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AUT M TIVE Serving The New England Collision AND Mechanical Repair Industry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
June 2014 U.S.A. $5.95
ALSO IN THIS ISSUE
AASP/MA Casino Night Notice GEICO Fined $275K 2014 MA SkillsUSA Delivers www.grecopublishing.com
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June 2014 • Volume 12, No. 6
CONTENTS
DEPARTMENTS VICE PRESIDENT’S MESSAGE 8 | Tune in for Consumer Awareness! by Molly Brodeur BREAKING NEWS 12 | GEICO Fined $275K for Inconsistencies in Accident Reporting
LEGAL PERSPECTIVE 20 | Let’s Talk About It by James A. Castleman, Esq. AASP/MA LOCAL UPDATE 23 | AASP/MA Member Takes On Unsafe Referral Repairs MARK MY WORDS 46 | High-Pressure Systems by Mark Giammalvo NATIONAL FEATURE 49 | Ford Tech Advancements Spur Education, Debate
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FEATURES 28 | FUTURE TECHS AMAZE AT MA SKILLSUSA Tomorrow’s repairers show off their stuff at this year’s annual SkillsUSA competition.
39 | THE TIME FOR CHANGE IS NOW: AASP/MA STATEWIDE MEETING RECAP
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Renowned industry attorney Erica Eversman schools a packed house of association supporters on industry unity against third-party interference.
ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 13 | AASP/MA MIDSTATE CHAPTER BBQ NOTICE 16 | ADALB REPORT 18 | AASP/MA ANNUAL CASINO NIGHT NOTICE
19 | AASP/MA SUSTAINING SPONSORS 57 | AASP/MA MEMBERSHIP APPLICATION 58 | INDEX OF ADVERTISERS
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AUT M TIVE STAFF PUBLISHER Thomas Greco (tgp22@verizon.net) MANAGING EDITOR Alicia Figurelli (tgp2@verizon.net) EDITOR Joel Gausten (tgpjoel@verizon.net)
JUNE 2014 June 3, 2014 AASP/MA MidState Chapter Meeting Greater Lawrence Vocational Tech’s Four Winds Restaurant 57 River Road Andover, MA
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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 © 2014 by Thomas Greco Publishing, Inc. Images: Cover, pg. 5: ©www.thinkstockphoto.com/lookwai; pg. 13: ©www.thinkstockphoto.com/saiva; pg. 23: ©www.thinkstockphoto.com/monkeybusinessimages; pg. 49: ©www.thinkstockphoto.com/Ivan Osadchyy.
June 12, 2014 AASP/MA Annual Golf Outing Charter Oaks Country Club 394 Chestnut St., Hudson, MA
FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA EXECUTIVE COMMITTEE PRESIDENT Paul Hendricks VICE PRESIDENT Molly Brodeur SECRETARY Gary Cloutier ACTING TREASURER Molly Brodeur IMMEDIATE PAST PRESIDENT Rick Starbard
AASP/MA STATEWIDE DIRECTORS COLLISION DIVISION DIRECTOR Adam Ioakim ASSOCIATE DIVISION DIRECTOR Don Cushing
AASP/MA CHAPTER DIRECTORS N/E CHAPTER COLLISION DIRECTOR Alex Falzone S/E CHAPTER COLLISION DIRECTOR Kevin Gallerani S/E CHAPTER MECHANICAL DIRECTOR Michael Penacho MIDSTATE CHAPTER COLLISION DIRECTOR Tom Ricci WESTERN CHAPTER COLLISION DIRECTOR Peter Langone WESTERN CHAPTER MECHANICAL DIRECTOR Ed Nalewanski
AASP/MA EXECUTIVE DIRECTOR
Please note new phone/fax numbers!
Jillian M. Zywien Lynch Associates, Inc. Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org
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VICE PRESIDENT’S MESSAGE
TUNE IN FOR CONSUMER AWARENESS! Many AASP/MA members and supporters likely recall our spirited attempt to launch an aggressive media
campaign toward the end of 2013, with a plan encompassing statewide radio ads on the topic of consumer
awareness. The plan was to point listeners to www.yourrideyoudecide.com, a site created by AASP/MA that will be live by the time you receive this issue. Our goals were ambitious, but unfortunately, our ambitions were curtailed by a hefty price tag to get the campaign off the ground. When our initial push for advertising dollars was in danger of coming up a bit short, we at AASP/MA decided to go back to the drawing board. We reimbursed those shops who had signed up for our original program, and put our heads together to see how we could best serve our supporters and the motoring public at-large. And I am incredibly proud to announce to you our resulting plan, which we feel will benefit a broad audience to better industry conditions and consumer education across the board. WCRN AM 830, a Worcester-based AM radio station, has stepped up to help AASP/MA get our message out to the community. They’ve designed an ad campaign that will direct the public to www.yourrideyoudecide.com through commercials that will be played over the station’s 50,000-watt signal across the Commonwealth. WCRN has worked with us to offer an affordable option for shops looking to run a saturated media campaign for a substantial length of time. I’m proud to announce our newest opportunity will allow a shop to run a tagged ad with their business’s name running 12 times a day, seven days a week for six months…all for the low cost of $250 continued on pg. 47
AASP/MA Vice 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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A MESSAGE FROM THE EXECUTIVE DIRECTOR Dear Members, This month, I wanted to provide an update on current projects AASP/MA has been working on. I’ve broken the update down into several categories covering activity primarily conducted over the last 30 days.
discussed hosting a program on a Saturday that would incorporate both educational speakers on business-related topics and a technical training program. We are asking for member feedback on whether that is a format that you would participate in. Members, please look to your newsletter for further information and to respond to this inquiry.
Chapter Info Event Activities Following the last MidState Chapter meeting hosting voWe hosted Erica Eversman at our upcoming Statewide cational schools throughout the state, the follow-up from the Meeting on May 13. This was one of our most well-attended educators has been extremely positive. We have had some meetings, with over 80 participants. I am thrilled we were schools register to attend our future Statewide Meetings to able to secure Ms. Eversman to speak in Massachusetts. provide a platform to network with member shops. The asThis is the first time she has spoken to AASP/MA specifically, sociation is also meeting with individuals who are interested and the meeting was an invaluable opportunity for our shops in providing a mentoring program for the students at vocato learn from a nationally renowned expert in the field. tional schools. This increased participation between AASP/MA As you are aware, Enterprise will be sponsoring our Anand the vocational community will provide more skilled future nual Golf event this year at Charter Oak Country Club, one of technicians for our member shops. the finest courses in Massachusetts. We have added a numThe Southeast Chapter is currently in the planning stage ber of additional gifts for golfers and vendors. In addition to for its next meeting. We are working with Chapter President golf, green fees, cart fees, a catered breakfast and lunch, Kevin Gallerani to confirm a date and subject matter in June. each player will receive a golf shirt, a golf towel, golf balls The Western Chapter hosted its chapter meeting on May and tees. Thanks to Al Brodeur’s Auto Body, golfers will also 20 at Slainte Restaurant in Holyoke, MA. Topics of discusreceive a $10 voucher to redeem on Hole 9 for a complision included a report on AASP/NJ’s mentary cigar, cigar cutter and lighter. recent NORTHEAST® 2014 AutomoAll new items will be a complement to tive Services Show, the new our raffle prizes, competition hole AASP/MA Executive aluminum repair process, Ford’s prizes and hole-in-one prizes. (UPDATE: Director Jillian Zywien Certification and information on PartThis event is currently SOLD OUT for golf. has been a senior sTrader. However, we do have several hole sponaccount executive at Lynch Associates for over six years. sorships available and members are also She can be reached at (617) Sponsorships welcome to attend our luncheon event. If 574-0741 or via email at Over the past few months, we you would like to sponsor a hole or attend jzywien@aaspma.org. have been working to secure our the luncheon only, please contact Colleen 2014 association sponsors. These Kane at AASP/MA.) efforts have been very successful I know many of our members are and have led us from the South Shore to Western Mass. excited about our upcoming Casino Night, happening NoAASP/MA President Paul Hendricks always reminds us to vember 15 at the Putnam Club at Gillette Stadium. Please support vendors who support the association. If you are curregister today, as there are limited slots for the stadium tour rently using a vendor that is not involved with AASP/MA, and event. We have secured a room block at the Renaisplease consider asking them to join the association, sponsor sance Boston/Patriots Place Hotel and Spa, should meman event or become one of our valued sponsor partners. bers wish to stay overnight following the event. The hotel Contact Peter D’Agostino today! reservation code is listed on our website under the Casino Night tab. Please look for our marketing materials on the Member Support event on page 18 of this issue of NEAR as well as the DamThe association has been working with a focused subage Report member newsletter. committee in regards to the compliance process through the Our fourth quarter Statewide Meeting is on September Division of Insurance and the ADALB. We are working to de9; we have already secured several industry experts for a velop a checklist for materials needed to file a complaint. panel discussion on the new aluminum body vehicles. We Once we have a completed form, it will be featured in the have heard from a number of our members who are interMembers Only section of our website, as well as the ested in learning about this new technology and the costs AASP/MA Damage Report member newsletter. associated with training technicians and repairing these vehicles. Mark your calendars today to attend this meeting and Legislative Efforts plan to bring your technical staff, as well. Our Labor Rate Bill received a study order from the ComAASP/MA Vice President Molly Brodeur recently atmittee on Financial Services. Our lobbying team has pretended a NAPA event and procured a list of outstanding edsented several options to the Legislative Committee for a ucational speakers. We plan to offer these programs in future strategy on this issue, and the Committee is working coming months using our AASP National educational grant through those strategies to determine the best option and money to bring in the best experts available. The Board has 10 June 2014 New England Automotive Report
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our strategy going forward. Mark Molloy and Kimberly Sullivan from the Lynch Associates team analyzed the entire State Budget and reviewed over 1,100 amendments, identifying those of interest to the association. There were three House Budget amendments identified by the Board that were troublesome. The lobbying team was successful in defeating all three budget amendments, attending all budget sessions on behalf of AASP/MA. I appreciate their efforts on all of the association’s legislative and regulatory initiatives to protect the industry. At this writing, the Senate is just releasing their budget. We will oversee the Senate budget just as carefully to identify any and all amendments relative to AASP/MA and its membership. Regulatory Activity As you are aware, we have been continuously working with the Division to develop our comments for the rewrite of 211 CMR and 212 CMR. We have discussed our strategy with our Legislative Committee and are working to schedule another meeting with the Division of Insurance. We have made progress working with the Commonwealth Automobile Reinsurers (CAR) relative to their Performance Standards. This effort will be heard by the CAR Governing committee later in June; a full report will be available at the end of June. We have several other issues we are developing relative to the ADALB and DOI complaint processes. One item of particular note is GEICO recently being fined by the state for failure to report accidents to the agency and policyholder correctly. Please see page 12 for more information. Sincerely,
Jillian Zywien AASP/MA Executive Director MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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BREAKING NEWS
GEICO FINED $275K FOR INCONSISTENCIES IN ACCIDENT REPORTING On May 1, Massachusetts Commissioner of Insurance Joseph G. Murphy announced an agreement with Government Employees Insurance Company and GEICO General Insurance Company (collectively, “GEICO”) resolving inconsistencies in its reporting of accident information to state agencies and policyholders. Under the terms of the agreement, GEICO has agreed to modify certain portions of its current business procedures, implement new procedures and pay a $275,000 fine. An additional $275,000 fine has been suspended pending a future re-examination by the Division of Insurance. “Today’s announcement is the result of our ongoing monitoring of the insurance marketplace to ensure that consumers are receiving the benefits to which they are entitled and companies are competing on a level playing field,” said Commissioner Murphy. “The company’s actions created disruptive issues within the auto insurance marketplace in Massachusetts.” The Division negotiated this agreement with GEICO following a market conduct examination of GEICO’s practices since the company began offering private passenger automobile insurance to Massachusetts drivers in May 2009. The examination specifically identified GEICO’s inconsistency in reporting
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claim information and providing operators proper notice of atfault accident determinations and their rights to appeal those determinations to the Division’s Board of Appeal as areas requiring a change in business practices. The company will notify individuals affected by these actions, including consumers who are no longer insured by GEICO, within 60 days. The settlement requires GEICO to amend claim information reporting, implement new business practices to ensure operators determined at-fault receive notice of that determination and their rights to appeal and warrant that data reported to the Merit Rating Board is effective and timely. GEICO will be subject to ongoing monitoring and a re-examination in the next two years, after which the Commissioner will levy or rescind the second fine. Under the terms of the agreement, GEICO must also do the following: · Properly report past claim information to the Merit Rating Board and other insurance carriers for claims that occurred between May 18, 2009 and June 1, 2013. · Provide notice of at-fault accident determinations and the right to appeal those determinations to operators not previously notified of GEICO’s at-fault accident continued on pg. 58
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ADALB REPORT
T
he April 29 meeting of the Auto Damage Appraiser Licensing Board (ADALB) was one of the best meetings of the Board thus far. AASP/MA was energized by the Board’s eagerness to review regulations and evaluate the impact of each issue in the process. (The full video of the meeting is available on the Members Only section of the AASP/MA website.) To begin the meeting, Board member Tom McClements, Jr. expressed a desire to discuss the minutes from the previous meeting in order to clarify his positions on a couple of items. There was a five-minute delay in order for DOI staff to copy the minutes. The first item discussed by McClements was the desire for continued discussion regarding appraisal fees, for the purposes of transparency. According to Chapter 26, Section 8G of the licensing regulations, an insurance company is responsible for paying an appraisal fee. McClements expressed the intention to propose a standard range of fees to ensure there are no conflicts, adding that Massachusetts is the only state to mandate the use of aftermarket parts. As such, he stated his desire to see Massachusetts regulations amended to state that an insurer shall not require the use of aftermarket parts, instead of
For more information on the April 29 meeting of the ADALB and video coverage, please visit the Members Only section of the AASP/MA website, www.aaspma.org. the current language that reads, “shall be used unless…” Following this discussion, the minutes were approved and fellow Board member Carl Garcia reported on the April 1 test. A total of 44 people took the exam, with 25 passes and 19 failures. In this test cycle, Garcia attributed the higher failure rate to the participants’ lack of seeking help and/or using the guide. The next test is scheduled for June 17 at the Holiday Inn in Taunton. As he has done in the past, Garcia will offer a review at his shop the day prior to the exam. The next agenda item was the review of amendments to 212 CMR. The first item reviewed was 2.04 section (c), “Contact with Claimant and Selection of Repair Shop.” At the last meeting, Board member David Krupa had asked for this item to be placed on the agenda and wanted to discuss the regulation as it relates to the direct payment plans pursuant to 211 CMR 123.00. During the meeting, Krupa decided that, after doing his own review of both regulations, any changes he wished to make would be inconsequential and therefore had no further comments. However, McClements did have a significant question on what 16 June 2014 New England Automotive Report
the ADALB Board regulates, and suggested removal of the last sentence in section c, which reads: “The provisions of 212 CMR 2.04(c) shall not apply to any approved direct payment plan pursuant to 211 CMR 123.00.” McClements used an example of a rogue appraiser who the ADALB would have no authority over under an approved plan according to the current language. Following a lengthy discussion, fellow Board member Joe Coyne stated that not even insurance company representatives can steer a consumer, and the ADALB would have the authority to prosecute that person. Upon Coyne’s statement, the Board agreed to remove the item from the agenda. The next item up for discussion was “(a) Assignment of an Appraiser,” and raising the threshold cost that an insurer may exclude a claim. (The regulation’s current threshold is $1,500.) The Board agreed that this threshold does not match current industry standards and that the dollar amount should be larger. Garcia suggested an amount of $4,000; the Board did not offer a consensus on the amount, agreeing instead to present something at the next meeting. Next on the Board’s agenda was a discussion of “(d) Requirement of Personal Inspection and Photographs.” Krupa opened the discussion by stating his expectation of a great deal of public comment on this regulation because of the new updates in technology. The definition of “personal inspections” has changed and DOI has approved such plans that allow for an appraisal to be done by photo and video. Garcia argued that the industry is not aware of the decision by DOI to allow this technology, and it must be publicized. The Board agreed to issue an advisory ruling to clarify and publicize the change. Chairman Cox asked for Krupa and Garcia to draft an advisory ruling for approval by Counsel Powers. Coyne added that he does not believe a still photo qualifies
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as personal inspection and therefore should NOT be allowed; only video appraisals should qualify in this regard. Krupa and Garcia agreed to consider this point and present an advisory ruling option at the next meeting. There was a lengthy discussion initiated by McClements on changing the assignment time to two business days and the appraisal time to five business days, as he believed the process is presently too long. Both insurance members of the Board stated that, in their opinion, the claim process is fast and, in some cases, faster than five days. Krupa further stated that there is no reason why an insurance company would want to delay that process other than an extreme weather event where extra days would be necessary. Following the discussion, the Chair decided to remove the item from the agenda. McClements asked that the Board entertain a discussion on whether there is a difference between an estimate and an appraisal. In the past, the DOI has issued guidance that a shop writes an estimate rather than an appraisal. Krupa agreed that DOI had issued a letter following the approval of the Metropolitan Plan on the difference of estimates and appraisals. According to that letter, estimates are done by body shops and insurance companies do appraisals. Both Coyne and Garcia agreed that estimates and
appraisals are one in the same and no clarification was needed. The Board did agree to allow McClements to prepare language on the difference and present it at their next meeting. Before the Board could set their next meeting, Peter D’Agostino of Lynch Associates (AASP/MA’s executive team) asked to be recognized by the Chair for the purposes of clarifying a position the Board took earlier in the meeting on whether or not the ADALB has the authority to prosecute an employee of an insurance company. It was evident that the Board was unwilling to repeat their previously stated opinion. At D’Agostino’s request, the Board agreed to keep this item on the agenda for the next meeting. Through his efforts, Chairman Cox agreed to accept some language on the issue. Before adjourning to Executive Session, the Board set their next meeting for Tuesday, May 20, the events of which will be reported on in a future issue. We at AASP/MA are very pleased with how the April 29 meeting went, and we strongly encourage the membership to make any effort possible to attend the ADALB events. These discussions will continue to shape how we respond to the Division and the Board throughout the regulation review process. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!
2014 AASP/MA NEWSLETTER SPONSOR
WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor!
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LEGAL PERSPECTIVE
L E T ’ S
T A L K
ABOUT IT by James A. Castleman, Esq. I am writing this article the morning after attending an AASP/MA membership meeting at which Erica Eversman spoke. For those of you who have your heads buried in the sand and don’t know her, Erica is an Ohio attorney who, for 20 years, has been a powerful and effective national advocate for collision repair shops as well as for consumers dealing with insurers on auto damage claims. As an attorney advising and representing collision repairers in Massachusetts, I found Erica’s presentation to be inspiring and affirming. It verified to me that most of the problems faced by repair shops in Massachusetts are the same as those faced by the industry throughout the country, and gave me hope that solutions that work in other states may work in Massachusetts, too. Attorney Eversman opened her presentation by addressing an issue that seems to constantly hang over the collision repair industry: Potential antitrust law violations. She emphasized an important point that I have addressed several times over the years, but which does not always sink in with shop owners: Although it may be illegal for competing repair shops to agree to set prices or to mutually agree to follow certain other “anticompetitive” business practices, it is definitely NOT illegal to simply talk about pricing or business practices or to otherwise share information. It seems that every AASP/MA meeting (and every other trade association meeting I have ever attended) begins with the reading of the so-called antitrust guidelines. These include stern warnings to members to refrain from talking about prices and practices. But maybe it’s time to throw the guidelines out the window, and actually start to encourage members to talk about these matters as much as possible - so long as everyone understands that they must still ultimately make their own independent business decisions as to what they want to do. The Basic Prohibitions In response to huge monopolistic railroad and oil companies that controlled their industries with an iron fist in the late 1800s and early 1900s, Congress passed a series of “antitrust” laws. The initial laws made it illegal to enter into any contract, combination or conspiracy “in restraint of trade” or to combine or conspire to “monopolize” trade or commerce. Subsequent federal statutes refined this by making it specifically illegal to engage in group boycotts, agree to divide up geographic territories or customer bases, agree to only use or to not use certain products and agree to not compete for certain work or to “rig 20 June 2014 New England Automotive Report
bids” so that a particular company would be assured of being awarded the contract. The perceived offenders at whom Congress took aim were a few ultra-wealthy individuals and their corporations, who, because of their market influence, were able to artificially set prices and establish markets. If you wanted to send freight by rail across the country or needed to purchase oil to run your manufacturing plant, then the Rockefellers and Standard Oil dictated how much you were going to pay, and you really didn’t have a choice to go somewhere else for a better price or different service. These industry magnates hardly seem analogous to the owners of a couple of small collision repair shops who can wield only very limited influence over their markets. Yet the laws that were enacted to rein in the monopolies are broad enough to often affect the little guys as well. In reality, the actual antimonopoly provisions of the governing statutes really do not have much effect on how body shops operate. It is almost laughable to think that a small (or even a relatively large) collision repair shop owner can control a national or even a local market - or even what happens on their own block. But the “restraint of trade” provisions of the antitrust laws most definitely do apply to body shops: It is per se illegal for any two or more shops to agree to set prices, use only certain parts, use certain procedures, boycott certain suppliers or to divide customers among themselves. Notably, with regard to price fixing, it doesn’t matter whether you are agreeing to set prices at a high or low level, or whether the actual effect is to raise or lower prices - any agreement to charge the same price is illegal. Even an agreement to just set prices within a certain range is taboo. Further, an agreement does not have to be explicit. If two shop owners discuss a particular price that they both think makes sense and then wink at each other and start charging that price the next day, that’s a problem. An enforcement agency or a court can find that there is an implied agreement between them, which is enough to be found to be illegal. If 50 body shops in the same geographic area all raise their hourly Labor Rates to a certain specific dollar amount, or suddenly refuse to do business with a particular supplier within the same month, then there may be “conscious parallelism” which can be used as evidence of an unspoken illegal agreement (even though it does not consistute absolute proof).
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So, Let’s Talk About It It is illegal to agree to fix prices, boycott a supplier or use only certain parts. But there still must be an actual agreement for it to be illegal. Shop owners clearly cannot legally agree with others to set a particular Labor Rate. On the other hand, though, they are allowed to discuss with each other what they each charge for a Labor Rate, what their costs of doing business are, what industry sources say an expected rate of return should be, what their experience is with getting a particular insurer to pay their rate and other such matters. Either on their own or through their trade association, the shops can conduct a statewide or even a local survey of collision repair shops to determine what the experience is of a wide variety of shops as to Labor Rates charged or rates that shops individually target. They can consult as a group with economists, business
them as to their potential exposure if an aftermarket part fails (and what their obligations are to their customers under Massachusetts consumer warranty laws), discuss what extra procedures and how much additional time might be needed to make an aftermarket part fit and inquire about the effect on a vehicle manufacturer’s warranty if an aftermarket replacement part is used in a repair. They are then free to assess the information and make their own individual business decisions about what parts to use or not use. They just cannot agree among themselves what they are going to do on the parts issue. With regard to procedures, shop owners and techs can discuss what their experiences are with procedures that are needed to perform certain repairs. They can look at vehicle and parts manufacturer recommendations or requirements for procedures for certain repairs (as well
the conduct. So if ADALB regulations say that the cost of paint and materials must be determined in a particular manner (or that it cannot be determined in a particular manner), or that fixture rentals must be paid for as part of a repair, then repair shop owners should be educated about these requirements and should take it to heart that these requirements are set by law to be adhered to by everyone. Further, they should insist that all members of their association follow the law. Conclusion Despite what you’ve been told at the beginning of every trade association meeting that you’ve ever attended, please understand that it is not illegal to discuss Labor Rates, parts quality issues or necessary repair procedures. It is also not illegal to conduct surveys on these issues and to distribute the results of these surveys and polls. Talking about these issues
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Despite what you’ve been told at the beginning of every trade association meeting you’ve ever attended, please understand that it is not illegal to discuss Labor Rates, parts quality issues or necessary repair procedures.
advisors, accountants and industry experts as to what is perceived to be a proper Labor Rate and rate of return. They can apply formulas to information collected and establish databases and spreadsheets that distill that information. They can distribute the information that they obtain to other repair shops, auto damage claimants, insurers and the public. The only thing that they cannot do is agree among themselves to charge a particular rate. By the same token, shop owners can talk about their experiences with parts quality, as well as procedures that are needed to effectuate certain repairs. It is illegal for a group of shops to agree to blindly boycott aftermarket parts. But it is not illegal for shops to conduct a survey about the fit and performance of parts, to seek information from industry sources on the difference between particular OEM and aftermarket parts, to have an attorney (or even their liability insurer) advise
as I-CAR recommended procedures), and they can educate each other about what the collision estimating systems say about included and non-included procedures. They can even look at which insurers have agreed to pay for particular procedures and which insurers have not, as well as what the experiences are of repairers in other states when they ask to get paid for certain procedures. Once more, the shop owners can discuss all of this, memorialize it in published materials and distribute it to association members, customers, media sources, government regulators and the general public. But again, they just cannot agree among themselves that they will or will not utilize/charge for a particular procedure. With regard to all of these issues, do not forget about educating each other on what various statutes and regulations may require. Conduct that would otherwise be a violation of the antitrust laws is not a violation if a different law requires
and making the information known is not anticompetitive and not a violation of the antitrust laws. After all, how are you supposed to compete with someone else if you don’t know what the other guy is doing? Let’s start to talk about these issues openly, and in detail. Just don’t agree with others about what you are all going to do with the information that is being discussed.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at
jcastleman@ prclawoffice.com.
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AASP/MA LOCAL UPDATE
AASP/MA MEMBER TAKES ON UNSAFE REFERRAL REPAIRS As reported by AASP/MA President Paul Hendricks (“Standing Up,” NEAR May 2014), association member Rob DelGallo (Factory Collision & Restoration of Weymouth, MA) recently encountered an example of how prior unsafe repairs can negatively impact a vehicle in a subsequent collision. As Hendricks explained, the vehicle (a 2009 Subaru Forester) had been deemed a total loss by Commerce Insurance following a third accident. Previously, the vehicle had been repaired twice by two different Commerce referral shops following two separate collisions. In this third instance, the vehicle owner demanded that the vehicle to taken to Factory. (Although the Weymouth location had been her preferred shop of choice all along, she was previously directed to take the vehicle elsewhere because the shop was not a Commerce referral shop.) An inspection of the vehicle by both Factory and Bob Collins of WreckCheck Assessments of Boston uncovered a number of obvious flaws in the first repair of the vehicle that had obviously been ignored by the second facility. These included a rear D-pillar that had not been replaced, kinks in the rear unibody, rusting welds and lack of paint on inner surfaces. Factory owner Rob DelGallo immediately urged his customer to send a request to the Division of Insurance regarding the improper repairs. The customer disagreed with Commerce that the vehicle was a total loss and requested that the insurance carrier pay the full cost to repair it. Following a personal visit to Factory Collision by Division of Insurance representative Matthew Mancini to review the damage to the vehicle and discuss the situation, the Department ultimately determined that Commerce did not act inappropriately in this instance; the referral shop had repaired the vehicle properly and the vehicle would still be considered a total loss. According to DelGallo, the customer is dissatisfied with the DOI’s decision and has sent an inquiry to the Department for further clarification into how they made their decision. In addition, the vehicle owner has sent a letter to the Attorney General regarding the matter. DelGallo insists that the vehicle would not have sustained such intense damage if it had been repaired correctly the first
time it was hit. “This [vehicle] got hit lightly on the bumper and lightly on the tailgate,” he says. “It got hit so lightly that the taillight didn’t even break, but it caused major damage inside because of the poorly repaired structure from before. Because of this, the taillights were actually stronger than the inner structure...By working in concert with this referral shop, the insurer actually shorted the customer what she was entitled to under the terms of the repair policy and gave her back an unsafe repair.” DelGallo, who had participated in a few Massachusetts referral shop programs in the past, recently removed his shop from the several he had participated with due to their unwillingness to conform to regulations, specifically with regards to paint and materials, and their refusal to offer allowances for necessary procedural items. He feels that this situation illustrates the concerns he has over how vehicles are repaired when insurers have control over the process. “Ten thousand cars go by here a day, and there are many with three different colored panels on them,” he says. “Either someone put it together at a junkyard or it went to a referral shop. There is a Mercedes right across the street from me right now, and I can see a blend right in the middle of the back door!” DelGallo adds that the current financial landscape of the Massachusetts collision repair industry has a lot to do with much of the substandard work currently evident on the road. “Working at a frozen Labor Rate and being stifled for what we can charge for paint-related materials is why you get vehicles where somebody used windshield adhesive to put a roof on instead of structural adhesive,” he opines. “I’d like shops to understand that because of this insurance company control, we’re frozen at this Labor Rate and these repairs are going to start showing themselves because people are keeping their cars longer than their leases or payment schedules. These cars are going to be six or seven years old, and they’re going to come in after a minor accident and get wasted because of a prior repair.”
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FEATURE
FUTURE TECHS
AMAZE AT MA
SKILLSUSA Photos and story by Joel Gausten On May 2, the very best collision repair and refinishing students in Massachusetts gathered at Blackstone Valley Regional Vocational Technical High School in Upton to demonstrate their developing talents during the annual Massachusetts SkillsUSA State Conference. Throughout the day, these promising future technicians wowed a team of volunteer judges through a variety of operations and procedures that kept the level of energy and enthusiasm high. When this year’s competition came to a close, six students proved themselves worthy of special honors. David Rouisse of Pathfinder Regional Vocational Technical High School took home the top prize in the Collision Repair category, followed by Second Place winner Nathan A. Bisson (Westfield Vocational Technical High School) and Third Place performer Paulo Goncalves (Greater New Bedford Regional Vocational-Technical High School). Joseph Wyngowski, a student at Pathfinder, learned the top spot in the Refinishing category, while Assabet Valley Regional 28 June 2014 New England Automotive Report
Technical High School student Hailey Escobar (the subject of a feature in our January 2014 issue) took home a Second Place win. Scott Swenson, a student at SkillsUSA host school Blackstone Valley, completed the list of this year’s Refinishing stars. Rouisse and Wyngowsky will now represent the Commonwealth at the SkillsUSA National Skills and Leadership Conference, scheduled forJune 23-27 in Kansas City, MO. This year’s SkillsUSA ran smoothly thanks to an extensive team of industry volunteers. Judges for the Collision Repair side included Jim Marshall (Marshall’s Auto Body CARSTAR), Jeff Schoenthaler (3M), Matt Tomacelli (Thomas Waldron CARSTAR Auto Body), Seth Elie (Acme Auto Body), Luis Rebello (Check Collision), Dale and Steve Fitzgerald (UTI), Nelson Torres (Commerce Insurance) and Ray Guilbert (retired teacher from Greater New Bedford). Refinishing volunteers/judges included Scott Onanian (BASF) and Auto Body Supplies and Paint (ABSAP) team members Bob Dennis, Scott Attarian and Luis Martinez. Logistical support came from new Blackstone Valley Collision Repair Instructor David Beaudreau and Assistant Instructor Kevin Pires. As in years past, the Collision and Refinish sections of the SkillsUSA event were chaired by Tom Ricci (Body & Paint Center, Hudson) and Ken Robbins (BASF), respectively. Pleased to see such an outpouring of support, Ricci was quick to credit his industry peers for making this year’s competition one of the strongest in SkillsUSA history. “I think it’s commendable for those people to take a day off,” he says. “I’ve had to ask a few people to allow their personnel out for the day, and it’s a long time to be taking somebody away from their business. The volunteers came out of the woodwork this year.” Those who devoted their time to participate in SkillsUSA had an opportunity to witness an industry in transition. This year, both the Collision and Refinish events boasted two female students eager to showcase their talents. “I was blown away,” Ricci says. “I don’t recall there ever being four women in this competition.” “It was nice to see a mix of boys and girls doing the events,” adds firsttime SkillsUSA judge Marshall. “I thought the girls were equally competitive
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to the boys; it was exciting.” Looking back at his first SkillsUSA experience, Marshall was truly impressed by what these young repairers brought to the table. “It’s a very hopeful and inspiring day,” he offers. “You hear about people not getting into the trade, but you know what? There were kids there who are in the trade and trying really hard, and some of them shine well enough that they will have no question over job placement.” BASF Account Representative Scott Onanian makes it a point to be available to help vocational schools in his area. His daughter Nicole won the SkillsUSA National competition twice in the Health Services category, while his son Scott Jr. previously competed in SkillsUSA in plumbing. In his mind, few things compare to devoting a full day to encouraging those who are working hard for a future career in the automotive repair trade. “This is my business and my industry; this is what I do,” he says. “I think the average age of a person in the industry is in the 45 to 46 range, so it’s exciting to see the younger kids coming in and getting involved, and to see the new blood coming in to keep the industry going.” Serafin Cabrel, a longtime collision repair instructor at Greater New Bedford, got his first taste of SkillsUSA in 1987 when some of his students competed in the state contest. After serving for many years as a volunteer, he signed on as eto help manage the 2014 festivities. “I try to emulate what the National [competition] does, so that whoever wins our State competition can go to the Nationals and have some kind of idea of what to do,” he says. Not surprisingly, Cabrel credits the many industry members who take time out of their businesses (and even use vacation days in some cases) to make the competition possible each and every spring. “Those are my heroes,” he says. “Without Tom and Ken stepping up and donating their time and monies to get this great event for our industry, this wouldn’t happen...There aren’t enough words for me to describe the kind of job they do every year.” Cabrel also thanks 3M, BASF and Keystone/LKQ for generously donating supplies for the competition. New England Automotive Report June 2014 29
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FEATURE A regular at SkillsUSA thanks to BASF’s ongoing support of the event, Robbins remains impressed by the dedication that instructors put into training their students. “I’ve been around vocational schools for almost 30 years, and it seems like there is a lot of passion with the instructors now to work with these kids as much as possible to really get them fine-tuned to go out into the real world workforce,” he says. “I think [students] see that they can make a nice career in this industry, and I can see the passion that a lot of them have when they’re talking about cars and paint in general. “Doing this rekindles my spark when I see a lot of young blood coming into our industry,” he adds. “Unfortunately, the age of the average collision repair technician is rising and rising, so I see a lot of hope when I see these kids [compete].” Considering that this issue of New England Automotive Report will be hitting the streets as the current crop of vocational school graduates enter the job market in hopes of finding work in the industry, more than a few SkillsUSA volunteers have plenty of advice to offer these students if they want to establish long and satisfying careers. A first-time SkillsUSA judge, ABSAP Account Manager Luis Martinez encourages students to pay attention to what they are being taught now so they don’t encounter any big surprises once they’re in the real world. “They’ll know that when they’re out in the shop working, some shops are willing to help [and] others say, ‘Sorry, goodbye,’” he says. “That’s when they notice that they should have paid attention a little bit more.” Marshall suggests that students utilize Craigslist as a way to connect to an employer base – especially if their résumé demon-
strates that they have participated in SkillsUSA. “If a business owner sees that a student did this on his or her own above and beyond the regular curriculum, it shows that this kid has some excitement over being in this career field,” he says. Looking ahead, Ricci and the rest of the SkillsUSA organizers are always appreciative of any support they receive from the same industry that will eventually hire the kids who compete every year. He encourages his fellow shop owners to get involved in SkillsUSA and experience a truly unique opportunity to witness – and help grow – tomorrow’s employees. “If anyone hasn’t done this before, it’s one of the most exciting events that I participate in throughout the year,” he says. “It’s exciting to see these students – our potential future technicians. You can’t replace the day’s event.” Founded in 1965, SkillsUSA is a nationwide partnership of students, instructors and industry working together to ensure America has a skilled workforce. The nationwide career and technical education student organization annually serves more than 300,000 high school, college and postsecondary students and instructors in technical, skilled and service occupation instructional programs. SkillsUSA has the active support of more than 600 corporations, trade associations, business and labor unions at the national level. SkillsUSA programs teach leadership, citizenship and character development to complement technical skill training. The organization emphasizes respect for the dignity of work, ethics, workmanship, scholarship and safety. For more information, go to www.skillsusa.org. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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COVER STORY
THE TIME FOR CHANGE IS
AASP/MA Statewide Meeting Recap By Joel Gausten
The national collision repair industry is getting smarter than its adversaries can possibly imagine. For years, a seemingly small number of repairers across the country worked hard to fight back against the growing dominance of the insurance repair industry. From taking insurers to court to receive short-pay reimbursement using the Assignment of Proceeds and other methods to defending their professional desire to return a vehicle back to pre-accident condition using OEM recommended procedures, these shops have pushed for the rights of an entire industry. But now, the days of these brave businesses doing all the work by themselves are over. In her rousing first-ever presentation before AASP/MA members, noted Ohio-based automotive industry attorney Erica Eversman (chief counsel for Vehicle Information Services, Inc. and the founder of the Automotive Education and Policy Institute) offered attendees of the May 13 AASP/MA Statewide Meeting in Westborough a look into some of the ways the industry has become a more collective and cohesive entity ready to stand up for itself against interference by insurance car- riers. Speaking to one of the largest crowds in AASP/MA meeting history, Eversman offered an extensive – and at times highly optimistic – appraisal of the collision industry’s attempts to change things for the better. In her mind, shops throughout the country have been hugely successful in recent times in building a solid communication network across state lines on issues of importance. For example, she cited the email list created by Florida repairer Ray Gunder as one way shops from various regions are staying in touch. “Collision repairers are being much more open with each other in terms of sharing and providing information, pointing out what’s going on and getting good tools,” she observed. “Information is the key. If you can’t pass the correct information on to your customers, employees, legislators or anybody else you’re dealing with, you’re done.” Addressing the kind of information that can be shared
among shops, Eversman devoted considerable time to discussing some of the common misconceptions regarding antitrust laws as they pertain to the repair industry. According to her, general discussions of rates, discussions of procedures charged or even agreements among non-director competitors (who can’t control the marketplace) to fix rates are not illegal. However, agreements among direct competitors to charge artificially high rates are against the law. “[Let’s say] every single collision shop in Westborough agreed that everybody will charge $100 an hour...and that is the flat rate and nobody will go below that,” she explained. “That is the type of thing that is not proper; that is price fixing.”* On the subject of legislation and litigation, Eversman advised attendees to be prepared for a long road if they elect to pursue either option as a way to address their issues, as “legislation and litigation are two of the ugliest things you ever have to deal with.” “You have to make certain that you [are] ready and willing to accept what happens when you go on [that] route,” she explained. “You have slightly more control over litigation, but again, so many things depend on who the judge is, who the attorneys are [and] who you get on your jury.” While on the topic of collision court cases, Eversman informed attendees of a major 164-page lawsuit filed on April 30 by the Pennsylvania-based shop Crawford’s Auto Center against State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide (with USAA, American Family and Travelers identified as conspirators, but not as defendants). The suit alleged that these insurers, through various means including their DRP contracts, “have created an artificial market rate for repairs – the prevailing rate – that has been imposed upon repair facilities throughout the country [DRP and non-DRP], and has enabled Defendant Insurers and Conspirator Insurers to artificially
*For additional insights into antitrust, read this month's Legal Perspective on page 20. New England Automotive Report June 2014 39
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COVER STORY
(L-R): AASP/MA Lobbyist Anne Lynch updated attendees on the association’s current and planned regulatory efforts; Guest speaker Erica Eversman (Vehicle Information Services) with AASP/MA President Paul Hendricks. suppress compensation to repair facilities for insured collision repairs.” The plaintiff further alleges that each of the named insurers have violated the Racketeer Influenced and Corrupt Organization Act (RICO) by requiring their DRP shops to use one of the three Information Providers (AudaExplore, CCC, Mitchell) as a condition of that DRP agreement. According to Eversman, the case has been at least three years in the making and has been filed as “a hopeful class action.” “I have great hopes for what this could mean for the industry,” she said. In addition to crediting email chains and industry publications as great vehicles for shops to gain and share information, Eversman noted the power of trade associations as a way to strengthen bonds between members of a particular trade. “This is the best possible forum that you can have for finding information, airing grievances and finding out solutions,” she said. “Every profession does this.” Later in the presentation, Eversman stressed the need for a nationally funded independent study of the differences between collision and mechanical rates, relaying some of her recent experiences arguing a Federal Court case in the southern district of New York. “Allstate actually brought in three different experts – only one of whom is an economist – to testify that ‘of course the mechanical rate is higher for mechanical shops because they have to have all this sophisticated specialty equipment and have all this training they have to give their people,’” she shared. “Collision repairers are doing mechanical [work] every day! We know that you have to have substantially more equipment and have far more diverse training and substantially greater skills...and the sole distinction is that insurance doesn’t pay for 95 percent of it.” Eversman added that she had difficulty understanding why any shop owner would willingly agree to perform mechanical procedures at collision repair rates. “That absolutely blows my mind that anybody would do that!” she exclaimed. “Why would you ever go backwards once you have your line in the sand?” Eversman concluded her presentation with a brief overview of “bitcoin,” a digital technology that could have a substantial impact on how businesses handle monetary transactions in the near future. According to her, bitcoin is a decentralized form of digital currency (also known as “cryptocurrency”) that is created and held electronically with very minimal transaction fees. “No one controls it,” she explained. “It isn’t printed [or]
based on a bank or government; it is a worldwide currency. One of the things people say is, ‘[Bitcoin] isn’t backed by anything.’ Neither are our dollars today...FDR took us off the gold standard; Nixon in the ’60s took us off the silver standard. The only thing that our paper money is backed by is basically the goodwill and good faith of the US government.” Eversman shared that she first became interested in investigating bitcoin when Overstock.com announced that it would accept it as a form of currency. “Overstock says that its sales increased by [about] $1 million a month by accepting bitcoin,” she offered. “Something they did not expect was the fact that that 85 percent of the people who were paying in bitcoin were new users...Something to think about.” More information on bitcoin is available at www.coindesk.com/ information/what-is-bitcoin/ and www.coinbase.com. More information on Eversman is available at www.vehicleinfo.com. A YEAR OF PROGRESS The May Statewide Meeting concluded with an update by AASP/MA Lobbyist Anne Lynch, who began her presentation by noting that Lynch Associates recently celebrated their first anniversary with the association. Outlining AASP/MA’s legislative plans moving forward, she shared the association’s new philosophy of addressing a variety of issues with numerous state agencies at one time as opposed to focusing energy on one piece of legislation (such as the Labor Rate Bill) again and again. Additionally, with Massachusetts soon to welcome a new governor, AASP/MA plans to launch a number of a new, to-be-announced initiatives at the start of 2015, including asking the Attorney General for assistance in a variety of areas. In the meantime, Lynch remarked that the association’s ongoing work with Commonwealth Automobile Reinsurers (CAR) to address the industry’s issues has been fruitful, adding that the new CAR standards are set to be revealed at the end of this month. Lynch also noted that AASP/MA has also been actively involved in bringing “a tremendous amount of change” to the table in ongoing discussions with state officials over possible revisions to CMR 211 and 212. Away from legislative and regulatory affairs, upcoming AASP/MA events include the annual Golf Outing on June 12 and the 2014 AASP/MA Casino Night at Gillette Stadium on November 15 (see page 18). For more information on AASP/MA, please visit www.aaspma.org or call (617) 574-0741. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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MARK MY WORDS
HIGH-PRESSURE SYSTEMS Several times a year, I find myself wandering around one of two local “big box” do-it-yourself auto parts chain stores. Lately, the high-pressure tactics of their sales people has left me wondering if I should move to on-
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line shopping, or perhaps to another store. Years ago, with ownership of my first car, I began using Castrol Motor Oil. Although we stock numerous brands and weights of motor oil at our
shop, we don’t happen to carry Castrol. Now, for oil filters, we stock Purolator, and I will either use that or an OEM filter. As a result, when the time comes to change oil on either of my two cars, I will often visit one of our local chain stores to buy the Castrol oil. The high-pressure system started very subtly about a year ago, and would usually go something like this: There I would be, holding my fivequart motor oil jug waiting to check out when the salesman advises that I could get a “free” oil filter. I’d reply that I had my own oil filter, but the salesman would insist that I pick one out because it was “really” free. I would grab a common Purolator filter number that I knew was a good mover in our service department to appease him, and off I’d go to the shop to change my oil and drop the free filter in our parts room. Lately, however, the push has become relentless. In my most recent visit, the salesperson insisted that if I did not get the “free” filter, I would actually have to pay more for the oil itself. I questioned this, and evidently, in the store’s latest promotion, the motor oil alone is one set price. However, if you also buy the filter, they reduce the price of the filter and motor oil combined purchase so that it’s actually cheaper than if you had just purchased the oil separately. It took some time for me to grasp the logic, but after nothing short of an argument, I acquiesced and agreed to “buy” the oil filter. As per the promotion, I wound up with the motor oil at a cheaper price. I don’t mind getting a deal, but lately I can’t seem to just walk in and out without a big discussion. (Maybe that’s why I purchase many items on Amazon.com or at Walmart. No discussions - just show me the price and allow me to pay in peace, thank you.) I remember the last time I tried to
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VICE PRESIDENT’S MESSAGE purchase lawn equipment at my local Sears store. I got a diatribe on why I should have purchased the warranty and used a Sears card. It just went on ad nauseam. Now, I just go to sears.com, select my item, pay and wait for the email telling me it’s ready for pick up. In reality, I do believe that shopping locally best strengthens our regional economy. However, I also believe that it’s good for the local brick and mortar stores to not overburden their customers with overzealous high-pressure salespeople. Hmm…I wonder how much that oil is on Amazon…
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Mark Giammalvo specializes in driveability diagnostics at his family business, Sam Giammalvo's Auto Sales & Service, Inc. in New Bedford, MA. He can be reached at samgauto@ samscars.com.
continued from pg. 8 per month! Best of all, WCRN will work with you to craft consumer-specific ad scripts. For more information on taking advantage of this program, please contact Guy Ferrante at WCRN at guy@wcrnradio.com or (508) 792-5803 ext. 225. For me at least, consumer education is a very important topic, and radio is still a very viable medium of distributing information. It’s a method that has been used successfully in the very recent past, with the Right to Repair radio campaign garnering huge awareness in getting the message out. AASP/MA’s MidState Chapter is currently running a test campaign throughout the month of June to check out what kind of traffic can be generated from these ads. We have a total of 60 test commercials running over the course of two weeks during AM and PM rush hour, and we’ve put tracking in place at www.yourrideyoudecide.com to gauge the response. We will soon see the effectiveness of this campaign, which we’re hoping will provide even more data to potential advertisers. We do need a minimum of shops committing in order to keep this special low rate, so I encourage you to seriously consider all the benefits that could be realized with your shop participating in this program. (And keep in mind that a comparable campaign on competitors’ stations could run upwards of $10,000.) I hope to “see you on the radio” soon!
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NATIONAL FEATURE
FORD TECH ADVANCEMENTS SPUR EDUCATION, DEBATE With the much-hyped 2015 Ford F-150 less than six months away from arriving at dealerships, the collision repair industry is working to not only educate technicians on how to handle these high-tech vehicles, but also address concerns over the manufacturer’s philosophy on critical repair procedures. After two years of development, I-CAR unveiled a new sixcredit 2015 Ford F-150 Structural Repair course (FOR06) on June 1. According to I-CAR, the new class “covers all topics on aluminum and dives deep into vehicle-specific repair information. This instructor-led course uses discussion, education and decision-making exercises to equip technicians to properly repair this game-changing vehicle.” “This is a game-changer in the way the collision repair industry approaches training - to be fully prepared with the knowledge, skills and solutions needed before the vehicle debuts,” offered John Van Alstyne, CEO & president of I-CAR, in a prepared statement. “Traditionally, repair solutions are not developed until after a vehicle is publicly launched, leaving a gap in repair readiness. I-CAR commends Ford for its proactive approach, working together with I-CAR to develop a repair solution that addresses complete, safe and quality repairs for the new F150 and doing so before the vehicle enters production.” According to I-CAR, the Structural Repair offering, combined with I-CAR Aluminum Welding Training & Certification, “creates a robust training program to properly and efficiently repair the new F-150 vehicle. I-CAR will deliver this training to the Ford dealer network and independent repairers across the US market prior to vehicle launch, ensuring a new level of industry preparedness.” Although I-CAR maintains a positive outlook on the future of the 2015 F-150, some repairers are finding it difficult to come to terms with the fact that Ford is currently permitting pulling on the body structure of the 2015 F-150 – a process not recommended by aluminum vehicle manufacturers such as MercedesBenz (on the SLS), Audi, Porsche or Jaguar. “On almost every one of the cars, there’s no pulling whatsoever,” offers New England Automotive Report technical writer Larry Montanez. “Audi has some light pulling in only certain areas on the Audi TT because it’s steel and also because there’s some adjustment to the aluminum in the front with some bolting areas, but that’s it. “The newer cars won’t let you repair them the wrong way; they’ll let you know that you can’t do something,” he adds. “But aluminum really lets you know right then and there that you’re not repairing properly. It’s very stubborn; it stays where it wants to stay.” Dustin Womble, general manager at the aluminum-certified Roger Beasley Collision Center in Austin, TX, noted at the April 9 Collision Industry Conference (CIC) in Portland, OR that the aluminum-structured vehicle manufacturer his shop is currently
certified to repair will not allow pulling on their product, citing a concern over breaking the bonding agent on the other side of the car. “Ford [has] a different position on that and they’re willing to risk the fact that the bonding agent could be dislodged on the opposite side of the vehicle,” he said. “You are authorizing us to make a pull on that body structure, is that correct?”
“We are allowing pulling on the body structure, yes,” replied Tom Green, Ford’s body and chassis commodity manager. In addition to questions over pulling, there also exists a question of how shops will be able to see a return on their investment if they pursue repairing the 2015 F-150 or similar vehicles that may appear from other manufacturers down the road. What are the primary differences between aluminum repair and steel repair, and how might those differences affect a shop’s ROI and repair rates? “We can’t project ROI for shops, but we can say in many cases, the new F-150 will actually be easier to repair,” replies Elizabeth Weigandt, dealer communications manager at Ford Motor Company. “The new F-150’s innovative modular structure will significantly reduce time of repair, saving costs. Ford has used aluminum in body parts for years, such as in the hood of the 1997 to 2014 F-150.” Additionally, Weigandt stated that the apron tube of the 2015 F-150 can be repaired without dash removal, the floorpan and rocker panel can be sectioned without requiring complete replacements and the B-pillar does not require disturbing the roof to be repaired. For information on current Certified-Recognized shop programs for the 2015 F-150 (as well as a list of approved equipment specifications), visit www.certifymyshop.com/ford. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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SPECIAL ADVERTISING SECTION
and the Secrets Behind Nitrogen-Based Spray Systems Have you been dreaming about a high-end coating application solution that provides superior finish with significant cost saving of both time and dollars for your shop? Advanced Coating & Application Technologies from Haydell Industries, using third-generation membrane, is a radically innovative and proprietary technology that eliminates every shortcoming of compressed atmospheric air. It offers full control over the three principal problem-causing variables: Heat, moisture/humidity and electrostatic charge. Compressed air has been the standard fluid carrier, but it is fundamentally flawed in heat control, moisture humidity and static electricity: Heat • Compressed Air has variable temperatures that change throughout the day; as a result, the volume of air molecules alters paint density in the fluid carrier. This distorts color, necessitates changes in air pressure and alters chemical reaction rates, especially solvent/water evaporation and drying times. • Nitrogen Technology - Temperature is controlled and constant, allowing for predictable and reproducible results. Controlling heat obviates the necessity of solvents/water to manipulate viscosity. Moisture • Compressed Air allows moisture to initiate and accelerate several coating problems. Moisture alters paint’s drying efficiency, leaves imperfections on the substrate, causes film defects – such as blistering—and is a primary factor of corrosion. • Nitrogen Technology brings the fluid carrier dew point down to anhydrous levels (-58°F/-50°C), eliminating all traces of moisture and water. Static Electricity • Compressed Air generates undesirable static electricity in spray applications, due to the friction-intensive route to the nozzle before application. A net negative charge in the compressed air and fluid cause them to repel one another. In addition, sanding, polishing and tacking add a negative charge to the target substrate. This is clearly undesirable for a process reliant upon the adhesion of one substance to another. This also encourages contaminant attraction of dirt, dust and fibers to the freshly-painted substrate, as well as film defects, causing metallic particles and color pigments to change position and creating inconsistent color and coverage. • Nitrogen Technology uses static electricity by positively charging the fluid carrier. This attracts the negatively-charged target substrate. The main difference between majority pure Nitrogen and Haydell’s Blended Nitrogen is compressed air consumption. Majority pure nitrogen uses 18+hp of the compressor system for one painter using a typical HVLP gun, while Haydell’s Patented Blended Nitrogen uses only 5.8hp of the compressor using the same gun. Conventional compressed air uses 5hp
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with the same gun. When using Haydell’s system, actual consumption drops below conventional compressed air. This is because of Haydell’s perfect fluid carrier design, which allows you to reduce pressure at the gun to achieve superior results. In terms of percentages, majority Nitrogen uses 300 percent more compressed air, while Haydell’s system uses only 20 percent. This represents an average energy savings of over $2,100 per year per painter. In a recent side-by-side comparison of Haydell’s system, Eurosider’s system and Nitro Heat with no ionization, a world-leading car manufacturer chose Haydell as core technology for all manufacturing. The results were that without ionization, no significant results were recorded. Haydell’s system had 20-plus percent more material savings and over 50-percent increase in appearance quality over Eurosider’s Majority pure Nitrogen, thanks to Haydell’s third-generation patented Blended Nitrogen. Overall tests indicated that Haydell’s unit had a return on investment of less than seven months – much faster than that of the next closest competitor. Additional Benefits of Nitrogen Technology • Corrosion Protection - Without protective coatings, bare surfaces weaken and corrode long before their usual life expectancy. Third-generation nitrogen technology greatly reduces failure to adhere and also reduces voids where water, oxygen and other contaminants contact bare metal and initiate the corrosion process. • Particle Size - Reduced particle size in nitrogen technology eliminates many coating film defects and increases dispersion stability. • Fluid Carrier Composition - Each coating is applied with an identical fluid carrier. Haydell’s technology ensures better coverage, higher transfer efficiency, enhanced adhesion and reduced overspray. • Green - Users enjoy a 20-30-percent reduction in VOC emissions, while harmful solvents needed to change viscosity are cut to between 50 and 100 percent. Costs/Labor Savings Repeated testing reveals the technology saves 20–30 percent materials and 30–50 percent in labor. Labor and material savings are due to greater coverage in a single pass with this technology. Greater transfer efficiency and faster drying times significantly reduce the need for a re-do. See It for Yourself To start seeing the quantitative and qualitative proof that the Nitro Tech Spray Paint System will save your company money, provide a superior product to your customers and give you a sure advantage over your competition, call today at (800) 877-4362 for information about viewing a product demo, visit www.haydell.com or email haydell@msn.com.
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2014 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 *** What benefits motivated you to join AASP of Massachusetts?
BUSINESS INFORMATION: Mr.
Mrs.
Ms. ________________________________________________________
Business Representative Name: ______________________________ Business Name ____________________________________________
PERSONAL INFORMATION:
Street Address ________________________________________________________________________________________________________ Street
City
State
Zip
Mailing Address ________________________________________________________________________________________________________ Street
Phone Number (
City
) ____________________________________ Fax Number (
State
Zip
) ____________________________________________
E-mail Address __________________________________________ Web Site Address ______________________________________________ Enrolled By (Name and Address) __________________________________________________________________________________________ MEMBERSHIP TYPE
Name ____________________________________________________
REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop
Nickname ________________________________________________ 2014 ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2015)
Total Due .................................................................................$395.00 SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other)
NEW! Political Action Committee (PAC) Donation ...............$______
Check or Cash Credit Card:
Visa
MasterCard
LIST OTHER SPECIALTIES __________________________________ ________________________________________________________ Just like good tools and equipment, membership in AASP of Massachusetts is a valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services. Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.
Card Number:
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Expiration Date: __________________________________________ Signature: ______________________________________________ Date: __________________________________________________
FOR OFFICE USE ONLY Check Number ________________________________Check Date__________________________Check Amount________________________________ Date Joined ______________________________Member Number ________________________Next Bill Date ________________________________
10 Liberty Square, 5th Floor • Boston, MA 02109 (617) 574-0741 | (617) 695-0173 (fax) | 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 June 2014 57
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BREAKING NEWS continued from pg. 12 determinations between May 18, 2009 and June 1, 2013. Operators affected by this inconsistency in GEICO’s prior business practices will be allowed to appeal those determinations to the Division’s Board of Appeal. Consumers who elect to appeal will have their $50 filing fee reimbursed by GEICO. · Implement new business practices to ensure that operators determined to be at-fault for accidents receive
timely notice of the determination as well as an explanation of their rights to appeal the determination. · Routinely audit the effectiveness of new business practices designed to prevent errors and report the results to the Division over the next two years.
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AUT M TIVE AD INDEX Audi Group ..........................................................51
Massachusetts consumers who have questions about this settlement may call the Division’s Consumer Services Unit toll free at (877) 563-4467.
Axalta Coating Systems........................................4 Bald Hill Chrysler Jeep Dodge Ram ..................17 Balise Wholesale Parts Express........................44 Baystate Chrysler/Jeep/Dodge ........................42 Bernardi Group..............................................30-31
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Best Chevrolet ..................................................IFC BMW Group ..................................................36-37 BMW/Mini of Warwick ......................................40 Clay Subaru ........................................................12 Colonial Auto Group ..........................................52 Empire Auto Parts ..............................................11 Enterprise............................................................27 Ford Group..........................................................50 Future Cure ..........................................................8 Goyette’s Inc. Auto Parts....................................11 Honda Group ......................................................55 Hyundai Group....................................................38 Imperial Chrysler-Dodge-Jeep ..............................9 Imperial Ford ......................................................50 Infiniti of Norwood..............................................24 IRA Group ......................................................14-15 Jaffarian Toyota/Volvo........................................53 Kelly Automotive Group ....................................IBC Linder’s, Inc. ......................................................46 Long Automotive Group ..................................OBC Mazda Group ......................................................45 McLaughlin Chevrolet ........................................27 Mopar Group ........................................................9 Nissan Group......................................................25 Nissan World of Dartmouth ..............................47 PPG ........................................................................3 Robertsons GMC Truck ......................................41 Sarat Ford-Lincoln ..............................................41 SATA ....................................................................26 Sentry Group ........................................................6 Subaru Group................................................34-35 Tasca Group........................................................33 Toyota Group ......................................................48 Toyota of Nashua................................................58 Village Auto Group..............................................56 VW Group ............................................................22 Wellesley Toyota/Scion ......................................42
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