Wisconsin Automotive News Summer 2014

The Official Publication of the Wisconsin Auto Collision Technicians Association Ltd.

Summer 2014

The Collision Industry Goes to Court: Lawsuits Take on Insurers, PartsTrader

Plus:

WACTAL Foundation Scholarships Coachwork Autobody S.A.F.E. Cars Symposium www.grecopublishing.com

2014-2015 WACTAL BOARD of DIRECTORS President Larry Terrien MJ Collision Center larry@mjcollisioncenter.com Vice President Mark Williams Williams Auto Body mark@williamsautobody.com Secretary/Treasurer Ronnie Goss Goss Auto Body, Inc. ronnie@gossautobody.com Directors James Bryhan Bryhan's Body & Paint Specialists Eileen Haberman Glen's Auto Body, Inc. Randy Johansson FinishMaster Art Krolikowski Reedsburg Auto Body Inc. Mike Miyagawa M & M Auto Body Inc. Michael Taylor Zimbrick Chevrolet-Sun Prairie Association Administration Sue Peterson wactal@execpc.com / info@wactal.com (800) 366-9482 Lobbyist Jolene Plautz jplautz@aol.com

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 ADVERTISING: 800-991-1995 • tgp5@verizon.net PUBLISHER: Thomas Greco (tgp22@verizon.net) ADVERTISING DIRECTOR: Norman Morano (tgp5@verizon.net) MANAGING EDITOR: Alicia Figurelli (tgp2@verizon.net) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (tgp3@verizon.net) OFFICE MANAGER: Sofia Cabrera (tgp4@verizon.net) www.grecopublishing.com Wisconsin Automotive News is published quarterly by Thomas Greco Publishing, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of Wisconsin Automotive News are available at $5 per copy.

Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of Thomas Greco Publishing, Inc. or of WACTAL. Copyright © 2014 by Thomas Greco Publishing, Inc. Cover image © www.thinkstockphoto.com/fergregory; pg. 11: ©www.thinkstockphoto.com/YuLi4ka

Summer 2014

Summer 2014

Vol. 1 Number 4

CONTENTS PRESIDENT’S MESSAGE ........................................................5 S.A.F.E. Cars Symposium Offers Insight into Repairers’ Legal Options

by Larry Terrien LOCAL NEWS ....................................................................7 Grafton “Auto Hawks” Grab National Gold at Ford/AAA Auto Skills Competition WACTAL MEMBER SPOTLIGHT ................................................13 Coachwork Autobody, Allenton, WI FEATURE STORY ................................................................15 The Collision Industry Goes to Court: Lawsuits Take on Insurers, PartsTrader

by Joel Gausten WACTAL MEMBERSHIP APPLICATION ........................................17 WACTAL “RECRUIT-A-MEMBER” PROGRAM ..................................18

ADVERTISER’S INDEX Axalta Coatings ............................................................................................................................................................OBC Body Shop Supply........................................................................................................................................................IBC Buerkle Hyundai ..........................................................................................................................................................12 Collision Equipment Experts ........................................................................................................................................12 Dent Doctor ..................................................................................................................................................................4 Dentsmart ....................................................................................................................................................................7 Ernie von Schledorn VW ..............................................................................................................................................14 Griffin Auto Group ........................................................................................................................................................8 LKQ ..............................................................................................................................................................................10 Mercedes Benz and Sprinter of Elmbrook ....................................................................................................................14 Morrison’s Auto Parts ..................................................................................................................................................16 P&L Consultants ..........................................................................................................................................................11 PPG ..............................................................................................................................................................................IFC Straight and Square ......................................................................................................................................................18 West Bend Mutual Insurance ........................................................................................................................................6 Zorn Compressor & Equipment....................................................................................................................................16

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PRESIDENT’S MESSAGE

S.A.F.E. Cars Symposium Offers Insight into Repairers’ Legal Options I recently attended the S.A.F.E. Cars Educational Symposium in Schaumburg, IL. Hosted by the Alliance of Automotive Service Providers of Illinois (AASP-IL), the two-day conference featured breakout sessions, product demonstrations and presentations by speakers including John Eaves, Jr. (attorney at law and founder of www.safecars.us), John Mosley (Clinton Body Shop, Clinton, MS), Ray Gunder (Gunder’s Auto Center, Lakeland, FL) and Brent Geohagan (attorney at law, Lakeland, FL), who gave details regarding the lawsuits that have been filed throughout the country starting in Mississippi.

Mississippi Attorney General and President Elect of the National Association of Attorneys General Jim Hood was also on hand, and spoke about the effect PartsTrader is having on the industry nationwide. He also provided attendees with details on how to contact the Attorneys General in their respective states. Patrick McGuire, a nationally recognized attorney as well as a well-respected advocate of collision repairers, discussed getting reimbursed by insurers and understanding the liability that goes with each and every repair. Also included was a presentation from Ford on the reparability of the new F-150 as well as a discussion on what it takes to become a Ford Certified/Recognized collision repair center.

The event’s two keynote speakers were definitely among the highlights of the event. On Friday night, former Chicago Bears tight end Desmond Clark spoke about “what it means to have a great coach and mentor” and how this theme carries over into one’s personal life. On Saturday evening, former Seal Team One member and Congressional Medal of Honor recipient Michael Thornton gave a moving and inspirational speech about how “The Team is Above Self, Always.” He spoke about how this principle, which has guided his life, can be used to help the collision repair industry.

In my opinion, the S.A.F.E. Cars Symposium provided a great deal of valuable information for industry members looking to explore their options in getting compensation for repairs. If you were not at the event, please turn to page 15 to learn about how the collision industry is taking matters into its own hands, and exploring the legal route to get proper compensation for the safe, quality repairs they provide.

Larry Terrien President Wisconsin Auto Collision Technicians Association Ltd. (WACTAL) WAN

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Grafton “Auto Hawks” Grab National Gold at Ford/AAA Auto Skills Competition The Grafton High School Auto Hawks recently did their school and community proud by taking home the Gold at the 2014 Ford/AAA Student Auto Skills National Finals. This year’s event, held June 8-11 in Dearborn, MI and co-sponsored by AAA and Ford Motor Company, hosted 50 teams in a competition series including a written test and a “hands-on” portion.

status as well as passing grades on their student technician certifications) were awarded scholarships, tools and apparel for their victory, as well as a grand prize week-long stay in Charlotte, NC and Daytona Beach, FL shadowing Trevor Bayne’s NASCAR Racing Team.

According to the organization’s website, the objective of the Ford/AAA Student Auto Skills competition is “to encourage talented young people to pursue careers as automotive service technicians. AAA and

Local

NEWS

Ford wholeheartedly support this objective and are committed to this program as an investment in the future of our young people and improved automotive service for AAA members, Ford Motor Company customers and all motorists.” For more information on the competition, please visit http://autoskills.aaa.com.

Wisconsin Automotive News and WACTAL congratulate Justin and Colt on their impressive wins!

Schmit Bros. Ford in Grafton has been sponsoring the Grafton Auto Hawks team for 20 years.

Pictured L-R: Schmit Bros. Ford General Sales Manager Igor Sapozhnikov, President Mike Schmit, Auto Hawks team member Justlin Bublitz, team coach Carl Hader, team member Colt Morris and Schmit Service Manager Craig Panzer. Photo courtesy of Mark Justesen / The News Graphic.

2014 GHS graduates Justin Bublitz and Colt Morris competed as a two-man team and not only achieved the only perfect score out of all competitors, but did so using only 60 of their allotted 90-minute time frame. The team also scored 20 points higher than the Second Place competitors on the written portion of the competition!

Morris and Bublitz (who currently possess Youth Apprentice and AYES intern

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WACTAL Foundation Scholarships

Three Wisconsin high school graduates are recipients of this year’s WACTAL Foundation scholarships.

The WACTAL Foundation Inc. is awarding three scholarships this year.

Recipients are Travis Guy of White Lake, Alex Henderson of Appleton and Jackson Jalowitz of Medford. The recipients will use their award to fund their education in collision technology. Travis and Alex will be attending Fox Valley Technical College and Jackson will attend Chippewa Valley Technical College. Recipients will receive up to $2,000 toward tuition. In addition to the award, the recipients will receive a tool set valued at more than $3,000 from Snapon Corporation headquartered in Kenosha, WI. The scholarship program is administered by the Foundation of the Wisconsin Automobile & Truck Dealers Association. In addition to the auto collision scholarships, which the WACTAL Foundation sponsors, the Foundation of the Wisconsin Automobile & Truck Dealers Association offers scholarship for automotive technology and diesel.

The application process, which includes evaluation testing and interviews, ensures that we attract top-notch individuals to apply for the scholarships.

The successful continuation of the scholarship program depends on donations. The WACTAL Foundation, Inc. is a 501(c)(3) non-profit agency. If you wish to make a tax-deductible donation, please contact the WACTAL office at (800) 366/9472 or info@wactal.com.

VIN Label Update

Trooper Sieber’s presentation on salvage vehicle inspections at the WACTAL conference caused some controversy, especially regarding statements that replacing the door information label is illegal. Since that presentation, WACTAL has been working with the Department of Transportation and State Patrol in clarifying the replacement of vehicle labels, in particular the door label. The door information Summer 2014

label provides vital information beyond the VIN. Depending on the make and model, most list paint codes, trim codes, build date, engine and transmission codes, tire sizes and inflation requirements, option codes, federal safety compliance statement, gross vehicle weight, bar codes that need to be read when doing service work, etc., on the door information label. These labels contain information that is located nowhere else on the vehicle. Not only is this information vital to the vehicle owner and repairers, its replacement is required to bring the vehicle back to pre-accident condition.

WACTAL lobbyist Jolene Plautz and WACTAL president Larry Terrein have been working with Mitch Warren with the DOT on this issue and he stated “this type of labeling has never been considered a ‘formal VIN’ as described in statute.”

WACTAL will provide information on this issue as it becomes available.

Around the State

The May meeting of the Central Wisconsin Auto Body Association (CWABA) featured a presentation on Web Marketing, followed by a video on the new Ford F-150. CWABA will meet again in September.

The 8th Annual Indianhead Auto Body Association trade fair was held May 6th at Turtleback Golf & Conference Center in Rice Lake. More than 25 vendors participated. More than 60 attendees enjoyed a complimentary buffet supper, door prizes and more. Indianhead Auto Body Association will resume meetings in the fall.

Pro Paint’s 7th Annual Trade Fair will be held August 12, 2014 (4-9pm) at The Orchard in Baldwin, WI. A series of seminars are scheduled starting at 10am which include: Collision Shop Best Practices, Proper Gun Set-up & Care, Improving Transfer Efficiency & Reducing VOC Emissions, Adjustrite Estimating, and much more. For more information or to register, contact Pro Paint (800) 234-6898; www.propaintinc.com.

Local

NEWS Obituary

Betty Ratchek passed away May 19, 2014 after a hard-fought battle with cancer.

Betty is survived by her husband, Jim (Jim’s Auto Body, Burlington, WI); daughters Rene Ratchek (former WACTAL president) and Andrea (Michael) Stanek; and granddaughters, Brielle, Reed and McKenna Stanek.

A well-attended celebration of Betty’s life with photos, family, friends, laughter, love, and a few tears was a testament to Betty’s love of life and love of others. Betty will live on in our hearts and through the flowers that will grow from the packets of seeds given to those who attended the celebration. The card attached to the seed packet read: Beautiful and bold Energetic Tremendous heart Thankful You could only love!

Plant these seeds in loving memory of our Betty Boop!

Our condolences to the Ratchek family.

WAN

SAVE THE DATE!

WACTAL 2015 Spring Conference March 6-7, 2015 Tundra Lodge Green Bay, WI 9

SAVE THE DATE!!!

WACTAL 2015 Spring Conference March 6-7, 2015 Tundra Lodge, Green Bay, Wisconsin

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Increase Your Sales and Support the State’s Most Influential Automotive Repair Association!

Get In on the Start of Something BIG! Contact Norman Morano 1-800-991-1995 tgp5@verizon.net

www.grecopublishing.com

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Summer 2014

Coachwork Autobody Allenton, WI

For over 30 years, Coachwork Autobody has been providing quality collision repair services to the West Bend and Allenton area. 2014 marks a new chapter in the business, with the facility becoming a member of the Wisconsin Auto Collision Technicians Association Ltd. (WACTAL). Wisconsin Automotive News sat down with co-owners Patrick and Patricia McIntee to discuss how they got into the business as well as the goals and philosophies that have kept their shop going strong for three decades.

Wisconsin Automotive News: Please tell us about how you got your start in the collision repair industry.

Patrick: My father actually owned McIntee Auto Salvage in Slinger back in the ’60s, so I was in the auto industry at a very young age. I graduated from the General Motors Training Center and worked in both a dealer body shop and import shop before opening Coachwork in 1980.

Patricia: We started out in downtown West Bend, but in 1982 relocated to our present spot in Allenton. Over the years, we’ve made renovations to the place and are now at 8,400 square feet, with three combo techs, one office person and one maintenance person on our staff.

WAN: You recently became a WACTAL member. What inspired you to join the association?

Patrick: We attended WACTAL’s 2014 convention in February, and we were very impressed with the speakers and topics covered. In addition to all the great information presented, it was encouraging to meet and network with so many nice people, and know that we all have the same challenges and concerns.

Patricia: A big bonus we didn’t know about when we signed up was that WACTAL members get a discount on West Bend Mutual Insurance. We happened to join the associaSummer 2014

tion just prior to our policy renewal date which is with West Bend - so it was perfect timing and a win-win for us! And Patrick was a charter member of the Eastern Wisconsin Auto Body Technicians Association (EWABTA) back in 1987, so we both have high regard for the importance of belonging to a trade association. He also served on the Lakeshore Tech.

Advisory Committee for their Auto Body program.

WAN: What do you when you’re not in the shop?

Patrick: I have been pretty passionate about racing since the ’70s. Patricia, on the other hand…

Patricia: Me? Not so much. [laughs] I’d rather be golfing!

Patrick: It’s a big hobby of mine. I’ve been part of a pit crew for over 35 years, and in 2000 started racing my own car at Slinger Super Speedway. And like Patricia said, we like to do as much golfing as we can as a family activity.

WAN: What would you say is your favorite thing about working in the collision repair industry?

Patrick: Honestly, the artistic aspect of the industry is what keeps me coming to work every day. Seeing a car go from totally smashed to good as new provides a real sense of pride in our business. I started out on the mechanical repair end and switched to a collision focus because of the outward nature of the repairs. It’s amazing to see the transformation of a damaged car to pre-accident condition.

Patricia: It’s also very rewarding to work with the customers throughout the repair process not only explaining what the job will entail but also opening their eyes to just how complex this industry really is. It’s not “just a dent in the door” - I love being able to have our customers walk away not only satisfied with a

WACTAL MEMBER

SPOTLIGHT quality job, but more educated for the next time they have to deal with the collision repair industry.

WAN: Does the shop participate in any charity/volunteer organizations or groups in your community?

Patrick: We are involved in a number of charitable initiatives to help give back to the community. We work with a group called Family Promise through the churches in our area, which helps house and feed the homeless. We also support The Threshold, Inc., a Washington County-based agency that offers opportunities to individuals with special needs.

Patricia: I sit on the Board for Celebrate Families, which is a free annual event in Washington County that features a resource fair for non-profit organizations and a number of kid-friendly activities for families to enjoy. It’s a great time - Patrick and some of his friends bring out a few of the racecars for the kids to see up close, and they sign autographs. We also belong to the West Bend Area Chamber of Commerce. We feel it’s important to get to know fellow businesspeople as well as the members of the community we’re serving. And it gives us a chance to help promote the professionalism of our industry to the public.

WAN: What would you say is your greatest accomplishment?

Patrick: I’m most proud that we’ve been in business and successful for 34 years, and married for 42 years.

Patricia: It’s not always easy working side by side with your business partner - especially when you’ve been married to them for four decades! - but it’s been a recipe for success with us. We are fortunate and so happy to be where we are all these years later.

WAN

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Feature

STORY

The Collision Industry Goes to Court: Lawsuits Take on Insurers, PartsTrader Lawyers and repairers make an intriguing team.

With frustration throughout the auto body industry at an all-time high, recent months have seen an impossible-to-ignore surge in legal cases against insurance companies. From pushing against mandated parts procurement programs to alleging multi-layered conspiracies to suppress shops’ economic growth, repair businesses are battling their adversaries at an ever-accelerating pace.

The national collision industry’s work in the legal arena reached new heights on April 30, when Crawford’s Auto Center of Downingtown, PA filed a 164-page lawsuit against seven of the nation’s top auto insurers - State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide - alleging that the carriers conspired to control the cost of automobile repairs. The suit argues that the defendant insurers also violated the Racketeer Influenced and Corrupt Organization Act (RICO) by creating artificial “prevailing” rates based on their DRP shops’ use of products by the industry’s three leading Information Providers (Audatex [AudaExplore], CCC or Mitchell), who have been named as conspirators. The suit, which also names USAA, Travelers and American Family as conspirators but not as defendants, was filed in the US District Court for the Northern District of Illinois, Eastern Division.

According to the suit, the action against the defendant insurers aims to address their “long-running unlawful conduct to suppress compensation to repair facilities for automotive collision repairs covered by insurance.”

The suit claims that the defendant insurers (together with the three conspirator carriers) collectively hold 70 percent of the market “and control all aspects of collision repairs, including establishing the industry standards for compensation paid to repair facilities.” Additionally, the suit alleges that the Information Providers “serve two masters” - the defendant insurers as well as “the repair facilities, which must use the estimating programs to perform their work because the estimates are the only means by which insured repairs are paid.”

Crawford’s seeks to have the lawsuit granted class action status, allowing for the inclusion of any non-DRP facilities that “performed automotive collision repair work or services on or in connection with a vehicle insured by, or covered under insurance issued by” any of the seven defendant insurers and used a CCC, Mitchell or Audatex estimating program for a repair estimate or supplement since January 1, 2006.

Attorney Steven L. Bloch (Berger & Montague, P.C.), legal counsel for the plaintiff and proposed classes, says the case has received an “extremely favorable” response from various members of the collision repair industry.

“We’re fully confident in the case that we’ve set forth,” he says. “We intend to proceed with all due deliberate effort and speed in seeking remedy and relief on behalf of the class.”

Although Crawford’s has earned plenty of attention in recent weeks, going up against the insurance industry is nothing new to the Mississippi Collision Repair Association (MSCRA). Last summer, MSCRA joined dozens of collision repair facility operators, OEM dealers and other parts suppliers in filing a lawsuit against State Farm and PartsTrader LLC, requesting a preliminary injunction against the defendants from proceeding “with the forced implementation of the PartsTrader program” in the state.

Now, nearly a year later, PartsTrader is indeed active in Mississippi (as well as the other 47 continental states and the District of Columbia), and the Summer 2014

by Joel Gausten

MSCRA suit sits in federal court after State Farm filed a motion to move the matter out of state court. Although PartsTrader is currently operating in Mississippi as part of the program’s national rollout, MSCRA President John Mosley (Clinton Body Shop, Clinton, MS) insists that the legal fight is far from over.

“When [the case] is heard in federal court, we anticipate that it will be moved back to state court, where it belongs,” he says. “We still believe we’ll be successful in stopping PartsTrader in Mississippi.”

Mosley’s current optimism is in line with the stance he and Mississippi attorney John Eaves, Jr. have taken since the first day the complaint was filed. Speaking from the audience at a special “PartsTrader Comes to the Northeast: Now What?” presentation last March during the NORTHEAST® 2014 Automotive Services Show in Secaucus, NJ, both made their reasons behind the suit known to anyone who would listen.

“PartsTrader operates like a virus,” offered Eaves. “It affects the shops, and they put pressure on the vendors and the dealerships. Then, they put pressure on the other shops. It’s a virus that continues to spread; because of that, it affects the entire market whether you are Select Service or not. We believe that is a tortious interference with your business relationship. This is still the United States of America, and you can still do business with anyone you want to.”

“We wouldn’t be having this conversation, and the dealers wouldn’t be in the position they’re in, if we – the body shop operators – didn’t sign on to the program,” added Mosley.

(The request for injunctive relief isn’t Eaves’ only journey into collision repair litigation: Last January, he filed a suit on behalf of 21 Mississippi shops against a host of carriers including State Farm, Progressive, Allstate, Nationwide, GEICO and USAA. The complaint alleges that the defendants “have engaged in an ongoing, concerted and intentional course of action and conduct with State Farm acting as the spearhead to improperly and illegally control and depress automobile damage repair costs to the detriment of the Plaintiffs and the substantial profit of the Defendants.” Eaves has expressed his intention to add all 50 states to the cause.)

Despite the industry’s resistance to PartsTrader, the program continues to grow. According to figures released by the company on April 23, more than 7,500 repairers and 8,500 suppliers are active on the system, with OEMs comprising more than 75 percent of the active suppliers.

PartsTrader states that they have processed more than 750,000 quote requests, generating more than 1 million confirmed parts orders.

Currently, PartsTrader is offered without an insurer mandate in Massachusetts and Rhode Island. This raises an interesting question: Has PartsTrader offered enough value to those shops and dealers using it to make it attractive as a free-market item?

“I would say no,” offers one prominent east coast-based parts manager. “Nothing good is coming from this, but this is the way business is going.

You’re going to see body shops say, ‘I’m not going to be your DRP anymore,’ and then you’re going to see the smaller guys closing up because they’re not going to be able to survive if they’re not DRPs.” With the collision industry pursuing legal avenues like never before, the remaining months of 2014 are sure to inspire headlines, debate and – if these shops are ultimately successful – tremendous change for auto repair facilities across the nation.

WAN

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WISCONSIN AUTO COLLISION TECHNICIANS ASSOCIATION, LTD. W226 S1742 State Road 164 S Waukesha, WI 53186 PH: 262-542-7707 or 800-366-9472 FAX: 262-542-0906 info@wactal.com

APPLICATION FOR MEMBERSHIP Business Name ______________________________________________________________________________

Address ____________________________________________________________________________________ City ______________________________________

State ______________Zip ______________________

Contact ____________________________________

Title__________________________________________

Phone ____________________________________

Fax __________________________________________

Email ______________________________________________________________________________________ Preference for communications from WACTAL: Number of Employees (including owners):

Number of years in business: __________________

Email

Fax

Technicians______

Mail

Office______

Date of Application: ____________________________

I hereby apply for membership in the Wisconsin Auto Collision Technicians Association, Ltd. I promise to abide by the association’s By-Laws and Code of Ethics. I understand that any signs, decals or emblems provided by the association remain the property of the association, and I agree to return them to the association upon termination of membership. I understand that the use of the association logo and identification is authorized only as long as my membership is maintained.

Authorized Signature __________________________________________________________________________

DUES: Membership dues are based on the number of employees, including active officers, partners & owners.

Part-time employees count as 1/2. Annual dues schedule is as follows:

Sole Owner, No Employees 2-4 Employees 5-9 Employees

$145 $235 $275

10-15 Employees 16-19 Employees 20-29 Employees

$325 $375 $445

30+ Employees Associate Member School Member

$495 $250 $250

WACTAL accepts Mastercard & VISA. Contact the WACTAL office if you wish to make payment with Mastercard or VISA.

Sponsoring Member __________________________________________________________________________________

03/2013

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Member Program

“Recruit-a-Member”

For each member an existing WACTAL member recruits, the sponsoring (existing) member will receive a one-time $50 credit toward their membership dues.

There is no limit on the number of members an existing member can recruit.

If the dollar amount of the credits exceeds the sponsoring member’s annual dues, the excess amount will carry forward to subsequent years.

No monies will be paid out and credits cannot be cashed out.

Credits cannot be split amongst multiple members.

The sponsoring member’s individual and business name must be listed on the new member’s Application for Membership as the sponsoring member.

If the new member had been a WACTAL member during the prior calendar year, no commission will be allowed.

This program can be rescinded or amended without prior notice. In the event the program is rescinded or amended, credits for applications received after the change will be processed under the new program. No credits will be issued if the program is rescinded.

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