new jersey automotive january 2015

January 2015$595

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)

www.grecopublishing.com

TM

LIVES ON THE LINE: INSIDE ANEXPLOSIVE AIRBAG RECALL

BLACK BOX BASICS:A CONVERSATION WITH JEFF LANGE & LARRY MONTANEZ

REMEMBERING JIMMY BRYANT

NJA0115.qxp_NEW JERSEY AUTOMOTIVE 12/30/14 8:24 PM Page 1

2 | New Jersey Automotive | January 2015


New Jersey Automotive | January 2015 | 5



NORTHEAST 2015 SPOTLIGHT16 Ryan Friedlinghaus to Appear at NORTHEAST 2015

IN MEMORY18 Remembering Jimmy Bryant

21 AUTO BODY DISTRIBUTING HOLIDAY PARTY HIGHLIGHTS Photos by Jacquelyn Bauman

VENDOR SPOTLIGHT by Jacquelyn Bauman24 Continental Auto Parts: Fulfilling the Needs of the Industry

LETTER TO THE EDITOR28 Dear New Jersey Automotive...

FEATURES by Joel Gausten36 Black Box Basics: A Conversation with Jeff Lange and Larry Montanez41 Lives on the Line: Inside an Explosive Airbag Recall

AUTOMOTIVE RECYCLERS OF NEW JERSEY48 Legal Update49 Wharton Insurance Briefs

INDUSTRY NEWS52 Innovative Technology & Solutions Wins Award at SEMA53 Team PRP-Northeast Donates to the Wounded Warrior Project

P.O. Box 734 Neptune, NJ 07753

EXECUTIVE DI REC TORCharles Bryant732-922-8909 / [email protected]

2013 - 2015 OFFICERSPRESIDENTJeff McDowell, Leslies Auto Body732-738-1948 / [email protected]

COLLISION CHAIRMANDave Laganella, Peters Body and Fender201-337-1200 / [email protected]

MECHANICAL CHAIRMANKeith Krehel, Krehel Automotive Repair, Inc.973-546-2828 / [email protected]

TREASURERTom Elder, Compact Kars, Inc.609-259-6373 / [email protected]

SECRETARYThomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / [email protected]

BOARDJerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / [email protected]

Sam Mikhail, Prestige Auto Body908-789-2020 / [email protected]

Ted Rainer, Ocean Bay Auto Body732-899-7900 / [email protected]

Anthony Sauta, East Coast Auto Body732-869-9999 / [email protected]

Randy Scoras, Holmdel Auto Body732-946-8388 / [email protected]

Anthony Trama, Bloomfield Auto Body973-748-2608 / [email protected]

BOARD ALLIEDJoe Amato, The Amato Agency732-530-6740 / [email protected]

Mike Kaufmann, Advantage Dealer Services973-332-7014 / [email protected]

PAST PRESIDENT ATTENDINGTom Elder, Compact Kars609-259-6373 / [email protected]

PUBLISHERThomas Greco ([email protected])DIRECTOR OF SALESAlicia Figurelli ([email protected])EDITORJoel Gausten ([email protected])MANAGING EDITORJacquelyn Bauman ([email protected])ART DIRECTORLea Velocci ([email protected])OFFICE MANAGERSofia Cabrera ([email protected])CONTRIBUTING EDITORSCharles Bryant Tom Greco Jeff McDowellMitch Portnoi Dave Laganella Ron Ananian

Published by: Thomas Greco Publishing, Inc.244 Chestnut Street, Suite 202, Nutley, NJ07110Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com

VOLUME 45, NUMBER 1 | January 2015

8 OUT OF BODY (AND MECHANICAL) EXPERIENCES10 PRESIDENTS MESSAGE

12 EXECUTIVE DIRECTORS MESSAGE58 NJA ADVERTISERS INDEX

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEYAUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVEare copyright 2015 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. Images courtesy ofwww.thinkstockphotos.com

The Alliance of Automotive Service Providers/New Jersey

Joe Amato, Sr.Ron AnanianJim Bowers

Charles BryantDon ChardGuy CitroEd Day

Dave Demarest

Tom ElderBob Everett

Thomas GrecoRich Johnson Wes KearneyNick KostakisJim KowalakJoe Lubrano

Michael LovulloSam MikhailRon MucklowGeorge PetraskRuss Robson

Jerry RussomanoGeorge Threlfall

Cynthia TursiLee VetlandPaul VigilantRich WeberBrian VesleyGlenn VillacariStan Wilson

HALL OF FAME

CONTENTS



OUT OF BODY (AND MECHANICAL) EXPERIENCES

One of the many things my familyshared when I was a kid was our loveof game shows. Showing my age, I ac-tually remember when a guy named ArtFleming hosted Jeopardy. It was onevery day at noon, I think, and wenever missed it - at least during thesummer. God, just thinking back, weused to be obsessed with shows likeYou Dont Say with Tom Kennedy, Pass-word with Allen Ludden, Three On aMatch with Bill Cullen, The DatingGame and The Newlywed Game withJim Lange and Bob Eubanks. MatchGame with Gene Rayburn! Man, thememories are flooding back as I writethis.

Once the 70s hit, there were evenmore game shows on television. The$10,000 Pyramid with Dick Clark, Gam-bit with Wink Martindale, The JokersWild with Jack Barry, Tattletales withBert Convy (the fact that I can remem-ber all of these off the top of my headconfirms that I am deranged) and, ofcourse, my mother and grandmothersfavorite, Family Feud. Now, Im notashamed to say that when I first sawRichard Dawson (or as my grand-mother called him in her broken ac-cent, Dickie Daws) host the Feud, Isaid to myself, So thats where the guyfrom Hogans Heroes went. Again, Imshowing my age.

Now, you can keep all the guys thatfollowed Dickie Daws. Ray Combs?Amateur. Louie Anderson? Please.Richard Karn? Who? John OHurley?Sorry, Mr. Peterman. Steve Harvey? TheFeud was not meant to be hosted by aRichard Pryor wannabe. For me, it wasalways Dickie Daws - even more sowhen he battled with ArnoldSchwarzenegger in The Running Man. What has all of this got to do withme? Well, a few years after DickieDaws Family Feud was canceled, theybrought it back with Ray Combs andheld tryouts all around the country.When I saw a notice for tryouts in NewYork, I looked around at my family.

by THOMAS GRECO, PUBLISHER

FAMILY FEUD



Hmm. Two brothers, two sisters andme. Five of us. Perfect for the Feud! I sent in an application and a fewmonths later, we received our tryout no-tice. Now keep in mind, this is 1993.With all of the spouses and kids, thefive of us very rarely did anything to-gether. So we ventured into Manhattanon a trip alone together for probablythe first time in 25 years. We werebrought into a hotel conference roomwhere we met the shows producers.We were told that we would have toplay against two other families, and ifwe did well, we might get a chance tobe on the show. The producer empha-sized that the funnier and more boister-ous we were, the better our chanceswould be. When it was time to play, we wentby the seat of our pants. We didnthave anything planned, so we figuredwed just wing it and let the chips fallwhere they may. The room was all setup like the show, with the five of us onone side of the room, the other familyacross from us and another produceracting as the host. Once the theme

music started playing, I felt us all get-ting into it. If youre familiar with the game, thefirst round begins with the team captain(me) trying to hit the buzzer and ring inwith the most popular answer beforethe other team captain. I dont remem-ber what the question was, but I do re-member that I won because whathappened next set the tone for the ex-perience. After you win the question,the host comes over and asks eachperson on your team a few questionsabout themselves. The host came tome and I explained that I was a pub-lisher. My sister Diane, the most bubblyof us, loudly told him she was a courtreporter. My brother Steve told him hewas a dentist and my sister Gloria saidshe was a paralegal. Lastly, he came tomy brother Ralph. They tell me youre in the familybusiness, the host said to Ralph.

Yes, Im in the iron and steelindustry, Ralph replied.

Wow, thats different, said thehost. How did you get into that?

Ralph didnt hesitate.

Well, my mother ironed and my fa-ther stole. The host lost it. He AND the crewwere laughing so hard they had to stopthe game. I whispered to Diane, Werein. Ralph was just the kind of contest-ant they were looking for. Picture PaulieWalnuts from the Sopranos playingFamily Feud and thats the scene wewere in the middle of. The rules saidthat we had to win, and we did. Webeat that family (who seemed totallydefeated after Ralphs response) andthe next family we played as well. Theproducers thanked us and told us wedbe hearing from them. The drive home was one of thebest times we have ever had together.Ralph was on a roll. We got stuck intraffic by the David Letterman Showstudio and Paul Shaffer (Lettermansband leader) walked right in front of ourcar. We opened the windows andcalled out to him. He ignored us andkept walking. Ralph yelled, Why dontyou get a real f#@king job?! He put hishead down and ran after that.

continued on page 29


It is with deep sadness that I joinmany industry members in mourningthe loss of yet another loved one in thecollision repair community: JamesBryant, younger brother to AASP/NJExecutive Director Charles Bryant.Many of you knew Jimmy as the go-to

guy for dealing with the problems thatthe Joint Underwriting Association(JUA) caused our industry in the 80s,and as one-half of Bryant Associates.He was a lifelong supporter of ourindustry.

I first met Jimmy in the mid-80s.He was a hard-charging ex-Marinewho didnt take any BS. He was also avery creative guy, always looking forthe next initiative to take on or the lat-est way to help our industry out, nevertaking no for an answer. He was a loyalfriend and always had a great story totell (like the time he got into a bar fightwith heavyweight boxer Chuck TheBayonne Bleeder Wepner). Jimmywas a real character, and he will besorely missed. Jimmy, well always remember howhard you worked to make this industrya better place for us all. We appreciateeverything you did for us as repairersand well truly miss you as a colleagueand friend. We love you, brother. Seeyou on the other side.


PRESIDENTS MESSAGE

FAREWELL TO A FRIENDby JEFF MCDOWELL

and

Micro-Mix Paintand

Materials Calculatorin Bergen, Passaic, Essex andHudson Counties in New Jersey.

CALLOffice: (973) 696-3176or Cell: (201) 452-0987

Mike LovulloDistributor for

NJA



EXECUTIVE DIRECTORS MESSAGE

A MAJOR BREAKTHROUGH IN THE ARTIFICIALLY SUPPRESSED LABOR RATE BATTLE

by CHARLES BRYANT

For the first time in history, as far as I know, an auto in-surer in New Jersey has agreed to raise the Labor Ratethey will pay for auto body repairs by almost three timesthe amount they and most other insurers have been or arecurrently paying, as long as the shop making the repairs iscertified by the manufacturer. New Jersey Manufacturers Insurance Company (NJM)has taken the lead in adjusting the Labor Rate they paycollision shops for repairs on certain vehicles, to anamount that more accurately reflects what the Labor Rateswould be if they were allowed to seek their own level, with-out the interference of an insurer. I have always said that Labor Rates have been artifi-cially suppressed for so long that the rates would need tobe tripled to catch up to where they should be in todaysmarket. Due to Labor Rate suppression by insurers, colli-sion shops look bad when they need anywhere from two tothree times what they are currently getting paid for collisionrepairs in order to properly repair todays vehicles and stillrealize a profit.

How the artificial suppression of Labor Rates gotstarted The artificial suppression of Labor Rates has beengoing on for so long, many have forgotten how it gotstarted. The plan by insurers to artificially suppress theLabor Rates was simple but clever, and it has worked foryears. When a shop and insurer disagreed on a reason-able Labor Rate, the insurers solution would be to maintainthe rate and increase the recorded hours worked to makeup the difference. If the shop went along with the plan,problem solved. The shop got the amount that they wantedto repair the vehicle and the insurer hid any record of howthat amount actually came about. If the shop disagreed further, the insurer would engagein steering. This was often accomplished by telling the ve-hicle owner that the shop was being unreasonable, andthat if they remained with this shop, they would have to payout of pocket for the difference between the insurers esti-mate and what the shop wanted to charge. Because ofthis, the shop would often lose the job. After losing a fewjobs, the shop would inevitably go along with the ap-praisers plan to add extra hours to compensate for lowLabor Rates. Although this solved the immediate problem,it also gave the insurer the ability to claim that they had noproblem getting the work done for the rates they werepaying. This practice was the beginning of artificiallysuppressed Labor Rates.

The role of the DRP Since this cost-shifting practice worked so well, someinsurers turned it into a bigger plan. This is what we knowtoday as the Direct Repair Program (DRP). Now, althoughnot many will admit it, the DRPs were created based on theconcept of cost-shifting, which can only be consideredfraudulent activity. The first part of the plan was to limit the number ofshops allowed to participate in an insurers DRP to a smallnumber: About 15 percent of the shops in any given area.That way, the insurer could use the 15 percent to controlthe other 85 percent of the shops. The next part of the planrequired the shops in the insurers DRP to agree to follow aset of restricted guidelines, including suppressed LaborRates. In return, the shop owner would become the ap-praiser for the insurer, instead of having to negotiate thecost and methodology of the repairs with an appraiser fromthe company. Once the shop agreed to follow the restricted guide-lines and was set up as the appraiser, the insurer wouldlook the other way while the shop owner put in extra hoursto compensate for the restricted DRP guidelines, therebyenabling him to realize a profit. The bottom line is, thisworked for the shops that were allowed to participate in theDRPs; they were not only able to survive, but prosperedfrom the plan. Unfortunately, this also allowed the insurers to pit theDRP shops against the non-DRP shops. They told the non-DRP shop that, if they refused to repair the vehicle for theamount the insurer wanted to pay, the insurer would referthe vehicle owner to one of their DRPs and the shop wouldlose the job altogether. In reality, the idea was never to getthe vehicle owner to go to the DRP for the repairs, but toget the non-DRP shop to buckle under pressure and ac-cept the insurers rate. After losing a few jobs, most of thenon-DRP shops would agree to whatever the insurerwanted to do just to stay alive. This has continued for somany years that the rates that insurers are paying todayare actually only about half - or in some cases, about athird - of what they should be in order for a collision shopto repair vehicles safely and properly and realize areasonable profit. What is really interesting is that the insurance industryis now turning on the DRP shops that made it all possible.Because improper activities like steering, artificiallysuppressed Labor Rates and failure to pay shops fairlyare coming to light through major lawsuits being filedagainst carriers across the country, insurers have added


provisions to DRP agreements, likehold harmless agreements and provi-sions that the DRP shops will indem-nify the insurer should they be sued. Ibelieve that when some of these majorlawsuits result in multi-million dollarjudgments against insurers, thesecompanies will turn against the DRPshops and attempt to enforce thehold harmless and indemnificationprovisions recently put into the DRPagreements.

How it got this way and stayedthis way for so long The DRP system accomplishedwhat the insurers wanted it to; it al-lowed the insurers to steer work awayfrom shops that would not surrender totheir demands. The DRP system bene-fits both the insurers attempting tocontrol the cost of repairs and thelimited number of privileged shopsthat participate in the programs for along time. A lot of shops that are not

allowed to participate in the DRP pro-gram of one insurer can often get onthe DRP program of another. Becauseof the unequal power and influencethat an insurer has over a small- tomedium-sized collision shop, many inthe collision industry learned to takethe path of least resistance. In otherwords, it was easier to participate in aDRP program and go along with what-ever the insurers wanted than to tryand fight the system. Most insurance companies are sopowerful that they could usually winagainst a small- to medium-sized colli-sion shop by simply outspendingthem. Not to mention the fact thatmany insurance companies dont playfair; they will do whatever is necessaryto beat a collision shop that files suitagainst an insurer to resolve an issue.Because of the nature of their busi-ness, insurance companies are nostrangers to the legal system andtherefore know how to work the sys-tem. Very often, winning is not aboutwhos right or wrong, but rather whocan hold out the longest and manipu-late the system the best. Over the years, we have seen in-surers use every trick in the book toshut down a collision shops efforts tochallenge them. It is not uncommon foran insurer to accuse a shop of com-mitting insurance fraud when the shopdecides to fight back.

Why cant things just continue likethis? To address this question, we haveto look back at the issues that collisionshops were faced with a few yearsago compared to the issues that colli-sion shops are faced with today. Yearsago, we had simpler vehicles on theroads and in collision shops, so thingswere much easier to work out. Yearsago, on an older body-over-framevehicle, a collision shop might weld afishplate on a severely damagedframe to reinforce it. On one of themodern unitized body vehicles wehave today, that would be an ab-solute no-no. The vehicles nowadaysmust be precisely repaired to themanufacturers specifications, and the


EXECUTIVE DIRECTORS MESSAGE


structural integrity of the vehicle mustbe precisely reconstructed or the pas-sengers lives may be in put in jeop-ardy in a future accident. Thesemodern vehicles are like rolling com-puters. The electronics and computersystems in many of these vehicles areextremely complicated. Unlike with thevehicles from years ago, collisionshops and technicians have to havespecial equipment (that quickly be-comes obsolete and needs to be replaced) and training on a regularbasis in order to repair modern vehi-cles. This is extremely expensive. Col-lision shops cannot afford to purchasethe equipment and train their techni-cians if they dont realize a profit dueto artificially suppressed Labor Rates.

If the shops take shortcuts that strayfrom the manufacturers recommenda-tions when making the repairs, thelives of the passengers in the vehicleare very likely to be put at risk. Thingshave to change.

What will it take to get the problemsof the collision industry addressed? Lets face it; the insurance indus-try is not going to address the issuesof the collision industry voluntarily.Sure, when an insurer is pushed into acorner, they might increase the LaborRates by a dollar or two per hour, butbecause the rates have been artifi-cially suppressed for so long, itdoesnt make a difference. The onlyway that these issues are going to getresolved is for someone to step upand take on the insurance industry ina battle to the end. We have seen andheard of the many problems certain

shops have experienced by gettinginto such a battle. Suddenly, the shopstarts getting accused of committinginsurance fraud and is sued or turnedinto the authorities. Such shops areoften faced with spontaneous tax andinsurance audits and they begin get-ting visits from state agencies like theDEP or OSHA, despite never havingthese issues before. These are justsome of the tactics that certain shopshave experienced when they were sobold as to challenge an insurer. Even with this knowledge, one NJcollision shop decided that it waseither time to face the wrath of theinsurance industry or close their busi-ness and look for another trade. Theshop specializes in highline vehicles,

and the shop owner finally got to thepoint that he felt that the only way tobe properly compensated for his workwas to file suit and allow the legal sys-tem to determine a fair and reason-able Labor Rate. This only happenedafter exhausting every possible effortto get insurers to acknowledge thatthis shop simply could not repairthese types of vehicles for the ratesthat insurers were setting. About twoyears ago, the shop started taking as-signments and filing suit, but - for themost part - has yet to get the issues infront of a judge and jury. They say thewheels of justice turn slowly, but itseems like they are barely turning atall in this situation. There have beensome cases that have come close togoing to trial, but in a last ditch effort,the insurer made the shop a reason-able offer. The issues on those casesnever actually got addressed in court,

even though the case got resolved.Some of the cases got merged to-gether and thereby got further de-layed. Some of the cases got movedup to a higher court, again delayingthe process, but none of the caseshave actually been heard or resolvedby a judge and jury. This is a typicalexample of how an insurer has thepower to win by simply holding outlonger than a collision shop usuallycan. The difference in this case is thecollision shop has committed to takethese cases all the way. They have theholding power and are not going awayuntil the issues are resolved. The collision shop that I amreferring to is Exclusive Collisionlocated in Ramsey, NJ, which is run

by Anthony Lake. A lot of members ofthe industry know Tony or have heardof him because of these suits. Tonydoesnt mince words or sugarcoatthings when discussing the issues ornegotiating with an insurance ap-praiser on the cost, methodologyand/or procedures that should be fol-lowed to repair vehicles as dictatedby the manufacturer. Whether peoplein the collision industry like Tonysdemeanor or not is irrelevant. He ismaking a difference not only forhimself, but also for the entire collisionindustry in New Jersey. I have run a Hot Line for the colli-sion industry for over 15 years andwhen something substantial happens, I get the call. I have been getting calls that certain insurers are now negotiat-ing their rates without having to be


continued on page 32

A Turning Point in the Collision Repair Industry

On December 10, New Jersey Manufacturers Insurance Company (NJM) announced thatthey have adjusted the Labor Rates they will pay on certain cars for shops that have madethe investment in equipment, training and certification necessary to make these repairssafely and properly. This new rate is approximately double to triple the amount they havebeen paying, depending on the type of vehicle. NJM is one of the top-ranked insurers inNew Jersey, so there is no doubt that other insurers are likely to follow suit.


Ryan Friedlinghausto Appear at

NORTHEAST 2015

For more information on NORTHEAST, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST AutomotiveServices Show YouTube page (www.youtube.com/user/AASPNJNORTHEAST) oron Twitter @AASPNJNORTHEAST / #NORTHEAST2015. For more information onAASP/NJ, please visit www.aaspnj.org.

NJA


With just three months left beforethe Alliance of Automotive ServiceProviders of New Jersey (AASP/NJ)sflagship event, the NORTHEAST 2015Automotive Services Show, the indus-try is abuzz with excitement. Theassociation is pleased to announcethat Platinum Sponsor BASF will bebringing Ryan Friedlinghaus, CEO ofWest Coast Customs, Inc., as acelebrity guest to the show. BASF is a repeat sponsor ofNORTHEAST, the largest regionalevent of its kind in the country. Weve had a long history with theshow and have been involved with itsince the very beginning, says BASFMarketing Services Manager TinaNelles. It gives us the opportunity tointeract with our customers, listen fortheir feedback and find new ways tomeet the important needs of todayscollision repair facilities. The celebrity guests are alwaysvery popular, says AASP/NJ Presi-dent Jeff McDowell. Theyre a hugedraw for a lot of attendees. Were veryexcited to welcome Ryan to our show;he understands what its like to bepart of this industry and people cantwait to meet him. Friedlinghaus founded West

Coast Customs in 1993 on just hardwork and a $5,000 loan from hisgrandfather. He grew the businessfrom a one-stall location to a globalleader. Ryan is well known in the in-dustry for his unique creativity, excep-tional work and attention to detail. Inthe past, his talents have been fea-tured on networks such as MTV, TLC,Discovery HD and Velocity. His cur-rent show, West Coast Customs, airsSunday nights at 10pm EST on FoxSports 2. Im excited to be a part of theNORTHEAST show on behalf of BASFand the R-M brand, says Friedling-haus. I understand the daily strug-gles of owning, running and growingan automotive business. For me, thisshow is unique, in that I get to meetwith repair professionals that share mysame passion and hear their stories. Friedlinghaus will appear at theshow on Saturday, March 21. At theevent, he will be promoting BASFs R-M brand paint, the official paint ofWest Coast Customs. The BASF booth at NORTHEASTis where the excitement takes place,adds Nelles. In addition to Ryan, wewill be highlighting our R-M brand andwe will have staff to highlight how

BASF tools and services can makeshops more profitable and efficient. NORTHEAST 2015 will be held onMarch 20-22. As usual, it will be heldat the Meadowlands Exposition Cen-ter in Secaucus just five miles fromManhattan and surrounded by over 40restaurants, movie theaters and retailshops. For those traveling from faraway (as the show has welcomedguests in the past from around theworld), there is no shortage of enter-tainment inside or outside of the show.This is not an event to miss. Onlinefree pre-registration for NORTHEASTis currently open at www.aaspnjnortheast.com.

NORTHEAST 2015 SPOTLIGHT


Jimmy was a character. Ask anyone in the New Jersey colli-sion repair industry who knew JimmyBryant what they thought of him, andyoull very likely hear those four words atsome point in the conversation. An unfor-gettable industry figure with a personalityas big as his heart, Jimmy passed away onDecember 9 after a long illness. A veteranof the New Jersey auto body scene, he wasperhaps best known for his work withBryant Associates, a collision industry consulting firm founded by his brother(and current AASP/NJ Executive Direc-tor), Charlie. After a long and colorful ca-reer in the Garden State, he spent the lastseveral years of his life in Las Vegas. Known for his take-no-prisoners ap-proach to tackling industry issues, Jimmyearned a reputation as someone who gotthings done for the industry he served. Ac-cording to Charlie, his brothers extensiveknowledge of the rules and regulationsregarding shop/insurer relations waspeerless.

It fit like a glove for Jimmy to settleclaims, he recalls. He had a memorylike an elephant. Jimmy could accomplisha lot of things. Jimmy Bryant was a lifelong advo-cate for the collision repair industry, of-fers AASP/NJ President Jeff McDowell.As half of Bryant Associates, he wenthead to head with the Joint UnderwritingAssociation [JUA] on our behalf manytimes. He was a real character whoworked very hard to make our industrybetter, and were going to really misshim. Like many who knew Jimmy well,veteran association leader and AASP/NJHall of Famer Joe Lubrano (J&E AutoBody) got to see and hear just howcommitted he was to speaking his mind. Ifinsurers were doing something unpopularamong shops, Jimmy made sure the carri-ers knew what they were doing waswrong.

The Labor Rate was always a bigthing for him, remembers Lubrano.When there was something that insurerswere trying to cut out, Jimmy made surehe got his voice in so everyone was awareof what was happening. Lubrano will never forget watchingJimmy take the microphone at CIC andprove to anyone within earshot that henever minced words about anything. Some guys are politically correctwhen theyre there, but Jimmy would justlet everything hang out, he says. He wasconcerned solely with making sure peopleknew what things needed to be done. Jimmy Bryant was an original, addsNew Jersey Automotive publisher ThomasGreco. He was a guy who loved this in-dustry and fought for it like it was life. Iam proud to have published the last photo

of Jimmy and Charlie together in lastmonths issue. As we said then, theBryants were the industrys greatest alliesduring the 80s and 90s. Jimmy should beremembered for that. One of Jimmys oldest industryfriends, AASP/NJ Board member SamMikhail (Prestige Auto Body, Garwood)was in touch with the industry advocate ona weekly basis in the old association days.Their last phone conversation just a fewshort months ago found Jimmy in highspirits. Mikhail will never forget the en-ergy and passion Jimmy put into solvingconsumers problems. Jimmy was a go-getter; he was like amachine gun, he says. He went after in-surers, he was tough and he got the jobdone. Insurance companies used to hatedealing with him because he didnt takeno for an answer. He kept beating andbeating until he got what the customer wasentitled to. He was great. Past AASP/NJ Board member PeteCook (P&N Auto Works, East Orange) isone of many New Jersey repair profes-sionals who will always be grateful forwhat the Bryant brothers did together onbehalf of the collision repair field. Jimmy and Charlie would do any-thing for you and go to bat for you 100percent, he says. They were always try-ing to make the industry better, and theyhad a good niche when they had BryantAssociates. They helped a lot of people.Any time the industry or the associationhad a problem, they would try to find so-lutions any way they could. They didntlet you get pushed around. Naturally, Cook also experiencedJimmys trademark personality on plentyof occasions. When he wanted to make a point,hed say his famous words: Listen toJimmy! he recalls with a laugh. Ill al-ways have that in my head. Longtime AASP/NJ member Ed Day(Collision Restoration, Fairfield) will

IN MEMORY


REMEMBERING

JIMMYBRYANT


never forget Jimmys incomparable atti-tude and spirit. I think this country is out of charac-ters; were all so sterilized and politicallycorrect, he says. But not my friend Mr.Bryant. You knew where you stood withhim three seconds after you met him. If heliked you, he loved you; if he didnt likeyou, you were out. When thinking of Jimmy, Day is in-stantly reminded of all the great times theyshared in the 90s. It was a time in our industry wherethere was a core group of people whowere inseparable, from Central up toNorth, he comments. Jimmy was one ofthem, and he was a solid friend. Jimmy was a really special guy,adds fellow AASP/NJ member Lee Vet-land (Lees Auto Body, Avenel). He wasdifferent than all of us, but he had thesame things in his heart. He wanted the in-dustry to be much, much better. WithoutJimmy and his brother, our industrywouldnt be half as good as it is rightnow. AASP/NJ Past President Tom Elderfondly remembers his old friend as some-one who would tenaciously address issuesranging from the Labor Rate and storageto drop-shipped parts and diminishedvalue. Above all, he worked to ensure that

insurers were always held accountable fortheir actions. When he got an assignment, he re-ally went after it, Elder says. The peopleon our side loved him, and the people onthe other side hated him. He usually gotwhat he was looking for and had a goodpoint of view in terms of always keepingthe collision shops in mind. Those whoknew Jimmy respected him greatly. Although he was tough as nails whenit came to business, Jimmy had a playfulside that often led to practical jokes. Onetime, Charlie got a call from his brother,who proclaimed in a very convincing waythat he had won a $14 million Mega Mil-lions jackpot. After a few days of keepingCharlie in suspense on whether or not thenews of Jimmys win was true, hisyounger brother finally let him off thehook and revealed the gag. Of course, Jimmys one-of-a-kindnature had a strong effect on others whowere close to him. When sharing theirmemories with us, more than a few of hisfriends joked with great love andaffection that he was notorious forpresenting the Board with the longestexpense reports imaginable. While somewould never think of adding gum andother miscellaneous sundries to a reim-bursement request, that was classic Jimmy

Bryant. Once Jimmy moved to Las Vegas, itdidnt take long for him to find a newcause to passionately support. He spent hisfinal years heading Lights 4 Love, a 501(c)(3) non-profit organization he createdto provide red light bulbs to people to putoutside their homes and apartments sothey could be easily found by EMTs andother crucial personnel. Jimmy was in-spired to start Lights 4 Love after rescueworkers had difficulty locating him in thelarge apartment complex in which heresided. Despite Jimmys passing, his impacton the New Jersey auto body communitywill always be felt by anyone willingto stand up on behalf of shops andconsumers. As Mikhail says, His knowledge andinformation benefited all of us, and thatwill go on for many, many years. He maybe gone, but hes not forgotten. More information on Lights 4 Love(including a personal message fromJimmy) is available at www.lights4love.org/#!about_us/crrl. A special Las VegasTV news report on Jimmys work can beviewed at www.youtube.com/watch?v=e_N1O5QupdU.


Without Jimmy and his brother, our industrywouldnt be half as good as it is right now.

Left: Jimmy and his companion, Linda, in Las Vegas. Right: Jimmy was one of the industry's most vocal advocates.

NJA



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ABD HOLIDAY PARTY HIGHLIGHTS



VENDOR SPOTLIGHT by Jacquelyn Bauman

For almost two decades, ContinentalAuto Parts (CAP) has been supplying theindustry with high-quality non-OE re-placement auto body parts, recycled OEMbumper covers and remanufactured alloywheels, among many other parts necessaryto service the collision repair industry.First founded in 1997 in Newark, CAPnow has seven different locations acrossthe Northeast and employs over 220 indi-viduals. Their Newark location is approxi-mately 170,000 square feet between twobuildings: One of which encompasses anoffice and warehouse space, the othersolely dedicated to housing product. Dueto this high capacity for storing merchan-dise, they are able to fill their customersneeds much faster and more efficientlythan a number of others in their market. We feel we give our customers morepersonalized, hands-on attention, saysOperations Manager Mike Koren. Westay tuned in to their specific wants andneeds. There are so many things that ourcompany gives to our customers. We offerdelivery service to customers in more re-mote areas of the Northeast. We offerafter-hours delivery so that parts are

available upon our customers arrival inthe morning. Plus, we offer free pickup ondamaged bumpers. We take that extra stepto take care of the people we do businesswith. CAP is an NSF International CertifiedDistributor and in 2014 became ISO 9001:2008 Certified as well. They are New Jer-seys only plastic bumper recycling facil-ity that offers premium quality OEMbumpers. Koren, a veteran of the industry, hasbeen with CAP for almost nine years.Having such extensive experience in thefield in general, as well as specificallywithin the company, he believes the secretfor their success lies with the CAP owner,Thomas Lee, and the overall shared visionof his co-workers. [Lee] is always driven for success;he always has his eye on the big picture,Koren says. Plus, we have an excellentsupport staff here that shares the same vi-sion for success. We have people of thehighest quality who have years of servicein this industry and that have the samecommon goal. It is this pervasive goal-driven

attitude that has allowed CAP to continueto grow. In order to meet increasing de-mand, they are in the process of relocatingthe Mount Laurel warehouse to a larger fa-cility, which should be open by March 1 ofthis year. Customers of CAP know that doingbusiness with this industry leader meansthey can expect high-quality parts, com-petitive pricing, constant access to prod-ucts via their website (www.continentalautoparts.com), great service and prod-ucts backed by a limited lifetime warranty. For more information, visit their web-site, call (973) 621-0006, toll-free at (888)368-7227 or email [email protected]. CAP serves the entire state ofNew Jersey, all five boroughs ofNew York, Central and EasternPA, the Westchester and Rockland County areas, Utica, NY and upstate New York, fromBuffalo to Albany. They are openM-F from 8-5 and Sat from 8-2.

Continental Auto Parts: Fulfilling the Needs of an Industry

NJA



Im a longtime parts professional atone of New Jerseys most prominentwholesale operations. In addition tobeing an avid supporter of AASP/NJ, Ido all I can to support individual bodyshops in their efforts to build a better in-dustry. Although I wholeheartedly re-spect the collision repair community, Ihave seen an increase in a practice that iscausing me great concern. Im sure werenot the only parts department out therethat has experienced a huge jump in partsreturns recently. What is causing our customers tosend our parts back to us? Well, it couldbe a number of things. With cycle timealways on every shop owners mind,some facilities might start ordering partsbased on the insurers estimate beforetheyve even had a chance to really lookat the car with their own eyes. Thismight cause shops to wind up with more

parts from us than they really need. Al-though this is very rare from my experi-ence, some shops might also feelpressured enough by financial con-straints to order a bunch of parts to getan invoice to show the insurer, but actu-ally use fewer parts or repair the dam-aged ones instead of replacing them.Maybe they only use a fraction of whatthey order and make a profit off the rest.Who knows? While I dont think Ive di-rectly encountered any shop that hasdone this, I have heard of some instanceswhere this kind of thing took place. Re-gardless of the reason for the returns, allI know is that it isnt uncommon for ashop to return a bunch of parts to me claiming they lost the job only to callme a week later for parts for the exactsame vehicle. Some shops never returnparts, or are incredibly apologetic if theyneed to; other shops seem to return parts

with every order they make with us. No parts department is perfect; Iknow returns can happen because of amistake on our end. Maybe we sent youa part for the right side of the vehiclewhen you needed it for the left side, orwe did something else that requires youto send it back. We will always do what-ever we can to correct any errors of thatnature when they come up. What we arehaving an increasingly hard time doing isaccepting returns on parts that are per-fectly fine. It slows down our workflowand adds unnecessary burdens on an op-eration that is already stretched too thin. If I sell you a quarter panel that youlater return to me, I cant just go to themanufacturer and say, Hey, the cus-tomer didnt need this. It actually takesme about two months to return that part and thats if the part is returned to mein decent condition. When I give you thatpart, its perfect and clean. When I get itback, it has often been left out in the rainor is caked with body dust. What do youexpect me to do with that? I cant give itback to the manufacturer in that condi-tion. A lot of times, the packaging is justas important as the part itself, becausesome manufacturers want to see thatoriginal box and logo along with the re-turned part. If you tear into that box likeits Christmas morning, I could end upwith a real problem. I would hate to haveto charge customers a 10-percent han-dling fee to cover the resources it takesme to clean up these parts when theycome back to me, but I might have togive that more than just a passingthought in the future. Of course, withdealerships like mine on every corner inNew Jersey, having to do something likethis scares me to death. The harsh reality is that like manyof our body shop customers we have tokeep our doors open with a very small

LETTER TO THE EDITOR

DEARNEW JERSEYAUTOMOTIVE...


profit margin. Out of that profit, I needto pay for the insurance and mainte-nance on our delivery trucks, pay gas tokeep those trucks on the road, pay thepeople driving those vehicles, providepaychecks to my counterpeople...youname it. Every time I read an articleabout how body shops can get the mostout of a repair job, Im reminded of howmuch I need to stretch the dollars com-ing into my facility as well. At the endof the day, I need to show that my de-partment is making money. And eventhough we do make some profit, thepossibility always exists that the dealer-ship could decide that this profit isntenough to justify the expense of havingso many guys on the road deliveringparts or doing wholesale at all. Werein the same boat as our auto body cus-tomers; we need them to understandwhy unnecessary returns are hurting us. We appreciate and respect our cus-tomers, and I want to do all I can tomake their lives easier. All I ask is for alittle more consideration along the way. I wish every body shop reading thisletter a happy and prosperous 2015.Lets work together in the spirit of mu-tual respect to make sure every facet ofour industry remains profitable and pro-ductive. Were all in this together. Sincerely, A Concerned Wholesaler


NJA

A couple of weeks later, I receiveda letter from Family Feud, formallyinviting us to be contestants on an up-coming show. So we waited. Andwaited. A few months later, they can-celed Family Feud. Our file must havegotten lost because we never got thechance to play for real, even whenthey brought the show back a fewyears later. Its too bad. Im certain

Ralph would have been a star. Of course, lost in all the celebra-tion of winning and getting invited tobe on the show was the question: Howexactly was the team captain (ME)going to get to Los Angeles? I dontfly, remember?

I never brought it up. And I neverwill.

OUT OF BODY (AND MECHANICAL) EXPERIENCEScontinued from page 9

I am sure werenot the only partsdepartment outthere that has

experienced a hugejump in partsreturns recently.

NJA


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sued. At the same time, in the last yearor so, I have never had so many calls in-forming me of lawsuits against insurersfor all of their improper practices. Colli-sion shops have learned that they cantake an assignment of a claim, repair avehicle properly and then file suitagainst the insurer responsible for therepair bill themselves for the difference.This is exactly what Tony decided to dosome time ago. Unsurprisingly, he washit with all of the tactics insurers have tomake him surrender before the casesgot in front of a judge and jury, but to noavail. Lake has employed the services ofthe Mackevich, Burke & Stanicki in Clarkto address Labor Rates, paint andmaterials cost reimbursement andproper payment for manufacturer-recommended repair procedures. Unfortunately, none of the caseshave made it to a jury yet. Yet as a resultof the relentless efforts of Tony andMackevich, Burke & Stanicki, things arechanging - not only for Lake, but for thecollision industry in New Jersey. Insurersdo not want these issues to get in frontof a judge and jury, yet most insurers willhold out right up to the court housesteps before offering to settle a caseand avoid trial. At the same time that the NewJersey cases are occurring with Lake,other major lawsuits are taking place allover the country. The collision industryhas finally decided that they have tostand up to the insurance industry, nomatter what. Most of the major suitshave now been merged together and itlooks like they will all be heard inFlorida. I am sure it will be a battle likenever before. Amidst everything, oneinsurance company in New Jersey hasdecided to take the high road andrealistically address these problems. As I mentioned, an auto insurer inNew Jersey has agreed to raise theirLabor Rate by almost three times theamount the company - and most otherinsurers - have been or are currentlypaying for repairs on certain types of ve-hicles, as long as the shop making therepairs is certified by the manufacturerof the vehicle being repaired.

EXECUTIVE DIRECTORSMESSAGEcontinued from page 15


NJA

New Jersey Manufacturers Insurance Company (NJM)has taken the lead in adjusting the Labor Rate they paycollision shops for repairs, at least on certain vehicles, toan amount that more accurately reflects what the LaborRate would be if the rates were allowed to seek their ownlevel. There is no doubt that the major lawsuits that aregoing on both locally and nationally played a major part inthis landmark decision. NJM should be commended forbeing the first insurer in New Jersey to acknowledge thatthe artificially suppressed Labor Rates are not sufficientenough to compensate collision shops in repairing carssafely and properly while allowing for a reasonable profit. This is a major turning point for New Jersey collisionrepairers. The industry should be proud of Tony for all hehas done, regardless of the consequences. However, thisis just a start in the right direction. If the collision industry isever going to come together in a united effort, now shouldbe that time! AASP/NJ has been fighting for the collision industry foras long as I can remember and is watching this develop-ment closely. I strongly recommend that collision shopsdemand that other insurers follow NJMs lead and adjusttheir rates. Stay tuned for more information on this interest-ing development. We will be watching and reporting onthis development as it unfolds.




FEATURE by Joel Gausten

Black BoxBASICS:

A Conversation with Jeff Lange & Larry Montanez

Our November 2014 coverstory (Privacy in Repairs:Will Black Boxes Changethe Industry?) prompted aslew of comments and ques-tions from readers looking tolearn more about event datarecorder (EDR) technologyand how it could ultimatelyaffect their customers andbusinesses. In an effort topresent the clearest andmost accurate informationpossible, we compiled themost common inquiries wereceived and reached out toour resident technical ex-perts, Jeff Lange and LarryMontanez, for a factual, real-world primer on exactly whatthese black boxes do anddont do while in your car.Along the way, we were ableto identify and address someof the most common indus-try myths surrounding thistechnology and offer ourreaders a stronger perspec-tive on an increasingly im-portant - and oftenmisunderstood - topic.



What are some of the common thingsrecorded by the event data recorders(EDRs) - otherwise known as blackboxes - in current vehicles?

Jeff Lange: In a very broad sense, youllsee two types of data recorded if a crashoccurs: Pre-crash and crash [or crash-re-lated] data. The pre-crash data reflects theoperational conditions during the five toeight seconds [depending of the manufac-turer] prior to when the supplemental re-straint system is activated or wakes up.The crash-related data reflects the condi-tions during the crash, such as change invelocity. This total time is generally under300 milliseconds. In the world of carcrashes and airbags, things happen inthousandths of a second, so the data col-lected after the system determines that acrash is happening is only collecting thefirst quarter to third of a second. In pre-crash data, youll typically see vehiclespeed, brake application, seat belt use andthe accelerator pedal and/or throttle posi-tions. It should be noted that there are twotypes of events recorded: Deployment andnon-deployment. Deployment events arethose of sufficient severity to activate anddeploy the airbag[s]. A non-deploymentevent is of sufficient severity to wake upthe airbag system, but a deployment is de-termined to be unwarranted.

Larry Montanez: If the airbag controlmodule detects that the vehicle might bein danger due to the condition the vehicleis in, or the condition the vehicle might bein, then the airbag system will activate. Ifthere is no collision event and the manu-facturers threshold has not been brokenbased on the deceleration of the vehicle,then the airbag wont deploy. It will justrecord, We woke up; we almost had to getinto a fight, but we hit snooze on thealarm clock and went back to sleep. If anevent does occur - and this could be a pot-hole making the car think its in enough ofa deceleration at enough speed over ashort distance - the airbag system woulddeploy the necessary components basedon the information input from the driverand passenger. For example, if you hit apothole on the left-hand side, the airbagsystem may decide that only my seatbeltmight need to be locked for me to be safe,while the passenger airbag might deployfor them based on their weight and the fact

theyre on the side of danger. Its a dis-criminatory system all based on the airbagcontrol module.

Is there anything that EDRs typicallytrack all the time, such as GPS loca-tion and so forth? What makes EDRsdifferent from pay as you drive de-vices used by some insurers that trackcustomers driving habits?

LM: The electronic data recorders thatAllstate and Progressive are using arethings that drivers elect to have placed intheir cars. You voluntarily put that in, andthat will record a whole bunch of stuff. Itrecords a slew of things, including yourfastest speed. The data recorder inside theairbag control module does not do that. Itcant tell you the fastest speed the car hasever reached. Currently, theres no GPSthat connects to the electronic datarecorder, or vice versa.

What are some of the greatest miscon-ceptions people in the industry - aswell as the media - have about the in-formation tracked by event datarecorders? For example, its a com-monly held belief that headlights andhazard lights are among the thingsrecorded by this equipment, but thismight not be the case.

JL:Youre right; that is not the case. An-other big misconception is that EDRstrack time and date. People think these arelike true black boxes, where they recordflight and date stamps and audio of what isgoing on at the time of the event. Also,there is no way to identify if a specific keywas used. It is also a mistake to believethere is something in that box that canidentify a specific driver, although therehave been cases where someone said, I letmy girlfriend drive the car, and itcrashed, and then you find out the seat isin a position for a guy whos six-foot-fourand not a girl who is five-foot-two.

LM: Ive tried to explain to people that itdoesnt tell you what time you woke up inthe morning or had breakfast before get-ting in the car and putting on your seat-belt. There is not a videographer followingyou around the entire day. In many cases,itll tell me if the car is going forward orin reverse, and itll definitely tell mespeed, whether or not the brakes were

applied and if the ABS system had to beactivated. Its not going to give me yawrate, and it wont tell me if the lightswere on or anything like that.

How much information can be gatheredfrom a vehicle black box by a police of-ficer who pulls you over?

LM: None. The car is not recording any-thing unless it thinks its in an accident.

JL: If theres no crash, and an officerstops you on the road and says, I thinkyou were speeding, so we want to pluginto your event data recorder, theresnothing in there because theres no event.Many times, we even have cars that have acrash, but the crash was not of a suffi-cient-enough severity to activate therecording portion of an EDR. Its just nottrue that these things are always recording.

What is the biggest impact EDR tech-nology will have on the collision repairindustry?

JL: Insurance companies will use the datato make a determination on if theyregoing to honor a claim. For example, if acustomer is claiming that their car wasparked and unoccupied when it was hit,the insurers can deny the claim if it is ob-vious - even without EDR data - that thecar was moving at the time of the crash.Thats a misrepresentation. Honestly, Ithink the concern for body shops at thispoint may be that theyre advocates fortheir customers. When the shops advocatefor those customers, the data could actu-ally end hurting that shops good inten-tions. Ive had claims adjusters send me toa shop to investigate whether or not thatshops customer is telling the truth. Thedata in the module can conflict with thecustomers statements. If that happensand youre advocating for that person, itreduces your credibility. I think thats agenuine concern.

More insights from Jeff and Larryon vehicle black box technology -including the debunking of severalother common misconceptions - areavailable at http://www.pnlestimology.com/wp-content/uploads/2013/06/Dispelling-the-Myths-About-Black-Boxes-HD-Jun13.pdf.

NJA



FEATURE By Joel Gausten

Anyone who fixes or simplyrides in an automobile un-derstands the importanceof an airbag. At crucialmoments when every sec-ond counts, these devicesprotect drivers and pas-sengers from potentiallylife-threatening conse-quences. However, as gov-ernment officials and agrowing number of foreignand domestic vehicle man-ufacturers have learned thehard way, certain airbagscould also mean severe in-jury or even death. A prod-uct created to protect themotoring public has nowintroduced a frighteninggame of chance that couldleave the losers maimed,or worse.



This harrowing tale began more than a decade ago inEast Asia. The Takata Corporation, a prominentJapanese airbag manufacturer that services a numberof manufacturers, supplied driver- and passenger-sideairbags for a number of vehicles in model years 2000 through2008. Recent years have seen a growth in reported defects ina small number of these airbags in high-humidity areas.When in these humid conditions, the bags could experience adeterioration of the propellant used in the bag, leading to ex-cessive combustion during deployment and the potential forthe inflator housing to rupture. The results of the explosionare said to include metal shards hitting and possibly penetrat-ing the drivers face. A November 20 Fox Business report re-vealed that Takata produces 20 percent of all airbags usedglobally. Although a recall was initially established earlier thisyear to address 14 million vehicles worldwide includingeight million in a number of high humidity states in the US,but not New Jersey the National Highway Traffic SafetyAdministration (NHTSA) is now calling for a nationwide re-call of driver-side airbags that could affect 20 million or moreautomobiles in America based on a recent investigation into avehicle that suffered an airbag explosion outside of the initialhigh-humidity target area. Additionally, a November 18 an-nouncement from the agency detailed some of its demandsto Takata and the automakers that used the companysproducts: As part of these efforts and its ongoing investigation intoboth the defect and the scope of the recalls, the agency also is-sued a General Order to Takata and all [10] of the vehicle man-ufacturers that use Takata airbag inflators BMW, Chrysler,Ford, General Motors, Honda, Mazda, Mitsubishi, Nissan, Sub-aru and Toyota requiring each manufacturer to file, underoath, a detailed report and produce all related documents aboutcompleted, ongoing or planned testing of Takata inflators out-side the current regional recall areas. The agency is demandingthis information to compel Takata and the affected industry tobe frank with not only NHTSA, but the American public, as towhat testing and additional steps they have done and plan to doto control and mitigate the risk associated with Takatas defec-tive inflators. Additionally, NHTSA issued a Special Order to Takata, thesecond the agency has issued to the manufacturer regardingthis defect, compelling it to provide, under oath, documents anddetailed information on the propellant used in Takatas infla-tors. In recent days, Takata has publicly conceded that itchanged the chemical mix of its airbag inflator propellant innewly designed inflators. As part of its ongoing investigation,the agency will analyze the information received to determine ifthe chemical composition of Takatas propellant mix may be acause and/or contributing factor in the airbag inflator ruptures. Not surprisingly, NHTSAs request has resulted in a

moving target with almost daily effects to the automotive in-dustry and motoring public. While some things in the auto-motive world might be frustratingly stagnant, the Takataairbag dilemma is an ever-changing problem that is impossi-ble to ignore. Tragically, there are true, tangible stories to illustrate thepotential dangers of Takatas products. Still visibly scarredfrom her ordeal, Air Force Lieutenant Stephanie Erdmanwent before a Senate Commerce Committee hearing in Wash-ington on November 20 to recount, in chilling detail, a 2013accident that left her seriously injured after an airbag ex-ploded in her face. When the impact occurred, shrapnel from my carsairbag shot through the airbag cloth and embedded into myright eye and cheek, she recalled. I was instantly blinded onmy right side. I felt gushing blood running down my neck. Iwas terrified. What happened to me was gruesome; the photothat the EMT took of me with the shrapnel embedded in myeye is scary to look at. But I believe this is necessary to grabthe attention of those who have the ability to do somethingand keep this from happening to anyone else. According to a September 11 story in the New York Times,a lawsuit filed by the family of 33-year-old Gurjit Rathoreclaimed that she bled to death after being hit with shrapnel inthe airbag explosion when her Honda Accord hit a mail truckin Richmond, VA. The report added that her children were inthe vehicle and witnessed the event. As of this writing, Takata has refused to directly complywith the expanded recall demand, instead passing along thedecision to the affected vehicle manufacturers. We recognize that NHTSA has urged Takata and ourcustomers to support expansions of the current regional cam-paigns in the United States, offered Takata Chairman andCEO Shigehisa Takada in a December 3 press statement.Takata remains committed to cooperating closely with ourcustomers and NHTSA to address the potential for inflatorrupturing. We will take all actions needed to advance the goalof safety for the driving public, including working to produceadditional replacement units to support any further recallsthat may be announced by our customers. In early December, Honda became the first manufacturerto agree to expand its regional airbag recall nationwide. Theautomakers decision to step up to the plate and add 2.6 mil-lion more cars beyond its original recall effort in the highhumidity regions (Alabama, California, Florida, Georgia,Hawaii, Louisiana, Mississippi, South Carolina, Texas, PuertoRico and the US Virgin Islands) comes after months ofscrutiny over its experience with the Takata issue. As re-ported by the Detroit News on December 8, Honda has con-firmed four deaths - including one in Malaysia - and 46injuries in the United States linked to Takata. Honda confirmed with New Jersey Automotive at press



time that the expanded recall had officially begun in New Jer-sey, with Garden State dealers now able to conduct the neces-sary airbag repairs immediately for any of these includedvehicles:

2001-2007 Honda Accord with 4-cylinder engines2001-2002 Honda Accord with V6 engines2001-2005 Honda Civic2002-2006 Honda CR-V2003-2011 Honda Element2002-2004 Honda Odyssey2003-2007 Honda Pilot2006 Honda Ridgeline2003-2006 Acura MDX2002-2003 Acura TL2002 Acura CL

The most updated available consumer information aboutHondas action is obtainable at www.recalls.honda.com andwww.recalls.acura.com or by calling (800) 999-1009 forHonda owners or (800) 382-2238 for Acura owners, and se-lecting option 4. More information about the Hondas na-tional Safety Improvement Campaign is available atwww.hondanews.com/honda-corporate/channels/corporate-recalls/releases/statement-by-american-honda-regarding-national-safety-improvement-campaign-drivers-front-airbag-inflator-supplied-by-takata. As detailed in a December 12 report by USA Today,Chrysler will add 139,115 vehicles to the 69,668 cars alreadycovered by the previous recall, bringing the total number ofvehicles affected by the latest action to just under 209,000.The latest expansion covers the Ram pickup from the 2003 to2005 model years, the 2004 and 2005 Dodge Durango, the2005 Chrysler 300 and 2005 Dodge Magnum. A December 4Car And Driver update announced that Ford had joined theexpanded recall effort, adding passenger-side airbags to therepair list of about 13,000 vehicles (20042005 Rangers and20052006 GTs) already involved in the regional Takata re-calls originally sold, or ever registered, in Florida, Hawaii,Puerto Rico and the U.S. Virgin Islands. The expanded re-call also includes zip codes with high-humidity conditions inGeorgia, Alabama, Mississippi, Louisiana, Texas, Guam,Saipan and American Samoa. With auto manufacturers expanding their airbag recallsby the day, 2015 promises to be an intense year for service de-partments as more and more states are called upon to untan-gle the Takata mess. This story is just getting started. Look for an update to this feature in next months issue ofNew Jersey Automotive. Information on current National High-way Traffic Safety Administration recalls is available atwww.nhtsa.gov/Vehicle+Safety/Recalls+&+Defects.

NJA


For Original BMW Parts, contact one of these authorized BMW centers:

THERE HAS NEVER BEEN A BETTER WAY TO BUY THEWORLDS BEST ENGINEERED PARTS.

JMK BMW391-399 Route 22 E.Springfield, NJ 07081Toll Free: 800-648-0053Fax: 973-467-2185www.jmkbmw.com

Princeton BMW3630 Quaker Bridge RoadHamilton, NJ 08619PH: 609-570-1611Fax: 609-570-1602www.princetonbmw.com

BMW of Roxbury840 Route 46 EastKenvil, NJ 07847PH: 973-627-7999Fax: 973-598-0339www.bmwrox.com

BMW of Freehold4225 Route 9 NorthFreehold, NJ 07728PH: 732-462-6286Fax: 732-577-0518www.bmwoffreehold.com

Flemington BMW216 Route 202/31Flemington, NJ 08822PH: 908-782-2441Fax: 908-824-9913www.flemingtonbmw.com

Prestige BMW985 Route 17 SouthRamsey, NJ 07446Toll Free: 888-30-PARTSDirect: 201-327-8485Fax: 201-760-5525www.prestigebmw.com

Wide World BMW125 East Route 59Spring Valley, NY 10977PH: 877-817-3895Fax: 845-425-5080www.wideworldofcarsbmw.com



Circle BMW500 Route 36Eatontown, NJ 07724Parts Direct: 732-440-1235Fax: [email protected]

BMW of Morristown111 Ridgedale AveMorristown, NJ 07960PH:973-796-3145Fax:973-796-3146www.bmwmorristown.com

Open Road BMW731 US Highway 1Edison, NJ 08817Parts Direct: 732-692-6918PH: 732-839-4505Fax: 732-650-9815www.openroadbmw.com

Paul Miller BMW1515 Route 23 SouthWayne, NJ 07470PH: 973-696-6060Fax: 973-696-8274www.paulmillerbmw.com

BMW of Mount Laurel1220 Route 73 SouthMount Laurel, NJ 08054PH:856-840-1486FAX:856-222-0506www.bmwofmtlaurel.com

Park Ave BMW530 Huyler StreetSouth Hackensack, NJ 07606PH: 201-843-8112FAX:201-291-2376www.parkavebmw.com

BMW of Bridgewater655 Route 202/206Bridgewater, NJ 08807PH: 908-287-1800FAX:908-722-1729www.bridgewaterbmw.com

BMW of Newton119 Hampton House RoadNewton, NJ 07860PH: 973-579-6020FAX:973-579-9632www.bmwnewton.com

Original BMWParts

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ARANJ 2014OfficersPresident Bob Dirkes

Dirkes Used Auto Parts609-625-1718 [email protected]

1st Vice PresidentIan Szoboszlay

Ocean County Auto732-349-0332

[email protected]

2nd Vice PresidentDarryl Carmen

Lentini Auto Salvage908-782-6838

[email protected]

3rd Vice PresidentJoe GoodmanLeesville Auto732-388-0783

[email protected]

Past PresidentNorm Vachon

Port Murray Auto908-689-3152

[email protected]

Executive DirectorBrian Snyder

Auto Recyclers of NJ609-714-2339 [email protected]

ARANJ 2014Board of Directors

Mike RonayneTilghmans Auto Parts

609-723-7469 [email protected]

Marvin LeadbeaterBamber Lake Auto

[email protected]

Mike YeagerEL & M Auto

609-561-2266 [email protected]

Rodney KrawczykAce Auto Wreckers

[email protected]

Mike CaputoLacey Used Auto Parts, Inc.

[email protected]

ARANJ The Automotive Recyclers Association of New JerseyLegal Update Immunity for Members and Agents of Limited Liability Companies Recently, the Appellate Division issued a decision that could expand the im-munity of agents and members of limited liability companies (LLC). The case,entitled Castro v. Giacchi, featured a handshake agreement between Castro andGiacchi, under which Castro agreed to perform carpentry work for a fee. SinceGiacchi did not indicate that he was acting on behalf of a business entity, Castrobelieved that he had contracted directly with Giacchi. However, payments to Cas-tro were drawn from the bank account of John & Sons Ang LLC (Ang), of whichGiacchi was a member. As a result, Castro sent the final bill to Ang. The bill wasnot paid, and Castro sued Ang and Giacchi. The trial court found that Giacchiand Ang were both liable for the amount owed to Castro. Giacchi appealed the decision that he was personally liable for the debt. TheAppellate Division agreed with him. In reaching this decision, the Appellate Divi-sion relied heavily upon the language of the N.J.S.A. 42:2B-23, which states:

Except as otherwise provided by this act, the debts, obligations and liabil-ities of a limited liability companyshall be solely the debts, obligationsand liabilities of the limited liability company; and no member, manager, em-ployee or agent of a limited liability company shall be obligated personallyfor any such debt, obligation or liability of the limited liability company

Based on the above, the Appellate Division concluded that Giacchi cannotbe held personally liable for any of Angs debts or liabilities under any circum-stances. Thus, the typical rule that an agent who fails to disclose he is enteringinto a contract on behalf of a principal is individually liable on the contract, unlessthe other party knows or had reason to know the agent was acting on behalf of aprincipal does not apply when the agent is acting on behalf of an LLC. Although the original Uniform Limited Liability Company Act (N.J.S.A. 42:2B-23) has been repealed, the Appellate Division noted that the language in the re-placement statute, N.J.S.A. 42:2C-30, closely tracks the original language.Thus, it is likely that this decision will equally apply under the new statute. The decision in Castro protects members or agents of a LLC from contractualliability, even if the member or agent does not communicate to another party thathe represents an LLC when entering into the contract or agreement. Even moresignificant, by stating that a member or agent of a limited liability company cannotbe held personally liable for the debts or liabilities of the LLC under any circum-stances, the Appellate Divisions decision suggests that the practice of piercingthe corporate veil to hold shareholders or officers of a corporation liable for corpo-rate liabilities to prevent a fraud may not apply to LLCs. This conclusion directlycontradicts another unpublished Appellate Division case decided in 2010, Brown-Hill Morgan, LLC v. Lehrer, which held that the principal of piercing the corporateveil did apply to LLCs. As a result of these conflicting decisions, an agent ormember of a LLC should be wary before relying completely on Castro, as it wouldappear that this issue is ripe for further consideration by the Court. For further information, please contact George J. Tyler, Esq. or Matthew J.Krantz, Esq. at (609) 631-0600.



Wharton Insurance Briefs An ARA MemberThe New Jersey Workers Compensation Rating and Inspection Bureau released the newly promulgated rates for2015:

Auto Dismantling rate increased to $21.24 Auto Body Repair rate increased to $4.31 Auto Repair rate increased to $7.77 Clerical increased to $0.28 Iron or Steel Scrap Dealer decreased to $15.82 Salesperson remained the same at $0.60 Store: Retail Accessories (Counter Person) increased to $5.68

PLEASE NOTE: The Store (Counter Person) code must be approved prior to use. The operation must be physicallyseparated from salvage and parts storage and must not have any interchange of labor.

Also, the executive officers annual minimum payroll is $31,720 and annual maximum payroll is $125,840. Lastly, ifyour insurance policy is written in the NJ State Plan, you are going to be charged an additional 17 percent (minimum)and 35 percent (maximum) for the Plan Premium Adjustment Penalty and will lose any Premium Discount.

As always, if you have any questions regarding your insurance coverage, please contact us.

Mario DeFilippis, AAI, Vice President800-221-0003 (1320) 908-513-8588 (cell) [email protected]

BILLS GOVERNINGTHE PRESERVATIONOF MOTOR VEHICLEACCIDENT DATAAMENDED BY ARANJ

In September 2014, iden-tical bills S2433 and A3579(collectively, the Bills)were introduced in the NewJersey Senate and Assemblyin response to a rule proposalby the National HighwayTraffic Safety Administration,which would require the in-stallation of event datarecorders in the majority ofnew motor vehicles. As ini-tially drafted, the Bills gov-erned the use and preserva-tion of data recorded by de-vices in motor vehicles. Mostsignificant for members ofARANJ, the Bills prohibiteda person from knowingly al-tering or deleting data on arecording device, or know-ingly destroying a recordingdevice within two years aftera crash resulting in bodily in-jury or death. The Bills pro-pose penalties in the amount

of $5,000 for each violationof this requirement.

Because of the difficul-ties associated with requiringautomobile recyclers to deter-mine whether vehicles ob-tained were involved in acrash resulting in bodily in-jury or death, and the impos-sibility associated withholding such vehicles for twoyears, compliance with thisprovision by ARANJ mem-bers would have been com-pletely infeasible.Consequently, if the Billswere adopted as proposed,ARANJ member businesseswould be forced to close orincur potentially ruinouspenalties.

Given the stakes, ARANJofficers, with the assistanceof Tyler & Carmeli, P.C., ini-tiated a campaign to seekchanges to the Bills to protectARANJ members from thedraconian requirements thatwould be imposed on theirbusinesses. Letters were sub-mitted by ARANJ to thesponsors of the Bills and thelegislative committees

charged with considering theBills. In addition, numerousmembers of ARANJ con-tacted their local legislators toexpress their concerns overthe Bills.

As a result of these ef-forts, on December 3, 2014,ARANJ officers and repre-sentatives of Tyler & Carmeliattended a meeting with theprimary sponsor of A3579,Assemblyman Paul Moriarty.Assemblyman Moriarty wasreceptive to the suggestionsby ARANJ representativesand was willing to consideramendments to ameliorate theunintended consequences ofthe Bills on ARANJ mem-bers.

On December 15, the As-sembly passed an amendmentto A3579 that incorporatedlanguage to limit the impacton ARANJ members. Specifi-cally, it limits violations forthose who alter or delete dataon a recording device or de-stroy a recording device toonly those who do so with theintent to prevent access toor destroy the recorded

data. Therefore, automobilerecyclers that destroy arecording device in the nor-mal course of business, wherethe intent is to recycle auto-motive parts and not to de-stroy recorded data or preventaccess thereto, would not besubject to a violation.

In addition, the amend-ment establishes a rebuttablepresumption that vehicle re-cyclers and scrap recyclingfacilities have no knowledgeof involvement of a motor ve-hicle in a crash event result-ing in bodily injury or death.

ARANJ officers andlegal counsel are presentlyevaluating the amendedA3579 and are consideringfurther action to safeguardagainst the possibility ofARANJ members being sub-ject to violations under theproposed law.

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



The 2014 SEMA Show in LasVegas was such an exciting event forthe industry that many in the field arestill talking about it months later. Onedistributor who will never forget the2014 installment of the show is Inno-vative Solutions and Technology.Despite only having been in businessfor a little over a year, they wereawarded the 2014 Distributor of theYear by Pro Spot. We are excited and honored tobe awarded 2014 Pro Spot Distributorof the Year, says Sales Representa-tive Todd Witten. It is an exciting timewith many changes in our industry,and we thank Pro Spot Internationalfor understanding these changes andgiving us great products, knowledgeand training to prepare InnovativeSolutions & Technology and ourcustomers for these changes. We arelooking forward to 2015 and would liketo thank our customers most of all formaking the success of our companyand this award possible. Innovative will be showcasingtheir Pro Spot technology, whichearned the company the Supplier ofthe Year award by the Ford MotorCompany, at AASP/NJs upcomingNORTHEAST 2015 Automotive Services Show.


INDUSTRY NEWS

Innovative Technology& Solutions WinsAward at SEMA(Left to right): Ron Olsson, president of Pro Spot International; Todd Witten andNick Mattera, sales representatives for Innovative Solutions & Technology; Ashley

Olsson, communications for Pro Spot International and Wendy Olsson, owner

NJA


(Left to right): Tony Zaccaro, Cosmos Auto Parts; Joe Goodman, Leesville Auto; Lt. Colonel James Sfayer, USMC;Mike Yeager, EL & M Auto Recyclers; Darryl Carman, Lentini Auto Salvage


Team PRP-Northeast Donates tothe Wounded Warrior Project

NJA

Like many others, for the holiday season, many TeamPremium Recycled Parts members found it in their heartsto give to others who arent as fortunate. Team PRP-North-east, a group of 21 regional auto recyclers, gathered$21,000 to donate to the Wounded Warrior Project acharity serving the veterans of our nation who werewounded in action. It is estimated that over 50,000 veter-ans return home with physical injuries, and over 400,000are estimated to return with PTSD. The Wounded WarriorProject works to help these veterans transition back to theirnormal lives. Representing the New Jersey auto recyclersof Team PRP-Northeast were Tony Zaccaro of CosmosAuto Parts, Joe Goodman of Leesville Auto, Mike Yeager ofEL&M Auto Recycling and Darryl Carman of Lentini AutoSalvage, who symbolically presented the check to USMarine Corps Lt. Colonel James Sfayer.



Acme Nissan................................................27

Amato Agency..............................................50

Audi Group ................................................30-31

Axalta Coating Systems ..............................6

BMWGroup ................................................44-45

Bridgewater Acura........................................20

Cadillac of Mahwah......................................56

CCC Comp-Est ............................................10

Classic Audi ................................................10

Continental Auto Parts ................................24

Cosmos Recycled Auto Parts ......................14

Cycan Industries ..........................................33

Empire Auto Parts ........................................58

Flemington Audi ..........................................5

Flemington Group ........................................IBC

Fred Beans Parts ........................................13

Future Cure..................................................52

Glen Toyota..................................................OBC

Hyundai Group ............................................26

JMK BMW....................................................11

JMK Saab/JMK Fiat ....................................8

Klean Frame ................................................58

LKQ..............................................................33Maxon Mazda ..............................................46

Maxon Hyundai ............................................35

Mazda Group ..............................................51

Mercedes Benz of Freehold ................

new jersey automotive january 2015

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