New Jersey Automotive October 2015

October 2015$595

THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org)AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

TM

www.grecopublishing.com

WHO’S LIABLE?Paying the Price for Bad Repairs

page 52

MultidistrictLitigationClaims

Dismissedpage 38

4 | New Jersey Automotive | October 2015

New Jersey Automotive | October 2015 | 5


P.O. Box 734 Neptune, NJ 07753

EXECUTIVE DI REC TORCharles Bryant732-922-8909 / [email protected]

2013 - 2015 OFFICERSPRESIDENTJeff McDowell, Leslie’s Auto Body732-738-1948 / [email protected]

COLLISION CHAIRMANDave Laganella, Peters Body and Fender201-337-1200 / [email protected]

MECHANICAL CHAIRMANKeith Krehel, Krehel Automotive Repair, Inc.973-546-2828 / [email protected]

TREASURERTom Elder, Compact Kars, Inc.609-259-6373 / [email protected]

SECRETARYThomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / [email protected]

BOARDJerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / [email protected]

Sam Mikhail, Prestige Auto Body908-789-2020 / [email protected]

Ted Rainer, Ocean Bay Auto Body732-899-7900 / [email protected]

Anthony Sauta, East Coast Auto Body732-869-9999 / [email protected]

Randy Scoras, Holmdel Auto Body732-946-8388 / [email protected]

Anthony Trama, Bloomfield Auto Body973-748-2608 / [email protected]

BOARD ALLIEDJoe Amato, The Amato Agency732-530-6740 / [email protected]

Mike Kaufmann, Advantage Dealer Services973-332-7014 / [email protected]

PAST PRESIDENT ATTENDINGTom Elder, Compact Kars609-259-6373 / [email protected]

PUBLISHERThomas Greco ([email protected])DIRECTOR OF SALESAlicia Figurelli ([email protected])EDITORJoel Gausten ([email protected])MANAGING EDITORJacquelyn Bauman ([email protected])ART DIRECTORLea Velocci ([email protected])OFFICE MANAGERDonna Greco ([email protected])CONTRIBUTING EDITORSCharles Bryant • Tom Greco • Jeff McDowellMitch Portnoi • Dave Laganella • Ron Ananian

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

www.grecopublishing.com

VOLUME 45, NUMBER 10 | October 2015

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES12 PRESIDENT’S MESSAGE16 EXECUTIVE DIRECTOR’S MESSAGE

20 MECHANICAL CHAIRMAN’S MESSAGE24 I-CAR CALENDAR62 NJA ADVERTISERS’ INDEX

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEYAUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVEare copyright © 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.

The Alliance of Automotive Service Providers/New Jersey

Joe Amato, Sr.Ron AnanianJim Bowers

Charles BryantDon ChardGuy Citro

Ed DayDave Demarest

Tom ElderBob Everett

Thomas GrecoRich Johnson Wes KearneyNick KostakisJim KowalakJoe Lubrano

Michael LovulloSam Mikhail

Ron MucklowGeorge Petrask

Russ RobsonJerry RussomanoGeorge Threlfall

Cynthia TursiLee VetlandPaul VigilantRich WeberBrian Vesley

Glenn VillacariStan Wilson

HALL OF FAME

CONTENTS

AASP/NJ UPDATE22 2015 AASP/NJ Annual Meeting InformationAASP/NJ NEW MEMBER SHOP PROFILE by Jacquelyn Bauman30 Benner’s Auto BodyVENDOR SPOTLIGHT by Joel Gausten34 The Power of OEM: Gateway Toyota Beats the AftermarketNATIONAL NEWS by Joel Gausten38 Multidistrict Litigation Claims DismissedLEGAL PERSPECTIVE by Mitchell Portnoi, Esq.44 Outside General Counsel Services

INDUSTRY UPDATES48 PMCLogic Adds KPI Reports 48 Coming Together: Fenix Auto Parts Joins Auto Recyclers Along the East Coast by Jacquelyn Bauman

COVER STORY by Jacquelyn Bauman52 Who’s Liable? Paying the Price for Bad Repairs

SEMA PREVIEW by Joel Gausten57 Consolidation, Legal Trends Among SEMA Seminar Topics

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY60 Wharton Insurance BriefsTHE LIST61 If You Could Have Anyone from History Work at Your Shop, Who Would it Be?



OUT OF BODY (AND MECHANICAL) EXPERIENCES

In a couple of months, I will officially become old. Youknow how I know that? Because I love to take surveys. Callme silly, but I find most of them pretty interesting. And withthe Internet, they are everywhere. The last time I took asurvey, one of the very first questions jumped out at me. Itasked my age and gave me the following choices:

• 18 to 24 years• 25 to 34 years• 35 to 44 years• 45 to 54 years• 55 to 64 years• Age 65 or older

In December, I will be 55. I will be moving into thatdreaded second-to-last age bracket according to most

surveys. You know, the one that says you’re not a seniorcitizen...but you’re CLOSE. Crap.

I really didn’t need a survey to tell me I’m getting old.My eyes started telling me that about five years ago. Backthen, I still read four newspapers a day. But I kept noticingthat the type was getting harder and harder to read. Iwould say to my wife, “God, these publishers must betrying to save ink by printing such small type.” She wouldlaugh and say, “It’s not the ink; it’s you.” So after a fewmonths of lying to myself, I went to the eye doctor.

“You need glasses.” Huh? “My eyes are perfect; it’s just the damn printing…” “You need glasses.”So I got glasses. Not just one pair, of course. I needed

six. You see, I like to read in lots of different places. Ineeded a pair for work, a pair for the living room, one for

by THOMAS GRECO,PUBLISHER

“Eye Know I’m Old”


my man cave and…uh…I think you can figure out wherethe other three are.

It took some getting used to. I had actually exper-ienced my first pair of glasses in the fifth grade, but Ipromptly threw them out after a few days. But as an “old”man, if I wanted to continue my love of reading, I had toadapt. And I did. It was, and still is, a pain in the ass tohave to grab for them every time I need to read something,but such is life. Actually, I kind of got used to them.

A couple of years later, I noticed that the type wasgetting blurry again, even with the glasses. Back to thedoctor I went.

“You need stronger glasses.”“But you just gave me these a few years ago. They

keep shrinking the damn type.”“You need stronger glasses.”Out came the Coke-bottle spectacles. I only needed

two pairs because they were just for reading print. I canstill use the old glasses for computers, tablets and phones.Eight pairs of glasses. OLD.

Earlier this year, I noticed that my TV seemed blurry. Icalled the cable company, and they did some tests andeven came out to the house. They checked everything and

concluded that all was in order. I said, “How can everythingbe okay when an 80-inch TV screen looks blurry?” Thecable guy said, “You probably need glasses.”

At this point, I may as well have had a frequent flyerplan with my eye doctor. I went back to him and explainedthe problem, and guess what he said? Yup. “You needDIFFERENT glasses.” He prescribed me two more pairs forwatching TV and driving.

So here I sit with three kinds of lenses and 10 pairs ofglasses. Sure, I asked about Lasik surgery and bifocals,but the doc said neither was an option. “Was it all due tomy heart problems, or possible diabetes?” I asked. He saidthat wasn’t it either. I responded, “Then why does this keepgetting worse?” His answer?

“You’re getting old.”Thanks, doc. PS: I want to thank the record companies who make

CDs these days for printing the liner notes as small aspossible. I refuse to believe it’s my eyes when I’m forced totake a picture of the lyrics with my phone, and then zoom inon the shot WITH my glasses on just so I can sing thedamn lyrics to a song!

NJA

By the time this issue hits thestreets, AASP/NJ will have just con-cluded a pair of September Members-Only aluminum repair meetings. You’llsee in-depth coverage of these eventsin next month’s issue. In the meantime,

I’d like to shine a light on a large partof the reason we were able to providethese opportunities to our members:Reliable Automotive Equipment, Inc.(RAE) and, more specifically, DaveGruskos. Dave not only provided us

the RAE headquarters as meetingspace for these two gatherings, but he also presented our attendees withincredibly valuable information on alu-minum repair procedures, require-ments, certification and so much more.Dave’s been a longtime supporter ofour industry, and he is truly an expertwhen it comes to the ins and outs of repairing these advanced materials.We sincerely appreciate his help inproviding these meetings to our mem-bers. We offered them at no cost toAASP/NJ members, and it’s my hopethat we will continue to provide no-costbenefits like these in the future as aperk of aligning with AASP/NJ. Looking ahead, it’s almost time forthe 2015 SEMA Show (and, incredibly,NORTHEAST® 2016 is around the corner a few short months later). Untilthen, we are just about ready forAASP/NJ’s 2015 Annual Meeting,scheduled for October 28. (See page22 for event flyer.) In our association’sspirit of education and information, I’mproud to announce that AASP/NJ hassecured a representative from GeneralMotors to speak to our attendeesabout the manufacturer’s newMyPriceLink.com initiative. While youmay have heard about GM’s new (and,to many, controversial) program, oddsare that you aren’t completely up tospeed on how it will work, or how it willaffect your day-to-day business. Thisaddress at our Annual Meeting aims tofill you in on this topic, and the discus-sion should shed light on the issue forall in attendance. That said, you haveto be there to hear it! If you haven’tsigned up for our Annual Meeting yet,turn to page 22 and register TODAY.Don’t miss your chance for industry ca-maraderie, critical updates and now animportant presentation from GM, too.Hope to see you there!


PRESIDENT’S MESSAGE

INFORMATION & EDUCATIONby JEFF MCDOWELL

NJA





EXECUTIVE DIRECTOR’S MESSAGE

by CHARLES BRYANT

HELLO, COLLISIONINDUSTRY – PLEASEWAKE UP

For those of you who havebeen drinking the “Kool-Aid” fromthe start, I am probably wasting mytime. But for those of you who havenoticed that things aren’t okay andneed to change, listen up. When anappraiser from an insurancecompany comes to your shop toinspect a damaged vehicle andprepare an estimate, he or she is notwriting that document for you to workoff of while repairing that car. I amtold that some collision shops areunder this impression.

The NJ Auto Body License Lawmakes it clear that a body shopestimator must prepare an estimate ifhe or she is willing and able to repairthe damaged vehicle. Just so there isno misunderstanding (or in caseanyone doesn’t think that I know whatI am talking about), the exact wordsfrom the NJ Auto Body License Laware as follows:

13:21-21.10 Estimates and repairs(a) Every licensed auto body

repair facility shall provide a writtenestimate to any customer seeking itsservices, provided that the auto bodyrepair facility is willing and able toperform the requested repairservices.

Some collision shops seem tothink that they are obligated to repaira damaged vehicle exactly the wayan insurance appraiser writes his orher estimate, regardless of how thevehicle owner wants it repaired. Someshops also think that the purpose ofthe insurance estimate is to act as ablueprint for the job. Well, WAKE UP!Guess what the purpose of theinsurance estimate is? Short andsweet: The insurance estimate allowsthe insurer to gauge approximatelyhow much money they need toreserve in order to pay the claim.

Many shops don’t seem tounderstand that the vehicle owner —not the insurer that is paying the claim— is the customer. This is important,so I am going to drive it home inhopes that it sinks in. I don’t mean tosound condescending when I saythis, because I will be the first toadmit that many across the countrystill don’t get it. But the reality is, thereare two contracts in play whenlooking at a situation where someoneis going to rely on an insurer to paythe shop for the repairs. There is onecontract between the collision shopand the owner of the vehicle, andanother contract between the vehicle

owner and the insurer that isresponsible for the repair bill (minusany deductible or betterment).

These two contracts havecompletely different purposes. Thecontract between the vehicle ownerand the collision shop is not part ofthe contract between the vehicleowner and the insurer, unless thevehicle owner authorizes the insurerto pay the collision shop directly ontheir behalf (which does happen alot). Maybe that is why there is somuch confusion over who isresponsible for what. When you startmixing the provisions of the repaircontract with the provisions of theinsurance contract, the problemsoften begin.

The issues usually start when theappraiser arrives at the repair shopand says, “I am here to inspect adamaged vehicle, prepare anestimate and reach an agreed pricewith you to repair it.” Over the years,the senior shop owners have taughtthe younger generation that this ishow things are supposed to work.(Because that’s how they were told itwas supposed to work.) No offense tothe seniors, but that is why thecollision industry is in so much troublenow.

Years ago, things were not likethey are today, but they were slowlygetting to this point. By insuranceappraisers continuously coming outto collision shops and saying thatthey weren’t going to pay for certain


things, the collision industry justautomatically took it for granted thatcarriers had a right to do this andenforce it. The insurance industry isthe best in the world at analyzing riskand deciding what they are willing toinsure. It’s very similar to gambling. Infact, to explain it in simple terms, theinsurer is gambling that the vehicle

they insure will not be involved in anaccident. However, if it is involved in acollision or gets damaged, one wouldthink the insurer would just pay. Well,it doesn’t quite work that way.

When one goes to Atlantic City,puts his or her money on a number onthe roulette wheel and that numbercomes up, that bet is just paid off at

the odds listed – no argument or fuss.Things are not that simple when itcomes to insurance. One might thinkwhen you have an accident, theinsurance company has to pay what ittakes to repair the damage. Instead,certain insurers do everything in theirpower to keep from paying even closeto what the people they insureunderstood they would be paid in theevent of an accident or loss. To makethings worse, the insurance industryhas brainwashed the collision industryover the years into thinking thatcarriers have a veriety of rights thatthey never had and never will.

Insurance appraisers areconstantly telling shops that they must

provide the insurer with the invoicesfor all of the parts that went on adamaged vehicle or they will not paya supplement for any small additionalparts that become apparent after therepairs begin. In reality, the insurerhas absolutely no right to the shop’sinvoices. Rather than separating thecontractual issues of who is entitled towhat under which contract, most shopprofessionals just give up and providethe insurer with all of their invoices(and usually don’t even charge theinsurer for the time to copy them).

It is only too often that an insurercomes into a collision shop and says,‘We only pay the prevailing LaborRate in the area,’ and then dictateswhat that rate is without any support-ing information or documentationwhatsoever. In many cases, the shopsjust accept it. This has been going onfor so long that the Labor Ratesacross the country are lower thanwhat lawnmower and bicycle repairshops are being paid. This is becausethe rates have been artificiallysuppressed by the insurance industry

EXECUTIVE DIRECTOR’S MESSAGE



for so long that they will need to bedoubled or tripled to catch up towhere they should be today.

I could sit here and go on and onabout the problems in the collisionindustry, but I choose not to bore thereaders any more than necessary. Mypoint is that something has to be donebefore it is simply too late to turnthings around. Collision shops cannotafford to continue repairing com-plicated vehicles like the ones on theroads today for less than what theyare worth. Existing collision shops aregoing out much faster than new onesare coming in. Technicians are findingother trades to go into because theysimply cannot get paid the kind ofmoney they can receive in otherindustries.

The bottom line is that the collisionindustry needs to wake up andbecome aware that this is not howthings are supposed to be. Theinsurance industry is not in charge ofthe collision industry, and it should notbe dictating such things as the LaborRates or how vehicles will getrepaired. The collision industry needsto take a giant step forward and say,“This is our industry! From now on, wewill not allow anyone to dictate to ushow much we will be paid per hour,what kind of parts we will be using orhow damaged vehicles will getrepaired in our shops.” This is NOTthe way things are supposed to be.For those shops that are ready to takethat giant step but are afraid to be outthere all alone, think again. Join

AASP/NJ today and we will be there tosupport you on your way to success.You can contact me at (732) 922-8909to join, or you can get more informationabout membership on the AASP/NJwebsite at aaspnj.org.

NJA

Wreck Room Collision, LLCAtlantic Highlands

Welcomes our newest member:

MECHANICAL CHAIRMAN’S MESSAGE

The Growing Gap in Educationby KEITH KREHEL

Before I started my auto repair andservice business, I taught for a highschool auto shop program for severalyears. I graduated college with ateaching degree in industrial artseducation and was trained in manyareas, including woodworking,metalworking, drafting, printing,automotive, electrical, photographyand plastics (I had attended many ofthese “shop” classes in junior high andhigh school before attending them incollege). After resigning from myteaching position, I noticed adisappointing trend. Shop classes withthe hands-on training for valuable skillswere being done away with as if theywere unimportant.

By attending shop classes inschool, students gain exposure tovarious trades. This allows each

student to sample which fields (if any)they are interested in, without thecommitment of going to a trade ortechnical high school. In each shopclass, they can learn practicalinformation on how things aredesigned, built and maintained, alongwith investigating their own aptitudewithin each field. Without theseexperiences, how would studentsidentify their interests? I can relate tothis. I found my auto shop classesintriguing and enjoyable, but had noexperience in the field because no onein my family had any interest in cars(other than to drive one).

Many of the students I taught couldhave been considered disciplineproblems in other classes, but weregood students in mine. These samestudents, who may have had a hard

time sitting still while diagramming asentence in English class, were not aproblem in shop class. I still remembermany times when a non-shop teachervisited me during one of my sessionsand later asked me how I handled aparticular student. Very often, Iresponded that he or she was not aproblem in my class, and that thestudent was one of my better onesbecause he or she was interested inmy subject and perhaps could see thevalue in what was being taught. Ipersonally found it rewarding to teachpractical skills to students, enablingthem to perform an oil change orchange a flat tire. Not every student ofmine became a mechanic, but somedid. All of my students probably wenton to own and operate cars.

Employment is another reason whyshop classes are important. From myexperience, most skilled and capabletechs are employed and have relativelystable careers, unlike their engineeringand computer programming buddieswho seem to be laid off betweenprojects and economic downturns.Capable auto mechanics are indemand in good and bad times. Duringtough periods, people keep theirvehicles longer, requiring moreattention as these rides get older. Onemechanic I met took advantage of hisemployability by moving around thecountry with his trailer every couple ofyears. He was confident he would findwork wherever he traveled and make agood wage. Not too many careerscould handle that mobility.

In my opinion, there seems to be apush for all students to go to college –regardless of ability – and be trained tosit in front of a computer. I don’t agreewith this approach. College is great forsome, but not everyone. Many peoplewould be better off in the trades, andI’m not just talking about automotiveservice. For example, houses are still


continued on page 59



AASP/NJ UPDATE

Company Name:______________________________

Contact: ____________________________________

Town: ______________________________________

Phone:______________________________________

Total Number of Member Guests____ @ $50.00 =

$_____________ Ck. Enclosed

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To pay with a credit card, provide the following information:

Credit Card #: ________________________________

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Billing Address: ____________________________

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Fill out this form and fax it to (732) 922-9821For questions about this meeting, call AASP/NJ Executive

Director Charles Bryant at (732) 922-8909.

Cost: Members: $50 / Non-Member Guests: $75Registration deadline: Friday, October 23

PRE-REGISTRATION REQUIRED

To register, send the form to the right with checkpayable to AASP/NJ to:

AASP/NJ, PO Box 734, Neptune, NJ 07753

AASP/NJ 2015 Annual MeetingWednesday, October 28

7pm Cash Bar, 7:30pm DinnerGran Centurions Banquet Hall

Clark, NJAASP/NJ Presents: An overview of General Motors’new program that will change the way collision repairers obtain list pricing on parts from the manufacturer.

John Eck, GM’s wholesale dealer/customer care manager, will pro-vide insight on why MyPriceLink was created, discuss the background onwhat made GM decide to go with it and give an overview of how it willwork. Finally, he will offer insight into the effect MyPriceLink is likely tohave on the collision industry. Immediately following, AASP/NJ will present a brief awards cere-mony, do a synopsis and overview of AASP/NJ’s recent activities andthen open up the meeting for discussion to allow members an opportu-nity to speak in an open forum about the issues that are currently affect-ing them the most (such as the introduction of aluminum-intensivecommercial vehicles). The plan is to give our members a chance to speakopenly about the problems they are having in today’s automotive repairworld. A question-and-answer period will follow.

Don’t miss this exciting, must-attend meeting!



OCTOBER 1Advanced Steering and Suspension SystemsDamage AnalysisHoliday Inn & Suites, Parsippany

OCTOBER 5Corrosion ProtectionPennco Tech, Blackwood

OCTOBER 6Adhesive BondingPennco Tech, Blackwood

OCTOBER 7Best Practices for High-Strength Steel RepairsCompact Kars, Inc., ClarksburgOverview of Cycle Time Improvements for the CollisionRepair ProcessCollisionMax of Pennsauken, PennsaukenOverview of Cycle Time Improvements for the CollisionRepair ProcessPennco Tech, Blackwood

OCTOBER 8Corrosion ProtectionSomerset Vocational High School, Bridgewater

OCTOBER 13Adhesive BondingComfort Suites, Mahwah

OCTOBER 14Welded and Adhesively Bonded Panel ReplacementCollisionMax of Pennsauken, Pennsauken

OCTOBER 15Full-Frame Partial ReplacementHoliday Inn & Suites, Parsippany

OCTOBER 17Vehicle Technology and TrendsHoliday Inn & Suites, ParsippanyHazardous Materials, Personal Safety and Refinish SafetyHoliday Inn & Suites, ParsippanyFord F-150 Structural Repair (FOR06-1)Comfort Suites, MahwahFord F-150 Structural Repair (FOR06-2)Comfort Suites, Mahwah

OCTOBER 20Adhesive BondingKeystone Automotive, PalmyraAluminum Panel Repair and ReplacementKeystone Automotive, PalmyraFull-Frame ReplacementVirtual Classroom

OCTOBER 21Replacement of Steel Unitized StructuresCompact Kars, Inc., ClarksburgFull-Frame Partial ReplacementKeystone Automotive, PalmyraSectioning of Steel Unitized StructuresKeystone Automotive, Palmyra

OCTOBER 22Plastic and Composite RepairHoliday Inn & Suites, ParsipannyWheel Alignment and Diagnostic Angles (STE04-1)Keystone Automotive, PalmyraWheel Alignment and Diagnostic Angles (STE04-2)Keystone Automotive, PalmyraFord F-150 Structural Repair Training Course (FOR06-1)Somerset Vocational High School, BridgewaterFord F-150 Structural Repair Training Course (FOR06-2)Somerset Vocational High School, Bridgewater

OCTOBER 26Waterborne Products, Systems and ApplicationVirtual Classroom

OCTOBER 27Aluminum Exterior Panel Repair and ReplacementComfort Suites, Mahwah

OCTOBER 28Rack and Pinion and Parallelogram Steering SystemsCollisionMax of Pennsauken, Pennsauken

New classes are added daily! Visit i-car.com for more information or toregister!

CALENDAR



New Jersey Automotive | October 2015 | 27New Jersey Automotive | October 2015 | 27




NEW MEMBER SHOP PROFILE By Jacquelyn Bauman

BENNER’SAUTO BODY Benner’s Auto Body has been a staple of Cranford, NJ since 1910, when it was first openedby Harold F. Benner with just 6,000 square feet,comprised of an office, one spray booth and one3,500-square-foot body shop. Seventy years later,Harold’s son Henry sold the shop to young shopowner Joseph O’Neill, Sr., who increased the facilityto its current size of 25,000 square feet, added threeAccudraft downdraft spray booths and gave the shopthe ability to house 60 cars. When Joseph O’Neill, Jr. took over Benner’sAuto Body after his father was diagnosed with can-cer, his biggest challenge was finding a way to gethis customers, vendors and 20-plus employees to puttheir trust in a 23-year-old with no automotive repairexperience. Now, six years later, the shop sees between 10and 15 jobs a day, has been using waterborne forover four years, is aluminum certified and boasts thenewest technologies from vendors such as Metropoli-tan Car-o-liner and Pro Spot. Despite his youth,Joseph Jr. took the right steps to prepare himself forrunning an automotive repair shop and is now enjoy-ing success as a result of this commitment. “Because I didn’t know too much about runningthe business aside from just being around the shopwith my father, I decided to reach out to Sherwin-Williams,” he explains. “They sent me to the classesI needed, introduced me to other shop owners andgave me pointers as to where to go next.”

Implementing the lean processes and high standards taught by Sherwin-Williams management courses helped the young owner to weed out thoseemployees whose quality wasn’t up to par with where he saw Benner’s going. “When I first came around, there were a lot of bad employees,” he re-calls. “Whether they were inexperienced, refused to adapt to changes beingmade to the production system or even stealing, one of the biggest challengeswas clearing house and rebuilding with a core group of guys. We had to findauxiliary people to come on board, which is always a hard process. We hirednew body men, painters, estimators and front office staff.” It is for this reason that Benner’s recently became a member ofAASP/NJ. “Being a part of the body shop community in New Jersey is a good re-source for finding new technicians,” offers Joseph Jr. regarding his decisionto join the association. “We’ve been on-again, off-again members for years,but the search for new employees was the deciding factor in coming back.” In addition to hiring new staff, Joseph Jr. has put almost $600,000 backinto the business in just the past few years in order to bring the shop up tospeed with training and equipment upgrades. “I was only able to put that money back into the business because we doa lot of volume here,” he says of the investments he considers necessary tostaying alive in this industry. “I think a lot of smaller shops are going to beclosing. Between the technological and regulatory changes happening, ifyou’re not on board, you’re going to get wiped out sooner or later. In myopinion, this is going to become more of a niche industry [in the next 10years] and be determined by square mile radius. It costs so much to be certi-fied by just one manufacturer that shops won’t be able to obtain [this status]for a number of them. We’re going to see a lot of consolidation and biggershops controlling particular zip codes and manufacturers.” With all of their recent triumphs under Joseph Jr.’s ownership, Benner’sAuto Body is sure to stay ahead of the curve. For shops that want to achieve asimilar level of prosperity, he suggests taking a step back. “The biggest thing I would say would be not to nitpick every hour onevery job,” he suggests. “Look more at the big picture and how you canmove units through a streamlined process in order to be more profitable. Ifyou get hung up on one car or one supplement, you’re going to go crazy.”

NJAJoseph O’Neill, Jr. as a child with his father, greeting a customer at the shop.

The Benner’s Auto Body team





VENDOR SPOTLIGHT By Joel Gausten

If you’re a body shop ownerin New Jersey, you know betterthan anyone that we work in oneof the most competitive automo-tive markets in the country. Inorder to build and maintain astrong customer base, you alwayshave to be on the lookout for newways to stand above the rest. Oneway to accomplish this is to alignyourself with a wholesale partsteam that not only understandsyour needs, but does whatever they can tobeat their competition. For parts cus-tomers from Piscataway down to CapeMay, Gateway Toyota in Toms River is theplace to go for high-quality OEM collisionand mechanical products. Boasting nearly $300,000 in parts,Gateway Toyota is one of the 300-plusdealers that comprise the Penske Automo-tive Group, an international transportationservices company that operates automo-tive and commercial vehicle dealershipsprincipally in the United States and West-ern Europe. Although the parts departmentis clearly involved in an extensive enter-prise, Parts Manager Damon Comfortemakes sure that each customer account ishandled with personalized care. “We try to build relationships, not justcustomers,” he says. Thanks to in-house storage capabili-ties, Gateway Toyota has the ability toprovide next-day deliveries for most or-ders placed before 4pm. Shops that con-tact the department will receive expert

service from parts advisors includingShawn Dougherty, Tim Acker and KevinMartinez. Since joining Gateway Toyotatwo years ago, Comforte (a 22-year partsindustry veteran) has worked hard to en-sure that his customers have an alternativeto aftermarket items. Recently, he signedup with Auto PartsBridge, an online parts-ordering system based on an ElectronicParts Catalog (EPC) that allows bodyshops to send orders directly to GatewayToyota. Orders come pre-loaded into theEPC and are matched to the vehicle usingthe VIN. The system pre-matches 90 per-cent of the parts, dramatically reducing adealer’s work in interpreting collisionquotes and orders. A fully functional EPCis also provided for matching the remain-ing parts and locating those missing fromthe body shop estimate. Comforte is confi-dent that the Auto PartsBridge structurewill provide a smoother transactionprocess for all parties. “Customers basically scan over theestimate to me, and I can try and match

the price of an aftermarket [part],”he explains. “Toyota actually re-imburses me for the difference.”In addition to these impressiveservices, Gateway’s status as aToyota STAR Elite Dealer enablesComforte to invite independentauto body facilities to order partsonline using the Toyota ElectronicParts Catalog (EPC) from the Toyota Wholesale Parts Website(toyotapartsandservice.com),

as well as receive free technical servicebulletins and repair information. GatewayToyota’s efforts to build a stronger onlinepresence for the wholesale department include overseeing an eBay store(tinyurl.com/owax933) and a dedicatedin-house parts ordering site (tinyurl.com/ors7n22). Moving ahead, Comforte and hisparts team are committed to consistentlyadapting to an always-changing market-place. “These days, it’s all about service andnot so much about price,” he says. “Abody shop will pay a little more to makesure they get a good-quality part the nextday to maintain a strong turnaround time.” The Gateway Toyota parts departmentis open 7am-7pm Monday through Saturday. For more information, contact Parts Manager Damon Comforte at (866)423-0340 or visit gatewaytoyota.com.

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The Power of OEM:Gateway Toyota Beats the Aftermarket

For parts customersfrom Piscataway downto Cape May, GatewayToyota in Toms River is

the place to go forhigh-quality OEMcollision andmechanicalproducts.




After months of legal setbacks, the Multidistrict Litigation (MDL) filed against a number of insurers by collision repair professionals in several states has been hitwith a crippling blow. On September 23, US District Judge Gregory A. Presnelldismissed the four claims in a second amended complaint inA&E Auto Body, Inc., et al. v. 21st Century Centennial InsuranceCompany, et al. – the first-filed action in an MDL case involvingtwo dozen suits. The A&E suit was originally filed in February2014 by 20 Florida body shops against 39 auto insurance carri-ers. The dismissal means that the plaintiffs will no longer have anopportunity to refile. The four claims accused the defendants ofprice-fixing in violation of the Sherman Act, boycott in violationof the Sherman Act, quantum meruit and tortious interferencewith business relations. These claims accompanied a list of complaints with which repairers across the country are familiar,including conspiring to fix Labor Rates, mandating inferior partsin the repair process, refusing to pay for important proceduresand more. “This is the plaintiffs’ third arduous attempt to state a claim,”Judge Presnell stated in his order. “The problems identified in response to their initial complaint – shotgun pleading, vaguenessand implausibility – have persisted in their subsequent efforts.Based upon a review of the pleadings in this and the other 20-oddcases [in the MDL] – almost all of which share the same short-comings – the Court finds that giving the plaintiffs another opportunity to state a claim would be an exercise in futility. Despite becoming much wordier, the plaintiffs’ pleadings have

not come remotely close to satisfying the minimum pleading requirements as to any of the claims asserted. Accordingly, allfour claims will be dismissed with prejudice.” The September 23 order is the latest in a series of obstaclesfor the Multidistrict Litigation. In a late-August decision, JudgePresnell stood behind many of the recommendations made inJune by US Magistrate Judge Thomas B. Smith to dismiss com-plaints in lawsuits filed in New Jersey, Arizona, Michigan, Ala-bama, California, Illinois, Oregon, Washington, Pennsylvania,Kentucky, Virginia and Missouri against multiple auto insurancecarriers. Charges in the suits include steering, price-fixing, unjustenrichment, tortious interference, antitrust violations and unfairtrade practices. In addition to collision repair facilities and a former body shop owner, the plaintiffs include the Alliance ofAutomotive Service Providers of Pennsylvania (AASP-PA).Many of these cases are represented by the Eaves Law Firm fromJackson, MS. As previously reported in New Jersey Automotive (“Dis-missal Requested in Multidistrict Lawsuit,” NJA, July 2015),Judge Smith’s June 3 report recommended that most charges inthe cases be dismissed “without prejudice,” meaning that theplaintiffs would have an opportunity to amend their complaints.He argued that the plaintiffs failed to allege specific facts relatingto each defendant insurer (or a group of defendants) that could illustrate particular offenses. Additionally, Judge Smith’s initial recommendation to dismiss the claims specifically addressed the New Jersey suit,recommending the dismissal of its claim for quantum meruit


NATIONAL NEWS By Joel Gausten

Multidistrict Litigation Claims

DISMISSED



(a reasonable sum of money to be paid for services rendered orwork done when the amount due is not stipulated in a legally en-forceable contract). He noted that New Jersey law requires that aquantum meruit claimant’s expectation of payment be reasonable.As such, the New Jersey plaintiffs could not have a reasonableexpectation of payment of the amounts they now seek due to thefact that the defendant carriers in the state were persistent in re-fusing to pay these amounts in past instances. Judge Smith alsonoted that the New Jersey plaintiffs had not alleged any other cir-cumstances (such as a mistake of fact or a pre-existing duty to dothe repairs at issue) that could conceivably justify recovery of thedifference between the price they wanted to charge and the pricethey were aware the insurers were willing to pay. In a letter issued to the industry following Judge Presnell’sSeptember decision, AASP/NJ Executive Director CharlesBryant offered his views on the current status of the MultidistrictLitigation. “I have a strong message for the entire collision industry:DO NOT GIVE UP!” he said. “The type of litigation that was at-tempted is extremely difficult, and there are numerous ways thatsuch litigation can fail.”

Bryant applauded the efforts of the Eaves Law Firm inchampioning for the industry, acknowledging the difficulty inmoving cases of this magnitude forward through the court system. “Right now, you can bet that insurers are hoping that the dismissal of these claims will scare anyone else from evenattempting to challenge the mighty insurance industry,” heshared. “Well, I can tell you firsthand that there is much more to come. More inappropriate activity is being discovered anddocumented every day through depositions and discovery [in] the many other suits across the country. It is only too often that a big loss like this will take the wind out of the sails of those trying to make a difference. “In every major battle, there are losses and casualties alongthe way,” he added. “Do not let this one loss discourage the manyshop owners across the country who have decided to stand up. Ifthere ever was a reason or time to unite, that time is now!”

NATIONAL NEWS

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LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.

Many law firms offer services that allow business clients theopportunity to have an attorney “on call,” similar to “in-house”attorneys employed by Fortune 500 companies. The services aretailored to the size and needs of these smaller businesses that aregrowing locally, nationally or even internationally. They helpproactive business owners identify and understand legal issuesthat they face every day (and nip these problems in the bud). Thisis done at a far-reduced cost before that same problem forces thebusiness into litigation, which can be cost-prohibitive.

By entering into these types of agreements, clients can havean attorney “on call” at any time a question arises. The attorneycan provide regular counseling and review employmentprocedures, attend corporate meetings, train employees regardingemployment practices, review current contracts and assist withrespect to negotiating new agreements. The attorney can reviewpotential liability issues related to a host of matters based on thebusiness involved, as well as review leases and insuranceinterests. He or she can also distribute advice regarding anypotential exposure problems.

These agreements should all be unique, as no twoagreements should mirror one another any more than any twobusinesses would be exactly the same. In the end, an outsidecounsel agreement should be beneficial to both sides, and bothparties should feel that they are getting good value for the price.

For more information on an outside counsel agreement for your business, please contact Mitchell H. Portnoi at the Law Firm of Post, Polak,Goodsell, MacNeill & Strauchler at(773) 228-9900.

OUTSIDE GENERAL COUNSELSERVICES


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INDUSTRY UPDATES

Fenix Auto Parts Joins Auto RecyclersAlong the Coast by Jacquelyn Bauman

When nine auto recyclers with 14 locations jointogether, it’s the customers who benefit. On August 18, the second-largest auto recycler inNorth America, Fenix Parts (fenixparts.com), announcedthe acquisition of Cosmo’s Ocean County Auto Wreckers inBayville, NJ. Cosmo’s will now join a group of the mostauspicious automotive recyclers up and down the eastcoast, including Leesville Auto in Rahway, NJ; Don’sAutomotive in Binghamton, NY; Jerry Brown’s Auto Parts inQueensbury, NY; Eiss Brothers Auto Parts in Watertown, NY;Horseheads Automotive Recycling in Elmira, NY; StandardAuto Wrecking (with locations in New York and Canada); GoAuto Recycling in Jacksonville, FL; and Gary’s U-Pull-It inBinghamton, NY. “Joining with Fenix Parts was a mutual decision,” saysCosmo’s Ocean County Auto Wreckers Owner TonyZaccaro. “The longstanding previous relationship that wehad with these other companies brought us all together. Weall share the same vision. We want to take care of ouremployees because they take care of our customers, andour customers take care of our success. That’s the goalwe’ve always had.” Zaccaro is excited about the possibilities that this newpartnership will bring to both his employees and hiscustomers. “Now that we’re larger, we have a greater ability forcoordination,” he explains. “We believe there are significantbenefits of scale: First, increased parts availability throughthe hub; second, synergies with respect to how we buycars, tow and distribute products to our customers; andthird, the leverage we gain on our fixed-cost structure andcorporate, general and administrative expenses.”

ComputerLogic is determined to make managing paint and materials as easy as possible, and we believe we do that today.

- ComputerLogic President, Rick Palmer

“

COMING TOGETHER:

48 | New Jersey Automotive | October 2015 ”

PMCLogic Adds KPI ReportsComputerLogic, Inc. has announced the latest release of

its PMCLogic paint and materials management system. Thenew Version 6.7 contains a suite of Key Performance Indica-tor (KPI) reports, charts and graphs to help shops bettermanage their paint and materials inventory, costs and sales.

This release marks another important milestone in thedevelopment of the first and only software tool for the colli-sion industry that provides an extremely accurate predictiveestimate of all of the paint and materials that will be used oneach unique vehicle repair. Because PMCLogic interfaceswith all vehicle-estimating providers (and most body shopmanagement systems and paint company mixing scales), lit-tle human intervention is needed in order to gather the datarequired to generate an accurate P&M invoice and keep trackof all of the paint and materials actually used for a specific re-pair (R.O.).

New Features in PMCLogic 6.7 include:KPI Reports

Key Performance Indicators (KPIs) are used in the colli-sion repair industry to measure and evaluate factors that arecrucial to success. It is now possible to spend less than twominutes to capture a wealth of information that will helpshops make better decisions on how to control cost and in-crease profits on their paint and materials.

Line Item Invoicing OptionShops now have the ability to generate a separate docu-

ment for those P&M items that are sometimes paid as a lineitem on the original vehicle estimate. These items are auto-matically deducted from the PMCLogic P&M estimate/in-voice. However, the management of these items is treatedlike any other P&M item for inventory control, purchasing,costing and reporting purposes.

“We are looking for new ways to make PMCLogic’s paintand material management system easier to use and providemore value to shops every day,” stated Susan Edge, PMC-Logic project manager. “This is a collaborative effort betweenComputerLogic and thousands of body shop users whowant to change the way repairers get paid for the paint andmaterials that they use for each repair. We listen to our cus-tomers and keep adding new features that will ultimatelymake this product more valuable as a management tool.”

“The old saying, ‘You can’t manage what you don’tmeasure,’ is very true,” added President Rick Palmer. “Com-puterLogic is determined to make managing paint and mate-rials as easy as possible, and we believe we do that today. Itonly takes a few minutes on each job to accurately capturethe paint and material usage for that repair. [This] allows ashop to have the ability to run a wealth of informative reportsthat will not only help them manage better, but also assistthem in increasing their compensation for these costs.”

For more information on PMCLogic, contact Computer-Logic by calling (800) 933-6564 or send an email to [email protected]. Information is also available at computerlogic.com or pmclogic.com.

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One example of how this augmented size and strategy with alarger entity helps Cosmo's can be found in their vehicleprocurement. Through the increased coordination of vehicles acrossall of these 14 locations, Cosmo's and the rest of the Fenix Partsteam are looking to improve the availability of parts to theircustomers. “This is just one way we’re focusing on continuous improvement,”Zaccaro explains. “We’re also putting a spotlight on quality control,employee benefits, customer experience and broadening our overalldistribution.” The greatest benefit of the consolidation of these companiesunder Fenix Parts is that it allows for greater resources, a fact whichis exhilarating to Zaccaro. “Through this partnership, we are better able to work on teambuilding, company logistics and customer relations,” he says.“Consolidation is happening in all industries, and it’s nothing newhere. With MSOs popping up all across the automotive service field,I feel like our decision to join Fenix Parts will better allow us toaccommodate the needs of both multi-shop organizations and theindependents, as we now have access to an even more diversifiedinventory across our 14 locations.” Although joining the Fenix familymeant going from 28 employees to 563overnight, nothing has changed in-houseat Cosmo’s. “The transition is so smooth; it’s justbusiness as usual over here,” Zaccarostates. “All of the same staffing is still inplace. Our employees are excited abouttheir increased career opportunities, andour customers are excited about our new,greater ability to fill their needs. Being apart of a larger company will help assistboth Cosmo’s and all Fenix Parts storesinto the future, helping us to be moresustainable than we would be asindependents. That’s a huge benefit for our staff.”

”We all share the same vision. We want to take care of our employees because they take care ofour customers, and our customers take care of our success. That’s the goal we’ve always had.

- Tony Zaccaro“


Zaccaro is not the only one who is invigorated by this newrelationship. “Cosmo’s is a high-quality auto recycler that meets all of ouracquisition criteria, with strong leadership and operations adjacent toour existing markets that will expand our distribution, dismantling,warehouse and yard capacity,” says Kent Robertson, CEO of FenixParts. As for the future of Fenix Parts, the goal is to acquire one to threemore facilities every quarter, filling in the larger market areas betweenCanada, the American Northeast and the Southeast. For those who are interested in knowing more about Cosmo’sOcean County Auto Wreckers and Fenix Parts, Tony Zaccaro and JoeGoodman (Leesville Auto) would like to personally invite you to jointhem at the Automotive Recyclers Association’s 72nd AnnualConvention and Exposition in Charlotte, NC from October 7-10.Zaccaro is available at (732) 349-0332 ext. 1500 or at [email protected], and Goodman can be reached at (732) 388-0783 orat [email protected].

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COVER STORY by Jacquelyn Bauman

This past summer, a Vermont mechanic was arrested for involuntary manslaughter and reckless endangerment. What maybe surprising to many is that his arrest resulted from a death thatwas due to an allegedly incomplete inspection of a vehicle almost ayear prior.

On July 5, 2014, Donald Ibey of Barre, VT was driving his1992 Chevrolet Corsica when, according to police reports, “heheard a pop.” The sedan went out of control down a steep hill andcrashed, killing Ibey’s wife, Elizabeth.

Just two months earlier, mechanic Steven Jalbert had passedthe vehicle, posting an inspection sticker on it after it drove into hisfamily’s Barre-based business, A.J.’s Sunoco. A post-crash inspec-tion uncovered extensive rust on the rocker panels that, accordingto DMV Lieutenant Tim Charland in a court affidavit, would “most likely” have been present when the car was brought to be inspected, as the Corsica had only traveled 383 miles since its visitwith Jalbert.

Not surprisingly, this event has already had echoing ramifica-tions down in the Garden State.

“This should be a wake-up call to the collision industry,” saysAASP/NJ Executive Director Charles Bryant in an associationpress release following the event. “It’s one thing if you allowed abad job to get out of your shop and were sued– there’s insurance to coverthings like that – but to goto jail for doing a care-less job is a wholedifferent story.”

Bryant isquick to sharehis uneaseover this

situation, addressing the all-too-common struggle with insurer reimbursement for adequate parts as a potential area of concern.

“So many shops try to do the right thing, but they are told byinsurers that they won’t be properly reimbursed for what needs tobe done,” he offers. “They say things like they will only pay forused suspension, which, in my opinion, is the worst thing thatcould be done! Used suspension from a total loss should never beused; there could be internal damage that puts people’s lives injeopardy.”

Is Bryant’s unrest over this issue warranted? In a September25, 2014 interview with Lieutenant Charland, Jalbert admitted tonever putting the Corsica on a lift, taking it for a test drive or removing a tire to check the braking component.

“If Jalbert had done a visual inspection by looking under a carto check the brake lines, and part of the line ran under the gas tank,I think the courts would go lightly on him,” explains AASP/NJMechanical Chairman Keith Krehel. “You can’t do a visual inspec-tion on what you cannot see – it’s like trying to inspect a housewithout going inside. But the question is whether this case was dueto incompetence or a pattern of behavior. Was it intentional or wasit simply oversight? I don’t wish this outcome on the mechanic,and I don’t wish it on the customer. But ultimately, this is eithergross incompetence or fraud.”

Although Jalbert’s subsequent arrest is obviously a reaction toan overtly insufficient inspection, it does call into question who isresponsible when accidents occur as a result of inadequate repairs.In Bryant’s example above, who would be liable when a vehicle isinvolved in a crash caused by a used suspension — the only sus-pension for which the insurer declared it would pay?

“If you own a business of any kind, you hold a certain amountof liability,” AASP/NJ President Jeff McDowell explains. “In this

day and age, anybody can be sued over any-thing, so the individual business isalways liable. Should insurers beheld accountable if they forceyou to use unsafe parts in arepair? Of course. Butthe truth of the matteris that they havemore money and

WHO’S LIABLE?Paying the Pricefor Bad Repairs


better lawyers and just don’t care about the shop. If you go intocourt and claim that it’s the fault of the insurer because of their re-imbursement practices, you’re going to lose.”

As McDowell sees it, the case stands on shaky legs.“This was an old car that spent its whole life in Vermont,” he

states. “The conditions in that state are not ideal because of itsharsh environment. Cars have to deal with difficult terrain, extremeweather, frequent salt on the roads and more. Cars deterioratemuch faster in those conditions than if they are in more temperateclimates. However, the problem here is no matter what, you dohave some sort of responsibility that can come out as legal liability.If people come to my shop after an accident and ask me, before Ican even examine the car, ‘Is it safe to drive?’ I have to say no be-cause what will happen if they get in a subsequent accident?They’ll say, ‘You said it was safe to drive!’ And unfortunately, I’llbe the one on the chopping block.”

While insurer interference unfortunately mandates a lot ofwhat goes on in the shop and during a repair, New Jersey-based at-torney James E. Mackevich warns that in the courtroom, the insur-ers would not be standing alone.

“Under my interpretation of New Jersey statutes and case law,if a used suspension fails and it has been installed by a DRP facil-ity, both the DRP shop and the insurance company would be liablefor the consequential damages suffered by third parties,” he ex-plains. “New Jersey regulations indicate that when the work isdone at a DRP, the insurance company that sent the customer therehas to guarantee that work. If the subsequent work is done incon-sistently with industry standards, both the shop and the insurercould be held liable.

“In the case of an independent shop, it should be obvious thatthe [facility] must take sole responsibility for their work,” Macke-vich adds. “If the shop chooses to do the repairs by following the in-surance company’s estimate, the shop still holds the ultimateliability.”

Although the Jalbert case differs because it is a criminal case and not a civil one, Mackevichis unsurprised by the outcome. He citesvarious examples of individualswho’ve seen similar endsby either failing to

do their jobs or doing them in an egregiously bad or grossly negligent manner.

“There are numerous anecdotes we can read from the newspa-per of people who don’t do their job correctly and are criminallyprosecuted. This case is nothing new,” he says. “There was the casein New York of the crane collapsing last winter; the inspectors whowere assigned to inspect the crane but did not do so were broughtup on criminal charges. There’s nothing earth-shattering about theidea. If you perform your work in a grossly negligent manner andpeople are killed, you might be prosecuted.”

Even if no criminal issues arise, there can still be civil claims.One example Mackevich cited was a case in New Jersey that in-volved an individual who was killed while attempting to retrieve aspare tire that had become detached. Among the listed defendantsin the case was the shop who had allegedly improperly serviced the1987 van, causing hazardous conditions to occur. Because of allof the risks shop undertake, liability insurance is highly rec-ommended for automotive service providers.

“When you purchase liability insurance, it coversyou for something you might be sued for,” saysAASP/NJ Board member Joe Amato, Sr., ownerof The Amato Agency. “There’s propertydamage liability insurance, bodily injuryliability insurance, general liability and— what is most important for thosein this industry — garage liabil-ity insurance.

continued onpage 59

"In my view, repairshops have tounderstand that their contract to repair is with the car owner, not the insurance company." - Attorney James Mackevich





In just a few short weeks,more than 100,000 people fromaround the globe will hit the LasVegas Convention Center for the2015 SEMA Show. This year’sevent (held November 3-6) willonce again feature extensive par-ticipation from the Society of Col-lision Repair Specialists (SCRS),who are set to host more than 30collision repair-oriented semi-nars as part of the association’sannual Repairer Driven Education(RDE) Series. Although SEMA represents all as-pects of the automotive service and re-pair industry, great efforts have beenmade to ensure that the RDE programprovides value to independent collisionrepair facilities. With major consolida-tors gaining considerable traction in thenational auto body scene, the more tradi-tional “mom and pop” establishmentsare feeling increased pressure to main-tain and build their customer bases. For“Competing with Consolidators,” DavidLuehr of Elite Body Shop Solutions,LLC has created a seminar that will help these owners and repairers gain the perspectives necessary to properlycompete and succeed in this changingbusiness landscape. The discussion willcover what consolidators are doing right(and what other shops can learn fromthem), the advantages independents haveover MSO consolidators and why own-ing the customer for life is the best way

to brand your business. “The independents I’ve seen that aresuccessful in these consolidated marketsare more customer-driven,” Luehr ex-plains. “They’re not opposed to DRPs,but they don’t depend on them to sur-vive. They’re dependent on having afantastic customer experience whereeverybody’s going to be out telling theirfriends and family [afterwards].” For veteran SEMA speaker TimRonak (AkzoNobel), returning for thisyear’s Show means offering shops in-valuable insight into how to guarantee aproper ROI for the various investmentsthey’re making in the business. His No-vember 3 course, “Getting Paid for In-vesting in Facility, Equipment andTraining,” will offer real-world facts andfigures to help shops make better finan-cial decisions. “The purpose of this session is totake any investment in technology –whether it be training, equipment or hav-ing to revamp your facility – and figureout the per-unit cost,” Ronak explains.“Our industry has made a practice ofusing fortune-telling as a way of settingpricing. Before you can establish a price,one of the rules of job costing is under-standing what it costs you to deliver thatservice.” Attendees of Ronak’s talk will re-ceive a special spreadsheet that they canuse to input and analyze their data to de-termine the right charge based on theirinvestments. Above all, Ronak stressesthat shops can establish their rates in away that suitably compensates them forthe money they spend to develop theirprofessional expertise. As he says, “The assertion that theinvestment in technology, equipment andtraining is just a cost of doing business isthe greatest Jedi mind trick perpetratedon the industry.”

Also on November 3, John Niech-wiadowicz of QLC, Inc. will present“Understanding Numbers and WhatThey Tell You About Your Growth Opportunities,” a session that will focuson the importance of a shop thoroughlyunderstanding its numbers and potentialsbefore investing in equipment, tools,programs or locations. “We’re really going to dive downinto how to determine the operational re-turn that a shop could and should expectin a variety of common situations theymay encounter,” he offers. “Topics fordiscussion will include return on invest-ment expectations for aluminum repair,OE Certifications, facility expansion,DRPs and more. This will be a very in-teractive session in that we’ll focus onthe areas that are of current interest tothe attendees.” Niechwiadowicz recommends thatattendees take a good hard look at theirshops’ numbers before venturing out tohis SEMA presentation. Once there, theywill learn how to put those numbers touse to improve their bottom lines. “There are too many instanceswhere a shop is shooting blind becausethey simply don’t have the informationneeded to make a decision based onquantifiable results,” he says. “We’ll bediscussing what data is important [andrealistic] to track and how it can be usedto make a go/no-go decision on opera-tional investment opportunities.” Another benefit of attending SEMAis the ability to gain knowledge of legalor legislative actions in other states thatcould eventually impact markets close tohome. During the AMI-accredited “Pro-tect Your Business from Fines and Disci-plinary Actions by the CA Bureau ofAutomotive Repair,” attorney JackMolodanof will outline a number of ac-tions taking place in California thatcould inform and inspire attendees on

PREVIEW


By Joel Gausten

Consolidation,Legal TrendsAmong SEMASeminarTopics

how to address similar issues in theirstates. For example, Molodanof (whoseclients include the California AutobodyAssociation) will explain how the Califor-nia industry’s strong relationship with In-surance Commissioner Dave Jones led to

regulations that better protect shops andconsumers when aftermarket crash partsare used in a repair. “If the non-compliant crash part doesn’t fit, the insurer will have to pay the shop for the costs associated with

returning the part and the cost to removeand replace the part with a crash part thatfits, or an OEM part,” he explains. “Thelaws are pretty strict; if the insurance com-pany has knowledge that the crash part isnot equal to the OEM crash part in termsof kind, quality, safety, fit and perform-ance, it shall immediately cease requiringthe use of the part and within 30 days no-tify the distributor of the non-compliantaspect of the part.” Other SCRS-related events at SEMAinclude the OEM Collision Repair Tech-nology Summit and the RDE Sky VillaAfter-party, both on November 5. A complete list of RDE classes and SCRS-related SEMA events (as well as registra-tion information) is available attinyurl.com/ok53z9z.


and

Micro-Mix Paintand

Materials Calculatorin Bergen, Passaic, Essex and

Hudson Counties in New Jersey.

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

Mike LovulloDistributor for

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PREVIEW


MECHANICAL CHAIRMAN’SMESSAGE continued from page 20

constructed by skilled laborers in manyfields, using many techniques coveredin various shop classes.

The elimination of shop classes inschools is a disservice to students andthe community. I do admit that theability to use a computer whilediagnosing some car repairs may beneeded (and basic computer skills areimportant), but neglecting the trades isa mistake.

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General liability typically does not coverautomotive-related incidents, which ofcourse is necessary in this line of work.Garage liability will aid in the case of anysuits or civil charges being brought againsta shop.

“One thing I suggest for shops thatsubcontract jobs such as towing or wheelalignments from other garages is to get a certificate of insurance from those busi-nesses you frequently use,” Amato adds. “If a customer is in an accident resultingfrom work done at your shop, and it endsup being due to the work of your subcon-tracted business, you will likely still be heldresponsible as you were the one receivingpayment from the customer. It’s not re-quired by the law to do so, but it adds anextra layer of protection and is simply goodbusiness practice.”

The bottom line is that shops have tobe diligent about the work coming out oftheir bays.

“In my view, repair shops have to un-derstand that their contract to repair is withthe car owner, not the insurance company,”Mackevich states. “They can’t allow insur-ers to tell them how to repair the car, partic-ularly if that repair is not consistent withtheir shop’s beliefs or industry standards.”

“At this point, if you’ve been in busi-ness, this should be obvious,” adds Mc-Dowell. “The only piece of advice I havefor shops who might have been blind to thisbefore is to make sure you have adequate li-ability coverage, and make sure it wouldn’tbe denied based on something you weredoing that might be improper. At the end ofthe day, it’s on you.”

COVER STORY continued frompage 53

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ARANJ 2015 Officers

ARANJ 2015 Board of Directors

Wharton Insurance Briefs An ARA Member Dealer plate usage has been an ongoing issue for manyyears. Although there are different interpretations of the law(and many clients have both won and lost court cases),several insurance issues should be reviewed. In general,dealer plates should be used by dealers to allow theirprospective customers to test drive a vehicle that is for saleor to transport a vehicle from one location to another (i.e.,auction to dealer lot/yard, dealer lot to buyer’s home, etc.).Dealer plates should only be used on a vehicle if you hold itsownership/title. Dealer plates should not be given or lent to siblings,friends or relatives for use. Insurance carriers consider this“improper use” and have declined to provide coverage afteran accident. You should review your insurance program withyour agent to determine the scope of your coverage and anylimitations, such as driver’s age. Many programs limit driversto a minimum age of 21 and owners’ children to age 19. Yourinsurance program may not cover drivers who are underthose ages. Please call me if you have any questions regarding thiscoverage in your insurance program.

Mario DeFilippis, AAI, Vice President(800) 221-0003 (ext. 1320)

(908) 513-8588 (cell)[email protected]

PresidentBob Dirkes

Dirkes Used Auto Parts (609) 625-1718

[email protected]

1st Vice President Ian Szoboszlay

Ocean County Auto (732) 349-0332

[email protected]

2nd Vice President Darryl Carmen

Lentini Auto Salvage (908) 782-6838

[email protected]

3rd Vice President Joe GoodmanLeesville Auto

(732) [email protected]

Mike Ronayne Tilghmans Auto Parts


Mike Yeager EL & M Auto


Rodney Krawczyk Ace Auto Wreckers


Mike Caputo Lacey Used Auto Parts, Inc.


Bert Witcraft Auto Express

(856) 728-8367

Ed Silipena American II Autos (609) 965-6700

[email protected]

Harry Shover Porchtown Auto (856) 694-1555

Norm Vachon Port Murray Auto (908) 689-3152

[email protected]

Executive Director Brian Snyder

Auto Recyclers of NJ (609) [email protected]


IF YOU COULD HAVE ANYONE FROM HISTORYWORK AT YOUR SHOP, WHO WOULD IT BE?I would want NikolaTesla. Despite being acertified wacko, theguy was an engineeringmastermind. He’d begreat to have aroundthe shop, and I’m surehe’d provide a bit of entertainment with allof his quirks, too.

If it doesn’t have to be a real person, I’d hire Master SergeantBosco Albert Baracus – B.A.from The A-Team. Notonly does the guy know his wayaround an engine, but I know he wouldn’t take any s**t fromanyone who tried to tell him howto do his job. He’d probably evenbe good as a manager.

THE LIST

My pick would easily be MickeyThompson. When I was a kid, I heardabout him setting the land speedrecord with his Challenger 1. At thattime, the thought of someone goingthat fast blew my mind. Not only did he know how to drive, but the manwas no stranger under the hood. Hewas a childhood hero of mine, so working beside him would be a dream.

We reached out to some of our readers to find out theirdream employee.

Honestly, I don’tknow a lot abouthistory. I guess I would hire George Washington. Not to work in the shop, but as amanager or in the office. I figure if he could run thecountry, he could probably run my shop.

Without a doubt, I wouldhave hired NASCAR legend[Henry] “Smokey” Yunick. Herevolutionized modern rac-ing and would have been abenefit to the shop. He wasright when he said in the’80s that there were nomore good mechanics left.They don’t make them likethey used to.

If I could hire anyonefrom history, it wouldbe Keith Black. If you can engineer amotor for drag racing, you’d probably be an advantage to any shop in this competitive market.


I would probably hire Leonardo da Vinci.The guy was a genius before his time. He drewup plans for a flying machine centuries beforethe Wright brothers even left their bicycle shop.If he was able to figure out all of this crazy technology before his own time, imagine what kind of an asset he’d be in predicting what could be on the roads in the future.

As much as I hate everyone else who bearshis name, I’d want Robert Kardashian to work

for me, just to fight with insurers on my behalf.If he could get O.J. Simpson off of a

murder charge, he could definitelyget a major insurer to reimburse me

for finish, sand and buff.

I was just watchingTransformers on TVlast night with myson. I’d probably hire Megan Fox fromthat movie if I could.She apparently knewhow to work an engine, but if I’mbeing honest, I’d justkeep her around forthe eye candy.

Photo courtesy of screenrant.com

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Acme Nissan ........................................36

Amato Agency ......................................17

AP Media ..............................................23

Audi Group............................................32-33

Axalta Coating Systems ........................6

BMW Group ..........................................28-29

Bridgewater Acura ................................46

Cadillac of Mahwah ..............................4

CCC Comp-Est ......................................58

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

Continental Auto Parts ..........................51

Empire Auto Parts..................................20

FASTLIGN® ..........................................23

Flemington Audi ....................................5

Flemington Group..................................IBC

Fred Beans Parts ..................................27

Future Cure ..........................................18

Grand Prix Subaru ................................55

Glen Toyota ..........................................OBC

Hyundai Group ......................................37

JMK BMW ............................................21

JMK Saab/JMK Fiat ..............................51

Klean Frame..........................................58

Levittown Ford ......................................55

Maxon Mazda........................................42

Maxon Hyundai......................................39

Mazda Group ........................................50

Mercedes-Benz of Freehold ..................10

MINI Group............................................47

MINI of Manhattan ................................60

Mitsubishi Group ..................................43

Mopar Group ........................................25

NORTHEAST® 2016 ............................62

NUCAR..................................................14-15

Paul Miller Audi ....................................26

Porsche Group ......................................45

PPG ......................................................3

PPGMS ................................................44

Prestige Motors ....................................40

Princeton BMW ....................................13

Princeton MINI ......................................19

Smart Witness ......................................11

Subaru Group........................................31

Town Motors ........................................41

Toyota Group ........................................35

Toyota of Hackensack ............................IFC

Tri-State Luxury Collection ....................8-9

Valtek....................................................59

VIP Honda ............................................46

VW Group ............................................56

Westbury Jeep Chrysler Dodge Ram SRT...54

Wheel Collision Center ..........................59

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March 18, 19, 20, 2016 | Meadowlands Exposition Center | Secaucus, NJ

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Documents

New Jersey Automotive October 2015