hammer & dolly january 2014
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Official Publication of the Washington Metropolitan Auto Body Association (WMABA)TRANSCRIPT
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How Will Obamacare Affect Your Business? - page 22
January 2014Volume 8, No. 1
$5.95www.wmaba.com
Inside this issue:A Parts Fight in FloridaPlanning for ProgressThe OEM Standard and You
3January 2014
4 January 2014
COVER: ©istockphoto.com/gerenme
THIS PAGE, CLOCKWISE FROM TOP:
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©istockphoto.com/BeholdingEye
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DEPARTMENTS8 Calendar of Events
10 Editor’s MessageJOEL GAUSTEN
12 NewsFlash
20 Technician of theMonth: Santos Godoy
31 Headliners
49 Executive Director’s MessageJORDAN HENDLER
50 Advertisers Index
40PARTSTRADERHITS HOME:WMABA WORKSON A CUREWMABA responds to avery unwelcome guest.
26
Area shops find inspiring ways to keep business alive.BY JOEL GAUSTEN
WMABA FEATUREInto the Future: WMABA MembersPlan for Progress in 2014
COVERSTORY
CONTENTSJANUARY2014
LOCAL NEWSGaithersburg High School Callsfor Industry Support One of Maryland’s finest schools needs your help.
PartsTrader Discussion DrivesWMABA Membership Social Members of the WMABA community explore theirindustry's biggest issue.
NATIONAL NEWSFlorida Shops Fight Back AgainstInsurer MandatesLakeland, FL repairer Ray Gunder leads the charge.
34Our technical writers chime in on a hot issue. BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
TECHNICAL FEATUREThe OEM Standard and You:What Are You Prepared For?
14
18
5January 2014
22A brief rundown of some facts and figures on the Affordable Care Act and how it will impact small businesses moving forward. BY JAMES A. CLEAVER
LEGAL PERSPECTIVEHow Will Obamacare Affect Your Business?
16
8 January 2014
January 7, 2014”ENCYCLOPEDIA OF ESTIMATING PRACTICES“ PRESENTED BY MIKE ANDERSONLKQ/Keystone Training Facility, Linthicum, MDFor more information, visit www.wmaba.com
January 15, 2014SCRS OPEN MEETINGHilton Palm Springs, Palm Springs, CAFor more information, visit www.scrs.com
January 15-17, 2014COLLISION INDUSTRY CONFERENCE (CIC)Hilton Palm Springs, Palm Springs, CAFor more information, visit www.ciclink.com
January 22, 2014WMABA “LOBBY DAY” PRESENTED IN CONJUNCTION WITH ALEXANDER & CLEAVERHistoric Inns of Annapolis, Annapolis, MD For more information,
visit www.wmaba.com
EVENTSCALENDAR OF
www.i-car.com or(800) 422-7872 for info
Subscriptions are a free member benefit to all WMABA members (Washington, DC, MD and VA), and
$34.99 to all others for a one-year subscription.
For more information, please contact WMABA Executive Director Jordan Hendler at (804) 789-9649or via email at [email protected].
SUBSCRIBE TO the official publicationof the Washington Metropolitan AutoBody Association today!
Industry training opportunitiesand don't-miss events.
CLASS LISTINGSJanuary 4, 2014BLUEPRINTING PROCESS & DAMAGE DISCOVERYCriswell Collision Center, Annapolis, MD
OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESSCriswell Collision Center, Annapolis, MD
January 6, 2014BEST PRACTICES FOR HIGH-STRENGTH STEEL REPAIRS Laslie’s Auto Body, Lynchburg, VA
January 7, 2014VEHICLE TECHNOLOGY & TRENDS 2014Coxton’s Gold Team Collision Center, Yorktown, VA
January 9, 2014 WELDED & ADHESIVELY BONDED PANEL REPLACEMENTFrederick Co. Career & Tech, Frederick, MD
January 13, 2014ELECTRIC & ELECTRIC HYBRID VEHICLESLaslie’s Auto Body, Lynchburg, VA
January 14, 2014PLASTIC & COMPOSITE REPAIRBest Western Westminster, Westminster, MD
January 16, 2014HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETYCoxton’s Gold Team Collision Center, Yorktown, VA
January 21, 2014REPLACEMENT OF STEEL UNITIZED STRUCTURESCoxton’s Gold Team Collision Center, Yorktown, VA
January 23, 2014SQUEEZE-TYPE RESISTANCE SPOT WELDINGFrederick Co. Career & Tech, Frederick, MD
January 30, 2014SECTIONING OF STEEL UNITIZED STRUCTURESCoxton’s Gold Team Collision Center, Yorktown, VA
February 13, 2014SUSPENSION SYSTEMSFrederick Co. Career & Tech, Frederick, MD
February 18, 2014WATERBORNE PRODUCTS, SYSTEMS & APPLICATIONBest Western Westminster, Westminster, MD
February 27, 2014STRUCTURAL STRAIGHTENING STEEL
Frederick Co. Career & Tech, Frederick, MD
9January 2014
2014 WMABA OFFICERSPRESIDENT Don Beaver
[email protected] 443-539-4200 ext. 17061VICE PRESIDENT Torchy Chandler
[email protected] 410-309-2242TREASURER Mark Schaech Jr.
[email protected] 410-358-5155SECRETARY John Krauss
[email protected] 703-534-1818IMMEDIATE PAST PRESIDENT Barry Dorn
[email protected] 804-746-3928
BOARD OF DIRECTORSRodney Bolton ([email protected]) 410-969-3100 ext. 250Mark Boudreau ([email protected]) 703-671-2402
Kevin Burt ([email protected]) 301-336-1140Bobby Wright ([email protected]) 434-767-4128
ADMINISTRATIONEXECUTIVE DIRECTORJordan Hendler ([email protected]) 804-789-9649WMABA CORPORATE OFFICEP.O. Box 3157 • Mechanicsville, VA 23116
STAFFPUBLISHER Thomas Greco
MANAGING EDITOR Alicia [email protected]
EDITOR Joel [email protected]
ART DIRECTOR Lea [email protected]
OFFICE MANAGER Sofia [email protected]
ADVERTISING DIRECTOR Norman [email protected] 800-991-1995 Fax 732-280-6601
PUBLISHED BY TGP, Inc.244 Chestnut St., Suite 202Nutley, NJ 07110973-667-6922 FAX 973-235-1963
Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily rep re sen ta tions of TGP Inc. orof the Washington Metropolitan Auto BodyAssociation (WMABA). Copyright © 2014Thomas Greco Publishing, Inc.
experience the concept of insurer-mandated parts procurement – a topic that has takencenter stage in the pages of Hammer & Dolly for nearly two years now – up close and verypersonal. If you’re currently a Select Service shop for State Farm, you may soon findyourself having to say goodbye to your well-established connections with local wholesaledepartments and buy from parts vendors in other states. If you are a dealer with an internalcollision center, it is possible that you will no longer be able to order parts from yourself.And if you are a shop that is vehemently opposed to the concept of DRPs and refused tosign the Select Service contract years ago, don’t think for one second that you’re free andclear from the repercussions of PartsTrader and similar platforms. After all, if the majority ofyour market ends up going in one direction, it won’t be long before you are being told that ithas become customary and your compliance is expected.
If these thoughts make you nervous or willing to accept defeat, never forget thatyou ultimately decide what happens in your industry. If you decide to maintain your DRPrelationship and move forward with your partner’s parts system, that is your choice. Ifyou feel you have lost too much control of your business and want to be free of insurerinfluence, you can walk away. The writing has been on the wall (and in this magazine) formonths; if you haven’t made up your mind on insurer-mandate parts procurement yet, nowis the time. These systems are just around the corner.
Regardless of where you ultimately stand on this issue, make that decision foryourself. In all the years I’ve covered this industry, I’ve never once seen an insurancespokesperson repair a car. These people need you. Use that to your advantage and buildyour business your way. H&D
MAKEYOUR MOVE
Depending on the kind of relationshipsyou have with certain insurance companies,2014 promises to dramatically change howyou conduct business in the collision repairindustry.
With PartsTrader set to arrive in Marylandand Virginia in a few short weeks, WMABAmembers and the greater Washington-Metro-politan automotive community will soon
Joel Gausten(973) 600-9288
MESSAGEEDITOR’S
10 January 2014
©www.istockphoto.com/nobiggie
11January 2014
News and reports from acrossthe nation.
FLASHNEWS
12 January 2014
BASF Brings Chip Foose toAASP/NJ’s NORTHEAST®2014 AutomotiveServicesShow
The Alliance of Automo-tive Service Providers of NJ(AASP/NJ), the state’s largestassociation of collision andmechanical repairers, is de-lighted to announce that BASFis bringing Chip Foose to theassociation’s flagship event,the 2014 NORTHEAST Automotive Services Show on Saturday,March 22. Foose is a hot rod shop owner, designer and fabricatorand star of the reality show Overhaulin’.
Tom Smetanka, general manager of Central Paint in Trenton,NJ, says, “Chip Foose is an automotive icon. We’re honored thatBASF has invited him to attend the show and appear in the BASFbooth from 10am – 2pm on Saturday.”
“We have been working hard to help make our 2014 NORTH-EAST event our best yet, and BASF has really stepped up,” addsAASP/NJ President Jeff McDowell. “A celebrity appearance fromsomeone like Chip Foose during NORTHEAST 2014 will be hugein elevating our show to be the can’t-miss trade event on the eastcoast.”
NORTHEAST 2014 will feature hundreds of exhibitors show-casing the hottest products, newest technology and most valuableindustry information at the Meadowlands Exposition Center March21, 22, 23. Online pre-registration for NORTHEAST 2014 is nowopen – visit www.aaspnjnortheast.com/registration.shtml tosign up for free. For more information on NORTHEAST 2014, visitwww.aaspnjnortheast.com, the NORTHEAST AutomotiveServices Show on Facebook, the NORTHEAST Automotive Serv-ices Show YouTube page (www.youtube.com/user/AASPNJNORTHEAST) or on Twitter @AASPNJNORTHEAST. For moreinformation on AASP/NJ, please visit www.aaspnj.org. H&D
��������������������������Online pre-registration forNORTHEAST 2014 is now open!See you at the show!www.aaspnjnortheast.com
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NORTHEAST 2014 features industry-leading exhibitors,top-notch training and informational updates for the repair community, all centrally located at the Meadowlands Exposition Center in Secaucus, NJ6,000 FREE PARKING spaces available!
NORTHEAST 2014 is proudly presented by
FRIDAY, MARCH 21 5PM-10PMSATURDAY, MARCH 22 10AM-5PMSUNDAY, MARCH 23 10AM-3PM
13January 2014
Featuring one of the most comprehen-sive collision repair education pro-grams in the WMABA region,
Gaithersburg High School in Gaithersburg,MD has provided students with real-worldtechnical and business skills for decades.
Led by veteran instructor Kevin Lester,the Gaithersburg program is NATEF-certifiedin refinishing, structural and non-structural re-pair and serves roughly 60 students a year.Thanks to the program’s long-standing rela-tionships with area body shops and dealer-ships, seniors can gain work experience outin the field while still attending school on half-day schedules.
In addition to Gaithersburg HighSchool’s auto body program, MontgomeryCounty boasts automotive education atThomas Edison High School of Technology(Auto Body/Auto Tech), Damascus HighSchool (Auto Tech) and Seneca Valley HighSchool (Auto Tech). All four schools partici-pate in special used car sales where vehiclesrepaired by students are actually sold to themotoring public.
“A person could donate a car to any ofthe four schools,” Lester explains. “Whenpeople from the public donate cars to us, theywill be evaluated. [My classes] will do thebody work, and then it will go through one ofthe auto body technology programs. Afterthat, all cars go through the Maryland StateInspection. This is a requirement since weare a licensed used car dealership. All of theproceeds from the car sales go to fund theautomotive programs throughout the county.”
Although car donations were plentiful inthe past, Lester says that there is a growing
need for more support from the area collisionrepair industry – especially since vehicleowners are keeping their cars longer thanever before.
“The economy is really poor right now,and people can’t really afford to buy a newcar, so they’re running the car they have intothe ground because they have no otherchoice,” he says.
While the department prefers to receive’96 models and newer, Lester says thatany kind of vehicle donation would beappreciated.
“Anything has educational value,” hesays. “Let’s say an ’86 car gets donated. Mystudents can still take panels off and putthem back on, and we can paint them. AutoTech can use that car for looking at brakes,tire rotations and oil changes. Any car thatgets donated is useful.”
Earlier this year, Lester’s departmentmoved into a new, state-of-the-art facilitythanks to a major school-wide reconstructionproject. As he explains, the impressive newlocation - complete with top-of-the-linewelders, frame machines and prep stations -has made a strong impression on thecommunity.
“Now that we have a new school, a newprogram, updated technology and everythingthat’s standard for a typical body shop, par-ents have walked into this program and actu-ally compared it to the local body shopsthey’ve been to,” he says. “With the certifica-tions and credentials we have, it means a lotmore to parents because their children arebeing taught on the actual equipment andtools that are found out in the industry.”
In addition to the renovated building,Lester’s program was the recent recipient ofa $6,500 tool grant through the Collision Re-pair Education Foundation.
“It’s very exciting for us because it couldnot have come at a better time,” he says. “Weare extremely grateful to I-CAR and theFoundation for their support.”
Despite these positive advancements,the Gaithersburg auto body program is still inneed of support from the auto body commu-nity to ensure that students have enough carsto work on. For information on how you candonate vehicles to the school, please visitwww.autocareers.org.H&D
14 January 2014
Information and updates from WMABA and beyond.
NEWSLOCAL
Gaithersburg High SchoolCalls for Industry Support
It is so important for our local technicalschools to have the support of the industry.Without the proper tooling and cars to workon, these students will graduate lackingimportant skills that these materials wouldhave provided. Make an effort to getinvolved; you could even share yourexpertise as a technician!
- Jordan Hendler
Executive Director’s Thoughts
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15January 2014
The latest from WMABAmembers and supporters.
NEWSNATIONAL
16 January 2014
On December 11, WMABA welcomed its largestcrowd of the year for an in-depth discussion oninsurer parts procurement mandates, and
specifically State Farm’s controversial PartsTrader pro-gram and its possible effects on the Washington-Metro-politan collision repair industry. With PartsTrader set toappear in Maryland and Virginia by early February,WMABA Executive Director Jordan Hendler and Outgo-ing President Barry Dorn presented an in-depthoverview of how the WMABA community could be im-pacted, as well as some items to consider. The presen-tation, held at McCormick & Schmick's in Oxon Hill, MD,was offered as part of the association’s Annual Meeting& Holiday Membership Social.
Hendler began her update by stressing thatWMABA’s well-publicized stand against insurers man-dating a particular process or vendor is violated by StateFarm’s mandate that Select Service shops use onlyPartsTrader for their parts procurement needs.
PartsTrader Discussion DrivesWMABA Membership Social
WMABA Executive Director Jordan Hendler updated the packed room on State Farm's upcoming PartsTrader program in Virginia and Maryland.
Clockwise from top left: LongtimeWMABA member Ed Vallejos called forways to increase membership; WMABABoard member Mark Boudreau was anactive participant in the PartsTraderdiscussion; WMABA member ChrisTaylor discussed leaving his agreementwith State Farm.
17January 2014
“We are not against electronic parts ordering at all,” she said.“WMABA does not promote a particular position other than we areadamantly against an insurer mandating one particular vendor for any-thing…An insurer mandating a particular parts vendor has the potentialto change the entire landscape of our industry.”
For several months, WMABA has remained at the forefront of thePartsTrader debate, regularly appearing at national events and meetingwith other industry associations to better inform repairers and vendors ofthe issue. Hendler shared her frustration in convincing some entities ofthe inherent dangers of the program for repairers, parts vendors andconsumers.
“We’ve been after this for two years,” she shared. “My first call wasto the dealers’ associations. At that time, the response was, ‘Well,they’re just testing it, so we’re just going to wait it out and see what hap-pens.’ So while we were trying to do everything we could through ad-vanced action, they were hesitant to act.”
Despite ongoing public relations attempts by PartsTrader to portraytheir system as a success in the US, Dorn cautioned that the programappears to have benefitted only a very small number of repairers.
“[State Farm and PartsTrader] do have a couple of shops that actu-ally love it,” he said. “There’s always a fit for everything, but these aretypically very small shops who weren’t monitoring their gross profit ortheir mark-up on parts. Therefore, [PartsTrader] does it for them…Youwill always find these extreme cases.”
WMABA Board member Mark Boudreau urged his fellow shopowners in attendance to contact their dealers and parts suppliers togain their support in pushing back against insurer-mandated partsprocurement.
“They have the most control over this situation because there’sgoing to be a lot of fear on the shops’ side,” he said. “It’s going to be
hard for a shop on the program to say no.”“The parts vendors have the key,” Hendler added. Longtime WMABA member Edward Vallejos (Professional Collision
Centers) encouraged WMABA shops to reach out to former members ofthe association and ask them to re-join and add their voices to the fight.
“We need the support and we need the dollars coming in,” he of-fered. “Money is power.”
Member shop owner Chris Taylor (Taylor’s Auto Body) shared thathe retained an attorney once he received word from State Farm that heonly had two weeks to decide whether or not his business would usePartsTrader. Taylor’s attorney’s lengthy review of the Select Service con-tract offered the shop owner a new perspective on his relationship withthe nation’s largest auto insurer.
“[The agreement] is written really well,” he said. “They always havethe out of, ‘Well, you have a choice. You don’t have to sign.’ We didn’tsign.”
Hendler strongly encouraged members to seek out their local sena-tors and delegates and inform them of the issues surrounding insurermandates, especially as WMABA continues to promote anti-mandatelegislation in Annapolis and beyond (see cover story, page 40).
“When the association puts in legislation, [legislators] want to talk toyou,” she said. “You’re the people who will affect how they vote when abill comes to their committee. I can’t stress to you how important that is.”
As WMABA’s campaign to address PartsTrader and similar pro-grams moves into 2014, Hendler assures members that they can contactthe association if they wish to voice a problem or concern with an insurerin a confidential manner.
“You have the opportunity to go through us,” she said. “I can askthe questions [of insurers] that you don’t want to ask because you don’twant the repercussions.” H&D
New BoardAnnouncedPrior to the PartsTrader discussion,Executive Director Jordan Hendlerintroduced the 2014 WMABA Boardof Directors:
President – Don Beaver, Vice President – Torchy Chandler,Treasurer – Mark Schaech, Jr.,Secretary – John Krauss, Immediate Past President – Barry Dorn and Directors – MarkBoudreau, Bobby Wright, Kevin Burt and Rodney Bolton.
For more information on associationactivities and upcoming events,please visit www.wmaba.com. The 2014 WMABA Board of Directors. Left to Right: Don Beaver (President), Bobby Wright (Director), John
Krauss (Secretary), Mark Boudreau (Director), Torchy Chandler (Vice President), Mark Schaech Jr. (Treasurer),Kevin Burt (Director) and Barry Dorn (Immediate Past President). Not pictured: Rodney Bolton
While many shop owners were gear-ing up for the Thanksgiving holiday,Lakeland, FL-based repair profes-
sional Ray Gunder (Gunder’s Auto Center)was spending his time taking on a corporategiant.
On November 20, Gunder moderated ameeting of nearly 100 collision repairers, sup-pliers and vendors who gathered in Lakelandto discuss PartsTrader and short-pay litiga-tion. Guests included Gunder’s attorneyBrent Geohagan, John Mosley of the Missis-sippi Collision Repair Association andMosley’s attorney, John Eaves, Jr. The gath-ering provided these speakers an opportunityto share their efforts to stop implementationof PartsTrader in their respective states.
As Gunder tells Hammer & Dolly, thepurpose behind the meeting was to shine agreater spotlight on how various markets areaddressing the issue of insurer-mandatedparts procurement.
“Enough is enough,” he says. “StateFarm has been intruding into our businessand controlling and setting prices for yearsand years. We’re like a bunch of dogs whohave been pushed into a financial corner andare being poked with a stick until we have noother choice but to come out and fight back. Ibelieve that PartsTrader is the final straw.The parts profit is a big part of how we keepour doors open. Now that State Farm is com-ing in and wanting to shave that down whoknows how far, it’s time to stand up andfight.”
Mosley, who recently joined approxi-mately 30 body shops and other industry par-ties in filing an injunction against PartsTraderin Mississippi (“The End of Choice?” H&D,October 2013), used the meeting as achance to share information regarding the re-cent CIC meeting at SEMA in Las Vegas anddiscussions with State Farm’s George Avery.
“The simple and clear message was, ifyou chose not to participate in PartsTrader,
State Farm will immediately find you irrele-vant,” he said. “The message was clear thatState Farm doesn’t care if the collision repairindustry likes PartsTrader or not; they willcontinue to implement the program regard-less!”
“We’re in Florida with the purpose of fil-ing an injunction to stop PartsTrader,” addedEaves during the discussion. “Our ultimategoal is to defeat this mandated parts procure-ment program and State Farm’s intrusion intothe collision repair industry in Florida andacross the country.
“This issue isn’t just about you as indi-vidual repairers,” he added. “This issue isabout your responsibility to the consumersaround the nation who are relying upon you,the repair professionals, to look out for and tosafeguard their best interests regarding theirpersonal safety and economic wellbeing.”
According to a press release issued byBarrett Smith (Auto Damage Experts), Eaveshas talked to more than 200 shops in 23 dif-ferent states, urging them to join with vendorsin combatting the insurer’s intrusion.
Additionally, Eaves and Mosley spokeabout repairers coming together and filing liti-gation for short-pays on performed repairs.Mosley stated that their research has shownthat on average, each repair order/invoicewas shorted $625 to $700 on a $3,500 repairfor procedures including color-sand and pol-ish, fill-block and prime, test driving andcleaning the car for delivery. They have a listof more than 60 necessary and essential pro-cedures that are not paid by numerous insur-ers.
“This is about taking back the moniesthat insurers have taken from you for proce-dures and materials the repair required, thatyou the repairers have provided, the con-sumer received and of which the insurer hasfailed to pay for!” Eaves stated. “That isconsidered ‘unjust enrichment’ to the in-surers, and our legal team is going to help
participating shops get back the moniesthey were deprived of…and it won’t costthe shop one penny up front! All it takes isfor the repairer to let us know they wish tobe included in this effort, and we’ll take itfrom there. There is a time limit, so repair-ers who wish to be included need to notifyus at their earliest [convenience].”
On November 23, the PartsTrader andshort-pay discussions moved to Chicago,where a gathering similar to the one onFlorida was hosted by the Alliance of Auto-motive Service Providers of Illinois (AASP-IL). Not surprisingly, Gunder says that themood in both meetings rooms was essentiallythe same.
“People are looking for answers rightnow,” he says. “I think the attendees at bothmeetings heard and perceived that there ishope. The people I spoke to were genuinelyexcited that they’re not going to have to takeit this time, and that there is an entity outthere trying to do something.”
For more information on the short-paylegal campaign, repairers are encouraged tocontact John Eaves, Jr. at (601) 355-7961 orvia email at [email protected] national online petition against PartsTrader(created by the Indiana Auto Body Associa-tion) is available at www.change.org/petitions/dear-state-and-federal-attorney-generals-legislators-and-the-federal-trade-commission-stop-insurer-mandated-programs.H&D
Florida Shops Fight BackAgainst Insurer Mandates
Information and updatesfrom WMABA and beyond.
NEWSNATIONAL
18 January 2014
It is good to keep abreast of other areaactivities that could potentially change howour region addresses issues betweenrepairers and insurers. The progression oftheir “fight” could present alternatives foruse in different areas.
- Jordan Hendler
Executive Director’s Thoughts
19January 2014
Hammer & Dolly chats with the WMABAcommunity’s best and brightest.
20 January 2014
Easily one of Virginia’s most promi-nent auto body operations, TysonsCorner Collision Repair Center in Vi-
enna has the equipment and expertise nec-essary to service an average of 250 vehicleseach month. Currently serving an extensivecustomer base that includes five Penskedealers (two Mercedes stores, two Audistores and a Porsche store) and a neighbor-ing Aston Martin/Bentley dealer, the centerhas built a solid reputation. The company’sremarkable success in the collision repairfield is made possible thanks to the dedica-tion and professionalism of people like long-time technician Santos Godoy.
Born in Guatemala, Godoy has spentthe last 10 of his 11 years in the industrywith Tysons. Originally a painter with the fa-cility for six years, he later developed astrong interest in collision repair that led himto become one of the 14-person tech team’smost valued members.
“Santos brings an exemplary perform-ance in terms of quality and timeliness,” of-fers Tysons Corner Collision CenterManager Tim Pfeifle. “He goes the extra mileto make sure that cars are fixed properly. Hehas taken all of the extra training that heneeds in order to get the job done. He’s re-ally gone way out of his way to make surethat everything coming out of the shop isperfect.”
Godoy’s talents on the shop floor areespecially appreciated during those timeswhen team leader Chris Browning is out ofthe shop attending industry training.
“Any time that Chris is gone, he juststeps right up and takes over and runs the
team,” Pfeifle says. “He does a great job fill-ing in the pieces and keeping me up tospeed on the disposition of the cars, and heknows everything off the top of his head.”
A lifelong car enthusiast, Godoy joinedthe automotive repair industry immediatelyafter graduating from high school in 2002.
“When I was a child, my dream was tofix cars - and I did it,” he says.
As a manufacturer-certified repair busi-ness, Tysons Corner Collision Center pridesitself on providing factory-approved andtrained technicians, original equipmentparts and the highest quality materials andworkmanship. Of course, this strong focuson implementing top-grade technology and
providing specialized repairs has earned thefacility some considerable recognition. As ofthis writing, the center was one of only nineElite Mercedes-Benz-Certified facilities inthe United States. Godoy helps maintain thishigh standard of excellence by regularly at-tending I-CAR courses and other high-endtraining. In fact, he has the great distinctionof being certified in Audi aluminum welding.Not surprisingly, he enjoys working with allof the state-of-the-art equipment available atTysons.
“We have everything we need here,” hesays. “I’m happy to work on any car thatneeds to be fixed, and I’m hoping to be herefor a long time.”
Santos Godoy
Santos Godoy is a valued member of theTysons Corner Collision Center team.
TECHNICIAN OFTHE MONTH:
21January 2014
With so much variety coming through thedoor at Tysons Corner, Godoy is pleased tohave an opportunity to showcase his skills onso many different vehicles. Whether it’s aPorsche, a Mercedes, an Audi or anything elsethat crosses his path, that vehicle’s owner canrest assured that his or her vehicle is in theright hands.
Away from work, the celebrated repairpro enjoys spending time with his belovedfamily. Three months ago, Godoy joined hiswife Roxanna and 10-year-old daughter Jo-hanna in welcoming baby Gabriel into theworld. It is clear when talking to him that he istruly proud to have the skills necessary to pro-vide for his loved ones.
“I always want to do better for my family,”he says. “It’s important that I work hard forthem.”
As for the future, Godoy plans to pursueeven more training in 2014. Just as he is com-mitted to gaining more knowledge, he encour-ages today’s collision repair students to makethe absolute most of their experiences on andoff the shop floor.
“If they think they would be good at this,they need to try because this is the start oftheir lives,” he shares. “You need to makeyourself happy.”
With his generous nature and determinedspirit, Santos Godoy truly exemplifies the levelof professional and personal satisfaction thatone can derive from this trade. With a long ca-reer still ahead of him, he is sure to be an in-spiration to his peers for years to come.
“He sets a shining example for everyoneelse to live up to,” Pfeifle says. “I guaranteeyou that.” H&D
If you would like to nominate someone asTechnician of the Month, please contactHammer & Dolly Editor Joel Gausten [email protected].
What’s happening at the State House, inyour industry and everywhere in between.
PERSPECTIVELEGAL
22 January 2014
While we have all heard about the well-documented prob-lems following the rollout of the Affordable Care Act/“Oba-macare,” as well as the wild and unsubstantiated claims of
its eventual effect by its supporters and detractors, small businesseswill be forced to come to grips with its mandates soon. The law re-quires that all individuals – including small business owners – musthave health insurance effective January 1, 2014.
According to studies, small businesses offering health care fortheir workers have trended downward in recent years. The reason forthis trend is simple – rising costs.
Since 2010, and prior to Obamacare, businesses with fewerthan 25 full-time equivalent employees and average salaries of$25,000 or less were eligible for a tax credit if the employer paid forat least one-half of the cost of health insurance. Employers withfewer than 10 employees and average salaries of $25,000 or lesswere eligible for the full credit. Twenty-five employees and/or$50,000 in average salary disqualified the employee for any credit atall.
Starting in 2014, the state-based Small Business Health Op-tions Program Exchange will be open to small businesses and willraise the credit to 50 percent of your contributions. The concern isthat the credit is available for a maximum of five years, and will de-crease to two years once the exchanges are up and running. Whileno business is mandated to provide health insurance, only the small-est businesses will be able to avoid penalties if they do not offerhealth insurance.
What are the penalties? If you employ 50 full-time employees,the penalty is $2,000 for each full-time employee in excess of 50 full-time employees. Employers receive no penalties if part-time employ-ees are not offered health insurance.
Before Obamacare, employers had no requirements on whatcoverage businesses could provide to their employees. The lawmandates “minimum essential” and “affordable” coverage: “Minimumessential coverage” means covering 60 percent of the actuarial valueof the cost of the benefits. “Affordable” means that the premium forthe coverage of the individual employee cannot exceed 9.5 percentof the employee’s household income.
If the coverage you offer is unaffordable, qualifying employeescan get subsidized coverage through a tax credit on the state ex-changes. The employer must pay the lesser of $3,000 per subsidizedfull-time employee or the $2,000 per employee penalty over the first30 employees.
Of course, the preceding merely scratches the surface of thetrue impact the Affordable Care Act will have on small businesses inthe near and distant future. As with any laws or regulations makingtheir way into your marketplace, knowledge is the key to being asprepared as possible. If you are a small business owner, the Afford-able Care Act will certainly affect your employees and the companyitself in some way. Until that day comes, the best strategy is to bearmed with as much information as possible. This will save theheadache of scrambling for answers when it’s too late, and will putyou ahead of the game when it comes time to make importantbusiness decisions. H&D
James A. Cleaver is the senior partner ofthe Law Offices of Alexander & Cleaver.Jim co-founded the firm in 1984 with GaryR. Alexander. He works primarily in the fieldof civil litigation, heading up the firm’s injurypractice. In that role, Jim is the firm’s pri-mary negotiator and litigator in personal in-jury cases, using his vast experience andknowledge acquired over parts of the pastfive decades to achieve results for clients.Jim has been designated a Super Lawyerin personal injury cases, was named one of Maryland’s top triallawyers and was selected by the prestigious Million Dollar AdvocacyForum. He can be contacted at (301) 292-3300.
How Will ObamacareAffect Your Business?
BY JAMES A. CLEAVER,Senior Partner, The Law Offices
of Alexander & Cleaver
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Perspectives from shops and other auto professionalsin the Washington-Metropolitan region.
FEATUREWMABA
26 January 2014
As a quick flip through any of the last 12 issues of Hammer &Dolly will prove, conditions in the auto body industry havenever been as intense as they were in 2013. From the ongo-
ing debate over insurer-mandated parts procurement to questionsover the possible implementation of universal repair standards,
the previous year didn’t see a single dull moment. As the industrymoves into 2014, WMABA members are seeking new ways to remainprofitable and competitive – and succeeding in intriguing ways.
Since starting out in 1994 with a mere $84,000 in sales from herfirst six months in business, Maryland shop owner Kim Parson (Auto-motive Collision Technologies) has never experienced a year withoutgrowth. Nineteen years and five additional shops later, this true indus-try entrepreneur exceeded her $14 million annual sales goal in 2013as an MSO and plans to open a seventh location during the first quar-ter of 2014. Despite the growing presence of consolidators in hermarket, Parson thrived as an independent this year by focusing ongrowing her businesses through local media, social networking andonline marketing.
“We’ve realized that we must be differentiated; we’re not surethat we can be differentiated by insurance companies as much as wecan by the fact that we are in the community,” she explains. “This iswhere we live, this is where we work and this is where we’re invested.I expect my [marketing] campaign moving forward to be about care. Iwant the father to send his college kid’s car to me because he knowsI have the equipment, tenure, technology and training to make thatcar safe.”
With her 20th year in business just around the corner, Parsonplans to devote 2014 to incorporating new technologies into hershops. These advancements include the implementation of theASTech scanning system, which she was first introduced to at MikeAndersons’s WMABA-sponsored estimating class last summer(“Knowledge = Profit,” H&D, October 2013). In her mind, the addition
of the ASTech system is in line with her commitment to providing saferepairs for her customers.
“The codes behind the dashes now are silent killers,” she offers.“The dashboard can only recognize certain codes; there are codesthat won’t even light a warning on the dash. If a repairer is not awareof that by pulling and fixing those codes, they can potentially send acar out that doesn’t have its traction control set. If that isn’t set and re-programmed on the new vehicle, the rollover mechanism will notwork.”
Parson adds that she encourages any independents needinghelp or advice going forward in strengthening their hold on the mar-ketplace to contact her.
“My management team and I will be willing and ready to helpthose folks keep the stronghold on their business that they so rightlydeserve,” she says. “As members of both WMABA and the Mid-At-lantic Collision Repair Organization [MACRO], we will be working onstrengthening the independent body shops as a whole. Integrity isbuilt upon tenure, and the right to repair is theirs.”
Of course, Parson is not the only WMABA member looking toembrace new technologies. As manager of a high-volume collision re-pair facility focused on manufacturer certification related to luxurylines like Audi, Acura, Tesla and Porsche, Kevin Marvin of CriswellCollision Center in Annapolis finds technology and new repairprocesses exciting. However, the center’s daily struggle with the in-surance industry is not so exciting.
“It never ceases to amaze me that the insurance industry is will-ing to insure [and collect premiums for] everything and anything, butwhen the need arises for a policyholder to have his or her vehicle re-paired, the insurer feels the need to manipulate repair processes andlabor times,” he says. “It seems simple to me; if you don’t intend topay what it costs to repair a vehicle properly, don’t insure the vehicle!”
Manufacturer certification represents a significant investment for
INTO THE FUTURE:WMABA Members Plan forProgress in 2014 by Joel Gausten
The collision repair industry is far from boring.
27January 2014
a repair facility. The costs of tools, equipment and training can be astro-nomical to say the least. The time commitment and dedication put forthby Criswell’s team of technicians is enormous as well. However, theseinvestments are becoming increasingly necessary for enterprises likeCriswell to survive.
“I believe that shops lacking the resources to partner with one ormore manufacturers in today’s collision repair environment will findthemselves in trouble,” Marvin says. “Vehicle repairs are becoming moreand more manufacturer-specific. If you don’t have access to the specialtools and information needed to repair the vehicles properly, you’re ask-ing for trouble. Aluminum repair, for example, is so completely differentthan conventional bodywork. If you don’t have the training to properlymake those repairs, it can have devastating results. The governmentand insurance entities pushed hard for the technology that manufactur-ers use to build vehicles today. Airbag systems, anti-lock brakes andlighter, stronger, more fuel-efficient construction are all wonderful, life-saving pieces of technology. All of that wonderful stuff costs big moneyto repair or replace. These agencies have to be careful what they askfor, because sometimes they get it! Now they’ve got it, the note is dueand nobody wants to pay it.”
The Criswell organization has invested a lot of money in their man-ufacturer partnerships. As of this writing, they have a tech completing hissecond week of training in Fremont, CA at the Tesla Academy. Accordingto Marvin, such an endeavor is far from cheap.
“That’s two weeks of lost production in our shop that we would nor-mally expect to get from that tech,” he explains. “We have to pay him,pay his travel expenses and pay for the training. When we prepare anestimate for these special cars, we consider the costs that went intobeing able to repair them. In many cases, there is also additional laborassociated with the processes involved in how they are required to berepaired. The insurance companies don’t want to hear of it. They want toapply the same old template of their already broken estimatingprocesses. It’s a constant battle to simply get what’s necessary to repaira client’s vehicle the way the manufacturer requires it to be repaired.”
Audi has been very proactive in making information and trainingavailable to members of the insurance industry. Some of those membersare receptive, while others choose to purposely keep themselves in thedark.
As Marvin says, “If insurers ‘don’t know what they don’t know,’ theyput themselves in an ‘ignorance is bliss’ position, thereby avoiding orpostponing the need to address the matter entirely. Nobody on the insur-ance side wants to be the first one to set a precedent for properly repair-ing these vehicles. When you finally are successful at getting paid, itusually means a one-line, dollar-amount ‘concession’ at the bottom oftheir estimate. This practice gets the shop paid without the insurancecarrier admitting or documenting the proper rates or processes. At thispoint, we will take it any way we can get it.
“Criswell Collision Center’s future plans include a continued in-volvement with and participation in manufacturer certification programs,”he continues. “The path that the insurance companies have channeledour industry onto is financially unsustainable from whatever angle youlook at it. Our solution has been to balance our portfolio of repairsources. I think shops that primarily rely on insurance partners to sendthem work will find themselves in a bind very soon. We value our insur-ance partners, but we value our customers more. Manufacturer pro-grams allow shops access to information and support necessary toensure customers get back into a vehicle that has been repaired the waythe company that built it wants it repaired. The right way - not the cheap-est way.”
While there were plenty of issues and obstacles to keep repairersawake at night in 2013, the perspectives shared in this feature offerhope for a more prosperous future. By embracing new technologies andtaking full advantages of the educational opportunities presented byWMABA and others, shops will be in a better position to move forwardthrough what is sure to be another challenging – but potentially veryrewarding – 12 months in a never-predictable industry. H&D
There is no negotiating on sacrificing quality and safety. Knowing poten-tial hidden electrical issues and keeping abreast of advancing technolo-gies takes a commitment to both training and equipment. Those things,while expensive, are nearly impossible to avoid today and into the fu-ture. Something to consider when determining how to incorporate theseelements into your business.
- Jordan Hendler
Executive Director’s Thoughts
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HEADLINERSThe latest news and notes.
Chrysler Group LLC has given its ap-proval for use of PPG’s innovative clearcoatproducts for warranty repairs on all Chryslervehicles. The approved PPG clearcoats areENVIROBASE High Performance EC800Ultra Fast 2.1 Clearcoat, DELTRON DC2000Ultra Velocity Clearcoat and NEXA AUTO-COLOR P190-6800 HS Express Clearcoat.
Extensive testing has affirmed the threeclearcoats’ key attributes: Quick drying, noflash time between coats, no baking and theability to polish within approximately 30 min-utes of application. With their reduced cycletimes, the clearcoats can improve productiv-ity, increase efficiency and cut energy costswhile still delivering outstanding gloss, ap-pearance and durability.
“We are very satisfied with the perform-ance of these premium PPG clearcoats andvery comfortable giving our approval for theiruse,” said a Chrysler spokesperson. “Theclearcoats are user-friendly, which our deal-ers’ collision center staffs will welcome, andthe end result — an exceptional appearance— is something our customers will appreci-ate. PPG is helping us provide the high-quality finishes we expect our vehicles todisplay.”
EC800 Ultra Fast 2.1 Clearcoat is partof the PPG ENVIROBASE High Perform-ance waterborne system and is also a 2.1VOC air-dry clearcoat. P190-6800 HS Ex-press Clearcoat is a 2.1 VOC air dry-compli-ant clearcoat designed for use with the PPGAQUABASE Plus waterborne refinish sys-tem. DELTRON DC2000 Ultra VelocityClearcoat is a versatile clearcoat suitable foruse with the DELTRON DBC, GLOBAL RE-FINISH SYSTEM and ENVIROBASE HighPerformance basecoats.
For more information about these andother PPG products, call (800) 647-6050 orvisit the PPG Automotive Refinish website atwww.ppgrefinish.com. H&D
PPG RECEIVES CLEARCOAT APPROVALSFROM CHRYSLER
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33January 2014
Nuts and bolts, tips and tricksfrom our resident industry experts.
FEATURETECHNICAL
34 January 2014
BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
THE OEM STANDARD
AND YOU:WHAT ARE YOU PREPARED FOR?
For the past three to four years, the concept of formal industry-based repair standards has been a hot topic for many. We have writ-ten two articles on this subject, and to sum it up in a few words, webelieve that the concept is ridiculous. Why? By and large, the originalequipment manufacturers (OEMs) provide repair standards for theirvehicles. The work has already been done by the people who madethe vehicle you are trying to repair.
We have also written articles about the definitions and meaningof words including, but not limited to: Endorse, evidence, guide, man-ual, opinion, procedure, prohibited, proof, recommendation, require-ment, standard and suggestion. We have also explained that, in ourexperience, an OEM procedure trumps an industry-based procedureor practice. In a court of law, the judge only wants to know what theOEM says, PERIOD! Now, if you have read our articles, you alreadyknow that some OEMs do not produce standards. These includeHyundai and Kia, who do not publish collision repair information in theUSA. Maybe a discussion about repair standards for these OEs maybe necessary, but all the other OEMs do provide collision repair infor-mation. Although we believe there is a place for the development ofrepair standards for the OEMs, this article is about some of thechanges in the repair procedures from the OEMs that have setstandards.
Aluminum ConstructionWe have written a couple of articles about vehicle design and
construction, but we predicted back in 2004 that the all-new 2004BMW E60/E61 (5/6 Series) would be the future of automobile design.We made this prediction based on rumors about aluminum-intensivevehicles such as the Acura NSX, Audi A8, Honda Insight and JaguarXJ in 2004. Well, skip forward 10 years, and the Audi A8 and JaguarXJ are still aluminum-intensive vehicles, but OEMs have added the
Audi R8, Jaguar XK, Land Rover Range Rover, Mercedes-Benz SLS(197), Tesla and almost every high-end exotic super car to the list ofaluminum intensive construction. Conversely, over the past 10 years,the OEMs have produced aluminum-steel vehicles, commonly re-ferred to as hybrid-construction vehicles. These vehicles included, butwere not limited to: Audi TT, Mercedes-Benz CL (216) and S (221 and222), Porsche 911 (991) and Panamera (970). Most late-model Audis,BMWs and even the Cadillac ATS have steel construction with alu-minum strut towers. Rumor has it that Ford’s all new F-150 will havean aluminum-intensive body. Repairs to aluminum-intensive vehiclesrequire a lot of investment, training, specific welding certifications(generally to an ISO standard), specific tools, riveting and structuralrepair equipment and specific materials. Some programs have partsrestrictions and (of course) dealer sponsorship is generally required.Even the aluminum strut tower vehicles require specific adhesives,rivets and tools for replacement of the tower. Repairs to these vehi-cles are not for every repair facility to attempt.
Welding Equipment and RequirementsWe mentioned aluminum vehicles and welding in the previous
section. There are specific Metal Inert Gas (MIG) welders required toweld aluminum-intensive vehicles. What about welding steel vehi-cles? Most OEMs prefer Squeeze Type Resistance Spot Welds(STRSW) to Gas Metal Arc Welding (GMAW)/Metal Active Gas(MAG) Welding when welding on flanges. Many OEMs requireSTRSW only; others have requirements for rivets where the STRSWarms cannot access both sides of the weld area. More recently,OEMs are now requiring the use of Silicone Bronze/MIG Brazing tosectioning joints, either open butt or lap on fillet welds, on outer bodypanels and some very select inner structural reinforcement panels.OEs like VW, Mercedes-Benz, Honda and Toyota have repair
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procedures that require silicone-bronze. Only a few OEM Collision Re-pair Programs require a specific MIG Brazing welder, while most givesuggestions of which machine to purchase. The cost of a Program Alu-minum MIG welder can exceed $15,000. STRSW machines generallyrun $20,000 or better for an approved one, but MIG Brazing machinesare generally inexpensive and should run $500 to $1,000. MAG, MIGand silicone bronze welding all require different techniques and lots ofpractice. Of course, attending a training course is essential. Many tech-nicians are surprised when they are tested during training and theirwelds fail. This is generally due to their technique, body position, eyesight, welding mask, incorrect training and/or a combination of theses.
Structural Repair EquipmentWe have written numerous articles on structural repair techniques,
anchoring and equipment, but there have been some changes. Thethree most approved structural repair equipment makers are Celette,Car-O-Liner and CarBench (the forth is Global Jig and the fifth isSpanesi). These types of equipment are bench-type systems that usespecific fixture jigs (Celette) or universal jigs (the others) to anchor thevehicle to the bench by affixing the anchors to mounting locations andnot to the rocker panel flanges. At one time, these types of structural re-pair equipment were pretty much for the Germans and exotics. Well,this is not the case anymore. Chrysler now requires six- to eight-pointanchoring on some of their vehicles. Chrysler has stated that this is re-quired due to the rocker panel design and that they cannot support theapplied forces.
ElectronicsWith all the creature comforts and automatic safety features built
into today’s vehicles, it is amazing that there are not more problems withtheir operation. Collision repairers must understand two important thingsabout today’s electronically advanced vehicles.
1. Most vehicles will not set a Malfunction Indictor Lamp (MIL) for every single fault. In many cases, there can be multiple Diagnostic Trouble Codes (DTCs) with no MILs present. This is why it is imperative that repair facilities purchase code readers to know what may be wrong with a vehicle system.
2. Most collision-damaged vehicles will need a trip to thedealer for a multitude of reasons. Most dealers will have theequipment not only to reset systems, but also to initialize cer-tain systems. There are scan tools available, such as theASTech tool, that directly link over the internet to an OEMscan tool for a cost. It’s worth it to check out these optionsavailable to an independent facility, so as to try and alleviatethat trip to the dealer.
Some OEMs require the parking sensors to be re-aimed if the fas-cia was removed from the vehicle. Most OEMs will require the Passen-ger Seat Weight Sensor be re-weighed after any collision event.
Back-up cameras really assist with backing and parking procedures, butsome OEMs require the cameras to be re-aimed at the dealer due to thesteering angle assembly. There are multiple OEMs with electronic assiststeering systems that require specialized wheel alignments, and most ofthese vehicles are equipped with a ride height control system, which re-quires setting the alignment at multiple heights. Lane departure systemsare equipped in a variety of vehicles, from the economy type all the wayup to the luxury sedans to exotics, and this system may work with theparking assist system or have its own radar/sensor that requires adjust-ment and setting after a collision event.
The Future is Now?As we mentioned above, the all-new Ford F-150 will be released
with multiple aluminum panels. We predict that in the next two to threeyears, more and more high-volume vehicles will be released with morelightweight substrates to combat the CAFÉ rules. BMW has already re-leased the all-new i3, which is a carbon fiber monocoque structure.Lamborghini already produces a carbon fiber center tub, but we thinkthere might be a slight price difference and production amount betweenthese two vehicles.
Training, specialized equipment and investments will be requiredfor all who want to stay in business. We see a lot of complaining andfighting going on in the industry today, and we understand the reasons,but what we don’t see is a lot of training, equipment upgrades and in-vestment in the facilities. We cannot tell you how many times we'vebeen to a shop and said, “Wow, this shop is cool. This is the most ad-vanced shop we have ever seen - if it was 1980. This is like steppingthrough a time machine. This place belongs in the Smithsonian Insti-tute!” DON’T BE THAT SHOP!
Feel free to contact us if you have any questions.
Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr.P&L Consultants works with collision repair shops on estimating, produc-tion and proper repair procedures. P&L conducts repair workshops onMIG & Resistance Welding, Measuring for Estimating and Advanced Esti-mating Skills. P&L also conducts investigations for insurers and repairshops for improper repairs, collision repairability and estimating issues.P&L can be reached by contacting Larry at (718) 891-4018 (office), (917)860-3588 (cell), (718) 646-2733 (fax) or via email at [email protected]. The P&L website is www.PnLEstimology.com.
Jeff Lange, PE is president of Lange Technical Services, Ltd. of DeerPark, NY (www.LangeTech.net). Jeff is a Licensed New York State Pro-fessional Engineer who specializes in investigating vehicle and compo-nent failures. Lange Technical Services, Ltd. is an investigativeengineering firm performing forensic vehicle examinations and analysis foraccident reconstruction, products liability and insurance issues. Jeff canbe reached at (631) 667-6128 or by email at [email protected]. H&D
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News, updates, issues and concerns of the industry.
40 January 2014
STORYCOVER
They’re unpopular, controversial and viewed by many asthe potential downfall of the collision repair industry. And nowthey’re here.
For Maryland and Virginia shops currently involved in the StateFarm Select Service program, the start of the New Year has meantbracing themselves for the arrival of PartsTrader, just one of manyinsurer-mandated parts procurement systems currently underwayacross the country. Despite nearly two years’ worth of protests byWMABA and a slew of other industry associations, State Farm con-tinues in its mission to increase their visibility and involvement in theparts-ordering process at their participating DRP shops – and influ-ence dealers and alternative parts suppliers to “compete” for busi-ness through this bidding system. Ultimately, State Farm is lookingto manipulate every aspect of the parts supply chain to operate inthe way that best suits their needs, regardless of what suppliersand end-users want, like or need. Not surprisingly, the news thatPartsTrader will soon infiltrate the Mid-Atlantic market has ledWMABA Executive Director Jordan Hendler to field more calls from
association members than at any other time in her career. “I have yet to talk to a shop who is using PartsTrader that thinks
this has improved their business,” she says. “It doesn’t get any sim-pler than that.”
By the time this issue of Hammer & Dolly is in your hands,WMABA will be hard at work promoting a possible antidote to thePartsTrader dilemma: Key legislation that will make these types ofprogram requirements illegal in Maryland. WMABA hopes to proposesimilar legislation in Virginia by the 2015 session. The Maryland billrecently filed by the association would prohibit an adjuster, appraiser,insurance producer or employee of an insurer from requiring a motorvehicle repair facility to use a specific vendor or process for the pro-curement of parts or other materials necessary for the repair of amotor vehicle.
The push in Annapolis is the latest in a series of activities thatWMABA has undertaken over the last several months to bring much-needed attention – and possible legal remedies – to the parts pro-curement debate. Like several other industry representatives,
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Hendler has spent the better part of two years representing WMABA’sconcerns at CIC and other industry events that State Farm representa-tives also attend. Considering how vocal the association has been onthis issue, wouldn’t it make sense for State Farm — perhaps even in-surer spokesperson and current CIC Chairman George Avery — to en-gage Hendler and other WMABA reps and discuss these issues out inthe open? Of course it would…which naturally means it hasn’t hap-pened.
“Overall, State Farm isn’t talking anymore,” Hendler says. “Moreimportantly, I don’t feel as though we’re being handed the truth. Wehear the same information time and again across the public forums,which is mostly corporate rhetoric and regurgitated material. I thinkthey would find far less ridicule if they were to speak candidly and -more importantly - honestly with their ‘partner’ shops about how tomake the system better and more efficient and turn it into somethingthat provides value to both sides of the table. In my opinion, they needto give up the strong-arm tactics before they obliterate the decent rep-utation they had with repair facilities, or find themselves in more costlypositions than the money they tried to save.”
Dealers Pay to PlayJust as the holiday season began to add its usual amount of
stress for automotive business owners across the country, PartsTraderannounced its initial fee structure for participating dealerships. Effec-tive February 1, 2014, the minimum rate for parts suppliers to usePartsTrader will be $19 per month. According to a company statement,“based on a specific level of sustained ordering activity, a supplier’sorder volume through PartsTrader could move a company into one ofthree higher monthly pricing tiers, with a maximum subscription fee of$199 per month (emphasis added). Interestingly, dealers that ONLYsupply parts to their wholly owned collision facilities will qualify for theminimum monthly rate; however, the reported fee structure indicatesthat suppliers that supply to both their own dealer-owned facility and toothers in the market would still be charged respective to their overallorder volume. The statements adds, “Parts suppliers supporting eachactive state will be offered the opportunity to try the PartsTrader sys-tem at no charge for six months before incurring a subscription fee.This will allow any supplier time to fully evaluate the benefits and po-tential cost associated with the PartsTrader system.” More informationon the new pricing structure is available at www.partstrader.us.com.
“We are pleased with the progress of our rollout to date, as 14states are fully launched and another 14 will be coming on board in thenext 90 days,” offered Dale Sailer, PartsTrader’s vice president ofbusiness development, in a prepared statement. “Within those mar-kets, a growing number of repairers are choosing the PartsTrader plat-form for all their parts procurement needs.”
While Sailer paints a positive picture of the dealership side of thePartsTrader equation, the unprecedented number of parts vendorscontacting the WMABA offices in recent weeks with concerns suggestsotherwise.
“Parts vendors have a large concern about losing their existing
PartsTrader:THE BIGQUESTIONS
As a way to help you gain the clearest possible picture on PartsTrader, here are some useful questions shops should consider asking their State Farm representatives when discussing the program:
What happens when my preferred parts provider chooses not toparticipate in PartsTrader?
I have heard that others using the system have seen quotesfrom suppliers in other states; would I receive quotes from suppli-ers outside of the state or my market area?
How does ordering a part from a dealer in another state aid inmy shop’s cycle time and efficiency, especially if there is a prob-lem with the part I receive?
Will I ever have to provide a credit card or COD for parts I amquoted?
When will it be possible for my shop to receive a quote from aparticipating dealer in under 30 minutes?
What happens if I sign up, as requested, but only use Parts-Trader when I feel it is appropriate, and use traditional orderingpractices when I think it is a better option?
Why did PartsTrader decide to remove the fax option?
What happens if I find a dealer willing to supply my parts withgreater efficiency or maybe better price than your PartsTraderproviders, but they refuse to use the program? Wouldn’t prohibit-ing me from using this dealer defeat the supposed purpose ofPartsTrader to begin with?
What are State Farm’s plans regarding the procurement of paintand materials for their Select Service shops?
What are some examples of State Farm revising the PartsTraderprogram as a result of concerns and suggestions offered by shopusers?
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customer relationships or having unnecessaryimpositions on their process in order to keeptheir existing relationships,” offers Hendler.“This is especially concerning if they lose themto vendors that are not even in the area, orstate, for that matter. Another facet of this is theability to sell parts to their own dealer collisioncenters. Shops show similar apprehensionabout losing existing relationships, but also theadded administrative burden of a program thathas not been shown to improve efficiency foranyone. They are also looking at the dollars inparts profit that could be potentially lost if themarket is manipulated by an outside influenceand what that could mean for the entire land-scape of our industry. This boils down to thefact that this is not within the business of insur-ance and making people whole; it’s about cor-porate greed. It’s no coincidence that theinsurance commercials plaguing our media arefor auto coverage; it’s their biggest profit center– and it’s all on the back of our industry.”
Hendler is quick to add that the potentialeffect on the consumer – supposedly the mostimportant part of any insurer-shop relationship
– is missing from most conversations on partsprocurement.
“With increased pressure on parts choiceand price, customers are limited to the portalavailability,” she says. “This isn’t fair to them,as they’ve paid premium dollars to have theircar repaired to pre-accident condition, at theshop of their choice, and in the manner inwhich the shop recommends is best for them.”
With PartsTrader’s pricing announcedonly a few days before press time, it is tooearly to truly know how dealers – the entitiesthat will ultimately drive the success or failureof the PartsTrader platform – will respond tothese new financial and logistical burdens.WMABA is also promoting that the OE partsvendors contact their respective Dealers’ Asso-ciation (VADA, WANADA or MADA) — and thatUsed/Aftermarket companies contact theirassociations as well — to discuss theirconcerns with them.
Showdown in the MidwestWith WMABA gearing up to get in the leg-
islative ring with PartsTrader, the Alliance of
Automotive Service Providers of Minnesota(AASP-MN) has already been through thelegislative trenches over the parts procurementissue and is now working on enforcement. LastOctober, they announced that they had filed aformal complaint with the Minnesota Depart-ment of Commerce requesting administrativeand legal action to prevent State Farm from is-suing parts procurement mandates to SelectService shops in the state. The association’sreasoning was that State Farm’s partnershipwith PartsTrader would be in violation of a six-year-old state statute (72B.092, subd. 1[6]),which prohibits insurers from specifying “theuse of a particular vendor for the procurementof parts or other materials necessary for thesatisfactory repair of the vehicle.” For nearly 18months now, AASP-MN has met and corre-sponded with the Department to express con-cerns regarding State Farm’s plans toimplement PartsTrader in Minnesota. But ac-cording to AASP-MN Executive Director JudellAnderson, the Department has been reluctantto act.
“We have really been pressuring the De-partment to respond to our complaint andmake a decision,” she says. “The hang-up intheir mind as far as being able to investigateand make a decision on this earlier was thefact that the program was not yet implemented.Our argument was that it didn’t matter if theprogram is implemented or not; as long as it’smandated, we believe it was the mandate thatviolated state law. But they took the positionthat until the intent was clear that this wasgoing to happen here, they weren’t going tojump in.”
With State Farm’s imminent requirementto use PartsTrader in the state– and aftermeeting with State Farm, who confirmed theirintention – the Department is currently analyz-ing the legal and regulatory ramifications of theplan. An official Department ruling on the man-date had not been reached at press time.
“Even if the Department agrees with usand concludes that the program is in fact illegalin Minnesota, it will likely go into effect anywaybecause once the Department issues its order,that initiates due process,” reveals Anderson.“Assuming that it goes our way and the Depart-ment issues a cease-and-desist order, at that
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point State Farm could go to district courtand seek a stay. If they were successful ingetting that stay, the order would not go intoeffect while those administrative proceed-ings are pending.”
Although the jury is still out in Min-nesota at the time of this writing, it is clearthat the issue of insurer-mandated partsprocurement has galvanized the nationalauto body industry like nothing before it.
“State Farm went too far,” Andersonsays. “When you pile something this signifi-cant on top of all the other little things, youreach the tipping point.”
In addition to WMABA and AASP-MN,repair professionals in Florida and Missis-sippi are currently pursuing their own legalsolutions to parts mandates (see NationalNews, page 18). But even with multiple as-sociations fighting for the rights of theirmembers, it is ultimately up to the shops onthe program to decide whether or not Part-sTrader or any other DRP-driven parts sys-tem enters their market.
“They all have to make an individualdecision,” insists Hendler. “Some don’t wantto participate at all, some want to try it outinitially and some say they just don’t feel liketheir business model would survive withoutit. Listen, I know that there are families tofeed attached to all the business decisionsthat a shop makes. I just encourage them tolook at all the options before deciding. Makean informed decision, not an emotional one.There are many shops out there that aredoing well without being on the program.They have a strong community presence,and strive to market themselves to offsetthese issues. Some even have said thatthey are doing slightly less work, but aremore profitable. It all comes down to theindividual at the end of the day.” H&D
We want to make clear that there is adifference between making a personalbusiness decision and helping the associ-ation. Deciding to use the system doesnot mean you can’t stay involved withthe association and assist where you can.
- Jordan Hendler
Executive Director’s Thoughts
44 January 2014
CCC Information Services has enteredthe parts business. As reported in our Novem-ber 2013 issue, the company recently an-nounced the launch of its CCC TRUE PartsNetwork, a parts-focused initiative “that is con-necting the industry’s parts suppliers withCCC’s expansive customer base of repairersand insurance carriers.” According to a com-pany press release, the CCC TRUE Parts Net-work integrates with the CCC ONE platform toprovide “parts suppliers of all sizes with a suiteof solutions to display their parts, provide real-time price quotes and electronically sell theiravailable parts inventories as estimates arebeing written.” Insurance carriers using CCCONE can view parts and receive real timequotes; repairers using the CCC ONE RepairWorkflow solution “have the same functionality,plus the ability to electronically purchaseparts.”
Bill DiRusso, parts director at majorDelaware-based wholesale parts dealerNUCAR (www.nucarparts.com), recently metwith CCC representatives to gain insight intowhat CCC TRUE has to offer.
As DiRusso reported in the November2013 issue of New Jersey Automotive, “[CCC]are stating that it’s just a tool and the next stepfrom CCC ONE. CCC TRUE would be the toolto check availability, pricing and ordering…It’snot bidding, but as a dealer I would have tosubscribe and allow my inventory, availabilityand pricing to be out there for shops to view.They would have anonymous global informa-tion, but they’re saying they wouldn’t give outany individual shop information to any insur-ers.”
Although he was open to any programthat would add efficiency to his operation,DiRusso expressed some initial concerns thatneeded to be addressed before he committedto the CCC TRUE system.
“In some cases, I could lose individualparts sales if I was out of something for today,”he said. “If a shop decides to buy based onavailability or pricing, that doesn’t guaranteewhat time or what kind of service they’re going
to get from their vendor. You could have deal-erships out there trying to win a price war butstill not have the delivery service, return serv-ice and expertise. It all depends on shops’ loy-alty to their vendors.”
An in-depth feature on the CCC TRUEParts Network will appear in next month’s issueof Hammer & Dolly. H&D
HEADLINERSThe latest news and notes.
NEW CCC PARTS PLATFORM CAUSES CONCERNS
45January 2014
46 January 2014
PRESIDENT: Don [email protected]
443-539-4200 ext. 17061
VICE PRESIDENT: Torchy [email protected]
410-309-2242
SECRETARY: John [email protected]
703-534-1818
OFFICERS
BOARD OF DIRECTORS
Rodney [email protected]
410-969-3100 ext. 250
EXECUTIVE DIRECTOR: Jordan Hendler
PAST PRESIDENT: Barry [email protected]
804-746-3928
Mark [email protected]
703-671-2402
Kevin [email protected]
301-336-1140
Bobby [email protected]
434-767-4128
Just like equipment and training, WMABA membership is notonly a commitment to excellence, but also a valuable investment.
WMABA is recognized both regionally and nationally as the keyforum for the exchange of ideas concerning the D.C., MD, and VAcollision repair industry. It is the venue to discuss, learn about andimpact evolving standards and policies in the technical, administra-tive and legislative fronts of our industry. Shops and industrysupporters can best develop themselves and their employees byactively engaging in the association and its activities.
Automotive collision repair facilities in Maryland, Virginia, andWashington, D.C. who are willing to adopt WMABA’s Standards ofMembership and offer a guarantee to their consumers are encour-aged to engage their business as an active member of the associa-tion. For over 40 years, the WMABA membership of professionalcollision repair businesses and affiliates have committed to operat-ing at a higher standard on behalf of their industry and their con-sumers. Over the years, WMABA has proudly represented the collisionrepair industry at hearings on Capitol Hill, in Annapolis, MD, and Rich-mond, VA as well as almost every national collision repair event.While WMABA has a rich history of dedicated men and women serv-ing the local collision repair community, WMABA also boasts numer-ous past and current accomplished board members who representour membership at the national level.
WMABA offers current and dynamic discussion forums on top-ics facing collision repairers, technical information and educationalseminars, opportunities to network and discuss pressing topics withleaders of the collision repair industry, an arbitration program thatworks with consumers to help resolve issues they might have, ap-prenticeship programs, legislative representation, and the ability toreceive and contribute to one of the nation’s leading collision repairmagazines, Hammer and Dolly.
Contact Executive Director Jordan Hendlerto find out how WMABA can amplify YOUR
voice in the collision repair industry. “
”
Position YourBusiness as a Leader!
An association fostering the exchange of ideas, and providing a voice and support for the collision repair professional.
TREASURER: Mark Schaech [email protected]
410-358-5155
47January 2014
48 January 2014
MESSAGEEXECUTIVE DIRECTOR’S
49January 2014
Jordan Hendler(804)789-9649
address the issue of insurer mandates in that area as well in the near future if change is notenacted soon.
Let’s say you’re a shop owner who hates the idea of PartsTrader, but you’ve decidedto remain a Select Service shop. Maybe you are merely testing it in order to make an in-formed decision before dropping out of the program altogether. Perhaps you’re participatingbecause your DRP is your shop’s lifeblood. Regardless of the reason, if you’re on the pro-gram but don’t want to be, that’s OK. And if you want to do something about the issue with-out your name attached, we can make that happen. You can be anonymous.
No matter whether you have rejected or accepted PartsTrader (or programs like it, be-cause as we all know, PartsTrader isn’t the only one by a long shot), knowledge is power.Being present and participatory in WMABA’s upcoming fight against implementation of in-surer-mandated programs in our area is crucial. And if you’re currently feeling like you wereforced into a parts procurement program – or if you’re doing it as a business decision foryour own shop – please know that WMABA will always be here to do everything in ourpower to keep you successful. We are all in this together, and together, we will effect greatchange.
I wish each and every one of you a happy and healthy New Year. Let’s work on making2014 a year of new directions and great success – TOGETHER. H&D
NEW YEAR, NEWDIRECTION!
WMABA’s 2013 Annual Meeting andHoliday Membership Social was the best-at-tended event of its kind in recent memory. (Seepg. 16 for a full rundown of the evening.) As Iaddressed the crowded room and updated themon progress of insurer-mandated programs likePartsTrader, I got the same feeling from theseattendees that I get when I speak to our mem-bership on the issue of insurer mandates: Thatthey feel trapped, no matter which side of theissue they decide to support. I’m here to tell youthat that could not be further from the truth.
First and foremost, I want to make it clearthat no shop is going to be blackballed byWMABA for choosing NOT to say no to Parts-Trader. Choosing to remain on State Farm’s Se-lect Service Program – or not – is a businessdecision that you as a shop owner have tomake. (And while we’re on the subject, WMABAis NOT against parts procurement programs,electronic or otherwise. What we ARE against istheir REQUIRED or MANDATED use.) Regard-less of the business decision you make, youcan not only continue to be a productivemember of WMABA, but you can also con-tinue to help change the mandated partsprocurement issue.
If you are a shop in Maryland, for example,I urge you to be a part of our upcoming LobbyDay on January 22. This event is going to be soimportant to our members, to ease you into notonly meeting your legislators and making impor-tant inroads at the State House, but also intounderstanding exactly what WMABA’s proposedlegislation will do about the issue. We will alsobe offering assistance to our Virginia shops inmeeting their legislators, and are planning to
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BMW Group ........................................28-29
BMW of Bel Air ....................................IBC
BMW of Fairfax....................................3
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50 January 2014
51January 2014
