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
March 2015 $595
www.grecopublishing.com
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New Jersey Automotive | March 2015 | 5
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 3 | March 2015
8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE 12 EXECUTIVE DIRECTOR’S MESSAGE
16 MECHANICAL CHAIRMAN’S MESSAGE 62 NJA ADVERTISERS INDEX
INDUSTRY UPDATE by Joel Gausten 15 Senator Calls for Department of Justice DRP Probe VENDOR SPOTLIGHT by Jacquelyn Bauman 18 Staying Ahead of the Curve: Metropolitan Car-o-liner Continues to Adapt to an Evolving Industry
20 LOCAL NEWS
Mobile Repair Backlash Escalates AASP/NJ Veteran Edits Collision Industry Textbook
Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net
NATIONAL NEWS 24 Consent Decree, Litigation Under Siege in FL 28 Edmunds Releases Controversial Report on Aluminum Repair Costs
Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com
LEGAL PERSPECTIVE by Mitchell Portnoi, Esq. 30 Divorce Law: A Primer
Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com
Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.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
COVER STORY by Joel Gausten ® 34 38
NORTHEAST : IT’S SHOWTIME! NORTHEAST 2015 Seminar Schedule
NO BRAKES by Ron Ananian 43 The Unvarnished Truth 52 AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY Legal Update Wharton Insurance Briefs
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
55 NEWS FROM FORD THE LIST 57 What Are You Most Looking Forward to at NORTHEAST® 2015? 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
New Jersey Automotive | March 2015 | 7
OUT OF BODY (AND MECHANICAL) EXPERIENCES
BEST IN SHOW by THOMAS GRECO, PUBLISHER
As show managers of NORTHEAST®, we rarely get the opportunity to take advantage of all that the show has to offer. As I just mentioned to one of my co-workers, there really isn’t any time to create memories because for us, the weekend is basically made up of work and stress and work and stress and work and stress. So this year, I figured I’d take a step away and approach the show from an attendee’s point of view - at least for this article - and show you how I would get the most out the NORTHEAST experience. By all means, feel free to follow this guide. First up, on Thursday, March 19, I would head over to the Meadowlands Exposition Center (MEC) to check out the NASTF Spring General Meeting. This will be their first time at the show, and I would be interested to see what the
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group is all about. When the meeting breaks up, I’d hop on Route 3 west and make my way to the best hot dog joint in the world, Rutt’s Hut in nearby Clifton, for a dinner made up of three wellers, a frenchy well, a beef barb and quart of Marvis. Then I’d head to where Tony Soprano was last seen, Holsten’s in Bloomfield, for their delicious homemade ice cream before heading home to rest up for a very busy weekend. Friday afternoon, I’d leave the shop early and sit in on the 2015 NORTHEAST East Coast Resolution Forum (cohosted by AASP/NJ and SCRS), where I could find out what was going on around the country from dozens of industry leaders from all points - east, west, north and south. At 5:30, I’d look in on Tony Passwater’s “How Have We Gotten Where the Industry is Today?” presentation before
getting a prime seat for the highly anticipated showdown between Larry Montanez and Kristin Felder. Having Ed Kizenberger as the referee…I mean moderator…will only add to the fun. After that, I’d hit the show floor to take my first look at everything and anything that’s new, stopping by the AASP/NJ booth to see what demos are going on. Home by 11. Not bad for a Friday night. Saturday morning, I’d get to the show by 8:30 to get a jump on the crowds and spend the morning attending as many seminars as I could from the many offered, including two I-CAR classes, Larry Montanez’s “Estimating and Diagnosis of Structural Damage on Aluminum-Intensive Vehicles and Joining Methods” and AASP/NJ’s Executive Director Charlie Bryant’s can’t-miss “Steering: A Legal Perspective.” After lunch, I’d stop by the booth of NORTHEAST Platinum Sponsor, BASF, and get an autograph and picture with the one and only Ryan Friedlinghaus before finding out how to “Stop Leaving Money on the Table!” from John Niechwiadowicz and Jerry McNee. After that, it would be time to hit the show floor once again, checking out the great deals on products and equipment and stopping off at the new “Hands-On” area to see the incredible custom
paint work of Javier Soto, take a shot at winning a TV at the virtual welding contest and find out about custom wrapping from Wrapmasters East. After a quick freshening up, I’d head five miles east to the city that never sleeps. You have your pick of incredible restaurants in New York, but mine would be the legendary Peter Luger Steak House. There’s a reason they’re known as the “World’s Best.” See for yourself. Next up? The neon lights of Broadway. Again, with so much to choose from, it’s hard to make a decision. But you KNOW I’m going to see Jersey Boys. You can take the boy out of Jersey, but… Once I’m out of the play, it’s time for a drink and a late meal, so I’m heading to the Spotted Pig. Best burger and fries ANYWHERE. Sunday, I’m back at NORTHEAST with my credit card. This is my buying day. I walk the floor one more time, finalizing deals and payments. I’m home by late afternoon, relaxing and feeling fulfilled, knowing I got the best my industry can give me in three short days. So that’s how I’d do it. Take any part of this and do with it what you want. Just make sure not to miss NORTHEAST 2015. NJA
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PRESIDENT’S MESSAGE
THE TIP OF THE ICEBERG
by JEFF MCDOWELL
If you keep up with industry happenings and updates even a little, it was nearly impossible to miss the news of the collision repair industry
being featured on CNN just a few short weeks ago. On February 11, Anderson Cooper 360° aired a special segment, “Are Cheap Repairs Part of an
Insurance Scheme?” (In case you missed it, the segment can be viewed online in its entirety at http://tinyurl. com/CNNCheapRepairs). This special report was explosive for our industry and exposed to the general public something we repairers have known for a very long time: The intrusion of outside parties into the repair process can sometimes have dire consequences for consumers. It also did a good job of detailing legal actions that some shops are taking against insurers that fail to operate with the true customer’s best interest in mind. It’s important to note that the CNN report did a bit of generalizing in spots. There are “good” DRP shops out there, just as there are “bad” shops that are not on Direct Repair Programs. However, by and large, the information presented painted a very interesting picture of the insurer-shop relationship, and left an opening for much more information to come in the future. I’m sure that this is just the tip of the iceberg, especially as industry members’ legal fights continue to crop up across the country. I would advise anyone reading this to spread the word to your customers. Display the Web link listed above somewhere prominent in your shop - the counter, a customer waiting room monitor, even stapled at the top of your final bills - and inform them that this story aired. We need more people to see this coverage. The more motorists who are made aware of what exactly goes into the repair process - and who’s trying to commandeer it - the better. NJA
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EXECUTIVE DIRECTOR’S MESSAGE
CNN Brings National Attention to the Issue of Steering
by CHARLES BRYANT
On February 11, Anderson Cooper 360° aired a program that has the entire industry standing at attention. CNN’s Drew Griffin investigated claims that some insurance companies are skimping on repairs for damaged vehicles in order to pad their profits. The majority of collision industry members saw this report on Anderson Cooper’s show as a good start. Others felt that the show was onesided, inaccurate or even completely wrong and stated that certain retractions should be made. I will be the first to admit that certain issues need to be clarified further and that the show was a bit harsh, as some put it. Yet, in my opinion, it needed to be harsh. You have one industry controlling another industry to the point where people’s lives are at stake, all in the name of a profit. To sugarcoat this would be to condone these practices, and that should never be done. The Automotive Recyclers Association (ARA) responded that the segment was one-sided, unbalanced and included many mischaracterizations and misrepresentations about the quality of recycled OEM parts that ARA member facilities proudly sell. I can’t blame the ARA for sticking up for their members and wanting to clarify the issues. The problems that the collision industry is faced with should not be painted with a one-size-fits-all brush. There is a place in our industry for used automotive parts. However, when an insurer starts insisting on used suspension parts and other safety-related items, a line has to be drawn in the sand. Parts that play a major role in the function of an automobile and safety of passengers should always be replaced with new parts. A State Farm representative responded to the CNN report, claiming that his company only uses cosmetic
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used and aftermarket parts. That is simply untrue. State Farm and quite a few other insurers write for used suspension parts on a regular basis. I know this because I run a Hot Line and get these calls all the time. CAPA responded to the report, basically claiming that the answer to the aftermarket parts issue would be to use only CAPA-Certified Parts. In running the Hot Line for the collision associations in New Jersey for over 20 years, I have found that calls
parts not fitting (including CAPACertified Parts) upon request. On the issue of artificially suppressed Labor Rates, simply put, the Labor Rates have been artificially suppressed for so long that the rates will need to be doubled or tripled in order to catch up to where they should be in today’s market. A prime example of how to substantiate this is to look at the mechanical Labor Rates in New Jersey, which are between double or triple the auto body rates.
Image courtesy of www.cnn.com
come in reporting the same problems with CAPA Certified Parts as nonCAPA Certified Parts (i.e., they don’t fit, they don’t weigh the same, they don’t have the rust protection that OEM parts do, they have missing welds, etc.). In February 1999, Consumer Reports did a front-page comprehensive report on aftermarket parts entitled “Shoddy Auto Parts” that pointed out these issues. The report showed many examples, including the fact that CAPA certification does not fix the problems with aftermarket parts. Also, I can provide links to many examples of aftermarket
The reason for this is not that it costs more to open and run a mechanical shop than an auto body shop. The reason the mechanical rates are so much higher is because the rates have been established by seeking their own level, without an insurer standing between the shop and the customer. Another way to substantiate the need to double or triple the rates is to look at what one of the top-ranked insurers in New Jersey just did a few months ago. On December 10, New Jersey Manufacturers Insurance Company (NJM) announced that they
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EXECUTIVE DIRECTOR’S MESSAGE have adjusted the Labor Rates to double or triple what they previously paid on certain cars for shops that have made the investment in the equipment, training and certification necessary to repair these vehicles safely and properly. There is no doubt that the major lawsuits in both New Jersey and around the country played a major part in this landmark decision. However, NJM should be commended for being the first insurer in New Jersey to acknowledge that the artificially suppressed Labor Rates that insurers have been paying for collision repairs are simply not adequate to compensate collision shops to repair cars safely and properly. Another subject that hit home regarding the CNN report was Direct Repair Programs. Many DRP shops feel that the report painted the picture that no DRP shops do not repair vehicles properly. To that I ask, are DRP shops the problem in the collision industry? Absolutely not; steering is the problem. With that said, are there problems with the guidelines that insurers require shops to meet in order to get on and stay on Direct Repair Programs that need to be addressed, as well as other issues directly related to the DRP systems? Absolutely. Again, the problems that the collision industry face should not be painted with a one-size-fits-all brush. Not all shops on DRPs even want to be on the programs. Some of those on the Direct Repair Programs are on them as a defense mechanism in order to keep their own work from being steered away from their shop. In other words, if certain shops refuse to participate in the programs, you can rest assured that their work will get steered away from them. Even though many of the Direct Repair Programs have restricted repair guidelines that don’t pay for all the necessary procedures required to repair vehicles safely and properly, many of the shops still repair the vehicles sent to them through the DRP correctly and waive getting paid for the things that the DRP guidelines do not allow
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continued on page 47
Image courtesty of www.blumenthal.senate.gov/biography
Senator Calls for Department of Justice DRP Probe
Following a February 11 CNN investigation (http://tinyurl. com/CNNCheap Repairs) uncovering new evidence that auto insurance companies may be directing repair shops to use cheaper and possibly more dangerous parts, US Senator Richard Blumenthal (D-CT) has sent a letter to Attorney General Eric Holder, urging the Department of Justice (DOJ) to investigate. “Contrary to what consumers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs,” Blumenthal wrote in the February 13 letter. “It seems to be common knowledge among auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, quality service, but by agreeing to charge below-market Labor Rates and use cheaper, salvaged, used or even counterfeit parts of questionable quality and safety.” Additionally, Blumenthal requested the DOJ determine whether insurers are in violation of the 1963 Consent Decree or any other federal laws:
INDUSTRY UPDATE According to a 1963 consent decree with the DOJ, a number of insurers were ordered to stop: “sponsoring any appraiser; directing, advising or otherwise suggesting any person or firm do business with any independent or dealer-franchised automotive repair shop; exercising control over the activities of any appraiser; and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of damage to the vehicle or for labor in connection therewith, by use of a flat rate.” Over 50 years have since passed, and consumers and auto repairers possibly remain victims of the very same misconduct insurers were directed to stop doing decades ago.
I urge the DOJ to investigate and make a determination as to whether such practices violate the 1963 consent order or any other current federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts between insurance companies and facilities listed in their direct repair programs or preferred lists. I would also like to request an update regarding DOJ’s understanding of the current signatories of the 1963 consent decree and whether they continue to be bound by the consent decree in light of business transactions in the years since the decree was signed.
More responses to the CNN report can found on pages 10 and 12 of this issue of New Jersey Automotive. NJA
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MECHANICAL CHAIRMAN’S MESSAGE
THEY DON’T BUILD THEM LIKE THEY USED TO!
by KEITH KREHEL
Recently, I thought back to my first car, a 1968 Pontiac Firebird. The car was pretty neat and I truly enjoyed it, as it was equipped with a 350 V8, four-speed transmission and Hurst linkage. (Unfortunately, it didn’t have air conditioning.) I bought it used in 1974 for $575. I presently drive a 2004 Chevy Impala, and I got to thinking about how they matched up to each other overall, since there is a 36-year difference in technology. By giving a brief comparison of the two cars, system by system, I think you will see how far modern automobiles have progressed.
Brakes There is a huge advantage to the Impala when comparing the ’68 Firebird’s four-wheel drum versus the Impala’s four-wheel disc brakes. Stopping a heavily powered “sporty” car like the Firebird was a challenging task, and the factory four-wheel drum brakes did poorly. Here’s why I say this: Drum brakes tend to pull, especially after the first brake job. After that, the drums become different diameters due to machining. Drum brakes’ performance deteriorated quickly upon heavy braking, as the drums held the heat. Water especially affected drum brakes, and I remember not being able to stop at a red light once after passing through a flooded road. Even though I was cautious and going at a slow speed (maybe 20 mph), I could not stop the car even with applying full effort on the brake pedal. Drum brakes are problematic, relatively hard to install and had a lot of small parts that could go wrong. I am still amazed how many times I have come across primary and secondary shoes switched or mismatched side to side. This does not bode well for the professionalism in the field, and stopping this car straight at high speed could be a handful.
Radial tires allow the Impala, which is basically a family car, to out-handle a sporty performance vehicle. Besides superior handling, radial tires last significantly longer, provide a better ride and are much better in snow. Emissions The Impala wins again. The emissions on the Firebird equipped with a carburetor were brutal compared to the modern fuel injection of the Impala equipped with a catalytic converter.
Fuel Mileage The fuel mileage of the Impala is about double that of the Firebird. Another advantage became apparent to me on a trip to California in my Firebird when I traveled to higher elevations. The Firebird ran poorly and emissions worsened, as it was only set up to run at sea level. The higher elevations I traveled through created drivability issues; modern fuel-injected cars automatically adjust to higher elevations seamlessly.
Maintenance Of course, it is the Impala. Modern fuel injection and ignition systems provide reliable operation before a tune-up up to 100,000 miles, not including air and fuel filters, while the Firebird needed a tune-up every 10,000 to 12,000 miles. Points, plugs and condenser, anyone? Oil changes are also less frequent, as 5,000 miles with a mineral-based oil is now the norm versus the 3,000 miles of yesteryear.
Tires Another win goes to the Impala, which is equipped with radial tires versus the bias-ply (red line) factory tires on Safety the Firebird. The Impala - and this one’s not even Although the Firebird was faster, close. Anti-lock brakes combined with turning the car at a decent speed was four-wheel disc brakes allow the car to challenging, as the car was equipped stop quickly and safely, even if the with the bias-ply tires. It would be interbrakes are over-applied. While the esting to see which car would be “faster” Firebird did have two seat belts for both on a tight road course with a lot of turns. front seats (lap and shoulder), they were
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individual belts and prevented any movement by the front occupants, so most people would not use the shoulder belts. The Impala, on the other hand, has modern one-piece belts that allow movement most of the time. Traction The Firebird was horrible in the snow, as most rear-wheel drive automobiles were. Combine this with bias-ply tires, and things could get dangerous. Modern front-wheel drive vehicles equipped with traction control and radial tires provide sure-footedness, allowing me to drive through light snow safely. Some of the older readers of this article (Hi, Mom) can remember how snowstorms used to polarize the area and bring traffic to a crawl. I remember as a child, a lot of neighborhood moms would not operate a car in even the slightest of snowstorms.
Durability There used to be a day when 100,000 was a lot of miles on a car. Now, I regularly expect 250,000 to 300,000 out of a regularly maintained vehicle. The automobile bodies themselves are holding up much better as well, even though road salt usage has increased dramatically over the years in our area.
Paint and Appearance Modern cars with clearcoat over paint hold up very well and without a lot of maintenance. I’m not sure if I ever even waxed the Impala and it still looks great. Really there’s no comparison between the two vehicles, as one is head and shoulders above the other (not talking style). No, they don’t make them like they used to, but we should all be grateful. NJA
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STAYING AHEAD
VENDOR SPOTLIGHT by Jacquelyn Bauman
R
OF THE
CURVE:
METROPOLITAN CAR-O-LINER CONTINUES TO ADAPT TO AN EVOLVING INDUSTRY
egardless of what business you’re in, there are two ingredients that are essential to success: equipment and training. In the automotive repair industry, this is especially true, as the lives of your customers depend on your ability to stay up-to-date with changes in both tooling and technique. Luckily, for body shop owners in the Northeast, Metropolitan Car-o-liner helps fulfill these needs. Metropolitan Car-o-liner is always on the forefront of a constantly evolving industry, ready to take on new needs and challenges as they arrive.
“Metropolitan Car-o-liner has always adapted to the changes in the collision repair industry,” says President Dave Demarest, Jr. “We supply the latest equipment and training so our customers can provide safe and profitable repairs.” On the eve of GM’s first massmarketed, US-built uni-body vehicle almost 35 years ago, the company first opened its doors in Northvale, NJ. It utilized a small space within Stateline Auto Body, the shop belonging to Dave Demarest, Sr. Dave Sr. was introduced to the international Car-O-Liner through his
shop’s relationship with Volvo. He had the opportunity to evaluate the company’s new frame repair bench and immediately saw the value in providing Car-O-Liner products to his market. A number of things have changed since then. Aluminum has replaced unibody as the newest thing in collision repair, and the company now operates out of a 9,200-square-foot facility in Mahwah — double the size of its previous location and boasting a larger warehouse, training facility and office space.
The Metropolitan Car-o-liner team: (back row, left to right) Dave Demarest Sr., Stalyn Deleon, Dennis Farrell, Dave Demarest Jr., Anthony Cetani, Mike Casey, Blake Darling, Tim Garner and Mike Demarest. (Front row, left to right) Cheryl Formicola, Kathy Demarest and Jon Santiago.
The new Metropolitan Car-o-liner facility is almost double in size of its previous location to meet increased industry demand.
Metropolitan Car-o-liner is approved by a number of important carmakers, including Audi, Bentley, BMW, Buick, Cadillac, Chevrolet, Chrysler, Daewoo, Dodge, Ford, GMC, Hyundai, Infiniti, Isuzu, Jaguar, Jeep, Kia, Lexus, Lincoln, Mitsubishi, Nissan, Saab, Tesla, Toyota, Volkswagen and Volvo — and it’s no secret why the Car-O-Liner brand is so widely respected across the industry. “We’re proud that Car-O-Liner has the OEM equipment approvals of almost every manufacturer, including those with certified structural aluminum programs,” Dave Jr. explains. “With Ford’s new F150 aluminum body pickup, repairs, equipment and training will be new to many in our industry.” When it comes to improving the collision repair process, Metropolitan Car-o-liner doesn’t solely provide shops with the right tools and equipment they need to thrive: they also help to improve knowledge through training. Since 2003, Metropolitan Car-o-liner has been an I-CAR volunteer training site. Just four years later, it was recognized for training over 2,500 technicians, appraisers and adjusters. With its size, the new facility lends itself to the hybrid boardroom and classroom dynamic that Car-O-Liner provides in its training. “It was important to find a new location that could accomodate larger training classes,” said company owner and founder Dave Demarest, Sr. at the opening ceremony for the new facility. “As it is, our industry is plagued by improper repairs. We’re trying to rectify that gap we see in our field before it gets any worse.” He went on to laud the individuals who are willing to stand at the front lines of their industry and learn. “The industry is changing, and it’s great to see technicians who are willing to grow with it. This is your livelihood. It’s important to stay educated on the trends occurring in your line of business.” “Shop owners need to keep abreast of changes in vehicle construction and reconstruction,” says Dave Jr. “They are going to see increased use of aluminum, higher strength steels and alternative materials.”
Considering Metropolitan Car-oliner’s dedication to improving the industry, it’s no surprise that it’s an active participant in the NORTHEAST® Automotive Services Show since the first year. For the 38th annual event on March 20-22 at the Meadowlands Exposition Center in Secaucus, Metropolitan Car-o-liner is already planning one of the biggest booths at the event. Check out Metropolitan Caro-liner at NORTHEAST 2015, booths 117
and 217, and register for their Saturday morning presentation by Larry Montanez, “Estimating and Diagnosis of Structural Damage on Aluminum-Intensive Vehicles and Joining Methods” at www.aaspnj northeast.com/seminars-demos.shtml
NJA
For more information on Metropolitan Car-o-liner, visit their website at www.metrocol.com.
New Jersey Automotive | March 2015 | 19
LOCAL NEWS
Mobile Repair Backlash Escalates Since addressing the controversy surrounding mobile repairers in our August 2014 cover story (“Lot Lizards And Broken Laws”), New Jersey Automotive continues to receive regular reports from readers that a number of these unlicensed businesses are still doing work at dealership parking lots and other outdoor areas, failing to take the proper safety and equipment precautions necessary to perform a proper job. One Bergen County-based shop owner specializing in high-end repairs tells us that “quite a few” of the dealers that send him work also welcome unlicensed repairers to set up makeshift operations in their lots – even in these current cold weather conditions. “If I had an $80,000 car and I look outside and see somebody painting it, I’d think twice about using that dealer,” he says. “These guys aren’t using flex additives or anything. It might seem good at first, but then six months down the road, the paint is just flying off the bumper. You have guys coming in with broken-down vans, or even guys in double-wide trailers pulling cars in and spraying them. It doesn’t seem like it’s legal. How are these guys allowed to spray outside? An unsuspecting customer doesn’t realize [the kind of work that’s been performed], but when you see it as a professional, it stands out. Also, what are they doing with their waste?” “I’d like to see it stopped or regulated,” adds another reader, who says he wants to see the Motor Vehicle Commission at least send out warning letters to these mobile operators. “It’s just not a fair playing field when I have to pay for a building and all that’s involved in a legitimate business, and all this guy has to do is pay for his gas and his materials to work out in the open air. If a guy goes out and does four or five bumpers a day with no overhead, he’s making a decent living, but you can’t open up a shop and just paint cars and not have a license.” If you are experiencing issues with mobile repair businesses in your area, please contact New Jersey Automotive Editor Joel Gausten at (973) 600-9288 or tgpjoel@verizon.net. NJA
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AASP/NJ Veteran Edits Collision Industry Textbook
Celebrating his 13th year as an automotive educator in 2015, former New Jersey shop owner and past AASP/NJ Board member Bob Magee does much more than simply teach from a textbook – he helps create it. Recently, Magee (who teaches Automotive Engineering & Design at Bergen County Technical High School in Teterboro) served as one of the editors for the sixth edition of Auto Body Repair Technology, an extensive book used in collision repair classes around the world. He previously served in the same capacity for the fifth edition, published in 2008. Magee’s entry into the world of book editing began after he inquired about making some changes to the then-current book used at his school. “When I first came here and was told I had teach out of the book, I looked at it and thought, ‘This book is so outdated. Why would I teach out of it?’” he remembers. “I emailed the company and said, ‘I’m supposed to be teaching out of your book, but there are so many mistakes and things that are outdated in it. What would you suggest?’ They replied that since I was so knowledgeable on the subject, I should try editing one of their chapters.” Before long, Magee was going through every line and photo in that chapter, suggesting substantial revisions along the way. “They sent me a letter basically saying they never had so much input on one of their chapters before,” he says. “That’s when they asked me if I wanted to do the whole book.” In addition to having an impact on the fifth edition of Auto Body Repair Technology in ‘08, he also edited part of James Duffy’s Collision Repair Fundamentals book, going as far as receiving sole author credit for that title’s accompanying Instructor’s Manual. Unsurprisingly, Magee’s involvement in the books has led to positive feedback from the various senators, freeholders and other officials who visit the school. Even after more than a decade away from everyday life in a professional repair facility, Magee is still committed to doing things right, As he says, “You can take me out of the body shop, but you can’t take the body shop out of me!” NJA
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NATIONAL NEWS Regarding the Consent Decree, Judge Presnell commented in his order that the much-discussed 1963 agreement is undeserving of consideration in the current legal battle unfolding in his state:
Consent Decree, Litigation Under Siege in FL As reported in last month’s New Jersey Automotive as the issue went to press, a controversial January 21 order issued in A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al. (one of the more than 20 antitrust suits currently consolidated in the Middle District of Florida) has introduced a serious roadblock in front of the industry’s efforts to address insurer abuse in court and delivered a high-profile blow to the effort to enforce the 1963 Consent Decree. In his ruling, US District Judge Gregory A. Presnell dismissed one of the seven counts in the A&E case, “quasi-estoppel,” with prejudice, meaning that the plaintiffs cannot refile a revised argument for it. “Quasi-estoppel” prevents one party from taking a position inconsistent with a position that was previously advocated, regardless of whether the party to be estopped intended to misrepresent or conceal facts. Although Florida courts have long recognized that equitable estoppel serves as a defense, Judge Presnell stated that it was unsuitable as a plaintiff argument: In Count III, the Plaintiffs seek to have quasi-estoppel applied in regard to the repair estimating databases...The Plaintiffs allege that the Defendants “have relied upon and asserted the validity/authority of the databases…when it has been to their respective advantage” but that, in other instances, the Defendants “have refused to compensate and/or fully compensate Plaintiffs for materials expended and work performed, including labor and labor rates, upon reliance of these very same guides, claiming that they are unnecessary to complete the work at hand”…The Plaintiffs seek to have the Defendants estopped from denying the applicability and reasonableness of the repair databases… However, while Florida courts recognize the doctrine of quasi-estoppel, they do not recognize it as a cause of action. The Plaintiffs do not seriously attempt to argue to the contrary, and do not cite any cases in which a Florida court has permitted anyone to bring suit on the grounds of “quasiestoppel.” The Court’s research has also failed to uncover any such cases.
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In the Amended Complaint, the Plaintiffs repeatedly refer to a consent decree entered in a 1963 suit between the United States on one side and three insurance trade associations on the other. (Doc. 167-5). Although some of the practices at issue in the consent decree are alleged to have occurred in the instant case, none of the parties in this case were parties to the 1963 case, and the Court does not find the 1963 consent decree to have any relevance to the instant case.
The full text of Judge Presnell’s decision can be read at http://www.repairerdrivennews.com/wp-content/ uploads/2015/01/gov.uscourts.flmd_.294598.291.0-0121-15.pdf. On February 10, the plaintiffs filed a 92-page amended complaint to address the remaining counts of the case previously dismissed by Judge Presnell without prejudice. These include boycott and price-fixing in violation of the Sherman Antitrust Act, conversion, “quantum meruit,” tortious interference with business relations and unjust enrichment. In this revised complaint (available in full at www.repairerdrivennews.com/wpcontent/ uploads/2015/02/gov.uscourts.flmd_.294598.296.0.pdf), the plaintiffs make their intentions behind their suit clear: In the American marketplace, there are two types of body shops. There are shops who strive to serve the customer, the owner of the car, and there are those shops who believe the insurance company is their customer. The defendants have successfully created a “market” system that rewards the body shops that will cut corners so they can increase profits and punishes body shops who are unwilling to compromise the quality or safety of the American consumers repair. The whole intent of antitrust actions was and is to increase competition for the sole benefit of the American consumer. Defendants’ actions have violated the letter and the spirit of the law. Instead of providing the best quality repairs for the lowest cost, they have fixed the costs to their utmost benefit and forced the market into a race to the bottom in terms of quality to the customer.
According to a February 10 report by www.Repairer DrivenNews.com, insurers that have been sued in Arizona, Alabama, California, Illinois, Kentucky, Michigan, New Jersey, Oregon, Pennsylvania, Virginia and Washington have until February 20 to respond to the complaints filed against them by shops in their states. Judge Presnell will be the one to hear these cases. New Jersey Automotive will update readers on this story as it develops. NJA
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NATIONAL NEWS
Edmunds Releases Controversial Report on Aluminum Repair Costs With the much-discussed aluminum-intensive 2015 Ford F-150 now hitting America’s roadways, consumers and auto body pros alike are curious just how the vehicle will compare to steel-body vehicles when it comes to repair lengths and costs. Edmunds.com recently put the new F-150 to the test – with very controversial results. In a two-part video/three-part story posted at www.edmunds.com on January 26, Edmunds Associate Editor Travis Langness struck the right quarter panel of a brand-new, $52,000 F150 truck twice with an eight-pound sledgehammer. In addition to causing damage to the panel, the hits resulted in a crack in the right taillight lens that didn’t affect the actual light’s functionality. Langness took the damaged truck to a local dealer, Santa Monica Ford-Lincoln, for a quote and repairs. He was originally quoted $2,082.73 and seven to 10 days to complete the repair the panel, which the dealer predicted would take at least 20 hours. Additionally, he was quoted $60 an hour for the work instead of the dealer’s usual $120/hour aluminum rate because he was paying out of pocket. According to Langness, the dealer’s service manager said the job would take “twice as long as steel.” Less than a day after dropping off the truck, Langness received bad news from the dealer: The taillight – which included a blind-spot sensor – was only sold as a complete unit. This brought the amount to replace the light from $106.28 for a standard light to $887.25 for the F-150 unit. When the repair was finally completed, the job took 24.4 hours and cost $2,938.44 (including body labor, parts, paint labor/supplies and sales tax). Twenty of those hours were for the actual aluminum body panel, while the remaining 4.4 hours were for removing the molding and other procedures. Based on these figures, Edmunds took the discussion even further: If we go with the theory that our service advisor presented...and assume fixing a steel panel would take half the time, it works out to just 14.4 hours of labor. [If you work that into the estimate], you’ll get a total of $2,338.44. That’s $600 less. Assuming that the Labor Rate for aluminum was the $120 an hour the service advisor told us, and going with our quoted time of 20 hours [for] body labor to pound that panel out [plus the other work they did], we’re looking at $4,138.44. That’s a difference of $1,800, a price increase of nearly 77-percent versus the cost of repairing a steel panel for 10 hours at $60 per hour...Imagine you’ve got a $500 or even $1,000 deductible on your insurance policy. You hit a tree, tell the body shop guy you have no idea what happened, but insurance is paying to fix it. Your insurance premiums may go up, but the remainder of the cost is passed along to your insurance company. In this scenario, the associated insurance cost for owning an aluminum-bodied vehicle likely goes up too. Maybe it already has. There’s plenty to speculate about when it comes to the new 2015 Ford F-150, and we’ve got a year to keep testing out our theories, but there are a few things we know for sure. One: It takes more time, unique
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tools and specialized training to fix aluminum body panels. Two: Those repairs, whether through higher Labor Rates or longer service times, cost more money than repairing steel.
Naturally, the manufacturer of the F-150 was quick to respond to the Edmunds story. In a Ford earnings call on January 29 (available as a transcript at www.thestreet.com/story/13028379/15/ford-motorf-earnings-report-q4-2014-conference-call-transcript.html), Ford President/CEO Mark Fields stated that the large discrepancy between aluminum and steel repair noted in the report was the result of dealer error: We saw the [Edmunds] report and unfortunately... the dealer was incorrect. The amount of time to repair based on the standards that we have developed and also shared with the dealers, it would have been about half the time, so it wasn’t quite correct..[O]verall in terms of what we’ve done, we trained over 750 dealers to be certified. Unfortunately this dealer that [Edmunds] went to was not one of them.
As sales of the 2015 F-150 continue to escalate, the company is working to inform consumers of the benefits of utilizing certified/recognized repair facilities. According to Ford Truck Communications Manager Mike Levine, anyone who purchases an F-150 or any Ford vehicle is encouraged at the time of purchase to register at www.owner.ford.com to receive regular information about their vehicles. Additionally, the site offers a special search feature that allows customers to specifically look for F-150-certified/recognized shops in their area that can perform aluminum structural repairs. (To sample the search function without having to register, go to www.owner. ford.com, click on Parts & Accessories, select “Why Ford Collision Parts” and use the “Locate a Dealer” function to search by zip code. Then, use the Advanced Search Filters at the bottom to find area dealers and independents in the F-150 Aluminum Repair category.) Responding to the issues raised by the Edmunds report, Levine is adamant that the video and article do not reflect the everyday realities of repairing these vehicles. “The repair should have taken less than 10 hours, which is comparable with the time it would have taken to repair a steel vehicle with similar damage,” he says. “One incident with one vehicle at a particular dealer in California is not representative of how things will be for all customers.” Additionally, Levine says that the insurance industry’s response to the aluminum-intensive F-150 has been calmer than some have suggested. “When the truck was introduced, we said that [insurance rates] would be comparable to the previous truck and other full-size trucks in the segment,” he offers. “[For example,] State Farm’s make and model rate for the all-new F-150 is in line with that of the ’14 F-150 – and that comes direct from State Farm.” Calls by New Jersey Automotive to Santa Monica Ford-Lincoln for their side of the story were not returned at press time. The Edmunds report can be viewed at www.edmunds.com/ford/f-150 /2015/long-term-road-test/2015-ford-f-150-aluminum-bodyrepairs-part-1-with-video.html. NJA
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LEGAL FEATURE by Mitchell Portnoi, Esq.
DIVORCE LAW: A PRIMER
In New Jersey, a no-fault divorce may be filed if the parties have not lived together as husband and wife for 18 months preceding the filing, and both remain as occupants of the state and reside in New Jersey. A divorce based on fault (domestic violence, adultery, etc.) may be filed at any time. The issues involved in a divorce may include child custody issues, equitable distribution issues, visitation and spousal support, among others. The law has evolved and has become extremely complicated with respect to these issues. While two reasonable adults can often resolve many (if not most) of the issues surrounding a divorce, the hostilities involved in many of these situations do not allow the parties to get to the point of rationally resolving the myriad of problems that need to be addressed. The courts in New Jersey, as well as many other states, have set up programs where matrimonial litigants can mediate and/or arbitrate the issues that come up in a divorce action. In fact, child custody and visitation issues (as well as child support) are set up for a mandatory mediation session immediately upon a case being filed if there are minor children involved. The
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courts will act in the “best interests of the child” once requested to make decisions regarding custody, visitation and the like. Courts will look to the behavior of the parties and attempt to always keep the child’s welfare at the forefront. The most complex issues that matrimonial courts deal with involve “equitable distribution” of the marital assets of a divorce. The issues can be how to address assets given (inherited) by one of the parties to a divorce or how to address the debts of one or both of the parties. The issues may involve the appreciation of an asset which was acquired by one of the litigants prior to the marriage. Should the spouse be allowed to share in the appreciation that took place during the marriage? Some states differentiate between active and passive appreciation as to determine whether the spouse will partake in the benefits of the appreciated property or asset (possibly a business). The purpose of this article is to advise that the issues involved in a divorce can be extremely complicated and often need the assistance of competent legal counsel. The firm of Post, Polak, Goodsell et.al. has been handling complex matrimonial matters for 30-plus years and ranks among the leaders of the matrimonial bar in New Jersey. Please contact us regarding your matrimonial needs. NJA
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COVER STORY by Joel Gausten
It’s almost here. On March 20-22, the 38th installment of the NORTHEAST Automotive Services Show will arrive at the Meadowlands Exposition Center in Secaucus. With a host of special events being added almost daily, our press time impression was that this will undoubtedly be the most extensive show of its kind in automotive industry history. Unsurprisingly, a vast array of vendors and national groups have signed on to be a part of this game-changing weekend. Counting down the days until NORTHEAST hits the region, Platinum Sponsor BASF is looking forward to introducing attendees to R-M® Onyx HD, a family of lowVOC finishes that can be mixed as either a waterborne or solvent-borne system. “It is easy to apply and offers a fast-drying system that meets strict VOC regulations,” offers BASF Marketing Services Manager Tina Nelles. “The features of R-M Onyx HD provide the benefits of decreased processing time and reduced material cost.” Customers can visit www.refinish.basf.us/rm to gather additional information and speak to a sales team member on how these and other products can help make their shop more efficient and profitable. Not surprisingly, the system has already attracted a legion of fans - including none other than West Coast Customs’ Ryan Friedlinghaus, who will be making a special guest appearance at the show on March 21, from 10am-2pm. “Having Ryan attend was a great fit based on our decision to showcase R-M Onyx HD at the show,” offers
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Nelles. “Ryan is based out of Burbank, CA and utilizes R-M Onyx HD to meet the strict VOC regulations.” Although Web networking and communication have grown considerably in this industry in recent times, BASF still appreciates the great opportunities provided by attending NORTHEAST in person. “Trade shows are still highly important in our marketing plan, as they offer BASF the opportunity to strengthen our brand message and have direct interaction with our target market to greater understand their needs and challenges, allowing us to focus our efforts on improving the customer experience,” Nelles says. “NORTHEAST continues to grow, and our presence at the show is a key marketing activity that offers us the opportunity to strengthen our relationships with customers and prospects and highlight the total solutions that R-M and Glasurit offer the industry.” After scoring big at last year’s NORTHEAST with their unforgettable F-150 display and training opportunities, Gold Sponsor Ford anticipates another great year at AASP/NJ’s flagship event. “NORTHEAST 2014 provided us with a great venue to promote the reparability aspects of the new F-150, as well as to speak directly with repairers about many Fordapproved repair procedures,” offers Ford Senior Damageability Engineer Gerry Bonanni. “We were very pleased with the show’s attendance, which is why we plan to return in 2015. We thought it was important to be at the forefront of the truck’s launch and answer technicians’ questions face-to-face. NORTHEAST is a great opportunity to convey that information to them directly.”
Ford will use its presence at NORTHEAST to also spotlight www.TakeAGoodLook.com, an online campaign to help consumers understand why using OEM parts matters. The new website helps consumers navigate the collision repair process and identify the right insurance policy, the right repairs and the right parts. The site is intended to be an easy resource for shops to help inform their customers that not all collision replacement parts are created equal. (For more information on www.TakeAGood Look.com, see page 55.) While hundreds of vendors display their impressive products, industry leaders and participants from across America will convene at NORTHEAST for a series of national association meetings. March 20 will see the first AASP National Board meeting of 2015, with representatives from state affiliates gathering to set the agenda and tone of the nationwide group in the months ahead. “A good part of the meeting is simply a business meeting – reviewing financial statements, membership reports, benefit reports, et cetera,” explains AASP Administrator Judell Anderson. “The Board also discusses current industry issues and determines how and if AASP National might contribute to the dialogue. One of the more interesting parts of the meeting is the affiliate roundtable exchange, where each affiliate shares the activities and initiatives that they have recently undertaken. This sharing of ideas and best practices that each affiliate can draw on is invaluable.” In Anderson’s mind, NORTHEAST is an ideal venue for this kind of AASP business. “The NORTHEAST Show is a great event, and draws the attendance of affiliate representatives [many of whom are on the eastern seaboard], regardless of whether the national meeting is held there or not,” she says. “It just makes sense to combine the two in terms of convenience and affordability. There’s also the added benefit of being able to connect with other industry organizations and exhibitors in a more accessible venue.” Prior to the start of NORTHEAST, the National Automotive Service Task Force (NASTF) will use the Meadowlands Exposition Center to host Spring Board and General Meetings on March 19. Teresa Bolton (ASE) will moderate “Validation of Collision Repair Workmanship: What Should OEMs Consider? What Do Shops Hope to Avoid?” This special collision-focused panel will feature Farzam Afshar (VeriFacts), John Bosin (I-CAR), Aaron Clark (Assured Performance), Gary Ledoux (American Honda) and Gary Wano (G.W. & Son Auto Body). The collision panel discussion is early on the agenda for the NASTF Spring 2015 General Meeting, which begins at 1pm. While pre-registration at www.nastf.org/Spring2015RegForm is not required to attend the NASTF General Meeting, it is encouraged. More information about NASTF General Meetings is available at www.nastf.org/GeneralMeetings.
NASTF Executive Director Skip Potter is excited to bring his organization into the world of NORTHEAST. “I have two objectives for being there,” he shares. “One is to get the word out about NASTF to those who are in that region. Number two is to continue the NASTF discussions that have taken place for the last 15 years.” Emphasizing their commitment to supporting the national collision repair industry, AASP/NJ will once again co-host the NORTHEAST East Coast Resolution Forum & Leadership Meeting with the Society of Collision Repair Specialists (SCRS). A NORTHEAST mainstay for decades, the afternoon gathering (held this year on Friday, March 20) welcomes industry leaders and participants from across the country for an in-depth, interactive discussion on the current state of the collision repair industry. The East Coast Resolution Forum has always provided an exceptional outlet for auto repair industry market leaders and influential representatives to network and learn from other state and regional collision repairers or associations facing very similar issues. For SCRS Executive Director Aaron Schulenburg, being an active part of this annual event provides his association an opportunity to connect with state affiliates and address some of the common issues affecting all segments of the industry. “Any time shops and leaders in a market have an opportunity to sit down and talk through the evolution of issues, it is valuable to the industry,” he says. “Oftentimes, the issues stay the same, but the nuances to them change. Open discussion amongst industry leaders is a really healthy thing that helps to address some of those changes. Obviously, there’s been a lot of activity over the past year that has opened a lot of people’s eyes. There are regulatory changes, while the legal landscape is changing with the filing of a lot of these cases. There are a lot of association activities that have helped to inform and represent members in different markets, so the Forum discussion allows all that to be put on the table as we look at potential solutions.” The East Coast Resolution Forum will again be moderated by longtime participant Ed Kizenberger, executive director for the New York State Auto Collision Technicians Association (NYSACTA) and the Long Island Auto Body Repairmen’s Association (LIABRA). After seeing the Forum evolve greatly over the last several years, Kizenberger is continually impressed by the variety of representation offered at the annual event. “When we first started out, it was New York, New Jersey, Pennsylvania, Connecticut [and] Rhode Island,” he recalls. “Then we started to get people from Vermont and the Washington DC area, and people as far west as Chicago. Last year, we even had people as far away as Oklahoma. Obviously, they see some value in that portion of the show, and it obviously benefits the show as a whole by having a more diverse crowd attend.” New Jersey Automotive | March 2015 | 35
COVER STORY Away from the show floor and national association events, NORTHEAST gives attendees a chance to expand their understanding of the industry’s most controversial news and issues. On March 20, New Jersey Automotive contributor Larry Montanez (Lange Technical Services /P&L Consulting) will face off against Kristen Felder of CollisionHub (www.collisionhub.com) during
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“Industry Showdown: Montanez & Felder Tackle the Issues.” Felder and Montanez will be discussing and debating the latest issues affecting automotive repair, including training, insurer-mandated parts procurement, autonomous cars, paint and materials reimbursement, cycle time, lawsuits, consolidation, post-repair inspections and, of course, aluminum. The presentation will end with an open-mic
forum, during which attendees can ask the experts anything and everything. Considering that Montanez and Felder are two of the industry’s most vocal personalities, what should readers expect when they walk into the room? “The truth,” answers Montanez. “We’re going to try to cover all different aspects of what’s going on in the collision repair field. I’m going to answer questions truthfully and give as much information as I can.” Formerly a corporate trainer for State Farm and DRP director for Nationwide, Felder will discuss the role of the insurance industry at the event. Based on her experience on both sides of the table, she hopes to offer perspectives that might counteract some of the common misconceptions that exist between shops and carriers. “[Adjusters] want nothing more than what [shops] want,” she insists. “They want a happy customer, and they want a car that’s repaired properly. Where we come into odds is the definition of what’s ‘proper.’ An insurance adjuster’s version of proper and a particular body shop’s version of proper are two different things, and that’s where we part ways.” When not participating in the “Industry Showdown,” Felder will maintain an active presence at NORTHEAST by interviewing attendees throughout the weekend for CollisionHub. Although she regularly travels around the country to cover the industry at-large, she feels that there is something truly unique about spending time in this area. “What I enjoy the most about [this market] is that it’s a really passionate owner base,” she says. “You never have to wonder about what the people of the Northeast think or feel about anything.” Montanez’s involvement in NORTHEAST also extends beyond the Friday night debate. On March 21, he will lead “Estimating and Diagnosis
of Structural Damage on AluminumIntensive Vehicles & Joining Methods,” an early morning presentation facilitated by Metropolitan Car-o-liner that will cover the differences in how aluminum and steel vehicles absorb and manage collision impact forces and energy. The class will also cover attachment methods and welding differences. Montanez is hopeful that attendees will take advantage of his course – as well as what will be available elsewhere on the NORTHEAST floor – to help them make a smooth and safe transition from steel to aluminum repair. “I think aluminum is misunderstood in terms of what needs to be invested and purchased,” he offers. “That’s primarily because of the misunderstandings of salespeople and collision repair personnel who think they know what they’re doing. As time goes by, you’ll see more and more issues with aluminum coming
out, and who’s doing what. It’s probably going to get a little bit uglier before it gets better. By going to NORTHEAST, technicians and shop owners will have some hands-on classes and programs that will assist them in understanding what’s available to them in the market.” On March 21, AASP/NJ Executive Director Charles Bryant will join noted industry attorneys James Mackevich, Joshua S. Bauchner and Mitch
Portnoi for “Steering: A Legal Perspective.” The 60-minute discussion will shed a much-needed light on the possible legal solutions to collision repair claim issues. Beyond addressing the ever-present steering issue, NORTHEAST will provide a platform for repairers to discuss a variety of other dilemmas impacting their success in the field. On March 20 and 21, AEII President Tony Passwater will preside over “How
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COVER STORY Have We Gotten Where the Industry is Today?” These are two one-hour sessions that will take an honest look at the strategies, practices and tactics that the insurance industry has implemented to direct the collision industry to where it is today. “The insurance industry has been continually taking advantage of the collision repairers, but it’s been in a slow, methodical manner, so a lot of people didn’t know it was happening,” Passwater says. “This seminar explains where the industry has been and what has been happening to them.” In addition to exploring issues including insurer-mandated parts procurement and the multitude of lawsuits springing up throughout the country, the talk will focus on the implications and historical significance of the 1963 Consent Decree. Like many industry advocates, Passwater is encouraged by the high level of action and dialogue currently occurring within the collision repair community. In his mind, this positive trend is the result of advancements in how people communicate over the Internet. “We’ve always been isolated; we’ve always been told, ‘You are the only one,’” he observes. “It wasn’t until fairly recently that there were crusaders who were standing up for what’s right and were trying to do something about it in their own areas. Now all of a sudden, the information is there, and they’re seeing there is a group of people in many different parts of the country fighting the same issues and trying to do the right thing.” This spirit of industry collaboration carries on in other events scheduled throughout the NORTHEAST weekend. A full listing is available to the right. For more information, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show on YouTube page (www.youtube.com/AASPNJ NORTHEAST) or follow the show on Twitter @AASPNJNORTHEAST. NJA AASP/NJ would like to thank this year’s NORTHEAST 2015 sponsors: BASF (Platinum Show Sponsor), Ford (Gold Show Sponsor), Axalta Coating Systems (Door Prize Sponsor), Innovative Solutions / Pro Spot (Lanyards Sponsor), Mitchell International (Seminar Sponsor), Harbortouch (General Sponsor)
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NO BRAKES by Ron Ananian
THE UNVARNISHED
TRUTH
I often wonder how cars get into such a state of disrepair. I also wonder if people realize the danger they’re in. Lastly, I wonder if it matters. Ignorance must be bliss when it comes to maintaining a vehicle correctly and safely. I think about the obligation of the repair shop. If someone brings you a vehicle for repair, are you obligated to decide if it’s worth repairing? Morals and because on top of all the mechanical repairs, the lower rocker auto repair...perhaps it’s an odd combination. panels were so rotted you could drive your fist through them. AND THIS IS WHERE OUR STORY BEGINS... A 2000 Jeep Grand Cherokee showed up on our doorstep last THE BOTTOM LINE IS... month; the owner was the daughter of someone who was quickly Vehicle owners have a responsibility to maintain their cars, becoming a regular customer. We had been doing something right but they first need to find a mechanic or repair shop they trust – for the parents, and now they trusted us to do the right thing by one they can talk to and who talks to them. As a repair shop their daughter. It was a pretty strong indicator we were doing our owner and technician for over 40 years, I believe it is my obligajobs well. tion to keep customers safe. That sometimes involves telling them The Jeep was in for a visual look-over and four-wheel brake it’s time to move on. It’s more than a question of honesty; it’s inspection. As a recent college grad, the daughter was about to self-respect and morality on the part of the repair shop. However, begin a daily 45-minute ride to work. part of the problem with that line of thinking is that some people “Please tell me what it needs,” she requested. After our com- can’t handle the truth. They don’t have enough “smarts” to know prehensive two-page evaluation and vehicle checklist, the answer a good shop from bad, a crook from a preacher. Somehow, all of was two words: “A LOT” us get lumped into the same barrel. With just over 140,000 miles on it, the Jeep had seen better The “road” knows no self-pity. Traveling down it in a twodays. The power steering line was leaking, the engine had several ton missile and suffering a failure can only lead to a problem for smaller oil leaks and the trans was so low it didn’t show fluid on the vehicle owner and me, the guy who tried to repair it last. But the dipstick (but still seemed to shift okay). Of course, the pan remember this: If vehicle owners choose not to listen to the mewas so rusted that it was porous and leaking fluid. The main left chanic’s evaluation, then the road they choose is of their own side brake line had a rust blister in it that said, “Hey, I’m a zit. making. Keep records and supporting test/evaluation results on POP ME!” The left rear track arm rubber support bushing was file should the need arise. MIA, while the left rear-axle seal was providing a form of rust Remember, you can’t make a wrong turn down the right proofing to the left side inner fender well and floor pan. Belts, street. Always know where you’re going and how you are getting hoses, tune-up and service parts, brakes, tires...It really needed A there if you want to survive and prosper in auto repair. LOT! NJA So that’s just what we told the owner: Take the money you were going to spend and use it as a down payment on a new car
’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good mechanics aren’t expensive; they’re priceless.” Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.
Meet the Car Do ctor during his LIVE broadcast at NORTHEAST® 20 15 Saturday March 21 2-4 pm
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EXECUTIVE DIRECTOR’S MESSAGE continued from page 14 for. The problem with that is that the insurers attempt to use those guidelines against the non-DRP shops as a standard. At the same time, there are others in our industry who repair vehicles exactly the way that the DRP guidelines
call for, and this is the problem. The real issue is not DRP shops. The real problem is steering, better described as the root of all evil. Steering is the basis of many of the current problems in the collision industry. At the present time, insurers come into
non-DRP shops, attempt to get them to repair vehicles for ridiculous amounts and fail to pay for needed and necessary operations to repair vehicles safely and properly. If the non-DRP shop refuses to go along with them, the insurer does everything in their power to convince, persuade or even intimidate the vehicle owner to take the vehicle to one of their DRPs, where they claim the DRP will repair the vehicle for the amount of their estimate. But mysteriously, when the vehicle comes out of the DRP shop, the final bill is usually as much or often even more than the non-DRP shop was asking to repair the vehicle. What makes this work is the fact that the DRP becomes the appraiser for the insurer when the vehicle gets to the shop. The shop is then allowed to add hours to the estimate in order to compensate for the restricted guidelines and wind up with a final estimate that will allow for a reasonable profit. The point of steering is not actually to get the customer to go to a DRP shop. The point is to get the non-DRP shop to buckle and take whatever the insurer is willing to pay in fear of having the job steered away. This whole system is a well-thought-out scam put together by the insurance industry, and it needs to STOP NOW! The bottom line is that this story needed to be told. Although I have to agree that it may have fallen short of getting into the full details of the problems (and it may have unfairly painted some of the players in a not-so-good light), this effort needs to be kept alive. More shows like this need to be aired so the full story can finally be seen and those who were painted in a poor light should get the opportunity to share their side of things. One thing is for sure: AASP/NJ will be watching and doing all in our power to keep the attention on the injustices that our industry is faced with on a regular basis. With that said, once again I will remind everyone that there is strength in numbers and there could not be a better time to join the AASP/NJ. I can be reached at (732) 922-8909. NJA New Jersey Automotive | March 2015 | 47
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ARANJ 2015 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 2nd Vice President Darryl Carmen Lentini Auto Salvage 908-782-6838 darryl@las-parts.com
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 2015 Board of Directors Mike Ronayne Tilghmans Auto Parts 609-723-7469 tilghmans@snip.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 Bert Witcraft Auto Express 856-728-8367
Ed Silipena American II Autos 609-965-6700 esilipena@yahoo.com Harry Shover Porchtown Auto 856-694-1555
Norm Vachon Port Murray Auto 908-689-3152 portmurrayauto@yahoo.com
ARANJ
Legal Update
The Automotive Recyclers Association of New Jersey
New Jersey Supreme Court Settles Spill Act Statute of Limitations Dispute
Historically, property owners and their attorneys operated under the belief that no statute of limitations applied to contribution actions under New Jersey’s Spill Compensation and Control Act (“Spill Act”), N.J.S.A. 58:10-23.11, et seq. In August 2013, in Morristown Associates v. Grant Oil Company, the Appellate Division of the New Jersey Superior Court deviated from this popular and widespread opinion by holding that the six-year statute of limitations applicable to property damage claims under N.J.S.A. 2A:141 also applied to private contribution actions brought under the Spill Act. The Appellate Division’s decision was only temporary; on January 26, the New Jersey Supreme Court reversed the Appellate Division and conclusively held that no statute of limitations applies to contribution claims under the Spill Act. In order to fully understand the Supreme Court’s decision, it is important to first understand the reasoning applied by the Appellate Division. In finding that the general statute of limitations for property damage applied to Spill Act contribution claims, the Appellate Division concluded that the Act itself did not contain a statute of limitations provision. Referring to other cases in which statutes were silent as to the application of a statute of limitations, the Appellate Division determined that the six-year general statute of limitations contained in N.J.S.A. 2A:14-1 applied. The Appellate Division further noted that this determination was consistent with Federal case law on the issue and with the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), which expressly provides for a six-year statute of limitations for cost recovery actions. In reaching this decision, the Appellate Division considered, but ultimately rejected, two prior Appellate Division decisions to the contrary. First, the Appellate Division distinguished the decision in Pitney Bowes, Inc. v. Baker Industries, which found that a 10-year statute of repose did not apply to a Spill Act contribution claim because it involved a statute of repose instead of a statute of limitations. Second, the Appellate Division dismissed the decision in Mason v. Mobil Oil Corp., which explicitly held that a statute of limitations did not apply to Spill Act contribution claims because it was unpublished and therefore not precedential. Upon examining the record, the Supreme Court reached a conclusion contrary to the Appellate Division. On appeal, the Supreme Court disagreed that the Spill Act was silent as to the statute of limitations. The Supreme Court pointed to the language, which states that “[a] contribution defendant shall have only the defenses to liability available to parties pursuant to [N.J.S.A. 58:10-23.11g(d)].” The defenses to liability provided in N.J.S.A. 58:10-23.11g(d) include “an act or omission caused solely by war, sabotage or God, or a combination thereof.” The statutes of limitations defense is not included as one of the enumerated defenses in the statutes. Since N.J.S.A. 58:10-23.11g(d) does not include the statute of limitations defense, the Court found that there was legislative intent to exclude it as a defense The Supreme Court also noted that its decision was supported by the longstanding view that the Spill Act “is remedial legislation designed to cast a wide net over those responsible for hazardous substances and their discharge on the land and waters of this state.” In other words, it allows those responsible for contamination to be held responsible without being afforded a defense grounded in the simple passage of time. Further, the Supreme Court acknowledged that the historic understanding in this State is that no statute of limitations applied to Spill Act contribution claims, and reasoned that the Legislature’s acquiescence to this understanding lends further support to the Court’s decision. As a result of the Supreme Court’s decision, there is no time limit for the owners of contaminated properties to seek contribution from the parties responsible for the contamination for conducting the remediation. As a result, those property owners who have focused on completing remedial activities before pursuing contribution can continue on that course without the fear that they will be left without recourse. For further information, please contact James Aversano III, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600.
Wharton Insurance Briefs An ARA Member
Workers’ compensation can be an open checkbook if you are not diligent about managing it. One major way to help control costs is to develop a positive employee attitude toward safety. You can accomplish this by doing the following: • Set a good example by practicing good, safe work habits. • Allow employees to report unsafe work practices without fear of reprisal. • Be accessible to employees.
• Set up and attend regular safety meetings. • Make sure good housekeeping rules are followed at all times. • Enforce safety rules.
As always, please feel free to contact us to discuss this or any other insurance concern.
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Mario DeFilippis, AAI, Vice President 800-221-0003 (1320) • 908-513-8588 (cell) • mdefilippis@whartoninsurance.com
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NEWS FROM FORD
Ford has created a campaign to help consumers understand why using OEM parts matters. The new www.TakeAGoodLook.com helps consumers navigate the collision repair process and get the right insurance policy, the right repairs and the right parts, but it’s also intended to be an easy resource for shops to help inform their customers. Not all collision replacement parts are created equal. Most people in the industry know that the right parts for any vehicle are the OEM replacement parts made by the vehicle manufacturer. With so many different aftermarket parts available, Ford realized that people needed to be educated about why the right parts matter. The goal of this site and campaign is to help consumers be more prepared before an accident even happens. It does this by educating them about how OEM replacement parts are specifically engineered to provide the same quality, durability, fit and finish as the parts made to build the vehicle. As you’ll see, the site also goes into the differences between OEM and aftermarket, salvage or reconditioned parts, plus the overall collision repair process and the insurance information they need to help keep their Ford a Ford. Drivers have the right to get the right parts. The site focuses now on three main areas:
“At Your Insurance” details questions people need to ask their insurers about OEM parts coverage. It also reminds consumers that they have rights when making a claim. Those include: Which body shop they use Which parts are used to replace damaged parts They don’t have to release their vehicle to a body shop before they are ready. They should get estimates completed before starting any repairs.
“At Your Parts” defines the different types of OEM and aftermarket parts available to help drivers be better-informed consumers, including a robust list of non-OEM parts that might show up on an estimate or invoice and how they differ from one another: A/M - Aftermarket/Automotive replacement parts QRP - Quality Replacement Parts CP - Competitive Parts LKQ - Like Kind and Quality Salvage Reconditioned - Recon Recycled
“At Your Repairs” lists tips for finding the right repair shop to perform collision repairs. Those include looking into the Ford National Body Shop Network; asking their dealer if they have a collision shop and if they use OEM parts; asking about training, certifications and qualifications; and knowing that no one - not even their insurance company - can force them to go to a specific shop.
Through this abbreviated version of the site, you can see how Ford is working to help empower consumers by arming them with important information that any driver should know. Be sure to check out the new campaign from Ford and visit www.TakeAGoodLook.com, then check back often for new content throughout the year. NJA
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THE LIST
We reached out to some of our readers to find out what they’re most excited for at the largest regional show of its kind.
What are you most looking forward to at NORTHEAST® 2015?
“I just like talking with guys from other shops. I like knowing what they’re doing and how it’s different from [what my shop is doing]. I think that’s where I learn the most.” “My favorite part of NORTHEAST is hearing from experts and getting the information from the source. There’s so much info floating around out there that it’s hard to know what’s true and what’s not. At the show, I get the info right from the horse’s mouth.”
“It’s nice talking with people who know what I’m going through. Sometimes when I talk to people about what [we face as auto repairers], it’s like they don’t believe me. Either that or they’re just sick of hearing me say the same [stuff] over and over again. When I’m here, I can go over things with people who understand.”
“This will be my first time at the show, so I’m not sure what to expect. I guess I’m looking forward to seeing what the vendors have to offer that I haven’t seen yet.”
“I was just looking at the schedule this morning. I can’t wait for Larry Montanez’s presentation on Saturday morning. I always learn a lot from his interviews and seminars, and he’s always entertaining.”
“Getting to see the new tools. Plus there’s a lot going on in our market. I know my guys are concerned with aluminum. They did a pretty nice job last year with addressing the PartsTrader issue, so I’m hoping we can get some answers at the show.”
“I’m signed up for the I-CAR Aluminum class on Saturday, which I’m really excited for.”
“I like that it’s a day out of the shop. Even though I’m kind of working, it’s like a working day off.” “I’m looking forward to seeing my friends. I used to work in a shop in Parsippany, but I had to move down to Mount Laurel to be closer to my family a few years back. They’re going to be at the show. I can’t wait to BS with them.”
READY TO MAKE YOUR OWN FAVORITE NORTHEAST MEMORY? 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. New Jersey Automotive | March 2015 | 57
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Acme Nissan................................................26 Amato Agency..............................................42
Audi Group ................................................32-33 Auto Body Distributing Co............................29 Axalta Coating Systems ..............................6
BMW Group ................................................44-45 Bridgewater Acura........................................25 Cadillac of Mahwah......................................4
CCC Comp-Est ............................................37 Classic Audi ................................................10
Clinton Acura................................................48 Continental Auto Parts ................................15 Cosmos Recycled Auto Parts ......................37
Cycan Industries ..........................................31 Empire Auto Parts ........................................62 Flemington Audi ..........................................5
Flemington Group ........................................IBC Fred Beans Parts ........................................21
Future Cure..................................................47
Glen Toyota..................................................OBC Hyundai Group ............................................27 JMK BMW ....................................................11
JMK Saab/JMK Fiat ....................................60
Klean Frame ................................................62 LKQ..............................................................60
Maxon Mazda ..............................................46 Maxon Hyundai ............................................53 Mazda Group ..............................................61 Mercedes Benz of Freehold ........................48
Metropolitan Car-o-liner ..............................19 Mike Kaufmann Dealer Group ....................36 Mini Group ..................................................54
Mitsubishi Group ..........................................51 Mopar Group................................................13 NORTHEAST® 2015 ..................................41
NU-CAR...................................................22-23 Paul Miller Audi ............................................59
Porsche Group ............................................56 PPG ............................................................3
PPGMS ........................................................30
Prestige Motors............................................31 Princeton BMW ............................................17 Princeton Mini ..............................................9
Saw Mill Auto Wreckers ..............................56
Sherwin-Williams ........................................50 Subaru Group ..............................................49 Town Audi ....................................................8
Toyota Group ..............................................58
Toyota of Hackensack..................................IFC Valtek ..........................................................14 VIP Honda....................................................25
VW Group ....................................................40
Wheel Collision Center ................................14
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