2009-01 January

Mike Gerber’s President’s Message Page 4 MA. Labor Rate Commission Holds Hearing Pages 16-17 ADP Pages 18-19 Reynolds & Reynolds Pages 20-21 Snap-On Business Solutions Page 22 Tracy Industries Pages 23-25 Corker Hopes Chrysler Will Merge Page 26 The Year is 1908 Page 27 Change is a Journey, Not a Destination Pages 28-29 Sales Story...Sad but True Pages 30-31 TidBits Pages 32-33 Drivers Pocket Insurance Cash Page 34 2009 Mopar Masters Guild Committees Page 36

January 2009 LEADERS IN THE SALE OF QUALITY PARTS

MAGAZINE

Also In

This Issue

NADA 2009 Update

Page 2-3

January 22-25, 2009

Jim Jackson… A True Mopar Master

Pages 6-13

Convention to Host 21 Automaker Franchise Meetings at Critical Time

for the Industry Page 5

Mopar Masters Magazine Page 2

NADA 2009 www.nada.org

January 22‐25 Our Hotel for NADA 2009 in New Orleans is

the Hotel MonteLeone

Mopar Masters Guild NADA 2009 Itinerary

Tentative as of 1/10/09 Thursday, January 22nd Travel and arrive in New Orleans 7:30 PM Executive Committee Meeting & Dinner Friday, January 23rd Room 7:00am - 10:45am Mopar Masters Guild Business/Committee Reports Opening address by Guild President Mike Gerber Welcome Comments from Vice President Brent Hoge Treasurers Report from Steve Hofer Secretary’s reading of the minutes from Mike Mulkins Mopar Masters Guild Business & Discussion 11:00am - 12:00 Vendor Presentation - Snap-On Business Solutions 12:00pm - 1:00pm Lunch - 1:00pm - 2:00pm Vendor Presentation - ADP 2:00pm - 3:00pm Vendor Presentation - Tracy Industries, Inc. 3:00pm - 4:00pm Vendor Presentation - OEConnection 4:00pm - 5:00pm Vendor Presentation - Dealer Tire 5:00 pm Adjourn 7:00pm - ???? MMG Cocktail Reception Dress-Business Casual

January 22-25, 2009


Saturday, January 24th 7:00am - 7:30am MMG Discussion Topics 10:00am Vendor Presentations: Reynolds & Reynolds Corporate Billing, Inc. Full Circle Solutions 12:00 - 1:00pm Lunch 2:00pm Mopar Executives & Portfolio Managers 5:00pm Adjourn Evening Open Night: Explore New Orleans Sunday, January 25th NADA Convention being held at The New Orleans Morial Convention Center and is open from 9:00am to 5:00pm Information on Convention Transportation will be provided when you arrive

There will be no Super Performance Group Meeting If you wish to stay on Sunday night you must make

your own accommodations!

Have a safe trip home!

This premier event of the year is for Mopar Masters to share and exchange valuable

information in helping to grow their businesses and most of all their bottom line profits!


Mopar Masters, Our meeting in New Orleans is coming up quick and I am excited to attend and see all of our members, vendors, and Mopar senior managers. This may be one of the most critical meetings we have held. With the economy in a shambles, Mopar losing a fourth of their white-collar work force, and dealerships closing around us we need to “exchange ideas in a non-competitive environment”. This will be the first meeting in a long time that is not paired with a Mopar Performance Group so we will continue our performance group dis-cussions in our Guild meeting. We will be utilizing some of our meeting time to discuss topics the attendees suggest. Please send an e-mail with your topics to [email protected] prior to the meeting and we will include them in our dis-cussions. Cost-reduction is the biggest issue we all are facing and I’m sure some great ideas will be shared on this subject. This is also the first meeting in years that Jim Jackson will not be facilitating part of our meeting and attending our functions. I will miss Jim’s wit and his ability to stretch our thinking to new levels while keeping us on subject. I remember a spiritual talk Jim gave at a breakfast that touched on his beliefs that we are in some ways connected to everyone and everything. It was very moving and brought us all closer together. Thanks Jim for all you have taught us and for helping us channel our ideas into successful enterprises. If you have not decided to attend our meeting I would encourage you to make the trip to New Orleans for two days of sharing with the top volume parts managers from around the country, presentations by our supporting vendors of cutting edge products that help us excel in our business, and meetings with the Mopar executives to discuss all of the changes in their world including the new Return Program and the new Dealer Rewards Program. Sincerely,

Mike Gerber

Mopar Masters Guild President Mike Gerber

CJD of Bellevue


Convention to Host 21 Automaker Franchise Meetings at Critical Time

for the Industry Now that U.S. automakers will receive emergency bridge loans, attention has shifted to NADA's Convention in New Orleans in January when deal-ers will have an opportunity to meet face-to-face with the top leadership of the auto manufacturers. NADA's Industry Relations Group has an-nounced that 21 separate manufacturer franchise meetings have been confirmed at the convention. To handle what is expected to be a renewed interest in the Convention, NADA has extended online registration until 3 p.m. on Monday, Jan. 5. "NADA is pleased that nearly all of the automakers' CEOs and presi-dents plan to attend these important meetings," said Annette Sykora, NADA Chairman. General Motors' Rick Wagoner, Toyota's Jim Lentz, Chrysler's Jim Press and Ford's Alan Mulally are all planning to attend. Mulally will deliver the keynote industry address at the convention's opening session on Saturday, Jan. 24. "There could not be a more important time for a dealer to attend a NADA convention and hear directly from their manufacturer," Sykora said. Fran-chise meetings offer dealers the opportunity to hear from NADA, dealer councils and the automaker's leadership, as well as ask questions of their manufacturers directly. "These meetings come at a critical time," Sykora said. "Automotive retail-ing is going through historic changes, and there is no better place for dealers to meet and discuss the future of their industry than at the NADA convention," she added.

ADVANCE REGISTRATION FOR THE 2009 NADA CONVENTION & EXPO IS NOW CLOSED.

If you would like to register for the Convention, you may do so onsite beginning at 10:00am, Friday, January 23rd. Registration will be located in Hall D.


Jim Jackson

A True Mopar Master As many of you may have heard, Jim Jackson will no longer be providing his services for Chrysler. Chrysler's plan for 2009 is to eliminate all but the most basic level of training so Jim's expertise will no longer be needed. I will quote from Jim's email to me: "It feels really, really good! The only thing I will miss, and I do mean the only thing, is serving the Masters Guild. That has been the high-point of my 30 years of service to Chrysler." I’ve received many words of kindness to Jim and have compiled them to honor our friend and mentor.

Jim, I hope you enjoy! Don C. *************************************************************************************************** I am very grateful to have had Jim Jackson as a mentor. Jim was instrumental in sharing with all of us many life lessons. Jim always held us accountable when it would have been far easier to look the other way. Professionally Jim shared with me the most important lesson; that of never confusing activ-ity for achievement. If the activity was not profitable, Jim had that special way of challenging you, and asking the question, “then why the HELL” are you doing it? I owe a great deal of my personal success directly to Jim. However, Jim’s most meaningful impressions were shared on a personal level. Jim taught us all to care for ourselves, to care for each other, and gave us a roadmap that would allow each of us to shift our own lives from success to significance. I have been very blessed to have had Jim’s influence take hold in my own life. Jim, THANK YOU, for all the gifts that you selflessly shared. All the best! Mike Mulkins Parts Manager Go Chrysler Jeep

(Continued on page 7)


Just think Jim, You will not have to apologize for one more "Chrysler Chicken” lunch. Brenda Rock Hayes CDJ

I have taken training courses with Ford, GM, Honda, Hyundai, and Mitsubishi. There was little or noth-ing that I felt their courses had to offer me to improve myself or my management skills. When I learned that Chrysler had such an extensive training schedule I was reluctant to spend the many hours that are expected to pass the requirements. “Here goes another month of my life in wasted hours of training.” What a surprise it was to be involved in the training that Jim has produced! After the first course I was looking forward to the next with great relish. When I went online to look for the next course I always looked for the trainer to be Jim. In South Carolina this past year I sat in amaze-ment as Jim called all of us Mopar Masters on the carpet. “You guys are not Masters”, he said, “You sit here and complain about things that are holding you back but you have no answers, get up and get going.” I will certainly take advantage of his learnstuffnow.com website as much as possible. Let’s hope that Jim will stay in touch. I, for one, will miss the annual training that he has been providing. Thank you very much Jim for the instruction and for your insight. I wish you all the best for the future. Brent Christensen Ken Garff West Valley CJD

I have been in the parts business for over 20 years now and I can say without a doubt I wouldn’t be the manager I am without the support of Jim Jackson. I met Jim about 10 years ago when I started attending Mopar Performance Groups. During the last 10 years Jim has always been very helpful and willing to share his knowledge of the business to insure the growth in my parts departments. I am sad that those days are gone and my mentor has moved on, but I wish you the very best in your retirement. Once again it has been a pleasure meeting you and I will always be in debt to you.

Tommy Thrift Parts Manager Park Dodge Chrysler Jeep

(Continued from page 6)



I know Jim as a guy who tells you like it should be. He makes you strive to be a better person and manager. When you ask him a question he gives a down to earth, thoughtful, thought provoking, and meaningful answer. I will be forever grateful to Jim for sharing his vast knowledge with us through the years. You will be missed very much in the training future of Chrysler but I can only imagine that you will not be one to stand on the sidelines as the business goes on. My family and I wish you all the very best life has to offer. Thank you for all that you have done for me in my career and the Masters Guild. Dan Murphy Retail/ Wholesale Parts Santan Honda Superstore of Chandler Jim, as I continue to age it is amazing how my perception on “things” (work, home, family, friends and life in general) continues to change. Is it the wisdom gained through maturity? I don’t know! One thing I do realize is that there have been people that I have encountered in my 52 years that have helped create who I am. You had an impact by teaching skills and the way you taught them (rubber bands and all) and made it stick! That was a key that has helped me attain success in the auto parts busi-ness that I wouldn’t have otherwise. Even though we have traditionally only been together a couple times a year for the past 27 or so, I consider you a great friend and mentor. I hope you enjoy retire-ment. However, I have already told several guild members that after you get bored and if we are all still around that we can just contract you direct to moderate and share your opinions on whatever the new challenges are to be! Paul Allred Metrolina CJD




If it wasn’t for Jim most of us Mopar Master Parts Managers wouldn’t be where we are today. It’s been a real pleasure to know you Jim and good luck in the future.

Charles Murphy Arrigo Dodge Chrysler Jeep I know that it goes without saying that Jim Jackson has been a tremendous friend and resource to all of us over the years. I truly believe that the guild is not only losing a good friend and resource, but also an inspiration as well. Through Jim's examples over the years he has made me want to be a better person, as well as a better Parts Manager. Jim's perseverance in both his personal and professional life is an excellent example for all of us to follow. I am very happy that Jim is being able to move on from his relationship with Chrysler, but I will truly and sincerely miss the relationship that we were able to establish with Jim over the years. He is truly a gentleman among gentlemen, I am having difficuly finding the words that do justice to the man and the legend that he is and always will be. It has been my honor to be counted as someone who has been influenced by Jim Jackson. Respectfully------- Mark A. Skinner Parts Director Power Chrysler-Jeep-Dodge Jim Jackson sent me an email (like many others) after we lost our son in November 2005. Like all of his correspondence and talks, it was very insightful! His "take" on our loss was to remind us of the im-portance of all our time together. Jim Jackson is an inspirational person whom I love and treasure and appreciate. Here is a portion of his exact quote: ................ There never seems words enough or adequate enough to really get at the emptiness left. Nor have I ever found anything in the time af-ter a loss to make sense of it or to see a lesson to be learned from the experience ... except to know that whatever time we have with those we love is more precious and important than everything else life can offer. Marvin Windham Parts Manager Don Drennen Motor Company




My first encounter with Jim Jackson was on the old Master Parts VHS tapes (is this dating me?). I re-member my first impression was “this guy’s kind of dry”. He knew his stuff, but didn’t come across as real dynamic. Boy was I wrong! I guess I never did ask Jim, but I assume he was reading from a tele-prompter. Then I met Jim in person at a class and was amazed. Not only did Jim REALLY know the fundamentals of our business, but he knew the practical side as well. Over the years, Jim would con-tinue to educate (and re-educate) us all and inspire us to achieve greater things than we thought pos-sible. Jim was even not afraid to chastise us if he felt we were giving up on a subject or taking the easy way out (as recently as September in Myrtle Beach). I have come to think of Jim not only as a true parts “guru” but as a good friend as well. He genuinely cared about us, our families, our dealer-ships, and OUR success. Like Fred Hale, Jim’s former counterpart inside Mopar, he definitely will be missed. We have reached the end of an era in Mopar Parts! However, in true Jim Jackson form, we must learn the ways to “work” the new systems and new ways of doing business in the 21st century auto industry. I still haven’t figured out how a guy that lived in Detroit for all those years could keep his Southern accent. I’ll miss hearing about “somebody questioning your Momma’s heritage” or “my Daddy always said….”. Best wishes from Minnesota to Jim and Ellie, Ole Olson Elk River Chrysler




Hi Jim, I also have been with Chrysler now for 30 years. If you survive long enough you will see history and watch it repeat a few times before it’s over. I am personally saddened to see you go. I also ponder my own fate in this tumultuous time. When is it long enough, who do I leave behind, what will I do next? I know that your retirement from Mopar was planned but it would have been nice to pick your own tim-ing. While it has been helpful to have an inside voice at Mopar I am disappointed that a friend was forced out on stranger’s terms. It just goes to show that it can happen to anyone at any time. You have given me one of the greatest gifts in life. You have given me a piece of your soul to carry with me for the rest of my days on this planet. I have so many memories associated with your wit and wisdom. You truly have helped shape me into a better person. For that I am forever grateful and I know that there are countless others that feel the same way. Just remember that once a Mopar Master you are always a Mopar Master. You are welcome not only at our functions but in our homes. I know we will be seeing plenty of you in the future. You don't have to be a formal Mopar man to hang out with us. We love you, Rick Jack Powell CJD




Having worked for a Chrysler, Jeep, and Dodge store for some time, once again I had the automatic response to a live scheduled train-ing class that I had to attend. “What a waste of time and money, I am far too busy to waste my time all day at a boring training class”. This is what I had always thought until attending my first class instructed by Jim Jackson. Wow, what a difference. A class that was actually interesting, kept my at-

tention, learned some real world knowledge, and actually had “Fun” attending a class. This was just the first impression of the many classes that I have attended instructed by Jim Jackson. Somehow each one always seems so much better than the one prior. I started off learning a few things and get-ting a few ideas in the classes. Now, over time and experience, after I attend any class that he has instructed, I have too many ideas and new knowledge that I do not know where to start. It is like he teaches inspiration through his knowledge. I always leave his class looking forward to trying some of the new stuff or ideas that I have learned. Besides Mr. Jackson’s real world automotive experience, his personality reaches far beyond an instructor. Many of the items I have learned go far beyond the workplace and are more “How to be a better person” lessons. It is just amazing what you can learn from an instructor like Jim. He teaches with experience, respect, and honesty and in my opinion is second to none in his profession. It is with great respect that I thank Jim Jackson for all that I have learned and wish him well in the future. He will truly be missed.

Rich Schott Moore Chrysler Jeep

Inspiration may come from many different places, but when a person is given the ability to draw inspiration out in others it truly is a gift! Jim has inspired me to excel in my profession yes, but more importantly he has inspired me to become a better man.. His most important lessons were taught through his own actions and had little to do with words. It is therefore that I fail to put into words exactly what Jim has drawn out of me. However, I strive to listen to and inspire just one person the way Jim has inspired me. While Jim's formal lessons may have come to a conclusion, the ones his friendship offers will always stand!

Steve Hofer Park Chrysler Jeep



Jim, you’re the best! I have been to many training classes over my 30 years in this business. And, none of them had a more enjoyable learning experience than yours. Not only did you instruct and facilitate our professional training, you also helped us understand that our personal lives must not suffer because of our profession. And, that the correct mixture of both will enhance the other. Thank you for being a big part of my professional life and more importantly someone I can call friend. Gerry Oakes Baxter Chrysler Jeep Dodge “My first experience with Jim was back in the early 80’s when I was a parts manager for a small deal-ership. When I left his class I couldn’t believe how high my motivation factor was. To this day I have been able to use Jim’s vision in my current position as a wholesale marketing manager. I have been very fortunate, working for the Mopar Masters Guild, to have been able to continue to enjoy Jim’s sharing of knowledge, guidance, humor and friendship to help me not only in my business career but also in my personal family life. Thank you Jim! You are truly one of a kind. Don Cushing Marketing Manager Bald Hill Dodge Chrysler Mopar Masters Magazine Publisher Until I met Jim, my ego had prevented me from intimidation. After all, I “knew it all”. Jim’s style is not to intimidate but rather to offer “challenges” to one’s potential. Boy, did he ever open my eyes to my true potential! Thank god for gentlemen like Jim Jackson! Ernie Wennerstrom Parts Manager Bald Hill Dodge Chrysler




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Mass Labor Rate Commission Holds Final Hearing

The Commission is due to report on possible state regulation of collision repair labor rates.

Regulation in Massachusetts is often referred to as the "R" word under the state's new envi-ronment of "managed competition" in the automobile insurance industry. But regulation of collision repair labor rates is something that some repairers feel is necessary. On November 13, a special commission set up to study the possible regulation auto body la-bor rates in Massachusetts held its second and final hearing before it will report its findings back to the state legislature. The Commission is charged with studying existing rate setting practices in the industry and investigating the possible benefits of developing a new state-regulated rate setting system proposed by the repair industry. The proposed system is built upon a tiered rating system for shops, based on training and capability, and a corresponding labor rate based upon the average of national hourly rates adjusted for the cost of living in Massachusetts. The commission is to file its report to the legislature, along with its recommendations, by De-cember 31, 2008. Characterizing the proposal as "government price fixing," the American Insurance Associa-tion (AIA) testified that the proposal to regulate auto repair labor rates would be a major step backwards in the effort to reform the auto insurance system in Massachusetts. John Murphy, AIA Northeast Region Vice President, told the Commission said that if Massa-chusetts repairers were paid a labor rate comparable to the national average, auto repair costs would increase by approximately $128-146 million annually. Those additional costs, ac-cording to Murphy, would ultimately be borne by consumers. "Auto insurers can and do negotiate favorable labor rates for repairs," said Murphy. "Those efforts have a positive impact on repair costs which, in turn, have a positive impact on con-taining overall insurance costs." Murphy told the Commission that allowing competitive forces to operate would ensure that quality repairs are made in the most efficient and cost-effective manner. Peter Abdelmaseh, executive director of the Massachusetts chapter of the Alliance of Auto-motive Service Providers (AASP), testified in favor of regulating labor rates. Abdelmaseh agreed that allowing competitive forces to operate would be the most efficient and cost-



effective solution, however, in order for competitive forces to operate in a free market, there needs to be a free market, and one does not currently exist in Massachusetts. "We believe that for every intervention into the customer-seller transaction that insurers make, there must be a countervailing balance for collision shops. Without listing all of these interven-tions, insurers control the initial transaction to the extent that a significant number of consum-ers do not know the name of the collision shops that repair their vehicles," Abdelmaseh told the Commission in submitted testimony. "Insurers hold approval power over repair processes and often deny generally-accepted meth-ods of repair," Abdelmaseh noted. "Clearly, the situation begs for some form of regulation be-cause there are so many impediments to a free market that still exist. And we expect them to remain in place for a long time to come. AIA's Murphy testified that, "No other state in the country has opted to set a labor rate for auto-mobile repairs and AIA strongly urges this Commission to reject any such proposal for Massa-chusetts." Following the six-hour hearing, Abdelmaseh said he was pleased with the proceedings. "Overall I think the hearings went well. Our whole industry made a very intelligent professional presentation of this issue." "The industry worked very, very well together. This has been the effort of several hundred shop owners, employees and spouses that have come together on this issue for more than two years. We are looking forward to the Commission's report," said Abdelmaseh. "I have to believe we are going to get a fairly good report that will act as a catalyst for the bill next year and get it moving through the legislature." The Commission deadline for submitting comments ended on November 17. According to Ab-delmaseh, their report is expected prior to the holiday season. While the legislature has set a deadline of December 31, 2008 for the Commission to submit its report, Abdelmaseh said that many expect the report to be completed prior to the holiday season. The Commission has expressed its intent to complete the initial draft of the report by December 5. The Commission has also been asked to report on the number of existing auto body shops in the state as well as the number of closures over the past eight years.











Corker hopes Chrysler will merge Senator says GM's debt load is too high 1/13/09 - Automotive News DETROIT -- Tennessee U.S. Senator Robert Corker came to the Detroit auto show today and said Chrysler LLC needs to find a merger partner and General Motors is carrying too much debt. Corker, a freshman Republican, emerged as a point man in the automotive debate after he and a group of Southern lawmakers blocked auto-bailout legislation last month. Leading a throng of reporters on the floor of the show, Corker said he came to Detroit in response to a plea by Michigan Attorney General Mike Cox. Cox asked lawmakers to visit the show in a column published in Tuesday's Washington Post. Corker's visit underscored the attention the industry has drawn as the U.S. economy reels from the longest recession since the early 1980s. At the end of 2008, U.S. auto sales had plunged to levels not seen since 1982. In response to a reporter's question about Chrysler, Coker said the automaker's best chance of sur-vival is with a partner. "Chrysler probably needs to merge with somebody, not necessarily go away from the standpoint of existence,'' he said. "It appears to me based on what I have looked at that they have not invested in technology and those kind of things necessary to be a standalone. "My hope is they will in fact merge and be a viable part of Michigan and our country." After the bailout legislation failed in Congress, the Bush administration last month pledge $17.4 billion in loans for Chrysler and GM from the $700 billion bailout fund for the financial industry. Chrysler and GM each have received $4 billion so far, and GM is targeted for the balance. Corker, whose home state includes a GM assembly plant in Spring Hill and the North American headquarters of Japan's Nissan Motor Co., said he was concerned about GM's debt load. "If you look at GM with $62 billion in debt and the VEBA (retiree health care funding) obligations they have, even in good times they can-not make those commitments," he said. "Our hope is that the bond holders and all the stakeholders together will do those things necessary for GM and Chrysler, and possibly at some point Ford, to have the right capital structure to go ahead successfully.'' Corker also addressed criticism he's received for asking the UAW for wage concessions as part of a compromise that ultimately failed in the Senate. The senator said he was misquoted and that he never said UAW workers earned too much money. "I never said that," he said. "What I said was they needed to be competitive. That was the language that I used. We only focused on the active worker." The U.S. Treasury still required the UAW to take wage concessions as part of the White House bail-out. A proposal to strip the Corker-inspired labor provisions from the automaker rescue was included in legislation introduced in the House of Representatives last week to expand the government's $700 billion corporate bailout program. Chrissie Thompson, Philip Nussel and Reuters contributed to this report


The year is 1908 One hundred years ago. What a difference a century makes!

Here are some statistics for the year 1908:

• The average life expectancy was 47 years. • Only 14 percent of the homes had a bathtub. • Only 8 percent of the homes had a telephone. • There were only 8,000 cars and only 144 miles of paved roads. • The maximum speed limit in most cities was 10mph. • The tallest structure in the world was the Eiffel Tower. • The average wage in 1908 was 22 cents per hour. • The average worker made between $200 and $400 per year. • A competent accountant could expect to earn $2000 per year, a dentist $2500 per year, a veterinarian between $1500 and $4000 per year and a mechanical engineer about $5000 per year. • More than 95 percent of all births took place at HOME. • 90 percent of all doctors had NO COLLEGE EDUCATION! Instead, they attended so-called medical schools, many of which were condemned in the press AND the government as “sub-standard.” • Sugar cost 4 cents a pound • Eggs were 14 cents a dozen • Coffee was 15 cents a pound • Most women only washed their hair once a month and used Borax or egg yolks for shampoo. ONCE A MONTH??? • Canada passed a law that prohibited poor people from entering into their country for any reason.

The five leading causes of death were:

1. Pneumonia and influenza 2. Tuberculosis 3. Diarrhea 4. Heart disease 5. Stroke

• The American Flag had 45 stars • The population of Las Vegas, Nevada was only 30!!! • Crossword puzzles, canned beer and iced tea hadn’t

been invented yet. • There was no Mother’s Day or Father’s Day • 2 out of every 10 adults couldn’t read or write. • Only 6 percent of all Americans had graduated from high school. I WONDER HOW MANY NOW? • Marijuana, heroin, and morphine were all available “over the counter” at the local corner drugstores.

Back then pharmacists said “Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach and bowels, and is, in fact, a perfect guardian of health.” (Shocking? DUH!)

• 18 percent of households had at least one full time servant or domestic help. • There were about 230 reported murders in the ENTIRE USA!!

Try to imagine what is may be like in another 100 years!!!


Change is a Journey, Not a Destination

Written by Lee Amaradio, Jr.

I write articles about our industry. I give shops my opinion on what I think they can do to turn this industry around because we need “change.” I have become an industry advocate and placed a well-deserved bull’s eye on my back. I will say what most other industry people only think. This all started because I was so frustrated that I could no longer contain it inside. Always striving to stay ahead of the competition, our shop decided years ago to deliver a quality product. Through the years the standard by which collisions are repaired have changed so much.Even though I was a quality shop if I were to repair vehicles today by those ten-year-old standards, I would no longer be delivering a good, hon-est repair to my customers. Take a look at anything from cell phones to computers and you will see that 10-year-old technologies no longer measure up. We are continually raising the bar with everything in America; this is just the way things are. Remember the first cell phones that needed to be installed in your vehicle? What if we tried to sell those cell phones today? People would laugh at us. Things have changed! Remember the Shade Tree mechanic – where is he today? Today’s vehicles require diagnostic computers that tell the mechanic what is wrong. Cars have changed. Try to change spark plugs on some of today’s vehicles and you will be shocked at what an ordeal it is. Although the equipment required to repair vehicles today is quite a bit different than the old days, some collision shops are still repairing collisions and charging the way we did ten years ago. This really needs to change! I remember when color match was the main concern of my customers, cars were different, and the con-sumer was less demanding. Today the customer expects the color to match; the old days of trying to sell a color that isn’t spot on are gone. The consumer has become so accustomed to getting things done correctly that they expect it. So if an insurer tells you that they refuse to pay for a blend or to color sand and buff, we can no longer take “no” for an answer. We should charge them and not worry when they tell us that the shop down the street never blends anything. So how do we keep up? Change is how! Many of today’s shops have fallen behind the times and are being encouraged to stay in the past by the insurers. I have heard so many times that “we are the only shop that charges for this or that.” Maybe we are the only ones doing it. I know of shops that still pull things on the floor and, believe it or not, they are on many of the insurers preferred list. Why would an insurer recommend a shop that they know is substandard? Because they save money. This is the only reason. They know that they assume no liability for the repair; so they are essentially off the hook. If a question about the repair were ever to make it into a courtroom the insurer would say, “We are not the



repair experts, we don’t tell them how to repair the vehicle, they are the experts.” We all know this is true, we hold the bag, and we are the ones responsible! If we assume all of the liability for the repair, why do the insurers write estimates that we work by? Why do shops even look at an estimate that is written by a rookie adjuster that doesn’t have a clue how to repair a collision? Some are taught by their superiors not to even look at our estimates for the simple reason that they are trained to purposely leave things off the estimate. Common sense would tell you that they shouldn’t even have the right to write an estimate or have any in-put into the repair process unless they were the experts and shared the liability. We are the collision repair experts and, by their own words, the insurers are not the repair experts. The law says that the insurer has the right to reasonably adjust our estimates. There is nothing in the insur-ance code that gives an insurer the right to write an estimate or control the repair process. Adjusting an es-timate is completely different than writing one. Make the changes now. If you want things to change for your shop you need to start today. I suggest that you tear down every ve-hicle and write a complete estimate. If an adjuster tries to hand you an incomplete scratched out estimate, don’t accept it. This takes diligence on the shop’s part because the insurer will delay the repair and pass the buck on to you. We have every customer authorize a teardown. We take a ton of photos for the adjuster but we work for the consumer and our responsibility lies with them. The BAR requires us to do this and when we do it any other way we are non-compliant with BAR requirements. The vehicle owner is our customer and we need to educate them at the time of drop off. Let them know that you work for them and have their best interest in mind. Explain the potential delays could be if you have trouble coming to an agreed price with the insurer. Next you need to change the way you deal with the insurers. It’s time to educate the insurers that you deal with about why you are charging for any item or procedure in question. Show them OEM documentation or use ALL DATA documents. I have found that when you prove that something is required, the insurer is powerless to deny it. Now you move the liability over to their side. In 30 years, I have never found an insurer willing to assume any liability for any repair. Anyway, yes, I am trying to change the industry and I’m willing to put myself on the line, because some-one needs to. The days of sitting back and waiting for something to change are gone. I will speak out and tell the truth about what is going on. I will continue to change this industry one shop at a time, one insurer at a time, one tech at a time, one training program at a time. I will continue to write articles and give information and hope that you will be that one shop that “gets it” and realizes that the “change” starts with you.



Sales Story….Sad but True This is a sad story. Sad but true. It was a real conversation, ostensibly a sales conversation. This sales conversation, and many others just like it, is happening all over the world. I recount this sad sales conversation here in hope that we may all learn from it: Sales Representative: "I just called to see how things are." Wendy: "Things are fine." Sales Representative: "OK. Well I'm here if you need me." Wendy: "Why should I need you?" As it turns out, the company this young man represented was supposed to be scheduling a demo of a product for my staff and for me. My wonderful assistant, Erin, usually takes care of sched-uling for these types of events. When the rep called, I was working on a program that had an ap-proaching deadline. This company's demo was the last thing on my mind. I didn't make the con-nection and I had absolutely no idea why this rep was calling me. Clearly, neither did he. "I just called to see how things are going" has to be the lamest follow-up question of all time." Although, it is running neck and neck with, "I just called to follow-up." Neither question elicits any information, neither moves the sales process forward and both are frequently annoying to your prospect who has absolutely no idea why you have called. Now in all fairness, this rep was not the original contact and perhaps the original contact did not give him all of the background. In that case, he should have first asked the original contact some questions:

• "What is the purpose/goal of my call?" • "What is the history here?" • "Where are we with this prospect?" • "What is the next step for this prospect?"

Any of these would have sufficed. Then this representative would have had a focus and a goal for his call. The rule is: Never make a call to your prospect without having a goal in mind. When you hang up the telephone, what do you want to have accomplished? Do you want to gather information? Do you want the prospect to commit to some action? Do you want agreement on the next step in your sales process? Once you have your goal in mind you can then figure out the appropriate ap-proach. (Hint: "I just called to see how things are going" is not it.)



Here's an approach that you can use to set up your follow up calls. I call it the "Instant Recap/Guilt Technique." It goes like this: Instant Recap "Hello (prospect's name goes here.) This is (your name) from (your company.) We spoke on (date goes here) and discussed (fill in whatever you discussed.)" Guilt "You asked me to call you (or 'We agreed that I'd call') to discuss (fill in the blank with your next step.)" The "Instant Recap" brings your prospect back to your last conversation. Your prospect may or may not remember that conversation and when you are prospecting, you don't want to count on your prospect's memory. Help your prospect out by recapping your last conversation. The "Guilt Technique" then explains why you are calling. There had been a previous conver-sation, outlined in the "Instant Recap" and now you are doing what you had promised to do, call your prospect. This "Instant Recap/Guilt Technique" works very nicely to set you up to have your next conversation with a prospect. If you are following up with a prospect who was originally con-tacted by someone else you can adapt the "Instant Recap/Guilt Technique" as follows: Instant Recap "Hello (prospect's name goes here.) This is (your name) from (your company.) You spoke with my colleague, (colleague's name goes here) on (date goes here) and discussed (fill in whatever was discussed.)" Guilt "You asked us to call you to discuss (fill in the blank with your next step.)" This is how the unfortunate sales rep reference above should have proceeded. Unfortunately for all, he did not. Let's have no more sad stories of sales reps calling to "see how things are going." Instead, let's have productive, focused conversations with prospects that move the sales process for-ward. "I am visualizing you all surrounded by cash."



Tidbits

Spot deliveries: Slippery slope for dealers Bill Heard Enterprises Inc.'s Chevrolet empire was crumbling. Rising fuel prices were gutting the group's high-volume sales of SUVs and pickups. Top story: U.S. industry meltdown Could there be any doubt about the top automotive story of 2008? Certainly not in the minds of the Automotive News editorial staff. By unanimous vote, the staff picked the collapse of the U.S. auto in-dustry. It was the first unanimous vote in the 56-year history of the Story of the Year poll. Suzuki: We can't help dealers with floorplanning Suzuki dealers won't get floorplanning help after all from Suzuki Motor Corp. In a letter sent to dealers on Dec. 20, Suzuki said it has been "forced to abandon" attempts to find a source of wholesale financ-ing for its dealerships. For auto stocks, no sector was safe The best thing about investing in auto industry stocks in 2008 is this: The year is almost over. Except for the lucky investor who temporarily stumbled into some Volkswagen stock in the summer, auto in-dustry shareholders saw their investments wither this year. Chrysler Financial: Building block for new bank? Even if Chrysler LLC never makes another car, Chrysler Financial would be able to keep reaping an income stream for several years as customers pay off existing car loans. A terrible, horrible, awful, very bad year This has been a year to make automotive forecasters weep. A year ago, prognosticators debated whether 2008 light-vehicle sales would be just above or just below 15 million units. Some forecasters have tried to blot out the memory of their 2008 prediction. We said hello to ... Here are 10 things that got a start, or really got going, during 2008: Green, Smart, $4-a-gallon gaso-line, the Hyundai Genesis, VW's plant in Tennessee, Tata Motors, clean diesel, reality, a new F-150 and small, powerful engines. Blunders of the year Using the corporate jets to go to Washington, running out of cash, going on vacation during a strike and crashing two supercars in a parking lot -- those are among the 10 blunders of 2008. 10 innovative dealers 10 innovative dealers in 2008 are, in alphabetical order: Chad Collier, Barry Cottrell, Dan Fields, Jack Fitzgerald, Michael Gillespie, Chris Haydocy, Peter Hoffman, Greg Kach, John McCallan and Lenny Napoli. Does it matter anymore? Last week, to no one's surprise, Toyota Motor Corp. announced that it would have the first operating loss in the company's history after decades of growth and prosperity. Many expect Honda Motor to suffer from the same malady. Pittsburgh Glass closes plants Pittsburgh Glass Works, anticipating lower auto production in 2009, will close its Oshawa, Ontario, glass plant in the first quarter of next year.



Continental moves work Continental AG will close its Blythewood, S.C., plant by the end of 2010, idling 440 workers, and move the factory's diesel-parts operations to a plant in Newport News, Va. Celgard wins battery contract The United States Advanced Battery Consortium, in collaboration with the U.S. Department of En-ergy, awarded Celgard LLC, of Charlotte, N.C., a $2.3 million, 18-month development contract for lithium ion battery separator technology for fuel cell, hybrid and electric vehicles. Citation gets Akebono work Citation Corp. has been awarded $200 million in new contracts to supply Akebono Brake Corp. of Elizabethtown, Ky., with ductile iron castings. Citation officials estimate 65 million castings will be made at the company's Brewton, Ala. Alcoa to supply Volt's wheels Alcoa Automotive Wheels will supply forged aluminum wheels for the Chevrolet Volt plug-in hybrid, due in 2010. The wheels are 20 percent lighter than cast aluminum wheels, which will help reduce the weight of the Volt and extend its range, Alcoa said. SKF bearings enable stop-start The Swedish company AB SKF is supplying a magnetic-sensor ball bearing for stop-start hybrid sys-tems. The bearing, supplied to Valeo SA, creates a magnetic field that allows the system to stop the engine when a vehicle slows to speeds below 4 mph or stops at a red light, then restart it. China plans spiffs for some hybrid buyers The Chinese government in late January plans to unveil incentives for some buyers of hybrid vehi-cles, says Zhang Jinhua, an official promoting energy-saving vehicles. Buyers of the vehicles will be public agencies, such as public transportation companies, post offices and administration depart-ments. Supplier personnel Companies in this report: Cooper-Standard Automotive Inc., Dana Holding Corp., Faro Technologies Inc., Federal-Mogul Corp., Meridian Automotive Systems Inc., Ricardo Inc., Spartan Motors Inc., Trubiquity and TRW Automotive Holdings Corp. Private equity, falling volume put small suppliers at risk Three small auto parts companies owned by private equity firms went bust this month. Expect more. Parts suppliers are bleeding from the plunge in industry volumes. Automakers are slashing first-quarter production schedules from 20 to 50 percent. But that's not the only problem. GM sues bankrupt supplier Cadence over parts General Motors has filed a lawsuit against a bankrupt auto-parts supplier, saying it is holding neces-sary equipment "hostage" which could potentially interrupt the launch of its new Chevrolet Camaro car. 2009 Chevrolet Traverse LTZ has good tech options The 2009 Chevrolet Traverse LTZ features touch screen navigation, and can monitor live traffic with a subscription to the service. There is no iPod adapter. It has a 3.6-liter V-6 engine and 288 horse-power. The LTZ model starts at $40,000. BMW North America to raise list prices 0.7% As the auto industry prepares to turn its back on a year it would rather forget -- November sales alone were the worst in half a century -- BMW of North America is getting ready to raise prices. BMW will hike its list prices in the U.S. by an average of 0.7% starting Jan. 1.



THE GUILD MOTTO “THE EXCHANGE OF INFORMATION BY LIKE SIZE DEALERS IN A

NON COMPETITIVE ENVIRONMENT” This is the reason the Guild exists. The strength of our existence relies not on the voices of a select few, but on the combined knowledge of all. With this in mind, everyone should remember to become as pro-active as possible. The Guild is YOURS, be proud of it and be part of it!

Drivers pocket insurance cash; auto repairs decline By: Eyewitness News 4

At Tommy's Auto Body, employees say they haven't yet seen a dip in business Local car repair shops say more drivers are pocketing the insurance money after a car crash, which is hurting their business and short changing customers. Nationwide, body shops are reporting a 25 percent decrease in business. At Tommy's Auto Body in Albuquerque, things were busy Thursday. But the new trend could start cutting into their business too. Employee Tommy Hufnagel said some people need the insurance money for the bare necessities. "A lot of times, people will get an $1,800 check from the insurance company and their car is driveable and they need the money for rent for groceries rather than fixing their car," he said. But customers looking for quick cash could be short changing themselves. Hufnagel said most the time, insurance companies underpay the claim when they pay directly to the owner. "If they received a check from the insurance company of $1,800, it very possibly should have been $2,200 or $2,300. But by cashing out and not getting an estimate from a body shop, they actually end up losing money doing that," he said. Hufnagel said some insurance companies will even hold back part of the payment until they know the work has been done. Those who pocket the cash face paying for the re-pairs out of pocket.

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2009 Mopar Masters Guild Committees

President Mike Gerber Chrysler Jeep Dodge of Bellevue Vice President Brent Hoge Larry Miller Chrysler Jeep Dodge Treasurer Steve Hofer Park Chrysler Jeep Secretary Mike Mulkins Go Chrysler Jeep West Executive Committee All of the above and: Gerry Oakes Baxter Chrysler Jeep Paul Allred Metrolina Chrysler Jeep Dodge Rick Monteiro Jack Powell Chrysler Dodge Marvin Windham Don Drennen Motors Alan Yancey Hayes Chrylser Dodge Jeep Roy Benner Allen Samuels Dodge Dan Hutton 1st Alternate Tom O’Brien Chrysler Robbie Jackson 2nd Alternate Salsbury’s Dodge City Membership Committee Brent Christensen (West) Ken Garff West Valley CJD Steve Hofer (North) Park Chrysler Jeep Doug Price (East) Security Dodge Chrysler Robbie Jackson (South) Salsbury’s Dodge City Vendor Chairman Paul Allred Metrolina Chrysler Jeep Dodge Newsletter Don Cushing Bald Hill Dodge Chrysler Mike Mulkins Go Chrysler Jeep West Claire Cummings Go Chrysler Jeep West Performance Group Ole Olson Elk River Chrysler Finance Committee Roy Benner Allen Samuels Dodge Brent Hoge Larry Miller Chrysler Jeep Dodge Reynolds & Reynolds Paul Allred Metrolina Chrysler Jeep Dodge Tom Watson Performance Chrysler Jeep Dodge John Gilbert Preston Chrysler Jeep Rick Cutaia Rick Hendrick Dodge ADP Jim Stoneman Westoaks Chrysler Dodge Roy Benner Allen Samuels Dodge Steve Hofer Park Chrysler Jeep Mike Mulkins Go Chrysler Jeep West Casey Brown Allen Samuels Dodge Katy Snap-On Dan Hutton Tom O’Brien Chrysler OEConnection Brent Hoge Larry Miller Chrysler Jeep Dodge Dealer Tire Rick Monteiro Jack Powell Chrysler Dodge Brian Joynt Power Chrysler Jeep (Dan, Brent, Rick and Brian are the Chairs for Snap-On, OEConnection and Dealer Tire) Noble Casey Brown Allen Samuels Dodge Katy Hanel Susan McDaniel Bill Luke Chrysler Jeep Dodge Rich Schott Moore Chrysler Jeep Terry Doll Earnhardt Dodge Interstate Tom Watson Performance Chrysler Jeep Dodge NADA 2009 Planning Robbie Jackson Salsbury’s Dodge City Dan Hutton Tom O’Brien Chrysler Website Chairmen Marvin Windham Don Drennen Motors Don Cushing Bald Hill Dodge Chrysler


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2009-01 January