New Jersey Automotive June 2014

Help FOUND: SkillsUSA Brings Tomorrow’s Workforce to YOU - pg. 36 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)

June 2014 $5.95

AASP/NJ Offers an Aluminum Repair REALITY CHECK

WHAT’S THE BIGGEST Threat to Your Business? www.grecopublishing.com

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201-487-2618

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Image©Istockphoto.com/Ibrahim Sari

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New Jersey Automotive

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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 Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net

Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com

Brian Vesley, Valtek, Inc. 973-278-1444 / bdvesley@valtekinc.com

BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

CONTENTS VOLUME 44, NUMBER 6

8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE 12 MECHANICAL CHAIRMAN’S MESSAGE

June 2014

15 AASP/NJ REGIONAL MEETINGS NOTICE 30 MEET THE BOARD 62 NJA ADVERTISERS INDEX

AASP/NJ MEETING PREVIEW 14

AASP/NJ Offers an Aluminum Repair Reality Check

LEGAL FEATURE by Mitch Portnoi 17

Diminished Value and the Rules of Evidence

COVER STORY 19

Photos by Alicia Figurelli and Frank Ingram

10th Annual Lou Scoras Memorial Golf Outing Highlights

VENDOR SPOTLIGHT 23

Haydell Industries and the Secrets Behind Nitrogen-Based Spray Systems

WHAT SAY YOU? 26

What’s the Biggest Threat to Your Business?

NATIONAL FEATURE 32

Federal Lawsuit Alleges Insurers’ Conspiracy to Control Collision Repair Costs

FEATURE by Joel Gausten 36

Help FOUND: SkillsUSA Brings Tomorrow’s Workforce to YOU

PARTSTRADER NATIONAL FEATURE 42

“A Sad Affair:” Thoughts on the PartsTrader National Rollout

NO BRAKES by Ron Ananian PUBLISHER Thomas Greco (tgp22@verizon.net) MANAGING EDITOR Alicia Figurelli (tgp2@verizon.net)

EDITOR Joel Gausten (tgpjoel@verizon.net) ADVERTISING DIRECTOR Norman Morano (800)991-1995 (tgp5@verizon.net) ART DIRECTOR Lea Velocci (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

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Flying into Oblivion

AUTOMOTIVE RECYCLERS OF NEW JERSEY 56 Legal Update

57 Wharton Insurance Briefs

The Alliance of Automotive Service Providers/New Jersey

HALL OF FAME Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest Tom Elder

Bob Everett Thomas Greco Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano

Michael Lovullo Sam Mikhail Ron Mucklow George Petrask Russ Robson Jerry Russomano George Threlfall

Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2014 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover photo by Alicia Figurelli Image Credits: Page 14: thinkstockphoto.com/NemanjaZs; thinkstockphoto.com/MeePoohyaphoto; Page 17: thinkstockphoto.com/Mike Watson Images; Page 32: thinkstockphoto.com/Feverpitched; Page 42: thinkstockphoto.com/moodboard; Page 50: thinkstockphoto.com/TimHesterPhotography

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

Block #1

by Thomas Greco, Publisher

Last weekend, I came across a documentary called, “The History of the Eagles.” The film was a three-hour look at the popular band from the ’70s that is still selling out arenas around the world. It was a fascinating look behind the scenes of one of Rock and Roll’s biggest acts.

Truth be told, I was never a big Eagles fan when they were at their height. I found them kind of boring, and the only album I had was Hotel California. (In 1978, EVERYONE had Hotel California.) But as I grew older, I began liking them more and more. My wife was always a big fan, and on

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one of our anniversaries, I surprised her with tickets to their show at the Meadowlands. I had to admit they really impressed me, in spite of hearing for years that their live shows were like listening to the record and watching a poster. Great music, incredible harmonies…and those songs! I never realized how many of them I knew.

After watching the documentary, I was driving with my daughter (who’s 20) and I asked her who she thought was bigger, the Eagles or Bruce Springsteen. She didn’t hesitate, and answered, “Bruce.” I said, “Well, you say that because he’s from

Jersey and he’s always around.” She said, “No, he’s much bigger than the Eagles. I can’t even name anyone in the group.” After my heart sank at those last words (MY daughter not knowing who’s in the Eagles???), I asked her to name some Eagles songs. “Umm, ‘Hotel California’…that’s all I know.” I said “Ok,” and took out my phone and played her “Take It Easy.” “That’s the Eagles?” I then played “One Of These Nights.” “THAT’S the Eagles?” “Life In The Fast Lane,” “Heartache Tonight,” “Best of My Love.” “Those are all Eagles songs?!”

I then asked her to name some Bruce songs. “Umm…‘Born In The USA’… ummm…” She started to laugh. Kids today!

So I played “Born To Run.” “Nope.” “Badlands.” “Don’t know that one.” “Hungry Heart.” “That sounds familiar.”

It’s hard to say which one of these acts is bigger. Based on record sales, the Eagles dwarf Bruce (100 million to 64 million).

Concert-wise, both sell out everywhere they play. Influence-wise, Bruce is cited much more than the Eagles, especially politically.

As artists, though, you really can’t go wrong with either one. If you’re smart, you will be into both. I know I am.

Back to the conversation with my daughter. Based on my little test, I asked her if she now thought the Eagles were bigger than Bruce. “I don't know,” she said, exasperated. “What’s the difference, Dad? No one’s bigger than the Beatles.”

Now that’s MY kid!

NJA

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PRESIDENT’S MESSAGE

Gearing Up for the Summer

by Jeff McDowell

As I write this message, AASP/NJ just concluded its 10th annual Lou Scoras Memorial Golf Outing. It’s hard to believe that a decade has passed since we lost Lou, but I think I speak on behalf of those closest to him when I say that I can’t think of a better way to honor his memory than a relaxing, fun day of golf with the people in this industry who cared about him the most.

Special thanks go out to all of this year’s generous sponsors, our participating players and all who came out to support this great event.

Now that we’ve closed the book on another successful Golf Outing, it’s time to focus on another important goal we have in place for members: Training. We at AASP/NJ try to make education attainable and valuable to our members. As we gear up for the summer, we’ve got a series of training opportunities set up that will prove especially applicable to shops in our area AASP/NJ member or not.

Industry speaker and New Jersey Automotive technical writer Larry Montanez will be on hand for two informative presentations - one on June 24 in Totowa, the other June 26 in Toms River - on aluminum repair practices, with an overview of how shops should change their processes in light of these new materials entering our industry.

Best of all, attendee shops will receive a certificate upon completion of this course good toward 2014 New Jersey auto body license renewal. To learn more about these eye-opening courses - and why YOU should be aware of your processes regarding aluminum repair - see page 14.

NJA

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MECHANICAL CHAIRMAN’S MESSAGE

So Much for Global Warming!

As some of you may be aware, I opened my auto/truck repair business back in October of 1982. Since that time, along with mechanical repair, I have also been involved in commercial snow

plowing. Throughout 32-plus years, my company has been involved with every winter storm.

During my years in business, I have witnessed huge differences from winter to

by Keith Krehel

winter, with every one of them having its own “personality.” Some have been mild, with relatively warm temperatures and a lot of rain. I heard these winters resulted from global warming. Other winters had brought cold temperatures accompanied with a lot of snow and ice (with no explanation as to why). Some winters have started early and ended early, while others started late and stuck around. While I am not a meteorologist, I have learned how to respond to these events as I have lived through them.

Recently, I negotiated a contract for a large plow site that wanted a “seasonal” contract. For those unfamiliar, a seasonal contract will usually include all snow plowing and de-icing built into one set price.

Bean counters (financial folks) love these contracts, as they can give some stability to cost of service. In order to arrive at a fair price that was palatable to both parties, I figured I needed to know how much snow I could expect on an “average” winter. I had subscribed to a weather service, and so I had certified snow totals for a long time. I gathered my records for the last 11 years, added the cumulative snowfall (425.7 inches) and divided by the number of years to give me an “average” snowfall of 38.7 inches per year. This number caused me to think back on my college professor, who used to say, “Statistics don’t lie, but liars do statistics”: Although the average snowfall was 38.7 inches, we have never in that time received snowfall close to that number.

The closest amount was 31.9 inches, which is well below, and 41.6 inches, which is several inches above the average. I had faith in my numbers, but decided to call my weather service to “confirm” my results and get their perspective. The weather service agreed on my recent 11-year average, but said the long-term average was considerably lower - more like 29 or 30 inches of snow. And if I had included the 20132014 winter, with 68 inches of snow, my average would be 41.1, making the short-term average even higher. So much for global warming! continued on page 59

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AASP/NJ MEETING PREVIEW

AASP/NJ OFFERS AN ALUMINUM REPAIR REALITY CHECK As vehicle manufacturers move towards aluminum as a way to adhere to greater government pressure to improve gas mileage, repairers throughout the field are working to adapt to these changes in order to take advantage of the opportunity to bring these vehicles back to pre-accident condition. But are the majority of shops truly ready to take on such advanced vehicles? According to industry presenter and New Jersey Automotive technical writer Larry Montanez (P&L Consultants), the answer to that question is a resounding no. In his travels consulting with shops across the country, Montanez has seen more than his fair share of major mistakes when it comes to the structural realignment and welding of aluminum.

“I see a lot of components getting destroyed by aluminum welding,” he reveals.

“Aluminum welding is very, very different; it takes a lot of practice and effort.

“A large percentage of shops out there can’t repair cars properly,” he adds. “That can [range] from not being able to paint the car properly to structural repairs and welding. This can be attributed to a multitude of things – insurer influence, lack of pride, lack of training, lack of spending money to

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buy proper equipment or just not caring [and that's] on steel cars.”

Fortunately, Montanez and AASP/NJ are working hard to provide shops with the tools and information they need to survive and thrive in these technologically challenging times. On June 24 and 26, the association will host Montanez for two special Aluminum Repair Training Meetings designed to give attendees a real-world glimpse of some of the crucial things they need to know in order to tackle these vehicles. The June 24 gathering will be held at the Holiday Inn in Totowa; the June 26 meeting will be hosted at the Clarion Hotel and Conference Center in Toms River. The evening seminars will provide an overview of new metals and other substrates, aluminum repair equipment requirements and unknown procedures. Attendees will receive a training certificate that will qualify for renewal of their 2014 New Jersey Auto Body License.

In order to get the absolute most out of these events, Montanez recommends that shops read his articles on the subject (including his feature in last month’s New Jersey Automotive) and check out his Repair University video on aluminum repair at

There is a huge problem plaguing this industry, and it’s about to get a whole lot worse. www.youtube.com/watch?v=nfZhoi_ygSc. Also, it’s a smart idea for any repairer truly interested in doing aluminum repair to start saving their pennies; according to Montanez, implementing a proper aluminum area to repair the 2015 Ford F-150 and similar vehicles will take “a bare minimum of $100,000.”

AASP/NJ encourages its members to attend these classes and heed the information and advice offered. In Montanez’s mind, any shop that attempts to repair aluminum without proper knowledge and training could be putting their livelihoods at considerable risk.

“Within another year or two when these [2015] Fords become popular, a good percentage of the shops will be buying back those cars – so much so that they might be out of business.”

Don’t be one of those shops. Get informed. Visit www.aaspnj.org or call (732) 922-8909 to sign up for these meetings today.

NJA

REGIONAL MEETINGS NOTICE AASP/NJ PRESENTS:

“Aluminum Repair Training Meeting” Larry Montanez of P&L Consultants will conduct an Overview/Training Seminar Covering Aluminum Repair

Learn what the future holds for you. This seminar will discuss and provide an overview of the following topics: New Metals and other Substrates, Aluminum Repair Equipment Requirements, Dispelling Myths, The Truth about Aluminum and Unknown Procedures. Attendees can expect to come away with a better understanding of what the industry will look like in the next 5 years. With more and more vehicles having aluminum construction, this is a Must Attend Meeting.

Attendees will receive a training certificate that will qualify for renewal of your 2014 New Jersey Auto Body License.

NORTHERN REGIONAL MEETING Date: June 24, 2014 Time: 6:00 PM Location: Holiday Inn - #1 Route 46, Totowa, NJ

SOUTHERN REGIONAL MEETING Date: June 26, 2014 Time: 6:00 PM Location: Clarion Hotel & Conference Center – ( formerly Quality Inn ) 815 State Route 37 West, Toms River, NJ

Food & Beverages will be Served

COST: MEMBERS: $50.00 – NON-MEMBERS: $150.00 - PRE-REGISTRATION REQUIRED!

Company_________________________________________ Phone ____________________

I/we will Attend (check one)

___ NORTHERN Meeting/June 24

___ SOUTHERN Meeting/June 26

Total Number of Member Guests_______ @ $50.00 = $______________

Total Number of Non-Member Guest _______@ $150.00 = $______________

Clearly Print Attendee Names for Certificate:_____________________________________

Seating Will Be Limited – Register Now!

TO REGISTER, return registration form with check made payable to AASP/NJ to: AASP/NJ, PO Box 734, Neptune, NJ 07753

To pay/register via fax with a credit card, fill out the information below and mail to the address above or fax to 732-922-9821.

Name on Credit Card: ____________________________________ Card #: ___________________________

Billing Address: _______________________________________ Town: ______________________________

State: ______ Zip Code: _____________

Amount to Charge: $____________

Questions: Call AASP/NJ Executive Director Charles Bryant at 732-922-8909 New Jersey Automotive

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LEGAL FEATURE by Mitch Portnoi

DIMINISHED VALUE AND THE RULES OF EVIDENCE In trying a recent “diminished value” case in Union County, I ran across an issue that spells out the entire problem with proving a diminished value case in New Jersey. While my expert pointed to years of experience in repairing and even valuing vehicles (as a used car dealer), the Judge was outwardly unimpressed with the expert’s valuation and wanted to know how he had arrived at the post-accident amount.

If the expert had referred to the numerous conversations he had with car dealership representatives, he would have heard objections as to the “hearsay” nature of his testimony - that is, he was testifying as to what someone else had told him…that is the definition of hearsay. Alternatively, had he

Diminished value experts must provide expert testimony based on more than just their years of experience and knowledge of the marketplace.

testified that his valuation was based upon years and years of experience in the sales of cars that had previously been in accidents, his knowledge of the “marketplace” and buyers in general, his opinions would have been dubbed a “net opinion” - in other words, not based on credible scientific or appropriate expert testimony - and

would arguably be excluded from the case. Therein lies the rub.

The only alternative would be to bring in a dealer who would testify (if you could get him/her in court) that a vehicle loses considerable value once a significant loss occurs to the vehicle - hence a diminished value. Another alternative

(though less practical, as a plaintiff would have to incur a substantial out-of-pocket expense/loss) is to have the client sell the vehicle. However, we would then be arguing about the bona fide nature of the sale and whether the Plaintiff got as full a value as he/she could have gotten.

The reality of the situation is that a diminished value or valuation expert must provide as much data as is available to assist the trier of fact as to the lost value of the vehicle. They must scour the Internet and local dealerships for vehicles that have been in losses and whose valuations are similarly reduced. They must provide real expert testimony based on more

continued on page 59

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AASP/NJ 10TH ANNUAL LOU SCORAS MEMORIAL

GOLF OUTING

AASP/NJ Thanks All This Year’s Sponsors: Platinum Sponsors: The Amato Agency, All American Auto Salvage, Hertz Rent-ACar, Enterprise Rent-A-Car, PPG Gold Sponsor: Thomas Greco Publishing / New Jersey Automotive

Silver Sponsor: Auto Body Distributing Co. Bronze Sponsors: Cosmo’s Ocean County Auto Wreckers, United Bank Card/ Harbortouch, Flemington Car & Truck Country

Refreshment Carts: Cosmo’s Ocean County Auto Wreckers Hole in One Sponsor: Maxon Hyundai-Mazda Lunch Sponsor: All American Auto Salvage

Dinner Sponsor: The Amato Agency

Hole Sponsors: Parkway Auto Body, Keystone/LKQ Corp., Auto Body Distributing Co., Metropolitan Car-O-Liner, NJGCA, Mike Kaufmann, Bradley Car Care, Dover Dodge-Chrysler-Jeep, Continental Auto Parts, Lakewood Toyota, East Coast Auto Body, Meadowbrook Insurance Services, Walter’s Auto Body, All American Auto Salvage, Mountain View Auto Body, First Class Auto Glass, L&M Auto Center, Hertz Rent-A-Car, Flemington Car & Truck Country, DuPont/Axalta Coating Systems, FMS Managers, USI North America Paint Booths, Albert Kemperle, Freehold Nissan, Princeton Dealer Services, Mitch Portnoi-Post, Polak Law Firm, Greco Publishing/New Jersey Automotive, Lee’s Auto Body, Meadowlands Exposition Center, Maxon Hyundai-Mazda, Norwood Auto Parts, Holmes & McDowell, StormLogix Web Design, Anthony’s Auto Body, Bloomfield Auto Body, Central Paint/Central Motor Parts, Fred Beans Subaru, Sal’s Auto Body, Norgate Technologies.

Prize Sponsors: NUCAR, Cosmo’s Ocean County Auto Wreckers, Fred Beans, Hertz Rent-A-Car, Enterprise Rent-A-Car, The Amato Agency, Maxon Hyundai-Mazda, Progressive Insurance Company, Meadowbrook Insurance Services, Collision Equipment Co., Auto Body Distributing Co., Travelers Insurance Company, Utica National Insurance Company, I-CAR, PaintEx.

Special thanks to Hertz for checking in this year’s guests and providing players with awesome gift bags, Cosmo’s for their incredibly generous door prize donation, Joe Amato and Randy Scoras for their efforts during this year’s dinner and Lee Vetland and the staff of the Colonia Country Club for making our 10th annual Lou Scoras Memorial Golf Outing an unforgettable event.

AASP/NJ acknowledges ALL of our generous sponsors and urges the industry to remember these names when purchasing products and services.

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1st Place!

2nd Place!

CONGRATULATIONS TO THIS YEAR’S WINNERS!

1st Place (Score of 66): Enterprise Rent-A-Car Team 2nd Place (Score of 66): Compact Kars Team

3rd Place (Score of 67): Continental Auto Parts Team 4th Place (Score of 68): FMS Managers, LLC Team

Longest Drive: Male: Ron Van Warner; Female: Bonnie Scoras

Closest to the Pin: Male: Larry Ceverberg; Female: Bonnie Scoras

3rd Place!

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AASP/NJ 10TH ANNUAL LOU SCORAS MEMORIAL

GOLF OUTING

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VENDOR SPOTLIGHT

and the Secrets Behind Nitrogen-Based Spray Systems

Have you been dreaming about a high-end coating application solution that provides superior finish with significant cost saving of both time and dollars for your shop? Advanced Coating & Application Technologies from Haydell Industries, using third-generation membrane, is a radically innovative and proprietary technology that eliminates every shortcoming of compressed atmospheric air. It offers full control over the three principal problem-causing variables: Heat, moisture/humidity and electrostatic charge. Compressed air has been the standard fluid carrier, but it is fundamentally flawed in heat control, moisture humidity and static electricity:

HEAT

• Compressed Air has variable temperatures that change throughout the day; as a result, the volume of air molecules alters paint density in the fluid carrier. This distorts color, necessitates changes in air pressure and alters chemical reaction rates, especially solvent/water evaporation and drying times.

• Nitrogen Technology - Temperature is controlled and constant, allowing for predictable and reproducible results. Controlling heat obviates the necessity of solvents/water to manipulate viscosity.

MOISTURE

• Compressed Air allows moisture to initiate and accelerate several coating problems. Moisture alters paint’s drying efficiency, leaves imperfections on the substrate, causes film defects – such as blistering – and is a primary factor of corrosion.

• Nitrogen Technology brings the fluid carrier dew point down to anhydrous levels (-58°F/-50°C), eliminating all traces of moisture and water.

STATIC ELECTRICITY

• Compressed Air generates undesirable static electricity in spray applications, due to the friction-intensive route to the nozzle before application. A net negative charge in the compressed air and fluid cause them to repel one another. In addition, sanding, polishing and tacking add a negative charge to the target substrate. This is clearly undesirable for a process reliant upon the adhesion of one substance to another. This also encourages contaminant attraction of dirt, dust and fibers to the freshly-painted substrate, as well as film defects, causing metallic particles and

color pigments to change position and creating inconsistent color and coverage.

• Nitrogen Technology uses static electricity by positively charging the fluid carrier. This attracts the negatively-charged target substrate.

The main difference between majority pure Nitrogen and Haydell’s Blended Nitrogen is compressed air consumption. Majority pure nitrogen uses 18+hp of the compressor system for one painter using a typical HVLP gun, while Haydell’s Patented Blended Nitrogen uses only 5.8hp of the compressor using the same gun. Conventional compressed air uses 5hp with the same gun. When using Haydell’s system, actual consumption drops below conventional compressed air. This is because of Haydell’s perfect fluid carrier design, which allows you to reduce pressure at the gun to achieve superior results. In terms of percentages, majority Nitrogen uses 300 percent more compressed air, while Haydell’s system uses only 20 percent. This represents an average energy savings of over $2,100 per year per painter.

In a recent side-by-side comparison of Haydell’s system, Eurosider’s system and Nitro Heat with no ionization, a world-leading car manufacturer, chose Haydell as core technology for all manufacturing. The results were that without ionization, no significant results were recorded. Haydell’s system had 20-plus percent more material savings and over 50-percent increase in appearance quality over Eurosider’s Majority pure Nitrogen, thanks to Haydell’s thirdgeneration patented Blended Nitrogen.

Overall tests indicated that Haydell’s unit had a return on investment of less than seven months – much faster than that of the next closest competitor.

ADDITIONAL BENEFITS OF NITROGEN TECHNOLOGY

• Corrosion Protection - Without protective coatings, bare surfaces weaken and corrode long before their usual life expectancy. Third-generation nitrogen technology greatly reduces failure to adhere and also reduces voids where water, oxygen and other contaminants contact bare metal and initiate the corrosion process.

• Particle Size - Reduced particle size in nitrogen technology eliminates many coating film defects and increases dispersion stability.

• Fluid Carrier Composition - Each coating is applied with an identical fluid carrier.

Haydell’s technology ensures better coverage, higher transfer efficiency, enhanced adhesion and reduced overspray.

• Green - Users enjoy a 20-30-percent reduction in VOC emissions, while harmful solvents needed to change viscosity are cut to between 50 and 100 percent.

COSTS/LABOR SAVINGS

Repeated testing reveals the technology saves 20–30 percent materials and 30–50 percent in labor. Labor and material savings are due to greater coverage in a single pass with this technology. Greater transfer efficiency and faster drying times significantly reduce the need for a re-do.

SEE IT FOR YOURSELF

To start seeing the quantitative and qualitative proof that the Nitro Tech Spray Paint System will save your company money, provide a superior product to your customers and give you a sure advantage over your competition, call today at (800) 877-4362 for information about viewing a product demo, or visit www.haydell.com or email us at haydell@msn.com.

NJA

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WHAT SAY YOU?

WHAT’S THE BIGGEST THREAT TO YOUR BUSINESS? “The greediness of the insurance companies. They’re making us work longer and harder, but paying us less to do it. They don’t want to share the wealth that we’ve helped create instead, they’re outright stealing from the shops and their customers.”

“Steering. It’s been happening in our shop more and more often, and the insurers are getting more blatant with their tactics. I guess I’ve been labeled as a problem by them because I fight to be paid fairly for the work I do.”

MORRISTOWN

JERSEY CITY

BERKELEY HEIGHTS “Our Labor Rate is the biggest headache we have to deal with. Our rate is nothing compared to what the mechanical guys get, or the other skilled trades. And the work we do is just as critical - we keep families safe on the roads. When you look at it that way, and compare it to the cost of living, it’s a joke.”

“Things are changing too quickly.

Every day, I open the newspaper or your magazine or go online and learn about some new huge thing coming down the pike that’s going to have a major impact on my shop. I make sure my guys and I get training and I try to make the investments to keep up with the changes, but it’s like the eight ball is behind me. I worry that at some point, it’s going to become too expensive or too difficult for me to stay ahead.”

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SAYREVILLE

TRENTON

NEPTUNE

“The shop down the street. We are our own worst enemy in this industry. I stand up for myself and I win some of my battles, but for every time I send an insurer away and think I’ve come out ahead, there’s a shop right around the corner that’ll do what I just refused, for cheaper.”

KEYPORT

“If I had to narrow it down to one particular thing? Cash flow.

We do fleet work and some jobs for local government, and so there’s a lot of money out there on the road. The jobs are done and the money is set to come in, but it’s not coming in as fast as I’d like when I still need to keep the lights on and pay my guys.”

“My overhead. It’s obscene what it costs to be a small business owner in New Jersey.”

VINELAND “It seems every day there's a new threat. The current one is PartsTrader, of course. I refuse to allow the insurance companies to pick and choose where I purchase my parts from and then charge me and the parts suppliers a fee on top of it! It's a concept beyond ridiculous.

Every shop and dealer I've talked to says it's a nightmare.”

AASP/NJ MEMBERSHIP PAYS! Are you getting the most value from your membership!

ATTENTION AASP-NJ MEMBERS

Exclusive Programs for AASP/NJ MEMBERS ONLY • Garage Insurance Dividend Plans • Discounted Workers Compensation • Group Health & Disability • Employer — Free Programs

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For all we have to offer, visit us at

www.nucarparts.com Scan the QR code for Nucar Wholesale Parts 28

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MEET THE BOARD DAVE L AGANELL A

“

”

How did you get your start in the repair industry?

After high school, I went to Denver Automotive & Diesel College in Colorado for four years to study mechanical repair. After graduation, I came back to New Jersey and my father had bought a repair shop in Oakland with attached land that he wanted to use to run his construction company. He needed someone to run the six-bay repair shop, so I did that right out of college. All this time, I was literally driving past Peters Body and Fender and thinking, ‘That will be my shop one day.’ It was my dream. Twelve years ago, I was able to make that dream come true and purchase the building from the former owner. I’ve never looked back.

You are the current Collision Chairman for AASP/NJ. What originally inspired you to join the association?

The former owner of Peters, Mark Pezzuli, introduced me to Eddie Day, Glenn Villacari and Pete Cook. These guys were extremely successful businessmen, and all three sat on the AASP/NJ Board of Directors at the time. I remember thinking to myself, ‘There’s got to be a correlation here.’ I contacted [AASP/NJ Treasurer] Tom Elder and expressed an interest in joining the Board. The roundtable aspect of sharing information with other shop owners really appealed to me. Today, I still feel like it was a smart move, not only to help better my own business, but to also hopefully help make some positive change in the industry as well.

Are there any particular goals you’d like to accomplish as an AASP/NJ Officer?

I’m very committed to helping to grow membership in the association. I’m on the AASP/NJ Membership Committee to help further that goal, and I think I can offer a unique insight as someone who’s seen both the collision and mechanical sides of the industry for many years. I haven’t been around forever, but I’ve been a shop owner for 34 years and have seen a lot.

With such a diverse background, you’ve experienced issues from both the collision and mechanical side of the industry.

Across the board, what would you say is the most pressing issue for repairers today?

I’d have to say that the lack of unity between repairers is really what’s hindering the industry the most right now. It’s frustrating to see how many shops are out there that are not taking advantage of all that a group like AASP/NJ has to offer. I totally understand the challenges associated with running a shop, but the response to those aggravations shouldn’t be to quit bettering yourself, or to bury your head in the sand.

Name one thing that your industry colleagues may not know about you.

I’m an avid skeet shooter. I love spending time on the range shooting clays and targets. When I’m not doing that, boating is another big passion of mine.

After all these years in business, what’s the one thing about the job you love the most?

I’ve been doing it for over 30 years, but I still get such a thrill from taking a car that’s been destroyed and making it new again. It never gets old to me.

What’s one piece of advice you’d like to share with people reading this?

Make sure to take everything in moderation. Don’t go overboard, and before jumping into anything major, think about how it will affect you in the long term, not just in the “now.” That carries over to business, personal life, anything.

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NATIONAL FEATURE

NJ COLLISION & MECHANICAL

INDUSTRY PROS: FEDERAL LAWSUIT ALLEGES WHAT’S INSURERS’ CONSPIRACY TO CONTROL COLLISION REPAIR COSTS ON YOUR MIND??

A lawsuit brought by a Pennsylvania-based collision repair facility was filed April 30 in the US District Court for the Northern District of Illinois, Eastern Division, naming State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide and defendant insurers alleging they illegally conspire to control the collision repair process and the cost of repairs.

As originally reported by CollisionWeek Online (www.collisionweek.com), the suit, Crawford’s Auto Center v. State Farm et al, also names USAA, Travelers and American Family as conspirator insurers, though not defendants.

The plaintiff seeks to have the suit granted class action status representing any repair facility that has done business with the defendant insurance companies since January 1, 2006.

According to the complaint, “Defendant Insurers and Conspirator Insurers, through various means but, in particular, their DRP relationships, have created an artificial market rate for repairs – the prevailing rate – that has been imposed upon repair facilities throughout the country (DRP and non-DRP), and has enabled Defendant Insurers and Conspirator Insurers to artificially suppress compensation to repair facilities for insured collision repairs.”

In the sweeping 164-page complaint, the plaintiff alleges that each of the defendant insurers violates the Racketeer Influenced and Corrupt Organization Act (RICO) by operating a separate enterprise in conjunction with the Information Providers (Audatex [AudaExplore], CCC or Mitchell) that they use internally, or require or recommend to their DRP networks.

The complaint alleges that “Defendants Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide, together with the respective Information Providers with which they have a standing relationship, have each formed separate association-in-fact enterprises within the meaning of 18 U.S.C. § 1961(4). Thus, Allstate has formed an association-in-fact enterprise with CCC (the “Allstate Enterprise”), GEICO has formed an association-in-fact enterprise with CCC (the “GEICO Enterprise”), Farmers has formed an association-in-fact enterprise with CCC (the “Farmers Enterprise”),

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Progressive has formed an association-in-fact enterprise with Mitchell (the “Progressive Enterprise”), Liberty Mutual has formed an association-in-fact enterprise with Audatex and CCC (the “Liberty Mutual Enterprise”), and Nationwide has formed an association-in-fact enterprise with CCC (the “Nationwide Enterprise”).”

The complaint states that, “Defendant Insurers conducted the respective enterprises through a pattern of racketeering activity by fraudulently establishing and misrepresenting the prevailing rate for collision repairs to vehicles covered by insurance, including: (1) hourly Labor Rates; (2) reimbursement for “paint and materials;”(3) the scope and extent of compensable repairs; and (4) parts prices.”

The injury to plaintiffs is “under-compensation for collision repair work and services on vehicles covered by insurance, including the suppression of hourly labor rates, suppression of compensation for “paint and materials,” suppression of compensation for parts and suppression of compensation for the scope and extent of the repair procedures performed. The complaint also alleges that, “Defendant Insurers have made false and misleading representations of fact, and concealed and omitted facts regarding the prevailing rates for insured collision repair services and compensable repair procedures.”

“This is a major, major development for our industry, and it's been a long time coming,” states AASP/NJ Executive Director Charles Bryant. “A sweeping suit like this, especially one with the RICO Act tied in, will be very difficult for the insurers to sweep under the rug and not take seriously.

“This issue goes all the way back to the Consent Decree of 1963,” Bryant adds. “For over 50 years, the Consent Decree has prohibited insurers from getting ‘in bed’ with the Information Providers. This suit could have enough impact to really make a difference; it’s going to be difficult for those named to ignore.”

New Jersey Automotive will provide updates on the lawsuit as developments occur.

NJA

New Jersey Automotive invites you to take our 2014 NJA Industry Survey.

Visit the link below and let us into your shop for a few minutes!

http://tinyurl. com/NJA survey2014

or, if you have a smartphone, scan the QR code below to enter survey (must have a QR code reader)

All answers will be kept confidential and will be used in a future issue of New Jersey Automotive.

Please call (973) 667-6922 if you have any questions.

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FEATURE

HELP FOUND: For years, the annual Skills USA Collision Repair Technology State Championships have offered New Jersey’s most promising secondary and postsecondary vocational students an opportunity to showcase their talents before a team of volunteer judges from all segments of the industry. Every June, the winner from the state contests has an opportunity to compete in the National

If you’ve ever complained about not being able to find new help in this industry, you’re looking in the wrong place.

Leadership & Skills Conference in Kansas City, MO. In addition to the prestige that comes from being considered the best in the state or country, these gifted competitors gain direct access to employers and opportunities that they would not be able to find on their own. Although a small number of industry members actively support SkillsUSA each spring, this year’s event (held April 5 at the Somerset

County Vocational & Technical School in Bridgewater; see photo spread in last month’s issue) drew the largest groups of collision industry sponsors and volunteers in at least a decade.

Best of all, many of these kids got to meet and converse with the shop owners, dealership managers and industry vendors who will soon employ them. If you ever need an example of just how positive the industry

can still be for those who put the time in to make a difference, this would be it.

This year’s festivities were especially enjoyable for Anthony Thompson (NJM Insurance Group), who first began volunteering his time at SkillsUSA four years ago. Starting out as a judge, he soon decided to take a more active role in gaining support from the industry.

“What I’ve learned is that there are a lot of people who want to give – they just don’t know to whom, or how much,” he says. “I kind of connect those people.”

SkillsUSA Brings Tomorrow’s

Photos courtesy of Anthony Thompson (NJM Insurance Group)

Workforce to YOU 36

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Thanks to the following judges for their help in making the 2014 SkillsUSA Collision Repair Technology State Championships a success:

-

Students shine at SkillsUSA and (bottom pic) learn at DCH Collision Center.

(Photos courtesy of Anthony Thompson/NJM)

Anthony Trama Anthony Thompson Charity Ritter Chuy Barrera Edgar Chaves, Jr. Howard Freedman Keith Holloway James Burkshot Michael Bonsanto Steve Baur Edward Winkins

Because there is no established budget for the Collision Repair contest, the event succeeds through equipment, supply and monetary donations.

Looking to really step it up this year, Thompson called upon as many shops and vendors as he could. With logistical support from Auto Body Distributing Co. (who helped coordinate the donations with the shops), Thompson soon had an impressive assortment of supplies and special prizes to award to deserving students. This year’s grand prize winner, Anthony Sibaja of Somerset County, walked away with a jaw-dropping tool chest donated by DCH Collision Center (North Brunswick). Each of the 15 students who competed were awarded an amazing array of

prizes including safety glasses, an SK socket set, gloves, a Blaise of Color bag filled with tools and more. The instructors who attended in support of their students even received free 3M safety kits. Later this year, AASP/NJ will award Sibaja with a $500 check to assist him in moving forward with his career.

Thompson is still amazed at the outpouring of support he received from his industry peers.

“I was turning away $1,500 checks,” he says. “I said, ‘How about $500 this year, $500 next year and $500 the year after that? You don’t have to write such a big check; support the program for the next few years, not all in one shot.’”

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FEATURE When seeking volunteers to judge the action, Thompson makes it a point to select members from as many different segments as possible. When a student hits the floor, he or she is performing for everyone from shop owners to insurance personnel to refinishing manufacturers to receptionists.

“Every judge represents a job that one of these kids can get,” he explains. “We do a little Q&A afterwards, and if someone’s interested in being a manager or an estimator, bodyman or painter, we have someone there who represents that part of the industry.”

As Thompson worked to build a strong pool of judges, he sometimes risked ending up with more judges than actual competitors - a result of the fact that the number of collision repair programs continues to decrease.

“The problem is they’re closing so many auto collision programs in New Jersey,” he explains. “They’re combining; where we used to have every county represented with auto collision, I think we maybe have 15 programs left in [the state].”

Naturally, Thompson and the rest of the SkillsUSA crew have worked hard to adapt to this reality. The upward success of SkillsUSA in recent times is the result of efforts to streamline and restructure the state event to better mirror the National competition. This included making the Refinishing competition, traditionally held on the same day as Collision Repair, a separate event held earlier in the year. This also

meant doing things like eliminating the wheel alignment portion of the competition, incorporating welding parameters that are more in tune with ICAR, having students create a frame “pulling plan” and making the interview segment of the competition a much more informal process. In the past, competitors had to contend with making repairs on inconsistent parts with varying damage; now, the students work on OEM fenders thanks to generous support from the Chrysler Corporation. Volunteers ensure that each student repairer starts on the same playing field by using a special fixture to create the exact same damage on each OEM fender.

“In years past, we had aftermarket parts donated, and some of them had different dents,” offers longtime NJ SkillsUSA Collision Administrator Peter Fryzel (I-CAR).

“How could you really judge a student having different damage in the parts?”

In addition to securing the right tools and equipment for the competition, Fryzel and Thompson made sure that the instructors from the participating schools were engaged in the SkillsUSA process.

“In the past, the instructors really didn’t know what the competition was about,” Fryzel says. “Now that we’re into consistency that parallels [the National event], the instructors are able to teach their students what elements of the competition they should be practicing, and I think they feel more comfortable with that.”

Starting out with SkillsUSA as a judge more than a decade ago, Fryzel believes that the event has only started to reach its true potential.

“In the last several years, I’ve seen a consistent improvement in not only the representatives, but the talent pool and their skill sets,” he observes.

“From their appearance to their interaction to their knowledge of how to protect themselves from hazardous materials, it’s inspiring. That’s why I do it.”

Of course, the fact that more than a few participants get to meet with potential hires is always a major plus.

“These are the people who are going to be running our industry,” notes Fryzel. “Sometimes, some of the body shops see a talented person, and they're essentially giving them a business card at the end of the day. They say, ‘Come see me.

You’ve got a job.’ That’s really what it’s all about.”

A former vocational student and night school instructor, DCH Collision Center Manager Keith Holloway was very happy to donate the tool cart for this year’s competition and add his support to the automotive student community.

“I support it because I came from it,” he says. “It’s hard to find good people, so if I can do my part to help sponsor it and help keep it active, then I feel better.”

Away from SkillsUSA, Holloway opens his doors to area students who want to explore his 32-person, 43,000 square-foot, 260-car-a-month facility and gain insight into collision repair processes in the real world. As

manager of one of the largest Toyota-certified facilities in the state, Holloway wants to make sure his operation has access to – and continues to encourage – the best and brightest in tomorrow’s workforce. Being a part of SkillsUSA helps him accomplish this goal.

“It’s hard to really come by people who want to learn this industry because more students and kids are gearing towards computers and things like that,” he shares. “But in reality, the cars aren’t going anywhere; they need to be repaired and maintained. If we could get more body shops and collision centers to support the students, maybe then they’ll be more receptive to learning the trade when they see involvement and a lot of people doing it.”

Greatly encouraged by the 2014 event, the SkillsUSA volunteers look forward to seeing even more industry members taking the time to come down to Bridgewater on a Saturday and help their future employees start their industry journey. Those who have never participated in – or even heard of – SkillsUSA are missing out on a great solution to one of the industry’s biggest problems.

As Thompson says, “There are many kids involved, many kids who want to do this and many new students getting into shops. The reason you’re not seeing them is you’re not involved.”

NJA

Founded in 1965, SkillsUSA is a nationwide partnership of students, instructors and industry working together. SkillsUSA works to ensure America has a skilled workforce. The nationwide career and technical education student organization annually serves more than 300,000 high school, college and postsecondary students and instructors in technical, skilled and service occupation instructional programs. SkillsUSA has the active support of more than 600 corporations, trade associations, business and labor unions at the national level. SkillsUSA programs teach leadership, citizenship and character development to complement technical skill training. The organization emphasizes respect for the dignity of work, ethics, workmanship, scholarship and safety. For more information, go to www.skillsusa.org.

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“A Sad Affair:”

PARTS TRADER NATIONAL FEATURE by Joel Gausten

Thoughts on the PartsTrader National Rollout

F

or two years, the national collision repair industry has worked hard to push back against the spread of insurer-mandated parts procurement. From a major lawsuit in Mississippi to legislative campaigns in a variety of states, the call to stop the implementation of State Farm’s program with PartsTrader (and similar endeavors by other insurers) been heard loud and clear. But on April 23, PartsTrader announced that it had succeeded in making its controversial product available in all 48 continental states and the District of Columbia. Notably, the product has been made available to shops regardless of their DRP affiliations, and has also been made available as a free market item in Rhode Island and Massachusetts, where State Farm currently does not write auto insurance.

According to PartsTrader, there are more than 7,500 repairers and 8,500 suppliers currently active on the system, with OEM comprising more than three quarters of active suppliers. Additionally, the company claims to have processed more than 750,000 quote requests and generated more than 1 million confirmed parts orders.

While many companies would love to experience these kinds of sales figures in today’s economy, the fact remains that PartsTrader’s success in the American market has very little to do with the strength and popularity of its product. Due to the conditions of their Select Service agreements with State Farm, shops must use PartsTrader in order to stay on the insurer’s Direct Repair Program.

Unfortunately, this prevents many users from voicing their complaints with their insurance “partners” out of fear of retaliation.

But that doesn’t mean the shops and suppliers can’t talk to us.

With PartsTrader now in place across the country, our phones continue to ring off the hook with calls from repair pros looking to share their thoughts on the system. From what we’ve heard from 42

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these industry professionals, PartsTrader is far from the success story it claims to be.

One of the North Jersey market’s most popular wholesale dealers, Brogan Cadillac in Totowa prides itself on providing exceptional service to its customers. When word came down that some of his customers had recommended his department to be involved in PartsTrader, Brogan Parts Manager Chris Stephan was willing – if a bit uneasy – to oblige.

“A couple of shops that we deal with wanted us to be on it so that they could keep buying their parts from us,” he explains.

“They’re good customers, and they want to keep using us, but they couldn’t buy the parts they wanted to from us on these State Farm estimates unless we were on PartsTrader.”

Despite his customers’ use of PartsTrader, Stephan tells New Jersey Automotive that he has yet to encounter a body shop that is happy to be on the program.

“It’s going to kill them; it’s going to cut their profits,” he says.

“It’s the insurance company squeezing every nickel out of the shop and the dealer. Once this starts and takes off with them, you’re going to see other insurance companies jumping on.”

Although Stephan says that PartsTrader has brought him business from shops he has never worked with before, these orders come with considerably lower profit margins than jobs that come from outside the system. More work for less money - does this sound familiar?

“If you want to sell the parts on PartsTrader, you have to almost give them away,” he says. “And the shops are forced to use them – if you’re not going through PartsTrader, you can’t get the parts. The only reason we’re on [PartsTrader] is as a convenience

to our shops...We're on there not for the new business; we’re on there as a service to our existing customers.”

Based on his use of PartsTrader, would Stephan say the product provides enough value to his business as a mandated feature to encourage him to willingly purchase it off the shelf in the free market?

“I would say no,” he says. “Nothing good is coming from this, but this is the way business is going. You’re going to see body shops say, ‘I’m not going to be your DRP anymore,’ and then you’re going to see the smaller guys closing up because they’re not going to be able to survive if they’re not DRPs.” And with those words, Stephan strikes at the very heart of the matter. Naturally, one of the greatest things that prevents a shop from leaving PartsTrader – and thus their State Farm DRP – is the fear of lost jobs. This was a thought that weighed heavily on the mind of one east coast-based shop owner until he finally decided that enough was enough and walked away – in 2006. That’s right; this repairer said goodbye to State Farm long before ‘PartsTrader’ was even written in an American trade publication. For him, the insurer’s Most-Favored Nation clause was enough to make him head for the door. Now, as many of his peers struggle to adapt to a system they don’t want in order to appease a partner that apparently doesn’t care enough to hear their thoughts or concerns, this owner is even more confident that he made the right decision.

“State Farm has expressed interest in me - through some of their appraisers - in having me back on their DRP network,” he shares. “Quite honestly, I have not picked up the phone because of the PartsTrader issue.”

Interestingly, his shop has been successful in adding at least

$200,000 a year in sales through area marketing and encouraging word of mouth from satisfied customers in the eight years since he left State Farm. Could a shop like this become the rule rather than the exception? Are other shops and other markets willing to learn by this example and leave these relationships? Maybe not.

“I do know guys who talked a lot of smack that they were not going to do PartsTrader when State Farm came knocking on their door, but then they complied and gave in to it because they saw it as losing the bulk of their business,” he replies.

Not surprisingly, these concerns are echoed in other parts of the country. In Virginia, repairers and parts suppliers were made to adapt to PartsTrader in February. In addition to one prominent used supplier in that state telling us that more than 100 body shop customers recommended him to the program (and thus made his refusal to participate potentially devastating), dealers that work with new OEM parts are feeling their own pressures.

“Our volume of PartsTrader bids is growing,” offers one Virginia-based parts manager. “In the beginning, we bid on every request. We now are picking through the requests and bidding on requests from our current customers first. The remaining request may be bid on if time permits. Those remaining customers call on occasion concerning a bid that was not placed. We will place the bid, but we explain to them the reason why it was not placed in the time allotted.”

Not surprisingly, shops in the market empathize with their suppliers’ pain.

“None of our regular vendors like it; one of our favorite OEM parts guys works on straight commission and now has to do more continued on page 59

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NO BRAKES by Ron Ananian

Flying into Oblivion We are facing what appears to be an insurmountable task: Parts replacement is a growing problem and getting bigger every day.

Here are some candid observations from my desk here at the shop.

Like many of you, I track business using a spreadsheet. I’ve noticed a trend in the past four years, and it’s getting exponentially bigger every 12 months. We consistently sell more labor but less parts; labor sales are up and parts sales are down (way down). On a weekly basis, I am speaking to more and more NEW salesmen from different parts suppliers, looking for business. It’s no secret that many of the parts walking in the door say, “Made in China.”

BUT there is “good” China and “bad” China. After researching to verify, I cannot find a dealer that DOES NOT pay their technicians warranty labor to replace dealer installed parts. Unless you are part of an aftermarket parts program (and even then there are issues), there is no replacement labor paid from an aftermarket parts supplier (and definitely not at a real world Labor Rate; the best I have seen is upwards of $50).

The question is, WHY? Let’s look at these issues one at a time.

Parts sales are down because there are less legitimate parts to sell.

Exhaust replacement is nonexistent (just look at the national “muffler” chains that are no longer in existence, or muffler only), mechanical parts on vehicles made in the last 10 years last longer and there are less of them on cars. To be honest, electronics are doing more every day, including power steering, throttle, brake and steering control. That means no more power steering pumps, racks or other related components. No more throttle cables, linkages and so on. Suspension components, struts, front ends and steering don’t fail like they once did. Brakes are the last bastions of replacement parts; they are the last “whale” in the room. We are working harder, with more labor, to replace LOWER COST or fewer parts. That’s why parts sales are down; it’s all in the numbers. And they will continue to head in that direction for the foreseeable future, especially

with the trend of module repair/replacement growing. (For the sake of this article, we will not bring up the ultimate parts sales killer words: SOFTWARE UPDATES or REFLASHING.) There are more salesmen in the door every week because there are fewer places to sell parts. The pie is shrinking and the reach of your “local” parts house has to grow. When was the last time you heard of someone opening a NEW auto repair shop versus taking over an existing one? That’s true at least in this part of the country; maybe elsewhere, land is cheaper and overhead is less…maybe it’s over the rainbow, but it’s not here.

There is clearly a good China and a bad China when it comes to parts, and why is that? How come certain manufacturers can spec out a part, have it made overseas and it’s good quality, and others make poor quality that doesn’t last? We recently purchased some ignition coils for a Thunderbird. It was all Motorcraft (OE) stuff, and the bag said “Made in China,” For conversation’s sake, we were replacing two bad aftermarket coils the customer had installed at another shop. I knew the brand; they were a “house” brand from a major chain, and they were made in China (Bad China; they only lasted five months). It’s obvious to me that one of the reasons for the quality level choices is that the dealer and manufacturer PAY the technician to replace the part IF it goes bad under warranty; they realize the cost of running a shop with overhead. The aftermarket hands you another part and says, “Go ahead, install it for free.”

While I understand the cheaper cost of the aftermarket part allowing a higher parts margin is supposed to offset some of that labor, that’s not a true statement in many cases today, especially if there

continued on page 59

’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good Mechanics Aren’t Expensive; They’re Priceless.”

Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.

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ARANJ 2014 Officers President Bob Dirkes Dirkes Used Auto Parts 609-625-1718 dirkesauto@gmail.com 1st Vice President Ian Szoboszlay Ocean County Auto 732-349-0332 ian@cosmosautoparts.com 2nd Vice President Darryl Carmen Lentini Auto Salvage 908-782-6838 darryl@las-parts.com 3rd Vice President Joe Goodman Leesville Auto 732-388-0783 joeg@leesvilleauto.com Past President Norm Vachon Port Murray Auto 908-689-3152 portmurrayauto@yahoo.com Executive Director Brian Snyder Auto Recyclers of NJ 609-714-2339 brian@aranj.org

ARANJ 2014 Board of Directors Mike Ronayne Tilghmans Auto Parts 609-723-7469 tilghmans@snip.net Marvin Leadbeater Bamber Lake Auto 609-639-6500 marvinjsp@comcast.net Mike Yeager EL & M Auto 609-561-2266 elandmauto@aol.com Rodney Krawczyk Ace Auto Wreckers 732-254-9816 aceautonj@comcast.net

ARANJ Legal Update

Access to Government Records Cannot be Denied Based on Irrelevance

On May 13, the Appellate Division of the New Jersey Superior Court issued a decision in American Civil Liberties Union of New Jersey v. Division of Criminal Justice, which prohibits custodians of government records from redacting information deemed irrelevant in response to a request under the Open Public Records Act (“OPRA”). This decision, which reverses the decision of the trial court, eases the burden on the requestor that would have otherwise resulted if the custodian of a government record were permitted to determine what information was relevant to an OPRA request.

OPRA was adopted to enable the citizens of New Jersey to examine and obtain copies of documents and other information deemed “government records” and maintained by any government agency, commission, officer or authority. Under OPRA, the custodian of a government record must, upon request, provide an opportunity for inspection, examination and copying of a government record. Although all government records may be inspected, examined or copied, OPRA excludes some categories of records from the definition of “government records.” For example, criminal investigatory records, documents subject to the attorney-client privilege and portions of documents containing social security or credit card numbers are all excluded from the definition of a “government record.” There are 21 such categories under OPRA. The public has no right under OPRA to examine records falling into these categories.

In addition, access to a government record may be denied under the common law (case law or precedent) if it is deemed that the public interest in keeping the government record confidential outweighs the private right of access.

In American Civil Liberties Union, the American Civil Liberties Union of New Jersey (ACLU) requested records pertaining to automatic license plate recognition (ALPR) technology. The Division of Criminal Justice (DCJ) responded by providing 79 pages of redacted documents with the notation that redacted information was not relevant to the ACLU’s request. The ACLU immediately filed a complaint alleging that the redacted documents violated OPRA and the common law right of access. The ACLU contended that the records it received constituted government records and that the custodian had no legal authority to redact those records and withhold information based on the unilateral decision that it was not relevant.

The trial court found that the ACLU did not seek information concerning projects that did not involve automatic license plate recognition technology, and that it was reasonable to conclude that the redacted information was not relevant to automatic license plate recognition technology. As a result, the trial court agreed with DCJ that the government records provided were responsive to the ACLU’s request and did not violate OPRA or the common law right of access. The trial court determined that it was reasonable to require the ACLU to submit a subsequent OPRA request after receipt of the redacted documents if the ACLU determined that it now wanted the entire document.

In reversing the trial court’s decision, the Appellate Division found that there was no basis in OPRA for conferring on the custodian the power to determine what information was and was not relevant to a request.

The Appellate Division further found that a custodian might only refuse access to records (1) that do not qualify as “government records” because they fall into one of the categories of records excluded from the definition of “government records,” or (2) where the public interest in confidentiality outweighs the public or private interest in access. DCJ admitted that the redacted information did not fall into any such category and that it qualified as “government records.” As a result, the Appellate Division found that access to the type of records sought in this case must be unfettered.

The Appellate Division was also troubled by the trial court’s decision to burden the requestor with the responsibility of refining its request to include redacted information. The Appellate Division determined that this burden ran counter to the strong public policy favoring the prompt disclosure of government records.

The Appellate Division’s decision simplifies the OPRA process for members of the public, especially those who may not have the benefit of legal counsel. It also increases the odds that a person requesting government records will obtain the documents and information he or she was looking for without the need to make multiple requests. On the whole, the Appellate Division’s decision eases the burden on citizens seeking documents under OPRA. For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 6310600.

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

Mike Caputo Lacey Used Auto Parts, Inc. 609-693-0898 laceyautomike@aol.com

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June 2014

Wharton Insurance Briefs

With hurricane season in full swing, it’s important to have a program in place or be prepared for a windstorm. Here are a few basic steps to follow:

Pre-Storm Precautions: Evaluate all building structures as to the damage they could sustain. Inspect the grounds for condition of trees, as dead or dying trees could cause damage or injury during high winds. Develop a list of emergency phone numbers of contractors.

Building Precautions: Close unnecessary openings and make windows and doors weather-tight. Check for broken windowpanes and nail down loose window framing. Close windows on the windward side of a hurricane and open windows on the side of the building away from the storm’s approach to reduce a dangerous pressure differential. Inspect roof coverings and roof perimeter flashing. Secure or remove work in progress, temporary structures, trailers and scaffolding.

Post-Storm Actions: Immediately initiate salvage activities. Develop plans to secure facility against looters and trespassers.

Always review and update your action plan annually. As always, if you should have any questions regarding this article or your insurance program, please contact me.

Mario DeFilippis, AAI, Vice President, Wharton Insurance mdefilippis@whartoninsurance.com (800) 221-0003 ext.1320

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MECHANICAL CHAIRMAN’S MESSAGE

LEGAL FEATURE

PARTSTRADER NATIONAL FEATURE

This past winter was brutal, with longterm extremely cold temperatures throughout most of the season. I think it was the most difficult winter I have ever dealt with, with 68 inches of snow…more than double the long-term average of 29-30 inches.

If the last 12 years carried a 41.1-inch average snowfall, how could anyone use the term “global warming” when the long-term average is much less?

Even the tree huggers have changed their tune and now use the term “climate change.” All “extreme weather” is now the result of “climate change.” Wow! How does that work? How do you prove that?

By the way, my home down the shore (in the Seaside area) was recently heavily damaged in Superstorm Sandy. Again, many experts blame climate change…but when a storm ravaged Long Beach Island in the early ’60s, there were a lot of similarities, like flooding and the ocean cutting access to the island. At the time, only the weather was to blame.

In conclusion, according to my observations and documented records, the weather has always been ever-changing, somewhat erratic and to this day only somewhat understood, with some people attempting to put their own spin on its explanation for whatever cause they chose.

than just their years of experience and knowledge of the marketplace. Though this is difficult to do, it is necessary to prove the losses that are occurring to thousands of accident victims throughout our state and nation.

As difficult as it is, I am continuing to try these cases throughout the Northern portion of New Jersey and attempt to educate our Judiciary about the practical considerations that occur after a car accident. In fact, I was recently conflicted from trying a case in front of a certain Judge in Bergen County after my expert had told me he had recently done a diminished value report for that Judge. I had tried a diminished value case in front of that Judge approximately two years earlier. The expert advised me of this when we were on our way to the courtroom.

At least that Judge apparently understood the concept. My advice to shops and attorneys in New Jersey is to keep trying these cases and to refer them to qualified attorneys in order to educate the public and the Judges in this State.

work to get less pay,” offers one Select Service shop owner. “The local salvage yards and other smaller vendors have to pay an uncomfortable amount to participate, but feel they can’t afford to opt out...As it is, this is just something else to be a drag on our industry.”

With PartsTrader just now beginning to settle into the national market, it remains to be seen if users will ultimately find value in the mandated product, pursue legal remedies to what many perceive as insurer intrusion or simply decide to reevaluate their standing as a Direct Repair shop for State Farm or any insurer that would consider a program like PartsTrader. But for now, one thing is certain: Very few people – if any at all – are enjoying the experience.

As one prominent east coast parts supplier sums it up, “Parts margins will suffer and smaller body shops and suppliers will have to find other profit centers to make up the difference. Most of us feel we are already in an open market. We compete on price and service to maintain our wholesale business. State Farm shows no faith in an open market based on anything but price. I think that is a sad affair.”

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are fewer parts being sold. Fact is, cars are getting more and more labor-intensive on a daily basis. And who in their right mind wants to install poor-quality parts as an attempt to make a higher profit? Sounds like someone who thinks the best way to avoid speeding is drive faster to get where you’re going to avoid longer time behind the wheel. Makes no sense, at least to me.

The aftermarket offer of Labor Rates resembles a government health program: Full of hot air and promises, and rarely delivering. The price of the bad parts does not justify the lack of quality we as an industry install on a daily basis. We need to look down the road because we are “flying into oblivion,” partly because technology is driving us there, but more because we are making the choice in the parts we use, and the way we allow manufacturers to treat us.

THE BOTTOM LINE IS… Auto repair five years from now will look different than today, and drastically different than just 10 years ago. Most of the parts (the few we may sell) will come from dealer sources; there will be two, maybe three major aftermarket parts chains. Mom and Pops will be few and far between.

There will be “cheap” repair shops counting on volume to cover their comebacks, and “quality” repair shops that can provide superior service and long-lasting repairs.

Like now, but in more clearly defined positions and sight.

Some parts houses will continue as they are currently doing, selling OE-level parts to independents. They provide quality that can drive more business in our direction. But repair shops need to step up and purchase more from them than from the places selling junk. Repair shops hold the key to the whole problem; where they decide, and what they decide, to purchase will

dictate what parts brands survive and what do not.

One more observation: It's a funny thing, but the perfect storm now seems to exist. The aftermarket is manufacturing many parts for the OEs, and on the same assembly line as the aftermarket part — just not to equal specs. Be aware there is clearly a difference. Imagine if the aftermarket ramped up their game, made better or like quality, offered labor programs to qualified shops and made it mandatory that shops take training. Things might get better! (I can hear it now: “That Ananian guy is a jerk proposing more regulations and rules.”)

We are fighting an uphill battle. Like the 8th Air Force in WWII, we are performing daylight bombing and not realizing the consequences at a decision level. We are creating our own destruction; someone needs to stop the bleeding before the game is over.

NJA

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Acme Nissan................................................39 Amato Agency..............................................27

Audi Group ..................................................60

Axalta Coating Systems ..............................IBC

BMW Group ................................................24-25 Bridgewater Acura........................................41

Brogan GM Parts Center ............................45

Cadillac of Mahwah......................................58 CCC Comp-Est ............................................46

Classic Audi ................................................12

Crane Chevrolet ..........................................52 Crestmont Toyota ........................................45 Crestmont VW..............................................52 Empire Auto Parts ........................................62

Flemington Group ........................................33 FMS Managers LLC ....................................29

Future Cure..................................................10

Glen Toyota..................................................OBC Hackettstown Honda....................................58 Hyundai Group ............................................49 JMK BMW ....................................................13 JMK Saab/JMK Fiat ....................................54 Krehel Auto ..................................................9

LKQ..............................................................61

Maxon Mazda ..............................................18 Maxon Hyundai ............................................16 Mazda Group ..............................................55 Mercedes Benz of Freehold ........................8

Mini Group ..................................................53

Mitsubishi Group ..........................................40 Mopar Group................................................4

NU-CAR ......................................................28

Parkway Toyota............................................34 Paul Miller Audi ............................................31

Porsche Group ............................................35 PPG ............................................................3

PPGMS ........................................................17

Prestige Motors............................................51 Princeton BMW ............................................11

Princeton Mini ..............................................61 RW Mallon/Collision Equipment Company ..6

Saw Mill Auto Wreckers ..............................51 SATA ............................................................5

Subaru Group ..............................................51 Town Audi ....................................................9

Toyota Group ..............................................48

Toyota of Hackensack..................................IFC Valtek ..........................................................57 VIP Honda....................................................41 VW Group ....................................................44 VW of Freehold ............................................54

Wheel Collision Center ................................62

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