New Jersey Automotive January 2015

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THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

TM

January 2015 $595

LIVES ON THE LINE: INSIDE AN EXPLOSIVE AIRBAG RECALL “BLACK BOX” BASICS: A CONVERSATION WITH JEFF LANGE & LARRY MONTANEZ

REMEMBERING JIMMY BRYANT

www.grecopublishing.com

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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2013 - 2015 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net

Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

CONTENTS

VOLUME 45, NUMBER 1 | January 2015

8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE

12 EXECUTIVE DIRECTOR’S MESSAGE 58 NJA ADVERTISERS INDEX

NORTHEAST® 2015 SPOTLIGHT 16 Ryan Friedlinghaus to Appear at NORTHEAST 2015 IN MEMORY 18 Remembering Jimmy Bryant 21 AUTO BODY DISTRIBUTING HOLIDAY PARTY HIGHLIGHTS Photos by Jacquelyn Bauman

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

VENDOR SPOTLIGHT by Jacquelyn Bauman 24 Continental Auto Parts: Fulfilling the Needs of the Industry

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

LETTER TO THE EDITOR 28 Dear New Jersey Automotive...

BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

FEATURES by Joel Gausten 36 “Black Box” Basics: A Conversation with Jeff Lange and Larry Montanez 41 Lives on the Line: Inside an Explosive Airbag Recall

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

PUBLISHER Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)

MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com) ART DIRECTOR Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER Sofia Cabrera (tgp4@verizon.net)

CONTRIBUTING EDITORS

Charles Bryant • Tom Greco • Jeff McDowell Mitch Portnoi • Dave Laganella • Ron Ananian

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

AUTOMOTIVE RECYCLERS OF NEW JERSEY 48 Legal Update 49 Wharton Insurance Briefs INDUSTRY NEWS 52 Innovative Technology & Solutions Wins Award at SEMA 53 Team PRP-Northeast Donates to the Wounded Warrior Project

The Alliance of Automotive Service Providers/New Jersey Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest

HALL OF FAME

Tom Elder Bob Everett Thomas Greco Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano

Michael Lovullo Sam Mikhail Ron Mucklow George Petrask Russ Robson Jerry Russomano George Threlfall

Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Images courtesy of www.thinkstockphotos.com

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

FAMILY FEUD

by THOMAS GRECO, PUBLISHER

One of the many things my family shared when I was a kid was our love of game shows. Showing my age, I actually remember when a guy named Art Fleming hosted Jeopardy. It was on every day at noon, I think, and we never missed it - at least during the summer. God, just thinking back, we used to be obsessed with shows like You Don’t Say with Tom Kennedy, Password with Allen Ludden, Three On a Match with Bill Cullen, The Dating Game and The Newlywed Game with Jim Lange and Bob Eubanks. Match Game with Gene Rayburn! Man, the memories are flooding back as I write this.

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Once the ’70s hit, there were even more game shows on television. The $10,000 Pyramid with Dick Clark, Gambit with Wink Martindale, The Joker’s Wild with Jack Barry, Tattletales with Bert Convy (the fact that I can remember all of these off the top of my head confirms that I am deranged) and, of course, my mother and grandmother’s favorite, Family Feud. Now, I’m not ashamed to say that when I first saw Richard Dawson (or as my grandmother called him in her broken accent, “Dickie Daws”) host the Feud, I said to myself, “So that’s where the guy from Hogan’s Heroes went.” Again, I’m showing my age.

Now, you can keep all the guys that followed Dickie Daws. Ray Combs?

Amateur. Louie Anderson? Please.

Richard Karn? Who? John O’Hurley?

Sorry, Mr. Peterman. Steve Harvey? The Feud was not meant to be hosted by a Richard Pryor wannabe. For me, it was always Dickie Daws - even more so when he battled with Arnold Schwarzenegger in The Running Man. What has all of this got to do with me? Well, a few years after Dickie Daws’ Family Feud was canceled, they brought it back with Ray Combs and held tryouts all around the country.

When I saw a notice for tryouts in New York, I looked around at my family.

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Hmm. Two brothers, two sisters and me. Five of us. Perfect for the Feud!

I sent in an application and a few months later, we received our tryout notice. Now keep in mind, this is 1993.

With all of the spouses and kids, the five of us very rarely did anything together. So we ventured into Manhattan on a trip alone together for probably the first time in 25 years. We were brought into a hotel conference room where we met the show’s producers.

We were told that we would have to play against two other families, and if we did well, we might get a chance to be on the show. The producer emphasized that the funnier and more boisterous we were, the better our chances would be.

When it was time to play, we went by the seat of our pants. We didn’t have anything planned, so we figured we’d just wing it and let the chips fall where they may. The room was all set up like the show, with the five of us on one side of the room, the other family across from us and another producer acting as the host. Once the theme

music started playing, I felt us all getting into it.

If you’re familiar with the game, the first round begins with the team captain (me) trying to hit the buzzer and ring in with the most popular answer before the other team captain. I don’t remember what the question was, but I do remember that I won because what happened next set the tone for the experience. After you win the question, the host comes over and asks each person on your team a few questions about themselves. The host came to me and I explained that I was a publisher. My sister Diane, the most bubbly of us, loudly told him she was a court reporter. My brother Steve told him he was a dentist and my sister Gloria said she was a paralegal. Lastly, he came to my brother Ralph.

“They tell me you’re in the family business,” the host said to Ralph.

“Yes, I’m in the iron and steel industry,” Ralph replied.

“Wow, that’s different,” said the host. “How did you get into that?”

Ralph didn’t hesitate.

“Well, my mother ironed and my father stole.”

The host lost it. He AND the crew were laughing so hard they had to stop the game. I whispered to Diane, “We’re in.” Ralph was just the kind of contestant they were looking for. Picture Paulie Walnuts from the Sopranos playing Family Feud and that’s the scene we were in the middle of. The rules said that we had to win, and we did. We beat that family (who seemed totally defeated after Ralph’s response) and the next family we played as well. The producers thanked us and told us we’d be hearing from them.

The drive home was one of the best times we have ever had together.

Ralph was on a roll. We got stuck in traffic by the David Letterman Show studio and Paul Shaffer (Letterman’s band leader) walked right in front of our car. We opened the windows and called out to him. He ignored us and kept walking. Ralph yelled, “Why don’t you get a real f#@king job?!” He put his head down and ran after that. continued on page 29

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PRESIDENT’S MESSAGE

FAREWELL TO A FRIEND

by JEFF MCDOWELL

It is with deep sadness that I join many industry members in mourning the loss of yet another loved one in the collision repair community: James Bryant, younger brother to AASP/NJ Executive Director Charles Bryant.

Many of you knew Jimmy as the go-to

guy for dealing with the problems that the Joint Underwriting Association (JUA) caused our industry in the ’80s, and as one-half of Bryant Associates.

He was a lifelong supporter of our industry.

I first met Jimmy in the mid-’80s.

He was a hard-charging ex-Marine who didn’t take any BS. He was also a very creative guy, always looking for the next initiative to take on or the latest way to help our industry out, never taking no for an answer. He was a loyal friend and always had a great story to tell (like the time he got into a bar fight with heavyweight boxer Chuck “The Bayonne Bleeder” Wepner). Jimmy was a real character, and he will be sorely missed.

Jimmy, we’ll always remember how hard you worked to make this industry a better place for us all. We appreciate everything you did for us as repairers and we’ll truly miss you as a colleague and friend. We love you, brother. See you on the other side.

NJA

Mike Lovullo Distributor for

and

Micro-Mix Paint and

Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.

CALL Office: (973) 696-3176 or Cell: (201) 452-0987 10 | New Jersey Automotive | January 2015

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EXECUTIVE DIRECTOR’S MESSAGE

A MAJOR BREAKTHROUGH IN THE ARTIFICIALLY SUPPRESSED LABOR RATE BATTLE

by CHARLES BRYANT

For the first time in history, as far as I know, an auto insurer in New Jersey has agreed to raise the Labor Rate they will pay for auto body repairs by almost three times the amount they and most other insurers have been or are currently paying, as long as the shop making the repairs is certified by the manufacturer.

New Jersey Manufacturers Insurance Company (NJM) has taken the lead in adjusting the Labor Rate they pay collision shops for repairs on certain vehicles, to an amount that more accurately reflects what the Labor Rates would be if they were allowed to seek their own level, without the interference of an insurer.

I have always said that Labor Rates have been artificially suppressed for so long that the rates would need to be tripled to catch up to where they should be in today’s market. Due to Labor Rate suppression by insurers, collision shops look bad when they need anywhere from two to three times what they are currently getting paid for collision repairs in order to properly repair today’s vehicles and still realize a profit.

How the artificial suppression of Labor Rates got started The artificial suppression of Labor Rates has been going on for so long, many have forgotten how it got started. The plan by insurers to artificially suppress the Labor Rates was simple but clever, and it has worked for years. When a shop and insurer disagreed on a reasonable Labor Rate, the insurer’s solution would be to maintain the rate and increase the recorded hours worked to make up the difference. If the shop went along with the plan, problem solved. The shop got the amount that they wanted to repair the vehicle and the insurer hid any record of how that amount actually came about.

If the shop disagreed further, the insurer would engage in steering. This was often accomplished by telling the vehicle owner that the shop was being unreasonable, and that if they remained with this shop, they would have to pay out of pocket for the difference between the insurer’s estimate and what the shop wanted to charge. Because of this, the shop would often lose the job. After losing a few jobs, the shop would inevitably go along with the appraiser’s plan to add extra hours to compensate for low Labor Rates. Although this solved the immediate problem, it also gave the insurer the ability to claim that they had no problem getting the work done for the rates they were paying. This practice was the beginning of artificially suppressed Labor Rates.

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The role of the DRP Since this cost-shifting practice worked so well, some insurers turned it into a bigger plan. This is what we know today as the Direct Repair Program (DRP). Now, although not many will admit it, the DRPs were created based on the concept of cost-shifting, which can only be considered fraudulent activity.

The first part of the plan was to limit the number of shops allowed to participate in an insurer’s DRP to a small number: About 15 percent of the shops in any given area.

That way, the insurer could use the 15 percent to control the other 85 percent of the shops. The next part of the plan required the shops in the insurer’s DRP to agree to follow a set of restricted guidelines, including suppressed Labor Rates. In return, the shop owner would become the appraiser for the insurer, instead of having to negotiate the cost and methodology of the repairs with an appraiser from the company.

Once the shop agreed to follow the restricted guidelines and was set up as the appraiser, the insurer would look the other way while the shop owner put in extra hours to compensate for the restricted DRP guidelines, thereby enabling him to realize a profit. The bottom line is, this worked for the shops that were allowed to participate in the DRPs; they were not only able to survive, but prospered from the plan.

Unfortunately, this also allowed the insurers to pit the DRP shops against the non-DRP shops. They told the nonDRP shop that, if they refused to repair the vehicle for the amount the insurer wanted to pay, the insurer would refer the vehicle owner to one of their DRPs and the shop would lose the job altogether. In reality, the idea was never to get the vehicle owner to go to the DRP for the repairs, but to get the non-DRP shop to buckle under pressure and accept the insurer’s rate. After losing a few jobs, most of the non-DRP shops would agree to whatever the insurer wanted to do just to stay alive. This has continued for so many years that the rates that insurers are paying today are actually only about half - or in some cases, about a third - of what they should be in order for a collision shop to repair vehicles safely and properly and realize a reasonable profit.

What is really interesting is that the insurance industry is now turning on the DRP shops that made it all possible.

Because improper activities like steering, artificially suppressed Labor Rates and failure to pay shops fairly are coming to light through major lawsuits being filed against carriers across the country, insurers have added

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EXECUTIVE DIRECTOR’S MESSAGE provisions to DRP agreements, like hold harmless agreements and provisions that the DRP shops will indemnify the insurer should they be sued. I believe that when some of these major lawsuits result in multi-million dollar judgments against insurers, these companies will turn against the DRP shops and attempt to enforce the hold harmless and indemnification provisions recently put into the DRP agreements.

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How it got this way – and stayed this way – for so long The DRP system accomplished what the insurers wanted it to; it allowed the insurers to steer work away from shops that would not surrender to their demands. The DRP system benefits both the insurers attempting to control the cost of repairs and the limited number of privileged shops that participate in the programs for a long time. A lot of shops that are not

allowed to participate in the DRP program of one insurer can often get on the DRP program of another. Because of the unequal power and influence that an insurer has over a small- to medium-sized collision shop, many in the collision industry learned to take the path of least resistance. In other words, it was easier to participate in a DRP program and go along with whatever the insurers wanted than to try and fight the system.

Most insurance companies are so powerful that they could usually win against a small- to medium-sized collision shop by simply outspending them. Not to mention the fact that many insurance companies don’t play fair; they will do whatever is necessary to beat a collision shop that files suit against an insurer to resolve an issue.

Because of the nature of their business, insurance companies are no strangers to the legal system and therefore know how to work the system. Very often, winning is not about who’s right or wrong, but rather who can hold out the longest and manipulate the system the best.

Over the years, we have seen insurers use every trick in the book to shut down a collision shop’s efforts to challenge them. It is not uncommon for an insurer to accuse a shop of committing insurance fraud when the shop decides to fight back.

Why can’t things just continue like this?

To address this question, we have to look back at the issues that collision shops were faced with a few years ago compared to the issues that collision shops are faced with today. Years ago, we had simpler vehicles on the roads and in collision shops, so things were much easier to work out. Years ago, on an older body-over-frame vehicle, a collision shop might weld a fishplate on a severely damaged frame to reinforce it. On one of the modern unitized body vehicles we have today, that would be an absolute no-no. The vehicles nowadays must be precisely repaired to the manufacturers’ specifications, and the

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structural integrity of the vehicle must be precisely reconstructed or the passengers’ lives may be in put in jeopardy in a future accident. These modern vehicles are like rolling computers. The electronics and computer systems in many of these vehicles are extremely complicated. Unlike with the vehicles from years ago, collision shops and technicians have to have special equipment (that quickly becomes obsolete and needs to be replaced) and training on a regular basis in order to repair modern vehicles. This is extremely expensive. Collision shops cannot afford to purchase the equipment and train their technicians if they don’t realize a profit due to artificially suppressed Labor Rates.

shops have experienced by getting into such a battle. Suddenly, the shop starts getting accused of committing insurance fraud and is sued or turned into the authorities. Such shops are often faced with spontaneous tax and insurance audits and they begin getting visits from state agencies like the DEP or OSHA, despite never having these issues before. These are just some of the tactics that certain shops have experienced when they were so bold as to challenge an insurer.

Even with this knowledge, one NJ collision shop decided that it was either time to face the wrath of the insurance industry or close their business and look for another trade. The shop specializes in highline vehicles,

even though the case got resolved.

Some of the cases got merged together and thereby got further delayed. Some of the cases got moved up to a higher court, again delaying the process, but none of the cases have actually been heard or resolved by a judge and jury. This is a typical example of how an insurer has the power to win by simply holding out longer than a collision shop usually can. The difference in this case is the collision shop has committed to take these cases all the way. They have the holding power and are not going away until the issues are resolved.

The collision shop that I am referring to is Exclusive Collision located in Ramsey, NJ, which is run

A Turning Point in the Collision Repair Industry On December 10, New Jersey Manufacturers Insurance Company (NJM) announced that they have adjusted the Labor Rates they will pay on certain cars for shops that have made the investment in equipment, training and certification necessary to make these repairs safely and properly. This new rate is approximately double to triple the amount they have been paying, depending on the type of vehicle. NJM is one of the top-ranked insurers in New Jersey, so there is no doubt that other insurers are likely to follow suit.

If the shops take shortcuts that stray from the manufacturers’ recommendations when making the repairs, the lives of the passengers in the vehicle are very likely to be put at risk. Things have to change.

What will it take to get the problems of the collision industry addressed?

Let’s face it; the insurance industry is not going to address the issues of the collision industry voluntarily.

Sure, when an insurer is pushed into a corner, they might increase the Labor Rates by a dollar or two per hour, but because the rates have been artificially suppressed for so long, it doesn’t make a difference. The only way that these issues are going to get resolved is for someone to step up and take on the insurance industry in a battle to the end. We have seen and heard of the many problems certain

and the shop owner finally got to the point that he felt that the only way to be properly compensated for his work was to file suit and allow the legal system to determine a fair and reasonable Labor Rate. This only happened after exhausting every possible effort to get insurers to acknowledge that this shop simply could not repair these types of vehicles for the rates that insurers were setting. About two years ago, the shop started taking assignments and filing suit, but - for the most part - has yet to get the issues in front of a judge and jury. They say the wheels of justice turn slowly, but it seems like they are barely turning at all in this situation. There have been some cases that have come close to going to trial, but in a last ditch effort, the insurer made the shop a reasonable offer. The issues on those cases never actually got addressed in court,

by Anthony Lake. A lot of members of the industry know Tony or have heard of him because of these suits. Tony doesn’t mince words or sugarcoat things when discussing the issues or negotiating with an insurance appraiser on the cost, methodology and/or procedures that should be followed to repair vehicles as dictated by the manufacturer. Whether people in the collision industry like Tony’s demeanor or not is irrelevant. He is making a difference not only for himself, but also for the entire collision industry in New Jersey.

I have run a Hot Line for the collision industry for over 15 years and when something substantial happens, I get the call. I have been getting calls that certain insurers are now negotiating their rates without having to be continued on page 32 New Jersey Automotive | January 2015 | 15

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NORTHEAST® 2015 SPOTLIGHT

Ryan Friedlinghaus to Appear at

NORTHEAST 2015 With just three months left before the Alliance of Automotive Service Providers of New Jersey (AASP/NJ)’s flagship event, the NORTHEAST 2015 Automotive Services Show, the industry is abuzz with excitement. The association is pleased to announce that Platinum Sponsor BASF will be bringing Ryan Friedlinghaus, CEO of West Coast Customs, Inc., as a celebrity guest to the show.

BASF is a repeat sponsor of NORTHEAST, the largest regional event of its kind in the country.

“We’ve had a long history with the show and have been involved with it since the very beginning,” says BASF Marketing Services Manager Tina Nelles. “It gives us the opportunity to interact with our customers, listen for their feedback and find new ways to meet the important needs of today’s collision repair facilities.”

“The celebrity guests are always very popular,” says AASP/NJ President Jeff McDowell. “They’re a huge draw for a lot of attendees. We’re very excited to welcome Ryan to our show; he understands what it’s like to be part of this industry and people can’t wait to meet him.”

Friedlinghaus founded West

Coast Customs in 1993 on just hard work and a $5,000 loan from his grandfather. He grew the business from a one-stall location to a global leader. Ryan is well known in the industry for his unique creativity, exceptional work and attention to detail. In the past, his talents have been featured on networks such as MTV, TLC, Discovery HD and Velocity. His current show, West Coast Customs, airs Sunday nights at 10pm EST on Fox Sports 2.

“I’m excited to be a part of the NORTHEAST show on behalf of BASF and the R-M® brand,” says Friedlinghaus. “I understand the daily struggles of owning, running and growing an automotive business. For me, this show is unique, in that I get to meet with repair professionals that share my same passion and hear their stories.”

Friedlinghaus will appear at the show on Saturday, March 21. At the event, he will be promoting BASF’s R-M brand paint, the official paint of West Coast Customs.

“The BASF booth at NORTHEAST is where the excitement takes place,” adds Nelles. “In addition to Ryan, we will be highlighting our R-M brand and we will have staff to highlight how

BASF tools and services can make shops more profitable and efficient.”

NORTHEAST 2015 will be held on March 20-22. As usual, it will be held at the Meadowlands Exposition Center in Secaucus – just five miles from Manhattan and surrounded by over 40 restaurants, movie theaters and retail shops. For those traveling from far away (as the show has welcomed guests in the past from around the world), there is no shortage of entertainment inside or outside of the show.

This is not an event to miss. Online free pre-registration for NORTHEAST is currently open at www.aaspnjnorth east.com.

For more information on NORTHEAST, 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 / #NORTHEAST2015. For more information on AASP/NJ, please visit www.aaspnj.org.

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IN MEMORY

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“Jimmy was a character.”

Ask anyone in the New Jersey collision repair industry who knew Jimmy Bryant what they thought of him, and you’ll very likely hear those four words at some point in the conversation. An unforgettable industry figure with a personality as big as his heart, Jimmy passed away on December 9 after a long illness. A veteran of the New Jersey auto body scene, he was perhaps best known for his work with Bryant Associates, a collision industry consulting firm founded by his brother (and current AASP/NJ Executive Director), Charlie. After a long and colorful career in the Garden State, he spent the last several years of his life in Las Vegas.

Known for his take-no-prisoners approach to tackling industry issues, Jimmy earned a reputation as someone who got things done for the industry he served. According to Charlie, his brother’s extensive knowledge of the rules and regulations regarding shop/insurer relations was peerless.

“It fit like a glove for Jimmy to settle claims,” he recalls. “He had a memory like an elephant. Jimmy could accomplish a lot of things.”

“Jimmy Bryant was a lifelong advocate for the collision repair industry,” offers AASP/NJ President Jeff McDowell.

“As half of Bryant Associates, he went head to head with the Joint Underwriting Association [JUA] on our behalf many times. He was a real character who worked very hard to make our industry better, and we’re going to really miss him.”

Like many who knew Jimmy well, veteran association leader and AASP/NJ Hall of Famer Joe Lubrano (J&E Auto Body) got to see – and hear – just how committed he was to speaking his mind. If insurers were doing something unpopular among shops, Jimmy made sure the carriers knew what they were doing was wrong.

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REMEMBERING

JIMMY BRYANT

“The Labor Rate was always a big thing for him,” remembers Lubrano.

“When there was something that insurers were trying to cut out, Jimmy made sure he got his voice in so everyone was aware of what was happening.”

Lubrano will never forget watching Jimmy take the microphone at CIC and prove to anyone within earshot that he never minced words about anything.

“Some guys are politically correct when they’re there, but Jimmy would just let everything hang out,” he says. “He was concerned solely with making sure people knew what things needed to be done.”

“Jimmy Bryant was an original,” adds New Jersey Automotive publisher Thomas Greco. “He was a guy who loved this industry and fought for it like it was life. I am proud to have published the last photo

of Jimmy and Charlie together in last month’s issue. As we said then, the Bryants were the industry’s greatest allies during the ’80s and ’90s. Jimmy should be remembered for that.”

One of Jimmy’s oldest industry friends, AASP/NJ Board member Sam Mikhail (Prestige Auto Body, Garwood) was in touch with the industry advocate on a weekly basis in the old association days.

Their last phone conversation just a few short months ago found Jimmy in high spirits. Mikhail will never forget the energy and passion Jimmy put into solving consumers’ problems.

“Jimmy was a go-getter; he was like a machine gun,” he says. “He went after insurers, he was tough and he got the job done. Insurance companies used to hate dealing with him because he didn’t take no for an answer. He kept beating and beating until he got what the customer was entitled to. He was great.”

Past AASP/NJ Board member Pete Cook (P&N Auto Works, East Orange) is one of many New Jersey repair professionals who will always be grateful for what the Bryant brothers did together on behalf of the collision repair field.

“Jimmy and Charlie would do anything for you and go to bat for you 100 percent,” he says. “They were always trying to make the industry better, and they had a good niche when they had Bryant Associates. They helped a lot of people.

Any time the industry or the association had a problem, they would try to find solutions any way they could. They didn’t let you get pushed around.”

Naturally, Cook also experienced Jimmy’s trademark personality on plenty of occasions.

“When he wanted to make a point, he’d say his famous words: ‘Listen to Jimmy!’” he recalls with a laugh. “I’ll always have that in my head.”

Longtime AASP/NJ member Ed Day (Collision Restoration, Fairfield) will

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Left: Jimmy and his companion, Linda, in Las Vegas. Right: Jimmy was one of the industry's most vocal advocates.

never forget Jimmy’s incomparable attitude and spirit.

“I think this country is out of characters; we’re all so sterilized and politically correct,” he says. “But not my friend Mr. Bryant. You knew where you stood with him three seconds after you met him. If he liked you, he loved you; if he didn’t like you, you were out.”

When thinking of Jimmy, Day is instantly reminded of all the great times they shared in the ’90s.

“It was a time in our industry where there was a core group of people who were inseparable, from Central up to North,” he comments. “Jimmy was one of them, and he was a solid friend.”

“Jimmy was a really special guy,” adds fellow AASP/NJ member Lee Vetland (Lee’s Auto Body, Avenel). “He was different than all of us, but he had the same things in his heart. He wanted the industry to be much, much better. Without Jimmy and his brother, our industry wouldn’t be half as good as it is right now.”

AASP/NJ Past President Tom Elder fondly remembers his old friend as someone who would tenaciously address issues ranging from the Labor Rate and storage to drop-shipped parts and diminished value. Above all, he worked to ensure that

insurers were always held accountable for their actions.

“When he got an assignment, he really went after it,” Elder says. “The people on our side loved him, and the people on the other side hated him. He usually got what he was looking for and had a good point of view in terms of always keeping the collision shops in mind. Those who knew Jimmy respected him greatly.”

Although he was tough as nails when it came to business, Jimmy had a playful side that often led to practical jokes. One time, Charlie got a call from his brother, who proclaimed in a very convincing way that he had won a $14 million Mega Millions jackpot. After a few days of keeping Charlie in suspense on whether or not the news of Jimmy’s win was true, his younger brother finally let him off the hook and revealed the gag.

Of course, Jimmy’s one-of-a-kind nature had a strong effect on others who were close to him. When sharing their memories with us, more than a few of his friends joked – with great love and affection – that he was notorious for presenting the Board with the longest expense reports imaginable. While some would never think of adding gum and other miscellaneous sundries to a reimbursement request, that was classic Jimmy

Bryant.

Once Jimmy moved to Las Vegas, it didn’t take long for him to find a new cause to passionately support. He spent his final years heading Lights 4 Love, a 501 (c)(3) non-profit organization he created to provide red light bulbs to people to put outside their homes and apartments so they could be easily found by EMTs and other crucial personnel. Jimmy was inspired to start Lights 4 Love after rescue workers had difficulty locating him in the large apartment complex in which he resided.

Despite Jimmy’s passing, his impact on the New Jersey auto body community will always be felt by anyone willing to stand up on behalf of shops and consumers.

As Mikhail says, “His knowledge and information benefited all of us, and that will go on for many, many years. He may be gone, but he’s not forgotten.”

More information on Lights 4 Love (including a personal message from Jimmy) is available at www.lights4love. org/#!about_us/crrl. A special Las Vegas TV news report on Jimmy’s work can be viewed at www.youtube.com/watch?v=e_ N1O5QupdU. NJA

“Without Jimmy and his brother, our industry wouldn’t be half as good as it is right now.”

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ABD HOLIDAY PARTY HIGHLIGHTS

Auto Body Distributing Co. would like to extend special thanks to this year’s generous prize sponsors!

Acme Nissan All American Auto Salvage Bell Mitsubishi Clinton Acura Clinton Honda Douglas Infiniti & Volkswagen Dover Dodge Flemington/Ditschman Ford Flemington Audi/Volkswagen/Porsche Flemington BMW Flemington Chrysler/Dodge/Jeep Flemington GM

Flemington Infiniti Flemington Lexus/Toyota Flemington Nissan Flemington Subaru Franklin Sussex Chrysler Gerber RV Group 1 Freehold Mercedes & Volkswagen Hackensack Toyota Intercar Mercedes JMK BMW & Fiat Lusid/Genrock Refinish

Madison Jaguar Malouf Ford Maxon Mazda & Hyundai Mike Kaufmann Dealer Group Mini of Manhattan Nucar GM/Honda/Hyundai/ Mazda/Kia/Subaru Princeton Land Rover Sussex Honda Roberlo Refinish Valspar/De Beer Refinish

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VENDOR SPOTLIGHT by Jacquelyn Bauman

Continental Auto Parts: Fulfilling the Needs of an Industry For almost two decades, Continental Auto Parts (CAP) has been supplying the industry with high-quality non-OE replacement auto body parts, recycled OEM bumper covers and remanufactured alloy wheels, among many other parts necessary to service the collision repair industry.

First founded in 1997 in Newark, CAP now has seven different locations across the Northeast and employs over 220 individuals. Their Newark location is approximately 170,000 square feet between two buildings: One of which encompasses an office and warehouse space, the other solely dedicated to housing product. Due to this high capacity for storing merchandise, they are able to fill their customers’ needs much faster and more efficiently than a number of others in their market.

“We feel we give our customers more personalized, hands-on attention,” says Operations Manager Mike Koren. “We stay tuned in to their specific wants and needs. There are so many things that our company gives to our customers. We offer delivery service to customers in more remote areas of the Northeast. We offer after-hours delivery so that parts are

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available upon our customers’ arrival in the morning. Plus, we offer free pickup on damaged bumpers. We take that extra step to take care of the people we do business with.”

CAP is an NSF International Certified Distributor and in 2014 became ISO 9001: 2008 Certified as well. They are New Jersey’s only plastic bumper recycling facility that offers premium quality OEM bumpers.

Koren, a veteran of the industry, has been with CAP for almost nine years.

Having such extensive experience in the field in general, as well as specifically within the company, he believes the secret for their success lies with the CAP owner, Thomas Lee, and the overall shared vision of his co-workers. “[Lee] is always driven for success; he always has his eye on the big picture,” Koren says. “Plus, we have an excellent support staff here that shares the same vision for success. We have people of the highest quality who have years of service in this industry and that have the same common goal.”

It is this pervasive goal-driven

attitude that has allowed CAP to continue to grow. In order to meet increasing demand, they are in the process of relocating the Mount Laurel warehouse to a larger facility, which should be open by March 1 of this year.

Customers of CAP know that doing business with this industry leader means they can expect high-quality parts, competitive pricing, constant access to products via their website (www.continental autoparts.com), great service and products backed by a limited lifetime warranty.

For more information, visit their website, call (973) 621-0006, toll-free at (888) 368-7227 or email sales@continental parts.com.

CAP serves the entire state of New Jersey, all five boroughs of New York, Central and Eastern PA, the Westchester and Rockland County areas, Utica, NY and upstate New York, from Buffalo to Albany. They are open M-F from 8-5 and Sat from 8-2.

NJA

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LETTER TO THE EDITOR

DEAR

NEW JERSEY AUTOMOTIVE...

I’m a longtime parts professional at one of New Jersey’s most prominent wholesale operations. In addition to being an avid supporter of AASP/NJ, I do all I can to support individual body shops in their efforts to build a better industry. Although I wholeheartedly respect the collision repair community, I have seen an increase in a practice that is causing me great concern. I’m sure we’re not the only parts department out there that has experienced a huge jump in parts returns recently.

What is causing our customers to send our parts back to us? Well, it could be a number of things. With cycle time always on every shop owner’s mind, some facilities might start ordering parts based on the insurer’s estimate before they’ve even had a chance to really look at the car with their own eyes. This might cause shops to wind up with more

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parts from us than they really need. Although this is very rare from my experience, some shops might also feel pressured enough by financial constraints to order a bunch of parts to get an invoice to show the insurer, but actually use fewer parts or repair the damaged ones instead of replacing them.

Maybe they only use a fraction of what they order and make a profit off the rest.

Who knows? While I don’t think I’ve directly encountered any shop that has done this, I have heard of some instances where this kind of thing took place. Regardless of the reason for the returns, all I know is that it isn’t uncommon for a shop to return a bunch of parts to me – claiming they lost the job – only to call me a week later for parts for the exact same vehicle. Some shops never return parts, or are incredibly apologetic if they need to; other shops seem to return parts

with every order they make with us.

No parts department is perfect; I know returns can happen because of a mistake on our end. Maybe we sent you a part for the right side of the vehicle when you needed it for the left side, or we did something else that requires you to send it back. We will always do whatever we can to correct any errors of that nature when they come up. What we are having an increasingly hard time doing is accepting returns on parts that are perfectly fine. It slows down our workflow and adds unnecessary burdens on an operation that is already stretched too thin.

If I sell you a quarter panel that you later return to me, I can’t just go to the manufacturer and say, “Hey, the customer didn’t need this.” It actually takes me about two months to return that part – and that’s if the part is returned to me in decent condition. When I give you that part, it’s perfect and clean. When I get it back, it has often been left out in the rain or is caked with body dust. What do you expect me to do with that? I can’t give it back to the manufacturer in that condition. A lot of times, the packaging is just as important as the part itself, because some manufacturers want to see that original box and logo along with the returned part. If you tear into that box like it’s Christmas morning, I could end up with a real problem. I would hate to have to charge customers a 10-percent handling fee to cover the resources it takes me to clean up these parts when they come back to me, but I might have to give that more than just a passing thought in the future. Of course, with dealerships like mine on every corner in New Jersey, having to do something like this scares me to death.

The harsh reality is that – like many of our body shop customers – we have to keep our doors open with a very small

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OUT OF BODY (AND MECHANICAL) EXPERIENCES continued from page 9

I am sure we’re not the only parts department out there that has experienced a huge jump in parts returns recently.

A couple of weeks later, I received a letter from Family Feud, formally inviting us to be contestants on an upcoming show. So we waited. And waited. A few months later, they canceled Family Feud. Our file must have gotten lost because we never got the chance to play for real, even when they brought the show back a few years later. It’s too bad. I’m certain

Ralph would have been a star.

Of course, lost in all the celebration of winning and getting invited to be on the show was the question: How exactly was the team captain (ME) going to get to Los Angeles? I don’t fly, remember?

I never brought it up. And I never will.

NJA

profit margin. Out of that profit, I need to pay for the insurance and maintenance on our delivery trucks, pay gas to keep those trucks on the road, pay the people driving those vehicles, provide paychecks to my counterpeople...you name it. Every time I read an article about how body shops can get the most out of a repair job, I’m reminded of how much I need to stretch the dollars coming into my facility as well. At the end of the day, I need to show that my department is making money. And even though we do make some profit, the possibility always exists that the dealership could decide that this profit isn’t enough to justify the expense of having so many guys on the road delivering parts – or doing wholesale at all. We’re in the same boat as our auto body customers; we need them to understand why unnecessary returns are hurting us.

We appreciate and respect our customers, and I want to do all I can to make their lives easier. All I ask is for a little more consideration along the way.

I wish every body shop reading this letter a happy and prosperous 2015.

Let’s work together in the spirit of mutual respect to make sure every facet of our industry remains profitable and productive. We’re all in this together.

Sincerely, A Concerned Wholesaler

NJA

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Audi dealers strive to make you an • Audi Parts Professionals are Your Subject Matter Experts on Collision Parts, Replacement Components and Mechanical Items. • Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.

Helping you do business is our business. Order Audi Genuine Parts from these select dealers.

Flemington Audi 213 Route 202/31 Flemington, NJ 08822 Toll Free: 800.216.5124 Fax: 908.782.9397 email: rmuir@flemington.com www.flemington.com

Classic Audi 655 North Macquesten Pky. Mount Vernon, NY 10552 914.663.2870 Fax: 914.663.2878 email: parts@westchesteraudi.com www.westchesteraudi.com

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Bell Audi 782 Route 1, Edison, NJ 08817 732.396.9360 Fax: 732.396.9090 www.bellaudi.com Audi Turnersville 3400 Route 42 Turnersville , NJ 08012 856.649.7560 Fax: 856.649.7565 www.turnersvilleautomall.com Paul Miller Audi 179 Route 46 East Parsippany, NJ 07054 Toll Free: 800.35.MILLER Parts Direct: 973.575.7793 Fax: 973.575.5911 www.paulmiller.com

Schneider + Nelson Audi 270 Highway 36 West Long Branch, NJ 07764 732.389.1743 Fax: 732.935.7585 email: parts@schneidernelson.com www.schneidernelson.com Palisades Audi 127 Route 59 Nyack, NY 10960 Toll Free: 888-349-6075 Parts Line: 845-353-4870 Parts Fax: 845-358-5959 AudiParts@ThePremierCollection.com Town Motors Audi 400 South Dean Street Englewood, NJ 07631 201.227.6506/6536 Fax: 201.541.0314 www.townmotors.com

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an Audi Genuine Parts fan • Installing Genuine Audi Collision parts contributes towards improved cycle time that makes both your customer and their insurance company happier.

• Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.

DCH Millburn Audi 2211 Millburn Ave Maplewood, NJ 07040 Toll Free: 800.553.9250 Direct: 973.762.0262 Fax: 973.821.2040 www.millburnaudi.com Jack Daniels Audi of Upper Saddle River 243 Route 17 Upper Saddle River, NJ 07458 Phone: 201.252.1500 Fax: 201.254.1552 email: mcavallaro@jackdanielsmotors.com www.jackdanielsmotors.com Audi Meadowlands 4700 Westside Ave. North Bergen, NJ 07047 Toll Free: 888.416.2834 Fax: 201.223.7842 www.audimeadowlands.com

Cherry Hill Audi 2261 Marlton Pike West Cherry Hill, NJ 08002 Wholesale: 856.665.5660 Fax: 856.665.4645 email: parts@cherryhillimports.com www.cherryhillaudi.com

Audi Bridgewater 701 Route 202-206 N Bridgewater, NJ 08807 Toll Free: 888-685-5712 Parts Direct: 908-800-9000 Fax: 908-595-0237 email: parts@bernardsvilleaudi.com www.audibridgewater.com Audi Manhattan 800 11th Avenue New York, NY 10019 212.515.8200 Wholesale Direct: 212.515.8275 www.audimanhattan.com

Atlantic Audi 6820 Tilton Road Egg Harbor Township, NJ 08234 Phone: 609-641-1788 Fax: 609-646-2331 Audi Brooklyn 211 63rd Street Brooklyn, NY 11220 Phone: 718-492-6400 Fax: 718-492-8899 rmerchant@audibrooklyn.com www.audibrooklyn.com Jack Daniels Audi 1601 Mc Bride Avenue Fairlawn, NJ 07410 201-398-1209 Fax: 201-475-8666 www.jackdanielsmotors.com

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EXECUTIVE DIRECTOR’S MESSAGE continued from page 15

sued. At the same time, in the last year or so, I have never had so many calls informing me of lawsuits against insurers for all of their improper practices. Collision shops have learned that they can take an assignment of a claim, repair a vehicle properly and then file suit against the insurer responsible for the repair bill themselves for the difference.

This is exactly what Tony decided to do some time ago. Unsurprisingly, he was hit with all of the tactics insurers have to make him surrender before the cases got in front of a judge and jury, but to no avail. Lake has employed the services of the Mackevich, Burke & Stanicki in Clark to address Labor Rates, paint and materials cost reimbursement and proper payment for manufacturerrecommended repair procedures.

Unfortunately, none of the cases have made it to a jury yet. Yet as a result of the relentless efforts of Tony and Mackevich, Burke & Stanicki, things are changing - not only for Lake, but for the collision industry in New Jersey. Insurers do not want these issues to get in front of a judge and jury, yet most insurers will hold out right up to the court house steps before offering to settle a case and avoid trial.

At the same time that the New Jersey cases are occurring with Lake, other major lawsuits are taking place all over the country. The collision industry has finally decided that they have to stand up to the insurance industry, no matter what. Most of the major suits have now been merged together and it looks like they will all be heard in Florida. I am sure it will be a battle like never before. Amidst everything, one insurance company in New Jersey has decided to take the high road and realistically address these problems.

As I mentioned, an auto insurer in New Jersey has agreed to raise their Labor Rate by almost three times the amount the company - and most other insurers - have been or are currently paying for repairs on certain types of vehicles, as long as the shop making the repairs is certified by the manufacturer of the vehicle being repaired.

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New Jersey Manufacturers Insurance Company (NJM) has taken the lead in adjusting the Labor Rate they pay collision shops for repairs, at least on certain vehicles, to an amount that more accurately reflects what the Labor Rate would be if the rates were allowed to seek their own level. There is no doubt that the major lawsuits that are going on both locally and nationally played a major part in this landmark decision. NJM should be commended for being the first insurer in New Jersey to acknowledge that the artificially suppressed Labor Rates are not sufficient enough to compensate collision shops in repairing cars safely and properly while allowing for a reasonable profit.

This is a major turning point for New Jersey collision repairers. The industry should be proud of Tony for all he has done, regardless of the consequences. However, this is just a start in the right direction. If the collision industry is ever going to come together in a united effort, now should be that time!

AASP/NJ has been fighting for the collision industry for as long as I can remember and is watching this development closely. I strongly recommend that collision shops demand that other insurers follow NJM’s lead and adjust their rates. Stay tuned for more information on this interesting development. We will be watching and reporting on this development as it unfolds.

NJA

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“Black Box” BASICS:

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FEATURE by Joel Gausten

A Conversation with Jeff Lange & Larry Montanez Our November 2014 cover story (“Privacy in Repairs: Will ‘Black Boxes’ Change the Industry?”) prompted a slew of comments and questions from readers looking to learn more about event data recorder (EDR) technology and how it could ultimately affect their customers and businesses. In an effort to present the clearest and most accurate information possible, we compiled the most common inquiries we received and reached out to our resident technical experts, Jeff Lange and Larry Montanez, for a factual, realworld primer on exactly what these “black boxes” do and don’t do while in your car.

Along the way, we were able to identify and address some of the most common industry myths surrounding this technology and offer our readers a stronger perspective on an increasingly important - and often misunderstood - topic.

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What are some of the common things recorded by the event data recorders (EDRs) - otherwise known as “black boxes” - in current vehicles?

Jeff Lange: In a very broad sense, you’ll see two types of data recorded if a ‘crash’ occurs: Pre-crash and crash [or crash-related] data. The pre-crash data reflects the operational conditions during the five to eight seconds [depending of the manufacturer] prior to when the supplemental restraint system is activated or ‘wakes up.’

The crash-related data reflects the conditions during the crash, such as change in velocity. This total time is generally under 300 milliseconds. In the world of car crashes and airbags, things happen in thousandths of a second, so the data collected after the system determines that a crash is happening is only collecting the first quarter to third of a second. In precrash data, you’ll typically see vehicle speed, brake application, seat belt use and the accelerator pedal and/or throttle positions. It should be noted that there are two types of events recorded: Deployment and non-deployment. Deployment events are those of sufficient severity to activate and deploy the airbag[s]. A non-deployment event is of sufficient severity to ‘wake up’ the airbag system, but a deployment is determined to be unwarranted.

Larry Montanez: If the airbag control module detects that the vehicle might be in danger due to the condition the vehicle is in, or the condition the vehicle might be in, then the airbag system will activate. If there is no collision event and the manufacturer’s threshold has not been broken based on the deceleration of the vehicle, then the airbag won’t deploy. It will just record, ‘We woke up; we almost had to get into a fight, but we hit ‘snooze’ on the alarm clock and went back to sleep.’ If an event does occur - and this could be a pothole making the car think it’s in enough of a deceleration at enough speed over a short distance - the airbag system would deploy the necessary components based on the information input from the driver and passenger. For example, if you hit a pothole on the left-hand side, the airbag system may decide that only my seatbelt might need to be locked for me to be safe, while the passenger airbag might deploy for them based on their weight and the fact

they’re on the side of danger. It’s a discriminatory system all based on the airbag control module.

Is there anything that EDRs typically track all the time, such as GPS location and so forth? What makes EDRs different from “pay as you drive” devices used by some insurers that track customers’ driving habits?

LM: The electronic data recorders that Allstate and Progressive are using are things that drivers elect to have placed in their cars. You voluntarily put that in, and that will record a whole bunch of stuff. It records a slew of things, including your fastest speed. The data recorder inside the airbag control module does not do that. It can’t tell you the fastest speed the car has ever reached. Currently, there’s no GPS that connects to the electronic data recorder, or vice versa.

What are some of the greatest misconceptions people in the industry - as well as the media - have about the information tracked by event data recorders? For example, it’s a commonly held belief that headlights and hazard lights are among the things recorded by this equipment, but this might not be the case.

JL: You’re right; that is not the case. Another big misconception is that EDRs track time and date. People think these are like true black boxes, where they record flight and date stamps and audio of what is going on at the time of the event. Also, there is no way to identify if a specific key was used. It is also a mistake to believe there is something in that box that can identify a specific driver, although there have been cases where someone said, ‘I let my girlfriend drive the car, and it crashed,” and then you find out the seat is in a position for a guy who’s six-foot-four and not a girl who is five-foot-two.

LM: I’ve tried to explain to people that it doesn’t tell you what time you woke up in the morning or had breakfast before getting in the car and putting on your seatbelt. There is not a videographer following you around the entire day. In many cases, it’ll tell me if the car is going forward or in reverse, and it’ll definitely tell me speed, whether or not the brakes were

applied and if the ABS system had to be activated. It’s not going to give me “yaw rate,” and it won’t tell me if the lights were on or anything like that.

How much information can be gathered from a vehicle black box by a police officer who pulls you over?

LM: None. The car is not recording anything unless it thinks it’s in an accident.

JL: If there’s no crash, and an officer stops you on the road and says, ‘I think you were speeding, so we want to plug into your event data recorder,’ there’s nothing in there because there’s no event.

Many times, we even have cars that have a crash, but the crash was not of a sufficient-enough severity to activate the recording portion of an EDR. It’s just not true that these things are always recording.

What is the biggest impact EDR technology will have on the collision repair industry?

JL: Insurance companies will use the data to make a determination on if they’re going to honor a claim. For example, if a customer is claiming that their car was parked and unoccupied when it was hit, the insurers can deny the claim if it is obvious - even without EDR data - that the car was moving at the time of the crash.

That’s a misrepresentation. Honestly, I think the concern for body shops at this point may be that they’re advocates for their customers. When the shops advocate for those customers, the data could actually end hurting that shop’s good intentions. I’ve had claims adjusters send me to a shop to investigate whether or not that shop’s customer is telling the truth. The data in the module can conflict with the customer’s statements. If that happens and you’re advocating for that person, it reduces your credibility. I think that’s a genuine concern.

NJA

More insights from Jeff and Larry on vehicle “black box” technology including the debunking of several other common misconceptions - are available at http://www.pnl estimology.com/wp-content/ uploads/2013/06/Dispellingthe-Myths-About-Black-BoxesHD-Jun13.pdf.

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FEATURE By Joel Gausten

Anyone who fixes or simply rides in an automobile understands the importance of an airbag. At crucial moments when every second counts, these devices protect drivers and passengers from potentially life-threatening consequences. However, as government officials and a growing number of foreign and domestic vehicle manufacturers have learned the hard way, certain airbags could also mean severe injury or even death. A product created to protect the motoring public has now introduced a frightening game of chance that could leave the losers maimed, or worse.

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T

his harrowing tale began more than a decade ago in East Asia. The Takata Corporation, a prominent Japanese airbag manufacturer that services a number of manufacturers, supplied driver- and passenger-side airbags for a number of vehicles in model years 2000 through 2008. Recent years have seen a growth in reported defects in a small number of these airbags in high-humidity areas.

When in these humid conditions, the bags could experience a deterioration of the propellant used in the bag, leading to excessive combustion during deployment and the potential for the inflator housing to rupture. The results of the explosion are said to include metal shards hitting and possibly penetrating the driver’s face. A November 20 Fox Business report revealed that Takata produces 20 percent of all airbags used globally.

Although a recall was initially established earlier this year to address 14 million vehicles worldwide – including eight million in a number of “high humidity” states in the US, but not New Jersey – the National Highway Traffic Safety Administration (NHTSA) is now calling for a nationwide recall of driver-side airbags that could affect 20 million or more automobiles in America based on a recent investigation into a vehicle that suffered an airbag explosion outside of the initial high-humidity target area. Additionally, a November 18 announcement from the agency detailed some of its demands to Takata and the automakers that used the company’s products: As part of these efforts and its ongoing investigation into both the defect and the scope of the recalls, the agency also issued a General Order to Takata and all [10] of the vehicle manufacturers that use Takata airbag inflators – BMW, Chrysler, Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Subaru and Toyota – requiring each manufacturer to file, under oath, a detailed report and produce all related documents about completed, ongoing or planned testing of Takata inflators outside the current regional recall areas. The agency is demanding this information to compel Takata and the affected industry to be frank with not only NHTSA, but the American public, as to what testing and additional steps they have done and plan to do to control and mitigate the risk associated with Takata’s defective inflators.

Additionally, NHTSA issued a Special Order to Takata, the second the agency has issued to the manufacturer regarding this defect, compelling it to provide, under oath, documents and detailed information on the propellant used in Takata’s inflators. In recent days, Takata has publicly conceded that it changed the chemical mix of its airbag inflator propellant in newly designed inflators. As part of its ongoing investigation, the agency will analyze the information received to determine if the chemical composition of Takata’s propellant mix may be a cause and/or contributing factor in the airbag inflator ruptures.

Not surprisingly, NHTSA’s request has resulted in a

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moving target with almost daily effects to the automotive industry and motoring public. While some things in the automotive world might be frustratingly stagnant, the Takata airbag dilemma is an ever-changing problem that is impossible to ignore.

Tragically, there are true, tangible stories to illustrate the potential dangers of Takata’s products. Still visibly scarred from her ordeal, Air Force Lieutenant Stephanie Erdman went before a Senate Commerce Committee hearing in Washington on November 20 to recount, in chilling detail, a 2013 accident that left her seriously injured after an airbag exploded in her face.

“When the impact occurred, shrapnel from my car’s airbag shot through the airbag cloth and embedded into my right eye and cheek,” she recalled. “I was instantly blinded on my right side. I felt gushing blood running down my neck. I was terrified. What happened to me was gruesome; the photo that the EMT took of me with the shrapnel embedded in my eye is scary to look at. But I believe this is necessary to grab the attention of those who have the ability to do something and keep this from happening to anyone else.”

According to a September 11 story in the New York Times, a lawsuit filed by the family of 33-year-old Gurjit Rathore claimed that she bled to death after being hit with shrapnel in the airbag explosion when her Honda Accord hit a mail truck in Richmond, VA. The report added that her children were in the vehicle and witnessed the event.

As of this writing, Takata has refused to directly comply with the expanded recall demand, instead passing along the decision to the affected vehicle manufacturers.

“We recognize that NHTSA has urged Takata and our customers to support expansions of the current regional campaigns in the United States,” offered Takata Chairman and CEO Shigehisa Takada in a December 3 press statement.

“Takata remains committed to cooperating closely with our customers and NHTSA to address the potential for inflator rupturing. We will take all actions needed to advance the goal of safety for the driving public, including working to produce additional replacement units to support any further recalls that may be announced by our customers.”

In early December, Honda became the first manufacturer to agree to expand its regional airbag recall nationwide. The automaker’s decision to step up to the plate and add 2.6 million more cars beyond its original recall effort in the “high humidity” regions (Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico and the US Virgin Islands) comes after months of scrutiny over its experience with the Takata issue. As reported by the Detroit News on December 8, “Honda has confirmed four deaths - including one in Malaysia - and 46 injuries in the United States” linked to Takata.

Honda confirmed with New Jersey Automotive at press

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time that the expanded recall had officially begun in New Jersey, with Garden State dealers now able to conduct the necessary airbag repairs immediately for any of these included vehicles: 2001-2007 Honda Accord with 4-cylinder engines 2001-2002 Honda Accord with V6 engines 2001-2005 Honda Civic 2002-2006 Honda CR-V 2003-2011 Honda Element 2002-2004 Honda Odyssey 2003-2007 Honda Pilot 2006 Honda Ridgeline 2003-2006 Acura MDX 2002-2003 Acura TL 2002 Acura CL

The most updated available consumer information about Honda’s action is obtainable at www.recalls.honda.com and www.recalls.acura.com or by calling (800) 999-1009 for Honda owners or (800) 382-2238 for Acura owners, and selecting option 4. More information about the Honda’s national Safety Improvement Campaign is available at www.hondanews.com/honda-corporate/channels/corporaterecalls/releases/statement-by-american-honda-regardingnational-safety-improvement-campaign-drivers-front-airbaginflator-supplied-by-takata.

As detailed in a December 12 report by USA Today, Chrysler will add 139,115 vehicles to the 69,668 cars already covered by the previous recall, bringing the total number of vehicles affected by the latest action to just under 209,000.

The latest expansion covers the Ram pickup from the 2003 to 2005 model years, the 2004 and 2005 Dodge Durango, the 2005 Chrysler 300 and 2005 Dodge Magnum. A December 4 Car And Driver update announced that Ford had joined the expanded recall effort, adding passenger-side airbags to the repair list of about 13,000 vehicles (2004–2005 Rangers and 2005–2006 GTs) already involved in the regional Takata recalls “originally sold, or ever registered, in Florida, Hawaii, Puerto Rico and the U.S. Virgin Islands.” The expanded recall also includes zip codes with high-humidity conditions in Georgia, Alabama, Mississippi, Louisiana, Texas, Guam, Saipan and American Samoa.

With auto manufacturers expanding their airbag recalls by the day, 2015 promises to be an intense year for service departments as more and more states are called upon to untangle the Takata mess. This story is just getting started.

Look for an update to this feature in next month’s issue of New Jersey Automotive. Information on current National Highway Traffic Safety Administration recalls is available at www.nhtsa.gov/Vehicle+Safety/Recalls+&+Defects.

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THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. For Original BMW Parts, contact one of these authorized BMW centers: JMK BMW 391-399 Route 22 E. Springfield, NJ 07081 Toll Free: 800-648-0053 Fax: 973-467-2185 www.jmkbmw.com

Princeton BMW 3630 Quaker Bridge Road Hamilton, NJ 08619 PH: 609-570-1611 Fax: 609-570-1602 www.princetonbmw.com

BMW of Freehold 4225 Route 9 North Freehold, NJ 07728 PH: 732-462-6286 Fax: 732-577-0518 www.bmwoffreehold.com

BMW of Roxbury 840 Route 46 East Kenvil, NJ 07847 PH: 973-627-7999 Fax: 973-598-0339 www.bmwrox.com

Flemington BMW 216 Route 202/31 Flemington, NJ 08822 PH: 908-782-2441 Fax: 908-824-9913 www.flemingtonbmw.com

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Prestige BMW 985 Route 17 South Ramsey, NJ 07446 Toll Free: 888-30-PARTS Direct: 201-327-8485 Fax: 201-760-5525 www.prestigebmw.com Wide World BMW 125 East Route 59 Spring Valley, NY 10977 PH: 877-817-3895 Fax: 845-425-5080 www.wideworldofcarsbmw.com

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Original BMW Parts

www.bmwusa.com

The Ultimate Driving Machine®

They’re called “Original BMW Parts” for good reason. For uncompromising precision and incomparable quality, your BMW center is your One-Stop shop for everything BMW.

Circle BMW 500 Route 36 Eatontown, NJ 07724 Parts Direct: 732-440-1235 Fax: 732-440-1239 wholesale@circlebmw.com www.circlebmw.com

Open Road BMW 731 US Highway 1 Edison, NJ 08817 Parts Direct: 732-692-6918 PH: 732-839-4505 Fax: 732-650-9815 www.openroadbmw.com

BMW of Mount Laurel 1220 Route 73 South Mount Laurel, NJ 08054 PH:856-840-1486 FAX:856-222-0506 www.bmwofmtlaurel.com

BMW of Bridgewater 655 Route 202/206 Bridgewater, NJ 08807 PH: 908-287-1800 FAX:908-722-1729 www.bridgewaterbmw.com

BMW of Morristown 111 Ridgedale Ave Morristown, NJ 07960 PH:973-796-3145 Fax:973-796-3146 www.bmwmorristown.com

Paul Miller BMW 1515 Route 23 South Wayne, NJ 07470 PH: 973-696-6060 Fax: 973-696-8274 www.paulmillerbmw.com

Park Ave BMW 530 Huyler Street South Hackensack, NJ 07606 PH: 201-843-8112 FAX:201-291-2376 www.parkavebmw.com

BMW of Newton 119 Hampton House Road Newton, NJ 07860 PH: 973-579-6020 FAX:973-579-9632 www.bmwnewton.com

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ARANJ 2014 Officers

President Bob Dirkes Dirkes Used Auto Parts 609-625-1718 dirkesauto@gmail.com 1st Vice President Ian Szoboszlay Ocean County Auto 732-349-0332 ian@cosmosautoparts.com

ARANJ Legal Update

The Automotive Recyclers Association of New Jersey

Immunity for Members and Agents of Limited Liability Companies

2nd Vice President Darryl Carmen Lentini Auto Salvage 908-782-6838 darryl@las-parts.com

Recently, the Appellate Division issued a decision that could expand the immunity of agents and members of limited liability companies (“LLC”). The case, entitled Castro v. Giacchi, featured a handshake agreement between Castro and Giacchi, under which Castro agreed to perform carpentry work for a fee. Since Giacchi did not indicate that he was acting on behalf of a business entity, Castro believed that he had contracted directly with Giacchi. However, payments to Castro were drawn from the bank account of John & Sons Ang LLC (“Ang”), of which Giacchi was a member. As a result, Castro sent the final bill to Ang. The bill was not paid, and Castro sued Ang and Giacchi. The trial court found that Giacchi and Ang were both liable for the amount owed to Castro.

Giacchi appealed the decision that he was personally liable for the debt. The Appellate Division agreed with him. In reaching this decision, the Appellate Division relied heavily upon the language of the N.J.S.A. 42:2B-23, which states:

Past President Norm Vachon Port Murray Auto 908-689-3152 portmurrayauto@yahoo.com

Except as otherwise provided by this act, the debts, obligations and liabilities of a limited liability company…shall be solely the debts, obligations and liabilities of the limited liability company; and no member, manager, employee or agent of a limited liability company shall be obligated personally for any such debt, obligation or liability of the limited liability company…

3rd Vice President Joe Goodman Leesville Auto 732-388-0783 joeg@leesvilleauto.com

Executive Director Brian Snyder Auto Recyclers of NJ 609-714-2339 brian@aranj.org

ARANJ 2014 Board of Directors Mike Ronayne Tilghmans Auto Parts 609-723-7469 tilghmans@snip.net Marvin Leadbeater Bamber Lake Auto 609-639-6500 marvinjsp@comcast.net

Mike Yeager EL & M Auto 609-561-2266 elandmauto@aol.com Rodney Krawczyk Ace Auto Wreckers 732-254-9816 aceautonj@comcast.net

Mike Caputo Lacey Used Auto Parts, Inc. 609-693-0898 laceyautomike@aol.com

Based on the above, the Appellate Division concluded that “Giacchi cannot be held personally liable for any of Ang’s debts or liabilities under any circumstances.” Thus, the typical rule that “an agent who fails to disclose he is entering into a contract on behalf of a principal is individually liable on the contract, unless the other party knows or had reason to know the agent was acting on behalf of a principal” does not apply when the agent is acting on behalf of an LLC. Although the original Uniform Limited Liability Company Act (N.J.S.A. 42:2B23) has been repealed, the Appellate Division noted that the language in the replacement statute, N.J.S.A. 42:2C-30, “closely tracks” the original language.

Thus, it is likely that this decision will equally apply under the new statute.

The decision in Castro protects members or agents of a LLC from contractual liability, even if the member or agent does not communicate to another party that he represents an LLC when entering into the contract or agreement. Even more significant, by stating that a member or agent of a limited liability company cannot be held personally liable for the debts or liabilities of the LLC “under any circumstances,” the Appellate Division’s decision suggests that the practice of piercing the corporate veil to hold shareholders or officers of a corporation liable for corporate liabilities to prevent a fraud may not apply to LLCs. This conclusion directly contradicts another unpublished Appellate Division case decided in 2010, BrownHill Morgan, LLC v. Lehrer, which held that the principal of piercing the corporate veil did apply to LLCs. As a result of these conflicting decisions, an agent or member of a LLC should be wary before relying completely on Castro, as it would appear that this issue is ripe for further consideration by the Court.

For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600.

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Wharton Insurance Briefs An ARA Member

The New Jersey Workers Compensation Rating and Inspection Bureau released the newly promulgated rates for 2015: • Auto Dismantling rate increased to $21.24 • Auto Body Repair rate increased to $4.31 • Auto Repair rate increased to $7.77 • Clerical increased to $0.28 • Iron or Steel Scrap Dealer decreased to $15.82 • Salesperson remained the same at $0.60 • Store: Retail Accessories (Counter Person) increased to $5.68 PLEASE NOTE: The Store (Counter Person) code must be approved prior to use. The operation must be physically separated from salvage and parts storage and must not have any interchange of labor.

Also, the executive officers’ annual minimum payroll is $31,720 and annual maximum payroll is $125,840. Lastly, if your insurance policy is written in the NJ State Plan, you are going to be charged an additional 17 percent (minimum) and 35 percent (maximum) for the Plan Premium Adjustment Penalty and will lose any Premium Discount.

As always, if you have any questions regarding your insurance coverage, please contact us.

Mario DeFilippis, AAI, Vice President 800-221-0003 (1320) • 908-513-8588 (cell) • mdefilippis@whartoninsurance.com

BILLS GOVERNING THE PRESERVATION OF MOTOR VEHICLE ACCIDENT DATA AMENDED BY ARANJ

In September 2014, identical bills S2433 and A3579 (collectively, the “Bills”) were introduced in the New Jersey Senate and Assembly in response to a rule proposal by the National Highway Traffic Safety Administration, which would require the installation of event data recorders in the majority of new motor vehicles. As initially drafted, the Bills governed the use and preservation of data recorded by devices in motor vehicles. Most significant for members of ARANJ, the Bills prohibited a person from knowingly altering or deleting data on a recording device, or knowingly destroying a recording device within two years after a crash resulting in bodily injury or death. The Bills propose penalties in the amount

of $5,000 for each violation of this requirement.

Because of the difficulties associated with requiring automobile recyclers to determine whether vehicles obtained were involved in a crash resulting in bodily injury or death, and the impossibility associated with holding such vehicles for two years, compliance with this provision by ARANJ members would have been completely infeasible.

Consequently, if the Bills were adopted as proposed, ARANJ member businesses would be forced to close or incur potentially ruinous penalties.

Given the stakes, ARANJ officers, with the assistance of Tyler & Carmeli, P.C., initiated a campaign to seek changes to the Bills to protect ARANJ members from the draconian requirements that would be imposed on their businesses. Letters were submitted by ARANJ to the sponsors of the Bills and the legislative committees

charged with considering the Bills. In addition, numerous members of ARANJ contacted their local legislators to express their concerns over the Bills.

As a result of these efforts, on December 3, 2014, ARANJ officers and representatives of Tyler & Carmeli attended a meeting with the primary sponsor of A3579, Assemblyman Paul Moriarty.

Assemblyman Moriarty was receptive to the suggestions

by ARANJ representatives and was willing to consider amendments to ameliorate the unintended consequences of the Bills on ARANJ members.

On December 15, the Assembly passed an amendment to A3579 that incorporated language to limit the impact on ARANJ members. Specifically, it limits violations for those who alter or delete data on a recording device or destroy a recording device to only those who do so with the “intent to prevent access to or destroy the recorded

data.” Therefore, automobile recyclers that destroy a recording device in the normal course of business, where the intent is to recycle automotive parts and not to destroy recorded data or prevent access thereto, would not be subject to a violation.

In addition, the amendment establishes a rebuttable presumption that vehicle recyclers and scrap recycling facilities have no knowledge of involvement of a motor vehicle in a crash event resulting in bodily injury or death.

ARANJ officers and legal counsel are presently evaluating the amended A3579 and are considering further action to safeguard against the possibility of ARANJ members being subject to violations under the proposed law.

For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600.

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Innovative Technology & Solutions Wins Award at SEMA

INDUSTRY NEWS

(Left to right): Ron Olsson, president of Pro Spot International; Todd Witten and Nick Mattera, sales representatives for Innovative Solutions & Technology; Ashley Olsson, communications for Pro Spot International and Wendy Olsson, owner

The 2014 SEMA Show in Las Vegas was such an exciting event for the industry that many in the field are still talking about it months later. One distributor who will never forget the 2014 installment of the show is Innovative Solutions and Technology.

Despite only having been in business for a little over a year, they were awarded the 2014 Distributor of the Year by Pro Spot.

“We are excited and honored to be awarded 2014 Pro Spot Distributor of the Year,” says Sales Representative Todd Witten. “It is an exciting time with many changes in our industry, and we thank Pro Spot International for understanding these changes and giving us great products, knowledge and training to prepare Innovative Solutions & Technology and our customers for these changes. We are looking forward to 2015 and would like to thank our customers most of all for making the success of our company and this award possible.”

Innovative will be showcasing their Pro Spot technology, which earned the company the Supplier of the Year award by the Ford Motor Company, at AASP/NJ’s upcoming NORTHEAST® 2015 Automotive Services Show.

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Team PRP-Northeast Donates to the Wounded Warrior Project

(Left to right): Tony Zaccaro, Cosmos Auto Parts; Joe Goodman, Leesville Auto; Lt. Colonel James Sfayer, USMC; Mike Yeager, EL & M Auto Recyclers; Darryl Carman, Lentini Auto Salvage

Like many others, for the holiday season, many Team Premium Recycled Parts members found it in their hearts to give to others who aren’t as fortunate. Team PRP-Northeast, a group of 21 regional auto recyclers, gathered $21,000 to donate to the Wounded Warrior Project – a charity serving the veterans of our nation who were wounded in action. It is estimated that over 50,000 veterans return home with physical injuries, and over 400,000 are estimated to return with PTSD. The Wounded Warrior Project works to help these veterans transition back to their normal lives. Representing the New Jersey auto recyclers of Team PRP-Northeast were Tony Zaccaro of Cosmo’s Auto Parts, Joe Goodman of Leesville Auto, Mike Yeager of EL&M Auto Recycling and Darryl Carman of Lentini Auto Salvage, who symbolically presented the check to US Marine Corps Lt. Colonel James Sfayer.

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Acme Nissan................................................27 Amato Agency..............................................50

Audi Group ................................................30-31 Axalta Coating Systems ..............................6

BMW Group ................................................44-45 Bridgewater Acura........................................20

Cadillac of Mahwah......................................56 CCC Comp-Est ............................................10 Classic Audi ................................................10 Continental Auto Parts ................................24

Cosmos Recycled Auto Parts ......................14

Cycan Industries ..........................................33 Empire Auto Parts ........................................58 Flemington Audi ..........................................5

Flemington Group ........................................IBC Fred Beans Parts ........................................13

Future Cure..................................................52

Glen Toyota..................................................OBC Hyundai Group ............................................26 JMK BMW ....................................................11 JMK Saab/JMK Fiat ....................................8

Klean Frame ................................................58 LKQ..............................................................33 Maxon Mazda ..............................................46 Maxon Hyundai ............................................35 Mazda Group ..............................................51 Mercedes Benz of Freehold ........................57

Mini Group ..................................................38 Mitsubishi Group ..........................................47 Mopar Group................................................4

NORTHEAST® 2015 ..................................17

NU-CAR...................................................22-23 Paul Miller Audi ............................................39 Porsche Group ............................................40 PPG ............................................................3

Prestige Motors............................................53 Princeton BMW ............................................53 Princeton Mini ..............................................9

Saw Mill Auto Wreckers ..............................57 Subaru Group ..............................................25

Town Audi ....................................................56 Toyota Group ..............................................54

Toyota of Hackensack..................................IFC Valtek ..........................................................32 VIP Honda....................................................20 VW Group ....................................................34

Wheel Collision Center ................................32

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