLLISION INDUSTRY Annual Golf Outing Wednesday, September 13, 2023 Heritage Country Club, Charlton, MA Join AASP/MA for a great day of golf, contests, prizes, dinner and fun! Multiple sponsorship opportunities available! Registration is open! Reserve your space on the green today! Visit aasp-golf-tournament.perfectgolfevent.com Save time at the event! EnterBallDropContest in advance! GET YOUR BALLS NOW!

After 52 years in business, NICKOLE AUTO BODY is...

16 July 2023 New England Automotive Report
Located on one of the busiest highways in North America - Rt. 1 in Saugus, MA Within 3 miles of one of the three worst crash sites in the state Our sales are approx. $2M annually - capable of much more! • (2) Car-O-Liner frame machines/clamps/chains • (2) Downdraft spray booths • (2) Lifts • (2) Air compressors/air dryer • Hunter alignment rack • MIG welder (Miller) • Class II & III dealer licenses • Tire machines • Pro Spot MIG & resistance welders • A/C machines (134 and 12345 yf) • Stocked supply room • All paint room stock • Brand new 21-camera security system • & Much, much more! For more information, call Ernie Nickole 781-233-0920 FOR SALE! PRICE INCLUDES Our 9,291 square-foot building includes office space and plenty of parking 10-year lease with option for five more years at $18 / square foot Triple Net Recently appraised at $1.3 - $1.5M for business
New England Automotive Report July 2023 17

Axalta Coating Systems' position as a leader in the coatings industry doesn’t just come from the quality products and service it provides; their success also comes from their commitment to poise their customers toward excellent results.

A household name to the auto body industry, Axalta shines well beyond the surface they provide in the form of coatings, supplies and technology which allow for nothing but the best coverage possible.

Axalta offers products for the commercial transportation industrial and aviation industries, but its main customer base lies in the automotive collision repair sphere. The brand has a strong presence in the New England area, providing coverage for auto body shops in Massachusetts, Vermont, New Hampshire and Rhode Island.

Dan Weaver, account specialist for the northeast region, stresses how grateful and appreciative the company is of its loyal customers in the region. They work with collision repair facilities of all sizes from small town shops to large operations and have a great network of distributors they work closely with to get their products to the shops they serve.

A strong customer base in Massachusetts is one of the reasons they are such a strong supporter of AASP/MA. The company has come through as a supporter of AASP/MA in many ways over the years. They always look to give back again and again to the association which works on behalf of the collision repairers – their main customer base. Currently, Axalta is a Diamond level sponsor in the Alliance’s Vendor Affinity Program.

Being successful in the repair community comes with challenges, and Axalta is well aware of the pressures they have to combat in order to succeed. With this in mind, they offer significant training classes in various areas, like estimating, for safe and proper repairs. They support the utilization of OEM procedures.

“We have state-of-the-art online training modules for our customers to keep up-to-date with the modern technology involved in today’s motor vehicle construction,” explains Weaver. Axalta also

provides performance management systems to help their customers measure and gauge profitability.

According to Weaver, Axalta achieves success when their clients do.

“We provide the service and products in order to allow our customers to achieve the highest quality automotive finish to be the hero in their customers’ eyes.”

18 July 2023 New England Automotive Report [VENDOR AFFINITY PROGRAM] SPOTLIGHT
Why Join WIN? WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market. • Local/Regional Networking Events • Annual Education Conference • Educational Webinars • Mentoring Opportunities womensindustrynetwork.com • Scholarship Program • School Outreach Program • Most Influential Women (MIW) Award MASSACHUSETTS
New England Automotive Report July 2023 19 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

Shop of the Future: A Q&A with AASP/MA President Kevin Gallerani

From electric vehicles (EVs), ADAS and diagnostics to OEM certification, DRPs and consolidation, the future of the collision repair industry is rife with challenges for shops that want to remain competitive amidst these neverending changes. Retaining employees has become even more important than attracting clients, but simultaneously, no business can be successful without maintaining a superior level of customer service. So, how can collision repair facilities navigate the myriad aspects of the business to become a “shop of the future?”

AASP/MA President Kevin Gallerani shares his thoughts on some of the industry’s most pressing topics with New England Automotive Report readers.

New England Automotive Report: From safety and training concerns to specialization and preparation for the future, electric vehicles present a world of questions and challenges never before seen. How big do you feel the EV wave is going to be - and how much have EVs already impacted the industry?

Kevin Gallerani: The wave is going to be huge, maybe never ending, and that wave has already started; it is already here. I’m sure every shop has seen an EV show up at their door by now…whether you chose to fix it or not. Luckily, all the EV manufacturers are already making the training and OEM procedures available. I think it will be tough for some shops to get on board, but it is the way of the future. It will be expensive for shops to get outfitted for EVs, but once you are ready for one manufacturer, the transition to add others will be less expensive.

Tooling will also be a factor when it comes to EVs. Not only will shops need to buy battery racks and roll around trays…more storage will be needed in the shop. Electric cars and trucks are heavier than gas vehicles. We will need stronger lifts and frame machines that can handle the weight. The Rivian truck is over 10,000 pounds, so a 5,500 Car-o-Liner bench rack won’t be able

to safely pick it up. Also, all EV shops will need a forklift on-site to move batteries, electric motors and immobile vehicles around the property. Tooling will be expensive.

There are safety concerns, but like anything, if EVs and hybrids are handled properly and the technicians are trained, I don’t think it should be a problem. I think you will see specialized shops that handle one brand or two brands in the future. You will need to be certified for these vehicles to get certain parts. Instead of focusing on every car like in our past years, we may be working on only one or two brands and need to be very highly trained on them. I don’t think you can efficiently be the best at every brand because they are all going to be so different. In fact, they already are!

NEAR: How much of a player will OEM-certified shops be in the future? Do you see certified shops specializing in specific OEMs replacing DRPs?

KG: Shops are already becoming certified and specializing in certain brands, and gaining certifications to bring in waves of these specialized vehicles and get off DRP lists that restrict their labor rates and charges. I think that shops will need to pick and choose what brands they want depending on cost or equipment and cost of training and the types and brands of vehicles in their market. Then add more from there.

NEAR: Where is the industry headed when it comes to the scan tools needed to perform diagnostics? Are non-OEM-approved tools going to be enough? Where does the insurance industry come into play?

KG: Non-OEM scan tools will not be enough. You will need OEM tooling to scan and program these vehicles. This will be expensive at first, but I think if you charge correctly, a fair and reasonable ROI is very possible. Insurance companies should not be able to impose their will on independent businesses and should be expected to pay for the proper repairs that are required by the OEM. I’m sure it will not be easy for them, but it is the right thing to do for our mutual customers.

20 July 2023 New England Automotive Report [LOCAL] FEATURE
AASP/MA President Kevin Gallerani

NEAR: How prevalent will consolidation be down the road? Are we going to see a bigger wave in your market in the future?

KG: Yes, I think smaller shops will continue to go away as we are seeing now. Vehicles are tougher to fix, while equipment and training are more expensive than ever, so it’s a full time job keeping up with them – not to mention that we have a shortage of technicians in the industry. It’s sad to think about it, but I think the majority of the small mom and pops will unfortunately go away.

NEAR: How will consumer marketing need to change in the future? Do you think our efforts to educate consumers in the future differ from what we're doing now?

KG: I think that only some shops will be allowed to work on certain vehicles, so customers might not have as many options about where to take their cars anymore. Obviously, we need to educate our customers about safety and why vehicles need to be repaired properly, but I see the future of collision as very specialized - the car will tell you where to go.

NEAR: What will shops need to do to attract and retain young employees in the future vs. what worked in the past? What role

does shop culture play in employee retention?

KG: Employee retention is huge. Shop culture, benefits and pay will all factor in. Promoting from within and training new technicians will be our lifeline. We can’t look for others to do this for us anymore. We need to hire and train our own to keep the bloodlines alive and pumping.

New England Automotive Report July 2023 21 Page 1 THE RIGHT PARTS. RIGHT NOW. Call us today for all your parts needs! PLATINUM SPONSOR • 8 Delivery Trucks on the Road Daily • Same-Day Parts Delivery • Open Six Days a Week • $1,000,000 Parts Inventory 415 Taunton Ave. | East Providence, RI 02914 Direct: 401-438-2206 | Fax: 401-431-0673 toyotaparts@griecocars.com | griecotoyota.com PARTS HOURS MON-THURS: 7:30am-7pm | FRI: 7:30am-6pm | SAT: 7:30am-5pm
MASSACHUSETTS
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
GENUINE GENESIS PARTS.
22 July 2023 New England Automotive Report
New England Automotive Report July 2023 23

Rising interest rates and inflated prices often cause shoppers to tighten their purse strings, an action that can create a lot of economic uncertainty for small business owners, but in a country that relies heavily on their personal vehicles, the auto body industry may be a bit more resistant to recession concerns than other industries, allowing shops to take advantage of different opportunities that simply don’t exist in other areas.

As discussed in last month’s New England Automotive Report (available at grecopublishing.com/new-england-automotivereport-june-2023), inflation may actually be a positive thing for body shop owners…as long as they’re charging the right amount for their labor and following some of these other great tips from industry leaders.

Why is the collision repair industry so much more fortunate than others? Although consumers drive less these days, their reliance on their personal vehicles, combined with increasing inflation and interest rates, creates a situation where taking on additional debt

Is Inflation Good for Your Body Shop? Part 2

to purchase a new (or even new-to-them) car is less than appealing – and no wonder! By the end of 2022, new car prices averaged over $48,000 with an average interest rate of 6.5 percent and a $700 monthly payment, and few people are comfortable taking on such a large burden given the overall economic uncertainty being experienced throughout society.

“People worry about going into debt with such high car payments being financed for long periods of time,” explained Maylan Newton (Educational Seminars Institute). “Rising interest rates also cause people to hang onto their cars longer, investing in engine replacements and major repairs to avoid a new car payment. They’re more willing to invest in what they have to avoid the hassle of buying a new car; between surcharges and premiums, some dealerships are charging more than $30,000 above sticker price! The average consumer cannot afford that and would rather repair their current car instead of going into such massive debt for six years with high rates, especially with the way they’re rushing to complete

24 July 2023 New England Automotive Report
[NATIONAL] FEATURE

vehicles now. I expect a lot of recalls in the coming years because they aren’t taking the time to build cars correctly. It’s going to be a good couple years for repair shops because of all these reasons.”

“With new car loans averaging 77 months and 14 percent of new car loans over $1,000 per month, this is the easiest time to take advantage of the opportunities that exist in the repair world,” agreed Rick White (180BIZ). “Consumers often resist investing in repairs, but why throw a $60,000 solution at a $4,000 problem? Service advisors can sell the repair by demonstrating the cost for a new car in payments and interest over a seven to eight year note. Help them understand that their vehicle is an investment and that we’re selling the ability to get more miles out of their car. The next 10-12 years will be one of the best times we’ve seen in the auto repair industry in a long time. People will keep their cars and invest in them because they understand that’s a better use of their money. Even a $3,000 repair costs less than six months’ worth of payments!”

Shops may need to spell this out for consumers, however.

“A lot of consumers are not very intelligent about their cars,” Newton observed. “Our job is to help them understand the value of fixing the vehicle as opposed to replacing it. I use statements like ‘protect your investment’ and encourage them to make sure their car ‘lasts longer than the car payments do.’ Emphasize that neglecting to care for their car means it won’t last the length of time that they finance the car for. We have to change our mindset to focus on the customer’s needs, and that means talking less about the technical side. Instead, we need to explain how we’re protecting their investment and making it last as long as possible.”

An overall decreasing demand for new vehicles creates a variety of opportunities for collision shops.

“Customers are more apt to fix their car instead of buying new, whether that means filing insurance claims or bringing the car in themselves,” suggested Mike Anderson (Collision Advice). “Shops are likely to see more customer pay vehicles which are usually the most profitable jobs since they mean more labor, less parts and a higher gross profit, plus there’s the added benefit of working directly with the consumer instead of a third-party payer.”

He also pointed out that people tend to focus on collision repairs cyclically. “After income tax season, there’s that time of year when people slow down and start preparing for summer vacations, so it’s likely that they’ll invest in their cars at that point to make sure they’re running properly and that they’re looking their best.”

All of these creates a perfect storm for body shops to re-evaluate the services they’re offering to find ways to grow their market share and propel their business forward.

“It’s important for any entrepreneur to be nimble and able to pivot and change their strategy,” indicated Rachel James (Torque Financial Group). “Could you market detailing services to help make that old car feel like new again? Or maybe, a conventional collision shop might consider offering some a la carte maintenance and service items to add some line items to their blueprints while creating convenience for their customers. Adding a band of business you’ve never engaged with before, such as glass repair or calibrations, could add an additional stream of revenue and more security.”

Convincing customers to purchase add-on maintenance items simply requires establishing those services as an investment in the longevity of their vehicles. Help them understand that spending a little more now will help their car run more smoothly for a longer time.

“It truly can be an investment to the consumer, so that’s how shops need to position it,” James insisted. “As a consumer who doesn’t want to spend additional money on a monthly car payment, you’ll have to accept that there will be expenses associated with maintaining that vehicle. From a shop’s perspective, it all comes down to communication, and a qualified customer service representative can effectively have that conversation to explain how

continued on pg. 26

New England Automotive Report July 2023 25

maintenance prevents bigger repairs down the road and reduces the overall costs by sustaining the vehicle through some due diligence and a little TLC.”

Advancing technology necessitates enhanced communication with customers to help them understand the complexity of their vehicles.

“Shops should be holding car care classes to educate people and teach them how to be involved in protecting their investments,” Newton recommended. “It’s amazing how many cars we see without oil in them because people don’t even know how to check their own oil! Attend meetings of the local rotary clubs and chambers of commerce to explain how much technology exists in today’s vehicles.

“Cars aren’t cars any longer,” he continued. “Multiple systems and modules are communicating with each other electronically via airwaves. Most people don’t even know their car is hackable. We need to educate consumers so they stop learning from Google and YouTube. They think it’s easy, and then we make it sound easy by advertising prices or quoting prices over the phone. We need to educate customers and talk about how it takes special knowledge and tools to even know WHAT to fix before it can be fixed.”

White believes that advancing technology is one of the reasons that people are keeping their vehicles longer, but “as technology continues to grow, the do-it-yourself market is going to get smaller and smaller because they can’t keep up with the technology. And although there are early electric vehicle (EV) adopters, a lot of people are resistant to EVs, plus there are still enough bugs in the infrastructure that I think internal combustion engines are going to be around for a while, even after they stop being made. So, while shops need to start investing in future technology to repair tomorrow’s cars, today’s vehicles are already complex and will be around for a long time, offering plenty of opportunities for us all.”

“No one has all the answers, but I definitely believe there are lots of opportunities for our industry,” Anderson said. “This whole EV revolution provides opportunities and will likely separate some shops in a way that aluminum never did. We haven’t even scratched the surface in regard to ADAS and calibrations which will continue to grow, and I suspect more shops will embrace it and bring it inhouse. COVID jump-started the utilization of some technology, but we’re not quite where we need to be in terms of researching repair procedures or utilizing software…There may even be a place for 3D printing in our industry’s future! We just need to stay open-minded and willing to accept the opportunities when they come knocking.

“Too often, we kick new software solutions to the curb because they don’t offer 100 percent of what we need, but we all need to learn to crawl before we walk before we run,” he encouraged. “Instead of penalizing them for what they can’t do today, understand that we need traction to advance along even further and consider what that software might be capable of in the future.”

Although there are many opportunities open to body shops even during these trying times, many owners are still afraid due to

the rising cost of doing business, but while everyone is contending with those increases, it’s important to remember that inflation is nothing new…it happens annually or even more often!

“We have increasing costs every year, whether there’s a recession or not,” Newton pointed out. “Shops need to stop being afraid to charge what’s correct. Reevaluate your hourly rate every year – or preferably every quarter – and increase it as needed. Quarterly increases allow you to keep up with inflation, plus it’s easier to raise that number a little at a time instead of a lot all at once. It’s important to do the math and calculate your true cost of doing business, but understand: your hourly rate isn’t as important as your effective labor rate, which is the amount you’re actually charging based on productivity. You need to understand your numbers in order to make money, and we also need to sell value, not repairs. Sell knowledge, not what our hands can do for us. We’re selling peace of mind and safety, not just parts and labor.”

Anderson concurred that shops should be looking at their labor rates more often. “Most people do it yearly, but I recommend evaluating your cost of doing business every quarter in order to build budgets and pro formas for the upcoming year. Surround yourself with experts like your 20 group peers and other knowledgeable people that can help you better understand what expenses you should be considering and what rates you should be charging. We need to be monitoring our expenses and our overhead, especially as we look at repairing EVs due to the investment we’ll need to make in training and equipment for those vehicles. It’s a good rule of thumb to have at least six months’ of expenses saved in cash reserves; that’s the sign of a healthy business.”

White shared a similar viewpoint. “We should be watching inflation all the time because it averages around three percent each year. It’s the silent killer of profit since people don’t always pay attention, but it’s about buying power. Something that cost $100 in 2019 now costs $117. Prices go up constantly, so shops should be adjusting their rates quarterly or even monthly. Realize that these increases don’t allow you to make more money; they’re simply giving you the same buying power. And when you’re thinking about that, you also need to be giving employees a cost of living increase because if you’re worried about inflation, so are they. As the shop owner, you need to be taking care of them. No matter how hard things get, it won’t last forever. Know that it may be tough, but you can thrive if you keep a positive attitude and work smarter.”

James offered some financial advice for all business owners: “Over the next 12 months, look at your budget and develop a plan. Many look at their checkbook as an indicator of success, but in reality, that’s not the whole picture. Evaluate your P&L for the past year to see what it costs to run your operation. Are there any discretionary expenses that can be eliminated to free up cash flow? If you’re unsure, now is the perfect time to get a better understanding of your monthly financials so you can remove any unnecessary costs and better position yourself for financial success.”

Simultaneously, shops should be cognizant of which costs are

26 July 2023 New England Automotive Report
continued from pg. 25 [NATIONAL] FEATURE

necessary…and which can be cut. When economic instability inspires fear, it’s easy to make unwise decisions, like reducing spending on marketing or deciding to make unnecessary investments at the wrong time.

“Market when you’re busy to stay busy,” Anderson recommended. “We need to market now more than ever before, but don’t overextend yourself. You can’t overspend in your personal life and ask your business to support that. It’s not about what you make; it’s about what you spend.”

“Struggling shops may not make it through a recession, leaving only stronger shops to survive, and that gives those shops an opportunity to increase their market share,” White noted, citing the example of AirBnB’s decision to decrease marketing during COVID. In contract, Vrbo increased marketing 10 times, and by the end of the pandemic, AirBnB had lost 15 percent of the market, while Vrbo had picked up 61 percent. “Go big! When it’s really busy, the audience isn’t watching the stage, but during something like the pandemic, people are watching. And if 98 of 100 shops hide to ride out the recession, that leaves two shops trying to get the audience’s attention…and they’re going to get it! This is a great time to record videos to help people get to know and trust you. When no one else is marketing, now’s the time to build credibility. Increase your marketing, grow your market share, and you’re going to do really well.”

“The hardest part of financial planning is the emotional aspect,” James acknowledged. “It’s challenging to navigate because it’s so easy to fall into the fear of scarcity versus abundance, but more pressure equates to better results. Sure, issues occur, but you buff it out or realign it. There’s no perfect day in a collision shop, so you need to plan for the good times and the bad. Develop options for abundance and a contingency plan for when things get tight. There’s no crystal ball telling us if the next 12 months will be horrible or not, but we can rest assured that some point in the future will hold a difficulty for every business, whether that be economic, market or product driven. Being prepared is key.”

“Most people reading this article aren’t the cheapest shop in town, yet they’re busy,” Newton emphasized. “We worry too much about price due to fear, but we need to stop advertising and quoting prices and start charging a fair amount based on the cost of doing business. Fear causes us to stop marketing when times get tight, but we should continue advertising, just redirecting our focus on service, quality and value. If we convince ourselves that the sky is falling, our employees will believe and perpetuate that; if we tell them it’s slow every day, they’ll slow down and create productivity problems. We need to be optimistic because there’s plenty of opportunity. Charge the correct amount, do the best job you can, constantly build value, and you’ll have a good year!”

New England Automotive Report July 2023 27 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! MAKE QUALITY YOUR GOAL WITH KIA GENUINE PARTS. Protect your customer, protect your businessInsist on Kia Genuine Parts. Contact these select dealers for assistance and delivery of your Kia Genuine Parts. Bald Hill KIA 1021 Bald Hill Road Warwick, RI 02886 Parts Direct: (800) 822-3015 www.baldhillkia.com Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: (877) 707-8475 Wagner KIA of Shrewsbury 730 Boston Turnpike Shrewsbury, MA 01545 (866) 438-3997 Option #2 Kiawholesale@wagnermotors.com Balise KIA 603 Riverdale St. West Springfield, MA 01089 Toll Free: 800-992-6220 Fax: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands!
MASSACHUSETTS

PARTS.

THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW.

For Original BMW Parts, contact one of these authorized BMW centers:

BMW of West Springfield

1712 Riverdale St.

West Springfield, MA 01089

PH: 413-746-1722

FAX: 413-304-9009

bmwwestspringfield.com

New Country BMW

1 Weston Park Ave.

Hartford, CT 06120

PH: 860-240-7881

FAX: 860-240-7873

newcountrybmw.com

BMW of Stratham

71 Portsmouth Avenue

Stratham, NH 03885

PH: 603-772-0000

FAX: 603-772-9436

bmwofstratham.com

BMW of Warwick

1515 Bald Hill Rd.

Warwick, RI 02886

PH: 401-821-1510

FAX: 401-823-0530

bmwofwarwick.com

28 July 2023 New England Automotive Report
THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED
©️2023
BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.
New England Automotive Report July 2023 29

Since late 2022 when the Society of Collision Repair Specialists (SCRS) unveiled the results of its highly anticipated study, collision repairers have been anxiously awaiting the responses of the three major information providers (IPs), all of which promised to conduct their own research and provide updates. (If you’ve been living under a rock, get caught up on the basics of the blend study at grecopublishing.com/hd1222cic2022.)

As reported in New England Automotive Report in March (available at grecopublishing.com/near0323coverstory), CCC “committed that based on the recent database inquiries regarding MOTOR’s guidelines for blending adjacent panels, and in accordance with MOTOR’s standard operating procedures, MOTOR will conduct observational studies of the blend process [and] provide an update at the end of the first quarter of 2023,” SCRS Executive Director Aaron Schulenburg told us at the time, and during the most recent SCRS Open Board Meeting, he reported that “MOTOR has indicated that they’re going to be making a change relative to blending,” promising “positive movement for the industry. This is a good step forward.”

Since that meeting, MOTOR released guidance on its refinish time calculations for blending adjacent panels.

According to the release, MOTOR will make a change to its Estimated Worktime Development Methodology related to color blend of adjacent panels to account for variations in modern vehicle paint refinishing. The updates will take effect in October 2023 as part of MOTOR’s standard Guide to Estimating update schedule.

“Throughout the first quarter of 2023, MOTOR reviewed information from multiple sources and has concluded that the current formula reflects an estimate for one particular scenario but does not necessarily reflect the many variations encountered with modern vehicle finishes and design,” John McDonald, MOTOR’s product portfolio manager of content, said. “Given the variations among scenarios today, MOTOR believes that the Estimated Work Time Development Methodology should defer to the judgment of an estimator or appraiser following an on-the-spot evaluation of the specific vehicle and refinish requirements in question.”

Currently, users click a blend button in CCC ONE which automatically calculates a two-stage blend at 50 percent of the

30 July 2023 New England Automotive Report [COVER] STORY

refinish time and a three-stage blend at 70 percent of the full refinish time. The on-the-spot evaluation will allow users to either input a default value for two-stage and three-stage blends, or users can opt to have the system prompt them for the blend time specific to that repair.

“We think this is a good outcome for the industry as a whole and accurately reflects the variation in the process as MOTOR described in the release,” expressed CCC Intelligent Solutions Product Management Vice President Mark Fincher.

Schulenburg praised MOTOR for its “recognition of the variables that we’ve been communicating. This is an important and appreciated step, and CCC and MOTOR should be commended for being the first to commit to a fixed timeline to evaluate, responsibly concluding there was a need to change and remove the blend formula percentages, and committing to a timeline when the industry will see those changes take place.

“Both organizations followed through with their commitment to both their process and the industry, remaining communicative with SCRS throughout the process as they worked through their

own internal validation,” he added. “This is a great example of an action that we had previously requested prior to the study, that is now only taking place because of the study results and the industry support that followed.”

"[It's] a win that CCC has agreed to knock the calculation out of the platform and leave it to the appraisers to negotiate on a case-by-case basis," notes AASP/MA Executive Director Lucky Papageorg. "When you remove that 50 percent calculation as part of the estimating process, you’ve got an automatic increase. Some shops aren’t thrilled with the resolution, but we cannot always look to someone else to fix our problems! Shops can use this study to justify their estimate, and if the carrier refuses to compensate them, it provides a basis to charge the customer a copay. We just need to have the intestinal fortitude to stick to our guns and stop capitulating.”

During the April SCRS meeting, Schulenburg also shared that SCRS had engaged in similar conversations with Audatex. The company has been reviewing how they’ll address the blend study continued on pg. 32

New England Automotive Report July 2023 31
by Chasidy Rae Sisk

continued from pg. 31

findings, but in the meantime, Audatex leadership pointed out how easily users can adjust for edits to blend calculations. While Schulenburg demonstrated how repairers can easily make those adjustments, he also acknowledged, “While it’s great to have these tools, the formula still needs to be addressed because it’s not representative of the tasks being performed today.”

The Database Enhancement Gateway also released instructions for making those adjustments as an Estimating Tip, available at degweb.org/audatex-adjusting-blend-labor-value

SCRS hopes to share more on the blending study topic, including updates from Audatex and Mitchell, at the July Collision Industry Conference (CIC), being held in Indianapolis later this month. “It’s our anticipation that the feedback the industry has provided, coupled with the research we’ve produced and a closer look at complexity of colors and advancements in color systems will lead anyone who earnestly researches this topic to the same conclusion that we came to, just as MOTOR has,” Schulenburg said. “This is an important step, with more to come.”

In the meantime, he also stressed, “It’s important to reinforce that all three estimating products are just that – guides – not fixed or rigid solutions, even if that is how they are sometimes used. Until there is change, the study provides clear transparent information that can be used like any other documentation to substantiate a repair operation or charge on a repair order.”

Stay tuned to New England Automotive Report for updates as more information becomes available.

32 July 2023 New England Automotive Report [COVER] STORY
MASSACHUSETTS

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: 1-413-587-2900

FAX: 1-413-585-0502

www.liahondanorthampton.com

Honda of Enfield

20 Palomba Drive

Enfield, CT 06082

Toll Free: 800-222-6632

FAX: 860-253-5419

www.liahondaofenfield.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

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

Balise Honda

400 Riverdale St. West Springfield, MA 01089

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Balise Honda of West Warwick 509 Quaker Lane 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!

New England Automotive Report July 2023 33

ASK MIKE If the EV Boom Is Real, Is the Industry Ready for It?

This month, we “ASK MIKE” for his thoughts on the industry’s readiness to embrace electric vehicle (EV) repairs. We at New England Automotive Report hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a future issue.

New England Automotive Report: You’re at an advantage because you visit with shops all over the country and can gauge where they are in terms of adapting to different things. In terms of EVs at this moment in time, what are your impressions as far as the industry’s overall preparedness to handle these vehicles?

Mike Anderson: The timing of your question is perfect. I was fortunate enough to be at an event for the Alliance of Automotive Service Providers of Illinois (AASPI) recently. General Motors and Ford were both on a panel discussion that I was a part of. I asked them, ‘Is this “EV” thing real, or are we still waiting to see?’ They both said it’s not going to happen – it has already happened. First of all, people need to understand that we’re not just talking about Lucid, Rivian and Tesla; it’s Volvo, GM, Ford, Nissan and other OEMs. EVs are already here and happening.

Kudos to I-CAR, because they’ve come out with a class that people can take in Chicago at I-CAR’s Technical Center. That will help people understand what needs to be done. Ford and GM recently shared with attendees in Chicago that their classes are going to be held through I-CAR. Of course, other OEMs, such as Tesla, offers their own training. What I’ve heard most from people is that it is important to not just have training on how to properly repair the vehicle, but that there’s also training on how to handle that vehicle when it’s brought into your shop. I was at a conference recently, and Dirk Fuchs from I-CAR and Jake Rodenroth from Lucid shared a story about a vehicle that had been towed into a shop. Many hours later, that car caught on fire because the battery was concussed; it burned up three or four other cars around it. There are a lot of things that we’re going to have to learn that we don’t even think about. How do you handle that EV when it’s towed in? How do you check the temperature

of the battery area? It’s not just about training on how to fix the vehicle; it’s also training on where the vehicle should be stored and quarantined and things of that nature. The days of taking a vehicle off a tow truck and just putting it in your building or parking it on the lot are going to be gone. There’s a whole lot more that has to be considered.

NEAR: What’s your impression on where this is all going to go for shops? Do you see EV work becoming a specialized repair that only certain shops will be able to perform?

MA: I do see it becoming specialized, and I do see it as a segment of the industry that will grow. EVs will do to our industry what aluminum sort of did. When aluminum first came out, there were restricted parts sales and specialized training. At some point, EVs are going to be a differentiating factor between the shops that are certified to fix them and those that are not.

NEAR: What are you hearing out in the field? Are shops enthusiastic or apprehensive?

MA: Shops are apprehensive because they are concerned about storage and space or the investment when they may not see that many EVs. The shops that are most interested seem to be the ones that have higher-end certifications. They’re already used to having a specific dedicated aluminum bay or whatever the case may be. Those are the shops that are jumping into it and getting the training.

NEAR: With EVs, it’s certainly more about safety than it is about tooling and training. If a tech has a bad day, it could be lights out for them.

MA: It’s like what Jake Rodenroth says: “Before, if you did a bad job, you hurt the car. Now, if you do a bad job, the car can hurt you.” Worse yet, it can kill you. Also, we have an obligation to try to educate our firefighters and first responders in our area. They have as much to learn as we do.

NEAR: What’s your opinion of the current education available? Is it enough?

MA: We need more. Obviously, as the OEMs have more information come out, that training will be made available. There

continued on pg. 38

34 July 2023 New England Automotive Report
[INDUSTRY ADVICE]
with Mike Anderson
New England Automotive Report July 2023 35 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 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. Genuine Replacement Parts For the Road Ahead. For Genuine Subaru Body Parts, contact the following Authorized Subaru Dealers:

WHY GENUINE PARTS?

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103

Toll Free: 800-828-6076

Direct: 603-657-2410

Fax: 603-657-2419 stirrell@iramotorgroup.com www.iramotorgroup.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

Grieco Toyota 415 Taunton Ave. East Providence, RI 02914

Direct: 401-438-2206

Fax: 401-431-0673

toyotaparts@griecocars.com www.griecotoyota.com

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481

PH: 800-734-0006

Direct: 781-237-4042

FAX: 781-237-3481 parts@wellesleytoyota.com www.wellesleytoyota.com

Bernardi Toyota 1626 Worcester Road Framingham, MA 01702

Parts Direct: 800-248-3033

FAX: 508-879-7895 www.bernarditoyota.com

Balise Toyota 1399 Riverdale St. West Springfield, MA 01089

TOLL FREE: 800-992-6220

FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Balise Toyota of Warwick 1400 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!

36 July 2023 New England Automotive Report For Toyota Genuine Parts please call one of these authorized local Toyota Dealers:
ToyotaPartsAndService.com You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. It’s
the Right Thing to Do
New England Automotive Report July 2023 37 Get it right from the source. Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs. 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. Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475 Contact these Ford or Lincoln Mercury dealers for all your parts needs: Call Us For All Your MOPAR Needs or visit us on the web: www.mcgover ncjdrofnewton.com For Fir st Time Customer s, Call me: Mando Bogosian, W holesale Manager TOLL FREE: 800-741-7563 DIRECT: 617-454-2990 FAX: 617-467-0006 Call us and get the right MOPAR parts the FIRST TIME! Hour s: M-F: 7am-6pm Sat: 7am-1pm Hour s: M-F: 7am-6pm Sat: 7am-1pm NEW ENGLAND’S NEWEST MOPAR DEALER 777 Washington Street • Newton, MA 02160

[INDUSTRY ADVICE] ASK MIKE

continued from pg. 34

are so many things to get training on, such as curing times. How long can you bake an EV for? This is not just something for collision techs and estimators; it’s also something for refinish departments to learn about.

Our industry is very resilient. I have no doubt that we’re going to figure it out. Every OEM I’ve talked to is committed to bringing the training. I’m neither concerned nor afraid. Shops are just going to have to figure it out and invest in it.

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

38 July 2023 New England Automotive Report
VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 VISIT US: 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 Boch Hyundai Boch Chevrolet THE SERVICE NEVER STOPS AT BOCH HYUNDAI! KNOWLEDGEABLE STAFF AND GENUINE GM PARTS! PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210 E-MAIL: bchwholesale@ boch.com PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210 E-MAIL: bchwholesale@ boch.com MASSACHUSETTS BOCH HYUNDAI 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210 bchwholesale@boch.com BALISE HYUNDAI 683 E. Columbus Ave. Springfield, MA 01105 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands! For Genuine Hyundai parts, contact an Authorized Hyundai Dealer. 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. Unsurpassed Quality. Genuine Hyundai Parts.
New England Automotive Report July 2023 39

EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 6

to suggest that the customer obtain a copy of the contract the insurer’s “partner shop” has signed. It’s all there in black and white. If the insurer refuses to share the information, it will be another reason for the vehicle owner to be suspect of the reason they are being steered in a particular direction.

Once you have evaluated your true cost of doing business and posted your labor rates accordingly and are writing your blueprints/repair plans at those rates, it is time to take the labor rate survey at laborratehero.com. It is important that you update your survey regularly, even if you have not increased rates in any of the categories so the survey results will be freshly dated. The survey is critical as this is just one of the very many important tools the “Alliance” is utilizing when speaking with our legislators. The survey information, along with BillableGenie data being accumulated by National AutoBody Research are, as the Mastercard advertisement says, “Priceless.” Part of your summertime project should include learning how to use this information, as countless shops are doing, to get paid properly for procedures and rates they are able to prove insurance companies have and continue to pay. Nothing seems to enrage vehicle owners more than when it is pointed out to them in black and white that their insurance company seems to be discriminating against them by paying some claimants but not them for the same procedures and rate reimbursement. Some insurers will say that it

is on a case-by-case basis, but make them prove to your customer WHY this isn’t one of those cases. At the very least, it will prove that it is not you who is being unfair and unreasonable. This justifies the need for a copay from the vehicle owner. It is based on the insurer not indemnifying the vehicle owner completely based on the policy sold and purchased. Some may consider this an absolute breach of contract and potentially an unfair claims handling practice subject to the 93A and 176D triple damages penalties.

If you have attended either part one or part two of the Alliance’s “Breaking Free in ’23” events, the “lull” may be a great time to revisit the videos and documents provided via thumb drive to digest the abundance of information provided. The information and support provided have helped many shops set the tone for their future and their individual repair and billing practices. Part one helped explain some of the transitional growing pains experienced when “flicking the switch” and realizing that in order to thrive by providing quality repairs performed by well-equipped and trained technicians, a collision repair shop can no longer subsidize the process by absorbing “short pays” by the insurance company. As the experts in the repair process and the shoulders on which the ultimate liability

continued on pg. 42

40 July 2023 New England Automotive Report
One Call, One Truck for 14 Brands!
New England Automotive Report July 2023 41

EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 40

falls should something minor or catastrophic occur after the repair, shops are realizing someone must pay; if not the insurance company, then it must be the vehicle owner. It is then the vehicle owner’s responsibility to pursue the issue with their insurer.

Kudos to those shops who have not listened to “it will never work,” “I cannot charge vehicle owners in my area more than what the insurer is willing to pay” or “I won’t have any vehicles in my shop to repair.” These shops that are well informed are finding it easier to draw quality technicians from a pool of talent that is getting shallower by the day. They are finding they DO NOT have to work at such a frenetic and disorganized pace, frustrating and burning out their technicians, while at the same time potentially sacrificing repair quality and thus bringing even more liability to their doorstep.

For members of the “ALLIANCE,” please refer to the June issue of the Damage Report newsletter for additional ideas on how to best use the next few months to implement “Breaking Free in ’23.” If you are not a member and are ready to “flick the switch,” there is a membership application on page 7 or online at aaspma.org

It will only take a couple of minutes out of your summer to fill it out. You will then be a part of the “ALLIANCE,” which has NO plans to take the summer off when it comes to “protecting consumers and the collision repair industry.”

42 July 2023 New England Automotive Report Accudraft Paint Booths OBC Albert Kemperle .............................................. 13 Audi Group 29 Balise 21 BMW Group 28 Boch Chevrolet (GM Parts Group) .................. 10 Boch Hyundai 38 Colonial Auto Group 2 Crown Collision Solutions ............................... 27 Empire Auto Parts 42 Ford Group 37 Grieco Toyota 21 Honda Group .................................................. 33 Hyundai Group 40 Ira Subaru 16 Ira Toyota of Danvers 17 Kelly Automotive Group ............................... IBC Kia Group 27 Linder’s, Inc. 39 Lombard Equipment ....................................... 13 Long Automotive Group 4 Mazda Group 40 McGovern Chrysler Jeep Dodge Ram 37 Mopar Group .................................................. 39 Nissan Group 8 Quirk Wholesale Parts 41 Reliable Automotive Equipment 22-23 Sarat Ford Lincoln ........................................... 32 Shop For Sale 16 Spanesi 21 Subaru Group .................................................. 35 Toyota Group 36 USI North America 12 Volvo Group 32 VW Group ........................................................ 3 Wagner Motors 9 WIN 18 ADVERTISERS’ INDEX
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org MASSACHUSETTS

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.