New Jersey Automotive March 2014

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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)

March 2014 $5.95

NORTHEAST® 2014 SCHEDULE OF EVENTS - Pg. 32

TOMORROW’S INDUSTRY TODAY: New Technologies Drive NORTHEAST 2014

Presented with Support from Platinum Show Sponsor

Gold Show Sponsor www.grecopublishing.com

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Visit us at NORTHEAST® Booth #717-719

Visit us at NORTHEAST® Booth #717-719

278 River St., Hackensack, NJ 07601

SERVING THE NORTH JERSEY AUTOMOTIVE INDUSTRY FOR OVER 30 YEARS

TOLL FREE PARTS HOTLINE:

1-888-PARTS-28 FAX:

201-487-2618

DIRECT:

201-488-5756

k c a s n e Hack Paul Cimillo Parts Manager

Multiple Deliveries Daily We Stock Just About Everything We ll Help You Get More Cars Out the Door Faster!

WWW.TOYOTAOFHACKENSACK.COM Ask us about Image©Istockphoto.com/Ibrahim Sari

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Visit us at NORTHEAST速 Booth #410 4

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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

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

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

VOLUME 44, NUMBER 3

CONTENTS 8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE 14 EXECUTIVE DIRECTOR’S MESSAGE

VENDOR SPOTLIGHT 22

Here to Stay: Flemington Audi/Volkswagen/Porsche Thrives into the Future

NEWS FROM TOYOTA 25

Toyota Rides High with All-New 2014 Highlander

NEWS FROM AUDI 27

Raising the Bar: Inside Audi’s Certified Collision Repair Center Program

COVER STORY 30 32

NORTHEAST® 2014 Schedule of Events

FEATURES

PartsTrader Comes to the Northeast: Now What?

Right to Repair Agreement Spurs New Debate

35 44

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

LEGAL FEATURE

PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

by Joel Gausten

Tomorrow’s Industry Today: New Technologies Drive NORTHEAST® 2014

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

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com

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by Mitch Portnoi

Property Tax Appeals for 2014

NO BRAKES by Ron Ananian 48

The 6th Sense

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 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

52

Legal Update Wharton Insurance Briefs

62

NJA ADVERTISERS INDEX

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 ©stockphoto.com/Oliver Malms

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

Overwhelmed

by Thomas Greco, Publisher

As I write this column, we are just a few weeks out from NORTHEAST® 2014, and I have to admit that all of us who are involved are just about overwhelmed, mostly by the response we have received this year from everyone in the industry. I am proud to say that for the first time in the 37-year history of the NORTHEAST show, every booth in the facility has been sold. THE SHOW IS SOLD OUT. Overwhelming.

We’ve come a long way since the days when AASP/NJ started the event as a tabletop show way back in the late ’70s. Hell, it was so long ago that it pre-dates my time with the association. I came along when the show was held at the Hilton in Secaucus, circa

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1984. We had a couple of ballrooms housing our bigger vendors, and our smaller booths were held in a separate area, down a corridor that seemed like a half a mile away. In the parking lot, we had tow trucks and a tent with additional vendors. My memories of those days are of the lousy weather we used to get and worrying that the tent wouldn’t hold up. I also remember how one of those years, we had a nobody named Gary Dell’Abate hanging out at one of the booths. You might know him better now as “Baba Booey” from The Howard Stern Show.

We moved over to the Sheraton in East Rutherford for a couple of years, and that was interesting. It wasn’t much different from

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the Hilton; it was just a little bigger, which meant we no longer needed tents. It also contained a suite at the top of the hotel for the show hosts. All I’ll say is, if hot tubs could talk…

Next, we headed out of state, up to Suffern, NY. We thought we’d try something new and see where it went. We ended up staying almost 20 years. We had a lot of initial success in Suffern, and more than our share of good times. There are great memories with guys like Paul Vigilant, Rich Weber, Lee Vetland and, of course, Charlie and Jimmy Bryant. I’m surprised we weren’t banned from New York after some of the situations we found ourselves in. Oh, but we laughed. And we had fun.

The fun faded after a while, and we decided to head back to Jersey. Wouldn’t you know it, we found ourselves once again in Secaucus, this time at the Meadowlands Exposition Center. But this time, the transition wasn’t so easy. We got tangled up in a nasty lawsuit that tied our hands for a good four years. It hurt the show, and it hurt the association. When we came back, we had to start from scratch. Thankfully, we had several vendors who never stopped supporting us, and they know who they are. We owe them a lot of gratitude for having faith in AASP/NJ. But still, starting over was no fun. In the beginning, there were four of us in the committee who “volunteered” to help the show regain its former

luster. After the first year, there was one of us left. LOL. Through it all, though, we never lost sight of making the NORTHEAST show the best of its kind. So we continued. At first, there were baby steps and skepticism. And it was justified. But year after year, NORTHEAST has kept growing at the Meadowlands. That was always the key. As long as we saw progress, no matter how small, we knew we were going down the right road. And now, here we are.

Five years ago, if you had told me we’d sell out a 60,000 square-foot venue, I would not have believed you. Five years ago, if you had said NORTHEAST would bring the industry’s leaders in droves to present seminars and meetings, I would have dismissed you. Five years ago, if you had told me that we’d have show sponsorships from companies like BASF, Ford and Axalta, I would have said you were crazy. And if you had told me we’d have CHIP FOOSE coming to the NORTHEAST show, I would have laughed in your face. But it’s all true. And that’s just a hint of what’s going on. You can read about it all in the rest of this issue.

It’s been a long, hard road, but it’s been worth every ounce of blood, sweat and tears to get to where we are right now. Thank you to everyone (and there are many) who helped us get here. Enjoy the show!

NJA

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PRESIDENT’S MESSAGE

A Friend in Pittsburgh Collision repair, in my opinion, is one of the most interesting professions in the world. I’m proud to say that even at its most frustrating, this industry never fails to amaze me in its commitment to the motoring public and each other. This was made abundantly clear to me recently; allow

Visit us at NORTHEAST® Booth #319

me to explain.

A few weeks ago, I received a call from a customer whose vehicle we had worked on previously; his door needed a readjustment following the repairs we had made at Leslie’s. This wasn’t the problem. The issue was the customer’s

by Jeff McDowell

- and his vehicle’s - location: Pittsburgh, PA. The customer indicated to me that he had no intentions of returning to New Jersey, and yet his vehicle needed repairs. He asked, “What can you do for me?” Great question.

As I’m sure most shop owners in my situation would, I set about doing what I could to rectify my customer’s problem, at my expense. Just because the vehicle was no longer in the area didn’t mean that I should wash my hands of trying to get the repairs completed. At the recommendation of an insurance appraiser I have a longtime relationship with, I reached out to Mike’s Auto Body in Pittsburgh, PA (visit them at www.mikesauto bodypgh.com). What happened next completely surprised me, and reaffirmed my belief that this industry houses some of the greatest people you’ll ever meet.

For starters, the owner of Mike’s, Mike Fiore, could not have been nicer; from the onset of our first phone call, he assured me that he would happily take on the adjustment job for my customer. And he did. The shop completed the repair quickly and expertly. Most surprising, when it came time for me to discuss payment for services, Mike simply replied, “Don’t worry about it.” Not only did this repairer take on a job he didn’t have to, with a strange shop from New Jersey he had never heard of, but he did it gratis. In a world of “what can you do for me,” it was refreshing and such a pleasant surprise to deal with someone operating from a “what can I do for you” mindset.

Mike, I’d like to sincerely thank you again for the great experience working with you and your facility. By now, you’ve realized that I am the president of the Alliance of Automotive Service Providers of New Jersey (AASP/NJ). I will be sharing my experience with you to our membership, and wanted to share it with the readers of our official publication, New Jersey Automotive, as well. I’d like to meet you in person and shake your hand, and would like to formally invite you to visit our association’s flagship event, the NORTHEAST 2014 Automotive Services Show, happening March 21, 22 and 23. And to our readers, I’d like you to remember that sometimes, “what can I do for you” extends beyond the customer-shop relationship…with wonderful results.

Thanks again, Mike!

NJA Mike Fiore, owner of Mike's Auto Body, and his family.

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EXECUTIVE DIRECTOR’S MESSAGE

A DRP Network vs. Repairing the Property Option

by Charles Bryant

Listen up, collision industry!

There is a huge difference between an insurer referring an insured to a list or

network of DRP shops and the insurer requiring the insured to have a vehicle repaired at one particular shop. In this article,

Visit us at NORTHEAST® Booth #400

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I will attempt to provide a clear understanding of these differences. The information herein is based on research of these issues, and should not be considered legal advice, nor should it be substituted for legal advice, a legal interpretation or legal representation.

In a DRP network scenario, it is common practice for the insurer to recommend that the insured take his or her vehicle to a shop on a list of five or six (or sometimes more) shops that have entered into a Direct Repair program created by the insurer. The insurer will often lead the insured to believe that he or she will be much better off using one of the DRP shops for repairs, and will do all in their power to convince, persuade or even intimidate that insured into utilizing that shop. Some insurance companies are very aggressive in their attempts, even if the insured has already chosen to have his or her vehicle repaired at an independent shop.

The strategy of urging the insured to use a DRP shop is done very skillfully, so the insurance company will not be put in a liable position for interfering with the contractual relationship between the insured and the insured’s shop of choice (when one exists). However, the insurer will often do everything but tell the insured the sun will shine brighter if they choose their DRP facility. If the insured is convinced by these efforts, he or she then chooses the DRP shop based on location, initial impression or who knows, maybe the shop owner just happens to have a nice smile. Whatever the reason, the bottom line is that the insured is the one who actually chooses the shop to repair the vehicle. Even though the insurer does all in their power to get the insured to use a recommended DRP shop, the insurer will usually make it clear that it is ultimately the insured’s choice. This is for good

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EXECUTIVE DIRECTOR’S MESSAGE

reason, which we will get to shortly.

In New Jersey, the regulations governing fair claim settlement practices allow insurance companies to recommend a repair facility to repair the insured’s vehicle. If the insured requests, the insurer must recommend a qualified repair facility at a location reasonably convenient to the insured that will perform repairs at the insurer’s estimated cost. However, if the insurer recommends a DRP repair facility, they must recommend a shop that issues written

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guarantees that any work performed in repairing damaged vehicles meets generally accepted standards for safe and proper repairs. Ultimately, the insurer must cause the damaged vehicle to be restored to the condition it was in prior to the loss, at no additional cost to the insured and within a reasonable time, if the repair facility recommended by the insurer does not fix the damaged vehicle in accordance with generally accepted standards for a safe and proper repair. What that means is that if the DRP

shop that was recommended by the insurer does not repair a vehicle properly, the insurer can - and will - put pressure on that shop to either correct the problems with the repairs (if the insured is willing to let the shop make them), pay to correct the problem at another shop chosen by the insured or to ultimately buy the vehicle from the vehicle owner to solve the problem and get themselves off the hook. When I say, “put pressure on,” I mean the insurer makes it clear – and in some cases, may actually threaten – that the shop will be removed from the program if they don’t do one or the other. Ultimately, if the DRP shop recommended by the insurer does not satisfy the insured, the insurer would have to step up and pay to correct the problem, even if it means paying for the vehicle as a total loss after the insurer has already paid to repair the vehicle at their DRP shop. I’m sure many of you have seen or at least heard of certain DRP shops actually buying a car from a customer when that customer complains that his or her vehicle has not been repaired properly, or has not been put back to a safe operating condition, and it can be proven. This is usually done to keep things quiet in hopes that the insurer will let them stay on the Direct Repair Program.

Collision shops are constantly complaining about tactics utilized by certain insurers to get the insured to go to one of their DRP shops, which is commonly referred to as “steering.” In the State of New Jersey, an insurer is allowed to recommend a shop.

However, as already discussed, certain rules apply when they do. Because the regulations that govern fair claim settlement practices in New Jersey contain a provision that the insureds have the right to use the shop of their choice (and that the insurer must make all reasonable efforts to reach an agreed price with the shop), you may automatically think that an insurer can never insist that an insured goes to a different shop. Well, in reality, nothing could be further from the truth. In looking at a standard ISO auto policy, the reason will become clear.

In a standard ISO auto policy’s Payment of Loss provisions, there is a provision that allows the insurer to choose the option of paying for a loss in money or repair,

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versus replacing the damaged or stolen property. Now, we all know the insurers always wind up writing a check to pay for the repairs. However, that doesn’t mean that they have to. In fact, this Payment of Loss provision actually allows the insurer the right to repair the property, instead of writing a check for the repairs to the shop chosen by the insured. If the insurer chooses to repair the insured’s vehicle (that is, physically take the vehicle to a particular shop or limit the insured's choice to one particular insurer-chosen shop), the election must be in writing, addressed to the insured and contain a reasonable estimate of the time period within which the vehicle will be repaired.

This is clearly explained in the New Jersey regulations governing fair claim settlement practices. When an insurer chooses to repair the insured’s vehicle, the insurer basically becomes the contractor for the repairs and has the right to dictate how the vehicle will be repaired, what kind of parts will be used, how the cost of materials will be calculated and how much they are willing to pay for the repairs. Under this scenario, the regulations right here in New Jersey make it clear that it is the insurer that must provide the guarantee, in writing, that the work performed meets generally accepted standards for safe and proper repairs.

The following is a key piece of information that many shop owners may not be aware of: When an insurer recommends a repair facility as provided for in the regulations, they never recommend just one repair facility. They always provide the insured with a list of facilities or a network of facilities and then tell the insured to choose any one of the shops on the list that they would like to repair their vehicle. This is a key factor that everyone should be paying close attention to. By the insurer recommending a list or network of shops that they claim will make life wonderful, rather than limiting the insured’s choice to just one particular shop, they are eliminating the chance of being accused of having chosen the shop that repaired the vehicle. The information being disclosed in this article is extremely important; every shop in the country should be aware of it. If, after extensive research on this issue, it can be proven that the insurer

chose the shop to perform the repairs (which would equate to the insurer choosing to repair the property), the insurer can be held liable for negligent repairs and any damages that flow from that negligence.

This includes any injury that resulted from (or was directly related to) the negligent repairs. However, based on the research, in order for the insurer to be on the hook for negligent repairs right along with the shop that performed them, it has to be proven that

the insurer chose the option to repair the vehicle, or that the insurer refused to allow the insured to choose the shop to have the vehicle repaired at and instead chose the shop for him or her.

With this knowledge, it should now be much easier to understand why certain insurers are so aggressive in their attempt to continued on pg. 58

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Visit us at NORTHEAST速 Booth #406

For all we have to offer, visit us at

www.nucarparts.com Scan the QR code for Nucar Wholesale Parts 18

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VENDOR SPOTLIGHT

HERE TO STAY: FLEMINGTON AUDI/VOLKSWAGEN/PORSCHE THRIVES INTO THE FUTURE If you ever need proof that success and longevity are possible in the automotive business, have a look at Flemington Car and Truck Company.

Founded in 1976, the Flemington family of dealerships currently boasts 17 franchises carrying Ford, Lincoln, Nissan, Porsche, Volkswagen, Audi, BMW, GMC, Buick, Chevrolet, Chrysler, Dodge, Jeep, Ram Trucks, Infiniti, Subaru and Cadillac. Through the hands-on guidance of owners Steve Kalafer and Byron Bisby, Flemington Car and Truck Country has achieved numerous accolades including the People Magazine Award for Outstanding Service and the New Jersey Automotive Dealer of the Year Award. Simply put, this Garden State institution represents the very best of the best. ur, Fred Laschi y, Paul Hunt, Brian Seymo Left to Right: Brian McEvo ed: Tim Arencibia) and Rich Muir (not pictur

The Flemington Audi/Volkswagen/Porsche parts department is open 8am to 5pm Monday through Friday. For more information, please call (800) 216-5124.

The high level of service offered by the Flemington family of dealerships is exemplified by its Audi/Volkswagen/Porsche operations, which were launched in 1985. Housing a combined $850,000 inventory of OEM parts and delivering to a 60-mile radius with the help of 16 drivers, the department is comprised of 10 industry veterans including Parts Manager Rich Muir, who boasts four decades in the business. He is joined in the Audi/Volkswagen/Porsche operation by fellow industry veterans Brian Seymour (formerly the parts manager at Millennium Volkswagen), Brian McEvoy, Tim Arencibia, Fred Laschi (formerly the parts manager at Straub Buick) and Paul Hunt (formerly with the James Toyota Group). By utilizing the 100 years’ combined experience of these knowledgeable professionals, Flemington Audi/Volkswagen/Porsche offers a level of customer care that is unmatched by the competition. It is not uncommon for Flemington Audi/Volkswagen/Porsche’s shipping/receiving team to start their days at 4am to ensure that parts are ready to be sent to customers as soon as the department opens its doors for business. An active participant in CollisionLink, the department works hard to make sure that customers are assisted through every step of the parts-ordering process.

“We communicate with shops all the time as to when they’re going to have a part, or why they don’t have it,” Rich says. “We’ve driven almost down to the end of Long Island for parts, and we’ve driven down to Maryland to get a customer a back-ordered piece.

I think that separates us.”

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Additionally, all delivery trucks are equipped with GPS to ensure that drivers are using the best routes possible to get parts to shops as quickly as possible.

Not surprisingly, this commitment has paid off: In January alone, Rich’s department generated $586,000 in wholesale. In his mind, this success stems from having greater Audi, Volkswagen and Porsche inventories than most of his competition.

“You can have all the trucks on the roads and the best inventory and discounts, but that doesn’t matter if the guys can’t get you the right part,” he says. “Everybody is selling the same parts, but inventory is still key. If a customer needs something that is after cutoff and would take two to three days to get because it is not in a local warehouse, we have it here.”

While many dealerships win customers over by offering steep discounts, Flemington Audi/Volkswagen/Porsche will continue to earn support through their consistency and dependability long after those other operations discount themselves right out of business.

In the ever-demanding world of collision repair, shops need to know that their parts suppliers are able to weather the ups and downs of the industry and survive. As anyone who has ever ordered a part from Flemington Audi/Volkswagen/Porsche’s extensive inventory knows, this parts department is built to last.

NJA

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Visit us at NORTHEAST速 Booth #300

Visit us at NORTHEAST速 Booth #300

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NEWS FROM TOYOTA

Toyota Rides High with All-New 2014 Highlander After a year of tremendous sales

he 2014 Highlander is a no-compro- growth and customer satisfaction, is available with a hybrid powertrain.

The manufacturer’s suggested retail mise, mid-size, three-row SUV that Toyota started 2014 strong with the price (MSRP) for the new vehicles ranges brings together the best in style, techunveiling of the all-new Highlander. from $29,215 to $49,790. The all-new nology, comfort, capability and safety. Its exfuel-efficient Highlander Hybrid arrived at terior design conveys both refinement and strength, which complements a totally redesigned interior that will Toyota dealers in mid-February.

The Highlander has had four straight years of volume growth, raise the bar in its segment.

With three-row seating for up to eight, an array of standard fea- with more than 127,000 sold in 2013 (up nearly six percent over tures, a host of available in-cabin technologies and increased cargo 2012 sales). Four months ago, the Highlander had its best Decemcapacity, the new Highlander offers a nuanced balance of style, ber sales month ever, taking 8.5 percent share of the segment with comfort and utility. The total package is capped off with three pow- over 12,000 units sold! Toyota expects to sell 140,000 Highlanders ertrain choices: A fuel-efficient four-cylinder engine, a powerful in the US in 2014 — an increase of about 10 percent over 2013.

The 2014 Highlander’s arrival on the market is the latest chapV6 with a new six-speed transmission that will produce excellent all-around capability and a V6-powered Hybrid Synergy Drive ter in Toyota’s celebrated history. Last year, the manufacturer sold powertrain that delivers fewer emissions and segment-leading more than 2.2 million vehicles, a 7.4-percent increase over 2012, with 60 percent of their volume coming from new or updated prodmiles-per-gallon for a three-row mid-size SUV. The new Highlander’s interior utilizes premium materials to ucts. The new Highlander also demonstrates Toyota’s continued offer an upscale experience, with most models featuring standard commitment to the Mid SUV market. Mid SUVs comprise more contrast seat stitching. All Highlanders will come equipped with a than 10 percent of light vehicle sales, which equates to about 1.5 soft-touch instrument panel and silver-painted, satin and chrome- million units, and the segment continues to outpace the industry plated accents that are thoughtfully placed throughout the interior. growth rate. Additionally, Mid SUVs are the fourth most-intended Wood-grain pattern trim can be found on the front dash and door segment overall, and the second most-intended light truck segment trim of Limited-grade models for an added touch of elegance. Pre- (just behind small SUVs.) The segment has grown as consumers mium fabrics, available smooth and perforated leather-trim seats, a have left body-on-frame entries in favor of car-based, unibody alleather-wrapped steering wheel and shift knob add to Highlander’s ternatives – and more and more families are opting for Mid SUVs redesigned upscale interior. The adoption of a high-quality knit roof over minivans.

On the fun side, Toyota recently announced an exciting new lining and available second-row sunshades add to Highlander’s repartnership with Disney and the Muppets. Highlander and the Mupfinement and comfort.

The Highlander is available in four well-equipped grades: LE, pets have teamed up for a series of family-friendly adventures that LE Plus, XLE and Limited. Each grade offers both front-wheel was kicked off with a 60-second spot during Super Bowl 48 on (FWD) and all-wheel-drive (AWD). AWD gas models will include February 2. This month, the Highlander will even join the Muppets standard Dynamic Torque Control. on the red carpet for their new movie premiere, Muppets Most All Highlander grades feature a 3.5-liter V6 engine and new Wanted.

More information on the Toyota Highlander is available at six-speed electronically-controlled automatic transmission that offers selectable manual sequential shifting. The LE grade is also www.toyota.com/highlander.

NJA available in a 2.7-liter 4-cylinder engine, while the Limited grade

T

Toyota continues to revolutionize the Mid SUV market thanks to the 2014 Highlander.

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NEWS FROM AUDI

RAISING THE BAR: Inside Audi’s Certified Collision Repair Center Program

Already known for its firm commitment to advancing repair technologies and customer service, Audi is now revolutionizing the collision repair field in new and exciting ways thanks to its Certified Collision Repair Program.

Through the program, Audi is working to establish a network of certified shops for improving Audi owners’ overall experience, while also providing Audi customers with repair solutions that meet Audi specifications.

Audi of America’s collision repair strategy is to align a minimum of one collision repair facility with every retailer. Audi customers calling Audi Roadside Assistance for collision repair will be referred to the nearest Audi Certified Collision Repair Center. Audi Collision Repair Centers can use this affiliation to market their services to customers and insurers. Training can be obtained through ICAR, Axalta Coating Systems training (or other Audi-approved suppliers’ OEM paint training courses), Audi of America, Inc. and other AUDI AG-approved paint suppliers. Authorization lasts 12 months, with re-authorization required at the end of that time period.

The Audi Certified Collision Repair Center Program offers Audi dealers a way to provide world-class collision repair that guarantees the installation of Genuine Audi replacement parts on their customers’ vehicles. In addition, customers can rest assured that the repairs to their vehicle are up to Audi standards and specifications. In addition to having easy access to OEM standards and recommended repair procedures, participating centers receive dealer referrals for being a Certified Collision Repair Facility.

Not surprisingly, a growing number of shops in New Jersey are embracing the Certified Collision Repair Center Program. For Ben Dello Buono, owner of Bens Auto Body in Haledon, becoming an Audi-certified facility provides an opportunity to maintain his business’ longstanding commitment to staying ahead of industry procedures. In addition to Audi, his 8,000-square-foot, 12-bay shop (which currently does repair work for Town Audi in Englewood) is certified for Lexus, BMW, Jaguar and Land Rover and is aiming to be Porsche-certified in the near future.

Pleased to be a Certified Collision Repair Center, Dello Buono is quick to recommend the process to his fellow shop owners.

“Cars are changing, and this is the opportunity [to get] inside how the manufacturer is telling you to fix the [vehicles],” he says.

“It’s just not about getting a car in and [your techs] knowing it’s a quarter panel or just a door skin; there are a lot of critical parts on cars, and crush zones and stuff like that. [Audi shows us] what they want and the tools [shops] should be using.”

AAA-approved with certifications in Volkswagen and Mercedes-Benz, K&H Automotive in Hamilton is another shop that jumped at the chance to become a Certified Collision Repair Center.

With sponsorship support from Princeton Audi, their 10-bay, 16,000square-foot facility successfully completed the Audi training process in order to elevate the quality of its repairs and expose itself to a new demographic.

“What certification does for us is bring in a whole new customer database,” says owner Joe Krebs.

Best of all, Audi certification offers Krebs a new opportunity to showcase his business’ high level of professionalism. With nearly four decades in the industry under his belt, he stands behind his work with great pride.

“It’s my name on every single car that leaves this facility,” offers the AASP/NJ member, who owns K&H Automotive with his brother Al. “With that being said, it doesn’t matter who’s paying me; we will push every insurance company in this country to pay us what we feel we need to be paid to bring the car back to ‘pre-accident condition.’”

While having “Certified Collision Repair Center” attached to your shop has its advantages, Dello Buono cautions that any certification is only as good as a shop’s willingness to put those skills into action.

“Once you’re certified, you still have to do a good job – and fast,” he says. “These customers don’t want to come back; you need to do it right the first time. You have to produce.”

For more information on the Certified Collision Repair Program, please visit www.audiusa.com.

NJA

Left: Bens Auto Body in Haledon celebrates their Audi certification. Right: Al (left) and Joe Krebs of Audi-certified K&H Automotive

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COVER STORY

If you want to stay on the cutting edge of the collision repair and automotive service industries, you need to be one of the thousands who will be at the 2014

©istockphoto.com/Oliver Malms

NORTHEAST Automotive Services Show.

TOMORROW’S INDUSTRY TODAY: New Technologies Drive NORTHEAST® 2014 by Joel Gausten With only a few days to go until the east coast’s largest industry show hits the Meadowlands Exposition Center on March 21-23, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) is gearing up for easily the largest turnout they have ever welcomed in the event’s 37-year history. In fact, the show has completely sold out of booth space - a NORTHEAST first.

“This is, by far, the most excited we have ever been about a NORTHEAST show,” says AASP/NJ President Jeff McDowell. “We have never seen a response like this. It just goes to show that hard work and persistence pay off. We have faced some challenges over the 37 years, especially over the last decade or so, but without a doubt, it’s looking like NORTHEAST 2014 will be the best show we have ever presented.”

In addition to a celebrity appearance by Overhaulin’ TV legend Chip Foose (who will be signing autographs in booth #227 on March 22 thanks to Platinum Show Sponsor BASF) and a live broadcast by “The Car Doctor” Ron Ananian, NORTHEAST 2014 will showcase some of the industry’s most impressive and fastest-growing repair technologies. Whether it’s the latest information on aluminum repair or revolutionary new ways to write estimates, this year’s show will provide attendees with the knowledge necessary to thrive in an ever-changing profession.

Tom Smetanka, general manager of NORTHEAST exhibitor Central Paint/ColorSource, feels that Foose’s involvement has brought a whole new level of excitement to the show.

“When Chip attends an event, it gets immediate recognition,” he says. “He’s an industry leader; people want to see him and be part of the excitement.”

Central Paint will be using NORTHEAST 2014 as an opportunity to promote ColorSource, a group of independent distributors in the US that only sell single-line distribution of BASF paint.

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region will join Central Paint in promoting the group throughout the weekend.

In addition to his active support of NORTHEAST as a exhibitor, Smetanka encourages members of the AASP/NJ community to take in as many of the show’s special seminars and educational opportunities as possible.

“There’s a lot of unrest in the industry, such as State Farm’s PartsTrader program,” he offers.

“Shops feel the need to get to the seminars and educate themselves. If they’re in the business, they should want to get as much information as they can, and AASP/NJ can help them move into the future with some of these clinics.”

When on the show floor, attendees will be among the very first to receive an up-close look at the all-new 2015 Ford F-150. NORTHEAST Gold Show Sponsor Ford Motor Company will continue the launch of the new vehicle, re-designed with a high-strength steel frame and a body constructed with high-strength, militarygrade aluminum alloy, at NORTHEAST 2014.

Ford’s 2,000-square-foot display will feature 2015 Ford F-150 collision repair information including design for repairability aspects, enhanced service information, information on training courses and recommended tools and equipment for repairing the vehicle. Ford plans to display a cutaway 2015 F-150 that will feature the improved repair elements of the truck. The cutaway’s details include a look at the separately serviceable lower control arm brackets, the inner fender reinforcements that can be replaced more easily, the floorpan, crossmember and rocker panel sectioning opportunities along with the new b-pillar design that can be replaced without disturbing the roof.

To explain these re-design improvements in more detail, Ford Service Engineers Larry Coan and Gerry Bonanni will be conducting daily presentations about the new F-150 in the demonstration area throughout the entire show. Ford also plans to provide attendees with information about Ford Customer Service Division’s (FCSD)

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collision parts programs, consumer awareness efforts and updates to Ford’s National Body Shop program to support the new 2015 F-150. The National Body Shop program is designed to identify and promote to consumers those collision repair facilities that have the right tools, equipment, training and facilities necessary to repair all Ford and Lincoln vehicles. Information regarding the body shop program will also be presented to attendees in more detail by Melissa Lester, collision marketing manager for FCSD, who will host a seminar regarding the National Body Shop program (and other collision-related programs) on Friday and Saturday.

Aluminum repair information will also be offered by first-time NORTHEAST exhibitor Innovative Solution & Technology (www.isatwelding.com), who will be on the NORTHEAST floor to showcase a variety of products including the Pro Spot Aluminum Weld Station, which includes a portable welding cart, welder(s) and all accessories necessary for aluminum dent pulling. The Aluminum Weld Station features a Pro Spot AL-5 Capacitor Discharge Stud Welder, which is designed for aluminum dent pulling. Additionally, the company will offer the ProSpot SP-5 Smart MIG, which has three MIG torches that can be set up for three different base metals. The company will also use NORTHEAST as an opportunity to debut the PR-5 Riveter, a self-piercing riveter tool used for joining two aluminum panels back together. More information on this new tool can be found at http://prospot.com/products/riveter/. Innovative Solution & Technology Sales Representative Nick Mattera is looking forward to answering any questions that attendees have about aluminum repair and assist them in embracing the equipment necessary to get the job done right.

“There are definitely misconceptions about aluminum out there,” he says. “I think most of that comes from the fact that today, most aluminum parts are throwaway parts because there hasn’t been a lot of aluminum structure parts on a vehicle, period. Now, as

we’re starting to see more and more aluminum parts, the focus from an insurance standpoint is on the repairability of these parts. There are two things that we really need to address with aluminum; one is a tear, and one is a dent. We have products to help with both of those.”

Tom Churchill, co-owner of first-time NORTHEAST exhibitor Model Electronics (www.modelelectronics.com), signed up early to participate in the action on the show floor. With over 30 years’ experience, Model Electronics, Inc. specializes in the repair, remanufacturing, sales and distribution of factory-installed automotive electronics such as radios and instrument clusters. Over the years, the company has partnered with some of the most wellknown automotive brands such as General Motors, Nissan, BMW, Visteon, Delphi, Honda and many more.

Churchill hopes his first NORTHEAST experience will introduce attendees to his company’s services and remanufacturing process.

“Remanufacturing means ‘like new,’” he says. “The product comes to you with no scratches, blemishes or anything else. It has to have the feel, the fit and the function of everything that comes with a brand-new product.

“The car companies themselves drive these programs,” he adds. “They don’t want to build new parts forever, and they don’t want to stock these parts [for] cars that go out that are two or three years old. They don’t want to continue to build new. It’s not cost-effective. Remanufacturing is done basically at 50 percent of the cost of the new product.”

Another first-time exhibitor, Keith Egan of paint distributor RW Mallon, will use NORTHEAST 2014 to unveil his latest venture, the Collision Equipment Company.

In the planning stages for the last 18 months, the new enterprise has partnered with equipment companies from the United Kingdom to import products that will offer tremendous advantages to shops that perform aluminum repair and other

high-tech operations. Some of these imported pieces can be viewed at www.beta ginnovation.com.

Ultimately, Egan wants NORTHEAST attendees to gain as much information on aluminum repair as possible in order to effectively keep up with the changes going on around them.

“Shops are going to have to re-invest in their facilities and equipment,” he says. “If they can start to educate themselves on what it takes to utilize the equipment, and [utilize] the training that’s provided, they’ll be in a place as time goes forward to repair these vehicles when they come to their facility. Shops are going to be at risk if the new Ford F-150 rolls in and they don’t have the equipment. The insurance companies will say, ‘Well, we’ll have to send it down the street.’”

Revolutionary technology is also driving Toyota of Hackensack’s two-booth NORTHEAST display. Returning to the show after a three-year break, Parts Manager Paul Cimillo and his crew will be on hand to discuss two very important advances in Toyota’s technology offerings: Auto PartsBridge (APB) and the Predictive Estimating System. Auto PartsBridge is an online parts ordering system that gives customers access to OEM parts sold by their local dealer at competitive prices. Benefits of the program include improved cycle time due to the quick reception of competitive quotes on OEM parts and full customization capabilities to fit a shop’s current parts ordering process.

“I love talking to people about Auto PartsBridge,” Cimillo says, “I really believe in it; nowadays, we have to compete with the aftermarket somehow.”

Toyota’s “Predictive Estimating” is a new program that allows repairers to view all of Toyota’s repair recommendations for a particular repair with the touch of a computer key. Instead of starting an estimate off with a sheet of blank paper and adding items, estimators now enjoy a program that automatically fills in the appropriate operations and parts based on the type of vehicle continued on pg. 59

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.youtube.com/user/ AASPNJNORTHEAST) or on Twitter @AASPNJNORTHEAST. Free online registration is available at www.aasp njnortheast.com/registration.shtml.

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8AM

9AM

SEMINAR A

10AM

NORTHEAST® 201 11AM

12PM

1PM

2PM

3PM

FRIDAY, MARCH 21 (SHO

SEMINAR B

2014 East Coast Resolutio & Leadership Meet Hosted by AASP/NJ & NORTHEAST Seminar

SEMINAR C SEMINAR D

UPSTAIRS PRESS ROOM

SATURDAY, MARCH 22 (SH Audi Retail Parts & Accessories Managers Me

AASP National Spring Board Meeting

SEMINAR A SEMINAR B

The “Gauges” of Your Business

SEMINAR C

W

Unleashing Your Secret Power

UPSTAIRS PRESS ROOM

SUNDAY, MARCH 23 (SHO

I-CAR Vehicle Technology & Trends 2013 (NEW13)

SEMINAR A

I-CAR Aluminum-Intensive Vehicle

6th Annual

SEMINAR B

NORTHEAST Family Day

SEMINAR C

Presented by AASP/NJ

SEMINAR D New Jersey Automotive

Painting With N Inside the Co Industry’ Best-Kept Se

Ford’s National Body Shop Program and Related Information

Tactically Lean: Connecting the Dots Between High-Minded Lean Concepts & Real-World Results

SEMINAR D

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The Traditional Buying Process Turns Digital: Are You Keeping Up With the Changes?

Business Continuation Planning: Inside Buying or Selling a Business

March 2014

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0 1 4 AT A G L A N C E 4PM

5PM

6PM

7PM

8PM

OW HOURS 5PM - 10PM)

lution Forum Meeting NJ & SCRS inar Area

9PM

PartsTrader Comes to the Northeast: NOW WHAT???

Ford’s National Body Shop Program and Related Information

10PM

11PM

12AM

NORTHEAST 2014 Exhibitor Appreciation After-Party Presented by AASP/NJ SEMINAR AREA **This event is open to NORTHEAST Exhibitors Only.**

Unleashing Your Secret Power

HOW HOURS: 10AM - 5PM)

ts & s Meeting

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ALSO HAPPENING AT NORTHEAST 2014:

g With Nitrogen: e the Collision ndustry’s -Kept Secret

Best Practices for Welding & Estimating

(as of 2/24/14; visit www.aaspnjnortheast.com/seminars-demos.shtml for updates and registration info!)

• Celebrity appearance by Chip Foose, star of Overhaulin’, courtesy of Platinum Show Sponsor BASF @ Booth #227, Saturday, March 22 10am - 2pm • First Annual NORTHEAST / Natural Glass Corvette Association (NGCA) Car Show • Live Radio Broadcast by Ron Ananian, “The Car Doctor”, Saturday, March 22, 2pm-4pm • Virtual Paint Tournament, courtesy of VRSim, @ Booth #733 • Custom Paint Demos by Artist Javier Soto @ Booth # 731 • “2015 F-150 Repair Information” Demo, presented by Gerry Bonanni and Larry Coan, courtesy of Gold Show Sponsor Ford, throughout the weekend @ Demo Area • “Calculating Frame/Uni-Body Setup and Realignment,” presented by Larry Montanez III; facilitated by Metropolitan Car-O-Liner, @ Booth 117/217 Saturday, March 22, 8:30am (PRE-REG REQUIRED!) • AND MORE!

HOW HOURS: 10AM - 3PM) icle Repairs (ALI01)

BOXES ARE CATEGORIZED AS FOLLOWS: DEMO *Held in Demo Area (700 aisle) unless otherwise noted.

SPECIAL EVENT

OWNER/MANAGER SEMINAR PAINTER / ESTIMATOR/ TECHNICIAN SEMINAR

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Over 300 booths and 150 vendors across 55,000 square feet of floor space!

FRIDAY, MARCH 21 5PM-10PM SATURDAY, MARCH 22 10AM-5PM SUNDAY, MARCH 23 10AM-3PM

NORTHEAST® 2014 features industry-leading 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!

FREE

Save time - pre-register online at www.aaspnjnortheast.com

MEET INDUSTRY ICON CHIP FOOSE STAR OF OVERHAULIN’ at NORTHEAST 2014 courtesy of BASF at Booth #227 Sat., March 22 10am - 2pm* Autographs and photos with Chip Foose will end promptly at 2pm.

Sorry, no exceptions. ** Schedule subject to change.

Follow us on

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©istockphoto.com/Franck-Boston

FEATURE

PartsTrader Comes To the Northeast:

NOW WHAT? With State Farm’s controversial PartsTrader program starting in New Jersey and New York on March 10, AASP/NJ is using the upcoming NORTHEAST® Automotive Services Show in Secaucus, NJ as a way to assist members in better understanding the concept of insurer-mandated parts procurement, share experiences from those who have already dealt with PartsTrader and detail ways various state associations are looking to address the issue.

Hosted by SCRS Executive Director Aaron Schulenburg,the special panel (scheduled for 6pm to 8pm on Friday, March 21) is slated to include participation from Barry Dorn of the Washington Metropolitan Auto Body Association (WMABA), Ed Kizenberger of the New York State Auto Collision Technicians Association (NYSACTA), New Jersey attorneys Joshua S. Bauchner and Mitchell Portnoi and Tom Elder of Auto Body Distributing Co., Inc. (ABD).

At the time of this writing, WMABA was busy promoting House and Senate bills in the Maryland Legislature that seek to prohibit “a specified adjuster, appraiser, insurance producer or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle.”

Dorn is hopeful that passage of the legislation would go a long way in addressing his members’ concerns over PartsTrader

in their markets.

“All of the suppliers that we have spoken with both before and after the rollout of the program believe that this is a waste of their time and resources,” he says. “I have spoken to no one within the parts community who feels that this adds any value to them or their customers. The general consensus is that they are all working a lot harder for less volume.”

WMABA’s efforts in the Legislature echo ongoing State House efforts by NYSACTA. “In our state, an insurance company cannot require that repairs be made to a vehicle at a specific place,” offers Kizenberger.

“To add to that, [our legislation] says, ‘…nor require a repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of the motor vehicle.’ It’s very basic and obviously a tortious interference-type approach, where nobody should be requiring anybody to use a particular shop or a concern, whether it be an auto body repair facility, a vendor or any other process.”

For Elder, whose group represents 40-plus automotive wholesale dealers in New Jersey, PartsTrader’s arrival introduces the possibility of tremendous production delays for his members. continued on pg. 59

The PartsTrader-Information Provider Connection As New Jersey Select Service shops begin to implement the PartsTrader system, New Jersey Automotive is hearing a variety of concerns from readers. One common complaint involves the Information Providers’ relationship with the parts procurement system.

For example, a Select Service shop owner contacted our offices after viewing a State Farm webinar on how to use PartsTrader through his Audatex Estimating System.

“In the menu of the Audatex Estimating System, there’s going to be a button that says ‘PartsTrader,’” he explains the shop owner. “ When the estimate is written, before it is locked, I would hit this ‘PartsTrader’ button.

That estimate would get reviewed and the parts would be sent out for bid.”

The AASP/NJ member was quick to make his feelings on Audatex’s involvement with PartsTrader known.

“This is another segment of the market now stacked against the body shops,” he says. “The people who provide us the ‘guidelines’ on writing estimates have just partnered up with a company that’s going to hurt us.”

Rick Tuuri, vice president of industry relations for AudaExplore, insists that Audatex’s involvement with PartsTrader is simply the result of a desire to serve two major clients – State Farm and the shops that use the PartsTrader system.

“Our focus is really on making the workflow between our clients and their trading partners as smooth as humanly possible,” he says. “Quite honestly, when I hear the noise, buzz or the emotions around PartsTrader or other issues, I have to put that aside. If that is the result of the relationship you have established with your trading partner, whatever you think of that isn’t all that relevant to my job. My job is to make whatever process our clients decide to use as smooth, easy, quick, streamlined and transparent as possible.”

PartsTrader integration is also available through Mitchell and CCC. Look for a further examination of the IP-PartsTrader relationship in next month’s New Jersey Automotive.

NJA

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LEGAL FEATURE

by Mitchell H. Portnoi, Post, Polak, Goodsell, MacNeill & Strauchler

Property Tax Appeals for 2014 Tax appeals must be filed annually before April 1 or within 45 days of the bulk-mailed assessment notices. Where a municipal-wide reevaluation or reassessment has been implemented, the deadline is May 1. Once filed, a hearing is scheduled before the County Tax Board, which consists of commissioners appointed by the Governor. The taxing district is represented by a municipal attorney. A hearing is not always necessary, as it is possible that the municipal attorney and the taxpayer may agree to a settlement of the dispute.

In 1973, the NJ Legislature adopted a formula known as “Chapter 123” to test the fairness of an assessment. Once the Tax Board determines a property’s true market value during an appeal, they are required to compare true market value to assessed value. The laws governing tax appeals can be found in NJSA 54:3 et seq. and 54:4 et seq. and New Jersey Administrative Code 18:12A et seq.

An “assessment” is an opinion of value by a licensed professional. For an assessment to be considered either excessive or discriminatory, it must be proved that the assessment does not fairly represent one of two standards: The “True Market Value” standard and the “Common Level Range” standard. The licensed

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professional may be either a realtor or a licensed appraiser.

Property tax assessments are significantly easier to evaluate in a residential setting, where there exist comparable homes which have recently sold in a given area. A realtor can give a solid opinion by using statistics of these recent sales. In a commercial setting, it is a bit more complicated when a property is unique to a given area, and it is more likely that a professional appraiser is necessary to evaluate the property and give his/her opinions as to the value of any given property. Additionally, commercial property owners are required to provide an income statement when filing an appeal on special forms provided by the assessor. An appeal by a business entity other than a sole proprietor must be prosecuted by an attorney licensed to practice in New Jersey.

For questions regarding the appeal of your tax assessment, please call me at (973) 228-9900. This firm handles the Municipal Taxing Authority from towns in both Union (Mountainside) and Essex (South Orange) Counties. We are extremely familiar with the process and uniquely qualified to assist with your property tax appeal, should the same be warranted.

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: Visit us at NORTHEAST® Booth #519

800-763-6574

or visit www.amatoagency.com 4900 Rt. 33 - Ste. 103, Neptune, NJ 07753 Phone: 732-530-6740 Fax: 732-530-6727

New Jersey Automotive

Visit us at NORTHEAST® Booth #519

March 2014

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FEATURE

Right to Repair Agreement

©istockphoto.com/shironosov

Spurs New Debate

by Joel Gausten

On January 22, a number of major players in the ongoing national Right to Repair debate announced that they had reached an agreement to do away with the issue once and for all.

The Alliance of Automobile Manufacturers (Alliance), the Association of Global Automakers (Global), the Automotive Aftermarket Industry Association (AAIA) and the Coalition for Automotive Repair Equality (CARE) issued a joint statement detailing their collective acceptance of a national agreement, based on a recent law finalized in the Commonwealth of Massachusetts, to “ensure consumer choice in post-warranty auto repair.” The signed “Memorandum of Understanding” (MOU) extends the essential provisions for all light vehicles negotiated in the Massachusetts law nationwide, impacting “all companies and organizations that are currently members of the signatory associations.” Additionally, the statement revealed that “the Alliance, Global, AAIA and CARE will stand down in their fight on ‘Right to Repair’ and work collectively to actively oppose individual state legislation while [their] respective groups work to implement this MOU. In the meantime, the parties agree that further state legislation is not needed and could serve to weaken the effectiveness and clarity of the MOU.” “We are excited that consumers and independent repair facilities around the nation will have the same access to the information, tools and software needed to service late-model computer-controlled vehicles as is required under the Massachusetts Right to Repair statute,” offered Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association, in a prepared statement. “We believe that the resulting competitive repair market is a win-win for car companies, the independent repair industry and most importantly consumers.”

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Per the “Memorandum of Understanding,” manufacturers will have to provide access to all of their vehicles’ onboard diagnostic and repair information through the use of a basic, off-the-shelf personal computer (PC) starting with Model Year 2018. Additionally, for passenger motor vehicles Model Year 2002 and newer, “each manufacturer of motor vehicles sold in the United States shall make available for purchase by owners and independent repair facilities all diagnostic repair tools incorporating the same diagnostic, repair and wireless capabilities that such manufacturer makes available to its dealers. Such tools shall incorporate the same functional repair capabilities that such manufacturer makes available to dealers.

Each manufacturer shall offer such tools for sale to owners and to independent repair facilities upon fair and reasonable terms.”

Despite the positive spin offered in the joint announcement, the “Memorandum of Understanding” has been greeted with skepticism by other members of the automotive community. On January 23, AAA issued an official statement indicating their belief that the agreement didn’t go far enough to guarantee consumer choice and control.

“AAA has promoted this issue for years because most consumers want the ability to choose their preferred mechanic,” offered AAA President and CEO Bob Darbelnet. “While this agreement has benefits for consumers, it is not a comprehensive solution. Vehicles are changing rapidly and more must be done to guarantee consumer choice and control of vehicle data in the future.” The statement added that AAA “believes that automakers continued on pg. 59

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The 6th Sense

©canstockphoto.com/72soul

NO BRAKES

by Ron Ananian

Since cars are built by people, it would make sense that people can fix cars. Actually, sense has a lot to do with it. How many senses do you think you have - and use - to repair cars?

Humans possess five senses: Sight, sound, smell, touch and taste. You will use most of them to repair cars over your lifetime.

(I hope you don’t taste your repaired vehicles often.) However, there is a sixth sense that comes into play, too.

Recently, a 2004 Toyota Sienna came into R\A Automotive.

The customer complaint was of a slight pull to the left; the vehicle also needed an oil change. The oil change was slightly…well, very (a year) overdue. But the biggest concern the customer had was the pull. It would almost make a solid left turn while driving down the road. Several shops had looked at it for the pull and had given a variety of opinions and diagnoses, proposing everything from needing brakes to alignments to struts. It was the variety of solutions that left the customer nervous; he wanted “a definitive answer,” in his words, so it ended up in my bay.

First impressions are the most important. It was sitting a little lower in the left front than other corners. The road test verified that the vehicle did have a pull or drift left. Braking made no difference. In the bay, I jumped right in. There was a very harsh burning smell, almost like the brakes were binding. By touch, I could feel the heat coming off the front wheels without physically making contact. Were the brakes the issue, or was the suspension at fault?

And why the smell?

Using one sense can usually lead you to use another. After using enough senses, I knew what was wrong without making another move or taking another road test.

The Bottom Line is…

It really does take all your senses to repair cars. How does it smell, feel, sound and look? These are the most common. But what about our sixth sense – which, by way, is the least-used these days: Common sense?

Back to the Toyota. Like so many of its generation, this vehicle had run-flat tires. These tires will keep a vehicle on the road and running even when there is no air in them.

The left front tire was out of air; it had one and a half pounds left in it. The design of the tire kept the vehicle upright and moveable, but not level or straight on the road. There were no real exterior signs of low tire pressure; at least not like we have been trained by time and experience to notice. The smell was that of burning rubber, as the edges of the tire were dragged along the ground.

After setting the tire pressure to factory specifications, I road tested it. As suspected, the Sienna was back on the straight and narrow. When I explained it to the customer, I heard, “Oh.” When pressed, he explained that the tire pressure light had been going off for some time, but no one could figure out why. They just kept resetting the light. As a matter of fact, the customer didn’t want us to spend time diagnosing it, so he (knowing how it worked after everyone else had done it in front of him) turned off the light when he dropped it off in our parking lot.

That makes four shops and one vehicle owner using only five of their six senses. Common sense isn’t so common anymore.

I believe I’ve heard that before.

Bye for now. See you on the radio…

NJA

’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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Meet the Car Do ctor during his LIVE broadcast at NORTHEAST 20 14

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Visit us at NORTHEAST速 Booth #237

Visit us at NORTHEAST速 Booth #237

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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

New Jersey Supreme Court to Address Statute of Limitations for Contribution Claims under the Spill Act – Under the Spill Compensation and Control Act (“Spill Act”), the owners of contaminated property in New Jersey who have expended funds to clean up their property are permitted to seek contribution from prior owners and other parties that were responsible for causing the contamination. However, there is an ongoing debate in New Jersey concerning whether owners are subject to a time limitation for making such claims. Previously, trial level and lower level appellate courts in New Jersey determined that there was no time limitation for seeking contribution from those responsible for contamination under the Spill Act. Thus, a business that sold a property decades earlier could still be liable for the cleanup despite having no remaining connection to the property.

However, in a recent Appellate Division decision in Morristown Associates v. Grant Oil Co., 432 N.J. Super. 287 (App. Div. 2013), the Court decided that the six-year statute of limitations that generally applies to all actions for trespass and tortious injury to real property also applies to contribution claims under the Spill Act. This decision brought the State courts in line with the United States District Court of New Jersey, which has also applied the six-year statute of limitations to Spill Act contribution claims.

The consequences of imposing a six-year statute of limitations to contribution claims are quite significant.

Often, contamination is not discovered by a property owner until years after the discharge of a hazardous substance on the property. For those that discover the contamination more than six years after the discharge of a hazardous substance, a strict interpretation of the six-year statute of limitations may bar any action for contribution against the parties actually responsible for the discharge.

In order to soften the blow, the plaintiff in Morristown Associates sought to have the “discovery rule” applied, which would delay the running of the six-year clock until the property owner or other party conducting the remediation discovered, or should have discovered, the contamination. Although the Appellate Division considered the plaintiff’s request, it ultimately agreed with the trial court that the circumstances did not warrant the application of the discovery rule because the plaintiff should reasonably have discovered the contamination more than six years before the contribution claim was filed. In reaching this conclusion, the trial court found (and the Appellate Division agreed) that the plaintiff was not diligent in the investigation of potential contamination and could not rely on the discovery rule.

Given the importance of this issue to all property owners and the divergence in State court decisions over the years, the New Jersey Supreme Court has decided to hear the appeal of the Morristown Associates case.

Non-parties to the case, such as the League of Municipalities and a group of property owners called the Innocent Landowners Group, are eagerly seeking to participate in the case. Although no date has been assigned for oral argument, the progress of this case should be monitored by who owns, buys or sells property that may be contaminated.

For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 6310600. 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

Replacement cost is provided on most property insurance policies. However, insurance companies are rarely contractually obligated to pay more than actual cash value (ACV) as of the time of the loss unless - and until - the damaged or destroyed structure is actually repaired or replaced. For those policies that provide ACV, some courts have developed three primary rules to measure ACV:

• Market Value rule: The difference between the market value of the property before and after a loss.

• Broad Evidence rule: Where consideration is given to its replacement cost, its market value, its income derived from its use, its age, depreciation and opinion given by a qualified valuation expert.

• The most common rule is applying a “Replacement Cost Less Depreciation.” Under this rule, depreciation is deducted from the estimated cost to repair or replace the damaged property to determine its ACV.

Although we always recommend you insure your property using “replacement cost,” there are times when an insurance company will only insure a property using ACV. Make sure your agent is covering you properly.

As always, please contact us if you have any questions regarding your insurance coverage.

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

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

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The Automotive Recyclers Association of New Jersey

March 2014

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Mike Lovullo Distributor for

and

Micro-Mix Paint and Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.

Call Office: (973) 696-3176 or Cell: (201) 452-0987

Visit us at NORTHEAST速 Booth #319 New Jersey Automotive

March 2014

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Visit us at NORTHEAST速 Booth #211

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EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 17 convince, persuade or intimidate the insured to go to a DRP shop. When the insurer is able to get the insured to go to a DRP shop, they can realize the savings achieved through not having to pay the salary (or the

expenses) for the appraiser to inspect the vehicle, never mind things like the storage that insurers save at DRP shops or the savings that result from the restrictive repair guidelines of the particular program. At the

Visit us at NORTHEAST® Booth #100-105

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same time, because of this manipulated procedure, the insurer can claim the vehicle owner chose the shop to repair the vehicle, and that any negligent repairs are the responsibility of the shop that performed the repairs. Thus, the insurer is not on the hook for any negligent repairs.

With this knowledge, independent shops should keep in mind that if an insurer wants to dictate how a vehicle is going to get repaired, they have the right to do so, as long as they are willing to accept the liability that comes with the option to repair the insured’s vehicle under the payment of loss provision in the insurance policy. It is because of this knowledge and information becoming more publicly known that certain shops have started to ask insurance companies to sign a statement accepting liability when the insurer insists on repair procedures that the shop feels might result in an improper or unsafe repair.

Because this type of information has started to circulate throughout the collision industry, more and more insurers are requiring DRP shops to sign hold harmless agreements and agree in advance to reimburse the insurer for any legal fees, should the insurer be sued along with a shop as the result of the repairs performed by the DRP. At the same time, the insurers are creating the guidelines that the DRP shops must follow if they wish to participate in the insurer’s program. As a result, we are hearing of more and more shops removing themselves from DRP relationships; this has never happened until recently. If asked, my advice to shops would be to be careful what they sign! If anyone would like to discuss anything referenced in this article, please feel free to call the AASP/NJ Hotline at (732) 922-8909 or email me at setlit4u@ msn.com.

NJA

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FEATURE

COVER STORY

continued from pg. 44

continued from pg. 31

must help ensure the consumer rights of transparency, choice and security as cars increasingly transmit data outside the vehicle.”

Sal Risalvato, executive director of the New Jersey Gasoline-ConvenienceAutomotive Association, tells New Jersey Automotive that the appearance of the “Memorandum of Understanding” will not prevent his organization’s ongoing efforts to get a Right to Repair law passed in New Jersey. In addition to concerns that the MOU doesn’t adequately address information-access issues pertaining to heavy-duty vehicles, Risalvato believes that the agreement does little to actually ensure that its

provisions will be enforced throughout the industry.

“When they say they’re going to do a Memorandum, there is no reason why we can’t memorialize it in law, because then they can’t back out of it,” he says. “It’s too hard to go after them at a later date to say they’re not holding up their end of the bargain…There’s nothing in law that compels them to do what they’ve said they’re going to do.”

New Jersey Automotive will provide updates on this story as it develops.

NJA

FEATURE continued from pg. 35

“Based upon what I’ve read and seen, I don’t think it improves the cycle time or efficiency in any way, shape or form,” he says. “Those I’ve talked to say it adds a lot of steps on both ends – getting a price quote from the dealer and then going back and updating the price quote into the estimate and putting that all together…You can’t even give a copy of an estimate to a customer until you have this done, which could take anywhere from one to two hours.”

AASP/NJ Executive Director Charles Bryant has encountered his own share of negative feedback from the field.

“Most of the shops on the State Farm program are being very tight-lipped about the PartsTrader program,” he explains. “I get the feeling that some who are on the program are there as a self-defense method to prevent steering from their own shop.

Right or wrong, they certainly do not seem very happy about being a part of it.”

Although PartsTrader is the most talked-about parts procurement platform on the market, it is important to note that they are one of several products hitting the marketplace. New Jersey Automotive continues to receive reports that PartsCheck Live has been building a relationship with California Casualty, and that uParts is testing a

program with GEICO in establishing a presence in the procurement arena. Meanwhile, Liberty Mutual is said to be moving forward with a parts program through APU Solutions (a Solera company), who are also involved with American Family. Additionally, CCC recently launched the CCC TRUE Parts Network.

In Dorn’s mind, the potential use of these products by a multitude of carriers could result in unneeded headaches at the shop level.

“Can you imagine having to source parts and supplies in this way with five or more different insurance companies all using different platforms?” he asks. “You would need three to four administrative personnel for every one productive person.”

If you have questions about how PartsTrader and/or insurer-mandated parts procurement will affect your business, don’t hesitate to register to attend this special event at http://tinyurl.com/NE14PT Panelregistration.

NJA

being repaired. From that point, estimators can then simply remove the information they don’t need. According to Cimillo, the system aims to greatly simplify and streamline the Toyota repair estimating process.

“If it takes an hour to replace a fender, it’s going to be an hour in every shop, not one guy writing a half hour and another guy writing an hour and a half,” he says.

In addition to these impressive offerings, Cimillo also plans to add a dash of fun to his display by bringing along a 1977 Toyota Land Cruiser.

For his first NORTHEAST appearance in four years, Sandor Epstein of Eppy’s Tool & Equipment Warehouse (www.eppys.com) is looking forward to great attendance and a chance for people to meet some of his staff to feel comfortable doing business with his firm while also receiving significant savings on their tool and equipment purchases. This year, Eppy’s will be offering a NORTHEAST Show Special on an SK tool set.

“We will offer one of the most popular SK ratchet sets at a significant savings,” Epstein says. “The price will only be available at the show, and will have inventory in the booth to fill the orders immediately.

“We will be displaying the full range of SK hand tools along with some of our specialty tools and diagnostic equipment,” he continues. “Matt Eckhardt, the SK sales manager, will be working the booth with us for the entire weekend. We will have our new 116page catalog available, along with free membership in Eppy’s Mechanic’s Tool Club, which now has over 11,000 active members.”

Other key NORTHEAST events include exclusive industry educational seminars and technical training (see schedule on page 32), a special panel on Insurer-Mandated Parts Procurement (see page 35), the annual SCRS Northeast Leadership Meeting and the AASP National Board Meeting. Attendees will also get to test their skills and win prizes during the Virtual Spray Painting Tournament, experience hands-on custom painting by Javier Soto, visit the Natural Glass Corvette Association’s Corvette Car Show and more. In addition to generous support from Platinum Sponsor BASF and Gold Sponsor Ford, AASP/NJ gratefully acknowledges the support of Attendee Prize Sponsor Axalta and General Sponsor Harbortouch.

NJA

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Acme Nissan ..........................................21 Amato Agency ........................................41 Automotive Art Refinish Products............12 Audi Group ..............................................26 Auto Body Distributing ............................11 Axalta Coating Systems ..........................IBC BMW Group ............................................28-29 Bridgewater Acura ..................................40 Brogan GM Parts Center ........................53 Cadillac of Mahwah ................................39 Classic Audi ............................................17 Clinton Acura ..........................................53 Contemporary Motor Cars ......................42 Cosmos ..................................................16 Crane Chevrolet ......................................55 Crashmax ................................................8 Crestmont Toyota ....................................57 Crestmont VW ........................................61 Empire Auto Parts ..................................62 Flemington Group ..................................23 FMS ........................................................4 Future Cure ............................................58 Glen Toyota ............................................OBC Hackettstown Honda ..............................39 Help Wanted............................................55 Hyundai Group ........................................49 JMK BMW ..............................................13 JMK Saab/JMK Fiat ................................54 Mike Kaufmann Group ............................13 Krehel Auto..............................................33 LKQ ........................................................50 Maxon Mazda..........................................6 Maxon Hyundai ......................................45 Mazda Group ..........................................43 Mercedes Benz of Freehold ....................54 Mini Group ..............................................19 Mini of Manhattan....................................9 Mitsubishi Group ....................................37 Mopar Group ..........................................5 CCC Comp-Est ......................................55 NORTHEAST® 2014 ..............................34 NU-CAR ..................................................18 Parkway Toyota ......................................20 Paul Miller Audi ......................................47 Porsche Group ........................................51 PPG ........................................................3 Prestige Motors ......................................61 PPGMS ..................................................38 Princeton BMW ......................................15 Princeton Mini ........................................56 Saw Mill Auto Wreckers ..........................56 Sherwin-Williams ....................................10 Subaru Group..........................................60 Town Audi ................................................50 Toyota Group ..........................................24 Toyota of Hackensack ............................IFC Valtek ......................................................36 VIP Honda ..............................................40 VW Group ..............................................46 VW of Freehold ......................................57 Wheel Collision Center............................36

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Visit us at NORTHEAST速 Booth #427

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