New Jersey Automotive March 2016

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

TM

March 2016 $595

A Preview of the

Biggest NORTHEAST Yet! www.grecopublishing.com

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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2015 - 2017 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dandmautobody.com

Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com

Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

PUBLISHER Thomas Greco (thomas@grecopublishing.com)

DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)

MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com) ART DIRECTOR Lea Velocci (lea@grecopublishing.com)

OFFICE MANAGER Donna Greco (donna@grecopublishing.com)

CONTRIBUTING EDITORS

Charles Bryant • Tom Greco • Jeff McDowell Mitch Portnoi • Dave Laganella • Ron Ananian

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

www.grecopublishing.com NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2016 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.

CONTENTS

VOLUME 46, NUMBER 3 | March 2016

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES 12 PRESIDENT’S MESSAGE 16 EXECUTIVE DIRECTOR’S MESSAGE

22 COLLISION CHAIRMAN’S MESSAGE 38 I-CAR CALENDAR 70 NJA ADVERTISERS’ INDEX

LEGAL PERSPECTIVE by Mitchell Portnoi, Esq. 24 A Credit to this Industry

VENDOR SPOTLIGHT by Joel Gausten 28 The Collision Equipment Company: Quality Close to Home

LOCAL NEWS by Jacquelyn Bauman 32 My Cousin Alan: Local Body Shop Owner Aids in Investigation 34 Aluminum Experts Tour Shop for Repair Safety Insight

COVER STORY by Joel Gausten

40 IT’S ALL HERE: A Preview of the Biggest NORTHEAST® Yet! MEET THE BOARD by Jacquelyn Bauman 52 Dennis Cataldo, Jr.

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 56 Legal Update 57 Wharton Insurance Briefs NO BRAKES by Ron Ananian 61 Customer Training

NEWSFLASH 67 Urethane Supply Company Announces Name Change to Polyvance 67 Mitchell Portnoi Named Partner at Post, Polak, Goodsell & Strauchler THE LIST 69 What Do You Like Best about NORTHEAST? Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Tom Elder Bob Everett

Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano Michael Lovullo Sam Mikhail Ron Mucklow George Petrask

Russ Robson Jerry Russomano George Threlfall Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

Boardwalk of Nightmares:

Part II

Last month, I left you in the middle of the true story of my wife and 17-year-old son getting arrested in Atlantic City as a result of my son pressing the button on a slot machine a few times. We were in Wildwood when my wife told me the news (I wasn’t there when it happened), and I had just gotten off the phone with a lawyer who confirmed that possible penalties included a fine between $500-$1,500, a six-month driver’s license suspension, community service, probation or even six months in jail. Before we pick up the story, I want to make a correction. Of course there is NO June 31. So the story actually began on June 30…

Fade in…a very quiet car on the ride home from a vacation gone very wrong… Subtitle says: Saturday, July 4, 9pm.

As I drive up the Parkway, my mind continues to race the same way it had for the previous 48 hours. What

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by THOMAS GRECO, PUBLISHER

happens if my wife has to go to jail? I know everyone says that will never happen. But at times like these, you don’t think logically; you tend to think of the worst-case scenario. You remember all of the people who are used to “set an example.” You start thinking of every possible situation. I don’t even hear the music in the car as I think to myself, Okay, if she loses her license, that will be tough, but we can get through it. I can do the banking and the mailing. Getting lunch will be a bit much, but I can handle that…joking. At least she won’t go to jail. So they hit us with $1,500 fine. The lawyer has already cost us $1,500. Three grand is still better than…shit, what if she gets sent to jail???

Honestly, visions of her in one of those low-level prisons

flooded my head. I had a relative who did some time in one of those, and everyone told her it would be a picnic. I visited her, and believe me, it was no picnic – it was frightening. I needed some shred of assurance that none of that was going to happen to my wife. At the same time, I was thinking of ways to hunt down the real name of the Caesars Palace Paul Blart security guard who brought my wife in. I wanted to find him and ask him if it was worth his lousy $12 an hour to put a family through this. I wanted to blast his name and tell him what I thought of him all over my magazines and the Internet. I wanted someone else to feel the stress we were all feeling just because a kid made a mistake and PRESSED THE BUTTON ON A FRIGGIN’ SLOT MACHINE!!!!!

Too bad I wasn’t a drinker. That weekend couldn’t end fast enough. I called the Atlantic City lawyer on Monday, and we went over the case. He said he’d have to receive all the reports and evidence from the police and the prosecutor’s office and then he’d have a better idea of what action to take. He reassured me that my wife was not going to

jail. When I asked if he could guarantee that, he took a long pause and said, “Well, I really can’t guarantee anything.”

Great.

On the bright side, he had a great track record in cases like these. He said none of his clients in similar cases had done any time and that the great majority of them got off with a small fine.

“But…” he trailed off.

There’s always a “but.”

“But…there is a new prosecutor in Atlantic City, and I really haven’t had any experience with her yet.”

So much for any assurances.

On August 17, my wife received a notice to appear in court on August 31. Thankfully, our attorney said it wasn’t necessary and that he would appear in her place. That became commonplace over the next few months as she was summoned three or four times. Some weeks later, we got to see all the evidence and reports. We even got a DVD showing my son’s “crime of the century” from multi-camera

continued on page 19

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NORTHEAST : PRESIDENT’S MESSAGE

®

IT’S ALL ABOUT YOU! As I write this message, we are just under a month away from AASP/NJ’s NORTHEAST 2016 Automotive Services Show. I personally can’t wait for this year’s show – 2016 marks our 39th annual event, and between the jampacked exhibitor floor, our full menu of informative seminars and demos and all the great events we’ve got lined up throughout the weekend, NORTHEAST 2016 is sure to be our greatest to date.

It’s the culmination of an entire year’s worth of hard work by our Board of Directors and show management, and I could not be more proud of the fruits of their labor.

I’m all ready for NORTHEAST. I preregistered online for free to have my

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badge waiting when I arrive at the Meadowlands Exposition Center on March 18. I’ve signed myself and my shop staff up for a ton of enlightening instructive sessions, and I’ll try to be one of the first in line to get to meet KC Mathieu on Saturday, March 19. And you can bet I’ll be at Larry Montanez’s early-Saturday morning presentation at the Metropolitan Car-o-liner booth. I can’t wait to hear what he has to say this year!

But NORTHEAST isn’t about me. It’s about YOU. Are you going to NORTHEAST to take part in the East Coast Resolution Forum co-presented by AASP/NJ and the Society of Collision Repair Specialists (SCRS), or to learn how to

by JEFF MCDOWELL

“Maximize Your Estimates!” from John Niechwiadowicz and AASP/NJ’s very own Jerry McNee? Want to hear about the Variable Rate System and its impact on your Labor Rate? Do you need to make some important tool and equipment purchases? Or would you just like to walk the show floor and connect with industry-leading exhibitors representing every aspect of the repair process? You can do all of those things and so much more, all in one weekend under one roof. That’s the beauty of NORTHEAST: It’s all about you, and helping you to be the most successful repairer you can be.

See you at the show!

NJA

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Left to right: Bill Grasso (Operations Mgr.), Bill DiRusso (Director), Dennis Davenport (GM), Bill Curren (NJ Sales Rep.) and Nick Halliday (Sales Mgr.)

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EXECUTIVE DIRECTOR’S MESSAGE

Don’t Cry When You Get What You Ask For

by CHARLES BRYANT

I can still remember the moments as a child when my mom told me, “Don’t cry when you get what you ask for.” Back then, I did not think much about it. It’s amazing how much we could have learned if we listened better when we were kids.

Over the years, I have written article after article about the problems in the collision repair industry that have been caused by the actions of insurers – things like refusing to pay a fair and reasonable Labor Rate, failing to pay for the necessary procedures required to repair damaged vehicles safely and properly, neglecting to pay a markup on sublet repairs and so on.

Over the years, the collision industry has become more and more undesirable to the younger generation, mainly because shop owners simply can’t afford to pay technicians anywhere near what they can make in other industries. Why would a young technician come into the collision industry when he or she can make approximately twice as much in the mechanical field?

As a result of the power dynamic that insurers have crafted over the years, carriers are now able to say to shops not on one of the Direct Repair Programs, “That’s all we are going to pay. If you don’t like it, we will just refer the customer to one of our DRP shops.”

For years, this tactic would work because even though no one likes to talk about it, the DRP system was designed to coerce shops to agree to restricted guidelines. In return, the insurer allowed the participating facility to become the appraiser. The carrier looked the other way while the DRP shop added in extra hours to compensate for the restrictions of the program.

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The bottom line is that this system has worked for years and caused the shops that would not or could not participate in the Direct Repair Programs to accept whatever the insurers wanted to pay. The fact that no insurer would allow more than 15 percent of the shops in any given area to participate in its DRP allowed it to control the other 85 percent.

You have to give credit where credit is due – it worked and allowed the insurers to manipulate the industry for all these years. The only reason that this did not kill us long ago is because certain shops that could not get on a DRP with one insurer could get on with another.

Even though no single insurer would

sign on more than 15 percent of the shops in an area, the industry as a whole presently has about 60 percent of shops participating in one DRP or another. The other 40 percent of the shops have to struggle along. For some, this means barely staying alive.

However, in more recent years as the insurers have gained more and more control over DRP shops, these companies have become greedier. For years, DRP shops would simply write their estimates, and as long as they stayed within the restricted guidelines of the program, the insurer would just send the shop on the program a check – no questions asked. However, we

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EXECUTIVE DIRECTOR’S MESSAGE have recently received reports that certain insurers are nitpicking the DRP estimates, noting things like, “We only see two hours where you have four hours on your estimate,” and then adjusting its check to what the insurer wants to pay. If the DRP shop doesn’t like it, they can remove themselves from the program. Unfortunately, certain shops have become so dependent on the DRPs to feed them that they simply have no choice but to just accept it.

Ultimately, the shops are going to do what they have to in order to survive. Contrary to popular opinion, I understand both sides and I do not have a problem with whatever option a shop chooses. I only have a problem when a consumer makes it clear that he or she has chosen a particular shop and an insurer works to change that customer’s mind through derogatory comments about that chosen shop,

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thereby convincing him or her to go to a DRP business instead. This steering is forbidden by the regulations governing fair claim settlements, as well as the laws that govern such business relations.

In the end, whether we like or dislike Direct Repair Programs, they have worked to allow the insurance industry to control our businesses over the years. The problem is that the insurance industry apparently did not consider the results of these actions. A good example of this is the obvious shortage of auto body repair technicians in the current industry. Under normal conditions, as older technicians retire, they are replaced with new, young technicians coming into the field. Because of its inability to be compensated for the huge investments it makes in equipment and training (coupled with the low Labor Rates that insurers fight so hard to

control), the industry simply cannot afford to pay the new techs an hourly rate that would attract them to our field.

When you combine the shortage of repair technicians with the rapid evolution of materials and technology in modern vehicles that require special procedures and training, the result is an industry in trouble. I have run a free Labor Pool for the members of AASP/NJ for years, and I have never seen such a drought of technicians. I place the blame directly on the insurance industry because of its low compensation for Labor Rates and refusal to compensate those in the collision industry fairly for the work they perform. There is simply no reason that a mechanical shop is paid much more than collision shops, other than the fact that an insurance company stands between the collision shop and its customer. The insurance

industry has achieved the task of controlling collision repairers, but at what price?

At the present time, we are at a point where the collision shops cannot get the technicians they need to repair the vehicles in their bays because they cannot afford to pay them what they can make in other industries. Unless something happens fast, more and more shops might ultimately go out of business. If that happens, the shops that remain will be in the position to demand whatever they want for a Labor Rate. It is a shame that it may come to this, but it is certainly an example of that old saying, “Don’t cry when you get what you ask for.”

NJA

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OUT OF BODY (AND MECHANICAL) EXPERIENCES continued from page 11

views. The freaking Super Bowl didn’t have as many cameras. Our attorney put together a 14-page response, seeking dismissal. It really was like a movie. My wife had to basically lay out what a good person she has been all her life (and she is a great person), and more or less get on her knees, begging the court to have mercy on her for this hideous offense to humanity. (Boy, I sound like Lenny Bruce here… If you get that joke, I owe you dinner.)

“Now, we wait,” our attorney said.

Dissolve to office of Thomas Greco Publishing, Inc… Subtitle: Thursday, October 22, 4pm.

“Omigod, it’s the lawyer!” my wife yelled as she came running into my office. Today was the day. The case went before the judge. We had been waiting on pins and needles all week for a decision. I picked up the phone.

“How’d it go?”

“I’m happy to tell you the judge granted the dismissal…”

“Whew! That’s amazing! Thank you so much!”

“But…” There’s always a “but.”

“He ordered that it will only take effect if your wife attends six Gamblers Anonymous meetings.”

“Are you f@#king kidding me?????”

“That’s the decision.”

“Are you f@#king kidding me?????” I repeated. “With all the crime and corruption down there, my wife, who did absolutely NOTHING, has to go to an addiction class??? Are you f@#king kidding me?????”

“Calm down, Mr. Greco. It really is the best thing that we could have hoped for. It could have been a great deal worse.”

“Are you f@#king kidding me?????”

My wife punched me in the arm. That brought me back to Earth.

“Sorry about that,” I apologized. “I really appreciate all that you’ve done.”

Dissolve to the living room in our house…Subtitle: Tuesday, October 27, 10pm.”

My wife comes in from her first Gamblers Anonymous meeting. I’m still pissed off.

“So how was it?”

“Oh my God. These poor people…”

That’s my wife in a nutshell. Public Enemy Number One. Fade to black…

NJA

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New Jersey Automotive | March 2016 | 21

COLLISION CHAIRMAN’S MESSAGE

The Reach of NORTHEAST® 2016

by JERRY MCNEE

With such an industry-exclusive event like NORTHEAST just a few weeks away, I’m personally starting to schedule my weekend so that I can get the most out of what the show has to offer.

Certainly, I’m looking forward to the incredible slate of seminars and demos assembled at this year’s show.

With so many topics on hand, you

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really can’t miss it. We have experts like Mike Anderson, Larry Montanez, Gary Ledoux, Dave Gruskos, Mark Allen and more coming in to discuss

all of the issues I hear shops talking about at meetings and events. Certification, aluminum, job costing, photo estimating… If you’re experiencing any one of these problems (or more) but you’re not sure where to get the information, NORTHEAST is a good place to start.

What’s exciting to me is the reach that NORTHEAST has developed over the past few years. It’s no longer strictly a regional show. With exhibitors from across the country, and even some from outside of the US, people have noticed the impact that NORTHEAST has on more than just the New Jersey market. I was talking with one of my friends from the Auto Body Association of Texas, and he told me he’s coming to the show because he didn’t want to miss the panel on OEM certification. And he’s not alone. The show is drawing attention from many states over.

As the show pulls in attendees from farther and farther away, it becomes increasingly obvious to me how foolish it is for any shop owner in New Jersey to miss out on this opportunity.

Between our most packed exhibitor floor yet, our most expansive educational slate and our celebrity appearances like KC Mathieu (courtesy of Platinum Sponsor BASF), Javier Soto and Ron Ananian (“The Car Doctor”), there’s no excuse not to count yourself among the thousands of attendees in the halls of the Meadowlands Exposition Center in Secaucus on March 1820. This has already been a recordbreaking year for NORTHEAST, and new standards are being set every day. Don’t be left in the dust; join us at the show. Pre-register for free online today at tinyurl.com/NE16reg.

NJA

New Jersey Automotive | March 2016 | 23

A CREDIT

LEGAL PERSPECTIVE

by Mitchell Portnoi, Esq.

TO THIS INDUSTRY I belong to a networking group that meets every week. One of the responsibilities of each member is to attempt to give referrals to other members of the group. When referrals do not specifically occur (which is unsurprisingly common), someone may give a testimonial about one of the members of the group who he or she may have utilized for a job or service in the past.

This article is a testimonial to a member extraordinaire of AASP/NJ. I have been a member of AASP/NJ for approximately 15 years, and possibly as long as 20 years. I have known Charlie Bryant for at least that long and probably longer. To my knowledge,

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Charlie is the best resource available to the members of AASP/NJ. He is knowledgeable, accessible and most importantly, willing to assist in the problem-solving initiatives that the membership needs.

While Charlie is not a lawyer and does not give legal advice, he is the most informed person I know in the auto body field. He knows about the estimating, insurance and repair processes. He is a repository of information in the claims process and has been writing “how-to� articles in this magazine for as long as I can recall.

The members should be paying very close attention to these articles, as his

word is the “gospel” in this industry.

Every reputable shop in the New Jersey market has consulted with Charlie at one time or another; if they have not, they should do so. As executive director of AASP/NJ, Charlie has numerous responsibilities. Yet if a body shop has a problem with respect to a repair or a claim, he is always on it.

While generally acknowledged by the AASP/NJ Board of Directors for his unending service to the membership, I would like to take my space in this month’s magazine to acknowledge Charlie Bryant for the hard work and dedication to this publication and to AASP/NJ and its members. For everything you do on a day-to-day basis – thank you, Charlie Bryant!

NJA

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VENDOR SPOTLIGHT

Inside the Collision Equipment Company on-site training vehicle

by Joel Gausten

THE COLLISION EQUIPMENT COMPANY: Quality Close to Home

New from Betag Innovation: Dentliner 4100 glue-pulling system

One of the region’s fastest-growing new providers of dependable collision repair equipment, the Collision Equipment Company has quickly established a strong reputation in the AASP/NJ community for quality products and active support of the association’s work on behalf of repairers.

Founded just over three years ago, the Pennsylvania company has built a sizable customer base from New York

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2016

down to Delaware.

Since its formation, the Collision Equipment Company has been an enthusiastic participant in AASP/NJ’s NORTHEAST® Automotive Services Show. For this year’s festivities, Business Development Manager Keith Egan and his crew will be expanding their presence to a 20’-by-60’ space to allow for extensive displays from manufacturers including Betag Innovation (high-quality pulling equipment from Sweden), GYS (a French provider of resistance welders and self-piercing riveters) and Prima (MIG welders). Egan is excited to once again be involved in the Northeast industry’s most popular event.

“The NORTHEAST Automotive Services Show allows us to expand our footprint and our offerings in the markets we do business in,” he says.

GYS water-cooled resistance spot welder

“I think there’s more offered at NORTHEAST than you get at a national show or something like that because you’re dealing with people who do business in the same market.

When repairers in South Jersey or Pennsylvania or even New York come to that show, chances are they’re discussing an equipment purchase or an investment into the future with the people they’re going to do business with. NORTHEAST gives you the ability to build a relationship with an

individual or an organization, and continue that relationship after the show.”

As the Collision Equipment Company continues to expand its customer relationships and product offerings, Egan maintains a strong commitment to following the trends that are impacting the overall automotive repair field. A regular participant in the Collision Industry Conference (CIC) and the National Auto Body Council (NABC), he considers education and consolidation to be the biggest issues shaping today’s industry.

“There’s a paradigm shift going on in our industry where repairers need to make an investment in equipment because vehicles have changed and OEM certification has

become prevalent in the marketplace,” he offers. “I-CAR training is something that shops need, but because of consolidation, we’re seeing that the consolidators don’t want to send their technicians out to facilities and expose them to the ability for somebody else to hire them at those training classes. So they’re looking for a higher level of service for training inside of their facilities, which is all tied to equipment training, certification and the re-investment on behalf of the repairers to be able to work on cars going forward.

“We see consolidation playing a huge part in the industry,” he adds.

“Collision repairers who are not part of that movement and are not consolidators or MSOs can survive the transition, but they’re going to have

to be able to re-invest in the market.

Nationally, collision repairers are going to have to upgrade their equipment and increase the level of training provided to their technicians.

We see CE Training as an opportunity going forward for technicians.”

No matter where these developments ultimately take the national and regional auto body industries, those whose livelihoods depend on the equipment they use will always have a friend in the Collision Equipment Company.

For more information, check out collisionequipmentcompany.com.

NJA

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LOCAL NEWS

by Jacquelyn Bauman

MY COUSIN

ALAN:

Local Body Shop Owner Aids in Investigation “The car that made these two, equal-length tire marks had positraction. You can’t make those marks without positraction, which was not available on the ’64 Buick Skylark…

This car had an independent rear suspension. Now, in the ’60s, there were only two other cars made in America that had positraction, and independent rear suspension and enough power to make these marks.

One was the Corvette, which could never be confused with the Buick Skylark. The other had the same body length, height, width, weight, wheelbase and wheel track as the ’64 Skylark, and that was the 1963 Pontiac Tempest.”

These are the famous words of Marisa Tomei as Mona Lisa Vito in the 1992 classic, My Cousin Vinny. For those who have never seen this comedy, it’s a story about two young gentlemen from New York who are falsely accused of committing a robbery and murder while on a road trip in

32 | New Jersey Automotive | March

2016

Alabama. One of the kids (played by Ralph Macchio) calls his cousin Vinny (played by Joe Pesci) to represent him and his friend in court, despite Vinny’s lack of experience.

SPOILER ALERT.

In the final act of the film, the casebreaking evidence comes down to details derived from a photo of tire marks fleeing the crime scene that ultimately exonerate the two “yoots,” as noted by Vinny’s snarky fiancée to the left.

As far-fetched as this idea may seem, one New Jersey shop owner recently found himself in the same position as Ms. Vito, helping to catch a guilty party through small vehicular details left behind at a crime scene.

Last March, 27-year-old Jeffrey Michel from Colts Neck was fatally injured in a hit-and-run accident on Route 37.

As investigators hit wall after frustrating wall due to a significant lack of

evidence in the case, Alan Picker of All Time Auto Body in Point Pleasant Beach offered to help narrow down the search through the minimal amount of evidence that was left behind at the scene.

One item in particular seemed to investigators to be part of a bumper, but Picker later identified it as part of a grille – and ultimately noted it was painted in a color manufactured by Chrysler.

Picker ended up identifying the car as a Jeep Wrangler and was able to narrow down the search to about 10 vehicles by using the production years of Wranglers manufactured with the particular color and grille left at the scene. (Coincidentally, Picker drives the same automobile.)

On March 18 of last year, after a few days of knocking on the doors of owners with vehicles that matched Picker’s description, police came to the house of 51-year-old Mark Rothlein from Island Heights. As noted by Prosecutor's Office Spokesman Al Della Fave, the Wrangler was parked in a manner consistent with an act to conceal damage from such a collision.

On January 19, just days after Rothlein was indicted by a grand jury for leaving the scene of a motor vehicle accident resulting in death, Picker was honored by Ocean County Prosecutor Joseph D. Coronato in an awards ceremony for his actions. Picker was also named an honorary member of the prosecutor’s office for his assistance in this case.

“We had a bunch of debris, but unfortunately, we didn’t have any video,” Coronato said at the service. “We really had very little leads, if any.”

They say life is nothing like the movies, but for Picker and the Ocean County Police Department, their little taste of Hollywood magic won’t soon be forgotten.

NJA

New Jersey Automotive | March 2016 | 33

LOCAL NEWS

by Jacquelyn Bauman

ALUMINUM EXPERTS Tour Shop for Repair Safety Insight On February 10, aluminum experts from I-CAR, Dekra International, Novelis and Kaiser Aluminum traveled to Compact Kars in Clarksburg, NJ to examine AASP/NJ Treasurer Tom Elder’s shop and see proper aluminum repair standards in action.

“[Dekra International and Novelis] do aluminum experiments in their laboratories, so we wanted to give them a glimpse of what actual repair processes looked like in practice to help them in their testing,” said Doug Richman of Kaiser Aluminum. “For those of us in the education and information distribution sector, this helps us to conceptualize how the system works.”

After discussing some of the biggest issues that occur in both aluminum production and its repair, the gathering of professionals examined the specialized bay at Elder’s shop.

“We have epoxy coating on the floors and a special gloss paint on the walls so the dust doesn’t stick,” Elder explained. “But everything from top to bottom still needs to be cleaned regularly. We also have corrected lighting in this area, [which is] the same as in

34 | New Jersey Automotive | March 2016

Above: Representatives from I-CAR and Kaiser Aluminum examine a vehicle in for aluminum repairs.

Left: AASP/NJ’s Tom Elder fielded questions from attendees regarding the specialized tools and equipment in his aluminum repair bay.

the factories where they produce the vehicles.”

In addition to these modifications, Elder also has specific tools for aluminum repair, OEM-recommended equipment from Celette and Chief, an immersion separator vacuum and more.

Despite all of the precautions and measures taken to prevent cross-contamination, the process is still a matter of trial and error.

“In the past, we had issues in the paint booths,” Elder recalled. “Even though we had the vehicle covered from the moment it left the aluminum bay until it was inside the booth, steel dust still managed to get underneath the primer, causing rust.”

Part of the process towards getting everything right includes one very important aspect – well-trained technicians.

“The skill set for something like this is very high,” noted I-CAR instructor Pete Fryzel.

All of the technicians working on aluminum at Compact Kars are highly trained, including being I-CAR

Platinum certified and partaking in welding training every six months to maintain certification status. One technician has even received $50,000 in training for Mercedes-Benz repairs.

Obviously, in a field so drenched in a demand for good technicians, it is a reasonable fear for a shop owner that training his or her techs so fervently will cause those employees to seek jobs elsewhere for higher compensation. While it is not always the case, Elder pointed out that for his facility, Mercedes-Benz USA certification is only good while the technician is still at the shop and does not transfer with him or her should employment be terminated.

Elder’s participation in this study is one example of how shops that are at the forefront of the industry can help their peers in the field on a larger scale.

“Now when the representatives here from Dekra and Novelis go back to the lab, they have a sense of what it is they should be testing for future production of aluminum vehicles,”

Richman said. “Having them come out to shops and see the obstacles we’re facing, as well as the solutions created to counteract them, may help in the aluminum repair process down the line.

“Of course, one of the biggest issues facing repairers right now is the insurance industry, and showing how they play into this process is not something that is easily demonstrated to those on this excursion,” he added. “It’s important to move forward with educating the consumer; if we don’t inform them, it leaves them in a position to be taken advantage of. That’s something that can’t be solved in a lab, but it can be worked on by us on the front lines.”

NJA

New Jersey Automotive | March 2016 | 35

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MARCH 4 Hazardous Materials, Personal Safety and Refinish Safety Keystone Automotive, Palmyra MARCH 7 Corrosion Protection Virtual Classroom

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MARCH 24 2015 ford f-150 Structural Repair Training Course Holiday Inn & Suites, Parsippany overview of Cycle Time improvements for the Collision Repair Process County Line Auto Body, Howell Aluminum Exterior Panel Repair and Replacement Reliable Automotive Equipment, Belford

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MARCH 31 Alternative fuel Vehicle Damage Analysis and Safety County Line Auto Body, Howell Squeeze-Type Resistance Spot Welding Reliable Automotive Equipment, Belford Rack and Pinion and Parallelogram Steering Systems Somerset Vocational High School, Bridgewater Waterborne Products, Systems and Application Virtual Classroom For more information, visit www.i-car.com

NJA

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A Preview of the Biggest NORTHEAST Yet!

by Joel Gausten

Get ready for the biggest NoRTHEAST Automotive Services Show you’ve ever seen.

Completely sold out of vendor space and boasting its most extensive seminar and presentation schedule ever, the 39th annual installment of AASP/NJ’s beloved show (held March 18-20 at the Meadowlands Exposition Center in Secaucus) proves that some things only get better with age.

While NORTHEAST Platinum Show Sponsor BASF has many opportunities to showcase its products to the industry, the company considers AASP/NJ's event an ideal way to reach a wide array of automotive industry professionals.

“The NORTHEAST show continues to be important for BASF,” says Tina Nelles, marketing services manager for BASF Automotive Refinish.

“This show allows us the opportunity to demonstrate our new products and services as well as interact with customers and industry partners.”

BASF will host a very special celebrity appearance by KC Mathieu,

owner and operator of KC's Paint Shop, on Saturday from 10am to 4pm.

Mathieu's work has been recognized by nationally known car enthusiasts and Barnett’s magazine, while he has also been featured on Discovery Channel’s series Fast N’ Loud with Gas Monkey Garage. Nelles is excited that this master painter will be part of the NORTHEAST experience.

“KC Mathieu is a great partner with BASF’s R-M paint brand,” she says. “He is passionate about the industry and is another great example of a top industry expert who only uses BASF. He grew up in an auto body shop and painted his first car at 12.”

In addition, BASF will showcase its R-M Diamont system as well as its new Norbin brand at the NORTHEAST show.

“For more than 35 years, Diamont from R-M Automotive Refinishes has been a top choice for hundreds of the most productive collision repair centers in National Rule areas,” Nelles says. “Diamont has continued to evolve over the years, and is one of

Attracting an unprecedented number of new and returning exhibitors, NORTHEAST will see scores of vendors greatly expanding their footprint on the show floor.

40 | New Jersey Automotive | March

2016

the most trusted names in the collision repair industry. Because BASF is a premier supplier of OEM coatings worldwide, R-M meets or exceeds factory finish standards and is a complete coatings system. It has earned widespread popularity for its superior appearance, durability, color matching and productivity.

“Norbin is a new brand in North America to help shops grow their business. Norbin clears and primers are easy to use, value-priced and created with BASF technology,” she adds.

“Amy Kramer, our Norbin inside sales manager for North America, will be at the show, too.”

Attracting an unprecedented number of new and returning exhibitors, NORTHEAST will see scores of vendors greatly expanding their footprint on the show floor. Longtime NORTHEAST participant 3M will have a 20’by-30’ booth this year to house special hands-on demonstrations of its Cubitron Abrasives and Perfect-it Paint Finish products throughout the weekend.

Additionally, 3M will spotlight at least three new products that will be introduced to the market by the time of the show. For Central New Jersey 3M sales representative and decades-long NORTHEAST attendee Jim Garripoli, bringing his company to NORTHEAST 2016 in such a huge way helps his goal of staying current in the industry and maintaining close contact with his customer base.

“We’re all in this together,” he says. “3M’s Collision Repair Specialists

are evolving to become more customer-focused this year than ever before. We want to stress 3M’s commitment to being leaders in innovation and solutions. We’re putting a lot of resources into expanding our show presence and opening up the booth floor plan so people can walk through it instead of standing in front of the tables.

We have a square area in our display where people can come in, and we’re looking forward to experiencing that this year.”

With more than 20 years at NORTHEAST already behind him, Garripoli still views late March as an opportunity to meet up with various people who are crucial to 3M’s ongoing success in the region.

“NORTHEAST gives us the opportunity not only to see our distribution chain, but also the owners and technicians of the shops,” he offers. “Typically on Friday night, we see a lot of salespeople and key distributors who sell our product. Throughout the next two days, we get to see our actual end-users. That’s what makes the show cool.”

In addition to showcasing some of the industry’s most trusted and wellrespected vendors, NORTHEAST 2016 will provide attendees with the tools necessary to strengthen their standing in the marketplace. This year marks the long-awaited return of renowned industry presenter Mike Anderson (Collision Advice), who will be traveling to Secaucus to deliver two essential Axalta Coating Systems-

sponsored seminars. The first, “Positioning Yourself in the Collision Repair Industry,” will explore what Anderson believes are key things that every shop needs to do to thrive – and not just survive – in the collision field. In order to truly make it in today’s automotive world, repair businesses need to focus greater attention on service, speed and accuracy while also figuring out how to retain gross profit on the automobiles they fix.

“Whether you’re a DRP or nonDRP, you still need to fix cars in a timely manner,” Anderson explains. “If you’re a DRP, you’re getting judged on that; if you’re not a DRP, you still need to fix cars in a timely manner because it’s all about cash flow. You can’t afford to have all this money laid out there for a long period of time.”

Anderson sees OEM certifications as another factor that will help drive shops’ prosperity down the road.

“I think what really is key for shops today is that they have to understand the role that OEM certifications are going to play in the future,” he says. “I think they are going to be more critical to a shop’s success than ever before.”

Key topics of “Positioning Yourself in the Collision Repair Industry” will include:

How to attract and increase sales in today’s competitive environment;

How to attract, recruit and retain employees from overseas, the military and other sources;

How to develop and implement a successful apprenticeship and training program; The Key Performance Indicators (KPIs) that should be monitored in a business; and The management tools available to a collision repair center owner or manager.

Anderson’s second offering, “Who Pays for What?” will explore the results of quarterly surveys conducted

by Collision Advice and the CRASH Network that asked shops how often they get reimbursed for not-included operations from the 10 biggest insurance carriers. Each quarter, the survey focused on a different topic: Not-included refinish operations

Not-included structural and mechanical operations

Not-included body labor operations, including aluminum rates and OEM certifications

Miscellaneous supplies and materials like jig rental, solid waste fees and more

The responses for each question were compiled and published, showing DRP versus non-DRP results as well as results by region. The NORTHEAST presentation will include a discussion on

New Jersey Automotive | March 2016 | 41

how to use the results to negotiate with insurers and participate in future surveys.

“One of the things I find is that in the Northeast, a lot of shops are getting paid for things that a lot of shops in other parts of the country are not,” Anderson observes. “I think it’ll be interesting for shops to see what types of things others around the country are getting paid for that they may not be getting, as well as to see where their market average is at.”

Thrilled to be returning to NORTHEAST, Anderson sees the three-day event as a great opportunity to reconnect with old friends and colleagues in the region.

“I’m really honored to be able to speak there,” he says. “Even though I live in the Washington, DC/Maryland/ Virginia area and I travel so much, I still kind of consider the Northeast my home.”

Two of the area’s most popular speakers, veteran NORTHEAST presenters John Niechwiadowicz (QLC, Inc.) and Jerry McNee (Ultimate Collision Repair) will return to the show for “Maximize Your Estimates!” a brand new course designed to help shop personnel write a complete and accurate estimate that captures all of the billable operations reasonably and realistically needed to repair a damaged vehicle.

This will be a based on a singlepanel repair that covers all the items that are warranted in repairing the car based on the P-Pages.

“We’re going to focus in on the P-Pages and writing a complete estimate based on them with an actual job costing report,” explains McNee, who currently serves as collision chairman for AASP/NJ. “People who have come to our classes in the past have seen those job costing reports, but this puts them into action.”

“Maximize Your Estimates!” will include an in-class review and audit of an actual repair to illustrate the opportunities that are available on every estimate written on the shop floor. The highly interactive discussion will also explore the eight processes that every shop must use to improve their estimates, plus the top 10 operations that every shop can and should be getting paid for.

McNee believes that every repair professional who walks through the door at NORTHEAST could benefit from taking this course.

“Shops absolutely have to be able to job-cost the repairs, or they’re just flying blindly,” he says.

“The insurance companies are taking full advantage of the cards that are being dealt. It’s not their fault; it’s our industry that’s allowing it to happen.”

To illustrate how effective the techniques offered in the course are in the real world, McNee holds up his own facility as an example of what can be accomplished by paying attention to your numbers.

“We’re running 5,000 square feet of production, and we’re doing

$5.2 million in business as a pre-tax dollar item,” he says. “We’re not perfect, but we’ve rounded out that square wheel. This class is just another avenue to get you closer to that goal.”

In McNee’s mind, the course will encourage shops to truly stand up for what’s right and get paid accordingly.

“Show up and start putting these things to work; don’t give up the quest,” he says. “The insurance companies and the appraisers are going to beat you down and say, ‘We don’t do this’ and, ‘We don’t do that.’ My comment is, ‘Well, you can’t pick and choose how much you want to pay.

This is how the estimating systems are based and how they are written.

Why would you, Mr. Insurer or Mr. Appraiser, decide what you want to pay?’”

To help shops better identify realistic charges that will enable them to operate profitable businesses, NORTHEAST will serve as the setting for the can’t-miss Friday night and Saturday evening seminars on the Variable Rate System (VRS), an innovative and proven technology to help collision repairers get paid what they’re worth and receive more compensation for the work they do.

Through online surveys and a Webbased suite of tools, the VRS gives shops access to market-based Labor Rate data and paid not-included procedures documentation never before available to the industry. Sam and New Jersey Automotive | March 2016 | 43

Richard Valenzuela of VRS parent company National AutoBody Research (NABR) will discuss and demonstrate the system, highlighting a few of its many functions (such as searching for rates in your market; differentiating your shop based on training, equipment, and certifications; understanding whether your Labor Rates are keeping up with inflation; and finding out which insurers are paying for any not-included operations). By the end, attendees will see how the VRS enables them to make more informed Labor Rate pricing decisions, collect on more not-included procedures and respond actively and confidently to insurer tactics that seek to keep prices low.

Not surprisingly, McNee is an avid supporter of the Variable Rate System.

“The more shops that fill out that Survey, the more accurate the numbers will become,” he says. “The insurance companies will no longer be able to stand in front of you in your shop and say, ‘Well, we’re going to pay you $X because that’s what your market area warrants.’”

Before they get paid properly, repairers need to ensure that their work is as safe and dependable as possible. Over the last few years, it’s been impossible to open a trade publication without seeing something on the spread of aluminum-intensive vehicles in the marketplace. To help showgoers better prepare for the trend, NORTHEAST will present “Aluminum Industry and I-CAR Join

44 | New Jersey Automotive | March

2016

Forces to Address Collision Industry Knowledge Gaps,” a Saturday afternoon discussion that will offer insights on aluminum use in modern vehicle designs and the impact it is having on repair practices. Doug Richman and Jim Dickson of the Aluminum Transportation Group (ATG) will detail the ways in which repairing vehicles with extensive use of aluminum is different—not difficult.

Also explored will be the ways the aluminum industry has teamed up with I-CAR to arm the collision industry with the know-how necessary to make well-informed decisions on automotive aluminum repairs. Topics including joining, corrosion and dust management will be addressed in addition to key training considerations for body shop owners to ensure a successful transition to aluminum vehicle repair.

The night before, Richman will help kickstart the NORTHEAST seminar schedule by joining Larry Montanez (P&L Consultants) and Dave Gruskos (Reliable Automotive Equipment) for “Advanced Material Repair in 2016 & Beyond,” a threepart discussion on the repair of advanced materials. The discussion will cover topics including the properties of the materials themselves, safety considerations and the proper/OE approved procedures, processes and equipment needed for these types of repairs. Richman tells New Jersey Automotive that he wants to help answer any questions that audience members have about

aluminum and address some of the most common misconceptions about this kind of material.

“All aluminums are not the same, and they don’t act the same when they’re in the repair environment,” he explains. “I need the shops to understand that just because they see aluminum, it could be heat-treated, not heat-treated, high-strength, fairly low strength...

They have no way of determining that by looking at the material.”

On a positive note, Richman has been impressed by the industry’s overall response to aluminum in recent years.

“I think the training that I-CAR and the OEMs are doing to help shops understand how to manage the aluminum materials in vehicle bodies is just outstanding,” he says, later adding, “The OEMs have done a spectacular job, in my opinion, of providing guidance in how to do safe, efficient repairs on their vehicles. They do know which materials are used in which components of the body.”

When not gaining invaluable industry knowledge in seminar rooms and vendor booths throughout the show, attendees will be offered a variety of opportunities to simply have a good time. In addition to the annual Friday Night Exhibitor Appreciation After-Party and Family Day on Sunday, legendary radio personality and longtime AASP/NJ member Ron “The Car Doctor” Ananian will be doing a live network broadcast of his

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NORTHEAST 8AM nationally syndicated show on Saturday from 2pm to 4pm. Looking forward to attending NORTHEAST for the 29th time, Ananian continues to see tremendous value in taking the time to see all that the show has to offer.

“I think anyone who’s serious about this business really needs to be at NORTHEAST,” he says. “I go to it every year because I always get something out of it. NORTHEAST has changed and evolved so much over the years, and it keeps going. It’s kind of like a giant car company; it just has a life of its own. You want to be a part of it because you don’t want to miss anything.”

And what is the best advice Ananian would offer industry members who are attending NORTHEAST for the very first time?

“Be open-minded and look in the corners,” he replies. “Look at every booth and think, ‘Is this of relevance to me or not?’ If you just walk the show and don’t stop along the way, you’ll miss a lot. There is something there for you.”

The events detailed in this feature are just a small sample of what you will experience at NORTHEAST 2016.

A complete Schedule of Events can be found to the right. Nearly four decades after its debut, AASP/NJ’s flagship event continues to exceed expectations in an always-changing industry.

“In a day and age where everything is so competitive, costs are so high and everybody’s so demanding, they still put on one hell of a show,” Ananian says. “They still come up with ways to be fresh and entertaining every year.”

The 39th Annual NORTHEAST Automotive Services Show will take place March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ. Free registration is now open at tinyurl.com/NE16reg.

If you have already registered and would like to sign up for the seminars you read about here, as well as the other events at the show, go to aaspnjnortheast.com/ seminars-demos.shtml.

NJA

46 | New Jersey Automotive | March 2016

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2016 NORTHEAST® Exhibitor Appreciation After-Party Presented by AASP/NJ

Variable Rate System

SEMINAR AREA This event is open to NORTHEAST exhibitors only.

Effective Training for Shops

and Sustaining erating Procedures lision Repair

Building and Sustaining Standard Operating Procedures for Collision Repair

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19 (SHOW HOURS: 10AM - 5PM) "Who Pays for What?" Survey Results (Sponsored by Axalta Coating Systems)

The Customer Encounter Aluminum Industry & I-CAR Join Forces to Address Collision Industry Knowledge

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ALSO HAPPENING AT NORTHEAST 2016: • Accudraft National Sales Meeting (Thursday, Friday & Saturday, March 17-19) • First Annual ProFirst Lunch & Learn Seminar (Saturday, March 19, 2pm-3:30pm) • Celebrity appearance by KC Mathieu, courtesy of Platinum Show Sponsor BASF @ Booth #227 (Saturday, March 19, 10am-4pm) • Custom Paint Demos by Artist Javier Soto @ Booth #612 • Meet Nub of Nub Grafix courtesy of Valspar @ Booth #413 • Live Broadcast by Ron Ananian, “The Car Doctor” (Saturday, March 19, 2-4pm) • “Increase Profits, Lower Cycle Time / Supplements with Triage Estimating” presented by Larry Montanez III; facilitated by Metropolitan Car-o-liner @ Booth # 217/117 (Saturday, March 19, 8:30am) • AND MORE!

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MEET THE BOARD by Jacquelyn Bauman

DENNIS CATALDO, Jr.

Dennis Cataldo, Jr. of D&M Auto Body in Old Bridge recently became a Board member for the Alliance of Automotive Service Providers of New Jersey (AASP/NJ). New Jersey Automotive caught up with Dennis at his shop to find out a little about AASP/NJ’s newest Board participant and what he hopes to accomplish in his role among New Jersey's top industry veterans.

New Jersey Automotive: How did you get involved in the automotive repair business?

Dennis Cataldo, Jr.: My father, Dennis Cataldo, Sr., used to own a shop in Brooklyn called Dentz Unlimited.

When I was a kid, I used to hang around the shop and eventually started out as a helper. I was sweeping the floors, taking care of odd jobs and the like. After some time, I worked my way up to technician.

Now, I’m a shop manager at our new place, D&M Auto Body in Old Bridge.

We moved out to New Jersey in March 2014 and have been here since.

NJA: What is your shop like?

DC, Jr.: We’re only two years old, so we’ve got four bays right now. We’ve finally – after a lot of time and effort – gotten through the red tape to start building another one. We hope to have that bay open by the summer.

It’s a nice little shop. There’s four of us altogether, including our front office staff.

NJA: What would you say is your favorite thing about the work that you do?

DC, Jr.: Like anyone else in this business, I like to fix things that are broken. It’s cool to see something go from a mess on the shop floor to looking like nothing has ever happened to it.

NJA: How did you get involved with AASP/NJ? DC, Jr.: My father was very heavily

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involved in the Auto Body Craftsman Guild of New York City and the New York State Automotive Collision Technicians Association when we had Dentz Unlimited. Being part of a larger group of shop owners, you get a lot of great information about your industry, plus it’s a great resource for help if you need it. It’s good to be a part of something like that. My father has known the Board members of AASP/NJ for a long time because of his experience in the New York association, so when we opened up the shop two years ago, we joined AASP/NJ. NJA: Why did you decide to become a Board member?

DC, Jr.: I’m younger than a lot of the guys on the Board, which I think is why they asked me to join. It’s important to start getting a fresh perspective on things. Plus, eventually these guys will want to retire. They want to make sure the association is in good hands before doing so, so they have to start grooming the next generation now. Younger people need to start getting more involved in things like this. We have to carry on the battle and carry on the legacy.

NJA: Why is it so important for shops to be part of the industry on a larger scale, such as being in an association?

DC, Jr.: It basically comes down to that old adage, ‘If you don’t stand together, you stand alone.’ I think that’s particularly true in our case as repairers. We need to work side by side.

NJA: What are some of the biggest challenges you see the industry facing?

DC, Jr: By far, our biggest obstacle is the insurance companies. They manipulate our customers with commercials and funny advertisements instead of being clear with them.

Those ads don’t say what they mean.

If they really showed the customers why the insurance was cheaper, I bet they’d be less inclined to buy it. Having to educate the consumer is definitely a huge challenge for our field.

NJA: Where do you see the collision repair field going in the next decade?

DC, Jr.: It all depends on how things go in the next few years. We need to stand together and fight to make our industry the best it can be. I can see the possible future of consolidation — it's definitely on the horizon, if not here already. That's why it's so important for us to be united in improving the industry.

NJA: What do you like to do in your spare time away from the shop?

DC, Jr: I love to cook…anything and everything. I love barbecuing in the summertime. I love the barbeque, the smoker, the beer, the people and the atmosphere. It’s a very social thing for me.

NJA

WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it.

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ARANJ 2016 officers

President Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com

1st Vice President Ian Szoboszlay Ocean County Auto (732) 349-0332 ian@cosmosautoparts.com 2nd Vice President Darryl Carmen Lentini Auto Salvage (908) 782-6838 darryl@las-parts.com

3rd Vice President Joe Goodman Leesville Auto (732) 388-0783 joeg@leesvilleauto.com Executive Director Brian Snyder Auto Recyclers of NJ (609) 714-2339 brian@aranj.org

ARANJ 2016 Board of Directors Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net

Mike Yeager EL & M Auto (609) 561-2266 elandmauto@aol.com

Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net

Mike Caputo Lacey Used Auto Parts, Inc. (609) 693-0898 laceyautomike@aol.com Bert Witcraft Auto Express (856) 728-8367 Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com Harry Shover Porchtown Auto (856) 694-1555

Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com

ARANJ

Legal update

The Automotive Recyclers Association of New Jersey

Business Arrangements Should Be in Writing An important practice for any business owner to implement is the routine documentation of all business relationships. Many small businesses are owned and operated by a handful of individuals.

Oftentimes, these individuals are friends or relatives with whom the business owner may have a lengthy, trustworthy history. A business arrangement with a friend or relative may arise informally over a drink, at dinner or during a phone call while away from the office. Because the arrangement is with someone the business owner knows and trusts, he or she may not feel that it is necessary to formalize the arrangement and put it on paper. Perhaps he or she recognizes the benefit of having a written agreement, but feels that the cost of retaining an attorney to prepare it exceeds the benefit. Perhaps he or she feels it would be too much trouble to obtain the agreement and signatures of the business partners. However, the Appellate Division’s recent decision in Catanoso v. Strategic Planning & Management, LLC demonstrates the danger of relying on oral agreements with respect to business arrangements.

In Catanoso, the Plaintiffs provided IT services for the Defendant company since its inception through the Plaintiffs’ partly- and wholly-owned companies. Since the beginning of the relationship, the Plaintiffs expressed a desire to have an equity interest in the Defendant. The managing member of the Defendant orally agreed that the company would pay 94 percent of the Plaintiffs’ invoices, with the remaining six percent to be considered a capital investment in the Defendant by the Plaintiffs. Still, when the Defendant secured a large contract with a third party that required the Plaintiffs’ expertise, the Plaintiffs pressed the Defendant to make them members. In response, the managing member of Defendant presented an amended operating agreement that provided the Plaintiffs with a 17-percent share in the Defendant. The Plaintiffs rejected that offer and made a counteroffer. Neither document was ever executed, but the Plaintiffs began working directly for Defendant as a part-time employee.

IRS filings indicated an increase in capital account balances to a combined 17 percent.

A year after the Defendant’s contract ended with the third party, the Plaintiffs left the company.

The managing member of the Defendant subsequently presented a recapitalization agreement to the Plaintiffs that would have exchanged the $26,000 capital account balance claimed by the Defendant for a one-percent share. The Plaintiffs rejected the agreement and filed suit for (among other things) reinstatement of their ownership interests, access to books and records and correction of their capital account.

The trial court found that the Plaintiffs did not obtain an ownership interest in the Defendant. Despite hearing the testimony of more than 10 witnesses, the trial court judge made his decision largely based on the documents available to him. Specifically, the trial court judge noted that the Plaintiffs were not identified as members in the Defendant’s operating agreement, and that there was no evidence that the Plaintiffs were added as members in accordance with the terms of that agreement.

Moreover, the amended operating agreement presented by the managing member of the Defendant carried no weight because it wasn’t signed. The same fate befell the Plaintiffs’ counteroffer Nonetheless, the trial court judge did find that the Plaintiffs had a protectable interest in the company based on the testimony of the Defendant’s managing member, who said that the Plaintiffs were “something” more than just employees or contractors. As a result, the trial court judge awarded the Plaintiffs about $93,500, representing payroll checks the Plaintiffs were asked not to cash, undisputed contributions to the Defendant by the Plaintiffs and the amount credited to the Plaintiffs as capital contributions. The Appellate Division affirmed the lower court’s decision for the reasons stated by the trial court judge.

Although the business owners largely received a favorable verdict in Catanoso, they were unable to avoid the cost of litigation caused by their failure to adequately document their business arrangement with the Plaintiffs. Had the terms of the Plaintiffs’ employment or service been set forth in a written agreement executed by both parties, it is unlikely that the Plaintiffs would have had any grounds to pursue the litigation, saving the business owners thousands of dollars likely spent on defending the claims. Furthermore, it must not be forgotten that the lack of a clear written agreement allowed the judge leeway to determine that the Plaintiffs had some protectable interest in equity that will force the business owners to part with $93,500.

This case is just one of many examples from the annals of legal history that demonstrate that business arrangements should always be documented in writing. It is far more economical to spend the time and money to prepare a written agreement that can be executed than it is to litigate later.

For further information, please contact George J. Tyler, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600.

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Wharton insurance Briefs An ARA Member

I wanted to reach out to you regarding a situation we’ve been having with several of our clients. I know that there are times when a minor accident (auto- or workers’ comp-related) might occur where you settle or handle the claim and it doesn’t seem necessary to report it to the company. However, every claim that occurs (especially when there’s a person or bodily injury involved) needs to be reported to the company or your agent as soon as you are made aware of it. Not reporting it could result in the denial of the claim. This is outlined in the policy’s “Duties in the Event of Accident, Claim, Offense, Suit, Loss or Acts, Errors or Omissions” provisions, or it could be in another named provision.

As a reminder, if you are made aware of an occurrence of a claim (regardless of whether you believe it is your fault), you MUST report it upon first knowledge.

As always, if you have any questions, please contact me.

Mario Defilippis, AAi, Vice President (800) 221-0003 (ext. 1320) • (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

LET US TURN THEM AROUND!

Contact AASP-MN News Sales Director Alicia Figurelli

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NO BRAKES

by Ron Ananian

CUSTOMER TRAINING

We all do it but are probably unaware of it – training or (more appropriately) programming customers. Shop etiquette, if you will – where to park, no house charge accounts, how the shop works day to day, etc. Sometimes it’s simple. We tell them when the car will be done, and so it is. Do that enough times, and they are trained (or programmed) to know what to expect from us. Does it work like this all the time?

Hardly.

Hey, I still fix cars, so don’t think this is a Snow Whitestyle fairy tale you’re reading. However, there is a bit of evil in this month’s story.

Coupons. They are the wicked stepmother of customer programming. Every time someone asks if you can do what you do for cheaper, blame society. Everything today has a coupon, and this teaches customers that EVERYONE can work for cheaper…or so it seems.

The following was a recent radio show lead-off opening conversation. Before you read this, I have to warn you that I may have been too harsh. I couldn’t resist: “The programming of customers is paying off; I’m just not sure for whom. I’ve said it for years – coupons and auto repair don’t work together. They diminish the value of the repair and what this industry is all about.

Someone came in one morning recently to ask our opinion on whether he was entitled to a discount from the Acura dealer he has been going to for the past 16 years.

His 2001 Acura needed a starter and we were the only mechanics he trusts – even though he A) doesn’t bring his car to us, and B) we didn’t have a clue who he was.

He rambled on.

‘I think $580 is too much money. I also feel that the service writers make too much money because of the way they dress and their jewelry…They only offered me a 10percent discount, but because they have been sending me coupons all these years for other services with 20 percent off and more, this repair should also be up for that much of a discount at the very least.’

What could I do? I think to help my fellow repair shops that count on doing it ‘cheaper’ to get people in the door versus doing it correctly, I was left with only one option…

I told him to go back and get 25 percent. I told him to be sure to ask for the discount in front of a roomful of other customers…That always makes a nice image – a photo op moment…

I figured I’d let him drive them crazy; nothing like helping your competition, I always say.

Welcome to The Car Doctor…”

Judging by the fan mail, the listenership enjoyed it. (I did, too.)

THE BOTTOM LINE IS...

Coupons are evil. They’re loss leaders for some, but to me, they tell the world we can always do it cheaper. We are enabling and encouraging consumers to walk the path of auto repair in a discount environment. The truth is that we are hurtling at light speed towards a world of tougher diagnostics and higher costs. These are not cars anymore; they have become computers and pinball machines with tires and engines. The coupons may never go away, but the shops that give them mainstream support will be shrinking in numbers. Mark my words – change is coming. Doing it cheaply becomes less and less of an option every day.

Doing it correctly and efficiently is the world we are being forced to live in due to the technology squeeze. And that’s no fairy tale. NJA

’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good mechanics aren’t expensive; they’re priceless.”

Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.

Meet the Car Do ctor during his LIVE broadcast at NORTHEAST® 20 16 Saturday March 20 2-4 pm

“The Car Doctor” can be heard LiVE in the New york market. Tune in Saturdays, 2-4pm on WRCR AM 1700 for new shows!

New Jersey Automotive | March 2016 | 61

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Mazda of Lodi 130 Route 46 East Lodi, NJ 07644 Phone: 866-716-0511 Fax: 973-594-4933 www.mazdaoflodi.com

Action Mazda 180 US Highway 202/31 Flemington, NJ 08822 Phone: 908-782-8250 Fax: 908-237-0036

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NEWSFLASH

Urethane Supply Company Announces Name Change to

Urethane Supply Company, a pioneer in the field of automotive plastic repair since 1981, has announced a change in the name of its business to “Polyvance.” The change in name reflects the progression that has occurred in automotive plastics since the company’s inception.

“Back in 1981, most of the bumper covers were actually made from urethane plastic,” says Kurt Lammon, company president. “The founder of our company, Jim Sparks, came up with the original name because he supplied products required to repair urethane bumper covers.”

Because most bumper covers are now made from blends of polypropylene, the old name has created confusion in the marketplace.

“We often get calls from people who want to buy urethane foam, thinking that we supply urethane,” says Lammon. “We wanted a name that speaks to our main mission, which is advancing the technology of polymer repair.”

“Advancing Polymer Repair” is the official tagline and the inspiration for the name “Polyvance.” Polyvance will continue to be devoted entirely to helping body shops profit from plastic repair and refinishing through its innovative products and training. Polyvance will continue production of its most popular products – the 6059-C Nitro Fuzer nitrogen plastic welding system, the 3601 and 3611 Bumper & Cladding Coat Adhesion Primer and the 5700HT Mini Weld Model 7 airless plastic welder – as well as its complete line of plastic repair and refinishing products. Polyvance’s products will continue to be available through paint, body and equipment distributors across North America.

Mitchell Portnoi Named Partner at Post, Polak, Goodsell & Strauchler Monthly New Jersey Automotive contributor and AASP/NJ member Mitchell H. Portnoi has been named a partner at his law firm, Post, Polak, Goodsell & Strauchler.

Portnoi has been with the firm since 2013 and was named a partner effective January 1. He concentrates his practice in all aspects of litigation, with an emphasis on serious plaintiffs’ personal injury matters, workers’ compensation and medical malpractice.

Portnoi has volunteered with the

District VII Ethics Committee and the District XII Fee Arbitration Committee, as well as donated time with Trial Lawyers Care (TLC) in assisting victims of the 9/11 World Trade Center tragedy in receiving awards from the Victims Compensation Fund. Additionally, he has been a speaker at the New Jersey Association for Justice Boardwalk Seminar on Diminished Value for Motor Vehicles.

New Jersey Automotive and AASP/NJ congratulate Portnoi on this accomplishment. For more information on him or Post, Polak, Goodsell & Strauchler, go to postpolak.com.

NJA

NJA New Jersey Automotive | March 2016 | 67

See us at NoRTHEAST® Booth # 212

©2016 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times.

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THE LIST

We reached out to some of our readers to find out what they're most looking forward to the weekend of March 18-20 at NORTHEAST 2016.

What Do You Like Best about

“Getting to talk to my peers. I think I get more ideas about how to run my business from talking to other shop owners than I do from the classes.

Of course, the seminars are all very helpful, but hearing from someone who does what you do in your own market really gives you new perspectives on problems you might be facing that they might have solved.”

“The only way I can stay ahead in this business and not have to travel is to go to NORTHEAST.”

?

“it’s the best place for repairers in New Jersey to go. i enjoy everything about it, from the exhibitors to the seminars to the networking opportunities. i always come away from the show rejuvenated and excited for Monday. you normally only get something like this from a national event.

We’re lucky enough to have it just an hour or so away.”

“Knowing that, for a weekend, I have everything our industry has to offer in my backyard.”

“I always attend the Leadership Conference. It always keeps me informed in terms of what's going on in the industry — not just in my state, but the states around me, too.

NORTHEAST is one of the few places in the country where our industry can present a united front.”

“Every time i go to NoRTHEAST, i hear about a new tool or piece of equipment that – even if it’s just temporarily – revolutionizes the way i work in my shop. i LoVE SEEiNG WHAT THE

VENDoRS HAVE To offER ME.”

“I’m looking for a new welder for my shop, and I know NORTHEAST is going to be the place to find it. I think the opportunity to make those big purchases for my shop, all while being face-to-face with the person who knows the most about what I might be buying, is the biggest draw for me.

You’re putting down so much money on this equipment; you might as well know exactly what it is that you’re getting for your dollar.”

“I go every year to hear what LARRY MONTANEZ has to say. He’s so knowledgeable about the field, but he’s also really freaking entertaining. The guy definitely says what’s on his mind.”

“Last year at the show, I got some of the information I needed to get myself on track to be Ford aluminum-certified.

It’s been a big booster for my business, and I wouldn’t have known where to start if I didn’t have the manufacturer in my own backyard talking about how to go about it. Now that I’m almost there, I’m really looking forward to ‘Body Shop Certification and You: An OEM Panel Discussion’ on Saturday, March 19 to help me take that next step.”

New Jersey Automotive | March 2016 | 69

ADVERTISERS’ INDEX Acme Nissan ........................................31 Amato Agency ......................................23 American Honda Motor Company ..........4 AP Media ..............................................35 Audi Group............................................36-37 Auto Body Distributing Co. ....................17 Axalta Coating Systems ........................6 BMW Group ..........................................20-21 BMW of Springfield................................13 Bridgewater Acura ................................48 Cadillac of Mahwah ..............................55 Classic Audi ..........................................67 Collision Equipment Company................29 Dover Dodge Chrysler Jeep....................IBC Empire Auto Parts..................................25 Fenix Parts ............................................22 Flemington Audi ....................................5 Flemington Group..................................30 Fred Beans Parts ..................................26 Grand Prix Subaru ................................51 Glen Toyota ..........................................OBC Hyundai Group ......................................33 IkotecUSA ............................................11 JMK Saab/Fiat of Springfield..................57 Klean Frame..........................................70 Levittown Ford ......................................51 Maxon Mazda........................................45 Maxon Hyundai......................................54 Mazda Group ........................................62 Mercedes-Benz of Freehold ..................10 The Mike Kaufmann Dealer Group..........25 MINI Group............................................58 Mitsubishi Group ..................................65 Mopar Group ........................................60 NUCAR..................................................14-15 Paul Miller Audi ....................................59 Porsche Group ......................................27 PPG ......................................................3 Polyvance..............................................66 Post Polak ............................................24 Princeton BMW ....................................63 Princeton MINI ......................................12 Sherwin-Williams ..................................42 Subaru Group........................................64 Subaru of Morristown ............................39 Steck Manufacturing..............................18 Town Motors ........................................68 Toyota Group ........................................53 Toyota of Hackensack ............................IFC Toyota of Morristown ............................39 Tri-State Luxury Collection ....................8-9 USI of North America ............................19 Valtek....................................................70 VIP Honda ............................................48 VW Group ............................................49 Westbury Jeep Chrysler Dodge Ram SRT...50 Wheel Collision Center ..........................35

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