New England Automotive Report September 2017

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THE SHOCKING TRUTH ABOUT ACCOUNTABILITY page 40

2017 AASP/MA Serving the New England Collision and Mechanical Repair Industry

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

September 2017 U.S.A. $5.95

www.grecopublishing.com

GOLF OUTING

HIGHLIGHTS

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September 2017 • Volume 15, No. 9

DEPARTMENTS

CONTENTS FEATURES

VICE PRESIDENT’S MESSAGE by Adam Ioakim 8 | A Lesson in Texas

LOCAL NEWS by Kristen Dalli 18 | Massachusetts Students Discuss SkillsUSA National Silver Wins

IN & AROUND AASP/MA by Kristen Dalli

32 2017 AASP/MA GOLF OUTING HIGHLIGHTS

22 | AASP/MA Outreach Project Gives Voice to Members

NATIONAL NEWS by Joel Gausten 28 | Parts Debates Intensify at Chicago Industry Events

LEGAL PERSPECTIVE by James Castleman, Esq. 46 | The State of Referrals

ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 11 | AASP/MA MEMBERSHIP APPLICATION 13 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 13 | AASP/MA SPONSOR INFO 52 | AASP/MA CLASSIFIED FORM 52 | FOR SALE 54 | INDEX OF ADVERTISERS

40 THE SHOCKING TRUTH ABOUT ACCOUNTABILITY

by Larry Montanez III, CDA

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VICE PRESIDENT’S MESSAGE

A LESSON IN TEXAS ADAM IOAKIM

insurers – are the ones who are liable when something goes wrong with a repair. Insurers are not technicians; they do not have the hours of in-shop work and constant hands-on training that we do. We can’t stand in a courtroom and tell the jury that an insurance company made us do something. The end result of any repair – and the legal and financial responsibilities our work entails – is on us.

We need to protect ourselves when an insurer attempts to dictate the repair methods and parts used in a repair. We need to be strong and smart enough to say no when an insurance company does something that protects their bank accounts more than it guarantees the safety of their customers. Everything depends on it.

Before you read this message, please watch the online news report found at tinyurl.com/y79vjlg8. This video describes – in disturbing detail – a case about to go to trial in Texas that involves a couple who is suing a body shop for $1 million for putting their lives in danger after their improperly repaired Honda Fit left them trapped and surrounded by flames. The car in question was bought used after the repair had taken place AND had a clean CARFAX report. Thankfully, the couple survived; now, they are seeking justice.

Every collision repair facility in America should be paying very close attention to this case, as the outcome could have a tremendous impact on our industry.

Never before have we seen a situation that so clearly demonstrates the need for all of us to follow the manufacturer’s repair procedures. Yes, the vast majority of us working today are skilled professionals, but we are not engineers. We did not design or manufacture the vehicles that enter our shops, and it is our obligation as repairers (and as decent human beings) to follow the path that the OEMs have set for us. As this case will very likely determine, we – not the N

E

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

ADAM IOAKIM is the co-owner of Hogan & Van Auto Body in Medford, MA. He can be reached at (781) 436-0366 or adam@hoganandvan.com.

G

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AUT M TIVE 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

Kristen Dalli - kristen@grecopublishing.com

EDITORIAL DIRECTOR

PRODUCTION

Joel Gausten - joel@grecopublishing.com

Donna Greco - donna@grecopublishing.com

PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY 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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COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

The ADALB, the AG and Beyond JILLIAN BUKHENIK

Dear Members, As you may be aware, the Alliance of Automotive Service Providers of Massachusetts (AASP/MA) is the only statewide association advocating on behalf of the auto repair industry. Our non-profit organization is dedicated to representing Massachusetts shops before the legislative and regulatory bodies. We are committed to building the success of the auto repair industry.

One of the most important services AASP/MA offers is our advocacy efforts. In fact, roughly 36 percent of your dues are allocated to our lobbying efforts. This means that your membership to AASP/MA helps your shop and the industry on Beacon Hill. Your Legislative Committee filed five matters for the current two-year session. These filings include NEW Labor Rate language as well as anti-steering, aftermarket parts and consumer protection legislation. AASP/MA also defeated several bills that would have negatively impacted body shops, including legislation that aimed to affect the inspection sticker removal law and abolish the Auto Damage Appraiser Licensing Board (ADALB).

Because of AASP/MA’s strong advocacy efforts, the ADALB established a formal complaint process and issued an Order to Show Cause against an insurance company and two appraisers for the first time in the Board’s history. AASP/MA has advocated strongly for several items that the ADALB has issued or revoked through Advisory Rulings. The Board also revoked a previously issued Advisory Ruling for photograph or video considered as a “personal inspection.” Additionally, the Board recently issued an Advisory Ruling for use of aftermarket parts and issued a Ruling for “desk appraisals” using photographs on a damaged motor vehicle.

The ADALB has taken positions discussed in their meeting minutes to give guidance to appraisers, including issues related to writing partial paint and pre- and post-repair scans. The Board has also taken the position that changes to supplements are prohibited unless the item is not covered by regulation or if the appraiser discovers preexisting damage. As you are aware, the ADALB conducted listening sessions on 212 CMR 2.00 last year, and AASP/MA was there to testify. The Board incorporated changes sought by AASP/MA in their final language recommendations.

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In other news, the Automobile Insurers Bureau (AIB) filed a new Massachusetts Automobile Insurance Policy, which was approved by the Division of Insurance (DOI).

Due to overwhelming pressure from AASP/MA, the AIB withdrew their standard auto policy. A new policy was filed on October 1, 2016, and this incorporated key changes sought by this association. We continue to monitor policy changes submitted to the DOI. We are also continuing our work with the DOI to advocate for enforcement of their regulations. Specifically, AASP/MA is currently advocating for the enforcement of steering regulations through plan enforcement.

In an effort to advocate for consumer protections, AASP/MA is working with body shops as a representative of their customers as we go before the Attorney General’s Office (AG’s). We provide our members with educational materials for delivery to their customers, including the hotline for total loss. As a result of consistent complaints from consumers to the AG’s office, they have created a hotline for consumers to call when they experience challenges in the total loss process. If your consumers are facing these issues, please call AASP/MA today at (617) 574-0741, and we will provide details about how to contact the hotline.

We are the only voice for the industry in the Commonwealth. We continue to advocate on behalf of the industry to continue to build YOUR success. The fee to join AASP/MA is just $425. I work for a small business – just like yours. I know how important every dollar is to your bottom line. I know that if you join the association today, you will see results. In addition to advocating for your higher Labor Rate, supporting anti-steering measures and making sure your voice is heard on Beacon Hill and beyond, AASP/MA offers your shop the opportunity to make a difference in the industry. Please join TODAY. Sincerely,

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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.

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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 ______________________________________________________________________________________________________ Street

Phone Number ( E-mail Address

City

)____________________________________ 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

MasterCard

Amex

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: ____________________________

Email: ____________________________________________________

________________________________________________________

Name: ____________________________________________________

________________________________________________________

Email: ____________________________________________________

Signature: ______________________________________________

Name: ____________________________________________________

Date: __________________________________________________

Email: ____________________________________________________

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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AASP/MA ASKS YOU TO PLEASE SUPPORT

in Massachusetts

September 11, 2017 Structural Straightening Steel Hampton Inn-Natick (Natick, MA) September 13, 2017 Vehicle Technology Trends & Diagnostics Overview Enterprise Rent-A-Car (Burlington, MA) September 14, 2017 Sectioning of Steel Unitized Structures Hampton Inn-Natick (Natick, MA) September 19, 2017 Automotive Foams Hampton Inn-Natick (Natick, MA) Replacement of Steel Unitized Structures Fuller Auto Body (Auburn, MA)

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

for information on additional AASP/MA sponsorship opportunities!

September 27, 2017 Color Theory, Mixing Toners & Tinting Fuller Auto Body (Auburn, MA) September 28, 2017 Vehicle Technology Trends & Diagnostics Overview Hampton Inn-Natick (Natick, MA)

For more information, visit i-car.com

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[LOCAL] NEWS

by Kristen Dalli

Maren Williams (second from right) was a Silver winner at Nationals.

(Photo source: twitter.com/shawsheenskills)

MASSACHUSETTS STUDENTS DISCUSS

SkillsUSA National Silver Wins This June, vocational school students from across the country showcased their talents as they competed at the 53rd Annual SkillsUSA National Leadership and Skills Conference (NLSC) in Louisville, KY. David Fors of Montachusett Regional Vocational Technical School in Fitchburg and Maren Williams of Shawsheen High School in Billerica represented Massachusetts well, earning Silver medals in collision repair and refinishing, respectively.

A senior at Montachusett, Fors earned the Silver medal in Collision Repair Technology. His participation at Skills was the result of four years of hard work and the utmost dedication to to his craft.

“When I was a sophomore, they wanted me to go to the District competition, and I placed Bronze there,” Fors shared. “After that, I wanted to try to place either Silver or Gold to get to the State competition the next year. That didn’t work out too well for me my junior year, but coming back senior year, I wanted to give it one last strong go. I placed Gold at Districts in the written competition, and from there we went to States. During my February vacation from school, I went in for a few hours each day

to practice metal-working and some other skills. It was a huge push for Nationals when I placed Gold at States.

“It was an unbelievable experience to go against the best each state had to offer, and the best part for me was just the magnitude of the competition itself,” he adds. “We’re in this huge stadium, and it’s such a surreal feeling to know you’re up against the best of what America is putting out for their skilled workforce. It’s something I’ll never forget, for sure.”

One of Fors’ teachers, David Leveliere, praised the young tech’s hard work in class and his seemingly natural abilities for collision repair.

“He put a lot of effort in. He was out in a co-op program, came off work and came into the shop to work on skills he needed for the competition. He put in a great deal of extra time studying for the bookwork part of it. It was just a tremendous amount of commitment on his part, and on his instructors’ parts. He’s a very talented kid. We give him a task, and he can perform it quite well.”

Following his big win at the National competition, Fors plans to attend community college in Worcester; following two years there, he has his

sights set on Worcester Polytechnic Institute’s (WPI) bridge program, with plans of studying mechanical engineering.

All the while, he will continue to stay in the industry, working at Aldrich Auto Body (Fitchburg).

Leveliere was incredibly impressed with Fors’ showing at Nationals, saying, “We are super proud of his accomplishments, and of him. David worked really hard for it, and we’re really glad he did as well as he did at the national competition.”

Senior Maren Williams competed at the National level for the second time this year, and though she performed well her first time in 2016 (placing sixth out of 38), she felt much more relaxed the second time around, earning the Silver medal in Refinishing.

“It was a much more enjoyable experience this year,” Williams remarked.

“I wasn’t as nervous as I was last year, and I also placed way better. The small things really helped me. I remembered little tricks I used last time, and my job [at The Bowtie Shop in Billerica] helped in the prep work.”

Dennis Reppucci, Williams’ teacher throughout her time at Shawsheen,

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David Fors during the SkillsUSA National Leadership & Skills Conference in Louisville, KY.

programs,” Reppucci echoed. “It’s important to have advisors from local companies for the schools. Our head advisor is Jim Marshall from Marshall’s Auto Body [Billerica, MA]. Jim’s a graduate of our school; he hires our students, and he’s always willing to do whatever he can for the program, for the students or for the school. If we can find

attributed her success at Nationals this year to her calm demeanor.

“She was never afraid of any task in front of her. If she was struggling, she just found another way to do something.

Failure was never an option for her. Going in, she knew what to expect from the competition, she was very relaxed and she got so much enjoyment out of it this year.

Maren likes to learn her weaknesses. She strengthened her game this year and she did great all the way through.”

As for future plans, Williams is attending UMass Amherst this fall with plans of becoming a chemical engineer.

“From the day she came in as a ninth grader, she loved working on cars,” Reppucci recalls. “She decided halfway through her high school career where she wanted to go and what she wanted to do.

She wants to work for a major paint company, but who knows where a chemical engineering degree can take her?”

Both Leveliere and Reppucci are grateful for the enormous support their schools receive from the industry to keep these programs alive.

“At a lot of schools, the budgets aren’t very good. Getting donations from the Collision Repair Education Foundation [CREF] really helps a lot,” Leveliere noted. “It allows us to get supplies that we need to teach the kids without having to bring in a lot of our own money.”

“It’s nice to see the industry gearing up and giving more support to these

more [businesses] around the country helping the schools, it might take some of the stress off companies looking for entrylevel technicians.”

To learn more about SkillsUSA, please visit skillsusa.org.

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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.

•

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•

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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CAMARADERIE

[IN & AROUND] AASP/MA

by Kristen Dalli EVENTS

TRAINING

INDUSTRY

VOICE

RESOURCES

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Outreach Project GIVES VOICE TO MEMBERS In June, the AASP/MA Board of Directors began an outreach project in hopes of increasing the association’s grassroots efforts and strengthening its voice and presence throughout the Commonwealth. Though an ongoing project, the Board is very hopeful these endeavors will prove to be effective in gaining membership and creating greater camaraderie among existing members.

AASP/MA Treasurer Kevin Gallerani (Cape Auto Body; Plymouth) feels that the main goals of the project are to gauge the needs of the different shops and ensure that the association is doing right by its members.

“We’re trying to figure out what’s really going on. We wanted to make sure we were going out to shops, face to face, and having real conversations — not just through emails. We wanted to see what people have been struggling with, what they need and, most importantly, make sure we’re doing everything we can to help the shops.”

While talking to members was central to this project, AASP/MA also wanted to check in on non-members in hopes of showing the benefits of 22 September 2017

joining the association.

“We wanted to ask them, ‘Why aren’t you a member?’” Gallerani explains. “Some shops that are struggling need our help, our training, what we bring to the table and the wisdom we have. The goal is for them to see we’re trying to do better and that things can be better with the association.”

AASP/MA President Molly Brodeur echoed Gallerani’s sentiments, saying, “We can provide shops with incredible resources, but they must belong to take advantage of all we have to offer. Shops face many challenges, and AASP/MA has the tools to overcome some of these common challenges. It’s important that we continue to spread this message and encourage non-members to support us.”

When talking with shop owners, there was an overwhelming positive consensus in regards to the association and its work, and both Brodeur and Gallerani were pleased with the level of involvement from area shops.

Gallerani noted members were incredibly responsive towards the events, training and new products the association has brought to the

New England Automotive Report

forefront. However, the most popular responses were toward the social gatherings like the annual Golf Outing and Casino nights.

“Social things, and meeting other shop owners, are really great for these guys,” observes Gallerani. “They enjoy going out with other people and talking shop in casual settings. Getting the chance to meet with guys in the trade is better than a training seminar, and they really saw the value in that and in being able to sit down and talk with people.”

“I was pleasantly surprised by how many shops knew and are familiar with AASP/MA. We are the only voice representing the industry in the Commonwealth, and I am happy our shops know our organization,” adds Brodeur.

In talking with the members, Gallerani was greatly encouraged by how invested shop owners are in New England Automotive Report and industry news, as well as the eagerness so many expressed in helping the association.

“People are getting a lot out of the magazine. We’d be talking and they’d pull out a copy, reference different articles and have sections circled. That

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[IN & AROUND] AASP/MA was a good takeaway for us. Another big thing was them telling me, ‘I want to be on the Board. I have knowledge and I want to bring it to you.’ It’s hard to find volunteers who want to better the industry, and we got to talk to people who were willing to help, which was inspiring.”

While there was a great deal of positivity among AASP/MA members, both Brodeur and Gallerani found some common misconceptions regarding the association from shop owners.

“Shops were most surprised to hear AASP/MA has diversified our efforts. In the past, AASP/MA filed the Labor Rate Bill, and that was the focus,” Brodeur said. “While the Labor Rate Bill is still a priority, AASP/MA has filed five legislative initiatives to combat other challenges like steering and aftermarket part usage.

Additionally, we are very vocal at the ADALB and have been instrumental

in getting significant changes to the industry. We have also been working with the Attorney General’s Office to educate the industry on their total loss hotline and other consumer-focused initiatives.”

“Everybody still pushes the Labor Rate Bill,” Gallerani added. “The Labor Rate Bill has been going on for 100 years – since the beginning of time. It’s not an easy thing to get through, but they’ve got to let us keep working on it and try our best. But you can’t focus on just that, either. We have the lowest Labor Rate in the country, but we’re also among the top five average ROs in the country.

There’s other ways to find the money.

That’s why we try to run seminars to figure out how to get those funds. A higher Labor Rate would help, but it’s not going to pass overnight. It’s just about figuring out other ways of getting the money on the same claims.”

Overall, the AASP/MA Board of Directors sees this outreach project as a positive step in the right direction and plans to continue its efforts in bettering the industry and the association.

“It is important to receive feedback, as it will help us improve our communication and outreach to shops. We want to continue to improve the association by better serving our most important asset: Shop owners,” Brodeur says.

“No matter what business you’re in, every so often you have to reevaluate what you’re doing and make sure you’re doing right by everybody,” reflects Gallerani. “It’s the same with the association. We want to make sure we’re going in the right direction and people get value out of it. Most importantly, there’s strength in numbers. We need to stay united.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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[NATIONAL] NEWS

by Joel Gausten

Parts Debates Intensify at

CHICAGO INDUSTRY EVENTS Automobile Original Equipment Manufacturers (OEM), as the official industry recognized repair standards for collision repair. These standards, where they exist, shall be the basis for the establishment of training, testing, repair practices and documentations.

CAPA’s Jack Gillis: Consumer consent is unnecessary for aftermarket parts.

The ongoing need for the collision repair community to adhere to OEMrecommended procedures and utilize original parts was the key focus at industry events held in Chicago earlier this summer.

At its latest Board of Directors Open Meeting, the Society of Collision Repair Specialists (SCRS) reiterated its long-running support of OEM repair procedures as the standard of repair.

The following June 2017 statement from the national group, reproduced in unedited form below, references a position from 2011 when the association joined AASP National, ASA and Assured Performance in publicly endorsing the OEMs as the definitive sources of procedural information: In 2011, the Society of Collision Repair Specialists (SCRS) along with other national entities representing collision repair businesses and technicians across the US issued a definitive position recognizing the standard of repair for collision damage.

The statement read: We hereby recognize published repair procedures, as provided by the 28 September 2017

Whereas, we acknowledge that OEM repair procedures are incomplete in comparison to the full scope of vehicles and repair operations which exist in the marketplace; the OEM published repair procedures shall serve as the baseline for industry repair standards, with the recognition that further development of procedures will be necessary in areas not covered by published procedures.

This statement remains as true today, as it was in 2011; and while the statement in 2011 encompassed all published collision repair procedures, it is equally inclusive of published diagnostic and mechanical operations required from a collision and the subsequent repair. It remains SCRS’ position that if an OEM documents a repair procedure as required, recommended or otherwise necessary as a result of damage or repair, that those published procedures would be the standard of repair until such time the documentation changes.

Disregarding a documented procedure that is made available to the industry creates undue and avoidable liability on the repair facility performing the repair.

“I know there’s a challenge over whether or not [insurers] pay or don’t pay for these operations, but there is undue and avoidable liability when documented repair procedures aren’t followed,” offered SCRS Executive Director Aaron Schulenburg during the meeting.

While SCRS and other industry groups are working hard to promote the OEMs as the definitive sources of repair procedures, others have been

New England Automotive Report

reluctant to embrace this philosophy.

During a special panel discussion on aftermarket parts at the latest Collision Industry Conference (CIC), representatives from the non-OEM side voiced concerns over the growing push for consumer consent laws with respect to the use of these products during repairs.

“Why do you need to consent to something that is the same?” added Jack Gillis, executive director of Certified Automotive Parts Association (CAPA). “You really shouldn’t…When you have to sign for something, there’s an inherent bias built into that signature.”

“Some of the vehicles have 15-year warranties [on their OEM parts]…We believe that creates a monopoly,” added Terry Fortner, vice president of corporate accounts at LKQ Corporation. “We’ve talked to a lot of consumers; they are absolutely comfortable with disclosure as opposed to the written consent.”

Wayne Weikle, senior director of state government affairs with the Alliance of Automobile Manufacturers (a group representing 12 car manufacturers), suggested that the ultimate responsibility for the parts used on a vehicle should be placed on those who insist on them being used.

“If it’s the insurer [that requires] that aftermarket part to be on there, putting an obligation on the consumers to keep track of which part was used in their repair a couple of years before is ludicrous. You have to keep a stack of paper [and] understand what those abbreviations are… I don’t understand why the insurers aren’t the ones carrying the warranty. It seems only fair to the consumer…I don’t see why we don’t have a bill in every state requiring informed consent.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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2017 AASP/MA

GOLF OUTING

HIGHLIGHTS JULY 19, 2017 BLACKSTONE NATIONAL GOLF CLUB SUTTON, MA PHOTOS BY JOEL GAUSTEN

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THE PLAYERS: (All teams are listed L-R) 1. Al Brodeur, Molly Brodeur, Mark Rousseau, Steve Lefebvre 2. Seth Roy, Amy Blair, Sam Casavant, Craig Sherbekow 3. Krystal Knight, Joe Knight, Tom Ricci, Peter Ervay 4. Dave Gallerani, Kevin Gallerani, Tom Frost, Stan Tavares 5. Rich Connor, Sean Morton, Greg Karpowicz, Matt Peloquin 6. Jeff Williams, Mike Foster, Tristan Ortiz, Burgess Houston 7. Steve Litwin, Scott MacDonald, Steve Creanza, Dario Ciovacco 8. Josh Parrish, David Elie, Joe Godina, Seth Elie

9. Rick Starbard, Fred DiCesare, Leonardo Rodriguez 10. Paul Hendricks, Ed Nalewanski, Dean Lafond, Peter Langone 11. Gary Brown, Paul Tuscano, Keith Ells, Peter Walsh 12. Josh Fuller, Mike Martinsen, Erik Martinsen, Roger Robinson 13. Ralph True, Tom Colliner, Mike Mayou, Bill Jones 14. Guy Demers, Allen Croteau, Steve Mack, Bill Johnson 15. Ken Parker, Mike Burns, Brian Butler, Fred Schube 16. Jeff Sbrogna, Chris Michalowski, Dennis Seaver, Scott Randall 17. Matt Ciaschini, Meaghan Sullivan, Mike Rainville, Bob Rainville 18. Tim Varitimos, Travis Bannister, Steve Pacios, Tom Courtland 19. Scott Carney, Chris Sachs, John Marceau, Bino Dos Santos

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AASP/MA GOLF OUTING

HIGHLIGHTS CONGRATULATIONS TO THIS YEAR’S WINNERS!

FIRST PLACE TEAM Matt Ciaschini, Meaghan Sullivan, Mike Rainville, Bob Rainville SECOND PLACE TEAM Rich Connor, Sean Morton, Greg Karpowicz, Matt Peloquin THIRD PLACE TEAM Krystal Knight, Joe Knight, Tom Ricci, Peter Ervay

AASP/MA THANKS ALL THE SPONSORS OF THIS YEAR’S TOURNAMENT! Tournament Sponsor: Enterprise Rent-A-Car Prize Sponsor: Al Brodeur’s Auto Body Hogan & Van Dinner Sponsors: Best Chevrolet West Springfield Auto Parts Lunch Sponsors: BASF Closest to the Pin Sponsor: Fuller Automotive Longest Drive Sponsor: Lynch Associates General Donations: Collision Tools, Inc. Guy’s Auto Body Lombard Equipment Hole In One Sponsors: LKQ/Keystone Automotive Long Automotive Cadillac

L-R: Closest to Hole (Male) winner Seth Roy; Closest to Hole AND Longest Drive (Female) winner Krystal Knight; Longest Drive (Male) winner Mike Rainville.

Platinum AASP/MA Sponsor: PPG Competition Sponsors: Long Automotive Group BASF Corporation

Bill Johnson took his team’s defeat in stride!

Special thanks to Tournament Sponsor Enterprise Rent-A-Car!

Hole Sponsors: Auto Body Builders Automotive Training Institute Axalta Bernardi Auto Group Body and Paint Center of Hudson Boutiette's Auto Body, Inc. Cape Auto Body Don Kennett, Inc. FinishMaster Fuller Automotive Greco Publishing/New England Automotive Report Linder's, Inc. Paster, Rice & Castleman, LLC Rainbow Auto Body & Paint Supplies Tiny and Sons Auto Glass Raffle Prize Donations: Albert Kemperle, Inc.

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AASP/MA GOLF OUTING

HIGHLIGHTS HONORING TOM RICCI During the special dinner and awards presentation that followed the AASP/MA Golf Outing, President Molly Brodeur honored longtime association member and industry advocate Tom Ricci (Body & Paint Center; Hudson) for his years of selfless work on behalf of the Massachusetts automotive repair community. “[Tom] has been very involved in the collision industry in Massachusetts for well over two decades, almost closing in on three. He was the president of the Central Massachusetts Auto Rebuilders Association [CMARA] for close to 20 years. He was also instrumental in bringing the three organizations [CMARA, the Massachusetts Auto Body Association and AASP/MA] together to merge. We merged back in 2010, and it was in large part due to his leadership, along with the leadership of

[then-AASP/MA President] Rick Starbard and [then-MABA President] Paul Hendricks. When we merged the three organizations, Tom had the difficult task of taking these three entities and trying to bring everybody to the table and move forward. He used to say at every Board meeting, ‘We have to clear the brush before we can pave the road.’ He led everybody through probably the hardest time we’ve had as an association.

Tom Ricci and AASP/MA President Molly Brodeur “Sadly, Tom retired from the Board of AASP/MA this past year for lots of different reasons – all of them totally understandable,” Brodeur continued. “He has dedicated the better part of his life to

this industry. He’s done it quietly and efficiently. He’s the person you can call and talk to if you have any questions at all. He has answers, he knows everybody, he’s been around and further, he’s just a terrific person. Personally, he’s been a mentor to me; he’s taught me everything that I’ve needed to know to be the leader of this organization. He took me to the State House when I was brand new and just working at the shop. He spent countless hours talking to me; we discussed the association and the industry. He’s just a really phenomenal person. Certainly, we miss him at the Board level, but we know that if we call, he’s always going to take that call and always be there to help…On behalf of AASP/MA and everybody in this room, we want to thank you, Tom…You’ve certainly put in your time and made the collision repair industry in Massachusetts a better place.”

Visibly moved by the award, Ricci accepted Brodeur’s words with appreciation and a good sense of humor.

“The only meeting I didn’t show up to was the meeting they voted me president!” he joked. “But seriously, thank you very much. It means a great deal to me.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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The Shocking Truth about Accountability

[TECHNICAL] FEATURE

by Larry Montanez, III CDA

W

ell, the industry is once again in a panic, and many are confused. Before you read this article, please watch the online news report found at tinyurl.com/y79vjlg8.

Shocked? You should be. This case has brought out all kinds of opinions from the collision repair and insurance industries, and neither side are experts on the subject.

The opinions presented and posted on social media range from a few well thought-out questions and observations to the most asinine statements ever made on collision damage and accident reconstruction. Some of the mathematics posted by some, such as the idea that two vehicles impacting each other at 75mph headon produce 150mph of impact, are so incorrect it makes you ask, “Who ties your shoes in the morning?”

The deposition of shop manager Boyce Willis was posted online though Repairer Driven News (repairer drivennews.com). The comments and the statements on social media about Willis’ answers run the gamut from funny memes to light bashing to significant bashing – but is he really the rarity and just misinformed, or is he more the norm within this industry of ignorance? The following are some of his answers to deposition questions – along with my comments and commentary that will set the record straight.

Kristen Felder (founder and owner of Collision Hub), Marc Gabbard (creator of the Facebook group Collision Repair Technicians United, or CRTU), Mike Anderson (Collision Advice) and I have mentioned many times on social media that there could eventually be significant injury and/or death of a vehicle occupant in a collision. We’ve also discussed the subsequent legal storm that could expose the liability of the repair facility and all employees involved who can be tied to a recent repair. One example found online is the story of a mechanic charged with manslaughter and reckless endangerment (“Liability: Where Do You Stand?” NEAR November 2015 – available at grecopublishing.com). Many on the CRTU group mention the idiotic excuses Willis stated; even after the situation was explained, these people were dead wrong or they fell on the proverbial sword excuse of, “I have a family to feed and can’t lose my job. I am only doing what I am told to do.”

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Deposition Overview Since 2007, Willis has been the collision facility manager at John Eagle Collision in Dallas, TX. His answers in the testimony may be some of the most idiotic, misinformed ones we have ever read in a deposition, court testimony or any other transcripts from a legal proceeding. However, what made it so bad for him and for the collision repair industry in general, besides being a high-profile case, is that the OEM repair procedures and protocols were ignored and people were injured, which may or may not have been exacerbated by the incorrect repair procedures. Additionally, the lawyer in this case has mentioned he will be looking into other repairs made by the facility.

Before I begin with the overview, consider this: Unfortunately, history repeats itself, and the Nazis during the Nuremberg Trials attempted the same excuse as the one cited below. The final verdict and tally in those trials was 12 death sentences, three life in prison with no chance of parole sentences, two 20-year sentences, one 15-year sentence, one 10-year sentence and three acquittals due to improper police arrest procedures. What will the fallout of this case bring if John Eagle Collision is found guilty? Willis, the technician, the so-called consultant (who wrongly advised and either approved or convinced the facility to use incorrect and unapproved repair methods and materials) and even the facility owner could be sued civilly, and a case could be made for criminal negligence. What could this mean to the collision repair industry? It has been reported that the plaintiff lawyer (Mr. Tracy) plans to go after more repairers and more facilities.

1. From 1982 through 2007, Willis was a parts manager, but stated he has no actual collision repair experience, training or education. This is a common issue in the repair industry, where those chosen for managerial decision-making positions have little to no automotive repair knowledge and are more or less “number crunchers” who can manage people. In some cases, a lead decision-maker is a former technician who attempts to impose their own past experiences on repair decisions, which in many cases are incorrect or outdated. Regardless, it is always discovered that the OEM repair procedures were not referenced or utilized.

2. The powers that be at Eagle decided that Willis should be the corporate representative. In my opinion, they made a bad choice in two major areas. For starters, Willis is not educated enough on collision repair procedures, the state’s collision repair business rules and regulations, the state’s insurance rules and regulations and the state’s consumer protection laws and regulations for fair and equitable claims settlement practices and statutes.

3. It is obvious by the answers Willis provided that he was not prepared properly prior to the deposition. This evidence suggests the lawyer for Eagle was not prepared or trained for this type of case. Industry attorney Erica Eversman and I have worked together many times on many cases where we had to train the lawyers and witnesses on the facts as opposed to the myths, and where to find the facts. Remember: It is not about what you think in a lawsuit; it is about the law and the facts. The quote, “You are entitled to your own opinion, not your own facts,” has never been more accurate based on what we are seeing in this case.

4. Attorney Tracy asked Willis, “Do you agree, as the voice of John Eagle Collision Center, that when someone takes their vehicle to your certified body shop to be repaired after a vehicle collision or hail damage, people trust that the body repairs will be performed according to the vehicle manufacturer’s repair specifications?

Willis answered; “Yes. According to the insurance company.” a. There are two major issues here with this answer. Obviously, “yes” is the correct answer, but “according to the insurance company” is the completely incorrect answer. b. Many states mention in the rules, regulations and/or laws for consumer protection, insurance or repair facility licensing that the repairer should have a fiduciary obligation to the consumer. Fiduciary is commonly defined as: A person to whom property or power is entrusted for the benefit of another,” or “Of, based

on, or in the nature of trust and confidence, as in public affairs of the general public.” c. The insurance company only has three choices for claims settlements. One would be to pay for the value of the vehicle (i.e., total loss and pay the ACV).

Another would be to pay for the repairs in monies or, thirdly, repair the vehicle themselves (which they cannot). d. The correct answer should have been, “Yes, as per the OEM repair procedures, protocols and materials as outlined in the repair manual information.”

5. Attorney Tracy asked: “Do you agree that if a certified body shop does not repair the vehicle to the vehicle manufacturer’s repair specifications, and then someone is seriously injured or killed because of a repair failure, that the body shop is responsible?”

Willis answered: “Yes.” a. This would be correct. However, once again, the use of the word “certified” has now been stretched so far that it’s become ambiguous. In many cases, it is now thrown around without meaning. b. As I have written many times before, to be certified in the collision repair industry there must be a number of components. One is training – which would include online, self-study with testing, classroom with testing – and must include hands-on skill-based practical training and testing, as well as periodical on-site inspections without notice and annual or semi-annual training and testing to ensure the technicians’ knowledge and skills are up to the standards set by the particular OEM. 6. Tracy asked: “If you don’t follow […] the manufacturer’s repair rules, and then someone’s injured or killed because those repair rules weren’t followed, you’re responsible for all the harms and losses, aren’t you, sir?”

Willis answered: “To a certain extent.” a. This answer is correct and ambiguous enough to force more specific questions.

7. Tracy asked, “As a certified body shop for the OEM manufacturers, [you] will bring your vehicle back to the vehicle manufacturer’s repair specifications, correct?”

Willis answered: “Or better, yes.” a. Uh-oh. Bad answer. It is just, “Yes.” How can anyone make it better than the manufacturer originally designed? Yes, an argument can be made for tested highperformance components, but what is given up for that additional performance?

Drivability or longevity, in many cases.

8. Tracy asked, “And on Exhibit Number 18, John Eagle Collision Center installed a new high-strength steel roof on Mr. Scroggins’ 2010 Honda Fit in July 2012, correct?”

Willis: “Can I interject?”

Tracy: “Sure.”

Willis: “That’s not a high-strength steel roof. It’s just a regular panel roof.”

Tracy: “Okay. So that’s despite the fact that [the estimate] he had received was for a high-strength steel roof?”

Willis: “The Honda does not make high-strength steel panels. You can call Honda, and they’ll tell you directly. There is no such thing as a highstrength steel panel. High-strength gets measured by tensile. And for it to be high-strength, it has to be 590. A panel roof, whether it be a hood or a door, are all 270.”

Tracy: “And mega pascals for Advanced·High-Strength Steel (AHSS) is from 270 to 490. And then Ultra-High Strength Steel (UHSS) is anything above 570. Did you know that?”

(Note: Some of the quotes included herein have been edited and/or paraphrased for space and clarity.

A complete transcript of the deposition is available online at repairerdrivennews.com.)

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[TECHNICAL] FEATURE Willis: “No. I just talked to Honda, [the] Honda tech line, and they said the panels are not high-strength.” a. The roof panel is 270MPa/39,160psi which is classified as low-grade conventional High-Strength Steel (HSS). Willis is incorrect. Additionally, Willis answered “no” to processing knowledge of the UHSS of 570. He is not a metallurgist and should have said that is not his area of expertise. b. Tracy is incorrect on AHSS being 270MPa to 490MPa. It is actually classified in a range of 590MPa and higher; on most charts, it is listed as 590MPa to 1200MPa to 1500MPa. 9. Tracy asked, “When you say that it was a 3M 8115 product, is that because that’s what was customary within John Eagle Collision Center back in the 2012 time period?”

Willis answered: “It is. It is an accepted repair alternative, based on our cars and insurance certifications.” a. Willis’ answer is not only incorrect, but ignorant, as there are no insurance certifications for collision repair. b. 3M 8115 is not an accepted repair alternative. There is no manual in the collision repair industry that is titled “Accepted Repair Alternative.” This thinking is generally due to incorrect statements made by instructors, technicians, “clown-sultants” or sales representatives in training classes, repair workshops or in the facility itself. c. I have no idea or reasoning as to why Willis answered “based on our cars.” It makes no sense whatsoever.

10. Tracy asked: “And let’s have an agreement today that we don’t use the word insurance. Can we? Is that cool?”

Willis: “Well, unfortunately we’re guided by insurance. So if you brought your car into my shop, right, the insurance company’s going to dictate what – how we’re going to repair your car.” a. Wow. Just wow. Willis shows his ignorance once again. The insurance company cannot dictate anything once they decide on the option to pay for repairs in monies. The insurer is not liable for what repairs the repair facility attempts or performs. They are not the repair professional.

11. Tracy asked, “I understand. But [you] are a certified body shop […] the insurance company cannot trump the OEM specifications, correct, sir?”

Willis: “There is no documentation.” a. Willis just confirmed they deviated from what the OEM (in this case, HONDA) requires for the replacement of the roof panel.

14. Tracy asked: “So, John Eagle Collision Center – they made a conscious decision to use adhesive to glue this roof in place?”

Willis: “Yes.” Tracy: “And it was not a mistake?”

Willis: “No.” Tracy: “It was not an error?”

Willis: “No.” Tracy: “It was deliberate?”

Willis: “Yes.” Tracy: “And it says – under “Warning” – what does that say – that’s highlighted?”

Willis: “You can be killed or seriously hurt if you don’t follow instructions.”

Tracy: “And this is – this is John Eagle’s Bible that they have to follow, right?”

Willis answered: “Yes.” Tracy: “This is [the] OEM, Honda Motor Company, Ltd., […] telling John Eagle, you better follow this, right?”

Willis: “Well, they don’t tell you, you better follow it, but it’s – it’s a guide to repairing a car.”

Tracy: “It’s the – it’s the body repair bible, right?”

Mr. Reese: “Objection to form.”

Willis: “Supposedly, yes.” a. So, let’s recap. Willis admitted under oath that they deviated from the HONDA repair procedures. They made a deliberate and conscious decision to not follow the HONDA procedures. b. Willis admits, “You can be killed or seriously hurt if you don’t follow instructions.” c. Willis states that the HONDA repair manual is a guide to repairing the vehicle (go look up the definition of a guide). When Tracy likened the repair manual to the body repair bible, Willis answered: “Supposedly, yes.” So, Willis does understand that the repair manual is the bible to repairing a specific vehicle, but also states it is a guide. Wow. I wonder if he will run for government office with that flip-flop attitude.

15. Tracy asked: “All right. Did Ignacio “Nacho” Figuereno know about Exhibit 202?”

Willis: “Yes, they can.”

Tracy: “Where does it say that?”

Willis: “By not paying the bill.” a. Do I need to point out Willis’ ignorance and delusions yet again? The insurer does not pay the repair facility on any customer’s repair. The insurer owes the insured or claimant the monies once liability is accepted. b. The insurance company can never “trump” or overrule the OEM specific repair protocols, procedures, position statements or required materials.

12. Tracy asked: “So don’t you have to have certain parameters [to be a certified body shop]?”

Willis answered: “To be a certified body shop you have to be fully I-CAR certified.” a. For someone in the collision repair industry for over 12 years, Willis is pretty misinformed about what I-CAR does. I-CAR does not certify anyone. Go look at their website or watch the Collision Hub video from the 2017 NACE Automechanika show in Chicago “What Does I-CAR Say” (tinyurl.com/yd29tpyw). I-CAR trains. Plus, the HONDA repair manual overrules anyone else’s opinion as to what should or should not be done on their vehicles.

13. Tracy asked: “When [technician] Mr. Figuereno decided to use adhesives. Tell me the name of any Honda Motor Company, Ltd. body repair document that authorized John Eagle Collision Center to use adhesive to glue a new roof back on a 2009-2013 Honda Fit?” Mr. Reese, defense attorney: “Objection; form. You can answer.”

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Willis answered: “He has – he has access to it.”

Tracy: “Where do you have access to it?”

Willis: “Through the parts department.” a. Through the parts department? This is another issue plaguing the collision repair industry. Why don’t the technicians have their own access to look up the repair procedures and protocols? Relying on the parts department to obtain the proper information is negligent, unnecessary and unproductive.

16. Tracy asked: “And part of your job as a certified repair facility is to make certain that your repairs meet or exceed the manufacturer’s recommended repair methods so that their vehicles can continue to meet the standards, correct?”

Willis: “I agree.” a. Willis agrees that as a certified repair facility, they are to make certain to meet the manufacturer’s repair methods, but still made a conscious and deliberate decision to deviate from the HONDA repair procedures.

17. Tracy asked: “It’s easy to get access to this repair manual as a certified shop?”

Willis: “Yes.” Tracy: “In fact, you plug in techinfo.honda.com. Did you know that?”

Willis: “No. I go to the parts department.”

Tracy: “You just go to the parts department?”

Willis: “Yeah.”

Tracy: “And did you know as a certified body shop facility that they can plug that website in and it will ask you what vehicle you need information on?”

Willis: “Yes.”

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Tracy: “That’s not surprising, right?”

Willis: “No.” Tracy: “And, in fact, it will tell you various updates on, you know, on our repair manual; did you know that?”

Willis: “Yes.” Tracy: “And it will also give you information about body repair news; did you know that?”

Willis: “Yes.” a. Obviously, based on the answers from Willis to the above questions, he has knowledge of the HONDA tech info website and what information is provided within the site, but he still ignores the access and goes to the parts department to ask for information. Maybe they should have gone to McDonald’s or Starbucks for the information?

18. Tracy asked: “Is the 3M 8115 an approved item?”

Willis: “No.” Tracy: “Well, who approved it for use on Honda vehicles? Who approved 3M 8115 for use on Honda vehicles, specifically the 2009-2013 Honda Fit? Who approved it?”

Willis: “Are you talking about as a manufacturer or…”

Tracy: “At the collision center. Because no one at Honda has approved the 3M 8115 product to be used.”

Willis: “That would be the collision center.”

Tracy: “Who at the collision center approved it? Who did that?”

Willis answered: “Back in 2012, it would have been Brian Cunningham.”

Tracy: “Brian Cunningham. And what was his job title?”

Willis: “He was actually put in over me for a short period of time.”

Tracy: “And what was his job title?”

Willis: “Director.”

Tracy: “He came over you despite the fact that you were the director of the body shop. He came over you and you sort of…”

Willis: “He’s kind of like a consultant-type of deal.” a. So once again, Willis admits that 3M 8115 bonding adhesive is not an approved repair procedure to install the HONDA roof panel, but admits to ignoring the warning that it is not approved and used it anyway. b. Willis also admits to taking the advice of a socalled consultant, Cunningham. I am sure you are all like me and cannot wait to hear what Cunningham has to say.

19. Tracy asked: “How long was he with John Eagle Collision or John Eagle Collision Center?”

Willis answered: “Probably, say, two and a half years, I think.” a. Willis states Cunningham was there for two and half years. I wonder how many other vehicle repairs were altered due to a deliberate and conscious decision to ignore the OEM-required repair procedures and protocols in that two-anda-half-year period – and even after that time to present.

Conclusion Some of you might be thinking, “WOW. REALLY? Can anyone be that misinformed?” The sad truth and very harsh reality is that a lot of shop management, estimators and ownership think this way. This is especially true with the more corporate-type facilities – with the suits and ties running the show – and even those facilities that are on DRPs. The lies, deceptions and myths resonating within the collision repair industry are out of control, and the uninformed consumer is the one who is put at risk. This Honda Fit case is just the tip of the iceberg. There will be more to come just like it, and many shops will be put under the microscope with little to no defense. Too many shops are only concerned with numbers, such as their KPIs, gross profit, average touch time, cycle time, days to repair, efficiency percentage and a few other catchphrases. Conversely, research shows that the more a shop is concerned about those numbers, the more likely repairs are performed incorrectly. Excuses range from some of the idiotic answers from Willis to “I have a wife and kids to feed and I need to put money on the table,” “I will lose my DRP,” “They won’t pay for that” or “I will lose my customers if I charge them or make them sue.” The sad truth is that most consumers, insurance company personnel and even the collision repair facility employees have all been conditioned into thinking it is the shop’s fault, and the shop is the bad guy for everything in the industry.

I will leave you with this closing thought. For a moment, consider this scenario and think about it. If the answer comes to you, then you get it. If the answer is not crystal clear, then you do not get it and never will, so I recommend you hire a lawyer.

A man, let’s call him John, was injured at work. He was hit in the head by a falling blunt object. He was not knocked unconscious, but did feel dizzy and lightheaded. A large bruise and lump were visible. John went to his doctor and had x-rays, an MRI and sonogram taken. John gave his insurance information, paid his co-pay and went home. About two months later, John received two letters in the mail. One was from his doctor and the other one from his insurance company. The insurance company letter stated that they will not be paying for the sonogram as it is not usual and customary for this procedure. The letter further explained that the insurance company got the doctor to lower the charges from $1,200 to the rate the insurance company pays for sonograms, which was $850. John opened the letter from the doctor and it stated that his insurance company deemed the sonogram unnecessary, and John owed the doctor $850 (which was discounted). He had 30 days to pay before it goes to a collection agency. Now a few questions for you to answer and think about. (Don’t worry, they are multiple choice.)

1. Who is John mad at? a. Himself c. The Doctor

b. His Boss d. The Insurance Company

2. Did the doctor offer any assistance (besides the discount) to John? a. Yes b. No 3. Will John go back to that doctor if he is ever in need again, even though he was charged personally for services rendered? a. Yes b. No 4. What would you do? a. Not pay c. Sue

b. Pay d. Protest

Read it again if necessary. Do you get it now? Do you see the error of your ways? As always, feel free to contact me with any questions you might have.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

THE STATE OF REFERRALS

It used to be so clear in Massachusetts.

As declared in M.G.L., Chapter 26 §8G: “No appraiser or insurer shall request or suggest that repairs be made in a specified repair shop.” And as further provided in the regulations issued by the Auto Damage Appraiser Licensing Board (ADALB): “No staff or independent appraiser, insurer, representative of insurer, or employer of an independent appraiser shall refer the claimant to or away from any specific repair shop or require that repairs be made by a specific repair shop or individual.”

It is true that case law interpreted these rules and the subsequently enacted direct payment law tweaked them, allowing insurers to maintain lists of referral repair shops.

Still, insurers were highly regulated in how far they could go in trying to influence claimants to use their referral body shops. Insurers had to give their claimants lists of all registered repair shops in the claimant’s county. Although they could indicate on the lists which shops were their referral shops, they still had to make it clear that the claimant did not have to use one of them and could use the collision repair shop of their choice. Further, insurers had to accept almost all registered repair shops as referral shops, as long as the shop agreed to the terms of the insurer’s referral shop contract.

The state of referrals by insurers is now radically different. Today, insurers have widespread programs in which they try to influence customers to use one of only a few preferred repair shops. And some insurers go even further, attempting to steer customers to one particular preferred shop. I recently became aware of a noteworthy situation where one insurer is telling claimants on the 46 September 2017

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Massachusetts border that they must go to a specific outof-state repair shop to get their damages appraised, and that they must also have their repairs made at that shop.

HoW DiD We Get Here?

For many years, there seemed to be an uneasy balance between an outright prohibition of referrals and a widespread allowance of referrals – a balance that both the insurance industry and collision repairers learned to live with. Body shops pushed for limiting insurers’ attempts to try to influence claimants to use certain shops, while insurers pushed for being able to impart as much propaganda as possible to claimants to try to make them believe that they would be better off using one of the insurer’s referral shops. The balance may have tilted back and forth over the years, but both industries recognized the basic concept that, ultimately, claimants legally have the right to choose who is going to repair their car. If either industry felt that the balance was teetering against them, they could seek relief from the Division of Insurance and/or the ADALB, and there was at least hope that government regulators would help push the balance back in their direction. In some instances, just filing a complaint was enough to make the other step back a bit from their position.

However, a number of years ago, some insurers started programs in which claimants were being pushed to utilize only a very limited number of repair shops. The insurers developed a sub-list of favored referral shops and peppered claimants with information (whether true or not) that the insurers hoped would influence them to use one of

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the preferred shops. Not all referral shops would be on the sub-list, and only some shops were allowed onto the sublist. The shift to the use of preferred shops was gradual, and the DOI seemed to turn a blind eye to the practice – so long as the insurers still handed out their list of all registered shops and those carriers still informed claimants that they could still use the registered repair shop of their own choice.

More recently, some insurers became more aggressive in trying to influence claimants to use one of only a few preferred shops – or, in certain instances, only one specific shop. It began with certain large insurers that had not written auto insurance in Massachusetts until the DOI stopped setting a fixed premium rate to be used by all insurers and “managed competition” allowed insurers more flexibility in deciding how much to charge for auto insurance. The new entrants into the Massachusetts insurance market were accustomed to writing their policies in states that were much more accepting of direct referrals, and these insurers believed that they could develop the same types of referral programs here.

At the time that this occurred, the regime at the DOI had changed. In my opinion, the then-sitting Commissioner and his staff seemed much more interested in attracting more insurers to the Massachusetts market than in enforcing Massachusetts law. Not only were the new insurers vigorously attempting to influence claimants to use their preferred repair shops, but they were bold enough to blatantly disclose their preferred shop programs in their individual direct payment plans that they filed for approval with the Commissioner’s office. (In order to write auto insurance here, all insurers are required to adopt direct payment plans and have them approved by the Commissioner.) Despite governing regulations seeming to prohibit such programs, the Commissioner approved the plans. To compete with the new insurers, many longtime Massachusetts insurers found themselves following the lead of the new players in the market.

Are tHe Current insurer PreferreD sHoP referrAl ProGrAms leGAl? In my opinion, the answer is clearly and resoundingly NO! The anti-referral statute cited at the beginning of this article is still the law here, as is the quoted anti-referral language from the ADALB regulations.

It is true that there have been some modifications, including a statute permitting the Commissioner of Insurance to allow structured referrals under direct payment plans, and an amendment to the ADALB regulation that says that its anti-referral language does not apply to referrals under direct payment plans. But the regulations governing direct payment plans have not changed, and all insurer plans are still required to meet the requirements of those regulations. And those regulations still: require insurers to accept almost all registered repair shops as referral shops; require insurers to hand out lists of all registered repair shops in the claimant’s county with an

indication on that list of which shops are the insurer’s referral shops; and require that insurers not provide any other list of preferred shops and still require that a claimant has the right to use whatever registered shop they want to bring their car to.

There appears to me to be absolutely no room in the regulations for what is going on today. Insurer preferred shop programs that do not meet these criteria appear to be illegal. And the program in which a particular insurer is referring claimants on the Massachusetts border to a particular out of state shop for appraisal of damages – and then mandating the shop be used to perform the repairs – seems to be so over the top as to be almost unbelievable.

Yet, the preferred shop programs openly exist. And I have seen the communication sent to the border claimant, telling them that they must have their car “inspected and repaired” at the particular out-of-state shop.

WHAt CAn Be Done?

Unfortunately for the majority of the collision repair industry, unless and until the current Commissioner of Insurance takes action against insurer preferred shop programs, it is unlikely that there is going to be a change – and I suspect that the Commissioner is not going to do anything unless he is pressured into acting. Even then, there is sure to be counter-pressure from the powerful insurance lobby to allow the continuance of these programs, and it may be difficult to turn back to the system that we used to have.

If the collision repair industry opposes the preferred shop programs, then it will be necessary for shops to bring abuses to the attention of the Commissioner – and perhaps to the ADALB, the Attorney General, the Governor and state legislators as well. It also may be necessary to get customers involved in making complaints if they feel that they have been abused by the system. Filing legitimate complaints, talking to your local state representative and senator and lobbying the Massachusetts legislature should all be considered a necessity. Even though the law appears to be on the side of the collision repair industry, it is likely to be a tough battle to get the Commissioner of Insurance to act to restrict what insurers are already doing. As a lawyer looking at the situation, it is a difficult scene to take in.

Perhaps the current Commissioner – or the next one – will eventually see the light and get insurers to follow the rule of law.

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

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

For Genuine Honda parts, contact these Authorized Honda dealers.

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

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

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

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

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

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

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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

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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!”

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©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

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Prompt &  Dependable Delivery

Experienced and Professional Parts Team

Ask about our Competitive Prices

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

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Parts Line:

508.699.4700 270 East Washington St. North Attleboro, MA 02760

www.firsthyundai.com

Parts Line:

774.888.6666

292 William S. Canning Blvd.

Fall River, MA 02721

www.firstfordma.com

Parts Line:

508.316.8410 280 East Washington St. North Attleboro, MA 02760

www.firstchryslerma.com

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FOR SALE 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 offer

Contact: Gary (413) 562-0321

Two Pro Spot welders

Will sell for $150 or best offer

One is new and usable; second can be used for spare parts Location: Manchester, NH

$1,200

(price negotiable)

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

Rear Liftgate for a 2006 Honda Odyssey (paint code R519P) Model years 2006-2007 Excellent condition

Located in Walpole, MA

$650

(price negotiable)

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

New Left Rear Âź 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 New England Automotive Report

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Enterprise ........................................................53

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FutureCure ......................................................19

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Hyundai Group ..............................................27

Honda Group..................................................48 Imperial Ford ..................................................38 Ira Subaru........................................................13 Ira Toyota of Danvers ....................................12 Kelly Automotive Group............................IBC Kia Group........................................................29 Linder’s, Inc. ..................................................24 Long Automotive Group ..............................20 Mazda Group..................................................45 McGovern Chrysler Jeep Dodge Ram ........39 Mercedes-Benz of Shrewsbury ....................26 Mopar Group..................................................14 Nissan Group..................................................31 Polyvance ........................................................44 PPG ....................................................................3 Robertsons GMC Truck ................................53 Sarat Ford Lincoln..........................................51 Sentry Group ..................................................25 Shop For Sale ..................................................35 Subaru Group ................................................30 Tasca Group ....................................................15 Toyota Group..................................................50 Volvo Group....................................................37 VW Group ......................................................49 Wagner BMW of Shrewsbury ......................26 Wagner Kia of Shrewsbury ..........................26 Wellesley Toyota/Scion ................................39 Wheel Collision Center ................................54

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