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Leaders in the sale of quality Mopar Parts.

May - June 2014 In This Issue

2014 Chrysler Service & Parts Managers 20 Group Meeting Information Page 5

President Rick Cutaia ............................... 2 Mopar WD Meeting 2014 .................. 3-4 Doug Craig Joins LORD Corp ............... 5 SEMA Show Registraition Opens ......... 7 California Legislations Pits Insurers Against Automakers ........................ 9 &12 MMG Supporting Vendors .............10-11 Autobody News........................................13

Marchionne Q&A: CEO Discusses Alfa, aluminum and UAW Wages Pages 6-7

ADP ......................................................14-15 Mopar .........................................................16 Magneti-Marelli ......................................17 FenderBender/Ratchet+Wrench.........18 Reynolds & Reynolds..............................19 OEConnection ....................................20-21 Elite Extra...........................................22-23 Katzkin .......................................................24

Wildfire Threat Eases after 20K Evacuations in North County San Diego Pages 8-9

UPS .............................................................25 Federal Lawsuit Filed Against 7 Insuers Alleging Conspricy ...........................26-27 Mass.ADALB Issues Advisory Ruling on Video Use ............................................27-28 Mass Fines Geico $275K .......................29 2014 MMG Committee..........................30

The exchange of information by like size dealers in a non-competitive environment.

Mopar Masters Guild


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May - June 2014

From the Desk of MMG President Rick Cutaia Hello all. I hope while reading this edi on of the Newsle er everyone is doing well. Can you believe it is May and we are almost half way through 2014? Where does me go and when did me speed up? Time when looked up in Wikipedia defines it as: “a dimension in which events can be ordered from the past through the present into the future”. Like most of you I find it harder and harder to balance work and personal life with the ever increasing and demanding work schedule that we all endure. It just seems that me has definitely sped up. I can remember when me just used to drag on and on and as my wife Erica reminds me constantly, my AARP card will be in the mail soon!!!! How can that be? Time is the one thing we can’t get back and is the most precious thing we have working 10-12 hours a day Monday thru Friday and like most of you Saturdays, more o en than not. It just makes it difficult to spend me with our spouse, children and grandchildren. So what are you doing to make me to be with the ones who are most important in your life? I wish I had the answer to this tough ques on. I know being a husband and father of 2 there just does not seem to be enough me in the day to accomplish all the things that need to be done in 24 hours. As the saying goes we all should slow down and stop and smell the roses every once in a while. Just a reminder to register for our Fall Chrysler Service and Parts Managers 20 Group training class scheduled for August 18/19 in Pon ac MI. We are also going to meet with Mopar at this mee ng so get registered soon as this will fill up! Here is the course code SPF2G4IL Sincerely, Rick Cutaia, MMG President Rick.cutaia@hendrickauto.com

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Mopar WD Meeting at Chelsea Proving Grounds 2014 SubmiƩed by Rick Monteiro

Mopar invited Dealers to a end the WD – Dealer Welcome Recep on and Mee ng May 8th & 9th, 2014. The goal of this mee ng was to strengthen the Mopar-WD-Dealer partnerships by focusing on the big picture of developing solu ons to grow sales with the WD customer. Mopar opened the mee ng with a welcome recep on Wednesday evening in the Sky Ballroom of the Wes n at Detroit metro Airport. This convenient loca on made flying in and out of Detroit easy. That night’s social mixer gave us an opportunity to enhance rela onships with our WD’s , Mopar, and Dealers in a non-competi ve environment. This started a free flow of strategic informa on that will be very beneficial in growing this significant opportunity. On Thursday we traveled via motorcade to the Chelsea Proving Grounds west of Ann Arbor, Michigan. The Chrysler Proving Grounds is an industry leader in engineering, valida on and tes ng services. Their skilled staff of engineers, mechanics and technicians, combined with state of the art facili es, offer engine and powertrain dynamometer tes ng, stress and durability development, energy management development, hybrid and electric vehicle ba ery tes ng, full scale aero-acous c wind tunnel analysis and emission and fuel economy tes ng, in addi on to more than 7,500 acres of proving grounds with over 150 “lane miles” of road. More informa on on CPG can be found here h p://www.allpar.com/corporate/chelsea-proving-grounds.html This collabora ve business mee ng was led by host Larry Benitz, Mopar’s Senior Wholesale manager and coordinated by Greg Sielicki Mopar Wholesale manager. The presenta on reviewed the success we have enjoyed since the incep on of the WD program and a brain storming session for future enhancements. WD’s increased sales 35% year over year to $27 million up from 2013’s number of $20 million. One of the brain storming opportuni es discussed was deeper penetra on into the fleet market, leveraging the WD’s large por olio of parts that now includes Mopar Parts. Continued on Page 4

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Continued from Page 4 In the a ernoon our group headed out to the test track to par cipate in a Ride and Drive event including the thrill ride of a life me traveling around the 32 degree banked track @151 MPH in a Jeep! Granted it was a Grand Cherokee SRT8 with a professional driver at the wheel but imagine the adrenaline rush riding in a Jeep where you can see over the guard rail going real fast. This was followed up with a Wrangler trail ride over the Lyman Trail and concluded with test drives of many of the new vehicles including the Chrysler 200. While out on the test tracks we could see many new prototypes and models including the Jeep Renegade, Alfa Romeo 4C and camouflaged 2015 Challengers running through their tes ng.

Our evening concluded with a dinner at the trendy Gandy Dancer Restaurant, a converted old Amtrak train depot. This restaurant is in the shadow of the Michigan Stadium known as “The Big House”. We were able to recap the day’s events over good food with our gracious hosts and build our rela onships with our partners. Thanks Mopar.

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts

2014 Chrysler Service & Parts Managers 20 Group Meeting Information The 2014 Chrysler Service & Parts Managers 20 Group Mee ng is right around the corner. Make your reserva ons A.S.A.P. Space will be limited! The Course Code in Chrysler Academy is: SPF2G4IL Dates & Times: 8/18/14 – 8:00am – 4:00pm 8/19/14 – 8:00am – 12:00pm Hotel Info: Marrio Centerpoint 3555 Centerpoint Parkway Pon ac, MI 48341 248.253.9800

Doug Craig Joins LORD Corporation LORD Corpora on has announced Douglas Craig has joined the company as technical applica on engineer & collision industry liaison. With more than 25 years of experience in the automo ve repair industry, Craig has extensive knowledge developing procedures for effec ve repair of damaged vehicles. Prior to joining LORD, he was the collision repair manager for the Chrysler Group, where he was responsible for collision damageability and repairability concerns on all Chrysler Group products, including repair standards such as the global usage of weldbonding for all welded panel replacements. In his role with LORD, he will be providing technical exper se to support the Fusor A ermarket Repair business. “We are honored to have Doug join our team,” said Julie Miller, global market and business development manager at LORD Corpora on, “His knowledge, experience, and passion for the collision repair industry will be a valuable asset to LORD.” Craig holds a Bachelor of Arts in economics and sociology from the University of Michigan, and he is member of the Society of Automo ve Engineers Collision Repair Commi ee and Service Development Technical Steering Commi ee. Source: www.collisionweek.com

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Marchionne Q&A: CEO discusses Alfa, aluminum and UAW wages Fiat Chrysler CEO Sergio Marchionne has faith in Alfa Romeo and doubts about aluminum-bodied pickup trucks while con nuing to oppose the long-term viability of two- er UAW wages. These comments came in response to ques ons from analysts following the presenta on of his company’s five-year business plan today: On planned growth in North America: Growth in NAFTA “does assume a near perfect expansion of the brands. We’re s ll going up a million cars from 2014-18. It’s a big number. If there’s one thing we should have been able to deliver on the presenta ons is the clarity of the brands. We now have brands in the marketplace that are not bu ng heads.” On UAW labor agreements: “I’ve always been of the view that the two- er wage structures are unsustainable in the long term. We need to freeze the er ones and make them a dying class. I don’t mean that literally. I object violently to the no on of en tlement in the wage structure. That’s something that is incredibly unwise.” On a broader use of aluminum in pickups: “We’re going to watch with some intensity the launch of the [Ford] F-150. We internally have reserva ons about whether aluminum is the way to go on the truck side. I think the use of aluminum in our world is be er used on other products other than the pickup.” “We can make aluminum in 2017.” On pricing in North America: “I’m not concerned about capacity chasing demand. The pain of the bankruptcies for both ourselves and GM are both too close. We all know what happens when you start those kinds of kamikaze gains, when there is no winner.” On pickup incenƟves: “Other people may be having addi onal problems jus fying their investment in their pickup truck. If you ask me why I didn’t follow GM around that pricing curve, it’s because I didn’t have to.” On expanding the Chrysler brand and reducing Dodge: “Co-mingling Dodge and Chrysler would have cost us a lot of share. A mass market brand which is universal in applica on, that combina on doesn’t work in our view.” On the potenƟal sale of Ferrari: “The righ ul owners of [Ferrari] are the shareholders of Fiat. All of them. They’ve waited long enough, haven’t they?” Continued on Page 7

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts Continued from Page 6 On a mid-sized pickup for North America: “We’ve gone through this issue now for five years, and we can’t flip the frame right.” On the potenƟal for a Jeep branded pickup: “You might get that, too, if you press real hard. That was a different animal. It was a Jeep. Jeep can do a lot of things that other brands cannot do.” On the size of the investment to re-establish the Alfa Romeo brand: “I would invest in a greenfield to revive Alfa. It’s a great project. Those brands that are between a mass market and a premium brand don’t have the legs. You need the Alfa DNA.” On recalls: “I think you’re going to see a heightened level of sensi vity on this issue. There will be cases where people will go the extra yard,” because of heightened sensi vity to recalls. On whether there was a beƩer use of aluminum in Chrysler’s porƞolio than on the next generaƟon Jeep Wrangler: “No.” Source: Larry P. VellequeƩe – AutomoƟve News

SEMA Show Registration Opens Registra on to a end the 2014 SEMA Show is now available online. The annual trade show for the automo ve accessories market is set for Tuesday-Friday, November 4-7, 2014, in Las Vegas, Nevada. During registra on, a endees will be able to sign up for special events and seminars, including those offered by the Society of Collision & Repair Specialists (SCRS), Tire Industry Associa on (TIA), and more. Approved a endees who register before the early deadline in October will receive their badges in the mail. “There are many advantages to registering early for the SEMA,” said Peter MacGillivray, SEMA VP of events and communica ons. “Early applica on expedites the registra on process, which is the first step to developing a personal plan for the Show. Whether you’re an exhibitor, buyer or media, having a plan in advance of the event is the best way to ensure success.”

Source:www.collsioneweek.com

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May - June 2014

Wildfire Threat Eases after 20,000 Evacuations in North County San Diego Ar cle by Rick Monteiro

So you want to live in Paradise? The fire season just started and we were reminded again that the Eden of Southern California does come with a heavy price tag. Jack Powell Chrysler Jeep Dodge Ram is located half-way between this apartment building and the fire in the picture. This picture is from 7 miles away so you can imagine the immense size of this tragedy. The Escondido Auto Park dealerships along with 20,000 other proper es were ordered to evacuate the fire area on Wednesday May 14th. We ordered all Service and Sales personal to evacuate the facility since the smoke was so dense. The Parts department on the other hand was a li le different. We s ll had 10 delivery drivers on the road, so my wholesale advisors and dispatchers stayed to help route them around the danger areas. We kept a close eye on the day’s events via the television and frequent neighborhood tours monitoring the fires status. Since most of our wholesale customers were unaffected by the fires we were not only able to maintain our safety but rang up another $10K in sales of Mopar parts that a ernoon. Our final driver returned about 5:45PM and we were able to get everyone home safely, that is except for the 5 employees that were also under home evacua on. They were all able to get to the sanctuary of friends or families homes to watch the events from afar and pray that their homes would be spared. I’m happy to report that no one at the dealership lost a home unlike the Witch Fire of 2007. Some of you long me MMG magazine readers may remember my ar cle on the Witch Fire of 2007. I am here to tell you this was a minor event compared to that one. Back in 2007 San Diego County ci zens lost over 2,400 homes. Continued on Page 9

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Continued from Page 8 This does not diminish the devasta on to the 4 dozen or so families that lost homes this year but our ci zens, Emergency agencies and Government learned their lessons in 2007 and they were prepared for this fire. I am also happy to report that Jack and Judith Powell’s home was spared aging this year. In 2007 firefighters made 2 helicopter water drops directly on his home causing immense water damage. This me they only lost the back yard of fire resistant landscaping. Having grown up in Southern California and living through more fires than I care to remember. I can tell you that this was most aggressive offensive fire fight that I have ever seen. The teams involved saved countless homes and business property. It easily could have been so much more devasta ng if they didn’t fight this monster with the aggression they did. I want to commend all the local, state and federal firefighters and agencies involved. We are safe again in Paradise thanks to you.

California Legislation on Vehicle Data Access Pits Insurers Against Automakers Proposed Consumer Vehicle Informa on Choice and Control Act would require vehicle manufacturers to disclose data generated by vehicles and provide registered owners access and the right to distribute to 3rd par es prohibits data from being downloaded without permission of owner. California Senate Bill 994 (SB994), the Consumer Vehicle Informa on Choice and Control Act, introduced in February by Senator Bill Monning, would require a manufacturer of any new motor vehicle sold or leased in this state on or a er January 1, 2016, that generates or collects vehicle informa on to disclosure to the registered owner the genera on and collec on of that informa on. The bill also requires manufacturers provide access to the data to registered vehicle owners and the ability to access and communicate the data to third par es. Access to telema cs informa on is seen as crucial for the con nued development of pay-as-you drive insurance products and its evolu on into pay-how-you-drive, that takes into account more detailed driving behavior enabled by access to sensor data available in modern vehicles. On March 18 Senator Monning was joined by the Automobile Club of Southern California, AAA of Northern California, consumers, and business leaders to draw a en on to the bill before the Senate Transporta on and Housing Commi ee. The bill was set for a hearing on April 8. “Our cars are quickly becoming mobile computers, and while this technology provides several important benefits to consumers, it is impera ve that there are basic safeguards in place to ensure consumers can decide who has access to their data,” said Monning. “The modern connected car can greatly improve safety, enhance Continued on Page 12

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Our Supporting Vendors: Support those who support you.

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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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May - June 2014

Continued from Page 9 convenience and lower costs, but it can also tell automakers other personal informa on that consumers should have more control over. SB994 will provide car owners disclosure, access, and choice when it comes to their car’s informa on.” “On behalf of 10 million California consumers, the AAA clubs believe car owners should have basic rights in controlling their own data,” said Alice Bisno, Senior Vice President of the Automobile Club of Southern California. “Just like a smart phone or computer, consumers should be allowed to know what informa on is being collected and decide who has access to their informa on. As more cars become connected cars, and as more informa on gets transmi ed to carmakers, this issue needs to be addressed now.” Last year, AAA surveyed their members and other consumers. 79 percent of the respondents agreed that “consumers always should be able to decide if informa on generated about their car can be shared and with whom.” 85 percent believed that we should have “laws to protect consumers’ right to their car informa on.”

Automakers oppose legislaƟon Vehicle manufacturer associa ons are opposing the legisla on. In a statement Michael J. Stanton, President and CEO of the Associa on of Global Automakers Global Automakers’ explained, “Global Automakers is disappointed that AAA has unilaterally introduced SB994, a bill that is unworkable. AAA has not done their homework to understand what auto manufacturers are already doing to protect consumers and their data.” “The bill sets unrealis c technology requirements. Through this legisla on, AAA is manda ng automakers to re-design vehicle electronic systems to allow open access to its safety and telema cs data to any third party. The technology AAA would require under SB994 does not currently exist. Even if it could be developed, there is no way to ensure that vehicle owners and drivers are sufficiently protected from cyber-a ack,” con nued Stanton. The statement concluded, “The aim of SB994 is to protect AAA, not consumers. We strongly urge the legislature to reject this bill.” The Alliance of Automobile Manufacturers CEO Mitch Bainwol went further calling the legisla on SB994 “AAA Insurance Data Grab” bill. “’AAA’s Data Grab’ is a dangerous gambit to gain access to motorist data to share across its 50 affiliates for commercial purposes. AAA would also be able to gain access to driving behavior relevant to their insurance policies,” stated Bainwol.

Source: www.collisionweek.com

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May - June 2014

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ADP’s Service Connect Mobile Stay connected with ADP’s Service Connect Mobile Get ADP Support on Your Android, iPhone, iPad or other Apple/iOS Device With features and navigation optimized for your mobile device, you can now access all the time-saving features of ADP’s Service Connect from wherever you are. Use Service Connect Mobile to: ƒ Review Cases: Review open cases for status updates ƒ Open New Cases: Create ADP Support cases ƒ Search for Knowledge: Access ADP’s improved Knowledge Search for helpful information and answers to your support questions ƒ Receive ADP Alerts: Keep current on important information ƒ Concierge: Submit requests directly to your ADP Client Account Manager (CAM) ƒ Update Settings: Keep your personal or dealership information current

Download the free app now! THREE EASY STEPS IN 30 SECONDS! Once your Dealer Management System (DMS) has been updated to the SX074C release of Service Connect, all you need to do is: 1. Download the app from the iTunes App or Google Play stores. Look for ADP Service Connect. 2. Create your PIN and enable the app. ƒ Find your System ID in the System Information panel of your Service Connect desktop. ƒ From your Service Connect desktop panel click the gear symbol next to System Information. The My Contact Information panel will appear. ƒ Enter a 4-8 digit PIN of your choice in the Mobile PIN field. 3. Go Mobile! Enter your System ID, username and PIN on the sign-in screen of the mobile application.

Create and enter a 4-8 digit mobile PIN.

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“Service Connect Mobile is great! You mean I can use this on the beach in sunny Florida? That’s an app after my own heart!” Ted Jurick, System Administrator Joe Rizza Acura, Orland Park, IL

ADP Dealer Services, Inc. / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 © 2013 ADP Dealer Services, Inc. / ADP is a registered trademark of ADP, Inc.

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May - June 2014

SHOWCASE YOUR SERVICES THIS SUMMER INTRODUCING ALL-NEW EXPRESS LANE FLOOR MATS Next time you service an Express Lane customer’s vehicle, you’ll want to leave one of these floor mats in place. The messaging reminds the customer that Mopar Express Lane oil changes are “Done Fast. Done Right.” and assures the customer that they’ve received the most professional service. They’re great for use during test drives, as well. Available in packages of 250.

SHOW HOW YOUR PRICE IS RIGHT No one will mistake your dedication to providing competitive prices when they see this newly redesigned Service Menu Board. There’s room for 12 of your most popular services (25 service titles available), with places for your price and those of any competitor. Or, you can display both your car and truck prices. An openly displayed Service Menu Board shows that you’re providing full access to your service pricing, with no hidden charges or surprises.

EXPRESSLANE EXPRESSLA S NE N FAST F AST OIL CHANGES & MORE E DONE FAST! DONE RIGHT! ®

©2014 Chrysler y Group p LLC. All Rights g Reserved. Reserved. Mopar p is a registered reg gistered trademark of of Chrysler y Group p LLC. LLC.

CHANGE POSTERS IN SECONDS WITH POSTER GRIP FRAMES

MAKE YOUR MESSAGE STAND OUT WITH POSTERS

Changing posters has never been easier than with Poster Grip Front-Loading Frames from the Service Drive Store. All four springloaded frame rails open from the front without having to remove the frame from the wall. The durable aluminum construction, with moisture-resistant backs, mean Poster Grip frames will last for years and can be used indoors or outdoors. The ease and convenience of Poster Grip snap frames ends the hassle of poster changing, allowing you to quickly change posters to keep promotions current. Can be mounted vertically or horizontally.

The Service Drive Store offers a wide variety of posters that can be placed throughout your dealership to display your dealership capabilities, advertise in the Service Lane, and promote current service specials. Paired with a Poster Grip Frame, you have a compelling message that can be hung wherever your dealership sees the most traffic. Choose from the following messages: UÊ-iÀۈViÊEÊ/ˆÀiÊ i˜ÌiÀ

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©2013 Chrysler Group LLC. All Rights Reserved. Mopar is a registered trademark of Chrysler Group LLC. Printed in U.S.A.

©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.

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17

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©2014 Chrysler Group LLC. All Rights Reserved. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC. FIAT is a registered trademark of Fiat Group Marketing & Corporate Communication S.p.A., used under license by Chrysler Group LLC. Magneti Marelli is a registered trademark of Magneti Marelli S.p.A. Printed in U.S.A.

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May - June 2014

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Leaders in the Sale of Quality Mopar Parts

“Gross labor sales are up 130%”

19

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 6/14

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May - June 2014

DON’T LET ONLINE PARTS SALES PASS YOU BY. Did you know? • • • •

Online retail parts buyers represent a $5 billion opportunity in 2014 Out of approximately 250 million part searches that are conducted every month, only 5% go to OEM dealerships. 70% of online buyers use parts sites to search On eBay Motors, 2 parts or accessories are sold per second

Don’t let this opportunity pass you by! OEConnection has solutions to help you reach online buyers.

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts

21

• Makes it as easy as 1-2-3 to sell parts on eBay Motors • Experience huge time savings from trying to list parts on eBay yourself! OEConnection will take care of the details to help you sell more parts! • Complete set-up in as little as two hours of your time! Our award-winning Customer Care team will assist you throughout process • Upload the list of parts you wish to sell on eBay Motors • Choose the pricing for those parts • Start selling! Orders will come through MarketplaceDirect, into your OEConnection system. • Ship the parts to the buyer once the order is complete.

• Unique, customizable dealer-branded storefront for selling parts to online buyers • Full Chrysler electronic parts catalog and illustrations, including Mopar • VIN filtering, allowing customers to order the right part, the first time • Your dealership branding • Customizable pricing rules for Chrysler and Mopar parts • Process orders through the OEConnection system as you currently do for CollisionLink and RepairLink • Customer promotions including order discounts and free shipping • Multiple payment options, including credit card, PayPal and dealer direct

• • • • • • • •

Search engine visibility to every part in your inventory Part-specific visibility on Google, Bing and Yahoo means your parts will be found by buyers who need them and are looking for them Enables dealers to compete with the aftermarket online Cost-effective marketing of you entire inventory online Tell buyers you have their parts on the shelf and take orders 24/7 Parts found in natural search results, not through pay-per-click or paid search Zero set-up required No maintenance required – EasyParts.com handles it all!

For more information, call 330-523-1923 or visit www.OEConnection.com/retail

Photo Credit: blueone / 123RF Stock Photo

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May - June 2014

An investment with a proven return. Elite EXTRATM is an investment that has a proven return. We’ve crunched the numbers using data from several clients and on DYHUDJHPRVWRIRXUH[LVWLQJFOLHQWVUHDOL]HGWKHLUUHWXUQRQLQYHVWPHQW 52, ZLWKLQWKH¿UVW7+5((0217+6RIXVLQJLW How do we do it? The EXTRA routing and tracking system transforms antiquated paper-based and phone call-dependent processes into DXWRPDWHGDQGLQWHJUDWHGWUDI¿FFRQWUROFHQWHUVLQFUHDVLQJSURGXFWLYLW\IRU\RXUGLVSDWFKHUVDQGGULYHUVZKLOHDOVRUHGXFLQJ vehicle and fuel expenses.

“...EXTRA didn’t create revenue, it cut expenses, mainly human and fuel resources. Today I’m doing more volume with only a marginal increase in expense. Without EXTRA I can’t imagine spending my way into more return. We are earning more revenue because we are better, faster and different.� Rick Monteiro Parts Director Jack Powell Chrysler Jeep

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts

23

Sign-up for our FREE Webinar,

Streamlining Your Deliveries. See what dozens of your fellow MOPAR Masters Guild Members are using to help streamline their deliveries, courtesy shuttles, and outside sales routes.

Tuesday, June 24 11:00 A.M. CDT Space is limited.

Or visit www.eliteextra.com/webinar

EAU CLAIRE DENVER | MILWAUKEE | OMAHA | SAN FRANCISCO | WASHINGTON D.C.

2985 58th Street | Eau Claire, WI 54703 | 715.874.2985

1.888.484.8729

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May - June 2014

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts

25

70% of Shoppers Prefer Buying Auto Parts Online Are they buying from you? UPS can help Chrysler dealers tap into this expanding channel for greater e-commerce growth and profits. Provide a better customer experience with UPS delivery and returns options. Customers can reroute or reschedule their home parts deliveries with UPS My Choice® and experience faster and more convenient returns with preprinted return labels. Keep efficiency up and costs down with UPS services. UPS delivers earlier to more businesses and ZIP Codes than any carrier and can match transport mode to delivery need to help save you money. One UPS driver for all deliveries and pickups also minimizes interruptions in your day. Increase productivity with UPS technology solutions. Customize shipping labels to promote offers, build brand and reduce marketing spend. Process more parts shipments in less time with automated data input. And help manage customer expectations through end-to-end visibility and email alerts.

For more information Contact UPS at 800-567-9989 or visit the Chrysler MarketCenter site within DealerConnect.

Source: UPS Pulse of the Online Shopper™, A Customer Experience Study: Automotive Parts & Accessories Buyers, October 2013 © 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

14UP23033_mopar ad_031814.indd 1

3/20/14 1:16 PM

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May - June 2014

Federal Lawsuit Filed Against 7 Insurers Alleging Conspiracy to Control the Cost of Collision Repairs Repair facility alleges viola on of Racketeer Influenced and Corrupt Organiza on Act, Fraud and Unjust Enrichment by the largest U.S. insurers. Seeks class ac on status. A lawsuit brought by a Pennsylvania-based collision repair facility was filed April 30 in the U.S. District Court for the Northern District of Illinois, Eastern Division, naming State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Na onwide and defendant insurers alleging they illegally conspire to control the collision repair process and the cost of repairs. The suit, Crawford’s Auto Center v. State Farm et al, also names USAA, Travelers and American Family as conspirator insurers, though not defendants. The plain ff seeks to have the suit granted class ac on status represen ng any repair facility that has done business with the defendant insurance companies since January 1, 2006. According to the complaint, “Defendant Insurers and Conspirator Insurers, through various means but, in parcular, their DRP rela onships, have created an ar ficial market rate for repairs – the prevailing rate – that has been imposed upon repair facili es throughout the country (DRP and non-DRP), and has enabled Defendant Insurers and Conspirator Insurers to ar ficially suppress compensa on to repair facili es for insured collision repairs.” In a sweeping 164 page complaint, that describes in detail how insurance company direct repair rela onships work as well as the es ma ng process, the plain ff alleges that each of the defendant insurers violates the Racketeer Influenced and Corrupt Organiza on Act (RICO) by opera ng a separate enterprise in conjunc on with the informa on providers, Audatex (AudaExplore), CCC or Mitchell, that they use internally, or require or recommend to their DRP networks. The complaint alleges that “Defendants Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Na onwide, together with the respec ve Informa on Providers with which they have a standing rela onship, have each formed separate associa on-in-fact enterprises within the meaning of 18 U.S.C. § 1961(4). Thus, Allstate has formed an associa on-in-fact enterprise with CCC (the “Allstate Enterprise”), GEICO has formed an associa onin-fact enterprise with CCC (the “GEICO Enterprise”), Farmers has formed an associa on-in-fact enterprise with CCC (the “Farmers Enterprise”), Progressive has formed an associa on-in-fact enterprise with Mitchell (the “Progressive Enterprise”), Liberty Mutual has formed an associa on-in-fact enterprise with Audatex and CCC (the “Liberty Mutual Enterprise”), and Na onwide has formed an associa on in- fact enterprise with CCC (the “Na onwide Enterprise”).” “In addi on, defendant State Farm has formed an associa on-in-fact enterprise within the meaning of 18 U.S.C. § 1961(4), comprised of State Farm, its respec ve Select Service facili es around the country, Mitchell and Audatex (the “State Farm Enterprise”). The complaint states that, “Defendant Insurers conducted the respec ve enterprises through a pa ern of racketeering ac vity by fraudulently establishing and misrepresen ng the prevailing rate for collision repairs to vehicles covered by insurance, including: (1) hourly labor rates; (2) reimbursement for Continued on Page 27

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Leaders in the Sale of Quality Mopar Parts

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Continued from Page 26 “paint and materials”; (3) the scope and extent of compensable repairs; and (4) parts prices.” The injury to plain ffs is “under-compensa on for collision repair work and services on vehicles covered by insurance, including the suppression of hourly labor rates, suppression of compensa on for “paint and materials”, suppression of compensa on for parts, and suppression of compensa on for the scope and extent of the repair procedures performed. The complaint also alleges that “Defendant Insurers have made false and misleading representa ons of fact, and concealed and omi ed facts regarding the prevailing rates for insured collision repair services and compensable repair procedures.” Dick Luedke, spokesman for State Farm, in a response to CollisionWeek said his company believes the suit has no merit, like in other suits filed by collision repairers in recent months. “This suit has no merit and in no way accurately describes the business rela onship State Farm has with thousands of body shops across the country,” stated Luedke. Rick Tuuri, vice president of industry rela ons for AudaExplore, a Solera Company, stated, “AudaExplore is currently reviewing the lawsuit and is not named as a defendant. Therefore, it would not be appropriate to offer a comment at this me.” Requests for comment from CCC and Mitchell were not received by deadline. Source: www.collisionweek.com

Massachusetts ADALB Issues Advisory Ruling on Video Use during Appraisal Process The Commonwealth’s Auto Damage Appraiser Licensing Board issues advisory ruling sta ng that using “quality video or digital images” to prepare an appraisal sa sfies regula on. Shops concerned about how ruling could impact consumers and repair facili es. The Massachuse s Auto Damage Appraiser Licensing Board (ADALB) approved an Advisory Ruling (2014-01) at its May 20 board mee ng that seeks to clarify the use of video or digital imaging technology to se le claims. Insurance companies have launched applica ons recently allowing their customers to file claims via a smart phone applica on. In March, for example, Esurance announced it was offering real- me video appraisals for consumers using it’s mobile applica on. Esurance received approval to begin selling insurance in Massachuse s last year. The exis ng regula on in Massachuse s (212 CMR 2.04) details the procedures for conduc ng appraisals. In Sec on D, Requirement of Personal InspecƟon and Photographs the regula on states: “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspec on in making the appraisal. As part of the inspec on, the appraiser shall also photograph each of the damaged areas.” Continued on Page 28

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May - June 2014

Continued from Page 27 The advisory ruling states: The Auto Damage Appraiser Licensing Board has passed a mo on agreeing that an appraisal conducted by a licensed appraiser via review of quality video or digital images with documenta on meets the requirements of 212 CMR 2.04(1)(d) “The appraiser shall personally inspect the damaged motor vehicle and shall rely primarily on that personal inspec on in making that appraisal….” The ruling became effec ve upon pos ng on the ADALB website. According to Carl Garcia, owner of Carl’s Collision Center in Fall River, Mass. and a member of the ADALB, said understanding how new technologies could improve the claim process is a key driver for the new ruling. “Last year, a orneys at the Massachuse s Division of Insurance dra ed a detailed, five-page opinion that basically said that a personal inspec on was not a physical inspec on so virtual technologies could be used under the exis ng regula on,” explained Garcia. “In my view, the advisory ruling shows that we’re open to new technologies but we have to be sure they will benefit consumers and improve the claim process. This opinion moves us in the direc on.” Garcia cau oned, however, that the requirement for documenta on of how video or images were used to create the appraisal is an important part of the ruling. “Quality video and images along with documenta on is important. The capabili es of smart phone can vary impac ng the photos they take,” said Garcia. “Anyone using the technology should thoroughly document how any technology was used and how it supports the appraisal.” Rick Starbard, owner of Rick’s Auto Collision in Revere, Mass. and a past-president of both the Alliance of Automo ve Service Providers of Massachuse s (AASP-MA) as well as the Na onal AASP organiza on, is concerned that the ruling might open the door to increased steering by insurance companies in the Commonwealth and create problems for consumers. “I take a ton of photos in my business and I s ll find that I o en need to go back out and look at the vehicle,” said Starbard. “I’m also concerned that this could make it easier for an insurance company to steer work or just use the shop as their drive in facility. Now an insurer will just say ‘Take the car to this shop and they can shoot some photos and send them to us.’ to get the car to the shop they want.” According to Starbard, AASP-MA will focus on working with the Massachuse s Division of Insurance to revise the regula on to clearly define what is allowed. “Having this ruling when they are going to need to make a regulatory change does not make sense,” said Starbard. “I’m concerned that insurers will use this ruling to jus fy using a couple of smart phone pictures from consumers to se le the claim. The ruling leaves a lot open to interpreta on that needs to be addressed in the regula on.” Source: www.collisionweek.com

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts

29

Massachusetts Fines GEICO $275K for Inconsistent Accident Reporting Massachuse s Commissioner of Insurance Joseph G. Murphy announced an agreement with Government Employees Insurance Company and GEICO General Insurance Company resolving inconsistencies in its repor ng of accident informa on to state agencies and policyholders. Under the terms of the agreement, GEICO has agreed to modify por ons of its current business procedures, implement new procedures, and pay a $275,000 fine. An addi onal $275,000 fine has been suspended pending a future re-examina on by the Division of Insurance. “Today’s announcement is the result of our ongoing monitoring of the insurance marketplace to ensure that consumers are receiving the benefits to which they are en tled and companies are compe ng on a level playing field,” said Commissioner Murphy. “The company’s ac ons created disrup ve issues within the auto insurance marketplace in Massachuse s.” The Division nego ated this agreement with GEICO following a market conduct examina on of GEICO’s pracces since the company began offering private passenger automobile insurance to Massachuse s drivers in May 2009. The examina on specifically iden fied GEICO’s inconsistency in repor ng claim informa on and providing operators proper no ce of at-fault accident determina ons and their rights to appeal those determina ons to the Division’s Board of Appeal as areas requiring a change in business prac ces. The company will no fy individuals affected by these ac ons, including consumers who are no longer insured by GEICO, within 60 days. The se lement requires GEICO to amend claim informa on repor ng, implement new business prac ces to ensure operators determined at-fault receive no ce of that determina on and their rights to appeal, and warrant that data reported to the Merit Ra ng Board is effec ve and mely. GEICO will be subject to ongoing monitoring and a re-examina on in the next two years, a er which the Commissioner will levy or rescind the second fine. Under the terms of the agreement, GEICO must also: 

Properly report past claim informa on to the Merit Ra ng Board and other insurance carriers for claims that occurred between May 18, 2009 and June 1, 2013.



Provide no ce of at-fault accident determina ons and the right to appeal those determina ons to operators not previously no fied of GEICO’s at-fault accident determina ons between May 18, 2009 and June 1, 2013. Operators affected by this inconsistency in GEICO’s prior business prac ces will be allowed to appeal those determina ons to the Division’s Board of Appeal. Consumers who elect to appeal will have their $50 filing fee reimbursed by GEICO.



Implement new business prac ces to ensure that operators determined to be at-fault for accidents receive mely no ce of the determina on as well as an explana on of their rights to appeal the determinaon.



Rou nely audit the effec veness of new business prac ces designed to prevent errors and report the results to the Division over the next two years.

Source: www.bodyshopbusiness.com

The exchange of information by like sized dealers in a non-competitive environment.


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May - June 2014

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

MMG Magazine May-June 2014  

News from the Best of the Best. The Mopar Masters Guild. Leading the Best Mopar Dealerships in the World since 1992 with Innovative Ideas.

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