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
October 2015 $595
Multidistrict Litigation Claims Dismissed page 38
WHO’S LIABLE? Paying the Price for Bad Repairs
page 52
www.grecopublishing.com
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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2013 - 2015 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com
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 BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com
Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com
CONTENTS
VOLUME 45, NUMBER 10 | October 2015
10 OUT OF BODY (AND MECHANICAL) EXPERIENCES 12 PRESIDENT’S MESSAGE 16 EXECUTIVE DIRECTOR’S MESSAGE
20 MECHANICAL CHAIRMAN’S MESSAGE 24 I-CAR CALENDAR 62 NJA ADVERTISERS’ INDEX
AASP/NJ UPDATE 22 2015 AASP/NJ Annual Meeting Information
AASP/NJ NEW MEMBER SHOP PROFILE 30 Benner’s Auto Body
by Jacquelyn Bauman
VENDOR SPOTLIGHT by Joel Gausten 34 The Power of OEM: Gateway Toyota Beats the Aftermarket NATIONAL NEWS by Joel Gausten 38 Multidistrict Litigation Claims Dismissed
LEGAL PERSPECTIVE by Mitchell Portnoi, Esq. 44 Outside General Counsel Services
INDUSTRY UPDATES 48 PMCLogic Adds KPI Reports 48 Coming Together: Fenix Auto Parts Joins Auto Recyclers Along the East Coast by Jacquelyn Bauman
COVER STORY by Jacquelyn Bauman
52 Who’s Liable? Paying the Price for Bad Repairs SEMA PREVIEW by Joel Gausten 57 Consolidation, Legal Trends Among SEMA Seminar Topics
AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 60 Wharton Insurance Briefs PUBLISHER Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)
MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com) ART DIRECTOR Lea Velocci (lea@grecopublishing.com)
OFFICE MANAGER Donna Greco (donna@grecopublishing.com)
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 LIST 61 If You Could Have Anyone from History Work at Your Shop, Who Would it Be?
The Alliance of Automotive Service Providers/New Jersey Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest
HALL OF FAME
Tom Elder Bob Everett Thomas Greco Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano
Michael Lovullo Sam Mikhail Ron Mucklow George Petrask Russ Robson Jerry Russomano George Threlfall
Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson
NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
“Eye Know I’m Old” by THOMAS GRECO, PUBLISHER
In a couple of months, I will officially become old. You know how I know that? Because I love to take surveys. Call me silly, but I find most of them pretty interesting. And with the Internet, they are everywhere. The last time I took a survey, one of the very first questions jumped out at me. It asked my age and gave me the following choices: • 18 to 24 years • 25 to 34 years • 35 to 44 years • 45 to 54 years • 55 to 64 years • Age 65 or older In December, I will be 55. I will be moving into that dreaded second-to-last age bracket according to most
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surveys. You know, the one that says you’re not a senior citizen...but you’re CLOSE. Crap. I really didn’t need a survey to tell me I’m getting old. My eyes started telling me that about five years ago. Back then, I still read four newspapers a day. But I kept noticing that the type was getting harder and harder to read. I would say to my wife, “God, these publishers must be trying to save ink by printing such small type.” She would laugh and say, “It’s not the ink; it’s you.” So after a few months of lying to myself, I went to the eye doctor. “You need glasses.” Huh? “My eyes are perfect; it’s just the damn printing…” “You need glasses.” So I got glasses. Not just one pair, of course. I needed six. You see, I like to read in lots of different places. I needed a pair for work, a pair for the living room, one for
my man cave and…uh…I think you can figure out where the other three are. It took some getting used to. I had actually experienced my first pair of glasses in the fifth grade, but I promptly threw them out after a few days. But as an “old” man, if I wanted to continue my love of reading, I had to adapt. And I did. It was, and still is, a pain in the ass to have to grab for them every time I need to read something, but such is life. Actually, I kind of got used to them. A couple of years later, I noticed that the type was getting blurry again, even with the glasses. Back to the doctor I went. “You need stronger glasses.” “But you just gave me these a few years ago. They keep shrinking the damn type.” “You need stronger glasses.” Out came the Coke-bottle spectacles. I only needed two pairs because they were just for reading print. I can still use the old glasses for computers, tablets and phones. Eight pairs of glasses. OLD. Earlier this year, I noticed that my TV seemed blurry. I called the cable company, and they did some tests and even came out to the house. They checked everything and
concluded that all was in order. I said, “How can everything be okay when an 80-inch TV screen looks blurry?” The cable guy said, “You probably need glasses.” At this point, I may as well have had a frequent flyer plan with my eye doctor. I went back to him and explained the problem, and guess what he said? Yup. “You need DIFFERENT glasses.” He prescribed me two more pairs for watching TV and driving. So here I sit with three kinds of lenses and 10 pairs of glasses. Sure, I asked about Lasik surgery and bifocals, but the doc said neither was an option. “Was it all due to my heart problems, or possible diabetes?” I asked. He said that wasn’t it either. I responded, “Then why does this keep getting worse?” His answer? “You’re getting old.” Thanks, doc. PS: I want to thank the record companies who make CDs these days for printing the liner notes as small as possible. I refuse to believe it’s my eyes when I’m forced to take a picture of the lyrics with my phone, and then zoom in on the shot WITH my glasses on just so I can sing the damn lyrics to a song! NJA
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PRESIDENT’S MESSAGE
INFORMATION & EDUCATION
by JEFF MCDOWELL
By the time this issue hits the streets, AASP/NJ will have just concluded a pair of September MembersOnly aluminum repair meetings. You’ll see in-depth coverage of these events in next month’s issue. In the meantime,
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I’d like to shine a light on a large part of the reason we were able to provide these opportunities to our members: Reliable Automotive Equipment, Inc. (RAE) and, more specifically, Dave Gruskos. Dave not only provided us
the RAE headquarters as meeting space for these two gatherings, but he also presented our attendees with incredibly valuable information on aluminum repair procedures, requirements, certification and so much more. Dave’s been a longtime supporter of our industry, and he is truly an expert when it comes to the ins and outs of repairing these advanced materials. We sincerely appreciate his help in providing these meetings to our members. We offered them at no cost to AASP/NJ members, and it’s my hope that we will continue to provide no-cost benefits like these in the future as a perk of aligning with AASP/NJ. Looking ahead, it’s almost time for the 2015 SEMA Show (and, incredibly, NORTHEAST® 2016 is around the corner a few short months later). Until then, we are just about ready for AASP/NJ’s 2015 Annual Meeting, scheduled for October 28. (See page 22 for event flyer.) In our association’s spirit of education and information, I’m proud to announce that AASP/NJ has secured a representative from General Motors to speak to our attendees about the manufacturer’s new MyPriceLink.com initiative. While you may have heard about GM’s new (and, to many, controversial) program, odds are that you aren’t completely up to speed on how it will work, or how it will affect your day-to-day business. This address at our Annual Meeting aims to fill you in on this topic, and the discussion should shed light on the issue for all in attendance. That said, you have to be there to hear it! If you haven’t signed up for our Annual Meeting yet, turn to page 22 and register TODAY. Don’t miss your chance for industry camaraderie, critical updates and now an important presentation from GM, too. Hope to see you there! NJA
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EXECUTIVE DIRECTOR’S MESSAGE
HELLO, COLLISION INDUSTRY – PLEASE WAKE UP repair facility shall provide a written estimate to any customer seeking its services, provided that the auto body repair facility is willing and able to perform the requested repair services.
For those of you who have been drinking the “Kool-Aid” from the start, I am probably wasting my time. But for those of you who have noticed that things aren’t okay and need to change, listen up. When an appraiser from an insurance company comes to your shop to inspect a damaged vehicle and prepare an estimate, he or she is not writing that document for you to work off of while repairing that car. I am told that some collision shops are under this impression. The NJ Auto Body License Law makes it clear that a body shop estimator must prepare an estimate if he or she is willing and able to repair the damaged vehicle. Just so there is no misunderstanding (or in case anyone doesn’t think that I know what I am talking about), the exact words from the NJ Auto Body License Law are as follows: 13:21-21.10 Estimates and repairs (a) Every licensed auto body
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Some collision shops seem to think that they are obligated to repair a damaged vehicle exactly the way an insurance appraiser writes his or her estimate, regardless of how the vehicle owner wants it repaired. Some shops also think that the purpose of the insurance estimate is to act as a blueprint for the job. Well, WAKE UP! Guess what the purpose of the insurance estimate is? Short and sweet: The insurance estimate allows the insurer to gauge approximately how much money they need to reserve in order to pay the claim. Many shops don’t seem to understand that the vehicle owner — not the insurer that is paying the claim — is the customer. This is important, so I am going to drive it home in hopes that it sinks in. I don’t mean to sound condescending when I say this, because I will be the first to admit that many across the country still don’t get it. But the reality is, there are two contracts in play when looking at a situation where someone is going to rely on an insurer to pay the shop for the repairs. There is one contract between the collision shop and the owner of the vehicle, and another contract between the vehicle
by CHARLES BRYANT
owner and the insurer that is responsible for the repair bill (minus any deductible or betterment). These two contracts have completely different purposes. The contract between the vehicle owner and the collision shop is not part of the contract between the vehicle owner and the insurer, unless the vehicle owner authorizes the insurer to pay the collision shop directly on their behalf (which does happen a lot). Maybe that is why there is so much confusion over who is responsible for what. When you start mixing the provisions of the repair contract with the provisions of the insurance contract, the problems often begin. The issues usually start when the appraiser arrives at the repair shop and says, “I am here to inspect a damaged vehicle, prepare an estimate and reach an agreed price with you to repair it.” Over the years, the senior shop owners have taught the younger generation that this is how things are supposed to work. (Because that’s how they were told it was supposed to work.) No offense to the seniors, but that is why the collision industry is in so much trouble now. Years ago, things were not like they are today, but they were slowly getting to this point. By insurance appraisers continuously coming out to collision shops and saying that they weren’t going to pay for certain
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EXECUTIVE DIRECTOR’S MESSAGE things, the collision industry just automatically took it for granted that carriers had a right to do this and enforce it. The insurance industry is the best in the world at analyzing risk and deciding what they are willing to insure. It’s very similar to gambling. In fact, to explain it in simple terms, the insurer is gambling that the vehicle
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they insure will not be involved in an accident. However, if it is involved in a collision or gets damaged, one would think the insurer would just pay. Well, it doesn’t quite work that way. When one goes to Atlantic City, puts his or her money on a number on the roulette wheel and that number comes up, that bet is just paid off at
the odds listed – no argument or fuss. Things are not that simple when it comes to insurance. One might think when you have an accident, the insurance company has to pay what it takes to repair the damage. Instead, certain insurers do everything in their power to keep from paying even close to what the people they insure understood they would be paid in the event of an accident or loss. To make things worse, the insurance industry has brainwashed the collision industry over the years into thinking that carriers have a veriety of rights that they never had and never will. Insurance appraisers are constantly telling shops that they must provide the insurer with the invoices for all of the parts that went on a damaged vehicle or they will not pay a supplement for any small additional parts that become apparent after the repairs begin. In reality, the insurer has absolutely no right to the shop’s invoices. Rather than separating the contractual issues of who is entitled to what under which contract, most shop professionals just give up and provide the insurer with all of their invoices (and usually don’t even charge the insurer for the time to copy them). It is only too often that an insurer comes into a collision shop and says, ‘We only pay the prevailing Labor Rate in the area,’ and then dictates what that rate is without any supporting information or documentation whatsoever. In many cases, the shops just accept it. This has been going on for so long that the Labor Rates across the country are lower than what lawnmower and bicycle repair shops are being paid. This is because the rates have been artificially suppressed by the insurance industry
for so long that they will need to be doubled or tripled to catch up to where they should be today. I could sit here and go on and on about the problems in the collision industry, but I choose not to bore the readers any more than necessary. My point is that something has to be done before it is simply too late to turn things around. Collision shops cannot afford to continue repairing complicated vehicles like the ones on the roads today for less than what they are worth. Existing collision shops are going out much faster than new ones are coming in. Technicians are finding other trades to go into because they simply cannot get paid the kind of money they can receive in other industries.
The bottom line is that the collision industry needs to wake up and become aware that this is not how things are supposed to be. The insurance industry is not in charge of the collision industry, and it should not be dictating such things as the Labor Rates or how vehicles will get repaired. The collision industry needs to take a giant step forward and say, “This is our industry! From now on, we will not allow anyone to dictate to us how much we will be paid per hour, what kind of parts we will be using or how damaged vehicles will get repaired in our shops.� This is NOT the way things are supposed to be. For those shops that are ready to take that giant step but are afraid to be out there all alone, think again. Join
AASP/NJ today and we will be there to support you on your way to success. You can contact me at (732) 922-8909 to join, or you can get more information about membership on the AASP/NJ website at aaspnj.org. NJA
Welcomes our newest member: Wreck Room Collision, LLC Atlantic Highlands
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MECHANICAL CHAIRMAN’S MESSAGE
The Growing Gap in Education by KEITH KREHEL
Before I started my auto repair and service business, I taught for a high school auto shop program for several years. I graduated college with a teaching degree in industrial arts education and was trained in many areas, including woodworking, metalworking, drafting, printing, automotive, electrical, photography and plastics (I had attended many of these “shop” classes in junior high and high school before attending them in college). After resigning from my teaching position, I noticed a disappointing trend. Shop classes with the hands-on training for valuable skills were being done away with as if they were unimportant. By attending shop classes in school, students gain exposure to various trades. This allows each
student to sample which fields (if any) they are interested in, without the commitment of going to a trade or technical high school. In each shop class, they can learn practical information on how things are designed, built and maintained, along with investigating their own aptitude within each field. Without these experiences, how would students identify their interests? I can relate to this. I found my auto shop classes intriguing and enjoyable, but had no experience in the field because no one in my family had any interest in cars (other than to drive one). Many of the students I taught could have been considered discipline problems in other classes, but were good students in mine. These same students, who may have had a hard
time sitting still while diagramming a sentence in English class, were not a problem in shop class. I still remember many times when a non-shop teacher visited me during one of my sessions and later asked me how I handled a particular student. Very often, I responded that he or she was not a problem in my class, and that the student was one of my better ones because he or she was interested in my subject and perhaps could see the value in what was being taught. I personally found it rewarding to teach practical skills to students, enabling them to perform an oil change or change a flat tire. Not every student of mine became a mechanic, but some did. All of my students probably went on to own and operate cars. Employment is another reason why shop classes are important. From my experience, most skilled and capable techs are employed and have relatively stable careers, unlike their engineering and computer programming buddies who seem to be laid off between projects and economic downturns. Capable auto mechanics are in demand in good and bad times. During tough periods, people keep their vehicles longer, requiring more attention as these rides get older. One mechanic I met took advantage of his employability by moving around the country with his trailer every couple of years. He was confident he would find work wherever he traveled and make a good wage. Not too many careers could handle that mobility. In my opinion, there seems to be a push for all students to go to college – regardless of ability – and be trained to sit in front of a computer. I don’t agree with this approach. College is great for some, but not everyone. Many people would be better off in the trades, and I’m not just talking about automotive service. For example, houses are still continued on page 59
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AASP/NJ UPDATE
AASP/NJ 2015 Annual Meeting Wednesday, October 28 7pm Cash Bar, 7:30pm Dinner Gran Centurions Banquet Hall Clark, NJ
AASP/NJ Presents: An overview of General Motors’ new program that will change the way collision repairers obtain list pricing on parts from the manufacturer. John Eck, GM’s wholesale dealer/customer care manager, will provide insight on why MyPriceLink was created, discuss the background on what made GM decide to go with it and give an overview of how it will work. Finally, he will offer insight into the effect MyPriceLink is likely to have on the collision industry. Immediately following, AASP/NJ will present a brief awards ceremony, do a synopsis and overview of AASP/NJ’s recent activities and then open up the meeting for discussion to allow members an opportunity to speak in an open forum about the issues that are currently affecting them the most (such as the introduction of aluminum-intensive commercial vehicles). The plan is to give our members a chance to speak openly about the problems they are having in today’s automotive repair world. A question-and-answer period will follow.
Don’t miss this exciting, must-attend meeting!
Cost: Members: $50 / Non-Member Guests: $75 Registration deadline: Friday, October 23 PRE-REGISTRATION REQUIRED
To register, send the form to the right with check payable to AASP/NJ to: AASP/NJ, PO Box 734, Neptune, NJ 07753 22 | New Jersey Automotive | October 2015
Company Name:______________________________ Contact: ____________________________________ Town: ______________________________________
Phone:______________________________________
Total Number of Member Guests____ @ $50.00 =
$_____________ Ck. Enclosed
Total Number of Non-Member Guests___ @ $75.00 =
$____________ Ck. Enclosed
To pay with a credit card, provide the following information:
Credit Card #: ________________________________ Exp. Date: __________________________________
Name on Card: ______________________________ Billing Address:
____________________________
____________________________________________ Fill out this form and fax it to (732) 922-9821
For questions about this meeting, call AASP/NJ Executive Director Charles Bryant at (732) 922-8909.
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CALENDAR Full-Frame Partial Replacement Holiday Inn & Suites, Parsippany
OCTOBER 15
Vehicle Technology and Trends Holiday Inn & Suites, Parsippany Hazardous Materials, Personal Safety and Refinish Safety Holiday Inn & Suites, Parsippany Ford F-150 Structural Repair (FOR06-1) Comfort Suites, Mahwah Ford F-150 Structural Repair (FOR06-2) Comfort Suites, Mahwah
OCTOBER 17
Adhesive Bonding Keystone Automotive, Palmyra Aluminum Panel Repair and Replacement Keystone Automotive, Palmyra Full-Frame Replacement Virtual Classroom
OCTOBER 20
Replacement of Steel Unitized Structures Compact Kars, Inc., Clarksburg Full-Frame Partial Replacement Keystone Automotive, Palmyra Sectioning of Steel Unitized Structures Keystone Automotive, Palmyra
OCTOBER 21
Advanced Steering and Suspension Systems Damage Analysis Holiday Inn & Suites, Parsippany
OCTOBER 1
Corrosion Protection Pennco Tech, Blackwood
OCTOBER 5
Adhesive Bonding Pennco Tech, Blackwood
OCTOBER 6
Best Practices for High-Strength Steel Repairs Compact Kars, Inc., Clarksburg Overview of Cycle Time Improvements for the Collision Repair Process CollisionMax of Pennsauken, Pennsauken Overview of Cycle Time Improvements for the Collision Repair Process Pennco Tech, Blackwood
OCTOBER 7
Corrosion Protection Somerset Vocational High School, Bridgewater
OCTOBER 8
Adhesive Bonding Comfort Suites, Mahwah
OCTOBER 13
Welded and Adhesively Bonded Panel Replacement CollisionMax of Pennsauken, Pennsauken
OCTOBER 14
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Plastic and Composite Repair Holiday Inn & Suites, Parsipanny Wheel Alignment and Diagnostic Angles (STE04-1) Keystone Automotive, Palmyra Wheel Alignment and Diagnostic Angles (STE04-2) Keystone Automotive, Palmyra Ford F-150 Structural Repair Training Course (FOR06-1) Somerset Vocational High School, Bridgewater Ford F-150 Structural Repair Training Course (FOR06-2) Somerset Vocational High School, Bridgewater
OCTOBER 22
Waterborne Products, Systems and Application Virtual Classroom
OCTOBER 26
Aluminum Exterior Panel Repair and Replacement Comfort Suites, Mahwah
OCTOBER 27
Rack and Pinion and Parallelogram Steering Systems CollisionMax of Pennsauken, Pennsauken
OCTOBER 28
New classes are added daily! Visit i-car.com for more information or to register!
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BENNER’S AUTO BODY
NEW MEMBER SHOP PROFILE By Jacquelyn Bauman
Benner’s Auto Body has been a staple of Cranford, NJ since 1910, when it was first opened by Harold F. Benner with just 6,000 square feet, comprised of an office, one spray booth and one 3,500-square-foot body shop. Seventy years later, Harold’s son Henry sold the shop to young shop owner Joseph O’Neill, Sr., who increased the facility to its current size of 25,000 square feet, added three Accudraft downdraft spray booths and gave the shop the ability to house 60 cars. When Joseph O’Neill, Jr. took over Benner’s Auto Body after his father was diagnosed with cancer, his biggest challenge was finding a way to get his customers, vendors and 20-plus employees to put their trust in a 23-year-old with no automotive repair experience. Now, six years later, the shop sees between 10 and 15 jobs a day, has been using waterborne for over four years, is aluminum certified and boasts the newest technologies from vendors such as Metropolitan Car-o-liner and Pro Spot. Despite his youth, Joseph Jr. took the right steps to prepare himself for running an automotive repair shop and is now enjoying success as a result of this commitment. “Because I didn’t know too much about running the business aside from just being around the shop with my father, I decided to reach out to SherwinWilliams,” he explains. “They sent me to the classes I needed, introduced me to other shop owners and gave me pointers as to where to go next.”
Joseph O’Neill, Jr. as a child with his father, greeting a customer at the shop.
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The Benner’s Auto Body team Implementing the lean processes and high standards taught by SherwinWilliams management courses helped the young owner to weed out those employees whose quality wasn’t up to par with where he saw Benner’s going. “When I first came around, there were a lot of bad employees,” he recalls. “Whether they were inexperienced, refused to adapt to changes being made to the production system or even stealing, one of the biggest challenges was clearing house and rebuilding with a core group of guys. We had to find auxiliary people to come on board, which is always a hard process. We hired new body men, painters, estimators and front office staff.” It is for this reason that Benner’s recently became a member of AASP/NJ. “Being a part of the body shop community in New Jersey is a good resource for finding new technicians,” offers Joseph Jr. regarding his decision to join the association. “We’ve been on-again, off-again members for years, but the search for new employees was the deciding factor in coming back.” In addition to hiring new staff, Joseph Jr. has put almost $600,000 back into the business in just the past few years in order to bring the shop up to speed with training and equipment upgrades. “I was only able to put that money back into the business because we do a lot of volume here,” he says of the investments he considers necessary to staying alive in this industry. “I think a lot of smaller shops are going to be closing. Between the technological and regulatory changes happening, if you’re not on board, you’re going to get wiped out sooner or later. In my opinion, this is going to become more of a niche industry [in the next 10 years] and be determined by square mile radius. It costs so much to be certified by just one manufacturer that shops won’t be able to obtain [this status] for a number of them. We’re going to see a lot of consolidation and bigger shops controlling particular zip codes and manufacturers.” With all of their recent triumphs under Joseph Jr.’s ownership, Benner’s Auto Body is sure to stay ahead of the curve. For shops that want to achieve a similar level of prosperity, he suggests taking a step back. “The biggest thing I would say would be not to nitpick every hour on every job,” he suggests. “Look more at the big picture and how you can move units through a streamlined process in order to be more profitable. If you get hung up on one car or one supplement, you’re going to go crazy.” NJA
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VENDOR SPOTLIGHT By Joel Gausten
The Power of OEM: Gateway Toyota Beats the Aftermarket
If you’re a body shop owner in New Jersey, you know better than anyone that we work in one of the most competitive automotive markets in the country. In order to build and maintain a strong customer base, you always have to be on the lookout for new ways to stand above the rest. One way to accomplish this is to align yourself with a wholesale parts team that not only understands your needs, but does whatever they can to beat their competition. For parts customers from Piscataway down to Cape May, Gateway Toyota in Toms River is the place to go for high-quality OEM collision and mechanical products. Boasting nearly $300,000 in parts, Gateway Toyota is one of the 300-plus dealers that comprise the Penske Automotive Group, an international transportation services company that operates automotive and commercial vehicle dealerships principally in the United States and Western Europe. Although the parts department is clearly involved in an extensive enterprise, Parts Manager Damon Comforte makes sure that each customer account is handled with personalized care. “We try to build relationships, not just customers,” he says. Thanks to in-house storage capabilities, Gateway Toyota has the ability to provide next-day deliveries for most orders placed before 4pm. Shops that contact the department will receive expert
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For parts customers from Piscataway down to Cape May, Gateway Toyota in Toms River is the place to go for high-quality OEM collision and mechanical products.
service from parts advisors including Shawn Dougherty, Tim Acker and Kevin Martinez. Since joining Gateway Toyota two years ago, Comforte (a 22-year parts industry veteran) has worked hard to ensure that his customers have an alternative to aftermarket items. Recently, he signed up with Auto PartsBridge, an online partsordering system based on an Electronic Parts Catalog (EPC) that allows body shops to send orders directly to Gateway Toyota. Orders come pre-loaded into the EPC and are matched to the vehicle using the VIN. The system pre-matches 90 percent of the parts, dramatically reducing a dealer’s work in interpreting collision quotes and orders. A fully functional EPC is also provided for matching the remaining parts and locating those missing from the body shop estimate. Comforte is confident that the Auto PartsBridge structure will provide a smoother transaction process for all parties. “Customers basically scan over the estimate to me, and I can try and match
the price of an aftermarket [part],” he explains. “Toyota actually reimburses me for the difference.” In addition to these impressive services, Gateway’s status as a Toyota STAR Elite Dealer enables Comforte to invite independent auto body facilities to order parts online using the Toyota Electronic Parts Catalog (EPC) from the Toyota Wholesale Parts Website (toyotapartsandservice.com), as well as receive free technical service bulletins and repair information. Gateway Toyota’s efforts to build a stronger online presence for the wholesale department include overseeing an eBay store (tinyurl.com/owax933) and a dedicated in-house parts ordering site (tinyurl.com/ ors7n22). Moving ahead, Comforte and his parts team are committed to consistently adapting to an always-changing marketplace. “These days, it’s all about service and not so much about price,” he says. “A body shop will pay a little more to make sure they get a good-quality part the next day to maintain a strong turnaround time.” The Gateway Toyota parts department is open 7am-7pm Monday through Saturday. For more information, contact Parts Manager Damon Comforte at (866) 423-0340 or visit gatewaytoyota.com. NJA
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NATIONAL NEWS By Joel Gausten
Multidistrict
Litigation
Claims
DISMISSED
After months of legal setbacks, the Multidistrict Litigation (MDL) filed against a number of insurers by collision repair professionals in several states has been hit with a crippling blow. On September 23, US District Judge Gregory A. Presnell dismissed the four claims in a second amended complaint in A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al. – the first-filed action in an MDL case involving two dozen suits. The A&E suit was originally filed in February 2014 by 20 Florida body shops against 39 auto insurance carriers. The dismissal means that the plaintiffs will no longer have an opportunity to refile. The four claims accused the defendants of price-fixing in violation of the Sherman Act, boycott in violation of the Sherman Act, quantum meruit and tortious interference with business relations. These claims accompanied a list of complaints with which repairers across the country are familiar, including conspiring to fix Labor Rates, mandating inferior parts in the repair process, refusing to pay for important procedures and more. “This is the plaintiffs’ third arduous attempt to state a claim,” Judge Presnell stated in his order. “The problems identified in response to their initial complaint – shotgun pleading, vagueness and implausibility – have persisted in their subsequent efforts. Based upon a review of the pleadings in this and the other 20-odd cases [in the MDL] – almost all of which share the same shortcomings – the Court finds that giving the plaintiffs another opportunity to state a claim would be an exercise in futility. Despite becoming much wordier, the plaintiffs’ pleadings have
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not come remotely close to satisfying the minimum pleading requirements as to any of the claims asserted. Accordingly, all four claims will be dismissed with prejudice.” The September 23 order is the latest in a series of obstacles for the Multidistrict Litigation. In a late-August decision, Judge Presnell stood behind many of the recommendations made in June by US Magistrate Judge Thomas B. Smith to dismiss complaints in lawsuits filed in New Jersey, Arizona, Michigan, Alabama, California, Illinois, Oregon, Washington, Pennsylvania, Kentucky, Virginia and Missouri against multiple auto insurance carriers. Charges in the suits include steering, price-fixing, unjust enrichment, tortious interference, antitrust violations and unfair trade practices. In addition to collision repair facilities and a former body shop owner, the plaintiffs include the Alliance of Automotive Service Providers of Pennsylvania (AASP-PA). Many of these cases are represented by the Eaves Law Firm from Jackson, MS. As previously reported in New Jersey Automotive (“Dismissal Requested in Multidistrict Lawsuit,” NJA, July 2015), Judge Smith’s June 3 report recommended that most charges in the cases be dismissed “without prejudice,” meaning that the plaintiffs would have an opportunity to amend their complaints. He argued that the plaintiffs failed to allege specific facts relating to each defendant insurer (or a group of defendants) that could illustrate particular offenses. Additionally, Judge Smith’s initial recommendation to dismiss the claims specifically addressed the New Jersey suit, recommending the dismissal of its claim for quantum meruit
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NATIONAL NEWS (a reasonable sum of money to be paid for services rendered or work done when the amount due is not stipulated in a legally enforceable contract). He noted that New Jersey law requires that a quantum meruit claimant’s expectation of payment be reasonable. As such, the New Jersey plaintiffs could not have a reasonable expectation of payment of the amounts they now seek due to the fact that the defendant carriers in the state were persistent in refusing to pay these amounts in past instances. Judge Smith also noted that the New Jersey plaintiffs had not alleged any other circumstances (such as a mistake of fact or a pre-existing duty to do the repairs at issue) that could conceivably justify recovery of the difference between the price they wanted to charge and the price they were aware the insurers were willing to pay. In a letter issued to the industry following Judge Presnell’s September decision, AASP/NJ Executive Director Charles Bryant offered his views on the current status of the Multidistrict Litigation. “I have a strong message for the entire collision industry: DO NOT GIVE UP!” he said. “The type of litigation that was attempted is extremely difficult, and there are numerous ways that such litigation can fail.”
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Bryant applauded the efforts of the Eaves Law Firm in championing for the industry, acknowledging the difficulty in moving cases of this magnitude forward through the court system. “Right now, you can bet that insurers are hoping that the dismissal of these claims will scare anyone else from even attempting to challenge the mighty insurance industry,” he shared. “Well, I can tell you firsthand that there is much more to come. More inappropriate activity is being discovered and documented every day through depositions and discovery [in] the many other suits across the country. It is only too often that a big loss like this will take the wind out of the sails of those trying to make a difference. “In every major battle, there are losses and casualties along the way,” he added. “Do not let this one loss discourage the many shop owners across the country who have decided to stand up. If there ever was a reason or time to unite, that time is now!” NJA
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OUTSIDE GENERAL COUNSEL SERVICES LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.
Many law firms offer services that allow business clients the opportunity to have an attorney “on call,” similar to “in-house” attorneys employed by Fortune 500 companies. The services are tailored to the size and needs of these smaller businesses that are growing locally, nationally or even internationally. They help proactive business owners identify and understand legal issues that they face every day (and nip these problems in the bud). This is done at a far-reduced cost before that same problem forces the business into litigation, which can be cost-prohibitive. By entering into these types of agreements, clients can have an attorney “on call” at any time a question arises. The attorney can provide regular counseling and review employment procedures, attend corporate meetings, train employees regarding employment practices, review current contracts and assist with respect to negotiating new agreements. The attorney can review potential liability issues related to a host of matters based on the business involved, as well as review leases and insurance interests. He or she can also distribute advice regarding any potential exposure problems.
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These agreements should all be unique, as no two agreements should mirror one another any more than any two businesses would be exactly the same. In the end, an outside counsel agreement should be beneficial to both sides, and both parties should feel that they are getting good value for the price. For more information on an outside counsel agreement for your business, please contact Mitchell H. Portnoi at the Law Firm of Post, Polak,Goodsell, MacNeill & Strauchler at (773) 228-9900. NJA
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INDUSTRY UPDATES
PMCLogic Adds KPI Reports
ComputerLogic, Inc. has announced the latest release of its PMCLogic paint and materials management system. The new Version 6.7 contains a suite of Key Performance Indicator (KPI) reports, charts and graphs to help shops better manage their paint and materials inventory, costs and sales. This release marks another important milestone in the development of the first and only software tool for the collision industry that provides an extremely accurate predictive estimate of all of the paint and materials that will be used on each unique vehicle repair. Because PMCLogic interfaces with all vehicle-estimating providers (and most body shop management systems and paint company mixing scales), little human intervention is needed in order to gather the data required to generate an accurate P&M invoice and keep track of all of the paint and materials actually used for a specific repair (R.O.). New Features in PMCLogic 6.7 include: KPI Reports Key Performance Indicators (KPIs) are used in the collision repair industry to measure and evaluate factors that are crucial to success. It is now possible to spend less than two minutes to capture a wealth of information that will help shops make better decisions on how to control cost and increase profits on their paint and materials. Line Item Invoicing Option Shops now have the ability to generate a separate document for those P&M items that are sometimes paid as a line item on the original vehicle estimate. These items are automatically deducted from the PMCLogic P&M estimate/invoice. However, the management of these items is treated like any other P&M item for inventory control, purchasing, costing and reporting purposes. “We are looking for new ways to make PMCLogic’s paint and material management system easier to use and provide more value to shops every day,” stated Susan Edge, PMCLogic project manager. “This is a collaborative effort between ComputerLogic and thousands of body shop users who want to change the way repairers get paid for the paint and materials that they use for each repair. We listen to our customers and keep adding new features that will ultimately make this product more valuable as a management tool.” “The old saying, ‘You can’t manage what you don’t measure,’ is very true,” added President Rick Palmer. “ComputerLogic is determined to make managing paint and materials as easy as possible, and we believe we do that today. It only takes a few minutes on each job to accurately capture the paint and material usage for that repair. [This] allows a shop to have the ability to run a wealth of informative reports that will not only help them manage better, but also assist them in increasing their compensation for these costs.” For more information on PMCLogic, contact ComputerLogic by calling (800) 933-6564 or send an email to PMC Logic@ComputerLogic.com. Information is also available at computerlogic.com or pmclogic.com. NJA
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COMING TOGETHER:
Fenix Auto Parts Joins Auto Recyclers Along the Coast by Jacquelyn Bauman
When nine auto recyclers with 14 locations join together, it’s the customers who benefit. On August 18, the second-largest auto recycler in North America, Fenix Parts (fenixparts.com), announced the acquisition of Cosmo’s Ocean County Auto Wreckers in Bayville, NJ. Cosmo’s will now join a group of the most auspicious automotive recyclers up and down the east coast, including Leesville Auto in Rahway, NJ; Don’s Automotive in Binghamton, NY; Jerry Brown’s Auto Parts in Queensbury, NY; Eiss Brothers Auto Parts in Watertown, NY; Horseheads Automotive Recycling in Elmira, NY; Standard Auto Wrecking (with locations in New York and Canada); Go Auto Recycling in Jacksonville, FL; and Gary’s U-Pull-It in Binghamton, NY. “Joining with Fenix Parts was a mutual decision,” says Cosmo’s Ocean County Auto Wreckers Owner Tony Zaccaro. “The longstanding previous relationship that we had with these other companies brought us all together. We all share the same vision. We want to take care of our employees because they take care of our customers, and our customers take care of our success. That’s the goal we’ve always had.” Zaccaro is excited about the possibilities that this new partnership will bring to both his employees and his customers. “Now that we’re larger, we have a greater ability for coordination,” he explains. “We believe there are significant benefits of scale: First, increased parts availability through the hub; second, synergies with respect to how we buy cars, tow and distribute products to our customers; and third, the leverage we gain on our fixed-cost structure and corporate, general and administrative expenses.”
“
ComputerLogic is determined to make managing paint and materials as easy as possible, and we believe we do that today.
- ComputerLogic President, Rick Palmer
”
“
We all share the same vision. We want to take care of our employees because they take care of our customers, and our customers take care of our success. That’s the goal we’ve always had. - Tony Zaccaro
One example of how this augmented size and strategy with a larger entity helps Cosmo's can be found in their vehicle procurement. Through the increased coordination of vehicles across all of these 14 locations, Cosmo's and the rest of the Fenix Parts team are looking to improve the availability of parts to their customers. “This is just one way we’re focusing on continuous improvement,” Zaccaro explains. “We’re also putting a spotlight on quality control, employee benefits, customer experience and broadening our overall distribution.” The greatest benefit of the consolidation of these companies under Fenix Parts is that it allows for greater resources, a fact which is exhilarating to Zaccaro. “Through this partnership, we are better able to work on team building, company logistics and customer relations,” he says. “Consolidation is happening in all industries, and it’s nothing new here. With MSOs popping up all across the automotive service field, I feel like our decision to join Fenix Parts will better allow us to accommodate the needs of both multi-shop organizations and the independents, as we now have access to an even more diversified inventory across our 14 locations.” Although joining the Fenix family meant going from 28 employees to 563 Zaccaro is not the only one who is invigorated by this new overnight, nothing has changed in-house relationship. at Cosmo’s. “Cosmo’s is a high-quality auto recycler that meets all of our “The transition is so smooth; it’s just acquisition criteria, with strong leadership and operations adjacent to business as usual over here,” Zaccaro our existing markets that will expand our distribution, dismantling, states. “All of the same staffing is still in warehouse and yard capacity,” says Kent Robertson, CEO of Fenix place. Our employees are excited about Parts. their increased career opportunities, and As for the future of Fenix Parts, the goal is to acquire one to three our customers are excited about our new, more facilities every quarter, filling in the larger market areas between greater ability to fill their needs. Being a Canada, the American Northeast and the Southeast. part of a larger company will help assist For those who are interested in knowing more about Cosmo’s both Cosmo’s and all Fenix Parts stores Ocean County Auto Wreckers and Fenix Parts, Tony Zaccaro and Joe into the future, helping us to be more Goodman (Leesville Auto) would like to personally invite you to join sustainable than we would be as them at the Automotive Recyclers Association’s 72nd Annual independents. That’s a huge benefit for Convention and Exposition in Charlotte, NC from October 7-10. our staff.” Zaccaro is available at (732) 349-0332 ext. 1500 or at tony@Cosmos autoparts.com, and Goodman can be reached at (732) 388-0783 or at joeg@leesvilleauto.com.
”
NJA
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COVER STORY by Jacquelyn Bauman
WHO’S LIABLE? Paying the Price for Bad Repairs
This past summer, a Vermont mechanic was arrested for involuntary manslaughter and reckless endangerment. What may be surprising to many is that his arrest resulted from a death that was due to an allegedly incomplete inspection of a vehicle almost a year prior. On July 5, 2014, Donald Ibey of Barre, VT was driving his 1992 Chevrolet Corsica when, according to police reports, “he heard a pop.” The sedan went out of control down a steep hill and crashed, killing Ibey’s wife, Elizabeth. Just two months earlier, mechanic Steven Jalbert had passed the vehicle, posting an inspection sticker on it after it drove into his family’s Barre-based business, A.J.’s Sunoco. A post-crash inspection uncovered extensive rust on the rocker panels that, according to DMV Lieutenant Tim Charland in a court affidavit, would “most likely” have been present when the car was brought to be inspected, as the Corsica had only traveled 383 miles since its visit with Jalbert. Not surprisingly, this event has already had echoing ramifications down in the Garden State. “This should be a wake-up call to the collision industry,” says AASP/NJ Executive Director Charles Bryant in an association press release following the event. “It’s one thing if you allowed a bad job to get out of your shop and were sued – there’s insurance to cover things like that – but to go to jail for doing a careless job is a whole different story.” Bryant is quick to share his unease over this
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situation, addressing the all-too-common struggle with insurer reimbursement for adequate parts as a potential area of concern. “So many shops try to do the right thing, but they are told by insurers that they won’t be properly reimbursed for what needs to be done,” he offers. “They say things like they will only pay for used suspension, which, in my opinion, is the worst thing that could be done! Used suspension from a total loss should never be used; there could be internal damage that puts people’s lives in jeopardy.” Is Bryant’s unrest over this issue warranted? In a September 25, 2014 interview with Lieutenant Charland, Jalbert admitted to never putting the Corsica on a lift, taking it for a test drive or removing a tire to check the braking component. “If Jalbert had done a visual inspection by looking under a car to check the brake lines, and part of the line ran under the gas tank, I think the courts would go lightly on him,” explains AASP/NJ Mechanical Chairman Keith Krehel. “You can’t do a visual inspection on what you cannot see – it’s like trying to inspect a house without going inside. But the question is whether this case was due to incompetence or a pattern of behavior. Was it intentional or was it simply oversight? I don’t wish this outcome on the mechanic, and I don’t wish it on the customer. But ultimately, this is either gross incompetence or fraud.” Although Jalbert’s subsequent arrest is obviously a reaction to an overtly insufficient inspection, it does call into question who is responsible when accidents occur as a result of inadequate repairs. In Bryant’s example above, who would be liable when a vehicle is involved in a crash caused by a used suspension — the only suspension for which the insurer declared it would pay? “If you own a business of any kind, you hold a certain amount of liability,” AASP/NJ President Jeff McDowell explains. “In this day and age, anybody can be sued over anything, so the individual business is always liable. Should insurers be held accountable if they force you to use unsafe parts in a repair? Of course. But the truth of the matter is that they have more money and
better lawyers and just don’t care about the shop. If you go into court and claim that it’s the fault of the insurer because of their reimbursement practices, you’re going to lose.” As McDowell sees it, the case stands on shaky legs. “This was an old car that spent its whole life in Vermont,” he states. “The conditions in that state are not ideal because of its harsh environment. Cars have to deal with difficult terrain, extreme weather, frequent salt on the roads and more. Cars deteriorate much faster in those conditions than if they are in more temperate climates. However, the problem here is no matter what, you do have some sort of responsibility that can come out as legal liability. If people come to my shop after an accident and ask me, before I can even examine the car, ‘Is it safe to drive?’ I have to say no because what will happen if they get in a subsequent accident? They’ll say, ‘You said it was safe to drive!’ And unfortunately, I’ll be the one on the chopping block.” While insurer interference unfortunately mandates a lot of what goes on in the shop and during a repair, New Jersey-based attorney James E. Mackevich warns that in the courtroom, the insurers would not be standing alone. “Under my interpretation of New Jersey statutes and case law, if a used suspension fails and it has been installed by a DRP facility, both the DRP shop and the insurance company would be liable for the consequential damages suffered by third parties,” he explains. “New Jersey regulations indicate that when the work is done at a DRP, the insurance company that sent the customer there has to guarantee that work. If the subsequent work is done inconsistently with industry standards, both the shop and the insurer could be held liable. “In the case of an independent shop, it should be obvious that the [facility] must take sole responsibility for their work,” Mackevich adds. “If the shop chooses to do the repairs by following the insurance company’s estimate, the shop still holds the ultimate liability.” Although the Jalbert case differs because it is a criminal case and not a civil one, Mackevich is unsurprised by the outcome. He cites various examples of individuals who’ve seen similar ends by either failing to
do their jobs or doing them in an egregiously bad or grossly negligent manner. “There are numerous anecdotes we can read from the newspaper of people who don’t do their job correctly and are criminally prosecuted. This case is nothing new,” he says. “There was the case in New York of the crane collapsing last winter; the inspectors who were assigned to inspect the crane but did not do so were brought up on criminal charges. There’s nothing earth-shattering about the idea. If you perform your work in a grossly negligent manner and people are killed, you might be prosecuted.” Even if no criminal issues arise, there can still be civil claims. One example Mackevich cited was a case in New Jersey that involved an individual who was killed while attempting to retrieve a spare tire that had become detached. Among the listed defendants in the case was the shop who had allegedly improperly serviced the 1987 van, causing hazardous conditions to occur. Because of all of the risks shop undertake, liability insurance is highly recommended for automotive service providers. “When you purchase liability insurance, it covers you for something you might be sued for,” says AASP/NJ Board member Joe Amato, Sr., owner of The Amato Agency. “There’s property damage liability insurance, bodily injury liability insurance, general liability and — what is most important for those in this industry — garage liability insurance. continued on page 59
"In my view, repair shops have to understand that their contract to repair is with the car owner, not the insurance company." - Attorney James Mackevich New Jersey Automotive | October 2015 | 53
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PREVIEW
Consolidation, Legal Trends Among SEMA Seminar Topics
In just a few short weeks, more than 100,000 people from around the globe will hit the Las Vegas Convention Center for the 2015 SEMA Show. This year’s event (held November 3-6) will once again feature extensive participation from the Society of Collision Repair Specialists (SCRS), who are set to host more than 30 collision repair-oriented seminars as part of the association’s annual Repairer Driven Education (RDE) Series. Although SEMA represents all aspects of the automotive service and repair industry, great efforts have been made to ensure that the RDE program provides value to independent collision repair facilities. With major consolidators gaining considerable traction in the national auto body scene, the more traditional “mom and pop” establishments are feeling increased pressure to maintain and build their customer bases. For “Competing with Consolidators,” David Luehr of Elite Body Shop Solutions, LLC has created a seminar that will help these owners and repairers gain the perspectives necessary to properly compete and succeed in this changing business landscape. The discussion will cover what consolidators are doing right (and what other shops can learn from them), the advantages independents have over MSO consolidators and why owning the customer for life is the best way
By Joel Gausten
to brand your business. “The independents I’ve seen that are successful in these consolidated markets are more customer-driven,” Luehr explains. “They’re not opposed to DRPs, but they don’t depend on them to survive. They’re dependent on having a fantastic customer experience where everybody’s going to be out telling their friends and family [afterwards].” For veteran SEMA speaker Tim Ronak (AkzoNobel), returning for this year’s Show means offering shops invaluable insight into how to guarantee a proper ROI for the various investments they’re making in the business. His November 3 course, “Getting Paid for Investing in Facility, Equipment and Training,” will offer real-world facts and figures to help shops make better financial decisions. “The purpose of this session is to take any investment in technology – whether it be training, equipment or having to revamp your facility – and figure out the per-unit cost,” Ronak explains. “Our industry has made a practice of using fortune-telling as a way of setting pricing. Before you can establish a price, one of the rules of job costing is understanding what it costs you to deliver that service.” Attendees of Ronak’s talk will receive a special spreadsheet that they can use to input and analyze their data to determine the right charge based on their investments. Above all, Ronak stresses that shops can establish their rates in a way that suitably compensates them for the money they spend to develop their professional expertise. As he says, “The assertion that the investment in technology, equipment and training is just a cost of doing business is the greatest Jedi mind trick perpetrated on the industry.”
Also on November 3, John Niechwiadowicz of QLC, Inc. will present “Understanding Numbers and What They Tell You About Your Growth Opportunities,” a session that will focus on the importance of a shop thoroughly understanding its numbers and potentials before investing in equipment, tools, programs or locations. “We’re really going to dive down into how to determine the operational return that a shop could and should expect in a variety of common situations they may encounter,” he offers. “Topics for discussion will include return on investment expectations for aluminum repair, OE Certifications, facility expansion, DRPs and more. This will be a very interactive session in that we’ll focus on the areas that are of current interest to the attendees.” Niechwiadowicz recommends that attendees take a good hard look at their shops’ numbers before venturing out to his SEMA presentation. Once there, they will learn how to put those numbers to use to improve their bottom lines. “There are too many instances where a shop is shooting blind because they simply don’t have the information needed to make a decision based on quantifiable results,” he says. “We’ll be discussing what data is important [and realistic] to track and how it can be used to make a go/no-go decision on operational investment opportunities.” Another benefit of attending SEMA is the ability to gain knowledge of legal or legislative actions in other states that could eventually impact markets close to home. During the AMI-accredited “Protect Your Business from Fines and Disciplinary Actions by the CA Bureau of Automotive Repair,” attorney Jack Molodanof will outline a number of actions taking place in California that could inform and inspire attendees on New Jersey Automotive | October 2015 | 57
PREVIEW
how to address similar issues in their states. For example, Molodanof (whose clients include the California Autobody Association) will explain how the California industry’s strong relationship with Insurance Commissioner Dave Jones led to
regulations that better protect shops and consumers when aftermarket crash parts are used in a repair. “If the non-compliant crash part doesn’t fit, the insurer will have to pay the shop for the costs associated with
returning the part and the cost to remove and replace the part with a crash part that fits, or an OEM part,” he explains. “The laws are pretty strict; if the insurance company has knowledge that the crash part is not equal to the OEM crash part in terms of kind, quality, safety, fit and performance, it shall immediately cease requiring the use of the part and within 30 days notify the distributor of the non-compliant aspect of the part.” Other SCRS-related events at SEMA include the OEM Collision Repair Technology Summit and the RDE Sky Villa After-party, both on November 5. A complete list of RDE classes and SCRSrelated SEMA events (as well as registration information) is available at tinyurl.com/ok53z9z. 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 58 | New Jersey Automotive | October 2015
COVER STORY continued from page 53
General liability typically does not cover automotive-related incidents, which of course is necessary in this line of work. Garage liability will aid in the case of any suits or civil charges being brought against a shop. “One thing I suggest for shops that subcontract jobs such as towing or wheel alignments from other garages is to get a certificate of insurance from those businesses you frequently use,” Amato adds. “If a customer is in an accident resulting from work done at your shop, and it ends up being due to the work of your subcontracted business, you will likely still be held responsible as you were the one receiving payment from the customer. It’s not required by the law to do so, but it adds an extra layer of protection and is simply good business practice.” The bottom line is that shops have to be diligent about the work coming out of their bays. “In my view, repair shops have to understand that their contract to repair is with the car owner, not the insurance company,” Mackevich states. “They can’t allow insurers to tell them how to repair the car, particularly if that repair is not consistent with their shop’s beliefs or industry standards.” “At this point, if you’ve been in business, this should be obvious,” adds McDowell. “The only piece of advice I have for shops who might have been blind to this before is to make sure you have adequate liability coverage, and make sure it wouldn’t be denied based on something you were doing that might be improper. At the end of the day, it’s on you.” NJA
MECHANICAL CHAIRMAN’S MESSAGE continued from page 20 constructed by skilled laborers in many fields, using many techniques covered in various shop classes. The elimination of shop classes in schools is a disservice to students and the community. I do admit that the ability to use a computer while diagnosing some car repairs may be needed (and basic computer skills are important), but neglecting the trades is a mistake. NJA
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ARANJ 2015 Officers
President Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com
1st Vice President Ian Szoboszlay Ocean County Auto (732) 349-0332 ian@cosmosautoparts.com
2nd Vice President Darryl Carmen Lentini Auto Salvage (908) 782-6838 darryl@las-parts.com
3rd Vice President Joe Goodman Leesville Auto (732) 388-0783 joeg@leesvilleauto.com
Executive Director Brian Snyder Auto Recyclers of NJ (609) 714-2339 brian@aranj.org
ARANJ 2015 Board of Directors Bert Witcraft Auto Express (856) 728-8367
Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net
Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com
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
Harry Shover Porchtown Auto (856) 694-1555
Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com
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Wharton Insurance Briefs An ARA Member
Dealer plate usage has been an ongoing issue for many years. Although there are different interpretations of the law (and many clients have both won and lost court cases), several insurance issues should be reviewed. In general, dealer plates should be used by dealers to allow their prospective customers to test drive a vehicle that is for sale or to transport a vehicle from one location to another (i.e., auction to dealer lot/yard, dealer lot to buyer’s home, etc.). Dealer plates should only be used on a vehicle if you hold its ownership/title. Dealer plates should not be given or lent to siblings, friends or relatives for use. Insurance carriers consider this “improper use” and have declined to provide coverage after an accident. You should review your insurance program with your agent to determine the scope of your coverage and any limitations, such as driver’s age. Many programs limit drivers to a minimum age of 21 and owners’ children to age 19. Your insurance program may not cover drivers who are under those ages. Please call me if you have any questions regarding this coverage in your insurance program. Mario DeFilippis, AAI, Vice President (800) 221-0003 (ext. 1320) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com
THE LIST
We reached out to some of our readers to find out their dream employee.
IF YOU COULD HAVE ANYONE FROM HISTORY WORK AT YOUR SHOP,
WHO WOULD IT BE? I would want Nikola Tesla. Despite being a certified wacko, the guy was an engineering mastermind. He’d be great to have around the shop, and I’m sure he’d provide a bit of entertainment with all of his quirks, too.
If it doesn’t have to be a real person, I’d hire Master Sergeant Bosco Albert Baracus – B.A. from The A-Team. Not only does the guy know his way around an engine, but I know he wouldn’t take any s**t from anyone who tried to tell him how to do his job. He’d probably even be good as a manager.
Honestly, I don’t know a lot about history. I guess I would hire George Washington. Not to work in the shop, but as a manager or in the office. I figure if he could run the country, he could probably run my shop.
My pick would easily be Mickey Thompson. When I was a kid, I heard about him setting the land speed record with his Challenger 1. At that time, the thought of someone going that fast blew my mind. Not only did he know how to drive, but the man was no stranger under the hood. He was a childhood hero of mine, so working beside him would be a dream.
If he could get O.J. Simpson off of a murder charge, he could definitely get a major insurer to reimburse me for finish, sand and buff.
I would probably hire Leonardo da Vinci. The guy was a genius before his time. He drew up plans for a flying machine centuries before the Wright brothers even left their bicycle shop. If he was able to figure out all of this crazy technology before his own time, imagine what kind of an asset he’d be in predicting what could be on the roads in the future.
Photo courtesy of eonline.com
As much as I hate everyone else who bears his name, I’d want Robert Kardashian to work for me, just to fight with insurers on my behalf.
Without a doubt, I would have hired NASCAR legend [Henry] “Smokey” Yunick. He revolutionized modern racing and would have been a benefit to the shop. He was right when he said in the ’80s that there were no more good mechanics left. They don’t make them like they used to. If I could hire anyone from history, it would be Keith Black. If you can engineer a motor for drag racing, you’d probably be an advantage to any shop in this competitive market.
I was just watching Transformers on TV last night with my son. I’d probably hire Megan Fox from that movie if I could. She apparently knew how to work an engine, but if I’m being honest, I’d just keep her around for the eye candy.
Photo courtesy of screenrant.com
New Jersey Automotive | October 2015 | 61
ADVERTISERS’ INDEX Acme Nissan ........................................36 Amato Agency ......................................17 AP Media ..............................................23 Audi Group............................................32-33 Axalta Coating Systems ........................6 BMW Group ..........................................28-29 Bridgewater Acura ................................46 Cadillac of Mahwah ..............................4 CCC Comp-Est ......................................58 Classic Audi ..........................................12 Continental Auto Parts ..........................51 Empire Auto Parts..................................20 FASTLIGN® ..........................................23 Flemington Audi ....................................5 Flemington Group..................................IBC Fred Beans Parts ..................................27 Future Cure ..........................................18 Grand Prix Subaru ................................55
Glen Toyota ..........................................OBC Hyundai Group ......................................37 JMK BMW ............................................21 JMK Saab/JMK Fiat ..............................51 Klean Frame..........................................58 Levittown Ford ......................................55 Maxon Mazda........................................42 Maxon Hyundai......................................39 Mazda Group ........................................50 Mercedes-Benz of Freehold ..................10 MINI Group............................................47 MINI of Manhattan ................................60 Mitsubishi Group ..................................43 Mopar Group ........................................25 NORTHEAST® 2016 ............................62 NUCAR..................................................14-15 Paul Miller Audi ....................................26 Porsche Group ......................................45
PPG ......................................................3 PPGMS ................................................44 Prestige Motors ....................................40 Princeton BMW ....................................13 Princeton MINI ......................................19 Smart Witness ......................................11 Subaru Group........................................31 Town Motors ........................................41 Toyota Group ........................................35 Toyota of Hackensack ............................IFC Tri-State Luxury Collection ....................8-9 Valtek....................................................59 VIP Honda ............................................46 VW Group ............................................56 Westbury Jeep Chrysler Dodge Ram SRT...54 Wheel Collision Center ..........................59
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www.aaspnjnortheast.com 62 | New Jersey Automotive | October 2015