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SEPTEMBER 2020
MEMBERSHIP MATTERS: Shops Share What ABAT Means to Them
Major Consent Decree Update 1,000 Consumers Strong The Non-Repairable/Salvage Debate www.grecopublishing.com
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Contents
September 2020
on the
cover
18
MEMBERSHIP MATTERS:
ABAT BOARD OF DIRECTORS Vice President Eric McKenzie
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Shops Share What ABAT Means to Them
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
Treasurer David Osburn ozzy6384@gmail.com Executive Director Jill Tuggle jill@abat.us (817) 899-0554
ABAT BOARD MEMBERS
By Joel Gausten
DEPARTMENTS
6 7 8
PRESIDENT’S MESSAGE By Burl Richards A True Victory for Our Industry
10
EDITOR’S MESSAGE By Joel Gausten Nothing Is Over
12 16 22
Official publication of the Auto Body Association of Texas
ABAT MEMBERSHIP APPLICATION EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle Solving Our Biggest Problem
Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Logan Payne Payne & Sons Paint & Body logan@payneandsons.net (214) 321-4362
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
PUBLISHER Thomas Greco / thomas@grecopublishing.com
VENDOR SPOTLIGHT By Alana Bonillo PPG DEAN GRIFFIN MEMORIAL SKEET SHOOT FLYER
SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert / lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com
ASK THE EXPERT By Robert McDorman
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com
“How Did My Client’s Repairable Vehicle Get Recorded by the Texas Department of Transportation as Non-Repairable/Salvage?”
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 ....................................................25
J &J Auto Body Supply ......................................14-15
Auto Claim Specialists ........................................IFC
Network 1 Solutions ............................................10
Beacon Equipment Resources ........................9
PPG ..........................................................................11
CAR-O-LINER Southwest ..................................3
Reliable Automotive Equipment ......................4
Dallas Parts Distribution Center ......................OBC
Sherwin-Williams/Matrix ....................................17
Ecotech ..................................................................IBC
Tasco Auto Color..................................................21
English Color and Supply ..................................13
USI North America ..............................................20
FindPigtails.com ..................................................13
Wheel Technologies............................................21
Innovative Collision Equipment........................26 5 September 2020 Texas Automotive
www.grecopublishing.com
TEXAS AUTOMOTIVE is published monthly and is sent to ABAT 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
A True Victory for Our Industry
T
is hasn’t been a year of victories for collision repair or (3) exercising any control over the many other industries, but there is an important piece of great activities of any appraiser of damage to news that I’m very happy to share with you. automotive vehicles; Burl Richards As this issue of Texas Automotive was being finalized, the ABAT President Society of Collision Repair Specialists (SCRS ) – a national (4) allocating or dividing customers, group comprised of 40 affiliate associations (including ABAT) territories, markets or business among any that represent 6,000 collision repair businesses and 58,500 appraisers of damage to automotive vehicles; or specialized professionals – announced that it had received assurances from contacts in the US Department of Justice (DOJ) (5) fixing, establishing, maintaining or otherwise controlling the and Senate Judiciary Committee that the 1963 Consent prices to be paid for the appraisal of damage to automotive Decree will be maintained with no plans to vehicles, or to be charged by independent or dealer terminate the agreement. franchised automotive repair shops for the repair of In April 2019, the DOJ announced damage to automotive vehicles or for The survival plans to review nearly 1,300 antitrust replacement parts or labor in connection of the judgments enacted without end dates. Four therewith, whether by coercion, boycott or months later, the 1963 Consent Decree intimidation or by the use of flat rate or parts Consent Decree was identified as part of the larger demanuals or otherwise. is a huge win regulatory initiative. ABAT joined SCRS for all of us. and several other auto body associations e survival of the Consent Decree is a across the country in pushing for support of huge win for all of us. I applaud all the the document. is extensive campaign included members of ABAT who took the time to send in members of the ABAT community writing and/or letters and push to keep this important document signing on to letters to key lawmakers. alive. I also applaud SCRS – specifically Executive Director In a nutshell, the 1963 Consent Decree forbade three Aaron Schulenberg and its Board of Directors – for leading the insurance trade associations and their members (more than 250 charge in making this happen. Without SCRS, the initial at the time) from engaging in several practices, including setting attempts to dismantle the Consent Decree and all that it stands prices and steering automotive repair work away from certain for would have gone unnoticed. auto body facilities. e insurers and co-conspirators involved in is shows us what the collision industry is capable of the Decree were permanently barred from (among other things) through true unity, and it should inspire and encourage everyone placing into effect any plan, program or practice that had the reading this message. We got this done together. purpose or effect of: Every association in this industry is only as strong as its members. As repair professionals, we are only controlled as much (1) sponsoring, endorsing or otherwise recommending any appraiser as we allow others to control us. Take the initiative as an of damage to automotive vehicles; independent shop to stand up for yourself and join others working to make things better. A united industry can move mountains. (2) directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with (a) any appraiser of TXA damage to automotive vehicles with respect to the appraisal of such damage, or (b) any independent or dealer franchised automotive repair shop with respect to the repair of damage to automotive vehicles; burl@burlscollision.com 6 September 2020 Texas Automotive
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 ² 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 7 September 2020 Texas Automotive
Executive Director’s Message
solving our biggest problem
T
realize how much these insurance Things have not looked “normal” around here for some companies are taking advantage of this time now. What a wild world this has become because of lack of knowledge by grossly underCOVID-19. If you had asked me last year what 2020 would indemnifying them. The lawmakers be like, I certainly wouldn’t have said, “Oh, we will probably Jill Tuggle ABAT Executive Director don’t either. cancel every event, brush up on safety precautions from the ABAT President Burl CDC and order face masks for our members.” But Richards and several of our Board members here we are. The one thing that is not canceled is have had meetings over the past five years the 2021 legislative session. So, if I can find with the Texas Department of Insurance a silver lining in all this, it is that we are I would venture (TDI) and Texas lawmakers, and their able to focus every ounce of our effort to say that the response has been that they never hear into growing ABAT membership and single biggest problem of any of these issues. So, we started gearing up for legislation. in the collision repair writing them from our shops. The I would venture to say that the next response was, “Well, we never single biggest problem in the collision industry is the lack of hear any complaints from the repair industry is the lack of consumer consumer education consumer.” We are doing something education on safety issues. on safety issues. about that, too. Unfortunately, the vast majority of ABAT has formulated a document that consumers either don’t understand that not will serve you in two ways. The first way is that it all body shops make safe repairs or frankly don’t will open the dialogue between shops and customers, care, and that’s a pretty big part of our battle for “safe and proper” that needs to be addressed. Customers often don’t which addresses the issues body shops face when dealing with
8 September 2020 Texas Automotive
insurance companies. The second way is that we will gather information from the customer about any unfair or unlawful claims practices they experience. We will have them initial and sign the document, and we will send it to TDI and the
e following issues (and much more) are addressed in the checklist-style letter your customer can sign: u e insurance company requested the use of aftermarket parts and you had to go out of pocket for OE. u e insurance company refused to reimburse you for ANY safety-required procedure, therefore causing you to suffer a loss for that item/procedure (scans, P-Page research, admin fees, etc.). u e customer had to come out of pocket for anything other than their deductible. u e insurance company totaled the car at less than 100 percent of value OR undervalued the customer’s totaled car. u e customer or shop was forced to use aftermarket parts to repair a vehicle.
customer’s local state representative and senator on their behalf. This has the potential to be very impactful. Our goal is to send out 1,000 of these letters. If TDI and local lawmakers are flooded with letters like these from their constituents, they will be forced to listen. We can do it, and we need your participation. Please reach out to me to obtain a copy of the letter and be a part of this initiative.
9 September 2020 Texas Automotive
TXA
jill@abat.com
Editor’s Message
nothing is over
T
î “is was supposed to be the month when ABAT hosted its 2020 Texas Auto Body Trade Show. î “is was also supposed to be the month when I finalized my trip to Las Vegas to attend the SEMA Show in November. Well, neither event is taking place this year. Very little about the industry these days feels the least bit normal. I’m sure your days at your business are being spent in ways you could not have imagined 12 months ago. Although COVID-19 has been a major shock to all of our systems, there is something major to be happy about. As we were wrapping up this issue, news hit that the 1963 Consent Decree was no longer in danger of being terminated by the Department of Justice. Saving this document was an extensive process that was made possible by the strong eorts of ABAT and industry groups across the country. It’s great to have such a powerful win for the industry right now, and every ABAT member who took part in it should be proud of what they accomplished. You can read more
Joel Gausten Editor
about the Consent Decree in this month’s message by ABAT President Burl Richards. î “ere are four months left to this year, and there will surely be a lot of things out of our control. Fortunately, the positive movement surrounding the Consent Decree proves that a connected industry can still move forward despite tremendous obstacles. Sure, we’re using Zoom instead of meeting rooms these days, but the spirit of ABAT and what the Texas automotive community can achieve together remains the same. Until next time, please stay safe and do all you can to remain optimistic. Years from now, we will look back at 2020 as both the industry’s greatest challenge and its greatest victory.
TXA
joel@grecopublishing.com
2
2
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By Alana Bonillo
Virtual learning is one of PPG’s most popular offerings. designed for collision repairers to expand their knowledge in areas including marketing, business development/solutions and repair-related training. Valuing the importance of ABAT, PPG has been working closely with the association since its inception five years ago. e company recognizes the key role ABAT has played in addressing and supporting the needs of the collision industry on multiple levels. Taking part in ABAT’s annual Texas Auto Body Trade Show gives PPG representatives the chance to interact with the ABAT members/supporters and their statewide customer base. As the industry grapples with COVID-19, PPG will continue to be there to assist association members in doing what’s needed to keep the ball rolling. “e industry is currently experiencing never-before-seen challenges for all participants. It’s now more important than ever to support associations like ABAT to explore new and innovative ways to keep up with and understand the changes that are affecting our industry daily. ABAT plays a major role in raising awareness and communicating those changes and needs that will benefit all of us.”
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12 September 2020 Texas Automotive
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The Auto Body Association of Texas Presents The
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16 September 2020 Texas Automotive
A SYSTEM
R EBO OR N w it h e v er yt hing y ou u a s k ed f or in a r e f inish s y s t em – c olor c onsis t enc y and t ools .
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17 September 2020 Texas Automotive
Cover Story By Joel Gausten
Membership Matters: Shops Share What ABAT Means to Them
As we’ve learned in both our professional and personal lives in 2020, a problem shared is a problem halved. is has always been one of the main philosophies driving ABAT’s work in the Lone Star State. rough grassroots advocacy for shops and maintaining contact with key national industry groups, the association has remained active throughout the year in staying one step ahead of the ups and downs affecting repair facilities and the consumers they work to protect. Fortunately, these actions have resulted in increased membership and a growth in positive feedback from member shops as a rough year carries on. Over in Mansfield, Rick Gardner at Auto Tech Services, Inc. (ATS) credits ABAT for making a rocky era for the industry much easier to navigate. “ABAT has most certainly helped ATS during this difficult and uncharted moment in time. It is difficult to place a value on the advice and direction from ABAT concerning our ability to maintain operations while protecting the health of our clients and staff. Zoom meetings set up by ABAT have proven extremely beneficial in the fight to provide a safe ‘working environment’ while maintaining sustainable productivity levels. ABAT provides the opportunity for shops to learn from other members by sharing successes and procedures concerning COVID-19 that would otherwise be individually learned through ‘trial and error.’” Although ABAT’s ongoing work to assist its members through the pandemic has been of tremendous value to Gardner in recent months, he cites the association’s commitment to fostering a unified industry as the greatest benefit of his membership. “We all know that the insurance industry has the upper hand against every shop that stands alone. Animals of prey know they can’t win if they take on the herd, but the feast is on when they cut one individual target out of the protection of the group as a whole. We must unify and demand as a group that all insurance companies address all issues pertaining to the proper repair of each vehicle. Insurance companies are currently feasting on shops right now because we do not have a herd mentality. ey 18 September 2020 Texas Automotive
know that they can get away with not paying for required procedures by telling us the age-old line, ‘You are the only shop asking for that,’ or worse yet, ‘We know you have to do it, but we don’t pay for that.’ ABAT is bringing us together.” Gardner’s partner at ATS, Brian Brunson, agrees that ABAT’s presence has had a substantial and positive impact on the Texas automotive community. “Being a member of ABAT helps us accomplish our goals by helping us stay on top of training for our staff of technicians and estimators. ABAT also provides us with contacts throughout the industry – from other shop owners and managers to vendors. is allows us to work at staying on top of changes in the industry and focus on not just doing repairs the right way, but also documenting those repairs, keeping the customer informed and doing what's right for them - not what's the cheapest." In business since 1989, Ed Griffin of Griffin’s Paint & Body, Inc. (Winnsboro) was one of the first repair professionals in his area to sign up when ABAT got off and running. No stranger to common battles with insurers, he was quick to become involved in the entity created to represent and strengthen businesses like his own. “is industry is topsy-turvy. It has so many issues, and the insurance industry is way too powerful and controlling. We needed to band together as a group of brothers and sisters and try to gain some power so that we could get paid for the hard work that we do.” Griffin saw his daily business life improve almost overnight once he started attending ABAT meetings and interacting with fellow members. e key to this advancement was taking advantage of ABAT’s focus on informing shops on the latest in industry research and repair procedures. “It just changed the way we ran [our] business. Our mentality changed, and our approach to repairs changed. e association educated us, and it’s still educating us on repairs and standing on the frontline of changes.” Encouraged by all that ABAT has accomplished since its formation, Griffin urges other shops to support the association through membership and take part in the training and social events it offers. “[ABAT President] Burl [Richards] is leading this organization and handling it in such a professional way. It does take a lot of time to organize and get groups like us together, because we’re all so busy just trying to keep our heads above water. It’s really a challenge to pull together an industry like this and have [people] attend [events]
and gain the knowledge to fight an industry that sits around in meetings all day and tries to plan how to get richer. We still need a lot of members to follow suit and get on board with us so we can gain some more strength in numbers. But that’s a really tall challenge; it’s really tough. Fighting the insurance companies against their will is not a very popular thing. Doing what’s right isn’t always easy, but it’s really what needs to be done.” For new member Chris Recker (Advantage Autoworks; North Richland Hills), becoming part of ABAT was a reflection of considerable changes in his career. Formerly with Caliber Collision, he sought a means of receiving assistance and information to help his independent, Tesla-certified facility thrive. “I was having an issue with one of my DRPs trying to force me into some stuff and basically bullying me […] When you’re an
“This industry is topsy-turvy. It has so many issues, and the insurance industry is way too powerful and controlling." - Ed Griffin independent, you don’t have a lot of people to go to with questions. [When I was with Caliber], they’d have regional guys in 10 different states to ask questions to. Nowadays, when you’re an independent, who do you have to help you? Who gives you advice? at’s one positive I can see about joining this organization. I’m not just totally alone. One of the things that attracted me to ABAT was that I missed having someone to [contact] if I had a question or needed advice or suggestions on how [other shops] handled a situation.” With ABAT always available to offer support, Recker is more confident in moving forward at the helm of his own business instead of working under a corporate umbrella. “Being independent can be harder in a lot of aspects, but if you’re the owner and the guy running the show, it kind of stops with you. You have a little more control over where you’re going to end up.” While it will be some time before things return to “normal” in Texas and beyond, ABAT has succeeded in giving its members the hope and direction they need to make the best out of where things are now. For information on ABAT membership, please contact Executive Director Jill Tuggle at (817) 899-0554 or jill@abat.us.
19 September 2020 Texas Automotive
TXA
Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service? To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up. Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993. His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible. The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production." After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop. "We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.” Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so
we push these booths and they never let us down.” Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!” After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work. After a very short time, all of our guys were comfortable and the results were consistently exceptional.” Mcllveen is also impressed by the Chronotech's sturdy construction and durability. "Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth." His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”
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21 September 2020 Texas Automotive
Ask the Expert “How Did My Client’s Repairable Vehicle Get Recorded by the Texas Department of Transportation as Non-Repairable/Salvage?”
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 over 25 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-plus 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-ofthe-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) 756-5482 or AskTheExpert@autoclaimspecialis tts.com.
Dear Mr. McDorman: The insurance carrier incorrectly deemed my client’s vehicle an economic total loss, and my client elected to keep that vehicle and had us return it safely to its pre-loss condition. Now, the state has it documented as a non-repairable or salvage-titled vehicle. Under the Texas Department of Transportation 501 guidelines, the vehicle did not meet the definition of salvage or non-repairable since its repair cost was below the actual cash value. This situation not only destroyed the value of my client’s truck, but he is also now unable to get insurance coverage. Can you help me understand how this happened and what my client can do to resolve this unlawful situation? Have you experienced this situation? If so, can you share how you resolved it and the outcome? Thank you for your question, which is particularly good and brings up a serious problem in Texas. The only way this situation could have happened is by the insurance carrier unlawfully turning in an Owner Retained Report (VTR-436) to the Texas Department of Motor Vehicles and disclosing the vehicle as non-repairable or salvage. If the vehicle did not meet the Texas Transportation Code 501 definition of non-repairable or salvage, then the authorized agent who signed the Owner Retained Report (VTR-436) as listed on the document has falsified information and committed a third-degree felony. Nevertheless, we routinely see carriers perform this unlawful action. The Texas Transportation Code, not the insurance carrier, defines a non-repairable or
salvage motor vehicle. Texas is a 100 percent total loss threshold state and does not recognize the total loss formula to define what constitutes a non-repairable or salvage vehicle. The 100 percent threshold definition states that should the repair cost not exceed the true actual cash value of the vehicle (not the perceived actual cash value arrived at by the market valuation firm), and if the vehicle is not missing a major component, then the vehicle is salvage or non-repairable. Additionally, Texas Transportation Code 501 takes the equation one step further and says that the repair cost – including parts and labor other than the cost of materials and labor for repainting (and excluding sales tax on the total cost of repairs) – must exceed the actual cash value of the motor vehicle immediately prior to being damaged. In other words, before the calculation of determining if the vehicle fits the Texas Transportation Code definition of a non-repairable or salvage vehicle, all refinishing time, paint materials and sales tax must be deducted from the final repair invoice. The accumulated dollar amount of these three components typically average approximately 25 percent of the total estimate, which in return drastically decreases the severity percentage. Once this value is determined, should it be less than the true actual cash value of the vehicle, that vehicle does not meet the Texas Transportation Code 501 definition of a non-repairable or salvage vehicle. Arriving at the true actual cash value of the vehicle is paramount. We currently have a client in the same situation. Our client is going through the judicial system to seek relief and damages for the carrier’s unlawful actions of deeming his repairable truck an economic total loss and then issuing an unsupported Owner Retained
22 September 2020 Texas Automotive
By Robert L. McDorman
Report (VTR-436) to further penalize him. This unlawful issuance of the VTR-436 caused the state to deem the truck a salvage-titled vehicle. This has not only prohibited our client from getting insurance on his truck, but it also destroyed the market value of the truck. We have requested the state provide us with a complete certified copy of the complete motor vehicle title history. The certified request for Texas Motor Vehicle information (VTR-275) will disclose the authorized agent with the insurance carrier who falsified the Owner Retained Report (VTR-436) and further harmed our client. Recently, the Judge asked me to outline how this situation could have happened and if I see this unlawful situation occur often. My immediate response was, “Yes, your honor, I do.” This problem is deep-rooted and harms many interested parties daily in Texas. In the upcoming months as my client’s case progresses through the judicial system, I will update the readers to the last part of your question, “If so, can you share how you resolved it and the outcome?” The under-indemnification in total loss and repair procedure claims in Texas is rampant. In my professional opinion, this is the fence post in the economic total loss scheme carried out by the carriers. We have been increasing the total loss settlement for the eight out of 10 contacts who we end up retaining as clients an average of 28 percent. We have also reduced clients’ out- of-pocket expenses an average of 35 percent on repair procedure disputes, such as the example provided in this response. These under-indemnification percentages are staggering and harmful to Texas citizens. The spirit of the Appraisal Clause is to resolve loss disputes fairly and do so in a timely and cost-effective manner. The invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to undervalue the loss settlement and under-indemnify the insured. Through the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased experienced, independent third-party appraisers as opposed to more costly and time-consuming methods, such as mediation, arbitration and litigation. In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claimhandling policies and non-standardized GAP Addendums, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement reviewed
by an expert before accepting. There is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give its professional opinion as to the fairness of the offer. 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 that a safe repair is a quality repair, and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise. Sincerely, Robert L. McDorman PS: In further support of this editorial, please see the enclosed Texas Department of Motor Vehicles Request for Texas Motor Vehicle Information (VTR-275) and Owner Retained Report (VTR436) on pages 24 and 25. If you should need any help completing these forms or have any questions, please call me. TXA
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23 September 2020 Texas Automotive
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'ŽǀĞƌŶŵĞŶƚ /ƐƐƵĞĚ WŚŽƚŽ /ĚĞŶƚŝĨŝĐĂƚŝŽŶ ʹ ^Ƶďŵŝƚ WŚŽƚŽĐŽƉLJ 'ŽǀĞƌŶŵĞŶƚ WŚŽƚŽ / EƵŵďĞƌ
džƉŝƌĞƐ
dĞdžĂƐ >ŝĐĞŶƐĞ WůĂƚĞ
zĞĂƌ
DĂŬĞ
sĞŚŝĐůĞ /ĚĞŶƚŝĨŝĐĂƚŝŽŶ EƵŵďĞƌ
dŝƚůĞ ŽĐƵŵĞŶƚ EƵŵďĞƌ
ŶƚŝƚLJ /ƐƐƵŝŶŐ / ĂŶĚ dLJƉĞ ;Ğ͘Ő͕͘ dy ƌŝǀĞƌ >ŝĐĞŶƐĞ͕ h^ WĂƐƐƉŽƌƚ͕ ĞƚĐ͘Ϳ
^ĞĂƌĐŚ /ŶĨŽƌŵĂƚŝŽŶ
ZĞĐŽƌĚƐ ZĞƋƵĞƐƚ /Ĩ LJŽƵ ĂƌĞ ŶŽƚ ƚŚĞ ŽǁŶĞƌͬůŝĞŶŚŽůĚĞƌ͕ ŝŶŝƚŝĂů Ă WĞƌŵŝƚƚĞĚ hƐĞ ŽŶ ƉĂŐĞ Ϯ Ͳ ƵŶůĞƐƐ LJŽƵ ŚĂǀĞ ǁƌŝƚƚĞŶ ĂƵƚŚŽƌŝnjĂƚŝŽŶ͘ ^ĞůĞĐƚ ĨƌŽŵ ƚŚĞ ĨŽůůŽǁŝŶŐ͗ dŝƚůĞ ŚŝƐƚŽƌLJ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ Ψϱ͘ϳϱ ĞƌƚŝĨŝĞĚ ƚŝƚůĞ ŚŝƐƚŽƌLJ ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ Ψϲ͘ϳϱ dŝƚůĞ ĂŶĚ ƌĞŐŝƐƚƌĂƚŝŽŶ ǀĞƌŝĨŝĐĂƚŝŽŶ ŽĨ Ă ǀĞŚŝĐůĞ ƌĞĐŽƌĚ ;ĐƵƌƌĞŶƚ Žƌ ĞdžƉŝƌĞĚͿ ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ ΨϮ͘ϯϬ ĞƌƚŝĨŝĞĚ ƚŝƚůĞ ĂŶĚ ƌĞŐŝƐƚƌĂƚŝŽŶ ǀĞƌŝĨŝĐĂƚŝŽŶ ŽĨ Ă ǀĞŚŝĐůĞ ƌĞĐŽƌĚ Ͳ ĨŽƌ ĐŽƵƌƚ ƵƐĞ ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ Ψϯ͘ϯϬ ƵƉůŝĐĂƚĞ ƌĞŐŝƐƚƌĂƚŝŽŶ ƌĞĐĞŝƉƚ ĨŽƌ ĐƵƌƌĞŶƚ ƌĞŐŝƐƚƌĂƚŝŽŶ ƉĞƌŝŽĚ ͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ ΨϮ͘ϬϬ KƚŚĞƌ Ͳ WůĞĂƐĞ ĂƚƚĂĐŚ ĚŽĐƵŵĞŶƚĂƚŝŽŶ ĞdžƉůĂŝŶŝŶŐ ƚŚĞ ƌĞƋƵĞƐƚ͘ zŽƵ ǁŝůů ďĞ ĐŽŶƚĂĐƚĞĚ ǁŝƚŚ ƚŚĞ ĨĞĞ ƚŽƚĂů͕ ǁŚŝĐŚ ŝƐ ďĂƐĞĚ ŽŶ ƚŚĞ ĞĨĨŽƌƚ ƚŽ Ĩŝůů ƚŚĞ ƌĞƋƵĞƐƚ͘
ĞƌƚŝĨŝĐĂƚŝŽŶ ʹ ^ƚĂƚĞ ůĂǁ ŵĂŬĞƐ ĨĂůƐŝĨLJŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶ Ă ƚŚŝƌĚ ĚĞŐƌĞĞ ĨĞůŽŶLJ͘ / ĐĞƌƚŝĨLJ ƚŚĂƚ ƚŚĞ ƐƚĂƚĞŵĞŶƚƐ ŽŶ ƚŚŝƐ ĂƉƉůŝĐĂƚŝŽŶ ĂƌĞ ƚƌƵĞ ĂŶĚ ĐŽƌƌĞĐƚ ĂŶĚ ƌĞƋƵĞƐƚ ƚŚĞ ddž Ds ƉƌŽǀŝĚĞ ŵĞ ǁŝƚŚ ƚŚĞ ƌĞƋƵĞƐƚĞĚ ŝŶĨŽƌŵĂƚŝŽŶ ĐŽŶƚĂŝŶĞĚ ŝŶ ƚŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ ƌĞĐŽƌĚ ĨŽƌ ƚŚĞ ǀĞŚŝĐůĞ ŝŶĚŝĐĂƚĞĚ͘ /Ŷ ŵĂŬŝŶŐ ƚŚŝƐ ƌĞƋƵĞƐƚ͕ / ĂůƐŽ ĐĞƌƚŝĨLJ ƚŚĂƚ ƚŚĞ͗ /ŶĨŽƌŵĂƚŝŽŶ ƌĞƋƵĞƐƚĞĚ ŝƐ ĨŽƌ Ă ůĂǁĨƵů ĂŶĚ ůĞŐŝƚŝŵĂƚĞ ƉƵƌƉŽƐĞ ĂŶĚ ǁŝůů ďĞ ƵƐĞĚ ŽŶůLJ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ϭϴ h͘^͘ ŽĚĞ ΑΑϮϳϮϭͲϮϳϮϱ ĂŶĚ dĞdžĂƐ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ŽĚĞ͕ ŚĂƉƚĞƌ ϳϯϬ ; ƌŝǀĞƌ WƌŝǀĂĐLJ WƌŽƚĞĐƚŝŽŶ ĐƚƐͿ͖ WĞƌƐŽŶĂů ŝŶĨŽƌŵĂƚŝŽŶ ŽďƚĂŝŶĞĚ ƉƵƌƐƵĂŶƚ ƚŽ ƚŚŝƐ ƌĞƋƵĞƐƚ ǁŝůů ŶŽƚ ďĞ ƵƐĞĚ ĨŽƌ ŵĂƌŬĞƚŝŶŐ͕ ƐŽůŝĐŝƚĂƚŝŽŶ Žƌ ƐƵƌǀĞLJ ƉƵƌƉŽƐĞƐ͖ ĂŶĚ / ŚĂǀĞ ŶŽƚ ďĞĞŶ ĐŽŶǀŝĐƚĞĚ ŽĨ Ă ǀŝŽůĂƚŝŽŶ ŽĨ ĞŝƚŚĞƌ ŽĨ ƚŚĞ ƌŝǀĞƌ WƌŝǀĂĐLJ WƌŽƚĞĐƚŝŽŶ ĐƚƐ͕ Žƌ ǀŝŽůĂƚĞĚ Ă ƌƵůĞ ĂĚŽƉƚĞĚ ďLJ ƚŚĞ ĚĞƉĂƌƚŵĞŶƚ ƌĞůĂƚŝŶŐ ƚŽ ƚŚĞ ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƚŝŽŶƐ ĨŽƌ ƌĞůĞĂƐĞ ŽĨ ƉĞƌƐŽŶĂů ŝŶĨŽƌŵĂƚŝŽŶ ĨƌŽŵ ǀĞŚŝĐůĞ ƌĞĐŽƌĚƐ͘ EĂŵĞ ŽĨ ƉƉůŝĐĂŶƚ
ĂƚĞ
^ŝŐŶĂƚƵƌĞ ŽĨ ƉƉůŝĐĂŶƚ sŝŽůĂƚŽƌƐ ĐĂŶ ďĞ ƉƌŽƐĞĐƵƚĞĚ ƵŶĚĞƌ dĞdžĂƐ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ŽĚĞ͕ ^ĞĐƚŝŽŶ ϳϯϬ͘Ϭϭϯ ĂŶĚ WĞŶĂů ŽĚĞ͕ ^ĞĐƚŝŽŶ ϯϳ͘ϭϬ͘
24 September 2020 Texas Automotive
KǁŶĞƌ ZĞƚĂŝŶĞĚ ZĞƉŽƌƚ /ŶĨŽƌŵĂƚŝŽŶ
sĞŚŝĐůĞ /ŶĨŽƌŵĂƚŝŽŶ sĞŚŝĐůĞ /ĚĞŶƚŝĨŝĐĂƚŝŽŶ EƵŵďĞƌ
zĞĂƌ
DĂŬĞ
ŽĚLJ ^ƚLJůĞ
dŝƚůĞͬ ŽĐƵŵĞŶƚ EƵŵďĞƌ ;ůĞĂǀĞ ďůĂŶŬ ŝĨ ƵŶŬŶŽǁŶͿ
>ŝĐĞŶƐĞ WůĂƚĞ ^ƚĂƚĞ ĂŶĚ EƵŵďĞƌ ;ŝĨ ĂŶLJͿ
DŽĚĞů
/ŶƐƵƌĂŶĐĞ ŽŵƉĂŶLJ /ŶĨŽƌŵĂƚŝŽŶ /ŶƐƵƌĂŶĐĞ ŽŵƉĂŶLJ EĂŵĞ ĚĚƌĞƐƐ
ŝƚLJ
^ƚĂƚĞ
ŝƉ
ƵƚŚŽƌŝnjĞĚ ŐĞŶƚ &ŝƌƐƚ EĂŵĞ
DŝĚĚůĞ EĂŵĞ
>ĂƐƚ EĂŵĞ
^ƵĨĨŝdž ;ŝĨ ĂŶLJͿ
ŵĂŝů ;ŽƉƚŝŽŶĂůͿ
WŚŽŶĞ EƵŵďĞƌ ;ŽƉƚŝŽŶĂůͿ
ůĂŝŵ /ŶĨŽƌŵĂƚŝŽŶ /ŶƐƵƌĞĚ Žƌ ůĂŝŵĂŶƚ͛Ɛ &ŝƌƐƚ EĂŵĞ ;Žƌ ŶƚŝƚLJ EĂŵĞͿ
DŝĚĚůĞ EĂŵĞ
>ĂƐƚ EĂŵĞ
^ƵĨĨŝdž ;ŝĨ ĂŶLJͿ
ĚĚƌĞƐƐ
ŝƚLJ
^ƚĂƚĞ
ŝƉ
ĂƚĞ ŽĨ ůĂŝŵ WĂLJŵĞŶƚ
/ŶƐƵƌĂŶĐĞ ůĂŝŵ EƵŵďĞƌ
ĂŵĂŐĞ ŝƐĐůŽƐƵƌĞ dLJƉĞ ŽĨ ĂŵĂŐĞ͗
ĐĐŝĚĞŶƚͬ ŽůůŝƐŝŽŶ
&ůŽŽĚ ĂŵĂŐĞ
KƚŚĞƌ ;ƐƉĞĐŝĨLJͿ
dŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ ĚĞƐĐƌŝďĞĚ ĂďŽǀĞ ŵĞĞƚƐ ƚŚĞ ĨŽůůŽǁŝŶŐ ĚĞĨŝŶŝƚŝŽŶ ĂƐ ĚĞĨŝŶĞĚ ŝŶ dĞdžĂƐ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ŽĚĞ͕ ^ĞĐƚŝŽŶ ϱϬϭ͘Ϭϵϭ͗ ; ŚĞĐŬ KŶĞͿ
^ĂůǀĂŐĞ sĞŚŝĐůĞ
EŽŶƌĞƉĂŝƌĂďůĞ sĞŚŝĐůĞ
ĞƐĐƌŝƉƚŝŽŶ ŽĨ ĚĂŵĂŐĞ ƚŽ ƚŚĞ ǀĞŚŝĐůĞ͗
ĞƌƚŝĨŝĐĂƚŝŽŶ ʹ ^ƚĂƚĞ ůĂǁ ŵĂŬĞƐ ĨĂůƐŝĨLJŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶ Ă ƚŚŝƌĚ ĚĞŐƌĞĞ ĨĞůŽŶLJ /͕ ƚŚĞ ĂƵƚŚŽƌŝnjĞĚ ĂŐĞŶƚ ŽĨ ƚŚĞ ŝŶƐƵƌĂŶĐĞ ĐŽŵƉĂŶLJ ůŝƐƚĞĚ ĂďŽǀĞ͕ ĐĞƌƚŝĨLJ ƚŚĞ ŝŶƐƵƌĂŶĐĞ ĐŽŵƉĂŶLJ ƉĂŝĚ Ă ĐůĂŝŵ ĨŽƌ ƚŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ ĚĞƐĐƌŝďĞĚ ĂďŽǀĞ͕ ƚŚĞ ŽǁŶĞƌ ŚĂƐ ƌĞƚĂŝŶĞĚ ƚŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ͕ ĂŶĚ ƚŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ ŵĞĞƚƐ ƚŚĞ ĚĞĨŝŶŝƚŝŽŶ ŽĨ Ă ƐĂůǀĂŐĞ Žƌ ŶŽŶƌĞƉĂŝƌĂďůĞ ǀĞŚŝĐůĞ ĂƐ ŝŶĚŝĐĂƚĞĚ ĂďŽǀĞ͘ &ƵƌƚŚĞƌ͕ / ĐĞƌƚŝĨLJ͕ ƚŚĞ ŽǁŶĞƌ ŽĨ ƚŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ ŚĂƐ ďĞĞŶ ŶŽƚŝĨĞĚ ŽĨ ƚŚŝƐ ƌĞƉŽƌƚ ĂŶĚ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ĨŽƌ ŽƉĞƌĂƚŝŽŶ Žƌ ƚƌĂŶƐĨĞƌ ŽĨ ŽǁŶĞƌƐŚŝƉ ŽĨ ƚŚĞ ŵŽƚŽƌ ǀĞŚŝĐůĞ͘
^ŝŐŶĂƚƵƌĞ ŽĨ ƵƚŚŽƌŝnjĞĚ ŐĞŶƚ
WƌŝŶƚĞĚ EĂŵĞ ;^ĂŵĞ ĂƐ ^ŝŐŶĂƚƵƌĞͿ
25 September 2020 Texas Automotive
ĂƚĞ
ONE BRAND. COMPL O ETE FOCUS.
PULL UP! U Repair System Glue gun
Electropuller (optional) Suction cups (numerous sizes and shapes)
More tools
Thread e pivots (num merous sizes, shapes and lengths) Repair cosmetic and structural da amage Up to 5 tons of pulling capacity No panel burn-through or welding g Suitable for both aluminum and steel panels
Slide Hammers (various weigh hts and lengths)
(844) 810-2573 12787 TX-155, Tyler, TX 75703
Spanesi authorized distributor
www.spanesi-americas.com
innovativ vec ecollisionequipment.com facebook.com/spanesiamericas
27 September 2020 Texas Automotive
AUTHEENTIC MOPAR A COLLISION PAR ARTS — ORIGINAL PAR A TS FOR EVVERY CHRYSLEER, ER DODGE, JEEEP, RAM OR FIIAAT VEHICLE ®
®
®
THE BEST PPAR A T IS EVERRYY PPAR AR ART. There’s only onne choice for Collision Repair parts fo or FCA US LLC LC vehicles v - Authentic Moparr® Parts. And here’s the best parrt, they are guaranteed to fit right the firstt time, function perfectly and restoree the vehicle to its original condition. The top five fiv high volume crash partss: Glass - Windshield ld glass pr provides nearly one third of the roo of strength on the average car. Passsenger air bags rely on windshield integrity for f proper deployment to keep your custo omers safe. Fascias - Fascias are more than cosmetic parts. With more collision avoidance sensors now mounted to fascias or aiming through them, they need to fit precisely for the systems to work accurately. A proper fit ensures your customers’ fascias do not warp or bind with body panels, causing them to rust or delaminate. Sheet Metal - Parts such as hoods and quarter panels can be integral to chassis structure and safety designs. Issues with corrosion, fit and appearance can eat up extra labor hours to finish the job and cause callbacks due to customer complaints — avoid that stress with Moparr® sheet metal.
Lighting - Alignment, NVH (noise, vibration and harshness) resistance and proper fit all affect saf safety, perfo ormance and customer satisffaction. action. Poor P seals and leaky lamp assemblies mblies ar are prone to condensation, corrosionn and diminished output output. Lens composites that yellow or fo og can dramatically reduce light output. Protect your customers from these affects by choosing Mopar. Mirrors - TToda oday’s mirrors are increasingly sophisticated. Aside from convenience features, reflective surfaaces also affect fect saf safety and performance. Crash avoidance and lane departure systems are housed in the mirror assemblies and are prone to failure due to infeerior aftermarket parts. Authentic Moparr® Parts are built to fit perfectly and function properly every time.
The Mopar difference: • FCA US LLC engineered
• O.E. crash parts fit right the first time
• Manufactured to proprietary specs and tolerances
•T Tes ested to be better – we can prove it
• Part of a system that values safety and performance technologies
DALLAS BIGGEST — DALLAS BEST
3310 W Kingsley Rd #100 Mon.–Fri. 7:00 a.m.–7:00 p.m. Sat. 7:00 a.m.–5:00 p.m. Garland, TX 75041 www.dallaspdc.com
Order Hot Line: (866) 8DD-PA PART or (214) 319-1265 ©2020 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC. FIA AT T is a registered r trademark of FCA Group Marketing S.p.A., used under license by FCA US LLC.