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2 December 2018
New England Automotive Report
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"#$!%&'%(!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"#$!#%&%'('%%')*+,*!-#"*%!.*//////////////********************************** ! ! ! ! New England Automotive Report December 2018 5
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December 2018 • Volume 16, No. 12
CONTENTS
DEPARTMENTS
COVER STORY
PRESIDENT’S MESSAGE By Molly Brodeur
30 | The Next Step: AASP/MA Charts a New Course for 2019
8 | Why OEM Parts Matter
By Joel Gausten
EXECUTIVE DIRECTOR’S MESSAGE By Evangelos “Lucky” Papageorg
10 | Why Is It…? LOCAL NEWS 22 | ADALB Addresses OEM Recommendations, Executive Session Controversy at October Meeting INDUSTRY UPDATE 26 | ATI Members Raise over $70K for Cancer Charity INDUSTRY ADVICE: ASK MIKE 34 | How Can Shops Build Better Trust with Employees?
ALSO THIS ISSUE LEGAL PERSPECTIVE By James Castleman, Esq.
5 | AASP/MA MEMBERSHIP APPLICATION
38 | Appraisals Based on Photos
11 | WHERE’S LUCKY? 13 | I-CAR IN MASSACHUSETTS
OEM CERTIFICATION PROFILE
18 | AASP/MA SPONSORS
42 | Volvo
46 | ADVERTISERS’ INDEX
New England Automotive Report December 2018 7
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PRESIDENT’S MESSAGE
Why OEM Parts Matter MOLLY BRODEUR
shop owners stand to lose if a part we install later contributes to an injury or death and we are held liable? The results of Todd’s latest crash test are available online at https://goo.gl/epEdFh. I urge everyone reading this to print them out and use them to help explain to your customers – and insurance personnel – why OEM parts need to be used on the vehicles in your shops. The industry has been waiting for years to have this kind of ammunition, and it’s finally at our fingertips. As repairers, it is our job to serve as consumer advocates on behalf of the vehicle owners who frequent our businesses. As Todd’s news-making activities prove, the legal profession is looking into collision repair like never before. It is up to us to collectively stand on the right side of history and perform the procedures that ensure our customers make it home safely every day.
Back in May, AASP/MA was fortunate enough to welcome attorney Todd Tracy for a special guest presentation to our members. If you saw him speak that day or have read about him in New England Automotive Report, then you know that he has done a lot of important work in bringing attention to the need for OEM-recommended/required parts and procedures. In last month’s issue, we included an update on a recent event Todd attended in Texas where he – along with representatives from the Auto Body Association of Texas (ABAT), the Houston Auto Body Association (HABA) and the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) – revealed the results of a recent crash test he had performed in California on a vehicle with genuine OEM replacement parts installed. The test indicated that OEM replacement parts perform exactly as intended, while the aftermarket parts he previously tested were…well, you know where I’m going here. Thanks to Todd’s tests, our industry now has scientific proof that OEM parts are the absolute safest option we have during the repair process. This isn’t a matter of saving a few dollars by using aftermarket parts; this is about protecting the lives of our customers. Sure, an insurer might “contain costs” by going with an aftermarket product, but how much do we as
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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
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AU M TIVE AUT T TI TIV STAFF
AASP/MA EXECUTIVE COMMITTEE
PUBLISHER
CREATIVE DIRECTOR
Thomas Greco - thomas@grecopublishing.com
Lea Velocci - lea@grecopublishing.com
SALES DIRECTOR
EDITORIAL/CREATIVE COORDINATOR
Alicia Figurelli - alicia@grecopublishing.com
Alana Bonillo - alana@grecopublishing.com
EDITORIAL DIRECTOR
PRODUCTION
Joel Gausten - joel@grecopublishing.com
Donna Greco - donna@grecopublishing.com
TREASURER Kevin Gallerani LEGISLATIVE CHAIR Peter Langone IMMEDIATE PAST PRESIDENT Paul Hendricks
PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier
AASP/MA STATEWIDE DIRECTORS PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
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 © 2018 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
WWW.AASPMA.ORG
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
8 December 2018
New England Automotive Report
Matthew Ciaschini Alex Falzone Joshua Fuller
Kevin Kyes Frank Patterson Mike Penacho
AASP/MA ADMINISTRATIVE OFFICE Evangelos “Lucky” Papageorg: AASP/MA Executive Director
Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741
NEAR1218.qxp_NEAR1014 11/8/18 12:58 PM Page 9
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Email: tschube@longauto.com New England Automotive Report December 2018 9
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EXECUTIVE DIRECTOR’S MESSAGE
EVANGELOS “LUCKY” PAPAGEORG
Why Is It…? It 4:13am as I write this, and some will say that I am out of my mind. I just woke from a sound sleep and, as usual, the first thoughts rattling my brain have to do with the industry that I care so deeply about. My thoughts concern a huge question: “How is it that the collision repair industry is in the state it’s in?” I do not profess to possess all (or any) of the answers. As a matter of fact, I have more questions than answers. I do know that many of the questions I hear from others, and ones I ask myself, start out with, “Why is it…?” So, here are just a few of them, in no particular order: Why is it that when a body shop writes an original or supplemental estimate for the purpose of negotiating, the insurance appraiser takes the estimate, flips to the last page and makes some comment or exclamation at the proposed bottom line almost without fail? I find that to be such a ludicrous and ridiculous way to set the tone for the negotiation process that is about to ensue. Our goal as collision repairers is to perform proper and safe repairs as mandated by the regulations that govern every auto damage appraiser’s license. When I worked in the shop environment, I would occasionally block out that portion of the estimate. It never ceased to amaze me when the appraiser would ask, “Where is the bottom line?” I would answer, “What difference does it make? We have not even looked at the vehicle yet.” Keep in mind that your bottom line on the estimate only matters if the insurance appraiser is going to break out a checkbook and write a check in that amount right there. It would appear the only real concern in the eyes of the insurance appraiser is how much they will chop that figure. Why is it that in no other profession or business that readily comes to mind does the entity that is responsible for paying the bill also get to be the one who determines what the bottom line will be? When you go to a doctor or some other
professional, upon whose expertise and education you rely, do you get to say, “No, you only deserve this amount as payment for your services. Oh, and by the way, if I am not satisfied with the final product after I have restricted you, I am going to hold you liable”? After placing an order for a meal, do you say, “I realize you spent a lot of time learning how to cook, stocking your kitchen, properly and safely preparing my meal and serving it to me, but you are charging too much. I am only going to pay 65 percent of your bill”? What makes you, as a collision repairer expert, less deserving than anyone else? You are the very same collision repair experts who will be held responsible and liable for the work “from cradle to grave,” yet are not in control of the bottom line. Meanwhile, the entity that determined the bottom line gets to walk away with little or no liability. Why is it that in a free enterprise/ retail environment, competition does not set the market rate for the work and service provided as it does on the mechanical side of the equation? For some reason, the rate is not set by those in our industry who have taken the time to stay current with ever-changing technology and repair procedures. These changes come fast and furious – even daily at times! The procedure you looked up and performed last week, or even yesterday, could have since been improved or found to be faulty. At one time, there was the sense that although it took a considerable amount of skill to restore a vehicle, it wasn’t “rocket science.” That could not be further from the truth today. The vehicles we work on have steadily evolved to “computers on wheels,” basically rocket ships restricted to the ground. Repair facilities, which once only needed basic tools and basic knowledge of sheet metal and refinishing procedures governed by minimal regulations, are now one of the most regulated business entities in existence. The level of expertise required rivals any other industry, automotive-related or
not. Did you ever imagine that one day you would have to employ someone whose sole responsibility would be to search and document manufacturers’ repair procedures and print them out for the technician while making sure the documentation follows the vehicle and becomes part of its file? Before doing so, the same employee would have to first perform a thorough computer pre-scan that points out some of what needs to be addressed during the repair process to guarantee a safe and proper repair that will ensure performance as intended in a subsequent loss. Why is it that collision repairers have been trained to play the role of the vehicle owner? We battle with the insurance company, but we are not in a direct contractual arrangement with that carrier. For some reason, under the guise of good customer service, we fight, grovel and spend hundreds of hours trying to convince a “tool” sent in by the insurance company not to say “no” to us. We spend time and energy to educate the staff or independent appraisers, who have been given their marching orders, on why we need to perform repairs in a certain manner. By the way, that very same person took the same test you did to become an appraiser, yet they can disregard the rules without fear of jeopardizing the privilege they have been granted. Yes, I know they are just doing their job and trying to make a living and of course keep their “severity” level down, but at what cost? You work in this industry to repair vehicles and save lives. Your success is measured by accomplishing this task with the confidence you have done all you can to ensure the safety of the vehicle owner in a subsequent loss. Your counterpart’s success in the process is measured by how much they can lessen the estimate you prepared. Safety be damned! Why is it that making our point to the powers that be – legislators, regulators, our customers and, yes, even some individuals in our own industry - is continued on page 13
10 December 2018
New England Automotive Report
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AASP/MA Executive Director Lucky Papageorg is on the move! Read below for his stops this month.
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DECEMBER
2018 MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
For the month of December, Lucky will be spending the first week visiting shops in the Southeastern region. For the second week, he will be in the Midstate region. In the third week, he’ll be visiting the Western region. During the fourth week, he will be in the Boston/Northeast region.
Lucky can be reached at (617) 574-0741 or lucky@aaspma.org. NEW ENGLAND’S NEWEST MOPAR DEALER
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Call us and get the right MOPAR parts the FIRST TIME! New England Automotive Report December 2018 11
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12 December 2018
New England Automotive Report
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EXECUTIVE DIRECTOR’S MESSAGE in Massachusetts December 4, 2018 Adhesive Bonding Enterprise Rent-A-Car (Burlington) December 5, 2018 Aluminum Exterior Panel Repair & Replacement Enterprise Rent-A-Car (Burlington) December 11, 2018 Color Theory, Mixing Toners & Tinting Enterprise Rent-A-Car (Burlington) December 12, 2018 Steering & Suspension Damage Analysis Enterprise Rent-A-Car (Burlington) December 13, 2018 Hazardous Materials, Personal Safety & Refinish Safety Bay Path Regional Vocational Technical High School (Charlton) December 18, 2018 Vehicle Technology Trends & Diagnostics Overview Enterprise Rent-A-Car (Burlington) December 19, 2018 Advanced Steering & Suspension Systems Damage Analysis Enterprise Rent-A-Car (Burlington) For more information, visit i-car.com
so difficult? Could it be that we don’t spend enough money to get our point across? I don’t think so. We have spent hundreds of thousands of dollars in promoting our issues and supporting individuals in the Legislature. However, as was stated at a recent Auto Body Association of Rhode Island (ABARI) meeting I attended, “The legislative landscape is ever-changing.” We can’t even come close to “buying” support, but what we can do is spend time and resources creating and educating allies in the consumers we deal with on a regular basis. We must expand that focus to education that reaches the motoring public before they are in your shop in the middle of a traumatic - and sometimes life-altering - event. The insured needs to be an armed ally before they get to your door, or they may never make it to your shop before being steered away. They need to understand the roles and rules in the “game” clearly so they are prepared to stand up for themselves. That is not to say that you as the repairer should not assist them once the “game” has begun, but it is
their insurance company that sold them an “indemnity” policy that the insurer is trying to wiggle out of by taking advantage of the less-thanknowledgeable customer. Keep in mind that among the motoring public are the very legislators whose support we need and try to get through presentations and donations. So, if we can educate the consumer, which includes our legislators, that proper training, equipment and repairs unfortunately come at a cost, they will have to understand it. They don’t have to like it, but they will have to accept it. Just as they accept and pay the bills for healthcare, plumbing, electrical and mechanical repairs, they will have to pay a fair and equitable rate at their local collision repair facility. The educated vehicle owner will choose their repair facility of their own free will and not because they were steered through misrepresentation by an insurance company, whose goal is to save themselves money at the sacrifice of safety. The vehicle owners will question being steered to facilities which have had continued on page 46
New England Automotive Report December 2018 13
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THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of West Springfield 1712 Riverdale St. West Springfield, MA 01089 PH: 413-746-1722 FAX: 413-304-9009 bmwwestspringfield.com
BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com
New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com
BMW of Cape Cod 500 Yarmouth Road Hyannis, MA 02601 PH: 508-815-5500 FAX: 508-790-3551 bmwofcapecod.com
BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com
14 December 2018
New England Automotive Report
BMW of Sudbury Wholesale Parts 68 Old County Road Sudbury, MA 01776 PH: 800-338-3198 FAX: 508-881-7578 bmwofsudbury.com Tulley BMW of Nashua 147 Daniel Webster Hwy Nashua NH 03060 PH: 603-888-5050 FAX: 603-888-8427 tulleybmw.com
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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you canâ&#x20AC;&#x2122;t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers.
Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com
Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com
Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com
Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com
Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com
Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com
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New England Automotive Report
Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com
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18 December 2018
For more information or to become a sponsor of AASP/MA please call (617) 574-0741 or email admin@aaspma.org.
New England Automotive Report
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New England Automotive Report December 2018 19
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20 December 2018
New England Automotive Report
IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098 www.iramotorgroup.com
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www.volvogroup.com New England Automotive Report December 2018 21
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[LOCAL] NEWS
ADALB Addresses OEM Recommendations, Executive Session Controversy at October Meeting The October 11 meeting of the Auto Damage Appraiser Licensing Board (ADALB) at the Division of Insurance in Boston continued the Board's discussion on a proposed Advisory Ruling that would require manufacturers’ recommended repair procedures to be followed when a structural part of a motor vehicle sustains damage affecting its safe operation. Later in the meeting, the Board discussed a letter submitted to ADALB Chairman Gilbert Cox by shop owner Gary Cloutier (Cloot’s Auto Body; Westfield) in response to
ADALB Chairman Gilbert Cox (left) and Board member Rick Starbard
the recent dismissal of Complaint 2016-5 after having been tabled for two years. The next ADALB meeting is slated for December 5 at Pathfinder Regional Vocational Technical High School in Palmer. More information is available at mass.gov/servicedetails/adalb-notices-of-meetings-and-agenda. Complete coverage of the October 11 meeting is available in the Members Only section of aaspma.org. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
22 December 2018
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[INDUSTRY] UPDATE:
ATI Members Raise over $70K for Cancer Charity
Left to right: Director of Administration Karen McLain, President Richard C. Menneg and Vice President Karen Dee
Automotive Training Institute (ATI), a leading automotive business coaching and training company, raised over $70,000 for Kids Beating Cancer (KBC) from attendees at its annual SuperConference. This year’s conference was hosted near KBC’s facility in Orlando, FL and attended by over 600 of ATI’s members, partners and vendors. Some attendees raised the money through fundraisers at their businesses prior to the event, while others participated in fundraisers onsite and made pledges. KBC provides life-saving transplants and testing to children with cancer regardless of insurance coverage or the family’s financial means. These services are provided at no cost at the KBC Pediatric Transplant Center. ATI was honored among other top donors at KBC’s Hats & Heroes Ball on September 29. On October 1, members of ATI’s leadership attended an unveiling at the KBC Pediatric Transplant Center to view the kids’ patient room with a permanent sign recognizing ATI members’ contributions from SuperConference 2018. “Our members are the heartbeat of their communities, and this type of generosity shouldn’t surprise anyone. They do it every day,” comments ATI President Richard Menneg. The ATI SuperConference is where the best of the best in the automotive aftermarket meet to celebrate their success and learn strategies to run more profitable shops that thrive in today’s economy. The 2019 SuperConference will be held in San Antonio, TX in March. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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New England Automotive Report December 2018 27
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www.firsthyundai.com 28 December 2018
New England Automotive Report
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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. 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
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[COVER] STORY By Joel Gausten AASP/MA is not the association it was 12 months ago. Thanks to an influx of new/returning members, the reimplementation of its chapter structure and the hiring of industry veteran Evangelos “Lucky” Papageorg as its new executive director, AASP/MA ends 2018 in a greater position of strength than ever before. In late October, Papageorg and AASP/MA President Molly Brodeur used the first Western Chapter meeting in several years to update attendees on the current state of affairs within the association and where it will guide members in the year ahead. Naturally, AASP/MA’s biggest goal for 2019 and beyond is to dramatically expand its current membership. This effort will include building stronger relationships with vocational schools to encourage students to join the industry and ultimately add their voices to the association. In Papageorg’s mind, conditions within the field need to drastically in order to secure a future workforce. “It is challenging to convince quality students to enter the industry in high-enough numbers to meet the demand we are facing.” “We have a massive gap to make up,” added Brodeur. “Right now, the average Labor Rate in the whole country hovers around $50. We continue to be the lowest.” For a solid decade now, AASP/MA’s primary way of addressing the reimbursement issue has been promoting Labor Rate legislation at the State House. Looking back at these efforts, Brodeur was open about the roadblocks experienced by the association in the political arena. “The biggest piece in all of this is that we cannot fight the insurance industry dollar for dollar. We’re in a situation in the industry where we don’t have the ability to raise the kind of funds that we would need to make a serious impact.” As an alternative, AASP/MA will increase its focus on partnering with various consumer advocacy groups to shine a spotlight on the need for realworld pay for OEM procedures. “We really have to take a whole different view on this; we have to come at it from a completely different angle. At the end of the day, it is all about the consumer; we’re responsible for fixing
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[COVER] STORY
AASP/MA Executive Director Lucky Papageorg encourages members to support the companies in the Vendor Affinity Program.
AASP/MA President Molly Brodeur: “The technology hammer has officially fallen.”
AASP/MA Legislative Chair Peter Langone hopes to reshape the ADALB.
their car properly and making sure that it’s safe and back to manufacturer specs. That’s on us to do that for the benefit of our customers.” As AASP/MA works to strengthen its communications with the motoring public, Papageorg believes that adopting a practice of balance billing customers when an insurer falls short on its commitments could be a valuable tool. “That consumer will get riled up and say, ‘Hey, my insurance company was supposed to pay for this!’” Elsewhere on the legislative front, the association will continue to push for passage of a bill that would move the Auto Damage Appraiser Licensing Board (ADALB) from the Division of Insurance to the Division of Professional Licensure. Additionally, the legislation seeks to expand the Board to include a consumer affairs representative as well as a representative from the Attorney General’s Office. Under the legislation, ADALB members would also be changed out every six years. AASP/MA Legislative Chair Peter Langone remains hopeful that the proposed changes will come to fruition. As he told Western chapter meeting attendees, “If [the ADALB] gets moved to [the new Division], it'll change how complaints will be litigated and how regulations will be enforced in our industry.” Moving forward, the Members Only section of the recently revamped AASP/MA website (aaspma.org) will include access to state regulatory documents, videos of ADALB meetings, member survey results and other critical information – but only to those who support the association through dues. “We’ve all put a lot of effort into bettering this industry,” Papageorg said.
“If you want to get better, then you need to be a member of AASP/MA.” Additionally, he urged the AASP/MA community to support those companies that participate in the association’s Vendor Affinity Program (VAP). A full listing of VAP supporters is included in each issue of the Damage Report newsletter. With the chapter structure back in place, each of the four regions – Western, Northeast, Midstate and Southeast – will soon have their own Board of Directors to organize local chapter meetings and events. “Because each region has different issues, they can address them within the format of their own local chapter meetings. I will be attending each of those meetings, and I can bring that information back to the Board of Directors at large,” offered Papageorg. Chapter meetings will also feature special educational seminars. For example, the Western Chapter gathering welcomed a presentation by AASP/MA webmaster Bill Enross (cPrax Internet Marketing) and a webinar by Beau Brandon of Estimate
Scrubber (estimatescrubber.com). While success in the Massachusetts collision repair industry is an ongoing challenge for many, Brodeur encouraged members to stay involved in the association, actively seek out information and remain vigilant when faced with opposition to performing safe and proper repairs. “The technology hammer has officially fallen. If you don’t make some serious changes now, you’re going to be in a world of hurt. We’re really passionate that we want as many shops as possible to do what they need to do so that they can remain viable…If we don’t take control of our businesses and start doing what we know is right regardless of what the insurance industry is telling us, we’re all going to be out of business – so who’s going to fix the cars? We have to make a change; we have to get reinvigorated and excited again about being in this industry.”
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AASP/MA wishes to thank Albert Kemperle Auto Body Supplies for sponsoring the Western Chapter meeting and the Roger L. Putnam Vocational Technical Academy in Springfield for hosting the event (with support from West Springfield Auto Parts). Information on upcoming chapter meetings and other AASP/MA events is available at aaspma.org.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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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: mbosma@kellyauto.com www.kellyauto.com
New England Automotive Report December 2018 33
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[INDUSTRY] ADVICE
ASK MIKE
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.
How Can Shops Build Better Trust with Employees?
This month, we “ASK MIKE” to share ways that shop owners can build stronger trust with their employees. 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.
‘Hey, I’ll hire you and review your pay in 90 days.’ Then, we just get busy and caught up in life and forget to do it. Maybe we say, ‘If I hire you and you start on the wash racks, I’ll give you an opportunity if we ever need a prepper or body apprentice.’ Then, we forget we’ve made that promise and hire somebody outside the organization. As a result, we lose trust. After realizing this, I went to my employees and said, ‘If I’ve ever made a promise to you I New England Automotive Report: The didn’t keep, will you please give me an industry spends a lot of time working opportunity to make it right?’ to gain the trust of consumers, but When I do consulting at a shop, I’ll some shop owners fall short on often ask the employees, ‘Do you trust gaining the trust of their employees. your boss or manager?’ In one case, an As a result, important things in terms employee told me she didn’t trust her of communication get missed as time you can have an honest dialog with boss because he told her if she ever goes on. Based on your experiences someone. We live in a world today referred anybody to him and that as a former owner, what are the where people are so concerned that person was hired, she’d get a $500 biggest mistakes you see shops their words might be misconstrued or bonus. She said, ‘I did that, and this making in this area? What were some misinterpreted that we avoid a lot of person didn’t even notice.’ I asked her mistakes you made yourself? honest dialog. how long ago it occurred, and she I think trust is really important replied, ‘Four years.’ For four years, this Mike Anderson: I’m an avid reader; between individuals you work with. was stuck in her craw. Knowing the one of my favorite books is The Speed When I had my shops, I was in a 20business owner and knowing that he of Trust by Stephen Covey. He said that Group called the Coyote Vision Group. was a very reputable person, I sat them if you have the speed of trust – meaning They had a guest speaker, and he down together. He said, ‘I’m sorry! I two individuals or two organizations asked us, ‘How many of you think didn’t mean to do that.’ He made it right, trust each other – you can make your employees trust you?’ Of course, and he also told her, ‘If I make a decisions at a more rapid pace. In his I raised my hand and said, ‘My promise to you in the future and I don’t book, one of the things that he talks employees absolutely trust me.’ He do it, please hold me accountable on about is the ability to talk straight. To asked if he could go in and survey my that.’ give a very real-world example, let’s say employees. I absolutely agreed to that. As business owners and leaders, that I’ve never met you a day in my life. When he came in and talked with them, we have to have that foundation of trust. You’re coming out of a restroom and I I found out that less than 60 percent of I would encourage anybody reading see that you left your zipper down. I’m my employees trusted me. That was this article to do two things. First, go not going to go up to a complete very disheartening to me; I was almost back to your employees and ask them, stranger and say, ‘Sir, you left your in panic mode. I thought, ‘Oh, my gosh! ‘Have I ever made a promise to you that zipper down,’ because I’d be Are they going to quit? What did I do concerned with what that person would wrong?’ He said, ‘Mike, your employees I didn’t keep?’ Then, be quiet, listen and work hard to make that right. Second, think of me. Because of that fear, I won’t love you, but they don’t trust you say anything. Now, let’s change the because you’ve made promises to them create a foundation with your employees that makes you accountable. At the end dynamic. You’re a friend of mine, and I that you did not keep.’ I learned a very of the day, we have nothing without see you coming out of the restroom. If I valuable lesson that broken promises trust. say, ‘Hey, you left your zipper down,’ lead to a loss of trust. I struggled with that every day. I you’re probably going to thank me. As business owners and managers, always told people, ‘If you ever need When you have a relationship of trust, we all have the best intentions. We say, 34 December 2018
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PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment
New England Automotive Report December 2018 35
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[INDUSTRY] ADVICE
me, email or call me.’ Then, I’d get caught up in life and get 6,000 emails, my plane would get delayed and I didn’t get to where I was going to work on those emails. I didn’t reply to those emails, and then I would lose trust with those people. I had to change my behavior. Now, my assistant Tiffany’s name is on the back of my business card. I say, ‘Hey, if I don’t get back to you in a day or two, reach out to Tiffany because I don’t want to lose your trust. I may have just gotten caught up in life where I didn’t have the ability to get back to you in a timely manner.’ That’s something that I apologize to the industry for. I want to return everybody’s email and phone call, but sometimes I get busy and behind.
NEAR: I don’t know a body shop in this industry that isn’t incredibly busy these days, so properly communicating with staff is critical. When you consult with shops, have you seen any practices that really did the trick in keeping communication successful?
MA: Doing employee reviews quarterly helps. If you can do that quarterly, you 36 December 2018
New England Automotive Report
tend to keep yourself out there in front of the employee so you can make things right before it does go too far.
NEAR: This discussion we’re having was inspired by a recent presentation you gave in New Jersey on this and other topics. For that meeting, you also brought along folks from Bodyshop Booster and Podium. Why should shops be aware of these two companies?
MA: With Podium, it’s really about trust. At the end of the day, customers decide if they trust us based on our online reviews. Podium has done a great job of helping shops get a lot of reviews through the way the company sends the link to the Google review for customers. That’s a way for shops to get a lot of Google reviews; that’s why I brought them to that meeting. With Bodyshop Booster, one of the statistics that has been shared with me is that 36 percent of all consumers want our services outside of our normal business hours. They want the ability to get an estimate, schedule an appointment for one or schedule an appointment for a drop-off. If we don’t have the ability to
tap into that, we have the potential of losing up to 36 percent of those customers. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).
NEAR1218.qxp_NEAR1014 11/8/18 12:58 PM Page 37
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[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
Appraisals Based on Photos
There is an insurance company ad on TV that makes me cringe every time I see it. It touts how quick and hassle-free it is to file an auto damage claim by uploading pictures of the damage to the insurer’s claims website. In the ad, a claimant snaps a picture on her smartphone, sends it to the insurer and - bingo! - the smiling claimant has a check in her hand to cover the loss. Having represented collision repair shops for many years, I start screaming at the TV, telling the claimant that there is no way that an accurate assessment of her loss can be made from that picture. What hidden damage is there? Is there structural damage? Have any of the vehicle’s safety systems been compromised? What would a scan show? Is the car really still drivable? Can a panel really be repaired, or does it have to be replaced? Are aftermarket or LKQ parts appropriate for fixing your car, or should OEM parts be used? Should your car be totaled? Wipe that smile off your face, Ms. Claimant, because that check in your hand almost certainly is not going to cover the actual cost of repair. Wake up and realize that your insurer may have more interest in making sure they save money than they do in making sure you have enough money in your pocket to pay for proper repairs. Heck, you probably didn’t even know what pictures you should have taken. Based on my understanding of Massachusetts law, I used to take solace in the fact that this scene could not play out in our state. It turns out I was wrong – at least as to what I now understand is occurring with some appraisals being prepared by licensed auto damage appraisers working for some Massachusetts insurers. Is It Legal in Massachusetts to Write Auto Damage Appraisals Based on Photographs? Massachusetts General Laws, Chapter 26, Section 8G establishes the Auto Damage Appraiser Licensing Board (ADALB) and governs certain conduct of licensed auto damage appraisers. While not addressing the issue fully, the statute strongly implies that appraisers are required to personally inspect damage when writing appraisals rather than rely on photographs. As an example, one paragraph of the statute says that an appraiser is required to leave a copy of the appraisal with a repair shop “at the time he inspects the vehicle.” Another paragraph makes it illegal for an insurance appraiser to obtain a competitive estimate from another repair shop unless a licensed appraiser from the shop “has inspected the vehicle.” More to the point, the paragraph further says, “No such competitive estimates shall be obtained by the use of photographs, telephone calls or in any manner other than a personal inspection.” A subsequent paragraph adds, “Every appraiser shall reinspect damaged motor vehicles when supplementary allowances are requested by repair shops within two days of a request.” The statute also requires that appraisals be written
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“in a manner consistent with rules and regulations as shall be issued and amended from time to time by the [ADALB].” The regulations issued by the ADALB, valid on their face, more directly require that appraisals be written based on personal inspection rather than by photographs. In particular, the regulations say, at 212 CMR 2.04(1)(d), “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspection in making the appraisal. As part of the inspection, the appraiser shall also photograph each of the damaged areas.” [Emphasis added]. The mandate of the regulation seems clear. Admittedly, in May 2014, at the behest of a major insurer and with some pressure from the then-Commissioner of Insurance, the ADALB issued an Advisory Ruling interpreting its regulation, saying that “an appraisal conducted by a licensed appraiser via review of quality video or digital images with documentation meets the requirements of 212 CMR 2.04(1)(d).” To me, the Advisory Ruling seemed ill-advised and in direct contravention of the clear mandate of the regulation. The ADALB soon came to the same conclusion, repealing their Advisory Ruling a little over a year later. The bottom line? The ADALB regulations require that auto damage appraisals be written based primarily on personal inspection – not on photographs. So, What’s Happening? I recently got a call from a shop owner who has been having problems with a particular insurer whose appraisers are writing some of their appraisals based on photographs electronically sent to them by claimants. Knowing the mandate of the ADALB regulations, I wondered how this could be and what the appraisers were telling the shop owner when he questioned them about it. It turns out the appraisers, at the direction of their insurer, are hanging their hats on another section of the ADALB regulations - a section that says that an insurer does not have to assign an appraiser to appraise damage under $1,500. When the shop owner told me this, I was flabbergasted. I believe the insurer is completely wrong in using this exception to the rule to justify what it is doing. It is true that, for certain relatively minor auto claims, there is an exception in the governing ADALB regulations that allows an insurer to forego assignment of an appraiser to assess the damage. The regulations, at 212 CMR 2.04(1)(a), say, “Upon receipt by an insurer or its agent of an oral or written claim for damage resulting from a motor vehicle accident, theft or other incident for which an insurer may be liable, the insurer shall assign either a staff or an independent appraiser to appraise the damage. Assignment of an appraiser shall be made within two business days of the receipt of such claim. However, the insurer may exclude any claim for which the amount of loss, less any applicable deductible, is less than $1,500.” [Emphasis added]. But there are multiple problems with how the insurer is relying on this language. First, the regulation does not say that an appraisal can be prepared based on photos if the damage is under $1,500. Rather, it says that it is not necessary to assign an appraiser at all if the damage is under this threshold. In my opinion, the regulation was meant to address damage that is clearly minor, for which it would be more cost-effective for the insurer to just
pay the claim rather than have to go through the whole appraisal process. Broken mirror? Just take the car to a registered glass shop and have them send a bill. Scratches in the door paint? Take the vehicle to a repair shop and have them send a bill for the buff-out or repainting. There should be no need to perform an appraisal for these types of claims. But in fact, the claims that the shop owner told me about are being assigned to appraisers. The appraisers are then writing appraisals based on photos, itemizing the damage and signing their appraisals. Yet, there is nothing in the regulation that allows an appraiser to write an appraisal based on photos once they are actually assigned to the claim. When an appraiser is assigned, that person is then obligated to follow the governing ADALB regulations when writing their appraisal, including the section of the regulations that requires personal inspection. Further, unless the damage is truly minor, how does an appraiser looking at photos legitimately judge that the damage is less than $1,500? This was the main problem the shop owner who called me was concerned about. In fact, the impetus for calling me was because a car came into his shop with obvious major damage from a rear-end hit. Using photos, the insurance appraiser had written his appraisal for just under $1,500. Yet, once the car was brought into the repair shop, the insurance appraiser agreed to a $4,500 supplement. The question the shop owner raised was whether the appraiser had intentionally written an appraisal under $1,500 (which he thought got him off the hook for using only photos), or whether the appraiser just completely incompetent? After all, it appeared to the shop owner that, even based on the photos, it should have been obvious to any licensed appraiser that the damage to this particular car was well in excess of $1,500. Additionally, the shop owner told me that this scenario was now occurring frequently for claims he saw from this insurer. Was it intentional that the photo-based appraisals were all being written under $1,500, even though it was almost always obvious that the actual damage was more? It certainly seemed to the shop owner - and to me - that this was the case. Conclusion: Insurance Appraisers Take Heed! Massachusetts law requires that all auto damage appraisals be based primarily on personal inspection and not on photos. If you are an insurance appraiser, be wary of what your insurer is telling you. While regulations allow an insurer to avoid assigning an appraiser for claims under $1,500, you are mandated to follow the requirements of the ADALB regulations once you are assigned to write an appraisal – no matter the amount of the claim. If you are intentionally writing low-ball appraisals based on photos to get under $1,500, then you are not only ignoring the requirement for personal inspection, but you also may be defrauding the vehicle owner. 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. New England Automotive Report December 2018 39
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Get it right from the source.
Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs. When you need fascias, grilles, headlamps, wheels or any other Ford Motor Company Genuine Part, call your local wholesaling dealership. They’re a great souce for technical and repair information as well. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership.
Contact these Ford or Lincoln Mercury dealers for all your parts needs: Imperial Ford 6 Uxbridge Road Mendon, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 E-mail: johnl@imperialcars.com First Time Customers call John
Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com
Sentry Ford Lincoln 4100 Mystic Valley Parkway Medford, MA 02155 Parts: 617-506-6309 Fax: 781-874-9934 E-mail: pnewell@sentryautogroup.com
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Make Quality Your Goal.
REPAIR WITH KIA GENUINE PARTS. Your reputation depends on repairs done right - the first time. Kia Genuine Parts are manufactured to the same exacting standards as original equipment. Don't take chances by using aftermarket parts. Are you willing to risk your reputation and customer satisfaction? A happy customer is your best advertisement. Protect your customer, protect your business Insist on Kia Genuine Parts.
Contact the following Kia dealers for assistance and delivery of your Kia Genuine Parts. Bald Hill Kia 1021 Bald Hill Road Warwick, RI 02886 Parts Direct: (800) 822-3015 www.baldhillkia.com
Gary Rome Kia 809 Enfield Street Enfield, CT 06082 Parts Direct: (888) 349-3995 Fax: (860) 265-2674 www.garyromekia.com
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[OEM CERTIFICATION] PROFILE
Kenneth Park of Volvo This month, we sit down with Kenneth Park, certified collision program manager for Volvo, to discuss the automaker’s certified collision repair program. Similar conversations with other automaker certification program representatives will be featured in future issues of New England Automotive Report. New England Automotive Report: How long has Volvo had a certified program? Kenneth Park: We launched in March 2017. Currently, we are looking at about 350 shops across the country, so roughly one percent of the shops out there. That goes for the entire country, including Hawaii and Alaska. We’re at 200 at the moment, with six in Massachusetts. NEAR: What are some key ways that Volvo’s auto body certification program differs from what shops have been familiar with in the past? KP: We are similar to other OEMs as far as requirements in some aspects and differ in others. We do require I-CAR Gold
training, and we do require specific training as far as frame machines, downdraft spray booths and welding equipment, etcetera. In comparison to what shops have seen in the past, we are more stringent with the requirements, and we do perform annual in-house audits where we verify a shop’s training, equipment, facility, estimating, repairs and software utilization, to name a few. We also require 95 percent OEM part usage. If we perform an in-house audit and find out the shop is using only 70 percent, that will be a flag – a warning. After that, if we find bad repairs on any vehicles, that will be a three-month suspension until we go back and perform a surprise re-inspection. If they fail the inspection again, they’re de-certified. NEAR: What are some of the general equipment and training requirements that a shop must meet in order to be accepted into the new program? KP: Some of that information is available online at our I-CAR page at i-car.com/ Home/Educational-Programs/OEMTraining-Requirements/Volvo. For detailed information, inquiring parties can reach me at ken.park@volvocars.com. NEAR: Obviously, there are some changes coming with I-CAR and its Road to Gold program. How has that impacted Volvo’s work with I-CAR in getting these shops up to speed with certification? KP: This has pushed the shops that are on the Road to Gold to complete it sooner rather than later. It has a positive impact, because the completion term will be much longer in 2019. The shops are being as reactive as possible at this point to ensure they get on by the end of the year.
NEAR: How often do you require re-training? KP: We require the annual I-CAR training. We will be working with I-CAR to develop future Volvo-specific courses, and we are beginning to look into inhouse training as well. There’s no promise date, but we’re looking to provide it at our main headquarters in Rockleigh, New Jersey. NEAR: What is Volvo’s position in terms of parts restrictions in the certification process? KP: We don’t have a set date, but we will be looking to restrict our parts sales on boron and aluminum structural components in early 2019. NEAR: What kind of time and monetary investment is needed to join the certified program? KP: There is a $4,000 annual charge to be on the program. As far as the investment beyond that, it varies. If a facility is already with other OEM programs, that is a factor, as they may already have the majority of the requirements satisfied. It’s a very wide range. Some shops are fully loaded and ready the day we walk in, but other shops are 10 years behind and need to make a $100,000-plus investment. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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Audi dealers strive to make you an Audi Genuine Parts fan •
Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.
•
Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.
•
Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.
•
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.
Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841
IRA Audi 105 Andover Street Danvers, MA 01923 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.iraaudi.com
Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com
Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com
Audi Cape Cod 25 Falmouth Road (at the Hyannis Airport Rotary) Hyannis, MA 02601 PH: 508.815.5600 FAX: 508.568.9410 www.audicapecod.com
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EXECUTIVE DIRECTOR’S N
MESSAGE continued from page 13 to make concessions to be part of that insurance company’s referral or “program” network. The educated and knowledgeable consumer will ask, “Concessions at what cost? Safety?” Why is it that we don’t ask … WHAT IF? See the next Damage Report newsletter, which is mailed to MEMBERS ONLY, for the “What Ifs,” which will include some possible solutions to be considered.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org
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Ira Subaru ..............................................13 Ira Toyota of Danvers ..............................12 Kelly Automotive Group ........................IBC Kia Group ..............................................41
ADVERTISERS’ INDEX
Linder’s, Inc. ........................................46
Accudraft Paint Booths ........................OBC
McGovern Chrysler Jeep Dodge Ram ..........11
Audi Group ............................................45
Mopar Group ..........................................24
Axalta Coating Systems ............................6
Nissan Group ..........................................33
Best Chevrolet/Best CDJR ......................IFC
Pinnacle ................................................31
BMW Group ..................................................14
Polyvance ..............................................22
BMW/Mini of Warwick ............................23
PPG ........................................................3
Colonial Auto Group..................................4
Reliable Automotive Equipment................35
Empire Auto Parts....................................15
Sarat Ford Lincoln ..................................26
Enterprise ..............................................28
Sentry Group ..........................................27
First Chrysler-Dodge-Jeep-Ram ..............28
Sherwin-Williams ..................................25
First Ford ..............................................28
Subaru Group ........................................37
First Hyundai..........................................28
Tasca Group ............................................17
Ford Group ............................................40
Toyota Group..........................................20
Gary Rome Hyundai ................................44
Volvo Group ............................................21
Gary Rome Kia........................................44
VW Group ..............................................43
Honda Group ..........................................16
Wellesley Toyota/Scion ............................44
Hyundai Group ......................................29
Wheel Collision Center ............................15
Imperial Ford ........................................40
Long Automotive Group ............................9 Mazda Group ..........................................19
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