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SERVING THE NORTH JERSEYAUTOMOTIVE INDUSTRY FOR OVER 30 YEARS

SERVING THE NORTH JERSEYAUTOMOTIVE INDUSTRY FOR OVER 30 YEARS

2 New Jersey Automotive July 2014

New Jersey Automotive July 2014 5

VOLUME 44, NUMBER 7 July 2014P.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]

Brian Vesley, Valtek, Inc.973-278-1444 / [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]

CONTENTS

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 AUTOMOTIVEare copyright 2014 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission fromthe publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Image Credits: Cover and Page 35:thinkstock.com/Peter M. Fisher/Fuse; Page 36: thinkstockphoto.com/hoozone; Page 37: thinkstockphoto.com/Dmitry Kalinovsky; Page 39: thinkstockphoto.com/ayzek; Page 40: thinkstockphoto.com/Melpomenem; Page 41: thinkstockphoto.com/Adam Radosavljevic; Page 52: thinkstockphoto.com/Gudella

PUBLISHERThomas Greco ([email protected])MANAGING EDITORAlicia Figurelli ([email protected])EDITORJoel Gausten ([email protected])ADVERTISING DIRECTORNorman Morano(800)991-1995 ([email protected])ART DIRECTORLea Velocci ([email protected])OFFICE MANAGERSBrandi Smith ([email protected])Sofia 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) 235-1963Advertising: (800) 991-1995 / FAX: (732) 280-6601

www.grecopublishing.com

The Alliance of Automotive Service Providers/New Jersey

Ron AnanianJim Bowers

Charles BryantDon ChardGuy Citro

Ed DayDave Demarest

Tom Elder

Bob EverettThomas GrecoRich Johnson Wes KearneyNick KostakisJim KowalakJoe Lubrano

Michael LovulloSam Mikhail

Ron MucklowGeorge Petrask

Russ RobsonJerry RussomanoGeorge Threlfall

Cynthia TursiLee VetlandPaul VigilantRich WeberBrian Vesley

Glenn VillacariStan Wilson

HALL OF FAME


VENDOR SPOTLIGHT16 Help from Above: BMW and MINI of Manhattan Earn Respect

in the Garden State and Beyond

IN & AROUND AASP/NJ18 Fierce Competition, Hearty Camaraderie at AASP/NJs 3rd Annual Race Night20 Circle BMW & NJ BMW Car Club of America Join for Evening of Education20 NJ SkillsUSA Gold Medalist Honored by AASP/NJ21 American Truck Historical Societys Metro Jersey Chapter Show Highlights22 Montanez Offers Airbag Testimony at RI Senate Hearing

FEATURES24 The 2015 Ford F-150: Your Questions Answered40 The Right to Revenue: P&M Payments Spark Concern by Joel Gausten

COVER STORY34 2014 New Jersey Automotive Industry Survey Results

NO BRAKES by Ron Ananian52 Under the Hood

AUTOMOTIVE RECYCLERS OF NEW JERSEY59 Wharton Insurance Briefs

62 LAST LOOKSATAminijet 4400 B HVLP & RP* Provides Optimal Coverage, Enhanced DurabilityContinental Auto Parts Announces Achievement of NSF International Distributor Certification

8 OUT OF BODY (AND MECHANICAL) EXPERIENCES10 PRESIDENTS MESSAGE12 EXECUTIVE DIRECTORS MESSAGE

28 MEET THE BOARD62 NJA ADVERTISERS INDEX

OUT OF BODY (AND MECHANICAL) EXPERIENCES

As Time Goes By

When I started writing these columns,I was at least a half-inch taller, about 40pounds lighter and had a lot more hair (noneof it gray). I set about telling random talesand spouting my opinions on everythingfrom burgers to politics. My kids wereyoung, and the basis for the majority ofmy articles. Hell, they still are. But thingschange as you age. First, its the hair. Thenthe waist, then the eyesyou get the idea.As you get older, you learn to live with the

limitations that come with an aging body.With my knee aching as I write this, I thinkback to the days of adult recreation basket-ball, softball and football. Now Im downto volleyball, where its illegal to jump andyou have to make sure you bump it to a fe-male before you can send it back over thenet. Shuffleboard cant be far away.

Its funny to be writing about gettingolder once again. Last year, as a Christmasgift to my wife and kids, I had a hardcover

book printed up collecting all my articlesand interviews over the last 15 years. Thevery first article I wrote about my familystarted like this:

As I write this article, mydaughter is attending her first dayof junior high. Junior high???Where the hell did all the time go?It really didnt hit me until lastnight. I began thinking about how


by Thomas Greco, Publisher

in just six short years, she will begoing off to college and into a lifeof her own. And that thought re-ally, really depresses me. It is com-pletely impossible for me toimagine a day when she wont bethere in her bed at night waitingfor me to come and tuck her in.Jeez. I must really be getting old.And now that my daughter is in ju-nior high, it makes me wonder howmany summers like those I haveleft. Pretty soon, Im sure shesgoing to rather be spending thosesummer nights with her friends in-stead of her dad and little brother.Man, that sucks.

And here we are, almost 10 years later,returning to the aging subject. Why?Because last week, I received the text. (by

the way, 10 years ago, text was what youfound in a schoolbook.) that I sort of pre-dicted all those years ago. I had texted thekids information about our annual trip toOrlando and thats when it appeared: CanBruce come to Orlando with us? There ITwas. The knife to the heart. The magic bul-let. The (any clich you can think of). I hadto read it again. Can Bruce come to Or-lando with us? My honest-to-God firstthought? Shoot me.

My mind started whirring like oneof those rainbow balls you see whenyour computer is about to crash. How do Irespond? Has she already invited theboyfriend? Is she going to hate me? Icould feel what little hair I have left turninggray.

But it was something I had to deal with,as all dads eventually do. Of course, thatdidnt make me feel any better. But my kids

happiness trumps everything else, so I hadto figure out a way to keep our family va-cations intact without pushing her to opt outand stay home with Bruce. So I thoughtand thought about it and, being a 21st cen-tury dad, I think I came up with a pretty faircompromise. I sat her down and said: UntilBruce or someone else puts a ring on yourfinger, our vacations are strictly blood rela-tive activities. (At least I thought it wasfair.)

To my surprise and delight, she agreed.My heart glowed as I realized I had at leastone more year of the family unit on vaca-tion. Then again, my daughters no dummy.As she walked away, she turned and said,But hes coming to Wildwood.

Shoot me.


NJA

As I write this message, Im still feel-ing the adrenaline rush from AASP/NJs re-cent Race Night. If youre looking for anemployee outing or opportunity to inspiresome friendly competition in the shop, Ihighly recommend you be a part of our nextracing event. Some people laugh at the ideaof racing go-karts, but let me tell you: Theseare not the dinky, glorified golf carts fromdown the shore you may be thinking of.These go-karts are not only odorless andquiet (since theyre electric), but they alsotear up the track at up to 45mph. It is seri-ous business driving one of these things, butit is also a seriously good time. Its a nightof fun and networking, and I already cantwait for the next one. If youve never beento an AASP/NJ Race Night, try to makeone. And if you were at this years event,Im sure Ill see you again for a rematch!

On a more serious note, Id like tomention something Ive been seeing moreand more of in recent times. It seems likeevery other day, Im opening a trade maga-zine or checking out an industry websiteand hearing news of another repairer facingan insurer in the courts, taking legal actionagainst injustices brought against the shopor uniting to tackle a widespread industryconcern like mandated parts procurement.The recent federal lawsuit filed in Pennsyl-vania against multiple insurers (see Fed-eral Lawsuit Alleges Insurers Conspiracyto Control Collision Repair Costs, NJAJune 2014) is a perfect example of what Imtalking about. And dont forget about statesincluding Mississippi and Florida that areeither gearing up for or in the middle oflawsuits and taking stands themselves. Re-pairers from across the country are sick andtired of the status quo imposed upon themby outside parties, and more and more aredoing something about it, and fighting totake back their industry. In my 40-plus years

PRESIDENTS MESSAGE

Breaking Point


by Jeff McDowell

continued on page 46

For years, I have written articles aboutthe injustices that certain insurance compa-nies impose on collision shops and thepeople that they insure. The purpose of ex-posing the injustices in these articles was to

try and bring about change. However, thesewrongs have been going on for as long asI can remember, and continue to thisvery day. It has always amazed me to seethe wonderful, caring picture painted by

insurers in an attempt to sell a policy to con-sumers to protect their assets and familymembers. The insurers market themselvesas being able to protect their policyholders,and keep them secure in the event of an ac-cident or loss. Yet when an accident hap-pens, everything changes.

Right from the start, when an insuredhas an accident and reports the claim, mostinsurers will attempt to convince, persuadeor intimidate the driver into utilizing a shopon the insurers Direct Repair Program(DRP). DRP shops must agree to a set of re-pair guidelines that could include restrictedLabor Rates, paint and material allowances,the use of aftermarket parts and much more.This allows the insurers to save money onthe repair costs while also controlling rates.The insurers attempt to interfere with thecontractual relationship between an insuredand the shop of his or her choice - morecommonly known as steering - is usuallydone very skillfully so the insurer cannot beheld liable for the practice.

If a consumer chooses to reject the re-ferral from an insurer and go to the shop ofhis or her choice for the repairs, the insurerwill send an appraiser out to inspect thedamaged vehicle. The first thing the ap-praiser does is attempt to negotiate anagreed price with the insureds chosen shop.Most collision shops have been led to be-lieve that they must reach an agreed price torepair the damaged vehicle with the insurer,or face losing the job to one of the insurersDRP shops. The insurers are quick to usethe threat of moving a vehicle to a DRP fa-cility if the shop doesnt accept their pre-pared estimate. In reality, the insurer canonly recommend a DRP shop. The insuredis under no obligation to accept the recom-mendation unless the insurer is clearlychoosing what is referred to as the optionto repair provision found in all autopolicies.


EXECUTIVE DIRECTORS MESSAGE

Time for Action!by Charles Bryant

By now, many readers may be wonder-ing what is going on here. Either steering isallowed or its not, right? Either an insurerhas the right to control the cost of the repairor they dont, right? Well, listen carefully. Iam about to explain something that mostcollision shops have been misinformedabout for many years:

Insurance companies have the rightto steer.

Thats right. This should be a wake-upcall for those who have been under the falseimpression that an insurer cannot insist re-pairs be made by a particular repair shop.Please allow me to explain. Under the pay-ment of loss provisions in the policy of in-surance, the insurer has the right to eitherrepair the property, replace the property orpay for the loss in money. We in the colli-sion industry may have seen this in the pol-

icy from time to time, but never paid muchattention to it because insurers alwayschoose to pay for the loss in money. If theinsurer were to choose to repair the prop-erty, they actually would have the right toinsist the repairs be made by a particularshop chosen by them and exert the right tocontrol all aspects of the repairs, includinghow the damaged vehicle will be repaired,what type of parts will be used, what LaborRate they will pay and the final cost of therepairs.

But that goes against everything wehave come to know! you might be saying.Well, I would agree. The simple fact is, theinsurance industry has created this make-believe world we live in and says things tomake people in the collision industry thinkthis is the way things are actually supposedto be. A typical example of this is somethingyou probably hear every day: We dont payfor that. How in the world can an insurerinsure a vehicle and say, We dont pay forthat regarding a necessary procedure to re-pair that vehicle? The answer is that we ac-cept it.

OK, so lets get to the bottom line. Ifinsurers have the right under the payment ofloss provision in the policy to choose theshop that will repair the vehicle, how the ve-hicle will get repaired, what type of partswill be used, the Labor Rate that will bepaid and more, why dont they just choosethe option of repairing the property everytime? The answer is because when they do,the insurer becomes liable for negligent re-pairs and the policy limit is broken. If an in-surer knew they were going to be held liablefor negligent repairs, you can bet theywould never allow a damaged vehicle to berepaired with used suspensions, inferior af-termarket parts or parts that pose a safetyissue to be repaired when they should actu-ally be replaced.

So, how do insurance companies getaway with it? Again, its simple: The colli-sion industry allows it to happen because ofour lack of knowledge. The insurance in-dustry has drilled it into the heads of the col-lision repairers that they (the insurers) have


EXECUTIVE DIRECTORS MESSAGE

continued on page 46


VENDOR SPOTLIGHT

In todays ever-busy world of collisionrepair, help with wholesale parts can comefrom some very unexpected places.

As more and more New Jersey shops are discovering all thetime, BMW and MINI of Manhattan is the place for high-qualitycollision and mechanical parts. Boasting a combined $1.5 millioninventory, the enterprise is as active in assisting the tri-state area asthey are in servicing the Five Boroughs. Only minutes from theLincoln Tunnel and George Washington Bridge, BMW and MINIof Manhattan provides parts to an ever-growing Garden State clien-tele ranging from mom-and-pop mechanical shops to large corpo-rate collision centers. With five delivery vehicles on the road, theparts operation is able to make regular stops in a large geographi-cal area including most tri-state counties. In-stock orders are ful-filled by the next day, while overnight shipping services for smallerparts are also available.

The BMW and MINI of Manhattan parts team includes Whole-sale Parts Manager Armando Diaz, Assistant Wholesale Parts Man-ager Rey Ayala, Wholesale Parts Supervisor Louis Lozada, PartsManager Steve Zizic and six countermen. Together, these industryprofessionals strive to provide a positive experience to anyone whoplaces an order.

When shops call here, they feel like they are calling a friend,Diaz says. Were going to help them out. If a dealership doesntlook out for them, theyre not going to think twice about shoppingaround or going somewhere else.

BMW and MINI of Manhattans current success in the tri-statearea is the latest in a series of advancements enjoyed by the com-pany in recent years. BMW of Manhattan was completely reno-vated from 2011 to 2013 to complete a BMW initiative calledFuture Retail 2016. Opened in 1998, the newly-revamped flag-ship center at 57th St. and 11th Ave. features a new car department,CPO and Motorrad sales and parts/service departments in a220,000-square foot, six-floor facility that once housed the Ford

HELP FROM ABOVEBMW and MINI of Manhattan Earn Respect in the Garden State and Beyond

Above: The BMW and MINI of Manhattan parts team. L to R: Rey Ayala, Nicholas Persuad, Armando Diaz, Louis Lozada, Willy Salas, Edward Pashayan,Armando Herrera. Not pictured: Steve Zizic and Ray Jardine.


Motor Company building. Additionally, the space was up-graded to incorporate the new BMW Future Retail stan-dard, including a redesigned atrium that features a1,000-square-foot media wall (similar to the walls featuredin the London and Paris stores) that will be used as an ex-hibit space. The extensive renovation project also includedopening the first standalone MINI center on 55th St. and11th Ave., as well as a Certified Pre-Owned center at 56thStreet.

The only company-owned store in North America andone of only 35 globally, BMW of Manhattan operates threecenters in New York City along with a warehouse in NewJersey, totaling over 300,000 square feet of retail space.MINI of Manhattan opened at its 57th Street location in2002.

Looking ahead, Diaz is pleased to have the opportu-nity to establish a strong and loyal customer base in the tri-state area.

Were definitely here to stay, he says. Dont hesi-tate to call the department for anything you need.

For more information on BMW and MINI of Man-hattan, please call the Parts Hotline at (212) 246-7375 oremail Diaz at [email protected].

NJA

The parts counter at the newly-revamped 57th Street location

IN & AROUND AASP/NJ

The third time was thecharm on Tuesday, June10, as AASP/NJ hosted its3rd Annual association RaceNight at Pole Position Race-way of Jersey City. Nearly 50members and shops com-peted for bragging rights andthe chance to stand in thewinners circle, zippingaround the track in electricgo-karts reaching speeds upto 45 mph! As you can seefrom the smiling faces andwind-blown hair in the pho-tos, a great time was had byall! AASP/NJ is already hard atwork organizing next yearsevent. If youd like to be a partof our next Race Night, pleasecontact [email protected] the subject head RaceNight. For more informationon upcoming associationevents, please visitwww.aaspnj.org.

NJA

AASP/NJ congratulates this years winners:

1st Place: Chris Slack, Union Auto Wreckers

2nd Place: Ian Szoboszlay, CosmosOcean County Auto Wreckers

3rd Place: Mark Morrison, Pace Collision



IN & AROUND AASP/NJ

On May 20, Circle BMW of Eatontown opened its doors tothe New Jersey chapter of the BMW Car Club of America, host-ing the clubs monthly meeting as well as an informative eveningof product updates, industry information and more. Housed in theCircle BMW body shop, the event provided attendees with aclose-up look at some of the latest innovations from BMW.

BMW Automotive Chemical Sales Manager Joshua Wein-baum provided a recap of the wide variety of chemical productsavailable through the manufacturer, including a natural line ofwaxes, polishes and cleaners. Weinbaum was followed by BMWN.A. Accessory Specialist Jake Mooney, who detailed some newand exciting parts and accessories on the market today for BMWowners, as well as the vast line of BMW Performance items thatenhance the BMW experience.

Serving customers since 1981, Circle BMW is one of the tri-state areas leading luxury automotive dealerships. In addition tonew vehicles, Circle BMW offers ertified pre-owned cars thatmeet demanding standards for resale. Their award-winning ser-vice department is proud to employ the largest staff of BMW Mas-ter Technicians in New Jersey. The dealer is also one the largestBMW authorized stocking dealers of OEM parts and accessoriesin the region. For more information on Circle BMW, pleasevisit www.circlebmw.com. To learn more about BMW of NorthAmerica, please visit www.bmwusa.com.

Circle BMW & NJ BMW Car Club of AmericaJoin for Evening of Education

NJA

Above: Nearly 50 industry pros gathered at Circle BMW for the latest updates from BMW of North America. Below: BMWNorth America and Circle BMW representatives teamed up to

offer an unforgettable evening of information and fun.

NJSkillsUSA Gold MedalistHonored by AASP/NJ

2014 NJ SkillsUSA Gold Medalist Anthony Sibaja (center) is presented with a check from the AASP/NJ Lou Scoras MemorialScholarship Fund by Association Executive Director Charles Bryant.Also pictured, SCVT Auto Body instructor George Byrd.

2014 NJ SkillsUSA Gold medalist Anthony Sibaja (picturedcenter, Somerset County Vocational Technical Institute) was rec-ognized by AASP/NJ for his hard work on May 22, receiving acommemorative Lou Scoras Golf Outing Scholarship Fund check.Every year, AASP/NJ donates a portion of the proceeds from itsannual Lou Scoras Memorial Golf Outing to a scholarship inLous name to further the goals of an aspiring collision repairer.Pictured alongside Anthony are AASP/NJ Executive DirectorCharles Bryant (left) and SCVT Auto Body Instructor GeorgeByrd.

At press time, Anthony was set to represent the Garden Stateat the SkillsUSA National Leadership and Skills Conference inKansas City June 23-27. New Jersey Automotivewill provide up-dates and competition results in a future issue. AASP/NJ and NewJersey Automotive wish Anthony and his fellow competitors thebest of luck! NJA


American TruckHistorical SocietysMetro Jersey ChapterShow Highlights

Sunny skies, warm weather and thesmell of fresh paint can mean onlyone thing: ITS ANTIQUE TRUCK SHOW TIME!

June 8 saw the 24th Annual Metro Jersey Chap-ter truck show held on the grounds of the AutomaticSwitch Co. in Florham Park, NJ. Over 190 trucks rep-resenting all groups from the late 1910s all the way tomodern day transporters were present, as well as alarge number of restored pick-ups and old wreckersfrom the body shop side.

Based in Kansas City, MO, the American TruckHistorical Society has over 21,000 members withlocal chapters throughout the country. Next years na-tional convention, scheduled for May 28-30, 2015,will be held at the York Fairgrounds in York, PA. The25th Annual Metro Jersey Chapter show will takeplace June 7, 2015 at ASCO in Florham Park. Orga-nizers invite everyone to attend and see a little trans-portation history. If you own an old truck, bring it outand enjoy the fun! We have vendors at both events.

Photo coverage of this years event was providedby Gtuned Photography. Want more photos? Visit thealbum online at www.flickr.com/gtuned!


IN & AROUND AASP/NJ

Montanez OffersAirbag Testimony atRI Senate Hearing

Noted industry writer and educator Larry Montanez (P&LConsultants) appeared on June 5 before the Rhode IslandSenate Committee on the Judiciary as an expert witness onbehalf of the Auto Body Association of Rhode Island (ABARI) tooffer professional comments and opinions on current bills related tothe auto body industry.

One bill in particular, Senate Bill 2833, aims to prohibit insur-ance companies from requiring the use of used or remanufacturedairbags and/or suspension parts when vehicle repairs are made byan auto body shop. Andreas Heiss, a government affair managerfor LKQ Corporation, appeared before the Committee in oppositionto the bill, stating that shops that perform airbag removal are sub-ject to strong guidelines to ensure consumer safety.

There are very strict federal safety standards for removingthese airbags, he said. The shops that do that have to be certifiedin a certain way, and theyre trained to remove these airbags in acertain way.

Calling Montanez the only expert Ive heard tonight come be-fore us, Senator Stephen R. Archambault (D- District 22) laterasked the repairer if such standards actually existed.

Theres no federal standard on removing an airbag out of avehicle; Id like to see one if one exists, replied Montanez. Thereis a federal standard on what EDRs [event data recorders] actuallyhave to record which is black box-like technology...But theresno standard on taking an airbag in or out.

Senate Deputy Minority Leader Dawson Hodgson (R-District35) praised ABARI for offering Montanezs technical knowledgeand providing greater insight into the issues addressed at thehearing.

The technical expertise that ABARI brings to the table everyyear at these hearings, and the professionalism that you are repre-senting your industry with, is impressive, he said. You should bevery proud of that.

Complete video of the hearing (including Montanezs exten-sive testimony) is available for free streaming at http://ricaptv.discovervideo.com/embedviews/vod?c=all&w=640&h=480&s=1#.

NJA

State Assembly and Senate bills in-troduced last week seek to prohibitthe manufacture, sale, or installa-tion of counterfeit or nonopera-tional air bags in a motor vehicle.

On June 9, New Jersey Assembly-woman Annette Quijano introducedAssembly Bill 3364 which seeks to pro-hibit the manufacture, sale, or installa-tion of counterfeit or nonoperational airbags in a motor vehicle. As reported byCollisionWeek Online (www.collisionweek.com), the measure containslanguage similar to that found in legis-lation and laws introduced in severalother states over the last year. An iden-tical bill was also introduced in the NewJersey Senate on June 12 by SenatorPeter J. Barnes III.

Under the provisions of this bill, asintroduced, a person who manufac-tures, imports, installs, reinstalls, sells,or offers for sale any device with the in-tent that the device replace an air bagin any motor vehicle and knows or rea-sonably should know that the device isa counterfeit air bag, a nonfunctionalair bag, or does not meet certain federalsafety requirements is guilty of a fourthdegree crime.A fourth degree crime ispunishable by up to 18 months impris-onment, a fine of up to $10,000, or both.

The bill also includes language thatseeks to make it illegal to disable orcause the vehicles diagnostic system tomake it seem like a functioning airbagis installed. The bill would also make ita fourth degree crime for anyonewho sells, installs, or reinstalls inany motor vehicle a device that causes

the motor vehicles diagnostic system toinaccurately indicate that the vehicleis equipped with a functional air bagwhen a counterfeit air bag, a nonfunc-tional airbag, or no air bag has been in-stalled

The bill would also make each in-stance where a counterfeit or nonfunc-tioning airbag was installed count as aseparate violation.

Violations under the bill would alsobe treated as an unlawful practiceunder the consumer fraud act in thestate and would be punishable by apenalty of not more than $10,000 forthe first offense or $20,000 for furtheroffenses. Also, an injured party couldbe awarded triple damages and costsunder the bill language.

NEW JERSEY LATEST STATE TO INTRODUCE LEGISLATION TO BAN FAKE AIRBAGS

NJA

FEATURE

What are your preliminary sales projections for the2015 Ford F-150? What areas of the country will the vehicle be marketed to the most?

Im sorry, we dont share sales projections on our products. Sufficeto say, the F-150 is the top-selling vehicle in the US, which makesit popular everywhere. We are appreciative of our customers loy-alty and we work very hard, year in and year out, to design andmanufacture a truck that meets their expectations and needs. Webelieve the new 2015 Ford F-150 will delight them in its smart tech-nology, efficiency and hard-working design.

If a repairer has zero past experience with aluminumbut wants to take advantage of the opportunity to repair the Ford F-150, how much money should theyplan to invest in order to become compliant with theequipment/training specifications and be consideredFord-recognized?

Ford estimates it will cost $30,000 to $50,000 for a dealer or bodyshop to purchase new equipment needed to repair damage to alu-minum.

What kind of rivet guns should be used on the 2015 F-150?

Here is a full list of equipment (including the rivet gun) we recom-mend shops purchase for collision work on the new F-150:

What are the primary differences between aluminumrepair and steel repair, and how might those differ-ences affect a shops ROI and repair rates?

We cant project ROI for shops, but we can say that, in many cases,the new F-150 will actually be easier to repair. The new F-150s in-novative modular structure will significantly reduce time of repair,saving costs. Ford has used aluminum in body parts for years, suchas in the hood of the 1997 to 2014 F-150.

Apron tube: Can be repaired without dash removalFloorpan: Can be sectioned without requiring complete replacementRocker panel: Can be sectioned without requiring complete replacementsB-pillar:Does not require disturbing the roof to be repaired

How is Ford addressing concerns over volatility andcross contamination when aluminum dust enters asteel environment (and vice versa) during the repair ofthe 2015 F-150?

We are recommending that dealers and independent shops purchaseseparate tools for aluminum repair work and section-off an area onthe shop floor to be used only for aluminum collision repair work.This does not require a separate building our list of recommendedtools includes a separation / isolation system curtain that will pre-vent cross-contamination inside the shop.

How does the refinishing process on the 2015 F-150differ from a non-aluminum vehicle?

The process is the same as the current F-150 and other Ford vehi-cles that have used aluminum panels since 1997. In regards to ve-hicle paint refinishing for the new F-150, the repair facility shouldfollow all guidelines outlined in their respective technical infor-mation manuals/materials. All Ford Motor Company-approved re-finish paint systems have extensive information in their technicaltraining and support materials.

What are the parameters/limits for pulling on the FordF-150?

The vehicle may require anchoring and pulling operations tocorrect collision damage. This may be done with the usage of theFord-recommended solid cab mounts, to allow the pulling ofthe vehicles aluminum-intensive unibody along with any frame


THE 2015 FORD F-150: YOUR QUESTIONS ANSWEREDIn an effort to help the repair industry better prepare for the arrival of the 2015 Ford F-150, we reachedout to Elizabeth Weigandt, dealer communications manager at Ford, to get answers to a variety of questionsoffered to us by readers and industry representatives. We present this question-and-answer session as aguide to Fords current position on a number of topics regarding this technologically advanced vehicle.


damage. With the damaged areas pulled back to proper dimensionalcondition, the affected areas are inspected for cracks, damaged fas-teners and any other concerns, then replacement of any damagedcomponents may be done per Ford guidelines and procedures.

What are some misconceptions regarding the 2015Ford F-150 that you have encountered in the collisionrepair industry that you would like to address?

We are often asked whether Ford dealers or independent body shopshave to become certified in aluminum repair to order Ford Genuinereplacement parts or fix the new F-150. Our Ford F-150 CollisionRepair Program is not focused on certification; it isfocused on training and helping dealers and indepen-dents identify and install the right equipment sothey can be ready to repair aluminum in theF-150. Like our other vehicles, Ford dealerservice staff will be provided with me-chanical repair training through

Fords training classes. I-CAR will also provide collision and bodyrepair training developed in conjunction with Ford for both dealer-ship staff and independent body shops. Also, Ford will not restrictwhich dealers or body shops can purchase Ford Genuine OEM col-lision repair parts to repair the all-new F-150. We recommend deal-ers and independent shops pursue training and purchase the properequipment necessary to become aluminum repair-capable.

NJA

Ford will not restrict which dealers or body shops can purchase Ford Genuine OEM collisionrepair parts to repair the all-new F-150.

I actually started out in aeronautics. I studied for my A&P license (to repair and perform maintenance on aircraft)at Teterboro School of Aeronautics, and when I graduated, there were no job openings. Meanwhile, I had beendoing body work on the side to help put myself through school, and in realizing how lucrative the work could be,thought that it might be a good career to get into. I ended up renting a shop for a while before buying a space inPoint Pleasant, and we officially opened as Ocean Bay Auto Body in 1979.

What drew you to Point Pleasant as a shop location?Back then, this area was very quiet. It was nowhere near as built up as it is today. But its funny; around the time I started looking for a business,I was going through Point Pleasant - this was before the four-lane highway and everything, so way back - and I saw a WaWa being built. That gotme. I thought to myself, They must know something about this spot. Maybe theyre onto something. And I started looking around here. Soonafter, they built the big bridge and highway, and then it started getting much more populated. Beaver Dam Road, where our shop is located, usedto be the kind of street that a dog could safely fall asleep in the middle of. Today, its a main cut-through road in the center of town. It was a goodchoice. And all dogs are now wide awake and respectful regarding the dramatically increased volume of traffic.

What was the most valuable thing you learned as someone who came up in the industry from doing repairs as a side gig toowning a shop?Theres a definite value in starting from the bottom and doing it all yourself. In the beginning, when I first bought the shop, I would put in a fullday at the shop I was renting, be there until 5-5:30, then head over to the new place and work on fixing up the building until late in the evening.That went on until the place was done. In those days, you couldnt just run to the bank and get a loan to start a business. And failure was not anoption. I put in the time and muscle - and got the help of some good friends, like one buddy who was a union mason - to get the business off theground.

Did your history in aeronautics come in handy in terms of the auto collision repair business?I think Im able to approach things with a much more open mind as a result of having been around that industry first. The changes in vehicle tech-nology are amazing, but nothing thats come down the pike has really thrown me for a loop because in many cases, when something new comesaround in collision repair, its been that way on the aircraft end for years. Aluminum repair is a perfect example. Its new to us [collision repairers],but planes have had aluminum rivets and components since 1972 when I was in school.

How did you get your start in therepair industry?

MEET THE BOARD

TED RAINEROcean Bay Auto Body


Having said that, what do you think is going to be the next big thing in autorepair thats already prevalent in aeronautics?Automatic operation, no question. Cars that can operate unmanned. Planes have had auto-pilot for over 70 years. Like aircraft, vehicles will be talking to each other on the roads -between the GPS and the sophisticated on-board systems that are in so many cars eventoday, you can see it going in that direction already. Well see it in our lifetime for sure.There are already self-parking cars out there, and self-driving cars cant be far off. I wouldthink car-to-road-to-satellite-to-car communication would probably become a popularand safe thing in the next decade along with more cars self diagnosis to improve mainte-nance and safety. Some states already have self diagnosing inspections, by-passing yourannual visit to your local inspection stations altogether.

Do you see any similarities between the two industries?I still talk to a bunch of the guys I graduated from Teterboro with. One works for Pfizer, one does maintenance on Donald Trumps helicopters - whose chop-pers I actually did paint jobs on, not to mention painting Sylvester Stallones robot in Rocky IV, but thats another story - and in talking to them, it seems thattheyre much more specialized than we are. It would be like, in your shop, having one guy whose entire job is to work on Ford pick-up trucks, and nothingelse. Thats his entire job. Thats how it is for them, and thats just general aviation. In the commercial sector, its even more specialized. In the auto collisionrepair industry, we are much more diversified; we have to be. There arent enough of us to go around!

Howd you get involved in AASP/NJ?My father actually found out about it, which back then was the New Jersey Auto Body Association. When I told him out of nowhere that I was dumping myA&P license career to go into body work, I guess he figured I needed all the help I could get! [chuckles] So I joined around the time I first started out. I hungout with guys like Steve Vrable from Economy Auto, Charlie and Jimmy Bryant - who were just starting out in the industry themselves, at the time - and theguys from Joes Garage. It always seemed like the right thing to do, and I still feel that way today.

I remember hearing the guys complaining at the time and thinking to myself, Wow, you guys sure complain a lot. Whats the problem? Were all making somemoney! But I was a kid. Over the years, I of course learned that the industry is about so much more than that. And being part of an association for all theseyears, you may not always get the answers, but you get to share your experiences with people who share a lot of the same successes and struggles as you.Sometimes, just sharing those ideas will bring you the answers you need.

Is that why you joined the AASP/NJ Board of Directors?Absolutely. To me, it feels like a win-win. If Im going to make a difference in this industry, heres where Im going to do it. And selfishly, it helps tremendouslyto bounce ideas off the other guys and hear their stories. It gives me a boost and inspires me to keep going. I have great respect for every one of them.

So outside of the shop, what do you like to do for fun?I like to keep busy. I love to ski, and just last year became a Level One instructor at Wyndham Mountain. I have a beautiful 20-foot Sea Ray that I fixed up, sowe take that out on the water during the summers. My wife and I belong to a wine club, where we make our own wine (which I put the Ocean Bay label onand give to family, friends and certain customers as a little gift here and there). We also have a house in the mountains of New York that I head up to everyweekend. And you can probably guess that I love to fly, too. There is a picture of me in a hammock somewhere, proving that I do kick back and relaxit justdoesnt happen often. [laughs] For me, the relaxation comes in moving yourself, being productiveliving. Just breathing in the fresh air and living life is ex-hilarating for me.

If you could offer one piece of advice to someone like yourself all those years ago, just starting out, what would you say?First, I would tell them that to stay relevant and successful, you have to keep reinventing yourself. The status quo will not bring you success, especially in thisindustry. Secondly, and this may seem like a no-brainer, keep a clean office that people will want to spend time in, and be courteous. Its a simple bit of chem-istry thats worked so well for us. Its not hard to do. We bring our Pomeranian to the shop, and shes like our mascot. She cheers people up when theyve beenthrough a collision. I also keep an umbrella in the back of the office, for example, and this past week when it was pouring almost every day, I made it a pointto go outside and greet everyone who showed up at the shop, and walk them in under the umbrella. When they were ready to leave, we walked them out underthe umbrella. It didnt put me out to do that, and it helps everyone. Just be good to people. Give them mint-on-the-pillow service and make them feel good.Thats what its all about.

NJA


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or visit www.amatoagency.com4900 Rt. 33 - Ste. 103, Neptune, NJ 07753Phone: 732-530-6740 Fax: 732-530-6727


2014COVER STORY

ere at New Jersey Automotive, we try hard every month to give our readers a sense of whats happening in the industry on multiple levels, from sweeping national features and news coverage to

profiles and updates on the shops and repairers literally in your backyard. Time and time again, ourreaders have told us that what they enjoy the most about our publication is the fact that theycan learn about the guy down the street and share in his or her experiences. And whatbetter way to provide a close-up look at those personal experiences and learn about arearepairers than by talking to the shops themselves?

We asked you, our readers, to let us into your shop for a few minutes and pull the curtainback on your daily life in this industry, from the cold, hard statistics about the shop itself toyour opinions, goals, concerns and much more. You responded in force, giving us valuable in-formation on your particular facility as well as the industry around you. Theres nothing better than interactingwith our readers, and we at NJA genuinely thank you for your participation. We realize how busy you areevery day, and greatly appreciate you taking the time to not only tell us about your shop, but to ultimatelyeducate the New Jersey repair industry as a whole.

How long have you been in business?

Less than a year: 4%1-5 years: 7%6-10 years: 4%11-20 years: 11%More than 20 years: 74%

So what did that guy down the street have tosay, anyway? Read on

H


SURVEYEnter the 2014 NJA Industry SURVEY.

What describes your primary business?

Collision Repair: 68%Collision & Mechanical Repair: 20%Mechanical Repair: 8%Other: 4%

This years survey shows an interesting trend thats becoming more and more common through-out the industry: Diversification into both collision and mechanical repair. Were busy on thecollision end, but thought it would be a great investment to be able to do mechanical repairsas well, says one southern NJ shop owner. We were fortunate enough to have the funds toimplement it a few years ago, and now instead of having to rely on outsourcing the morecommon mechanical jobs to another shop, we keep the job in-house and streamline theprocess. Others are more comfortable going with what they know. Weve been in businessfor 37 years as a body shop, explains a Jersey City facility, and we will always be a bodyshop. I feel theres a certain amount of overlap between both collision and mechanical guys,but our specialty is body work. I have a good relationship with a mechanical shop, and wesend each other work. I see no reason to mess with that.

SURVEY DEMOGRAPHICS

North NJ:36%

Central NJ:23%

South NJ:41%

While the majority of those surveyed indicated that their customers did not demonstratean increase or decrease in their knowledge about what happens to their vehicle once theyhand the keys over, some respondents shed an optimistic light on consumer attitudes. ALivingston repairer notes, I think its become easier for them to educate themselves, andmany do. We try to take them through every step of the process, but theyre not always inthe mood to learn something when theyre in the shop.Most just want to know the dollars and cents of it.But today, between YouTube and just the hugeamount of information available, they can justpop online and teach themselves. Im en-couraged to hear that many of our cus-tomers are doing just that.

Still, other repairers - like this Tren-ton-based shop pro - explain to us thatmost customers prefer to leave repairsin the hands of the experts: Some ofour customers dont want to knowwhat goes into fixing their car, and oth-ers dont want to be bothered becausethey have a false sense that the insur-ance company is going to act in theirbest interest. Its rare that they have anyknowledge of the different types of partsthat can be used or how one part can be lesssafe than another or diminish the value of theirvehicle if utilized in the repair. We try to educatethem from the start of the job, but sometimes they justdont want to know.

I think that, generally, consumers see collision repair as a commod-ity, and if their insurer vets a shop out to them by saying that particularplace will do a good job, theyll just blindly go wherever, a Hightstown shoptells us. Theyre more concerned about the convenience and assume allshops are the same, quality-wise.


Collision shops: Are you a DRP?

No 8%

92%Yes

Mechanical shops: Are you a PIF?

66%No

Yes 34%

Whattraining have

you and/or youremployees receivedover the past year?

The most popular responses were:

I-CAR

AASP/NJ training

Paint manufacturerseminars

ASE

Over the past year, do you feel customers have become more or less educated about the repair process?

More: 26%Less: 19%About the same: 55%

RATING %10 4%9 4%8 19%7 26%6 15%5 13%4 7%3 7%1 5%

How many employeesdo you have, includingyourself?

1-5: 30%6-10: 44%11-20: 15%21 or more: 11%

On a scale of 1-10, how would you rate your current state of business?

As in past years, the responses to thisquestion illustrate the wide range of opin-ions and experiences of a repair profes-sional in todays industry. Answersranged from the brief and colorful(10: Busy & profitable. Rocking androlling!) to the detailed and somber(3: Were busy, but not profitable.This has been my worst year in 22years of business. Were being stran-gled from all ends, between thegreedy insurers, the unlicensed shoptwo streets over taking my business, thelow Labor Rate and the lack of new techscoming in. Its a constant fight just to break evenat the end of the week.)

Many of our respondents pointed to insurer involvement as having adirect impact on their business, not to mention the industry as a whole.Were at the point where its a daily struggle with the insurers to get thejobs done, states one frustrated Wall shop owner. They go at it with usover parts - OEM versus used suspension parts, for example - andrates. I spend a good part of my day going back and forth with them toget paid properly when I should be using that time to talk to customersand repair the cars. Enough with the nickel and diming; let me put safevehicles back on the road. Further north, a Franklin shop owner agrees:I feel like were going nowhere in this industry. Insurance companieswant more and more from us, but are paying less. How can we survivelike that?

8

76

5

4

31 9 10

10Busy & profitable. ROCKING AND ROLLING!

3Were busy, but notprofitable. This has been

my worst year in 22years of business.

Have you ever been a victim of steering?Yes: 89% No: 11%

A whopping 89 percent of those surveyed expressed that they had atone point or another had work steered away from them by an insurer toone of their DRP facilities. Same old story, says one Bergen County repairer.The insurer told [my customer] they wouldnt guarantee my work, they saidIm not on their list of shops and they told the customer that they could beginwork on the car that same day if they took the vehicle to their facility.

Have I ever been a victim of steering? It almost happened to me acouple times TODAY! exclaims another repairer, this time from the Camdenarea. They try it all the time. Ultimately, its on me. I need to educate all mycustomers on exactly what the insurers are trying to pull. So far, its workingon the ones I talk to, but who knows how many potential jobs Im losing be-cause the insurer gets to the customer first? Im not a DRP for anyone and Idont knock the ones who are, but my problem is with the insurance com-pany throwing them work when the customer came to me fair and square.

Ive been labeled as everything from difficult to a problem to a shopwho wont act in the customers best interest, reveals a shop owner inEdgewater. All because I wont use used parts or agree to the lousy ratesthey try to pass off on us. This is verbatim from some of my customers, whoended up coming to me in spite of the scare tactics the insurance companythrew at them.

Illegal steering goes on each and every day, maintains one Hackensackbusiness owner. Insurers are trained to send our customers to DRP facilitiesso that they can control the process, get their parts discount and control theindustry. We train our customers one at a time as to their rights per the NJconsumer affairs laws. Most drivers want the freedom to pick their own shop,and we as an industry should be telling every single person who comes toour shops that they have control over who repairs their car.

As is true with every survey we run, this questionalways brings in the most detailed and diverse num-ber of answers. While it is true that concerns like in-surer mandates, consolidation, Labor Rate woes andchanges in technology (all indicated in this years re-sponses) weigh heavily on the minds of todays re-pairers, our respondents cited numerous hot-buttonissues that are on their minds and impacting the waythey do business.

The insurance companies increasing control,no question, replies an owner/operator from LittleEgg Harbor. They prey on customers lack of knowl-edge and the shops bowing down to whatever crazyterms they put out there. Low Labor Rates, inferiorparts, inexperienced appraisers dictating the wholeprocess and more. And so many of us are just rollingover and letting it happen. It makes it so difficult forthe shops trying to do the right thing. We have tofight on almost every job to do the repair the way weknow is right and safe for the customer. Im surewere in the minority.PartsTrader is going to

kill this industry, notes aWoodbridge shop. Its already diffi-cult to turn a profit in this day and age, between thetaxes, the overhead and just the cost of doing busi-ness in New Jersey. Now you have this program de-signed for our convenience that is in actuality goingafter one of the few profitable areas we have left,while also throwing a huge administrative burden onthe shops who are using it.

While many mentioned insurer-related issues ashaving the most influence over the industry in thenear future, several others pointed to incoming re-pairers - or the lack thereof. Ive always been intoeducation, a Bay Head shop tells us, to keep ourindustry as an option to the students out there. But Idont see them coming in the way they used to. Theschools are pushing for all their kids to go to college,which is great in theory; in reality, college isnt for ev-eryone. Some students are great with their hands, orhave an eye for design that will make them a terrificpainter. Theyre not really given that option to go intoa trade, and as a result have no idea how many op-portunities are available to them in this industry. All Iknow is we have to get some fresh blood into thisworkforce soon.

A Morristown collision repairer has a much moreinternalized opinion of what will be responsible for thesuccess or downfall of this industry: Its us, he says

simply. We can either be our industrys greatest de-fenders, or our own worst enemy. Unfortunately, itslike theres always only a handful of people reallyfighting for the change we need. Im talking aboutgoing to Trenton to talk to regulators, standing up tothe insurance companies trying to beat you down,reporting the unlicensed shop taking your jobs,putting in time either through association work or atthe vo-tech schoolsThere are too many peoplecomplaining that this industry is going down thetubes and not enough people working to bring it towhere it should be. This is the greatest industry in theworld to work in - its up to us to keep it that way.

At the end of the day, the information containedwithin the preceding pages is not only informativeand eye-opening, but indicative of an industry full ofcommitted, experienced professionals who are notafraid to tell us how they feel. Whether the opinionsexpressed by this years respondents are critical orhopeful, the fact is that each one of them took thetime out of their busy day to offer us a glimpse intowhat they have to deal with on a daily basis. If youreout there feeling like you may be the only one whostruggles with a certain issue or feels strongly aboutthe need for change in a particular area, the results ofthis survey should hopefully demonstrate that you arenot alone, and that there are a number of like-mindedindividuals out there who are willing, ready and ableto fight the same fight as you. And maybe thats thebest piece of information of all to take away from thissurvey.

WHAT DO YOU THINK IS THEMOST PRESSING

ISSUEAFFECTING SHOPS TODAY?

Are you a PartsTrader facility?

The implementation of insurer-mandated partsprocurement systems like State Farms Part-sTrader platform is by far the most controversialissue to hit New Jersey (as well as the rest of thecountry) in recent memory. While 22 percent of ourrespondents have indicated they are now usingPartsTrader in their shop, the overwhelmingattitude of those surveyed indicates that StateFarm has a lot of work to do in convincing theindustry of the programs merits.

78%No

Yes 22%


Approximatelyhow much doyou spend on

parts annually?$100,000 or less: 13%$101K - $500K: 56%

$501K - $1 million: 17%$1 million or more: 14%

Whats the approximate ratioof OEM to aftermarket partsyou use?100% OEM: 7%75 / 25: 56%50 / 50: 22%25 / 75: 11%Less than 25% OEM: 4%

The OEM-versus-aftermarket debate is still going strong among shopsin New Jersey. All the businesses surveyed by NJA had their own opinionsconcerning when and why they use aftermarket parts, if at all. The onlyone who sees any savings in using aftermarket parts is the insurer, says oneEnglewood shop owner. Theyre cheaper than the original automakersparts for a reason. The fit isnt there, thequality isnt there and personally, Im notconvinced that theyre safe. Theyrenot worth the trouble and theworry that a part will fail and in-jure someone down the line.

We only use aftermarketparts when the customer hasrequested it, and they are al-ready in an older vehicle thatsin medium to poor condition,notes one Neptune owner. If theowner is paying out of pocket andlooking to cut costs, well explore allthe options available to them.

Which automakers parts do you find easiest to get?


ChryslerFordGMToyotaHonda

Its a no-win, says one Wayne repair pro.State Farm promoted it as a time and moneysaver for the industry, but its neither. Its actuallycosting shops and the dealerships more moneywhen you figure in the time and expense associ-ated with all those extra steps in parts purchas-ing. This industry rep isnt alone in his opinion.This may be the downfall of our industry, notesa Newton-based shop owner. [PartsTrader] isan objective to alter list pricing on parts, which isnot only detrimental to the auto body shops, butto the dealerships selling those parts as well.One Westfield shop puts his thoughts out theremuch more succinctly: Bad idea.

Unwanted and UNNECESSARY.

Which automakers parts do you find most difficult to get?


KiaPorscheSaabSuzukiVolvo

NJA


FEATURE by Joel Gausten

When the State of New Jersey issued the no-tice on the left nearly seven years ago, the inten-tion was to establish once and for all that existingmethods or tools that auto insurers used to calcu-late P&M costs were outdated or incorrect. As asolution to this problem, the DOBI bulletin urgesinsurers to use current guides (available throughvarious third-party databases) to properly arriveat more accurate figures. Despite the positive in-tentions behind the bulletin, the past several yearshave seen considerable inconsistencies in insur-ers willingness to adhere to the DOBIs positionand accept and pay charges given to them bybody shops based on a paint and materials costaccounting system. Recently, New Jersey Auto-motive has experienced a spike in the number ofcomplaints we have received from shops regard-ing paint and materials reimbursement, indicat-ing that a variety of carriers are failing to followNew Jersey guidelines.

Some insurers have come out and saidtheyll take the calculator into consideration, butare only paying up to certain dollar amounts, of-fers one AASP/NJ member. Theyre constantlychanging their positions. I thought it was clearthat the formulas theyve been using have beenincorrect and not keeping up with the times.

Insurers are expected to provide repair allowancesthat are sufficient to restore damaged vehicles to theirpre-accident condition. The use of available paint andmaterials cost calculator manuals and programs todetermine allowances is encouraged to assist insurers inachieving consistent compliance. The Department ismonitoring insurer claim practices to confirm thatallowances for all aspects of the repair process aresufficient.

- New Jersey Department of Banking andInsurance Bulletin , October 2007

THE RIGHTTO REVENUE:

P&M PaymentsSpark Concern


According to reports received by New Jersey Automotive, GEICOhas apparently changed its philosophy on paint and materials re-imbursement in recent months, electing to negotiate the calcula-tor instead of accepting the shops documentation. Additionally,Progressive appears to be operating in a similar fashion. This con-tinues to be a source of frustration for shops that work diligently toprovide appropriate and thorough documentation of their expensesto receive proper payment.

Its ironic that you can get an additional $85 on a bumper fromone insurance company, and certain companies come back with $7for the same job, says one North Jersey-based member.

Illustrating the need for the use and acceptance of a paint andmaterials invoicing system, one reader who uses the PMCLogicsystem claims to be able to identify at least $300 to $500 in addi-tional money per job that he can show to carriers. PMCLogic byComputerLogic is a paint and materials management system thatwill allow shops to track all of the paint and materials used to re-pair a vehicle and generate a large number of management, inven-tory control, purchasing and job costing reports. In addition, it canbe used to generate a predictive estimate of what the final cost ofP&M will be for each unique vehicle, and then produce a final in-voice for what was actually used.

Were not in the business of setting a price, but we have in-formation that comes directly from all the paint manufactures andmajor suppliers, offers ComputerLogic President Rick Palmer.We take their database that they send to us, validate the informa-tion to make sure its correct and then put that out for the customer.

One New Jersey Automotive reader opined that the industrywould have greater success in using paint and materials programsif more facilities urged insurers to accept them.

Its frustrating because shops out there are not using or push-ing it, he says. Now, insurers can say behind the scenes, Youhave 15 shops; three of them are using it, and the other 12 are not.Lets see what we can get away with.

After decades in the industry, PaintEx founder Bob Klemknows this reality all too well. Although many new users of PaintEx

and other cost accounting products storm out of the gate with greatenthusiasm and often get paid as a result Klem acknowledgesthat many shops start to feel battle fatigue once theyre out on thefront lines of the P&M debate.

What happens is that most of these guys get tired of even ar-guing, because there are new adjusters coming through their doorevery day, he says. Those adjusters are only speaking in verbalterms of what theyve been taught, which is to cheat because thatshow they have been trained. The insurance appraiser doesnt knowand now claims that other shops dont charge that amount, and hefeels like he is overpaying the shop. A lot of them dont even knowwhat theye saying in terms of strategy. They just say, We dontallow that, or This is our limit on that. The good shops that knowtheir numbers cant be the only ones educating the appraisers. Itsexhausting work.

Fortunately, many of the PaintEx users nationwide who havestuck with enforcing the system have experienced tremendousprogress. According to Klem, top PaintEx users with $1 million inannual sales are getting paid $70,000 in additional P&M revenue,while smaller shops generating $500,000 per year are walking awaywith $35,000. This is achieved by shops telling insurers what theyare entitled to, with a little education and understanding of the sys-tems. And with the upcoming release of an updated PaintEx system,shops will have more opportunities to move forward.

That is, of course, if people use it. Although it will be difficultto change the industry overnight, using paint invoicing systems likePaintEx and PMCLogic is an undeniable step in the right direction.

Lets face the facts, one reader says. An insurance appraiserhas a financial obligation to write as little as possible. This only in-creases their bonus while climbing the corporate ladder. Shops havelaid down over and over. If the information is out for all to see anduse, why arent shops using it?

As Palmer says, If [shops] will start presenting invoices forwhat theyre actually using at a reasonable price, they will getpaid.

NJA


PRESIDENTS MESSAGEcontinued from page 10

working as a collision repairer, Ive neverseen industry members so fired up and soready for change. These are the people whowill be the game changers for all of us.

If this is the first youre hearing aboutthe legal actions mentioned above, you needto start paying attention to the industryaround you. Take the time to read NewJersey Automotive and magazines like it

cover to cover when they arrive at yourdoorstep. Check out the trade websites. Andcome to a meeting! You never know whatinformation youre missing out on at anAASP/NJ event unless youre there. Often-times, the ideas and thoughts exchanged be-fore and after a meeting are just as valuableas the educational content presented duringit. Long story short, make sure you are

aware of whats going on in your industry.Believe me when I say that things are aboutto get really interesting.

NJA

the right to control the cost of repairs with-out accepting responsibility for their ac-tions. Over the years, we just began toaccept this as fact.

Well, we have reached the point wherethe greed of the insurance industry has putthe survival of the collision industry injeopardy. The intricacies of the vehicles onthe roads today have ensured that the colli-sion industry can no longer repair damagedvehicles in the manner - and at the cost -that insurers would like. The collision in-dustry is at the point where they have to ei-ther fight back or go out of business. Theshops that have become aware of the infor-mation disclosed in this article and have de-cided to challenge insurers in a court of laware winning. Prominent law firms havefinally realized that there is money to bemade in taking on the issues the collisionindustry has been complaining about foryears. Finally, one law firm has decided tocall it what it is: Criminal!

It has been a long time coming, butnow is the time for collision shops thatrefuse to compromise on repair quality orsafe repairs just because an insurer said soto take action. If you have had enough ofbeing forced to repair damaged vehicles ina manner that you feel is unsafe andimproper, stay tuned. If anyone wouldlike to discuss the issues raised in thisarticle please feel free to contact me at(732) 922-8909 or via email at [email protected].

NJA

EXECUTIVE DIRECTORS MESSAGEcontinued from page 14

NO BRAKES by Ron Ananian

Til next time, Im Ron Ananian, The Car Doctor, reminding you thatGood Mechanics Arent Expensive; Theyre Priceless.

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

Do you know whats under the hood of your car? Ifyoure reading this, then Id guess your answer is prob-ably. If youre reading this magazine, chances are thatyou have most likely been in the business at somepoint in time. Or maybe youre a car person. But whatabout the man/woman on the street who only drivesa car? Did you ever wonder about their perceptions orconcerns?

Under the Hood

We were out to dinner recently with another couple; as usual,the conversation eventually turned to automobiles and radio shows,namely, where does the future lie for both? I really had no clue oranswer for that first one. The future of the automobile industry de-pends on where the country, economy, desires and choices of thepeople take it. Certainly, the days of the industry as we know it arenumbered; 20 years from now, another generation will accept what-ever it morphs into and consider that the new normal.

And what about radio? The radio show that Ive done for thesepast 22 years and counting continues to roll, but who listens? Atdinner, I explained,I think it changes with the industry, but I alsothink less people today are as curious about whats under the hood.They get in, start it and away they go.

On a whim, I turned to the young lady who was our waitressand asked her how old she was, what kind of car she drove, who shetook it to for service and whether she listened to AM or FM radio.She replied that she was 25 years old, drove a Chevrolet, does notget the car serviced by any one person or facility in particular anddoesnt listen to AM/FM radio. (For the record, thats about what Ihad expected.)

Why isnt there a mechanic in the picture? I asked. She said,Because I never understand what theyre talking about, so I try todo a minimal amount of repairs and maintenance and just hope forthe best. I have since repeated this series of questions over half adozen times, with pretty similar results. So what?

Heres What!Auto repair - whether mechanical, collision or some combina-

tion of both - is really about teaching people what they need to doto be safe while operating an automobile. With each mini interviewI conducted, I took the opportunity to mention and inquire aboutAM or FM radio. Most young people today listen to custom musicplaylists on their phone, an iPod or some similar smart device.FM radio is too oldand AM radio? They either dont know it ex-ists or prefer not to listen to old people yelling about politics.How about a radio show that educated you about your car? Onethat would empower you so you wouldnt have that fear of goinginto the mechanic for repairs or maintenance? A show that was es-sentially the voice of a father talking to his son or daughter aboutthe dos and donts of owning a car? Each respondent assured meof his or her interest in this. Without getting too much into detail,each one was given information on where and how they could lis-ten to such a show via podcasts, streaming, live radio, etc. I learneda great deal from each conversation. The most important takeaway?Young drivers want to know more about their car; theyre just afraidto ask or dont know who to talk to.

The Bottom LineWe have an obligation to educate the up-and-coming genera-

tion of drivers, so is it any wonder that, when their perceptionof auto repair is the onslaught of cheap oil changes, discountmaintenance and bargain brake repair, they become confused or


and

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

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

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frustrated when asked to properly repair ormaintain their vehicle? The average con-sumer has great difficulty in identifyingunder-hood components, much less their re-lationship and specific role in an automobile.The human condition prohibits most peoplefrom looking at their fear and forces theminto denial. That guy charging more must beripping people off; lets stay away from him.In actuality, he is probably following the fac-tory guidelines and specifications, and re-pairing the vehicle as the manufacturer asksand requires.

Denial is more than just a river in Egypt;it is an indication of education needed for theconsumer and something we ALL need to do,from the front office to the repair bays to thebroadcast booth. BYE FOR NOW - SEE YOUON THE RADIO!

NJA


(973) 714-7550955 Paulison Ave.Clifton, NJ 07011

[email protected]

www.kleanframe.com

Unlike other wash systems that focus onthe top and sides of the vehicle, KleanFrame concentrates on the UNDERSIDEonly. Youll be amazed at how kleanyour frame will be!

A Klean Frame model for every use!HR21 (designed for medium duty trucks, full size vans, pick-ups, SUVs and more)HR30 (designed for dump trucks, tractor trailers, construction vehicles, fire trucks, etc.)LP21 (designed for cars, small SUVs, vintage autos, boat trailers, etc.)LP30 (designed for large equipment including buses, motorhomes and car trailers)

What is Klean Frame?Klean Frame is a machine that, when attachedto a pressure washer, will spray, rinse and cleanthe underside of vehicles. This allows for thequick removal of corrosive salts, chlorides anddebris, thereby extending the life of the vehicle.


At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increaseyour profitability. Original MINI parts assure an absoluteperfect fit and function.

Princeton MINI3466 US Highway 1

Princeton, NJ 08540

609-452-9400

fax: 609-945-1010

PRINCETONMINI.COM

Prestige MINI925 Route 17 South

Ramsey, NJ 07446

201-760-5080

toll free: 888-30-PARTS

fax: 201-760-5072

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MINI of Morristown170 Madison Ave.

Morristown, NJ 07960

973-451-0009 x114

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MINI of Mt. Laurel1311 Rt. 73

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For Original MINI parts, contact any of these authorized MINI dealers.

OVER 8,000 PARTS THAT ALLMEET ORIGINAL MINISPECS...THE BUILDING BLOCKSOF MOTORING MATTER.


ARANJ 2014 Officers

President 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 [email protected]

ARANJThe Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs

Your safety manual should have an Accident Response, Investigationand Reporting section.

Despite careful and proper planning, accidents and injuries can occur. Re-member, the quality of treatment right after an injury often impacts the severityof the injury.

Set a policy where all accidents and near misses are reported and investi-gated by management. Then try to identify the cause of the accident or incident.Eliminating the hazard will help you understand and better control your work-place injuries. In addition, you will be better prepared to comply with OSHA andother regulatory reporting requirements.

Please call me with any questions you may have on your current insuranceprogram.

Mario DeFilippis, AAI, Vice President(800) 221-0003 (ext. 1320) (908) 513-8588

[email protected]

ARANJ 2014Board ofDirectors

Mike RonayneTilghmans Auto Parts

[email protected]

Marvin LeadbeaterBamber Lake Auto609-639-6500

[email protected]

Mike YeagerEL & M Auto609-561-2266

[email protected]

Rodney KrawczykAce Auto Wreckers

[email protected]

Mike CaputoLacey Used Auto Parts, Inc.

[email protected]


LAST LOOK

Continental Auto Parts (CAP) is excited to announce thatthe company has achieved a milestone by becoming an NSF In-ternational certified distributor.

The NSF International Automotive Collision Parts Distrib-utor Certification Program closes the supply chain gap betweenparts manufacturers and repair shops by addressing the key roledistributors play in providing quality parts. The program was de-veloped with input from collision repair shops, collision partsdistributors and insurers, and is publicly supported by a leadingbody shop trade association. Among many protocols, some keyrequirements include automotive parts traceability and recall pro-cesses.

The program provides collision repairers, consumers and in-surers confidence that those distributors gaining NSF certifica-tion meet the highest criteria for system management to addresspart traceability, complaint tracking and quality issues for bothcertified and non-certified parts. NSF certified distributors havethe systems in place to quickly and efficiently resolve issues asthey arise.

We are very pleased with this achievement, said ThomasLee, president of CAP. This validates a lot of hard work bymany people in our organization that share the same vision, tooffer quality products and excellent service. We dont viewthis as just a piece of paper to frame and hang on the wall for allto see, adds Michael Koren, operations manager at CAP. Thisis aimed at making us a more efficient, stronger and competitivecompany that can remain competitive on a daily basis for a longtime.

For more information on the Automotive Collision PartsDistributor Certification Program, please go to www.nsf.org.

CAP is a supplier of high quality (CAPA, NSF) replacementaftermarket auto body parts, reconditioned OEM plasticbumpers, and remanufactured OEM alloy wheels. There areseven CAP service centers throughout the northeast. Their hub inNewark is a 170,000+ square-foot warehouse which also in-cludes a bumper recycling facility. They are also located in MtLaurel, NJ (South Jersey, Metro Philly and DE); Brooklyn, NY;Newburgh, NY (Mid Hudson Valley), Little Falls, NY (Albany,Syracuse; Batavia, NY (Buffalo, Rochester); and Carlisle, PA(Lancaster and Lebanon Valley). For more information, go towww.continentalparts.com or call (888) 368-7227.

SATAminijet4400 B HVLP & RP* Provides Optimal Coverage, EnhancedDurabilityThe SATAminijet 4400 B is the perfect compact spray gun if you are looking for superb finishes on areas of difficult access or on small panels. The special SR nozzles are perfectly suitable for spot repairs on vehicles. This spray gun allows the application of all modern paint systems including waterborne paints

ErgonomicsWith its new, ergonomically shaped handle, the spray

gun is perfectly balanced. All controls can be easily operated even when wearing gloves. The spray gun is sturdy and long-lasting.

Enhanced durabilityThe spray gun body is equipped with a corrosion-resistant

chrome surface. The sturdy air cap is made of chrome-plated brass;the paint needle and fluid tip are made of tempered stainless steel.The trigger protects the paint needle from overspray during painting,thus prolonging the lifetime of the paint needle sealing. The air pis-ton rod has been especially reinforced.

Large QCC cup connectionThe SATAminijet 4400 B allows the use of all three RPS cup

sizes with no adapter necessary. The large cup connection makesthe cleaning of the material passages extremely easy.

PerformanceThe SATAminijet 4400 B has a quiet, soft fan, with high work-

ing speed and fine atomization. The fan is larger than former SA-TAminijet models, and the SR nozzle sets provide a wide, evenlyshaped fan perfect for spot repairs, blends and small panels.

*RP version pending SCAQMD and EPA approval.

Dan-Am Company is the exclusive independent distributor of SATAproducts in the US and Puerto Rico. For further information, pleasevisit www.satausa.com

Continental Auto Parts Announces achievement of NSF International Distributor Certification

NJA

NJA

For all we have to offer, visit us at

www.nucarparts.comScan the QR code forNucar Wholesale Parts



Acme Nissan................................................56Amato Agency..............................................31American Honda Motor Co. ........................6Audi Group ..................................................61Axalta Coating Systems ..............................IBCBMWGroup ................................................26-27Bridgewater Acura........................................55Brogan GMParts Center ............................43Cadillac of Mahwah......................................8CCC Comp-Est ............................................53CCC One ....................................................5Classic Audi ................................................12Clinton Acura................................................43Cosmos Recycled Auto Parts ......................14Crane Chevrolet ..........................................45Crestmont Toyota ........................................45Crestmont VW..............................................47Empire Auto Parts ........................................66Flemington Group ........................................23FMS Managers LLC ....................................49Future Cure..................................................10Glen Toyota..................................................OBCHackettstown Honda....................................44Hyundai Group ............................................50JMK BMW....................................................13JMK Saab/JMK Fiat ....................................42Klean Frame ................................................53LKQ..............................................................59Maxon Mazda ..............................................19Maxon Hyundai ............................................32Mazda Group ..............................................64Mercedes Benz of Freehold ........................33Mike Kaufmann Dealer Group ....................46Mini Group ..................................................54MINI of Manhattan ......................................17Mitsubishi Group..........................................65Mopar Group................................................51NU-CAR ......................................................63Paul Miller Audi ............................................30Porsche Group ............................................58PPG ............................................................3Prestige Motors............................................44Princeton BMW............................................13Princeton Mini ..............................................33RWMallon/Collision Equipment Company ..11Saw Mill Auto Wreckers ..............................47Subaru Group ..............................................57Town Audi ....................................................42Toyota Group ..............................................48Toyota of Hackensack..................................IFCValspar ........................................................4Valtek ..........................................................66VIPHonda....................................................55VWGroup ....................................................60VWof Freehold ............................................9Wheel Collision Center ................................53

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