Jan-Feb 2013 MMG Magazine

Leaders in the sale of quality Mopar Parts.

The exchange of information by like size dealers

in a non-competitive environment. Mopar Masters Guild

In This Issue

President Steve Hofer ............................... 2

Never Attended a Mopar Masters Guild

Meeting? ...................................................... 3

MMG 2013 Scheduled Attendees ......... 8

WV Injunction Forces Liberty Mutual to

Comply with Non-OEM Law ................. 9

Learning for Profit ..................................10

MMG Supporting Vendors .............12-13

Decisions, Decisions, Decisions ......15-16

U.S. Auto Sales Reach Peak ...................16

UPS .............................................................17

Corporate Billing, LLC ..........................18

FenderBender/Ratchet+Wrench .........19

Autobody News ........................................20

Rousseau Automotive .............................21

Mopar .........................................................22

ADP ......................................................23-25

Elite Extra...........................................26-27

Reynolds & Reynolds..............................28

Northeast 2013 Seminar Schedule ......29

Met P&C Will Reimburse Drivers ......30

New Aftermarket Parts Regs ...............31

2012 MMG Committee..........................32

Jan-Feb 2013

Mopar Masters Guild 21st Annual Mee ng Informa on

NADA 2013 Pages 4-7

NADA Announces Conven on Keynote Speakers

Former Secretary of Defense Robert M. Gates, who will discuss global poli cs and U.S. foreign policy, joins a lineup of industry and inspira onal keynote speakers at the 2013 NADA Conven on & Expo in Orlando, Fla., in February. Other keynote speakers at the NADA conven on include John Krafcik, presi-dent and CEO of Hyundai Motor America; NADA Chairman Bill Underriner, a new-car dealer in Billings, Mont.; and incoming NADA Chairman David West-co , a new-car dealer in Burlington, N.C. Capt. Mark Kelly, former NASA as-tronaut, space shu le commander of Endeavours fi nal mission and husband of former Congresswoman Gabrielle Gi ords, will deliver an inspira onal address.

2Mopar Masters Guild Magazine

Jan-Feb 2013

Welcome to 2013. This me of year has always been one of my favorite. Fresh o much needed family me many of us are planning and se ng goals for our businesses. There is no be er place to do that than at the Mopar Masters Guild Annual mee ngs and NADA conven on. In past years these mee ngs have been a spring board for planning and goal se ng for many of the managers that at-tend. If you have been on the fence about a ending or had not considered it please do (should me s ll allow). Feel free to contact me at [email protected] and I would be glad to talk with you about the many benefi ts at-tending guild func ons can have.

Over the past year I have struggled with a topic that has faced many dealerships. This is the changes in the collision industry as they relate to State Farm and their Parts Trader program. I am sure you have received many e-mail alerts or have read one of the thousands of ar cles on the topic. The issue at hand is that poli-cies dictated by large insurance companies and/or manufactures are o en mes one sided and masked as marke ng campaigns that are supposed to bring ben-efi t. These policies a ect our dealer body on mul ple fronts yet they are o en implemented without the input or considera on of those a ected. Specifi cally

the State Farm Parts Trader program impacts our dealerships parts department as well as collision centers and custom-ers. In my opinion these types of programs are an assault on the gross profi t of the business they a ect. As advocates to the end consumer we also need to be aware of how this may change the repair of their vehicles.

One of our longest term members and well respected Parts Directors has put together a brief outline of the State Farm program in this issue. I encourage you to please read through it but dont stop there. Research from credible fi rst hand sources how this program may a ect your collision shop, dealership and even you as a consumer. Replace the ini al pas-sion you may have with factual data. Doing so will put you in the best posi on to formulate an e ec ve business plan as to how you will manage such programs.

Please also enjoy the many other ar cles in this issue. I hope to see as many of you as possible at the upcoming Mopar Masters Guild mee ngs and recep on during the NADA conven on in February. Un l then consider the words of Maya Angelou

Ive learned that you shouldnt go through life with a catchers mi on both hands; you need to be able to throw some-thing back.

Its me for us to start throwing back and making sure that policies that nega vely a ect us are equitable for all. Manu-factures, insurance companies and any outside en ty driving policy into our businesses need our throughput as we toler-ate their policy. Therefore we all need to become be er partners. Neither will accomplish their goals without the other.

Steve Hofer

President

Mopar Masters Guild

Letter from MMG President

3The exchange of information by like sized dealers in a non-competitive environment.

Leaders in the Sale of Quality Mopar Parts

Never Attended a Mopar Masters Guild Meeting?The annual mee ng is of great value to every MMG member.

Here are some of the benefi ts:

Presenta ons from top Mopar corporate managersThese are no-bull two-way informa on exchanges that allow you to plan for whats coming during the year. You will also likely get a chance to talk informally with these same top managers at the opening recep on or another of the guilds social func ons.

Presenta ons from the guilds suppor ng vendorsAll of the most important vendors to your dealership will have their top brass and technical gurus here to tell you whats in the pipeline, including new products and so ware modifi ca ons.

Learn what the top Mopar dealership parts managers are doingYoure one of the top, too, or you wouldnt be a member! Come and share your experience.

Input to the annual Detroit mee ng with Mopar Execu vesWant to put your two cents in? Members assemble a list of Detroit issues that the guild execu ve commi ee takes to Detroit for candid discussion. Mopar execs ask us our opinion of possible new programs and explain their business posi ons. These discussions have resulted in many posi ve changes for all dealers. They also give Mopar a be er under-standing of our needs.

The NADA conven on fl oor alone is worth the trip! Mopar has a big exhibit with all the right people and info. Check out all the other vendor exhibits; maybe buy some new equipment for the store!

NADAs educa onal seminars are presented by the top names in all dealership areas and cover a wide variety of useful topics. You also receive a binder with notes from all sessions, including those you could not a end.

The Super Performance group held in conjunc on with the Guild mee ng earns you training credits and lets you hear great ideas from managers not in your area. The Dealer Composite lets you compare your numbers to those of every dealer a ending. If you no ce another members number in a certain area (GP on re sales, stock order discount, etc.) is where you want your number to be, just make a note and ask him how he does it.

Wearables! Make room in your suitcase you will receive stylish addi ons to your in-dealership wardrobe, each bearing the MMG logo.

Good food and friendship awaits. Most likely someone you already know will be a ending, and, with the wide variety of ac vi es available, its even more likely you will strike up a friendly rela onship with someone you meet.

The guild has made it possible for all Mopar Masters to enjoy these benefi ts, which actually amount to a compe ve advantage for your business.

What do you need to bring with you? Just a willingness to par cipate and share your knowledge and perspec ve. If you are a Mopar Master, you have something to o er the guild. Some mes the simplest idea, the one you were even a li le embarrassed to men on, is just what another member needed to hear.


Jan-Feb 2013

Continued on Page 5

NADA 2013 - Orlandowww.nada.org

Mopar Masters Guild NADA 2013 Tenta ve Agenda

All Loca ons for mee ngs TBA Thursday, February 7th Travel and arrive in Orlando

6:00pm 10:00pm Welcome Recep on for MMG Members & Spouses/Guests

Execu ve Commi ee Breakout

Loca on TBA

Friday, February 8th

9:00am 11:00am Spouses Breakfast

Guild Func ons:

7:00am - 8:00am MMG Guild Business/Commi ee Reports Opening address by Guild President Steve Hofer Welcome Comments from Vice President Rick Cutaia Treasurers Report from Mark Skinner Secretarys reading of the minutes from Joe McBeth Commi ee Reports

8:00am - 9:00am Vendor Presenta on - Reynolds & Reynolds9:00am - 10:00am Vendor Presenta on - Tracy Industries10:00am - 11:00am Vendor Presenta on - Dealer Tire11:00am - 12:00pm Vendor Presenta on - Katzkin

12:00pm - 1:00pm Lunch - TBA

1:00pm - 2:00pm Vendor Presenta on - ADP2:00pm - 3:00pm Vendor Presneta on - Elite Extra3:00pm - 4:00 pm Vendor Presenta on - Guidepoint4:00pm - 5:00pm Vendor Presenta on - Snap-On Business Solu ons

5:00pm Adjourn



7:00pm 10:00pm Mopar Masters Cocktail Recep on at The Ice Bar - Orlando Dress-Business Casual

Transporta on runs from 6:00pm 10:00pm

Saturday, February 9th7:00am - 8:00am Guild Business - Open Discussion 8:00am 9:00am Vendor Presenta on - OEConnec on9:00am 10:00am Con nua on of Guild Business

10:00am 12:00pm Vendor Fair Featuring: Corporate Billing LLC Rousseau Storage Autobody News FenderBender/Ratchet+Wrench Magne -Marelli Fastenal

12:00pm 1:00pm Lunch - TBA

12:00pm 4:00pm Mopar

4:00pm 5:00pm Vendor Presenta on - UPS

5:00pm Adjourn

Evening Open Night: Explore Orlando

Sunday, February 10th Open Members can use this me to a end the NADA Conven on or to explore Orlando

Monday, February 11th Super Performance Group Session - Hilton Orlando/Lake Buena Vista Walt Disney World Resort 8:00am - 4:00pm Moderators - Mark Beaton & Tom Rice

Tuesday, February 12th Super Performance Group Session - Hilton Orlando/Lake Buena Vista Walt Disney World Resort 8:00am - Noon

Continued from Page 4


Jan-Feb 2013

7:00PM10:00PMOur reception this year will not only impress, but will ffreeze in your minds for a lifetime. Come and share some food, fun and drinks with the MOPAR MASTERS GUILD members and friends.



Orlando EntertainmentWalt Disney World is not just for kids. It o ers plenty of things to enjoy for adults outside of the theme parks too.

Close to Epcot, Disneys Boardwalk o ers several upscale shops, restaurants, and nightlife op ons. Jellyrolls, an adult-only nightspot, features dueling pianos and sing-alongs. And Big River Grille & Brewing Works at the Boardwalk is Disneys only brewpub.

Downtown Disney, which is just across the street from the Hilton, has something for the en re family: a 24-screen movie theater; shops (including a Lego Imagina on Center), with some open un l 11:30 p.m.; and restaurants galore. Fuego by Sosa Cigars is an upscale cigar bar for adults, or if you love salsa music, try Bongos Cuban Cafe, owned by Gloria and Emilio Estefan. House of Blues serves Cajun food in its restaurant and live music in the adjacent concert hall; the blues bar at House of Blues also has live jazz every night and is one of the few late-night dining op ons at Downtown Disney. Raglan Road Irish Pub & Restaurant is another adult-friendly venue with live music.

Kids will love the Rainforest Cafe or the T-Rex restaurant with animated dinosaurs, both located at Downtown Disney. Cirque du Soleils La Nouba is a must-see, so book in advance. This show is a hit with all ages, even reluctant teenagers. Its not a circus in the tradi onal sense; its exo c music, elaborate stage, and whimsical, humorous presenta on make it fun for the whole family.

DisneyQuest at Downtown Disney is ideal for a cold or rainy day or for people who dont want to ride a real roller coaster; most of the rides here take place with mo on simulators. Young kids enjoy this indoor theme park with interac ve games and simulator technology. To avoid crowds, go late morning or early a ernoon. On the Virtual Jungle Cruise, paddle a mo on-simulator ra ; take a virtual-reality trip on Aladdins Magic Carpet Ride; or fi ght pirates in 3-D on a mo on-base pla orm (that is, the ship shudders when a cannonball hits it) in Pirates of the CaribbeanBa le for Buccaneer Gold. In Mighty Ducks Pinball Slam, you are the pinball; you stand on top of a giant hockey puck and control movements through a virtual-reality pinball machine with a joys ck. At Cyberspace Mountain, you can create and ride your own roller coaster on a virtual-reality mo on-simulator; at Anima on Academy, students of any age can learn how to draw Disney characters.

CityWalk at Universal Studios is much smaller than Downtown Disney but also has the typical restaurants and shops. However, Universal has something Downtown Disney does not: the Blue Man Group. The show was updated in 2012 and, like La Nouba, is great for all ages. In this unique performance art, three bald, mute men (who are painted blue) play fast-paced percussion music on complex instruments made of PVC pipe and combine it with mul media e ects. The tribal rhythms form a backdrop for the comedic theater that ensues.

Amber Kaye Henderson

Editor, Uno cial Guides

(Marvin Windhams daughter)


Jan-Feb 2013

MMG NADA 2013 Scheduled A endees Paul Allred Stateline CJD Michaele Beaton Crown CDJR Jeremy Bergem Dave Smith Motors Crete Colby Dave Smith Motors Rick Cutaia Rick Hendrick DCJR Mark Hargreaves Rick Hendrick DCJR Steve Hofer Park CJ Brent Hoge Larry H. Miller CJDR Glen Hojnacki Milosch's Palace CJD Dan Hutton Tom O'Brien CJD J.D. Ipsen Ken Garff West Valley CJD Randy Kaiser Stateline CJD Doug Kearns Yark Chrysler Jeep Dodge Tom Kellogg Harold Zeigler CDJ Bob Kornstadt Harold Zeigler CDJ Rod Krueger Yark Chrysler Jeep Dodge Joe McBeth Dallas DCJ Susan McDaniel Bill Luke CJD Mike Mulkins Go CJ West Tim Nordquist Performance CJD Gerry Oakes Performance CJD Mike Opperman Baxter CJD Doug Price Security DCJR Andy Reed Allen Samuel DCJ Randy Rogers Huffi nes CJD Tom Saigh Milosch's Palace CJD Mark Skinner Power CJD Rick Stewart Commonwealth Dodge Adam Thompson Park CJ Mike Tognarelli Hinckley Automotive Marvin Windham Benchmark CJD Alan Yancey Hayes CDJ Roy Benner Guest Phil Krueger Buerge CJDR Guillermo Nava Buerge CJDR Mike Gerber Rairdon Chrysler Jonathan Dworsky Park CJ Larry Morris Fred Beans DCJ Casey Brown Allen Samuel DCJ



WV Injunc on Forces Liberty Mutual to Comply with Non-OEM Parts Law

West Virginia Attorney General Darrell McGraw announced that the Circuit Court of Kanawha County has issued a permanent injunction against Liberty Mutual Insurance Company from using salvaged or aftermarket crash parts to repair motor vehicles that are less than three years old. McGraws offi ce had secured a temporary injunction against the insurer in April 2012.

McGraws offi ce says the courts order upholds current state law that requires insurance companies and body shops to obtain a consumers written authorization before salvaged parts are used for the repair of new vehicles.

Attorney General McGraw sued Liberty Mutual in January of 2012, after an investigation by his Con-sumer Protection Division revealed that Liberty Mutual had willfully violated state consumer protection laws. Liberty Mutual admitted in court documents that it had repaired nearly 200 vehicles using junk-yard and aftermarket parts in blatant disregard of the Aftermarket Crash Parts Act. Moreover, it contin-ued to defend its surreptitious use of these parts which jeopardized consumers safety and diminished the value of consumers vehic les, according to the AGs offi ce.

McGraw said, This is a victory for West Virginia consumers. Every consumer has the right to know the type and quality of crash parts used to repair their damaged vehicles.

The court has not yet ruled on the amount of restitution Liberty Mutual will be required to pay to con-sumers, nor did it rule on the amount of the civil penalties.

10

Mopar Masters Guild Magazine

Jan-Feb 2013

Learning for Profi tA ending industry events can spark new ideas to help you run your shop leaner and smarter, as long as you know how to implement what you learn. B R I T T J O H N S E N

Collision industry veteran Dan Bailey has been going to conferences, trade shows and industry mee ngs for more than 30 years, and they have changed his business drama cally.

Through a ending these events, he learned about trends and technology that helped him double his revenue in less than a year. A few decades ago, the former CARSTAR CEO bought a pressurized downdra spray booth, a frame machine that allowed him to repair unibody vehicles, and a computerized management system.

Those investments, all discovered through par cipa on in industry events, enabled his annual revenue to grow from $750,000 in 1979 to $1.5 million in 1980, because he had the technology and capabili es to perform repairs that no one else was doing, he says. Shop operators have the same opportunity to benefi t from trade events today.

(Going to conferences) is what changed my business, says Bailey, who today is vice president of opera ons at two of fi ve CARSTAR shops that earn $14 million annually. Bailey has mastered making the most of his me and money at collision industry events. He makes sure that when he goes, he gets something out of it.

Continued on Page 11

11

The exchange of information by like sized dealers in a non-competitive environment.


Bailey and several other industry conference goers and consultantsDoug Schlueter, national MSO manager for I-CAR; John Bosin, president of LeanBosin; and Dave McBroom of Sunbeam Autobody in Jacksonville, Fla.all provided their best advice for how to make the most of your time and money at collision industry events, and how to bring improvements back to your shop.

1.) Remember the golden rule. When it comes to a ending conferences, trade shows and other industry events, Bailey has a golden rule: Dont go unless you can come back with an idea that paid for the cost of the trip. He spends about $1,200 to $1,500 per trip, and takes four to six trips per year. He goes to the Collision Industry Conference mee ngs, NACE, SEMA, and his 20 Group mee ngs. Every trip is worth it, though, because of the ideas he gets and the people he meets. With having that goal, youre always looking for that golden nugget, he says.

2.) Begin with the end in mind. Schlueter borrows this phrase from Stephen Covey, author of the classic book, The Seven Habits of Highly E ec ve People. Schlueter says its important not to leave the shop for a trip unless you know what the outcome is going to be. Before you even think of going, brainstorm poten al take-aways from the conference. Look at the agenda to see who will be speaking, and on what topics. Think about who you might network with and what value you can take back to the shop. What e ects could all of this have on your day-to-day opera ons?

The way to get be er is to con nuously turn your

weaknesses into strengths.

Dan Bailey, former CEO, CARSTARBailey says its important to know your strengths and weaknesses. This helps you priori ze what you want to get out of the event. For example, if you have high turnover, issues with employee mo va on or if you want to learn about social media, then go to the relevant training sessions. If you cant get something useful from the event, then youll want to rethink going, he says.

3.) Send the right people. Bailey says when youre deciding who from your shop should go to an industry event, choose someone who can come home and implement change. Maybe its a manager, an es mator or the owner. It must be someone who understands how the shop needs to improve. The way to get be er is to con nuously turn your weaknesses into strengths, he says.

Bosin says owners should be clear with employees about what they need to gain from going to a conference. The sta ers who a end should be responsible and take it seriously.

I dont want to sound like a prude or overbearing, but you can go to events and get caught up in it, he says. Without planning, you can come back and say you had fun, but what are you really bringing back to share?

If youre so regimented and your schedule is so fi xed, then you wont get anything out of the event.

Doug Schlueter, na onal MSO manager, I-CAR



12


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14


Jan-Feb 2013

However, he says you can also send people to a conference as a reward for their hard work not necessarily to implement changes or learn new skills. If thats the case, then be up front with your employees that you just want them to enjoy themselves.

4.) Plan, but dont over-plan. Bailey says he plans his trips to conferences at least three or four months in ad-vance. That way he gets his room and plane cket booked, and he has me to research what ques ons he has and what ideas or technology he wants to explore.

He also has me to send e-mail to colleagues and plan to take someone out to lunch or drinks during the event.

However, Schlueter warns not to over-plan. He says not to plan more than one or two dinners or lunches, and then leave a lot of fl exibility for spontaneously grabbing co ee with people to talk about ideas generated in conference sessions.

If youre so regimented and your schedule is so fi xed, then you wont get anything out of the event, because youre always worried about the next thing on your schedule, he says.

5.) Take good notes. Schlueter says he uses a FranklinCovey planning system during the conferences he goes to. He takes a page from the planner and takes notes with short bullet point statements that help him remem-ber what he talked about with someone or what he learned in a training session. He does this a er the meet-ing, and can always return to the page to jog his memory of what he learned, as well as ideas for next steps. He suggests shops write down to-dos that can be delegated or even begin e-mail conversa ons from the confer-ence.

6.) Network. Introduce yourself to new people on showroom fl oors, meet up with old colleagues from across the country, or pick the brain of the guy next to you. No ma er what, make sure you make new connec ons. You can meet new friends, learn great business prac ces and get perspec ve on industry issues. Be sure to bring your business cards with you, too.

7.) Take it back to the shop. Plan to sit down with shop employees with pizza and discuss ideas. If you do noth-ing else, at least plan to talk about some key points you learned, ideas other shops are using, and ques ons you want to raise. If you have ideas for big change and are not the owner, then talk to your boss about what inspired you. If you want to make some major changes at the shop and want to get sta feedback, then a lunch mee ng is the perfect place to talk about it.

8.) Get involved. Bailey says he highly recommends ge ng involved with organiza ons like the Society of Col-lision Repair Specialists, the Automo ve Service Associa on, the Collision Industry Conference, and others. He has found that when he gets involved, he learns more about the industry and fi nds out about trends earlier. Then by the me you get to a conference, you are ahead of the game. I think you have an advantage because you learn about new things sooner, he says. The industry always needs volunteers to help move this industry forward, and to make it be er for all of us.

9.) Keep learning. McBroom says there are many opportuni es in the industry to keep improving. The mind set needs to be, I want to learn more. I want to be be er tomorrow than I was today, he says. Im an old re red Army major. Ive always had high aspira ons, and Ive always set high goals. I love to be a winner. I cant stand to lose.


15



Decisions, Decisions, Decisions!! extrapolate1. infer: to use known facts as the star ng point from which to draw inferences or conclusions about something unknown

2. es mate value: to es mate a value that falls outside a range of known values, e.g. by extending a curve on a graph

Synonyms: infer, induce, generalize, reason, deduce, conclude, draw conclusions

Our job as managers depend on our ability to read the marketplace and to make changes and tweaks as necessary to allow us to keep up with change. Without the ability to extrapolate known facts and draw conclu-sions based o those facts, we couldnt stay abreast of the industry, and would eventually fail.

Here are some facts as they relate to the Parts Trader / State Farm Insurance issue thats buzzing in our indus-try.

Insurance companies as an industry, largely control the collision repairer industry through the various DRP programs. In exchange for a chunk of their business they many mes ask these shops for conces-sions. These arrangements started out innocently but over the years have become more intrusive into the repair shops processes and prices.

State Farm grades their Select Service Shops by a complex grading system (Dashboard) that compares shops to each other and then a grade is given. The algorithm and methods of grading are not publicly disclosed.

State Farm and Parts Trader are engaged in a pilot program in several US markets that will require Collision Shops to input es mates and the subsequent parts orders through the Parts Trader portal to suppliers.

Par cipa on in Parts Trader is a supplier decision. Par cipa on in State Farms Select Service DRP is a repairer decision.

State Farm has stated that they cannot guarantee that margins will remain the same, once this portal is being used.

Parts Trader was founded in New Zealand and in that country they require OEs to bid on parts orders through a blind bid process.

The ini al Parts Trader portals required the OE Supplier to enter an MSRP (this has subsequently been removed).

In 2014 Parts Trader plans to start charging suppliers to allow them to sell to the State Farm (and other insurers that may join).


16


Jan-Feb 2013

Mr. George Avery of State Farm stated in a speech before the GCIA, that State Farm hopes to assist the industry, by reducing totals because of parts compe veness reducing repair costs. He went on to state that State Farm spends $3 billion per year for parts.

Mr. Avery also said, at the GCIA mee ng, The Birmingham repairers removed themselves from the program without giving the program an a empt and I feel this decision was based on misinforma on and specula on.

I understand the passion that surrounds this topic, but in reality it comes down to a basic business decision, based on the facts and our ability to draw conclusions based on the known set of facts. In my opinion you can only draw one conclusion based on the facts and what they infer.

Tony Passwater has put together a website with a collec on of related documents on the PartsTrader issue. (Copy and paste in your browser or Ctrl+click)

h ps://docs.google.com/folder/d/0ByS26G5qM17pNmoxeTVrRndkM3c/edit?pli=1

There is tons of informa on available and we suggest you visit the page, read the documents, and become educated on this very important issue.

Subitted byMarvin Windham - Benchmark CDJR


U.S. Auto Sales Reach Post-Recession Peak in 2012With the release of automakers year-end numbers over the past couple weeks, the U.S. auto industry capped its best year in terms of auto sales since 2007.

The industry totaled 14.5 million deliveries in 2012, a post-recession peak that also marked the fi rst three-year stretch of 10 percent growth since 1973.

For a comparison, the industry averaged almost 17 million vehicles each year in the decade prior to 2007.

General Motors Corp. increased its sales by 3.7 percent (2.6 million units) and retained its place as the overall sales leader in the U.S. market.

Ford Motor Co. was second at 2.24 million, a 4.7 percent growth.

Toyota was third at 2.08 million unit with 27 percent growth. The company also had the top-selling vehicle in the U.S. for the 11th straight year, the Camry.

Chrysler Group LLC, with a 21 percent jump and 1.65 million units delivered, was fourth.

Honda Co. was next at 1.42 million units in 2012, a 24 percent increase.

Some of the most notable improvements in sales came from luxury automakers. BMW showed a 14 percent increase in its U.S. salesincluding a staggering 39 percent jump in Decembermoving 281,460 total units for the year. Mercedes-Benz and Lexus also had big years.

17



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18


Jan-Feb 2013

Allen Samuels Chrysler Dodge Jeep Ram Ennis, TX

Allen Samuels Dodge Chrysler Jeep Ram

Fort Worth, TX

Allen Samuels Chrysler Dodge Jeep AllianceFort Worth, TX

Allen Samuels Chrysler Dodge Jeep Ram

Port Arthur, TX


Houston, TX


Katy, TX


Tyler, TX


Waco, TX

Benchmark Chrysler Dodge Jeep RamBirmingham, AL

Buerge Chrysler JeepLos Angeles, CA

Contemporary Chrysler Dodge Jeep

Milford, NH

Earnhardts Gilbert hrysler Jeep Dodge

Gilbert, AZ

Hayes Chrysler Dodge JeepGainesville, GA

Hayes Chrysler Jeep DodgeBaldwin, GA 30511

Hayes Dodge Chrysler Jeep Ram

Lawrenceville, GA

Mark DodgeMobile, AL

Pollard Friendly Motor Company

Boulder, CO

Rairdons Dodge Chrysler Jeep Ram of Kirkland

Kirkland, WA

Stinnett Chrysler Dodge JeepNewport, TN

Blackwell AutomotiveDanville, VA

Central Avenue Chrysler Jeep Dodge Ram

Larry Roesch ChryslerJeep DodgeElmhurst, IL

Reidman MotorsConnersville, IN

Jim Cogdill Dodge Chysler Jeep

Knoxville, TN

Bald Hill Dodge Chysler Jeep Kia

Warwick, RI

Dutchess Dodge, IncPoughkeepsie, NY

In my 35 years as Parts Manager I feel like my decision to do business with Corporate Billing has been one of my best decisions. Their careful DQGHIFLHQWKDQGOLQJRIP\H[LVWLQJ

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Managers and Outside Sales personnel could and should be more than capable of. As it turned out, Corporate Billing DQGWKHLUWHDPRIH[SHUWFOLHQW&UHGLWagents approved more new Wholesale 3DUWVFOLHQWVLQWKHUVWZHHNVWKDQRXUEXVLQHVVRIFHVWDIIKDGDSSURYHGLQWKH

previous 6 months.

- Bruce R BensonCorporate Director of Fixed Operations

Corporate Billing has been great for us. It has allowed us more time to focus

on customer service and to focus on potential new customers rather than

worry about collecting receivables. Your staff is very helpful and prompt when we need something handled for a customer.

- Casey BrownParts Manager

All these CHRYSLER DEALERS cant be wrong.

19



We are a Proud Supporter of the Mopar Masters Guild.2013. All rights reserved.

Find out how we can personalize your marketing message to help grow your parts business:

Contact: Chris Messer, Publisher 651.224.6207 ext. 14 e [email protected]

WE LOOK FORWARD TO SEEING YOU IN ORLANDO!

20


Jan-Feb 2013

21



22


Jan-Feb 2013

MAKE MOPAR YOUR FIRST STOP

FOR VALUEFRONT OR REAR BRAKE SERVICE

* Includes front or rear disc brake pad or shoe replacement with Mopar Value Line Brakes (semi-metallic), inspect rotor, drum and caliper, check brake uid level and road-test vehicle. Refacing/machining and uids extra. Lifetime Limited Warranty on Mopar Value Line brake pads and shoes. See your Service Advisor for details. Original equipment and ceramic brakes available at additional charge. Price does not include tax.

See Service Advisor for details.

$XXXX

2012 Chrysler Group LLC. All Rights Reserved. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC. FIAT is a registered trademark of Fiat Group Marketing & Corporate Communication S.p.A., used under license by Chrysler Group LLC. Printed in U.S.A.

Customizable Display Panel (Fits Tower Display) $26.00 eachPanel comes personalized with the pricing of your choice!

8 x 3 Horizontal Banner $70.00 each

Indoor/Outdoor Sign (Two 1-sided panels) $72.00

24 X 36 Poster $15.00 each

These all-new point of sale materials feature the Mopar Value Line Brake Friction Lifetime Limited Warranty message and are available to support your On-Demand Brakes Promotion in your Service Lane.

Visit the Service Drive Store today to place your order:www.dealers-mopar.com > Sales Tools > Service Drive Store > Whats New

17617 2013 Chrysler Group LLC. All Rights Reserved. Mopar is a registered trademark of Chrysler Group LLC. Printed in U.S.A.

NEWNEWMOPAR LLW BRAKE POS MATERIALS MOPAR LLW BRAKE POS MATERIALS

17617_MoparMastersAdFeb2013.indd 1 1/21/13 1:41 PM

23



Want to list your parts on PartsVoice?Call 866.772.1850 or visit PartsVoice.com

OEM PARTS LISTED ON OUR WEBSITE EVERY DAY

SEARCHES PERFORMED EACH MONTH

PARTS LOCATOR IN NORTH AMERICA

10,000,000200,000+NUMBER 1

PartsVoice | 713 Brooksedge Plaza Drive, Westerville, OH 43801 | 866.772.1850

24


Jan-Feb 2013

ADP, Inc. Dealer Services Group / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 2012 ADP, Inc. - Dealer Services Group / ADP is a registered trademark of ADP, Inc.

Enhanced Marketing Forms

Increase Revenue and Improve Customer Retention

Enhanced Marketing Forms make it easy to leverage

information you already print on your ADP LaserStation

Forms by converting existing document information into a

powerful personalized point-of-sale marketing tool.

Enhanced Marketing Forms Can help Drive Sales & Service Revenue

Improve Your Check-In Process

Drive Customers Back into Your Service Department

Personalize Messaging at the Right Time Every Time With Automatic Triggers Based On Invoice Date or Month (Seasonal Coupons)

RO Opened Date

Mileage

Existing or non-existing email

Heres Just a Few Examples: Sales Department Marketing to Service Customers

Extended Service Contract Reminder Letter

Sales Alerts

Thank You Letter (CSI Message)

E-Mail Capture

Denied Work Letter

Denied work indicator

Customer Number

Op Code

Labor Type

Drive Customers Back into Your Service and Parts Department With Coupons

Coupons, either Static or Variable are one of the main benefits of Enhanced Marketing Forms. Used as a Marketing tool, coupons are printed right on the forms at the point-of-sale to generate additional business.

Static Coupons print the same coupon on very document

Variable Coupons print unique coupons based on user defined triggering conditions

Powered by ADP LaserStation

25



ADP, Inc. Dealer Services Group / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 2012 ADP, Inc. - Dealer Services Group / ADP is a registered trademark of ADP, Inc.

Continued

Enhanced Marketing Forms

Keep Customers Coming Back Time After Time With Oil Change Window Stickers

Create custom oil change Window Stickers automatically. Enhanced Marketing Forms Window Stickers print when the repair includes the oil change op-code. A separate sheet of paper with the window sticker automatically prints with a customizable message to your customers.

Simplify Your Window Sticker Reminder Process

Utilizes the data from your Dealer Management System (DMS) to automatically generate stickers

Provide dealership information as well as a date and mileage information for the next Service due.

Eliminates the need for expensive printers that only perform one function

Includes special offers for returning customers Removable, Customizable

Oil Change Window Sticker

Sales

Service & Parts

Automatically triggered coupons and promotional offers

Automatically generated hang tags, dash sheets, and Multi-Point Inspection forms

Barcode Enhancements

Coupons*

Trigger Forms

Hang Tags*

Vertical Data printing (for easy file retrieval)

Additional layouts for:

o Service Invoices and Workorder o Parts Invoices o Purchase Orders (2-up)* o Cash Receipts (2-up)*

Note: Standard formatting will be applied on all static coupons unless otherwise indicated on the sample form mockups.

To learn how Enhanced Marketing Forms can help you drive more Revenue, call 888.424.6342 or visit us at adpdealerservices.com.

Enhanced Marketing Forms Packaging Options Include:

* Requires stock paper

26


Jan-Feb 2013

To streamline your business contact 1.888.484.8729

or visit www.eliteextra.com

for more information!

www.eliteextra.com

EXTRA Stats:EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSStttttttttttttttttttttttttttttttttttttttttttttaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaatttttttttttttttttttttttttttttttttttttttttttttssssssssssssssssssssssssssssssssssssssssssssssssss::::::::::::::::::::::::::::::::::::::::::

in Parts Delivered Monthlyinininininininininininiininininininininininininininininininininininininninininn PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPararararararaarrararararararrararararrararararararraraaraararaararaaaararararaararaarartstststststststststststststststtstsstststststtststststststststtststststsstsstststsssts DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDeleleeleleleeleleleleeeeeeleeleleleleleleleleleleleleleeeeleeeleleeeeeeeeeeeee iviviiviviviviviviviviviviviivivvivivivivivvivivvivivivivivivivivivivivivvvveererererererereeerererererererererereererrereerereeerrerererererererreeerereeereddedededdedededdededdedddedededededededededededdedededededededededededededededededdeeedeee MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMonononononononononononnoonononononononoononononononononononononononononononononoononoooooo ththththhhhthththththththththhththhthhhhthththhthththththttthttththththththlylylylylyylylylylylylylylylylylylylylylyylylylyylyylyyylyyyylyylyyyyy

Routes Created MonthlyRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRoRRoRRRRoRoRoRoRoRoRoRoRoRoRoRoRRoRooRoRoRooutututtutttututututututututututututututttuttutuutututututuutuutututtuteseseseseseseesesesesesessesssesesesesseseseseseseseseseseseseseseseseseseesseseseeeeesee CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCrerrerererererererererererererrerererererrereeerereerereerererereererererereeeeatatatatatatatatatatatatatatatatatatataatatatatatatatatatatatataataataatatatatattaaaatedededededededededededdeddededededededededdededededededededdedededdededededededededeeeddeed MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMononononononoonononononnononononononononononononononononononononononoononnononnonnoooonthththtthththththththththththhthththththhtthththhthththththththtththththththt ylylylylylyylylylylyylylylyylyllylylylylylylylylylylyylyylylyylyyyyyy

Miles Driven iiMiMiMiMiMMiMiMiMiMiMiMiMiMiMiMiMiMiMiMiMiMMiMiMMiMiMiMMiMiMiMiMiMMiMiMiMMMMiMM leleeleeleleleleleleleeleleeleleleeleleleeleleeeleelelleeleeleeeeleeeeesssssssssssssssssssssssssssssssssssssssss DrDrDrDDrDrDrDrDrDrDrDrDrDrDrDrDrDrDrDrDrDDDrDrDrDrDrDrDDrDrDrDrDDrDDrrDrrDrDrDDDD iiviviviviviviviviviviviviviivivivivviviviviviiviviiviviviviviviivivivvvvvvivveneneneneneneneneeneneenenneneneneneneneneneneneneneneneneneneneneneneneneneeeneeenne

Invoices Delivered IInInInInInInnInInnInInInInInInnnInInInInInIInIInInInnInnInInInInnInnvovovovovovovovovovoovovovooovoovovovovovovovovovovovovovoovoovovovvovovovoovoov icicicicicicicicicicicicicicicicicicicicicicicicciciciciciicicicicicicciccccceseseesesesesesesesesesesesesessesesesesesesesessesesesesesesesesesesesesesesesseesessese DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDeleleleleeleeleleeeleleleleeleleleleeleleleleleleleleeleleeeeleleeeeeleleee iiiivviviviviviviviviviviviivvivivivivivivivivivivivivivivivvvivvvvvvvi erererererererererererererererererererererererererererreererererereerrrerereereereeeee dededededededdededededeedededededdededededededededededededdedededededededeedededeeeded

gi iDrivers Using EXTRADrDrDDrDDDrDrDrDrDrDrDrDrDrDrrDrDrDDDrDrDrDrDDDDrDrDrDrDrDrDrDrDrDDDrDDDrDrDrDrDDD iiivivivivivivivivivivivivivviivivvivivivivivivivivviviivivvvvvvivvivivererererererereeereerereereererererererererererereerereeerererererererererereeeeee sssssssssssssssssssssssssssssssssssssssssssss UUsUUsUsUsUsUsUsUsUsUsUsUsUsUsUsUsUUUsUssUsUsUssUUsUsUsUUsUsUsUsUsUsUsUsUssUsUsUsUssUsUsU ininiininininininininnninininininininininininininininninininininininninnnininnngggggggggggggggggggggggggggggggggggggggggggggggggg EXEXXEXEXEXEXEXEXEXEEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXXXXXXEEEXE TRTRRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTTTRTRRTRTRTRTRTRTTRTRTRTRTRTRRTRTRRRAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

EEEETAs GeneratedETETETETETETETETETETEETETETETETETETETETTETETETETETETETETETEETETTETETETETEE AsAsAsAsAsAsAsssAsAsAsAsAsAsAAAsAsAsAsAAsAsAsAsAsAsAsAsAsAsAsAsAsAsAsAAsAsAsAssAsAsAsAAss GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGenenneneneenenenenenenenenenenenenenenenenenenneeneneneneenenenenenenneneneneneeneneneee erererereererereererererererererererereererrereeererererrerereererereereerre ataatatattatatatatatatatatataatatatatattatatatatatatatataatatataattaatatatataaatatttededededededededededededededededddededededededededededededededeedededdedededededededeeeede

Using EXTRAUsUsUsUsUsUsUsUsUsUsUsUsUUsUsUsUsUsUsUsUsUsUsUsUsUsUsUsUsUssUsUsUsUsUsUsUsUsssUsUsUsUsUsUsUUsinininininininnininininininiininniininininininniinininininininininininininnnninngggggggggggggggggggggggggggggggggggggggggggggggg EXEXEXEXEXEXEXEXEXEXXEXEXEXEXEXEXEEXEXEXEXEXEXEXEXEXXEEXEXEXEXEXEXEXEXEXEXEXXXXEXTRTRTRTRRTRTRTRTRTRTRTRTRTRTRTRTRTRRTRTRTRTRTRTRTRTRTRTRTRRTRTRTRTRTRRRTRRRRRAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

Canadian Provinces CaCaCaCaCCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCaCCaCaCaCaCaCCaCaCaCaCaCaCCaaaaCaanaananannanananananaananananananananananaaananananananananaanananananannaaaaaannadidididididididididdidididididididididididddidididididididiiddidididididdiddianananaananananananananananananaananaananaaanananananaaananaanannanananananaana PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPProroororororororororororooooroororororororororrorooororororoorororororroororoo iviviviviviviviviviiviviviviviviviviviviviviviviviviviivivviivivvivvvivv cncncncncncncncncncncncncncnnncncncncncncncnccncncncnncncnnccncncncncncncncncncceseseeseseseseseseseeseseseseseseseseseseseseseesseseseseesesesesesessesesesesessUsing EXTRAUsUsUsUsUsUsUsUsUsUsUsUsUUsUsUsUsUsUsUsUUsUUsUUsUsUsUsUsUssUsUsUsUsUsUsssUsUsUsUsUUsUssU ininininininininininininninininininiinininnniinininininininininininnnnininnngggggggggggggggggggggggggggggggggggggggggggggggg EXEXEXEXEXEXXEXEXEXXEEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXEXXEXEXEXEXEXXEXEXXEEEEEEEXXTRRTRTRRRTRRTRTRTRTRTRTRTRTRTRTRTRRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRTRRRRRAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

27



Stop byBooth 3359

at NADAto see

whats next!

EAU CLAIRECHARLOTTESVILLE | DENVER | MILWAUKEE | MINNEAPOLIS/ST. PAUL | OMAHA | SAN FRANCISCO

2985 58th Street | Eau Claire, WI 54703 | 715.874.2985

1.888.484.8729

www.eliteextra.com

Members of the Elite EXTRA team will be traveling to Orlando for our fourth NADA show. Well be unveiling new features and look forward to meeting customers and partners, new and old.

EXTRA now serves clients in 32 states and Canada, and were looking forward to expanding even further in 2013.

So, please do stop by and visit us at Booth #3359 at NADA on Feb. 9-11 in Orlando. Learn whats new and meet members of the EXTRA team:

-LP:DUG President 5RVV.OHLQHU Business Development Manager 0DWW3RUWHU Senior Account Manager -RQ:DUG Account Manager &KDG%DUW] Customer Relations Coordinator

Jim Ward

Matt Porter

Chad Bartz

Ross Kleiner

Jon Ward

EXTRA representatives Ross Kleiner and

Matt Porter will be presenting at the MMG Meeting Vendor Session

at NADA on Friday, Feb. 8 at 2 p.m.

28


Jan-Feb 2013

Show your consumers you care while increasing your service protability with a consistent selling and write-up tool. Dealers using Service Sales Kit experience:

s /VERADDITIONALUPSELLHOURSPERMONTH

s LABORINCREASEPER2/

s FEWERCLAIMSONPREEXISTINGDAMAGE

,EARNMOREBYSCANNINGTHE12CODEVISITINGhttp://bit.ly/ssk-foORCALLING888.853.2617.

2013 The Reynolds and Reynolds Company. All rights reserved. 1086189 1/13

29



Parts Procurement, Social Networking, I-CAR Top NORTHEAST 2013 Seminar Schedule

The Alliance of Automo ve Service Providers of New Jersey (AASP/NJ) said that just about every hot topic that is of interest to the automo ve repair service industry will be touched upon at the upcoming 36th annual NORTHEAST 2013 Automo ve Services Show. The show takes place March 8-10 at the Meadowlands Exposi- on Center of Secaucus, NJ.

The weekend starts o with the SCRS and AASP/NJ-hosted East Coast Resolu on Forum & Leadership Con-ference, which welcomes representa ves from na onal and local automo ve repair associa ons on Friday a ernoon at 1pm. This event will be followed by a panel discussion on the industrys most controversial topic, insurer-mandated parts procurement. The panel will include representa ves from many of the State Farm PartsTrader program test areas across the country, as well as discourse on other similar programs currently in use or in development. Moderated by SCRS Execu ve Director Aaron Schulenburg, the panel is expected to be an early highlight of the weekend.

There are 100 reasons to come out to the NORTHEAST 2013 show, says AASP/NJ President Je McDowell. But if you only need one, its the parts procurement panel. This may be the single most devasta ng threat to our industry in decades. NORTHEAST 2013 is going to be the only place in the country where youre going to get a chance to see so many professionals from di erent parts of the country who are experiencing these new programs. No repairer should even think of missing this.

Larry Montanez, one the industrys leading speakers and trade writers (and a NORTHEAST favorite) will return to present Damage Report Wri ng Case Study, where a endees will follow along with three case studies on a quarter panel replacement, bumper fascia replacement and key scratch down the side of a vehicle. Ad-di onal procedures, materials, included and non-included items will be covered, along with calcula ons of procedures. Larry will also be teaming with Metropolitan Car-O-Liner to present a special Calcula ng Frame/Uni-Body Set Up and Realignment demonstra on on Saturday morning.

Future Cure will host an educa onal waterborne paint seminar, Drying Waterborne in 2013: Just the Facts as well as Lease Financing Made Easy and Pain ng with Nitrogen: Inside the Collision Industrys Best-Kept Secret in conjunc on with Haydell Industries. NUCAR will facilitate two programs presented by GM Parts: A er the Crash, a seminar addressing new NVH technologies and several new safety features, and Beyond the Four Strokes, a presenta on using real world scenarios based on vehicles from several manufacturers to focus on engine mechanical related misfi res diagnosis, SIDI engine service techniques and most recent engine sensor technology.

I-CAR will be represented by its latest class, Vehicle Technology & Trends 2013 (NEW13) and the brave new world of social media marke ng will be addressed by Frank Terlap of Summit So ware Solu ons in Digital Marke ng = More Customers, Revenue and Profi t.

With all our area has gone through over the past year, NORTHEAST 2013 really has so much more signifi -cance this year, McDowell adds. Tough mes make for tough solu ons. NORTHEAST 2013 is a great place to fi nd them.

30


Jan-Feb 2013

Met P&C Will Reimburse Drivers Over Alleged Auto Insurance Overcharges

Insurance Company Allegedly Failed to Pay Refunds; AGs Offi ce Investigating Other Insurance Companies to Determine Whether They Have Engaged in Similar Practices

BOSTON Metropolitan Property & Casualty Insurance Company (Met P&C) has se led allega ons that it failed to refund surcharge premiums to automobile insurance policyholders a er those surcharges were eliminated by the Commonwealths Board of Appeal, or otherwise removed from consumers driving records, A orney General Martha Coakley announced today. The agreement will mandate an audit to determine the amount of res tu on owed to consumers and will block these alleged overcharges from happening in the future.

This is another example of an auto insurance ra ng problem that our o ce discovered as a result of a con-sumer complaint, AG Coakley said. While we are troubled that these overcharges occurred, we are pleased that we were able to stop this unlawful prac ce and protect consumers.

The Commonwealths Board of Appeal is an independent board that reviews the fairness of at-fault accident determina ons made by insurance companies for surcharge purposes. Once a surcharge is vacated by the Board of Appeal, insurance companies are required by law to refund the surcharge premium to the policyhold-er.

The AGs O ce began its inves ga on of Met P&Cs surcharge prac ces a er receiving a complaint from a Massachuse s consumer whose surcharge had been vacated by the Board of Appeal in 2010. The inves ga on revealed that Met P&C had reportedly failed to refund the consumer more than $700 in surcharge premiums. Met P&C cooperated with the A orney Generals inves ga on.

Under the terms of the assurance of discon nuance fi led in Su olk Superior Court last week, Met P&C will engage in a supervised audit of the relevant insurance policies to determine refund amounts, provide res tu- on to consumers plus 6% interest, and pay the Commonwealth $50,000 plus addi onal amounts depending on the results of the audit. Not all policyholders who had their surcharges vacated by the Board of Appeal are expected to be a ected.

The AGs O ce is now inves ga ng other insurance companies that write auto insurance in Massachuse s to determine whether they have engaged in similar prac ces. Consumers who believe that they paid surcharge premium to a carrier that was not refunded a er their surcharge was vacated by the Board of Appeal should call the A orney Generals Insurance & Financial Services Division at 1-888-830-6277.

The A orney Generals O ce is inves ga ng this ma er with the assistance of the Merit Ra ng Board. This case is being handled by Inves ga ons Supervisor Arwen Thoman, Mathema cian Burt Feinberg, Legal Analyst Emily Garvey, and Assistant A orney General Glenn Kaplan, Chief of A orney General Coakleys Insurance & Financial Services Division.

31



New Aftermarket Parts Regs Receive Final Approval in California

California Insurance Commissioner Dave Jones announced on Friday that the O ce of Administra ve Law (OAL) has ap-proved amended regula ons submi ed by the California Department of Insurance (CDI) regarding the use of a ermar-ket crash parts.

The new regula ons are expected to become e ec ve on January 30, 2013 with compliance required 90 days a er they are fi led with the Secretary of State, or on March 30, 2013. Any claims handling that takes place on or a er the compli-ance date of March 30, 2013 will be required to comply with these regula ons.

Specifi cally, the new regula ons will:

Require an insurer to pay for the costs associated with returning a defec ve part and the cost to remove and replace the defec ve part with a compliant non-OEM part or an OEM part;

Require the current insurers warranty be expressly stated in the es mate of repair generated by the insurer; Require an insurer to cease use of a part known to be non-compliant, and to no fy the part distributer within

thirty (30) days;

Require an insurer to pay for an amount to repair the damaged vehicle to its pre-loss condi on in a good and workmanlike manner, based upon the repair standards required by auto body repair shops licensed by the Bu-reau of Automo ve Repair.

Commissioner Jones said the new regula ons were sought to further protect California consumers from physical and fi nancial harm caused by defec ve or inferior a ermarket parts and to enhance insurer accountability in the claims process. The amendments build on exis ng protec ons by requiring insurers to se le automobile insurance claims us-ing repair standards described by the Bureau of Automo ve Repair, and not the insurers own standards of repair, said Commissioner Jones. This also places greater accountability on the insurer when they require use of an a ermarket replacement part so that damaged automobiles are repaired properly and safely.

The Insurance Department said that a er inves ga ng complaints from consumers and repair shops and evalua ng the law, the Department drew the conclusion that defec ve or otherwise non-compliant a ermarket parts con nued to infi ltrate the repair process due to insurers failure to perform the necessary steps to ensure public safety.

CDI said it had been made aware of defec ve a ermarket bumper reinforcements, hood latches, and other safety related parts being required by insurers that otherwise were not compliant with current repair standards. CDI said it had also been made aware of substan al costs borne by automobile repair shops and their customers associated with installing defec ve or poorly fi ng parts required by insurers. Performing repairs that do not comply with current repair standards or placing an inferior a ermarket part in a vehicle may cause the vehicles value to depreciate. Defec ve parts may cause injury or even death if they malfunc on, the Department said.

During the formal rulemaking process to develop the amended regula ons, CDI listened to stakeholders represen ng consumers, insurers, shops, distributors, and automobile manufacturers. CDI also held a pre-rulemaking workshop in November 2011, which included strong representa on of many stakeholders involved in the process.

32


Jan-Feb 2013

2013 MMG Committees2013 MMG Committees President Steve Hofer Park CJ Burnsville, MN Vice President Rick Cutaia Rick Hendrick Dodge Charleston, SC Treasurer Mark Skinner Power CJD Phoenix, AZ Secretary Joe McBeth Dallas DCJ Dallas, TX

Executive Committee All of the above as well as: Gerry Oakes Baxter CJD Omaha, NE Marvin Windham Benchmark CJD Birmingham, AL Dan Hutton Tom OBrien CJD Greenwood, IN Paul Allred Stateline CJD Fort Mill, SC Committees: Vendor Chairman Dan Hutton Tom OBrien CJD Greenwood, IN Newsletter Dan Murphy Chapman CJD Scottsdale, AZ Don Cushing Bald Hill DCJ Warwick, RI Nada 2013 Planning Marvin Windham Benchmark CJD Birmingham, AL Andy Reed Allen Samuels DCJ North Richland Hills, TX Membership Open Vendor Committees ADP Gerry Oaks Baxter CJD Omaha, NE Paul Allred Stateline CJD Fort Mill, SC Andy Reed Allen Samuels DCJ North Richland Hills, TX Rick Monteiro Jack Powell CJD Escondido, CA Mike Mulkins Go Chrysler Jeep West Golden, CO R&R Rick Cutaia Rick Hendrick Dodge Charleston, SC Ken Kokoszka Pollard Friendly Motors Boulder, CO Rich Schott Moore CJ Peoria, AZ OEConnection Snap-On Dan Hutton Tom OBrien CJD Greenwood, IN Paul Allred Stateline CJD Fort Mill, SC Brent Hoge Larry H. Miller CJD Sandy, UT Dealer Tire Paul Allred Stateline CJD Fort Mill, SC Susan McDaniel Bill Luke CJD Phoenix, AZ Joe McBeth Dallas DCJ Dallas, TX Elite Extra Rick Monteiro Jack Powell CJD Escondido, CA Larry Morris Fred Beans DCJ Doylestown, PA Ken Kokoszka Pollard Friendly Motors Boulder, CO J.D. Ipsen Ken Garff West Valley CJD West Valley, UT Steve Hofer Park CJ Burnsville, MN UPS Marvin Windham Benchmark CJD Birmingham, AL Brent Hoge Larry H. Miller CJD Sandy, UT Casey Brown Allen Samuels DCJ Katy, TX Glen Hojnacki Miloschs Palace CJD Lake Orion, MI Ken Kokoszka Pollard Friendly Motors Boulder, CO

Documents

Jan-Feb 2013 MMG Magazine