Jan - Feb 2014
Leaders in the sale of quality Mopar Parts.
In This Issue New President Rick Cutaia ..................... 2 MMG Supporting Vendors .............10-11 Mopar .........................................................29 ADP ......................................................30-31 Elite Extra...........................................32-33 FenderBender/Ratchet+Wrench.........34 UPS .............................................................35
MMG Meets for 22nd Annual Meeting at NADA in New Orleans Pages 3-28
Reynolds & Reynolds..............................37 OEConnection ....................................38-39 LKQ Issues Wheel Recall ......................40 Chrysler Sues LKQ .................................41 Maryland Reintroduces Legislation ...42 An Open Letter from Ole Olson ..........43 2014 MMG Committee..........................44
The exchange of information by like size dealers in a non-competitive environment.
Mopar Masters Guild
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Letter from New MMG President Rick Cutaia Honored. This is the first word that came to my mind when this group of “Masters” voted me as the next President of the Mopar Masters Guild. While quite a few other emo ons went through my mind: excited, nervous, scared and unsure, I feel truly honored and surprised that a er a ending my first Guild mee ng in Orlando some eight years ago now, I’m running this Guild. I can say that over the last eight years I have grown so much as a Parts Manager and learned many skills that have taken my department to not just the next level but to the next stratosphere!! Being around such a group of talented men and women, and their willingness to help and share informa on with one another is what makes this group such a special treat to be associated with. I’m truly working with the best of the best. My first taste of the car business came working over the summers at my uncle’s used car lot in West Virginia, when I was in my early teens. I graduated high school, and started working at a local Chevrolet dealership here in Charleston, SC, delivering parts, and soon worked my way to selling parts over the counter. I was then fortunate to get hired on at Rick Hendrick Chevrolet in 1990. With that opportunity, I was able to work my way up to Assistant Manager and was then put in charge of our wholesale opera on. As fate would have it, in 1995 we purchased an old hotel next to the dealership and construc on began on what would become Rick Hendrick Dodge. I was given the opportunity to become the Parts Manager at the store. Opening and star ng a store from the ground up was a struggle in itself in the beginning, but it didn’t take long to figure out a game plan and execute it. With hard work and determina on, I am proud to say that my department is now selling close to $9 million dollars in sales. I would like to take this me to thank Steve Hofer for all of his hard work and dedica on to the guild over the last two years. I’m sure I will find out it is a difficult, but rewarding task to run this guild. Thanks Steve! So, I will take the reins over for the next two years, and I will keep the Guild moving in the posi ve direc on and navigate our way through this ever changing business that we are consumed in. Sincerely, Rick Cutaia, MMG President Rick.cutaia@hendrickauto.com
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Mopar Masters Guild Meets at NADA 2014 in New Orleans The “Best of the Best” celebrate their 22nd Annual Event Members, spouses and guests began arriving on Thursday January 23rd and enjoyed the Guild Welcome Recepon held at the Roux on Orleans in the Orleans Bourbon Hotel, our home base for our mee ngs. Is was a very nice evening with everyone once again catching up with what has transpired over the past year. Friday January 24th, 2014 We began bright and early with MMG President Steve Hofer offering his opening comments involving some of the changes that have occurred during the past year in life and business. With that, we went around the room and had members give an introduc on and offer up their input about their background and business. A endees for the MMG 2014 Mee ngs were: Ken Kremer Susan McDaniel Joe McBeth Randy Rogers Tom Kellogg Glen Hojnacki Roy Benner Andy Reed Mark Skinner Bill Davolio Jus n Bantcock Steve Hofer Gerry Oakes Rick Monteiro Cody Eckhard Don Cushing
Zimmer CDJR Bill Luke CJD Dallas DCJ Huffines CJD Harold Zeigler CDJ Milodch’s Palace CJD Allen Samuel DCJ Allen Samuel DCJ Chapman DCJR Security DCJR AutoNa on SW CJD Park CJ Performance Auto Jack Powell CJD Larry Miller CJDR Bald Hill DCJR
Dan Hu on Larry Morris John Russo Louis Ossuna Tom Saigh Casey Brown Rick Cutaia Paul Allred Doug Price Mike Mulkins Adam Thompson Marvin Windham Mike Opperman Brent Hoge Mike Gerber
Tom O’Brien CJD Fred Beans DCJ Dallas DCJ Huffines CJD Milodch’s Palace CJD Allen Samuel DCJ Rick Hendrick DCJR Stateline CJD Security DCJR GO CJ West Park CJ Benchmark CDJR Performance Auto Larry Miller CJDR Rairdon CJDR
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Continued from Page 3 A er the introduc ons, we were presented with the Treasurer’s Report by Mark Skinner and the Secretary’s Report by Joe McBeth. Mo ons were made to accept each report and were unanimously accepted. 2014 NADA Planning Chairman, Andy Reed was recognized by the Guild for the me and effort that he put in to making this event happen. This (MMG Mee ng) is a very large task that takes up much me throughout the year to organize. Thank you again, Andy Reed! Steve then covered the agenda for the next few days which included mee ng with our Vendors at NADA on the Conven on Floor and also our upcoming mee ng on Saturday with Mopar. We then went on with guild business discussing ideas and ways to make our departments more efficient, produc ve and profitable! Obviously, the biggest value you can derive from these mee ngs Is the valuable informa on that you bring back to your dealership. Most of the me, the ideas or changes that you implement from this forum usually end up paying for your trip. Quite a value! This year, a new format was designed for more member input and par cipa on and more sharing of ideas. We welcome any and all ideas from managers around the country to help develop our next genera on of the Mopar Masters Guild. Here’s a sampling of the many subjects we covered: Communica ons Personnel Marke ng New Business Opportuni es MRA’s/Damages Guild Expansion/Membership ARO Back Orders Sourcing Special Handling Recalls Customer Reten on Dealer Rewards Service Drive Opportuni es Tech Training (Use of Tech Schools for Poten al Techs) Magne -Marelli Nexpart by WHI Solu ons
Mopar Masters Guild Magazine
Continued on Page 5
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Continued from Page 4 A er a short break we welcomed one of our Suppor ng Vendors, Elite Extra, represented by: John Ward – Account Manager, Midwest Region Ross Kleiner – Business Development Manager, Elite Extra Division Ma Porter – Senior Account Manager
Extra currently has 23Mopar Masters using their system with great results! Extra is enjoying 49% growth with 385 customer loca ons tracking over 2,750 devices. (600 new devices in 2013 alone) They are ge ng ready to launch their new Customer Resource Management System (Extra CRM) for 2014. Great informa on and great new produc vity tools from Elite Extra. For more informa on go to: www.eliteextra.com. (Look for The Extra Scoop for info on their CRM tool!) The Elite Team then joined us for lunch which gave us an opportunity to ask many ques ons.
Continued on Page 6
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Jan - Feb 2014
Continued from Page 5 A er lunch we enjoyed a visit from another of our long me Suppor ng Vendors, UPS. Ups was represented
by: Tim Quinne ee – Director of Business Development, Automo ve Industrial/Manufacturing Group Tim tells us that there are many new tools that UPS offers us to keep our customers sa sfied. UPS offers Worldship and Ecommerce which, if your business is looking to expand into new markets, this easy online soluon (offered by UPS Ready Marketplace Providers) can help you gain more customers, more sales and more success with ready-to-use solu ons that are ed to trusted names like Amazon, Bridgeline Digital and Yahoo! For more informa on go to: www.ups.com or email Tim at quinne e. mothy@ups-scs.com
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Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts Continued from Page 6 Next up was another of our Suppor ng Vendors, Katzkin, represented by: Doug Johnson – Director, OEM Sales for Katzkin Subjects cover by Doug: o Mopar Customer Shops o Overall Dealership Benefits o New Jeep Wrangler Interior Package o New Packages for Compass and Patriot o Ram 1500 Mossy Oak o Leather being an op on on and Chrysler Capital Lease o Service Lane Program o Interac ve Kiosk Displays For more informa on you can contact Doug at www.katzkin.com
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Jan - Feb 2014
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Moving along, we welcomed another of our Valued Suppor ng Vendors, OEConnec on. Represen ng OEConnec on: Ike Herman – Business Team Leader, Supply Chain Topics covered by Ike were: o Retail – ConsumerLink – Best Prac ces Marketplace Direct EasyParts.com
o Collision – CollisionLink CollisionLink US Programs 257M Program Parts (A ermarket to OEM) were converted in 2013 One of the new reports will show you which shops are using CollisionLink and allowing you to see if they are using YOU! CollisionLink Shop 2.0 will be a new and easier applica on for your collision shops that should launch in Q3 of 2014
o Mechanical – RepairLink RepairLink 3 year Performace Snapshot Improved User Experience RepairLink Branding Catalog Enhancements – All Makes Support! Framework to provide Marke ng Opportuni es
o Supply Chain Solu ons PartsBrokerDirect
Mopar Masters Guild Magazine
Continued on Page 9
Leaders in the Sale of Quality Mopar Parts
Continued from Page 8 Incoming Offers to Dealers Con nued Market & OEM Expansion Team Alignment $14 Million in Idle Inventory Sold though PartsBrokerDirect in 2013 For more informa on, contact Ike at Ike.Herman@oeconnec on.com
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The exchange of information by like sized dealers in a non-competitive environment.
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Our Supporting Vendors: Support those who support you.
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Jan - Feb 2014
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Our Supporting Vendors: Support those who support you. The exchange of information by like sized dealers in a non-competitive environment.
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Jan - Feb 2014
Continued from Page 9 Our next Suppor ng Vendor to join us was Dealer Tire represented by:
John Bellissimo – Director of Sales – Dealer Tire Eric Evanoff – Director of Na onal Field Training Services – Dealer Tire
Topics cover by John: 2013 Summary Mopar VIO Mopar TireWorks 2013 Highlights and Accomplishments
Mopar Masters Guild Magazine
Continued from Page 13
Leaders in the Sale of Quality Mopar Parts
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Continued from Page 12 o Achieved highest unit sales in program history o Developed a winter program strategy and accelerated pace on winter re sales, up 41% YOY this season to date o Live Dealer Sites have grown 106% (254 to 524 Dealers launched) o Tested MSER Tire Program Changes – Change to Quarterly Program being implemented in 2014 o Began Regional Dealer Training Ac vi es with Business Centers o Added 150 Addi onal SKU’s (110 SKU’s for all makes applica ons) o Increased ARO Enrollments by 18% (1449 Dealers now enrolled)
Topics covered by Eric: Nearly 5500 Service Professionals Trained at DCJR & Fiat Dealers in 2013 Covering: o Dealership Coaching o Training o Inspec on Support o Program Support o Selling & Retailing Support o Inventory Support
For more informa on contact your Chrysler Area Manager or contact John at jbellissimo@dealer re.com
The remaining por on of our first day would be dedicated to our Tier 2 Vendors in a Vendor Fair Format.
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The exchange of information by like sized dealers in a non-competitive environment.
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Jan - Feb 2014
Continued from Page 13
Joining us for the Vendor Fair were:
Corporate Billing LLC Jeff Leavi – Vice President Sam Thompson – Account Execu ve
AutoBodyNews Barbara Davies – Co-Owner/General Manager
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Magne -Marelli Rick Majewski – Head of Magne -Marelli NAFTA Jennifer Harris – Magne Marelli Por olio/Mopar Brand
FenderBender/Ratchet+Wrench Magazine Chris Messer – Publisher
Rousseau Storage John Stritzinger III, Stritz & Associates, Maufacturers Representa ve Bud Trammel, Trammel Equipment Co. – Automo ve Dealership Equipment Specialist
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Jan - Feb 2014
Continued from Page 15 Our first day of our mee ngs was adjourned at 5:00pm and members readied themselves for our Mopar Masters Guild Annual Cocktail Recep on.
Our Recep on, which is always a highlighted event at our mee ngs, was held at Calcasieu. As always, a wonderful, fun evening was had by all in a endance. Members were joined by their friends, guests, vendors and Execu ves from Mopar. Here are a few photos from that event.
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Jan - Feb 2014
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Continued from Page 18 Saturday January 25th, 2014
Day 2 Agenda: Guild Business Elec on of Officers “Go To Market” Panel Discussion Mee ng with Mopar Execu ves
A er several discussions about guild business, we held our Elec on of Officers. Nominated and voted into office were: President – Rick Cutaia – Rick Hendrick DCJR Vice President – Andy Reed – Allen Samuel DCJ Treasurer – Mark Skinner – Chapman DCJR Secretary – Susan McDaniel – Bill Luke CJD
We would like to congratulate these fine professionals for a aining these posi ons and look forward to their future leadership in helping to guide and grow the Mopar Masters Guild. Each officer then gave us an update on their history with the Guild. A er a brief break, we moved on to our “Go To Market” Panel Discussion. This format was developed over the past few months to offer a change in our mee ngs. This event was moderated by Marvin Windham from Benchmark CDJR who kept the panelists on topic. Panel members invited and par cipa ng were: Paul Allred – Stateline CJD Don Cushing – Bald Hill DCJ Joe McBeth – Dallas Dodge Casey Brown – Allen Samuels DCJ Larry Morris – Fred Beans DCJ Roy Benner – Allen Samuels DCJ Continued on Page 20
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Jan - Feb 2014
Continued from Page 19 Also joining us for the panel discussion were: Frank Donnelly – Maintenance & Magne Marelli – Mopar Brand John Tonial – Senior Manager – Mopar Sales Repor ng & Pricing Analy cs – Mopar Brand Heidi Hughes – Senior Manager – Mopar Sales & Field Opera ons – Mopar Brand While the specifics of this panel discussion will not be shared in this ar cle, (you need to a end these events to get this valuable type of informa on!) we can say that panelists were asked ques ons about how they “Go to Market” in their geographical areas. Do they market by price, by rela onship or do they use another form? Each panelist was given an opportunity to share their ideas and informa on with the group and was then given the opportunity to discuss any ques ons that their audience had for them. We welcomed the input of Frank, John and Heidi during our panel discussion and appreciated the valuable me that they took from their schedules to be with us. Thank you Marvin for your direc on and thank you to all of our panelists for their sharing of informa on! Following our panel discussion we con nued talks on MarketSource offered by Mopar. Frank offered us some great informa on concerning MarketSource and we then went on to discuss “What have we done to prepare ourselves for this solu on provided to us by Mopar?” Many in the room offered their ideas and implementaon of this new solu on. There were great discussions, great informa on about a great tool to help us in our businesses. We were then joined by Pat Dougherty, VP of Mopar Sales, Field Opera ons and Product Development, Chrysler Group. Pat thanked the guild and welcomed the open dialogue between the guild and Mopar. A few items covered by Mr. Dougherty: Simplify Processes Consolidate Databases Be more produc ve and efficient Sales up almost 7% YOY Things looking posi ve with an increasing car parc Changes in recalls
John Tonial then gave us some background on the Service Smarts Tool. Some of the themes John heard through our discussions: Dynamics of the business Building rela onships Reten on
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Continued from Page 20 Customer experience Technology Cataloging Taking advantage of our strengths and weaknesses Service Smarts: Helps us be er understand our market in our backyard Helps us to integrate with the tools we already use Find an opportunity and go a er it Presents us with a dashboard with plenty of informa on comparing us with others Using this data gives us an area of opportunity to go a er more market share Helps find inac ve customers Great for mailers Gives you more control Useful for retail and wholesale by genera ng customer lists.
This informa on was followed by many ques ons and answers. Pre y exci ng tool! Pat then introduced Tedi Casasanta, Director, Mopar Supply Chain. Tedi tells us that although she is fairly new to this posi on, she brings a great deal of customer focus and customer service. We are looking forward to Tedi being of assistance with our dealerships! Our conversa on then turned to informa on that President Steve Hofer asked select members to bring with them to our mee ng. These select members were given a small homework assignment by visi ng some of our real compe on, O’Reilly’s Auto Parts, Carquest, Advanced Auto Parts, NAPA, etc. Here are some of the topics generated by input from those who visited these stores: Pay Structures Blitz Marke ng Profit Margins Pricing Structure Shop Equipment & Financing
Continued on Page 22
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Continued from Page 21 Customer Rela onships What “parts stores” do different than us Virtual Parts Sites Delivery Times and Strategies Call Handling Order Systems Customer Reten on In talking with our corporate a endees from Mopar, we were informed that both the panel discussion and the conversa on on the “homework” assignment of visi ng the compe on proved very valuable to them. The combina on of the two discussions gave them important insight on how our dealers go to market and how that differs from how the dealer’s compe tors go to market.
(L-R) Pat Dougherty, Mark Skinner, Susan McDaniel, Andy Reed, Rick Cutaia, John Tonial, Heidi Hughes, Frank Donnelly, Rick Majewski and Tedi Casasanta
The Mopar Masters Guild would like to thank Mopar for sharing their valuable me and input with us during our discussions. We look forward to future discussions.
Continued on Page 23
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Continued from Page 22 As we reached the end of our 2nd day of our mee ngs, the general consensus was that we all wished we had more me to discuss business and share ideas. Our new format for our mee ng seemed to be a resounding success! With that, President Steve Hofer, in his final act as President, adjourned the 22nd Annual Mopar Masters Guild Mee ng.
Sunday January 26th, 2014 This day was spent visi ng a few of our Suppor ng Vendors on the Conven on Floor at NADA. Many members would be con nuing on the next two days for the Performance Group Mee ngs.
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Continued from Page 25 Monday January 27th, 2014
2014 Chrysler NADA Service & Parts 20 Group It was another great turnout of some of the best Service and parts managers in the country. Our co-facilitators for this mee ng were: Mark Beaton – Chrysler Academy – MBA Dealer Services Tom Rice – Chrysler Academy – MBA Dealer Services They were joined by: Jen Short - CIO, MBA Dealer Services Tom Rice welcomed all of us and gave us an update on the new 2015 Chrysler 200. Tom then covered a few housekeeping guidelines for the two days and reminded everyone not to be late coming back from a break. (Those who have a ended a Performance Group Mee ng understand why!)
Tom then went around the room and had everyone give a brief update about themselves and also offering up their goal/plan that each of us would like to achieve this year. This info would be recorded by Mark Beaton for discussion points later in the mee ng. Here are some of those that were shared:
Ge ng back to Basics Increasing Gross Personnel Team Morale/Culture Bigger Online Presence Diversify Wholesale Expense Control Accessory Business Magne -Marelli Market Share – Wholesale Customer Reten on Expansion Keeping up with Programs/Technology
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The agenda for the next two days: Day 1 Updates & News o Performance 20 Group Updates
Financial Review o Service & Parts Financial Review/I-Exam o 2014 Financial Statement Pages Financial Statement Accoun ng Informa on Express Lane Accoun ng Review o Case Study of a Member Dealer Financials o Set Your Individual Objec ves
Share An Idea Session o Rules located in the Agenda Page 2 o Moderator’s Choice Ideas from 2013 (As me allows) Best Idea Session Day 2 Day 1 Wrap-up Departmental Session Break-Out o SOP’s Process o Sales-to-Service & Parts Connec on o Employee Morale/Mo va on o Making Recall No fica on o Execu on of a Posi ve Customer Experience o Service & Parts Webpages/Social Media Presenta on – How to Sell an Idea to Your Dealer
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Continued from Page 27 We then went onto our Financial Reviews which covered a major por on of the first day. Following our financial reviews we began the “Best Idea” compe Review Your Idea: o Idea – What was done? o How was it implemented? o What did it cost? o What were the results? o What were the pi alls? o What is your next step?
on. Here are the rules:
Rate each idea on the provided form Submit for scoring and tabula on Best Idea Presenters Were:
*Paul Allred *Susan McDaniel *DJ Cabrrera *Rod Krueger *Marvin Windham *Glen Hojnacki *Bill Davolio
Stateline CJD Bill Luke CJD Huffines CJDR Yark CJD Benchmark CJD Milosch’s Palace CJD Security DCJ
Presenta ons were made, votes were cast and the results were tabulated. Winners of the Best Idea Presentaon for the NADA Super Performance Group Mee ng for 2014 were:
1. 2. 3. 4. 5.
Marvin Windham Paul Allred Glen Hojnacki Susan McDaniel DJ Cabrera
Day 2 of the Super Performance Group went according to the agenda with breakouts for Service & Parts followed by group interac on and problem solving. This concluded our 2014 Chrysler NADA Service & Parts 20 Group We look forward to seeing all of you next year at NADA 2015 in San Francisco!
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Chrysler, Jeep,
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Filter
Exhaust System
This informative pamphlet highlights each aspect of the multi-point checkup, as well as the common wear items, reassuring customers that your professional, highly trained technicians have lived up to our promise of “A complete checkup every time.” Order a package of 500 pamphlets today. UNDERSTANDING UNDERST DERSTAND ANDING ANDIN YOUR VEHICLE CHECKUP. UP.
VEHICLE CHECKUP CLIPBOARD Don’t let a cheap clipboard harm your professional image. This clipboard is designed specifically for use in your busy service area. Made of durable plastic, it features a wear chart on the back so your Service Advisors can easily illustrate a service need and solution. The clipboard is a small item that can make a big difference.
©2014 Chrysler Group LLC. All Rights Reserved. Mopar is a registered trademark of Chrysler Group LLC.
Visit the Service Drive Store at www.dealers-mopar.com > Retail Tab > Service Drive Store to order your materials.
The exchange of information by like sized dealers in a non-competitive environment.
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Jan - Feb 2014
The right technology in the hands of your people. That’s your Edge. M O N T H
Appointments
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You told us what you wanted: An end-to-end service solution that does it all. Online appointments to the lane to lift inspection with no rekeying—plus integration with ServicePricing—in one ridiculously easy-to-use mobile interface that lets your staff and their customers feel good about their service experience. ADP ServiceEdgeSM gives you that Edge. An ADP study found that only 10% of consumers believe that dealerships are better than independent service centers at fixing vehicles. Read the results at adpdealerservices.com/youredge and then contact ADP to learn how ServiceEdge can help change this perception.
©2013 ADP Dealer Services, Inc. / The ADP logo is a registered trademark of ADP, Inc. / 888.424.6342 / adpdealerservices.com
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Jan - Feb 2014
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35
Copyright © 2013 United Parcel Service of America, Inc.
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The exchange of information by like sized dealers in a non-competitive environment.
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Jan - Feb 2014
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts
“Gross labor sales are up 130%”
37
Randy Yockey Co-Owner Friendly Ford Roselle, IL
Premium Service Kit – a part of Reynolds Retail Management System.
reyrey.com /rms | 888.853.2617 © 2014 The Reynolds and Reynolds Company. All rights reserved. 1006542-3 2/14
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Jan - Feb 2014
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts
39
The exchange of information by like sized dealers in a non-competitive environment.
40
Jan - Feb 2014
LKQ Issues Aftermarket Wheel Recall, Focus is on State of Connecticut On October 30, LKQ Corpora on and Keystone Automo ve Industries Inc., collec vely known as LKQ-Keystone, ini ated a recall on a specific a ermarket replacement aluminum wheel, part number ALY63934U20N, iden fied on the inside of the wheel’s cas ng as ALY99435U20N, likely sold between September 1, 2010 and April 30, 2013. The recall is being conducted because of poten al defects that could cause the wheel to fail and which could, in turn, lead to an accident resul ng in serious injury or death. The recalled part is a 7-spoke wheel design, containing the TWC logo, and the inside of one of the spokes will reflect part number ALY99435U20N. LKQ-Keystone sent le ers to consumers and collision repair shops that purchased this wheel to alert them to the recall. The company will replace the wheel on consumers’ vehicles at no charge, and they have also informed shops that are affected that the company will replace the part and reimburse them for the costs associated with this replacement. Thus far, the recall only seems to have affected shops and consumers in the state of Connec cut, and Tony Ferraiolo, President of the Auto Body Associa on of Connec cut (ABAC), feels that dissemina on of informa on pertaining to this hazard is “extremely important to the consumer and the shop that installed this wheel. Na onal a en on to the poten al dangers of using inferior wheels is also important at this me since wheel failures such as this can result in serious injuries or death.” Though the specific reason for the recall has not been released, ABAC is trying to determine what prompted the recall. Shops that may have installed one of these wheels should contact their customers to inform them of the recall. Ques ons and concerns about the recall should be addressed with LKQ-Keystone’s Milford loca on at 800-330-3745. For general ques ons regarding this recall, please contact LKQ at 877-539-7322. Source: www.autobodynews.com
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts
41
Chrysler Sues LKQ Alleging Patent Infringement Suit alleges some aftermarket parts sold by LKQ Corporation infringe Chrysler design patents. LKQ believes suit without merit. On Thursday, January 16, Chrysler Group LLC filed a lawsuit against LKQ Corpora on and Keystone Automo ve Industries, Inc. in the U.S. District Court in the Eastern District of Michigan. The complaint alleges that LKQ and Keystone infringed upon 10 design patents owned by Chrysler covering Ram brand vehicles. As evidence that LKQ knowingly infringed upon Chrysler’s patents, the complaint cited LKQ’s 2012 10-K Annual Report that stated, “U.S. Patent and Trademark Office Records indicate that OEMs are seeking more design patents than they have in the past. To the extent that the OEMs are successful with intellectual property infringement claims, we could be restricted or prohibited from selling certain a ermarket products, which could have an adverse effect on our business.” Lawsuits involving automo ve design patents started over nine years ago. In December 2005, a similar suit was filed by Ford with the U.S. Interna onal Trade Commission (ITC) claiming that certain a ermarket parts violate patents held by the automaker. Keystone Automo ve Industries, Inc. was iden fied as a respondent in that ac on. Ford’s patents were upheld and in April 2009, LKQ reached a deal with Ford to sell copies of Ford patented crash parts. Last November, the Automo ve Body Parts Associa on (ABPA) filed a lawsuit in the United States District Court for the Eastern District of Texas against Ford Global Technologies, LLC that seeks to have design patents for body parts ruled invalid. Chrysler is seeking a permanent injunc on against LKQ from further infringement along with an award for profits earned by the sale of parts covered by the patents, or Chrysler’s lost profits “…and/or a reasonable royalty and other damages arising from Defendants’ infringement of the Ram Design Patents, in an amount to be proven at trial, together with prejudgment and post-judgment interest and costs.” The complaint seeks triple damages and a orneys’ fees as provided by law. In a statement released Jan 20, LKQ states, “We believe that the lawsuit is without merit and will defend it vigorously. Moreover, the parts we sell that allegedly relate to these design patents represent an immaterial amount of our revenue. They represent less than one-tenth of one percent (0.001) of our es mated 2013 total revenue and less than one-half of one-tenth of one percent (0.0005) of our es mated total revenue for all the years since the first patent was granted (2009 through 2013). LKQ con nued referencing its agreement with Ford, “We have forged mutually-beneficial business relaonships with other auto manufacturers. As previously disclosed, we have had a license arrangement with Ford since 2009. The license arrangements allow us to sell a ermarket parts covered by certain patents in exchange for a license fee.”
Source: www.collisionweek.com
The exchange of information by like sized dealers in a non-competitive environment.
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Jan - Feb 2014
Maryland Reintroduces Insurer Parts Procurement Prohibition Legislation Bills introduced this week in Maryland House and Senate seek to eliminate insurance company mandated procurement processes. Bills also provide for “Genuine” parts for three years after manufacture. Bills prohibi ng insurance companies and their employees from specifying specific collision repair parts procurement processes were reintroduced in both the Senate and House of the General Assembly of Maryland this week. Senate Bill 487, sponsored by Senator John C. Astle and its companion House Bill 574, sponsored by Delegate John A. Olszewski, Jr., would prohibit “…a specified adjuster, appraiser, insurance producer, or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle; requiring an insurer that issues or delivers in the State a policy of motor vehicle liability insurance that provides coverage for the repair of physical damage to the insured motor vehicle to authorize specified repairs to be made using genuine crash parts; etc.” Co-sponsors of the Senate Bill include Senator David Brinkley, Senator Richard Colburn, Senator Brian Feldman, Senator Katherine Klausmeier, Senator Mathias, Senator Catherine Pugh, Senator Ramirez, Senator Jamin Raskin, and Senator Norman Stone, Jr. Cosponsors of the House Bill include Delegate Charles Barkley, Delegate Conway, and Delegate Kramer The bills largely mirror House Bill 1375 that was introduced by Delegate Mark Fisher, a former repairer, during last year’s legisla ve session in Maryland. In addi on to prohibi ng insurers from requiring specific procurement processes, the bill also requires insurers to authorize “genuine crash parts” that are defined as OEM, or authorized to carry the name or trademark of the OEM, for a period of three years a er the date of manufacture. Last year’s bill required a five year period. Consumers can, however, authorize the use of a ermarket crash parts. The Washington Metropolitan Auto Body Associa on (WMABA) supported last year’s legisla ve effort and will do so again. According to Jordan Hendler, execu ve director of the WMABA, the associa on has met with sponsors of the bills and par cularly supported what the associa on believes are the consumer protec on aspects of the legisla on. “For members of the Washington Metropolitan Auto Body Associa on these bills are about protec ng consumers,” said Hendler. “Our members are seeing more and more people are op ng out of rental coverage, so while any delays caused by insurance company parts procurement processes might not hurt the insurer, consumers will have to spend that money out of their pocket.” Addi onally, the three year period where insurers must authorize OEMs helps consumers and is similar to consumer protec on laws in other states. “Several other states have similar laws placing a ming restric on on a ermarket parts,” said Hendler. Continued on Page 43
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Continued from Page 42 The associa on had a lobby day scheduled last week to meet with representa ves about this and other legislaon. That mee ng was postponed un l next month due to inclement weather. Details will be release by the associa on shortly. “Repairers need to get involved with the legisla ve process,” said Hendler. “They can send a le er to their legislator asking for their support of these consumer-oriented bills. Yes, it does help the repairer in the end, but the reason it ma ers most is that it protects the interests of the consumer to be made whole a er an accident. Without it, they just simply are subject to insurer cost-containment tac cs that have no regard for subsequent harm to that consumer.” Source: www.collisionweek.com
An open letter to the Mopar Masters Guild: Here’s to hoping that you had a Joyous Christmas season and a Happy New Year celebra on. I want to take a moment to remind all who read this, managers, dealers, Mopar people, and vendors, of what a unique associa on this Guild is. There is nothing else that compares in the Auto industry. Any Parts Manager that doesn’t/hasn’t taken the opportunity to par cipate fully is truly missing out on ways to improve yourself and your job performance. The knowledge that gets shared through MMG is truly invaluable. When Chuck Hartle and Cy Yates first got together more than 20 years ago, they could not have imagined what this group would become. Most of you know me, but some do not. While I have been a member of MMG for fi een years, I have not been able to par cipate much the last 4 years. It is with sadness that I will be leaving this great group behind as I move on to a new posi on. Unfortunately, things have not worked out for me at my current dealership, Ryan Chrysler of Buffalo, MN. Beginning January 13, I am taking a posi on with a Mack/Volvo heavy truck dealer as Parts Manager. This will certainly be a change a er 30 years as a Chrysler Parts Manager. My wife, Sharon, and I have enjoyed the great friendships and business associa ons we have formed over 15 years. We count many of you as good friends and hope to stay in touch. I can be contacted at my home e-mail: olson3362@gmail.com. Hopefully, our paths will cross in the future. I’ll try to have a new “Ole & Lena” joke for you then. Best Wishes to all, Ole Olson Buffalo, MN Editor’s Note: Ole, I’m sure I speak for all of us when I say that we wish you nothing but the best in your future endeavors. You have been, and remain a true gentleman and professional. Once a Master, always a Master. Your friendship and humor will be missed. God Bless you and your family - DC
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2014 M MMG MG C Com o m m itte i t t ees es President Vice President Treasurer Secretary
Rick Cutaia Andy Reed Mark Skinner Susan McDaniel
Rick Hendrick DCJR - Charleston, SC Allen Samuels DCJ – North Richland Hills, TX Power CJD – Phoenix, AZ Bill Luke CJD – Phoenix, AZ
Marvin Windham Rick Monteiro Joe McBeth Paul Allred
Benchmark CJD – Birmingham, AL Jack Powell CJD – Escondido, CA Dallas DCJ – Dallas, TX Stateline CJD – Fort Mill, SC
Committees: Vendor Chairman
Paul Allred
Stateline CJD - Fort Mill, SC
Newsletter
Don Cushing
Bald Hill DCJ – Warwick, RI
Nada 2015 Planning
TBA
Membership
TBA
Finance Committee
Steve Hofer Rick Cutaia Mark Skinner Joe McBeth
Park CJ – Burnsville, MN Rick Hendrick DCJR - Charleston, SC Power CJD – Phoenix, AZ Dallas DCJ – Dallas, TX
ADP
Gerry Oaks Paul Allred Andy Reed Rick Monteiro
Baxter CJD – Omaha, NE Stateline CJD – Fort Mill, SC Allen Samuels DCJ – North Richland Hills, TX Jack Powell CJD – Escondido, CA
R&R
Rick Cutaia Susan McDaniel Marvin Windham
Rick Hendrick DCJR – Charleston, SC Bill Luke CJD – Phoenix, AZ Benchmark CJD – Birmingham, AL
Dan Hutton Paul Allred Steve Hofer
Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC Park CJ – Burnsville, MN
Dealer Tire
Susan McDaniel Marvin Windham Joe McBeth
Bill Luke CJD – Phoenix, AZ Benchmark CJD – Birmingham, AL Dallas DCJ – Dallas, TX
Elite Extra
Rick Monteiro Ken Kokoszka
Jack Powell CJD – Escondido, CA Christopher’s Dodge World - Golden, CO
UPS
Glen Hojnacki
Milosch’s Palace CJD – Lake Orion, MI
Tracy Industries
Mike Mulkins
Go Chrysler Jeep West - Golden, CO
GuidePoint
Mike Mulkins
Go Chrysler Jeep West - Golden, CO
Katzkin
Mike Gerber
Rairdon CDJ - Kirkland, WA
Executive Committee All of the above as well as:
Vendor Committees
OEConnection Snap-On
Mopar Masters Guild Magazine