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
September 2014 $5.95
TESTED? The Questionable Origin & Possible Dangers of Used Suspension Parts www.grecopublishing.com
CIC, SCRS ANNOUNCE BIG NEWS IN DETROIT pg. 22
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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2013 - 2015 OFFICERS
PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com
COLLISION CHAIRMAN Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net
Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com
Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net
Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com
Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com
Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com
Brian Vesley, Valtek, Inc. 973-278-1444 / bdvesley@valtekinc.com
BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com
Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com
VOLUME 44, NUMBER 9
September 2014
CONTENTS 8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE
12 EXECUTIVE DIRECTOR’S MESSAGE 62 NJA ADVERTISERS INDEX
VENDOR SPOTLIGHT 16
The Amato Agency: Unbeatable Value, Unsurpassed Support
NEWS 22 24
CIC, SCRS Announce Big News in Detroit NJA’s Montanez Among Presenters at SEMA 2014
TECHNICAL FEATURE 29
What the Future Holds For You by Larry Montanez III, CDA and Jeff Lange, PE
COVER STORY by Joel Gausten 34
Tested? The Questionable Origin & Possible Dangers of Used Suspension Parts
FEATURE 40
Redefining Luxury: Lexus Gains a New Audience with the NX by Joel Gausten
NO BRAKES by Ron Ananian 44
In a Relationship
180BIz FEATURE by Rick White 48
Groove or Rut?
THE LIST 51 PUBLISHER Thomas Greco (thomas@grecopublishing.com) MANAGING EDITOR/DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com)
What’s Your Dream Car?
AUTOMOTIVE RECYCLERS OF NEW JERSEY 58 Wharton Insurance Briefs
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
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 : thinkstock.com/olm26250; Page 14: thinkstockphoto.com/Zoran Zeremski Page 22: thinkstockphoto.com/serazetdinov; Page 29: thinkstockphoto.com/video-doctor; Page 44: thinkstockphoto.com/klarnetci
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
Driver’s Test of Patience A couple months ago, my wife turned to me after reading my latest column and said, “I finally figured out what all these articles are about.” I asked her what she meant. “They’re about getting old,” she said. “You hate getting old.” She may be right. Case in point: Last week I took my son - my youngest child, my little buddy - to get his driver’s license! Are you kidding me?! Wasn’t it last week when he could barely wear those Heely roller blades??? Didn’t he just figure out how to ride a bike??? Now he’s driving a car??? Legally?!
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“Old?” Nah. More like frigging ancient. But at least I got a story out of it, courtesy of our state’s wonderful MVC. Actually, I can’t fully blame them. My insurance company and my previously mentioned Mrs. are also partial contributors. Being born in August, my son is one of the last in his class to get his license. So it’s been a while since he had his behindthe-wheel training. We got him back into the driver’s seat on a steady basis in June, and it took him some time to get comfortable behind the steering wheel. But he was very cautious and careful - a good sign for
September 2014
by Thomas Greco, Publisher
an almost-17-year-old. Problem was, of the four cars in our family, the only car with a handbrake is his sister’s, and since she is away at college and working, access to her car was limited. The MVC insists that the car used in the driver’s test has a handbrake. I have no clue why, considering the great majority of cars today don’t have them. (What do families without handbrake vehicles do?) A few days prior to the test, we spent an entire weekend practicing his weakest skill, which was parallel parking. By the time the test came around, he was comfortable and confident that he had it down
despite not being very familiar with his sister’s car. Before we left for the MVC, my wife made sure we had all the necessary documents to satisfy that cockamamie points system they require: Permit, registration, insurance card, social security card, voter ID (oops, subconscious slip) and, of course, proof that I was over 21 (duh). We got there early and were instructed to get in line and wait for an instructor to come over and begin the test. Surprisingly, it wasn’t a long wait. As we saw two women approach the car, we got ready. The first woman came over to me and said, “I’m a trainee, so please bear with me as I go through this.” Uh oh. My son was nervous as it was. Now he was going to have someone with him who was just as nervous, with a supervisor in the back seat? Talk about pressure! But of course, it never got that far. As the supervisor looked our documents, she noticed that the VIN numbers on the registration and the insurance card didn’t match. My first chauvinistic thought was,
“I’m gonna kill my wife” (of course, whenever something goes wrong, that’s always my first thought). But then I looked at both documents. They were for the same car. I said as much to the supervisor, and explained that it must have been a mistake by the insurance company. “Sorry, you have to call them and get the right one.” “Well, can they email it to me so I can come back?” “Nope. We need the original. Oh, and we also need the original birth certificate; not a copy.” Aha! I knew it was my wife’s fault somehow! My son looked heartbroken. Like I said, he was one of the last of his class to get his license, and he was tired of seeing all his friends drive while he was stuck as a passenger. As we left the MVC, I told him to pull over. I called my office to see if anyone had a car with a handbrake. No luck. I called my wife and after thanking her for not giving us the correct birth certificate, asked her if she knew anyone with a handbrake. She mentioned that her aunts had one but the car was a 1995 Toyota. At that point, I didn’t care. My
continued on page 53
Greco Publishing Names Alicia Figurelli Director of Sales
Thomas Greco Publishing Inc., publishers of New Jersey Automotive, New England Automotive Report, Hammer & Dolly, AASP-MN News and Wisconsin Automotive News, has named Alicia Figurelli Director of Sales. Figurelli, the current vice president of the comAlicia Figurelli pany, will be adding all sales responsibilities for the company’s publications as well as booth sales for AASP/NJ’s NORTHEAST® Automotive Trade Show and the NORTHEAST Conference Journal. A graduate of Seton Hall University, Figurelli joined Greco Publishing in 2003 as an editor before gradually moving up to managing editor. She was named vice president in 2009. A constant for over a decade, Figurelli is a well-known figure familiar with every facet of the industry, bringing experience from editorial, administration and management to go along with her sales abilities. Alicia Figurelli can be contacted at (973) 6676922 / (973) 235-1963 (fax) or via email at Alicia@grecopublishing.com. To learn more about Greco Publishing, please visit www.greco publishing.com.
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PRESIDENT’S MESSAGE
Gearing Up for the Fall As I sat down to write this article, I decided to check out the trade press to see if there was anything new and exciting to
discuss with readers this month. And boy, is there: On August 19, Louisiana State Attorney General Buddy Caldwell filed a
by Jeff McDowell
lawsuit against State Farm Auto Insurance, alleging “a pattern of unsafe and deceptive practices” regarding auto repairs. All I can say is, WOW. Here in the collision repair industry, we’ve spent years for some of us veterans, decades - debating and fighting over the consequences of some insurers’ desire to cut costs and corners. Some of us have taken our battles to the courts. But now, an actual state is getting involved, and is addressing a number of issues that have affected most (if not all) of us at one time or another. OEM versus aftermarket parts, steering, cost-cutting…this suit has got it all. If you do nothing else today, make sure you check out this link and read more about the LA suit: http://www.nola.com/politics/index. ssf/2014/08/attorney_general_buddy_ca ldwel_8.html. Will LA be the only state to take this approach, or will others follow suit? We’ll see. Either way, things are about to get very interesting. Closer to home, we at AASP/NJ are also in the midst of some exciting activity. As I explained in last month’s message, we are getting very close to the deadline for NJ Auto Body License renewal. If you are reading this message and still have any questions about the process, stop what you’re doing and call AASP/NJ Executive Director Charles Bryant at (732) 922-8909 now. The deadline is at the end of this month; time is running out! Also coming up is AASP/NJ’s Annual Meeting in October. Stay tuned for event flyers and information on our always highly-anticipated event, which promises to provide an interesting night of education, association updates and much more. Until then, I hope all our readers enjoy these last few weeks of summer, as we begin to gear up for what is sure to be a busy and profitable fall and winter season. NJA
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EXECUTIVE DIRECTOR’S MESSAGE
Consider This a Shot Across the Bow!
In 2007, the NJ Department of Banking and Insurance addressed the paint and materials issue through bulletin 07-20, cautioning insurers that “traditional methods” used by insurers for paint and material allowances were inadequate, recessive and resulted in estimates with insufficient allowances to restore vehicles to pre-accident condition. The bulletin put insurers on notice that they must be able to justify their paint and material allowances. Insurers cannot justify an allowance for paint and materials based on dollar figure per paint hour, PERIOD! Almost immediately after the bulletin was issued, many insurers started to accept the use of paint material cost accounting programs and base their allowances for the paint material on the amount determined by said programs. Other companies attempted to play games by offering to “throw the shops a bone” by paying an additional dollar figure that they pulled out 12
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of the sky instead of accepting the use of a calculator for the job. (We are only aware of two insurers that refused to accept the use of a paint material cost accounting program right from the start.) Some of the shops began to accept the minor “extra” amounts being offered by some of these insurers; this lessened the effect of the bulletin. Simultaneously, many of the same insurers attempted to convince the NJDOBI that accepting the use of the paint material cost accounting programs would ultimately drive up the cost of insurance. Although this argument was ridiculous, it did influence the Department in certain cases to provide negative answers to shop owners who were complaining about an insurer failing to comply with the provisions of the bulletin. Naturally, this negative feedback caused certain shops to give up the fight and just accept whatever extra money the insurer was willing to throw in on the claim. However, for the most part, the shops that were paying attention to the Department’s position requiring insurers to justify their allowance continued to fight with insurers to accept the use of a valid paint material cost accounting program. As a result of the fight certain shops put up, many insurers accept the use of a valid paint material cost accounting program to determine what they will pay for the paint materials required to repair automobiles today - and have since the NJDOBI bulletin first came out in 2007. AASP/NJ has tracked which insurers accept the use of the paint material cost ac-
September 2014
by Charles Bryant
counting programs over the years and which insurers have rejected it. What’s interesting is that the same insurer that accepts the use of a paint material cost accounting program in one area of the state will often reject the use of the paint material cost accounting program in another area of the state - and sometimes, the areas are only a few miles apart. Again, if you read the text of the bulletin, it makes it clear that an insurer must be able to justify their allowance for paint material cost. Further, it is impossible to justify a “dollar figure per paint hour” formula, due to variables such as the extreme difference in price for colors, e.g. white opposed to red. CAUTION In recent weeks, AASP/NJ has been receiving hotline calls informing us that certain insurers that have accepted the use of a paint material cost accounting program on a regular basis for years are now attempting to stop use of the programs. Instead, they are attempting to go back to providing allowances based on the “dollar figure per paint hour” formula. This started happening with one insurer and quickly changed to two or three attempting to do the same thing. The argument being made by the insurers is that they have raised their rates, since they pay per paint hour for paint and materials by a dollar or two; now, they will no longer accept the use of a calculator or negotiate when presented with what the shop is charging (per their calculator). In other words, certain insurers are now attempting to turn
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EXECUTIVE DIRECTOR’S MESSAGE
back the hands of time. Following one particular insurer’s refusal to accept the paint and materials calculator, the shop in question filed a complaint with the NJDOBI. However, the Department responded by stating that the
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investigation was complete, and unfortunately there was nothing the Department could do. It appeared that the company’s actions were in compliance with the policy contract, the applicable statutes and regulations. Further, the insurer in question had
September 2014
apparently advised the Department that their estimating software calculates manufacture replacement, labor and refinish times. Since this is recognized within the industry, the letter explained, there was very little the Department could do, unless substantial evidence was provided to support the shop’s viewpoint. This response infuriated me, since I’m the one who suggested the shop make the complaint in hopes of receiving some assistance in the resolution of this matter. What got me was the Department’s claim that their investigation was complete. Instead, it appears blatantly obvious that the only investigation that took place was to ask the insurer if they did anything wrong or not. Obviously, the insurer’s answer to the complaint led the Department to believe that what they did was a valid method of justifying their allowance. In my opinion, the opposite is true. I personally contacted the investigator that responded to this complaint directly to voice my opinion. In hindsight, the conversation did not get off on the right foot. Since I was met with immediate resistance, I guess I may have raised my voice to avoid being talked over. The investigator informed me if I didn’t change my attitude and lower my voice he was going to terminate the conversation. (I can’t say that I blame him, given my initial tone.) I apologized for my tone and explained my position, how certain insurers that had been accepting a paint material cost accounting program for years were now looking to go backwards and start using the old method of calculating allowances for paint materials. I reminded the investigator what the 2007 bulletin was based on. I must say that the investigator was a gentleman, and listened carefully as I explained the problem in detail as well as my frustration. Eventually, the investigator told me that they very rarely receive a complaint having to do with a dispute on the cost of continued on page 55
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VENDOR SPOTLIGHT One of the many ways the Amato Agency supports AASP/NJ and its membership is through longtime participation in the NORTHEAST Automotive Services Show.
The Amato Agency UNBEATABLE VALUE, UNSURPASSED SUPPORT A true industry institution, the Amato Agency serves numerous crucial roles in the success of collision repair shops in the Garden State. They are (among other things) dues-paying members of AASP/NJ, advertisers in this publication, promoters of association events and benefit providers for fellow members. Currently serving at least 30 percent of the AASP/NJ membership, the Amato Agency has established a solid relationship with the auto body field that is second to none. An independent insurance agency located in Neptune, the Amato Agency specializes in securing affordable insurance for the independent business owner. The company’s special “safety group” program provides annual dividend checks to participating shops if the group’s total loss ratio is better than anticipated by the insurance companies at the time of premium development. The less claims the group files, the more money the group will make. And when the end of the year rolls around, that money goes right back into the pockets of the body shops. From 2007 to 2011, the program generated $536,853 in funds returned to AASP/NJ members. Although Hurricanes Irene and Sandy prevented the paying out of dividends in recent years, the company with whom the Amato Agency wrote the program was the only insurer in the industry to cover the full loss of income for shops that experienced electrical failure from wind. This equalled millions of dollars in protection to participating shops when they needed it most. Recently, the Amato Agency added a new workers’ compensation program that offers exclusive upfront discounts and dividends only for AASP/NJ members. Additionally, the Amato Agency offers personalized automobile and homeowners insurance programs for employees of association members at group discounts. With the Amato Agency’s services and reputation at an alltime high, it comes as little surprise that the company has added two new offices in the past year. The agency’s new location on 16
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Oak Tree Road in South Plainfield was established as a result of the addition of the Indian Business Association, the Asian American Retailers Association (AARA), the Indo American Pharmaceuticals Society and the North American Retail Hardware Association (NRHA) to their client base. The new Toms River location offers insurance through Farmers, the third-largest writer of personal lines in the United States. Combined with the Neptune location, the Amato Agency has easily become one of the most extensive service providers of their kind in the entire state. At a time when shops throughout New Jersey are working to fulfill their annual Auto Body License renewals, the Amato Agency is working hard to ensure that association members have the insurance coverage they need to stay in compliance. “We work hand in hand with AASP/NJ to make sure that everybody’s certificates are issued on time, are accurate and are sent in properly so that the license renewals can go through,” offers Amato Agency President Joe Amato Sr. “We’re not just insurance agents for the association, we’re partners with the association.” The Amato Agency’s longstanding relationship with AASP/NJ extends to regular support of New Jersey Automotive and ongoing participation in the NORTHEAST® Automotive Services Show and the annual Golf Outing. Not only does the company lend a helping hand through sponsorship and advertiser support, but they literally put money in shops’ accounts through their dividend programs and cost-saving opportunities. With a celebrated history that is sure to grow, the Amato Agency looks forward to working with the AASP/NJ community for years to come. For those readers who might be new to what
continued on page 57
AASP/NJ MEMBERSHIP PAYS! Are you getting the most value from your membership! ATTENTION AASP-NJ MEMBERS
Exclusive Programs for AASP/NJ MEMBERS ONLY • Garage Insurance Dividend Plans • Discounted Workers Compensation • Group Health & Disability • Employer — Free Programs
(For Employees — Automobile, Homeowners, Boats, Etc.)
• Retirement & Savings Plans Call The Amato Agency for more details:
800-763-6574
or visit www.amatoagency.com 4900 Rt. 33 - Ste. 103, Neptune, NJ 07753 Phone: 732-530-6740 Fax: 732-530-6727
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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
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NEWS
CIC, SCRS Announce
Big News in Detroit In late July, the Society of Collision Repair Specialists (SCRS) and the Collision Industry Conference (CIC) held events in Detroit that offered insight into the future direction of both entities. Avery Out, Stabler in at CIC With 2014 coming to a close, CIC will soon welcome a new chairperson to lead the group into the future. At the July 29 CIC in Detroit, it was announced that the past chairs selected longtime California collision repair professional and CIC participant Randy Stabler (Pride Collision Centers) to lead the group for a two-year term beginning in 2015. He will replace
Randy Stabler (Pride Collision Centers, Greater Los Angeles, CA) will be taking the reins as CIC Chairman following the event’s November installment. 22
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George Avery of State Farm, who will end his term after the November 6 CIC meeting in Las Vegas. Stabler is the co-founder of Pride Collision Centers, a multimilliondollar collision repair company launched in 1983 that currently boasts six locations in Southern California. He is expected to make his first public address before the CIC body at the November meeting. SCRS Offers Media Outreach, Rental Research Update In an ongoing effort to better inform and protect the motoring public, various industry groups have developed media campaigns in recent years to draw attention to critical issues. This is especially true of the Society of Collision Repair Specialists (SCRS), which used its Open Meeting on July 28 to outline many of its recent activities in the public arena. SCRS continues to be used as a resource by a number of national media outlets looking to learn more about the issues surrounding the collision repair industry and its work with insurers. In response to these ongoing requests, the association developed a media statement that SCRS Executive Director Aaron Schulenburg says “accurately and comprehensively characterized the mindset of many of the repairers out there today who are really trying to do quality repair work [under] the pressures that exist in our marketplace.” The statement reads as follows: The government’s pressure on automakers
September 2014
SCRS Executive Director Aaron Schulenburg detailed his group's recent actions on behalf of the industry and motoring public. to reduce emissions is going to continue to impact vehicle design, and increase the prevalence of an expansive list of lighterweight materials and advanced technology. This continual evolution in automotive architecture intends to produce safer, lighter, more efficient vehicles, and inherently requires increasing amounts of skill to repair. It is absolutely the industry’s obligation to react, equip our businesses and train our technicians to meet the demands of our changing fleet. The good news is that [through] efforts from industry organizations such as the Society of Collision Repair Specialists (SCRS), I-CAR and others, the collision repair industry has increasingly more robust access to information from the automakers on the proper repair methods that should be used, the necessary equipment and the hazards of using certain parts or unaccepted procedures. As our industry invests in this highly sophisticated
equipment and intensive, specialized training that are both often make and model specific, the costs of such investments have to be recovered. The biggest challenge facing repairers isn’t capability, but rather the downward pressure placed on repair businesses to do more, and invest more, perform faster and to do so for a lesser return. Interestingly, in the United Kingdom (UK), the UK Competition Commission issued a summary of findings after analyzing the interaction between the insurance and collision repair market. They came to a conclusion that many repairers in the United States have known for a long time; the market is not working well. In fact, they specified that the market is not working well because “competition between repairers to obtain business from insurers is focused on low cost rather than high quality of repair; that is, repairers are insufficiently rewarded for offering a high quality of repair.” The businesses that perform collision repairs are highly skilled professionals, who often have differentiating characteristics relative to particular levels of expertise, certification, training, equipment, capacity and quality of workmanship. In a wellfunctioning market, those with lesser skill, lesser capability and lesser quality would be incentivized to improve because those who perform better would receive appropriately higher degrees of compensation based on skill and competition. Consumers would seemingly seek out those with the best skill set available to them, further ensuring their vehicle is safely repaired, and providing those leading repairers with greater market share. Unfortunately, insurers often refuse to
recognize these gradations in terms of compensation, and in a desire to commoditize repairs, it is common that their indemnification practices reflect prices that are substantiated by the lowest common denominators in the market.
vehicle is different, and many require specialized equipment just to repair that make or model. A knowledgeable repair facility should be able to explain the differences and explain the types of equipment they have to address your repair needs.
There are both “good” and “bad” market representatives in the collision repair business, just as there are in every trade and profession. Ultimately, if the consumer market demands from their insurance carrier to cease the practice of indemnifying losses based on low cost principles, rather than high quality expectations, the market shift would provide necessary incentive for more of the industry to focus on quality adherence and consumer experience. For those looking to save the largest percentage in the shortest period of time when shopping for auto insurance, it is important to remember that not every policy has the same coverage, and not every repair is created equally.
• While involvement in associations does not always assure quality, it does suggest that the business is forward thinking and engaged in their trade. Look for distinctions like this that differentiate the shop of your choice from others.
The association also provided the following suggestions for media to offer to consumers on qualities they can look for in a collision repair facility: • Willingness from staff to explain the process, the details and educate you on how your vehicle will be repaired and how the process will be handled. • Certifications from automakers or organizations like the National Institute for Automotive Service Excellence (ASE) who test and certify for competency. • Current proof of training from automakers or industry training organizations such as I-CAR.
In other news, SCRS has focused considerable attention on the issues surrounding the average length of car rentals during the repair process, and how utilizing unrealistic expectations or faulty multipliers to determine this amount of time impacts consumer experience. Since the previous Open Meeting in April, SCRS has worked with the Information Providers as well as a variety of vendors including Enterprise Rent-A-Car and Hertz in looking at the data available regarding the average length of rental and comparing these figures to the average hours per claim. Based on this research, SCRS Executive Director Aaron Schulenburg stated that it was the association’s impression that “the average of actual time spent in rentals is a bit different than the expectations that are asked of the shop.” The association recently released a special educational research project (http://archive.constantcontact.com/fs16 1/1101307009687/archive/111724677202 4.html) to illustrate their concerns. More information on SCRS is available at www.scrs.com.
NJA
• Ask about the equipment they use. Every New Jersey Automotive
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NEWS
NJA’S MONTANEZ
Among Presenters at SEMA 2014 O
ne of the most popular events in today’s collision repair industry, the annual SEMA Show will return November 4-7 to the Las Vegas Convention Center in Las Vegas, NV. For a fifth year, the Society of Collision Repair Specialists (SCRS) will be at the Show to host a series of special Repairer Driven Education (RDE) courses designed to provide attendees with information to successfully navigate an ever-changing profession. AASP National will serve as a sponsor of this year’s RDE festivities. Regular New Jersey Automotive contributor Larry Montanez (P&L Consultants) is among the special presenters at this year’s Show, offering two can’t-miss courses that will help educate attendees on appropriate repair practices in the industry. On November 4, he will present “Aluminum Repair Procedures, Techniques & Requirements,” which will cover cosmetic and structural repair techniques and procedures for aluminum components. Topics discussed include outer panel repair and reshaping, structural component replacement, attachment and replacement methods, tools and equipment, precautions, welding and rivetbonding. Additionally, the course will cover the costs of investment in becoming an aluminum repair facility. Montanez’s November 6 program, “Check Yourself - Departmental Quality Control to Prevent Incorrect Repairs,” is designed to cover commonly missed or discovered procedures during post-repair inspections that cause corrective and/or re-repairs. After this presentation, attendees should have a better understanding of how to implement standard operating procedures (SOPs) per department to ensure proper repairs, correct an incorrect repair before it becomes a problem and prevent incorrect repairs in the future. All attendees will receive a copy of P&L’s “commonly forgotten items” in each department. This year’s impressive list of RDE presenters also includes (among many others) California-based instructor Toby Chess, Mike Anderson of CollisionAdvice, Tim Ronak of AkzoNobel and Kristen Felder of Collision Hub.
SCRS’ RDE event schedule at SEMA will also feature the first-ever OEM Collision Repair Technology Summit on Wednesday, November 5. The Summit is a completely unique networking and learning opportunity designed to put SEMA show attendees in a room with a content-rich agenda focused on emerging trends and evolution in vehicle design, construction and technology as it relates to the collision repair environment. The format, featuring elevated discussions surrounding shop-floor issues, will include high-level speakers, panel discussions, breakout sessions, handson technology displays and organized interaction with OEM representatives and others with direct impact on vehicular changes relative to collision repair. This event will give attendees great insight into current and future requirements necessary to maintain pace with the automakers in their repair business and operate in a highly competitive marketplace. SCRS Executive Director Aaron Schulenburg is pleased to report larger-than-expected registration figures and an increase in the number of collision repair vendors signing up to be a part of the festivities. This includes not only new names to the exhibition area, but also newly expanded footprints by scores of previous vendors. “The numbers continue to go up every year, and I think that demonstrates the way this content hits home with repairers,” he says. “We have a great partner in SEMA; they really share the vision we have for delivering a home for the collision industry at this event.” Schulenburg and the SCRS Board are particularly excited to bring the OEM Collision Repair Technology Summit to members of the national auto body community. “It’s really going to be a unique event that gives some of the most robust information surrounding technology, vehicle design and the things that shop owners need to be prepared for going into 2015 and the future ahead of them,” he says. For registration information and a complete listing of RDE events, please visit www.semashow.com/scrs.
“The numbers continue to go up every year, and I think that demonstrates the way this content hits home with repairers,” Schulenburg says. “We have a great partner in SEMA; they really share the vision we have for delivering a home for the collision industry at this event.” 24
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TECHNICAL FEATURE
by Larry Montanez III, CDA & Jeff Lange, PE
WHAT THE FUTURE HOLDS FOR YOU Wow.
So far this year, we have heard of carbon-fiber-reinforced plastic (CFRP) vehicles (BMW i3) and a mass-produced aluminum truck (2015 Ford F-150). But what does the future hold for the collision repair industry? This month’s article contains a recap of the known information and facts, some predictions and even a few myths we'd like to dispel. Fact: Modern vehicles are not only engineering wonders, but they are loaded with creature comforts and are rolling, electronically-controlled masterpieces. And this is just a taste of what is to come.
NEW MATERIALS
Prediction: In the next five to seven years, we will see newer, more advanced high-strength steels (ADHSS), CFRP with nanotechnology, semi-autonomous vehi-
cles, equipment changes and advanced training requirements.
Myth: Today’s vehicles can be repaired both quickly and properly. FALSE! Today’s vehicles require skill, training and proper equipment to ensure that the repairer is adhering to proper procedures and protocols. On too many occasions, we see unrealistic repair times (commonly referred to as “cycle time”), generally based on rental day calculations without taking into consideration the actual skill level required to perform proper repairs. Remember: Just because you’ve been doing it a certain way for a period of years does not mean it is right. Fact: Aluminum construction is moving into mainstream vehicles. Over the past few years, we have seen mass-produced
ALUMINUM
vehicles with aluminum outer panels and closure panels. Infiniti and many other OEMs are offering their vehicles with aluminum door assemblies and hood panels. The Nissan Altima now has an aluminum hood, decklid and roof panel. Ford has been making headlines over the 2015 F-150. GM has also announced plans to offer a 1500 Series pickup by 2018 that will be aluminum-intensive.
Prediction: Ford Mustang, Fusion and Expedition will be next to go aluminum. GM will roll out the 1500 Series pickup and SUV lines soon. After that, we predict a couple of Cadillac models. Chrysler may wait on the sidelines for a while, but look for the Ram to be the first to go with aluminum. Mercedes-Benz already offers the AMG SLS and the SL as aluminum-intensive; this year, the S Class went aluminum in the front structure. And we already
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TECHNICAL FEATURE
know all Benz vehicles will be designed with aluminum front structures by 2020.
Myth: Aluminum repair is easy and no big deal. FALSE! Aluminum repair is not difficult if the technician has the proper training and lots of practice. Aluminum repair is very different from steel; surprisingly, most aluminum damage is not repairable. And we are just talking about outer panels, as structural aluminum components are not repairable and structural realignment is generally prohibited. Fact: Equipment upgrades and changes are part of the industry, but in the past three years, many OEMs have been making requirements to specific equipment for repairs to their vehicles. Celette has been the leader for structural repair for many years as the most approved equipment for many of the European vehicles. But in recent years, they have been making fixtures for domestic and Asian models. Not too long ago, Doug Craig from Chrysler made a video on the importance of additional anchoring on some Chrysler and Jeep models. CarBench has been the approved equipment supplier for Ferrari and Lamborghini for many years and, in the past few years, has received approval from many of the European automakers. Rounding out the top three is Car-OLiner, with approval for most of the European models (except Mercedes-Benz USA). If your structural repair equipment was not purchased in the past three to five years, you may not be able to repair most of today’s vehicles properly – or, for that matter, any of them.
EQUIPMENT
Prediction: Shop closures are inevitable as the requirements and costs to repair the new advanced vehicles rise. We feel we will see about a 20-percent drop in registered repair facilities in the next decade, with some MSOs, DRPs and OEM-certified repair facilities surviving the costs of training and re-tooling. Training, certification (ISO, ASE) and an attitude to want to learn and change are, and will be, must-have traits to be successful. Our advice is to start preparing, investing and training now or be left sitting on the sidelines.
Myth: Here is something we hear all the time: “My frame equipment from 20 years ago is still good and my techs know what they are doing.” You are in denial. Many techs and damage assessors have a multitude of excuses for why they don't train and get educated to adapt to the new repair procedures. Repair facility owners need to hold people – including themselves – accountable. Fact: Hand tools, cutting tools and other consumables will need to change as the materials used in vehicle construction become more advanced. There are about four different strengths of spot weld drill bits available for the different types of steels. Most will last 300 to 700 welds, provided the tech uses the proper speed (RPM) drill and lubricates the area. Bits used for aluminum will
HAND TOOLS AND CONSUMABLES
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last even longer than 700 spot welds due to aluminum's softness. Conversely, boron alloyed drill bits will only last 90 to 125 spot welds, and those bits can range between $75 to $125 per bit. In some cases, you will need two to three bits depending on the amount of spot welds and/or drill holes you will need to drill on boron alloyed or hot stamped steel. When removing damaged panels for replacement, the tech must be careful not to cause damage to the inner reinforcements or inner panel (steel and/or aluminum). Techs must use care to drill only the outer panel and then use a panel separator with a hammer. Air chisels are a thing of the past and should not even be in a modern repair facility. Dressing welds should be attempted with quarter-inch thick grinding stones and not cut-off wheels. 24/36-grit is another antiquated product; after the grinding stone, the tech should continue to dress the area with 50-grit or a belt sander and progress to 80- and 100-grit and/or a Roloc Bristle. In some cases, a Dremel tool will be needed. Shockingly, most techs need a class on how to dress welded areas properly.
Prediction: Techs will need to invest in their hand tools, and shop owners will need to purchase newer consumables. Remember: Everyone is watching the quality of repairs. There are articles and videos all over the Internet on post-repair inspection, diminished value and lawsuits about poor repairs. The consumer is asking for this, and the people who are looking are often experts. If you don’t raise your quality, you will see more and more issues with the quality of repairs. This could directly affect you and your business.
In general, if your equipment has not been purchased within the past five years, your techs have not been to some kind of training in five years or your techs have never been tested on welding and everything we mentioned above is foreign and unbelievable, then you may need assistance in deciding what you want to do for a living in the future. We hope this article has helped the industry to better understand what the future holds. Remember that today’s advanced construction and material vehicles will not let you repair them incorrectly. Improper repairs will break and fail if repaired incorrectly. Be proactive; protect yourself through education and training. Feel free to contact us if you have any questions. NJA 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 info@PnL Estimology.com. The P&L website is www.PnLEstimology.com. Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY. Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net. The Lange Technical Services, Ltd. website is www.LangeTech.net.
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COVER STORY by Joel Gausten
TESTED? The Questionable Origin & Possible Dangers of Used Suspension Parts
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In today’s media-saturated world, it’s virtually impossible to turn on your television or watch a video on the Internet and not come in contact with a commercial for an insurance company. Often humorous and light-hearted, these ads feature fictional characters who make potential customers feel safe and secure in selecting that insurer to cover their losses in the event of an auto accident. But as repair shops in New Jersey and beyond have learned the hard way, some insurers abandon this spirit of fun the moment it comes time to negotiate for the proper repair of a claim. As a way to reduce their expenditure in the auto repair process, some insurers have been known to push shops to work with used suspension parts. Although there is a perceived savings with these parts, many shops argue that these used components contain hairline fractures and other damages that could prove detrimental to the repaired vehicle – and the driver’s safety – down the road. At a time when shops are working harder than ever to receive fair compensation for the work they perform, repairers in the Garden State are being pressured to utilize suspicious parts that could put them – not the insurer – in legal jeopardy. Unfortunately, this dilemma recently hit home for one high-end shop when a customer showed up with a rear hit to his BMW. The adjuster for the insurer wrote for a used suspension and soon located a lower control arm in New York. It didn’t take long for the shop owner to discover that the part he received – which arrived with a tag marked “Tested” by the used parts supplier – was far from reliable. “I don’t know how they Magnafluxed it when the back half of the lower control arm is hammered flat with a hammer,” he tells New Jersey Automotive. “You can see where somebody took it off with a balljoint fork and removed it, because they bent the flange. This is the part they tested? Who accepts the liability? “The worst part is that we’re buying this stuff, and we do not know where it came from,” he adds. “At least an odometer tells you that a vehicle has 60,000 miles, so you know it has some life left in it. But we know nothing with this part. It’s a wear item, number one. Number two, we don’t how
many miles the [donor] vehicle had. That car could have been abused; it could have been in the streets of New York with potholes. We also don’t know if this was a saltwater car; there’s a possibility it had an accident on that side. We don’t know, but they want us to buy this stuff because there’s a cost savings.” Luckily, the shop was able to request the VIN that came with the part and was soon able to discover that the donor car had in fact been hit in the rear – a fact the shop owner later shared with his customer. The AASP/NJ member then requested that the insurance adjuster sign off on the part and state that it was not going to fail once it was placed in the vehicle. The adjuster refused this request, opting instead to have an OEM part installed. The price difference between a new lower control arm and the unacceptable “tested” used part? Approximately $20. Is that worth this much aggravation to both the shop and the vehicle owner? Perhaps it is if you’re an insurer writing thousands of cars a day, but for a body shop that can’t take the legal risk if that part fails, it’s nothing but a massive headache. “I have to wait for a credit because I wrote a check for this part,” says the shop owner. “I’ve wasted an hour on the phone with the consumer, and I’ve wasted half an hour with the adjuster. I’ve held up my money and lost credibility with my customer, because I’ve delayed this car an extra three and a half days. In the meantime, the insurer calls me and asks if I would pick up the three days of rental because I delayed the vehicle! In the name of cost containment, they’re putting a part in the car when they don’t know its history. It should never be sold in its present form. What’s next? Airbags?” Before anyone reading this starts to think, “Well, that’s what he asked for as a referral shop,” it must be noted that this shop has absolutely no DRP relationship with the insurer involved in this matter. If you need an example of how DRP conditions affect the greater collision repair industry, this would be it. The shop owner strongly suggests that his fellow AASP/NJ members take matters into their own hands if they are having difficulty getting a New Jersey Automotive
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COVER STORY straight answer on the origin of a particular part. “If you’re being forced to use a suspension part, make sure there’s a VIN on the tag and run that tag through Carfax,” he says. Not surprisingly, stories like the above are a source of frustration for AASP/NJ Executive Director Charles Bryant. After years of seeing good shop owners do everything necessary to build a reputable business only to have insurers pressure them to use a part that the shop can’t guarantee, he feels that it is time for shops to finally understand an insurer’s true place in a non-DRP repair. For one thing, insurance companies do not have the right to dictate how the car’s going to be repaired unless they choose the option of repairing the property. “If they want to control the repair, they have every right to do so,” he says. “If they [choose that option], they have to limit those repairs to one particular shop, and then they have the right to go to that shop, become the contractor and dictate how the car is going to get repaired, and what they’re going to pay for Labor Rates...If they don’t do that, then it’s up to the owner of the car to contract with a shop, who says [to the insurer], ‘No, I’m not going to do your nonsense of using aftermarket parts that are subject to fail; I’m not going to use used suspension that’s subject to fail. I’m going to fix the car correctly.’” Bryant says that insurers in the Garden State have one of three options in settling a claim: 1. They can repair the vehicle, which means physically taking it and repairing it themselves or having someone else perform the work, 2. They can replace the property by giving the customer the value in money if the car is a total loss or find an exact replacement or 3. They can settle the claim in money. “The first [option] gives them the right to control how it’s going to get
done,” he explains. “They don’t choose that because then they’re liable right along with the shop that did the repairs...Instead, they choose the option to settle the claim in money, and then they come in and act as if they chose the option to repair the property. They try to dictate to the shops [and say], ‘That’s all we’re paying.’ That’s not all you’re paying! You didn’t choose the option to allow you the right to dictate all you’re paying. You’re paying what it takes to fix the car, as long as it’s reasonable. Period.” Reasonable is an important word in this discussion. Is it “reasonable” for shops to be made to use parts that they can’t guarantee? Is it “reasonable” for a used parts supplier to put a “tested” tag on a part that looks like it’s been through a war? Interestingly, the debate over used suspension parts is no longer a case of preaching solely to the industry choir, as the mainstream media has also been following the issue. As Yahoo writer J.H. Kim explained in a 2010 article entitled, “Junkyard Car Parts: When is it a Bad Idea?”: Oftentimes, used car parts will more than suffice for an auto repair job. But in some cases, your efforts to save money by using a junkyard car part may be done in vain as the repair does not go as planned. In these situations, you may very well end up spending more money than if you had started the entire process with a new car part and worse, it could potentially put you and other drivers in danger. Avoid these situations by considering the following list of when not to use junkyard car parts:
It didn’t take long to discover that the part — which arrived with a tag marked “tested” by the parts suppliuer — was far from reliable. Replacing axles and suspensionrelated parts Replacing alternator In the list above, the first three are related to safety in that a fault in any of these components could be hazardous to you, the driver and to others on the road with you. In related news, the issue of unsafe repairs reached new heights in public awareness in July, when Nationwide Insurance was ordered to pay $21 million (including punitive damages and attorney’s fees) in an 18-year legal battle in Pennsylvania where a driver sued the insurer after her vehicle received defective repairs all the way back in 1996. On the plus side, Bryant notes that the number of complaints he has received from members regarding forced used suspension parts has decreased in recent times. One shop owner recently told him that he flatly refused to use the parts and instead utilized (and invoiced for) new parts – and received full payment from the insurer. “It’s a matter of standing up,” Bryant says. “It’s also a matter of understanding that if you go along with it just because somebody said to do something, it doesn’t relieve you of liability.”
Replacing brake system-related parts (including but not limited to pads, rotors, calipers) Replacing airbags
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FEATURE
Redefining Luxury: Lexus Gains a New Audience with the NX In late July, New Jersey Automotive was among the select media outlets invited to Nashville, TN for a special preview of the all-new Lexus NX. Inspired by performance vehicles, the 2015 NX unites the engineering input of racers with the impeccable touch of Lexus luxury in a design that steals the show. The 2015 Lexus NX debuts with the NX 200t (which boasts a turbocharged 2.0-liter four-cylinder engine) and the NX 300h hybrid (which offers a real driving kick, thanks to a new transmission with a kickdown function). In addition to offering an aggressive grille and front lower bumper, the NX F SPORT package features Active Sound Control to enhance the auditory experience and adjust engine note
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volume in the cabin. Special wheels, black exterior mirrors, exclusive interior trim and front sport seats round out the package. Considering Lexus’ attention to detail and design, it comes as little surprise that the NX has been created with safety in mind. Frontal and side collision protection measures include the use of high-tensile steel up to 142,000 psi in key areas, including the center-pillar hinge reinforcement, outer rockers and roof crossmembers. In a collision, energy from a side impact is transmitted to the floor through a structure of cross-members built into the rocker beneath the center B-pillar. The rear impact structure disperses offset collision energy to the main chassis mem-
September 2014
bers on both sides of the vehicle. A comprehensive roof impact-resistance structure disperses load when the roof is impacted, minimizing cabin distortion. The structure includes front pillar reinforcement and high-strength steel reinforcements for the center pillar, as well as reinforcement around the seatbelt anchor and front header. Lexus WhiplashInjury Lessening front seats are fitted to all models, and the NX has energy-absorbing structures in the pillars and roof headliner. There are impact-absorbing pads in the front and rear door trim adjacent to the occupant’s lumbar region. The Lexus NX models have eight SRS airbags – including a dual stage driver’s airbag and knee airbag, dual-stage and dual-chamber front passenger airbag, front side airbags and full-length side curtain airbags – and offer the available Lexus Pre-Collision Safety System (PCS). Available Lane Departure Alert warns the driver when it determines that the vehicle is about to veer from a traffic lane. A camera mounted to the windshield recognizes lane markings. It sounds a warning and provides a visual representation on the Multi-Information Display screen if the vehicle is veering from its lane. The system works in rain and on roads where the lane is marked on one side only. Intelligent High-beam uses the same windshieldmounted camera. When the driver turns the high beam on, it will switch to low beam to help prevent blinding other drivers and restore high beam when there are no vehicles ahead are detected. The system can also dim the high beams when it detects bright streetlights. When conditions permit, the high beams will automatically resume. The NX’s Pre-Collision System (PCS) uses the all-speed Adaptive Cruise Control system’s millimeter-wavelength radar sensor to detect vehicles and other obstacles. A buzzer and a light help warn the driver of impending collision. The system can
Owen Peacock, national product marketing manager for Lexus, introduces the new NX at a special press event in Nashville, TN. increase the driver’s braking effort, and activate Pre-Collision Brake if the driver doesn’t apply the brake. The system can also bring the NX to a full stop. Pre-Collision Brake deceleration works from a maximum speed of 37 mph. Striking an intriguing balance between sporty and refined, the Lexus NX has been designed to appeal to new Lexus owners in their thirties and forties. Although an official MSRP was not revealed at the press event, the NX is expected to hit the market later this year at under $40,000. After taking various NX prototypes for test drives through Music City, New Jersey Automotive Editor Joel Gausten is confident that Lexus has another major hit on their hands. “The NX effortlessly achieves Lexus’ goal of offering an exciting vehicle for an ever-growing demographic – young professionals who seek an attractive balance between traditional luxury and the practical demands of parenthood,” he says. “Lexus hopes to sell around 36,000 of these vehicles in 2015. Considering all that this vehicle has to offer, I suspect the sales will be much greater. The NX is a perfect choice for a segment of the market that has been waiting too long for a great car like this. Is it possible to be conservative and exciting at the same time? The NX answers that question with a resounding ‘yes!’”
The NX preview event featured an intimate performance by Nashville music stars Brett James (left) and Tim Nichols.
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Princeton BMW 3630 Quaker Bridge Road Hamilton, NJ 08619 PH: 609-570-1611 Fax: 609-570-1602 www.princetonbmw.com
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BMW of Newton 119 Hampton House Road Newton, NJ 07860 PH: 973-579-6020 FAX:973-579-9632 www.bmwnewton.com
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NO BRAKES by Ron Ananian
In a Relationship Welcome to my world this month; thanks for stopping by. If you are a little bit older (and it seems like we are all getting some gray), you notice the cycles of business in all areas. One month, you’re so busy that gross sales rise 20 percent; the next month, you somehow have time to paint the lifts and the floor. The cycle of business - or, more appropriately, the swings and moods of it change constantly. One of the key weapons to fight the swing is utilizing the relationships you have with employees, clients, vendors and the technology we deal with daily. Recognizing the relationships you are cultivating can help you realize that you are achieving goals, even if the gross dollars are off.
As I sat down to write this month’s column, I couldn’t get it together in my head until…well, read till the end and you’ll see what my inspiration was. I’m not sure why, but this has been a quiet summer; one of the quietest I can recall, as a matter of fact. Since Fourth of July, it seems like everyone has gone on vacation; our business has slowed down some, and going by the chatter I hear, we are not in the boat alone. From my dealer contacts to those in the independent marketplace, there are not many reporting growth. Some tell me they are making numbers, but to do so they have to either spend more on advertising OR give it away cheaper than they can afford to. “But it beats standing around,” they say. I have spent the summer working on other projects, looking around at the shop and its appearance, throwing out things in cabinets that are old and outdated, moving tools from the front line of my tool box into storage on a shelf in case we need them (the carburetor adjustment tools for GM feedback controls are no longer such a hot item). My ASE sign on the front of the building was faded and weathered (you would be too, after over 30 years) and the front office carpet needed to be updated. In order to be in a relationship, it is important to make good impressions. When it pays, off you realize the value of your effort. We had a new customer this week who came along from Queens Village, NY (about 90 minutes away). He requested four tires, a front end inspection and wheel alignment. As the saying goes, nice work if you can get it! The repair went off without a hitch; it was very straightforward and successful. We noted that he was coming due for front brakes in the Fall, and in general, the 155,000-mile, 17-year-old Nissan was in pretty good shape. The real success of the job came today, in the form of an email I received from the customer. It reminded me that the relationship is still the key. I’m clipping it for brevity, but the gist of Edward’s note reads as follows: “I’d like to thank you very much for the wonderful first-time experience at your shop yesterday getting new tires on my
1998 Nissan Maxima, alignment, and front end inspection. From one hard-working small business owner to another, I couldn’t have been more impressed with your shop, your work and your co-workers. After four years of listening to the Car Doctor on the radio and greatly increasing the little knowledge of cars that I had by at least tenfold, I was amazed at how honest, down to earth and detailed-oriented you were in looking at my car and telling me your honest, expert opinion. (I use the word “honest” twice, because as small business owners, we know all too well how dishonest this world is, and it’s not getting any better).”
THE BOTTOM LINE IS… The relationships you keep and the way you run your business will reflect on your success through good times and bad. And while I know I can’t put Edward’s words in the bank account, they will pay dividends in other ways that cannot be measured by normal means. We reached someone; we serviced them correctly and filled a need. From there, as Edward indicates, the tree will grow and branches will spread. I wrote him back thanking him for the kind words, and pointed out that I’ve always tried to run the shop as my late father-in-law told me in 1981 when the shop started to grow. “Take care of your customers, your vendors and employees; the rest will happen by itself.” Pretty strong and accurate words from over three decades ago. These days, that advice plays over in my mind more and more. The technology side of this business is forcing us to change our approaches to running a shop. There are things that may at first seem off limits or out of reach; how we approach that relationship will dictate our future success, in both good times and bad. I’m already thinking down the road where his words will take me; are you? As long as I am in the business, I will also be in a relationship.
’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. 44
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For all we have to offer, visit us at
www.nucarparts.com Scan the QR code for Nucar Wholesale Parts 46
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180BIZ FEATURE by Rick White
GROOVE OR RUT? Are you still in the groove, excited each morning about the opportunity that awaits you? Or are you in a rut starting to fall back into autopilot, making getting to the end of the day your only goal? “Rick,” you may be wondering, “how do I stay in
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the groove?” I’m glad you asked! Excitement and enthusiasm are the natural byproducts when you first start down the path with a big idea or goal. Over time, the excitement dwindles, making it harder to stay motivated and focused. Let me share
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with you the five actions I take that are keeping me moving forward.
1. Feed your mind first. Before you can help others, you need to care for yourself first. Likening your mind to a garden, thoughts and ideas are seeds planted every moment you are awake. As the caretaker or gardener, you have the responsibility to plant, feed and nurture those thoughts (seeds). If you can neglect your gardening, weeds (negative thoughts) will overrun your garden in a very short time. You don’t have to plant weeds; they just happen. Or you can plant seeds that will bear fruit (positive thoughts) and nurture them daily with effort. It’s your choice. I choose to work my garden every day by starting each morning thinking of five things I am truly grateful for and then I follow that up by reading or listening to something positive for five to 10 minutes. At the end of each day, I review my successes of the day and once again, read or listen to something positive for 5 to 10 minutes. Everything starts in your mind, so be careful what you allow in. 2. Keep your eye on the prize. You need to remind yourself constantly of where you are going. I do three things every morning to reinforce my focus on my desired destination. First, I “visit” the image of my destination in my mind. I close my eyes and I can actually see and feel what it looks like. My image is so clear that it gets me pumped up and ready to rock. It only takes a moment, and I do this in the morning, at lunchtime and just before stopping for the day. Second, I write down my goals every morning and night. Again, this takes just a minute to do and reinforces my destination. The third thing I do is keep my vision board in front of me all the time. It’s the background on my computer and phone, and I have it printed out in my bedroom and bathroom. A vision board is simply a collection of pictures that represent my goals visually. If you would like
to see my vision board, let me know and I will share it with you. 3. Don’t just think about what you want; take action towards achieving it. Don’t get stuck in analysis paralysis, overthinking and scheming... doing nothing. I find that taking deliberate action towards my goals keeps me excited and enthusiastic because I am actually doing something! Try it; you will be amazed at just how invigorating that this one step is!
About Rick White & One Eighty Business Solutions Rick White is a managing member of One Eighty Business Solutions (180BIZ), a Virginia based coaching and business solutions provider to the automotive and truck repair industries. Rick’s clients consider him a trusted advisor, helping them to increase profits and free time while reducing stress. If you would like more business tips and thoughts just like this, please visit our Facebook page at www.facebook.com/ 180biz. 180BIZ provides affordable, down to earth, one-on-one business coaching with no long-term commitments and a money-back guarantee! To see how we can help you and your business, please email us at info@180biz.com or call (540) 833-2014.
4. Measure, measure, measure. It is imperative that you are able to measure your progress as you move towards your destination. Like losing weight, seeing progress feeds your motivation to continue and feeds the feelings you get from taking action. You must measure daily, track your progress and make adjustments as needed. Remember to stay firm on your destination and flexible on how you get there.
5. Celebrate often. Waiting until you get to your final destination before celebrating can actually work against you. At some point you may think, “Why bother?” What you want to do is celebrate all the time! It might be as simple as a fist pump followed by a big old “YES!” to something more elaborate. These smaller celebrations keep you excited and wanting to reward yourself more. So if you want to increase sales, instead of waiting until you realize your sales goal to celebrate, celebrate when you get a referral or get up early to visit that fleet that you’ve wanted. See what I mean?
The bottom line is that motivation doesn’t last forever. You have to set yourself up daily for wins along the way that will keep you pumped up, focused and on fire. Like Zig Ziglar says, “People often say motivation doesn’t last. Neither does bathing— that’s why we recommend it daily.”
Stay motivated and see the GREATNESS within you!
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THE LISTDREAM CAR 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 mailbox, please share your opinion. We just might print it in a future issue. And now, onto THE LIST…. Harley-Davidson Knucklehead Bobber No dream car here, but I’ve got a dream bike.
Ferrari 458 What can I say? This car leaves me speechless.
1967 Corvette Sting Ray Convertible From the interior to the drivetrain, this gets my vote as one of the most beautiful - and most powerful! - classic cars out there.
Ford GT It’s fast, it’s sleek, and it handles well. It’s the Ford that beat a Ferrari!
1956 Corvette It’s got style and lines…and it’s great eye candy going down the road.
Being in the car business has given me the opportunity own and/or drive some pretty cool cars I would love to have my 1967 GTO convertible back, for example. And the AC Cobra that I had the pleasure to drive many years ago was also incredible! IfI had one choice, though, I always come back to the same car: A late ’60s Jaguar XKE convertible. The lines of that car have a lot of appeal to me. Whether tooling through the English countryside or up the Pacific Coast Highway, it looks right at home doing what it was built to do...be driven! Owning one of these classic British roadsters would be awesome. 1960s TV. So many to choose from!
(Photos courtesy of: caybroendumsparetime.blogspot.com; adoniscars.blogspot.com; www.wikipedia.org; www.ultimategto.com; www.remarkablecars.com ); wikipedia.org)
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
continued from page 9 son, however, was a little concerned. He asked me how he was going to take the test on a car he had never driven? I told him it was up to him: Try it with that car or wait a month for the correct document from the insurance company. He decided to give it a try. Once we were actually in the car, I felt so bad for him. Going from a 2014 Passat to a 1995 Toyota was a pretty big change. As we drove erratically back up to the MVC, I was sure this was a bad idea. We pulled back into the line; miraculously, it was empty. This seemed like a good sign, until I realized it was noon. I did a Google search on my phone for the worst MVC waiting times, and what do you think came up? Noon to 1pm, of course. Ugh. I told him to get comfortable, because we were about to wait an hour. Poor kid. He was so nervous at the beginning of the day and now all of this happened on top of it. I figured he’d be lucky not to run over the instructor at this point. But lo and behold, just five minutes in, an
extremely nice woman came out to give the test. Of course, she asked for the documents, and I confidently handed her all the correct ones – let’s get this over with. Then she pointed out that the insurance card and registration for the Toyota had expired. Blood pressure boiling, I frantically grabbed them from her and looked. She was right. They both said 2013. I tore through the documents. 2012. 2011, 2010. WTF? Then, this incredibly nice woman reached into the side of the glove compartment and said, “Oh, wait – here they are.” PHEW! After all that, he was ready to go. I took my seat at the end of the course and waited for them to return. After what seemed like an hour (it was really about 10 minutes), they pulled in. As I walked towards the car, the instructor seemed to be talking loudly and pointing to her sheet. I thought the worst. (All this, for nothing?) As she got out of the car, she said, “He passed. Congratulations!” I got into the car and my son let out the biggest sigh of re-
lief I’ve ever heard. I was so proud of him. Not only did he pass, but he did so under some very stressful conditions. Now, after a five-hour adventure, all we had to do was go inside and get the license. We were laughing and smiling…until we saw the line. It was about 100 deep. Ugh. But I’ve been through this before with my daughter. I looked at my son and said, “Let’s go.” “Where?” “Just follow my directions.” We headed out of the Wayne facility and headed to a tiny MVC location in Wallington, NJ. (Most people don’t realize that you don’t have to get your license at the facility you take the driving test.) We walked into the Wallington office and after showing them the 6,000 documents and a promise to donate my liver, he took the picture, got the license and we were out of there in less than 20 minutes. Mission accomplished. But still. I’m frigging ancient.
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EXECUTIVE DIRECTOR’S MESSAGE
continued from page 14
paint materials or the allowances that insurers allow for the cost of paint materials. I said I had a hard time believing that, since my phones are ringing off the hook about insurance companies attempting to go back to the old dollar figure per paint hour formula. After going around and around with the investigator and explaining the problem in detail, he assured me that the Department will reopen the issue in an attempt to resolve the problem if they receive input from shops facing the issue. The investigator explained that the buildup of complaints in a particular area is what causes the department to address particular issues. Based on this conversation, I have decided to assist our members by creating a generic complaint form that provides an overview of the problem. All the shops have to do is quickly fill out the form and send the complaint off to the NJDOBI. This way, the Department realizes that this is a major problem that desperately needs to be addressed. I am well aware of the frustration that AASP/NJ members have expressed in the past by making complaints about particular situations, specifically the generic “Sorry, but we can help you” letter received following the complaint. However, this investigator insisted that, if our industry makes the effort to generate awareness of this problem, the Department would address this issue appropriately. I am calling on each and every AASP/NJ member: If you have had problems with an insurer refusing to negotiate the cost of paint materials fairly and accurately, or if you’ve experienced an insurer refusing to justify their allowances for paint and material, I urge you to utilize the form you will be provided with in the near future. You can help make the NJDOBI aware of the problem. We have needed resolution to this issue for far too long. This issue should’ve been resolved back in 2007 with the
issuance of the bulletin. I can assure anyone reading this article that AASP/NJ is going to be dedicated to resolving this problem. I can also assure anyone who thinks the hard work and effort that was put in to get the bulletin issued in the first place was a waste of time that they are sadly mistaken. Insurers can consider this as a shot across the bow, or a warning that
this industry has had enough on this issue and we are not going to stand for it any longer. If anyone has any questions or comments or wants to discuss the issue further, I can be reached at (732) 9228909.
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VENDOR SPOTLIGHT
continued from page 16
the agency has to offer, Amato offers some words of practical advice to get them started on their way to a better-insured business: “Everybody should do an insurance review at least once every couple of years,” he offers. “At least 45 days prior to the renewal of their policy, they should call their agent and check to make sure that their policy is being rated properly based on sales. Sales are up and down, and most of these garage policies are based on their annual sales. They should double-check to make sure they are properly based on that sales number.” Additionally, Amato advises readers to make sure they are being charged based on the correct number of employees and that their policies are written with automatic inflation index protection. “If a shop hasn’t looked at their policy in a few years, they might be overpaying on the value of the building and its contents,” he says. For more information on the Amato Agency, visit their newly revamped website at www.amatoagency.com. NJA
Mike Lovullo Distributor for
and
Micro-Mix Paint and
Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.
CALL Office: (973) 696-3176 or Cell: (201) 452-0987 New Jersey Automotive
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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 Mike Caputo, Lacey Used Auto Parts, Inc. 609-693-0898 laceyautomike@aol.com
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ARANJ
The Automotive Recyclers Association of New Jersey
Wharton Insurance Briefs An ARA Member
Safety guards are required by OSHA on one or more parts of a machine at the point of operation, where the machine performs work on the material being processed, including: • Ingoing nip points, where moving parts contact or come close to other parts; • Rotating parts, such as rollers, grinding wheels or circular blades where the operator’s fingers or hands could be caught.
Machine guards may be: • Fixed (fences, gates or covers that provide a barrier to moving parts); • Adjustable (barriers that are adjusted to fit different operations); or • Interlocking (the power source must be disengaged when opened or removed and must prevent restart unless guards are put back in place).
Safety rules should be posted for all employees to see. Some safety rules include: • Never reach around or under a guard; • Never remove or disable a machine guard; • Don’t operate a machine if the guard is not in place or is not working; and • Report all machine guard problems to management right away.
As always, please call me with any questions or concerns regarding your insurance program. Mario DeFilippis, AAI, Vice President 800-221-0003 (1320) • 908-513-8588 (cell) mdefilippis@whartoninsurance.com
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180Biz.com ..................................................48
Acme Nissan................................................28 Amato Agency..............................................17 American Honda Motor Co. ......................4
Audi Group ................................................32-33 Axalta Coating Systems ..............................IBC
BMW Group ................................................42-43 Bridgewater Acura........................................61 Brogan GM Parts Center ............................8
Cadillac of Mahwah......................................27 CCC Comp-Est ............................................57 Classic Audi ................................................10 Clinton Acura................................................31 Cosmos........................................................55
Crane Chevrolet ..........................................56 Empire Auto Parts ........................................62
Flemington Group ........................................13 Fred Beans Parts ........................................5
Future Cure..................................................14
Glen Toyota..................................................OBC Hackettstown Honda....................................58 Hyundai Group ............................................26 JMK BMW ....................................................15 JMK Saab/JMK Fiat ....................................27
Klean Frame ................................................62 LKQ..............................................................60
Maxon Mazda ..............................................36
Maxon Hyundai........................................20-21 Mazda Group ..............................................38 Mercedes Benz of Freehold ........................60 The Mike Kaufmann Dealer Group ..............49 Mini Group ..................................................39
Mitsubishi Group ..........................................45
What is Klean Frame?
Mopar Group................................................11
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.
NU-CAR ......................................................46
P&L Consultants ..........................................31 Paul Miller Audi ............................................19
Porsche Group ............................................47 PPG ............................................................3
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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PPGMS ........................................................18
Prestige Motors............................................53 Princeton BMW ............................................25 Princeton Mini ..............................................9
RW Mallon/Collision Equipment Company ..6
Saw Mill Auto Wreckers ..............................56
Subaru Group ..............................................50
Town Audi ....................................................54
(973) 714-7550 955 Paulison Ave. Clifton, NJ 07011
info@kleanframe.com
www.kleanframe.com
Toyota Group ..............................................52
Toyota of Hackensack..................................IFC Valtek ..........................................................57 VIP Honda....................................................61 VW Group ....................................................59 VW of Freehold ............................................54
Wheel Collision Center ................................57