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Plus: Chip Foose Appearance Leads NORTHEAST速 Buzz - Pg. 51 TM
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)
January 2014 $5.95
A FINGER ON THE
PULSE
State Associations Share Successes, Challenges in Industry Roundtable
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 / tgp22@verizon.net
BOARD Greg Dwyer Greg & Sons Auto Service 973-696-2548 / greg2sons@aol.com
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
VOLUME 44, NUMBER 1
CONTENTS 8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE 14 EXECUTIVE DIRECTOR’S MESSAGE 18 COLLISION CHAIRMAN’S MESSAGE
LOCAL UPDATE 20 22
BOARD ALLIED Joe Amato The Amato Agency 732-530-6740 / joesr@amatoagency.com
PAST PRESIDENT ATTENDING Tom Elder Compact Kars 609-259-6373 / compactkars@aol.com
PUBLISHER Thomas Greco (tgp22@verizon.net)
Auto Body Distributing Co. Holiday Party Highlights JMK BMW Wholesale Open House Highlights Technology, OEM Parts
LEGAL FEATURE 26
by Mitch Portnoi and Douglas Sherman
Class Action Lawsuits: General Requirements
FEATURE by Joel Gausten 32
Right to Repair Issue Hits Home for Clifton Shop
VENDOR SPOTLIGHT 36
Mercedes-Benz of Freehold: The Height of Customer Care
COVER STORY 40
Anthony Trama Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com
Brian Vesley Valtek, Inc. 973-278-1444 / bdvesley@valtekinc.com
January 2014
As told to Alicia Figurelli
A Finger on the Pulse: State Associations Share Successes, Challenges in Industry Roundtable
NORTHEAST® FEATURE by Joel Gausten 51
Chip Foose Appearance Leads NORTHEAST Buzz
AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 55
Legal Update Wharton Insurance Briefs
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NJA ADVERTISERS INDEX
MANAGING EDITOR Alicia Figurelli (tgp2@verizon.net)
EDITOR Joel Gausten (tgpjoel@verizon.net) ADVERTISING DIRECTOR Norman Morano (800)991-1995 (tgp5@verizon.net) ART DIRECTOR Lea Velocci (tgp3@verizon.net)
OFFICE MANAGERS Brandi Smith (tgpbrandi@verizon.net) Sofia Cabrera (tgp4@verizon.net)
CONTRIBUTING EDITORS
Charles Bryant • Tom Greco • Jeff McDowell
Mitch Portnoi • Dave Laganella • Ron Ananian
Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 Advertising: (800) 991-1995 / FAX: (732) 280-6601
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. Cover: canstockphoto.com/Warp9
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
Happiness is a Warm Gun? by Thomas Greco, Publisher
Every once in a while, I write about a touchy subject in this column. Whenever I do, it doesn’t take very long to get a reaction from either side of the subject matter. I’ve hit on several hot-button topics over the years including political correctness, racism, bullying and coaching, to name a few. I even got some angry feedback when I criticized the Yankees and their fans. Well, after this column, I assume nothing will change. I expect to hear from both sides of what may be our most controversial topic: Guns. As I write this, it is the day after a man was shot and killed
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during a carjacking at the Short Hills mall. This comes a few months after some nutjob shot up the Garden State Mall before shooting himself. Which came almost a year after another psychopath killed all those innocent children in Newtown. I could go on. The list grows every week, it seems. And every time, we hear the outcry for more gun control followed by the predictable response about Second Amendment rights. We all know we live in an incredibly violent world today, but can we blame it all on the guns? There were no guns used in the Boston Marathon
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bombing or 9/11. On the other hand, does anyone really need a weapon that shoots thousands of rounds a minute to kill a deer or protect their home? Let me be clear about all of this: I don’t have a dog in this hunt (humorous injection pause). I am not a fan of guns; I’ve never even held one in my life. I don’t like them, but I don’t condone outlawing them either. I have no problem at all with people protecting their homes by whatever means they deem necessary. (Full disclosure: I keep two Colt LE6920 16” L.E. Carbine 20 Round Semis in my house. I’ve read the manual and know how to use them, in case anyone is thinking of robbing us.) I do know that I’m sick of all this violence. No matter what side of the fence you’re sitting on, you must realize that what we are doing to protect our children and ourselves isn’t working. How can we wake up every day and read the paper, watch TV or go online and see what is taking place and not feel some sense of worry and concern? Believe me, after John Lennon was shot, I argued for years with my dad about banning guns. Yet, I don’t believe banning guns will decrease the violence. There will always be a way to
get a gun. Or a knife. Or a bomb. Especially in the world of the Internet. So what do we do? With today’s DNA testing, video surveillance and all that cool CSI stuff, I doubt it’s that difficult anymore to catch the majority of what we used to call “red-handed” killers. I tend to think that if you catch one of these psychos “red-handed” and then put them down IMMEDIATELY (instead of years and millions wasted later in the judicial system), it might send a message to a dozen or so potential killers. I know, I know…I always hear that the death penalty is not a deterrent. That never made sense to me. Fear is an incredible deterrent. I would think that fear of death would be an even greater deterrent. We’ve tried everything else, haven’t we??? Maybe I’m wrong. I may very well be. But let me ask you this: If they took that bastard who shot up the movie theater (or any other “red-handed” murderer) into the street right now and lined him up against the wall - made it a pay-per-view with the profits going to the victims’ families - and blew him away, don’t you think we’d save some lives? I do. Because it’s not about guns. It’s about evil. These people are evil. And evil needs to be destroyed. NJA
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PRESIDENT’S MESSAGE
2014: A Year of Hope by Jeff McDowell
The past 12 months have been nothing short of tumultuous for the automotive repair industry. With micromanagement and intrusions by outside parties at an all-time high, profit margins dwindling and vehicle technology evolving at an alarming rate,
today’s repair professional could be viewing 2014 and beyond with a sense of dread. But instead, there is hope. As I read the trade press, attend industry events and speak with colleagues and affiliates both in New Jersey and across the
country, I’m seeing more and more often a group of professionals refusing to take what’s being forced upon them. They are banding together and fighting those entities that are trying to strong-arm their way into the repair process. They are choosing to embrace the technological advancements coming into the industry as opportunities for advancement. And perhaps most encouraging, they are choosing to better themselves and their industry by joining trade associations. Don’t believe that the industry is an increasingly proactive bunch? Check out this month’s cover story, where a number of association executives get candid about their goals, activities and philosophies. You’ll find a group of savvy, positive individuals who, together with their members, are working constantly to lift up the image of this industry and make it a better place for all of us, no matter what area of the country we hail from. Closer to home, AASP/NJ is excited to see what the New Year holds. We already have a great deal to be excited about, most recently the announcement that BASF will be bringing industry celebrity Chip Foose to our upcoming NORTHEAST® 2014 Automotive Services Show on March 22! We are honored to be working with BASF and all of this year’s great exhibitors to make NORTHEAST 2014 the can’t-miss regional event of the year. If you haven’t done so already, please visit www.aaspnjnorth east.com/registration.shtml to pre-register for the show for FREE! As we move into 2014, I personally wish each and every one of our readers a year full of success, happiness and health. AASP/NJ is always here for you, and we look forward to working together towards a fruitful 2014 and beyond. NJA
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AASP/NJ MEMBERSHIP PAYS! Are you getting the most value from your membership! ATTENTION AASP-NJ MEMBERS
Exclusive Programs for AASP/NJ MEMBERS ONLY • Garage Insurance Dividend Plans • Discounted Workers Compensation • Group Health & Disability • Employer — Free Programs
(For Employees — Automobile, Homeowners, Boats, Etc.)
• Retirement & Savings Plans Call The Amato Agency for more details:
800-763-6574
or visit www.amatoagency.com 4900 Rt. 33 - Ste. 103, Neptune, NJ 07753 Phone: 732-530-6740 Fax: 732-530-6727
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EXECUTIVE DIRECTOR’S MESSAGE
Winning the Invoice Game by Charles Bryant
For years now, when a collision shop discovers supplemental damages in the course of a repair after reaching an agreed price
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with an insurer to fix a damaged vehicle, many insurers have demanded the shop provide all of the invoices for the entire job.
January 2014
This has been the case even when the supplement was fairly small; invoices were required to be produced before the insurer would consider the supplement. Even though many shop owners do not feel that the insurer is entitled to these invoices, most just comply and provide the insurer with a copy of them. When the damage to the vehicle being repaired is excessive, this can present quite a bit of time-consuming administrative work, which the shop performs without compensation. It’s reasonable to think that insurers should not necessarily be privy to this information, since the repair contract exists between the vehicle owner and the repair shop, and not the insurer. However, if the shop refuses to provide the invoices, certain insurers will apply what I refer to as an undue influence and refuse to pay for the supplemental damages until the shop provides the invoices. It can become a standoff between the repair shop and the insurer, with the shop unable to go forward with the repairs until the supplement amount has been worked out. Even if the repair shop decides to take a stand and file suit to resolve the issue, everyone knows that it is not economically feasible to sue an insurer on such issues. As a result, most shops that are put in this position usually just surrender and provide the invoices, like it or not. There is no doubt that this practice has the effect of making the shop owners feel like their integrity is being questioned or that they are being treated like a thief until they prove that they have indeed put all the parts on the vehicle. The repair shop’s invoices are the shop’s internal and proprietary business documents. No insurer has the right to demand a copy of such documents. I have confirmed this with several attorneys. However, when an insurer makes such a demand and won’t take no for an answer, the repairs must be halted until the issue is resolved. Obviously, a busy collision shop can’t run a profitable business if they are constantly faced with the prospect of the repairs being halted every time this
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EXECUTIVE DIRECTOR’S MESSAGE issue arises. What amazes me is the same insurer that demands all the part invoices before they will process a supplement will often refuse to accept an invoice for the paint and materials generated from a cost accounting program/paint and material calculator. Since it is the position or the policy of the insurer that all invoices for the entire job must be produced in order for the shop to get paid for the supplemental repairs, the insurer’s policy should also apply to the paint and material invoice. The inspiration for this article came to me when I worked on this exact situation last week with a member shop. An insurer was adamantly refusing to pay the supplement being requested by the shop unless the shop owner agreed to turn over all invoices for the job. This shop owner was just as adamant that the insurer was not entitled to his invoices because he felt that they were his proprietary business documents. After giving it some thought, however, the shop owner decided that he would use this situation to his advantage. And I think it was brilliant. The shop owner contacted the insurer and said, “OK, here’s the deal. You’re refusing to pay this minor supplement unless I produce all invoices for the entire job. You have already agreed that 95 percent of the parts were required on the first estimate, yet you won’t pay for the additional five percent of supplemental parts unless I provide you with all the invoices for the entire job. Is that correct?” When the insurer replied that that was indeed correct, the shop owner laid the law down. He told the insurer that he was going to go along with the request and provide all the invoices for the entire job, even though he still did not think the insurer was entitled to his invoices. But first, he first made it clear that, upon providing all job invoices, he expected to be paid the full amount of his supplement without any further problems. The insurer agreed. Once these terms were agreed upon, the shop submitted all of his invoices, including his invoice for the paint and materials generated from a paint and material calculator. The insurer immediately informed him that they don’t accept a paint and material invoice and that they pay for the materials based on a dollar figure per paint hour. But the shop owner reminded the insurer of their deal. He made it clear that he would take whatever action
necessary, including suing the insurer for bad faith, if the insurer did not honor the terms they had agreed to in regard to turning over his invoices. And ultimately, the shop owner was paid for the paint and materials based on the invoice he had provided for the
paint and materials on the job (which was substantially more than what was being offered through the dollar-figure-per-painthour formula). This was a shrewd idea on the part of continued on pg. 60
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COLLISION CHAIRMAN’S MESSAGE
AASP/NJ Membership: More Than Just a Good Investment As we kick off 2014, AASP/NJ is starting the New Year off right with a number of new goals and strategies for success. One of our many initiatives for 2014 is to create a deeper industry-wide understanding of the benefits associated with membership in AASP/NJ. I personally feel that joining our association should be a no-brainer when considering the multitude of benefits and advantages available to repairers in contrast with a modest annual investment. For those who remain unconvinced, however, allow me to illustrate in the box below a few of the many perks you can
by Dave Langanella
expect to be privy to as an AASP/NJ member. The demands of AASP/NJ membership are minimal; a small financial investment and some of your time will yield results far beyond what you put into being a member. There has never been a better time than right now to become a part of the state’s largest association of collision and mechanical repairers. So what are you waiting for? Call Executive Director Charles Bryant at (732) 9228909 today, or visit www.aaspnj.org to learn more about how to get started.
MEMBERSHIP BENEFITS
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Representation at the Capitol. When’s the last time you had an entire day free to travel down to Trenton to spend hours in a hearing for the chance to vocalize your opinion for five minutes on an industry issue that was important to you? Or meet with your Senator to discuss, one on one, the concerns you have as a shop owner? If you’re like most of us, those free days are few and far between. But that’s where AASP/NJ comes in. We maintain a presence at the State, and are present and vocal in fighting for the issues affecting our members. Benefits, benefits, benefits. The most common excuse I hear when asking non-members why they haven’t joined is, “I’d love to, but I really don’t have the money right now.” I beg to differ. The savings – and revenue! – available through AASP/NJ pay for your dues many times over.
Your very own trade show. AASP/NJ’s NORTHEAST® Automotive Services Show is over 100 exhibitors and thousands of attendees strong and growing by leaps and bounds every year. Our flagship event, much like the association itself, has been created by repairers, for repairers. If there’s a vendor you use or would like to learn more about, or a topic you want to get more information on, chances are you will find whatever you’re looking for right at NORTHEAST. The personal touch. Need advice on an insurer problem? AASP/NJ’s Hot Line, run by Executive Director Charles Bryant, is your literal sounding board to voice your troubles and get valuable industry advice. Need information on hiring an employee, or perhaps finding more gainful employment yourself? AASP/NJ’s Labor Pool can help. Need assistance in license compliance, state regulations, legal or technical information? We can help there, too. And don’t forget the countless colleagues you’ll meet as a member, some of whom will turn into lifelong friends. You may learn more before and after an industry event by simply talking to the members around you; you, and they, are the true experts in the industry, and sometimes just communicating with each other can open up doors of opportunity for everyone. But how else will you ever get in a room with these experienced individuals if you don’t go to AASP/NJ meetings?
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2013 ABD HOLIDAY December 5, 2013
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PARTY HIGHLIGHTS Galloping Hill Caterers, Union, NJ
Auto Body Distributing Co. would like to extend special thanks to this year’s generous prize sponsors! Acme Nissan All American Auto Salvage All American Ford/Subaru Auto Body Jobbers Bell Mitsubishi Clinton Acura Clinton Honda (Flemington) Ditschman Ford Douglas Auto Group Dover Dodge Flemington Dealer Group: Flemington Audi/Porsche/VW
Flemington BMW Flemington Chrysler Flemington GM Flemington Infiniti Flemington Nissan Flemington Subaru Franklin Sussex Group 1/Freehold Mercedes & Volkswagen Intercar Mercedes Landrover of Paramus Lusid/Genstar/Genrock Refinish
Madison Jaguar Maxon Hyundai & Mazda Medco Tool Mike Kaufmann Dealer Group Mini of Manhattan Nucar Connection Open Road Acura Prestige Mercedes Princeton Land Rover Sussex Honda Toyota of Morristown Valspar/DeBeer Refinish
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LOCAL UPDATE Photo courtesy of Mike Kaufmann
JMK BMW Wholesale Open House Highlights Vehicle Technology, OEM Parts On October 9, collision repair professionals from all over the Garden State gathered for JMK BMW’s Annual Wholesale Open House. The event, sponsored by BMW of North America and hosted by JMK’s Springfield, NJ-based wholesale parts department, featured informative presentations on collision repair technology and BMW original equipment manufacturer (OEM) parts performance by BMW Body and Paint Technical Specialist Kenny Tran, Brand Protection Manager Melissa Costa and Chemical Sales Manager Joshua Weinbaum. The BMW of North America team of experts, led by BMW N.A. Regional Aftersales Development Manager Jeannette Remington and Eastern Region Wholesale/Body & Paint Manager Andy Perna, provided an in-depth look at some of the latest innovations coming from the auto maker, as well as advanced collision technologies including aluminum repair best practices, fraud protection on parts, various safety measures and more. An actual vehicle containing some of
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Together with JMK BMW Parts & Accessories Center Manager Pedro Santos (far right), the BMW of North America team of experts provided attendees of the dealership’s 2013 Wholesale Open House with an in-depth look at some up and coming BMW technologies.
these breakthrough technologies was on display for attendees. “We look forward to our annual Open House event basically yearround,” explains JMK BMW Parts & Accessories Center Manager Pedro Santos, who helps coordinate the event every year. “It’s a terrific opportunity for our customers and supporters to network with each other, and for members of the JMK wholesale parts department to meet with the shops they talk to year-round face to face. And BMW of North America always does a great job of sharing information and news with those in attendance. It’s a total win-win.” For more information on JMK BMW, please visit www.jmk bmw.com. To learn more about BMW of North America, please visit www.bmwusa.com. NJA
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LEGAL FEATURE
by Mitchell H. Portnoi and Douglas Sherman, Post, Polak, Goodsell, MacNeill & Strauchler
Class Action Cases: General Requirements While the general thought these days is that class actions are a dime a dozen and every simple wrong can be fixed by filing a class case against a large company, this belief is inaccurate. There are a number of very specific requirements to the filing of a class action case, and these are reviewed by a judge before a jury even gets a whiff of a class action case (which, by the way, is very rare. Jury involvement in class cases is quite infrequent). All class cases must be brought by class representatives who actually represent all other persons similarly situated and whose joinder in the action is impractical because the class is so numerous. There must be common questions of law or fact common to the members of the class that “predominate” over questions of law or fact that affect only individual members. Additionally, the claims of the class representatives must be substantially similar to (and typical of) the claims of the entire class. The class representatives’ claims are typical of the claims of the class because they are based on the same legal and remedial theories.
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Additionally, the class representatives must be able to fairly and adequately protect the interests of the class in the prosecution of the action as well as the administration of all matters related to the claim. They must have retained class attorneys experienced in the prosecution of complex litigation in general and class actions in particular. Finally, the maintenance of a class action case must be superior to all other means of possible adjudication in achieving a fair and efficient result. While these requirements somewhat overlap, it is my experience that judges will look at each of these requirements individually and will throw out a case if any requirement alone is not met. Certainly, class actions are not favored by the judiciary system and there has been quite a bit of controversy lately over the usefulness and propriety of class actions. I personally believe the landscape is changing and time will tell the direction that class action litigation will be following in the coming years. NJA
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FEATURE
Right to Repair Issue Hits Home for Clifton Shop by Joel Gausten ne of the industry’s most vocal supporters of Right to Repair legislation, Krehel recently experienced a situation at his business, Krehel Automotive Repair in Clifton, that underscores the desperate need for non-dealer facilities to have greater access to repair information. Last fall, Krehel’s crew encountered an issue when they went to scan a customer’s Mack truck. “We tried to scan it, but couldn’t,” Krehel recalls. “We realize we needed the factory software, so we called up the manufacturer and obtained the name of a place that would sell it to us. The dealer told us it would be two or three days, which turned into a week.” Unfortunately, things only became worse once the shop actually received the requested software. “We put the CD into the laptop, and lo and behold we couldn’t figure out how to use it,” he recalls. “It was so user unfriendly and in need of directions that the technicians couldn’t use it. We came to the conclusion that we couldn’t go forward without instruction.”
According to Krehel, he contacted the dealer that sold him the software – only to be told that the product no longer included instructional software. Although Krehel was eventually able to borrow usable software from a friendly shop in Paterson, the damage had been done. “By the time we got it, the vehicle had been taken out because the customer was frustrated,” Krehel says. “We paid $500 for the software and we ticked off a customer. We were doing our due diligence; we were moving as quickly as we could. We paid for the software and probably another $300 in salaries to have my guys try to use the product. There was just too much of a piece missing. “It was as bad as it gets,” he continues. “We lost hundreds of dollars in wages trying to use a piece of equipment, we paid $500 for the software and we didn’t get to use and bill for it once. To sell a product that needs an instruction manual and to not include it is mind-boggling. It was a very bitter experience…Where else can you buy a product that they don’t want to sell you and have it improperly supported? This is why we need Right to Repair [legislation].”
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If anyone needs proof that Right to Repair is needed in New Jersey, all he or she has to do is have a chat with AASP/NJ Mechanical Chairman Keith Krehel. Stuck with an expensive purchase and a lost customer, Krehel believes now more than ever that Right to Repair legislation is required to bring better cohesion to the information available to independent repair businesses. “There’s no standardization of formats,” he opines. “It’s not like you just pick this [software] up and run with it; you have to pick up the program, acquaint yourself with it and then you can run with it. That’s no easy task; that’s not a five-minute thing.” Additionally, Krehel feels that obtaining products to help him and other truck professionals better navigate challenging repairs should always be an easy – and local – process. “We should be able to call up the local dealer, and they should be willing to sell [products and information] to us,” he offers. “Instead, we’re calling Texas trying to get dealers to sell it to us. At that point, there’s no personal touch. If the dealer messes around, it doesn’t matter because there’s no recourse.” The area Mack dealer that sold the software to Krehel did not respond to New Jersey Automotive’s inquiries at press time. On November 18, the Consumer Affairs Committee of the New Jersey State Legislature approved the Motor Vehicle Owners’ Right to Repair Act (Assembly Bill 352) with a 3-to-1 vote in favor of the legislation. The Act, introduced in January 2013, would require auto manufacturers to provide access to any information necessary to “diagnose, service, activate, certify or install” any motor vehicle equipment, beginning with model year 2018. On December 19, the New Jersey State Assembly approved bill A4336, the Motor Vehicle Owners’ Right to Repair Act. The bill had bipartisan support and received significantly more votes than in previous sessions. New Jersey Automotive will provide updates on this legislation as it progresses NJA
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VENDOR SPOTLIGHT
Mercedes-Benz of Freehold: The Height of Customer Care One of only 66 Mercedes-Benz Certified PartsPro Dealerships in the United States, Mercedes-Benz of Freehold has established a longstanding reputation for outstanding service to new and existing customers. The New Jersey automotive institution has grown in the industry thanks to a commitment to providing only the best parts at the right prices. Since March 2013, the dealership’s extensive wholesale department has thrived under the guidance of parts industry veteran Tom Hoesly. Previously with Contemporary Motor Cars, Hoesly works with his nine-person crew to maintain the department’s standing as one of the most reliable parts providers in the region. “We have a great group of professionals here who are very knowledgeable and very personable,” he says. “We do whatever the customer needs to stay happy. We can go to a shop and help them out, or have them bring a car here so we can help them diagnose something. We’re willing to match somebody’s discount. Our customers are not just people giving us money; we treat our customers as friends, and we want to help them out.” A Mercedes-Benz parts professional since 1988, Hoesly has spent the last 13 years in a managerial position with the brand. In
his mind, the manufacturer’s ongoing success in the marketplace stems from their willingness to go above and beyond in serving vehicle owners and wholesale parts clients alike. “They are willing to do whatever they need to retain their customers,” he says. “Their return policies are still better than most in the business. If a shop ends up not needing something, we’re not stuck with a part on the shelf for a long time. They realize that wholesale business is just as important as the [dealer] shop business.” Housing a $450,000 in-house inventory and boasting a 90-percent fill rate from stock, Mercedes-Benz of Freehold averages $180,000 to $200,000 a month in wholesale sales. Currently serving New Jersey, New York, Staten Island, Long Island and parts of Pennsylvania, the department has four full-time drivers and offers “hot shot deliveries” when customers feel a heavy time crunch. “If somebody needs something right away and we don’t have a driver handy, we’ll have one of our counterpeople take care of it,” Hoesly says.
Above: Mercedes-Benz of Freehold counterpeople (L to R): Ken Dennsion, Danny Bruno, Dan Rowley, Ed Small and Gilbert Hernandez. Right: Mercedes-Benz of Freehold drivers (L to R): Joe Reisinger, Pete Suppa, Mike Faccone and Chris Machado.
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COVER STORY
A FINGER ON THE
PULSE State Associations Share Successes, Challenges in Industry Roundtable As told to Alicia Figurelli
The value derived from being part of an industry association is indisputable. Membership in a trade group can bring critical information, professional camradarie and access to the latest industry updates to shop owners’ fingertips, while keeping them both relevant and successful in a constantly changing landscape. For many industry professionals, association membership is part of what makes him or her a great businessperson.
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But what makes the leading associations across the country tick? What are their goals, both for their individual memberships and the industry as a whole? Recently, New Jersey Automotive sat down with several state associations from across the nation to learn just that. Join us for an invigorating dialogue on each group’s commitment to their membership, their drive toward future endeavors and philosophies on the collision repair trade in general.
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THE PLAYERS: Representing the Alliance of Automotive Service Providers of New Jersey (AASP/NJ): Jeff McDowell, president Representing the Alliance of Automotive Service Providers of Massachusetts (AASP/MA): Paul Hendricks, president Representing the Alliance of Automotive Service Providers of Minnesota (AASP-MN): Judell Anderson, AAM, CAE, executive director Representing the Wisconsin Auto Collision Technicians Association Ltd. (WACTAL): Art Krolikowski, president; Larry Terrien, vice president; Ronnie Goss, secretary Representing the Washington Metropolitan Auto Body Association (WMABA): Don Beaver, president
How would you sum up the automotive repair industry during the past year? AASP/NJ: Over the past year, I’ve seen the auto repair industry face a number of challenges and changes to the way they do business. And yet, I see them continuing to stand strong, and invoking positive change nationwide.
AASP/MA: There are several items that have been sweeping themes throughout the industry over the past year. First, technology: The cars do everything but fill their own tanks these days! As a whole, the vehicles are changing so rapidly, and we are facing a shortage of help to fix them. Over the past year, we’ve also noticed an increasing number of shops seeking legal advice in order to get properly compensated for the work they do. This is something we never even thought of! Shops are starting to get to a breaking point. In addition to seeking legal advice, there are many businesses out there that are becoming more and more vocal in their opposition to the DRP model, as insurance companies try to become more heavily involved in the repair process. Many shops are starting to realize that, in some cases, they are running their business for another industry altogether.
AASP-MN: The previous year was really a great time for us as an association and for our members. The shops have stayed consistently busy throughout the year. AASP-MN enjoyed legislative success, great attendance at events, a 94-percent retention rate and will end the year with membership growth of more than five percent.
WACTAL: In general, we have found that as 2013 drew to a close, sales are roughly the same; however, profits among members were down a bit.
WMABA: Over the past 12 months, I’ve witnessed the automotive repair industry becoming an increasingly worrisome place. Our members are facing shrinking profit margins combined with constantly changing vehicle technology and mounting insurer pressure to use aftermarket, used or reconditioned parts on new vehicles, not to mention pressure to perform repair processes that they don’t necessarily agree with. I would say the term ‘worrisome’ is an accurate one.
What are the issues that you feel could have a major impact on the industry in 2014 and beyond? AASP/NJ: Insurer-mandated parts procurement is, of course, a huge issue for all areas of the repair industry, from the small shops to the huge dealership parts departments. If platforms like PartsTrader become the norm in the industry, everything about the way we perform repairs will change. Vehicle technology continues to be a very important issue to watch, as well. Safety features like collision avoidance, for example, are intricately technical and will require new processes, skills and equipment to repair properly and safely. Repairers will need to work on these cars in a much more interactive way than they have in the past. AASP/MA: I see repair standards taking center stage in the near and long-term future for our industry. It’s a crucial topic, plain and simple; we need to be repairing these cars properly. The manufacturer-approved standards do exist, and we can get our hands on them. The major repair associations are in agreement that this should be a priority. Increasing vehicle technology and the necessary certifications to handle them will become a huge issue in the future, as the Mom and Pops who cannot or will not evolve begin to be phased out of business, and those who do make the financial and time investments take their place. Sadly, the small shops will not all have the resources to make these repairs, or even to attend training or purchase the equipment necessary to do so.
AASP-MN: Insurers continue to come up with new and evermore intrusive ways to micromanage the repair process and business operations of the shops. It is certainly an issue for our members currently, and I don’t see it changing in the near future. As an industry, it’s imperative that we remain vigilant
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COVER STORY and stand our ground. Secondly, advancements in vehicle technology will continue to be an ongoing challenge for our members, as well.
WACTAL: PartsTrader and insurer-mandated parts procurement programs are by far the most controversial issues affecting the industry. The practices of insurers not following [and not paying for] P-Page procedures and recognized and recommended repair procedures affect our members now and into the future, as well. Additionally, the Affordable Care Act (ACA) and its impact on businesses and individuals is a concern for everyone, not just those in the collision repair industry.
WMABA: Two issues that WMABA feels will affect the industry majorly in the immediate and long-term future are education and insurer mandates. The need for continuous high-quality training should already be a priority for automotive repairers. As the technology continues to evolve on these vehicles, those who do not make the commitment to better themselves through industry training will quickly be left behind. Of course, insurer mandates also stand to have a huge impact on the entire auto repair supply chain, as well. PartsTrader, for example, has already forced its way into numerous markets in spite of mostly negative feedback from those using it, and it’s only a matter of time before other insurers follow suit and implement their own similar platforms mandating the use of specific suppliers for parts, paint, materials, you name it.
What is your association’s position on the concept of insurermandated parts procurement [i.e., PartsTrader, etc.]? AASP/NJ: We find insurer-mandated parts procurement platforms, PartsTrader or otherwise, 100-percent unacceptable in any form.
AASP/MA: Quite simply, we are 100 percent against insurermandated procurement programs. The concept of having an insurer forcing you to buy anything from one specific location or vendor is so completely against anti-trust regulations already in place. It hasn’t hit home yet in Massachusetts, but we would be kidding ourselves to think that it won’t. In terms of PartsTrader in particular, I have not heard any positive feedback on the program from anyone other than the insurer itself. I believe PartsTrader is just the beginning – the insurers are attempting to interfere with every aspect of our business. State Farm isn’t the only one trying this by a long shot. They’re all trying their hand in controlling our industry, and nobody should be able to tell a shop where to buy their parts, their paint, anything.
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AASP-MN: We are adamantly opposed to PartsTrader and any insurer-mandated program in general. AASP-MN is presently working on enforcement of legislation already in place in Minnesota that would prevent PartsTrader from being mandated in our area, as it restricts market options for parts procurement. We are fighting to make sure that PartsTrader and any similar programs are not allowed to be required in Minnesota.
WACTAL: The Wisconsin Auto Collision Technicians Association Ltd. [WACTAL] urges shops to think seriously of the impact on their business, their future in the collision repair industry and the industry as a whole when considering State Farm’s PartsTrader program. Contracts should benefit all parties that agree to the terms within. Contracts with insurers have created oppression and control upon our industry and have also caused some to lose sight of the real customer: The vehicle owner. The PartsTrader program is another example of insurance companies trying to force their way into the process of repairing the customer’s vehicle. Insurers should not be involved in any way with the parts purchasing process, nor any other part of the collision repair process. State Farm says PartsTrader will be a ‘win-win’ for the collision shop, the parts supplier, the customer and the insurance company, yet there’s no win for collision repairers, parts suppliers or consumers. WACTAL believes that the PartsTrader program will increase cycle time, increase administrative costs, decrease supplier participation and create oppression and control on our industry. Therefore, the WACTAL Board of Directors goes on record opposing State Farm and PartsTrader practices. WMABA: WMABA’s opinion of insurer-mandated parts procurement is that it is an absolute nightmare, from both a consumer and collision repairer standpoint. Mandating the use of a particular product, service or system removes the ability of a shop to be flexible and fluid during the repair process, and saddles them with unnecessary, unwanted and cumbersome processes. PartsTrader in particular increases cycle time, reduces profits for the collision shop and creates administrative bottlenecks. There are many good part procurement programs out there that do expedite the repair parts ordering process; PartsTrader is not one of them.
How active is your association in the political/regulatory arena? AASP/NJ: AASP/NJ has a good presence at the Capitol in both the Assembly and the Senate, with various successes over the years. Most recently, the association was instrumental in preventing mobile repair shops from entering the state, which could have had a hugely negative impact on the collision repair industry in New Jersey.
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AASP/MA: We have become very active in the Legislature thanks in part to aligning with Lynch Associates. Lynch, who provides lobbying, administrative and consulting services to our association- as well as the leadership of Executive Director Jillian Zywien - has many great contacts on Beacon Hill, and has facilitated some great meetings for us in recent months with Insurance Commissioner Joseph Murphy and the Commonwealth Auto Reinsurers group [CAR] to voice our concerns and initiatives as an association. We’ve never had an audience with entities like this before, and regardless of the outcome, we are very excited to be in the room having these discussions. We are moving forward in the legislative arena, with experienced people backing our goals.
AASP-MN: We are extremely active legislatively. We have a great lobbyist in place who has worked with AASP-MN for many years, and is in tune with our association’s goals and needs. We’ve experienced a number of successes in the legislative arena and will continue to work in both the legislative and regulatory sectors to protect and advance the interest of our members.
WACTAL: WACTAL has and continues to address appropriate industry issues through the legislative process. Other issues and concerns are addressed with state agencies such as the Office of the Commissioner of Insurance, Department of Agriculture, Trade and Consumer Protection, Department of Natural Resources and Workers Compensation Rating Bureau. Currently, there is a bill pending in the state assembly that clearly states that a consumer has the right to select the motor vehicle repair facility of his or her choice.
WMABA: Our association is very active in the legislative arena, in both Maryland and Virginia. Without tipping our hand, I’ll just say that there are some good things in the works and when the time comes, we will need the support and voices of our members to jump in feet-first with us.
Reaching out to consumers is always an important goal for any auto body association. What are some ways you better inform the motoring public of their choices and rights during the repair process? AASP/NJ: As an association, I feel this is an area where we could improve. I don’t think we do as good of a job of giving information to the motoring public as we should. However, where we do excel is in distributing information to our Board of Directors and members through our magazine, our trade show and various trainings and meetings. This helps our members share the information with their customers and be individual advocates for their consumers’ rights.
AASP/MA: I don’t think we reach out to consumers as well as we should, but we are working on improving that. Our website, www.aaspma.org, is very consumer-friendly, and provides some great facts and tips to help spread information to both shops and drivers alike. Years ago, we did do a consumertargeted marketing campaign in local newspapers and on radio stations, informing the public about the importance of choosing a repair shop. We would love to start that up again in the future to help increase our community outreach.
AASP-MN: AASP-MN has information available on our website for both repairers and consumers, but it is not presently an association priority to reach out directly to consumers. The shops are the ones seeing motorists on a daily basis, and are in a better position to share and spread information. So, our strategy is to provide our members with various tools to help them educate and inform their customers about their rights in the claims-handling and repair process.
WACTAL: WACTAL has a ‘Motorists’ Bill of Rights’ brochure in place to better communicate with the motoring public. The brochure takes time to personally explain consumer rights and choices to each and every customer.
WMABA: WMABA is committed to consumer awareness. Our recently revamped website, www.wmaba.com, is a great source for consumer information. We are also taking advantage of the recent social media explosion over the past few years, and communicate with our members and the motoring public in our area through our Facebook, Twitter and YouTube pages. We encourage WMABA members and the customers who go in and out of our shops every day to ‘like’ us and share our pages for real-time updates on WMABA activities and announcements.
When you “talk shop” with members, what topics come up the most? AASP/NJ: I’ve been talking about this industry for 50 years, and after five decades I still hear the same topics coming up over and over again when talking with shops locally or nationally: Steering and Labor Rate suppression. The intricacies of the issues may change over the years, but those are still the two biggest issues after all these years.
AASP/MA: The topics of conversation are frequently the same: Aftermarket parts, Labor Rate suppression and the lack of quality help are the concerns I hear being voiced by our members most often. Lately, many have been having problems with the “prevailing rate” being told to them by various insurers. If you deal with four insurance companies, for example, you might be given four different figures of what the
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COVER STORY prevailing rate – or in other words, the rate the particular insurer is willing to pay the shop – is in the area. It can be incredibly frustrating.
AASP-MN: We actually just conducted a member survey to get a better sense of the issues affecting shops throughout the state. The top responses were insurer control, finding quality help and keeping up with vehicle technology.
WACTAL: It goes without saying: PartsTrader is by far the most discussed topic. Of course, dealing with insurance companies in general – not paying for certain items, suppression of labor and material rates, etc. – continues to be brought up by our members.
WMABA: In recent months, I’d have to say that the most common topic of discussion has been PartsTrader, but even with so much discussion on insurer mandates, there is always short-pays and no-pays by insurers as a close runner-up. Additional topics of concern are the failure of insurers to recognize repair requirements and procedures and insurers’ attempts to take repair decisions away from the facilities, who are not only the real experts in the repair situation, but also the ones who will ultimately be on the hook in terms of liability.
What do you think motivates an automotive repairer? AASP/NJ: Personally, the creative process involved in performing a quality repair is what motivates me. I am still fascinated by the finished product and the art of taking something damaged and bringing it back to its former condition. I think that’s probably true for many repairers out there. From a business standpoint, sure, there are some guys in it just for the money. But if you’re a smaller shop like me – and there are many of us – people in our situations aren’t just in it for the profits. It’s an art.
AASP/MA: I think what motivates many of our members is the challenge and the thrill of a job well done. There is a passion and satisfaction in looking at where you started compared to where you end up on a job. That’s what our drive is – as well as the independence of running our own businesses and making our customers whole again.
AASP-MN: Most AASP-MN members are ‘car guys.’ Not only do they love the actual work of restoring a vehicle and returning it safely to the road for years to come, but they also get great pleasure from creating happy and satisfied customers in the process.
WACTAL: From a shop owner’s prospective, the motivation exists in helping people in a time of need. There’s nothing that
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can replace the look of gratitude on customers' faces when they see their vehicle for the first time after repairs. Something that motivates technicians is producing good quality work, and having a clean, well-equipped facility in which to produce that quality repair. Availability of training, good pay and benefits are always driving factors, too.
WMABA: For many, many years, I thought what motivated collision repairers was the love of what we do, the challenge of taking a wrecked vehicle and repairing it to the point of ‘like it never even happened.’ These days, I’m not so sure. I know that, for me, I do what I do after all these years and experiences because I love this industry, and it’s been good to my family and me. I see some shops that give the impression of it being all about the money, and it’s certainly a big part of it for me, too…but it can’t be all about the money. Safety and quality have to always come first, and can never be compromised. At the end of the day, you have to be passionate about what you do.
With the educational system emphasizing college for all students, where do you think the next generation of automotive repairers will come from? AASP/NJ: It’s a sad commentary on the country and our youth, but I feel that eventually, new generations of trade labor are going to have to come from outsourced countries. Don’t get me wrong; the trades are still alive out there, but skilled labor is getting harder and harder to come by. And unfortunately, some of the people coming out of the trade schools are not willing to work as hard or develop the varied skill set that you need to succeed in today’s industry. And many are not willing to start at the bottom of the totem pole. We can’t pay these people what they’d like to be making out of the gate. There are hard-working, eager young people out there; we just have to make a greater effort to find them, and to show them that this is a great industry for a career.
AASP/MA: Getting ‘fresh blood’ into this industry is always going to be an issue. There will always be some who continue because they love working with their hands, or love tinkering with a car, and there will always be a few who are interested in working their way up the ranks to finally own their own shop one day. But the schools – and we as an industry, for that matter – really need to do a better job of promoting this trade as a great place for our students to work. Schools have talented, malleable kids going through their programs, and they don’t always do a great job of placement for these students after graduation, or of establishing cooperative programs while they’re still in the school. So these kids graduate and are left out there, with little to no guidance on how to succeed, and they end up working in another industry to get by. It’s on
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us, too – we’re the ones who need skilled help the most. We need to be fostering relationships with the schools - maybe opening up our doors to current students and going to speak at a Career Day – to keep this industry going.
AASP-MN: The next generation of automotive repairers will come from the same place they have always come from – young people who have an interest and passion for all things automotive. Although their numbers may be fewer, there are definitely young people out there in trade schools who see the potential for someday being in business for themselves. And while they may not be coming to our industry immediately for example, some may initially go the college route but join the industry later in life - we feel that they will ultimately find their way here because of their passion.
WACTAL: First of all, we don’t necessarily agree that our educational system emphasizes college for all students. Wisconsin has a very strong technical college system, which has done an excellent job of supplying technicians to all of the trades for many years. Our next technicians must come from the technical schools. We need to find quality people from the high schools to enroll in these programs, and that’s not a simple thing. Look at what you pay to have someone come in and repair your computer – they come in with a laptop and backpack and charge a minimum of $95 per hour. Now, take a look at the equipment a shop must have [spray booth, frame rack, etc.] and the tools a technician must possess. Compare that against the shop door rate and technician hourly wage. You get the picture.
WMABA: I don’t know what the college attrition rate is, but I think that is where we need to work on getting the new faces of our industry: Redirecting those kids toward tech schools, apprentice programs and mentoring. Collision repair really is a tough business, and with the technology advancing the way it is, we’re going to need these younger kids who live by smartphones, computers and tablets. We need to get into these high schools earlier than we currently do, and show the students that there are options out there for people who work with their hands, and that they may be more valuable than they thought possible by going into collision repair.
Why should an automotive repairer join your association? AASP/NJ: A repairer should join AASP/NJ to not be alone in this industry, and to gain valuable support, representation, education and information. The people you will meet by being a part of our association are truly second to none, and is just one of many huge perks of being part of AASP/NJ.
AASP/MA: Repairers should become a part of AASP/MA because there is strength in numbers. If you have a problem, you’ll get the help you need as part of the association, whether through our lobbying efforts or in the training opportunities we provide. And for me, the best part of membership is the people. You will meet so many great people, and in networking with shop owners like you, you’ll learn the important truth that, in spite of how you feel or what outside parties may tell you, you are not the only one. You may not realize that the issues you’re dealing with are also being experienced by a neighboring member shop, or that perhaps a solution to your problem already exists. But until you get out there and start communicating with your peers, you won’t have your finger fully on the pulse of the industry without membership in AASP/MA. We offer great training, a terrific benefit package, legal representation and top-notch communication between our magazine and website. And as part of AASP National, you are privy to more contacts and benefits. You probably can go it alone, but you shouldn’t have to. The leaders of our industry are involved in trade associations; that’s not a coincidence.
AASP-MN: Joining AASP-MN provides repairers with a collective voice to help enact change, as well as exclusive access to industry information, news, savings and training that they simply cannot get elsewhere. Our members have the benefit of being informed, educated and in the company of many likeminded, intelligent automotive repair professionals with whom they can communicate and share ideas.
WACTAL: Whenever the question of, ‘What will the association do for me?’ is asked, our answer is always the same: Whatever you want us to! WACTAL is run by the members, for the members. The WACTAL directors are not paid for their time, nor reimbursed for out-of-pocket expenses to attend meetings. They do what they do because they care about the industry and their own business. The association is only as good as you make it. The industry has many issues to deal with today, and many of these can only be dealt with through solidarity. There is strength in numbers and we need to keep all shops involved in the issues.
WMABA: All too often when talking to repairers, I hear their frustrations: ‘Why did this happen?’ ‘Why won’t this insurer pay me for this or that?’ ‘Why aren’t I making any money?’ ‘How am I supposed to compete?’ ‘Who can I talk to about changing this industry?’ WMABA is in place to not only answer those questions, but to actively help change the industry for the better. We provide a voice and outlet for collision repair professionals, as well as support wherever and whenever they need it. NJA
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Platinum Show Sponsor
MEET TV STAR CHIP FOOSE at NORTHEAST! Sat., March 22 10am - 2pm*
FRIDAY, MARCH 21 5PM-10PM SATURDAY, MARCH 22 10AM-5PM SUNDAY, MARCH 23 10AM-3PM
NORTHEAST 2014 features industryleading exhibitors, top-notch training and informational updates for the repair community, all centrally located at the Meadowlands Exposition Center in Secaucus, NJ 6,000 FREE PARKING spaces available!
Online pre-registration for NORTHEAST速 2014 is open! See you at the show! www.aaspnjnortheast.com
NORTHEAST 2014 is proudly presented by
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*Photos and autographs will end promptly at 2pm. Sorry, no exceptions.
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NORTHEAST® FEATURE
Chip Foose Appearance Leads
NORTHEAST Buzz n March 21-23, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) will host the 37th Annual NORTHEAST Automotive Services Show at the Meadowlands Exposition Center in Secaucus, NJ. With excitement over the show building by the day, a slew of longtime AASP/NJ supporters are working hard to move this legendary event into a thrilling new era. First, AASP/NJ is pleased to announce that BASF will once again serve as this year’s NORTHEAST Platinum sponsor. “We look at AASP/NJ as the core of the industry in New Jersey,” says BASF Regional Sales Manager Roy Griep. “It’s very important to support it, and we appreciate being able to take part in these types of events and support the people who support the entire auto body industry. That’s why we’ve continued to stay involved in the show throughout the years.” Perhaps BASF’s biggest contribution to this
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Longtime NORTHEAST sponsors BASF (left) will welcome automotive TV personality Chip Foose (above) as a special guest at this year's show.
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NORTHEAST® FEATURE year’s festivities is that they have made arrangements to have automotive TV star Chip Foose (Overhaulin’) make a special appearance at NORTHEAST on Saturday, March 22. “Chip being there is definitely going to help bring people in who might not normally attend the show,” Griep says. “For us, it’s about bringing more people to the show
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and exposing them to other companies involved in the industry as well. It’s all about opening the doors to different people.” Tom Smetanka, general manager of Central Paint in Trenton, is confident that Foose – whose background includes stints as a hot rod shop owner, designer and fabricator – will offer something truly unique to the NORTHEAST experience.
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“We had Chip at one of our past distributor shows with much success,” he says. “He’s a down-to-earth body shop guy. He’s somebody who the body shop guys can relate to; he doesn’t act like he’s above anyone. [Attendees] can relate to Chip because he’s one of them. He started in a body shop with his father, and he’s just developed from there.” Of course, Smetanka isn’t the only Garden State auto pro anxious to greet Foose on the NORTHEAST floor. “Chip Foose will make a fantastic addition to our schedule this year,” offers AASP/NJ President Jeff McDowell. “His guest appearance at the show will only add to the full slate of industry events and educational seminars we have planned for our 37th year. If you’re excited by the news about Chip, just wait until we unveil our complete NORTHEAST 2014 schedule in the coming weeks.” After experiencing NORTHEAST for many years as an attendee, Smetanka plans to have a booth at this year’s show in conjunction with other BASF Color Source distributors. Naturally, he is looking forward to meeting with his industry colleagues and customers in this setting. “It is the only show of its size in this area,” he says. “A lot of our body shop customers are members of AASP/NJ who obviously support the show. We go there to represent and support them as well as the organization. We see the vendors that we deal with and see the customers in the area who go to the show. It’s good to support the local effort in the trade show like that.” In addition to welcoming Foose and catching up with their friends and customers in the Northeast region, BASF will use their time at this year’s show to promote the ONYX HD Low VOC Productive System. This new offering produces low-VOC
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basecoats that are either waterborne or solvent-borne – making this the only system currently on the market that provides these options. The system offers similar benefits and performance to national rule solvent-borne basecoat systems, and meets all VOC regulations across North America. The product is easy to spray, offers enhanced de-nibbing and dries quickly under common humidity and temperature conditions compared to other systems. Several collision repair centers have tested the new system and reported significant decreases in drying times, leading to more repairs in less time – which can result in increased profits. “It’s very versatile for the shops because in the summer months, water-based [paint] doesn’t always perform the way we would like it to so we can meet our cycle times and get the cars out,” Griep explains. “This gives you the advantage to switch to a solvent-based product that’s completely compliant in all the low-VOC areas of the country to keep the production moving.” With NORTHEAST 2014 on the horizon, Griep is one of many longtime showgoers who looks back at his years on the floor with genuine fondness. “That was my first exposure to the broader scope of our industry,” he says. “Since then, I’ve looked forward to the show every year first and foremost to see old friends and colleagues. Also, I’ve always been a product-focused person, so I get to see the latest tools and equipment.” “NORTHEAST has always been much more than a trade show; it’s a chance to be with people who share your love for the industry,” adds McDowell. “Thanks to the help of BASF and our many exhibitors, we’re going to be able to offer three of the best days anyone has ever had in this industry.” NORTHEAST 2014 will feature hundreds of exhibitors showcasing the hottest
products, newest technology and most valuable industry information. For more information on NORTHEAST 2014, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show YouTube page (www.you tube.com/user/AASPNJNORTHEAST)
or on Twitter @AASPNJNORTHEAST. Free online registration is available at www.aaspnjnortheast.com/registration. shtml.
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ARANJ 2013 Officers President Norm Vachon Port Murray Auto 1st Vice President Steve Cilento Harbor Auto Recyclers 2nd Vice President Ian Szoboszlay Ocean County Auto 3rd Vice President Daryl Carmen Lentini’s Auto Past President Mike Yaeger EL & M Auto Executive Director Brian Snyder Auto Recyclers of NJ 609-714-2339 brian@aranj.org
ARANJ 2013 Board of Directors Mike Caputo Lacey Used Auto Robbie Dirkes Dirkes Auto Tony Corcione Barons Auto Wreckers Mike Ronayne Tilghmans Auto Joe Goodman Leesville Auto Marvin Leadbeater Bamber Lake Auto
ARANJ
The Automotive Recyclers Association of New Jersey
Legal Update Remedial Investigation Deadline Extension Bill
Under the Site Remediation Reform Act (SRRA), a person responsible for conducting the remediation of a contaminated site where contamination was (or should have been) identified prior to May 7, 1999 has five years from the enactment of SRRA to complete remedial investigation of the site. Since SRRA was enacted on May 7, 2009, the deadline for such sites to complete the remedial investigation is May 7, 2014. Under the present law, the New Jersey Department of Environmental Protection (DEP) is required to assume direct oversight over any site where this deadline is not met. However, identical bills have been introduced in the Senate (S3075) and the Assembly (A4543) (collectively, the “Bill”) that would provide some flexibility to persons responsible for completing the remedial investigation of these sites. Specifically, the Bill permits the DEP to grant an extension of time for completion of the remedial investigation prior to assuming direct oversight. To be eligible for the extension, an applicant must submit an application by March 7, 2013:
• A certification that a licensed site remediation professional was retained to conduct a remediation of the site prior to November 7, 2012; • A completed receptor evaluation with a demonstration satisfactory to the DEP that any immediate environmental concerns identified were addressed in accordance with the technical regulations for site remediation; • A summary of all remedial investigation activities conducted at the site; • A description of additional work necessary for the completion of the remedial investigation; • An explanation of the reason for the inability to complete the remedial investigation within the statutory timeframes; and • A schedule for the completion of the remedial investigation.
Upon receipt of a technically and administratively complete application, the Bill provides that the DEP has 45 days to notify the applicant, in writing, of its decision. The DEP may grant an extension for up to two years upon a finding that good cause exists for the extension. If an extension is granted, the DEP’s written notice to the applicant must contain the length of the extension, and the Department must provide notice of the extension in the New Jersey Register. If the person responsible for conducting the remediation still fails to complete the remedial investigation within the additional time provided, the Bill requires the DEP to undertake direct oversight of the remediation. Under direct oversight, the Department must approve all remediation submittals and the person responsible for the remediation must submit financial assurance. On December 16, the Assembly Agricultural and Natural Resources Committee released the Assembly version of the Bill with full support. At press time, the Senate Environment and Energy Committee was scheduled to have a hearing on the Senate version of the Bill on December 19. For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600. For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600. This article is for informational use only and does not constitute legal advice. Tyler & Carmeli, P.C. GEORGE J. TYLER MATTHEW J. KRANTZ 1 AAA Drive, Suite 204, Robbinsville, New Jersey 08691 (609) 631-0600 – Tel (609) 631-0651 – Fax gtyler@tcglaw.com mkrantz@tcglaw.com
Wharton Insurance Briefs An ARA Member
The New Jersey Workers Compensation Rating and Inspection Bureau released the newly promulgated rates for 2014: • Auto Dismantling rate increased to $20.95 • Auto Body Repair rate increased to $4.17 • Auto Repair rate increased to $7.23
• Clerical remained the same at .25¢ • Iron or Steel Scrap Dealer decreased to $14.09
• Salesperson decreased to .60¢ • Store: Retail Accessories (Counter Person) decreased to $5.54
PLEASE NOTE: The Store (Counterperson) code must be approved prior to use. The operation must be physically separated from salvage and parts storage, and must not have any interchange of labor.
Also, the executive officers’ annual minimum payroll is $30,680 and annual maximum payroll is $123,240. Lastly, if your insurance policy is written in the NJ State Plan, you are going to be charged an additional 17 percent (minimum) and 35 percent (maximum) for the Plan Premium Adjustment Penalty and will lose the Premium Discount. As always, if you have any questions regarding your insurance coverage, please contact us. Mario DeFilippis, AAI, Vice President, Wharton Insurance mdefilippis@whartoninsurance.com 800-221-0003 ext.1320
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Mike Lovullo
Mike Lovullo Distributor for
Announces Retirement From Motor Information Systems
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Distributor for Crash Estimating Data
After over 42 years serving the collision repair industry, Mike Lovullo has announced that he will be retiring as Motor Information Systems’ northeast NJ sales distributor. Lovullo, whose celebrated career with Motor has provided repairers with the tools and technology to receive proper compensation for over four decades, will continue to represent CompEst (a body shop estimating software program) and Micro-Mix LLC (which makes a paint and materials calculator) on a part-time basis, serving body shops in the Bergen, Essex, Hudson and Passaic counties of New Jersey. AASP/NJ and New Jersey Automotive wish Mike the best of luck in his future endeavors!
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John A. Griffin III
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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
E-Frame & Mechanical Estimating Shop Management Software for the entire state of New Jersey
Call (800) 752-2805
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EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 17 the shop owner, and it makes perfect sense. If an insurer is going to demand invoices to substantiate the cost of items, then they cannot pick and choose which invoices they want to accept. Even though I have not changed my opinion on the issue about insurers not being entitled to a shop’s invoices, if shops are going to go along with the request, I would encourage them to make it clear that the only way they are going to turn over the invoices is if the insurer agrees in advance to accept all of the invoices (including those generated from a paint and material cost accounting program. It would be interesting to hear how an insurer would explain why they would demand the invoices for part of a job and reject the invoices for another parts. We will be watching!
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VENDOR SPOTLIGHT continued from pg. 36
The dealer’s driver tracking system, Elite Extra, helps streamline deliveries and provide the parts department with better delivery ETAs and driver-tracking information than ever before. The dealer’s commitment to providing the best-quality products has led to steady efforts to combat the spread of non-OEM parts in the field. “We do a lot of price matching,” Hoesly says. “When we get an estimate and we see that [the shop] is getting something used or through a junkyard or an aftermarket supplier, we ask the shop what they are paying for it. Generally, if we come close enough, the shop is willing to absorb a little bit of the cost to get the correct parts and the correct fit.” Not surprisingly, Mercedes-Benz of Freehold’s devotion to quality hasn’t gone unnoticed by the AASP/NJ community. Compact Kars, the Clarksburg-based repair enterprise owned by former AASP/NJ President Tom Elder, is an approved repair center for the dealer. To become a Mercedes-Benz Certified PartsPro Dealership, Mercedes-Benz of Freehold had to undergo a thorough initial assessment of their wholesale business. They then underwent a year-long process of special, personalized training and a final evaluation for the certification. “That’s why out of 326 MercedesBenz Dealerships in the US right now, only about 66 are PartsPro Certified,” Hoesly says. “What that means to you is that Mercedes-Benz of Freehold is one of the most professional wholesale parts organizations you’ll find. We’re PartsPro and equipped to help you grow your business and keep your customer satisfied.” With a new year upon them, Hoesly and his staff are already looking to grow the dealer’s reach into new areas. Plans are underway to add greater storage to the second floor of the department to allow for an additional $60,000 in collision repair wholesale parts. If the wholesale department’s current figures are any indication, this addition is sure to be a hit among shops looking for the best-quality parts available for an always-expanding brand. For more information on the Mercedes-Benz of Freehold wholesale parts department, please call (888) 378-2160 or email Hoesly at thoesly@mboffree hold.com. NJA
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Acme Nissan ..............................................25 Amato Agency ............................................13 Ambit Energy ..............................................16 Audi Group ..................................................43
Axalta Coating Systems ..............................IBC
BMW Group................................................30-31 Bridgewater Acura ......................................30 Brogan GM Parts Center ............................9
Cadillac of Mahwah ....................................35 CCC One ....................................................5
Classic Audi ................................................53 Clinton Acura ..............................................60
Contemporary Motor Cars ..........................29 Cosmos ......................................................10 Crane Chevrolet ..........................................28 Crestmont Toyota ........................................27
Crestmont VW ............................................28 Empire Auto Parts........................................61 Flemington Group........................................12
Future Cure ................................................17
Glen Toyota..................................................OBC Hackettstown Honda ..................................58
Hyundai Group ............................................54 JMK BMW....................................................15 JMK Saab/JMK Fiat ....................................37
Krehel Auto ..................................................60
LKQ ............................................................24 Maxon Mazda ..............................................19 Maxon Hyundai............................................33
Mazda Group ..............................................48 Mercedes Benz of Freehold ........................37 The Mike Kaufmann Group..........................52
Mini Group ..................................................49 Mitsubishi Group ..........................................42 Mopar Group................................................6
MOTOR........................................................58
NORTHEAST® 2014 ..................................50 NU-CAR ......................................................11 Parkway Toyota............................................4
Paul Miller Audi ............................................23 Porsche Group ............................................39 PPG ............................................................3
Prestige Motors............................................8
PPGMS ........................................................26 Princeton BMW ............................................59 Princeton Mini ..............................................24
Saw Mill Auto Wreckers ..............................22
Sherwin-Williams ........................................14 Subaru Group ..............................................57 Town Audi ....................................................35 Toyota Group ..............................................38
Toyota of Hackensack..................................IFC Valtek ..........................................................62 VIP Honda....................................................34 VW Group ....................................................56 VW of Freehold ............................................27
Wheel Collision Center ................................62