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
August 2014 $5.95
Lot Lizards & Broken Laws: Shops Speak Out Against MOBILE
REPAIRERS
CRISIS pg. 28 CRASH AVOIDANCE
www.grecopublishing.com
278 River St., Hackensack, NJ 07601
SERVING THE NORTH JERSEY AUTOMOTIVE INDUSTRY FOR OVER 30 YEARS
TOLL FREE PARTS HOTLINE:
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DIRECT:
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Multiple Deliveries Daily We Stock Just About Everything We’ll Help You Get More Cars Out the Door Faster! AFTERMARKET PRICE MATCHING AVAILABLE WWW.TOYOTAOFHACKENSACK.COM Ask us about
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Image©Istockphoto.com/Ibrahim Sari
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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
CONTENTS VOLUME 44, NUMBER 8
8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE 12 EXECUTIVE DIRECTOR’S MESSAGE
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More Than Parts: Honda Goes Beyond in Serving the Auto Repair World
LEGAL FEATURE by Mitch Portnoi 18
A Word to the Wise
WHAT SAY YOU? 22
How Have Mobile Shops Affected Your Business?
FEATURE 28
The Crash Avoidance Crisis: Will Technology End the Repair Industry? by Joel Gausten
TECHNICAL FEATURE
Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com
IN & AROUND AASP/NJ
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
24 MEET THE BOARD 62 NJA ADVERTISERS INDEX
VENDOR SPOTLIGHT
Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com
Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com
August 2014
34 38
Structural Realignment Changes by Larry Montanez III, CDA and Jeff Lange, PE MOTOR Information Systems Announces Mike Lovullo’s Retirement as Independent Distributor
COVER STORY by Joel Gausten 42
Lot Lizards & Broken Laws: Shops Speak Out Against Mobile Repairers
THE LIST 48
What’s Your Favorite Movie Car?
NO BRAKES by Ron Ananian PUBLISHER Thomas Greco (thomas@grecopublishing.com) MANAGING EDITOR Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)
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
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Dodging the Bullet
AUTOMOTIVE RECYCLERS OF NEW JERSEY 58 Legal Update
58 Wharton Insurance Briefs
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 42: thinkstock.com/Creative_Outlet; Page 12: thinkstockphoto.com/filo; Page 28: thinkstockphoto.com/Sergey Nivens; Page 35: thinkstockphoto.comIngram Publishing; Page 42: thinkstockphoto.com/tkacchuk; Page 54: thinkstockphoto.com/missisya
New Jersey Automotive
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
Your Feet’s Too Small
Love him or hate him, I think it’s pretty obvious that President Obama is in over his head. Every day, it seems like another scandal or investigation comes out, and their frequency has really had a numbing effect on those who pay attention. Sadly, most don’t. Many people (especially those under 30) have no clue and don’t really care about what’s going on. They have become either completely distrustful of our politicians (and rightly so), or are so absorbed in the Internet/reality TV way of life that they are completely
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ignorant of anything outside of their personal space. But getting back to the President, I’ll be honest - I didn’t vote for him, but when he was elected, I wanted him to succeed. I have always felt that no matter who wins the election, our President is my President. Looking back, if we’re being honest, most would say that President Bush was in over his head throughout his second term as well. That got me thinking: Maybe, in this day and age, it’s impossible to be President and NOT be in over your head.
by Thomas Greco, Publisher
Look at those who came before Bush and Obama. Clinton? Love or hate him, he presided over relatively good economic and peaceful times. His biggest problem was not being in over his head, but where he was getting…Never mind. Bush 41? He never got a chance to get in over his head. Ross Perot saw to that. Reagan? Say what you want about him, but the guy knew how to lead. A lot of people look to him as the greatest President of their lifetimes, and I agree with them. But could he have led the way he
did in today’s world of terrorism, polarization and the Kardashianism? I’m not so sure. I never thought I’d see the day where I dreaded reading or watching the news. But as I have said many times before, you just can’t get an unbiased report on ANYTHING these days. Is President Obama inept? If you watch most of Fox News, you’d think he was. Was President Bush the devil? If you read the New York Times or watch MSNBC, you’d sure think he was. I don’t agree with either of those viewpoints. I just think that the job’s shoes have become too big to fill and we certainly don’t have anyone nearly huge enough to fill them (insert Christie joke here). So what do we do? I wish I had the answer. We all know the candidates who are out there. Tell me: Do you have high hopes for any of them? If you do, please share. I just finished a book called Bouts of Mania: Ali, Frazier, and Foreman and an America on the Ropes, and it’s pretty scary how much the description of the
America of the early ’70s matches what we are going through today. The premise of the book was that this trio of fighters and their boxing wars somehow helped the country get through a very bad time. Now, that’s a stretch. Even so, we don’t have an Ali or a Frazier to look to for inspiration or even a distraction from the big picture. Hell, does anyone even know who the Heavyweight Champion of the World is??? But there is a lesson in the book. I’m sure that back in the days of Presidents Johnson and Nixon, some distinguished writer was writing about the job being too big and the lack of candidates, and that Joe Louis and Rocky Marciano were no longer around. Then along came a man like President Reagan, and with him returned prosperity. I may be skeptical, but I still have faith. It’s not impossible to think there is someone out there who will not be overwhelmed, who can somehow pull us together for the greater good.They’d better have some big-ass feet.
ADDENDUM New Jersey Automotive's coverage of the controversy over P&M reimbursement (“The Right to Revenue: P&M Payments Spark Concern,” July 2014) has elicited a strong response from readers. The issues discussed in the feature hit home for longtime AASP/NJ supporter Michael Lovullo of MicroMix (www.micro mix.net), who tells us that he has experienced many instances of insurers making up their own rules regarding how they pay shops for P&M. “I'm in four counties in New Jersey; of those four, every [insurance] office is different,” he explains. “Some offices take [MicroMix], while others don't. How can it be that some offices will take it, and some offices will not? They should take it wherever they are. The acceptance should be done by the corporate office; it shouldn't be, 'Well, the manager makes the rule.'” Mick Fetter, the auto body industry veteran who developed MicroMix, advises shops new to using P&M cost accounting systems to take a good look at what they're charging for versus what they actually use on a job. “If you keep track of your actual usage, it'll be an education process,” he says. “It'll help you educate the adjusters so that you can do a better job of selling your system and that estimate.”
NJA NJA
New Jersey Automotive
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PRESIDENT’S MESSAGE
AASP/NJ: Here to Help
by Jeff McDowell
By the time you read this message, the NACE/CARS Expo and Conference will have concluded its 2014 installment in Detroit. Before you know it, it will be time for the 2014 SEMA Show in Las Vegas - and after it, AASP/NJ’s NORTHEAST® 2015 Automotive Services Show at the Meadowlands. It’s going to be a tall order to top last year’s banner event, but we are already working hard to do just that. Stay tuned for exciting developments as our 2015 flagship event begins taking shape. Before we get into the excitement of trade show season, however, we in the collision field have to first get through auto body license renewal time. If you’ve been paying attention in the pages of New Jersey Automotive or on the AASP/NJ website, www.aaspnj.org, you’re already aware of the two packed meetings the association recently hosted in Totowa and Toms River. Over 100 members and non-members alike came out to these informative meetings, presented by Larry Montanez of P&L Consultants, and all received certificates good toward the training requirement of their license renewal. If you were not in attendance at either of these meetings and have not yet fulfilled your training requirement, time is really running out. The renewal deadline at the end of September is rapidly approaching, and the time to make sure you have not only your training but also the rest of your paperwork squared away is NOW. AASP/NJ may be holding one last round of trainings as we get closer to the deadline, so if you have not yet received a training certificate, please be sure to check your fax machines and the AASP/NJ website frequently for updates. More importantly, if you are not yet in compliance - and even if you think you are, but you’re not sure - I urge you to contact AASP/NJ Executive Director Charles Bryant TODAY at (732) 9228909. We are here to help you! NJA
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EXECUTIVE DIRECTOR’S MESSAGE
The Collision Industry Isn’t Going to Take it Anymore!
hese days, you can’t pick up an automotive trade magazine that doesn’t have a headline about a collision shop suing an insurance company for failure to pay a reasonable amount for safe and proper repairs. For years, attorneys refused to address auto property damage cases simply because there was not enough money involved to make it affordable for the shop to file suit on issues that so many of them face on a daily basis. The issues range from receiving a fair and reasonable Labor Rate (and rate of paint and materials compensation), getting paid for the procedures required to perform safe and proper repairs and more. The problem is that the damage to an automobile is usually an average of $3,000 to $4,000. If an insurance company comes in and shortchanges the shop for about $1,000, it would usually cost the shop more than that in attorney’s fees alone to collect the money he or she is rightfully entitled to. As a result, it has not been economically feasible to turn to the courts for relief. Even if the shop was to win the case in New Jersey, he or she would not normally be able to collect the attorney’s fees. All the shop would win, basically, was the knowledge that they were right. In the meantime, the customer would be fuming because the dispute has kept them from the vehicle for weeks; the relationship between shop and customer would likely be fried. For many shops, the best thing they could do was simply take what the insurance company was willing to pay and try and figure out a way to get the car repaired for that amount. Well, I’m here to tell you that those days are over! If a collision shop cuts corners on one of the extremely complicated vehicles on the roads today, disaster will likely follow. Today’s vehicles have to be repaired as per manufacturer recommendations or the shop could to be liable for negligent repairs, should a faulty repair result in injuries in a future collision event. The biggest problem shops face is the fact that consumers simply cannot afford
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to be without their car for months at a time while these issues get worked out in a court of law or otherwise. Insurance companies know this and use it against their own insureds and the collision shops attempting proper repairs on a daily basis. Insurance company appraisers walk in the body shops and frequently say, “We don’t pay for that” or “We only pay this much for that.” I challenge anyone to find this type of language in an auto insurance policy in New Jersey - or, for that matter, anywhere else in the country. Contract language is actually closer to “in the event of an accident or loss, we will pay a reasonable amount to repair or replace your damaged automobile.” There is language found in almost every policy’s payment of loss provisions that basically states, “In the event of an accident or loss, we will settle your claim in one of the three following manners; we will either pay for the loss in money, repair or replace your automobile.” This language is key to what is taking place
August 2014
by Charles Bryant
today across the country and the reason that we’re seeing successful lawsuit after successful lawsuit against insurers that refuse to fulfill their contractual obligations to the insured when a loss does occur. Certain attorneys have figured out a way to resolve these issues without consumers having to be without their cars for an extended period of time. In some states, the attorneys have figured out that the insurer is even obligated to pay court costs and attorney’s fees when these cases are successful. At the present time, that is not the case in New Jersey, but I feel confident that once this conduct of shortchanging consumers who have entered into an insurance contract is exposed a little more, the courts will likely have a second look at the legal fee issues. Time will tell, but in the meantime, the amount of money shops are losing - even without the attorney fees factored in - is making it impossible for the industry to not address this major problem.
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EXECUTIVE DIRECTOR’S MESSAGE
The cars on the roads today are not like the cars that were on the roads years ago. Today’s vehicles are extremely complicated and require special training and equipment to be repaired properly and safely. Manufacturer recommendations must be followed to the T in these repairs. If not, the vehicles are likely to be put back on the road in an unsafe condition, not only for the passengers, but for other people on the road who are likely to cross their path as well. This is simply unaccept-
able. I have preached and preached that this day would come, and in seeing many trade magazines’ coverage of lawsuits against insurers, I see that this day is in fact here. Collision shop owners have bent over backwards to work with insurance companies to resolve these issues and in the past when the cars were not so complicated, a lot of the issues got worked out. That is simply not the case today, and the proper repair procedures simply cannot be compromised.
When I mention the lawsuits, I’m not just talking about the ones being widely publicized across the trade press. I am also talking about multiple small individual lawsuits across the country, where shops have repaired a vehicle properly and returned the vehicle to the owner after taking an assignment of proceeds to pursue the balance due for the repairs that an insurer has refused to pay for. When relieved of the burden of losing their car while waiting to resolve the shop-insurer issues, many customers have no problem signing these papers, which allow shops to take on the concerns directly with little or no involvement from the vehicle owner. Insurance companies have been able to shortchange the consumer and the collision industry for so long that the industry grew to believe there was nothing they could do to change the system and problems referenced above. However, the greed of insurance companies has finally risen to a level that can no longer be tolerated. Collision shops cannot afford the training and equipment that is required to repair the modern vehicles on the roads today without being compensated adequately for it. Collision shops cannot afford to buy the materials necessary for repairs without being properly compensated for them (never mind realizing a profit). Collision shops cannot afford to pay qualified collision repair technicians fair and reasonable rates for their services unless the shops are being paid a fair and reasonable rate from the insurance companies insuring those vehicles. I urge the people in the collision industry to open their eyes and gather the courage to stand up and be counted. You must learn to say enough is enough and fight this unjust system the insurance companies have created. I have had too many collision shops call me to say goodbye before they close the doors because they simply cannot survive under the conditions the insurance industry has placed on them. If there is any collision shop out there that would like to discuss how to address the issues in this article, please feel free to contact me at (732) 922–8909 or by email at Setlit4u@msn.com.
NJA
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VENDOR SPOTLIGHT
Honda Goes Beyond in Serving the Auto Repair World
MORE THAN PARTS:
As more and more drivers learn each year, American Honda Motor Co. is leading the future of the automotive industry.
With the Honda Accord being the best-selling car for individual American buyers in 2013, the auto manufacturer’s presence on roadways shows no signs of slowing down. Naturally, with so many celebrated cars on the road, Honda understands the importance of maintaining healthy and mutually beneficial relationships with wholesale parts dealers and auto body shops. Honda currently boasts more than 30 wholesale parts dealers in the Garden State, while recent surveys by Carlisle & Company and
NADA indicate that American Honda has one of the highest parts fill rates in the industry. At least 10 of Honda’s New Jersey-based wholesale dealers are among the largest in the country. Acura has a strong presence as well, with eight of the 15 dealers in New Jersey among the largest operations in the US. “Parts availability is a big part of what we bring to the party,” offers Gary Ledoux, Honda’s assistant national manager for collision parts marketing. “We have a lot of internal support for what we do, and they realize what we do is important for the industry – and especially for our customers. It’s important for Honda and Acura customers to be able to drive a properly repaired, safe car. That’s what drives us.” Honda encourages the use of OEM parts through their Collision Select program, which provides body shops with greater access to Honda and Acura Genuine parts. “That helps our dealers work with the body shops to install more Honda Genuine parts,” Ledoux says. Of course, encouraging shops and customers to utilize OEM parts is only half the battle. To ensure the safest and most professional repairs possible, technicians must also adhere to Honda’s recommended procedures for their various vehicles. In an effort to better distribute this information to the national repair community, Honda recently created Body Repair News, a regular bulletin on new models and technologies. Archives of the publication are available at www.techinfo.honda.com for Honda vehicles or www.techinfo.acura.com for Acura vehicles. (Click on “Collision Repair Information and Industry Position Statements.”) “When we have a new vehicle launch, we’ll send [Body Repair News] out to the collision industry along with the launch of the car,” explains Ledoux. “This gives a very short Reader’s Digest version of the new technologies in the car. It’s not a replacement for the full collision repair manual [available online at www.techinfo.honda.com or www.techinfo.acura.com], but [the publication] has been very well received by the industry. One of the things that industry people really like about them is that we show a white-body picture of the new car, and all of the different steels are color-coded so they can see what’s high-strength steel, and what level it is.” In addition to a sizable in-house department at American Honda Motor Co. strictly dedicated to servicing the auto body segment, the company has an ongoing presence at industry events like the Collision Industry Conference (CIC). Currently, Ledoux serves as chair of the OE Collision Repair Roundtable, a non-profit collision repair industry association comprised of
continued on page 62
American Honda Motor Co.’s Body Repair News offers manufacturer-specific repair information to shops nationwide. 16
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LEGAL FEATURE
A Word to the Wise
by Mitchell Portnoi, Esq.
How much insurance is too much?
The short answer to that question is, you never have too much insurance. As a business entity, you literally can never be over-insured. As an individual, the same holds true. If possible, you should be carrying as much insurance as is available to you and then supplement that policy with an umbrella policy (which is often comparatively inexpensive). The reasons for this are simple. We never know who could be on the receiving end of our negligent missteps or omissions. A simple careless act or failure to act could take on monumental damages and could put your business or personal life on the hook. It is vitally important that you understand your insurance coverage, and perhaps even more important that you understand what is not covered. A few cases recently handled in my office bring to light these very issues. In one case, a young woman walking across
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the street in a local community was hit by a vehicle occupied by a young couple taking their child to the hospital. The injuries to the young woman were monumental and put at risk any and all of the young couple’s assets. Unfortunately for the young woman who was injured (my client), the young couple did not have any substantial assets. This problem could have been averted if my client and her family had significant coverage over and above the minimal coverage of the at-fault defendants. The same general issues apply to any business that is sued for the negligent acts or omissions of their employees. The failure to have significant coverage places the business and, subsequently, all its assets (real estate, machinery, furnishings, etc.) at risk.
August 2014
The stakes are high in your business, and the availability of protection is close at hand. Take advantage of those protections and speak to an experienced attorney and/or insurance broker to get the right advice. Call me using the information below with any questions you may have. NJA
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THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. For Original BMW Parts, contact one of these authorized BMW centers: JMK BMW 391-399 Route 22 E. Springfield, NJ 07081 Toll Free: 800-648-0053 Fax: 973-467-2185 www.jmkbmw.com
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New Jersey Automotive
Princeton BMW 3630 Quaker Bridge Road Hamilton, NJ 08619 PH: 609-570-1611 Fax: 609-570-1602 www.princetonbmw.com
BMW of Freehold 4225 Route 9 North Freehold, NJ 07728 PH: 732-462-6286 Fax: 732-577-0518 www.bmwoffreehold.com
BMW of Roxbury 840 Route 46 East Kenvil, NJ 07847 PH: 973-627-7999 Fax: 973-598-0339 www.bmwrox.com
Flemington BMW 216 Route 202/31 Flemington, NJ 08822 PH: 908-782-2441 Fax: 908-824-9913 www.flemingtonbmw.com
August 2014
Prestige BMW 985 Route 17 South Ramsey, NJ 07446 Toll Free: 888-30-PARTS Direct: 201-327-8485 Fax: 201-760-5525 www.prestigebmw.com Wide World BMW 125 East Route 59 Spring Valley, NY 10977 PH: 877-817-3895 Fax: 845-425-5080 www.wideworldofcarsbmw.com
Original BMW Parts
The Ultimate Driving Machine®
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They’re called “Original BMW Parts” for good reason. For uncompromising precision and incomparable quality, your BMW center is your One-Stop shop for everything BMW.
Circle BMW 500 Route 36 Eatontown, NJ 07724 Parts Direct: 732-440-1235 Fax: 732-440-1239 wholesale@circlebmw.com www.circlebmw.com
Open Road BMW 731 US Highway 1 Edison, NJ 08817 Parts Direct: 732-692-6918 PH: 732-839-4505 Fax: 732-650-9815 www.openroadbmw.com
BMW of Mount Laurel 1220 Route 73 South Mount Laurel, NJ 08054 PH:856-840-1486 FAX:856-222-0506 www.bmwofmtlaurel.com
BMW of Bridgewater 655 Route 202/206 Bridgewater, NJ 08807 PH: 908-287-1800 FAX:908-722-1729 www.bridgewaterbmw.com
BMW of Morristown 111 Ridgedale Ave Morristown, NJ 07960 PH:973-796-3145 Fax:973-796-3146 www.bmwmorristown.com
Paul Miller BMW 1515 Route 23 South Wayne, NJ 07470 PH: 973-696-6060 Fax: 973-696-8274 www.paulmillerbmw.com
Park Ave BMW 530 Huyler Street South Hackensack, NJ 07606 PH: 201-843-8112 FAX:201-291-2376 www.parkavebmw.com
BMW of Newton 119 Hampton House Road Newton, NJ 07860 PH: 973-579-6020 FAX:973-579-9632 www.bmwnewton.com
New Jersey Automotive
August 2014
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WHAT SAY YOU?
How have mobile repair shops affected your business?* “I think the issue affects a lot of industry members. This is a slow time of year and the work is out there, but unfortunately these guys are taking it from the legitimate shops. If you want to really compete with the mobile shops, you either have to compromise quality - which also compromises your reputation - or reduce your prices and ultimately your profit margins. It’s a no-win situation.”
“Our shop has seen several jobs come in that were clearly done by a shop that was not operating under the same conditions as your typical body shop. How good of a repair can you put out if you’re working outdoors with the wind blowing all kinds of crap into the paint? I’m sure we’ve lost out on work to these rolling repair shops who claim to do everything under the sun, but sooner or later, the jobs come back to us to be done the ‘right’ way.”
“I haven’t had any real dealings with mobile repair shops up here in my area, but I’m a small shop. I talk to guys at high-end facilities and others who are close in proximity to some big dealerships, and according to them, it’s an epidemic. I guess it depends on where you are and what kind of volume you have.”
ROXBURY
NORTH BERGEN LINDEN
SOUTH PLAINFIELD
POINT PLEASANT “We haven’t dealt with it very much in our specific area, but I talk to guys who are seeing it all the time. I actually saw an ad in our local coupon clipping mailer for ‘we’ll come to you’ bumper repairs. There’s no doubt they will hurt us - it places a blemish on the auto body industry. And we are the ones who have to deal with the consequences. When a job comes in and we find prior interior work when writing an estimate, we have to halt the job to figure out how to proceed. The customer just wants their most recent job done, but we’re finding an old, bad repair. And at the end of the day, all the fingers are pointed at us. The liability lies with the shop that touched the car last. If we d ecide to ignore that bad repair and the car ends up having an accident as a result, we are responsible for those damages, even if we didn’t perform the bad repairs in the first place.” 22
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JACKSON
“I’m unhappy that I’m forced to compete with them, but the ones who really lose out are the customers. These people are buying cars either new or certified pre-owned, and are under the impression that the car has been repaired or painted with certain manufacturer standards in mind. In some cases, what one may think is a factory paint job could really just be a spray here and there from an unlicensed, unregulated shop. The consumers aren’t even aware that this is happening until they’re in a subsequent accident or the original job peels, chips or bubbles…then it’s up to the real body shop to clean up that mess.”
“Absolute best case scenario, an unlicensed mobile shop in New Jersey is violating at least one law at any given time. Even if the ‘shop’ is following all safety regulations and material handling laws - which we all know they are not - they’re in direct violation of the New Jersey Auto Body Licensing laws, which plainly state that a repair facility must be housed in a building. Then there’s the environmental aspect, and the fact that they’re violating 6H regulations. Are they spraying clearcoat out into the open air of a residential neighborhood, or worse, driving around with a drum of hazardous waste in the trunk of a van? Or are they just dumping that waste into a sewer drain? And that’s not even discussing the poor quality repairs. Any way you slice it, they’re dangerous to both the industry and consumers.”
*For more on this topic, read our feature on page 42
For all we have to offer, visit us at
www.nucarparts.com Scan the QR code for Nucar Wholesale Parts New Jersey Automotive
August 2014
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MEET THE BOARD KEITH KREHivEeLRepair Krehel Automot
“
”
How did you get involved in the automotive repair industry?
It all started with me taking an auto mechanics class in high school. I was fascinated by how things work. I got a job in the JCPenney auto repair shop at the Willowbrook Mall in Wayne when I was 16, and worked my way through high school and college. After graduation, I kept the job as I went on to become a high school teacher. One night, after I had been teaching for a couple of years, I came to the awful realization that I was spending over 80 hours a week either commuting to and from or working at either of my two jobs. Something had to give; I figured at that point that if I was going to work this hard, I might as well be self-employed. Other than teaching, the only thing I felt comfortable and knowledgeable enough to branch out in was auto repair. I remembered how my summers off from teaching - where I was working full-time at JCPenney - had felt like a vacation in comparison to the grind of juggling both jobs throughout the school year. So I made the decision to open my own business. In 1982, Krehel Automotive Repair opened its doors in Clifton. How has the shop changed in the 30-plus years you’ve been in business? Well, most notably, we no longer sell gas. The first location I had, we sold gas and did auto repairs. Because of the area we were in, we ended up with a lot of commercial work, which in itself was great, but the space of the shop meant that we had to do a lot of work outside in the parking lot. This wasn’t a great choice, especially in the winters. When the second five-year term of my lease was coming to a close, I realized that we needed not only a different building, but a different routine as well. There was no money to be made in selling gas, and we needed more space to work on the commercial accounts we had gained over the years. I purchased land in our present location and on that site built a 4,000-square-foot facility. About five years ago, I bought out our next-door neighbor’s property - which was about 100 years old and looked every day of it - knocked it down and was able to expand to 10,000 square feet. Do you provide any other services in addition to mechanical repair? We are a distributor for Klean Frame (www.kleanframe.com), an under-vehicle wash system. We also do plowing throughout the winters. The way I got into it was kind of funny. The original location “came with” a 1962 Scout in back of the building. It had a three-speed manual transmission, and a manual snowplow. That’s right, I said manual. If you wanted the plow to tilt up, you would pull a knob on the dash. If you wanted to change the angle, though, you would have to pull over, get out of the truck, pull a pin on the plow and manually redirect it. Not the most convenient piece of equipment in a snowstorm…Anyway, we have been plowing snow since Day One, even back when the plows themselves were pretty barbaric. What brought you to AASP/NJ? [Then-AASP/NJ Membership Coordinator] Ernie Miller. [Fellow AASP/NJ member] Greg Dwyer had mentioned me as a potential member, and after speaking with Ernie, I joined. It seemed like a great way to help represent and promote the professionalism of the mechanical repair industry. Later, when I was asked to join the AASP/NJ Board of Directors, I did so without hesitation for the same reason. 24
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NEWS You currently serve as AASP/NJ’s Mechanical Chairman. Do you have any specific short- or long-term goals you’d like to see the association achieve? I would love for us to grow our mechanical membership. There are so many mechanical repair shops that would benefit greatly from joining AASP/NJ. It is my hope that we continue to reach out to those shops and encourage them to join us. What book are you reading right now? Bailout Over Normandy by Ted Fahrenwald. It’s the story of a World War II fighter pilot who was forced to bail out of his plane into enemy lines. I’m very interested in the history behind the WWII era, and this is a great true story about some of the unbelievable experiences of that time. What’s one thing your industry colleagues may not know about you? I’m a bit of a thrill seeker! I enjoy racing - go-karts and drag racing, in particular and I’ve tried flying, but couldn’t get into it. Something about being that high up in one of those little two-seaters was a little much, even for me. I also love scuba diving, especially doing deep-sea dives to explore shipwrecks. Sounds dangerous. It can be. There was one particular time that got pretty hairy. We were about 100 feet underwater in an upside-down WWII wreck in Truk Lagoon (a body of water about 1,000 miles off the coast of New Guinea). Two buddies and I were swimming along the wreck, whose deck was crushed into the sand from impact. We found a channel that enabled us to get up inside the boat. To our knowledge, that was the only way in or out. We tied off a line to find our way back to that main channel, and started looking around. As we got deeper and deeper, my friends wanted to go a bit further than I did, so I decided to turn around. I swam alone into what I thought was a hole back to that main channel; instead, I ended up in a closet-sized space with no water current and about 18 inches of silt. At the slightest movement, that silt flies up and creates a sandstorm. As soon as I started moving around in there, there was zero visibility, and no way to get out by sight alone. Luckily, I didn’t panic; I felt around and slowly went hand-over-hand along the outer wall until I found my way. But there were a few minutes there where I wasn’t sure if I was going to make it out. What would you say is your greatest accomplishment? Well, being in business for 32 years is definitely up there in my book, but I think my greatest achievement would have to be working almost full time while maintaining good grades at - and later graduating from - Montclair State University. The discipline and work ethic that were necessary to get through school have stuck with me through my years in business, and have driven me to keep striving after all these years. Do you have any words of advice for those just starting out in business? Pace yourself. Moderation is key; just because you open your business on a Tuesday does not mean you should run out and buy a Mercedes on Wednesday. NJA
ABC News Spotlights Unsafe Repairs An explosive TV investigative news report by ABC Action News in Florida has put the issue of potentially dangerous repairs performed by DRP shops directly in front of the motoring public. According to the report, Florida vehicle owner Will Dunn was directed by his insurer to use one of their Direct Repair shops for the repair of his Nissan Altima. “My insurance adjusters called and...pretty much steered me to their shop,” he says. Dunn claims that shortly after receiving the repaired vehicle, he noticed gaps in the seams in the rear of his vehicle. He took his Nissan to Gunder’s Auto Center in Lakeland, where owner Ray Gunder discovered a crushed portion of the frame in the right rear of the vehicle. “Whoever sits in that back seat is going to be put in major harm’s way,” he said. According to ABC Action News, Gunder’s Auto Center is one of 20 Florida collision repair facilities that have filed suit against 30 insurance companies, alleging “a pattern of coercion to force these shops to take short cuts on repairs to keep costs low.” The ABC Action News video is available at www.abc actionnews.com/news/local-news/i-teaminvestigates/insurance-companies-accusedof-short-cut-repairs-that-may-put-your-familyat-risk-on-the-road.
RICO Suit Plaintiff Opposes Consolidation with Other Actions As this issue of New Jersey Automotive went to press, Crawford’s Auto Center issued an Interested Party Response opposing the consolidation of its suit against several auto insurers (“Federal Lawsuit Alleges Insurers’ Conspiracy to Control Collision Repair Costs,” NJA, June 2014) with a number of current antitrust lawsuits against carriers. According to CollisionWeek Online (www.collisionweek.com), these suits include litigation currently filed in Mississippi, Florida, Indiana, Utah and Tennessee. While the Plaintiffs in the case did not seek to have Crawford’s consolidated with the other lawsuits, Allstate identified the lawsuit filed by Crawford’s as a potential tag along suit. Explaining their opposition to the motion, Crawford’s response states, “Like the majority of defendants who have filed responses to the proposed MDL [multidistrict litigation]...Crawford’s opposes consolidation of the RICO Class Action with the Antitrust Actions.” NJA
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FEATURE
The Crash Avoidance Crisis: Will Technology End the Repair Industry? By Joel Gausten
If you’re not careful, you might be put out of business by the same automobiles you’re working so hard to repair. From President Obama recently getting headlines by riding a crash avoidance simulator at the Turner-Fairbank Highway Research Center in McLean, VA to the ongoing buzz surrounding the self-driving Google car, it is clear that automotive technology is accelerating beyond anyone’s expectations. If you’ve spent any real time in this industry, you should have at least some familiarity with these features: Autonomous emergency braking systems (designed to help a driver avoid a low-speed crash or to reduce its severity) Lane departure systems (which track a vehicle’s position within a lane, usually with a camera mounted on or near the rearview mirror, and alerts the driver as the car begins to move out of the lane) Adaptive headlights Electronic stability control (ESC) to help prevent rollovers Forward collision warning systems with auto braking
These items represent a small fraction of a technological revolution that is not only here right now in many forms, but destined to grow long into the future. If you think you can fix cars the way you did even five years ago, it’s time to wise up. 28
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“This is happening now,” offers AASP/NJ member Eddie Day (Collision Restoration, Fairfield). “If people are blind enough to think that this isn’t going to affect the volume and type of repair coming into your place – and their net – they’re sadly mistaken.” It’s not just repairers of high-end cars who are in for a rude awakening, as such vehicles as the Mitsubishi Outlander (MSRP from $22,995) boast crash avoidance technology among their features. It’s not at all difficult to figure out why more and more vehicles are leaving new car dealerships with these systems installed. “It’s a great selling point,” Day offers. “What’s the coolest thing to do? Tell somebody that his or her child is going to be safe when he or she drives their car to college.” Of course, the proliferation of anti-accident technologies has led the industry’s more forward-thinking shops to seriously consider how they will handle a potential drop in repair work as less vehicles are involved in collisions. Day, who predicts that these high-tech vehicles will have a dramatic effect within the next five to seven years, is already considering adding mechanical and restoration work to his offerings in an effort to shield his business from a decrease in collision volume. “The solution is to reinvent ourselves,” he says. “Collision avoidance systems will be a game-changer in this industry. Active avoidance on the shops’ part is no way of dealing with this new technology.” Naturally, even the most accident-resistant vehicle can end up getting seriously damaged. After all, your car having all the
crash avoidance features in the world won’t prevent someone without that technology from skidding on the ice and slamming into your parked vehicle. Shop owners need to prepare for the proper training to know how to bring these vehicles back to preloss condition if they see them come through their doors. Just imagine what could happen if a technician fails to restore a component as important as a collision avoidance monitor. The exposure - not to mention the legal liabilities - could be endless. “I think collision repair facilities should rethink their liability coverage threshold, and possibly add an umbrella policy to safeguard themselves from endless litigation,” Day says. While many repairers are understandably concerned over how evolving technologies will impact their bottom lines down the road, California-based auto body instructor Toby Chess cautions shops that there are still troublesome things for them to grapple with right here, right now before even beginning to fret about the future. “The biggest problem I’m seeing is that the technology is proceeding three, four, five times faster than our training,” he says. “Get your house in order, guys. Start looking at whether you have the right equipment, the proper training for the equipment and the understanding of how this stuff works.” Over the last several years, Chess has actively reached out to repairers to educate them on such current technologies as the electronic stability control and steering angle sensor. If his travels have taught him anything, it’s that even some of the most extensive repair facilities in the country are behind the eight ball when it comes to properly identifying the advanced features in cars today, let alone in 2024. “I don’t care if they’re high-end or low-end, people aren’t asking questions. They’re just grabbing keys, filling out some forms and leaving without asking the pertinent questions,” he opines. “Do the customers have a lane departure system on their car? Do you have ‘hill descent’? That’s going to change how you write a sheet.” According to Chess, the steering angle sensor is perhaps the most critical component of any current vehicle on the road. “You know what works off that steering angle sensor?” he asks. “Crash avoidance, lane departure, adaptive cruise control, adaptive headlamps, ‘hill ascent’ and ‘hill descent.’” Although crash avoidance, autonomous braking systems and similar breakthroughs are sure to reshape how the industry conducts itself in years to come, Chess isn’t convinced that they will spell the end for the repair trade. “I don’t care how good the [crash avoidance] system is; people are still going to crash cars,” he insists. “I’ve been told that [crash avoidance systems] have certain speed parameters; they work at a certain level of speed. It might reduce some of the severity, but it’s not going to eliminate crashes altogether.” Chess is not alone in this thinking: An April 2012 report on Volvo’s crash avoidance features by the Highway Loss Data Institute made it clear that crash avoidance doesn’t necessarily mean crash prevention:
Forward Collision Warning with Auto Brake is Volvo’s term for a forward collision warning system that includes some autonomous emergency braking. With Auto Brake, the system will also provide visual and auditory warnings when speed and distance indicate risk of a crash with the leading traffic and, if the driver’s reaction does not eliminate that risk, the system will begin emergency braking to mitigate – but probably not prevent – the crash (emphasis added). Auto Brake becomes functional at speeds over 3 mph and deactivates when speed drops below 3 mph. Auto Brake operates whether or not Adaptive Cruise Control is activated. The auditory warnings can be deactivated by the driver. If deactivated, the warnings stay deactivated at the next ignition cycle (emphasis added). Vehicles with Forward Collision Warning with Auto Brake also have Adaptive Cruise Control, Distance Alert, Lane Departure Warning and Driver Alert.
Will crash avoidance-enhanced vehicles make a huge impact on the collision repair industry? Absolutely. Will they all hit the road at the same time? Probably not – at least according to the Highway Loss Data Institute. Last fall, Institute Vice President Matthew Moore appeared at a special meeting hosted by AASP’s Massachusetts affiliate to share his organization’s findings on how soon cars of this nature will dominate the US vehicle fleet. According to Institute research, the average lifespan of a vehicle is 11 years. If you couple that with the fact that pickup trucks and collectible cars last even longer on the road, it might end up taking quite a long time before something that’s added to all new cars turns up on the majority of vehicles on America’s highways. For example, a 2012 federal mandate required all new vehicles to be equipped with electronic stability control, but the Institute anticipates that it will take decades before the impact of this change is truly felt. “This feature’s been standard equipment on all new vehicles since 2012, and we’re looking at calendar year 2033 before we get to 95 percent of vehicles with this feature,” he said. Additionally, Moore addressed concerns over the impending arrival of self-driving cars with great skepticism. “Do I think people are going to be driving autonomous vehicles next year or the year after? No, not at all,” he offered. “How many of you folks drive a Ford? Who drives a Google? Therein lies the rub; Google doesn’t make cars. At this point, the technology packages that are required to produce a fully-autonomous vehicle are prohibitively expensive.” As far as important technology that is here, the Insurance Institute for Highway Safety (IIHS) offers an extensive online database of current vehicles with crash avoidance features – as well as numerous educational videos – at www.iihs.org/iihs/ratings/crash-avoidance-features. Although it doesn’t appear that the collision repair industry will completely disappear overnight as a result of changes in vehicle safety features, repairers who are unwilling to study these developments and determine how they might impact their business are in for a very difficult road ahead. If you don’t get on the bandwagon soon, the autonomous brakes you’re likely to feel are the ones placed on your shop. NJA New Jersey Automotive
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FOR SALE: 1967 Corvette Big Block Roadster Marlboro Maroon with black interior, matching auxiliary hardtop Tan soft top (originally black, but replaced four years ago)
• Original tank sticker/build set • Matching #s 427/400 HP Tri-Power • Original 4-speed transmission (M21) • 3.55 Posi-Rear • Transistorized ignition • Tinted glass • 4 wheel disc brakes
In the past two years: • The three 2-barrel carbs have been rebuilt. • A new date coded De Witt radiator was installed • A new fuel tank was installed with fuel tank sending unit & fuel pump and all the incidentals that go with a fuel tank.
The car was re-painted 23 years ago in lacquer, with a clear in the original correct color…and looks GREAT!!!
Asking Price: $99,000 Call Mike at (201) 452-0987
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Cherry Hill Audi 2261 Marlton Pike West Cherry Hill, NJ 08002 Wholesale: 856.665.5660 Fax: 856.665.4645 email: parts@cherryhillimports.com www.cherryhillaudi.com
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Atlantic Audi 6820 Tilton Road Egg Harbor Township, NJ 08234 Phone: 609-641-1788 Fax: 609-646-2331 Audi Brooklyn 211 63rd Street Brooklyn, NY 11220 Wholesale Direct: 1-866-770-5999 Phone: 718-492-6400 Fax: 718-492-8899 Email: rmerchant@audibrooklyn.com www.audibrooklyn.com Jack Daniels Audi 1601 Mc Bride Avenue Fairlawn, NJ 07410 201-398-1209 Fax: 201-475-8666 www.jackdanielsmotors.com
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TECHNICAL FEATURE
Structural Realignment Changes by Larry Montanez III, CDA and Jeff Lange, PE Through our visits to repair facilities and in our training classes, we have seen and heard some troubling things. Many shops are still using structural realignment (frame equipment) apparatus that may belong in the Smithsonian. Many in our industry (both insurers and shops) are misguided on how to actually affix/anchor the vehicle to the apparatus, and many think that sill “pinch weld” clamps are the norm and still acceptable. This article will hopefully clear up some of these misconceptions, misunderstandings and/or misinformation in our industry. For many years, we have known that most German vehicles cannot be anchored by the sill/pinch welds. This was due to the configuration of the rocker panel mating flanges, which include adhesives that can be damaged. In addition, rocker panel flanges are not designed to withstand the forces the way they are applied during mounting. We have seen over the past few years that high-end German engineering designs are being utilized in lower-priced vehicles. For example, the 2014 Dodge Dart and Jeep Grand Cherokee are now utilizing the Compact US Wide platform design, which does not support jacking or anchoring at the rocker panel mating flanges/sill panels (pinch welds). Although you will have to affix the vehicle to the realignment apparatus by the sill clamps, Dodge/Jeep states that you may anchor the vehicle by the sills. However, you must anchor in at least two other areas, such as the front or rear suspension mounting areas. Otherwise, you can cause damage to the sill areas during pulling procedures. Generally, this will mean you will need to anchor a fixture or jig to the engine cradle or rear suspension cradle mounting areas. This will require the removal of the mounting bolts and/or removal of the cradle. Some manufacturers state in their repair procedures that there is adhesive in the sill mating flanges, and anchoring in these areas will destroy the adhesive bond, weakening the area. Unless you are using a Celette Bench or a universal fixture system (which 34
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anchor and measure the vehicle in multiple areas), most late-model vehicles require additional anchoring. These types of systems affix a jig fixture/universal fixture to the machine and to the vehicle to support and hold other areas on it for measuring and realignment procedures. Many shops have an issue because their equipment is antiquated and not designed for the anchoring and repairing of late-model vehicles. Many times, we see vehicles with chains hooked into areas on the undercarriage or into uni-rails. This will cause damage to these areas because they were not designed to have force applied to them. Additionally, we must all understand that electronic measuring or fixture measuring is the only correct way to realign a collision-damaged vehicle. One of the main issues we see is damage assessors (estimators) unfamiliar with the proper equipment and procedure for affixing a vehicle to the realignment apparatus. In addition, we hear all too often,
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“We only get paid 2.0 hours to set up and measure.” We also hear technicians say, “I ain’t got time to set it up, ‘cause we didn’t get paid for it.” This way of thinking needs to change. We cannot arbitrarily skip repair procedures because we didn’t get paid for them. Those operations still need to be performed. Surprisingly, it can take upwards of two hours to set a vehicle up on a realignment apparatus and another two hours to clean and replace all of the anchoring clamps/fixtures. That would be four hours to set up the vehicle, and that may or may not include measuring. We know too many of us have been fooled into thinking that 2.0 hours for set-up and measure is the norm. Although it may have been at some point in the past, it is no longer enough time (nor is it published anywhere) that studies have established that using 2.0 hours is normal and customary. Then there are the many procedures and operations to affix the vehicle to the realignment
Procedure and Description: Car-O-Liner
Pre-measure vehicle: This will determine the extent of damage and if structural realignment is necessary (or remove and replace the component)
Measure suspension components: This will determine if the suspension sustained any damage.
Set Up on Realignment Apparatus: This would include assembling clamps, installing the vehicle, affixing the clamps, removal of the vehicle and clamps, cleaning and replacement of the clamps.
EVO Anchoring left front uni-rails (upper and lower): This operation is to ensure that the rails are held in the correct position during the replacement procedures. (Three are required at 0.5 Frame per) Check measurements during the repair process Repair Anchoring Locations
1.5 Frame
1.0 Frame
0.8 Refinish
Mask Underside for Primer and Paint
$15/0.6 Body
R&I All Four Wheels
0.4 Mech
Trial Fit Weld-On/Bolt-On for Replacement 7.5 Frame
3.0 Frame
0.4 Refinish
Acid Etch/Epoxy/Primer Anchoring Locations
$15.00
1.0 Frame
1.2 Refinish
Add for Clearcoat
Totals
1.0 Frame
1.5 Body
Refinish Anchoring Locations
Collision Access Time
Labor
6.6 Body
3.0 Body
2.4 Refinish
1.5 Body
0.4 Mech
apparatus that many of you perform without realizing they are not included. For example, let’s use a 2014 Toyota Camry with a frontal impact. The vehicle requires a left lower front uni-rail (frame rail) and a left upper front uni-rail. Let’s look at the setup procedures for structural repairs on a Car-O-Liner system and on a Celette Bench. The procedures and labor times in the charts below and on page 34 are for example only and in no way a suggestion of procedures and labor times for each operation.
Procedure and Description: Celette
As you can see, there are a lot of procedures to structural realignment that your techs are performing without a charge. Remember that each vehicle repair is slightly different, but structural repair on collisiondamaged vehicles generally remains the same, based on the type of structural realignment equipment utilized. Please keep in mind that measuring and diagnosing is the most important step to any structural repair. Also understand that we did not include realignment time/pull time, as we could not show the damage in an article.
Pre-measure vehicle: This will determine the extent of damage and if structural realignment is necessary (or remove and replace the component)
Measure suspension components: This will determine if the suspension sustained any damage.
Set Up on Realignment Apparatus: This would include affixing the fixture Towers and MZ Plus, installing the vehicle, affixing the fixtures to the vehicle, removal of the vehicle and fixtures, cleaning and replacement of the fixtures and hardware. Eight Locations (four front and four rear)
Additional fixtures left front uni-rails (upper and lower): This operation is to ensure that the rails are held in the correct position during the replacement procedures. (Two are required at 0.5 Frame per) Check measurements during the repair process Repair Anchoring Locations
1.0 Frame
1.0 Frame
0.8 Refinish
Mask Underside for Primer and Paint
$15/0.6 Body
R&I All Four Wheels
0.4 Mech
Trial Fit Weld-On/Bolt-On for Replacement 8.0 Frame
4.0 Frame
0.4 Refinish
Acid Etch/Epoxy/Primer Anchoring Locations
$15.00
1.0 Frame
1.2 Refinish
Add for Clearcoat
Totals
1.0 Frame
1.5 Body
Refinish Anchoring Locations
Collision Access Time
Labor
6.6 Body
3.0 Body
2.4 Refinish
1.5 Body
0.4 Mech
In some cases, no realignment would be required, due to the fact that all the damage is being changed at a mating area that is undamaged. It is always important to keep upgrading your equipment and stay up to date on training. Vehicles are changing every single year, and newer types of substrates are just around the corner. Remember that our industry has grown from panel beaters and “heavy guys” to repair technicians and structural technicians to para-engineers. We hope this article has helped the industry to better understand the changes to structural realignment and why upgrading your equipment is so important. Feel free to contact us if you have any questions.
Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & resistance welding, measuring for estimating and advanced estimating skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision repairability and estimating issues. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860–3588 (cell), (718) 646– 2733 (fax) or via email at larrygoju@aol.com. The P&L website is www.PnLEstimology.com.
Jeff Lange, PE is a Forensic Engineer and president of Lange Technical Services, Ltd. of Deer Park, New York. Jeff is a Licensed New York State Professional Engineer, ASE Certified Master Technician and ASE Certified Master Collision Repair Technician who specializes in vehicle damage analysis for accident reconstruction, products liability and insurance claims investigation. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@ LangeTech.net. NJA New Jersey Automotive
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IN & AROUND AASP/NJ
MOTOR Information Systems Announces Mike Lovullo’s Retirment as Independent Distributor ike Lovullo has retired from his position of independent distributor effective December 31, 2013. As reported by MOTOR Information Systems in a company press release, Lovullo was responsible in this position for MOTOR’s product distribution in Northern New Jersey. Lovullo joined MOTOR in 1970 as a sub-distributor for his late father, Michael J. Lovullo. After less than a year, he ventured out on his own and became an independent distributor in Northern New Jersey and parts of New York City, selling MOTOR manuals. Lovullo attained an Associate’s degree from Manhattan Community College in bookkeeping, and worked for Prudential/Grace Steamship Lines in the manifest billing department before he began with MOTOR. “Mike was very generous with his time when it came to helping new distributors in the northeast, and he was very active in [AASP/NJ],” said Rick Beisel, Northeast regional manager. “He was committed to the business, worked hard at it, and received many awards to honor his dedication and hard work.” Lovullo is grateful for his 43-year career with MOTOR. “I had a wonderful mentor in my late dad, who had started with MOTOR in 1948,” he says. “He taught me all about the business, how to work the territory and how to keep records of customers’ buying habits. In the last few years, Rick Beisel offered
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successful advice on how to improve my sales, and I thank him for that.” Lovullo began selling Comp-Est software to the body shop industry in 1996 with the help of John Garger, a current MOTOR distributor. When MOTOR aligned themselves with Alldata, he sold the MOTOR Alldata software program until he retired. He also helped John Griffin, a fellow MOTOR distributor, in his decision to join the company; he comments, “I am happy to say that he has done exceptionally well.” What Mr. Lovullo misses most about being a distributor for MOTOR, though, is “seeing all the familiar faces I called on every six to eight months.” Lovullo is currently working one to two days each week, selling software to body shop industry. In his free time, he enjoys reading, cooking, playing the occasional game of golf and relaxing on the New Jersey shore. MOTOR congratulates Mike Lovullo on his retirement as an independent distributor and wishes him a healthy and prosperous future! About MOTOR MOTOR Information Systems is the leader in aftermarket information solutions for vehicles. Founded in 1963, MOTOR products include targeted, timely and accurate data to help our customers achieve their business goals. For more information, visit www.motor.com. 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
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• 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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S
COVER STORY
Lot Lizards & Broken Laws:
Shops Speak Out Against MOBILE
REPAIRERS By Joel Gausten
Here’s a serious question for the New Jersey auto body repair community: Do you think the owner of an $85,000 Jaguar would appreciate it if you brought his or her damaged car outside and used a propane torch to heat up a panel? Of course not, but this is just one example of the careless, unprofessional and potentially lethal work being performed by mobile repairers each and every day in New Jersey. Despite the fact that the New Jersey Auto Body License Law makes its clear that a body shop doing business in this state must be licensed, operate out of a building and meet minimum equipment standards, New Jersey Automotive has been inundated with reports from concerned readers that unlicensed repairers are setting up shop in a variety of locations (including some dealership parking lots) and doing everything from bumper repairs (typically for $150$250) to heavy hits. All it takes is one look at Craigslist to see ad after ad for this type of work, often offered for considerably less money than what a true brick-and-mortar shop would need to charge to do things by the book. (One mobile repair advertisement we received from a reader boasted “Up to 75% Off Body Shop Prices.”) Some of these mobile operators seem to follow set schedules, performing work in different parking lots on different days of the week, while others move around in trailers housing makeshift paint booths. Interestingly, we have also received reports from some shops that even the dealers that certified them to do their repairs are allowing mobile techs to paint panels and bumpers in their lots. Who is overseeing these operations to ensure safe and environmental compliance? How fair is it that one segment of the industry is required to go through considerable expense to be in compliance with the law, while another segment is seemingly allowed to operate with no oversight whatsoever? “It all boils down to the greed,” offers one AASP/NJ member. “This kind of work is done because the dealer either damaged the vehicle on the lot themselves and wants to get out of it as cheaply as possible, or the customer’s paying correctly to have it done, and these guys are getting it done at a fraction of the price and pocketing the rest.” “I have no problem with somebody making a living, but let’s do it the correct way,” adds another reader. “I had to get a body shop license, I had to get approvals, I had to borrow money from the bank and I had to build my business. I never had to fix a car in a parking lot with a mound of snow next to me using a propane heater to heat the panel. I didn’t realize it was that easy to open and run a body shop!” 42
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To help illustrate the problems that mobile repairers cause this industry, one AASP/NJ member puts himself in a customer’s shoes: “I just bought a pre-certified Mercedes from the dealership. They didn’t disclose any damage or repairs to me. I pull up to a parking spot and bump the curb, and my bumper explodes. I go to my preferred shop and they say, ‘Oh, man. This has been repaired before.’ It needed to be replaced last time, but somebody obviously repaired it. Would you as the consumer be happy with that? “Let’s say a car comes in for a small bumper repair, and we open it up to discover a can of worms,” he adds. “It’ll take $7,000 in repair work to correct it, and the customer says, ‘I bought the car that way.’” Another reader tells New Jersey Automotive that one of his customers recently brought in a 2012 Mercedes-Benz S550 – a $130,000 vehicle – after noticing problems with a bumper he had had repaired by a mobile shop for $500. After reviewing the considerable damage caused by this repair, the shop wrote $8,000 to have the bumper fixed properly. Edward Day, owner of Collision Restoration in Fairfield, knows the mobile shop issue all too well. He tells New Jersey Automotive that he is aware of “at least three or four” businesses currently utilizing the services of these unlicensed repairs on wheels and bumpers. “They’ll go into a dealership and just mask the car and spray while it’s 50 degrees and raining,” he says. “Enforcement is the problem. The State of New Jersey does not have the revenue to support the licensing enforcement, and the mobile operations find their way around the licensing.” In Day’s mind, the growth of mobile operations in New Jersey stems from one thing – a desire to make a profit off a cheap repair. “The bumper guy who is doing each job for $100 might be doing eight bumpers a day and making a ton of money,” he says. Additionally, the AASP/NJ member is concerned over the manufacturers’ apparent reluctance to address the very serious dilemma of dealers allowing questionable repairs to take place at the same location they’re actively promoting vehicle certification programs. “How do you make a certified shop go through all this work, where it’s going to cost him or her $200,000, and then you have ‘the bumper guy’ come in your dealership and spot bumpers in?” he asks. “We’re always held to this high level of accountability, and then you have somebody come in and throw the cheapest clear on the bottom of a bumper just because it camouflaged the nick. When is the dealership accountable when they certify that car?”
As Tom Elder (Compact Kars, Clarksburg) sees it, the obvious growth of mobile operators not only insults those shops that diligently work to maintain the professionalism of their craft, but blatantly breaks state regulations. “You would not believe the number of people who’ve had these jobs done; it’s rampant out there,” he says. “These operations are not done by the constraints of the law that was passed that says that anybody who works on these cars has to have a location, a building and a license. Many seem to think that the 6H Rule creates an exemption for anyone simply using a paint gun with a three-ounce cup or less. That is not the case; in reality, the 6H rule creates a threshold of three ounces of material being sprayed on any one job or operation. Therefore, anyone performing a job outside in the open air that requires more than three ounces of material would clearly be in violation of the Rule.” In Elder’s mind, there is simply no way these mobile repairers can conduct business the way they do and maintain the standards of the New Jersey Auto Body License Law. “On a nice day, they’ll be out there painting in the open,” he explains. “They might have a big golf umbrella set up just so the sun stays off. They’ll be spraying away, and there’s a cloud of clearcoat going across the parking lot...It’s a consumer issue, a health issue and a legal issue; the customer’s not getting what they are supposed to get.” Although the AASP/NJ community works diligently to operate professionally and within the full extent of the law, there are some people who are willing to sacrifice quality – and the reputation of the industry they supposedly represent – for a quick buck. Until a proper and permanent solution to this dilemma is found, the Garden State’s more reputable collision repair establishments will continue to battle enemies who are constantly – and illegally – on the move. “Whether the shops realize it or not, it is affecting their business,” offers one member. “I didn’t realize it was that easy to open and run a body shop out of the back of a pickup, a van, a trailer or portable tents. When those cars are in accidents and the customers come to a real shop, we have to pick up – and clean up – where these guys left off.” New Jersey Automotive wants to hear from readers with any knowledge of mobile repair businesses operating in their area. Please contact Editor Joel Gausten at (973) 600-9288 or tgpjoel@verizon.net. Anonymity will be granted upon request.
All it takes is one look at Craigslist to see ad after ad for this type of work, often offered for considerably less money than what a true brick-and-mortar shop would need to charge to do things by the book.
NJA
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THE LISTBEST MOVIE CAR In our newest monthly feature, we at New Jersey Automotive are getting the readers more involved than ever! Every month, we’ll be asking your feedback on one specific question. This month, we asked NJA readers to tell us about their favorite cinematic cars, with tremendous results! Want to get in on the action? Email aaspnjtgp@verizon.net with the subject head “The List” - we’ll make sure you’re included in future mailings! And when you see us pop up in your inbox, please share your opinion! We just might print it in a future issue. And now, on to The List…
1968 Mustang GT 390 Fastback & 1968 Dodge Charger R/T440 As seen in: Bullitt (1968) You told us: “Two of the coolest muscle cars ever, battling it out during arguably the best car chase scene ever! Definitely check out this Steve McQueen classic.” Image © www.speeddoctor.net
“Eleanor” - 1967 Ford Mustang As seen in: Gone in 60 Seconds (2000) You told us: “The whole climax of the movie is based around that car. It was Nicholas Cage’s arch-nemesis. No matter how many times that movie is on, I’ll watch it over and over again.” Image © http://mustangsdaily.com
DeLorean Time Machine (based on 1981 DeLorean DMC-12) As seen in: Back to the Future trilogy You told us: “The stainless steel body, two-seater capacity and sleek look are perfect for time travel, and look so, so cool. What an iconic exotic sports car.”Image © http://www.autoblog.com
1967 Chevrolet Camaro As seen in: Better Off Dead (1985) You told us: “The movie is an entertaining ’80s teen underdog flick - featuring a young John Cusack - but for me, that beautiful black Camaro makes the whole film. Ultimate muscle car.” Image © http://autocarscenter.blogspot.com/
1973 Chevrolet Blazer As seen in: Jaws (1975) You told us: As a Jaws addict, I will always have an affinity for Chief Brodie’s topless Chevy Blazer, complete with emergency lights on the roll bar. Don’t forget the ‘Beaches Closed’ signs!”Image © http://www.imcdb.org/
Dodge Challenger As seen in: Vanishing Point (1971) You told us: “Remember Kowalski’s epic roadtrip? That white Challenger gets honorable mention in my book as one of the greatest movie cars ever.” Image © www.mattstonecars.com
While many of you chimed in about your favorite movie cars, don’t forget about all the fantastic rides that also appeared on the small screen! One reader shares his fond childhood memories of cars in television.
“The Munstermobile was by far the coolest of the cool. How could you not want that funky roadster designed by the legendary George Barris? Barris also designed the Batmobile, the Monkeemobile and Grandpa’s Drag-u-la, which was featured in a Munsters episode. And those are only a few of the amazing California Barris designs that were featured on 1960s TV. So many to choose from!” Images © www.motortrend.com (Monkeemobile); www.strangekidsclub.com (Munsterkoach); www.speed-blur.com (Batmobile); www.munsterkoach.com (Drag-u-la)
1978 Chevrolet Impala As seen in: Law & Disorder (1974) You told us: “This is my favorite movie car because believe it or not, I actually starred alongside it! I played one of a gang of six guys who had to strip the car (which belonged to Ernest Borgnine’s character in the movie). In the scene, we quickly remove all four tires and wheels, take the front seat out, pop the trunk and remove all four doors which I had set up in my shop to come off with only two short bolts for the movie. We had a CO2 tank on the makeshift tow truck and air wrenches to do the job in a minute and 45 seconds. And that was after our third try!” Image © www.youtube.com
1973 Chevrolet Corvette Stingray As seen in: Corvette Summer (1978) You told us: “Awesome car and a fun, silly movie. Does a great job of capturing the vibe of the ’70s, too.” Image © http://andoniscars.blogspot.com
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NO BRAKES by Ron Ananian
Dodging the Bullet What is auto repair? First and foremost, for many of us, it’s a business - or at least it should be. Unfortunately, not many see it that way. Those who comprise the “not many” group are mainly vehicle owners or consumers. Consumer, nowthere is an interesting word! Sometimes the consumers end up being customers (more on this later); other times, they truly do CONSUME time and energy, bringing minimal return to the table. Blame is a big problem in auto repair, and I sometimes wonder how our society came to develop such a “you did this to me” mentality. The phrase “ever since you” can send shivers up and down a shop owner, technician or service writer’s spine, as it invokes a sign of things to come. Whether you realize it or not, as a shop owner, or anyone in auto repair for that matter, much of your day is spent dodging the bullet. A customer walked into the shop recently, dropped her keys
on the counter and proclaimed, “It died just around the corner
and won’t start. Can you go get it?” Some conversation ensued
removal of the valve cover, the cam sprocket was indeed frozen. Logical as it was, it didn’t appear to be “enough.”
When Dad and I spoke on the phone, it was all about,
and it was discovered that four days prior, the oil pressure light
“Could the timing belt have broken and caused the problem?” I
stant, until finally it died. (“My dad checked and it had enough
knew where this was going.
blocks away, so I grabbed my tech Danny and jumped in the ser-
the shop. Note that, unlike a customer, a consumer has not yet
trying to arrange AAA towing and making the customer wait 90
between you is in both of you deciding if they (or you) want
had started flickering on and off. The light then became a con-
oil in it, so I thought the light was wrong!”) It was only two
vice truck to go see what we could do. While this was easier than
minutes for them to show up, she was quickly becoming a distraction to the day’s work schedule.
The little PT Cruiser looked sad and forlorn sitting half in
the middle of the street, broken and busted as it was. A turn of the key revealed a very fast cranking engine that “sounded” wrong.
Yes, the timing belt had snapped. We pushed it the two blocks to
could hear the bullet loading into the chamber…I instinctively
The next day, a husband and wife consumer duo walked into
spent any money with you. Part of the ensuing interaction
to…or should (spend money). Anyway, this couple’s VW SUV had a service engine light on; they were “devoted” dealer cus-
tomers until this particular day, when they had been told that to fix the service engine light problem, the vehicle needed a
camshaft and turbocharger. I thought this was a strange combo
and so, feeling sorry for them, we performed a no-charge code
the shop with the help of the truck. Inside the office, I listened to
scan in the parking lot. This opened the floodgates.
done a timing belt some four years (but only 12,000 miles) ago.
#4; after driving the car and experiencing how good it ran
the story again and after reviewing her file, discovered we had Most likely, the engine suffered a loss of oil pressure and the
camshaft had locked up, which broke the belt. Sure enough, on
The trouble code causing the light was a misfire on cylinder
(smooth and very responsive; turbocharger clearly winding up
and working), I wondered if the information from the dealer was
’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. 54
New Jersey Automotive
August 2014
misunderstood…or if thievery was afoot.
mechanical problem or electrical? What
much work despite all the maintenance it
And what if it did indeed need a camshaft
it? And what was coming next? Replace-
During the course of additional conversa-
kind of shape was the engine really in?
the Kool-Aid and serviced the car like reli-
and turbocharger? After all this wonderful
tion, I learned that they had indeed drank
gion, following and paying for EVERY
service the dealer and manufacturer pre-
scribed. They “believed that their dealer”
(until now, their repair shop) was leading
them down the right path to nirvana; now
I explained all these scenarios and had
wards vehicle replacement, or to some
THE BOTTOM LINE IS…
tent oil pressure light going on and off for
ity and exposure for a problem on the part
car, but we don’t want to spend a lot of
timing belt; several times, I had to direct
the experience. “We want you to repair the
money.”
“Gee, what a surprise,” I thought.
breaking.)
that’s fine. I get it: Fix what you can,
depends on your perspective. I see it like
items on to the next guy. But here’s my
was only ignition, there was still an oil
two cents:
If they wanted to spend money to re-
tomorrow. So I say you better cover yourself…or learn how to duck.
NJA
light and seized camshaft. (The belt
ment with it. Some shops may have
charge for it and pass the “unrepairable”
and what I knew yesterday may not apply
the conversation towards the oil pressure
broke because something else failed; the
jumped at the chance to take on this job;
decisions. The car is always changing,
wards the four-year-old but low-mileage
After all, if they wanted to spend money,
they would have just let the dealer experi-
Mike Lovullo Distributor for
engine did not fail as a result of the belt The VW story is multi-faceted and
this. If I had diagnosed the misfire and it
pressure problem….which maybe was mechanical. The dealer had allegedly re-
and
pair the vehicle, they would have spent it
placed the sender and a control unit to no
about trust, not money, and about accuracy
wards the already-mentioned camshaft and
these repairs going to solve their problem?
now: “Why are you charging me to diag-
where they were. Their concern was really
and TBAR (theft by auto repair). Were
Micro-Mix Paint
avail. And what if the diagnosis turned to-
turbocharger? I can hear the conversation
It was a game of Russian roulette, and I
nose something we already know?” I tried
correctly and the misfire fault was only a
pair,” but it carries as much weight as the
chose not to play. If I did indeed diagnose
to mention the phrase “confirmation to re-
phrase “second opinion” in some cases. In
pressure light was still an issue. Was it a
it was noted that, if the car still needed this
my conversation with them at the counter,
and
Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.
bad ignition coil (which I suspect was
what the SUV really needed), the oil
complicated to repair. All I could do was allow them to make their own informed
of the repair shop was huge. The PT
Cruiser conversation did indeed turn to-
did not understand how a car could be so issues, and share enough knowledge to
In both cases, the potential for liabil-
repair it, though they had charged them for
In both cases, the consumers clearly
protect myself from potential future
and money would be spent).
And one last item they failed to mention
some time now. The dealer was not able to
bulletproof vest).
some major work.
very detailed diagnosis (for which time
until the end: the vehicle had an intermit-
it would take money and time (or a
part of a VW, by the way) still needed
be. They wanted direction and guidance -
swers - all while standing at the counter.
be considered. But for me to get involved,
engine (which is supposed to be the best
the conversation ultimately guide them to-
along with an estimate, diagnosis and an-
ment with a better car line was a path to
maintenance and care at the dealer, the
facing a $6,300 repair bill, perhaps the
Kool-Aid was not as sweet as it used to
had received, then how good of a car was
CALL Office: (973) 696-3176 or Cell: (201) 452-0987
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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 2014 Board of Directors Mike Ronayne Tilghmans Auto Parts 609-723-7469 tilghmans@snip.net Marvin Leadbeater Bamber Lake Auto 609-639-6500 marvinjsp@comcast.net Mike Yeager EL & M Auto 609-561-2266 elandmauto@aol.com Rodney Krawczyk Ace Auto Wreckers 732-254-9816 aceautonj@comcast.net
ARANJ Legal Update
NMVTIS Reporting Enforcement and Compliance – Recently, the United States Department of Justice (USDOJ) has stepped up enforcement of reporting requirements under the Anti-Car Theft Act (the Act). Passed in 1992, the Act required the USDOJ to create the National Motor Vehicle Title Information System (NMVTIS), an electronic database of vehicle history and title information. The regulations implementing the Act were adopted by the USDOJ in 2009. Under the regulations, junk and salvage yard operators - including auto recyclers - are obligated to file monthly reports of all junk or salvage vehicles obtained by the facility during the prior month. The reports are filed through third-party data consolidation organizations such as Auto Data Direct, Inc. or Audatex. New Jersey took similar measures to prevent fraud and the use of stolen vehicles. However, New Jersey’s laws differ significantly from the Act. Under New Jersey law, the owner of a salvage vehicle must obtain a salvage certificate of title. When a business (like an auto recycler) purchases a salvage vehicle, it must apply to the Motor Vehicle Commission to obtain a new salvage certificate of title within 10 days of the purchase. To obtain a new salvage certificate of title after purchasing a salvage vehicle, the purchaser must remit the properly executed and assigned existing salvage certificate of title as well as payment. If the vehicle was obtained from out of state, then an additional form containing vehicle, owner and lienholder information must be submitted. Some businesses believe that compliance with state laws enacted to address issues with fraud and the use of stolen vehicles will discharge their requirement to submit monthly reports to the NMVTIS. As a result, these businesses do not file monthly reports with them. These businesses are prime targets for USDOJ enforcement officials. Under the Act, the submission of information concerning salvage vehicles in inventory to the state will only discharge the NMVTIS reporting requirement if all information required under the Act is submitted to the state and the state submits the information to the NMVTIS. In order to comply with New Jersey law, a salvage or junkyard, including an auto recycler, is not required to submit all of the information required by the Act. As stated above, an auto recycler purchasing a New Jersey-titled vehicle needs only to submit the properly executed and assigned salvage certificate of title with the required fee. The information required by the Act, including the date the vehicle was obtained and what was done with it (e.g., crushed, sold, etc.), does not have to be reported to the Motor Vehicle Commission. Furthermore, the Motor Vehicle Commission does not submit the information obtained from an auto recycler to NMVTIS. Therefore, New Jersey auto recyclers cannot avoid reporting to NMVTIS by satisfying the New Jersey law. Instead, auto recyclers must comply with both the New Jersey titling requirements and the monthly reporting requirements under the Act. For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600. Tyler & Carmeli, P.C. GEORGE J. TYLER MATTHEW J. KRANTZ 1 AAA Drive, Suite 204, Robbinsville, New Jersey 08691 (609) 631-0600 – Tel (609) 631-0651 – Fax gtyler@tcglaw.com mkrantz@tcglaw.com
Wharton Insurance Briefs An ARA Member
We have had a number of questions and concerns regarding Workers’ Compensation audits. Audits are normally performed between 30 and 60 days after the expiration of your policy. You may be mailed a form to complete, contacted by phone for the information or have a visit scheduled by an auditor. Whether you complete the audit by filling out the forms, over the phone or in person, make sure you are prepared. You should prepare a breakdown of payroll by employee and by classification. You will also need supporting documentation, such as WR-30s or 941s. It is important to make the proper classification of each employee. There are several classifications: Auto Dismantler (includes drivers), Iron or Steel Scrap dealer, part sales/counterperson, clerical and sales. It is extremely important to classify each employee accurately. If you are directing the auditor to your accountant, you should review the information with your accountant before it is released to the auditor.
If you have used subcontractors, you will be requested to supply: • The total cost of the subcontractors work. • A certificate of insurance, evidencing the subcontractors General Liability, Auto and Workers’ Comp. Insurance.
Without the above, the subcontractor cost will be charged as employee payroll. Always request a copy of the auditor’s worksheets for reference. If you should have any questions regarding your audit, please contact me. Mario DeFilippis, AAI, Vice President, Wharton Insurance mdefilippis@whartoninsurance.com (800) 221-0003 ext.1320
Mike Caputo Lacey Used Auto Parts, Inc. 609-693-0898 laceyautomike@aol.com
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August 2014
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Save the Dates for NORTHEAST速 2015! MARCH 20, 21, 22
Top-notch educational opportunities Over 150 industry-leading exhibitors Fun for the whole family, and more!
Visit
WWW.AASPNJNORTHEAST.COM for details Proudly Presented by
New Jersey Automotive
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VENDOR SPOTLIGHT
continued from page 16
representatives from OEM vehicle manufacturers. The group is actively involved in two websites –www.crashrepair info.com (an extensive OE-focused consumer information site) and www.oem1stop.com (which offers OEM repair information on a variety of makes and models). Additionally, Honda’s ProFirst program (profirst.honda.com) recognizes shops for their commitment to a higher level of customer satisfaction by embracing (among other things) regular I-CAR training. On the consumer side, Honda currently offers two world-class information websites for Honda and Acura owners: www.collision.honda.com and www.airbagaware.honda.com. Closer to home, Honda reached out to the New Jersey collision industry in new and exciting ways in 2014 by exhibiting at AASP/NJ’s NORTHEAST® Automotive Services Show for the very first time. Ledoux was beyond pleased by what the
event offered Honda and the community they serve. “We always heard great things about [NORTHEAST], and that there was a lot of participation, energy and people,” he says. “We decided to jump in on it, and it was a very good experience.” Looking ahead, Honda will surely continue to provide the finest OEM products, repair information and technical insights available to a rapidly-changing industry. “In the past, you could use a calendar to mark changes in the industry,” offers Ledoux. “Today, we need a good pair of running shoes! It’s moving at exponential speed, so we continue to monitor the industry, see where things are going and evaluate what we can do to best service the industry and our Honda and Acura customers.” NJA
Acme Nissan................................................45 Amato Agency..............................................41
Audi Group ................................................32-33 Axalta Coating Systems ..............................IBC
BMW Group ................................................20-21 Bridgewater Acura........................................17 Brogan GM Parts Center ............................38
Cadillac of Mahwah......................................31 CCC Comp-Est ............................................55 CCC One ....................................................5
Classic Audi ................................................14
Crane Chevrolet ..........................................60 Crestmont Toyota ........................................60 Crestmont VW..............................................53 Empire Auto Parts ........................................31
Flemington Group ........................................46 Fred Beans Parts ........................................5
FMS Managers LLC ....................................39
Future Cure..................................................10
Glen Toyota..................................................OBC Hackettstown Honda....................................57 Hyundai Group ............................................40 JMK BMW ....................................................19 JMK Saab/JMK Fiat ....................................56
Klean Frame ................................................62 LKQ..............................................................57
Maxon Mazda ..............................................51 Maxon Hyundai ............................................27 Mazda Group ..............................................30 Mercedes Benz of Freehold ........................59 Mini Group ..................................................47
MINI of Manhattan ......................................17
Mitsubishi Group ..........................................26 Mopar Group................................................11
What is Klean Frame?
NU-CAR ......................................................23
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.
P&L Consultants ..........................................36 Paul Miller Audi ............................................37
Porsche Group ............................................44 PPG ............................................................3
PPGMS ........................................................18
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) 62
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Prestige Motors............................................8
Princeton BMW ............................................15
Princeton Mini ..............................................59 RW Mallon/Collision Equipment Company ..13 Saw Mill Auto Wreckers ..............................53
Subaru Group ..............................................52
Town Audi ....................................................56 Toyota Group ..............................................50
(973) 714-7550 955 Paulison Ave. Clifton, NJ 07011
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www.kleanframe.com
Toyota of Hackensack..................................IFC Valspar ........................................................4
Valtek ..........................................................49 VIP Honda....................................................17 VW Group ....................................................6
VW of Freehold ............................................9
Wheel Collision Center ................................49