New Jersey Automotive September 2018

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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)

September 2018 $595

www.grecopublishing.com

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We Appreciate Your Business!

Flemington Audi, the largest Audi wholesale parts dealer in NJ, thanks our customers for continued loyalty and business. We appreciate the opportunity to serve you over the years, and look forward to helping you save time and increase profits in the future with Audi Genuine Parts.

• Our expert parts staff is ready and able to give you premium customer service and help you meet the demands of your business.

• Our concierge support helps you get the parts you need when you need them to wow your customers.

• We offer daily deliveries throughout the tri-state area with our fleet of 22 delivery vans.

• As our customer, you have access to the Audi technical support hotline to help you speed up installation and get repairs out the door quicker.

Flemington Audi 213 Routes 202/31 South, Flemington, NJ 08822 Business Hours: M-F 7:30am – 5pm Sat 8am – 4pm

Parts Direct: 877.857.2787 Parts Fax: 908.782.1795 Email: rmuir@flemington.com www.njparts.com mikekaufmann d e a l e r g r o u p “It’s all in the name”

AUTO BODY DISTRIBUTING CO

Join our growing list of satisfied customers!

Orders accepted by phone, fax and email.

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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2017 - 2019 OFFICERS PRESIDENT Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net COLLISION CHAIRMAN Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dandmautobody.com 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 John Craggan, Ultimate Collision Repair, Inc. 732-494-1900 / jcraggan@ultcollision.com Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.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 / ted@oceanbayautobody.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 Dave Gruskos, Reliable Automotive Equipment 732-495-7900 / dave@rae1.com Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com

PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com

CONTENTS

VOLUME 48 NUMBER 9 | September 2018

10 OUT OF BODY AND (MECHANICAL) EXPERIENCES 14 PRESIDENT’S MESSAGE 18 MECHANICAL CHAIRMAN’S MESSAGE 20 EXECUTIVE DIRECTOR’S MESSAGE

22 I-CAR CALENDAR 28 14TH ANNUAL 2018 AASP/NJ LOU SCORAS MEMORIAL GOLF OUTING REGISTRATION 57 NJA ADVERTISERS’ INDEX

INDUSTRY UPDATE by John Walczuk, ZB Negotiations 24 Diminished Value: Fact or Fiction?

VENDOR SPOTLIGHT by Alana Bonillo 32 Innovative Solutions & Technology Helps NY Shop Thrive LOCAL NEWS 36 Glen Toyota Celebrates 50 Years!

38 AASP/NJ Readies Members for Annual License Renewal ASK MIKE 41 What Does Nissan/Infiniti Say about Feather, Prime and Block?

46 COVER STORYby Joel Gausten Solving the Employment Crisis: A Roundtable Discussion

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 57 Wharton Insurance Briefs by Mario DiFilippis

EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com CONTRIBUTING EDITORS Charles Bryant • Mario DeFilippis • Jeff McDowell • Mitch Portnoi • Ron Ananian Keith Krehel • Jerry McNee • Bob Dirkes

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 © 2018 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. Stock Images courtesy of www.istockphoto.com.

Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Phil Dolcemascolo Tom Elder Bob Everett

Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano Michael Lovullo Jeff McDowell 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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The repair of luxury vehicles begins with GENUINE PARTS

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Our flagship dealerships are pleased to offer a wide selection of authentic genuine parts so you can repair your customer’s luxury car to the highest quality.

Not only do we sell WHOLESALE GENUINE PARTS across the tri-state area — we have a knowledgeable team of parts specialists that can find the component you need for a seamless vehicle repair.

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LAND ROVER GLEN COVE 70 Cedar Swamp Road Glen Cove, NY 11542 855.582.4719 landroverglencove.com

JAGUAR HUNTINGTON 1249 E. Jericho Turnpike Huntington, NY 11743 855.582.4714 jaguarhuntington.com

LAND ROVER HUNTINGTON 1249 E. Jericho Turnpike Huntington, NY 11743 855.582.4713 landroverhuntington.com

JAGUAR SOUTHAMPTON 355 Hampton Road Southampton NY 11968 855.582.4715 jaguarsouthampton.com

LAND ROVER SOUTHAMPTON 355 Hampton Road Southampton, NY 11968 855.582.4718 landroversouthampton.com

WE WILL GO THE EXTRA MILE FOR YOU.

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

The Pups

by THOMAS GRECO, PUBLISHER

Those of you who read this column regularly know that we lost our golden retriever Rusty in February 2017. I wrote quite a long piece on Rusty and what he meant to us and what he went through in the last year of his life. If you read that, you know how we feel about dogs in our family. After Rusty passed, we knew we were going to get another dog, we just didn’t know when. And we knew it was going to be another golden retriever because Rusty had convinced us that there was no other breed like them. I also felt that Rusty was such a great dog that we would get TWO goldens this time around. I must have forgotten to share that with my wife.

We had been searching for a golden for about four months when we found a breeder in Connecticut. I contacted the breeder and went through the inspection process you have to go through these days. We traveled up

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to just outside of Hartford to meet with her and were introduced to the future parents of our new puppy. That’s when I asked if we might be able to have two of the pups when they were born. My wife loudly asked, “TWO?!” I said, “Yes. Two.” She just shook her head and threw up her arms.

The breeder told us that two would be available at the end of September. We made the payment and took the looooong ride home.

By the time we hit Jersey, my wife and kids were on board and we were very excited about the additions to our family. In fact, we had already decided on their names: Lucy (in the Sky with Diamonds) and Penny (Lane). I know, I know. Will the Beatle nonsense ever stop?

No. About a week after the trip, the breeder called to tell us that one of her pups, from an earlier litter, was available. She

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had given the dog to her daughter, but her daughter started a new job and didn’t have the time to take care of a puppy. (She had named her – ironically enough – Lucy!) She asked if we would be interested in taking this pup now and taking the second one when the September litter was born. So back to Connecticut we went, and we met Lucy. It took maybe two seconds to fall in love with her. A few weeks later, sevenmonth-old Lucy was home with us. Now, I have to admit, we all had forgotten how much work it takes to train a puppy (never mind two!) so we had a few very stressful months back then. But Lucy was already housebroken, so the hard part was taken care of. She adapted very quickly. She made herself at home almost immediately. She wasn’t home two hours and already found her place on our couch.

A couple months later, Penny arrived. Penny, who was eight weeks old, of course wasn’t housebroken, so that took a lot of work. All due credit to my wife. Upon meeting Penny, Lucy was like, “Who the hell is this?” We thought since they were actually biological sisters, they might take to each other faster. Nope. We also thought since they had the same parents they would have similar personalities. Wrong again.

Lucy is very laid back and a fraidy-cat. Penny is a mischievous devil. When they decide to rip up the rug or devour our ottoman, and we come in the door, Lucy runs and hides behind the dining room table. Penny just sits there and looks at us like, “Yeah. I did that. What are you gonna do about it?”

This attitude came to a head last week. Almost every night I treat myself to a snack around 3am. I have a very specific

routine. (Surprise!) I sit in our recliner and usually eat some popcorn or chips with lemonade, while reading my iPad. Both dogs know the routine. They know not to bother me while I’m having snack time. They patiently sit by my chair and wait until I’m done. However, the minute they hear me start to wrap up the bag, they come running for their snack time. They both sit in front of me (see the picture on facing page) and I share whatever I’m eating with them for a few minutes. But last week was different. I was eating popcorn and Penny decided to get an early start. I hadn’t finished, and she started climbing up the chair, sticking her snout in the bag, trying to get at the chips. I pushed her away several times but she wouldn’t give up. She then proceeded to jump on me (she’s about 60 pounds) and lick my face to distract me so she could get to the chips.

It didn’t work. Now I was mad. I pushed her off the chair, grabbed the remote and threatened as if I was going to throw it at her. She just looked at me with those big black eyes as if to say, “Go ahead. I dare ya” and walked away. I cut snack time short, and this time I did not share any of it with the dogs.

Penny had to be taught a lesson, right? So, I got up and as I threw the bag of chips away, I could feel her eyes staring at me. I just walked by and went downstairs to the basement.

About an hour later, I came back up and saw something on the floor. I couldn’t make it out at first, so I put my glasses on. Right in the middle of the living room was the remote. In a hundred pieces. With Penny sitting right by it.

“I got your remote right here…”

I love my dogs.

NJA

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WHAT HAVE YOU DONE FOR YOU LATELY? PRESIDENT’S MESSAGE

As president of AASP/NJ, I try my best to encourage our members to explore new ways to make a fair and reasonable profit. This month, I’d like to ask you a critical question: What have you done in the past six months to a year to stand up for your shop, your customers and our industry?

I’ve been in this field for decades, so I know how difficult it is to keep things moving in a positive direction.

516-361-9220

We have outside entities pushing back against us and keeping us from maintaining a healthy business. I understand your frustrations, but are you just accepting everything that’s being handed to you instead of fighting back? Are you insisting on repairing vehicles based on OEM procedures?

Are you using a cost accounting system for your paint and materials? Are you educating insurers on the possible

www.collisionequipment.net

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by JERRY MCNEE

differences between OEM and aftermarket parts? Are you filling out the Variable Rate Survey – and doing so correctly? The first step to taking back our industry is to get a backbone. It’s time to stand up for what is right, have the appropriate data to back up your position and refuse to be told “no.”

Here’s something an insurer might have said to you today: “The shop down the street isn’t charging for doing that; you’re the only one.” Well, I’ve been listening to that for 40 years, and it doesn’t upset me or slow me down anymore. Every day, I look for ways to determine my true costs of doing business and establish my charges in a fair and reasonable manner. I don’t just agree with what someone is telling me; I make sure I have the facts and numbers available to defend myself when my charges are challenged. I hear from shops all over the country that are beginning to take charge and draw lines in the sand over what’s right. In many cases, these shops are succeeding in changing things for the better. None of our industry’s problems will be solved in a day (or even a year or more), but we need to start somewhere. Again, what have you done differently in the last six months to a year to better serve your customers and improve your bottom line? If you don’t have an answer, then you have a lot of work to do.

AASP/NJ is here as a resource to arm you with the tools you need to survive current obstacles in this industry and thrive in the future, but we need you involved to help us make this possible.

We need you to help those who have slowly gained traction behind the scenes and join them in standing up. We need you to attend our seminars, focus on your numbers, use cost accounting systems and P-Pages and utilize OEM documents and training to repair vehicles the correct way. If we’re not all collectively pushing in the right direction, then we’re never going to experience the changes we desperately need. It’s that simple.

NJA

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© 2018 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.

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THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW.

For Original BMW Parts, contact one of these authorized BMW centers: BMW of Springfield 391-399 Route 22 E. Springfield, NJ 07081 Toll Free: 800-648-0053 Fax: 973-467-2185 bmwofspringfieldnj.com

Flemington BMW 216 Route 202/31 Flemington, NJ 08822 PH: 877-657-2787 Fax: 908-782-1795 njparts.com/bmw

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Princeton BMW 3630 Quaker Bridge Road Hamilton, NJ 08619 PH: 609-570-1611 Fax: 609-570-1602 princetonbmw.com

Wide World BMW 125 East Route 59 Spring Valley, NY 10977 PH: 877-817-3895 Fax: 845-425-5080 wideworldofcarsbmw.com

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Circle BMW 500 Route 36 Eatontown, NJ 07724 Parts Direct: 732-440-1235 Fax: 732-440-1239 wholesale@circlebmw.com circlebmw.com

Paul Miller BMW 1515 Route 23 South Wayne, NJ 07470 PH: 973-696-6060 Fax: 973-696-8274 paulmillerbmw.com

Park Ave BMW 530 Huyler Street South Hackensack, NJ 07606 PH: 201-843-8112 FAX:201-291-2376 parkavebmw.com

BMW of Bridgewater 655 Route 202/206 Bridgewater, NJ 08807 PH: 908-287-1800 FAX:908-722-1729 bridgewaterbmw.com

BMW of Bloomfield 425 Bloomfield Avenue Bloomfield, NJ 07003 Parts Direct: 973-748-8373 psantos@dchusa.com

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MECHANICAL CHAIRMAN’S MESSAGE

VEHICLE LONGEVITY - MILEAGE Okay, so we’ve all heard that “they don’t build them like they used to,” but in my opinion, the best vehicles ever made (not accounting for style) are currently coming off the assembly lines. Compared to the cars I worked on when I started my auto tech career in the 1970s, today’s cars and trucks are a marvel to behold.

Present-day vehicles:

Not long ago, achieving 100,000 miles was a lofty, sometimes achievable goal, provided there was enough maintenance throughout the vehicle’s life (usually at 3,000-mile service intervals). This goal is easily obtainable nowadays. I often work on fleet vehicles and have gained a unique perspective of just how long an automobile’s life is practical and costeffective, obviously with no consideration to subjective factors get significantly better fuel mileage; such as current style and new car feel, produce more power, usually etc. out of smaller-sized engines; One fleet in particular that allows feature greatly reduced us to maintain their vehicles by emissions from years ago; (written) factory standards had the are usually lighter in weight, following results: Out of the entire fleet which help all the above; of 11, all are daily-driven vehicles require less repairs and getting routine service at 5,000-mile maintenance over their lifespan.

Good for owners. Not so good for intervals. All engines run on gasoline.

Annual mileage per vehicle ranged us, but this is progress; and last longer. Just how long? Let’s from 20,000 to 50,000 miles. At the time, all of the fleet had over 100,000 take a look. . . miles with five units between 100,000-

by KEITH KREHEL

200,000 and six units between 200,000 to 300,000 miles. One unit had over 300,000.

What makes this impressive is that none of these vehicles had ever had an engine repair or replacement. Tows are not an issue to the owner, as they rarely break down in the field despite the fleet averaging 355,000 miles per year.

At present, one vehicle now has over 414,000 miles on the original engine and has never been taken apart or repaired other than tune-ups. I am interested to see how far it goes.

The results were obtained by the basics, following the factory intervals and using quality oil, synthetic blend (only not full synthetic) and “real” oil filters.

In conclusion, based on my experience, 250,000 to 300,000 is the new goal for mileage, and even this mark can be readily exceeded.

NJA

KREHEL AUTOMOTIVE REPAIR

C-Technician Auto/Truck

Visit our website at: www.krehelauto.net

Busy, modern, diesel/automotive shop, over 35 years in business is looking for a full-time C-Tech.

Experience helpful, but will consider a recent graduate from technical school.

Must be enthusiastic, motivated and energetic.

Great opportunity to learn all aspects of the trade.

BIG opportunity for advancement.

Oil changes and services associated with: • Tire mounting, balancing and repair.

• Battery replacement.

• Exhaust systems.

Duties include, but not limited to:

Must be able to communicate in English. Must have valid driver's license.

Uniforms Medical Insurance Paid holidays and vacations No Sundays Half-day Saturdays

Our Benefits include:

Please apply in person during business hours Monday - Friday Krehel Automotive Repair 955 Paulison Ave. Clifton, NJ 07011 Or please email resume to karenk@krehelauto.net

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Auto/Truck MechanicTechnician A/B

Expanding fleet repair and inspection facility is seeking a responsible, motivated and experienced auto and truck technician. A/B technician will be accountable for timeliness, thoroughness and customer satisfaction.

2-3 years’ minimum experience NO Sundays Modern, air conditioned, state of the art facility Current software and computer terminals Professional, respectful service writers

Competitive hourly wages with opportunity for commission Health insurance Paid vacation and holidays

Our Benefits Include:

Paid overtime available Free continued education Uniforms 401(k)

Valid driver's license required.

In person applications are currently being accepted at our shop location during normal business hours.

Krehel Automotive Repair 955 Paulison Ave. Clifton, NJ 07011 Or please email resume to karenk@krehelauto.net

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EXECUTIVE DIRECTOR’S MESSAGE

“We Don’t Pay for That” is Yesterday’s Game

Some of the vehicles on the roads today are already driving themselves. The past is gone. The days of saying, “If I’m not getting paid for it, I’m not going to do it” are gone – or they better be. Does anyone think that a collision shop should take the position that they will be relieved from liability if a safety-related mechanism fails after a repair and it causes injury or death? If so, I would strongly encourage you to think again.

Now I am not an attorney, but I consult with attorneys on a regular basis. I have been advised over and over that the shop that repairs the damaged vehicle is liable for negligent or improper work – not only to the owner of the vehicle, but to any future owner of the vehicle during its lifespan.

A prime example of this is the recent case out of Texas, where attorney Todd Tracy led a lawsuit against a body shop that failed to repair a vehicle to its factory design. The vehicle was later involved in another collision, seriously

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injuring its passengers. Years ago, collision shops and insurers were able to play Let’s Make a Deal while negotiating the cost of repairs and get away with it because those automobiles did not even remotely resemble the complicated cars that are on the roads now. Many of these items require scanning and recalibration after a collision occurs. Some of those complicated items include (but are not limited to) Adaptive Cruise Control-Plus with Full Stop, Blind-Spot Monitoring (BSM), Full-Speed Forward Collision Warning-Plus, Forward Collision Warning-Plus, ParkSense Parallel/Perpendicular Park Assist, Ready Alert Braking (RAB), Global Position Sensor (GPS) and Lane Departure Warning with Lane-Keep Assist.

The failure to replace or recalibrate any of these items can certainly cause the vehicle to fail to provide the protection it was designed to, and the collision shop will be liable for any injuries suffered as a result.

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by CHARLES BRYANT

Like I mentioned earlier, some collision shops in the past took the position that they would not perform repairs that an insurer refuses to pay for. The shop could leave out certain procedures because an appraiser would not pay for it, or it could use the money for a procedure to compensate itself for a low Labor Rate the appraiser paid for the work required.

Now, listen carefully. Those days are over! Today’s automobiles are basically rolling computers, so complicated that many can already drive themselves, and there is no doubt that all vehicles will have that ability before long. However, unlike the vehicles from the past, there should not be negotiations taking place that leave out repair procedures such as pre- and postrepair scanning and calibration or recalibration when required. The failure to perform certain procedures can actually cause the vehicle to crash or not perform as intended. This won’t provide the protection for the passengers as per factory design.

Collision shops need to immediately stop playing games with insurers. They should demand to be paid for every procedure that is required to put the vehicles back to as close to pre-accident condition as humanly possible at a rate that allows for a reasonable profit.

Collision shops need to understand that an insurance company paying for repairs does not automatically become the shop’s customer. The vehicle owner is the shop’s customer and ultimately the party New Jersey Automotive | September 2018 | 21

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CALENDAR

SEPTEMBER 4, 2018 Plastic & Composite Repair Allstate Insurance, Bridgewater SEPTEMBER 5, 2018 Measuring Allstate, Wall Township SEPTEMBER 6, 2018 Adhesive Bonding Reliable Automotive Equipment, Belford SEPTEMBER 12, 2018 Plastic & Composite Repair Allstate, Wall Township SEPTEMBER 13, 2018 Measuring Reliable Automotive Equipment, Belford Plastic & Composite Repair Ramada Inn – Newark Airport, Newark Hazardous Materials, Personal Safety & Refinish Safety Metropolitan Car-O-Liner, Inc., Mahwah SEPTEMBER 18, 2018 Corrosion Protection Innovative Solutions & Technology LLC, Lincoln Park SEPTEMBER 19, 2018 Steel Unitized Structures Technologies & Repair Allstate, Wall Township Squeeze-Type Resistance Spot Welding LKQ Keystone, West Deptford SEPTEMBER 20, 2018 Automotive Foams Ramada Inn – Newark Airport, Newark Understanding the Cycle Time Process Reliable Automotive Equipment, Belford Understanding the Cycle Time Process LKQ Keystone, West Deptford

EXECUTIVE DIRECTOR’S MESSAGE responsible for the full cost of the repairs.

I know there will be shop owners thinking this is easier said than done.

My response to those who feel that they have no choice but to accept whatever the insurance companies want to pay is to either get educated and take a stand or start looking for another way to make a living. Those who continue to go down the same old road and not perform repairs according to the manufacturer guidelines are headed for disaster one way or another.

They will either wind up being sued for performing repairs improperly and lose everything or simply be driven into bankruptcy. Either way, the result is disastrous.

The key to resolving all the problems the industry is currently experiencing is to wake up and realize who your customer is. It isn’t an insurer; it’s the owner of the vehicle. In fact, there is nothing in the Auto Body License Law that even requires a collision shop to talk to an insurer about how a damaged vehicle will be repaired, what procedures the shop can or can’t charge for or what the Labor Rate should be. There is also nothing in the Unfair Claims Settlement Practices Act that requires a collision shop to negotiate the cost of repairs with an insurer. It has just been done that way for so long that everyone just thinks that is what is supposed to happen – and that insurers can do whatever they want.

To avoid liability, collision shops need to demand to be paid to repair damaged vehicles according to the manufacturer guidelines and hold the vehicle owner responsible for the final payment of the full cost. It’s a whole different story when an insurer refuses to pay the vehicle owner the full cost of safe and proper repairs. The vehicle owner is a party to the contract of insurance, unlike a body shop attempting to act on behalf of the vehicle owner when it is not a party to the insurance contract.

When an insurer representative or appraiser says they don’t pay for something in relation to a needed and necessary repair procedure – especially when there is a manufacturer position statement available – the negotiations should be ceased immediately. The appraiser should be asked to leave the premises and not be allowed to return.

The vehicle owner should then be contacted and informed about what has taken place, and the customer should be the one to address the issue with the insurer acting inappropriately. The collision industry must start taking back control of its own industry before it’s too late.

I hate to say it, but the shops that continue to go along with insurers and repair vehicles any old way dictated by insurers’ payment need to be eliminated from the industry. I urge the members of the collision industry to pay heed to the information referenced in this message. If anyone would like to discuss the information, call me at (732) 922-8909. My line is always open to all.

NJA

SEPTEMBER 26, 2018 Sectioning of Steel Unitized Structures Allstate, Wall Township SEPTEMBER 27, 2018 Corrosion Protection Ramada Inn-Newark Airport, Newark Squeeze-Type Resistance Spot Welding Reliable Automotive Equipment, Belford

For more information, visit i-car.com

J.A. Auto Body, Inc. Belleville, NJ

NEW MEMBERS Dynobody Collision Inc. Woodbridge, NJ Division Auto Body Keyport, NJ Artie’s Custom Styling Long Branch, NJ

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22 | New Jersey Automotive | September 2018

Tierno’s Auto Body, Inc. Middlesex, NJ The Auto Body Shoppe Caldwell, NJ Main Street Garage Franklin, NJ Allstate Collision Lakewood, NJ

South Main Street Auto, Inc. Manville, NJ Union Collision Union, NJ Lusamer Auto Body Corp.

Newark, NJ Beyond/Give Back Bear, DE

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INDUSTRY UPDATE By John Walczuk, ZB Negotiations

Diminished Value: Fact or Fiction?

The concept of diminished value is often disputed by insurance carriers as fiction. This assumption by the carrier appears to be based on a simple fact: The actual loss has not yet been realized. Taking this approach, the carrier will often attempt to avoid any consideration for the current decrease in the resale value of a vehicle.

Why should a vehicle owner need to sell their previously undamaged vehicle to recognize a loss? Simple answer: They should not. The fact that a vehicle’s resale value is less after an accident does result in an economic loss to the owner. That loss in resale value should be recognized by and paid for by the insurance carrier.

Taking a moment to understand the concept of diminished value provides a clearer understanding. A vehicle once damaged in an accident has a lower resale value when compared to one not involved in an accident. One can see this when referring to CARFAX, TrueCar or other services that consider prior accidents in determining resale value.

So what is the definition of a diminished value loss?

How do we determine what is the diminished value loss?

The definition of a diminished value loss is the current reduction in the resale value of a vehicle that can be directly attributed to an accident. The process of measuring

or calculating this loss is complex. In determining this loss, one must consider factors including the extent of damage, comparable vehicles and uniqueness of the make and model.

Additionally, consideration must be given to the possibility that once damaged in an accident, there may not be a resale market for that vehicle in the future. This is especially true with exotics, antiques or higher-priced collectibles.

Draw your own conclusion. Is diminished value fact or fiction?

Our position is simple. Diminished value does exist after an accident, and our settlement results prove it every day.

NJA

*This article is not legal advice and may not reflect the opinions of AASP/NJ and Thomas Greco Publishing.

John Walczuk is the director of client services for ZB Negotiations. The company specializes in helping vehicle owners obtain fair market settlement offers for their totaled vehicles. John can be reached at John@ZBLLC.net or (516) 364-0713.

WE BRIDGE THE GAP We are different!

We provide a unique level of claims settlement services. This level of service is not offered by other vendors and helps to ensure positive valuation settlements.

Our company goes the extra mile to ensure your customer is satisfied. We will evaluate the insurance carriers initial offer AT NO COST, and if need be we will work as your customers agent and negotiate directly with the insurance carrier.

WHAT CAN WE DO FOR YOU? • Total Loss • Diminished Value • Loss of Use

CALL TODAY

(516)364-0713

zbllc.net

Let us help make your customer financially whole.

24 | New Jersey Automotive | September 2018

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Superior service starts with superior parts.

Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life.

Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you Contact these Mazda dealers for all your parts needs: Maxon Mazda 2329 Route 22 West Union, NJ 07083 Phone: 800-964-7281 Fax: 908-851-5631

Nu Car Mazda 172 North Dupont Highway New Castle, DE 19720 Phone: 800-346-5283 Fax: 302-322-7135

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

Wayne Mazda 1244 Route 23 North Wayne, NJ 07470 Phone: 973-646-0333 Fax: 973-694-1700 www.waynemazdafactoryparts.com

New Jersey Automotive | September 2018 | 25

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26 | New Jersey Automotive | September 2018

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THE FOUNDATION OF OUR BUSINESS SUCCESS IS YOUR LOYALTY.

OUR SUCCESS IN BUSINESS COMES FROM OUR RELATIONSHIP WITH LOYAL CUSTOMERS. With years of service and commitment to the BMW brand, we reflect on our past and look to the future, thankful for your loyalty and dedication by allowing us to serve you. We also want to extend our services to new and existing businesses who are looking for something more than just a parts supplier. · · · · ·

We are part of the BMW NA delivery program that delivers to us three additional times per day We have a highly-trained and experienced team of BMW parts advisors Our team of advisors can be counted on to be knowledgeable when you need technical support We update our inventory daily to ensure we stock the most current items to meet your demands All original BMW parts carry a 2-year limited warranty

BMW of Springfield Wholesale Parts Hotline: 800-648-0053 Wholesale Direct: 973-671-9321 Wholesale Fax: 973-467-2185 391 Route 22 East, Springfield, NJ 07081 Orders accepted by phone, fax, and email to speed your delivery and your repairs. Ask about our next-day UPS delivery.

Email: wholesaleparts@bmwofspringfieldnj.com or visit us on the web: bmwofspringfieldnj.com

Join our growing list of satisfied customers. Save time, improve profits and keep your customers loyal. * If your order is placed by 10:30am, we will confirm availability and provide you with and ETA for delivery.

European model shown

New Jersey Automotive | September 2018 | 27

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14TH ANNUAL 2018 AASP/NJ LOU SCORAS MEMORIAL GOLF OUTING

Monday, SEPTEMBER 17, 2018 THE COLONIA COUNTRY CLUB • 300 Colonia Blvd., Colonia, NJ PLAYER REGISTRATION: Company

Player

Number of players:

___ x $225.00 = $ __________________

Dinner only:

___ x $75.00 = $ __________________

Hole Sponsorship:

___ x $400.00 = $ __________________ Total Amount: $ __________________

All payments must be received prior to the day of the outing.

Sponsor/Shop Name

Phone Number

10 am - Registration Begins 11:30 am -Lunch Served 1 pm - Shotgun Start 5:30 pm - Cash Bar 6pm - Dinner Served HELP SUPPORT AASP/NJ

________________________________________ Street: __________________________________ City: ____________________________________ State: ______________ Zip Code: ____________ Phone: __________________________________ Fax: ____________________________________ Email: __________________________________ Contact: ________________________________ ___ Hole Sponsorship ___ Platinum, Gold, Silver or Bronze Sponsorship

Platinum Sponsor - $3,000 Gold Sponsor - $2,000 Silver Sponsor - $1,500 Bronze Sponsor - $1,000 This outing is dedicated to the late Lou Scoras of Holmdel Auto Body. Part of the proceeds from this year’s outing will go toward a collision industry scholarship fund.

Please make checks payable to AASP/NJ Mail to: AASP/NJ, c/o Charles Bryant P.O. Box 734, Neptune, NJ 07753

_____ Check Enclosed OR _____ Bill My Credit Card ___ Visa ___ MasterCard ___ Amex ___ Discover Card #: ______________________________________________Name on Card: ____________________________ Exp. Date: ____________________________________________Security Code: ____________________________ Billing Address: ________________________________________________________________________________ Contact: Charles Bryant (732) 922-8909 or Randy Scoras (732) 946-8388, Colonia Country Club (732) 381-9500 or visit www.aaspnj.org 28 | New Jersey Automotive | September 2018

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New Jersey Automotive | September 2018 | 29

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Audi dealers strive to make you an Au

• Audi dealers offer an expanded inventory of sheet metal, bumper covers and suspension items that will reduce your cycle time.

• Audi dealers can order non-stocked parts on Friday and have them available on Saturday to help speed your repairs.

• Audi Genuine Parts carry a limited 12-month warranty* to help ensure quality and reliability from your repairs.

Installing Audi Genuine Parts from an Audi dealer is priceless to your reputation and your custom Flemington Audi 213 Route 202/31 Flemington, NJ 08822 Toll Free: 877-657-2787 Fax: 908.782.1795 email: rmuir@flemington.com www.NJPARTS.com

30 | New Jersey Automotive | September 2018

Classic Audi 655 North Macquesten Pky. Mount Vernon, NY 10552 914.663.2870 Fax: 914.663.2878 email: parts@westchesteraudi.com www.westchesteraudi.com

Paul Miller Audi 179 Route 46 East Parsippany, NJ 07054 Toll Free: 800.35.MILLER Parts Direct: 973.575.7793 Fax: 973.575.5911 www.paulmiller.com

DCH Millburn Audi 2211 Millburn Ave Maplewood, NJ 07040 Toll Free: 800.553.9250 Direct: 973.762.0262 Fax: 973-762-2381 www.millburnaudi.com

Audi Brooklyn 211 63rd Street Brooklyn, NY 11220 Phone: 718.492.6400 Fax: 718.492.8899 rmerchant@audibrooklyn.com www.audibrooklyn.com

NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:50 PM Page 31

Audi Genuine Parts fan.

Are insurance adjusters recommending lower cost substitutions when repairing your customer’s Audi?

customer’s peace of mind. Order Audi Genuine Parts from these select dealers.

Bell Audi 782 Route 1 Edison, NJ 08817 732.396.9360 Fax: 732.396.9090 www.bellaudi.com

Town Motors Audi 400 South Dean Street Englewood, NJ 07631 201.227.6506/6536 Fax: 201.541.0314 www.townmotors.com

Audi Eatontown 95 Route 36 Eatontown, NJ 07740 732.389.1000 Fax: 732.483.8455 www.eatontownaudi.com

Cherry Hill Audi 2261 Marlton Pike West Cherry Hill, NJ 08002 Wholesale: 856.665.5660 Fax: 856-773-4077 email: parts@cherryhillimports.com www.cherryhillaudi.com

Jack Daniels Audi of Upper Saddle River

243 Route 17 Upper Saddle River, NJ 07458 201.252.1500 Fax: 201.254.1552 email: jmarcella@jackdanielsmotors.com www.jackdanielsmotors.com

New Jersey Automotive | September 2018 | 31

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Innovative Solutions & Technology Helps NY Shop Thrive

VENDOR SPOTLIGHT By Alana Bonillo

Innovative Solutions & Technology worked with Colby Body & Fender Works to develop a more streamlined process at the shop.

(Left and middle photos courtesy of Innovative; right photo courtesy of Colby Body & Fender Works.)

Technological advances certainly continue to enhance the collision repair world for the better – and Innovative Solutions & Technology is here to help shops through the process.

Colby Body & Fender Works of Albany, NY is enjoying the benefits of the brand-new Spanesi 106 Bench and Touch Measuring System it recently purchased from Innovative. The shop is the first north of New York City and in the State of New York to have this cutting-edge equipment.

Nick Mattera, owner of Innovative Solutions & Technology, is pleased to provide Colby Body & Fender Works with these advanced additions.

“We are really happy to be distributing something that gives such a broad answer for the needs of our customers, and we are looking forward to the future with this.”

Clint Fluegge, owner of Colby Body & Fender Works, says the Spanesi 106’s ease of use has enabled his business to speed up repair times and get customers back in their cars faster. The shop now has the ability to mount the vehicle securely to its anchoring system (which is on a geared rail), allowing the technician the ability to move the vehicle for the necessary removal or repair of parts.

“The days of having to take the car off and take it over to the mechanic and push it back on are over, as you don’t have to do that with the Spanesi. This machine was well thought out, and it is as versatile as it can be to the technician.”

As for the Touch Measuring System, Fluegge believes it is “far and beyond anything in the industry today.” He adds that the shop can get a good pre-diagnostic without ever having to put the vehicle on the frame machine. This convenience results in less cycle time.

“The accuracy is far beyond any other measuring system I have demoed or looked at.”

32 | New Jersey Automotive | September 2018

Fluegge has owned Colby Body & Fender Works since 2012 after purchasing it from a friend. Since that time, he’s tripled his business and remodeled the facility. When it came time to purchase a new frame machine, his research led him to Innovative.

“I went with Innovative because of their track record for service. I felt comfortable taking that leap. There is a lot of mileage between us if there is a problem, but they do so much in this area with their spot welders that it has not been a problem with their serviceability. They stop by once a week if they are in the area just to ask me how it’s going.”

Fluegge says he was unsure of the right frame equipment for his shop.

“Innovative and their team suggested bringing a Spanesi Multibench to see if it was the right fit and would work properly for our shop’s needs. After they spent the time to install it, and we were using it, we decided the Multibench didn’t meet our needs, then decided that the 106 was the better fit for our shop. I called John Bluteau at Innovative, and the company swiftly came back, removed the Multibench and put in the Spanesi 106 with absolutely no fuss. They were so great through the whole thing.”

Additionally, Mattera and fellow owner Todd Witten were personally on hand at the shop during the installation of the machinery and have continued to lend Fluegge’s technicians support when needed.

“I can’t say it enough about how great they were, and this was a really good start of a working friendship with me,” Fluegge says. “It has created a solid, confident business relationship.”

For more information on Innovative Solutions & Technology, please contact (973) 348-9490 or visit isatwelding.com.

NJA

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LOCAL NEWS

Left to right: Shawn Caso (assistant general manager at Toyota Motor Sales), Jeff Buchanan (general manager at Toyota Motor Sales), Cathy Holtham (owner of Glen Toyota), Joel Esposito (sales manager at Glen Toyota) and Rob Daland (general Manager at Glen Toyota)

Glen Toyota Celebrates 50 Years!

E

arlier this summer, familyowned and-operated Glen Toyota of Fair Lawn celebrated its 50th anniversary.

Surrounded by members of the Toyota family, Toyota Motor Sales General Manager Jeff Buchanan presented owner Catherine Holtham with an award during a special luncheon in honor of their five decades of service.

“I am so proud,” Holtham told the crowd, which included staff and members of her family. “Obviously, I didn’t start [the business]; my dad did. I want to thank each and every one of you. Without you, we wouldn’t be here.”

Glen Toyota joins a small number of Toyota dealerships to make the 50-year milestone.

“Every year, we get to go out and deliver all kinds of awards; out of all of them, this is the most infrequent,” Buchanan said.

“Toyota has been in the US about 60 years, so we only have a certain percentage of dealers that would even have a chance at being here 50 years – and then you take it one step further and have a dealership be in the same family for [that long].

This is a pretty special award.”

Holtham’s father, Frank, opened Glen Motors in June 1958 as a small used car lot on Lincoln Avenue in Hawthorne. In 1968, he

36 | New Jersey Automotive | September 2018

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Glen Toyota held a celebratory luncheon, complete with cake, for its Toyota family on June 19 in honor of its 50th anniversary.

was approached by a then-unknown Toyota to become part of the franchise. Intrigued, he signed the agreement; just a few years later, Toyota became a household name due to the gas crunch of the 1970s.

The dealership expanded and outgrew its Hawthorne location and eventually moved to its current spot at Maple Avenue and Route 208 in Fair Lawn. Frank passed away in 2010, and his daughter says he would have been proud to see the accomplishments achieved since, including the opening of Glen Toyota’s new state-of-the-art service center comprised of 30 mechanical stalls, an automated customer car wash, a drive-in entrance, two customer lounges, a business center and a children’s playroom.

Additionally, the parts department has its own retail store, one of the largest tire centers in the New York region and a full stock of replacement parts to support independent repair shops.

“The parts operation has always been a big part of [Glen Toyota’s] success and is still growing strong every day,” says Parts Manager Paul Cimillo, who thanks the dealership’s loyal customers for their business and believes that “Glen Toyota’s commitment to their customers is what keeps us going strong for over 50 years.”

NJA

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1.800.292.RIMS (7467) New Jersey Automotive | September 2018 | 37

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LOCAL NEWS

AASP/NJ Readies Members for Annual License Renewal AASP/NJ hosted two recent training seminars, sponsored by Flemington Car and Truck Country, giving members an ideal opportunity to earn certificates good towards their Auto Body License renewal due at the end of September.

More than 150 technicians combined attended the two sessions, which were held at the Holiday Inn in Totowa on July 17 and the Clarion Hotel in Toms River on July 19.

Attendees received a thorough education from Christopher Pearce, technical training instructor for General Motors, who presented a course on structural collision repair focusing on steel and aluminum welding.

The course consisted of an overview of the repairing and replacement process of structural components of GM vehicles, such as the Chevrolet Corvette Stingray.

Additionally, the discussion explored tools and resources including genuinegmparts.com, which contains repair guidelines for all General Motors vehicles. Technicians can download full repair manuals categorized by make and model via

38 | New Jersey Automotive | September 2018

Above: AASP/NJ members during the training meeting held at Clarion Hotel in Toms River

Inset: Christopher Pearce, technical training instructor for General Motors

the free website.

The training also included instructional videos demonstrating the dos and don’ts of welding techniques involving aluminum and steel. Pearce explained the many different factors involving steel, its many changes and its ongoing development. He pointed out that there are at least 200 different types of steel, and third-generation advanced high-strength steel is in development. As a result, the repair side of business has become more complex.

In addition to the discussion on technical procedures, Pearce touched upon some of the challenges auto body shop owners face in regards to increasing costs, photo estimating and the importance of repairing vehicles to OEM guidelines. He referenced the much-discussed lawsuit against John Eagle Collision Center in Texas to emphasize his point.

“If you aren’t following OEMrecommended procedures, you can be the one in front of the judge. It’s that simple.”

At the end of each session, the attendees were presented with a

certificate from AASP/NJ Executive Director Charles Bryant that be used as part of their Auto Body License renewal.

Howard Meeks, Flemington Car and Truck Country parts director, thanked everyone for taking the time to attend, acknowledging that it isn’t always easy to get away from their shops. He said Flemington Car and Truck Country looks forward to sponsoring more training next year.

The training seminars were just one step in helping members get ready for their Auto Body License renewal. AASP/NJ has also created a special guide (available to all current members) designed to educate shop owners on what applies to them and what doesn’t. The checklist goes over every step of the process, from required signatures to insurance requirements and mandatory certificates.

For more information on upcoming AASP/NJ training programs, contact Charles Bryant at (732) 922-8909. For more information on AASP/NJ, visit aaspnj.org.

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NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:50 PM Page 39

FIT AND FINISH IS NO PLACE TO GET CREATIVE. CONTACT US TODAY FOR A COMPETITIVE QUOTE ON YOUR NEXT COLLISION REPAIR ESTIMATE. CENTRAL AVENUE CHRYSLER JEEP

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FRANKLIN SUSSEX AUTO MALL 315 Route 23 Sussex, NJ 07461 Order Hot Line: (888) 528-2200

WESTBURY JEEP CHRYSLER DODGE RAM SRT 111 Bond Street Westbury, NY 11590 Order Hot Line: (516) 333-2669 Fax: (516) 334-8951 www.westburyjeep.com

Check out MoparRepairConnection.com for resources, promotions and technical information. ©2018 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.

New Jersey Automotive | September 2018 | 39

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Flemington Volkswagen 213 ROUTE 202/31 FLEMINGTON, NJ 08822 TOLL FREE: 877-657-2787 FAX: 908-782-1795 rmuir@flemington.com www.NJPARTS.com

Paul Miller VW of Bernardsville 118 MORRISTOWN ROAD BERNARDSVILLE, NJ 07924 TOLL FREE: 877-318-6557 LOCAL: 908-766-1600 FAX: 908-766-6171 www.paulmillervw.com

Douglas Motors 491 MORRIS AVE. SUMMIT, NJ 07901 PHONE: 908-277-1100 FAX: 908-273-6196 TOLL FREE: 800-672-1172 www.douglasvw.com email: douglasparts@douglasautonet.com

Linden Volkswagen 900 EAST ELIZABETH AVE. LINDEN, NJ 07036 TOLL FREE: 800-343-5116 FAX:908-486-4232 www.lindenvw.com GeorgeP@lindenvw.com

Trend Motors 221 Route 46 West Rockaway, NJ 07866 888-267-2821 FAX: 973-625-4985 www.trendmotors.com email:dreinacher@trendmotors.com

40 | New Jersey Automotive | September 2018

DCH Volkswagen of Freehold 4360 ROUTE 9 FREEHOLD, NJ 07728 PHONE: 732-810-7903 FAX: 732-637-8297 www.dchvwoffreehold.com email: dfilipe@dchusa.com

NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:50 PM Page 41

INDUSTRY ADVICE

ASK MIKE

Do you have a question for Mike?

Contact New Jersey Automotive Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

What Does Nissan/Infiniti Say about Feather, Prime and Block?

This month, we “ASK MIKE” to update us on information he uncovered during his recent OEM webinar on Nissan/Infiniti. We at New Jersey Automotive hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

New Jersey Automotive: Your webinar on Nissan/Infiniti has earned a lot of attention - thanks in large part to your discussion on feather, prime and block. Can you tell us a little about this webinar and the information it presented?

Mike Anderson: With the Nissan/ Infiniti webinar, we had a lot of great content. There was actually so much content that we had to do a Part Two, which is something we hadn’t done before with the other OEMs. That’s not because those OEMs don’t have a lot of good information; part of it was because we’re getting a lot more indepth and we had a lot of questions.

One of the things that we found in Part Two of going into Nissan/Infiniti’s repair procedures was a statement that talked about how you should not jump more than two grit sizes. I was like, ‘Wow! That right there is feather, prime and block!’ It was a cool hidden nugget that we found within the OEM repair procedures that got me very,

should not jump more than two grit sizes. If you go from 150 to 220, 220 to 240, 240 to 280 and 280 to 320, that’s obviously more than two grit sizes.

That’s what the late March Taylor termed ‘the gap,’ because there’s a gap between 150 and 320.

EPA language is the second thing to look at. When the EPA first came out with the 6H Rule, I was involved with the Automotive Service Association’s Collision Operations Committee. I had the opportunity to be a part of that when the rule was being crafted. One of the things that was stated was that very excited. Honestly, feather, prime and block has been around for a long the only person who could spray primer or any type of coating was time.

Any time I’m trying to get paid for someone who was HVLP [high volume, something, I always stick to what I call low pressure]-certified. The only recognizable training for that was my ‘four negotiation questions:’ through a paint manufacturer/ distributor. Secondly, they stated that Is it required? any of your applications – like Is it included? basecoat, clear, primer, etcetera – Is there a pre-determined need to be done in what was referred time? to as a ‘spray cabin.’ The 6H Rule very If not, what is it worth? clearly defines what a ‘spray cabin’ is; it talks about how many walls you Is feather, prime and block need to have, etcetera. If you look at required? First of all, the estimating the EPA’s language, the only person systems say that body labor times for who can actually take and apply replacing a quarter panel are for you products that are used during the to finish off up to 150 grit for the body feather, prime and block process is tech. Then, they state that paint times going to be someone who is HVLPare for new, undamaged panels, starting with 320 grit. One of the things certified. That happens through that I found early in my career was that refinish training, so it’s definitely a refinish operation. all the paint and abrasive manufacturers suggested that we

New Jersey Automotive | September 2018 | 41

A Day with Mike Anderson and Friends

NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:50 PM Page 42 Mike Anderson Event_NJA0918.qxp_Layout 1 8/27/18 2:43 PM Page 1

POSITIONING YOURSELF IN THE COLLISION REPAIR INDUSTRY

TOPICS DISCUSSED INCLUDE: How to attract and increase sales in todayʼs competitive

environment and the INCREASED role that OEMʼs will play in the Collision Repair Industry

What are Consumers, OEMʼs and Insurers Looking for

The importance of your online presence and reviews in

marketing and selling your business

New estimating tools to help capture more not-included

operations

What role will telematics and the Connected Car play in the

future for FNOL

WHO PAYS FOR WHAT SURVEY RESULTS Introduction to the four negotiation questions

Raising awareness of not-included labor operations

& materials

How to use the results to negotiate with insurers

How to participate in future surveys and get the results

Ideas on how to share and use the information with your staff

BODY SHOP BOOSTER

How to leverage your OEM Certifications and capture more

Customer Pay work

MUSCLE WITH A MESSAGE

Dennis Rogers has been featured on Oprah Winfrey, David

Letterman, Ripleyʼs Believe it or Not and is a member of the

Guinness Book of World Records. Dennis will leave you

knowing you can overcome anything!

PODIUM

How to improve your Google Reviews

42 | New Jersey Automotive | September 2018

DATE:

September 29, 2018

TIME:

8am – 5pm

ADDRESS:

Gran Centurions

440 Madison Hill Rd Clark, NJ 07066 AASP/NJ Members: No Charge Non-members: $300 Seats are limited.

PLEASE CALL NOW TO RESERVE YOUR SPOT: 973-667-6922

AASP/NJ Administrative office

NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:50 PM Page 43

Everything in our industry points to feather, prime and block definitely being a not-included operation. In our ‘Who Pays for What?’ Surveys, we ask, ‘Who performs feather, prime and block in your facility?’ as well as, ‘How do you charge for it, and what type of time do you come up with?’ The majority of shops that have taken our surveys have stated very clearly that they charge a percentage of the repair time. I’m not in any way suggesting that’s what somebody should charge, because that would be a violation of antitrust, but our Survey results very clearly show that.

Without naming any names, some insurers are saying, ‘Well, take it off the repair time,’ but you still have to be compensated for the materials on that. My question back to those insurers that suggest that is, ‘What about when you replace a quarter panel and you get 15.5 hours? ’There’s no repair time included in that. Where are you going to include it in then?

At the end of the day, everything in our industry leads us to feather, prime and block. What I found very unique was that it was actually clearly stated in the Nissan/Infiniti repair procedures.

We also found a lot of other cool things in those Nissan/Infiniti procedures. For example, they have a symbol for one-time-use parts. It’s a black dot with a white x. That’s always going to be listed in the OEM repair procedures but not in the electronic parts catalog. That’s why it’s important that you research OEM repair procedures.

Mike Anderson’s OEM webinars are available on the Collision Advice YouTube channel (youtube.com/ collisionadvice).

NJA

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

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New Jersey Automotive | September 2018 | 43

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44 | New Jersey Automotive | September 2018

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New Jersey Automotive | September 2018 | 45

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COVER STORY

By Joel Gausten

If you’re desperately trying to find new technicians and other employees for your shop, you’re not alone. This month, we gather four industry professionals to share their thoughts on the growing demand for help and what the industry is doing – and needs to do a lot more of – to encourage and retain new recruits:

BOB MAGEE Former AASP/NJ Board member who sold his shop in 2002 and became a collision repair instructor at Bergen County Technical High School in Teterboro. Currently teaching automotive engineering design at the school.

Bob Magee

STEVE MCELFRESH Campus president of UTI- Steve McElfresh Bloomfield, which debuted an extensive new auto and diesel program in New Jersey last month JERRY MCNEE AASP/NJ president and owner of Ultimate Collision Repair in Edison

46 | New Jersey Automotive | September 2018

Jerry McNee: It’s very difficult to find a talented employee. The effect that it has is some of the employees know that. They absolutely know that you’re stuck with them. At times, they push their luck when it comes to following our procedures. I had two painters decide they were taking Friday off, then one decided to go on vacation and the other quit. That left us stranded for a day. The employees are aware that you can’t always find a replacement as often as you’d like.

NJA: What is the average age of your techs?

JM: Probably in their mid-30s.

TRISH SERRATORE President of Automotive Service Excellence (ASE) Jerry McNee

NJA: Jerry, what effect has the shortage of new technicians had on your shop?

Trish Serratore

NJA: That’s a lot younger than what we’ve seen at some other shops.

NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:51 PM Page 47

JM: It is. We’ve had to go through some pains and gains. We’re trying to educate and groom some of the younger guys. You could be the most talented guy in the world, but you’re not worth keeping if you have the worst attitude in the world. You could have someone with less talent but all the right attitude you need and want, and you could make it work.

NJA: Bob, what led you to change the course of your career by selling your shop and becoming an automotive educator?

Bob Magee: I was on the Board of Directors for AASP/NJ for several years. Every time we had a meeting, one of the main topics was the need for more people in the industry. Every shop that I knew needed somebody.

As people got older and left the business, nobody new was coming into it. I heard about an opening at Bergen County Technical High School, and I pursued the opportunity. They needed somebody to teach; I said, ‘Well, I’m not really a teacher; I do the work.’ Basically, I got the job due to my portfolio; I had pictures of jobs I had done. My skills got me the job, because at the time they wanted me to get kids into the industry. I had enough connections and knew enough people who knew the kind of work I did. When I first went there, they wanted me to teach out of a book, but it was outdated. I told them that, and I ended up being the main editor and reviewer of four textbooks; one was published with my name on the cover. If a kid is going to learn out of a book, it has to be right.

NJA: What feedback have you received over the years in terms of your graduates moving on to the industry? What has the retention rate generally been?

BM: At this point, there are probably seven or eight kids who were the best of the best who are still in the industry.

Three of my kids are working for

BMW, and the other ones are working at dealerships. With the rest of them, a lot of kids go to college and might stay there a year or two and realize they don’t want to be there. I’ve had many kids come back and tell me they didn’t stay in college. If you look at the college retention rate, it’s crazy.

This is a really tough industry.

You’ve got to be really dedicated and really into this. We can’t teach drive. If someone is going to get into this industry, they have to work hard and be able to produce a product that’s perfect. I often tell students, ‘Don’t think of this as just a job; think of this as running your own business.’ If they have skills, they can do it, especially if they go to college and take a business course.

NJA: Steve, how will UTI’s new auto and diesel program in Bloomfield work to address the obvious technician shortage that we’re experiencing here in New Jersey?

Steve McElfresh: UTI has been doing this since 1965. One of the things that set us apart is we partner closely with the OEMs. We have 30-plus direct relationships with them, and they really guide our curriculum. We work with Ford, General Motors, Toyota, BMW, Cummins and Peterbilt, to name a few. What that allows us to do is make sure that the curriculum we’re teaching in school is well-aligned with what they expect from an entry-level technician. We have an employment department on every campus that works with both local and national employers to make sure that we promote jobs across the country, because we obviously have students at other locations who relocate and then move back home to get jobs.

According to an update from the Bureau of Labor Statistics, this industry is going to need 100,000 technicians just between auto and diesel alone every single year between now and 2026. That’s about 76,000 for the auto side and about 28,000 auto technicians needed

annually for the diesel side. By working with employers and understanding what they need and expect, we’re able to make sure we fill those needs.

NJA: The new program comes at a time when we’re hearing about other schools drastically reducing or even closing their automotive service and/or repair programs.

Why has UTI-Bloomfield made such a strong commitment to this arena when other schools might not be adopting a similar philosophy?

SM: We see the demand, and we know it’s real. The Bureau of Labor Statistics’ projections over the next few years also show us that this is real. We see the New Jersey campus as a symbol of growth – not just for our company, but also for the industry.

Trish, what are the benefits of ASE certification and some of the primary areas you certify within the industry?

Trish Serratore: ASE was created back in 1972 by the National Automobile Dealers Association and what was then the Motor Vehicle Manufacturers Association in response to Senate hearings into the issues of consumers getting ripped off and not getting their cars fixed correctly. These groups funded a study to see what they could do; the outcome was that we had to create a mechanism by which we can identify and recognize the skills and knowledge of the individuals who are required to fix vehicles properly the first time. From there, ASE was born.

Shortly after that, it became a joint effort between the dealers, the aftermarket service and repair community and the OE vehicle manufacturers. Today, we deliver over 54 different tests in areas including Automobile, Collision Repair, Paint & Refinish, Damage Analysis & Estimating and Medium-Heavy Truck.

New Jersey Automotive | September 2018 | 47

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COVER STORY We are the only third-party, independent credential for the automotive service repair professional.

NJA: What are some ways that ASE is working to help foster the development of those skills in vocational schools?

TS: Our goal is to identify and accredit collision repair programs that meet industry standards. In addition to the industry helping ASE write test questions and support collision repair technician certification, the industry also helps us to determine what a collision repair and refinish technology program at a high school and community college needs to teach and needs to look like so they will graduate entry-level and employable collision repair students.

We ask the school to look at themselves and pull their Advisory Committee together and evaluate themselves against the standards we have for program accreditation. Does the program have a mission statement? Does the school survey its students? Are the instructors ASEcertified in the appropriate areas?

Most importantly, we look at whether the school is teaching the tasks that the industry has identified as essential for entry-level employment and are using the proper tools and equipment in the facilities to do so.

NJA: What can the shop side of the industry do more of to inspire those leaving school to pursue this as a career?

SM: With independent shops, a lot of the tuition reimbursement packages offered by dealerships are a little bit more difficult for them, but I think they should consider what they can do to help students. A student will be looking to pay back their student loans, and that’s a reality. The independent shops are going to be competing with the bigger dealerships on that front. Second,

50 | New Jersey Automotive | September 2018

“According to an update from the Bureau of Labor Statistics, this industry is going to need 100,000 technicians just between auto and diesel alone every single year between now and 2026.” - Steve McElfresh shops should come out here and visit with our employment service department. They might also want to consider a flexible schedule for our active students. That may be a way for one of the students to start working at their shop and learning that facility’s culture.

JM: There are plenty of shops that just need bodies. That said, simply looking for bodies is not the best way to run a business. As those incorrectly repaired cars start coming in, it will be a problem for you. How do you get the right kids in here? I wish I had an answer. For us, we offer full benefits – medical, 401(k), days off, vacation days, sick days, bonus plans – and I’m struggling to get people in the door. A lot of kids who graduate the area vocational schools move on to something else.

TS: The word is ‘involvement.’ We would encourage collision repair businesses to get involved in the schools. A very simple way to do that is being on the Advisory Committee for a program. It’s a two-meeting-ayear commitment, and that allows the business owner, the shop manager or whoever is attending from that business to meet the instructor, see the facility, meet the students and get an overall perspective of what that program is doing, how well it’s doing it and what it might need to do better so that the students coming out of that program are even more employable.

Also, be open to having the instructor and students come to your

business to give those students a better understanding of what happens at a collision repair shop. That’s what kids don’t get at home; having an opportunity to do that during their school day is great. It shows them what kind of careers are available within the industry.

I think we need to take a look at our own businesses. Sometimes we’re our own worst enemy. We need to remember that it’s expensive to live today. It’s very hard for someone who’s graduating a program to live on minimum wage. We need to look at how we pay our employees. And what is the career path? Can we show our entry-level students doing minor work in the collision repair center what a career path might look like, and are we able to showcase the opportunities to grow? A good wage, a work/life balance and a clean environment are important to young people today.

There are so many positions, jobs and careers that are vying for our students that we need to be the best we can be.

BM: Years ago, I suggested that [AASP/NJ] should start a small school or a training program. If each shop contributed something towards that, kids could go into that program to get the basics and get a guarantee of work at one of the shops. From there, the owner could tweak them to fit the shop.

NJA: One of the biggest hurdles to getting new recruits in the automotive industry is convincing

NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:51 PM Page 51

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NJA0918.qxp_NEW JERSEY AUTOMOTIVE 8/27/18 4:51 PM Page 53

COVER STORY

parents and guidance counselors that this is a strong career choice.

How would you answer a parent or counselor if they asked you why a young person should consider this industry?

SM: The demand. I would encourage a parent to do their homework and look at the career options they have in mind for their student versus what the student has in mind. It’s important that a student follows what they want to do. One of the first places I’d guide anyone would be the Bureau of Labor Statistics. When you look at the demand out there, it’s absolutely real.

BM: If they like taking things apart, putting things together, are very particular and can satisfy customers, there’s no other field like this. When a customer brings in a car that’s crashed and then picks it up when it’s fixed and goes, ‘Wow!’ there’s no better feeling. But it’s got to be in you.

Personally, I don’t think it’s for the money; it’s about perfectionism. If you’re a perfectionist, that will keep customers coming in.

JM: I’d offer two responses. One, it’s a great industry where you could make $100,000 to $130,000 a year at the top of your game. However, in this industry, it would take you 20 years to get to that level. You’re guaranteed a job and guaranteed a decent living.

The cost of living around here is a little hard, so you might make $80,000 but still live in an apartment. But this is a good business to get into, and you’ll always have a job as long as you’re talented.

At the same time, why would you want to get into this business? The insurance companies have suppressed the rates so much that we’re 20 years behind the times in terms of pay scales. You could buy a pickup truck and a lawnmower and make as much money or more within

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TS: First of all, you have to understand your child. Not every child is destined to go to a four-year college and work behind a desk.

Many of our young people need to use their hands as well as their brains in their careers and work everyday. I think collision shops have an opportunity to showcase that to parents and customers: ‘Here’s Joe. He’s ASE-certified, has I-CAR training and he’s our best tech.’ We need to self-promote from within. I would also tell a parent that collision repair can’t be outsourced. From a long-term career perspective, it has great longevity and growth in terms of salary and opportunity. It’s important that parents know that this is a job that’s going to be here forever – and will be anywhere.

NJA

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New Jersey Automotive | September 2018 | 55

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Wharton Insurance Briefs

Proper coverage for your machinery/equipment is essential to your business. As many of you purchase larger pieces of machinery (such as loaders, balers, shears, shredders, etc.), it is important to insure them properly. Most policies will insure the equipment for its actual cash value, which is usually calculated by applying replacement cost less depreciation. During some of my insurance reviews, I have seen some machinery insured for just what is owed to the bank or finance company. A loss on a high-valued piece of machinery can destroy your profits and cripple your operations. To avoid this situation, always insure your machinery properly. Currently, the rate for equipment/machinery ranges from $0.90 to $1.20 per $100 in value, so it would cost you $900-$1,300 to insure a $100,000 piece of equipment. Review your machinery values and contact your agent to discuss the rate and type of coverage your insurance policies provide.

As always, please contact me with any questions.

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

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Performance Ford Lincoln........................................55 New Jersey Automotive | September 2018 | 57

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IN YOUR LINE OF WORK, LOOKS SHOULD NEVER BE DECEIVING. THE BEST IN THE BUSINESS ALWAYS INSIST ON ORIGINAL BMW PARTS. IDENTICAL TO THOSE USED IN SERIES PRODUCTION, ORIGINAL BMW PARTS DELIVER PRECISE FITMENT AND INCOMPARABLE QUALITY, FROM THE INSIDE OUT. IN OTHER WORDS: WITH ORIGINAL BMW PARTS, WHAT YOU SEE IS EXACTLY WHAT YOU GET.

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58 | New Jersey Automotive | September 2018

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A GLEN TOYOTA PRODUCTION

ACCEPT NO SUBSTITUTES AND INSIST ON GENUINE TOYOTA PARTS

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pcimillo@glentoyota.com