Plus: AASP/MA MidState Chapter Explores the Future of State Regulations N E W E N G L A N D
AUT M TIVE Serving The New England Collision AND Mechanical Repair Industry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
March 2014 U.S.A. $5.95
LAST CHANCE TO JOIN AASP/MA’s Statewide Consumer Education Media Campaign! See pg. 19
SNOW! www.grecopublishing.com
PLOWING THROUGH THE WHITE GOLD OF WINTER
2 March 2014 New England Automotive Report
Visit us at NORTHEAST速 Booth #427
March 2014 • Volume 12, No. 3
CONTENTS
DEPARTMENTS PRESIDENT’S MESSAGE 8 | AASP/MA & Lynch Associates: Working Hard So You Don’t Have to by Paul Hendricks IN THE AREA 16 | AASP/MA Midstate Chapter Explores the Future of State Regulations BENEFIT PROVIDER SPOTLIGHT 18 | National Success, Local Support: Inside G&K Services NEWS FROM TOYOTA 28 | Toyota Launches 2014 Highlander During Sales Boom LEGAL PERSPECTIVE 32 | Show Me the Invoice! by James A. Castleman, Esq. 180BIZ FEATURE 46 | How’s Your Game? by Rick White
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FEATURES 24 | NORTHEAST® 2014 to Reveal the Future of Aluminum Repair, Parts Procurement The region's top automotive show is set to showcase tomorrow's technology today.
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ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 19 | AASP/MA SUSTAINING SPONSORS 55 | AASP/MA MEMBERSHIP APPLICATION 58 | INDEX OF ADVERTISERS
38 | SNOW! Plowing Through the White Gold of Winter A bad winter means good business for the auto body industry. by Joel Gausten
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AUT M TIVE STAFF
MARCH 2014
March 11, 2014 AASP/MA Statewide Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA March 21, 22, 23, 2014 AASP/NJ’s NORTHEAST® 2014 Automotive Services Show Meadowlands Exposition Center 355 Plaza Dr., Secaucus, NJ www.aaspnjnortheast.com for more information
PUBLISHER Thomas Greco (tgp22@verizon.net) MANAGING EDITOR Alicia Figurelli (tgp2@verizon.net) EDITOR Joel Gausten (tgpjoel@verizon.net)
ADVERTISING DIRECTOR Norman Morano (800) 991-1995 (tgp5@verizon.net) ART DIRECTOR Lea Velocci (tgp3@verizon.net) PRODUCTION Sofia Cabrera (tgp4@verizon.net)
PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 Advertising: (800) 991-1995 / FAX: (732) 280-6601 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. Cover image ©www.istockphoto.com/juliaf
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA EXECUTIVE COMMITTEE
APRIL 2014
April 8, 2014 AASP/MA MidState Chapter Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA
April 22, 2014 AASP/MA Board of Directors Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA
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
MEET INDUSTRY ICON CHIP FOOSE STAR OF OVERHAULIN’
at NORTHEAST 2014 courtesy of BASF at Booth #227 Sat., March 22 10am - 2pm* * Autographs and photos with Chip Foose will end promptly at 2pm. Sorry, no exceptions. ** Schedule subject to change.
FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG
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 MIDSTATE CHAPTER MECHANICAL DIRECTOR Justin Forkuo WESTERN CHAPTER COLLISION DIRECTOR Peter Langone WESTERN CHAPTER MECHANICAL DIRECTOR Ed Nalewanski
AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien Lynch Associates, Inc. Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@lynchassociates.net
Please note new phone/fax numbers!
WWW.AASPMA.ORG New England Automotive Report March 2014 7
PRESIDENT’S MESSAGE
AASP/MA & Lynch Associates: Working Hard So You Don’t Have to If you’re like many shop owners out there, you probably feel like you’re being pulled in a variety of different directions at once. There are a number of issues that all need your attention and are all top priority, from customer relations to insurer
interactions, employee retention and management…and don’t forget the small matter of operating a business. Add to all that the importance of being aware and knowledgeable of the goings on in your industry, and actively advocating the issues
that affect you to enact change. You already work hard enough at just maintaining your facility, and it’s difficult enough investing the time to educate yourself on the latest industry news, let alone finding the time to sit down with legislators, speak out at hearings or all the other legwork involved in improving the industry. AASP/MA appreciates the value of your time, and luckily, we’ve got two words that will greatly help make your life easier and more successful: Lynch Associates. The so-called “honeymoon phase” is over, so there is no reason you shouldn’t be acutely familiar with Lynch Associates, the official administrative, lobbying and management firm of AASP/MA. They are constantly working on behalf of our association so that you don’t have to, from organizing fundraisers and sit-downs with the powers that be on Beacon Hill to scheduling member meetings with pertinent, valuable information and everything in-between. In just a few short months, Anne, Pete, Jillian, Colleen and the rest of the team at Lynch Associates have helped our association make huge progress on a number of issues, some of which you can even read about in this issue! Lynch is also currently working on a revolutionary media marketing campaign that will get AASP/MA’s name out there to a vast audience (see last month’s “In the Area” feature, or pg. 19 of this issue, for details). It’s only been a few short months, but our association’s relationship with Lynch is really starting to take us places. If you haven’t made the acquaintance of the great folks at Lynch, I suggest you make a point of saying hello to them at an upcoming member meeting, and thank them for doing the legwork to make this industry a better place for us all. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA President Paul Hendricks is the owner of Hendricks Auto Body in Uxbridge, MA. He can be reached at (508) 278-6066.
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A MESSAGE FROM THE EXECUTIVE DIRECTOR
AASP/MA: The Building Blocks of Success Dear Members,
If you have attended an AASP/MA meeting recently, you have become accustomed to hearing our continuing mission of “building the success of the auto repair industry” - one resolution at a time. In past years, unresolved issues have understandably frustrated the membership, and it is my job to ensure we are working daily to regain the confidence of the industry, and to move toward a more equitable relationship for the profession. This month, we took a MAJOR step forward in that ongoing effort. As you are aware, we met with the Commonwealth Automobile Reinsurers (CAR) in November to identify our areas of concerns within the Performance Standards. One of the most important areas we discussed was Section 4b. Insurers have been relying on this language as a tactic to “resist” a Labor Rate increase. I am thrilled to announce that CAR’s Compliance Audit Committee has approved a change to the regulation by completely eliminating Section 4b and modifying 4c to make the language more reflective of the open market system.
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The regulation will now read: 4. Labor Rate and Times
ARCs must have a plan designed to control labor costs, to seek the most competitive Labor Rates and times, and to determine whether Labor Rates, repairs and replacement times are reasonable and consistent with industry-recognized sources.
The amendments to this language will prevent: (1) ARCs from using the mandate in 4(b) as an excuse to suppress Labor Rates; and (2) will create consistency with the Division of Insurance’s current policies. This is just one of the many initiatives that AASP/MA leadership and members had identified as a critical element of leveling the playing field for a fairly negotiated cost of repair. More importantly, the mandate on the ARC’s plan includes a requirement that the rates, repairs and times are “reasonable and consistent with industry-recognized sources,” thus providing an opportunity for a broader view of the Massachusetts
profession and its relationship to its peers. At the time of this writing, this proposal has already received approval from the Compliance Audit Committee; the change is currently before CAR’s Governance Committee (meeting on February 26,) awaiting their approval, and will then be sent to the Division for final approval. Please continue to look for more information in this magazine, the newsletter, the AASP/MA website and our social media outlets. I would like to take this opportunity to thank the leadership at CAR for their support and assistance in working with us. We continue to look for opportunities to improve the industry, bring fairness to negotiations and improve your business one resolution at a time. Success doesn’t happen in one step; it is a lengthy and multi-faceted process. Each time we succeed, however, we build a better business environment for the entire industry. When will you join this fight for fairness? The larger the voice, the bigger the crowd, the quicker we achieve our goals. Don’t sit on the bench waiting for others to solve your problem; join the team and help us to help you. Go to www.aaspma.org and join TODAY! Sincerely,
Jillian Zywien, Executive Director
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six years. She can be reached at (617) 574-0741 or via email at jzywien@lynchassociates.net.
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IN THE AREA
AASP/MA MIDSTATE CHAPTER EXPLORES THE FUTURE OF STATE REGULATIONS
The regulatory landscape of Massachusetts is about to change, and AASP/MA wants to be involved in the process.
Later this spring, the Division of Insurance will open up two of the state’s most important regulations – 212 CMR 2.04 and 211 CMR 133.00 – for review and possible revision. These documents are of particular significance to the AASP/MA community, as they pertain to standards for the repair of damaged motor vehicles (211 CMR 133.00) and procedures for the conduct of appraisals as overseen by the Auto Damage Appraiser Licensing Board (212 CMR 2.04). In her address to attendees of the February 11 AASP/MA MidState Chapter Meeting in Westborough, Vice President Molly Brodeur noted that the association views the DOI’s upcoming review as an opportunity to examine these regulations and formulate thoughts and opinions on what they’d like to see changed. Association representatives have already met with Insurance Commissioner Joseph G. Murphy regarding many of the group’s issues, while AASP/MA lobbyist Mark Molloy has been consulting with DOI Deputy Commissioner and General Counsel Robert Whitney about the association’s requests and concerns during the regulation review process. “Obviously, we feel it’s important to have a seat at the table for those discussions,” Brodeur said. “Specifically, some of the areas that we’re concerned about relate to the mandated use of aftermarket and salvage parts. That is one of the top topics that we’ve focused a lot of time and energy on to come up with some new wording. Our wish would be that there’s essentially no mandate to use the [aftermarket and salvage] parts. But if we have
to make a compromise, we’ve looked at all of the different OEM warranties that exist in the market right now; the average warranty that’s available is about four years/50,000 miles. We have identified that as kind of a compromise point.” Brodeur reported that members of the AASP/MA Legislative Committee have been going over the current regulations line by line to identify areas where the industry would like to see changes. “We all think we know [the regulations], but when you spend time to actually go through them in a real, meaningful way, you realize that just one word changes the interpretation of the whole sentence or phrase.” In addition to investigating these regulations, AASP/MA representatives have spent several months meeting with as many different state agencies as possible to make them better aware of the collision repair industry’s issues. “We do a very good job of complaining to one another, but we haven’t been very effective at talking to the people who really need to hear from us,” she said. “One thing that Lynch Associates has allowed us to do is get meetings with people that we were not able to in the past.” Of these meetings, a recent gathering between AASP/MA and Commonwealth Automobile Reinsurers (CAR) President Daniel Judson was especially fruitful, yielding positive discussions over CAR’s Performance Standards for the handling and payment of private passenger claims by servicing carriers.
Left: Attorney Jim Castleman offered his professional opinions on the regulations slated for review and possible revision by the DOI. Right: AASP/MA Vice President Molly Brodeur updated attendees on some of the association's recent activities on behalf of the industry. 16 March 2014 New England Automotive Report
“One [Performance Standard] in particular relates directly to cost containment,” Brodeur said. “The line essentially reads that insurers must resist labor cost increases at every opportunity possible…I wouldn’t be at all surprised if there are some positive things happening in the very near future related to the CAR Performance Standards.” A Legal Opinion Later in the meeting, the MidState Chapter welcomed Attorney James A. Castleman, Esq. for a broader discussion on the two regulations pending review and possible revision. Offering his professional opinions on the regulations (and not necessarily those of AASP/MA), Castleman shed light on areas within the text that could be of particular interest to collision repairers. “In general, [the regulations] give you guys some pretty good stuff,” he said. “There may be problems with their enforcement – and that is a whole other issue – but what’s currently on the books isn’t so bad, in my opinion. It helps you a lot – if you could only get the insurance appraisers to go along with it.” Castleman spent considerable time discussing possible revisions to CMR 133.04, the Determination of Damage and Cost of Repair: (1) Appraisers shall specify that damaged parts be repaired rather than replaced unless: the part is damaged beyond repair, or the cost of repair exceeds the cost of replacement with a part of like kind and quality, or the operational safety of the vehicle might otherwise be impaired. When it is determined that a part must be replaced, a rebuilt, aftermarket or used part of like kind and quality shall be used in the appraisal unless: (a) the operational safety of the vehicle might otherwise be impaired; (b) reasonable and diligent efforts to locate the appropriate rebuilt, aftermarket or used part have been unsuccessful; (c) a new original part of like kind and quality is available and will result in the lowest overall repair cost; (d) for vehicles insured under policies written on or before December 31, 2003, the vehicle has been used no more than 15,000 miles unless the pre-accident copndition warrants otherwise; or (e) for vehicles insured under policies written or renewed on or after January 1, 2004, the vehicle has been used no more than 20,000 miles unless the preaccident condition warrants otherwise.
A part is of like kind and quality when it is of equal or better condition than the pre-accident part.
First, Castleman questioned if CMR 133.00 should actually apply to auto body appraisers. “[The regulations] define ‘appraiser’ as any person licensed by the Auto Damage Appraiser Licensing Board,” he explained. “If you read this [definition] literally, it means both insurance industry and auto body appraisers. I don’t think that it should apply to auto body appraisers. Personally, I think the regulation
should be amended to make it clear that it doesn’t apply to auto body appraisers.” Additionally, Castleman expressed his concerns over the line, “A part is of like kind and quality when it is of equal or better condition than the pre-accident part.” “When you’re negotiating with appraisers, I want you to keep that in mind the next time they say, ‘We have to write for an LKQ or an aftermarket [part] because the regulation says that,’” he offered. “My suggestion to you is to say that [the regulation] says the part has to be either equal or better condition than the preaccident part. You can always make the argument – if it’s true – that the aftermarket or LKQ part is not as good as the part that was on the car.” Regarding “reasonable and diligent efforts to locate the appropriate rebuilt, aftermarket or used part,” Castleman feels that this area of the regulations could assist shops in standing their ground on using OEM if locating aftermarket or LKQ parts becomes too complicated. “What happens when [the insurer] picks one [part] that’s coming out of Indiana, another part that’s coming out of Wyoming and a third part that’s coming out of Toronto?” he asked. “To me, maybe that’s not such a reasonable effort.” Castleman also noted the potential warranty issues surrounding the use of non-OEM parts in certain repairs. “Why would the [vehicle] manufacturer stand by an aftermarket part?” he asked. “You may have the warranty of the aftermarket provider, but how good is that compared with an OEM provider?” Interestingly, Castleman suggested that it is possible some Massachusetts auto insurers might actually welcome the opportunity to use more OEM products in vehicle repairs. “If [insurers] think in a particular instance that it’s better to put an OEM part in, or it’s just not worth the aggravation of having to chase down an LKQ part coming out of San Diego or something over a $50 part, many insurers may want the option of not having to specify an LKQ part,” he said. “This might be something that might actually get some sympathy from the insurance industry.” In terms of how existing regulations benefit repairers as currently written, Castleman suggested that the following text regarding the payment of freight for unfit parts should be enforced with greater frequency: When an insurance company specifies the use of used, rebuilt or aftermarket parts, the source and specified part(s) must be indicated on the appraisal. If the repairer uses the source and specified part(s) indicated on the appraisal and these parts are later determined both parties to be unfit for use in the repair, the insurance company shall be responsible for the cost of restoring the parts to usable condition. If both parties agree that a specified part is unfit and must be replaced, the insurer shall be responsible for replacement costs such as freight and handling unless the repair shop is responsible for the parts(s) being unfit, or unless the insurer or repairer otherwise agree. As to such costs, nothing in 211 CMR 133.00 shall preclude an continued on pg. 48 New England Automotive Report March 2014 17
BENEFIT PROVIDER SPOTLIGHT
NATIONAL SUCCESS, LOCAL SUPPORT: INSIDE G&K SERVICES As AASP/MA continues its work to improve the professional lives of the Massachusetts collision repair and automotive service industries, they move forward with invaluable assistance from new benefit provider G&K Services. Centrally located in Minneapolis, G&K Services has provided uniforms and facility products to businesses since 1902. Currently in 93 of the top 100 metro areas in the US and Canada, G&K offers uniform rental services to AASP/MA members where they will come to a shop on a weekly basis, drop off clean uniforms and towels, pick up the dirty uniforms/towels, make any necessary repairs (fix zippers, etc.) and return the items clean and functional. The company also offers facility products including floor mats, protective covers for vehicles and even restroom supplies like soap and lotions.
G&K Services Spokesperson Jeff Huebschen is excited by the opportunity to offer their unique services to the AASP/MA community. “G&K’s uniform and facility service offerings provide tremendous value for automotive service businesses,” he says. “Our uniforms help businesses project a positive image of their brand and also help build employee morale. And G&K’s facility services offerings, like shop towels, floor mats and restroom supplies, help improve workplace safety and cleanliness. G&K’s agreement with AASP of Massachusetts provides association members a great opportunity to enjoy G&K’s high-quality products and industry-leading service, offered at preferred pricing that would normally only be available to very large, national customers.” G&K is currently one of the largest providers of uniforms and facility services in North America, with broad service coverage across the US and Canada. With G&K’s scale, the company is able to offer customers a wide range of uniform styles, colors and sizes, including work shirts, pants and shorts, outerwear, flame resistant garments, high-visibility clothing and executive and business casual apparel for front-office employees. With its strong inventory management and distribution capabilities, G&K is able to quickly meet their customers’ needs when they require replacement uniforms or uniforms for new employees. At a time when shops are dealing with tighter deadlines than ever before, G&K delivers the kind of peace of mind that only a long-running company can provide. “G&K’s long-term success is centered around a strong set of core values, which are shared by everyone across our company,” Huebschen explains. “First and foremost, we recognize that everything we hope to accomplish is made possible only by consistently delivering service excellence to our customers. G&K may have a long history, but we realize we’re only as good as the service we deliver to our customers today. We also strive to operate our business with integrity, which includes a company-wide commitment to ethical behavior, workplace safety and environmental stewardship. Finally, as a service business, our company is only as good as our people. We focus on training, developing and retaining our employees and empowering them to serve customers and succeed to together.” Shops that utilize G&K’s expertise are given the G&K Customer Promise. This is not just a slogan; it’s a personal commitment to each and every G&K customer. “G&K promises our customers that deliveries will be complete and on time, billing will be accurate and predictable and
G&K Services has partnered with AASP/MA to fulfill your uniform and facility product needs. 18 March 2014 New England Automotive Report
PLEASE SUPPORT AASP/MA SPONSORS! AASP-MA Silver Sponsor
1-800 RADIATOR & AC Provides a 2% rebate applied to members’ annual dues.
(800) 914–3802
Contributes 1% of gross sales to your annual dues
(800) GK-CARES
New AASP/MA member benefit provider!
To get more information on becoming an AASP/MA Sustaining Sponsor, please contact AASP/MA Executive Director Jillian Zywien at
(617) 574-0741 / jzywien@lynchassociates.net
LAST CHANCE TO JOIN AASP/MA’S STATEWIDE CONSUMER EDUCATION MEDIA CAMPAIGN!
Consumers are not always aware of their rights, which may cause an insurance company to influence them away from their own trusted body shop. AASP/MA leadership has approved an aggressive anti-steering radio campaign. Our consumer education ads will run on premier radio stations during PRIME TIME hours, such as morning and evening commutes. Over the course of this campaign, our message will total 10 million radio impressions. Every person who tunes into radio in Massachusetts will hear our ad an average of four times. In addition, listeners will be directed to a website outlining all of their rights to a quality, safe, repair covered by their insurer.
WE NEED YOUR HELP! We are funding this enormous effort by offering the auto body industry the chance to be personally identified in these ads. Following each ad, YOU can purchase the opportunity to market YOUR shop. There are opportunities in all geographic locations, so that you can buy in the market where RATES you are located. AASP/MA members will receive special discounting on their ads, but ALL shops are eligible to participate. Are you an industry leader who wants to stand up and be counted? Help us to provide consumers with a better understanding of their rights and buy an ad TODAY!
Don't let the insurance company take another one of YOUR customers away. Act NOW, as these advertising opportunities will sell out. Purchase your ad by calling (617) 574-0741 or fill out the credit card info at right and fax to (617) 695-0173.
Consumer Education Media Campaign Ad Purchase Form
Company: __________________________ Contact: ____________________________ Phone: (_____)_______________________ Fax: (_____) _________________________ Email: ______________________________ Credit Cards Accepted: (check one) M/C___ Visa___ Amex___ Disc___
Card #: _____________________________ Exp. Date: __ / __ CID # ____
(3 #s on back for Visa/MC/Disc; 4 #s on front for Amex)
Name on Card: _______________________ Signature: ___________________________
Billing Address: _______________________ State:_______ Zip Code:____________ Please fax this form back to (617) 695-0173.
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BENEFIT PROVIDER SPOTLIGHT
We proudly represent these manufacturers for New England:
Garmat USA
Visit Garmat USA at NORTHEAST® Booth #340
Spray Booths, Prepstations, Waterborne Systems
CEG
Offering all your equipment needs for your body shop
Chinook II Modified Pit Less Downdraft with Integrated Mechanicals
“NO NEED TO EXCAVATE A PIT!”
THE ONLY FULL LINE COLLISION EQUIPMENT COMPANY IN NEW ENGLAND! www.sprayboothservicesne.com 20 March 2014 New England Automotive Report
We proudly service all makes & models of refinishing equipment throughout New England. Phone: 603-672-6684 Fax: 603-943-5578
that we will meet their needs promptly,” Huebschen explains. “That’s our commitment to service excellence. We want our customers to be able to focus on running their businesses, while we focus on what we do best — taking care of their uniform and facility service needs. “Part of G&K’s Customer Promise is a commitment that deliveries will be complete, on time and in good repair,” he continues. “We have developed several systems and processes to allow us to meet that commitment. With our sevenpoint inspection, we carefully inspect every customer garment to ensure quality, identifying and making needed repairs such as missing buttons or broken zippers. G&K also uses barcode technology to track all of our customers’ uniforms and ensure delivery accuracy. Additionally, each of our route sales representatives is equipped with a proprietary handheld device, which allows them to quickly change orders, adjust invoices and resolve issues right there on the spot with our customers.” And when a shop suddenly encounters a change in the number and sizes of the uniforms they need, Huebschen wants the owner to rest assured that G&K will be there. “We know our customers have a lot going on in their businesses,” he says. “When they sign up for a G&K uniform rental program, we take care of all those details for them. We handle of all the administrative work associated with fitting and sizing employees for their uniforms, ordering replacements for worn-out or damaged garments and outfitting new employees. G&K also offers detailed inventory tracking at an employee and product level, so we can always identify which uniforms have been picked up for laundering and which have been returned to the customer. We offer similar full-service convenience for customers who use our facility service offerings, managing all of their needs for shop towels, restroom supplies, floor mats and other facility supplies.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
For more information on G&K Services, please contact 1-800-GK-CARES or visit www.gkservices.com.
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NORTHEAST® PREVIEW
NORTHEAST 2014 to Reveal the Future of Aluminum Repair, Parts Procurement On March 21-23, AASP’s New Jersey affiliate will give collision repairers answers to some of the industry’s most pressing questions.
As discussed in last month’s issue. AASP/NJ’s upcoming 37th annual NORTHEAST Automotive Services Show, presented with support from Platinum Show Sponsor BASF, will feature hundreds of exhibitors, a full slate of educational seminars and a slew of special attractions unavailable anywhere else in the industry. At the top of the list of technology-specific events at this year’s show is NORTHEAST Gold Show Sponsor Ford Motor Company’s unveiling of the all-new, aluminum-based 2015 F-150 to the northeast region (the product was revealed at the North American International Auto Show [NAIAS] in January). Ford’s 2,000-square-foot display will feature 2015 Ford F-150 collision repair information including design for repairability aspects, enhanced service information, information on training courses and recommended tools and equipment for repairing the vehicle. Ford plans to display a cutaway 2015 F-150 that will feature the improved repair elements of the truck. The cutaway’s details include a look at the separately serviceable lower control arm brackets, the inner fender reinforcements that can be replaced more easily, the floorpan, crossmember and rocker panel sectioning opportunities along with the new b-pillar design that can be replaced without disturbing the roof. To explain these re-design improvements in more detail, Ford Service Engineers Larry Coan and Gerry Bonanni will be conducting daily presentations about the new F-150 in the demonstration area throughout the entire show. Ford also plans to provide attendees with information about Ford Customer Service Division’s (FCSD) collision parts programs, consumer awareness efforts and updates to Ford’s National Body Shop program to support the new 2015 F-150. The National Body Shop program is designed to identify and promote to consumers those collision repair facilities that have the right tools, equipment, training and facilities necessary to repair all Ford and Lincoln vehicles. Information regarding the body shop program will also be presented to attendees in more detail by Melissa Lester, collision marketing manager for FCSD, who will host a seminar regarding the National Body Shop program (and other collision-related programs) on Friday and Saturday.
With the controversial PartsTrader program slated to become available in the Northeast market by the end of March, AASP/NJ is encouraging shop owners in the Commonwealth to attend “PartsTrader Comes to the Northeast: NOW WHAT?” a special panel discussion held 6pm to 8pm on Friday, March 21. The two-hour discussion is being held to assist show attendees in better understanding the concept of insurer-mandated parts procurement, share experiences from those who have already dealt with PartsTrader and detail ways various state associations are looking to address the issue. Moderated by SCRS Executive Director Aaron Schulenburg, the special panel is slated to include participation from Barry Dorn of the Washington Metropolitan Auto Body Association (WMABA), Ed Kizenberger of the New York State Auto Collision Technicians Association (NYSACTA), New Jersey attorneys Joshua S. Bauchner and Mitchell Portnoi and Tom Elder of Auto Body Distributing CO., Inc. (ABD). In addition to a celebrity appearance by Overhaulin’ TV legend Chip Foose (who will be signing autographs on March 22 courtesy of BASF in booth #227) and a live broadcast by “The Car Doctor” Ron Ananian, other key NORTHEAST events include the annual SCRS Northeast Leadership Meeting, the AASP National Board Meeting, a Virtual Spray Painting Tournament, hands-on custom painting by renowned artist Javier Soto, the Natural Glass Corvette Association’s Corvette Car Show and more. MASSACHUSETTS
BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
For more information on NORTHEAST 2014, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show YouTube page (www.youtube.com/user/ AASPNJNORTHEAST) or on Twitter @AASPNJNORTHEAST. Free online registration is available at www.aaspnjnortheast.com/registration.shtml. 24 March 2014 New England Automotive Report
Over 300 booths and 150 vendors across 55,000 square feet of floor space! NORTHEAST® 2014 features industry-leading exhibitors, top-notch training and FRIDAY, MARCH 21 informational updates for the repair community, all centrally located at the 5PM-10PM Meadowlands Exposition Center in Secaucus, NJ 6,000 FREE PARKING spaces available! SATURDAY, MARCH 22 10AM-5PM Save time - pre-register SUNDAY, MARCH 23 10AM-3PM online at www.aaspnjnortheast.com
FREE
MEET INDUSTRY ICON CHIP FOOSE STAR OF OVERHAULIN’ at NORTHEAST 2014 courtesy of BASF at Booth #227 Sat. March 22 10am - 2pm* * Autographs and photos with Chip Foose will end promptly at 2pm. Sorry, no exceptions. ** Schedule subject to change.
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NEWS FROM TOYOTA
TOYOTA LAUNCHES 2014 HIGHLANDER DURING SALES BOOM After a year of tremendous sales growth and customer satisfaction, Toyota started 2014 strong with the unveiling of the all-new Highlander.
The 2014 Highlander is a no-compromise, mid-size, threerow SUV that brings together the best in style, technology, comfort, capability and safety. Its exterior design conveys both refinement and strength, which complements a totally redesigned interior that will raise the bar in its segment. With three-row seating for up to eight, an array of standard features, a host of available in-cabin technologies and increased cargo capacity, the new Highlander offers a nuanced balance of style, comfort and utility. The total package is capped off with three powertrain choices: A fuel-efficient four-cylinder engine, a powerful V6 with a new six-speed transmission that will produce excellent all-around capability and a V6-powered Hybrid Synergy Drive powertrain that delivers fewer emissions and segment-leading miles-per-gallon for a three-row mid-size SUV. Sophisticated and dynamic, the new Highlander and Highlander Hybrid feature a progressive silhouette, a lower roofline
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for improved aerodynamics and sculptured side-door panels. The exterior has grown in length by approximately three inches while width has increased one-half inch, conveying a sleek and strong appearance. From the front, Highlander’s hood merges with a redesigned trapezoidal grille, wraparound headlamps and deeply chiseled fenders for a more aggressive appearance. The length of the profile, from the front fenders to the rear quarter panels, boldly stands out with sculptured wheel wells at the corners, allowing for prominently protruding wheels. The total package is capped off by a newly designed, height-adjustable rear lift-gate with an available one-touch power open/close and driver-selectable memory height settings, and taillights and a bumper that exude style and strength. Highlander’s body structure includes high-strength steel in the front pillars for increased rigidity. Visibility was improved through precise repositioning of the front A-pillars, while the
size of the rear quarter glass has been increased to provide a wider view for the driver and a feeling of openness for passengers. Interior noise reduction is achieved through a 30percent expansion of silencing insulation coverage in the floor areas. Acoustic-type glass is used for the windshield to help reduce noise entering the cabin, and the panoramic moonroof design works to help reduce wind noise, even when the moonroof is open. Vibration is minimized through expanded coverage of the dash silencer, enhancements to body sealing and the strategic placement of three hydraulic engine mounts. Improvements in the exhaust layout have been made for additional noise and vibration reduction. The Highlander is available in four well-equipped grades: LE, LE Plus, XLE and Limited. Each grade offers both frontwheel (FWD) and all-wheel-drive (AWD). AWD gas models will include standard Dynamic Torque Control. All Highlander grades feature a 3.5-liter V6 engine and new six-speed electronically-controlled automatic transmission that offers selectable manual sequential shifting. The LE grade is also available in a 2.7-liter 4-cylinder engine, while the Limited grade is available with a hybrid powertrain. The manufacturer’s suggested retail price (MSRP) for the new vehicles ranges from $29,215 to $49,790. The all-new fuel-efficient Highlander Hybrid arrived at Toyota dealers in mid-February. The Highlander has had four straight years of volume growth, with more than 127,000 sold in 2013 (up nearly six percent over 2012 sales). Four months ago, the Highlander
had its best December sales month ever, taking 8.5 percent share of the segment with more than over 12,000 units sold! Toyota expects to sell 140,000 Highlanders in the US in 2014 — an increase of about 10 percent over 2013. The 2014 Highlander’s arrival on the market is the latest chapter in Toyota’s celebrated history. Last year, the manufacturer sold more than 2.2 million vehicles, an increase of 7.4 percent increase over 2012, with 60 percent of their volume coming from new or updated products. The new Highlander also demonstrates Toyota’s continued commitment to the Mid SUV market. Mid SUVs comprise more than 10 percent of light vehicle sales, which equates to about 1.5 million units, and the segment continues to outpace the industry growth rate. Additionally, Mid SUVs are the fourth most-intended segment overall, and the second most-intended light truck segment (just behind small SUVs.) The segment has grown as consumers have left body-on-frame entries in favor of car-based, unibody alternatives – and more and more families are opting for Mid SUVs over minivans. Additionally, Toyota has a long-standing strong relationship with Hispanic consumers and remains that segment’s brand of choice, with nearly a 20-percent share of the Hispanic non-luxury market and nearly 15 percent of all Toyota sales generated by consumers who self-identify as Hispanic. More information on the Toyota Highlander is available at www.toyota.com/highlander. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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LEGAL PERSPECTIVE
SHOW ME INVOICE! THE
by James A. Castleman, Esq.
Here is a question I frequently receive from collision repair shops: “Can an insurance appraiser require that I show them my parts invoices?” Unlike some other legal issues, this is a question I know the answer to, and for which the answer is not gray, but quite clear: No! Well…that is, at least most of the time. Why is it an issue? Why do insurers still ask to see parts invoices as a condition of paying for a part? Why is it any of their business? And what can a shop tell them when they ask? This article will address these questions. The Typical Scenario As explained to me by shop owners, the issue typically comes up when a shop appraiser is negotiating with an insurance appraiser on a job, usually asking for a supplement. The insurance appraiser tells the shop that they will pay for a particular part, but want to see the shop’s invoice for it first. Sometimes it is more definite or more threatening, with the appraiser saying something like, “I need to see your parts invoice,” “I can’t pay for that without an invoice” or, “My company won’t let me write for that unless I get a copy of your invoice.” I’m not sure what prompts the request for an invoice, since it only occurs some of the time, and only for certain parts. The appraiser has been able to write the rest of the job without needing to see invoices, so what’s so special about this particular part? I have had two inquiries in the past few weeks regarding replacement body stripes, for example, but I have no idea why they should be a particular problem. And I have certainly had the question asked in the past about all kinds of other parts. Do the appraisers think the shop isn’t going to put the part on? Do they think the shop is buying an LKQ part instead of the new OEM part it is looking to get paid for?
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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Whatever the reason, the shop is then put in a difficult position. Do they show the appraiser their invoice and get paid, or do they resist and risk not getting paid? If they don’t show their invoices, are they going to have trouble negotiating with the appraiser on the next job that comes in for their insurer? Do they know the appraiser well, and do they think they are going to cause problems for the appraiser with his or her supervisor if they don’t give them a copy of the invoice? If they give the appraiser a copy of the invoice, can they black out the price that they are being charged or other information on the document? What do you do? The Law There is absolutely nothing in any statute, regulation or Massachusetts legal case that allows an insurer to be able to request or see a repair shop’s invoices for the parts that the shop buys. Insurers are required to pay the reasonable cost of repairing a vehicle to pre-accident condition, using the standards set out in the Auto Damage Appraiser Licensing Board regulations and in Division of Insurance regulations dealing with “Standards for the Repair of Damaged Motor Vehicles.” Those regulations cover what should be paid for a repair in great detail, dealing with issues as diverse as fixture rental costs, paint and materials cost determination, when aftermarket or LKQ parts should be written and how glass damage is to be treated. But there is absolutely nothing in either one of these regulations that says anything about invoices. It seems to me that there are only two primary reasons for which an insurer would request to see an invoice: (1) To make sure a repair shop actually is purchasing and putting on a part the insurer is agreeing to pay for; or (2) To see how much the shop is paying for the part. Neither of these matters should be of any concern to insurers under Massachusetts auto damage claim settlement law. With regard to the issue of a shop actually purchasing a part, for auto damage claims settled under the “Direct Payment” claim settlement system - which today is almost all claims - it does not matter whether a particular part is actually purchased by a shop, or whether it is put onto the car or any repairs are made to the car at all. The only inquiry for the insurer is what
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repairs are needed to put the car back to pre-accident condition. Once the insurer determines that, it is obligated to pay for it. The claimant then has the choice to have all of the repairs made, have some of the repairs made, have the repairs made in a different manner, or have no repairs made and spend the settlement check on a trip to the Bahamas. Appraisers are supposed to be trained experts on what it takes to fix damaged vehicles. In order to get their appraiser’s license, they were required to take an appraisal course, work under an experienced appraiser and pass a two-part intensive appraiser’s licensing exam. They should know what it takes to fix a car, and they should write their appraisals with that in mind. It does not matter who the claimant is, who the repair shop is or if any of the repairs are actually going to be made. Under the applicable auto insurance policy (and under Massachusetts law), a covered claimant is always entitled to have the insurer pay the full cost of repair, subject only to any applicable deductible (and maybe subject to appropriate betterment or depreciation allowances). It is none of an appraiser’s business whether or not repairs are going to be made. If repairs are not made, then the insurer does have recourse. But that is to reduce the future insured actual cash value of the vehicle by the cost of the repairs that are not made. It is not to withhold payment for parts that the claimant’s repair shop won’t give them invoices for. With regard to an appraiser seeing how much a shop is paying for a part, that shouldn’t be any of the insurer’s business either. The appraiser will almost certainly know what the retail price of an OEM part is, as well as the price of any aftermarket parts that they specify and any LKQ parts that they locate. But it is no concern to the insurer what deal or discount a shop is able to negotiate with the part’s supplier. As long as the price the shop charges to its customer is reasonable in the
marketplace, the profit the shop is able to make on the part should be known only to the shop. In looking at the parts price issue, I have often used the analogy of a person going to the grocery store to buy a gallon of milk. The customer comes in with a shopping list, knowing what items they need for the week, or to prepare a particular meal. When they pick a gallon of milk off the shelf, what the customer cares about is the cost to them of the milk and the quality of the milk itself. One customer may shop around at different grocery stores for the best price for a gallon of milk, and another may choose to possibly pay a bit more while shopping at a grocer that they know and trust who will stand behind their products. But neither customer would ever think to ask to see the grocer’s invoice for the gallon of milk, and neither grocer would ever agree to provide their invoice to the customer. Why is the above situation any different from an insurance appraiser who is paying for repairs to their insured’s damaged car? There is a “grocery list” of items needed to repair the car, the insured has chosen his or her collision repair shop for his or her own particular reasons and whatever a part costs the shop is of no concern to either the insured customer or the insurer paying for the repair. What Does the ADALB Say? While the Auto Damage Appraiser Licensing Board has never put anything into its regulations on the issue, and has never issued a formal Advisory Ruling on it, they did consider and vote on the issue many years ago. The ADALB wrote a letter to Aetna regarding the issue, directly on point. Aetna had been asking shops for invoices based on a prior opinion issued by a Division of Insurance attorney who was still thinking in terms of the old Completed Work Claims Form system of claims settlement (when claimants and collision repair shops did not get paid New England Automotive Report March 2014 33
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LEGAL PERSPECTIVE for repairs until all the repairs were completed and the customer and shop had certified to the insurer that the repairs had been completed in full). In a letter dated April 8, 1992, the ADALB addressed the practice of an insurer requesting invoices from shops, and said: “Your company and any other company should immediately cease following such practice. Unless payment is based upon the Completed Work Claim Form (CWCF), invoice requests should be limited to price increases only.” The message seems quite clear. I actually disagree with the ADALB on the right of an insurer to request invoices under a claim being settled under the old “CWCF” system and in regard to parts price increases. I do not believe an insurer has a legal right to request an invoice even in these situations. On the other hand, almost no claims are settled today under the CWCF system, and I can at least understand the rationale behind the request where parts price increases are involved. Further, I think that most shops probably do not have a problem providing invoices to establish parts price increases, either…although perhaps blacking out the wholesale cost to the shop. Some Side Issues Despite it being fairly clear that an insurer cannot legally require a shop to provide it with parts invoices, an exception may
exist for referral shops dealing with their referring insurers. What does your referral shop contract say? Does it say outright that you have to supply parts invoices if requested? Does it say that you have to “cooperate” with the insurer, whatever that means? If so, your position may not be quite so clear. Further, beyond parts invoices, how about insurer requests for sublet work invoices? Does an insurer have a right to see those? I don’t think so, any more than they have the right to see a parts invoice. But how adamant are many insurers on this issue? So What Do You Do? The next time an insurance appraiser requests a parts invoice from you, it will be your choice whether to comply. If you are not a referral shop for the insurer, and particularly if the request is not just to establish parts price increases, then maybe you may want to just say, “No!” Feel free to share this article with the appraiser. And if you want a copy of the 1992 letter from the ADALB on the issue, send me an email and I will be glad to send back a copy. If enough shops take heed, then maybe insurers will stop asking for parts invoices. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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COVER STORY
SNOW! PLOWING THROUGH THE WHITE GOLD OF WINTER by Joel Gausten
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No one in the collision repair industry will ever forget the first two months of 2014. While New England is known to get its fair share of snowfall during the winter months, nothing could have prepared motorists and repairers for what has been hitting Massachusetts over the last several weeks. With a major storm hitting our region every few days since the year began, municipalities continue to deal with a relentless season as the words “polar vortex” leave the lips of legions of frustrated motorists either stuck at home or attempting to maneuver the mess. According to a February 15 report in the Boston Globe, 49.5 inches of snow had landed in Bean Town since December 1, nearly double the average of 27.3 inches over the same period. And with snow once again accumulating outside this writer’s New Hampshire home as this issue of New England Automotive Report gets put to bed, it appears likely that this winter won’t be leaving us any time soon. While virtually every repair professional in the Northeast has a full plate these days, the winter has been especially kind to 290 Auto Body in Worcester. With up to 20 vehicles in his shop at any given time, owner Justin Forkuo has had plenty of work come in lately to keep his 13-person crew nice and busy. While the snow has certainly helped things along at his shop, Forkuo has enjoyed particularly successful first quarters for several years now, crediting his customers’ stress during the holiday season as a major contributor. “Christmas is literally two weeks now – from planning to family to this and that,” he offers. “Even if you get into a collision, you’re not going to fix [the vehicle] then. People don’t report the claims right away; they might be too tied up that time of year and report the claims the following month.” Even with mounds of snow on the roads these days, Forkuo’s best way of attracting new and repeat business is through word of mouth. Since his first day in business, this AASP/MA Board member has built a reputation in his market for always putting the vehicle owner’s needs first.
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“People know that when they want OEM parts, we’re going to put them on their cars,” he says. “We’re not going to use junkyard or aftermarket stuff that isn’t qualified if the consumer does not want it. Customers know that they rank number one at my shop. We work with the insurance company, not for them.” Not surprisingly, many of the region’s top wholesale parts providers have enjoyed increased sales in recent weeks thanks to the ongoing snow. “Collision and suspension parts have increased this winter,” notes Don Cushing, wholesale parts marketing manager at Bald Hill Dodge/Chrysler/Jeep/Ram/Kia, “but we have always been prepared for any winter onslaught that Mother Nature can bring us. Our years of wholesaling and giving our customers the best service that they deserve keeps us at the forefront of customer satisfaction.” Of course, heavy snow alone isn’t the key to Bald Hill’s recent spike in sales; the dealership knew to come into this season prepared. “While weather is the single-biggest factor, having our staff ready and using wise decisions with our delivery personnel have helped us increase our sales,” Cushing says. “Our trucks are ‘out the door’ before the storms or just after cleanup, resulting in minimal down time. Another factor is making sure our inventory levels are maintained with the high demand.” Cushing anticipates that his department’s upward climb will continue through the rest of the season. “We are very pleased to say that all of our market centers are doing well,” he says. “Our customers have told us that we’ve been able to outperform other select vendors during this very busy time of the year. Our consistent focus on customer service and getting them their parts on time as we have promised over the past 30-plus years keeps us at the
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With a steady stream of work hitting the majority of shops in the Massachusetts market – and the upcoming tax season having its own potential for increased revenue – 2014 will likely end up being one of the area’s most productive years ever.
forefront of wholesaling Mopar and Kia parts.” John Lundy, wholesale manager for longtime AASP/MA members Imperial Cars in Mendon, can’t remember the last time a winter was this busy. Despite the regular storms that have hit his area, his department has only experienced one day where it couldn’t deliver parts due to the weather. Thankfully, Lundy and his team were able to move on from the delay without any real impact on their business. “Most of the shops are understanding,” he says. “When we have bad weather during a weekday and a commute, most of the shops are cleaning up; they’re not in the office ordering parts. I don’t get any complaints over undelivered parts when
there’s a snowstorm out there. We have to be safe, too. We don’t want to jeopardize our trucks or have anyone get hurt.” Although the winter of 2014 has certainly provided tremendous opportunities for many in the automotive repair and service industries, reports suggest that the work driven by this particularly strong season is the exception, not the rule. According to a 2013 study conducted by the Insurance Institute for Highway Safety (IIHS), out of the 25 days of the year averaging the most deaths on the nation’s roads from 2007 to 2011, only one was in the winter, and that was New Year’s Day. Of the 25 days of the year with the fewest driving deaths, 23 were in the winter. Additionally, a January 21 NBC News
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COVER STORY
report identified fog – not snow – as the most hazardous road condition for drivers, with nearly 1,580 deaths occurring per 100,000 crashes. Add these figures to the fact that technology has enabled a fair amount of the workforce to conduct business from home in dangerous conditions, and it becomes clear that winter may not be necessarily be the gift it once was. “If anything, some of the severe weather conditions have a negative effect on business,” oipnes Forkuo. “If people are told that it’s going to snow 12 inches, everybody goes to the grocery store before it hits and then goes home. But when it does affect business is when the the storm starts in the middle of the day, because there are commuters who are already at work. People typically aren’t going to stay home if they hear it’s going to snow today, but the weather is clear when they look outside. They still go to work knowing that it’s going to snow that day. Whether they leave early or leave on time from work that day and it’s snowing, they’re still leaving during those conditions. That’s when a lot of accidents happen.” While it remains to be seen if next year’s winter will resemble more common conditions, the collision industry in the Northeast is enjoying the incoming work now. And with a new season around the corner, many predict that the repair orders will keep coming.
“In spring, we typically see estimates that came in from January, February and March for cars that were damaged in an accident, but are drivable,” Forkuo says. “The drivers know that the sun is coming out, and they want to get that car fixed. They waited all winter thinking there was a possibility they could get in another accident. Rather than fixing the vehicle and then getting into another accident and bringing it to us twice, they wait it out. We’ve seen that trend year after year.” “There are a lot of cars out there that have been in accidents and haven’t been repaired yet,” adds Lundy. “I’m hoping that business continues right on through the spring.” Already enjoying a great year, Cushing is excited by what will likely be a fantastic second quarter for his operation. “We realize that tomorrow’s world – whether in an inch of water, a foot of snow or dry pavement – will depend heavily on the maintenance/repair market,” he says. “We’re doing everything we can to find out what our customers’ needs are and what our strengths can be. We have a few programs that we will be rolling out this spring to excite that market.” With a steady stream of work hitting the majority of shops in the Massachusetts market – and the upcoming tax season having its own potential for increased revenue for shops and dealers – it is likely that 2014 will end up being one of the continued on pg. 58
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180BIZ FEATURE
HOW’S YOUR GAME? by Rick White, 180BIZ Business Coach, Management Trainer & Professional Speaker
You are sitting at home on a Sunday afternoon watching your favorite team get beat and give up. Give up?! You jump up and start yelling at the television, “Come on, boys! The game is not over yet! You can turn this around - just play, play, play!!” Now, let me ask you a question: If someone were watching your life right now, would they see you giving up? What would they be yelling at you? You know what I mean, don’t you? Are you riding the wave of success, or drowning in disappointment? Answering yes to either can be very dangerous. If you are riding the wave of success, it is very
tempting to place your life and your business on cruise control. You worked hard and deserve it, right? On the other hand, if you are drowning in a sea of disappointment, you might just decide to throw in the towel and stop trying. It’s hard to keep going, isn’t it? Both of these responses are forms of GIVING UP. The ONLY thing you are entitled to on this earth is opportunity. You never own success; you rent it. And the rent is due EVERY DAY! In order for your business to continue growing, you have got to stay HUNGRY! Once you hit a goal, DON’T STOP!
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Once you hit a goal, DON’T STOP! Make a new - and bigger - goal and keep pushing.
Make a new - and bigger - goal and keep pushing. If you find you fall short of your goals, DON’T STOP! Take the time to figure out why and where you are falling short, and then make the changes necessary to restart your growth. Please realize that how you end today will determine how you attack tomorrow. Let me say that again: How you end today will determine how successfully you start tomorrow! If you end your day, week, or month defeated, not trying and coasting, how enthused are you going to start tomorrow, next week or next month? Now try this: Think back to a day when everything just “clicked and seemed to be going your way.” What was your energy level like when you left work? I’ll bet you were flying so high that you didn’t even feel like you really worked that day. What was your energy level like the next morning? You were ready to take on the world! So the message here is NEVER GIVE UP! Disappointment, mistakes and failure are bound to happen. Getting knocked down is a given. What you DO when you’re down is a choice you make! You can stay down and give up, or you can get up and move on. As Les Brown says, “When life knocks you down, look up, because if you can look up, you get up. And if you can get up, you can stand up. And if you can stand up, you can fight for your dream once again.” Finishing your day, week, month and year with strength and perseverance
About Rick White & One Eighty Business Solutions
Rick White is a managing member of One Eighty Business Solutions (180BIZ), a Virginia-based coaching and business solutions provider to the automotive and truck repair industries. Rick’s clients consider him a trusted advisor, helping them to increase profits and free time while reducing stress. If you would like more business tips and thoughts just like this, please visit our Facebook page at www.facebook.com/180biz. 180BIZ provides affordable, down to earth, one-on-one business coaching with no long-term commitments and a money-back guarantee! To see how we can help you and your business, please email us at info@180biz.com or call (540) 833-2014. 46 March 2014 New England Automotive Report
earns you a much better result than if you coasted or quit somewhere along the way. You start your next day, week, month and year committed and STRONG! The key to your success isn’t your intelligence, physical strength or DNA; it’s your perseverance! It’s NEVER GIVING UP, no matter what! In his all-time classic book, Think and Grow Rich, Napoleon Hill tells the story of R.U. Darby. Darby had an uncle who got “gold fever” during the Gold Rush. As a result, he moved out west, staked a claim and started digging. After a lot of hard work, Darby’s uncle STRUCK GOLD! Not having the equipment to excavate it properly, he hid his find and went back east to raise money for the machinery he would need. Darby got involved, and he and his uncle borrowed enough money to buy the needed equipment. They headed back west to make their fortune. Darby and his uncle went to work, pulled out the first carload of gold and sent it out to have the gold content tested at the smelters. Word came back that they were indeed sitting on one of the richest fields of gold in history. With dollar signs in their eyes, they went to work with a vengeance. Then the unthinkable happened…the gold vein they found had disappeared. No matter how hard or far they dug, they couldn’t seem to find the gold again. Broken, defeated and depressed, they quit and sold their worthless claim - and the equipment - at a loss to a junk dealer. The junk man decided to bring a mine engineer in to consult on the missing gold vein. The engineer did a study and found that the gold vein had shifted due to a fault line. By his calculations, the gold could be found just THREE FEET from where Darby and his uncle had stopped digging. The junk dealer went to work and sure enough, struck the richest vein of gold ever to be found. He made MILLIONS because he sought out help before giving up. Don’t, however, feel too sorry for R.U. Darby. He went back east and paid his family back for their loans. He learned of
the junk dealer’s success, digging just three feet away from where he and his uncle had stopped, and vowed to NEVER give up again. He ultimately went into the life insurance business and made millions himself because he learned to STICK WITH IT AND NEVER GIVE UP! What can you learn from this story? Two secrets: The first is that your gold mine might be a day, a week, a month or
a year away, so you should NEVER GIVE UP! The second is, if you need help, get it!! I challenge you to STAY HUNGRY. Dare to have unreasonable expectations for your life and your business! You have opportunities right in front of you. The question is, will you make the most of them every day? Be GREAT today! MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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IN THE AREA continued from pg. 17
insurer from exercising any available rights of recovery against the supplier.
“The wording is here to protect you guys on these things,” he said. “If you can get the insurers to actually do what’s written here, you might have some protection. You might also find out that insurers are specifying LKQ and aftermarket parts a lot less because they’re getting sick of paying the actual costs of having to pay for some part that doesn’t fit or has to be worked on [to fit].”
Above all, Castleman believes that the following passage in 212 CMR 2.04 will be the most likely to see revisions during the DOI review: Requirement of Personal Inspection and Photographs. 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 appraisal shall also photograph each of the damaged areas.
Castleman contends that this text will likely change in light of the recent introduction of the MetLife PAS Program, which allows for digital photography of damage in place of a hands-on inspection of the vehicle. Elsewhere in the regulation, considerable discussion was dedicated to the ADALB’s current ability to oversee body shops. The current regulation states as follows:
Repair Shop Appraisal: All repair shops shall maintain one or more licensed appraisers in their employment for the purpose of preparing motor vehicle damage appraisals. No staff or independent appriser shall knowingly negotiate a repair figure with an unlicensed individual or an unregistered repair shop.
Despite the above wording, Castleman questioned the ADALB’s ability to penalize collision repair facilities. “At the behest of the Division of Insurance, [the ADALB] has in recent years taken the position that the Board itself does not have authority over insurers; they only have authority over appraisers,” he explained. “If they’re going to take that position, I think this whole paragraph has no applicability because they also have no authority over body shops. How can they force a body shop to have a licensed appraiser if they have no way to penalize body shops?” As AASP/MA continues to consider ways to address possible changes to state regulations, Castleman advised attendees to remember that any rules determined may not apply in cases where shops and insurers have entered into their own partnerships and agreements. “One of the things that these regulations say in a lot of places is ‘unless there is a different agreement between the insurer and the body shop,’” he said. “In a lot of cases, your referral contract will be different from what’s in this regulation…If you’re a referral shop for an insurer, you really don’t have any recourse because you’re going to have to do what they ask if you want to stay a referral shop.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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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 ***
BUSINESS INFORMATION: Mr.
Mrs.
Ms.
Business Representative Name: ______________________________
Business Name ____________________________________________
What benefits motivated you to join AASP of Massachusetts? ________________________________________________________ PERSONAL INFORMATION:
Street Address ________________________________________________________________________________________________________ Street
City
State
Zip
City
State
Zip
Mailing Address ________________________________________________________________________________________________________ Phone Number (
Street
) ____________________________________ Fax Number (
) ____________________________________________
E-mail Address __________________________________________ Web Site Address______________________________________________
Enrolled By (Name and Address) __________________________________________________________________________________________
Name ____________________________________________________
MEMBERSHIP TYPE REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other) 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.
Nickname ________________________________________________ 2014 ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2015)
Total Due .................................................................................$395.00 NEW! Political Action Committee (PAC) Donation ...............$______ Check or Cash Credit Card: Card Number:
Visa
MasterCard
__________________________________________
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@lynchassociates.net 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 March 2014 55
56 March 2014 New England Automotive Report
New England Automotive Report March 2014 57
COVER STORY continued from pg. 41
most productive years ever for the Commonwealth collision repair industry. And considering the many AASP/MA-driven legislative and regulatory efforts discussed throughout this magazine, it looks like this year could also end up providing shops with the financial re-
wards they so rightly deserve for all of their hard work. The snow is just the beginning.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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AUT M TIVE AD INDEX 180Biz ................................................................47 Audi Group..........................................................54 Axalta Coating Systems........................................4 Bald Hill Chrysler Jeep Dodge Ram ..................35
Balise Wholesale Parts Express ..........................6 Baystate Chrysler/Jeep/Dodge ........................51 Bernardi Group ............................................30-31
Best Chevrolet ..................................................IFC BMW Group ..................................................36-37 BMW/Mini of Warwick ......................................13 Clay Nissan of Norwood ....................................41
Clay Subaru ........................................................57 Colonial Auto Group ..........................................21 Empire Auto Parts ..............................................11
Enterprise ..........................................................34 Ford Group..........................................................23 Future Cure ........................................................58 Goyette’s Inc. Auto Parts ..................................20
Honda Group ......................................................40 Hyundai Group ..................................................49 Imperial Chrysler-Dodge-Jeep ..........................26
Imperial Ford ......................................................23 Infiniti of Norwood..............................................56 IRA Group ......................................................14-15 Jaffarian Toyota/Volvo ......................................22 Kelly Automotive Group ....................................IBC
Linder’s, Inc. ........................................................8 Long Automotive Group ..................................OBC Lundgren Honda ................................................11
Mazda Group......................................................50 McLaughlin Chevrolet ........................................51 Mopar Group ......................................................26
Nissan Group......................................................43 Nissan World of Dartmouth ..............................34 NORTHEAST™ 2014 ..........................................25
PPG........................................................................3 Robertsons GMC Truck ......................................57
Sarat Ford-Lincoln..............................................53 Sentry Group ........................................................9 Spraybooth Services ..........................................20
Subaru Group ..............................................44-45 Tasca Group........................................................42 Toyota Group ......................................................52 Toyota of Nashua ..............................................48
Visit us at NORTHEAST® Booth #100-104
Village Auto Group..............................................12 VW Group ............................................................27 Wellesley Toyota/Scion ......................................10
Woburn Jaguar ..................................................53
58 March 2014 New England Automotive Report