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
July 2014 $5.95
P&M Controversy pg. 40
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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
Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net
Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com
Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com
Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com
Brian Vesley, Valtek, Inc. 973-278-1444 / bdvesley@valtekinc.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
CONTENTS VOLUME 44, NUMBER 7
8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE 12 EXECUTIVE DIRECTOR’S MESSAGE
July 2014
28 MEET THE BOARD 62 NJA ADVERTISERS INDEX
VENDOR SPOTLIGHT 16
Help from Above: BMW and MINI of Manhattan Earn Respect in the Garden State and Beyond
IN & AROUND AASP/NJ 18 20 20 21 22
Fierce Competition, Hearty Camaraderie at AASP/NJ’s 3rd Annual Race Night Circle BMW & NJ BMW Car Club of America Join for Evening of Education NJ SkillsUSA Gold Medalist Honored by AASP/NJ American Truck Historical Society’s Metro Jersey Chapter Show Highlights Montanez Offers Airbag Testimony at RI Senate Hearing
FEATURES 24 40
The 2015 Ford F-150: Your Questions Answered The Right to Revenue: P&M Payments Spark Concern by Joel Gausten
COVER STORY 34
2014 New Jersey Automotive Industry Survey Results
NO BRAKES by Ron Ananian 52
Under the Hood
AUTOMOTIVE RECYCLERS OF NEW JERSEY 59 Wharton Insurance Briefs PUBLISHER Thomas Greco (tgp22@verizon.net) MANAGING EDITOR Alicia Figurelli (tgp2@verizon.net)
EDITOR Joel Gausten (tgpjoel@verizon.net) ADVERTISING DIRECTOR Norman Morano (800)991-1995 (tgp5@verizon.net)
ART DIRECTOR Lea Velocci (lea@grecopublishing.com) OFFICE MANAGERS Brandi Smith (tgpbrandi@verizon.net) 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 Advertising: (800) 991-1995 / FAX: (732) 280-6601
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62 LAST LOOK
SATAminijet 4400 B HVLP & RP* Provides Optimal Coverage, Enhanced Durability
Continental Auto Parts Announces Achievement of NSF International Distributor Certification
The Alliance of Automotive Service Providers/New Jersey
HALL OF FAME Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest 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 © 2014 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. Image Credits: Cover and Page 35: thinkstock.com/Peter M. Fisher/Fuse; Page 36: thinkstockphoto.com/hoozone; Page 37: thinkstockphoto.com/Dmitry Kalinovsky; Page 39: thinkstockphoto.com/ ayzek; Page 40: thinkstockphoto.com/Melpomenem; Page 41: thinkstockphoto.com/Adam Radosavljevic; Page 52: thinkstockphoto.com/Gudella
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
As Time Goes By When I started writing these columns, I was at least a half-inch taller, about 40 pounds lighter and had a lot more hair (none of it gray). I set about telling random tales and spouting my opinions on everything from burgers to politics. My kids were young, and the basis for the majority of my articles. Hell, they still are. But things change as you age. First, it’s the hair. Then the waist, then the eyes…you get the idea. As you get older, you learn to live with the
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limitations that come with an aging body. With my knee aching as I write this, I think back to the days of adult recreation basketball, softball and football. Now I’m down to volleyball, where it’s illegal to jump and you have to make sure you bump it to a female before you can send it back over the net. Shuffleboard can’t be far away. It’s funny to be writing about getting older once again. Last year, as a Christmas gift to my wife and kids, I had a hardcover
by Thomas Greco, Publisher
book printed up collecting all my articles and interviews over the last 15 years. The very first article I wrote about my family started like this: As I write this article, my daughter is attending her first day of junior high. Junior high??? Where the hell did all the time go? It really didn’t hit me until last night. I began thinking about how
in just six short years, she will be
going off to college and into a life of her own. And that thought re-
ally, really depresses me. It is completely impossible for me to
imagine a day when she won’t be there in her bed at night waiting
for me to come and tuck her in. Jeez. I must really be getting old. And now that my daughter is in junior high, it makes me wonder how many summers like those I have left. Pretty soon, I’m sure she’s going to rather be spending those summer nights with her friends instead of her dad and little brother. Man, that sucks.
And here we are, almost 10 years later, returning to the aging subject. Why? Because last week, I received the text. (by
the way, 10 years ago, “text” was what you found in a schoolbook.) that I sort of predicted all those years ago. I had texted the kids information about our annual trip to Orlando and that’s when it appeared: “Can Bruce come to Orlando with us?” There IT was. The knife to the heart. The magic bullet. The (any cliché you can think of). I had to read it again. “Can Bruce come to Orlando with us?” My honest-to-God first thought? “Shoot me.” My mind started whirring like one of those rainbow balls you see when your computer is about to crash. How do I respond? Has she already invited the boyfriend? Is she going to hate me? I could feel what little hair I have left turning gray. But it was something I had to deal with, as all dads eventually do. Of course, that didn’t make me feel any better. But my kid’s
happiness trumps everything else, so I had to figure out a way to keep our family vacations intact without pushing her to opt out and stay home with “Bruce.” So I thought and thought about it and, being a 21st century dad, I think I came up with a pretty fair compromise. I sat her down and said: “Until Bruce or someone else puts a ring on your finger, our vacations are strictly blood relative activities.” (At least I thought it was fair.) To my surprise and delight, she agreed. My heart glowed as I realized I had at least one more year of the family unit on vacation. Then again, my daughter’s no dummy. As she walked away, she turned and said, “But he’s coming to Wildwood.” Shoot me. NJA
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PRESIDENT’S MESSAGE
Breaking Point
by Jeff McDowell
As I write this message, I’m still feeling the adrenaline rush from AASP/NJ’s recent Race Night. If you’re looking for an employee outing or opportunity to inspire some friendly competition in the shop, I highly recommend you be a part of our next racing event. Some people laugh at the idea of racing go-karts, but let me tell you: These are not the dinky, glorified golf carts from down the shore you may be thinking of. These go-karts are not only odorless and quiet (since they’re electric), but they also tear up the track at up to 45mph. It is serious business driving one of these things, but it is also a seriously good time. It’s a night of fun and networking, and I already can’t wait for the next one. If you’ve never been to an AASP/NJ Race Night, try to make one. And if you were at this year’s event, I’m sure I’ll see you again for a rematch! On a more serious note, I’d like to mention something I’ve been seeing more and more of in recent times. It seems like every other day, I’m opening a trade magazine or checking out an industry website and hearing news of another repairer facing an insurer in the courts, taking legal action against injustices brought against the shop or uniting to tackle a widespread industry concern like mandated parts procurement. The recent federal lawsuit filed in Pennsylvania against multiple insurers (see “Federal Lawsuit Alleges Insurers’ Conspiracy to Control Collision Repair Costs,” NJA June 2014) is a perfect example of what I’m talking about. And don’t forget about states including Mississippi and Florida that are either gearing up for or in the middle of lawsuits and taking stands themselves. Repairers from across the country are sick and tired of the status quo imposed upon them by outside parties, and more and more are doing something about it, and fighting to take back their industry. In my 40-plus years continued on page 46 10
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EXECUTIVE DIRECTOR’S MESSAGE
Time for Action!
For years, I have written articles about the injustices that certain insurance companies impose on collision shops and the people that they insure. The purpose of exposing the injustices in these articles was to
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try and bring about change. However, these wrongs have been going on for as long as I can remember, and continue to this very day. It has always amazed me to see the wonderful, caring picture painted by
by Charles Bryant
insurers in an attempt to sell a policy to consumers to protect their assets and family members. The insurers market themselves as being able to protect their policyholders, and keep them secure in the event of an accident or loss. Yet when an accident happens, everything changes. Right from the start, when an insured has an accident and reports the claim, most insurers will attempt to convince, persuade or intimidate the driver into utilizing a shop on the insurer’s Direct Repair Program (DRP). DRP shops must agree to a set of repair guidelines that could include restricted Labor Rates, paint and material allowances, the use of aftermarket parts and much more. This allows the insurers to save money on the repair costs while also controlling rates. The insurer’s attempt to interfere with the contractual relationship between an insured and the shop of his or her choice - more commonly known as steering - is usually done very skillfully so the insurer cannot be held liable for the practice. If a consumer chooses to reject the referral from an insurer and go to the shop of his or her choice for the repairs, the insurer will send an appraiser out to inspect the damaged vehicle. The first thing the appraiser does is attempt to negotiate an agreed price with the insured’s chosen shop. Most collision shops have been led to believe that they must reach an agreed price to repair the damaged vehicle with the insurer, or face losing the job to one of the insurer’s DRP shops. The insurers are quick to use the threat of moving a vehicle to a DRP facility if the shop doesn’t accept their prepared estimate. In reality, the insurer can only recommend a DRP shop. The insured is under no obligation to accept the recommendation unless the insurer is clearly choosing what is referred to as the “option to repair” provision found in all auto policies.
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EXECUTIVE DIRECTOR’S MESSAGE
By now, many readers may be wondering what is going on here. Either steering is allowed or it’s not, right? Either an insurer has the right to control the cost of the repair or they don’t, right? Well, listen carefully. I am about to explain something that most collision shops have been misinformed about for many years: Insurance companies have the right to steer.
That’s right. This should be a wake-up call for those who have been under the false impression that an insurer cannot insist repairs be made by a particular repair shop. Please allow me to explain. Under the payment of loss provisions in the policy of insurance, the insurer has the right to either repair the property, replace the property or pay for the loss in money. We in the collision industry may have seen this in the pol-
icy from time to time, but never paid much attention to it because insurers always choose to pay for the loss in money. If the insurer were to choose to repair the property, they actually would have the right to insist the repairs be made by a particular shop chosen by them and exert the right to control all aspects of the repairs, including how the damaged vehicle will be repaired, what type of parts will be used, what Labor Rate they will pay and the final cost of the repairs. “But that goes against everything we have come to know!” you might be saying. Well, I would agree. The simple fact is, the insurance industry has created this makebelieve world we live in and says things to make people in the collision industry think this is the way things are actually supposed to be. A typical example of this is something you probably hear every day: “We don’t pay for that.” How in the world can an insurer insure a vehicle and say, “We don’t pay for that” regarding a necessary procedure to repair that vehicle? The answer is that we accept it. OK, so let’s get to the bottom line. If insurers have the right under the payment of loss provision in the policy to choose the shop that will repair the vehicle, how the vehicle will get repaired, what type of parts will be used, the Labor Rate that will be paid and more, why don’t they just choose the option of repairing the property every time? The answer is because when they do, the insurer becomes liable for negligent repairs and the policy limit is broken. If an insurer knew they were going to be held liable for negligent repairs, you can bet they would never allow a damaged vehicle to be repaired with used suspensions, inferior aftermarket parts or parts that pose a safety issue to be repaired when they should actually be replaced. So, how do insurance companies get away with it? Again, it’s simple: The collision industry allows it to happen because of our lack of knowledge. The insurance industry has drilled it into the heads of the collision repairers that they (the insurers) have continued on page 46
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VENDOR SPOTLIGHT
HELP FROM ABOVE BMW and MINI of Manhattan Earn
Respect in the Garden State and Beyond
In today’s ever-busy world of collision repair, help with wholesale parts can come from some very unexpected places.
As more and more New Jersey shops are discovering all the
time, BMW and MINI of Manhattan is the place for high-quality
collision and mechanical parts. Boasting a combined $1.5 million
inventory, the enterprise is as active in assisting the tri-state area as
they are in servicing the Five Boroughs. Only minutes from the
Lincoln Tunnel and George Washington Bridge, BMW and MINI
of Manhattan provides parts to an ever-growing Garden State clien-
tele ranging from mom-and-pop mechanical shops to large corpo-
rate collision centers. With five delivery vehicles on the road, the
parts operation is able to make regular stops in a large geographi-
cal area including most tri-state counties. In-stock orders are ful-
filled by the next day, while overnight shipping services for smaller parts are also available.
The BMW and MINI of Manhattan parts team includes Wholesale Parts Manager Armando Diaz, Assistant Wholesale Parts Manager Rey Ayala, Wholesale Parts Supervisor Louis Lozada, Parts Manager Steve Zizic and six countermen. Together, these industry professionals strive to provide a positive experience to anyone who places an order. “When shops call here, they feel like they are calling a friend,” Diaz says. “We’re going to help them out. If a dealership doesn’t look out for them, they’re not going to think twice about shopping around or going somewhere else.” BMW and MINI of Manhattan’s current success in the tri-state area is the latest in a series of advancements enjoyed by the company in recent years. BMW of Manhattan was completely renovated from 2011 to 2013 to complete a BMW initiative called “Future Retail 2016.” Opened in 1998, the newly-revamped flagship center at 57th St. and 11th Ave. features a new car department, CPO and Motorrad sales and parts/service departments in a 220,000-square foot, six-floor facility that once housed the Ford
Above: The BMW and MINI of Manhattan parts team. L to R: Rey Ayala, Nicholas Persuad, Armando Diaz, Louis Lozada, Willy Salas, Edward Pashayan, Armando Herrera. Not pictured: Steve Zizic and Ray Jardine. 16
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Motor Company building. Additionally, the space was upgraded to incorporate the new BMW “Future Retail” standard, including a redesigned atrium that features a 1,000-square-foot media wall (similar to the walls featured in the London and Paris stores) that will be used as an exhibit space. The extensive renovation project also included opening the first standalone MINI center on 55th St. and 11th Ave., as well as a Certified Pre-Owned center at 56th Street. The only company-owned store in North America and one of only 35 globally, BMW of Manhattan operates three centers in New York City along with a warehouse in New Jersey, totaling over 300,000 square feet of retail space. MINI of Manhattan opened at its 57th Street location in 2002. Looking ahead, Diaz is pleased to have the opportunity to establish a strong and loyal customer base in the tristate area. “We’re definitely here to stay,” he says. “Don’t hesitate to call the department for anything you need.” For more information on BMW and MINI of Manhattan, please call the Parts Hotline at (212) 246-7375 or email Diaz at adiaz@bmwnyc.com. NJA
The parts counter at the newly-revamped 57th Street location
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IN & AROUND AASP/NJ AASP/NJ congratulates this year’s winners: 1st Place: Chris Slack, Union Auto Wreckers 2nd Place: Ian Szoboszlay, Cosmo’s Ocean County Auto Wreckers 3rd Place: Mark Morrison, Pace Collision
T
he third time was the charm on Tuesday, June 10, as AASP/NJ hosted its 3rd Annual association Race Night at Pole Position Raceway of Jersey City. Nearly 50 members and shops competed for bragging rights and the chance to stand in the winners’ circle, zipping around the track in electric go-karts reaching speeds up to 45 mph! As you can see from the smiling faces and wind-blown hair in the photos, a great time was had by all! AASP/NJ is already hard at work organizing next year’s event. If you’d like to be a part of our next Race Night, please contact tgp2@verizon.net with the subject head “Race Night.” For more information on upcoming association events, please visit www.aaspnj.org. NJA
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IN & AROUND AASP/NJ
Circle BMW & NJ BMW Car Club of America Join for Evening of Education On May 20, Circle BMW of Eatontown opened its doors to the New Jersey chapter of the BMW Car Club of America, hosting the club’s monthly meeting as well as an informative evening of product updates, industry information and more. Housed in the Circle BMW body shop, the event provided attendees with a close-up look at some of the latest innovations from BMW. BMW Automotive Chemical Sales Manager Joshua Weinbaum provided a recap of the wide variety of chemical products available through the manufacturer, including a natural line of waxes, polishes and cleaners. Weinbaum was followed by BMW N.A. Accessory Specialist Jake Mooney, who detailed some new and exciting parts and accessories on the market today for BMW owners, as well as the vast line of BMW Performance items that enhance the BMW experience. Serving customers since 1981, Circle BMW is one of the tristate area’s leading luxury automotive dealerships. In addition to new vehicles, Circle BMW offers ertified pre-owned cars that meet demanding standards for resale. Their award-winning service department is proud to employ the largest staff of BMW Master Technicians in New Jersey. The dealer is also one the largest BMW authorized stocking dealers of OEM parts and accessories in the region. For more information on Circle BMW, please visit www.circlebmw.com. To learn more about BMW of North America, please visit www.bmwusa.com. NJA
Above: Nearly 50 industry pros gathered at Circle BMW for the latest updates from BMW of North America. Below: BMW North America and Circle BMW representatives teamed up to offer an unforgettable evening of information and fun.
NJSkillsUSA Gold Medalist Honored by AASP/NJ
2014 NJ SkillsUSA Gold Medalist Anthony Sibaja (center) is presented with a check from the AASP/NJ Lou Scoras Memorial Scholarship Fund by Association Executive Director Charles Bryant. Also pictured, SCVT Auto Body instructor George Byrd. 20
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2014 NJ SkillsUSA Gold medalist Anthony Sibaja (pictured center, Somerset County Vocational Technical Institute) was recognized by AASP/NJ for his hard work on May 22, receiving a commemorative Lou Scoras Golf Outing Scholarship Fund check. Every year, AASP/NJ donates a portion of the proceeds from its annual Lou Scoras Memorial Golf Outing to a scholarship in Lou’s name to further the goals of an aspiring collision repairer. Pictured alongside Anthony are AASP/NJ Executive Director Charles Bryant (left) and SCVT Auto Body Instructor George Byrd. At press time, Anthony was set to represent the Garden State at the SkillsUSA National Leadership and Skills Conference in Kansas City June 23-27. New Jersey Automotive will provide updates and competition results in a future issue. AASP/NJ and New Jersey Automotive wish Anthony and his fellow competitors the best of luck! NJA
American Truck Historical Society’s Metro Jersey Chapter Show Highlights
S
unny skies, warm weather and the smell of fresh paint can mean only one thing:
IT’S ANTIQUE TRUCK SHOW TIME!
June 8 saw the 24th Annual Metro Jersey Chapter truck show held on the grounds of the Automatic Switch Co. in Florham Park, NJ. Over 190 trucks representing all groups from the late 1910s all the way to modern day transporters were present, as well as a large number of restored pick-ups and old wreckers from the body shop side. Based in Kansas City, MO, the American Truck Historical Society has over 21,000 members with local chapters throughout the country. Next year’s national convention, scheduled for May 28-30, 2015, will be held at the York Fairgrounds in York, PA. The 25th Annual Metro Jersey Chapter show will take place June 7, 2015 at ASCO in Florham Park. Organizers invite everyone to attend and see a little transportation history. If you own an old truck, bring it out and enjoy the fun! We have vendors at both events. Photo coverage of this year’s event was provided by Gtuned Photography. Want more photos? Visit the album online at www.flickr.com/gtuned!
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IN & AROUND AASP/NJ
Montanez Offers Airbag Testimony at RI Senate Hearing
N
oted industry writer and educator Larry Montanez (P&L Consultants) appeared on June 5 before the Rhode Island Senate Committee on the Judiciary as an expert witness on behalf of the Auto Body Association of Rhode Island (ABARI) to offer professional comments and opinions on current bills related to the auto body industry. One bill in particular, Senate Bill 2833, aims to prohibit insurance companies from requiring the use of used or remanufactured airbags and/or suspension parts when vehicle repairs are made by an auto body shop. Andreas Heiss, a government affair manager for LKQ Corporation, appeared before the Committee in opposition to the bill, stating that shops that perform airbag removal are subject to strong guidelines to ensure consumer safety. “There are very strict federal safety standards for removing these airbags,” he said. “The shops that do that have to be certified in a certain way, and they’re trained to remove these airbags in a certain way.” Calling Montanez “the only expert I’ve heard tonight come before us,” Senator Stephen R. Archambault (D- District 22) later asked the repairer if such standards actually existed.
“There’s no federal standard on removing an airbag out of a vehicle; I’d like to see one if one exists,” replied Montanez. “There is a federal standard on what EDRs [event data recorders] actually have to record – which is black box-like technology...But there’s no standard on taking an airbag in or out.” Senate Deputy Minority Leader Dawson Hodgson (R-District 35) praised ABARI for offering Montanez’s technical knowledge and providing greater insight into the issues addressed at the hearing. “The technical expertise that ABARI brings to the table every year at these hearings, and the professionalism that you are representing your industry with, is impressive,” he said. “You should be very proud of that.” Complete video of the hearing (including Montanez’s extensive testimony) is available for free streaming at http://ricaptv.dis covervideo.com/embedviews/vod?c=all&w=640&h=480&s=1#. NJA
NEW JERSEY LATEST STATE TO INTRODUCE LEGISLATION TO BAN FAKE AIRBAGS State Assembly and Senate bills introduced last week seek to prohibit the manufacture, sale, or installation of counterfeit or nonoperational air bags in a motor vehicle.
On June 9, New Jersey Assemblywoman Annette Quijano introduced Assembly Bill 3364 which seeks to prohibit the manufacture, sale, or installation of counterfeit or nonoperational air bags in a motor vehicle. As reported by CollisionWeek Online (www.collision week.com), the measure contains language similar to that found in legislation and laws introduced in several other states over the last year. An identical bill was also introduced in the New Jersey Senate on June 12 by Senator Peter J. Barnes III.
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Under the provisions of this bill, as introduced, a person who “manufactures, imports, installs, reinstalls, sells, or offers for sale any device with the intent that the device replace an air bag in any motor vehicle and knows or reasonably should know that the device is a counterfeit air bag, a nonfunctional air bag, or does not meet certain federal safety requirements is guilty of a fourth degree crime.”A fourth degree crime is punishable by up to 18 months imprisonment, a fine of up to $10,000, or both. The bill also includes language that seeks to make it illegal to disable or cause the vehicle’s diagnostic system to make it seem like a functioning airbag is installed. The bill would also make it a fourth degree crime for anyone “…who sells, installs, or reinstalls in any motor vehicle a device that causes
the motor vehicle’s diagnostic system to inaccurately indicate that the vehicle is equipped with a functional air bag when a counterfeit air bag, a nonfunctional airbag, or no air bag has been installed…” The bill would also make each instance where a counterfeit or nonfunctioning airbag was installed count as a separate violation. Violations under the bill would also be treated as an unlawful practice under the consumer fraud act in the state and would be punishable by a penalty of not more than $10,000 for the first offense or $20,000 for further offenses. Also, an injured party could be awarded triple damages and costs under the bill language. NJA
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FEATURE
THE 2015 FORD F-150: YOUR QUESTIONS ANSWERED In an effort to help the repair industry better prepare for the arrival of the 2015 Ford F-150, we reached out to Elizabeth Weigandt, dealer communications manager at Ford, to get answers to a variety of questions offered to us by readers and industry representatives. We present this question-and-answer session as a guide to Ford’s current position on a number of topics regarding this technologically advanced vehicle. What are your preliminary sales projections for the 2015 Ford F-150? What areas of the country will the vehicle be marketed to the most?
I’m sorry, we don’t share sales projections on our products. Suffice to say, the F-150 is the top-selling vehicle in the US, which makes it popular everywhere. We are appreciative of our customer’s loyalty and we work very hard, year in and year out, to design and manufacture a truck that meets their expectations and needs. We believe the new 2015 Ford F-150 will delight them in its smart technology, efficiency and hard-working design. If a repairer has zero past experience with aluminum but wants to take advantage of the opportunity to repair the Ford F-150, how much money should they plan to invest in order to become compliant with the equipment/training specifications and be considered Ford-recognized?
Ford estimates it will cost $30,000 to $50,000 for a dealer or body shop to purchase new equipment needed to repair damage to aluminum. What kind of rivet guns should be used on the 2015 F-150?
Here is a full list of equipment (including the rivet gun) we recommend shops purchase for collision work on the new F-150:
What are the primary differences between aluminum repair and steel repair, and how might those differences affect a shop’s ROI and repair rates?
We can’t project ROI for shops, but we can say that, in many cases, the new F-150 will actually be easier to repair. The new F-150’s innovative modular structure will significantly reduce time of repair, saving costs. Ford has used aluminum in body parts for years, such as in the hood of the 1997 to 2014 F-150. Apron tube: Can be repaired without dash removal Floorpan: Can be sectioned without requiring complete replacement Rocker panel: Can be sectioned without requiring complete replacements B-pillar: Does not require disturbing the roof to be repaired
How is Ford addressing concerns over volatility and cross contamination when aluminum dust enters a steel environment (and vice versa) during the repair of the 2015 F-150?
We are recommending that dealers and independent shops purchase separate tools for aluminum repair work and section-off an area on the shop floor to be used only for aluminum collision repair work. This does not require a separate building – our list of recommended tools includes a separation / isolation system curtain that will prevent cross-contamination inside the shop. How does the refinishing process on the 2015 F-150 differ from a non-aluminum vehicle?
The process is the same as the current F-150 and other Ford vehicles that have used aluminum panels since 1997. In regards to vehicle paint refinishing for the new F-150, the repair facility should follow all guidelines outlined in their respective technical information manuals/materials. All Ford Motor Company-approved refinish paint systems have extensive information in their technical training and support materials. What are the parameters/limits for pulling on the Ford F-150?
The vehicle may require anchoring and pulling operations to correct collision damage. This may be done with the usage of the Ford-recommended solid cab mounts, to allow the pulling of the vehicle’s aluminum-intensive unibody along with any frame 24
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damage. With the damaged areas pulled back to proper dimensional condition, the affected areas are inspected for cracks, damaged fasteners and any other concerns, then replacement of any damaged components may be done per Ford guidelines and procedures. What are some misconceptions regarding the 2015 Ford F-150 that you have encountered in the collision repair industry that you would like to address?
Ford’s training classes. I-CAR will also provide collision and body repair training developed in conjunction with Ford for both dealership staff and independent body shops. Also, Ford will not restrict which dealers or body shops can purchase Ford Genuine OEM collision repair parts to repair the all-new F-150. We recommend dealers and independent shops pursue training and purchase the proper equipment necessary to become aluminum repair-capable. NJA
We are often asked whether Ford dealers or independent body shops have to become certified in aluminum repair to order Ford Genuine replacement parts or fix the new F-150. Our Ford F-150 Collision Repair Program is not focused on certification; it is focused on training and helping dealers and independents identify and install the right equipment so they can be ready to repair aluminum in the F-150. Like our other vehicles, Ford dealer service staff will be provided with mechanical repair training through
“Ford will not restrict which dealers or body shops can purchase Ford Genuine OEM collision repair parts to repair the all-new F-150.� New Jersey Automotive
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MEET THE BOARD TED RAINERBody Ocean Bay Auto
“
”
How did you get your start in the repair industry?
I actually started out in aeronautics. I studied for my A&P license (to repair and perform maintenance on aircraft) at Teterboro School of Aeronautics, and when I graduated, there were no job openings. Meanwhile, I had been doing body work on the side to help put myself through school, and in realizing how lucrative the work could be, thought that it might be a good career to get into. I ended up renting a shop for a while before buying a space in Point Pleasant, and we officially opened as Ocean Bay Auto Body in 1979. What drew you to Point Pleasant as a shop location? Back then, this area was very quiet. It was nowhere near as built up as it is today. But it’s funny; around the time I started looking for a business, I was going through Point Pleasant - this was before the four-lane highway and everything, so way back - and I saw a WaWa being built. That got me. I thought to myself, “They must know something about this spot. Maybe they’re onto something.” And I started looking around here. Soon after, they built the big bridge and highway, and then it started getting much more populated. Beaver Dam Road, where our shop is located, used to be the kind of street that a dog could safely fall asleep in the middle of. Today, it’s a main cut-through road in the center of town. It was a good choice. And all dogs are now wide awake and respectful regarding the dramatically increased volume of traffic. What was the most valuable thing you learned as someone who came up in the industry from doing repairs as a side gig to owning a shop? There’s a definite value in starting from the bottom and doing it all yourself. In the beginning, when I first bought the shop, I would put in a full day at the shop I was renting, be there until 5-5:30, then head over to the new place and work on fixing up the building until late in the evening. That went on until the place was done. In those days, you couldn’t just run to the bank and get a loan to start a business. And failure was not an option. I put in the time and muscle - and got the help of some good friends, like one buddy who was a union mason - to get the business off the ground. Did your history in aeronautics come in handy in terms of the auto collision repair business? I think I’m able to approach things with a much more open mind as a result of having been around that industry first. The changes in vehicle technology are amazing, but nothing that’s come down the pike has really thrown me for a loop because in many cases, when something new comes around in collision repair, it’s been that way on the aircraft end for years. Aluminum repair is a perfect example. It’s new to us [collision repairers], but planes have had aluminum rivets and components since 1972 when I was in school.
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Having said that, what do you think is going to be the next big thing in auto repair that’s already prevalent in aeronautics? Automatic operation, no question. Cars that can operate unmanned. Planes have had autopilot for over 70 years. Like aircraft, vehicles will be talking to each other on the roads between the GPS and the sophisticated on-board systems that are in so many cars even today, you can see it going in that direction already. We’ll see it in our lifetime for sure. There are already self-parking cars out there, and self-driving cars can’t be far off. I would think car-to-road-to-satellite-to-car communication would probably become a popular and safe thing in the next decade along with more cars self diagnosis to improve maintenance and safety. Some states already have self diagnosing inspections, by-passing your annual visit to your local inspection stations altogether. Do you see any similarities between the two industries? I still talk to a bunch of the guys I graduated from Teterboro with. One works for Pfizer, one does maintenance on Donald Trump’s helicopters - whose choppers I actually did paint jobs on, not to mention painting Sylvester Stallone’s robot in Rocky IV, but that’s another story - and in talking to them, it seems that they’re much more specialized than we are. It would be like, in your shop, having one guy whose entire job is to work on Ford pick-up trucks, and nothing else. That’s his entire job. That’s how it is for them, and that’s just general aviation. In the commercial sector, it’s even more specialized. In the auto collision repair industry, we are much more diversified; we have to be. There aren’t enough of us to go around! How’d you get involved in AASP/NJ? My father actually found out about it, which back then was the New Jersey Auto Body Association. When I told him out of nowhere that I was dumping my A&P license career to go into body work, I guess he figured I needed all the help I could get! [chuckles] So I joined around the time I first started out. I hung out with guys like Steve Vrable from Economy Auto, Charlie and Jimmy Bryant - who were just starting out in the industry themselves, at the time - and the guys from Joe’s Garage. It always seemed like the right thing to do, and I still feel that way today. I remember hearing the guys complaining at the time and thinking to myself, ‘Wow, you guys sure complain a lot. What’s the problem? We’re all making some money!’ But I was a kid. Over the years, I of course learned that the industry is about so much more than that. And being part of an association for all these years, you may not always get the answers, but you get to share your experiences with people who share a lot of the same successes and struggles as you. Sometimes, just sharing those ideas will bring you the answers you need. Is that why you joined the AASP/NJ Board of Directors? Absolutely. To me, it feels like a win-win. If I’m going to make a difference in this industry, here’s where I’m going to do it. And selfishly, it helps tremendously to bounce ideas off the other guys and hear their stories. It gives me a boost and inspires me to keep going. I have great respect for every one of them. So outside of the shop, what do you like to do for fun? I like to keep busy. I love to ski, and just last year became a Level One instructor at Wyndham Mountain. I have a beautiful 20-foot Sea Ray that I fixed up, so we take that out on the water during the summers. My wife and I belong to a wine club, where we make our own wine (which I put the “Ocean Bay” label on and give to family, friends and certain customers as a little gift here and there). We also have a house in the mountains of New York that I head up to every weekend. And you can probably guess that I love to fly, too. There is a picture of me in a hammock somewhere, proving that I do kick back and relax…it just doesn’t happen often. [laughs] For me, the relaxation comes in moving yourself, being productive…living. Just breathing in the fresh air and living life is exhilarating for me. If you could offer one piece of advice to someone like yourself all those years ago, just starting out, what would you say? First, I would tell them that to stay relevant and successful, you have to keep reinventing yourself. The status quo will not bring you success, especially in this industry. Secondly, and this may seem like a no-brainer, keep a clean office that people will want to spend time in, and be courteous. It’s a simple bit of chemistry that’s worked so well for us. It’s not hard to do. We bring our Pomeranian to the shop, and she’s like our mascot. She cheers people up when they’ve been through a collision. I also keep an umbrella in the back of the office, for example, and this past week when it was pouring almost every day, I made it a point to go outside and greet everyone who showed up at the shop, and walk them in under the umbrella. When they were ready to leave, we walked them out under the umbrella. It didn’t put me out to do that, and it helps everyone. Just be good to people. Give them mint-on-the-pillow service and make them feel good. That’s what it’s all about. NJA
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AASP/NJ MEMBERSHIP PAYS! Are you getting the most value from your membership! ATTENTION AASP-NJ MEMBERS
Exclusive Programs for AASP/NJ MEMBERS ONLY • Garage Insurance Dividend Plans • Discounted Workers Compensation • Group Health & Disability • Employer — Free Programs
(For Employees — Automobile, Homeowners, Boats, Etc.)
• Retirement & Savings Plans Call The Amato Agency for more details:
800-763-6574
or visit www.amatoagency.com 4900 Rt. 33 - Ste. 103, Neptune, NJ 07753 Phone: 732-530-6740 Fax: 732-530-6727
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COVER STORY
2014
SURVEY ere at New Jersey Automotive, we try hard every month to give our readers a sense of what’s happening in the industry on multiple levels, from sweeping national features and news coverage to profiles and updates on the shops and repairers literally in your backyard. Time and time again, our readers have told us that what they enjoy the most about our publication is the fact that they can learn about “the guy down the street” and share in his or her experiences. And what better way to provide a close-up look at those personal experiences and learn about area repairers than by talking to the shops themselves?
H
Enter the 2014 NJA Industry
SURVEY.
We asked you, our readers, to let us into your shop for a few minutes and pull the curtain back on your daily life in this industry, from the cold, hard statistics about the shop itself to your opinions, goals, concerns and much more. You responded in force, giving us valuable information on your particular facility as well as the industry around you. There’s nothing better than interacting with our readers, and we at NJA genuinely thank you for your participation. We realize how busy you are every day, and greatly appreciate you taking the time to not only tell us about your shop, but to ultimately educate the New Jersey repair industry as a whole.
So what did that guy down the street have to say, anyway? Read on… How long have you been in business? Less than a year: 4% 1-5 years: 7% 6-10 years: 4% 11-20 years: 11% More than 20 years: 74%
What describes your primary business? Collision Repair: 68% Collision & Mechanical Repair: 20% Mechanical Repair: 8% Other: 4%
This year’s survey shows an interesting trend that’s becoming more and more common throughout the industry: Diversification into both collision and mechanical repair. “We’re busy on the collision end, but thought it would be a great investment to be able to do mechanical repairs as well,” says one southern NJ shop owner. “We were fortunate enough to have the funds to implement it a few years ago, and now instead of having to rely on outsourcing the more common mechanical jobs to another shop, we keep the job in-house and streamline the process.” Others are more comfortable going with what they know. “We’ve been in business for 37 years as a body shop,” explains a Jersey City facility, “and we will always be a body shop. I feel there’s a certain amount of overlap between both collision and mechanical guys, but our specialty is body work. I have a good relationship with a mechanical shop, and we send each other work. I see no reason to mess with that.” 34
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North NJ: 36%
SURVEY
DEMOGRAPHICS
Central NJ: 23%
South NJ: 41%
Mechanical shops: Are you a PIF?
Collision shops: Are you a DRP? No 8%
92% Yes
Yes 34%
66% No
Over the past year, do you feel customers have become more or less educated about the repair process? More: 26% Less: 19% About the same: 55%
While the majority of those surveyed indicated that their customers did not demonstrate an increase or decrease in their knowledge about what happens to their vehicle once they hand the keys over, some respondents shed an optimistic light on consumer attitudes. A Livingston repairer notes, “I think it’s become easier for them to educate themselves, and many do. We try to take them through every step of the process, but they’re not always in the mood to learn something when they’re in the shop. Most just want to know the dollars and cents of it. But today, between YouTube and just the huge amount of information available, they can just pop online and teach themselves. I’m encouraged to hear that many of our customers are doing just that.” Still, other repairers - like this Trenton-based shop pro - explain to us that most customers prefer to leave repairs in the hands of the experts: “Some of our customers don’t want to know what goes into fixing their car, and others don’t want to be bothered because they have a false sense that the insurI-CAR ance company is going to act in their best interest. It’s rare that they have any AASP/NJ knowledge of the different types of parts training that can be used or how one part can be less Paint safe than another or diminish the value of their manufacturer vehicle if utilized in the repair. We try to educate seminars them from the start of the job, but sometimes they just don’t want to know.” ASE “I think that, generally, consumers see collision repair as a commodity, and if their insurer vets a shop out to them by saying that particular place will do a good job, they’ll just blindly go wherever,” a Hightstown shop tells us. “They’re more concerned about the convenience and assume all shops are the same, quality-wise.”
What training have you and/or your employees received over the past year?
The most
popular
responses
were:
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On a scale of 1-10, how would you rate your current state of business? As in past years, the responses to this RATING % 1 9 10 question illustrate the wide range of opin3 ions and experiences of a repair profes10 4% sional in today’s industry. Answers 4 9 4% ranged from the brief and colorful 8 8 19% (“10: Busy & profitable. Rocking and 7 26% rolling!”) to the detailed and somber 5 (“3: We’re busy, but not profitable. 6 15% This has been my worst year in 22 5 13% years of business. We’re being stran4 7% gled from all ends, between the 3 7% greedy insurers, the unlicensed shop 6 7 1 5% two streets over taking my business, the low Labor Rate and the lack of new techs coming in. It’s a constant fight just to break even at the end of the week.”) Busy & profitable. Many of our respondents pointed to insurer involvement as having a direct impact on their business, not to mention the industry as a whole. ROCKING AND ROLLING!” “We’re at the point where it’s a daily struggle with the insurers to get the jobs done,” states one frustrated Wall shop owner. “They go at it with us over parts - OEM versus used suspension parts, for example - and We’re busy, but not rates. I spend a good part of my day going back and forth with them to profitable. This has been get paid properly when I should be using that time to talk to customers and repair the cars. Enough with the nickel and diming; let me put safe my worst year in 22 vehicles back on the road.” Further north, a Franklin shop owner agrees: years of business.” “I feel like we’re going nowhere in this industry. Insurance companies want more and more from us, but are paying less. How can we survive like that?”
“10
“3
Have you ever been a victim of steering? Yes: 89%
No: 11%
A whopping 89 percent of those surveyed expressed that they had at one point or another had work “steered” away from them by an insurer to one of their DRP facilities. “Same old story,” says one Bergen County repairer. “The insurer told [my customer] they wouldn’t guarantee my work, they said I’m not on their list of shops and they told the customer that they could begin work on the car that same day if they took the vehicle to their facility.” “Have I ‘ever’ been a victim of steering? It almost happened to me a couple times TODAY!” exclaims another repairer, this time from the Camden area. “They try it all the time. Ultimately, it’s on me. I need to educate all my customers on exactly what the insurers are trying to pull. So far, it’s working on the ones I talk to, but who knows how many potential jobs I’m losing because the insurer gets to the customer first? I’m not a DRP for anyone and I don’t knock the ones who are, but my problem is with the insurance company throwing them work when the customer came to me fair and square.” “I’ve been labeled as everything from ‘difficult’ to ‘a problem’ to a shop who ‘won’t act in the customer’s best interest,’” reveals a shop owner in Edgewater. “All because I won’t use used parts or agree to the lousy rates they try to pass off on us. This is verbatim from some of my customers, who ended up coming to me in spite of the scare tactics the insurance company threw at them.” “Illegal steering goes on each and every day,” maintains one Hackensack business owner. “Insurers are trained to send our customers to DRP facilities so that they can control the process, get their parts discount and control the industry. We train our customers one at a time as to their rights per the NJ consumer affairs laws. Most drivers want the freedom to pick their own shop, and we as an industry should be telling every single person who comes to our shops that they have control over who repairs their car.”
How many employees do you have, including yourself? 1-5: 30% 6-10: 44% 11-20: 15% 21 or more: 11%
ISSUE AFFECTING SHOPS TODAY?
MOST PRESSING WHAT DO YOU THINK IS THE
As is true with every survey we run, this question always brings in the most detailed and diverse number of answers. While it is true that concerns like insurer mandates, consolidation, Labor Rate woes and changes in technology (all indicated in this year’s responses) weigh heavily on the minds of today’s repairers, our respondents cited numerous hot-button issues that are on their minds and impacting the way they do business. “The insurance companies’ increasing control, no question,” replies an owner/operator from Little Egg Harbor. “They prey on customers’ lack of knowledge and the shops bowing down to whatever crazy terms they put out there. Low Labor Rates, inferior parts, inexperienced appraisers dictating the whole process and more. And so many of us are just rolling over and letting it happen. It makes it so difficult for the shops trying to do the right thing. We have to fight on almost every job to do the repair the way we know is right and safe for the customer. I’m sure we’re in the minority.”
“PartsTrader is going to kill this industry,” notes a Woodbridge shop. “It’s already difficult to turn a profit in this day and age, between the taxes, the overhead and just the cost of doing business in New Jersey. Now you have this program ‘designed for our convenience’ that is in actuality going after one of the few profitable areas we have left, while also throwing a huge administrative burden on the shops who are using it.” While many mentioned insurer-related issues as having the most influence over the industry in the near future, several others pointed to incoming repairers - or the lack thereof. “I’ve always been into education,” a Bay Head shop tells us, “to keep our industry as an option to the students out there. But I don’t see them coming in the way they used to. The schools are pushing for all their kids to go to college, which is great in theory; in reality, college isn’t for everyone. Some students are great with their hands, or have an eye for design that will make them a terrific painter. They’re not really given that option to go into a trade, and as a result have no idea how many opportunities are available to them in this industry. All I know is we have to get some fresh blood into this workforce soon.” A Morristown collision repairer has a much more internalized opinion of what will be responsible for the success or downfall of this industry: “It’s us,” he says
simply. “We can either be our industry’s greatest defenders, or our own worst enemy. Unfortunately, it’s like there’s always only a handful of people really fighting for the change we need. I’m talking about going to Trenton to talk to regulators, standing up to the insurance companies trying to beat you down, reporting the unlicensed shop taking your jobs, putting in time either through association work or at the vo-tech schools…There are too many people complaining that this industry is going down the tubes and not enough people working to bring it to where it should be. This is the greatest industry in the world to work in - it’s up to us to keep it that way.” At the end of the day, the information contained within the preceding pages is not only informative and eye-opening, but indicative of an industry full of committed, experienced professionals who are not afraid to tell us how they feel. Whether the opinions expressed by this year’s respondents are critical or hopeful, the fact is that each one of them took the time out of their busy day to offer us a glimpse into what they have to deal with on a daily basis. If you’re out there feeling like you may be the only one who struggles with a certain issue or feels strongly about the need for change in a particular area, the results of this survey should hopefully demonstrate that you are not alone, and that there are a number of like-minded individuals out there who are willing, ready and able to fight the same fight as you. And maybe that’s the best piece of information of all to take away from this survey.
Yes Are you a 22% PartsTrader 78% facility? No
The implementation of insurer-mandated parts procurement systems like State Farm’s PartsTrader platform is by far the most controversial issue to hit New Jersey (as well as the rest of the country) in recent memory. While 22 percent of our respondents have indicated they are now using PartsTrader in their shop, the overwhelming attitude of those surveyed indicates that State Farm has a lot of work to do in convincing the industry of the program’s merits.
What’s the approximate ratio of OEM to aftermarket parts you use? 100% OEM: 7% 75 / 25: 56% 50 / 50: 22% 25 / 75: 11% Less than 25% OEM: 4% The OEM-versus-aftermarket debate is still going strong among shops in New Jersey. All the businesses surveyed by NJA had their own opinions concerning when and why they use aftermarket parts, if at all. “The only one who sees any savings in using aftermarket parts is the insurer,” says one Englewood shop owner. “They’re cheaper than the original automaker’s parts for a reason. The fit isn’t there, the quality isn’t there and personally, I’m not convinced that they’re safe. They’re not worth the trouble and the worry that a part will fail and injure someone down the line.” “We only use aftermarket parts when the customer has requested it, and they are already in an older vehicle that’s in medium to poor condition,” notes one Neptune owner. “If the owner is paying out of pocket and looking to cut costs, we’ll explore all the options available to them.”
“It’s a no-win,” says one Wayne repair pro. “State Farm promoted it as a time and money saver for the industry, but it’s neither. It’s actually costing shops and the dealerships more money when you figure in the time and expense associated with all those extra steps in parts purchasing.” This industry rep isn’t alone in his opinion. “This may be the downfall of our industry,” notes a Newton-based shop owner. “[PartsTrader] is an objective to alter list pricing on parts, which is not only detrimental to the auto body shops, but to the dealerships selling those parts as well.” One Westfield shop puts his thoughts out there much more succinctly:
Which automaker’s parts do you find most difficult to get? The most popular responses were: Kia Porsche Saab Suzuki Volvo
Which automaker’s parts do you find easiest to get? The most popular responses were: Chrysler Ford GM Toyota Honda
Approximately how much do you spend on parts annually? $100,000 or less: 13% $101K - $500K: 56% $501K - $1 million: 17% $1 million or more: 14% NJA
“Bad idea.
Unwanted and UNNECESSARY.” New Jersey Automotive
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FEATURE by Joel Gausten
THE RIGHT TO REVENUE: Insurers are expected to provide repair allowances that are sufficient to restore damaged vehicles to their pre-accident condition. The use of available paint and materials cost calculator manuals and programs to determine allowances is encouraged to assist insurers in achieving consistent compliance. The Department is monitoring insurer claim practices to confirm that allowances for all aspects of the repair process are sufficient. - New Jersey Department of Banking and Insurance Bulletin , October 2007
When the State of New Jersey issued the notice on the left nearly seven years ago, the intention was to establish once and for all that existing methods or tools that auto insurers used to calculate P&M costs were outdated or incorrect. As a solution to this problem, the DOBI bulletin urges insurers to use current guides (available through various third-party databases) to properly arrive at more accurate figures. Despite the positive intentions behind the bulletin, the past several years have seen considerable inconsistencies in insurers’ willingness to adhere to the DOBI’s position and accept and pay charges given to them by body shops based on a paint and materials cost accounting system. Recently, New Jersey Automotive has experienced a spike in the number of complaints we have received from shops regarding paint and materials reimbursement, indicating that a variety of carriers are failing to follow New Jersey guidelines. “Some insurers have come out and said they’ll ‘take the calculator into consideration,’ but are only paying up to certain dollar amounts,” offers one AASP/NJ member. “They’re constantly changing their positions. I thought it was clear that the formulas they’ve been using have been incorrect and not keeping up with the times.”
P&M Payments Spark Concern 40
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According to reports received by New Jersey Automotive, GEICO has apparently changed its philosophy on paint and materials reimbursement in recent months, electing to “negotiate the calculator” instead of accepting the shop’s documentation. Additionally, Progressive appears to be operating in a similar fashion. This continues to be a source of frustration for shops that work diligently to provide appropriate and thorough documentation of their expenses to receive proper payment. “It’s ironic that you can get an additional $85 on a bumper from one insurance company, and certain companies come back with $7 for the same job,” says one North Jersey-based member. Illustrating the need for the use and acceptance of a paint and materials invoicing system, one reader who uses the PMCLogic system claims to be able to identify at least $300 to $500 in additional money per job that he can show to carriers. PMCLogic by ComputerLogic is a paint and materials management system that will allow shops to track all of the paint and materials used to repair a vehicle and generate a large number of management, inventory control, purchasing and job costing reports. In addition, it can be used to generate a “predictive estimate” of what the final cost of P&M will be for each unique vehicle, and then produce a final invoice for what was actually used. “We’re not in the business of setting a price, but we have information that comes directly from all the paint manufactures and major suppliers,” offers ComputerLogic President Rick Palmer. “We take their database that they send to us, validate the information to make sure it’s correct and then put that out for the customer.” One New Jersey Automotive reader opined that the industry would have greater success in using paint and materials programs if more facilities urged insurers to accept them. “It’s frustrating because shops out there are not using or pushing it,” he says. “Now, insurers can say behind the scenes, ‘You have 15 shops; three of them are using it, and the other 12 are not. Let’s see what we can get away with.’” After decades in the industry, PaintEx founder Bob Klem knows this reality all too well. Although many new users of PaintEx
and other cost accounting products storm out of the gate with great enthusiasm – and often get paid as a result – Klem acknowledges that many shops start to feel battle fatigue once they’re out on the front lines of the P&M debate. “What happens is that most of these guys get tired of even ar-
guing, because there are new adjusters coming through their door every day,” he says. “Those adjusters are only speaking in verbal terms of what they’ve been taught, which is to cheat because that’s how they have been trained. The insurance appraiser doesn’t know and now claims that other shops don’t charge that amount, and he feels like he is overpaying the shop. A lot of them don’t even know what they’e saying in terms of strategy. They just say, ‘We don’t allow that,’ or ‘This is our limit on that.’ The good shops that know their numbers can’t be the only ones educating the appraisers. It’s exhausting work.” Fortunately, many of the PaintEx users nationwide who have stuck with enforcing the system have experienced tremendous progress. According to Klem, top PaintEx users with $1 million in annual sales are getting paid $70,000 in additional P&M revenue, while smaller shops generating $500,000 per year are walking away with $35,000. This is achieved by shops telling insurers what they are entitled to, with a little education and understanding of the systems. And with the upcoming release of an updated PaintEx system, shops will have more opportunities to move forward. That is, of course, if people use it. Although it will be difficult to change the industry overnight, using paint invoicing systems like PaintEx and PMCLogic is an undeniable step in the right direction. “Let’s face the facts,” one reader says. “An insurance appraiser has a financial obligation to write as little as possible. This only increases their bonus while climbing the corporate ladder. Shops have laid down over and over. If the information is out for all to see and use, why aren’t shops using it?” As Palmer says, “If [shops] will start presenting invoices for what they’re actually using at a reasonable price, they will get paid.” NJA
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PRESIDENT’S MESSAGE
continued from page 10
working as a collision repairer, I’ve never seen industry members so fired up and so ready for change. These are the people who will be the game changers for all of us. If this is the first you’re hearing about the legal actions mentioned above, you need to start paying attention to the industry around you. Take the time to read New Jersey Automotive and magazines like it
cover to cover when they arrive at your doorstep. Check out the trade websites. And come to a meeting! You never know what information you’re missing out on at an AASP/NJ event unless you’re there. Oftentimes, the ideas and thoughts exchanged before and after a meeting are just as valuable as the educational content presented during it. Long story short, make sure you are
aware of what’s going on in your industry. Believe me when I say that things are about to get really interesting.
NJA
EXECUTIVE DIRECTOR’S MESSAGE
continued from page 14
the right to control the cost of repairs without accepting responsibility for their actions. Over the years, we just began to accept this as fact. Well, we have reached the point where the greed of the insurance industry has put the survival of the collision industry in jeopardy. The intricacies of the vehicles on the roads today have ensured that the collision industry can no longer repair damaged vehicles in the manner - and at the cost that insurers would like. The collision industry is at the point where they have to either fight back or go out of business. The shops that have become aware of the information disclosed in this article and have decided to challenge insurers in a court of law are winning. Prominent law firms have finally realized that there is money to be made in taking on the issues the collision industry has been complaining about for years. Finally, one law firm has decided to call it what it is: Criminal! It has been a long time coming, but now is the time for collision shops that refuse to compromise on repair quality or safe repairs just because an insurer said so to take action. If you have had enough of being forced to repair damaged vehicles in a manner that you feel is unsafe and improper, stay tuned. If anyone would like to discuss the issues raised in this article please feel free to contact me at (732) 922-8909 or via email at Setlit4u@ msn.com. NJA
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NO BRAKES by Ron Ananian
Under the Hood Do you know what’s under the hood of your car? If you’re reading this, then I’d guess your answer is “probably.” If you’re reading this magazine, chances are that you have most likely been “in the business” at some point in time. Or maybe you’re a car person. But what about the “man/woman on the street” who only drives a car? Did you ever wonder about their perceptions or concerns? We were out to dinner recently with another couple; as usual, the conversation eventually turned to automobiles and radio shows, namely, where does the future lie for both? I really had no clue or answer for that first one. The future of the automobile industry depends on where the country, economy, desires and choices of the people take it. Certainly, the days of the industry as we know it are numbered; 20 years from now, another generation will accept whatever it morphs into and consider that the new normal. And what about radio? The radio show that I’ve done for these past 22 years and counting continues to roll, but who listens? At dinner, I explained,“I think it changes with the industry, but I also think less people today are as curious about what’s under the hood. They get in, start it and away they go.” On a whim, I turned to the young lady who was our waitress and asked her how old she was, what kind of car she drove, who she took it to for service and whether she listened to AM or FM radio. She replied that she was 25 years old, drove a Chevrolet, does not get the car serviced by any one person or facility in particular and doesn’t listen to AM/FM radio. (For the record, that’s about what I had expected.) “Why isn’t there a mechanic in the picture?” I asked. She said, “Because I never understand what they’re talking about, so I try to do a minimal amount of repairs and maintenance and just hope for the best.” I have since repeated this series of questions over half a dozen times, with pretty similar results. So what?
Here’s What! Auto repair - whether mechanical, collision or some combination of both - is really about teaching people what they need to do to be safe while operating an automobile. With each mini interview I conducted, I took the opportunity to mention and inquire about AM or FM radio. Most young people today listen to custom music playlists on their phone, an iPod or some similar “smart” device. FM radio is too old…and AM radio? They either don’t know it exists or prefer not to listen to “old people yelling about politics.” How about a radio show that educated you about your car? One that would empower you so you wouldn’t have that fear of going into the mechanic for repairs or maintenance? A show that was essentially the voice of a father talking to his son or daughter about the do’s and don’ts of owning a car? Each respondent assured me of his or her interest in this. Without getting too much into detail, each one was given information on where and how they could listen to such a show via podcasts, streaming, live radio, etc. I learned a great deal from each conversation. The most important takeaway? Young drivers want to know more about their car; they’re just afraid to ask or don’t know who to talk to. The Bottom Line We have an obligation to educate the up-and-coming generation of drivers, so is it any wonder that, when their perception of auto repair is the onslaught of cheap oil changes, discount maintenance and bargain brake repair, they become confused or
’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. 52
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frustrated when asked to properly repair or maintain their vehicle? The average consumer has great difficulty in identifying under-hood components, much less their relationship and specific role in an automobile. The human condition prohibits most people from looking at their fear and forces them into denial. “That guy charging more must be ripping people off; let’s stay away from him.” In actuality, he is probably following the factory guidelines and specifications, and repairing the vehicle as the manufacturer asks and requires. Denial is more than just a river in Egypt; it is an indication of education needed for the consumer and something we ALL need to do, from the front office to the repair bays to the broadcast booth. BYE FOR NOW - SEE YOU ON THE RADIO! NJA
What is Klean Frame?
Klean Frame is a machine that, when attached to a pressure washer, will spray, rinse and clean the underside of vehicles. This allows for the quick removal of corrosive salts, chlorides and debris, thereby extending the life of the vehicle.
Unlike other wash systems that focus on the top and sides of the vehicle, Klean Frame concentrates on the UNDERSIDE only. You’ll be amazed at how “klean” your frame will be! A Klean Frame model for every use! HR21 (designed for medium duty trucks,
full size vans, pick-ups, SUVs and more) HR30 (designed for dump trucks, tractor trailers, construction vehicles, fire trucks, etc.) LP21 (designed for cars, small SUVs, vintage autos, boat trailers, etc.) LP30 (designed for large equipment including buses, motorhomes and car trailers)
(973) 714-7550 955 Paulison Ave. Clifton, NJ 07011
info@kleanframe.com
www.kleanframe.com
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 New Jersey Automotive
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OVER 8,000 PARTS THAT ALL MEET ORIGINAL MINI SPECS...THE BUILDING BLOCKS OF MOTORING MATTER. At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function.
For Original MINI parts, contact any of these authorized MINI dealers.
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Princeton MINI
Prestige MINI
MINI of Morristown
MINI of Mt. Laurel
3466 US Highway 1 Princeton, NJ 08540 609-452-9400 fax: 609-945-1010 PRINCETONMINI.COM
925 Route 17 South Ramsey, NJ 07446 201-760-5080 toll free: 888-30-PARTS fax: 201-760-5072 PRESTIGEMINI.COM
170 Madison Ave. Morristown, NJ 07960 973-451-0009 x114 fax: 973-455-0273 MORRISTOWNMINI.COM
1311 Rt. 73 Mt. Laurel, NJ 08054 856-778-3000 fax: 856-813-4622 MINIOFMTLAUREL.COM
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FACEBOOK.COM/MINIOFMTLAUREL
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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 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 Past President Norm Vachon Port Murray Auto 908-689-3152 portmurrayauto@yahoo.com Executive Director Brian Snyder Auto Recyclers of NJ 609-714-2339 brian@aranj.org
ARANJ
ARANJ 2014 Board of Directors
The Automotive Recyclers Association of New Jersey
Wharton Insurance Briefs Your safety manual should have an Accident Response, Investigation and Reporting section. Despite careful and proper planning, accidents and injuries can occur. Remember, the quality of treatment right after an injury often impacts the severity of the injury. Set a policy where all accidents and near misses are reported and investigated by management. Then try to identify the cause of the accident or incident. Eliminating the hazard will help you understand and better control your workplace injuries. In addition, you will be better prepared to comply with OSHA and other regulatory reporting requirements. Please call me with any questions you may have on your current insurance program. Mario DeFilippis, AAI, Vice President (800) 221-0003 (ext. 1320) • (908) 513-8588 mdefilippis@whartoninsurance.com
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
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LAST LOOK
Continental Auto Parts Announces achievement of NSF International Distributor Certification Continental Auto Parts (CAP) is excited to announce that the company has achieved a milestone by becoming an NSF International certified distributor. The NSF International Automotive Collision Parts Distributor Certification Program closes the supply chain gap between parts manufacturers and repair shops by addressing the key role distributors play in providing quality parts. The program was developed with input from collision repair shops, collision parts distributors and insurers, and is publicly supported by a leading body shop trade association. Among many protocols, some key requirements include automotive parts traceability and recall processes. The program provides collision repairers, consumers and insurers confidence that those distributors gaining NSF certification meet the highest criteria for system management to address part traceability, complaint tracking and quality issues for both certified and non-certified parts. NSF certified distributors have the systems in place to quickly and efficiently resolve issues as they arise. “We are very pleased with this achievement,” said Thomas Lee, president of CAP. “This validates a lot of hard work by many people in our organization that share the same vision, to offer quality products and excellent service.” “We don’t view this as just a piece of paper to frame and hang on the wall for all to see,” adds Michael Koren, operations manager at CAP. “This is aimed at making us a more efficient, stronger and competitive company that can remain competitive on a daily basis for a long time.” For more information on the Automotive Collision Parts Distributor Certification Program, please go to www.nsf.org. CAP is a supplier of high quality (CAPA, NSF) replacement aftermarket auto body parts, reconditioned OEM plastic bumpers, and remanufactured OEM alloy wheels. There are seven CAP service centers throughout the northeast. Their hub in Newark is a 170,000+ square-foot warehouse which also includes a bumper recycling facility. They are also located in Mt Laurel, NJ (South Jersey, Metro Philly and DE); Brooklyn, NY; Newburgh, NY (Mid Hudson Valley), Little Falls, NY (Albany, Syracuse; Batavia, NY (Buffalo, Rochester); and Carlisle, PA (Lancaster and Lebanon Valley). For more information, go to www.continentalparts.com or call (888) 368-7227. NJA
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SATAminijet 4400 B HVLP & RP*
Provides Optimal Coverage, Enhanced Durability The SATAminijet 4400 B is the perfect compact spray gun if you are looking for superb finishes on areas of difficult access or on small panels. The special SR nozzles are perfectly suitable for spot repairs on vehicles. This spray gun allows the application of all modern paint systems – including waterborne paints
Ergonomics With its new, ergonomically shaped handle, the spray gun is perfectly balanced. All controls can be easily operated even when wearing gloves. The spray gun is sturdy and long-lasting. Enhanced durability The spray gun body is equipped with a corrosion-resistant chrome surface. The sturdy air cap is made of chrome-plated brass; the paint needle and fluid tip are made of tempered stainless steel. The trigger protects the paint needle from overspray during painting, thus prolonging the lifetime of the paint needle sealing. The air piston rod has been especially reinforced. Large QCC cup connection The SATAminijet 4400 B allows the use of all three RPS cup sizes with no adapter necessary. The large cup connection makes the cleaning of the material passages extremely easy. Performance The SATAminijet 4400 B has a quiet, soft fan, with high working speed and fine atomization. The fan is larger than former SATAminijet models, and the SR nozzle sets provide a wide, evenly shaped fan perfect for spot repairs, blends and small panels. *RP version pending SCAQMD and EPA approval.
Dan-Am Company is the exclusive independent distributor of SATA products in the US and Puerto Rico. For further information, please visit www.satausa.com NJA
For all we have to offer, visit us at
www.nucarparts.com Scan the QR code for Nucar Wholesale Parts New Jersey Automotive
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Acme Nissan................................................56 Amato Agency..............................................31 American Honda Motor Co. ........................6
Audi Group ..................................................61
Axalta Coating Systems ..............................IBC
BMW Group ................................................26-27 Bridgewater Acura........................................55
Brogan GM Parts Center ............................43 Cadillac of Mahwah......................................8
CCC Comp-Est ............................................53 CCC One ....................................................5
Classic Audi ................................................12
Clinton Acura................................................43 Cosmos Recycled Auto Parts ......................14
Crane Chevrolet ..........................................45 Crestmont Toyota ........................................45 Crestmont VW..............................................47 Empire Auto Parts ........................................66
Flemington Group ........................................23 FMS Managers LLC ....................................49
Future Cure..................................................10
Glen Toyota..................................................OBC Hackettstown Honda....................................44 Hyundai Group ............................................50 JMK BMW ....................................................13 JMK Saab/JMK Fiat ....................................42
Klean Frame ................................................53 LKQ..............................................................59
Maxon Mazda ..............................................19 Maxon Hyundai ............................................32 Mazda Group ..............................................64 Mercedes Benz of Freehold ........................33
Mike Kaufmann Dealer Group ....................46 Mini Group ..................................................54 MINI of Manhattan ......................................17
Mitsubishi Group ..........................................65 Mopar Group................................................51 NU-CAR ......................................................63 Paul Miller Audi ............................................30
Porsche Group ............................................58 PPG ............................................................3
Prestige Motors............................................44 Princeton BMW ............................................13
Princeton Mini ..............................................33 RW Mallon/Collision Equipment Company ..11
Saw Mill Auto Wreckers ..............................47
Subaru Group ..............................................57 Town Audi ....................................................42 Toyota Group ..............................................48
Toyota of Hackensack..................................IFC Valspar ........................................................4
Valtek ..........................................................66 VIP Honda....................................................55 VW Group ....................................................60 VW of Freehold ............................................9
Wheel Collision Center ................................53
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