Leaders in the sale of quality Mopar Parts.
Mopar Masters AƩend Chrysler Performance Group in San Diego Page 9
Sept-Oct 2013 In This Issue President Steve Hofer............................... 2 Mopar Masters Meet with UPS ............ 3 Torry Pines Hike ....................................... 5 Mopar Masters Meet with ADP........ 8-9 MMG Supporting Vendors .............10-11 ADP ......................................................12-14 Rousseau Automotive .............................15 OEConnection ....................................16-17 Elite Extra...........................................18-19 Mopar .........................................................20 UPS .............................................................21 Magneti-Marelli ......................................22 Autobody News........................................23 Reynolds & Reynolds..............................24 FenderBender/Ratchet & Wrench ......25
NADA 2014 Update Page 7
New York Bills Seek to Make Insurance Mandates Illegal ......................................26 ASA Press Release ..................................27 Success Starts & Ends with
Dan HuƩon: “I Didn’t Know What Energy Was!” Page 6
Leadership ...........................................28-29 Top Scoring SkillsUSA Female Receives Scholarship to NACE..............................29 Lighter Cars Add Weight to Costs .....30 SCRS Issues Position on Mandates.....31 2013 MMG Committee..........................32
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Mopar Masters Guild
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Sept-Oct 2013
Letter from MMG President Welcome to another issue of the Mopar Masters Guild Magazine. This issue features important industry ar cles that I hope you enjoy. Also, with plans beginning to come together we are able to start discussing the annual NADA and Mopar Masters mee ngs events. We are working hard to finalize plans so each member has the best opportunity to join us in New Orleans. In the mean me I would like to speak of some changes that are sure to make this years NADA mee ngs a success. The MMG execu ve commi ee has made a commitment to discuss structural changes for the coming year. These changes will be made to ensure that MMG members and the dealers they represent are ge ng the most out of what the guild offers. In prepara on for these changes, your execu ve commi ee has begun by reviewing past successes. Key elements such as mee ng me with other dealers as well as with Mopar and their senior managers will be at the forefront of any change. The mee ngs at this years NADA event will offer a full day with Mopar. Prior to NADA we will be solici ng our dealer body for key topics so that we can bring greater structure to our me spent with the senior managers from Mopar. We will discuss both the challenges and opportuni es that our dealerships and vendors face today. The execu ve commi ee is also looking at this year’s annual mee ng as a springboard for greater communica on with Mopar. In addi on to a full day of mee ngs with Mopar, we are also commi ed to improving the amount of me members have to discuss business challenges they face. With an ever-changing business environment it is important that the Mopar Masters Guild also look at new opportunies. With changes to the NADA mee ng structure as well as a commitment from Mopar to spend a full day with us, I hope you can commit to a ending this years mee ngs. If you have any ques ons or are curious how rela onships formed through the Mopar Masters Guild might help your dealership, please feel free to contact me.
Steve Hofer
President Mopar Masters Guild shofer@parkchryslerjeep.com
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Mopar Masters Meet with UPS For the third year in a row we were able to have our annual UPS vendor commi ee mee ng with UPS in conjunc on with our fall MMG mee ng, which was held in San Diego on August 3rd-6th. This format has seemed to work well for UPS who gets the benefit of a larger audience and it obviously has advantages for the MMG. We were able to start our me together with a very nice dinner in the Gaslamp district of San Diego at ASTI Italian fine dining on Sunday evening. Most of the MMG Execu ve commi ee and officers that were present at the mee ng, a ended. The food, service and conversa ons were wonderful and it gave us an opportunity to discuss some business in a less formal se ng with Tim Quinne e who travelled alone to the mee ngs this year. Tim Quinne e presented for UPS this year and talked to the group for about 45 minutes a er the close of the training mee ng on Monday. Tim discussed many issues that affect UPS and the MOPAR customers they serve. Many of these opportuni es have been discussed before, such as damage and packaging quality and efforts being pursued jointly with Mopar to ensure we receive damage free merchandise. Those of us that have been around UPS over the past few years have come to understand how scien fic UPS approaches these issues. Tim is quick to acknowledge that some damage is caused by UPS; however, I am truly convinced that this is a very small percent of the damage problem. Most damage can be traced to improperly packaged freight or an insufficient package. We did talk at length about the possibility of UPS LTL partnering with our other vendors that create idle stock transac ons for Mopar dealers. I think UPS sees an opportunity to grow business, and many of us felt it would be of great service to those handling the match programs. We need to enlist the help of all our members in encouraging OEC and ADP Cash Discovery in par cular to examine this possibility. I would love to be able to buy some of the larger, obsolete parts that are further away from my dealership. As we have talked many mes – everything we propose should have a win-win component – I believe this idea meets those criteria! We need to remember the benefits that UPS brings to our dealerships and our Guild and reward them with opportuni es to earn our business when needs arise.
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Chrysler Performance Group Meets in San Diego This past August we had a small turnout for our mee ng due to the me of year. It was suggested we return to the 3rd week of September or later in August for next year. Those of us that did a end par cipated in Useful Idea presenta on, Composite review, and picked a dealership to analyze. We broke into groups and took a page from the Composite and tried to find ways to improve the numbers. It was difficult to find any improvements for this manager. (Mike Mulkins) Instead we learned how we can improve our own opera ons. UPS spent some me with us discussing how they can help us grow our business through logis cs. I recently a ended another Performance Group that our dealership is involved with and found it very produc ve and thought we could incorporate some of the structure they used. Each member has made a commitment to improve one number that is measured in the Composite. That number is recorded at each mee ng and documented un l they a ain the goal. They then pick another goal. The group votes to let them move to another goal if it is determined they cannot reach the goal due to lack of direct control. (I.E. fixed absorp on). Everyone in the group has to par cipate. If a member does not bring a useful idea or does not make the effort to a ain their goals they can be voted out of the group. New members a end four mee ngs before they are voted in. I am not sugges ng we become this formal but we could raise the level of commitment to our mee ng and benefit all that a end. I am looking forward to our next performance group at the Mopar Master Guild Annual Mee ng in New Orleans at NADA 2014. SubmiƩed by Mike Gerber - Rairdon’s CJD
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Torrey Pines Hike SubmiƩed by Ginger Skinner One of the things on my “To Do List” while in San Diego was hiking at the Torrey Pines State Reserve. I was accompanied by Laura Windham and Lyne e Oakes. Lyne e was my co-pilot as we plugged the address into the GPS from our hotel on Harbor Island. We found the Reserve entrance with no problem, paid the entrance fee and were handed a hiking trail map. Twas such a beau ful clear day filled with lovely blue hues from the sky and ocean! Walking towards the Visitor Center you could see that there are a good number of trails with their own unique a rac on; whether it is greenery, animal life, coastal bluffs, beachfront….there’s something you would like to explore for sure! We hiked the Fleming Trail first. I have never seen such clear turquoise blue water in California. It doesn’t get any be er than this and pictures can’t do it jus ce. The trail had mul ple benches where you could just sit and enjoy the surroundings as well. The overlooks/razor points are worth walking to, the views are unforge able. Each vantage point offers a unique view of nature that makes your eyes believe that you are seeing something for the first me! The Beach Trail was awesome and made the trek downhill worth it. The sandstone coastal bluffs are breathtaking. From the beach we climbed south over Flatrock and saw all the gliders taking off over the cliffs at Gliderport. AMAZING! We were running out of steam, hungry and thirsty hiking our way back up from the beach. (Who’s idea was it to hike all five of the trails anyway? Uh, Lyne e’s!) A er 3 ½ hours of hiking, and many pictures later, we drove to Del Mar and found a lovely place to have lunch. We were very impressed with the clean and well maintained trails. I would recommend it even to the inexperienced hiker. Just don’t forget to bring drinking water and sunscreen. Thank you to my hiking buddies for sharing this unforge able experience with me.
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“I Didn’t Know What Energy Was!” Two years ago, Dan Hu on couldn’t imagine running one mile, let alone 13. The Franklin resident weighed nearly 300 pounds and was struggling with high blood pressure, high cholesterol and borderline diabetes. He never considered exercising and only marginally changed his diet to avoid sodium, fat and excess calories. But in 2012, Hu on realized his life depended on making a change. He started walking, then running. Over the course of 1½ years, he lost more than 100 pounds. At the end of September, he’ll take the next step on his path to fitness – he’ll a empt to run the Mill Race Half-Marathon in Columbus, his first long distance race. “People always commented that I had a lot of energy for my size. But I didn’t know what energy was,” he said. “I have never felt be er.” Hu on, 54, has been overweight all of his life, even as a young man. By the me he was 35, he was taking medica on to control his blood pressure. His weight reached 280 pounds. When he started his fitness odyssey, Hu on made small changes. He walked 30 minutes every day, first at a slow pace, then increasing his speed as his body adjusted. S cking to a strict 1500 calorie diet, he gave his body the nutrients it needed without excess. He also gave up all soda. The first 10 pounds melted away, then another 10. “I was very consistent. I can probably count on one hand the days I didn’t walk those first few months,” he said. “A er those first few pounds, I got excited about how far I could take it.” Hu on had support from fitness-minded friends such as Marge Davis, a personal trainer who encouraged him to run with her. He started with a half-mile and admits it wasn’t easy. But he’s stayed with it. Training hard for the past three months, he has run four days each week, pu ng in 20 to 22 miles ge ng ready for the Mill Race Half-Marathon. Though nervous, he feels good about his chances of finishing. Hu on also hopes that his story can help encourage others to make the slight changes that can lead to a healthier life. He didn’t have to go to extreme measures to get healthy; he weighs about 170 pounds today because he commi ed to exercise and proper ea ng. “Everyone can find 30 minutes a day to walk,” he said. “It can be done. You just have to have the willpower to s ck with it.”
Dan & Jamie Hutton
Dan HuƩon is a Past-President of the Mopar Masters Guild. This arƟcle appeared in The Daily Journal, Columbus, IN.
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NADA 2014 is Right around the Corner! It’s that me of the year again when the Mopar Masters Guild begins its prepara ons for our Annual Mee ngs at NADA 2014 which this year is being held in New Orleans, Louisiana!
Our Hotel this year is the Bourbon Orleans Hotel. There is a guest room block and a minimum 3 night stay is required for Friday & Saturday nights. The Hotel has reserved the following guest rooms and rates for the Mopar Masters Guild / Chrysler Performance Group – NADA 2014. Hotel will not guarantee any special requests except those set forth below: Room Block has already been set up within the hotels reserva on system. Room Rates are $229.00 Single/Dbl Occupancy (Extra person in room $30.00) plus state and local taxes. INDIVIDUAL RESERVATIONS: Each individual guest must make his or her own reserva on by calling (866) 513-9744 by 12/3/13. They must iden fy themselves as members of the Mopar Masters Guild or Chrysler Performance Group. All reserva ons must be accompanied by a first night room deposit or guaranteed with a major credit card. Complimentary high-speed internet in all group guest rooms and mee ng space Complimentary Bo led Water in guest rooms Complimentary Welcome Beverage in Bourbon O Bar (1 per registrant) Complimentary Fitness Center Complimentary Local and Toll Free Calls
Full i nerary will follow! Please watch your email for more up-to-date informa on! The exchange of information by like sized dealers in a non-competitive environment.
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Mopar Masters Meet with ADP This year our ADP/MMG commi ee traveled to a different part of the country other than Texas. Ma Parsons, ADP Sr. Director, OEM & Channel Development, inquired about our interest in conduc ng our annual mee ng in Doylestown, PA. He stated that we could have a full day of discussion at our hotel and a half day following to tour Fred Beans Parts warehouse. Having an idea of the breadth and scope of the organiza on, our team agreed to the new venue. Needless to say we were all extremely pleased with the opportunity to spend quality me with ADP representa ves and tour one of the premier parts opera ons in the country. Our mee ng began on Monday, August 26. In a endance for the MMG was; Paul Allred, Stateline CDJR; Andy Reed, Alan Samuels CDJR; and Gerry Oakes, Baxter CDJR. Rick Monteiro, Jack Powell CDJR, unable to join us because of major construc on at his dealership, will join in via conference call later in the a ernoon. Joining Ma from ADP were Kim Saylor, Fixed OPS Product Manager and Melody Anderson, Na onal Sales Manager. A er introduc ons we started off with updates from ADP. Kim Saylor opened with explaining a new development process for ADP. This process called Agile Development will bring smaller releases to our DMS in a more frequent manner. In the past we would have to wait for a big release to be completed before we received all of the benefits of any new development. Kim also spent some me on what the upcoming 1.6.1 release will contain. The release, among other items, will have enhancements to alerts generated by credit overrides and PID errors. Other enhancements are in warehouse management product and a parts tracking feature, separate from Warehouse Management. Future releases will fix some repor ng issues, integrated func ons between payments and accoun ng, parts transfers between sister stores and parts delivery. From my perspec ve It was clear that Kim and ADP are commi ed to making future parts enhancement products best in class. Melody Anderson was up next to inform us about a great product that would help us move more parts. And, who among us, doesn’t want to move more parts! Melody’s first page of her presenta on was tled ‘eBay Made Easy’. For one who has tried the eBay model some years ago, I was a bit confused. I never found anything about eBay to be easy! (Maybe it’s an age thing). A er Melody’s presenta on I realized the tle was appropriate. Melody presented the following detail on eBay: 14 million unique visitors to eBay motors each month; 283 million parts and accessory transac ons on eBay Motors to date; 81% of all parts and accessories sold are new; a part or accessory is purchased every 1 second; an engine component is sold every 26 seconds; a wheel or re is sold every 13 seconds; over 383,000 parts and accessories sold weekly on eBay motors is on a mobile device and it is the most used shopping app on any mobile device. So, for those of us who have had their head in the sand over selling on eBay, this info should help us pull it out! For more detail on this product take a look on page 12 of this issue. The next morning the six of us traveled the short distance to Fred Beans Parts Warehouse where we were greeted by Denny Loux, Dave Wi linger and Mick Padgeon. Before the facility tour we all met in their conference room for further ADP dialog and a presenta on by Dave of special reports they u lize for management purposes. Then we were off for the tour. Continued on Page 9
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Continued from Page 8
What impressed me was the size and scope of the total opera on which represents more than 17 OE manufacturers and employs approximately 250 people. Also, no ceable was how the employees did not seem to be under any stress or anxiety. They all went about their tasks during the peak of the day very methodically and in a professional manner, while gree ng us as we walked by. This is certainly a testament to the ability of the management team at Fred Beans. The ADP/MMG commi ee would like to thank them for spending me during their busy day to show us around their opera on. Our ADP commi ee would also like to thank Ma , Kim and Melody for taking me out of their busy schedules to meet with us and for their support of the Mopar Masters Guild. The Mopar Masters Guild is truly fortunate to have ADP as a partner that provides the highest quality product to help us sell more parts. SubmiĆŠed by Gerry Oakes - Baxter CJD
(L-R) Denny Loux, Matt Parsons, Dave Wittlinger, Mick Padgeon, Melody Anderson, Paul Allred, Kim Saylor, Andy Reed and Gerry Oakes
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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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Sept-Oct 2013
Solution Overview
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Working on increasing your business with all-brand vehicles? Increase your parts department efficiency with a new Magneti Marelli Parts Master!
Magneti Marelli offers 26 product lines and more than 3,000 parts numbers, helping you increase your business with all-brand vehicles. And the best way to increase your business without losing efficiency in your parts department is to take advantage of the new ADP Parts Master Update for Chrysler dealers. Pay one low price per update—this is not a replacement for your existing parts master, but an additional parts master helping you sell Magneti Marelli parts.
Call ADP today to get the new ADP Parts Master Update for Magneti Marelli Parts – 888.424.6342
© 2013 ADP Dealer Services, Inc. / adpdealerservices.com / The ADP logo is a registered trademark of ADP, Inc.
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Sept-Oct 2013
Working on increasing your business with all-brand vehicles? Increase your parts department efficiency with a new Magneti Marelli Parts Master!
Magneti Marelli offers 26 product lines and more than 3,000 parts numbers, helping you increase your business with all-brand vehicles. And the best way to increase your business without losing efficiency in your parts department is to take advantage of the new ADP Parts Master Update for Chrysler dealers. Pay one low price per update—this is not a replacement for your existing parts master, but an additional parts master helping you sell Magneti Marelli parts.
Call ADP today to get the new ADP Parts Master Update for Magneti Marelli Parts – 888.424.6342
© 2013 ADP Dealer Services, Inc. / adpdealerservices.com / The ADP logo is a registered trademark of ADP, Inc.
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The exchange of information by like sized dealers in a non-competitive environment.
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Mopar Masters Guild Magazine
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The exchange of information by like sized dealers in a non-competitive environment.
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Elite EXTRATM ; džƚƌĞŵĞ dƌĂĐŬŝŶŐ ĂŶĚ ZŽƵƟŶŐ ƉƉůŝĐĂƟŽŶͿ ŝƐ ĂŶ ŽŶůŝŶĞ͕ ƌĞĂůͲƟŵĞ ƚŽŽů ƚŚĂƚ ƐƚƌĞĂŵůŝŶĞƐ LJŽƵƌ ĚĞůŝǀĞƌŝĞƐ͕ ǁŚŝůĞ ůŽǁĞƌŝŶŐ LJŽƵƌ ŽƉĞƌĂƟŽŶĂů ĐŽƐƚƐ͘ ydZ ĂƵƚŽŵĂƟĐĂůůLJ ĐƌĞĂƚĞƐ ŽƉƟŵĂů ƌŽƵƚĞƐ ŽŶ Ă ǁĞďͲďĂƐĞĚ ŝŶƚĞƌĂĐƟǀĞ ŵĂƉ͕ ŝŶĐƌĞĂƐŝŶŐ ƉƌŽĚƵĐƟǀŝƚLJ ĨŽƌ LJŽƵƌ ĚŝƐƉĂƚĐŚĞƌƐ ĂŶĚ ĚƌŝǀĞƌƐ͕ ǁŚŝůĞ ĂůƐŽ ƌĞĚƵĐŝŶŐ ǀĞŚŝĐůĞ ĂŶĚ ĨƵĞů ĞdžƉĞŶƐĞƐ͘
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Mopar Masters Guild Magazine
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Elite EXTRATM is an investment that has a proven return. We’ve crunched the numbers using data from several clients and on ĂǀĞƌĂŐĞ͕ ŵŽƐƚ ŽĨ ŽƵƌ ĞdžŝƐƟŶŐ ĐůŝĞŶƚƐ ƌĞĂůŝnjĞĚ their return on investment (ROI) within the ĮƌƐƚ THREE MONTHS of using it. How do we do it? dŚĞ ydZ ƌŽƵƟŶŐ ĂŶĚ ƚƌĂĐŬŝŶŐ ƐLJƐƚĞŵ ƚƌĂŶƐĨŽƌŵƐ ĂŶƟƋƵĂƚĞĚ ƉĂƉĞƌͲďĂƐĞĚ ĂŶĚ ƉŚŽŶĞ ĐĂůůͲĚĞƉĞŶĚĞŶƚ ƉƌŽĐĞƐƐĞƐ ŝŶƚŽ ĂƵƚŽŵĂƚĞĚ ĂŶĚ ŝŶƚĞŐƌĂƚĞĚ ƚƌĂĸĐ ĐŽŶƚƌŽů ĐĞŶƚĞƌƐ͕ ŝŶĐƌĞĂƐŝŶŐ ƉƌŽĚƵĐƟǀŝƚLJ ĨŽƌ LJŽƵƌ ĚŝƐƉĂƚĐŚĞƌƐ ĂŶĚ ĚƌŝǀĞƌƐ͕ while also reducing vehicle and fuel expenses.
Elite EXTRA welcomes MMG back to Eau Claire, Wis. September 27-30. ...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 Dodge
Setting the standard for the delivery of automotive parts.
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GEAR UP FOR SERVICE AND TIRE CENTER SEASON SHOW HOW YOUR PRICE IS RIGHT WITH THE SERVICE MENU BOARD 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.
Service Menu Board 4,6 .. .6# t FBDI
Originally 50% Mopar One reimbursable ÂŽ
PROMOTE YOUR EXPRESS LANE SERVICES WITH THE NEW EXPRESS LANE COUNTER DECAL What better way to brand your Service Technician desk than with this Mopar Express Lane decal? Durable low tack vinyl makes this decal easy to apply to your technician desk or service counter so customers know exactly where to go for “Fast Oil Changes and More.â€? Two size options are offered to ensure a proper ďŹ t for your dealership’s counter/service desk. ÂŽ
Large - Express Lane Service Counter/Desk Decal w Y w t 4,6 .. %$- t FBDI
Small - Express Lane Service Counter/Desk Decal w Y w t 4,6 .. %$- t FBDI
IMPROVE CUSTOMER LOYALTY – RIGHT FROM THE START Back to school is the perfect time to start educating your customers on all your dealership has to offer. The Right From The Start Workshop kit provides all the tools you need to conduct an owner’s workshop that: ments,
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WE WANT YOU BACK Stick with the Specialists for T Maintenance T Repairs T Tires
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The kit includes tried-and-true items like a ip-chart and invitation templates, along with modern tools such as a customizable PowerPoint presentation and dry-erase materials. You receive it all in a single kit, giving you a turn-key option that’s visually compelling and easy to present.
Right From The Start Complete Kit 4,6 .. 1,( t FBDI
Right From The Start Flyer – Pkg. of 50 flyers, two-sided
Right From The Start Brochure – Pkg. of 50 4,6 .. #30 t FBDI
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Leaders in the Sale of Quality Mopar Parts
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Sept-Oct 2013
New York Bills Seek to Make Insurance Co. Parts and Materials Mandates Illegal Proposals seek ban for insurance company requirements for collision repair parts and materials procurement programs. A pair of companion bills before the New York legislature seeks to make insurance company requirements to use specific vendors or process for parts or materials procurement illegal. The bills, Assembly Bill 7234 (A7234) and Senate Bill 5786 (S5786) propose to amend Sec on 1, Subsec on (a) of Sec on 2610 of the New York insurance law that today makes it illegal for an insurer to require a specific repair shop. The proposed language below for the subsec on adds a prohibi on against specifying vendors or processes. The text in all capital le ers includes the proposed amendment. (a) Whenever a motor vehicle collision or comprehensive loss shall have been suffered by an insured, no insurer providing collision or comprehensive coverage therefor shall require that repairs be made to such vehicle in a par cular place or shop or by a par cular concern, NOR REQUIRE A 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. “These bills seek to clearly address within the insurance laws of New York State that insurance company requirements to use specific-vendors should be illegal,” stated Ed Kizenberger, execu ve director of the New York State Automo ve Collision Technicians (NYSACT). “Requiring repair facili es to use an online marketplace to purchase parts or materials based upon the lowest price could force millions of dollars of business to move outside New York State. Repairers should con nue to source parts and materials from vendors they know and trust to best serve the interest of the consumers.” Kizenberger explained that his associa on supports efforts around the country to eliminate insurer mandates. However, while insurers should understand the poten al impact manda ng specific vendors or processes would have on a collision repairer’s efficiency when faced with mul ple mandates, cra ing legisla on that would seek to make the mandates illegal is the only way to assure an efficient market. “Historically, when it comes to mandated products and processes, insurance companies don’t see the impact these requirements have on the industry as a whole,” stated Kizenberger. “When mul ple insurers implement mul ple requirements, everyone loses, and ul mately the consumer is le foo ng the added cost created by the insurance companies that engage in this prac ce.” The bills add a prohibi on against specifying materials purchases, going beyond making the specifica on of parts procurement processes illegal. “We wanted to make sure that the bill would address future concerns for the industry,” Kizenberger added. “There are already examples of insurance companies requiring repair facili es to use specific brands of paint in other parts of the world.” The bills have been referred to the Assembly and Senate’s respec ve insurance commi ees. Source: www.collisionweek.com
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Leaders in the Sale of Quality Mopar Parts
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September 11, 2013 Mr. Ed Rust Jr. ASA Board of Directors Chairman Darrell Amberson, AAM LaMettry’s Collision Inc. Chairman-Elect Donny Seyfer, AAM Seyfer Automotive Inc. Secretary/Treasurer Roy Schnepper, AAM Butler’s Collision Inc. Immediate Past Chairman Ron Nagy, AAM Nagy’s Collision Centers General Director Bob Wills, AAM Wills Auto Service General Director Gary Keyes, AAM E&M Motors Inc. Collision Division Director Dan Stander, AAM Fix Auto Highlands Ranch Mechanical Division Director Bill Moss, AAM EuroService Automotive ASA Staff Executive Director Dan Risley
Affiliate Associations ASA-Arizona ASA-Central New Mexico ASA-Colorado ASA-Georgia ASA-Illinois Mechanical Division ASA-Michigan ASA-Midwest ASA-New Orleans ASA-Northwest ASA-Ohio ASA-Rhode Island ASA-Texas
State Farm Insurance One State Farm Plaza Bloomington, IL 61710
Dear Mr. Rust, The Automotive Service Association (ASA) is the largest and oldest not-for-profit national trade Association in the United States comprised of independent collision and mechanical automotive repair professionals. When ASA was founded in 1951, it committed itself to advancing professionalism in the industry through education, representation and member services. One of its cornerstones was to be an advocate for our members, which remains true today. ASA would like to acknowledge State Farm as one of the first companies in the country to not mandate that a collision repair facility utilize a specific estimating platform. For many years, several top 10 insurance carriers required a specific estimating platform to participate in their direct repair program. In addition, State Farm was one of the first to implement a scoring system that allows Select Service repair facilities to compete against each other in a transparent and real-time environment. These decisions clearly elevated State Farm’s position in the industry as a thought leader and facilitated positive change. In light of the recent announcement of the national rollout of Parts Trader, ASA is taking a firm stance against insurance company mandates that limit a repairer’s right to choose their vendors, distributors and suppliers. Listed are some of the reasons a repair facility would consider when selecting a supplier: service, financial terms, discount, delivery, part quality, return process & policy, e-commerce. Price is not always the most important factor. Anything that negatively impacts a collision repairer’s cycle time and efficiency should be avoided for several reasons. As cycle time decreases, customer service scores improve for both the collision repair facility and insurance company. Increasing cycle time results in increased rental costs. In fact, State Farm has often been quoted as stating that one additional day of rental costs State Farm in excess of $43 million. Restrictions placed on shops that preclude them from using their preferred parts vendors creates a layer of unpredictability and inefficiency that will negatively impact cycle time and their profitability.
The exchange of information by like sized dealers in a non-competitive environment.
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Sept-Oct 2013
Success Starts and Ends With Leadership Before you can lead others, you must learn how to lead yourself JOE MARCONI N O T U N L I K E M A N Y S H O P O W N E R S O F M Y E R A , my career began working as a mechanic. A er gradua ng high school in 1973, my goal was to become a world-class mechanic and open my own repair shop. My dream came true on Oct. 1, 1980, at the age of 25. Unfortunately, the dream I held so dear to my heart quickly turned into a nightmare. I may have been a highly skilled mechanic, but I was a horrible businessman. I found out the hard way what most of us eventually find out: Just because you’re a skilled mechanic, does not mean you have the skills to run a business. In those early years, my style of management was, “My way or the highway.” I would bark orders and push employees to the breaking point. I would complain constantly that no one does what I ask, no one can do the job that I could, and no one has the drive that I have. I also made it known that if it were not for me, the shop would go under. I never took a day off or went on vaca on. I built the business so that every facet solely rested on my shoulders. I walked around the shop in a miserable mood, mad at the world. My destruc ve behavior was killing not just my business, but me too. By 1990, the shop was failing. A er a week from hell, the wheels finally fell off on a cold November day in 1991. Everything that could possibly go wrong that week did go wrong. Plus, my bank account was so low I didn’t have enough money for payroll. In despera on, I finally took a long hard look at myself in the mirror and saw the person I had become. And I was horrified. It finally dawned on me why my employees had no drive, no team spirit and why morale was in the basement. It was me. With my behavior the way it was, why in the world would anyone want to follow me? That prompted a plan to learn about business and, more importantly, how to become an effec ve leader. I needed to become the kind of person I wanted other people to be. I had to work on myself first. I also realized that success did not depend on me alone. Rather, success in business is a result of the collected efforts of the team. It was a long, uphill ba le working diligently on learning all the elements of business. It also meant pu ng away my tools. That, perhaps, was the toughest part. Among all the many aspects of business, for me my greatest asset would become my ability to lead others. Instead of commanding my employees, I included them in every phase of the business. We started to hold mee ngs to discuss employee issues, purchasing decisions about equipment and other important ma ers. Together we created workflow processes and sales strategies. We worked hard to create an atmosphere in which people felt they were part of the company; a place where they felt they were recognized for their efforts. Eventually, people began to go the extra mile, not because they were told to, but because they wanted to. The more I concentrated on making others around me be er, the more we grew as a company. To this day, I s ll devote me each week to learning and honing my business skills. I have a self-commitment to lifelong con nuous training and improvement. However, most of my me is devoted to developing my employees. Without them, growing the business would not be possible. Continued on Page 29
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Continued from Page 28 If you feel stuck as a shop owner, you need to take a long, hard look at yourself and ask, “Am I the person that others want to follow?” You might not like the answer, but I assure you it will put you on the right road to solving the issues and obstacles that are preven ng you from achieving what you want out of business and out of life. Holding yourself accountable for the difficul es surrounding you is not easy. But being a leader is not easy either. Success starts with you. It’s your ability to understand the people around you and how to make them be er at their job and in life. The more you work on this, the more success you will have. So, your journey to success may start with you, but in the end it’s the people you have helped along the way that will make all the difference in the world. Joe Marconi has more than three decades of experience in the automoƟve repair industry. He is the owner of Osceola Garage in Baldwin Place, N.Y., a business development coach for Elite Worldwide and co-founder of autoshopowner.com. Reach him at jmarconi@ratchetandwrench.com. Reprinted with permission: www.ratchetandwrench.com
Top scoring SkillsUSA Female Receives WIN scholarship to NACE Tessa Bramer, the highest scoring female in the Collision Repair Compe on at SkillsUSA is the recipient of the seventh annual Women’s Industry Network (WIN) scholarship. The WIN scholarship includes airfare, lodging and associated expenses, as well as a full access NACE Expo Pass provided by the Automo ve Management Ins tute (AMI) and the Automo ve Service Associa on (ASA). Bramer will be met and mentored by WIN members during the show. Bramer will also receive a 2013-14 WIN membership. Bramer graduated at the top of her class at Laramie County Community College. She placed first in both the Refinishing and Collision Repair at the SkillsUSA Wyoming Auto Body Contests and second in the SkillsUSA Wyoming Diesel Compe on prior to the na onal compe on. As the top scoring female at the Na onal SkillsUSA Collision Repair Contest this summer, she placed 8th among all, male and female, contestants. “The WIN NACE scholarship goes to the heart of WIN’s mission to support and encourage women who are entering the industry, par cularly those in the technical ranks. Surrounded by our amazing WIN members, this scholarship has consistently been a wonderful way to introduce young women to the collision industry,” said Teresa Bolton, Director, Collision Repair Test Development at ASE, who also serves as WIN’s Scholarship Co-Chair. Source: www.collisionweek.com
The exchange of information by like sized dealers in a non-competitive environment.
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Sept-Oct 2013
Lighter cars add weight to repair costs Greater use of carbon fiber, aluminum and high-strength steel complicates fixes More use of weight-saving materials such as aluminum, carbon fiber and high-strength steel are boos ng gasmileage in new cars, but also are complica ng and adding cost to repairing them a er accidents. Automakers are under intense pressure both to save weight for gas mileage and to meet stricter crash-test standards. But the some mes exo c materials needed to meet those goals mean replacement parts not only cost more, but o en require elaborate repair techniques that are taxing skills in some body shops. They also raise concern about dangerous repair shortcuts or subs tu on of cheap steel parts instead of costly ones that came with the car. “The consumer needs to understand the new vehicle they bought has specific requirements that need to be met to be as safe when they get it back from repair as it was before the accident,” says Doug Irish, president of VeriFacts Automo ve, which monitors and advises body shops. As automakers strive to meet federal mandates, more have turned to lighter materials, including: •Aluminum. Automakers will increase aluminum in cars from an average of 327 pounds in 2009 to 550 pounds by 2025, the Aluminum Transporta on Group says. The weight savings are drama c: Replacing steel with aluminum in doors of the 2014 Cadillac CTS sedan, for instance, saved 55 pounds. •Carbon fiber. As the cost of carbon fiber drops, the composite is showing up in more parts. While already a preferred material in high-end sports cars, it’s moving down-market. BMW will use a carbon-fiber body for its i3 small electric car. •High-strength steel. Lighter for the same structural strength, it’s being used for more body parts to cut weight and s ll meet roof crush and front-impact rules. But beyond the cost of the new crash parts, each material requires special methods and tools for the repairs. Special equipment — from high-strength drill bits to new frame racks — also is adding to repair costs. All this also is crea ng haves and have-nots among body shop businesses based on whether they can afford costly new equipment. “It’s something that’s going to differen ate our industry,” says Darrell Amberson, a vice president for LaMe ry’s Collision with seven shops in greater Minneapolis. It just bought an $80,000 rack for repairing auto chassis. And some of the materials can’t be repaired, only replaced. Workers o en can’t just weld in new steel or straighten out damaged sec ons when high-strength steel are involved. The heat of welding can weaken the part. “Where before you could cut a small piece in,” says Bob Keith, training director for Carstar, a network of more than 400 body shops, today “you might have to replace the whole thing.” Source: www.USAToday.com
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SCRS Issues Position on Insurer Mandates of Vendors and Processes The Society of Collision Repair Specialists (SCRS) has issued a position statement regarding insurer mandates. The position statement is as follows: In representation of collision repair businesses across the United States, The Society of Collision Repair Specialists (SCRS) takes exception to business mandates that property and casualty insurers impose upon collision repair businesses; particularly those that specify required vendors, business platforms or internal processes that must be followed in order to be included in, or avoid being excluded from, certain lines of work. As an example, insurer mandates surrounding parts procurement platforms may inhibit independent collision repair businesses from utilizing parts vendors with whom they have an existing relationship, providing insurers with greater influence and control over the parts supply chain. SCRS believes this control falls outside of the scope of the insurance business. Some insurers are stipulating agreement to these terms, as a condition of being recognized in Direct Repair Programs (DRP). SCRS supports efforts that rightfully seek to eliminate such intrusion into the collision repair business, and enforcement of existing laws, regulations and codes that currently prohibit such actions. It is the opinion of SCRS that voluntary agreements cannot include stipulations which violate existing laws, rules and regulations. SCRS believes that collision businesses are capable of establishing successful vendor relationships and internal processes that will best accommodate the needs of the consumer, and that service providers will continue to respond to the market with increasingly creative solutions that drive performance for their customers and the respective market entities. We believe that solutions with tangible value propositions will be utilized and supported by the marketplace without the undue influence of insurer mandate. As an example of the concerns addressed by the position statement, SCRS used the elimination of the “fax-only” option in the PartsTrader electronic ordering system that State Farm’s Select Service repair facility participants are required to use. The elimination of the fax-only option effectively requires suppliers to fully participate in the electronic parts marketplace or lose business from Select Service repair shops. According to the press release announcing the new position statement, SCRS explained, “The rules of the game are changing and it is apparent that maintaining the relationships and negotiated deals of participating repair facilities is only a priority, so long as all involved submit to do business in the manner prescribed by State Farm Insurance, and other carriers with similar programs. Today these mandates address parts sourcing and ordering, but there is valid concern that they open the door to future market manipulation and influence over other similarly critical collision businesses purchasing habits as well.” About SCRS: Through its direct members and 40 affiliate associations, SCRS is comprised of over 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS including other news releases is available at the SCRS Web site: www.scrs.com. You can e-mail SCRS at the following address: info@scrs.com.
The exchange of information by like sized dealers in a non-competitive environment.
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Sept-Oct 2013
2013 M MMG MG C Com o m m itte i t t ees es President Vice President Treasurer Secretary Executive Committee All of the above as well as:
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
Gerry Oakes Marvin Windham Dan Hutton Paul Allred
Baxter CJD – Omaha, NE Benchmark CJD – Birmingham, AL Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC
Dan Hutton Don Cushing Andy Reed TBA Steve Hofer Rick Cutaia Mark Skinner Joe McBeth
Tom O’Brien CJD – Greenwood, IN Bald Hill DCJ – Warwick, RI Allen Samuels DCJ – North Richland Hills, TX 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 Ken Kokoszka Rich Schott
Rick Hendrick DCJR – Charleston, SC Christopher’s Dodge World - Golden, CO Moore CJ – Peoria, AZ
Dan Hutton Paul Allred Steve Hofer
Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC Park CJ – Burnsville, MN
Dealer Tire
Paul Allred Susan McDaniel Joe McBeth
Stateline CJD – Fort Mill, SC Bill Luke CJD – Phoenix, AZ Dallas DCJ – Dallas, TX
Elite Extra
Rick Monteiro Ken Kokoszka J.D. Ipsen
Jack Powell CJD – Escondido, CA Christopher’s Dodge World - Golden, CO Ken Garff West Valley CJD – West Valley, UT
UPS
Marvin Windham Glen Hojnacki
Benchmark CJD – Birmingham, AL 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
Committees: Vendor Chairman Newsletter Nada 2014 Planning Membership Finance Committee
Vendor Committees
OEConnection Snap-On
Mopar Masters Guild Magazine