New England Automotive Report August 2019

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New England Automotive Report

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August 2019 • Volume 17, No. 8

DEPARTMENTS

CONTENTS FEATURES

PRESIDENT’S MESSAGE By Molly Brodeur 8 | Strength in the Thousands

EXECUTIVE DIRECTOR’S MESSAGE

By Evangelos “Lucky” Papageorg

10 | What Is Negotiable?

LOCAL NEWS 16 | AASP/MA Labor Rate Survey Gains Momentum 24 | AASP/MA Testifies in Support of ADALB Legislation

NATIONAL NEWS 34 | AASP/MA Joins National Call for OEM Procedures 36 | Auto Manufacturers Clarify Positions on “Opt OE” Parts

ALSO THIS ISSUE

By James Castleman

10 | WHERE’S LUCKY? 11 | LETER TO THE EDITOR 14 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS 15 | AASP/MA VENDOR AFFINITY PROGRAM SPONSOR BENEFITS

Accudraft Paint Booths ................................OBC American Honda Motor Co. ............................27 Audi Group....................................................22 Best Chevrolet/Best CDJR ..............................IFC BMW Group ..........................................................18 BMW/Mini of Warwick ..................................32 Boch Chevrolet ........................................25, 42 Boch Genesis ................................................42 Boch Hyundai ................................................25 Colonial Auto Group ........................................4 Empire Auto Parts ..........................................46 First Chrysler-Dodge-Jeep-Ram......................42 First Ford ......................................................42

2019 AASP/MA Golf Outing Highlights

40 | LEGAL PERSPECTIVE

6 | AASP/MA MEMBERSHIP APPLICATION

ADVERTISERS’ INDEX

28 | COVER STORY By Joel Gausten

The 1963 Consent Decree: What Does It Mean Today?

First Hyundai ................................................42 Ford Group....................................................37 Fred Beans Parts ............................................42 Genesis of Norwood........................................25 Honda Group ................................................45 Hyundai Group ..............................................13 Imperial Ford ................................................37 Ira Subaru......................................................13 Ira Toyota of Danvers ......................................12 Kelly Automotive Group ................................IBC Kia Group ......................................................13 Linder’s, Inc. ................................................25 Long Automotive Group ..................................9 Mazda Group ................................................38 McGovern Chrysler Jeep Dodge Ram ................39

Mopar Group..................................................17 Nissan Group ................................................44 PPG................................................................3 Quirk Wholesale Parts ....................................35 Reliable Automotive Equipment ........................7 Sarat Ford Lincoln..........................................39 Sentry Group ................................................43 Sherwin-Williams..........................................44 Subaru Group ................................................20 Tasca Group ..................................................26 Toyota Group ................................................33 Volvo Group ..................................................23 VW Group ....................................................21 Wellesley Toyota/Scion ..................................46 Wheel Collision Center ....................................11 New England Automotive Report August 2019 5

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2019 - 2020 as provided for in this contract.

REV 5/19 6 August 2019

New England Automotive Report

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PRESIDENT’S MESSAGE

Strength in the Thousands

By Molly Brodeur

As you are already well aware, your membership with AASP/MA connects you to a load of information and resources and a great community of shops throughout the state. But you may not have considered that your membership extends even further than that. In fact, it goes well beyond the borders of Massachusetts.

By being part of AASP/MA, you are actually part of a network of tens of thousands of collision repair shops all across the nation through our affiliations with AASP National and the Society of Collision Repair Specialists (SCRS). AASP National alone represents over 8,000 shops among 14 states. SCRS represents dozens of state associations, thousands of collision repair businesses and tens of thousands of specialized professionals who work to repair collision-damaged vehicles.

Through your membership with AASP/MA, you are actually part of a much larger voice. A voice that extends to all corners of the nation.

Our affiliations with these national groups puts AASP/MA at the forefront of getting timely and crucial information that can impact us here in Massachusetts.

When information from these groups is shared with us, we make certain to filter this down to our members. One example is our weekly tip email where we share information from the SCRS- and AASP National-supported Database Enhancement Gateway (DEG). If a group like SCRS is putting on a webinar or shares information, we make sure to get that information to you.

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We also are able to stay on top of legislative initiatives all across the country. This is a huge advantage to us as an association, as we can get a front-row seat to what is being done elsewhere to pass bills in support of proper repairs and consumer safety. We will continue to work hard to pass our own legislative initiatives here at home, but there is great value in seeing what else is happening around the country. Those efforts can positively impact repairers here in Massachusetts as well.

Many of the challenges we face when it comes to battles with insurers, trying to get reimbursed for proper repairs or parts issues are shared by collision repairers around the US. Recently, AASP/MA Executive Director Lucky Papageorg and I shared ideas and concerns with other members of AASP at a National Board meeting held in North Carolina. We learn a lot from these experiences.

This alone is a reminder that we are not alone here in the Commonwealth.

As a member of AASP/MA, you are part of a network that is nearly 20,000 shops strong throughout the country.

We are all connected and are part of a huge scope of repairers. Strength in numbers is key to making change and making a difference. United we stand.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA PRESIDENT MOLLY BRODEUR is the chief operating officer of Al Brodeur’s Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com G

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AU M TIVE AUT T TI TIV STAFF

AASP/MA EXECUTIVE COMMITTEE

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco - thomas@grecopublishing.com

Lea Velocci - lea@grecopublishing.com

SALES DIRECTOR

EDITORIAL/CREATIVE COORDINATOR

Alicia Figurelli - alicia@grecopublishing.com

Alana Bonillo - alana@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com Christopher Rizzi - chris@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

CELEBRATING 30 YEARS 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 © 2019 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

WWW.AASPMA.ORG MASSACHUSETTS

8 August 2019

New England Automotive Report

TREASURER Matthew Ciaschini LEGISLATIVE CHAIR Peter Langone IMMEDIATE PAST PRESIDENT Paul Hendricks

PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rob DelGallo

AT-LARGE DIRECTOR Adam Ioakim

AASP/MA DIRECTORS Ray Belsito Alex Falzone Rick Fleming

Joshua Fuller Kevin Kyes Frank Patterson

Mike Penacho Dana Snowdale Bill Spellane

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

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

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EXECUTIVE DIRECTOR’S MESSAGE

What Is Negotiable?

EVANGELOS “LUCKY” PAPAGEORG

As the executive director of this association, I have the opportunity to hear from shops all across the state on a variety of issues that arise on a daily basis. One such issue stems from the wording in 212 CMR2.04 (e). In part, this section reads, “…The registered repair shop must [emphasis added] prepare an appraisal for the purpose of negotiations [emphasis added].”

This statement in and of itself begs the question, “Why?” And more importantly, “What is negotiable?”

As a collision shop appraiser, you are expected to correctly identify and research ALL the correct repair procedures to restore the vehicle to the same crashworthy condition it was in when it left the factory. The research and documentation process

alone could take hours. If you have been following industry changes and trends, you are likely keeping a document file of all the research and dated printouts as “proof.” You would have performed pre-repair scans to identify any codes that are in existence when the vehicle arrived (prior to any “disassembly” by your team). You would have calculated and written these repair costs into your estimate, as you are required to do per 212 CMR2.04 (e): “The appraiser shall itemize the costs of all the parts, labor, materials and necessary procedures required to restore the vehicle to pre-accident condition and shall total such items.”

Keep in mind that all this is done because 212 CMR 2.04 (e) states, “The

appraiser representing the insurance company and the registered repair shop selected by the insured to do the repair shall attempt to agree on the estimated cost of such repairs.” You have done all the research and written an “estimate,” which is technically a “blueprint” of how you MUST repair the vehicle in order to accept the liability for doing so, taking into account “…manufacturer warranty repair procedures, I-CAR, Tec Cor and paint manufacturers’ procedures…” Again, why? What is negotiable?

It would appear the “why” is so that an individual representing the insurance company, NOT the vehicle owner, can arbitrarily reduce your final summation of the “blueprint” of repair. This reduction is achieved by

AASP/MA Executive Director Lucky Papageorg is on the move!

Read below for his upcoming stops.

In the third week of August, Lucky will be visiting the Western region.

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

2

He will be spending the first week of September visiting shops in the Southeast region.

41 August 19 - September 13

During the second week of September, he is visiting shops in the Midstate region.

2019

AASP/MA chapter meetings will resume at the beginning of September.

Keep an eye out for future meeting dates and locations!

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

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

10 August 2019

New England Automotive Report

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

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disregarding any and (in some instances) all documentation you have provided to substantiate your position on the requirements to restore the vehicle to a crashworthy condition. These are requirements that are based upon the guidelines the OEM built the vehicle with in the first place. These are the same guidelines that allow the OEM confidence to accept the liability of selling the vehicle in the first place.

Is safety a negotiable item? Do you – the repairer – have the right to negotiate away the safety-required procedures because the insurance appraiser simply states, “We don’t pay for that”? Should you be expected to perform all the required procedures for free? How and by whom should an industry standard be determined? Does the mere fact that an insurer can coerce a shop into not charging for or, worse yet, not performing a specific procedure to a manufacturer’s specifications lower the industry standard or obliterate it completely? I think anyone who followed the John Eagle case in Texas knows the answer to these questions.

The answer is an emphatic, “NO!” Here is a novel stab at a solution: Let the expert in the repair process – the customer’s selected repair shop – write a “blueprint” of how the vehicle will be repaired and calculate the retail cost to perform ALL repair procedures as researched and specified. Have the insurance appraiser review the “blueprint” and disprove, through documentation, anything that seems to be incorrect and then pay the final figure. Once the repairs are completed and the insurer can prove that the procedures charged for were not done as specified on the final invoice, the carrier can pursue the shop for insurance fraud.

As a repairer, you must realize that if you bill for a single nut, bolt or clip that was not used, you are committing insurance fraud. In this fashion, those who do ALL the research and proper repairs will be compensated for doing so, and less knowledgeable shops can choose to be ding and minor dent specialists and be reimbursed accordingly (while not continued on page 46

[LETTER] TO THE EDITOR Dear Joel: Thank you for your recent article on your poor repair experience (“A Repair Nightmare: New England Automotive Report Editor Tells All,” July 2019). I think what you went through drives home the point that consumers should always go to shops that are taking a stand for proper repairs and don’t treat jobs like they’re part of an assembly line. As a writer for our industry, you know several shops here in Massachusetts that could have provided you with a safe and reliable repair. You work with great shops every day. If you get into another accident, go to one of us!

Peter Langone Langonet Auto Body & Frame Agawam, MA Editor's Response: Point taken. In hindsight, taking the extra time to bring my car down to Massachusetts from New Hampshire and using an AASP/MA shop would have saved me a lot of stress. However, the logistics of driving my car nearly two hours south during a holiday season for this purpose was nearly impossible. Also, putting myself in the shoes of the average consumer allowed me to share every bad experience I had with this shop in print. I hope the article helped to outline some very obvious problems in this industry. I hope I don’t get into an accident again, but expect a knock on your door if I do!

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12 August 2019

New England Automotive Report

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[LOCAL] NEWS

AASP/MA Labor Rate Survey Gains Momentum PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

As detailed in recent issues of New England Automotive Report, AASP/MA is actively encouraging members to take the new Variable Rate System (VRS) Labor Rate Survey (laborratesurvey.com) through National AutoBody Research (NABR). Through the VRS Standardized Labor Rate Survey, NABR now provides Massachusetts body shops with an independent, thirdparty process they can trust to survey Labor Rates in a proper and transparent manner.

At the association’s June chapter meetings in Braintree and Holyoke, AASP/MA Executive Director Evangelos “Lucky” Papageorg and guest speaker Jack Lamborghini (Total Care Accident Repair; Raynham) provided attendees with a recap of the May meetings on the survey and provided further details on the surveytaking process via a live demonstration. Total Care Accident Repair’s Brian Bernard, who also served as a presenter at the May meetings, joined them at the Braintree gathering. These most recent meetings aimed to provide association members with a clearer understanding of the survey’s goals and the importance of participation.

As of this writing, 188 surveys had been completed in the Commonwealth. AASP/MA and National AutoBody Research require roughly 127 more to make the results statistically valid.

“The intent is to acquire the information on what shops’ posted Labor Rates are, not the rates at which they are currently being reimbursed by insurers,”

16 August 2019

New England Automotive Report

Papageorg tells New England Automotive Report. “Some people were hesitant to take it at first. Once they went through the process, they quickly realized how easy it was and how much potential benefit it has to our industry.”

Papageorg stresses that the VRS Standardized Labor Rate Survey is a living document that is designed to provide legitimate and timely information.

“Unlike surveys that some insurers would do, which become stagnant and aren’t updated regularly, we’ve already seen a significant number of those who’ve already done the survey retake it and reevaluate the posted Labor Rates they had put in originally based on the accumulated information they’ve gathered at their shops. This has helped them come up with a more accurate posted Labor Rate that gives them a fair return on their investments while still being able to keep curent with equipment and technology changes.”

In addition to supplying AASP/MA vendors with literature on the VRS Standardized Labor Rate Survey to give out to customers, the association is planning a general membership meeting with an extensive presentation by Sam and Richard Valenzuela of National AutoBody Research later this fall. For more information on the Labor Rate Survey, please contact Papageorg at lucky@aaspma.org or (617) 574-0741.

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MASSACHUSETTS

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KELLY JEEP CHRYSLER 353 Broadway Route 1 North Lynnfield, MA 01940 Order Hotline: (800) 278-8558 Fax: (781) 581-2490 Email: kjcparts@kellyauto.com Over $1,000,000 in stock to support your business, and fast free delivery!

Check out MoparRepairConnection.com for resources, promotions and technical information. ©2019 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.

New England Automotive Report August 2019 17

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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

BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com

Tulley BMW of Nashua 147 Daniel Webster Hwy Nashua NH 03060 PH: 603-888-5050 FAX: 603-888-8427 tulleybmw.com

New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com

BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com

BMW of Sudbury Wholesale Parts 68 Old County Road Sudbury, MA 01776 PH: 800-338-3198 FAX: 508-881-7578 bmwofsudbury.com

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New England Automotive Report

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LET US TURN THEM AROUND! CONTACT

New England Automotive Report Sales Director Alicia Figurelli (973) 667-6922 alicia@grecopublishing.com

FOR SALE Set of 2012 Ford F-150 headlights Original OEM

Excellent condition.

Price negotiable.

Used 27-foot Blowtherm Downdraft Spray Booth

$800/pair

$15,000

Woburn, MA

Contact: George

Contact: John (781) 718-3154

(781) 396-8282 george@hoganandvan.com New England Automotive Report August 2019 19

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Genuine Replacement Parts For the Road Ahead.

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

For Genuine Subaru Body Parts, contact the following Authorized Subaru Dealers: Long Subaru 7 Sutton Rd. Webster, MA 01570 800-982-2298 Fax: 508-879-1212 tschube@longauto.com

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New England Automotive Report

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

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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

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

New England Automotive Report August 2019 21

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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.

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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

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

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New England Automotive Report

Audi Peabody 252 Andover Street Peabody, MA 01960 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.audipeabody.com

Mattie Audi 80 William S. Canning Blvd.

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

NEAR0819.qxp_NEAR1014 7/16/19 1:41 PM Page 23

Quality Repairs Start With Volvo Genuine Parts.

For over eight decades, the Volvo name has been synonymous with unmatched quality and performance. That legendary Volvo quality starts with Volvo Genuine Parts.

Rely on Volvo Genuine parts to get the right fit, at the right price, right now.

Please contact the following dealers for your Volvo parts needs:

Prime Volvo Cars 1030 Hingham Street Rockland, MA 02370 Parts Direct: 781-927-3520 Fax: 781-927-3592 www.volvocarssouthshore.com

Volvo of Wellesley 962 Worcester Street Wellesley, MA 02482 Parts Direct: 800-247-3033 Fax: 508-651-1220 www.volvoofwellesley.com

www.volvogroup.com

New England Automotive Report August 2019 23

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[LOCAL] NEWS

AASP/MA Testifies in Support of ADALB Legislation AASP/MA Executive Director Evangelos "Lucky" Papageorg testified before the Joint Committee on Consumer Protection and Professional Licensure last month.

On July 8, AASP/MA Executive Director Evangelos “Lucky” Papageorg testified before the Joint Committee on Consumer Protection and Professional Licensure in support of Senate Bills 182 and 183. If passed, these bills (both sponsored by Senator Michael F. Rush) would move the Auto Damage Appraisers Licensing Board (ADALB) from the Massachusetts Division of Insurance to the Massachusetts Division of Professional Licensure (DPL).

Senate Bill 182 would also serve to strengthen the consumer protection mandate of the ADALB by adding two individuals to the Board who would specifically serve the interests of consumers. Additionally, the bill seeks to establish term limits for those who serve on the Board.

“Although the Auto Damage Appraiser Licensing Board is completely autonomous, the current partisan configuration, as well as the overwhelming influence of the Division of Insurance over the Board, has created an untenable, dysfunctional situation which does little to protect the consumers of Massachusetts as intended,” Papageorg stated. “The [ADALB] is a professional licensing Board not unlike the many other professional licenses overseen by the DPL. Therefore, it is our opinion

that [the Board] should fall under the jurisdiction of the Massachusetts Division of Professional Licensure. The DPL currently serves as the infrastructure and agency of record for working professionals here in Massachusetts.

The DPL already oversees and has responsibility for more than 30 different professional licenses, which represents in excess of 300,000 professionals.”

Papageorg noted that passage of the proposed legislation would help address delays in the ADALB’s current complaint review process.

“The influence and interest of [the DOI] over [the ADALB] creates a cycle of discussion and delays, avoiding the real issue at hand. The real issue is the protection of the consumer’s rights in the repair process. I have personally witnessed complaints that have taken in excess of two years just to have an informal hearing. No consumer should be expected to wait that long for action and remedy for their situation…Consumer protection was at the foundation of the creation of the Auto Damage Appraiser Licensing Board. It is imperative that these two bills, in particular Senate Bill 182, be released with a favorable endorsement to the Senate floor for full discussion and consideration.”

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA Board members Matt Ciaschini (left) and Peter Langone (right) accompanied Papageorg on the State House trip.

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New England Automotive Report

Joint Committee on Consumer Protection and Professional Licensure Co-Chairs Tackey Chan (left) and Paul Feeney

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Boch Hyundai

Boch Chevrolet

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New England Automotive Report August 2019 25

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26 August 2019

New England Automotive Report

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2019 AASP/MA

GOLF OUTING

HIGHLIGHTS JUNE 26, 2019 BLAckSTONE NATIONAL GOLF cLUB SUTTON, MA PHOTOS By JOEL GAUSTEN

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THE PLAyERS: (All teams are listed L-R)

1: Steve Cove, Jeff Fuller, Josh Fuller, Nick Palombo 2: Steven Nigro, Kevin Gallerani, Ron Lanoue, David Gallerani

cONGRATULATIONS TO THIS yEAR’S WINNERS!

3: Jim Elie, David Elie, Kevin McNally, Chris Morin 4: Peter Langone, Gary Cloutier, Paul Hendricks, Ed Nalewanski 5: Chris Sachs, Bino Dos Santos, Sidney Urena, John Marceau 6: Scott Randall, Chris Michalowski, Todd Huchinson, Rene Benard 7: Scott Barry, Ken Parker, Tom Schube, Fred Schube 8: Bill Larson, Dennis Macinnis, Fred Jewett 9: Michael Levy, Tom Ricci, Peter Ervay, Al Brodeur 10: Steve Elkinson, Peter Marshall, Chris Mason, Molly Brodeur 11: Kyle Doyon, CJ Timmons, Eddie Marino, Brian Lightbrown 12: Mike Williams, Nick Fontaine, Ted Dever, Stephan Demopoulos 13: Matthew Ciaschini, Dennis Yarrows, Mike Rainville, Bob Rainville 14: Eric Bellisario, Steve Creanza, Dario Ciovacco, Steve Litwin 15: Christina Alvarez, Nate Woods, Neil Ericksen, Justin Dunlea

FIRST PLAcE TEAM: Steven Nigro, kevin Gallerani, Ron Lanoue, David Gallerani SEcOND PLAcE TEAM: Matthew ciaschini, Dennis yarrows, Mike Rainville, Bob Rainville THIRD PLAcE TEAM: Scott MacDonald, Matt Peloquin, Don Peloquin, Rich connor cLOSEST-TO-THE-PIN WINNER: Fred Schube (Long Automotive team)

16: John Studer, Donna Roberts, Jack Lamborghini, Joe Anusewicz 17: Tony Bairos, Chris Bird, Peter Demers

LONGEST DRIVE WINNER: Peter Ervay (BASF)

18: Scott MacDonald, Matt Peloquin,Don Peloquin, Rich Connor (pictured on pg. 31)

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AASP/MA THANKS ALL THE SPONSORS OF THIS YEAR’S TOURNAMENT!

Tournament Sponsor: Albert kemperle Hole-in-One Sponsor: Spraybooth Services Longest Drive Sponsor: Fuller Auto Body Raffle Prize Sponsor: Enterprise Rent-A-car Team Prize Sponsor: Right to Repair coalition

Additional Raffle Prizes: Tasca Automotive Long Automotive Wellesley Volkswagen

Lunch Sponsors: Don kennett, Inc. Designer Systems Sherwin-Williams

closest-to-the-Pin Sponsor: keystone Automotive/ LkQ corporation

Dinner Sponsor: Auto Body Supplies & Paint

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1: A moment of humor as members of the Second Place team photobomb the First Place team 2: The Second Place team 3: The Third Place team (L to R): Scott MacDonald, Matt Peloquin, Don Peloquin, Rich Connor 4: Tommy Hickey of the Right to Repair Coalition, this year’s team prize sponsor 5: Longest Drive winner Peter Ervay (BASF) 6: AASP/MA Executive Director Lucky Papageorg (right) with Don Cushing and Cynthia Robinson of Tasca Automotive.

7: Closest-to-the-Pin winner Fred Schube (Long Automotive team)

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ORIGINAL MINI PARTS.

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

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

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

MINI OF WARWICK

1515A Bald Hill Road Warwick, RI 02886 Wholesale Direct at 401-824-2313 Fax 401-824-2251 janine.brown@penskeautomotive.com MINIOFWARWICK.COM Hours: M-F: 8:00-5:00 Sat: 8:00-3:00 © 2019 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

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· Fax or emailing your order will speed processing and delivery to your location.

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WHY GENUINE PARTS? It’s the Right Thing to Do

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.

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

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

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

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

stirrell@iramotorgroup.com www.iramotorgroup.com

ToyotaPartsAndService.com New England Automotive Report August 2019 33

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[NATIONAL] NEWS By Joel Gausten

AASP/MA Joins National Call for OEM Procedures As New England Automotive Report went to press, AASP/MA joined the chorus of state and national auto body associations that had signed on in public support of OEM repair procedures.

In 2011, representatives from the Society of Collision Repair Specialists (SCRS), the Alliance of Automotive Service Providers (AASP), the Automotive Service Association (ASA) and Assured Performance stood on the floor at the Collision Industry Conference (CIC) and stated that their respective groups recognized the published procedures as provided by the OEMs as the official industry-recognized standard of repair. Now, eight years following that initial presentation, SCRS, ASA and AASP have drafted an updated letter that reiterates this earlier position and expands on the need for greater consumer protection throughout the industry: [If] a vehicle manufacturer documents a repair procedure as required, recommended or otherwise necessary as a result of damage or repair, […] those published procedures would be the standard of repair […] As such, we support efforts that aim to ensure 34 August 2019

New England Automotive Report

consumers are properly indemnified for repair operations and procedures in accordance with documented technical procedures to repair the vehicle as issued by the original vehicle manufacturer.

AASP/MA was quick to add its voice to the document.

“With automotive technology growing at a rapid pace, performing repairs as specified by the OEMs is the only way to adequately ensure consumer safety and avoid liability,” explains AASP/MA President Molly Brodeur. “AASP/MA did not hesitate in adding our support to this statement and stressing the importance of establishing the auto manufacturer as the definitive authority on how its vehicles should be repaired.”

The stances taken by AASP/MA and SCRS demonstrate that consumers deserve support from the collision repair industry and their elected officials to ensure they always receive a complete and safe repair.

“The collision repair facility accepts the liability for the work it does,” comments SCRS Executive Director Aaron Schulenburg. “Do it right or do it wrong, they’re responsible for it. Insurance carriers often try to dissuade shops that are trying to follow the right procedures from doing so by creating obstacles where they don’t indemnify. The carrier doesn’t own that repair, because they are not the repair professional. While their objective may not be to have improper repairs performed, prioritizing the mitigation of claims costs above validating necessary procedures and indemnifying for them is a large contributor to that outcome. I think that’s the issue, because that shop still ultimately holds that liability.

What’s an appropriate alternative to OEM procedures? I don’t know…What’s an appropriate level of liability you’re willing to accept?”

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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[NATIONAL] NEWS By Joel Gausten performance. The safety of our customers continues to be our number one priority.”

In an official web announcement entitled “Don’t Opt for Opt OE Parts” (toyotapartsandservice.com/collision/ dont-opt-for-opt-oe-parts), Toyota draws a deep line in the sand over its view of variant “OEM” parts and clearly states that it does not have an “Opt OE” or “surplus” program in the United States: Any parts marketed as such are not part of a Toyota program and are not sanctioned by Toyota for use in vehicles sold in North America. Even though parts classified as Opt OE might appear in various estimating systems or parts ordering documentation, collision centers should be aware that they are not considered to be legitimate by Toyota.

Auto Manufacturers Clarify Positions on “Opt OE” Parts In response to last month’s cover story (“Drowning in Alphabet Soup: Inside Parts Category Confusion,” July 2019), New England Automotive Report received feedback from readers who sought clarification on where Honda, Nissan/Infiniti and Toyota/Lexus in particular stood on the use of “Opt OE” parts in the repair of their vehicles.

Unlike some manufacturers that have taken a strong stance against Opt OE parts, American Honda Motor Co. [AHM] currently allows some wiggle room for shops to utilize this option.

“AHM currently utilizes the ‘Opt OE’ category for our Collision Parts Promote program, which works through the CCC estimating software,” explains Kirk Adams, Honda’s assistant manager of collision parts and service marketing. “We use Opt OE in all states with the exception of California. Parts that have promotional discounted pricing will be displayed as ‘Opt OE.’ Shops can see the promotional pricing and original MSRP ‘OE’ when using CCC and if they’ve connected with a

participating dealership. Promotional pricing only displays if the dealer and shop are connected. The parts are all new original OE parts. We don’t have a second line of parts or sell damaged parts. Shops can place orders electronically through CCC or by contacting a participating dealership.”

Although Nissan/Infiniti currently offers Opt OE versions of common mechanical parts (radiators, condensers, shocks/struts, brakes, etc.) through its Value Advantage line, the manufacturer is clear in its position in regard to collision-related products. As noted in official position statements for both Nissan and Infiniti, “original parts […] are designed and built to provide optimum fit, function, safety, and structural integrity. For this reason, [Nissan/Infiniti] does not approve of the use of aftermarket, gray market or imitation parts […] Parts of the vehicle are designed to work together as a system, and we do not know whether or how integrating aftermarket parts into these systems will impact crash

If a collision center is being encouraged to use Opt OE parts, they should communicate clearly as to why these parts are not recommended for use in Toyota vehicles.

With “Opt OE” continuing to bring debate and ambiguity to the industry, Mike Anderson of Collision Advice is one industry professional quick to express his apprehension over the growth of these parts in the marketplace.

“There are some parties in the industry that would like to see a description for a different type of aftermarket part from a company that may or may not be a supplier for the OEM…When people start saying that the supplier that makes that part may or may not be a supplier for the OEM, and they want the term ‘OEM’ to be in the aftermarket parts description, that is very misleading to the consumer. I don’t think the word ‘OEM’ needs to be in there at all. People have their arguments based on who they work for. I feel like I can speak on behalf of collision repairers that it is very misleading that it ‘may’ be from the supplier of an OEM part. Who’s to say that it is? We don’t need a category for this; I think it’s a negative thing.”

When encountering a parts source (online or otherwise) that is marketing “Opt OE” collision repair parts, AASP/MA members are encouraged to confirm with the manufacturer that such products are endorsed in North America and recommended for use to ensure a safe and quality repair.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

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New England Automotive Report

MASSACHUSETTS

NEAR0819.qxp_NEAR1014 7/16/19 1:42 PM Page 37

Get it right from the source.

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

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

Contact these Ford or Lincoln Mercury dealers for all your parts needs: Imperial Ford 6 Uxbridge Road Mendon, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 Call us for your wholesale parts needs

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

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

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

© 2019, Ford Motor Company New England Automotive Report August 2019 37

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Superior service starts with superior parts.

Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life.

Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you

Contact these Mazda dealers for all your parts needs: 1545 New State Highway Route 44 Raynham, MA 02767 Phone: 877-272-8876 Fax: 508-802-4074 wholesale@mastria.com

Mastria Mazda

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New England Automotive Report

940 Boston Turnpike Shrewsbury, MA 01545 Phone: 508-281-8173 Fax: 508-845-9465 bmurphy@sentryautogroup.com

Sentry West Mazda Lincoln

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

Quirk Auto Dealers

NEAR0819.qxp_NEAR1014 7/16/19 1:42 PM Page 39

THE RIGHT PARTS AT THE RIGHT TIME!

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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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Call us and get the right MOPAR parts the FIRST TIME! New England Automotive Report August 2019 39

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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.

The 1963 consent Decree: What Does It Mean Today?

For many years, I have been reading articles in collision repair trade magazines claiming that something called “the 1963 Consent Decree” is eventually going to be the savior for auto body shops in their dealings with insurers. When governmental agencies finally recognize the importance of the Decree, or when some court awards billions of dollars to body shops in a class action lawsuit against insurers based on the Decree, insurers will be brought to their knees and will no longer be able to control what shops can charge for repairs.

In case you haven’t noticed, this has not yet occurred. So, is the Decree really of importance? And might it still be the savior for the collision repair industry?

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New England Automotive Report

What Is the 1963 Consent Decree?

In the 1940s, various insurance companies throughout the country formed three different joint committees for the purpose of determining how to control auto damage claims costs. As part of this effort, the committees developed a joint plan whereby a single appraisal company would be chosen to handle all claims insured by the committees’ participating insurers in defined geographic territories. As conditions for being selected to conduct appraisals in a particular area, an appraisal firm would have to be large enough to handle all claims in an area and agree to write all of their appraisals according to standards dictated by the committees.

The standards mandated that the appraisers had to write estimates at a specific Labor Rate (equal to the lowest Labor Rate being charged in the territory), with fixed parts price discounts and with set time allowances for repairs. Further, the appraisers had to write for repair of parts rather than replacement and for used parts rather than new. (Sound familiar?) If an appraisal firm agreed to the committees’ terms and was selected as the appraisal firm for a particular territory, then it would also agree to perform appraisals only in that territory and not in any other.

In line with this, the member insurance companies agreed among themselves to use only the committees’ selected appraisal firm in each geographic area. They also jointly agreed to never pay more than the chosen appraiser’s estimate when settling auto damage claims, to channel work to collision repair shops that would agree to accept the appraiser’s estimates, and to boycott shops that would not agree to accept those estimates.

After investigating these practices, the US Department of Justice (DOJ) filed a lawsuit against the three insurer committees, claiming violation of multiple sections of the federal antitrust laws.

Essentially, the DOJ claimed that, through the committees, the member insurers had conspired together to restrain trade in the appraisal and collision repair businesses in an attempt to fix prices in those businesses and to illegally boycott appraisal firms and body shops that did not meet the set criteria. In particular, the DOJ made these allegations: The aforesaid offenses have had, among others, the following effects: (a) Elimination of competition in the adjustment and settlement of automobile property insurance claims in the automobile material damage appraisal business and in the automobile material damage repair business; (b) Non-sponsored appraisers engaged in or desiring to engage in the automobile material damage appraisal business have been foreclosed from a substantial segment of the business; (c) Repair shops which refuse to accept the sponsored appraisers’ estimate have been foreclosed from a substantial segment of the automobile material damage repair business; and (d) Prices charged by repair shops have been subjected to collective control and supervision by defendants and coconspirators.

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Rather than go to trial, the case was settled in 1963.

The settlement consisted of the insurance committees’ consent to the entry of a final Decree by the court that would bind them forever to certain future conduct. That Decree has become known within the collision repair industry as “The 1963 Consent Decree.”

As part of the Decree, the committees were required to completely abandon their joint claim settling plan and agree to never adopt any such plan again in the future.

Further, and significantly, the Decree provided the following: Each defendant is enjoined from placing into effect any plan, program or practice which has the purpose or effect of: (1) sponsoring, endorsing or otherwise recommending any appraiser of damage to automobile vehicles; (2) directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with (a) any appraiser of damage to automobile vehicles with respect to the appraisal of such damage, or (b) any independent or dealer franchised automotive repair shop with respect to the repair of damage to automobile vehicles; (3) exercising any control over the activities of any appraiser of damage to automotive vehicles; (4) allocating or dividing customers, territories, markets or business among any appraisers of damage to automotive vehicles; or (5) fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage to automotive vehicles, or to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or otherwise.

Why are Insurers Still Able to Control What Appraisers Write and What Gets Paid?

On its face, the 1963 Consent Decree seems to strictly limit certain conduct of insurers; yet, some of that conduct still appears to be quite prevalent today. I suspect that most repair shops strongly believe that insurers still regularly engage in conduct that has the prohibited purpose of “fixing, establishing, maintaining or otherwise controlling prices . . . to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or otherwise.”

How can this be? How can insurers seemingly disregard the Decree? Here are some of the reasons: • The Decree was signed by, and entered against, only the three insurer committees and not the actual insurance company members of the committees. A Consent Decree of any kind binds only the actual parties to the litigation, and the insurers themselves technically were not parties to the litigation.

• Even if it could be read to bind the insurers, the Decree would prohibit only joint conduct by insurers. Two insurers cannot agree to pay only a particular Labor Rate, pay for parts at an agreed upon discounted rate or pay only for used or aftermarket replacement parts. They also cannot agree to require that appraisers working for them adhere to fixed standards regarding these issues.

But the antitrust laws do not prohibit an individual insurer from independently making a decision to engage in any such conduct on its own. (It is a completely different issue as to whether such conduct may be in violation of consumer protection laws, insurance laws or any other applicable laws.)

• Under the federal McCarran-Ferguson Act, insurers are partially exempt from antitrust laws to the extent that “the business of insurance” is regulated by state action. So, as an example, individual states can fix uniform premiums to be charged by all insurers for certain coverages – which used to be what occurred in Massachusetts in regard to auto insurance. Further, in Massachusetts today, many of the practices engaged in by all auto insurers are regulated by various state agencies. As examples, Division of Insurance regulations dictate when insurers should pay for used or aftermarket parts rather than new parts. The Auto Damage Appraiser Licensing Board (ADALB) regulations dictate what methods should be used by all appraisers to determine prices to be paid for many aspects of insured auto repairs. Commonwealth Automobile Reinsurers (CAR) has performance standards that must be adhered to by all auto insurers in regard to how they determine how much they are going to pay for repairs, and insurers are penalized if they do not adhere to those standards.

Could the Decree Be Resurrected as a Savior?

Despite the reasons why insurers have been able to still engage in conduct that might seem violative of the 1963 Consent Decree, in my opinion there still may be reason to believe that the Decree may be used to help collision repair shops in the future.

In particular, although the McCarran-Ferguson Act New England Automotive Report August 2019 41

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[LEGAL] PERSPECTIVE exempts otherwise-prohibited conduct by insurers, it applies only to state action regulating “the business of insurance.” A 1979 Supreme Court decision greatly limits the definition of the term “business of insurance.” Under the holding of that case, the term applies only to government actions regulating the spreading and underwriting of risk between insurers and only applies to the relationship between insurers and their policyholders. Although the setting of premiums by a state allows insurers to be protected against antitrust claims for agreeing to charge the same rate, the law does not allow insurers to agree to anything with regard to how much they are going to pay for claims. In fact, the Supreme Court decision found that agreements between insurers as to how much they were going to pay pharmacies for prescription drugs was not protected by McCarran-Ferguson.

So, it is at least possible that it could be found that Division of Insurance, ADALB and CAR regulations that affect how much an insurer is going to pay for claims do not protect auto insurers from jointly engaging in the actions required by those regulations. At least that is the way that I read the Supreme Court case, which notes that McCarran-Ferguson exempts “the business of insurance” but not “the business of insurers” from the antitrust laws.

Further, there is a question as to whether the CAR performance standards even constitute state action, since

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New England Automotive Report

CAR is, at best, a quasi-state agency. Although its performance standards must be approved by the Division of Insurance, the standards are jointly developed and agreed upon solely by CAR’s member insurance companies. At least on its face, all of CAR’s actions that govern how insurers settle auto damage claims may violate federal antitrust laws.

Conclusion The 1963 Consent Decree is a document that should be understood by all members of the collision repair industry. Clearly, at the time it was issued, the DOJ saw problems with the way that insurers were handling the payment of auto damage claims – although perhaps in a way that the agency may not see today. Yet, the Decree is still instructive despite the lack of effect that it seems to have had.

Nevertheless, the Decree still may have value for auto repairers. I do not know if that value will ever be realized. But maybe someday, it will.

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

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

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New England Automotive Report August 2019 43

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44 August 2019

New England Automotive Report

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

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

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

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

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

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

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

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

New England Automotive Report August 2019 45

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EXECUTIVE DIRECTOR’S MESSAGE continued from page 11 setting unrealistically low industry standards in the process). They can also choose to become educated and invest in their businesses, equipment and staff to ensure that safety is not being negotiated away through the ignorance of proper repair procedures. More importantly, those shops can stop contributing to the demise of an industry that should be held in much higher regard and esteem for its ability to perform such incredible feats of repair.

Negotiations should be based upon level of expertise, equipment and the ability to properly repair today’s vehicles, not based upon negotiating away safety. Safety IS and MUST be non-negotiable!!!!

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

MASSACHUSETTS

AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org

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New England Automotive Report

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