Texas Automotive January 2020

January 2020 $5.95

STRIVING FOR A UNITED FUTURE: An Industry Roundtable Discussion

PLUS State Farm Suit Escalates “Who Enforces Policyholder Rights?”

Help ABAT Help You www.grecopublishing.com The official publication of the Auto Body Association of Texas

Contents

JANUARY 2020

on the

cover

Official publication of the Auto Body Association of Texas

STRIVING FOR A UNITED FUTURE:

ABAT BOARD OF DIReCTORs Vice President Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

An Industry Roundtable Discussion

16 DEPARTMENTS

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

PResIDeNT’s messAge By Burl Richards Help Us Help You

8 12 20

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

Treasurer David Osburn South West Collision Center dosburn@southwestautogroup.com (855) 395-2720 Executive Director Jill Tuggle jill@abat.us (817) 899-0554

ABAT BOARD memBeRs

By Joel Gausten

4

President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391 Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

LOCAL NeWs State Farm Ordered to Produce Documents In ABAT Member Case PUBLISHER Thomas Greco / thomas@grecopublishing.com

AsK THe eXPeRT By Robert L. McDorman “Who Enforces Policyholder Rights?”

SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com

VeNDOR sPOTLIgHT Park Place Motorcars

GRAPHIC DESIGNER Lisa M. Cuthbert / lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com

ASSOCIATION NEWS

EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com

22 ABAT memBeR APPLICATION

OFFICE MANAGER Donna Greco / donna@grecopublishing.com Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

ADVeRTIseRs’ INDeX 300 Advantage ....................................................8 AAMStraining.com ..............................................15 Advanced Automotive Equipment ..................4 AkzoNobel ............................................................6 Axalta ......................................................................IFC BASF........................................................................10 Beacon Equipment Resources ........................13 CAR-O-LINER Southwest ..................................7 Collision Consultants of Florida ......................14 Dallas Parts Distribution Center ......................OBC

Ecotech ..................................................................IBC English Color and Supply ..................................9 FindPigtails.com ..................................................9 Innovative Collision Equipment........................19 Park Place ..............................................................11 Reliable Automotive Equipment ......................5 Spanesi ..................................................................19 Tasco Auto Color..................................................21 Wheel Technologies............................................15 ZB Negotiations....................................................18 3 JANUARY 2020 Texas Automotive

www.grecopublishing.com TEXAS AUTOMOTIVE is published monthly and is sent to ABAT and HABA members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2020 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. Stock Images courtesy of www.istockphoto.com.

President’s Message

Help Us Help You

W Welcome to 2020! I hope this year brings you great happiness in your lives and success with your businesses. With everything going on in our industry right now, I doubt things will get any easier for us over the next 12 months. at is why we need you – members and non-members alike – to keep us moving forward.

ABAT is still a relatively young association, and I believe we have achieved a lot in a short period of time. However, our ongoing presence in our state will depend on more active participation from shops, vendors and other collision repair professionals. We continue to grow our numbers, but it’s time for us to take a massive leap forward with our membership. We’re only as strong as our size, and we need all hands on deck to truly effect

change and address the issues that hinder our ability to protect consumers and perform proper repairs.

In the months to come, ABAT will be announcing a host of new benefit programs that will only be available to members of our association. Not only will these benefits cover most (if not all) of your membership dues, but they will go a long way in helping your shop rise above challenges and provide greater value to your employees. e only way for you to take advantage of these things will be to join ABAT. We’re here for you, but we need you to return that support by being members and staying involved. is is a very difficult profession, but those shop owners within our association who have applied the information and philosophies

4 January 2020 Texas Automotive

Burl Richards ABAT President they’ve learned at our meetings and our Texas Auto Body Trade Show have seen tremendous changes to their bottom lines and daily practices. We are here to assist you in better learning the rules of the game and finding new ways to address longstanding issues. If you’re a continued on page 21

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6 January 2020 Texas Automotive

Local News

State Farm Ordered to Produce Documents in ABAT Member Case As this issue went to press, Harris County Precinct 8-1 Justice of the Peace Holly Williamson granted a request by ABAT member Larry Cernosek (Deer Park Paint & Body; Pasadena) for discovery documents in his $10,000 lawsuit against State Farm.

As of this writing, the insurer had 30 days to provide documents in regard to (among other things) Labor Rate calculations, adjuster training, its inclusion of OEM specifications in its repair determinations and how it defines “pre-accident condition,” “reasonable and customary” and “prevailing rate in a market area.”

“It’s going to be unbelievable when they produce those documents,” Cernosek tells Texas Automotive. “It could be volumes.”

Filed last summer, Cernosek’s suit alleges that the insurer committed tortious interference on five repairs by refusing to pay for a variety of charges that his shop deemed justifiable. A trial is set for March.

To help prompt a positive response to his request for discovery documents and better demonstrate his reasons for pursuing

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the suit, Cernosek submitted letters he received from the Texas Department of Insurance (TDI) stating that it was incapable of adequately addressing complaints he had filed against other insurers. In a July 2015 letter sent to Cernosek in response to his complaint against GEICO, the Department stated the following: In regards to your concern about the definition of reasonable charges, whether associated fees are reasonable depends upon the facts associated with each individual claim, [we] cannot provide a standard definition for reasonable fees […] It is never our desire to have consumers pursue their complaint through the civil court process.

However, there are times when the parties involved remain in disagreement after we have completed our review. When we are unable to resolve the dispute between the company and the claimant, the venue for resolution of such matters is the civil court system. e Department offered this response in an April 2018 letter to Cernosek in regard to a complaint he had filed against Allstate:

“

TDl does not determine what the exact Labor Rate is or should be in a particular geographical area. When two parties continue to disagree on what is a reasonable cost or price for a particular service, the ultimate resolution must be obtained in a court of law.

It’s going to be unbelievable when they produce those documents,” Cernosek tells Texas Automotive.

“It could be volumes.”

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Cernosek, who has a history of settling short-pay cases against “numerous” insurers, notes that unlike those cases, his current litigation against State Farm will result in the discovery documents remaining in the court records despite any confidentiality agreement that could be reached between the parties before or during the trial. “e good thing is all the documents are in the case file and will remain there for our industry’s benefit,” he says.

Further coverage of this case will be featured in next month’s Texas Automotive.

To learn more!

8 January 2020 Texas Automotive

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11 January 2020 Texas Automotive

Ask the Expert “Who Enforces Policyholder Rights?”

Dear mr. mcDorman:

Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution.

As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in 24 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35+ years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-of-the-art, comprehensive, accurate, unbiased and up-to-date data and information that all parties can rely upon as both factual and objective.

Robert can be reached at (800) 736-6816, (817) 7565482 or asktheexpert@ autoclaimspecialists.com.

In your september 2019 article (“How many Times Does This Happen”), a reader referred one of their clients to you with a 2014 maserati ghibli. The stated Oem blueprint to return the vehicle back to its pre-loss condition was $9,084.43. The carrier deemed the vehicle a total loss even though their own assessed value was $23,581. With your assistance, the collision facility was able to return the maserati back to its preloss Oem condition and collect $1,743 in storage and blueprint fees, and the client received an additional $6,682.94. How were you able to do this? This exact situation routinely happens at our facility, and I am regularly told by the carrier’s management when questioning their claims management decisions that the company has the absolute right to liquidate a claim in any manner it wishes. Is this true? Who, if anyone, is responsible for enforcing policyholder rights? ank you for your questions. Please allow me to answer the most important question first. Who enforces the policyholder rights? e Texas Department of Insurance has the responsibility to protect the insured. e agency is responsible for enforcing the Texas Insurance Code, regulating the insurance business, protecting consumers, ensuring fair competition among companies and fostering the stability of the insurance market. As for your question about whether it is true or not that carriers can liquidate claims in any manner they wish, the answer is more complicated. Are they legally able to do so? Absolutely not. Legally, they are bound by their contractual obligations and state regulations and statutes. Are they effectively able to do so? Do they have any fear of or respect for regulators responsible for looking after policyholder rights? I would have to say the jury is still out on this question. e liable carrier for the aforementioned claim was GEICO. In relation to the insured’s policy right of repair or replace, the GEICO policy stated the Limit of Liability would be the lessor of the actual

cash value or the amount necessary to repair or replace the property with another of like kind and quality. As the insured’s public insurance adjuster, I brought this to the attention of the insurer’s management. I was informed that the carrier reserves the absolute right to deem a vehicle a total loss at its discretion. I vigorously contested this claim and again pointed GEICO management to its policy. e company refused to follow the insured’s policy right and deemed the vehicle a total loss. We often see such improper actions and defiance on the part of select carriers. Unlawful as it may be, the bad behavior continues to worsen, and denials of insured policy rights continue to expand.

After the denial of the policyholders’ rights to replace, Auto Claim Specialists, on behalf of the client, invoked his right of appraisal in contest of the loss. Vehicle Value Experts was named as the client’s independent third-party appraiser. In this instance, GEICO (which is not always the case with a number of carriers as of late) honored the policyholder’s right of appraisal, named its independent third-party appraiser and notified Auto Claim Specialists. Vehicle Value Experts and the GEICO independent thirdparty appraiser then agreed that the actual cash value of the Maserati was $28,900 plus applicable sales tax minus the deductible. e net settlement increase was $5,651.44 (or 23.2 percent). We see similar results many times a day in our office. e final settlement for the vehicle was $29,988.25 after the deductible. GEICO deducted the retention value of $14,220.88. GEICO issued the insured and their lender a check for $15,767.37.

After the $9,084.43 payment to return the car to its OEM pre-loss condition, our client applied the remaining $6,682.94 to his loan. Also, GEICO paid the collision facility $1,743.00 in storage and blueprint fees.

GEICO could have returned this vehicle back to its OEM pre-loss condition for $9,084.43. Instead, it paid $15,767.37 and $1,743.00 in storage and blueprint fees for a total of $17,510.37. Sometimes greed does not pay – but sadly, too often it does.

Auto Claim Specialists has identified a widespread unfair claims settlement practice being

12 January 2020 Texas Automotive

By Robert L. McDorman

committed by certain Texas carriers. Many Texas policyholders are being harmed by their carrier’s denial of their policy rights. On September 13, Auto Claim Specialists began turning over information, audio files, claim numbers and supporting documents to the Texas Department of Insurance in support of this allegation. We respectfully requested that the Texas Department of Insurance issue an immediate cease and desist order from the Commissioner instructing carriers with an appraisal provision in the policy to stop denying the insured’s right of appraisal following the discovery of under-indemnification given a reasonable time period for discovery. We further requested a bulletin from the Commissioner stating the unlawful act mentioned above has been brought to the attention of the Texas Department of Insurance.

We have been told by the Texas Department of Insurance that this topic has been placed on its agenda to address in the near future. We can all hope that the days of ignored and snubbed policyholder rights are coming to an end in Texas!

Over the years, we have handled thousands of complex appraisal clause assignments. e catalyst for an unsatisfactory claimhandling situation is typically inexperience, a refusal to listen to or comprehend the facts, greed, disrespect, stubbornness, ignorance

and an inability or unwillingness to learn and/or change. e appraisal process in most policies allows the insured a means for relief by granting the insured the right to remove the inexperienced claim handler’s ability to mismanage the claim and place it in the hands of experienced professionals to adequately assess and manage the loss. e spirit of the Appraisal Clause is to resolve loss disputes fairly and to do so in a timely and cost-effective manner. rough the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased experienced independent third-party appraisers as opposed to costly and time-consuming methods such as mediation, arbitration and litigation.

Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies in our library. Always keep in mind a safe repair is a quality repair and quality equates to value. I thank you for your questions and look forward to any follow-up questions that may arise.

13 January 2020 Texas Automotive

Sincerely, Robert L. McDorman

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Cover Story

STRIVING FOR A UNITED FUTURE An Industry Roundtable Discussion Why join a collision repair or mechanical association? What are the major goals these groups aim to accomplish?

How can members make the most out of their dues? Where is the industry going from here? To find answers to these questions, we sat down with ABAT President Burl Richards, Washington Metropolitan Auto Body Association (WMABA) President Torchy Chandler, Alliance of Automotive Service Providers of Massachusetts (AASP/MA) President Molly Brodeur, Alliance of Automotive Service Providers of New Jersey (AASP/NJ) President Jerry McNee, Alliance of Automotive Service Providers of Minnesota (AASP-MN) President Carl omas and Wisconsin Auto Collision Technicians Association Ltd. (WACTAL) President Larry Terrien for a frank and in-depth discussion on what they each see as the biggest problems facing the field and how being involved in a state group can improve conditions for everyone.

Texas Automotive: What is the primary focus of your association on behalf of your membership?

Burl Richards: Education is the first thing that comes to mind.

We do that on various levels. We educate shops by providing them with industry leaders and OEM information and stress the need for proper and safe repairs. I believe that if they do that, it takes care of a lot of our industry’s

issues. If every shop was looking up all the OEM procedures and focusing on fixing the vehicle properly, this industry would change overnight. ey would find out quickly that fixing a car properly takes a large investment. All of these shops that supposedly don’t ask for processes and procedures would have a different outlook and attitude. Secondly, we educate legislators on the issues we’re dealing with. Of course, we can’t have any success with that unless we’re also educating the consumer.

Torchy Chandler: e main objectives for WMABA are preventative advocacy, educating our members and industry at large and disseminating priority or actionable information. We keep on top of local legislative and regulatory discussions and work alongside our affiliate associations on initiatives that benefit the entire industry.

Molly Brodeur: Our primary focus is education. Whether it be estimating tips and tools, negotiation skills, the technology evolution or total loss settlements, we are constantly adding to our members’ wheelhouse so they can effect change in their businesses.

Jerry McNee: Support, education, collaboration and sharing information. ere is definitely strength in numbers, and we

16 January 2020 Texas Automotive

achieve that through the training programs that we sponsor and put together, among other things. We give back to the industry. At the end of the day, we all volunteer to look out for the good for our community and our customers. Without AASP/NJ, we wouldn’t fare as well as an industry.

Carl omas: Our primary focus is all about providing the best possible outcome for businesses, whether they are collision repair or mechanical. We’re here to ensure the success, profitability and longevity of our industry.

Larry Terrien: Our mission is to help provide a future for the collision repair industry. We do this by providing many member benefits, such as business insurance, a personal concierge program that directs customers to member shops, several retail discount programs, credit card processing, web design/hosting, a customer service survey [CSS] program, consumer brochures/signage, conferences/trade shows, a scholarship program and lobbying efforts.

By Joel Gausten

TXA: What are some of the biggest issues impacting your members at the state level, and how has your association worked to identify and address them?

ple getting involved in the industry. Addressing that will be the biggest thing for the sustainability and success of our businesses.

BR: Quite honestly, under-indemnification by insurers for safe and proper repairs is the biggest issue. Unfortunately, it’s all based on the ‘prevailing’ rate because of the language in the insurance policies. e Texas Department of Insurance won’t follow up and do its job. is leads to the fact that we need specific legislation that identifies that issue. e shops that are trying to get things done are being under-indemnified. I get calls all the time from members who say, ‘is insurance company is refusing to pay for this.’

Members are looking for help with how to deal with this and other problems.

LT: One of our most recent efforts was successfully passing legislation that specifically allows us to replace information labels on vehicles that contain the VIN.

TC: Insurer relations issues come up weekly, if not daily. We assist with useful information or contacts at higher-than-local levels.

Many times, this will also involve the consumer. ere are changes in technology for vehicles that happen daily, and helping repairers stay on top of that is a high priority.

Helping to offset the cost of doing business is also a focus of ours, and utilizing benefit programs is one way our shops can take advantage of their membership.

MB: e biggest issue affecting members at the state level is the Labor Rate. With the lowest reimbursement rate in the country, our members are challenged to invest in their businesses and properly train and retain technicians.

JM: We’ve tried to set up meetings with the New Jersey Motor Vehicle Commission for body shop licensing and with the New Jersey Department of Banking and Insurance, legislators and lobbyists on other issues. e insurance companies are chipping away at these entities to get what they want, so we need to be doing the same. To do this, we need more involvement from our members.

CT: Staffing is the largest issue in this industry right now. Trying to find quality technicians is a struggle – which I’m sure is the case in any trade. We have a lack of peo-

TXA: In a perfect world, how would you and your association define an appropriate shop/insurer relationship?

BR: e shop would provide supporting documentation from the OEMs, I-CAR and the estimating database – basically a blueprint – that outlines all necessary safe and proper repairs. e shop would repair the vehicle based on that information in addition to its expert opinion, as they are the ones liable for the repair. e insurer then indemnifies the insured or claimant and walks away. e insurance company is the bill payer, not the repair professional. Stop letting them dictate the repair.

TC: An appropriate shop/insurer relationship should first and foremost put the customer/policyholder first. e shop – if negotiating repairs – is responsible for ensuring a safe and proper repair, which includes proper procedures, parts procurement and more. e insurer is responsible for making the policyholder ‘whole,’ which to us means reimbursing for that safe and proper repair while supporting industry best practices for usage of OEM recommendations or requirements. In disagreements, there should be straightforward processes for remediating the problems, including fair and transparent escalation steps.

An example of that is the appraisal clause and using that for the benefit of mediation.

MB: An ideal relationship would have an understanding of each other’s roles in the repair process. As the repairer, the vehicle owner is our customer, and we are charged with repairing the vehicle to pre-loss crash worthiness by utilizing our trained expertise and the proper equipment guided by the OEM repair procedures. e insurance company is obligated to indemnify their

17 January 2020 Texas Automotive

policyholder and pay for the required repairs to the vehicle.

JM: Essentially, a good shop-insurer relationship would have an insurance company – especially upper management – realize they can’t condense, restrict, hold back or neglect some of the things that need to be done. Include procedures and hourly rates in that. Many shops are giving it away for free – which the insurance companies expect. We’re at a pivotal point in business where our costs are continuously increasing, yet the insurance companies are unwilling to move. ere has to be an understanding between the insurer and the shop; they have to understand this can’t continue to strangle this industry.

LT: In a perfect world, both body shops and insurers would understand who their customer is and always put their interests first.

Body shops would understand that it is their job to repair the vehicle to the best of their ability and that they bear 100 percent of the liability for those repairs for the life of the vehicle. erefore, they would always use all of their knowledge and expertise and all of the resources available – OEM recommendations, position papers, etc. – to perform these repairs properly. Body shops would never allow a third party to influence how these repairs are made.

Insurance companies would always understand that their only job is to compensate the shop that their customer chose for the repairs. ey would understand that it is not their job to direct customers to a particular shop, source parts and dictate what parts are used, prescribe repair methods and procedures, say what they will pay for Labor Rates, parts markup, etc. or to dictate what day of the week to begin repairs and how long the job will take.

TXA: When working to gain new members, how do you answer the question, “What does your association do for me that I can’t do on my own?”

BR: e association provides educational seminars and classes by providing industry experts who teach and train us on all facets

Cover Story of repairs, technology and latest trends, including new advanced materials and vehicle engineering. We also fight for our industry by trying to pass new legislation that will make it easier for shops to repair vehicles properly without the friction costs associated with constantly battling insurance companies for proper compensation for safe repairs.

Shops need to communicate with and learn from each other. ey can also carry a small part of the load by getting behind a specific issue they are passionate about, whether it be helping with legislation, education, fundraising or working with the colleges that are training new auto body technicians. ere are many other important issues to get behind through the association. If everyone does their part, then everyone can contribute and take the load off the few who tend to carry the weight.

TC: WMABA is present at national collision industry meetings, such as the Society of Collision Repair Specialists’ [SCRS] Open Board Meeting and member events, Collision Industry Conference [CIC] meetings, SEMA, AASP/NJ’s NORTHEAST® Automotive Services Show and more. We build national contacts with both vendor and insurance rep-

Let us help make your customer financially whole.

resentatives. We have an ability to escalate industry issues and member inquiries to the highest levels. No one shop would be able to do that themselves without thousands of dollars and hours of investment.

MB: Belonging to an association provides shop owners with education, training, tools and the knowledge they are not alone. ere is strength in numbers. When you are able to tap into the wealth of resources from not only the association but the member shop owners, you are able to make sound business decisions for your shop. ‘All for one and one for all’ is how we are going to help each other ensure vehicles are repaired properly and we are compensated for these highly skilled repairs.

JM: at’s a great question. I spoke to a shop owner yesterday; he was very successful years ago, and he worked very hard to make insurers happy. He said to me, ‘e things I have to go through…What are you doing?’ I replied, ‘Have you heard of the Variable Rate Survey? Do you know about the Database Enhancement Gateway [DEG]? Are you a member of the association?’ He answered, ‘No.’ I told him, ‘You have to come out of

your cave! You need to be a member and get involved.’ We’ve put on more training classes and seminars in our members’ backyards in the past 12 months than we have in years. It’s a benefit to shops to come out, listen to somebody else’s experiences and successes and share their own. You can’t sit back and cry about it; get up and do something about it. If you don’t, then you’re the problem. Don’t blame the insurer.

CT: e reward programs more than pay for the membership, but the real value is in the networking. We recently had a Roundtable with 20-plus members, and not one person walked away without taking something with them and having a good time. Our Leadership Conference every April is a must-attend for anyone who is serious about this industry.

LT: When discussing membership in the association with potential members, I always use the old adage, “United we stand, divided we fall.’ ere is definitely strength in numbers; together, we can accomplish things that individual shops could never hope to do.

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Eric Mckenzie Director of body shop operations for Park Place and newly named vice president of ABAT

Gene Ellison Parts Director

Park Place Motorcars has been serving Mercedes-Benz customers in the Dallas and Collin County area since 1987. With $3.8 million in inventory and over $3 million in total parts sales each month, Parts Director Gene Ellison guides Park Place’s exceptional success. Ellison has been with the company since 1990, and his 40-plus years of experience in the industry help to maintain his dealership’s prominence in the region.

“We specialize in taking care of our local market. We do that without trying to reach out into other markets, other cities or other metropolitan areas, because the further you cast your reach, the less capable you are of taking care of all of those markets.”

Park Place has a full staff with very specific responsibilities within the company.

“We have 35 employees total, including myself. ere are 18 parts specialists, and Mercedes calls them ‘parts specialists’ for a reason. e car brand requires people to specialize, and these are very complex cars. Nine of those 18 [parts specialists] are dedicated to collision; four out of those nine are located at Park Place BodyWerks right across the alley.

Our primary focus on our local market is on that certified collision center, which specializes in high-end luxury collision repair. ey are the stars of our market.

“We’ve got an excess of 40 body shop technicians, and we have warehouse specialists dedicated to organizing collision parts and supplying our own body shop. We also have 13 warehouse people who deal with putting orders up and two outbound delivery drivers who take care of everything.”

Ellison believes it is that laser-sharp focus on the Dallas/Collin County market

that allows his team to prioritize their customers’ needs.

“Part of the goal here in limiting our market is to recognize that we’re not limiting anything – we’re focusing on our primary market. Our drivers treat every delivery like a hot shot. ey’re not on a scheduled route every day; there’s no service that goes to certain places at the same time. Somebody needs a part? It’s off for delivery. “at’s what differentiates us – we’re on the spot. Our off-the-shelf availability is extremely high. Somebody needs an order? ey’ll get it the same day. ey need another part two hours later? ey can have that, too. Another part two hours after that? ey’ll get it.”

As a longtime industry member, Ellison sees insurer interference and the drastic increase in speed of repairs as the two biggest changes to hit the wholesale parts industry.

However, his tenure in the field has aided in his ability to keep Park Place at the forefront of wholesale parts. “e insurance companies have developed a great strength in leveraging the use of aftermarket parts. What we do internally, and what we do as our focus to our local market, is just not cater to any of that. at may be hard-headed, but it’s simple and effective. We provide a fair price and excellent service, and our off-the-shelf availability and 95-plus percent fill rate are extremely helpful. “ere is always somebody who will quote a cheaper price. Sometimes, that person was me. When it gets down to repairing the car, you can’t install price, but you can install the part – there’s a big difference. Our car line is complex; when somebody says they have a Mercedes bumper, there are 13 different front bumpers for the C-Class alone – and that’s just in one specific model year.

Cars need to get fixed with the right parts; that’s what counts, and that’s what we do.”

Additionally, Ellison explained that when people got into wrecks 20-30 years ago, they expected it to take a significant amount to return the car to pre-accident condition. ese days, that’s not the case.

“It’s all fast today. e key piece is just having the parts. In today’s environment, the

Left to right: Millard Hasbrook (manager of BodyWerks parts department), Randy Johnson (wholesale parts specialist), Tom Hoover (wholesale parts specialist), Doug Wofford (wholesale parts specialist), Eric Santibenez (wholesale parts specialist), James Medlock (wholesale parts specialist), Nelson Diaz (BodyWerks parts specialist), Stan Davis (BodyWerks parts specialist), Nick Singleton (BodyWerks parts specialist), Gene Ellison (Park Place Motorcars parts director).

Not pictured: Derrick Turner (BodyWerks parts specialist)

20 January 2020 Texas Automotive

President’s Message continued from page 4

part has to be in stock so we can put it on a truck within an hour and get it to the customer. Our mentality is that a fender is just like a spark plug; spark plugs are small and easy to handle, but fenders are just as necessary. We always need to have them in stock.”

Ellison noted that Park Place Body Werks repairs roughly 500-600 cars each month, which makes it even more important to keep the warehouse as stocked as possible.

“With all those cars coming through, you never know what you’re going to get. If it’s a part for a Mercedes-Benz and it moves at all, we stock it.”

With such a large presence in the Texas automotive world, Park Place is clearly active with the Auto Body Association of Texas (ABAT). In fact, Director of Body Shop Operations Eric Mckenzie has been involved with and has served on ABAT’s Board of Directors since the very beginning. He recently was named vice president of the association, which is well-known throughout the Lone Star State and beyond for its work to fight for consumer rights and proper repairs.

“I am honored and privileged to have been asked to take on the role. Everyone said I was an overwhelming choice, and I am humbled to do so and look forward to continuing on with the success that ABAT has had since it started,” shares McKenzie.

Despite the wholesale parts industry being wildly competitive, Ellison has established Park Place’s reputation as one of the leading Mercedes-Benz genuine parts dealers in the area.

“Yes, it’s competitive. However, we are known as having really good coverage, exceptional people and the capability of best serving the market. We want to position ourselves to be viable and credible to everybody. After decades in this industry, we’ve become the most dependable supplier of genuine Mercedes-Benz parts in our area.

“We know that our body shop needs the parts quickly and accurately. ere are high levels of volume and production, and they’re very demanding – and rightfully so!

We are dedicated to taking care of the luxury car market, and we want to make our customers’ trips as short and simple as possible.”

TXA

21 January 2020 Texas Automotive

member who has benefitted from what ABAT offers the industry, then please spread the word and encourage others to join us. If you’re a shop owner who is not currently a member, give us a year to show you how to shake things up, learn new things, go against the status quo and be a much more profitable member of our community. I promise you that the time you commit to ABAT will be worth it. We just need you to give us a try and come along for the ride. e John Eagle case showed our industry – especially here in Texas – that we all need to get on board with being more educated as professional repairers and owners. e shops that see the big picture are already reaping the rewards.

We’re all fighting the same battles. Why not fight them together?

TXA

burl@burlscollision.com

Auto Body Association of Texas Membership Application Company Name:______________________________________________________________________ Primary Contact: _____________________________________________________________________ Position: ____________________________________________________________________________ Phone Number:________________________________ Direct Line/cell: ________________________ Email: _______________________________________________________________________________ Business address: ____________________________________________________________________

Years in Business: _____________ Website: _______________________________________________ Full 2019-2020 Dues $500 – MSO $250 per additional shop 2019-2020 Affiliate (Vendor) Dues $500 Join online at www.abat.us OR send this form to the address below Credit card number________________________________________________________________ Exp _____________________

By signing below, you agree to pay the above amount and have your credit card put on file for auto renew each year in the amount of $500 to be charged 12 months after joining ABAT. You may cancel this auto renew at any time.

Signature:__________________________________________________________Date: ____________ OR pay online at http://www.abat.us/join-abat/ or make checks payable to ABAT Credit cards are preferred but if you must send a check please submit membership dues to ABAT 1207 N. Frisco St. Henderson, TX 75652

Questions? Please contact Jill Tuggle at 817-899-0554 / jill@abat.us

22 JANUARY January 2020 Texas Automotive

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