New England Automotive Report August 2017

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Serving the New England Collision and Mechanical Repair Industry

August 2017 U.S.A. $5.95

Read more on page 34

www.grecopublishing.com

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August 2017 • Volume 15, No. 8

DEPARTMENTS VICE PRESIDENT’S MESSAGE by Adam Ioakim

CONTENTS FEATURES

by Joel Gausten

8 | Markup Matters

30 CLIMBING BEACON LOCAL NEWS 18 | Putnam Academy Hosts 5th Annual Collision Repair BBQ 22 | ADALB Defends Power to Issue Temporary Licenses 23 | MA Students Earn Medals at SkillsUSA Nationals

NATIONAL NEWS 26 | TV News Report Spotlights Dangers of Photo Estimating 26 | Maine Governor Vetoes Anti-Steering Legislation

LEGAL PERSPECTIVE by James Castleman, Esq. 41 | Please Release Me

ASK MIKE 46 | What are some common killers of productivity that most shop owners don’t realize exist?

ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 11 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 14 | AASP/MA SPONSOR INFO 15 | AASP/MA MEMBERSHIP APPLICATION 48 | AASP/MA CLASSIFIED FORM 49 | FOR SALE 50 | INDEX OF ADVERTISERS

HILL: AN AASP/MA LEGISLATIVE RECAP

34 FIGHTING FOR THE FUTURE: INSIDE THE 2017 LABOR RATE HEARING

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VICE PRESIDENT’S MESSAGE

MARKUP MATTERS ADAM IOAKIM

With so many things changing in our industry these days, even the most professional and well-equipped collision repair facility can’t specialize in everything. I know I’m not alone in often needing to sublet some of the work involved in bringing more than a few of today’s increasingly complex vehicles back to pre-accident condition. I also know I’m not alone in regularly hitting a brick wall when I try to get paid a markup from a few select insurers on this sublet work.

Appraisers and insurance companies come in here all the time and tell me, “You subletted that, so you’re not entitled to a markup.” Well, it is time to squash that fallacy.

You are entitled to a markup on anything you touch. When you elect to sublet a procedure, you become the point person and the face of that sublet to your customer. You take on the responsibility, coordination and liability for that sublet. At the end of the day, that sublet is on your invoice – you floated the funds for it, and you’re entitled to be compensated for that.

When a general contractor works on your kitchen or bathroom and has a plumber or electrician come in, that service is reflected in a markup in the general contractor’s

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invoice. That should be the case in our profession. In no way should any shop believe that they’re not entitled to a markup when they sublet something.

This is not an easy business, and the financial pressures hitting us now are likely to get worse down the road.

If you hope to keep the lights on at your shop, you have no choice but to become a stronger businessperson. Charging a markup for your sublet work could be a huge part of your success and survival.

As always, I encourage you to consult your attorney before implementing this or any other new pricing structure at your business. No matter what you decide, I wish you well in developing a system that helps your business thrive now and into the future.

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.

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AUT M TIVE STAFF

AASP/MA EXECUTIVE COMMITTEE PRESIDENT

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

SALES DIRECTOR

PRODUCTION

VICE PRESIDENT

Alicia Figurelli (alicia@grecopublishing.com)

Donna Greco (donna@grecopublishing.com)

Adam Ioakim

Molly Brodeur

EDITORIAL DIRECTOR

SECRETARY

Joel Gausten (joel@grecopublishing.com)

Ray Belsito, Jr. TREASURER

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

Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard www.grecopublishing.com 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 © 2017 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

AASP/MA DIRECTORS Darlene Andrade Matthew Ciaschini

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Gary Cloutier

AASP/MA EXECUTIVE DIRECTOR

Alex Falzone

Jillian M. Bukhenik 12 Post Office Square, 6th Floor Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

Joshua Fuller Kevin Kyes Peter Langone

WWW.AASPMA.ORG

Frank Patterson Mike Penacho

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

How a Bill Becomes a Law: An Insider’s Look at the Labor Rate Bill JILLIAN BUKHENIK

Dear Industry Leaders, At the time of this writing, we were preparing to testify before the Joint Committee on Financial Services regarding our Labor Rate Bill. After months of meeting with legislators (which you will read more about later in this issue), we secured an early hearing date of July 11.

As you may know, two bodies make up the Legislature in Massachusetts: The Senate (comprised of 40 members) and the House of Representatives (comprised of 160 members). A legislator will sponsor a bill on petition from a citizen or an interest group or of their own volition. Introduced into the Senate or the House, the bill will first proceed through that body.

AASP/MA has filed a Labor Rate Bill in both the House and Senate. Our sponsors are Representative Cabral and Senator Welch, respectively.

First, the bill is introduced to either the Senate or House Clerk’s office to be numbered and assigned to the appropriate Joint Committee. Our House legislation is HB 494 (https://malegislature.gov/Bills/190/H494), and our Senate piece is SB 599 (https://malegislature.gov/ Bills/190/S599). There are 21 possible committees, and each represents a specific area. (Our Labor Rate legislation been assigned to the Joint Committee on Financial Services.) The committees then hold public hearings on each of the bills before them. After the hearing, the committee will hold an executive session.

This is where they recommend the bill “ought to pass” or “ought not to pass.”

“Ought Not to Pass” – Unfavorable Report from Executive Session Bills reported out of Committee unfavorably, or “ought not to pass,” have received an adverse report.

They are sent to the respective Steering and Policy Committee and may be put on the calendar without debate for the next session. If the Senate or House accepts the executive committee’s adverse report, it is considered the final rejection of the bill. However, if any member of the body moves to substitute the report for the bill and the motion carries, the legislation will be treated as if it had been reported favorably out of executive session.

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“Ought to Pass” – Favorable Report from Executive Session Each favorably reported bill has three readings. The first reading occurs when the Committee’s report appears in the Journal of the Senate or House Clerk. If it does not need further review by another committee, it is referred to the respective Committee on Steering and Policy or respective Ways and Means Committee (depending upon any financial impact or other considerations). The Senate Committee on Steering and Policy is required to report bills out to the Senate floor (or elsewhere) within 30 days for debate; the House Committee on Steering and Policy is recommended to report the bills out within 30 days to the House floor (or elsewhere) for debate. If the piece of legislation requires funding or affects finances in Massachusetts (like the Labor Rate Bill), it is generally referred to either of the respective Ways and Means Committees.

The second reading of the bill occurs on the floor, allowing the members to vote on or amend the legislation. If it receives a favorable vote, it is sent to the Committee on Bills in Third Reading. The purpose of this Committee is to read the bill, which has basically passed in one branch now, to make sure it does not contradict existing law, does not already exist in the law, is compliant with the Constitution of the Commonwealth and has no grammatical or technical errors. After the Committee reviews the bill, it is sent back for a third reading during an informal or formal session. Legislators may again amend the bill or vote to pass it to be engrossed.

At this point, the bill goes to the other body, where it must receive three readings. It is then passed to be engrossed in the same manner described earlier. If there is an amendment made to the bill in the second branch, it must go back through the original branch for “concurrence on amendment.” If it is accepted, it is sent to both bodies for enactment. If it is rejected, a Conference Committee made up of three members each from the Senate and the House is set up to review the bill and reach a compromise. The compromise legislation must then be approved by both bodies.

Last session, and for the first time in its history, our Labor Rate Bill was passed by the Senate because of

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AASP/MA’s advocacy and continued efforts. This year, our goal is to put the Labor Rate on the Governor’s desk for signature, but we cannot do that without your help. As shop owners and leaders in your industry, you have the power to effect change. I would encourage you to join AASP/MA; we are the only association in the Commonwealth advocating on your behalf.

Additionally, I would encourage you to reach out to your legislators. If you are unsure of who your legislator is, visit https://malegislature.gov/Search/Find MyLegislator and type in your home and work address. Contact them by phone or email and tell them how important a Labor Rate increase is to your business.

(Note that you may end up speaking with their staff.) Legislators want to hear real-world experiences from you, their constituent. If you need any assistance (or would like a script to use from the association), please feel free to contact me.

We cannot continue to build the success of the collision industry without you and your continued support. Let’s win the Labor Rate battle together this year!

Sincerely,

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

in Massachusetts August 2, 2017 Adhesive Bonding Fuller Auto Body (Auburn, MA) August 16, 2017 Measuring Fuller Auto Body (Auburn, MA) August 29, 2017 Squeeze-Type Resistance Spot Welding Enterprise Rent-A-Car (Burlington, MA)

Jillian Bukhenik

AASP/MA EXECUTIVE DIRECTOR JILLIAN BUKHENIK (formerly Jillian Zywien) has been a senior account executive at Lynch Associates for over eight years.

She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

For more information, visit i-car.com

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AASP/MA ASKS YOU TO PLEASE SUPPORT AASP/MA SUSTAINING SPONSOR PPG!

Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org

for information on additional AASP/MA sponsorship opportunities!

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2017 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PLEASE TYPE OR PRINT LEGIBLY *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ City

Street

Phone Number ( E-mail Address

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

MEMBERSHIP TYPE (check one) Collision Repair Shop

ACCOUNTS PAYABLE CONTACT: Name: __________________________________________________

Mechanical Repair Shop

Phone Number: __________________________________________

Both, Collision & Mechanical Repair Shops Vendor

Email:____________________________________________________

RS Number (if applicable) ________________________________ ANNUAL MEMBERSHIP DUES

AASP/MA CHAPTER (check one) MidState Southeastern Northeastern Western

(The AASP membership year is from January 1 to December 31, 2017)

$40/month

$115/quarter

$425/year - BEST VALUE!

Monthly & Quarterly Dues are Automatic Credit Card Transactions ONLY*

NEW! Political Action Committee (PAC) Donation ...............$_____ Personal Contributions Only

ADDITIONAL CONTACT FOR NEWSLETTERS AND LEGISLATIVE UPDATES Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________

Check or Cash

Credit Card:

Visa

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Card Number: __________________________________________ CID Number: ____________ (3#s on back for Visa, 4 on front for AMEX) Expiration Date: ________________________________________ Name on Card: __________________________________________ Billing Address of Credit Card: ____________________________

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Signature: ______________________________________________

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Date: __________________________________________________

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PLEASE COMPLETE THIS MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP-MA OFFICE. 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

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[LOCAL] NEWS

Putnam Academy Hosts 5th Annual Collision Repair BBQ

O

n June 15, the Automotive Collision Repair Technology Department at the Roger L. Putnam VocationalTechnical Academy in Springfield welcomed hundreds of students, politicians, police representatives, collision repair industry vendors, shop owners, car enthusiasts and community leaders to the Fifth Annual Collision Repair Advisory Appreciation BBQ. AASP/MA Board member Gary Cloutier and Putnam’s own Paul Millette kept the food coming throughout the evening thanks to their smokers, while attendees were treated to aluminum welding equipment demonstrations by Fronius and a parking lot full of incredible antique cars from the Connecticut Valley Region Antique Automobile Club.

Pleased to see the BBQ still staying strong after five years, Putnam Collision Repair Instructor John Kennedy believes the annual gathering offers something truly special.

“The event’s evolved with more people participating. We open it up to the community, parents and area businesses. We want everyone to be involved and realize that Putnam Academy is a resource center for future technicians.”

The highlight of the BBQ came when Kennedy and fellow Putnam instructor Ray Lapite were presented with a special citation from the Springfield City Council in recognition for their department’s work in the community. The honor was presented by Marina Kauser and Theresa Borecki, aides for Springfield City Councilor Kateri Walsh.

The evening wrapped up with the drawing of various raffle prizes donated by West Springfield Auto Parts, Formula Products, LKQ/Keystone Automotive, Hampden Zimmerman Electrical, Rick’s Auto Body and the Putnam Electrical Technology shop. Additionally, Putnam Collision Repair students donated auto reconditioning and wash/wax services as part of the raffle to showcase what they have to offer.

The Putnam Collision Repair and Electrical Technology Departments wish to thank Larry Katz from Arnold’s Meats for supplying the chicken, ribs, hamburgers and hot dogs enjoyed at the BBQ.

Left to right: Ray Lapite (Putnam), John Kennedy (Putnam), Paul Zollner (West Springfield Auto Parts) and Gary Cloutier (AASP/MA)

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA member Craig Gridley (Lar ry’s Auto Body) volunteered at the event.

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chi, Sue Ryan ), Hampden County Sheriff Nick Coc Left to right: John Kennedy (Putnam Ken Downes) by to (Pho s iam (Putnam) and Representative Bud Will

Putnam instructors Ray Lapite and John Kennedy received a citation from the Springfield City Council. The honor was presented

by Theresa Borecki (far left) and Marina Kauser (far right), aides for Springfield City Councilor Kateri Walsh.

Putnam’s Ken Downes puts down his camera to smile for ours.

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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

© 2017, Ford Motor Company

SARAT FORD LINCOLN MERCURY 245 SPRINGFIELD ST. 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

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[LOCAL] NEWS

ADALB DEFENDS POWER TO

ISSUE TEMPORARY LICENSES While the vast majority of recent Auto Damage Appraiser Licensing Board (ADALB) meetings have featured lengthy debates concerning everything from regulatory issues to official complaints against insurance appraisers, the Board’s June 13 gathering at the Division of Insurance in Boston was brief and without controversy.

Board member Joseph Coyne, Jr. provided a brief update on his efforts to address a potential violation being committed by Access General Insurance Adjusters, LLC, a company domiciled in Georgia and doing business as “Access” in Massachusetts.

As discussed in recent issues of New England Automotive Report, Access is currently writing appraisals for claims in the Commonwealth without venturing into the state to view the vehicles in question. In addition to noting that he was “99.9 percent sure that we have a valid address and a valid person to contact with an extension,” Coyne stated that he was working with ADALB Legal Counsel Michael Powers in drafting a letter to Access to address the matter. They planned to present this draft to the Board at their June 25 meeting for review, discussion and possible approval.

The June 13 meeting also included a discussion of House Bill 2964, which seeks to amend Section 8G of Chapter 26 of the General Laws by adding the following text: Upon a declaration of an emergency in any area of the Commonwealth by the Governor or upon the declaration by the commissioner of insurance that severe weather conditions or other circumstances 22 August 2017

ADALB Member Bill Johnson

have resulted in a claims emergency, and notwithstanding any other provision of this section, an insurer may appoint temporary qualified appraisers to facilitate the prompt resolution of claims arising out of the emergency by notifying the Board either in writing, electronically or by facsimile. An appraiser already licensed in another state or an appraiser who works for an insurer that does business in Massachusetts and who regularly appraises motor vehicles in a state where an appraiser license is not required shall be considered a qualified appraiser. A qualified appraiser so appointed shall be considered licensed for all purposes of this section, that that status shall terminate upon a determination by the commissioner of insurance that temporary appraisers are no longer required to facilitate the resolution of claims.

issue emergency licenses, Board member Bill Johnson submitted a draft letter to be sent to Joint Committee of Financial Services Co-Chairman James B. Eldridge that would “just explain… that the CMR changes waiting to be approved will take care of any issues” related to the issuing of temporary appraiser licenses in the Commonwealth. After review and discussion, the Board voted unanimously to approve Johnson’s letter.

In other news, the Board voted to approve a proposed change to the renewal license for motor vehicle damage appraisers to include an email address on the application. Video of all ADALB meetings are available in the Members Only section of aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Stating that the passage and inclusion of this text would essentially take away the ADALB’s authority to

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MA STUDENTS EARN MEDALS at SkillsUSA Nationals The week of June 19-23 saw vocational school students from across America showcase their developing crafts and compete for the Gold during the 53rd annual SkillsUSA National Leadership and Skills Conference (NLSC) in Louisville, KY. The event was bolstered by the talents of two of Massachusetts’ most promising young automotive professionals.

Maren Williams, a senior at Shawsheen High School in Billerica and the subject of a recent article in New England Automotive Report (“Billerica Student Hits the National Scene”), finished her high school career by winning the Silver medal in the Auto Refinishing category at the National competition. In 2016, she placed sixth out of 38 competitors. David Fore, a student at Montachusett Regional Vocational Technical School in Fitchburg and a first-time National contestant, took home the Silver medal in Collision Repair Technology SkillsUSA is a national partnership of students, teachers and industry representatives working together to ensure America has a skilled workforce.

SkillsUSA is a national membership organization serving middle school, high school and college/postsecondary students who are preparing for careers in trade, technical and skilled service occupations. More than 335,000 students and advisors join SkillsUSA annually and are organized into 18,000 chapters and 52 state and territorial associations.

This includes 19,500 instructors who join as professional members. Including alumni, SkillsUSA membership totals over 394,000. SkillsUSA has served more than 12.5 million annual members cumulatively since 1965.

More than 600 business, industry and labor organizations support SkillsUSA at the national level through financial aid, in-kind contributions and involvement in the partnership’s activities. Documented support to the SkillsUSA Championships is valued at more than $36 million. More information is available at skillsusa.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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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

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[NATIONAL] NEWS

TV NEWS REPORT

SPOTLIGHTS DANGERS OF PHOTO ESTIMATING The use of photo estimating has been promoted by several auto insurers as an added convenience for customers that speeds up the appraisal process, but many in the collision repair industry contend that the practice exposes vehicle owners to the dangers of unseen damage and improper repairs. Recently, the Auto Body Association of Connecticut (ABAC) brought its concerns straight to television via a special report on news station WTIC/Fox 61.

In the broadcast, ABAC President Anthony Ferraiolo shared one of his recent experiences with a customer who had spent several days driving a vehicle with more damage than initially identified by a photo estimate.

“She brought the car to me, and when I physically inspected the vehicle, I noticed the tire was damaged; it was cut [and] the suspension was damaged. The person should have never been driving the vehicle; it was not safe for the road...The estimate that they had prepared was maybe a $600 or $700 estimate…The total cost of the repairs was about $4,000 when the job was done.”

Gerard O’Sullivan, director of consumer affairs for the Connecticut Insurance Department, told Fox 61 that photo estimating is a matter of customer choice.

“It is new technology, and it is something - like anything else - that the department is going to look at and make sure that it is working properly within the market. This is always going to be the consumer’s choice; it’s up to the consumer if they want to do it this way. If they feel more comfortable, then by all means that’s their right to have someone come out and look at the car.”

The Fox 61 report stated that Esurance, MetLife and Allstate were among the insurers currently utilizing the photo claim service.

“Allstate’s virtual estimating feature, QuickFoto Claim, allows customers to capture high-quality photos of the damage to drivable vehicles using their smart phone,” offered Allstate in a statement to the station. “Regardless of whether the inspection is done physically or virtually, hidden damage is sometimes found by the repair shop. In these situations, Allstate will work with the repair shop to review the supplemental damage and issue additional payment if necessary.”

Video of the news report can be viewed at http://fox61.com/2017/ 06/09/car-insurance-companies-offering-photo-claim-options/.

MAiNE GOvERNOR vEtOEs ANtistEERiNG LEGisLAtiON The fight against steering in the auto body Maine Governor industry suffered a Paul LePage considerable blow recently when Maine Governor Paul LePage vetoed Legislative Document 1540, otherwise known as “An Act to Protect Consumers’ Freedom of Choice in Auto Collision Repairs.”

Sponsored by Representative Scott Hamann (DSouth Portland) and passed by both the House and Senate, LD 1540 would have updated existing Maine statutes to include the following new language: if a domestic or foreign insurer or its agent or employee recommends the use of a particular motor vehicle repair service or network of repair services, the following advisory must be made to the insured or claimant at the time a claim for motor vehicle collision damage is reported: “You have the legal right to choose a motor vehicle collision repair shop to fix your vehicle. Your policy will cover the reasonable costs of repairing your vehicle to its pre-accident condition no matter where you have repairs made.”

In a letter addressed to the 128th Legislature of the State of Maine, Governor LePage offered the reasoning behind his decision to veto the legislation: LD 1540 appears to be a solution in search of [a] problem. if auto insurance companies were truly steering business toward specific collision repair businesses, this may be a discussion worth having. But over the course of the last nine years, Maine’s insurance bureau has only received six consumer complaints regarding this issue; two of those complaints were that insurers did not direct insureds to shops participating in the insurer’s networks.

Additionally, the superintendent of insurance conducted a study of the seven largest auto insurance carriers in Maine and did not identify any instances of steering. this bill micromanages Maine businesses and creates unnecessary regulations for Maine’s auto insurance industry.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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

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[LEGISLATIVE] FEATURE

A

by Joel Gausten

s you can see in this month’s cover story on AASP/MA’s most recent testimony in support of the Labor Rate Bill, the association is remaining active well into the summer in its efforts to build the success of the auto repair industry. For Legislative Committee Chairman Peter Langone, promoting passage of the Labor Rate Bill is a personal affair. As a shop owner in Agawam, he sees shops down the road in Connecticut operate under substantially stronger economic conditions than what he – and his fellow shops throughout the Commonwealth – experience at the present time.

“When a shop owner a mile down the road from me – and who is looking to hire the same people I am – is as much as $15 higher than my rate, it is a major problem. The Labor Rate is really important to all of our members, because this issue is in their faces every day. They write estimates day in and day out at a rate that’s really not where it should be.”

While the Labor Rate Bill has understandably received the majority of attention in and out of the industry this year, AASP/MA’s latest appearance at the State House in support of this legislation is just one item on a lengthy list of recent association activities in the Legislature. Highlights include the following:

On May 9, AASP/MA Executive Director Jillian Bukhenik, lobbyist Mark Molloy and AASP/MA President Molly Brodeur met with Senator James Eldridge, who is the senate chair of the Joint Committee of Financial Services, which oversees the Labor Rate Bill. (The group met with his House 30 August 2017

New England Automotive Report

counterpart, Representative Aaron Michlewitz, on April 25.) Brodeur is one of Senator Eldridge’s constituents, and he visited her business, Al Brodeur’s Auto Body in Marlborough, in 2015.

On May 10, Molloy and Bukhenik met with Senator Eric Lesser, who is the vice chair of the Joint Committee of Financial Services, regarding the Labor Rate Bill.

On May 16, AASP/MA representatives attended the Joint Committee of Consumer Protection and Professional Licensure’s hearing on SB 157, which the association opposes. This legislation attempts to remove the inspection sticker-scraping requirement.

AASP/MA provided testimony in opposition, stating (in part), “As drafted, SB 157 is a significant step backwards in protecting the public. Substituting a ‘notice’ that a motor vehicle presents environmental or safety problems instead of removing the actual certificate of compliance does little to nothing to ensure that motor vehicles stay in compliance with the Commonwealth’s laws and regulations. Without the removal of the inspection sticker, no law enforcement personnel will know that an individual is driving a vehicle that presents a public safety or environmental hazard to residents throughout the Commonwealth.

This area of law is not just for the protection of the owner of the vehicle, but other members of the general public who may be harmed by a noncompliant vehicle.”

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On June 5, AASP/MA staff met with Representative Jen Benson on several matters before the Joint Committee of Consumer Protection and Professional Licensure, including Senate Bills 157, 156 and 109.

Senate Bills 109 (see next bulleted item below) and 156 are AASP/MA-filed matters. Senate Bill 156 aims to move the Auto Damage Appraiser Licensing Board (ADALB) from the Division of Insurance to the Division of Professional Licensure.

On June 6, Bukhenik testified before the Joint Committee of Consumer Protection and Professional Licensure in support of SB 109. This legislation reinforces the fact that a warranty is a warranty. Most auto insurance policies require auto body shops to use “aftermarket” or “like, kind or quality” parts, even though this action may void a motor vehicle’s warranty. Most consumers are unaware of this fact. Of further concern, consumers should not be required to choose whether to have a repair covered by insurance or pay for the repair out of pocket to keep the vehicle’s warranty in place. Accordingly, this legislation prevents a motor vehicle dealer or registered repair shop from taking any action (i.e., repair) that will void the motor vehicle’s existing warranty.

Additionally, AASP/MA recently met with Representative Louis Kafka, a longtime supporter of AASP/MA’s efforts who filed his own Labor Rate language for the last several sessions.

“Representative Kafka has been a champion and supporter of the Labor Rate Bill,” explains Bukhenik. “He has filed our former language, which does not have a sunset clause and includes all the New England states’ average, for the last two sessions. He understands the importance of its passage for his constituent shops and the industry. The more irons we have in the fire, the better our chances for success. We continue to advocate that both bills be released favorably from committee. AASP/MA is indebted to Representative Kafka and current Labor Rate Bill sponsors Representative Cabral and Senator Welch for their continued support of this issue.”

If there is one thing that every member of AASP/MA needs to know about the legislative process, it is that it often takes years to score a victory. While some shops could be dismayed by the thought that 2017 marks the 10th anniversary of the Labor Rate Bill push, the truth is that 10 years is not a long time for a bill to gain traction.

“Sometimes our members don’t realize just how much resistance is coming from the insurance side,” Langone

observes. “If you were the payer, you certainly wouldn’t want someone passing a bill that demanded that you pay more money per hour. The opposition is strong, but we have many legislators on our side. Slowly, we’re winning people over. Hopefully, we’ll get a win in the end.”

“The legislative process is about making incremental progress,” adds Bukhenik. “Each year, the association has been able to advance the Labor Rate legislation in different ways. Last session, we were able to get the Labor Rate Bill passed by the Massachusetts Senate – the first time in its history. At a previous session, we were able to get the legislation passed by the House. With the progress we made thus far, it is now a matter of putting these efforts together.

The legislative process is not a sprint; it’s a marathon. We continue to educate policymakers and advance this issue each year. Don’t get discouraged – get involved!”

For AASP/MA members who want to help but simply can’t find the time to attend a legislative hearing, Langone offers a convenient – and incredibly helpful – alternative.

“People are busy, but they can always help us through monetary support,” he says. “It’s that simple. If you can’t be out there, we at least need your membership dues and your willingness to make political donations when necessary.”

In addition to offering financial support to the cause, shops can also help simply by taking the time to contact their local representatives and sharing their issues, concerns and hopes.

“It remains extremely important that we, as an industry, educate legislators on the importance of an increased Labor Rate,” Bukhenik says. “They need to hear from shops, because they are the experts in how the stagnant Labor Rate has affected their ability to hire new technicians, invest in new equipment and continue to improve their business so they can repair cars safely and efficiently. All politics is local.

Visit https://malegislature.gov/Search/FindMy Legislator, find your legislator and make a point to make the connection.”

Ultimately, the success of any business is the result of how much time, effort and dedication the owner puts into it. The same can be said for the life of any legislation that AASP/MA files, supports or opposes. For example, if AASP/MA doesn’t actively oppose Senate Bill 157’s goal of removing the inspection sticker requirement, consumers are put at risk and there won’t be a requirement to bring their vehicles to an appraiser, i.e., a Massachusetts auto body shop. But the association can only do so much alone – it is up to every person reading this piece to add their time and voice to what AASP/MA is hoping to do on behalf of the automotive community. For more information on the association and how to get involved, visit aaspma.org or call the AASP/MA offices at (617) 574-0741.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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FIGHTING FOR THE FUTURE: [COVER] STORY

Inside the 2017 Labor Rate Hearing

by Joel Gausten

O

n July 11, members of the AASP/MA community traveled to the State House to testify before the Joint Committee on Financial Services in support of the association’s Labor Rate Bill. The team included AASP/MA President Molly Brodeur, Collision Director Rick Starbard, Board member Gary Cloutier and Legislative Committee Chair Peter Langone (who attended the hearing but did not testify) along with Springfieldbased collision repair educator John Kennedy (Roger L. Putnam Vocational Technical Academy).

During her testimony before the Committee, Brodeur stated that suppressed Labor Rates for close to 30 years now have caused many Massachusetts shop owners to remortgage their homes and property, borrow money or dip into their retirement savings to survive. She observed that second-generation operators like herself have their own unique set of challenges – including how to properly equip their facilities and attract and retain new employees.

“The average age of technicians in body shops right now is over 50 years old. Collision work is labor-intensive; shops are having a hard time finding young people who are excited and want to enter this trade. It’s certainly not for a lack of trying on the repairers’ side; many shop owners support their vocational schools and serve on committees and advisory boards. But on 34 August 2017

AASP/MA at the State House.

AASP/MA Collision Director Rick Starbard offered visual proof that Massachusetts has the lowest Labor Rate in the country.

the flipside of that, we can’t really offer [new technicians] a competitive wage, so they get lured away from the industry, oftentimes before they even graduate.”

Brodeur added that increasing technologies have resulted in vehicles becoming more complex, requiring shops to make new – and quite substantial – investments.

“We’re not talking about $20,000; we’re talking about $200,000 to $300,000…It’s very difficult for shops to justify making those kinds of investments when our Labor Rate has not changed in 30 years.”

New England Automotive Report

Front: Molly Brodeur. Back (left to right): Rick Starbard, John Kennedy, Gary Cloutier and Peter Langone

Noting that it was the fifth time since 2007 that he had appeared before the Committee, Starbard pointed out the irony that the insurance industry has the funds for “bonuses, airplanes [and] advertising budgets” but continues to pay shops in the Commonwealth the lowest Labor Rate in the nation. To illustrate his point, he displayed a large sign listing every rate in the United States. Massachusetts was clearly in the bottom spot.

“We need our shops to invest, and we need to be able to train our technicians. But we need to be properly

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[COVER] STORY reimbursed for that…We are basically paid at the same rates now that we were back in the ’80s. I also own a mechanical shop, and my rates are twice the amount of what we charge for body repairs.”

Kennedy testified that he has seen several of his former students leave the industry due to the lack of financial incentives.

“After the first initial year or two [of] working in Massachusetts, a lot of them tend to go over the border [to Connecticut],” he shared. “What I’d like to see is help for our future technicians.”

During his impassioned testimony, Cloutier stressed that conditions with the collision industry are worsening by the day at the current Labor Rate.

“We’re in survival mode. There’s no one coming up. Who are we going to get to fix these cars? We’ve run out of people. It’s great to be busy; I’m booked a month out all the time. Most people would say that’s a good thing. That’s great, but at the end of the day, we can have $1 million in business, but if it costs you $1.1 million to do [the work], then what’s the point? There’s nothing left at

36 August 2017

the end of the day.”

Robert O’Koniewski, executive vice president of the Massachusetts State Auto Dealers Association, and Dave Brown of Woodworth Motors in Andover also offered oral testimony in support of the Labor Rate Bill.

Not surprisingly, representatives of the insurance industry came out in full force to oppose the legislation, stating that the financial issues facing Massachusetts shops have more to do with overpopulation and market forces than with manipulation by carriers.

“There are too many shops, and the number of repairs are going down,” testified John Murphy, executive director of the Massachusetts Insurance Federation. “Frankly, on the horizon, it looks worse if you look ahead, listen and read [information] on these automated, self-driving vehicles…This is an industry that is ripe for consolidation.

[There are] too many shops and too few repairs.”

“The fact of the matter is that there are too many shops – not just here in Massachusetts, but in Connecticut,

New England Automotive Report

AASP/MA’s Gary Cloutier (left) and Putnam Academy’s John Kennedy testified in support of the Labor Rate Bill.

Rhode Island [and] Maine,” added Frank O’Brien, vice president of state government relations for the Property Casualty Insurers Association of America (PCI).

For more information on the Labor Rate Bill and AASP/MA, please visit aaspma.org or call (617) 574-0741.

Additional insights on the Labor Rate Bill are featured in this month’s Legislative Feature on page 30.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

PLEASE RELEASE ME I have been representing collision repair shops for many years, and I would have thought that I had heard it all. Yet, new issues continue to come to my attention. This month, it is a body shop that has very limited operating hours – so much so that customers and insurers have had difficulty getting cars off the facility’s lot.

In this particular case, a badly damaged car was towed to the shop. The vehicle was declared to be a total loss by the customer’s insurer, and the insurer agreed to pay the owner the actual cash value of the car and to take title to it. As instructed, the vehicle owner went to the shop and signed a release, allowing the insurer to pick up the car. When the insurer’s tow company came to get the car, however, the shop was closed – or was closed at least to the extent that it would not release the car to the insurer at that time. It seems that the insurer’s tow carrier would have to show up between 10am and noon (or between 2pm and 3pm) Monday through Thursday – or before 10am on Friday.

After a week of trying and failing to be able to retrieve the car, the insurer sent a notice to the vehicle owner, telling him that they were stopping payment of storage charges and he would have to pay for any additional storage charges out of his own pocket. But the customer had not done anything wrong, so why should he be saddled with any of the storage costs? The customer had signed an authorization to have the repair shop release the car to the insurer and was not in any way involved in the shop refusing to release it.

CaN tHE SHOP DO tHiS? It was unclear to me whether the shop had a legitimate reason for limiting the hours during which a customer or insurer could pick up a car. Perhaps it was a small shop that couldn’t afford to have their techs take time out of their days to assist with the pickup of total losses. On the other hand, perhaps the shop did not really have legitimate reasons for limiting its pickup hours but saw it as a way to squeeze extra storage dollars out of customers and insurers by intentionally delaying the release of cars.

There appears to be no black-and-white law that definitively keeps shops from limiting their hours (or even from restricting the time during which outside tow companies can come to the shop to pick up total losses or to remove damaged cars to competing repair shops). Yet, it does not seem fair to the customer, nor does it seem fair to the insurers (that want to be able to pick up total losses) or to other shops (to which damaged vehicles may be taken for repair).

If interpretation of its language is stretched, there may be some help in the Motor Vehicle Damage Repair Shop registration statute. In particular, Section 8 of that law makes it illegal for a repair shop to “without legal authority, prevent the owner of a motor vehicle from removing the same [from the shop].” If a shop violates this law, it could lose its registration or be fined – or could even have the shop’s owner be jailed for up

to six months. If a shop has hours so limited that it effectively prevents a car owner or their insurer from being able to retrieve their vehicle, is the shop violating this law? Again, it may be a stretch to interpret the statute this way. But perhaps it is a stretch that courts could be willing to make under the right circumstances.

Further, under applicable statutes, garagekeeper’s liens for storage (whether the storage is incurred voluntarily or as incidental to involuntary tows) are good only for a shop’s “proper” charges. If a shop significantly limits the hours during which a stored vehicle can be picked up, are its charges “proper” if the vehicle owner or insurer is effectively prevented from being able to remove the car within a reasonable period of time? Again, while it is not clear, courts could well side with the car owner or insurer if faced with the issue. iS tHE iNSURED OR iS tHE iNSURER RESPONSiBLE FOR tHE StORagE CHaRgES? The insurer’s liability for storage charges, if any, comes from its contractual obligations under the vehicle owner’s insurance policy. If there is a covered collision or comprehensive loss, the most recent version of the standard Massachusetts private passenger auto policy says, “We will also pay reasonable and necessary expenses for towing, recovery and storage of your auto.” Additionally, the policy says that if you are in an accident or suffer a loss, then you are required to “do whatever is reasonable to protect the auto from further damage or loss.

Where there is coverage provided by this policy, we will pay for any reasonable expenses incurred in doing this.” Storing a vehicle is generally considered to be an appropriate way to protect a car from further damage or loss.

It should be understood that there are two prerequisites under these sections of the policy that must be met in order for an insurer to be responsible for payment of storage charges.

First, the vehicle owner must have purchased collision, limited collision or comprehensive coverage that covers the particular loss. If there is no coverage for the underlying damage, then New England Automotive Report

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[LEGAL] PERSPECTIVE there is no coverage for the storage charges. Second, storage expenses must be “reasonable.” And here is the potential problem: If the storage facility has such limited hours that it is difficult to retrieve a stored vehicle, perhaps at some point the storage charges become unreasonable. It is never clear when that point is reached, but depending on how egregious the storage facility’s limited hours are, there could come a date when the storage charges truly are unreasonable.

But how about our particular case, where the car was declared to be a total loss and the insurer was taking title to it and possession of the salvage? Why should the vehicle owner be responsible for storage charges once they release their rights in the car to their insurer?

In this situation, there may be additional help in another part of the insurance policy. The insurer’s right to take possession comes from a paragraph that says, “If we pay for the total loss of your auto, we have the right, if we so choose, to take title to that auto.” In our case, the insurer was paying the insured the full actual cash value of the vehicle as a total loss and was requiring the insured to sign the title over to the insurer.

If an insurer is taking title to a total loss vehicle, then at some point risk of loss and financial obligations relating to the vehicle are transferred to the new owner, i.e., to the insurer.

Under some theories of law, this may occur even before title is officially transferred, when the insurer notifies the owner of its intention to take the car or at least when the insurer exercises “dominion” over the vehicle, i.e., when the insurer starts treating the car like it already owns it.

If the insurer has taken title to the car in our case (or has exercised dominion over it), then it is suggested that the storage

charges have then become the insurer’s problem, particularly since the vehicle owner has done nothing wrong. No matter what notice the insurer has sent to the insured, at some point it has subjected itself to the obligation to pay for further storage, and the customer should not be held liable for it.

CONCLUSiON It is unfortunate that a particular repair shop has chosen to limit its hours to such a degree that it is effectively depriving customers and their insurers of the right to retrieve their cars.

Yet, if the insured customer has not acted improperly and has done what their insurer has asked (and if the customer knows what the law really says), then it would appear that it should be the insurer that bears the cost of additional storage caused by the repair shop’s action – or at least it should be the insurer that bears the burden of fighting with the shop about it.

Yet, knowing the law and convincing an insurer of it may be two very different matters. Insurers may be unlikely to change their ways as long as they can get away with avoiding paying what may be their obligation. At least that may be the case until some angry insured makes the effort and spends the money to take their offending insured to task, perhaps collecting treble damages and attorneys’ fees as the result of the insurer engaging in unfair claims settlement practices.

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.

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New England Automotive Report

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ASK MIKE [INDUSTRY] ADVICE

Do you have a question for Mike? Contact New England Automotive Report Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

What are some common killers of productivity that most shop owners don’t realize exist?

In our newest regular feature, we welcome industry icon and former VAbased shop owner Mike Anderson (Collision Advice) to discuss some of the collision repair community’s biggest questions and concerns. This month, we tackle the topic of hidden killers of productivity that can affect virtually every shop out there. We at New England Automotive Report hope you find this 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 subsequent issue.

New England Automotive Report: Based on your experiences working with shops in this industry, what do you see as some of the • Number one is scheduling. We take in more cars than we can process in a given common killers of productivity that most day, and they sit for a couple of days. shops don’t realize even exist?

Mike Anderson: As I travel across the country and work with hundreds of shops, one of the things that I have learned is that for every person you have in the collision department of your body shop – let’s say four techs or three techs and a helper, but not anyone in the refinish department – you should be turning between $53,000 to $63,000 a month in sales on average per technician. Therefore, five times $63,000 would be $315,000. But when I go in and see a lot of shops, they’re not turning those kind of numbers; they’re only turning maybe $45,000 a month in sales per technician.

When we start looking at that, we’re like, ‘Wow, they should be turning more.’ Now, I want to add a caveat there – with a smile – that this does not apply to Larry Montanez’s consulting clients in New York! But when I start to look at why people are not being productive enough, I generally look first at cycle time in three microcycles: Pre-repair, repair and post-repair. Pre-repair is arrival to start, repair is start to complete and postrepair is complete to delivered. There are a lot of things that happen before the technician gets the vehicle or after they are done with it that really impact our cycle time, which impacts our sales.

There are four things that impact pre-repair: 46 August 2017

• The second thing is administrative bottlenecks; shops are understaffed in the office, and the shop tears down cars faster than the office staff can write the estimate or get approvals.

• The third thing is 100 percent disassembly.

If we don’t do that in the very beginning, we’re going to have starts and stops throughout the process, which impacts productivity.

• Last but not least, we have to be able to get the right part the first time as fast as possible.

If we can do those things really well, then the vehicle tends to go through the shop faster. The faster we fix cars, the quicker we can get other cars in and improve our sales. There’s a myth out there that if you fix cars fast, you’re not doing quality work. I have to disagree with that. I know shops that fix cars fast and do exceptional work, and I know shops that take a long time and do horrible work. There are arguments on both sides, but at the end of the day, you can fix cars fast and do quality work as long as you schedule properly, you’ve streamlined your administrative processes and you’re not bottlenecked there. You also have to do a

New England Automotive Report

100 percent teardown and have a really good sheet. If we do those things, we tend to see that the vehicle flows through the shop very fast.

Then we have post-repair. A lot of times, the tech gets done with the car, it’s checked, washed and cleaned up. But paperwork chases the car; we’re waiting to get an approval from somebody, finalize the car or get payment. Now, the vehicle sits for a day or two. And all those problems are caused by not doing that pre-repair process right.

So when we look at productivity, a lot of times people go in and “5S” their shop – sort, set, shine, standardize, sustain – and organize everything, buy more paint booths and frame machines and hire more technicians. But I find that the problem in a lot of cases isn’t in the production side of the shop; the problem is the things that happen before you even start on a car.

NEAR: All of this sounds great, but what are some hurdles that shops face in getting their pre-existing staff to change to where this is fully embraced and implemented?

MA: What I tend to see is that a lot of owners and managers try to do it to their employees and not with their employees.

When you do something to your employees, it’s like a dictatorship; they’re just going to push back at you. But when you do it with them, their voice counts; they feel like they’ve been heard. They’ve got skin in the game; they were part of the discussion to say how the shop is going to do things.

NEAR: What are the fundamental first steps a shop owner should take if they see that their business’ productivity is not where it needs to be? Also, are there general things that any shop – regardless of size – needs to do to get the process moving in a better direction?

MA: One is looking at data – data tells a story. I once learned something from a guy who was a higher-up at a dealership group.

He said, ‘Mike, data tells you to do one of two things – celebrate or go look.’ Let’s say that the average length of rental or cycle time in your area is 12 days and you’re at nine

continued on page 49

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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

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

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

www.iramotorgroup.com

New England Automotive Report

August 2017

47

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GOT CLUTTER???

If you have unused, unwanted tools, equipment, parts or materials taking up valuable shop space, ÃÌÊÌ i in New England Automotive Report. Let us find someone who wants your stuff!

Fill out the form below and fax to (973) 235-1963 or email to joel@grecopublishing.com MAKE SURE TO LEAVE A CONTACT NUMBER & EMAIL WHERE POTENTIAL BUYERS CAN REACH YOU.

What are you getting rid of? (Be specific)

Price: $_________

Is Price Negotiable?

Do you have photos of the item being sold?*

YES _____

NO _____

YES _____

NO _____

Make/Model/Year (for parts): Model Years Spanned (i.e. 2003-2005): Part Name (Be specific): Condition (Please check one):

Excellent _____

Good _____

Fair _____

Poor _____

Where is the item located? (City/State) ______________________________________________________ CONTACT INFORMATION: Your Name: Company Name: (Optional) Contact Phone Number (REQUIRED!) Contact Email:

*IMPORTANT! If you have photos of the items being sold, please email them to joel@grecopublishing.com or call ­603®Ê680-4324 for more information.

Photos sent via Fax WILL NOT be published.

FAX THIS FORM TO NEW ENGLAND AUTOMOTIVE REPORT @ (973) 235-1963 OR EMAIL TO joel@grecopublishing.com.

48 August 2017

Call 603 680-4324 with questions.

New England Automotive Report

NEAR0817.qxp_NEAR1014 7/17/17 3:28 PM Page 49

[INDUSTRY] ADVICE continued from page 46 days. You’re three days better, and you should celebrate with your employees. We don’t celebrate often enough. All we do is beat them up when things are bad; we need to celebrate more. But if the average length of rental is nine days at you’re at 12, well then you need to go look. You need to spend some time out in the shop and see what’s going on.

We have something called the Ohno Circle; that is something from Toyota. That is when you put a circle in the middle of the floor, and if you thought somebody had managerial potential, you would say, ‘Stand in that circle and just observe and tell me what you see at the end of the day.’ You come back later and ask, ‘What do you see?’ The candidate responds, ‘Well, I noticed this person’s walked back and forth six times.’ At the end of the day, you would find out why that person was walking back and forth six times. Maybe it is something where you can relocate the equipment closer to him or her to make it more efficient.

In Japanese culture, that is how it was determined whether someone was a good managerial candidate or not – through their ability to observe waste or inefficiencies.

Sometimes, when you’re living inside your own little aquarium, you have a sheltered look – you can’t see the forest for the trees.

It’s good to sometimes just observe and note what you see.

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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 (collision advice.com).

New England Automotive Report

August 2017 49

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N

FOR SALE

Contact: Gary (413) 562-0321

offer

W

E

N

G

L

A

N

D

AUT M TIVE

A LEFT uniside panel with full quarter panel. Bought new. Fits a 2015 Buick LaCrosse.

GM Part # 22997609 List price is $931.83. Cost seller $698.88. Panel is missing a section of the lower front rocker area from the "A" pillar to the "B" pillar

Will sell for $150 or best

E

Will sell for $150 or best offer

Two Pro Spot welders

AD INDEX Accudraft Paint Booths ............................OBC Audi Group ....................................................25 Audi Shrewsbury ..........................................32 Axalta Coating Systems ..................................6 Balise Wholesale Parts Express ......................4 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................16-17 BMW/Mini of Warwick ................................20 Colonial Auto Group ......................................9

One is new and usable; second can be used for spare parts

$1,200

Empire Auto Parts..........................................49 Enterprise ........................................................11

Location: Manchester, NH

First Chrysler-Dodge-Jeep-Ram ..................13

(price negotiable)

First Hyundai..................................................13

First Ford ........................................................13

Contact: Lucie Ducharme (603) 624-4086 jenniferp@henrysab.com

Continental Flat Rack with two pulling towers, one tower dolly, four clamps and complete UMS (universal measuring system).

Ira Toyota of Danvers ....................................12 Kelly Automotive Group............................IBC Kia Group........................................................37 Linder’s, Inc. ..................................................36 Long Automotive Group ..............................24 Mazda Group..................................................40 McGovern Chrysler Jeep Dodge Ram ........42 Mercedes-Benz of Shrewsbury ....................32

or kevin@capeautobody.com

Excellent condition

Located in Walpole, MA

Mopar Group..................................................38

$650

(price negotiable)

Contact: Ed Balabanis (508) 668-8041 or Balshop1@gmail.com

New Left Rear ¼ Panel for VW Jetta 2005-2010 w/ small rocker section removed. Excellent condition.

$75

Location: Seekonk, MA Contact: Dickie-David Cabral (508) 336-7550 or srow@fullchannel.net 50 August 2017

Hyundai Group ..............................................33 Imperial Ford ..................................................21

Contact: Kevin (508) 747-0316

Model years 2006-2007

FutureCure ......................................................23 Honda Group..................................................27

Ira Subaru........................................................13

$5,000 or best offer

Rear Liftgate for a 2006 Honda Odyssey (paint code R519P)

Ford Group ....................................................21

New England Automotive Report

Nissan Group..................................................44 PPG ....................................................................3 Robertsons GMC Truck ................................29 Sarat Ford Lincoln..........................................14 Sentry Group ..................................................28 Subaru Group ................................................39 Tasca Group ....................................................35 Toyota Group..................................................47 Volvo Group....................................................45 VW Group ......................................................43 Wagner BMW of Shrewsbury ......................32 Wagner Kia of Shrewsbury ..........................32 Wellesley Toyota/Scion ................................29 Wheel Collision Center ................................49

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