NEAR1117.qxp_NEAR1014 10/23/17 11:32 AM Page 1
YOUR VOICE IS HEARD: Member-Driven Push Prompts Revised Honda Position Statement pg. 28
November 2017 U.S.A. $5.95
Serving the New England Collision and Mechanical Repair Industry
Fundamentals of Flawless Repair Planning: MASSACHUSETTS
BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA Statewide Meeting Recap
PLUS:
Can You Spare $42 Million?
www.grecopublishing.com
NEAR1117.qxp_NEAR1014 10/23/17 11:32 AM Page 2
2 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:32 AM Page 3
NEAR1117.qxp_NEAR1014 10/23/17 11:32 AM Page 4
NEAR1117.qxp_NEAR1014 10/23/17 12:19 PM Page 5
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Statewide Meeting Wednesday, November 15 SHERATON TARA-FRAMINGHAM 1657 Worcester Road Framingham, MA 01701
Registration: 5:30pm Dinner and Presentation: 6pm Pricing: $35 AASP/MA Members, $70 Non-Members Call/Email Colleen to Register: (617) 574-0741/ckane@aaspma.org
Can You Afford A $31.5 Million Lawsuit? As you may be aware, a Texas jury found a collision repair shop responsible for improper repairs that caused much of the severity of injuries resulting from the crash of a 2010 Honda Fit. It awarded the couple injured and trapped inside the burning vehicle $42 million in damages. The Dallas-based shop was found liable for 75 percent of the couple’s damages – for an award of $31.5 million against the facility. The Dallas County jury attributed 25 percent to the other driver. According to their lawyers, the repair shop made a business decision to panel-bond the roof instead of following Honda’s repair procedures. It is important to note that the lawsuit was brought forth by the second owners of that vehicle, meaning that someone trading in a vehicle repaired at a shop does not release that facility from potential liability in a subsequent collision.
Could your shop afford to pay $31.5 million for not following repair procedures? AASP/MA encourages all Massachusetts shops to follow original manufacturer repair procedures and adhere to Massachusetts state regulations. According to current Massachusetts regulations 212 CMR 2.04 (1)(e), when determining the cost of repair, “Manufacturer warranty repair procedures, I-CAR, Tec Cor and paint manufacturer procedures m a y also apply.” During the May 24, 2016 regulations rewrite, the Auto Damage Appraiser Licensing Board (ADALB) made language recommendations to change the “may” to “shall” to highlight the importance of following OEM repair procedures. Attorney Jim Castleman will provide his analysis of this case and how Massachusetts shops can minimize their risk. Attend this important training seminar to ensure that your shop complies with repair procedures, governing statutes, current regulations and Massachusetts case law. New England Automotive Report
November 2017
5
NEAR1117.qxp_NEAR1014 10/23/17 11:32 AM Page 6
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 7
November 2017 • Volume 15, No. 11
CONTENTS
DEPARTMENTS PRESIDENT’S MESSAGE by Molly Brodeur 8 | Can You Spare $42 Million? LOCAL NEWS 16 | ADALB Members Clash over OEM Repair Procedures NATIONAL NEWS by Joel Gausten 18 | Texas Body Shop Ordered to Pay $31.5 Million in Improper Repair Case
34
ASK MIKE 22 | What is the value of shops attending national industry events? LEGAL PERSPECTIVE by James Castleman, Esq. 46 | The Total Loss Process
FEATURES COVER STORY by Kristen Dalli 24 | Fundamentals of Flawless Repair Planning: AASP/MA Statewide Meeting Recap
40
AASP/MA FEATURE by Joel Gausten
ALSO THIS ISSUE
28 | Your Voice is Heard: Member-Driven Push Prompts Revised Honda Position Statement
10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR: Growing AASP/MA NOW! 11 | AASP/MA MEMBERSHIP APPLICATION 13 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS
NATIONAL FEATURE by Tom Slear 34 | Are Autonomous Cars a Real Threat to the Industry? Part 2 of a 2-Part Series: Day of Reckoning
13 | AASP/MA SPONSOR INFO 18 | IN MEMORIAM: Angelo P. Campanella Jr. 50 | NEWS FROM POLYVANCE: Polyvance’s New Nitrogen Welder Lineup 50 | NEWS FROM ACCUDRAFT: Accudraft Announces Service Department Changes to Better Serve Customers
TECHNICAL FEATURE by Larry Montanez III, CDA 40 | When You Are Proven Wrong in Court (and It’s Too Little, Too Late): Part 1 of 2
52 | AASP/MA CLASSIFIED FORM 52 | FOR SALE 54 | INDEX OF ADVERTISERS New England Automotive Report
November 2017
7
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 8
PRESIDENT’S MESSAGE
Can You Spare $42 Million? MOLLY BRODEUR
When the John Eagle Collision case made airwaves out of Texas, it ignited a spark, as well as very important conversations, within the collision repair industry as to the ways we repair cars – and to what extent we’re allowing insurance companies to dictate the ways we do it. On October 2, the jury in Dallas found John Eagle Collision Center responsible for 75 percent of the damages to a 2010 Honda Fit, with the remaining 25 percent attributed to the other driver in the accident. With that 75 percent responsibility came a lofty $31.5 million price tag in damages, of the $42 million awarded to the Texas couple involved in the suit. Matthew and Marcia Seebachan (the couple involved in the case) suffered serious, traumatic injuries in addition to being trapped inside their burning car. While they thankfully made it out alive, their story is a testament to repairing vehicles the way the manufacturers intended they be repaired. What’s the alternative? The loss of life? An even heftier legal settlement than $42 million? We can only hope that this now-infamous case serves as a wake-up call to all shops that live by the “I know better” mentality. This mindset needs to change. Whether you’ve made the repair a dozen, two dozen or 300 times, the OEM guidelines serve an incredibly strong purpose, as no one knows how to bring the car back to pre-accident condition better than the manufacturer that designed it. N
E
W
E
N
In addition to OEM procedures, this case calls into question the relationship shops have with insurance companies. This illustrates proof positive that no shop can use an insurer as a scapegoat, nor should they. “The insurer made me do it,” or “The insurer won’t pay for it” are not excuses for repairing a vehicle incorrectly. The liability falls solely on your shop – not the insurance company. No insurance company will back you up in court or defend your incorrect repair, which is even more of a reason to follow the OEM guidelines to the letter. While the Seebachans were vindicated in this nationally recognized lawsuit, it’s important to see this case for the learning opportunity that it is. As collision repairers, we have a responsibility to our customers to bring their vehicles back to their pre-damaged form. If we continue to think that we know better than the OEMs (or that insurance companies can dictate our every move), we’ll continue seeing lawsuits like this one – or we can see the errors, file them away and do better for our customers next time. For more information on this case, see our coverage on page 18. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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
L
A
N
D
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
PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
PRESIDENT
TREASURER
Molly Brodeur
Kevin Gallerani
VICE PRESIDENT
IMMEDIATE PAST PRESIDENT
Adam Ioakim
Paul Hendricks
SECRETARY Ray Belsito, Jr.
AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rob DelGallo
AASP/MA DIRECTORS 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
MASSACHUSETTS
WWW.AASPMA.ORG
BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
8 November 2017
New England Automotive Report
Darlene Andrade
Kevin Kyes
Matthew Ciaschini
Peter Langone
Gary Cloutier
Frank Patterson
Alex Falzone
Mike Penacho
Joshua Fuller
AASP/MA EXECUTIVE DIRECTOR Jillian M. Bukhenik 12 Post Office Square, 6th Floor Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 9
We provide the highest level of customer-friendly service through our knowledgeable and helpful personnel!
WE WANT TO
EARN YOUR BUSINESS!
• We carry over $2,000,000 in collision & mechanical parts • Daily UPS shipping available
COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155 Phone Number: 781-395-3025 FAX Number: 781-395-4863
COLONIAL HONDA OF DARTMOUTH 225 State Road (Rte. 6) Dartmouth, MA. 02747 Parts Direct: 508-997-2919 FAX Number: 508-730-6578
CITY SIDE SUBARU 790 Pleasant Street Belmont, MA. 02478 Phone Number: 617-826-5005 FAX Number: 617-489-0733
COLONIAL FORD 147 Samoset Street Plymouth, MA. 02360 Phone Number: 800-233-8109 FAX Number: 508-830-1658
NORTH END SUBARU 757 Chase Road (Rte. 13) Lunenburg, MA. 01462 Phone Number: 800-548-8887 FAX Number: 978-582-9843
COLONIAL CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA. 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213
COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464
COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801
• Servicing Massachusetts, Rhode Island and New Hampshire • We build our reputation on providing you the best SERVICE!!
COLONIAL BUICK - GMC 66 Galen Street Watertown, MA. 02472 Phone Number: 888-560-5337 FAX Number: 617-489-6875
NORTH END MAZDA 757 Chase Road Lunenburg, MA. 01462 Phone Number: 800-322-1241 FAX Number: 978-582-9841
COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 888-322-6570 Phone Number: 508-996-6266 FAX Number: 508-616-0445 FAX Number: 508-979-1219
COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155 Phone Number: 781-475-5200 FAX Number: 781-391-3506
WELLESLEY VOLKSWAGEN 231 Linden Street Wellesley, MA. 02482 Phone Number: 800-228-8344 FAX Number: 781-237-6024 Contact: Dan Bettencourt / Wholesale Parts Manager
COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587
COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152
COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728
Place any order online with our parts order form at www.buycolonial.com
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 10
A MESSAGE FROM THE EXECUTIVE DIRECTOR
Growing AASP/MA NOW! JILLIAN BUKHENIK
Dear Members, Since our merger with CMARA and MABA in 2010, the Alliance of Automotive Service Providers of Massachusetts (AASP/MA) has been serving administrators, consumers, technicians and collision repair shop owners. Being an active member in this association is to be part of an amazing network of professionals, including national experts, industry directors and emerging leaders. We must all work together to promote best practices in the highest quality of repairs through aiding, education and training to all shops across the Commonwealth. In addition to education, we work to encourage change. Over the last two two-year sessions, we have filed five legislative initiatives that address everyday issues like the Labor Rate, aftermarket parts and steering. We have also made significant regulatory progress by offering language recommendations to 212 CMR, meetings with the Attorney General’s Office and continued pressure at the Auto Damage Appraiser Licensing Board (ADALB). This year alone, we have assisted members in filing several
complaints against appraiser violations, and we have been the driving force behind several proposed advisory rulings, including 2017-1 which was passed earlier this year. NOW is the perfect time to participate in the association. We must work together to inspire change in the industry. If you are not a member, we are offering free membership through the end of the year with a commitment to join in 2018. I know AASP/MA membership will provide value to your business – let us show you how! Sincerely,
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Jillian M. Bukhenik, Executive Director 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.
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
Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00
Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00
Parts Line:
508.699.4700 270 East Washington St. North Attleboro, MA 02760
www.firsthyundai.com 10 November 2017
Parts Line:
774.888.6666
292 William S. Canning Blvd. Fall River, MA 02721
www.firstfordma.com
New England Automotive Report
Parts Line:
508.316.8410
280 East Washington St. North Attleboro, MA 02760
www.firstchryslerma.com
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 11
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 ________________________________________________________________________________________________________ City
Street
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. New England Automotive Report
November 2017
11
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 12
12 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 13
AASP/MA ASKS YOU TO PLEASE SUPPORT in Massachusetts November 7, 2017 Adhesive Bonding Enterprise Rent-A-Car (Burlington, MA) November 15, 2017 Measuring Fuller Auto Body (Auburn, MA)
Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on additional AASP/MA sponsorship opportunities!
November 28, 2017 Structural Straightening Steel Fuller Auto Body (Auburn, MA)
For more information, visit i-car.com
New England Automotive Report
November 2017
13
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 14
14 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 15
New England Automotive Report
November 2017
15
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 16
[LOCAL] NEWS A heavy discussion of OEM procedures highlighted the October 3 meeting.
ADALB Members Clash over OEM Repair Procedures At the October 3 meeting of the Auto Damage Appraiser Licensing Board (ADALB) at the Division of Insurance in Boston. Board member Rick Starbard proposed that the Board issue an Advisory Ruling stressing the importance of manufacturer repair information. Board member and insurance industry representative
Joseph Coyne voiced concern that adhering to OEM-recommended procedures could have a negative impact on both customers and alternative parts suppliers. Further discussion on the proposal will be held at the ADALB’s December meeting.
Complete video of the October ADALB meeting is available in the Members Only section of aaspma.org.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
NEW ENGLAND’S NEWEST MOPAR DEALER
Hours: M-F: 7am-6pm Sat: 7am-1pm
777 Washington Street • Newton, MA 02160
Call Us For All Your MOPAR Needs or visit us on the web: www.mcgoverncjdrofnewton.com
For First Time Customers, Call me: Mando Bogosian, Wholesale Manager
Hours: M-F: 7am-6pm Sat: 7am-1pm
TOLL FREE: 800-741-7563 DIRECT: 617-454-2990 FAX: 617-467-0006
Call us and get the right MOPAR parts the FIRST TIME! 16 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 17
It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers. Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com
Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com
Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com
Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com
Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com
Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com
Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com
New England Automotive Report
November 2017
17
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 18
[NATIONAL] NEWS by Joel Gausten
TExAS BODY SHOP ORDERED TO PAY $31.5 MILLION IN IMPROPER REPAIR CASE On October 2, the American collision repair industry – and its relationship with auto insurers across the country – changed forever. At the conclusion of easily the most talked-about court case in auto body history, a Texas jury found John Eagle Collision Center in Dallas guilty of negligence in the improper repair of a 2010 Honda Fit that led to permanent injuries for the driver in a subsequent collision. The driver, Matthew Seebachan, and his wife, Marcia, were awarded 75 percent of a $42 million verdict (or $31.5 million) for their ordeal. (The other driver in the accident, Jack Jordan, was found responsible for 25 percent of the $42 million, but he was not involved in the case and is not legally obligated to pay this amount.) Four years ago, the Seebachans were driving their used Honda four days before Christmas when they were struck head-on by a hydroplaning pickup truck. Within moments, the couple’s vehicle was engulfed in flames while they were trapped inside. Although they were miraculously pulled from the car in the nick of time, Matthew suffered fourthdegree burns and Marcia experienced trauma that survives to this day. Following the crash, the Seebachans learned that the car’s previous owner had the roof replaced at John Eagle. This news came as a shock, since the Fit had a clean CARFAX report when they purchased it from the dealership. Worst of all, they were informed that the roof had been replaced using industrial adhesive – not through welding as defined in Honda’s OEM repair procedures. The couple then sued the collision center, arguing that when the roof separated, one of the walls curved enough to puncture the gas tank under the driver’s seat. (A lawsuit against State Farm – the insurer involved in the original repair – was also filed but later withdrawn.) During a July 7 deposition (available in transcript form online via repairerdrivennews.com), plaintiff attorney Todd Tracy took John Eagle Body Shop Director Boyce Willis to task over the repair methods used in the roof repair. Here are some highlights of the exchange: 18 November 2017
Tracy: Do you agree that a certified body shop is required to repair vehicles back to the vehicle manufacturer’s safety specifications? Willis: Yes. Tracy: 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 their repair failure, that the body shop is responsible? Willis: Yes. Tracy: The insurance company cannot trump the OEM specifications, correct, sir? Willis: Yes, they can. Tracy: Where does it say that? Willis: By not paying the bill. Willis also stated, “We’re guided by insurance…If you brought your car into my shop…the insurance company’s going to dictate how we’re going to repair your car.” In late August, the Auto Body Association of Texas hosted Tracy (who also has a background in engineering) for a presentation on the importance of adhering to OEM procedures during the repair process. “What worked three years ago doesn’t work anymore in your industry,” he told the audience, later adding, “Learn to research; research to learn. After you do those two things, then you better document it.” Throughout his talk, Tracy stressed the importance of remaining true to the OEM – not the insurer – in determining
what is most appropriate for the repair. “You guys are on the frontlines of safety. Your dedication to your profession is the difference between someone’s life and death…The insurance profit must never trump your client’s safety. They aren’t experts in the field of vehicle development, design, manufacturing, testing or repairs.” Most significantly, he made it clear that the Seebachan case is just the beginning. “If you don’t think the tsunami of lawsuits has started yet, you don’t know what you’re talking about – because we’re looking.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
In Memoriam: Angelo P. Campanella, Jr.
On September 20, the New England collision repair community said goodbye to one of its strongest allies with the passing of Angelo Peter Campanella Jr. at 58. A collision shop owner since the age of 18, he was the co-owner of Angelo’s Auto Body in Stamford, CT for 40 years. An active I-CAR instructor, he taught students in Connecticut and New York. He was known for his integrity, honesty and kindness, and his efforts in the industry earned respect beyond his home state. Larry Montanez, who served as a consultant for Angelo’s Auto Body alongside the late James Moy, remembers his friend’s commitment to bettering his business and the industry as a whole. “Angelo had a family business and cared about what he did and how he did it. He really wanted to make a difference.” Anthony is survived by his wife, Lisa; their daughter, Brielle Campanella; his daughter, Christel Eye; grandchildren Christopher and Tyler; son, AJ Campanella; mother, Amelia Campanella, brother and business partner, James Campanella; and sisters Susan Discala and Carol Santo. AASP/MA and New England Automotive Report offer the Campanella family our deepest condolences.
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 19
New England Automotive Report
November 2017
19
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 20
20 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 21
New England Automotive Report
November 2017
21
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 22
ASK MIKE [INDUSTRY] ADVICE
Do you have a question for Mike? Contact New England Automotive Report Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.
What is the value of shops attending national industry events?
NEAR: Since you have such a history as a traveler in this industry, what has been the greatest lesson you’ve personally learned through your travels across America on behalf of the collision repair industry?
This month, we ASK MIKE to share his thoughts on the value that can be derived from leaving your shop and traveling to national industry events. We at New England Automotive Report hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.
New England Automotive Report: Obviously, you’re a very nationally focused figure. What is the value of shops attending national industry events?
Mike Anderson: I came into the industry as an adult in November 1985 after I got out of the military, and I have to tell you, I’ve never seen things moving at such lightning speed. Our industry is changing, and it’s all I can do as a consultant to try to stay on top of everything every day; whether it’s things like insurers moving to photo apps and desk audits or OEMs promoting scanning. We also have to worry about the new substrates coming out and the repairability of vehicles. Honestly, I don’t know how a shop can stay current on these things unless they do the following: Attend industry events like SEMA or the NORTHEAST® Automotive Services Show. Subscribe to publications like New England Automotive Report. Take and attend training.
22 November 2017
I think these things are critical for a shop to stay in business, but more importantly, for a shop not to be found liable or get sued for something because of improper repairs. We have to stay tied into the industry. The three things above are great ways to do that. One thing that concerns me is that a lot of people will base their repair decisions on a video they see on YouTube or something they see on Facebook. That may not be the best method. I’m not taking away from YouTube and Facebook posts; there’s a lot of great value in there. But just because somebody puts a video out there or posts it on Facebook doesn’t make it right. The best way to make sure you’re doing things properly is to hear from the experts. Obviously, attending OEM training or something like that is going to get you in the right direction. We have to stay networked and tied in through professional events.
New England Automotive Report
MA: First of all, let’s just say this about traveling: If you don’t have TSA PreCheck, get it immediately! A lot of times, we get to an airport, we’re rushed and there’s a long line. You could miss your flight. TSA PreCheck is something that you can subscribe to that lets you get to the front of all the lines, and you don’t have to take your laptop out or your shoes off. The second thing I would recommend is to check the weight of your suitcase. I see all these people who get to the airport and then realize their suitcase is over the weight limit. I see them trying to take stuff out of one suitcase and fit it in another. If you go to the airport with a 50-pound bag, you’re going to find brochures at a show that you’re going to want to bring home – and that could put you over the weight limit. Pack an extra bag that’s not your suitcase. Additionally, make sure you take plenty of business cards. I see so many people who go to a show and run out of them. Remember to give your business card to everybody you meet. You might be walking the aisle and you’ll see a rep from an OEM. Give them your card and ask them for their card. I see so many people who go to an event and the head of General Motors or somebody from CCC will be there. Part of networking is having access to people
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 23
Wheel Collision Center
Excellence in Wheel Sales and Repair
Patent assures
100% WHEEL INTEGRITY after an event. If that person says they’re out of cards, then just put the contact information in your phone. Another problem is that people collect all these business cards and then get back into their office and put them in a drawer. There are a lot of apps you can download on your phone that will scan a business card and put it in your phone. That way, you have that number permanently. Utilize technology to grow your network and contact list of people you run into at a show.
Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).
• From $75/wheel • Sales/Exchange • Superior Workmanship
• Tested Process • Guaranteed Lifetime Warranty!
NEW 2017
ONLINE OEM WHEEL CATALOG Stocking THOUSANDS of refinished wheels!
7286 Penn Drive, Bath, PA 18014
www.wheelcollision.com
1.800.292.RIMS (7467)
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
New England Automotive Report
November 2017
23
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 24
[COVER] STORY by Kristen Dalli
AASP/MA Executive Director Jillian Bukhenik and President Molly Brodeur urged attendees to support the association’s fundraising initiatives.
FUNDAMENTALS
OF FLAWLESS REPAIR PLANNING: AASP/MA Statewide Meeting Recap On September 20, AASP/MA hosted its Statewide Meeting at the Doubletree Hotel in Westborough. Featuring special guest speaker Rich Altieri (currently of Autobody Management Solutions and formerly with PPG), the presentation was derived from a two-day seminar Altieri created that aims to improve shops’ overall quality, speed and cost. STAYING ACTIVE WITH LEGISLATION The meeting began with a fundraising update from AASP/MA President Molly Brodeur. The association is currently working to raise funds for Co-Chairman Aaron Michelwitz (Joint Committee on Financial Services) and Chairman Tackey Chan (Joint Committee on Consumer Protection and Professional Licensure). Chairman Michelwitz is currently supporting AASP/MA’s Labor Rate Bill, while Chairman Chan is sponsoring the association’s warranty bill as well as legislation that is aiming to add members to the ADALB. “We really appreciate your 24 November 2017
support and continued participation in our efforts to position AASP/MA as a priority before the legislators,” Brodeur said. “Our legislative fundraising goal right now is $3,000 per legislator, and it’s important to note that there is no expected amount—whatever you feel you can contribute to the effort would be greatly appreciated.” “It remains extremely important that we position AASP/MA in front of legislative leaders like Chairman Michelwitz and Chairman Chan, so any little bit will help us build in their fundraising efforts,” added AASP/MA Executive Director Jillian Bukhenik. KEYS TO SUCCESS Structured into four lessons, Altieri’s presentation was designed to send attendees home with tangible ways to effect change in their shops and ultimately better their bottom lines. “In lesson one: We look to answer ‘why?’” Altieri said. “Why do we need quality, speed and cost performance? Why is that critical to our success?” Lesson two explored what shops try to
New England Automotive Report
achieve by changing the way they work on cars, while lesson three approached best practices. The final lesson addressed how attendees could promote progress by leading change efforts at their businesses. QUALITY, SPEED, COST The three words above were the backbone of Altieri’s presentation. Before delving into his flawless repair planning process, he broke down these concepts for audience members. “When I say ‘quality,’ what are you thinking about?” he asked the audience. “Today, quality goes way beyond workmanship. Quality is documentation; it’s relationships with stakeholders, which can be the OEMs, distributors, or insurance companies. “When I ask technicians about speed, they love to tell me how many hours they flagged. Nobody cares about that efficiency; nobody pays for that efficiency. The only thing people care about is the cycle time – how long it takes a care to get through your shop. “With ‘cost,’ I’m not necessarily talking about the cost of parts or the
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 25
cost of labor as much as I’m talking about the cost of waste. You order parts, the parts come in and you deliver them to the tech. The tech has three other jobs going on, so when they start work on the car, they find out the part was wrong or damaged. Now it’s another two or three days. That’s waste. What does that cost?” MEASURING ADDED VALUE AND WASTE To have the most efficient and effective cycle times, Altieri recommends shops do everything possible to increase value and decrease waste. He explained the ways in which average, everyday activities around the shop can create waste, therefore prolonging the cycle time. Altieri defines “value added” as any activity, parts or materials that physically move jobs toward their predamaged condition that customers are willing to pay for. When it comes to waste, Altieri breaks it down to two categories: Essential and non-essential. “In the State of New York [where I’m from], you need to write an estimate. It’s the law,” Altieri stated. “You can’t start fixing a car without an estimate, and the customer has to sign it. That’s waste. It’s essential waste because it’s required by law, but it’s not doing anything to move the car to pre-accident condition.” SEVEN-STEP PROCESS OF FLAWLESS REPAIR PLANNING Step one of Altieri’s process is explaining the repair process to the customer – detailing what the process will look like and what the customer can expect. Step two is customer check-in, where you should review the expected delivery date, keep the customer informed and remind of them of payment options. Step three of the process is vehicle check-in. Altieri explained his red, yellow, green system, in which the repairer maps the car before beginning
work on it. There should be clear markings where red means stop, green means go, and yellow means pause. Altieri also suggests creating a windshield information grid where all the information that’s needed throughout the job is clearly marked on the windshield for easy access. “When is this car supposed to be going out? What’s going on? You can see all that key information on the fly. By marking things visually, you can continually correct them until they become a habit of the company.”
Guest speaker Rich Altieri offered useful tips for shop improvement. Step four is meticulous disassembly. Altieri asked the audience how much a car should be disassembled. The correct answer? “You disassemble the car enough to identify all the damage, and that’s it. People take so much time figuring out how to put it back together, it’s not worth it. Take it down enough to find all the damage, and nothing more,” Altieri shared. Step five is damage analysis. The key here is getting as many eyes on the car at this stage as possible. “We want to identify all the damage. We’ve got a disassembly tech, and [they] might not have the skill to give good advice to the estimator, so we call over the master tech. We call a painter over to see the color and what we’re blending or not blending. Whoever has the skills to identify this
damage, you call them over and have them look at it. If you do this right, then you order the parts right.” Step six is ordering the parts. Altieri recommends going through three rounds of checks with any parts delivery. The first check is the invoice: Is what you have on the invoice there as part of the delivery? The next check is for damage: Open the box and check the part. The third check is a mirror match. Lastly, the final step in the process is a quality verification. Any aspect of the repair process – parts, organization, etc. – that is poor quality, or high quality but doesn’t meet the standards of the repair process should not make it to the next activity or process. MAKING CHANGE COMFORTABLE To wrap up the presentation, Altieri instructed attendees to cross their arms and legs. After sitting like that for some time, he had everyone switch the way their arms and legs were crossed. “What you’re feeling right now is the uncomfortableness of change. Making change is uncomfortable, and it’s the hardest, greatest challenge we have,” Altieri said. “Every improvement requires change. If I’m going to do it better, I’m going to have to do it differently.” In his closing remarks, Altieri urged attendees to rally around AASP/MA, and use it as a tool to improve their experiences in the industry. “If you can use the association,” Altieri concluded, “you can leverage this opportunity of getting your people together and make it about learning.” For more information on upcoming AASP/MA events, please visit aaspma.org.
New England Automotive Report
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
November 2017
25
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 26
26 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 27
Genuine Replacement Parts For the Road Ahead.
Avoid problems down the road that will cost you time, money and customers. Choose Genuine Subaru Replacement Parts, engineered to fit better today, and perform better tomorrow.
For Genuine Subaru Body Parts, contact an Authorized Subaru Dealer. Long Subaru 7 Sutton Rd., Webster, MA 01570 800-982-2298 Fax: 508-879-1212 tschube@longauto.com New England Automotive Report
November 2017
27
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 28
[AASP/MA] FEATURE
inspections and/or calibrations done to avoid improper repair:
YOUR VOICE
IS HEARD: AASP/MA Member-Driven Push Prompts Revised Honda Position Statement by Joel Gausten
This was a strange one. For well over a year now, New England Automotive Report has devoted considerable space to publicizing various OEM position statements on the importance of pre- and post-repair scanning. We have also focused attention on the struggles that many shops have faced when seeking compensation from insurers for performing these critical procedures. Recently, we began receiving calls from readers who voiced concerns over an apparent trend that we never 28 November 2017
could have predicted. In July 2016, American Honda Motor Co. issued a position statement entitled, “Post-Collision Diagnostic Scan and Calibration Requirements for Honda and Acura Vehicles.” In this document (available online at oem1stop.com), the manufacturer clearly states that all vehicles involved in a collision (which is defined in the statement as “damage that exceeds minor outer panel cosmetic distortion”) must have the following minimum diagnostic scans,
New England Automotive Report
• A preliminary diagnostic scan during the repair estimation phase to determine what diagnostic trouble codes (DTCs) may be present so proper repairs may be included. • A post-repair diagnostic scan to confirm that no DTCs remain. (Any repair that requires disconnection of electrical components to perform the repair will also require a post-repair diagnostic scan to confirm if the component is reconnected properly and functioning. Damage that requires body parts replacement will always require a post-repair diagnostic scan.) • Some safety and driver assistive systems will require inspections, calibration and/or aiming after collision or other body repairs. Honda made it a point to ensure that the words “all” and “must” appeared in boldface type, but it somehow appears that even a document as clearly stated as this one can be subject to misinterpretation by insurers. Calls to our offices have indicated that some insurers have been arguing that because “Issued: July 2016” appears at the top right of Honda’s position statement, it only applies to 2016 and newer vehicles. Scratching and shaking your head? So were the repairers who called us about it. “It’s just a letter date-stamp, like if you or I write a letter today addressing it to somebody,” offered AASP/MA Vice President Adam Ioakim, one of the Commonwealth repair pros affected by the trend. “A lot of insurance companies are hiding behind that fact and saying, ‘Oh, because this is dated 2016, it only applies to cars that are 2016 and newer.’ If I’m dealing with that, then so are other shops – especially if the insurers are being this brazen. It’s erroneous, and it needs to be
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 29
completely debunked.” Ioakim was quick to add that one insurer went as far as to send an email to his customer stating that the scanning statement was only for vehicles from 2016 and after – and that the shop didn’t know what it was doing by insisting that it should still be performed on a vehicle with a model year that didn’t fit within this strict timeframe. “My customer called me up, yelling at me and saying that I was trying to bamboozle and swindle him.” Obviously, this is a scenario that no professional auto body shop should have to face when adhering to an OEM’s recommended repair procedures. With news of such an odd occurrence hitting our desks, we went straight to American Honda Motor Co. for its official stance on the “only 2016 and newer” argument. Not surprisingly, New England Automotive Report’s inquiry quickly ignited a discussion within Honda, whose research confirmed that other shops beyond those who contacted us were facing the exact same issue. As a result of our outreach efforts following direct feedback from our readers, Honda is in the process of revising their position statement on scanning to include language that specifically indicates that the document applies to any model-year Honda and Acura vehicle that is capable of being scanned. This includes all 1996-to-current model years, certain 1994-1995 model year vehicles that contain 16-pin OBD II connectors and certain 1992-1995 model-year vehicles that contain three-pin diagnostic connectors. The manufacturer plans to officially release and distribute the revised document as soon as possible. “That should take the rest of the ambiguity out of it, I hope!” remarks Scott Kaboos, Honda’s assistant manager of collision marketing. “Our position statements are probably [our]
most prevalent ways of communicating with the collision industry as a whole – not just the repairers, but also the insurers. We understand who our core audience is when we write these things. These are the people who are going to be reading this, and we need them to understand, first of all, what needs to be done on our cars and why.” Although scanning has become a huge topic in the industry in recent times, Honda has been offering recommendations on the matter in its repair procedures for the past 25 years. “Between ’92 and ’95, we had a three-pin diagnostic connector that allowed scanning and testing of the major systems in the vehicle,” Kaboos
Insurance companies misinterpreting OEM material should not be a reason for us not to do our due diligence. explains. “In ’94 to ’95, some of our vehicles went to the current 16-pin OBD II; by 1996, all of our models were equipped with the OBD II connector, which is current until today.” In 2004, Honda entered the realm of issuing collision-related statements on scanning when they began stressing the importance of recalibrations for the occupant classification sensors in the passenger seats in its vehicles (including the Accord) after a collision. The company’s view on pre- and postrepair scanning has remained unwavering ever since. As Kaboos says, “It’s got to be done; if you’re not doing it, you’re missing information. The lights on the dash will only turn on for a small fraction of the codes that are being held inside those computer systems. They’ve got to be cleared out; you’ve got to make sure the repairs are done properly so that they can be cleared
out. There’s no way to know that unless you post-[repair] scan at the end.” For insurers reading this story who might be considering scanning statements on a “case-by-case” basis, the following quote from Kaboos will hopefully prove to be illuminating. “Our millimeter wave radar on the front for our adaptive cruise system requires a specialized calibration. You have to use the iHDS [Honda diagnostic system] software to do it, and you have to use a target system to do it. If something like that were left…Let’s say it’s bent [on an angle] or not positioned in the right direction, and the driver of the vehicle was used to that system working properly. They set the cruise on the highway, pull up behind a vehicle and it slows down for them and keeps them from getting too close to the vehicle in front of them. If they pick that up from a body shop and don’t realize that it’s not working properly, there’s really not anything on the dash that’s going to tell them that it’s aimed wrong…In that instance, they could be driving down the road thinking that their cruise control’s going to slow them down when they pulled up behind that semi that’s going slow, and the car won’t do anything because it doesn’t see the semi. I don’t know of a personal instance where that’s happened yet, but the potential for it exists.” With technology in the automotive industry often changing at a mind-boggling pace, Kaboos is one of many who believes there is simply no time left to waste on a debate between a shop and an insurer over the date of a position statement. “I think there’s a lot of misinformation in our industry as a whole. We’ve taken things that we learned 20 years ago from different sources – I-CAR, ASE, trade publications, whatever it may be – and assumed that it applies to every model year after that. With so many
New England Automotive Report
November 2017
29
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 30
[AASP/MA] FEATURE changes coming in our body structure, ADAS [advanced driver assist systems], telecommunications and everything on our vehicles, what you knew about a car even five years ago probably doesn’t apply to fixing today’s car. I know that’s a hard thing for people to understand, but looking up the repair procedures for the year, make and model that you’re working on today is so important.” In addition to urging shops to
research Honda’s official repair procedures, Kaboos urges them to utilize the I-CAR Repairability Technical Support Portal (rts.i-car.com) as a resource for information. (“It’s not complete yet, but it’s helping the industry,” he observes.) Pleased by Honda’s response and action regarding the issue, AASP/MA President Molly Brodeur is confident that the revised statement will help clear the air regarding the critical nature
of OEM-recommended procedures. “As repairers, we rely on OEM information to ensure vehicles are repaired properly. Scanning is a critical part of that process, and the fact that insurers are manipulating OEM documents through interpretation to their benefit rather than their insured’s is reprehensible. Information like this from our members is paramount for AASP/MA and our partners, such as New England Automotive Report, to be able to expose and rectify these scenarios that present themselves daily in shops across the Commonwealth.” With Honda’s new statement poised to alleviate one of the biggest headaches Ioakim’s had on the shop floor, he encourages other AASP/MA members to speak out when they are being prevented from following what the OEMs say. “We need to be diligent when we encounter issues like this. The association and our magazine are key resources. Insurance companies misinterpreting OEM material should not be a reason for us not to do our due diligence. It’s our liability; therefore, it’s our responsibility to follow through when things challenge our ability to perform safe and proper repairs.” With the verdict of the John Eagle case weighing heavily on the industry’s mind (see page 18), the OEMs’ influence on the collision repair process is more relevant than ever. This discussion isn’t about an insurer being reluctant to pay a shop to perform a necessary procedure; this is about all parties doing the right thing to ensure their mutual customers receive a repair that will keep them alive behind the wheel. With that in mind, we’ll give the last word to Scott Kaboos. “Can you really live with yourself knowing that you skipped a procedure because an insurance company pushed back and said they weren’t going to pay for it, and it ended up costing someone their life? I can’t do that.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
30 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 31
New England Automotive Report
November 2017
31
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 32
32 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 33
Unsurpassed Quality. Genuine Hyundai Parts. HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE. SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS. TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR A HYUNDAI WHOLESALE PARTS SPECIALIST.
Buy Hyundai Parts.
For Genuine Hyundai parts, contact an Authorized Hyundai Dealer. HERB CHAMBERS HYUNDAI 735 Southbridge Street Auburn, MA 01501 TOLL FREE: 800-767-1898 FAX: 508-832-6026 EMAIL: pobrien@herbchambers.com www.herbchambershyundaiofauburn.com
New England Automotive Report
November 2017
33
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 34
[NATIONAL] FEATURE by Tom Slear
ARE AUTONOMOUS CARS A REAL THREAT TO THE INDUSTRY?
Part 2 of a 2-Part Series:
DAY OF RECkONING Hod Lipson, an engineering professor at Columbia University in New York City, co-wrote the book, Driverless: Intelligent Cars and the Road Ahead, that came out last year. It’s a thorough and enjoyable read that covers autonomous vehicles from their crudest forms 100 years ago to their current renditions that are nearly roadworthy. Throughout the book, Lipson also does a good bit of predicting, and what he had to say about the collision repair industry wasn’t hopeful. “The body shop, where people fix cars after collisions that’s going away,” he told Columbia Magazine. No doubt that vehicles driven by software instead of humans will transform the auto body industry (as well as the car manufacturing and insurance industries), but to say body shops will disappear is a hefty stretch. Lipson conceded as much when asked to expand on his doomsday quote. As the number of accidents decrease with the advent of autonomous vehicles, he said via email, “Certain industry sectors, like body repair and auto insurance, will experience a decline.” Whew! Good to know a few shops will still be around in the coming years. COULD PAST BE PROLOGUE? In fact, the rate of accidents has been decreasing for decades. According to the Insurance Information Institute, in 1963 there were 7.92 accident claims per 100 vehicles. By 2013, that frequency had dropped 55 percent to 3.55 claims per 100 vehicles. Both the severity of claims and the increase in total numbers of cars on US highways—up from around 80 million in the early 1960s to over 200 million today—are the cause of the apparent death toll for the collision industry. What cost $183 per automotive claim in 1963 jumped to $3,231 in 2013, a whopping leap that far outpaced inflation. Could it be that past is prologue as it relates to autonomous vehicles and the collision industry? 34 November 2017
New England Automotive Report
Collision shop manager Bill Hawkins (BMW of Annapolis) thinks so. As he says, “We’ll still have teenagers with cell phones in non-autonomous vehicles.” True enough, at least for the foreseeable future. Though systems such as autonomous cruise control are in cars today, they are only the third step in a series of six in the march to full autonomy (see sidebar on facing page). Cars that can drive themselves in just about any conditions – and in the process significantly reduce accident frequency – won’t populate roads in any noticeable numbers for another 10 or 15 years. Furthermore, enhanced complexity has been the history of automotive development. Hawkins recently had a 1971 BMW in his shop for inspection. A look under the hood startled him. He could have dropped a stone from nearly anywhere above the engine and it would have fallen unhindered to the ground. “Try that with recent cars,” he says. “Never happens.” In high and fully autonomous cars, just the wiring and boards to support digital maps, digital cameras, radar, light detection and ranging (LIDAR), GPS, ultrasonic sensors and inertial measurement units won’t allow even a pin to pass through. But will the price of repairs continue to rise into the era when driving becomes hands and feet free? “The trend of auto body repair costs has always been higher than inflation and there is nothing technology is doing that would promise to lower that,” says James Lynch, chief actuary for the Insurance Information Institute. “The average cost of repair will continue to go up.” Joe Schneider, managing director at KPMG’s autonomous vehicle and auto insurance task force, agrees with Lynch up to a point. As cars become overwhelmingly electronic – “supercomputers on wheels,” he says – they will follow the historical trend of electronic innovation, which has been: better, smaller and cheaper. By 2050, Schneider believes the cost of claims and associated expenses could drop by as much as 63 percent. Meanwhile, roads will fill with more and more driverless cars, which is to say, vehicles that don’t drive distracted, are always sober and are free of emotion. The number of accidents could decrease by 80 percent or more, and the total number of cars will likely shrink with the emergence of on-demand fleets of autonomous cars. “That could be a game changer,” Schneider says, “and could also be the end of the two-car household.” FUZZY FUTURE Lynch and Schneider are looking into crystal balls and seeing two very different endings, which is no surprise. Crystal balls have a habit of turning cloudy the farther they glimpse into the future. Over the next 20 to 30 years, numerous variables could enter the equation and alter the
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 35
outcomes. In the next 10 years will federal and state regulators, either by design or bureaucratic inertia, slow down the timetable that has autonomous vehicles on roads for other than test purposes? Will car owners cling to driving more adamantly than car manufacturers and software providers believe? Will that segment of artificial intelligence called deep learning progress so that the software controlling cars can process input from dozens of sensors and come up with situational awareness on a level that humans can? And most important for collision shops: How will the issue of liability play out when vehicles are not controlled by drivers? When an autonomous Toyota meets up with an autonomous Ford, who will pay for the repair? A strong possibility is that car manufacturers will absorb the liability of their autonomous vehicles. Volvo, Mercedes and Google have already said as much. Insurance will be part of the sale; if the car’s software perceives the dark spot ahead as a shadow instead of another car and results in a crash, the manufacturer will pay for the repairs. Since manufacturers will be liable for the car’s performance once it’s back on the road, they will undoubtedly want to have a lot of say over where and how the car is repaired. One thought is that manufacturers will absorb collision shops, thereby ensuring close supervision of all repairs. That’s possible though not likely. Manufacturers’ core business is building and marketing cars. They won’t want to own shops any more than insurance companies do. A more probable scenario will have repairs taking place at shops certified by the manufacturers as a condition for a warranty to continue after an accident. “I don’t think this will be just because of autonomous vehicles,” says Aaron Clark, vice president of Assured Performance Network in Laguna Hills, CA. “Vehicle technology in general has caused car manufacturers to become more and more concerned about having cars fixed at shops that have the proper tools and equipment, have technicians with the proper training and follow proper repair procedures.” TRAINING, TRAINING, TRAINING Clark envisions a system where not only the shop is certified annually by the manufacturer, but each repair is documented in copious detail. A technician with proper training specifies approved repair procedures, equipment and parts used. If the repair is questioned after a subsequent accident, the manufacturer can rely on the shop to provide proof that will stand up in court. “It’s all about training,” says Charlie Bryant, AASP/NJ executive director. “A guy who is simply good with his hands and not good with his brain – he won’t touch these cars. He’ll have to go to school or find something else to do.” “The investment in training to repair (autonomous cars) will be far beyond what’s needed to repair cars now,” says Rick Starbard, owner of Rick’s Auto Collision in Revere, MA. “Body shops will look more like labs. I think we will see a major shaking out of the industry along the way.” The days of the generalist will likely end. Shops will have to choose which make of cars to repair and then invest in appropriate training and equipment. There could be tiers among certified shops. A shop that has a particular set of equipment (as well as technicians) with certain training will be able to accept some models of Honda, for example, but not others. continued on page 54
SAE International has developed the industry standard for autonomous vehicles which consists of six levels: Level 0 – No Automation
Level 1 – Driver Assistance, such as adaptive cruise control, which many cars have now.
Level 2 – Partial Automation, such as controlling speed and steering simultaneously. “Tesla, Audi and Mercedes have Level Two now,” says John Nielsen, AAA’s managing director of automotive engineering and repair. “They help you drive, but you must keep your hands on the wheel.”
Level 3 – Conditional Automation, where all facets of driving are autonomous, but if the controlling software detects a problem, it will signal for the driver take control. “This is not real viable,” Nielsen says. “It might take 30 seconds for the driver to re-engage after the car recognizes a problem that’s only a few seconds out.” Citing the inherent dangers of such a handoff, Ford has already said it will skip this level. Other manufacturers are likely to follow.
Level 4 – High Automation, no driver needed. The current gold standard for manufacturers. The controlling system can manage all driving tasks. Despite the pervasive automation, these vehicles will be equipped with steering wheels and brake pedals and gas pedals. Level Four vehicles will start appearing on US highways within the next five to 10 years, initially as part of fleet transportation providers in urban areas. (Think Uber or Lyft without the drivers.)
Level 5 – Full Automation – no human controls. When Level Five autonomous vehicles will be ready for consumers is tough to say. Some estimates say 10 years, others go as far out as 2040 and still others say maybe, well… “I don’t see myself in a fully autonomous car,” says SCRS Executive Director Aaron Schulenburg. “And I’m not sure individuals will own autonomous cars, at least not in my lifetime.” New England Automotive Report
November 2017
35
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 36
36 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 37
New England Automotive Report
November 2017
37
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 38
38 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 39
Contact these Ford or Lincoln Mercury dealers for all your parts needs:
IMPERIAL FORD 6 UXBRIDGE ROAD MENDON, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 E-mail: johnl@imperialcars.com First Time Customers call John
© 2017, Ford Motor Company
SARAT FORD LINCOLN MERCURY 245 SPRINGFIELD ST. AGAWAM, MA 01001 413-786-0430 FAX:413-789-3715 www.saratford.com
SENTRY FORD LINCOLN 4100 MYSTIC VALLEY PARKWAY MEDFORD, MA 02155 PARTS: 617-506-6309 FAX: 781-874-9934 E-mail: pnewell@sentryautogroup.com
New England Automotive Report
November 2017
39
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 40
[TECHNICAL] FEATURE By Larry Montanez III, CDA
Photo courtesy of prnewswire.com
O
ctober 2, 2017 is a day that will live in infamy in the collision repair industry. It was on this date that a Texas jury found John Eagle Collision Center in Dallas, TX liable for a self-created bonding procedure for the installation of a 2010 Honda Fit roof panel that was determined to be an incorrect repair. The jury also decided that John Eagle was liable for 75 percent of the damages sustained in an accident this vehicle endured, and it awarded the plaintiff couple who was trapped inside the burning car $31.5 million. For much of the industry, this was not only shocking, but also a wake-up call for shop owners to realize how their liability can be exposed if they do not follow the recommended OEM repair procedures. As Erica Eversman (collision industry expert attorney), Kristen Felder and I have been saying for years (and we again reiterated on the Collision Hub Repair University Live show, “The Brewing Legal Storm,” presented by BASF and available on YouTube), the OEM recommended procedures are requirements. The jurors believed that an OEM’s “recommended procedure” meant the shop must fix the vehicle that way or “they assume full liability.” This should make you pause and
40 November 2017
New England Automotive Report
take notice, especially if you have been misled or misinformed about this, as people’s lives are at stake. In our opinion, this is going to get worse, as plaintiff attorney Todd Tracy will likely go after more cases involving poorly repaired vehicles. As he makes case law, more attorneys will follow his lead. We also need to realize the amount of poorly repaired vehicles posted on social media every day. Many collision repair facilities and former industry personnel are performing post-repair inspections (PRIs) on a daily basis. A small percentage of these incorrect repairs are uncovered by another auto body facility observing issues after an unrelated subsequent collision repair. Another percentage of these incidents come from a vehicle owner noticing an issue such as, but not limited to: A color mismatch, a drivability issue, a leak, an issue with closure panel operation, etc. Then the vehicle owner brings the vehicle to a different shop than the one that performed the repairs, and these problems are discovered. A very small percentage of incorrect repairs are associated with a collision event in which there is a significant injury (or death), such as we saw in the Texas case. Conversely, a large percentage of incorrect repairs that
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 41
result in PRIs start off as diminished value (DV) cases. Generally, during the initial steps of the DV, incorrect repairs are discovered and the job becomes a PRI. Sometimes the incorrectly repaired vehicle is purchased from the vehicle owner by the liable insurer; this practice is generally associated with a direct repair program (DRP). Other times, the facility who performed the incorrect repair will purchase the vehicle, and this can be associated with a DRP repair facility or an independent repair facility. In some rare cases, the insurer facility or the facility’s garagekeepers insurance company exercises their option to defend the case in a court of law. The following is an example of an incorrectly repaired vehicle involved in a court case; I was retained as an expert during the proceedings. 2012 NISSAN MAxIMA In 2014, the vehicle was impacted in the rear and forced into another vehicle in front. The vehicle sustained damage to the rear bumper assembly, rear body panel, front bumper fascia, left and right headlamp assemblies and radiator core support. The insurer to the third party at fault suggested the vehicle owner take the vehicle to a DRP facility, and the vehicle owner agreed. The repair facility replaced the rear bumper fascia, rear bumper reinforcement, rear body panel, front bumper fascia, left and right headlamp assemblies and the composite radiator core support. The vehicle was inspected for DV, but during the inspection, there were multiple unacceptable panel gaps and misaligned components observed. The engineering company (Lange Technical Services) I work for was called in for a forensic examination of the vehicle. This process revealed the following issues: VISUAL ExAMINATION 1. The front bumper fascia-to-hood panel gaps were excessively positive. The front fascia was not attached properly and moved up and down as the vehicle was operated, or it would move by just applying upward force by hand. 2. The left and right headlamps to front bumper fascia panel gaps at the undersides of the headlamps were excessively positive. 3. Both high and low air conditioning lines were missing. 4. The left and right tail lamps to left and right quarter panel gaps were not consistent. 5. The trunk lid did not open smoothly when unlatched. 6. The seam sealer to the rear area of the trunk floor to the backside of the rear body panel was inconsistent. The color to the backside of the rear body panel and rear portion of the trunk floor mismatched the adjacent areas in the rear trunk storage compartment area. The particle (cardboard-type) spare tire cover was fractured. Two trunk trim panel clips were missing and one was fractured, and a portion was separated and missing. There was seam sealer applied to the outside mating flanges of the rear body panel where the plug welds or resistance spot welds would be placed to join the panels.
FORENSIC ExAMINATION The client attorney gave us permission to destructively test the vehicle by removing components and the sealer. The following is what was discovered: 1. The front bumper underside retainer clips were removed. We observed the clips were loose in their mountings, and evidence uncovered indicated the clips were reused. 2. Twelve inches of the sealer covering the gap between the rear floor pan and inside of the rear body panel was removed. After removal of the sealer, we observed a black substance between the panels. The black material was sticky and residue transferred to my finger upon touching the material. Removal of the seam sealer on the outside mating flange, in the same area of the sealer removed from the inside, revealed no indications of resistance welds or plug welds. We placed a flat-bladed gasket scraper between the backside of the rear body panel and rear floor pan gap where the black material was observed. We applied downward force by hand, and the scraper easily breached the black material. We continued to breach the material along the 12-inch span with little resistance. Black residue transferred onto the scraper. In the area where the scraper was placed, the panels were separated and there were no indications of welds. From the outside, I placed my hand and applied outward force. The rear body panel started to separate from the rear floor panel with almost no resistance. We continued with both hands until the panel completely separated from the rear floor pan and both lower areas of the rear quarter panels. The vehicle was determined to be in a condition unsafe to operate, and the vehicle owner retained a rental vehicle.
COURT CASE AND TESTIMONY Michael Anderson (Collision Advice) and I were plaintiff expert witnesses. Anderson testified about the estimate, final invoice and charges that showed evidence to indicate the repair processes and operation performed by the facility. I testified on the issues uncovered during the examination and testing that showed evidence to prove the incorrect repair attempts. The facility decided to bond the repair body panel on. During testimony, using the Nissan Body Repair Manual, we were able to show evidence for the following incorrect procedures: New England Automotive Report
November 2017
41
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 42
[TECHNICAL] FEATURE 1. The front bumper fascia was loose due to the reuse of the retaining clips. This also caused the excessively positive panel gaps of the front bumper fascia to the adjacent components. This was not a major safety issue. 2. The missing caps for the air conditioning high and low lines were due to carelessness by the technician. This was not a major issue. 3. The misalignment of the left and right tail lamps was due to incorrect repairs attempted to the left and right tail lamp panels. This is a concern if the vehicle was involved in a subsequent rear collision, where the displaced panels could cause the collision energy to travel in a manner not designed into the vehicle. 4. The repair procedures call for approximately 71 plug welds or squeeze-type resistance welds. Evidence uncovered indicated none were performed. Examination of the adhesive bonding material showed evidence to indicate the material was not applied properly or the material was expired. This is a major concern if the vehicle was involved in a subsequent rear collision where the adhesive joining method would fail as the force was applied. As such, the collision energy would transfer to adjacent components in a manner not designed into the vehicle and could cause injuries to the occupants. 5. The repair facility’s only defense was that their technicians learned how to adhesively bond panels in the I-CAR ADH01 class. Unfortunately, the shop didn’t pay attention to the lessons on expiration dates and panel preparation.
42 November 2017
New England Automotive Report
VERDICT The jury deliberated for eight hours. The original repair was approximately $4,700. The jury decision was in favor of the plaintiff for approximately $22,000. The decision included treble damages for consumer fraud, rental vehicle, loss of use and court fees. The jury said that the shop was liable due to incompetency and refusal to follow the OEM repair procedures. Next month, I will share more stories from some of the legal cases (and poor repairs) I have experienced. I hope this Nissan story has raised some questions for you to find the answers to some myths and that misinformation was clarified. Above all, I hope I have convinced you to do some research and contact your attorney for a consultation. As always, please feel free to contact me if you have any questions. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM collision repair programs. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 43
GENUINE NISSAN PARTS
MAKE ALL THE DIFFERENCE.
Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts. Contact these Nissan dealers for all your parts needs: Kelly Nissan of Beverly 420 Cabot Street (Route 1A) Beverly, MA 01915 Direct: 978-921-0146 Fax: 978-927-6823
Mastria Nissan 1305 New State Highway Raynham, MA 02767 Direct Toll Free: 800-248-2458 Direct Fax: 508-802-6118 E-mail: parts@mastrianissan.com Web: www.mastria.com
Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940 Toll Free: 1-800-698-9280 Fax: 781-598-8026 E-mail: BSherman@Kellyauto.com
Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: jon.martins@kellyauto.com
www.kellyauto.com
New England Automotive Report
November 2017
43
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 44
44 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 45
New England Automotive Report
November 2017
45
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 46
[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
THE TOTAL LOSS PROCESS
Recently, I have been receiving reports of certain insurers trying to lowball their insureds when declaring damaged vehicles to be total losses. Shop owners reporting this have not only been dealing with the loss of repair jobs, but also with customers who are unhappy with what their insurers are offering them for their damaged cars. Further, neither the shops nor their customers seem to know what the process is for an insurer to be able to declare a vehicle to be a total loss. WhAT IS A “TOTAL LOSS”? It is generally accepted that a total loss occurs when the cost of repair of a damaged vehicle, plus its salvage value, exceeds its actual cash value (ACV). Yet, there is no Massachusetts statute or regulation that says this. In fact, on a first-party (collision, limited collision or comprehensive) loss, the insurer paying the claim appears to have absolute discretion as to when or if to declare a damaged car a total loss. This has been the long-standing position of the Division of Insurance. Moreover, the current standard Massachusetts private passenger auto policy - the contract between an insurer and its insured – says, “We will, at our option, repair the auto, repair or replace any of its parts, or declare the auto to be a total loss.” At first blush, it seems that on first-party claims, there is no process for a damaged car to be declared a total loss. It is a total loss whenever the insurer says that it is. 46 November 2017
New England Automotive Report
BUT WAIT A MINUTE… Despite it being the insurer’s decision as to when a car is deemed a total loss, there are limits that apply - practical limits, regulatory limits and contractual limits. First, it must be recognized that insurers have a financial interest in not overpaying for a loss. If a car has minimal damage, then ordinarily it would be more costeffective for the insurer to pay for the repairs rather than declaring the vehicle a total loss and paying the insured the full actual cash value of the car. Insurers, like all businesses, seek to maximize their profits; if they are overpaying for claims, then they are not attaining this goal. Second, Commonwealth Automobile Reinsurers (CAR), an organization that oversees the assigned risk pool for Massachusetts auto insurance, has rules that mandate that its participating insurers not overpay claims, including not paying for the total loss of a vehicle when it is less expensive to repair it. While CAR was created to oversee a pool of high-risk insureds who get assigned to participating insurers, almost all insurers in the state are participants. The rules for settling assigned risk claims are required to be applied in a non-discriminatory manner so that claims for customers whose carriers voluntarily insure them have to be treated the same way as assigned risks. Third, with regard to first-party losses, the standard Massachusetts auto policy states, “The most we will pay will be either the actual cash value of the auto or the cost to repair the auto, whichever is less.” So the insurance contract itself requires the insurer to pay the lesser of the cost of repair or the ACV. Fourth, an insurer is required, both by regulation and by the insurance policy, to use specific factors in determining the ACV of a damaged vehicle. As stated in the standard policy reflecting the regulation: Whenever the appraised cost of repair of an auto plus the probable salvage value of the auto may be reasonably expected to exceed the actual cash value of the auto, we shall determine the auto’s actual cash value. Our decision shall be based on a consideration of all of the following factors: 1) The retail book value for an auto of like kind and quality, but for the damage incurred; 2) The price paid for the auto plus the value of prior improvements to the auto at the time of the accident, less appropriate depreciation; 3) The decrease in value of the auto resulting from prior unrelated damage which is detected by the appraiser; and 4) The actual cost of purchase of an available auto of like kind and quality but for the damaged sustained.
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 47
New England Automotive Report
November 2017
47
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 48
[LEGAL] PERSPECTIVE If an insurer uses a different standard to determine ACV, or if it considers only one or two of the listed factors, then it is in violation of both the insurance policy and of the governing regulation. hOW DOES COST OF REPAIR PLUS SALVAGE VALUE COME INTO ThE PICTURE? Not only does the governing regulation and the policy require an insurer to determine the ACV of a damaged vehicle if the appraised cost of repair (plus probable salvage value) is expected to exceed the ACV, another section of the Massachusetts auto policy says, “If we pay for the total loss of your auto, we have the right, if we so choose, to take title to that auto.” This is really the crux of why salvage value must be considered. In analyzing whether it makes economic sense to pay for repair or to pay the ACV, an insurer must look at what it is going to be able to do with the damaged vehicle if it takes title to it. Is it going to make out better financially if it pays for the cost of repairs, or if it pays the ACV but can sell the damaged vehicle and recover the car’s salvage value? In other words, the insurer has to ask: Does the cost of repair plus salvage value exceed the ACV?
Despite it being the insurer’s decision as to when a car is deemed a total loss, there are limits that apply - practical limits, regulatory limits and contractual limits. CAN AN INSURED OR A ShOP CONTEST AN INSURER’S DECISION ON WhEThER TO TOTAL A CAR? While an insurer may have final say as to whether to declare a car to be a total loss, an insured can challenge both the insurer’s determination of ACV and of salvage value as well as the insurer’s determination of cost of repair. The challenge can be informal or can follow a legal process. Informally, in addition to the insured’s repair shop trying to negotiate a different cost of repair, the insured or their representative can use the same standards as set out in the regulation and the policy to try to negotiate a different ACV. As an example, an insured may be able to successfully challenge the insurer’s determination of ACV if the insurer is using a quoted price for a similar vehicle but the comparable vehicle is in East Oshkosh. However, the insured can show that all similar vehicles available 48 November 2017
New England Automotive Report
locally are priced higher. Similarly, the insured may be able to establish that improvements made to the vehicle have significantly increased its value, or that the vehicle that an insurer is using for comparison is not truly comparable. To challenge salvage value, the insured can challenge the insurer to come up with legitimate salvage bids for the vehicle. By regulation, if an insurer declares a vehicle to be a total loss, then it must file a total loss report. If the insured is to then keep the vehicle, the insurer must obtain two salvage bids for the car, and the salvage value is assumed to be the average of the two bids. Similarly, an insured may seek their own salvage bids to disprove the accuracy of the insurer’s determination of that value. If informal negotiation does not work, the insured may invoke the “appraisal” clause of the insurance policy, naming an independent appraiser to assess the ACV and requiring the insurer to do the same, with the two appraisers then naming a disinterested referee. A decision by any two of the three determines the ACV. Alternatively, an insured can sue the insurer in court if they believe that they are not getting paid enough on a total loss. The lawsuit can be brought in small claims court if the amount owed is less than $7,000. An insured may not be prevented from suing even if they have accepted a check from their insurer and cashed it. They cannot, however, indicate to the insurer that they are accepting its determination of value. Even further, if an insured wants to keep a damaged car that the insurer thinks is totaled, the insured can attempt to have the insurer agree to pay for a contract repair as allowed by regulation. To do so, however, the insurer must agree to it (including letting the insured keep the car); the insured must have a repair shop that is willing to repair the car for a guaranteed contract price (with no supplements); payment cannot be made by the insurer until the agreed upon repairs are made; and the insured must then apply for a salvage title after the repairs are complete. CONCLUSION It is true that the Massachusetts auto insurance policy appears to give insurers absolute authority as to whether to declare a damage vehicle to be a total loss. However, be aware that there are actually significant limits on this authority, and that there are also ways to challenge an insurer’s determination. 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.
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 49
WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it. You want the best part for a Toyota, but you’ve got to know when and how much. Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”
ToyotaPartsAndService.com
©2014 Toyota Motor Sales, U.S.A., Inc.
For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Copeland Toyota 970 West Chestnut Street Brockton, MA 02301 Toll Free: 800-856-1172 Fax: 508-559-9264
wholesaleparts@copelandtoyota.com www.copelandtoyota.com/wholesaleparts
Prime Toyota of Boston 1605 VFW Parkway West Roxbury, MA 02132 PH: 617-469-1022 Fax: 617-469-8987 www.driveprime.com kmcisaac@driveprime.com
IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419
Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481
stirrell@iramotorgroup.com www.iramotorgroup.com
parts@wellesleytoyota.com www.wellesleytoyota.com
IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098
Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895 www.bernarditoyota.com
www.iramotorgroup.com
New England Automotive Report
November 2017
49
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 50
[NEWS FROM]
Polyvance’s New Nitrogen Welder Lineup
Polyvance is announcing a major overhaul of its Nitro Fuzer line of nitrogen plastic welders, which will now include a fully functional, entry-level product, the 6085. Its two existing models, the 6085-C and the 6080-CG, will now include a free bumper workstation. Polyvance’s revised product line now offers an option for every budget. Welding with nitrogen gas creates the strongest welds possible because it eliminates oxidation of the plastic during the welding process. Think of it like TIG welding for plastic – no oxidation, no burning, no contamination. The hot nitrogen gas melts the plastic cleanly for optimal fusion. Nitrogen plastic welding is the latest technology for repairing all sorts of automotive plastics like bumper covers, headlight tabs, fenders and underhood plastics. Shops all over North America have discovered the advantages of doing their own plastic repairs - faster cycle time, higher gross profit and lower severity, among many others. The Polyvance Nitro Fuzer line of welders offer an option to every shop and every budget. The new entry-level 6085 is the nitrogen welder with a nitrogen bottle regulator, so it’s ready to be used straight out of the box. The 6085 does not include the MIG cart, so it’s ideal for placement on a bumper workbench – or it can be mounted on any commonly available MIG cart. The MSRP for this unit is $2,995. The mid-level 6085-C includes the 6085 welder and is mounted on Polyvance’s made-in-USA heavy-duty MIG cart. It includes a full selection of plastic welding rod, a starter roll of aluminum tape and a hand seamer tool. It now includes a 6075 Bumper Mate 2 workstation for the same price of $3,995. The top-of-the-line offering, the 6080-CG, has a nitrogen generator, so it eliminates the need for nitrogen bottles. It now includes a bunch of new components, including the Bumper Mate workstation, a cart cover, the 6146 Bumper Pliers Kit, two carbide cutting burrs and the 6066-TA nitrogen tire filling adapter kit. This system has a new lower MSRP of $5,995.
[NEWS FROM]
Accudraft Announces Service Department Changes to Better Serve Customers
The Accudraft team is happy to announce new and improved changes to the way they do business. Under the guidance of new Service Manager Bill Simon, the service department has successfully doubled in size to meet the growing demands of their customers. Accudraft’s talented team of technicians has experience working with all types of paint booths. Regardless of make and model, Accudraft’s service team guarantees a thorough inspection and 16-point tune-up service that optimizes the efficiency and effectiveness of the spray booth. The mission of Accudraft’s upgraded service department is to ensure that every business has a spray booth that is running at maximum efficiency. Technicians can perform installations and 50 November 2017
New England Automotive Report
Every Nitro Fuzer features digital encoders to precisely control the temperature of the nitrogen and airless welders. They also feature hassle-free, automatic switching to nitrogen gas flow, eliminating waste of bottled nitrogen gas. Precision regulators combined with an analog flow gauge gives the technician ultimate control over how much gas is used in the welding process. Finally, a low-pressure safety switch prevents the heating element from overheating if the gas flow drops too low. All of these features add up to a machine that’s both versatile and easy to use. Polyvance, the pioneer in automotive plastic repair since 1981, was the first company to commercialize nitrogen plastic welding in 2006. To this date, Polyvance has delivered more nitrogen plastic welders and trained more technicians in their use than all other companies in the industry combined. To make sure your technicians are productive right away, every new Polyvance Nitro Fuzer welder includes free courtesy training from a Polyvance-trained instructor. Polyvance also offers paid follow-on training that is approved as part of the I-CAR Industry Training Alliance program. MASSACHUSETTS
BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
upgrades as well as set up and add components like the EnergySmart VFD control system, the SmartPad control panel and various other add-ons for paint booths and work areas. Accudraft’s qualified technicians will even assist with changing out filters and assessing any electrical components in the paint booth and prep stations. Accudraft has set up an emergency hotline that prioritizes companies that are having serious issues with their paint booths. To make an appointment for emergency repair, call (800) 5240340 and speak with one of Accudraft’s customer service representatives. Accudraft prides itself on being one of the industry’s leaders in spray booth technology. Regardless of whether you need a small paint booth for your body shop or a multi-level spray booth large enough to paint cranes and railcars, Accudraft has the equipment to take care of all your professional needs, and we promise unbeatable customer service and efficiency so that businesses maintain a steady workflow without sacrificing quality. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 51
Audi dealers strive to make you an Audi Genuine Parts fan •
Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.
•
Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.
•
Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.
•
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.
Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841
IRA Audi 105 Andover Street Danvers, MA 01923 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.iraaudi.com
Audi Shrewsbury 780 Boston Turnpike Shrewsbury, MA 01545 508.581.5880 Fax: 508.581.5880 email: parts@wagnermotors.com www.audishrewsbury.com
Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com
Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com
Audi Cape Cod 25 Falmouth Road (at the Hyannis Airport Rotary) Hyannis, MA 02601 PH: 508.815.5600 FAX: 508.568.9410 www.audicapecod.com
New England Automotive Report
November 2017
51
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 52
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
Will sell for $150 or best offer
Two Pro Spot welders
One is new and usable; second can be used for spare parts
$1,200
Location: Manchester, NH
(price negotiable)
Contact: Lucie Ducharme (603) 624-4086 jenniferp@henrysab.com
2017 Buick LaCrosse Right Quarter Panel (Missing rocker panel section) Excellent condition
Location: Amesbury, MA
$250
Contact: Rob (978) 388-0881
or rgpilon@comcast.net
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 52 November 2017
New England Automotive Report
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 53
New England Automotive Report
November 2017
53
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 54
[NATIONAL] FEATURE N
continued from page 35 The good news is that the longstanding practice of insurance companies pushing cars to shops who comply with certain Labor Rates and cycle times will come to an end. The car manufacturers will have a financial interest in a complete and proper repair. The bad news is that body shops and car manufacturers will be attached at the hip more securely than has ever been the case with body shops and insurance companies. Shops might be independent in name only. Starbard is 54. Retirement is on the horizon, which is just as well because he’s not sure he’s up for yet another shakeout, at least not one of this magnitude. He’s happy to leave that to younger shop owners. “This will be a day of reckoning,” he says. “More than anything I’ve witnessed in my career. I really believe that.”
E
W
N
G
L
A
N
D
AUT M TIVE ADVERTISER’S INDEX Accudraft Paint Booths ............................OBC American Honda Motor Co. ..........................4 Audi Group ....................................................26 Audi Shrewsbury ..........................................25 Axalta Coating Systems..................................6 Balise Wholesale Parts Express ..................20 Best Chevrolet/Best CDJR ........................IFC BMW Group ......................................................14-15 BMW/Mini of Warwick................................19 Colonial Auto Group ......................................9 Empire Auto Parts ........................................23 Enterprise........................................................42 Estify Transfer ................................................38 First Chrysler-Dodge-Jeep-Ram ..................10 First Ford ........................................................10 First Hyundai ................................................10 Ford Group ....................................................39 FutureCure ....................................................30 Honda Group ................................................17 Hyundai Group ............................................33
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
54 November 2017
E
New England Automotive Report
Imperial Ford ................................................39 Ira Subaru ......................................................13 Ira Toyota of Danvers....................................12 Kelly Automotive Group ..........................IBC Kia Group ......................................................37 Linder’s, Inc. ................................................54 Long Automotive Group ..............................36 Mazda Group ................................................47 McGovern Chrysler Jeep Dodge Ram ........16 Mercedes-Benz of Shrewsbury ....................26 Mopar Group ................................................21 Nissan Group ................................................43 PPG ....................................................................3 Robertsons GMC Truck ................................38 Sarat Ford Lincoln ........................................45 Sentry Group..................................................32 Subaru Group ................................................27 Tasca Group....................................................31 Toyota Group ................................................49 Volvo Group ..................................................44 VW Group ......................................................53 Wagner BMW of Shrewsbury ......................26 Wagner Kia of Shrewsbury ..........................26 Wellesley Toyota/Scion ................................45 Wheel Collision Center ................................23
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 55
NEAR1117.qxp_NEAR1014 10/23/17 11:33 AM Page 56