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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
October 2014 U.S.A. $5.95
www.grecopublishing.com
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CONTENTS
October 2014 • Volume 12, No. 10
DEPARTMENTS 7 | Greco Publishing Announces Hiring of Managing Editor Jacquelyn Bauman VICE PRESIDENT’S MESSAGE 8 | Where Do We Go From Here? by Molly Brodeur IN THE AREA
16 | Fun-Filled MidState BBQ Raises Thousands for Auto Education SPONSOR SPOTLIGHT 18 | Enterprise Rent-A-Car Provides Industry Leadership & Key AASP/MA Sponsorships MARK MY WORDS 20 | Good Customer Service? What’s That? by Mark Giammalvo LEGAL PERSPECTIVE 24 | Has the ADALB Ever Read the Open Meeting Law? by James A. Castleman, Esq.
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FEATURES 28 | The 5S Method to Lean Collision Center Implementation by Judy Lynch 34 | FRUSTRATION & LITIGATION: The Insurance Industry Gets Served by Joel Gausten 40 | PERSEVERANCE PAYS: AASP/MA Thrives at Statewide Meeting by Joel Gausten
180BIZ FEATURE 49 | The Power of Focus by Rick White
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ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 11 | CAR STANDARDS NOTICE 12-13 | AASP/MA ANNUAL CASINO NIGHT NOTICE
19 | AASP/MA SUSTAINING SPONSORS 61 | AASP/MA MEMBERSHIP APPLICATION 62 | INDEX OF ADVERTISERS
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greco publishing Announces hiring of Managing editor Jacquelyn Bauman Thomas Greco, President of Thomas Greco Publishing Inc., publishers of New Jersey Automotive, New England Automotive Report, Hammer & Dolly, AASPMN News and Wisconsin Automotive News has announced the hiring of Jacquelyn Bauman as the company’s new Managing Editor. Bauman will be taking over for Alicia Figurelli, who was promoted to Vice President/ Jacquelyn Bauman Director of Sales of the company this past August. A 2013 graduate of Fairleigh Dickinson University, Bauman will oversee editorial in all Greco Publishing publications and will also actively participate in the management of the NORTHEAST® Automotive Services Trade Show. “We are extremely excited to have Jacquelyn become a part of the TGP staff,” Greco says. “Her background and skills are a perfect fit for our company. We have a great team in place and are looking forward to continuing our role as one of the country’s top automotive repair publishers and trade show management companies.” Jacquelyn Bauman can be contacted at: ph: 973-667-6922 e: Jacquelyn@grecopublishing.com
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AUT M TIVE STAFF PUBLISHER
ART DIRECTOR
Thomas Greco (thomas@grecopublishing.com)
Lea Velocci (lea@grecopublishing.com)
DIRECTOR OF SALES
MANAGING EDITOR
Alicia Figurelli (alicia@grecopublishing.com)
Jacquelyn Bauman (jacquelyn@grecopublishing.com)
EDITOR
PRODUCTION
Joel Gausten (tgpjoel@verizon.net)
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
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 ©www.thinkstockphoto.com/Digital Vision, www.thinkstockphoto.com/Pixsooz; pg. 5, 34: www.thinkstockphoto.com/Oksana Kostyushko; pg. 17: www.thinkstockphoto.com/ThinkStock Photos.
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
Save the Dates for
NORTHEAST® 2015! MARCH 20, 21, 22
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
WWW.AASPNJNORTHEAST.COM
Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org
Proudly Presented by
WWW.AASPMA.ORG New England Automotive Report
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VICE PRESIDENT’S MESSAGE
where dO we gO FrOM here? The following message may come off a little harsh, and I’m OK with that. I don’t mean to offend anyone, but if those reading my message are fired up by what I’m about to say - or better yet, are inspired to help me do something about the following issue - then I’ve succeeded in communicating to our membership this month. I speak to you this month from a place of frustration, from a place of wanting to do the right thing and, frankly, from a place of not quite knowing what our next step should be. As you will read on page 16, our 2014 MidState Chapter BBQ on September 5 was a great success. We experienced a huge outpouring of support from several shops in the area, and after a night of prizes, fun, great food (courtesy of Firefly’s) and the generous support of our vendor sponsors, AASP/MA raised $5,000 for the association’s tool grant partnership with the Collision Repair Education Foundation (CREF). What’s unfortunate is that, while the event was organized, promoted and created in order to help vocational schools and repair students, not one school was in attendance at this year’s BBQ. And it was not for lack of trying on AASP/MA’s part. We invited schools from across the state, offering four free BBQ tickets to two instructors and two students from each school. Our intent was to let these schools and students into our process and enjoy the event alongside association members. We even invited the administrators from the schools. However,
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despite emails, faxes and personal phone calls, we received not only zero attendance, but zero feedback as well. The BBQ was a success and all who attended had a great time, but where do we go from here? How can we continue to promote an event that’s supposed to be “for the kids” when it doesn’t seem like the kids want any part of it? How can we continue to foster an era of mutual communication and understanding between the industry and the vocational school system when we can’t even get them to return a phone call? Even the presence of a couple of students or teachers would have made a huge difference in helping to illustrate what the event is really all about…if for no one else, to our sponsors, who offer us their support and generous contributions year after year. AASP/MA had what I thought was a successful roundtable discussion meeting with several local vocational school instructors back in April. There, we agreed that a mindset of proactive, interactive and open communication was essential in promoting the goals of all parties involved. It’s only a few short months later, and I feel like this attempt at interaction is becoming more and more onesided. Even the presentation of our 2014 tool awards showed disengagement - of the five schools that were selected to receive cash for their classrooms, two didn’t even show up to collect their prize. I honestly don’t get it. As I make plans to come on as AASP/MA President in
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November, a major part of my mission is going to be figuring out a way for the collision repair industry to once and for all have a meaningful, mutually beneficial connection with our schools. How exactly we will make that vision into a reality remains to be seen. The average age of Massachusetts collision repairers in 2014 is over 50, and it’s critical that we are attracting and retaining viable new faces as more and more industry members begin to leave the field. The difficulty lies not only in properly illustrating that fact to the future technicians, but also in getting instructors and administrators to take the same initiative that we are trying to in placing these kids. I should note that as I was sending this message off to NEAR staff, I was fortunate to have a lengthy discussion with Ken Stukonis, an instructor from Assabet Valley Technical High School. While I am excited and hopeful to report that we have begun a meaningful dialogue in addressing the issues presented in this message, and that Ken has expressed a commitment to making sure AASP/MA’s grant money is being appropriated correctly, it’s not enough. Don’t get me wrong; the engagement of one instructor is terrific, and more than what we’ve had lately for sure. And I definitely appreciate Ken reaching out. But this should be an ongoing, widespread discussion happening with all of our vocational instructors. Hopefully, my next message to you will showcase more involvement as we move forward. I welcome readers’ comments, feedback or suggestions on how we can better bridge the communication gap between the schools and our industry. Together, hopefully we can address this disconnect and reignite the focus on promoting the collision repair industry as a great place to work. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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
AASp/MA negotiations Take hold Dear Members, Over the past year, AASP/MA, under the direction of the Board, has delivered one particularly significant improvement to the Commonwealth Automobile Reinsurers (CAR) standards. Additionally, we have seen real traction with some of our legislative and regulatory initiatives, created better educational seminars and
programs, expanded our communication and information sharing with our allies and educated our new partners. We have positioned ourselves as a major voice within the issues affecting our members. As you are aware, over the last year we have been working with CAR on an interim change to their Performance Standards. It brings me great
pride to announce that after months of negotiations and overcoming several approval processes within CAR and the Division of Insurance, our language changes were finally approved on September 4. Please find the full notice regarding on the approved changes on page 11 of this issue. I would like to thank the Legislative Committee and my colleagues at Lynch Associates for their leadership and persistence in getting this done. If you have been following our reports on the ADALB meetings, you may also know we have filed complaints against the licensed GEICO appraisers operating drive-in claim centers in body shops, which is unlawful in Massachusetts. Following the last ADALB meeting’s executive session, Chairman Cox suggested that the Board needed more time to review our complaints. Regardless of the decision of the ADALB, we are moving forward with our complaint against GEICO with both the Division of Insurance and the Attorney General regarding their own areas of enforcement. The next ADALB meeting, where we expect our complaints to be discussed, was slated at press time to be held on September 23 at 9:30am. Members are encouraged to watch the videos on the members’ only section of our website. Many members have recently contacted us in regards to the strict enforcement of the laws and regulations relative to the removal of vehicle inspection stickers. In response to our members’ requests, we have drafted a continued on pg. 55
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@aaspma.org.
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COMMONWEALTH OF MASSACHUSETTS Office of Consumer Affairs and Business Regulation DIVISION OF INSURANCE 1000 Washington Street, Suite 810 • Boston, MA 02118-6200 (617) 521-7794 • FAX (617) 521-7475 TTY/TDD (617) 521-7490 http://www.mass.gov/doi
DEVAL L. PATRICK
GREGORY BIALECKI
GOVERNOR
SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENT
BARBARA ANTHONY UNDERSECRETARY
JOSEPH G. MURPHY COMMISSIONER OF INSURANCE
Proposed Amendments to Performance Standards for the Handling and Payment of Private Passenger Motor Vehicle Insurance Claims by Assigned Risk Companies and to Performance Standards for the Handling and Payment of Commercial Motor Vehicle Insurance Claims by Servicing Carriers Docket No. C2014-01 _____________________________________________________________________________ Order Commonwealth Automobile Reinsurers (“CAR”), established pursuant to Massachusetts General Laws Chapter 175, §113H to administer the residual market for motor vehicle insurance, is required by statute to prepare performance standards for the handling and payment of motor vehicle insurance claims. It then submits those standards to the Commissioner of Insurance (“Commissioner”) who, after a public hearing, may approve or modify them. Since 2007, CAR has prepared separate performance standards for commercial and for private passenger motor vehicle claims. By letter dated June 26, 2014, CAR requested the Commissioner’s approval of proposed amendments to the performance standards for private passenger motor vehicle insurance claims and for commercial claims that the Governing Committee had approved on June 18, 2014. On July 2, 2014, the Commissioner issued a notice scheduling a hearing on August 7, 2014 to afford interested persons an opportunity to provide oral and written comments regarding the proposed amendments to the performance standards. One section of each set of performance standards addresses auto physical damage and property damage liability claims. Subsection 4 of that section relates to labor rates and times. The proposed revision consolidates paragraphs a and c of subsection 4 into a single paragraph a, and eliminates paragraph b. Instead of language requiring carriers to have a plan designed to control labor costs, the proposed amendment requires them to have a plan designed to seek the most competitive labor rates and times and to determine whether labor, repair and replacement times are reasonable and consistent with industry-recognized sources. At the August 7, 2014 hearing, Daniel Judson, Esq., President of CAR, appeared on its behalf. No other person submitted written commentary or made a statement at the hearing. Mr. Judson explained that the proposed amendments responded to concerns that the current language requiring carriers to “resist labor rate increases” and “control labor costs” is no longer relevant in an era of managed competition. The amendment recognizes that cost control in this market is achieved through competition among repair shops and that industry-recognized sources provide data points for determining whether labor, repair and replacement times are reasonable. After due consideration, the Performance Standards for the Handling and Payment of Private Passenger Motor Vehicle Insurance Claims by Assigned Risk Companies and for the Handling and Payment of Commercial Claims by Servicing Carriers approved by the CAR Governing Committee on June 18, 2014 are hereby approved.
September 4, 2014
______________________ Jean F. Farrington Presiding Officer
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IN THE AREA
Fun-Filled MidState BBQ Raises Thousands for Auto Education On September 5, more than 150 members of the AASP/MA community gathered for the MidState Chapter’s annual BBQ at the Hudson Elks in Hudson. Helped along by fantastic late-summer weather and a bevy of great prizes, the much-anticipated event raised $5,000 for the AASP/MA Tool Grant in partnership with the Collision Repair Education Foundation. Early in the evening, the family-friendly party included a special presentation by Animal Adventures, who wowed the kids with guests both furry and scaly. Later, all of the attendees reveled in unforgettable food (courtesy of Firefly’s) and camaraderie while taking in great tunes by DJ/emcee Tony Nesbitt. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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AASP/MA AND THE MIDSTATE CHAPTER THANKS THE FOLLOWING SPONSORS/ DONORS FOR THEIR GENEROUS CONTRIBUTIONS TO THE FESTIVITIES: Venue Sponsor: Long Automotive Dinner and Dessert Sponsors: Bald Hill, Long Automotive, Balise Children’s Meal Sponsor: Imperial Cars Children’s Entertainment Sponsor: Marlborough Nissan Children’s Raffle Sponsor: FinishMaster Live Auction Donor: Wagner Motors General Raffle Sponsor: AASP/MA Western Chapter Grand Prize Raffle Sponsors: Imperial Cars, Bernardi, J & R Auto Body Supply, Wellesley Volkswagen, Linders Auto Parts General Raffle Sponsors: Boston Bumper, Sherwin-Williams, Hertz, NAPA Hudson, NAPA Marlborough, BASF, Don Kennett Paint Supply, Worcester Sharks Direct Grant Donors: CPRAX Marketing, Relco Products
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SPONSOR SPOTLIGHT
As part of the largest car rental company in the world, the Enterprise Rent-A-Car brand always looks for opportunities to strengthen longstanding business partnerships as well as to underscore the importance of industry leadership and integrity. To that end, Enterprise not only supports the annual AASP/MA Golf Outing, but now they are also sponsoring the 2014 AASP/MA Casino Night – scheduled for November 15 at Gillette Stadium in Foxboro. “We are extremely excited to join our colleagues and friends in the collision repair industry at this special event,” says Greg Rusnak, regional vice president for Enterprise in Boston. “It is truly an honor for us, and we look forward to helping make this year’s Casino Night the most successful one yet.” With more than 5,500 airport and neighborhood offices located within 15 miles of 90 percent of the US population, the Enterprise Rent-A-Car brand is able to provide replacement rentals to customers of collision repair centers all around the country. In fact, there are more than 100 Enterprise Rent-A-Car locations in neighborhoods and airports in Massachusetts alone. Rusnak notes that Enterprise’s strong relationship with AASP/MA reflects the company’s neighborhood-network heritage and their collaborative approach to working with collision repair centers. “It’s no secret that Enterprise established the home-city car rental business model more than 55 years ago,” he said. “But many people don’t realize what kind of behind-the-scenes efforts have gone into making our grassroots network such a sustainable success in thousands of communities.” For example, in 1999, Enterprise Rent-A-Car developed the Automated Rental Management System (ARMS) in response to feedback received from focus groups and the collision repair industry. Along the way, Enterprise continued to invest substantial resources, initiative and intellectual capital – and in 18 October 2014
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2007, the US Patent and Trademark Office issued a patent and trademark1 for ARMS. Then, five years ago, Enterprise began sharing this information – at no cost – with collision repair centers in an effort to highlight below-market-average cycle times and provide critical performance data for consistent industry-wide comparisons. These length-of-rental metrics quickly gained traction as a means to track and improve cycle time. As a result, both CollisionWeek and Mitchell’s Industry Trends Report2 have begun publishing the Enterprise data as a comprehensive industry resource. Today, ARMS data helps collision repair centers increase operating efficiencies, enhance customer service and streamline communications with insurance companies and customers. The ARMS digital management platform enables repair centers to book rental reservations and send vehicle status updates to insurance partners and customers. In addition, repair centers can track, measure and forecast labor needs and generate monthly reports through ARMS. Recently, the importance of such metrics was highlighted and summed up in a comprehensive SearchAutoParts.com editorial3: “You need to know your score in real time so you can adjust your strategy.” Although ARMS clearly helps decrease the duration of rental periods, Enterprise has embraced the product as an opportunity to increase customer service and value for the long term. To learn more about Enterprise Rent-A-Car, visit www.enterprise.com. To learn more about the ARMS Automotive Suite, visit www.armsautosuite.com, which includes a privacy policy4. To sign up for training or other resources, please email Amy Blair (Enterprise technology expert for the Insurance Replacement Division) at amy.c.blair@ehi.com. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
1 http://www.enterpriseholdings.com/pressreleases/erAC_ArMS_patent_release_Sept07.pdf 2 http://www.mitchell.com/assets/pdf/itr-vol-14-no-2-spring-2014-apd.pdf 3 http://www.searchautoparts.com/abrn/opinion-commentary-collision-repair/trackperformance-real-time-maintain-drps 4 https://www.armsauto.com/arms_auto/privacy.jsp
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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! New England Automotive Report
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MARK MY WORDS
GOOD CUSTOMER SERVICE? WHAT’S THAT? I’m not sure if I’m the only one that is having a hard time finding any customer service lately, let alone good customer service, but it certainly feels that way. First case in point: This past weekend, I decided to compare some rates with two local banks that we use, Santander Bank and Citizens Bank. I knew from a recent visit at Santander that they have an FDIC-insured Money Market Account (MMA) available, yielding 0.90 percent (or 90 basis points, as the financial industry likes to say) for accounts with an initial deposit of $10,000 or more. I know, this is a terribly low yield compared to years ago, but by today’s standards, it’s pretty high considering the 10-Year US Treasury bond is paying under 2.5 percent. Santander also had several varying CD rates available, although I found a higher-paying CD rate at the giant online bank, GE-Capital. It was late Saturday afternoon and I figured my local Citizens branch was most likely closed, so I looked online to see their rates. On the Citizens Bank website, I was able to see that the savings MMA Rates were not disclosed, but that an 800 number was given to call for the information. This is where things got interesting. I began talking to a pleasant banking representative. The call started off with the usual kerfuffle as they were unable to find my account number (which I’ve had there for
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at least 10 years) but, after rearranging a misplaced dash, we were able to get things going. When I asked him what the bank’s current CD and Money Market Rates were, under the reasonable assumption that this is the kind of information a customer service representative for a bank would know, I was told, “I’m not sure, but your current account rate is 0.3 percent.” As politely as possible, I told the bank representative thank you, and that I was well aware of what my current rate was, but I was wondering what their CD and Money Market Rates were. The bank representative stated that he was not sure that he had access to the CD and MMA rates. (Read: I’m not sure what a brake job will cost if you ask, but just bring me your car and we’ll get it done). I was then placed on hold for several minutes while the representative tried to find an answer for me. Finally, I was told that they had an MMA/CD that was set at 0.70 percent for a minimum deposit of $25,000. That answer was a little more towards what I desired to know, but was ambiguous. I asked the representative what an MMA/CD rate was, as this combination of accounts seemed unusual. Was the 0.70 rate the CD rate? Or was it the MMA rate? After all, CD money is a “time deposit,” as the money is tied up for a specific amount of time, while MMA money is a “demand deposit” and the rates are normally lower, as this money is
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not tied up as banking reserve. The representative didn’t know. Ultimately, I thanked him for his time and was left feeling more confused than before I had called. Second case in point: On this past Wednesday, I attempted to log onto the Internet only to find that I could not get online. I did the usual: Reboot computer, reboot modem (Verizon DSL), reboot wireless router. Still no Internet connection. Normally, when all is working correctly, my DSL router lights are all lit. Today, that was not the case. My “ready” light was out. In the past, when this light had gone out, the problem had been a DSL outage in the area. I figured it was time to call the Verizon 800 number. (I love 800 numbers, I really do! I just don’t always get the answers I want.) After the usual tango with one of those vacant and frustrating automated attendants, I got through to an actual representative. First, he asked the usual particulars: Name, account number and so forth. I briefly explained my dilemma to the gentleman assisting me and informed him that the last time my ready light was out, there was a DSL outage in the area. Disregarding my previous experience with this issue, the representative had me go through a tedious process of disconnecting and reconnecting every piece of machinery I own. Somehow, the agent derived that the issue was with my modem and told me a replacement would promptly be sent to me, regardless of the fact that, after all was said and done, my ready light was still not on. Although I reminded him of my previous experience with this issue, he was certain that my modem was the problem. The agent had me write down an eight-digit reference number for the service call and we went our separate ways. By Friday afternoon, UPS had arrived with my new replacement wireless modem. The included instructions were straightforward and easy to follow: Connect computer to modem, connect phone line to modem, plug in modem, wait for flashing DSL light to light up green. Ok, that’s a problem. The DSL light was indeed flashing, but red, not green. Time to call the 800 number again. The automated teller and I did our familiar routine and I was quickly connected to an agent. This time, a pleasant-sounding female agent took my call. I gave her the reference number the agent had me write down on my initial call on Wednesday. Strangely, she stated that this was not a valid reference number. (Surprise, surprise.) I gave her a brief synopsis of what had transpired earlier, how I thought I had a DSL service issue and how I was sent a new modem/router anyway. She apologized for any inconvenience and we went on our journey together to solve my problem. We went through the usual game of Simon Says. She gave me an instruction (reboot the modem, read her the model number, etc.), and I followed. After a series of these tests, she came to the conclusion that there may be a problem on my line. What a shocker! She stated that the problem was either inside the home or out-
side the home. (You think?) She set up an appointment for a technician to come out to my home to address the problem. The window that the tech might arrive at my house was between 9am and 9pm. (Convenient.) Even though it was going to blow half of my weekend, I agreed. I just wanted to get the problem resolved. I wrote a new reference number for my call and we said our goodbyes. Saturday morning, I did some things around the house, only running quick errands if someone was available to be there in my absence. By 3pm there was still no tech. Needless to say, by 8:45pm, I was certain no one was coming. It was time to call Verizon. Again. I got a representative on the phone and promptly gave him my name, phone number and the latest reference number. This time, luckily, my reference number was actually on file. The representative read through the notes on his end and asked me how he could help. I asked where the technician was and reminded them that I had stayed home for the 12-hour window. I was placed on hold for a few minutes, was spoken to briefly, and was put back on hold. (Typical.) Finally, the representative returned, stating that the call notes showed that they had found that a “switch” needed to be replaced at the “central office” and that, realizing this, the technician did not have to come out to my home today. “Thanks for calling?” I said, but the representative didn’t get my sarcastic remark. I advised the representative that it would have been nice if I had been given the decency of a phone call to let me know I would not have to stay home all day for nothing. He agreed, apologized and assured me that the problem should be resolved between 24 and 48 hours. (Needless to say, I won’t hold my breath.) Well, as of this writing, I’m still waiting. The whole experience has left a sour taste in my mouth regarding customer service these days. I know we, as service providers, may not be big, glamorous companies, but I like to think that when a customer has a problem we do our absolute best to solve it in short order. I think that’s one good thing about being a small service provider. In this industry, we all get to know our customer base. We know the customer faces and the families behind them that depend on reliable automotive transportation. In one sense, these disappointments we face from time to time, with large companies, can be healthy reminders to us small providers of how important good quality customer service really is. 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@samcars.com.
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LEGAL PERSPECTIVE
hAS The AdAlB ever reAd The Open MeeTing lAw? by James A. Castleman, Esq. While watching the video recording of the August 2014 Auto Damage Appraiser Licensing Board (ADALB) meeting on the AASP/MA website, I became disturbed by how the Board was handling complaints that had been filed against individual appraisers. As has been their recent practice, when the ADALB got to that part of their agenda, they announced that they were going to handle the appraiser complaints in executive session – that is, in private – outside of the public meeting. The chairman announced that they were doing so because the matters involved the “reputation or character” of the appraisers against whom the complaints were being filed. At that point, the attorney for Commerce, who had filed at least one of the complaints, assured the Board that his complaint had nothing to do with reputation or character, but rather was regarding a question of the professional competence of the appraiser based on whatever particular actions the person had engaged in during his work. When the Board seemed to waiver on whether they might want to act in public, the Deputy Commissioner of Insurance who was present – a lawyer who serves as legal counsel to the Commissioner – jumped up and adamantly advised the Board that they were required to hear these matters in executive session, that they could not consider them at a public meeting and that they would be putting themselves at risk if they discussed the matters in public. The Board followed the Deputy Commissioner’s lead, and refused to publicly consider the complaints. This seemed bizarre to me. Unless there had been major changes to the Massachusetts public meeting law of which I was unaware, this appeared to be contrary to both the letter and intent of the law. Yet, legal counsel to the ADALB as well as the chair of the ADALB (who also happens to be a lawyer) shook their heads in complete agreement with the Deputy Commissioner and concurred that they were required to consider the matters in executive session. All three lawyers were in agreement. They could not possibly be wrong, could they? Well, yes they could. And, boy, were they incredibly wrong! The BASiCS OF The pUBliC MeeTing lAw The Massachusetts Administrative Procedures Act, which controls the conduct of most Massachusetts government agencies, contains eight sections that comprise the so-called “open meeting law.” The essence of the law is 24 October 2014
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contained in one short sentence which succinctly provides that, except for certain listed exceptions, “all meetings of a public body shall be open to the public.” The definition of “public body” in the law goes on seemingly forever, and includes just about any state, county or local agency, committee, legislative body or board that you might be able to think of. The intent is clear: Everything must be open to the public, unless there is some overwhelming and pressing reason for making an exception. Not only must meetings generally be open to the public, but it is almost universally required that there be prior notice to the public of all meetings that are going to be held. Additionally, there must be minutes kept, and those minutes must be made available to the public as well. If someone shows up to a meeting, then they have to be let in; if they want to record the meeting electronically or transmit the meeting to others, the agency or committee must allow them to do it, so long as they identify themselves in advance and let the government board know that they are being recorded. The exCepTiOnS There are only 10 statutory exceptions to the open meeting law. The rationale that was stated by the Deputy Commissioner for having the ADALB go into executive session is the first exception listed in the statute, i.e., “to discuss the reputation, character, physical condition or mental health... of an individual.” The problem, however, is that the statute also makes it clear that discussions of an individual’s “professional competence” are not included in the exception. So, if the
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ADALB is discussing the professional competence of an appraiser, rather than the person’s reputation or character, then there is no excuse to reconvene in executive session. Although not mentioned by the Deputy Commissioner or anyone else present at the August ADALB meeting, the cited exception additionally allows an agency to go into executive session to discuss “complaints or charges brought against a public officer, employee, staff member or individual.” It is not clear to me if this might allow the ADALB to discuss a complaint made against an appraiser in executive session - I would argue that it does not. But even if it does, the statute also requires a government agency to follow strict procedures before convening an executive session to discuss these types of matters, none of which were followed by the ADALB at its August meeting. In order to meet in executive session under the stated exception, the agency must first notify the individual who is going to be affected at least 48 hours before the meeting, letting them know of the agency’s intention to discuss a complaint against him in executive session. Then, if that individual requests it, the agency must discuss the matter in public, rather than in executive session. It is solely the individual’s choice to make, not the agency’s. If the individual does not request it, that person has the absolute right to be present at the executive session, to be represented by legal counsel there, to be able to speak on his own behalf and to be able to record the proceedings. None of this occurred at the ADALB meeting. Further, the decision of an agency to convene in executive session is – at best – optional. Contrary to the bizarre statement of the Deputy Commissioner, there is absolutely no mandate whatsoever to meet in executive session to discuss a complaint against a regulated individual. The other exceptions to the public meeting law listed in the statute are for an agency to discuss strategy sessions for labor negotiations, both with non-union and union personnel; to discuss deployment of security measures; to discuss charges of criminal conduct; to discuss the value of real estate to be purchased or leased, if it is determined that a public discussion might negatively affect the agency’s bargaining position for the property; to comply with any special law that requires meeting in private; for a screening committee to conduct a preliminary interview or consider applicants for employment or appointment by the agency – but only in the preliminary screening stages; to meet with a mediator with regard to a matter in litigation involving the agency; and to discuss trade secrets or confidential information. The purpose of each of these exceptions seems self-evident. Even if one of the statutory exceptions is present and an agency legally meets in executive session, the governing statute has further procedural requirements that must be met - again, few of which were addressed by the ADALB at its August meeting. In particular, the agency must first convene
in public session. Then, a majority of the members must vote to go into executive session and there must be a roll call vote. All subjects to be discussed in executive session must be first revealed in public session, then the agency chair must state whether the board is going to reconvene in public session. Finally, accurate records must be kept of the executive session and those records must then be made public when the purpose of the executive session has been resolved. enFOrCeMenT OF The pUBliC MeeTing lAw The Attorney General is given the responsibility for enforcing the Massachusetts public meeting law, and is given the authority to issue regulations interpreting it. And extensive regulations have been issued. Anyone who believes that the law has been violated has the right to file a complaint about the violation. This is accomplished by filling out a complaint form that is available on the Attorney General’s website. The official form must be used, properly filled out and be first sent to the offending agency within 30 days of the alleged violation of the open meeting law. The agency has the right to request additional information from the complainant, and then must respond within a reasonable period of time. The time to respond is usually 14 days, unless the agency has “good cause” for taking longer, as determined by the Attorney General. If an agency does not actually officially meet within that 14-day window, the governing regulation makes that a presumptively good reason for not responding within the assigned time period. The agency may then take corrective action. If it fails to do so, however, the complainant may notify the Attorney General’s office – which has broad investigatory power – as well as the power to make the offending agency take corrective action and enter a wide variety of orders against that offending agency. SO, HAS THE ADALB READ THE LAW? This may seem like a strange question to ask. Yet, there is a good reason to pose it. You see, the public meeting law statute requires the Massachusetts Attorney General to develop educational materials regarding the law, and those materials are required to be distributed to all government agencies. The AG is also supposed to conduct training sessions for appointed members of all public agencies. Further, the public meeting law statute specifically requires: “Within two weeks of qualification for office, all persons serving on a public body shall certify, on a form prescribed by the Attorney General, the receipt of a copy of the open meeting law, regulations promulgated pursuant to section 25 [of the public meeting law] and a copy of the continued on pg. 62 New England Automotive Report
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FEATURE
The 5S MeThOd to lean Collision Center implementation By Judy A. lynch, Manager, Collision repair design Services Sherwin-williams Automotive Finishes
5
S is a Lean tool that can be used anytime, anyplace and is usually the first Lean method that organizations implement when working to improve their shop. 5S is the foundation for continuous improvement, zero defects, cost reduction and creating a safe work environment. In order to produce high quality work, a collision center has to maintain certain standards and eliminate the waste that interferes with their daily process. “Waste” is a broadly defined term and includes things like: Waste in movement of material; carrying too much inventory; defects or rework; producing scrap; superfluous waiting or unnecessary motion. By implementing the 5S process, waste is exposed and can be easily eliminated. Production becomes optimized through maintaining an orderly workplace and using visual clues to achieve more consistent operational results. The 5S method enables increased quality, waste identification, standard process, visual control and promotes employee satisfaction. Many collision centers seeking to make operations more efficient and looking to improve the bottom line by reducing their costs implement the 5S system.
“5S” was invented in Japan, and stands for five (5) Japanese words that start with the letter “S.” An equivalent set of English “S” words would be sort, set, shine, standardize and sustain.
SOrT: remove all items that are not needed for current production operations leave only the bare essentials when in doubt, throw it out
SeT: Set everything in proper sequence for productivity Arrange necessary items so they are easily accessible label items so that anyone can find them or put them away
continued on pg. 30
Judy Lynch has 26 years of automotive industry experience working with dealerships, independents, consolidators and multiple shop operators. Judy created the Collision Repair Design Service department within Sherwin-Williams Automotive Finishes. For more information, go to www.sherwin-automotive.com/ collision-repair/consulting-services/shop-layout-design. 28 October 2014
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FEATURE
SHInE: Clean and change the mindset of the employees identify cleaning activities and required routine maintenance Maintain a clean workplace to enhance quality, safety and pride
STAnDARDIzE: establish standard operating procedures for each area to gain and ensure consistent quality work towards continuous improvement in order to uncover abnormalities in production
SUSTAIn: Use discipline to make this the way of doing business every day Make a habit of properly maintaining correct procedures
Implementing the 5S method means more than just cleaning up and organizing the shop. This Lean method encourages employees to improve their overall working conditions and helps them to reduce waste, unplanned downtime and inventory. Remember that 5S is the starting point to implement all Lean initiatives by using basic organizational skills first. 5S programs are usually implemented by small teams working together, organizing materials closer to operations, creating easy access to equipment for technicians and prioritizing and labeling supplies to facilitate operations with
the smallest amount of wasted time and materials. The 5S system is a good starting point for all improvement efforts aiming to drive out waste from the production process. Ultimately, it can improve a collision center’s bottom line by boosting products and services and lowering internal costs. 5S provides the foundation for improved production. A typical 5S implementation may result in the
Above: Lean implementation makes a world of difference in keeping the shop organized and minimizing waste.
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reduction of square footage necessary for existing operations. It may also result in the organization of tools and materials into labeled and color-coded storage locations identified to perform a specific task. A wide range of ideas are considered and, while not all ideas will be viable, all are worthy of investigation. The key is to observe processes that add no value and modify them to create an environment that promotes highly valued work through waste elimination. Continuous improvement should be a mind-set throughout the whole organization. The key is to not get caught up in only trying to create big ideas; small ideas often lead to big improvements. Applying Lean principles can greatly improve efficiency as well as quality. Benefits to the collision center include raising quality, lowering costs, promoting safety, building employee and customer confidence and improving cycle time. A key aspect of this system is the building of quality into the process. For example, don’t pass a defect on to the next person who touches the vehicle (the next process). Through strict application of this fundamental rule, problems are highlighted immediately and addressed just as quickly. Many collision facilities have opted to follow the path towards a 5S workplace organizational method as part of a process of continuous improvement. 5S is a fundamental part of any Lean initiative. Lean thinking is about creating efficiency, increasing collaboration and ultimately increasing customer satisfaction. This is all done in an effort to increase your collision center’s bottom line. Lean thinking is a culture mindset in your organization. This is a system to reduce waste and optimize productivity through maintaining an orderly workplace/office and using visual cues to achieve more consistent operational
results. The intent is to have only what you need available in the workplace, a designated place for everything, a standard way of doing things and the discipline to maintain it. Adopting the “Principles of 5S” provides a framework of efficiency and continuous improvement.
Collision centers implementing this can make work more efficient, create better systems and positively impact quality, employee commitment, communication and, ultimately, increase the bottom line.
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FEATURE
FrUSTrATiOn & liTigATiOn: The inSUrAnCe indUSTry geTS Served By Joel Gausten
If you ever felt like you needed a law degree to get through your day in the collision repair field, you’re not alone. These days, it’s virtually impossible to conduct business as an auto body shop without defending yourself against potentially dangerous third-party influences. From being forced to use questionable parts to seeing work steered away from their shops, repairers are dealing with more roadblocks to success than ever before. But now, automotive professionals throughout the industry are taking their battles to the legal arena – and could potentially alter the industry forever in the process. This month, New England Automotive Report offers an overview of various highprofile cases that could change the way you run your business in the future.
BAD nEWS FOR A GOOD nEIGHBOR As most visitors to New Orleans surely know, a Hurricane is one of the city’s most popular – and potent – adult beverages. But when the nation’s largest auto insurer considers hurricanes in Louisiana, they likely think of the storm currently descending upon them thanks to Attorney General Buddy Caldwell. On August 19, Caldwell filed a lawsuit against State Farm, alleging that the carrier “has engaged in a pattern of unfair and fraudulent business practices aimed at controlling the auto repair industry and forcing unsafe repairs on vehicles without the knowledge or consent of Louisiana consumers.” The suit, filed in Louisiana’s 19th Judicial District Court, alleges State Farm violated Louisiana’s Unfair Trade Practices Act and Monopolies Law by (according to an official statement by the AG’s office) “using scare tactics to steer Louisiana consumers to State Farm’s preferred repair shops and forcing shops to perform vehicle repairs cheaply and quickly, rather than in accordance with consumer safety and vehicle manufacturer performance standards.” In his media announcement regarding the suit, Caldwell chastised the insurer for creating “unsafe business practices in which consumer vehicle repairs are performed with costsavings as the primary goal rather than safety and reliability. “In some cases, we’ve found that these parts are nothing more than used junkyard parts. In others, we’ve found 34 October 2014
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them to be foreign knock-off parts of questionable quality,” he added. “Auto repair is not an industry where you can cut corners to save a little money...It could be a matter of life and death.” State Farm currently holds the largest share of auto insurance policies in Louisiana. In 2012, State Farm wrote one third of all auto insurance policies in the state, totaling over $1 billion in premiums. While Caldwell’s media release was hard on State Farm, the verbiage against the insurer in the actual suit (available online at https://www.ag.state.la.us/Shared/ ViewDoc.aspx?Type=3&Doc=402) is downright scathing. Although State Farm does not currently operate in Massachusetts, the issues addressed in the suit – and the effect State Farm’s defeat would inevitably have on the entire auto insurance field – are worthy of attention. For one thing, the suit uncovers some universal issues regarding the auto repair field’s often-tumultuous dealings with insurers: • ...State Farm adjusters have become increasingly involved in the everyday tasks performed by repair facilities, including but not limited to locating specific replacement parts and mandating that repair facilities use the specific parts identified by the adjuster, even when the repair shop believes that such use is neither safe nor appropriate. • State Farm and other insurers routinely dictate the use of non-OEM aftermarket parts in a variety of repairs and mandate that such parts must be Certified Automotive Parts Association (CAPA)-certified. In truth and in fact, the CAPA certification process does not involve any actual safety testing of parts whatsoever. • Each automobile manufacturer publishes guidelines for the appropriate repair of its vehicles, including the types of replacement parts and specific repair processes that should be used in order to make repairs that comply with the existing safety and performance standards associated with the vehicle. Pursuant to the Select Service Agreement and similar DRP contracts, insurers are able to exert a great degree of influence over the specific repairs performed by participating repair facilities, including but not limited to mandating the use of specific used, recycled or non-OEM replacement parts.
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The Caldwell suit calls for State Farm to “pay restitution to all consumers who have incurred a loss due to the conduct of the Defendants through any manner deemed practicable by the Court.”
REVEnGE FOR RACkETEERInG While the Louisiana AG has earned a great deal of attention for his efforts, he is far from alone in taking on corporate giants. On April 30, Crawford’s Auto Center of Downingtown, PA filed a 164-page lawsuit against State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide, alleging that the carriers conspired to control the cost of automobile repairs. The suit argues that the defendant insurers also violated the Racketeer Influenced and Corrupt Organization Act (RICO) by creating artificial “prevailing” rates based on their DRP shops’ use of products by the industry’s three leading Information Providers (Audatex [AudaExplore], CCC or Mitchell), who have been named as conspirators. The suit also names USAA, Travelers and American Family as conspirators, but not as defendants. According to the suit, the action against the defendant insurers aims to address their “long-running unlawful conduct to suppress compensation to repair facilities for automotive collision repairs covered by insurance.” The suit claims that the defendant insurers (together with the three conspirator carriers) collectively hold 70 percent of the market “and control all aspects of collision repairs, including establishing the industry standards for compensation paid to repair facilities.” Additionally, the suit alleges that the Information Providers “serve two masters” - the defendant insurers as well as “the repair facilities, which must use the estimating programs to perform their work because the estimates are the only means by which insured repairs are paid.” Crawford’s seeks to have the lawsuit granted class action status, allowing for the inclusion of any non-DRP facilities that “performed automotive collision repair work or services on or in connection with a vehicle insured by, or covered under insurance issued by” any of the seven defendant insurers and that used a CCC, Mitchell or Audatex estimating program for a repair estimate or supplement since January 1, 2006. On July 14, Crawford’s filed an Interested Party Response opposing the consolidation of its suit with a number of other suits currently seeking damages against carriers. According to CollisionWeek, these suits include antitrust litigation currently filed in Mississippi, Florida, Indiana, Utah and Tennessee. While the Plaintiffs in the case did not seek to have Crawford’s consolidated with the other lawsuits, Allstate identified the lawsuit filed by Crawford’s as a potential tag along suit. Explaining their opposition to the motion, Crawford’s response states, “Like the majority of defendants who have filed responses to the proposed MDL [multidistrict litigation]...Crawford’s opposes consolidation of the RICO Class Action with the Antitrust Actions.” In early August, the Judicial Panel on Multidistrict Litigation (JPML) approved the consolidation
of the five suits to the US District Court for the Middle District of Florida. These suits include: Capitol Body Shop, Inc., et al. v. State Farm Mutual Automobile Insurance Company, et al. (filed on January 6 in the US District Court for the Southern District of Mississippi, Northern Division-Jackson); A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al. (filed February 24 in the US District Court for the Middle District of Florida, Orlando Division); Indiana AutoBody Association, Inc., et al. v. State Farm Mutual Automobile Insurance Company, et al. (filed April 2 in the US District Court for the Southern District of Indiana, Indianapolis Division); Alpine Straightening Systems, Inc., d/b/a Alpine Body Shop, et al. v. State Farm Mutual Automobile Insurance Company, et al. (filed April 10 in the US District Court for the District of Utah, Central Division); and Brewer Body Shop, LLC, et al. v. State Farm Mutual Automobile Insurance Company, et al. (filed April 22 in the US District Court for the District of Tennessee, Western District)
The plaintiffs had originally filed a motion to consolidate the suits to the US District Court for the Southern District of Mississippi for consolidated pretrial proceedings. The RICO suit remains unchanged by the decision. The Crawford’s lawsuit appeared four months following an extensive suit filed in January by Mississippi-based attorney John Eaves, Jr. on behalf of 21 Mississippi shops against a host of carriers including State Farm, Progressive, Allstate, Nationwide, GEICO and USAA. The complaint alleges that the defendants “have engaged in an ongoing, concerted and intentional course of action and conduct with State Farm acting as the spearhead to improperly and illegally control and depress automobile damage repair costs to the detriment of the Plaintiffs and the substantial profit of the Defendants.” Eaves has expressed his intention to add all 50 states to the cause. With more and more repairers pursuing legal avenues in their fight against insurers, the pushback from the auto body industry has never been stronger. Now, it’s up to the courts to decide where the battle goes from here.
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COVER STORY
PERSEVERAnCE PAYS:
AASP/MA THRIVES AT STATEWIDE MEETInG
By Joel Gausten
O
n September 9, AASP/MA welcomed a full house of members, vendors and industry representatives to the Doubletree Hotel in Westboro for the association’s Fourth Quarter Statewide Meeting. Fueled by news of a strong victory in the regulatory arena, the evening event offered a packed agenda, focusing on everything from legal matters to what shops need to know to successfully handle one of the year’s most anticipated vehicles.
FROM CAR TO STARS
Top: AASP/MA Lobbyist Anne Lynch announced the association’s recent victories in the regulatory arena. Bottom: Jason Bartanen of I-CAR discussed the organization’s work to address the growing need for aluminum repair training. 40 October 2014
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As the fourth quarter of 2014 carries on, AASP/MA continues to address industry-related issues on a variety of levels. Updating meeting attendees on the group’s recent activities, AASP/MA Lobbyist Anne Lynch shared the positive news that Commonwealth Automobile Reinsurers (CAR) recently made substantial changes to its performance standards pertaining to auto physical damage and property damage liability claims. Per a September 4 letter distributed by the Division of Insurance (see page 11), “Instead of language requiring carriers to have a plan designed to control labor costs, the proposed amendment requires them to have a plan designed to seek the most competitive Labor Rates and times and to determine whether labor, repair and replacement times are reasonable and consistent with industry-recognized sources.” The revision of the performance standards was the result of continual efforts by AASP/MA, who first started pursuing the matter with CAR eight months ago. “We are thrilled that [the previous language] has now been removed from the CAR standards,” remarked Lynch. “Insurance adjusters cannot point to that as a reason why they can’t pay you a fair rate.” In other news, AASP/MA continues to maintain a strong presence at the ADALB. Recently, the group filed five complaints regarding GEICO’s operation of drive-in claims centers in body shops, which Lynch said was “a very clear violation of both the law and the regulation.” Interestingly, Commerce Insurance has filed a complaint with the ADALB to the same effect. “It was a unique situation in that both an insurer and AASP/MA were essentially on the same side of this issue,” she said. Lynch reported that the ADALB has taken the complaints under advisement and is expected to address the matter in the near future. Lynch is confident that the association will continue to attend – and file complaints at – every ADALB meeting moving forward. “It’s a new game,” she said. “They are definitely feeling the heat of
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Kevin Lombard (left) of Lombard Equipment offered hands-on demonstrations of aluminum repair equipment. these things.” Lynch’s update was followed by a brief presentation by Charles Goodhue of Eastern Research Group, Inc., who offered an overview of the Sustainability Training and Auto Repair Shops (STARS) program. Eastern Research Group, Inc. is currently under contract from the Massachusetts Office of Technical Assistance and Technology (MassOTA) to update the CRASH Course compliance guidance document. The original CRASH Course consisted of guidance on the most basic and important compliance activities every shop should conduct and advice on how to prevent and/or reduce pollution from everyday operations. The CRASH Course included a workbook that could be used to document the implementation of these activities. The enforcement agencies issued a joint letter that stated that they would consider such documentation evidence of good faith, and if a facility was nevertheless found in violation of a regulatory requirement, that this good faith would be taken into account to reduce or eliminate any potential penalty stemming from such a violation. The original CRASH Course is still in use, and has even been translated into Spanish, while other jurisdictions have contacted Massachusetts seeking information about how to develop similar guidance documents. The updated version of the CRASH Course will be called the Sustainability Training and Auto Repair Shops (STARS) guidance. Eastern Research Group, Inc. is looking for auto body and auto repair shops to host site visits to
help inform this guide. These shops will become members of the Massachusetts Clean Auto Repair (MassCAR) Partnership, receiving recognition for their participation. To participate, shops are being asked to fill out an outreach survey at www.masscarsurvey.com, provide their shop information and request to host an on-site assessment. For more information on the STARS initiative, please contact Goodhue at (781) 674-7249 or charles.goodhue@erg.com.
THE nEW AGE OF REPAIR With the aluminum-intensive 2015 Ford F-150 hitting dealerships in a few short months, AASP/MA welcomed Kevin Lombard (Lombard Equipment, Inc.), Jason Bartanen (I-CAR) and Larry Montanez (P&L Consultants) for an extensive discussion on how the growing use of aluminum is affecting the collision repair industry. A longtime auto body equipment supplier and AASP/MA supporter, Lombard views the escalating use of aluminum as an opportunity for repairers to embrace change in an exciting new era. “Don’t fear aluminum – love it,” he said. “It’s here.” According to Lombard, every leading auto manufacturer will eventually have an aluminum body program in place. Ford, GM, Fiat and Chrysler are expected to be the biggest users of the material, with seven out of 10 pickup trucks being aluminum within the next 10 years. “Be careful of what you tell yourself about aluminum and being afraid of it,” he offered. “Embrace it, love it and learn it.” New England Automotive Report
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COVER STORY
Frequent new england Automotive report contributor Larry Montanez offered an aluminum repair reality check. Lombard’s presentation included video overviews of the F-150 and hands-on demonstrations of some of the equipment (including the Pro Spot SP-5) that could be used to handle aspects of aluminum repair. More information on Lombard Equipment is available at www.lombardequipment inc.com. Of course, repairers need to receive proper training on how to fix the new F-150 when it arrives at their shops. That’s where I-CAR comes in. According to Bartanen (who serves as I-CAR’s director of industry technical relations), I-CAR and Ford worked together extensively to develop a training program to get technicians up to speed in time for the new truck’s late-2014 launch. “Obviously, there’s been a lot of buzz around the Ford F-150,” he said. “We’ve been working with Ford for the past three years to develop a training program specifically on that vehicle so that technicians across the country – and insurance personnel – [receive] information on what they can and can’t do to the vehicle.
“This is the first course that we’ve ever done that we worked with the vehicle manufacturer prior to the production of the vehicle,” he added. “We’ve been teaching the course since May, and the truck is not going to hit the road until November at the earliest.” Bartanen explained that the rise of the 2015 Ford F-150 and other aluminum-focused vehicles is the result of manufacturers’ push towards utilizing alternative lightweight materials to adhere to government fuel efficiency requirements. “That’s really driving a lot of this,” he said. “The motoring public is demanding safer, more fuel-efficient vehicles.” For more information on I-CAR’s 2015 Ford F-150 Structural Repair Training Course (FOR06) is available at www.i-car.com/FORD150. Wrapping up the aluminum repair discussion, Montanez spent a considerable amount of time dispelling some of the common myths and misconceptions associated with the F-150. For one thing, he questioned Ford’s use of the phrase “military-grade aluminum” in marketing the truck to the masses, noting that most of the truck’s outer body panels are 6000 series aluminum. “There’s no such thing as ‘militarygrade’ aluminum,” he insisted. “Military-grade aluminum would be what? Bullet-proof [and] bomb-proof. I should be able to walk up to this F-150 and start shooting .50 caliber [bullets] at it and it should bounce off. Am I correct? Do you think that’s going to happen?” As Montanez sees it, the primary difference between aluminum and steel is its reparability. “Unfortunately, you’ll buy a lot of tools to fix very little damage [with aluminum],” he explained. “You’ll change a lot of parts.” Additionally, Montanez cautioned attendees that there are considerable differences in the training requirements between the 2015 F-150 and other
aluminum vehicles. For example, the Mercedes-Benz welding test is two weeks and costs thousands of dollars, while the current I-CAR Ford F-150 course is a one-day event. “Most of the other European companies have a one-week training course the first time, then the re-certification is every two years – which is three to four days depending on the company,” he explained. Although most of Montanez’s presentation focused on aluminum, he made it clear that attendees needed to first focus on their skills at repairing steel before even considering taking on the F-150 or any other vehicle with similar material. When he asked how many attendees took and passed the ICAR Welding Qualification Test for steel, only a small number raised their hands. “I’m going to tell you probably 80 percent of the shops can’t fix a current pickup truck properly,” he said, emphasizing the need for greater education throughout the national auto body field.
nEW FACES nEEDED Prior to the start of the meeting, AASP/MA President Paul Hendricks reminded attendees that the association’s work – including the high level of presentations offered at statewide meetings – is made possible through the ongoing support and participation of industry volunteers. With the next Board elections slated for November, he urged the younger members in the room to carry the torch from those longtime members who will be stepping down. “[The older Board members] have paid our dues,” he said. “In order for this to keep moving and for us to win these battles, we need some of the young blood to step up.” For more information on AASP/ MA, please visit www.aaspma.org.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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180BIZ FEATURE
The pOwer OF FOCUS by Rick White Focus is a critical component to unlocking the greatness within you. In order to better understand, let’s look at what happens when a lack of focus creeps into your plans. It’s Monday morning - you start the day jazzed up and ready to rock! As the day progresses, your focus slips and you are pulled into activity-driven tasks moving you no closer to your dream business or even your dream YOU. Before you know it, you realize the day is gone. There is always tomorrow, right? Tomorrow morning, you start the day a little less jazzed but have a renewed sense of purpose. Before you know it, you are once again wrestling alligators and end up with a repeat of the day before. After a few days like this, you finally just give up, defeated, and retreat back into old ways of doing things. It would be nice if we could leave the sense of defeat and derailment at the office, but it doesn’t work that way. You go home each evening, kicking yourself for not achieving your goals for the day. Instead of leaving your work issues at work and truly enjoying your family, you allow your work issues to seep into your personal life. Then, instead of being 100 percent focused on work the next day, you feel guilty about your lack of connection to your family and spend your work time wishing you were home. Can you see how this cycle feeds on itself and gets bigger and bigger? This cycle can become a dream killer, but I have GREAT news! You can turn this situation around almost overnight by committing to engaging fully at work. Go in that next day, promising to stay the course by only performing those tasks that move you closer to the vision you have for yourself and your business. If you find yourself starting to get sidetracked, STOP and regroup. Get yourself back on track. Before you finish up for the night, mentally review your day, celebrate the tasks you completed and create your task list for the following day. When you finally leave for the day, feel great about what you accomplished.
Leave the business behind and focus on strengthening your family relationships. When you know what you want and you want it as badly as you want to breathe, intense focus becomes your ally; from intense focus comes discipline.
Discipline allows you to hone in on only those high-producing activities that move you closer to your dream by forcing you to recognize and choose to focus on longterm gains over short-term wins.
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AASp/MA negotiations Take hold continued from pg. 10 letter for you to distribute to your customers explaining the law and how auto body and insurance appraisers must comply with this safety initiative. At the time of this writing, we are awaiting Board approval; however, we will post it to our members’ only section of the AASP/MA website as soon as it is available. For any members who are interested, Jim Castleman will be presenting on this very issue to the Midstate Chapter member meeting on October 14. Please contact Molly Brodeur to register or for more information. As we head into the state’s election period, the AASP/MA Board will be holding reelections in November. Our new Board of Directors will be introduced to the membership during Casino Night. We feel confident that all of our candidates will continue to support the AASP/MA mission and lead the industry to make a difference in building the success of our profession. Currently, there are entry-level openings in our Board and we are looking for leaders to join in this effort. If you are interested in becoming a part of our Board of Directors, please contact the office at (617) 574-0741. We are continuing to build our membership to present the unified voice of the industry and, if you are not a member, please consider joining NOW. Through November, non-members are eligible to receive a FREE membership for the remainder of 2014. Give AASP/MA a chance to impress you. I strongly encourage our members to speak with their peers and invite them to attend a meeting with you. The association is on the move: Be part of the future of the auto body profession! Sincerely,
Jillian Zywien, Executive Director MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
The power of Focus continued from pg. 49
I have a proven technique for building focus and developing discipline. Just follow these next five steps and you will successfully achieve your dreams and constantly challenge yourself. 1. “Visit” your destination at least three times a day. To experience true success, your destination needs to be painted in your mind in vivid detail. You don’t get in your car and just drive, do you? Why allow yourself to do this with your day? Take some quiet time and create a crystal clear vision for you and your business. Where do you want to end up? What does that look like? How does this benefit you? The more time you invest in this exercise, the clearer your “picture” will be. Now that you know where you are going, you need to remind yourself of it first thing in the morning, at lunchtime and then as the last thing you do before you turn in for the night. This will keep you excited for your future and keep you focused during the day. Your “destination” creates your focus. 2. Know why you want to go here. There is a reason behind every journey you take. You need to identify what you get out of going on this trip, and it needs to be powerful. Your WHY will motivate you and keep you going even when the going gets tough or boring. Your WHY is the fuel you use propelling you toward your destination. Your WHY maintains your focus. 3. Write your goals down. The exercise of writing down your goals flips a switch in your brain making these goals more “real.” Writing your goals down keeps you on track and in the driver’s seat. This prevents your day from running you and keeps you running your day. Write down your goals every morning, every night and each time you fail at a particular task. The physical act of writing goals down on paper effectively installs a set of blinders, helping you to ignore the distractions throughout your day. Writing them down keeps you focused on the right activities. 4. Make a TO-DO list. The only two times of the day you can truly control are the beginning of your day and the end of your day. Take that time to center your thoughts and actions. By making time at the end of your day to create a list of goal-oriented activities for the next day and by reviewing the list first thing in the morning, you stay focused on those activities that bring you closer to your goals. 5. Celebrate! As you complete each item on your To-Do list, give yourself a pat on the back. You are one step closer to leading the life you have dreamed of for yourself! Each time you celebrate, it builds your self-esteem and self-confidence, motivating you to tackle the bigger and more daunting items on your list. Remember that part of the fun is seeing who you become as you travel this road to GREATNESS! MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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-onone 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.
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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.
What benefits motivated you to join AASP of Massachusetts?
Mrs.
Ms.
Business Representative Name:
________________________________________________________
____________________________
Business Name ____________________________________________
PERSONAL INFORMATION:
Street Address ________________________________________________________________________________________________________ Street
City
State
Zip
Mailing Address ______________________________________________________________________________________________________ City
Street
Phone Number ( E-mail Address
)____________________________________ Fax Number (
State
Zip
) __________________________________________
________________________________________ 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: __________________________________________ Expiration Date: ________________________________________ Signature: ______________________________________________ Date: __________________________________________________
FOr OFFiCe USe Only Check number ______________________________Check date ________________________Check Amount ______________________________ date Joined ______________________________Member number ______________________next Bill date ______________________________
12 post Office Square, 6th Floor • Boston, MA 02109 phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible. New England Automotive Report
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LEGAL PERSPECTIVE continued from pg. 25 educational materials prepared by the attorney general explaining the open meeting law and its application . . . .” So, I pose the question to all of the members of the Auto Damage Appraiser Licensing Board (who were required to receive a copy of the law), and to those lawyers at the Division of Insurance who are advising them: Have any of you ever actually read
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the Massachusetts open meeting law? If not, it’s never too late to read it. And, once you do, maybe you should consider actually following it.
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AUT M TIVE AD INDEX
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
New England Automotive Report
jcastleman@ prclawoffice.com.
180Biz ..............................................................49 American Honda............................................56 Audi Group ....................................................27 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram............58 Balise Wholesale Parts Express ....................44 Baystate Chrysler/Jeep/Dodge ..................42 Bernardi Group ........................................32-33 Best Chevrolet ..............................................IFC BMW Group ..............................................38-39 BMW/Mini of Warwick ................................46 CCC One..........................................................23 Clay Subaru ......................................................8 Colonial Auto Group ....................................54 Empire Auto Parts............................................9 Enterprise ........................................................13 First Chrysler-Dodge-Jeep-Ram ..................22 First Ford ........................................................22 First Hyundai..................................................22 Ford Group ....................................................36 Future Cure ....................................................10 Goyette’s Inc. Auto Parts ................................9 Honda Group..................................................48 Hyundai Group ..............................................57 Imperial Chrysler-Dodge-Jeep ......................6 Imperial Ford ..................................................36 Infiniti of Norwood........................................52 IRA Group..................................................14-15 Jaffarian Toyota/Volvo..................................53 Kelly Automotive Group............................IBC Linder’s, Inc. ..................................................31 Long Automotive Group ..........................OBC Mazda Group..................................................47 McLaughlin Chevrolet ..................................22 Mopar Group....................................................6 NORTHEAST® 2015........................................7 Nissan Group..................................................26 Nissan World of Dartmouth ........................43 PPG ....................................................................3 Robertsons GMC Truck ................................43 Sarat Ford-Lincoln ........................................58 Sentry Group ..................................................56 Subaru Group............................................50-51 Tasca Group ....................................................37 Toyota Group..................................................59 Toyota of Nashua ..........................................62 Village Auto Group........................................60 VW Group ......................................................29 Wellesley Toyota/Scion ................................42
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