New England Automotive Report November 2015

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AUTAUT MM TIVE TIVE N E WN E W E N G L A N DE N G L A N D

November 2015U.S.A.

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Serving the New England Collision and MechanicalRepair Industry

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BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

LIABILITY:WHEREDO YOUSTAND?

2 November 2015 New England Automotive Report

CONTENTS

7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS

8 | A MESSAGE FROM THE EXECUTIVE DIRECTOR

10 | AASP/MA CASINO NIGHT SAVE THE DATE

15 | AASP/MA SPONSORS

53 | AASP/MA MEMBERSHIP APPLICATION

58 | INDEX OF ADVERTISERS

November 2015 Volume 13, No. 11

ALSO THIS ISSUE

COVER STORYby Jacquelyn BaumanDEPARTMENTSBENEFIT SPOTLIGHT 14 | Information You Need with Mitchell Internationalby Jacquelyn Bauman

LOCAL NEWS18 | MidState BBQ Offers Fun in Support of Education

22 | ADALB Issues Advisory Ruling on Used Partsby Joel Gausten

26 | Allstate Subsidiary Caught Using Unregistered Shops in MA

28 | Fighting for the Consumer: AASP/MA Submits Written

Testimony on Senate Bill 134

by Jacquleyn Bauman

NATIONAL NEWS

26 | VW Faces Recalls, Billions in Fines over Emissions

Scandal

32 | Claims Dismissed in Major Multidistrict Suitby Joel Gausten

VENDOR SPOTLIGHT 34 | Continued Success for Balise Wholesale Parts Expressby Jacquelyn Bauman

LEGAL PERSPECTIVE38 | The Commerce DTP Acknowledgmentby James Castleman

EQUIPMENT AND TOOLING48 | An Aluminum Retrospective: Where Are We Now?by Jacquelyn Bauman

AASP/MA MEMBER SHOP SPOTLIGHT 52 | A&P Collision Centerby Jacquelyn Bauman

44 | LIABILITY: WHERE DO YOU STAND?

New England Automotive Report November 2015 5

November 2015November 14, 2015AASP/MA Casino Night

Gillette Stadium Putnam Club, 1 Patriot Place, Foxboro, MA(See page 10 for details)

December 8, 2015ADALB Meeting

Division of Insurance, 1000 Washington Street, Boston, MA

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STAFF

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AASP/MA EXECUTIVE COMMITTEEPRESIDENTMolly BrodeurVICE PRESIDENTAdam IoakimSECRETARYGary CloutierTREASURERKevin GalleraniIMMEDIATE PAST PRESIDENTPaul Hendricks

AASP/MA STATEWIDE DIRECTORSCOLLISION DIRECTORRick Starbard

AASP/MA CHAPTER DIRECTORSNORTHEAST CHAPTER DIRECTORSAlex FalzoneKevin KyesSOUTHEAST CHAPTER DIRECTORSMichael PenachoDarlene AndradeMIDSTATE CHAPTER DIRECTORSTom RicciRay Belsito, Jr.WESTERN CHAPTER DIRECTORPeter Langone

PUBLISHERThomas Greco ([email protected])

DIRECTOR OF SALESAlicia Figurelli ([email protected])

EDITORJoel Gausten ([email protected])

ART DIRECTORLea Velocci ([email protected])

MANAGING EDITORJacquelyn Bauman ([email protected])

PRODUCTION Donna Greco ([email protected])

WWW.AASPMA.ORG

AASP/MA EXECUTIVE DIRECTORJillian M. Zywien

12 Post Office Square, 6th Floor Boston, MA 02109Phone: (617) 574-0741 Fax: (617) 695-0173

Email: [email protected]

MASSACHUSETTS


New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright 2015 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com/IStock Photo.


November 3, 2015Corrosion Protection

Fuller Auto Body, Auburn, MA

November 5, 2015Overview of Cycle Time Improvements

for the Collision Repair ProcessFuller Auto Body, Auburn, MA

Vehicle Technology & Trends 2016Modern Auto Body, Brockton, MA

November 12, 2015Plastic & Composite RepairFuller Auto Body, Auburn, MA

November 17, 2015Vehicle Technology & Trends 2016

Fuller Auto Body, Auburn, MA

in Massachusetts

For more information, visit i-car.com

FOR A FULL LISTING OF UPCOMINGAASP/MA EVENTS AND TRAININGOPPORTUNITIES, PLEASE VISIT

WWW.AASPMA.ORG


The ADALBs Big Ruling on PartsA MESSAGE FROM THE EXECUTIVE DIRECTOR

Dear Members,

At the time of this writing, the ADALB had just hostedtheir meeting at Pathfinder Regional Vocational TechnicalHigh School in Palmer. This was the first ADALB meetinghosted outside of Boston in quite some time. All Boardmembers were in attendance, as was Board CounselMichael Powers and Secretary to the BoardStevenZavackis.

The September 29 meeting was promptly called toorder at 9:30am to a packed room. Following the approvalof the minutes from a special meeting on August 18 to approve emergency licenses and a regularly scheduledmeeting from August 25, Board member Rick Starbard discussed the Part II exam scheduled for September 30 atAssabet Valley Tech with 70 applicants. He thanked thosewho helped him secure the vehicles and the site for the test,including AASP/MAs own Molly Brodeur.I am so pleasedthat the Board has taken action to move the testing sitesaround the state.

Arguably the most important item on the agenda wasthe proposed Advisory Ruling on the use of junkyard or

used parts in the repairs of suspension systems. At theADALBs last meeting, Board member Bill Johnson pre-sented a draft he created for their review. Counsel MichaelPowers agreed to take a look at the Advisory Ruling andrecommend changes. At this meeting, a new draft was pre-sented. There were several representatives from LKQ Cor-poration, and two of them spoke during the meeting tooffer their concerns on the Ruling. Ultimately, those con-cerns fell on deaf ears and the document passed with a 4-0vote of the Board.We believe this is a huge win for the in-dustry.The complete text of the Ruling (as well as addi-tional details about the ADALBs discussion on the matter)is in the story on page 22. If you are negotiating with an in-surer on used parts containing wear items that will impactthe operational safety of a vehicle, use this Advisory Rulingto your advantage and contact the association for addi-tional resources. We are here for YOU.

Additionally, the ADALB offered and formalized intotheir minutes the opinion of the Board relative to the use ofused parts. The ADALBs ruling is as follows:


AASP/MAExecutive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six

years. She can be reached at (617) 574-0741 or via email [email protected].

211 CMR 133.04 (3)(c) states the repair will not impair the op-erational safety of the motor vehicle. The ADALB is concernedthat the use of used parts that contain wear items, in certain cir-cumstances, may violate 211 CMR 133.04 (3)(c). We want to fur-ther note that the insurance company will be responsible andliable for the use of used parts it mandates.

Next, the Board voted unanimouslyto amend the cur-rent license renewal application. The new application willnow ask the individual if they have been convicted of acrime or been charged with a crime since the last submittedrenewal application. An asterisk (*) will outline exclusions,i.e. certain misdemeanor traffic offenses such as OUIs andthose explained in the original application.Theexact lan-guage can be found on the ADALBs website.

Before adjourning to their usual executive session at10:28am, the Board set their next meeting for Tuesday, December 8 at 9:30am back in Boston.I would like to thankour Western Chapter members for their encouraging atten-dance. The robust turnout may encourage the Board to continue to move their meetings around the state.

All ADALB meeting videos are posted on the MembersOnly section of AASP/MAs website and can be viewed atany time. If you are not currently a member, I would urgeyou to participate and join today to support the only associ-ation in the Commonwealth building the success of theauto repair industry. We need the support of the entire collision repair field to continue to encourage and promotechange on your behalf. Join today and receive the rest of theyear FREE. Your dues will be credited to 2016. Start the newyear off right with a membership to AASP/MA.

Sincerely,

Jillian Zywien, Executive Director

MASSACHUSETTS



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Sponsorship CategoriesSTILL AVAILABLE!

One of the advantages of being an affiliate of a nationalorganization is that the benefits that can only be provided bya wide-reaching institution are available to those at the locallevel. Thanks to AASP/MAs affiliation with AASP National,there are a number of discount programs provided to Massa-chusetts shops that normally wouldnt be available on a re-gional basis.

Mitchell International has been a part of and a friend tothe industry for almost 70 years through its numerous pro-grams designed to provide repairers with important infor-mation and services to facilitate their daily business. One of its most popular products is Mitchell RepairCenter Tech Advisor.

TechAdvisor provides access to OE repair procedures,says Ed Rachwal, president of Uxbridge, MA-based MitchellInternational distributor Designer Office Systems, Inc. It in-cludes frame diagrams [and] body repair procedures likequarter sectioning and door trim panel replacement, as wellas OE TSBs and diagnostic trouble codes, airbag [informa-tion], color wiring diagrams and even mechanical proce-dures like steering and suspension.

TechAdvisor is also modular, so shops have the ability topurchase only the components they need.

Essentially, TechAdvisor allows shops to research theOE procedures necessary to repair vehicles on the roadtoday properly, says Rachwal. With vehicles becomingmore complex and newer technologies like adaptivecruise control, autonomous braking, park assist, adaptiveheadlights, lane keep assist and more becoming standard onmore vehicles there are numerous procedures necessaryto recalibrate those systems, as well as precautions to take on

these vehicles. This helps the shop with the important tech-nical information and provides the documentation necessaryto get reimbursed by insurers for the additional proceduresand non-reusable parts.

For members of AASP/MA who would like to take ad-vantage of this invaluable asset, there is a 15-percent dis-count on all packages. The TechAdvisor Repair StandardsModule, which includes body repair procedures, starts atjust $60 per month.

Another discounted Mitchell product for AASP/MAmembers is UltraMate Estimating with Toyota Recom-mended Repair Procedures. Mitchell has teamed up withToyota to help industry pros create accurate estimates in justa few easy steps. For example, when you select ReplaceQuarter Panel on a 2013 Toyota Highlander, the system au-tomatically puts in 28 lines of procedures and non-reusableparts in addition to the quarter panel. Plus, the Toyota cribbulletins and repair procedures are available right in the esti-mating system.

I have had shops asking me for this type of technologyfor over 25 years, says Rachwal. The estimate just aboutwrites itself. We have had shops that are required to use an-other estimating vendor get this system just for their Toyotasalone.

Many members may have seen this product demon-strated by Rick Leos from Toyota at regional meetings in thepast. AASP/MA members can get a reduced rate for newsubscribers through January 31, 2016. Subscriptions start aslittle as $235 per month with the discount. For those who are unsure of the commitment, there are free, 30-day trialsavailable.

BENEFIT SPOTLIGHT

INFORMATION YOU NEEDWITH MITCHELL INTERNATIONAL

MASSACHUSETTS


AASP/MA WORKS TO MAKE YOUR DAILYBUSINESS IN THE AUTOMOTIVE SERVICE INDUSTRY AS EASY AS POSSIBLE. Through relationships with a variety of companies, the association provides member benefit services such as uniform services, SEO and website management, legal consultingservices and so much more. Now we want to hear from YOU.

Is there a service or company you think would make a great addition to AASP/MAs list of benefit providers? Let us know!

Contact Executive Director Jillian Zywien at (617) 574-0741 or email her at [email protected].


For more information about Mitchell RepairCenter TechAdvisor, please contact Designer Office Systems, Inc.at (508) 278-7839, email [email protected] or visit dshelp.com.

MASSACHUSETTS


Contact AASP/MA at (617) 574-0741 / [email protected] for information on becoming an AASP/MA sponsor!

AASP/MA NEWSLETTER SPONSOR

AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

WOLPERTINSURANCE



LOCAL NEWS

Offers Fun inSupport ofEducation On September 11, hundreds from theAASP/MA community gathered for the Mid-

State Chapters annual BBQ at SAC Park inShrewsbury. With beautiful fall weather and aspirit of fun filling the air, the Friday nightevent raised more than $5,000 for theAASP/MA Tool Grant in partnership with theCollision Repair Education Foundation.

In addition to amazing food courtesy ofFireflys, the evening included a special per-formance by magician Matt Roberts and greattunes by DJ/emcee Fuzzy Wuzzy.


AASP/MA and the MidState Chapter thank the following sponsors/donors for their generous contributions to the festivities:Grand Prize Sponsors: Bernardi Auto Group, cPrax Marketing,Enterprise Rent-A-Car, Marlboro Nissan, Wellesley Volkswagen,Don Kennett, Linders, Inc.; Live Auction Prize Sponsor: Wagner Motors; General Raffle Sponsors: Bald Hill, ABSAP,Balise; Dinner and Dessert Sponsors: Best Chevrolet, R.H.

Long Automotive; Childrens Meal & DoorPrize Sponsor: Imperial Parts; ChildrensGoodie Bag Sponsor: BASF; andEntertainment Sponsors: Kelly Auto Group,Spray Booth Services & Equipment.

MASSACHUSETTS



LOCAL NEWS

The Auto Damage Appraiser Li-censing Board (ADALB) is on themove and on a roll.

For their September 29 meeting, theADALB chose to conduct business at anew location, the Tea Room at thePathfinder Vocational Technical HighSchool in Palmer. This move to thewestern part of the state was an at-tempt by the Board to host meetings indifferent parts of the Commonwealth inaddition to their regular location at theDivision of Insurance in Boston. ThePathfinder meeting drew a sizablecrowd of area body shop personnel andother industry professionals eager tofollow the Boards activities.

Considering the importance of thesubject matter tackled by the Board, itcame as little surprise that the industryturnout was so strong. The majority ofthe hour-long meeting focused on thepossible adoption of an Advisory Rul-ing drafted by Board member Bill John-son that addressed the utilization ofused parts in the repair of suspensionsystems on damaged motor vehicles.As previously reported in New EnglandAutomotive Report (Used Parts Con-cerns Spur ADALB Debate, NEAROctober 2015), the Ruling aimed to ad-dress whether requiring the use of suchparts would impair the operationalsafety of an automobile in violation ofstate regulations.

At the ADALBs previous meeting,Board member Joseph Coyne, Jr. sug-gested that the Advisory Ruling includean insertion stating that the use of sal-vage suspension and steering parts willimpair the operational safety of the au-tomobile. At the September 29 gather-ing, Johnson opined that Coynessuggestion was too strongly worded

and that it was not the Boards place toimpart an outright ban on the use ofused suspension parts. Calling John-sons draft Ruling a step in the rightdirection, Board member Rick Star-bard nonetheless called for greater re-strictions on the use of these partsduring suspension repairs. To illustratehis concerns, he shared a recent experi-ence his shop had with a suspensioncomponent he received from the samecompany (LKQ Corporation) that ap-peared before the Board at their August25 meeting to defend the quality oftheir products. According to Starbard,he received a part from LKQ only aweek after that presentation for a jobfor a self-pay customer who insisted onits use to save money.

The suspension assembly came inrusty, like it had been in saltwater forthe last year, he said. My service techcouldnt even break it apart to separatethe ball joints from it.

We have one company that saysthat they sandblast, Magnaflux, test,paint and make these parts look likenew, he added. We bought, a weeklater, a component from that facilitythat was anything but.

While he acknowledged Starbardsposition, Johnson stood his ground onwhat the Board could and couldnt doto address the issue.

To me, the Boards job is to followthe CMRs, he said. To say that weregoing to prohibit used auto parts, Ithink, is far-reaching. I think its up toeach shop and each consumer to nego-tiate as is mandated in the CMRs...If ashop uses a part that is inferior, thatstheir liability [and] the insurance com-panys liability, and the consumerneeds to be aware. Our job is to make

sure that everybody knows negotia-tions should occur, as is mandated bythe CMRs. I dont think we should betrying to say, You cant use this part orthat part, because every cars different,every suspensions different and everysituations different. You cant legislatecommon sense...All we can do is tellpeople what the rules are, and theyneed to follow them.

Paul Folino, regional industry rela-tions manager for LKQ, appeared be-fore the Board to detail his companyswork to protect the shops that utilize itsproducts. He stressed that LKQ pro-vides a promise of protection in addi-tion to its warranty on the used parts itsells, offering complete indemnifica-tion to any repairer who properly in-stalls one of these parts for a job writtenby a licensed appraiser. Additionally,Folino challenged Starbards recent ex-perience with one of LKQs parts.

I dont think rust constitutes asafety issue, he insisted. The part youtook off the vehicle, chances are, wasrusty.

Interestingly, Folino noted that itwas not automatically LKQs job tothoroughly test the products it sells tothe collision repair industry.

Not every one of our customersrequires testing, he says There areplenty of people who use recycled suspension [items] day in and day outwithout testing. We test upon request;its an added service that we add. Tosay that you got a part that was [for] aself-paid [job] that wasnt tested...If youspecifically didnt ask, you didnt get ittested. Not everybody requires testingof the parts.

In addition to suggesting that notall used parts suppliers guarantee their

by Joel Gausten

ADALB ISSUES ADvISORYRULINg ON USED PARTS


products to the same extent as LKQ,Massachusetts shop owner Peter Lan-gone (Langonet Auto Body & Frame,Agawan) presented photographs to theBoard of a frame that an insurer pur-chased from a junkyard for use in avehicle at his shop. He stated that he re-fused to perform the repair with thisitem due to concerns over its quality.

The times to repair this stuff rightnow, just with doors and stuff fromjunkyards, [are] absolutely ridiculous,he said. Cars sit for days and days.Parts come from LKQ, [and] theyre notany good. You wait for the insurancecompany to come back out on it, andits three days, three days, threedays...Its absolutely getting ridiculousto fix a car and try to make money onit.

Ultimately, the Board voted unani-mously to pass a slightly revised ver-sion of Johnsons Advisory Ruling thatincorporated minor changes suggestedby ADALB Legal Counsel Michael D.Powers. The text of Advisory Ruling2015-1 (also available online attinyurl.com/nbtvzru) appears at right:

The Auto Damage Appraiser LicensingBoard has passed a motion agreeing that anappraisal conducted by a licensed appraiserneeds to follow 212 CMR 2.04 (e), whichstates in part: The appraiser shall deter-mine which parts are to be used in the re-pair process in accordance with 211 CMR133.00. The appraiser shall itemize the costof all parts, labor, materials and necessaryprocedures required to restore the vehicle topre-accident condition and shall total suchitems. 212 CMR 2.04 (e) also states: Theappraisers representing the insurance com-pany and the registered repair shop selectedby the insured to do the repair shall attemptto agree on the estimated cost for such re-pairs As such, all costs associated with theappraisal shall be negotiated.

One of the items referenced in 212 CMR2.04 (e) is parts; the ADALB also recog-nizes the use of used parts is allowed as ref-erenced in 211 CMR 133.04 (2). TheADALB wants to stress that 211 CMR133.00 and 212 CMR 2.00 need to be readin [their] entirety. 211 CMR 133.04 (3)(c)statesthe repair will not impair the opera-tional safety of the motor vehicle. TheADALB is concerned that the use of used

parts that contain wear items, in certaincircumstances, may violate 211 CMR133.04 (3)(c). We want to further note thatthe insurance company will be responsibleand liable for the use of used parts it man-dates. Please note 211 CMR 133.04 (2)states: If the repairer uses the source andspecified part(s) indicated on the appraisaland these parts are later determined by bothparties to be unfit for use in the repair, theinsurance company shall be responsible forthe costs of restoring the parts to usablecondition.

Further, 212 CMR 2.04 (e) mandates allitemized components and all such costs as-sociated with the appraisal shall be negoti-ated. As such, the use of used parts needs tobe negotiated by the appraisers. TheADALB strongly advises that used partsthat would impact the operational safety ofthe motor vehicle should not be used andcomplete negotiations should occur as man-dated. This Advisory Ruling shall be effec-tive upon posting on the Auto DamageAppraiser Licensing Board public website.Failure to comply with this ruling could re-sult in fines and penalties as provided for bylaw.

MASSACHUSETTS



LOCAL NEWS

The push against unregistered collision repair shops in theCommonwealth has landed one auto insurance carrier in hotwater with the Attorney General.

On September 24, Massachusetts Attorney General MauraHealey announced that Encompass Insurance Company, a sub-sidiary of Allstate, had agreed to pay for the correction of faultyrepair work performed on motor vehicles brought to unregisteredbody shops. The AGs Office revealed that Encompass failed toverify the body shops certifications and paid unregistered facili-ties for repairs made to its policyholders vehicles on numerousoccasions.

According to an official statement issued by the Attorney Gen-eral, insurers are prohibited from paying body shops directly forrepairs made pursuant to their collision and comprehensive cover-ages unless that shop represents that it is registered with the stateand complies with Massachusetts laws. The law protects con-sumers who may not be able to determine whether a repair shopthey brought their vehicle to is properly registered and insured.All body shops conducting business in Massachusetts must be reg-istered with the state and comply with certain training and safetystandards. If not, they may be shut down or be subject to penaltiesby the Division of Standards.

The AGs Office began its investigation following a complaintfrom a consumer who unsuspectingly brought her damaged vehi-cle to an unregistered shop that failed to perform the correct re-pairs. Although Encompass directly paid the unregistered shop$4,500 for work that the AG says left the customer with a still-un-safe vehicle, the insurer did not provide its policyholder with anyadditional funds to have the vehicle subsequently repaired in acorrect manner at a registered facility.

In light of the AGs findings, Encompass has agreed to:

pay $25,000 to the state;train its staff regularly on this issue and maintain a regularly

updated list of registered shops; andsend notices to consumers who may be affected and have

the right to get their vehicle inspected.

The AGs Office credits Assistant Attorney General MonicaBrookman, the deputy division chief of the Insurance and Finan-cial Services Division, for handling the case with assistance fromDivision staff members Michael Beaulieu and Rebecca Dutra.

MASSACHUSETTS


Allstate Subsidiary CaughtUsing Unregistered Shopsin MA

As 2015 winds down, Volkswagen finds itselfembroiled in one of the biggest scandals in auto-motive history.

In September, the US Environmental Protec-tion Agency revealed that the automaker falsifiedpollution tests on 500,000 diesel-engine vehicles inthe US. As noted in numerous mainstreamsources including a September 29 online report byCNN, VW installed software (defeat devices) tomake these automobiles appear cleaner than theywere when being tested. As a result, vehicles hadthe potential of releasing as much as 40 times theallowed level of nitrogen oxides when driven. Atpress time, it was estimated that at least 11 millionVW cars have been affected worldwide. The iden-tified US models include the VW Jetta, Beetle andGolf (2009-2015); the Audi A3 (2009-2015); and thePassat (2014-2015). As this issue went to press,Volkswagen was expected to be hit with fines to-taling in excess of $18 billion, while the companyhas suspended sales amidst a call to recall 500,000cars in America.

The emissions debacle comes at a time of al-ready-strained relations between the manufac-turer and its 600-plus American dealers. In aSeptember 30 report by the New York Times, Volk-swagen National Dealer Advisory Council Chair-man Alan Brown voiced his discontent over theautomakers actions.

The recent events unfolding globally regard-ing the diesel scandal have hit the dealers in theUS extremely hard, he said. We have been suf-fering from an outdated product cycle, overpricedproduct and a deteriorating relationship betweenthe dealer body and Volkswagen for a number ofyears.

On September 23, Volkswagen CEO MartinWinterkorn resigned from the company amidst afraud investigation by German prosecutors. Hewas replaced by Matthias Mller, who has servedas CEO of Volkswagen subsidiary Porsche since2010.

VW Faces Recalls, Billions in Fines overEmissions Scandal

MASSACHUSETTS


NATIONAL NEWS


On September 22, AASP/MA submitted importantwritten testimony to the Massachusetts Joint Committeeon Consumer Protection and Professional Licensure insupport of Senate Bill 134, an Act Relative to Warranties.

This legislation will protect consumers, generally,and the value of motor vehicles, specifically, wroteAASP/MA Executive Director Jillian Zywien in the textsubmitted to the Committee, co-chaired by Representa-tive Jennifer E. Benson (D - Lunenburg) and Senator Bar-bara LItalien (D - Andover).

Senate Bill 134 would prevent a dealer or repair shopfrom taking any action in a repair that would void a ve-hicles existing warranty. Although some may be led tobelieve that this would be covered under the Magnuson-Moss Warranty Act, that particular piece of legislationonly prevents companies from voiding a warranty ordenying coverage for the use of an aftermarket part.However, if the use of such a part causes damage to an-other part of the vehicle that is under warranty, coveragemay be denied by the manufacturer or dealer. Many vehicle owners are unaware of this fact.

Zywien believes that this will eliminate a number ofcomplications for the consumer.

The legislation addresses the Catch-22 consumerscurrently face where standard automobile insurancepolicies conflict with, and potentially void, standard

motor vehicle warranties, she writes in the testimony.Repairs made with parts from the original equipmentmanufacturer [OEM] tend to reduce the cycle time a ve-hicle spends at an auto body repair shop because thoseparts are designed and tested for use on the particularvehicle subject to repair[A]ftermarket parts often re-quire multiple install attempts.

If a registered repair shop installs an aftermarketpart, as required by the insurer, that may impact anotherof the vehicles parts or systems, the manufacturer hasthe right to reject payment for the repairs, she adds inthe testimony. This then causes the consumer to incurout-of-pocket expenses not otherwise covered by the in-surer or the motor vehicles warranty.

When the issue is boiled down, Zywien believes themost important thing is prioritizing the customerssafety.

For AASP/MA, this is an issue about protectingconsumers, she says to New England Automotive Report.A motor vehicle is one of the most expensive items aconsumer will ever purchase. As such, we have workedto educate legislators about the need to protect themfrom any action that will reduce the safety or value oftheir motor vehicles. Our hope is that this legislation willbe another safeguard for protecting the interests of thegeneral public.

This is just one example of the ways AASP/MA isworking to fight for the automotive repair industrythrough legislation. For more information on these initia-tives, contact an AASP/MA Board member or call the association directly at (617) 574-0741.

FIgHTINgFOR THECONSUMER:AASP/MASubmits WrittenTestimony on Senate Bill 134

LOCAL NEWS

MASSACHUSETTS


by Jacquelyn Bauman

The collision industrys ongoing efforts to challengeauto insurers through Multidistrict Litigation (MDL) havesuffered a potentially fatal blow.

Despite being filed by 20 Florida body shops against 39auto insurance carriers, the second amended complaint inA&E Auto Body, Inc., et al. v. 21st Century Centennial Insur-ance Company, et al. - the first-filed action in an MDL caseinvolving two dozen suits - was put to rest on September23 by US District Judge Gregory A. Presnell. In his order,Judge Presnell dismissed the amended complaints fourclaims price-fixing in violation of the Sherman Act, boy-cott in violation of the Sherman Act, quantum meruit andtortious interference with business relations with preju-dice, meaning that the plaintiffs would not be given an-other opportunity to re-file.

This is the plaintiffs third arduous attempt to state aclaim, Judge Presnell wrote. The problems identified inresponse to their initial complaint shotgun pleading,vagueness and implausibility have persisted in their sub-sequent efforts. Based upon a review of the pleadings in

this and the other 20-odd cases [in theMDL] almost all of

which share the same shortcomings the Court finds thatgiving the plaintiffs another opportunity to state a claimwould be an exercise in futility. Despite becoming muchwordier, the plaintiffs pleadings have not come remotelyclose to satisfying the minimum pleading requirements asto any of the claims asserted. Accordingly, all four claimswill be dismissed with prejudice.

Additionally, Judge Presnell noted that the plaintiffshad continually struggled to properly explain their claimsagainst insurers for wrongdoings:

At the outset, it should be noted that the plaintiffs have failed toindicate which assertions in the second amended complaint areintended to support which of their claims. None of the fourcounts explicitly incorporate any of the factual assertions setforth in the pleading. Instead, the plaintiffs 70 pages of Factsare simply followed by 17 pages of Causes of Action, leaving itup to the reader to divine which allegations the plaintiffs believeto be relevant to any particular claim.

Originally filed in February 2014, the A&E case was ini-tially dismissed on June 11, 2014 on the grounds that it was(according to court documents) a prohibited shotgunpleading, that it failed to properly set forth the basis for[the] Courts jurisdiction, that it failed to identify whichparties had ongoing contracts with one another and that allof the allegations of wrongdoing were attributed, collec-tively, to every defendant, even where such collective attri-bution made no sense.

An amended complaint (containing two Sherman Actclaims and five state law claims) was filed on June 28, 2014.In January of this year, one of the state law claims was dis-missed with prejudice, while the remaining claims (stateand federal) were dismissed without prejudice. The plain-tiffs filed the second amended complaint in February 2015.It was unclear at press time whether other cases involved

in the MDL (most of which are being represented by theEaves Law Firm in Jackson, MS) would suffer the

same fate as the A&E suit.

NATIONAL NEWS

Claims Dismissedin MAjOR Multidistrict Suit

by Joel Gausten


MASSACHUSETTS


Continued Success for

Profitable and successful members of AASP/MA arelikely more than familiar with Balise Wholesale Parts Ex-press. The companys name is often branded across signs atassociation events, in brochures at these gatherings and inNew England Automotive Report. As a frequent sponsor andmajor supporter of a number of popular association eventsincluding Casino Night, Balise Wholesale Parts Expressname is engrained in everyday shop discussions through-out the Commonwealth.

Providing OEM parts from nine automakers and 13brands, Balise Wholesale Parts Express supplies the indus-try with products from over 22 locations. They boast awide delivery radius that includes Massachusetts, Con-necticut and Rhode Island, which explains why they haveexperienced consistent positive growth throughout theyears. In times of economic downturns that have seenother parts operations struggle, Balise Wholesale Parts Express has only experienced an upward trend in theirsales and they expect 2016 to be their best year yet.

There are a number of reasons for Balise WholesaleParts Express success, including their knowledgeable salesteam determined to provide exceptional customer service.Within their call center, there are multiple experts for eachof the automakers they offer. This means that any questionswill be directed to the individual who knows the mostabout the product they are supplying and can best directthe customer to a resolution.

Additionally, Balise Wholesale Parts Express works onan easy to use system by allowing customers to place anelectronic order through three parts systems (Collision-Link, Auto PartsBridge and OPSTRAX), phone in to the callcenter, send a fax or even email their request. No matterhow the order is placed, Balise Wholesale Parts Express re-quires the VIN of the vehicle receiving the parts to identifyand correctly supply the products ordered by the customer.They will always try to price match in order to supplymore OEM parts and make sure that the customer willwork with high-quality materials.

Balise Wholesale Parts Express success can also be attributed to their efficient logistics. A major difference between Balise Wholesale Parts Express and other partsoperations is a later order cutoff time. Customers can ordera part late in the day and more often than not will receive itthe next day. Balise Wholesale Parts Express ships orderstwice a day and keeps wholesale parts salesmen on theroad in order to guarantee a superior customer experience.

Lastly, their investment in their ever-expanding inven-tory helps set Balise Wholesale Parts Express apart in thewholesale field. As part of an OEM dealer group, they be-lieve they have the latest and greatest in terms of productchanges, repeatedly staying ahead of the curve in a con-stantly evolving industry. Balise Wholesale Parts Express isworking to be stronger, bigger and better every day.

Balise Wholesale Parts Express is open Monday through Friday from 7:30am to 5pm. To contact, call (413) 233-2185 (Western Massand Connecticut), (508) 957-6399 (Eastern Massand Cape Cod) or (401) 780-3099 (Rhode Island).E-mail wparts@balise auto.com, fax (800) 254-3544 or visit them online at baliseauto.com.

VENDOR SPOTLIGHT

Clockwise from top: The Balise Wholesale Parts Express team from Western Massachusetts, Cape Cod andRhode Island.

MASSACHUSETTS




ThE DTP ConCEPTMotor vehicle insurance policies are contracts between

insurers and their insureds usually vehicle owners orlessees. There may be additional insured parties listed onthe policy as well, such as a finance company holding a se-curity interest in the vehicle or a lessor who actually ownsthe vehicle. If there is a covered loss to the vehicle, then theinsurer is obligated to make payments for the loss to theparties named on the policy and only to those parties.

Collision repair shops are not parties to their cus-tomers insurance policies. In fact, the standard Massachu-setts policy specifically says that it is not to benefit anyonein the repair business. A repair shop is not a named in-sured, and there is no inherent or contractual right for it tobe paid for its services directly from the customers insurer.

On the other hand, there are benefits to all parties in-volved if an insurer makes claim payments directly to theinsureds repair facility. Collision repair shops have an in-terest in getting paid as soon as possible for the work thatthey do. They do not want to wait around for the customerto get paid on a claim and then endorse the payment checkover to them, or deposit the check into his or her accountbefore writing a personal check to them. Plus, a repair shopmay have concerns that a customer who gets a claim pay-ment check will use the funds for other purposes while the

facility is left storing the car on its premises, waiting andhoping for eventual payment.

Because repair shops can enforce their garagekeeperslien and keep a repaired vehicle until they get paid, thereare advantages to the vehicle owners and their insurancecompanies if an insurer can pay a shop directly for repairs.Customers get their cars back quicker, and insurers canminimize their substitute transportation coverage costs.Every day sooner that a repair shop gets paid for its workis a day less that the insurer has to pay for a rental car.

While there has never been anything preventing an in-sured from assigning his or her right to a claim payment tothe repair shop, there has traditionally been a concernabout the enforceability and standardization of such an as-signment. In response to these concerns, the right of an in-sured to direct his or her insurer to make a claim paymentto the repair shop has been specifically addressed in Mas-sachusetts insurance statutes and regulations. The Massa-chusetts statute regarding collision coverage says, Theinsurer shall pay either to the insured or to a repair shop ifthe insured so indicates in writing to his insurance company fordirect and accidental loss of or damage to the insuredmotor vehicle (Emphasis added.) The regulations governing so-called Direct Payment Plans provide, with regard to payments for supplemental damage agreed to by

LEGAL PERSPECTIVE

THE COMMERCE DTP ACkNOWLEDgMENTA collision repair shop owner recently emailed me a document to review that I had not seen

before. It is a form from MAPFRE/Commerce, entitled Acknowledgment of Direction to Pay.Upon examining the form, it appeared to me that it had some good aspects, but also that it

contained one part that seemed bizarre and which could violate Massachusetts law.by James A. Castleman, Esq.


insurers, that [t]he claimant may direct the insurer tomake any supplemental payment to the repair shop, pro-vided the repair shop is registered under M.G.L. c. 100A.

As a result, a system has developed over the years forcustomers to be able to sign a Direction to Pay (some-times referred to as a DTP) instructing their insurer tomake claim payments for repair work directly to their re-pairer. While it is not perfect, the system usually workswell for all involved parties. While the statute only appliesto collision losses and the regulation only applies to sup-plemental payments on collision and comprehensivelosses, insurers almost universally recognize DTPs for ini-tial and supplemental payments on collision, comprehen-sive and even third-party losses.

ThE PoSITIvES of ThE CoMMERCE foRMThere are some great parts to the MAPFRE/Commerce

Acknowledgment of Direction to Pay form. In fact, it ad-dresses and solves some of the most common and difficultproblems with the DTP system.

The form initially acknowledges that Commerce hasreceived a DTP from the shop. This in and of itself helpsthat facility, since it provides an actual record of receipt ofthe DTP by Commerce. The form goes on to confirm thatthere is insurance coverage for the loss. This is a majorplus, since the shop has no other way of knowing that theinsurer is going to pay the claim. If the shop is going to re-lease a customers vehicle before it gets paid in full, then itshould be able to feel some degree of security that paymentwill actually be received. The form goes even further,specifically assuring the shop that Commerce is going tomake payment directly to it although subject to the ap-plicable deductible and confirmation that appraised repairsare related to the covered loss.

The form then addresses other issues that may be ofconcern to the shop. It specifies the applicable deductibleand/or whether it is going to be waived so that the shopknows whether or not to charge the customer directly. Theform also discloses whether the insured has rental car cov-erage, which can allow the repair shop to schedule the job.It can also protect the facility if it or an affiliate is supplyinga rental car. Finally, the form discloses how much has al-ready been paid on the claim and to whom prior paymentshave been made, i.e. to the customer or to the shop. Again,this allows the shop to know how much to directly chargethe customer for repairs.

ThE nEGATIvES of ThE CoMMERCE foRMWhile Commerce should be lauded for some aspects of

its Acknowledgment of Direction to Pay form, it is myopinion that it should also be taken to task for the badparts.

In particular, I am concerned by two sentences in theform, which say, The Commerce Insurance Company ac-cepts this Direction to Pay as an indication that your repairfacility will complete all repairs to this vehicle in accor-dance with the appraisal. Refunds for any repairs not com-pleted should be made to The Commerce InsuranceCompany, not to the owner of the vehicle.

The problem with this portion of the form is that therepair shop has no contractual obligation to Commerce(and no statutory or regulatory obligation) to make repairsto a vehicle in accordance with the insurers appraisal. Re-member that the shop is not an insured under its cus-tomers auto insurance policy. On the other hand, the shopdoes have a strict contractual obligation to its customer andis governed by applicable Massachusetts law in regard tothat relationship.

Under the contract for repair (and under consumerprotection regulations issued by the Massachusetts Attor-ney General), the repair shop is obligated to make repairsto its customers vehicle in accordance with whatever thecustomer has authorized, and only in accordance with thatauthorization. Regardless of what the insurers appraiserhas written on his or her appraisal (and no matter what repairs may have been authorized or specified by the insurer), the shop is bound by its own appraisal and cus-tomer authorization not by Commerces appraisal or authorization. If the shop does not abide by the customersinstructions, then the shop has committed a per se violationof the Massachusetts Consumer Protection Act and madeitself potentially liable for treble damages and attorneysfees if the customer sues it for not doing what it was supposed to do.

Further, an insurer is obligated under its contract (andunder applicable statutes and regulations) to pay the in-sured for the full amount of a covered vehicle damage lossin all instances (subject, of course, to the applicable de-ductible). The customer has absolutely no obligation what-soever to make any of the repairs appraised by the insurer,or to have repairs made in the manner appraised by the in-surer. An insured cannot certify to the insurer that repairswere made if they were not. An insurer has the right to


reduce the insureds actual cash valueof the vehicle by the amount of re-pairs that it paid for but which werenot made, yet the insurer still has topay the full amount due for what re-pairs would be needed to return thecar to pre-loss condition even if thecustomer then chooses to use theclaim payment at the blackjack tablesat Foxwoods.

If an insurer has made a claimpayment for a certain amount directlyto a repair shop under a DTP, the in-surer has made a determination,through its licensed appraiser, thatthe full amount of those funds isneeded to pay for the reasonable costof repairs that will return the car to

LEGAL PERSPECTIVE

pre-loss condition. Whether or notthose repairs are made (or whether therepair shop may choose to charge lessfor repairs than the insurer has paid),the insurer is still obligated to makethe payment that it has authorized. Iffull repairs are not made (or if thereare excess funds for any other reason),those funds belong to the insured theshops customer not to the insurer.There is no obligation to refund the ex-cess funds to the insurer, and it wouldappear to violate both the shops con-tract with its customer and Massachu-setts consumer and insurance laws forthe shop to do so.

In other words, it appears to methat the objectionable language in theCommerce Acknowledgment form vi-olates Massachusetts law (as well asCommerces insurance contract withits policyholder), and that the citedlanguage may well be unenforceableand against public policy.

A fInAL WoRD To CoMMERCEREfERRAL ShoPS

In many instances, general re-quirements applicable to the autodamage insurance claim payment sys-tem can be legally changed by an in-surers contract with its referral repairshops. That is why an insurer may beable to limit its liability to its referralshops for things like the Labor Rate itmay be required to pay, the maximumstorage time for which it will pay fortotaled vehicles or perhaps how it de-termines paint and materials reim-bursements. The objectionable languagein the Commerce DTP Acknowledgmentform is not one of those things. Theforms language addresses the shopscontractual and legal obligations to its customer something that, in my

opinion, cannot be changed by a referral shop contract. If you are aCommerce referral repair shop, itmay be advisable to consult withyour own attorney as to how to address this issue.


MASSACHUSETTS


Attorney James Castlemanis a managing member

of Paster, Rice &Castleman,LLC in Quincy, MA. He can be reached at

(617) 472-3424 orat jcastleman@

prclawoffice.com.

COVER STORY

by Jacquelyn Bauman


On July 5, 2014, Donald Ibey ofBarre, VT was driving his 1992Chevrolet Corsica when, accordingto police reports, he heard a pop.The sedan went out of control downa steep hill and crashed, killingIbeys wife, Elizabeth.

Just two months earlier, Vermontmechanic Steven Jalbert had passedthe vehicle, posting an inspectionsticker on it after it drove into hisfamilys Barre-based business, A.J.sSunoco. A post-crash inspection ofthe vehicle uncovered extensive ruston the rocker panels that, accordingto DMV Lieutenant Tim Charland ina court affidavit, would mostlikely have been present when thecar was brought in to be inspected,as the Corsica had only traveled 383miles since its visit with Jalbert.

As a result, Jalbert was broughtup on charges of involuntarymanslaughter and reckless endanger-ment. He is currently awaiting trial.

The case shook shop owner MikeParker of Parkers Classic AutoWorks in Rutland, VT, who is wellknown in the AASP/MA communityfor his legal proceedings fighting in-surance companies on short-pays.(The most recent NEAR article detail-ing one of Parkers cases can befound in the April 2015 issue [VTShop Wins $53K Assignment of Pro-ceeds Suit].)

It surprised me to hear that thiscase was criminal as opposed tocivil, Parker says. But now thatthis has happened, it has opened upa whole new avenue. Theres a po-tential precedent to be set nowthroughout the US. Theres a lot ofthings you can do to get fined orsued for, but when a death results, itputs the case in a whole differentarea.

Parker is concerned not only forthe impact this case may have on in-spectors, but on collision repairers aswell.

LIABILITY:WHEREDO YOUSTAND?


When you put this same issueinto the collision industry, its com-parable to putting on a recondi-tioned wheel or using usedsuspension, except we would beheld even more responsible becausewe are the installer, he says.

Parker tells New England Auto-motive Report that he is experiencinga similar issue in his own shop re-garding a struggle to get an insur-ance company to pay for an OEMupper tie bar. According to him, hisshop never installs aftermarketstructural parts; if a customers in-surance company refuses to write forOE, he or she must pay the differ-ence. In this case, the customerfought the insurer to pay the $8 dif-ference for an OEM upper tie barversus its aftermarket version. Thecompany put the burden of proof onParker, insisting that he must showthat the aftermarket piece was not oflike kind and quality in order forthem to pay for the OEM part.

This is a safety issue; this is astructural part. I want to ask the in-surance companies how they cansleep at night, he expresses. If abody shop is foolish enough to putthese parts on a car, theyre going tobe liable for them. You are the in-staller. You are the collision expert.Its up to you. This case here is po-tentially setting a precedent and willhurt some collision shop that doesntknow the difference. Shops put usedsuspensions on a car and they thinkits never going to happen to them. Itonly has to happen one time.

The reverberations of the Jalbertcase are also being felt here in theCommonwealth. Massachusetts-based lawyer James Castleman(Paster, Rice and Castleman)weighed in on the situation and theeffects it could possibly have on theMassachusetts automotive industry.

It certainly is an unusual situa-tion to charge someone criminally

for this, he explains. To show in-voluntary manslaughter, you have toprove beyond a reasonable doubt a reckless disregard for the conse-quences. This is a very difficultthing; if he had been sued for mone-tary damages, it would be a mucheasier case to make. The standard toprove reckless disregard is muchhigher.

While a guilty verdict in a civilcase for monetary damages may becovered by liability insurance insome circumstances, a criminal pros-ecution such as this obviously bearsa much heavier penalty. If convicted,Jalbert faces up to 16 years behindbars.

People doing inspections needto be aware of what their liabilitycould be, Castleman says.

There are also some unforeseencomplications for Massachusetts ap-praisers and repairers that add anextra level of liability.

In Massachusetts, its the lawfor an appraiser who encounters avehicle that does not pass inspectionto remove the inspection stickerfrom the windshield, Castlemannotes. If an appraiser does not doso, he or she is flouting the law. Ifthat vehicle gets in a subsequent ac-cident with the sticker still intact,then the appraiser may well be liable.

Castleman notes that anotherstate law the requirement forshops to warranty the parts they in-stall on a customers vehicle makes the liability situation evenstickier.

The first thing to understand isthat the insurer never mandates thata particular part be used by a shop;they only tell you what it is theyregoing to pay for, he says. Clearly,if a repairer makes a repair withparts he or she believes to be inferior,theres the significant potential forthe shop to be sued. As I mentioned

before, in the criminal case in Ver-mont, reckless disregard must beproved beyond a reasonable doubtto charge someone with involuntarymanslaughter. If a repair is madewith inferior parts that the [techni-cian] recognizes are subpar and anaccident results from the failure ofone of these parts, there is the poten-tial for criminal action if it can beshown that the technician acted withreckless disregard for the conse-quences of using those parts.

While the possibility for thesesevere ramifications exists, Castle-man does not believe that an abnor-mal amount of worry is warrantedfrom repairers in Massachusetts.

Despite all of this, I think themuch greater liability is being suedmonetarily, he offers.

One of the local industrys mostvocal shop owners, AASP/MA Sec-retary Gary Cloutier had much tosay about this case and its shadowon the Massachusetts repair commu-nity.

Even though the case dealtwith an inspection station, no matterwhat, in the grand scheme of things,you should never let a vehicle go outof your shop if its not in good con-dition, he opines. As a repairer, Iam not willing to put my customerslives, my business, my livelihood ormy license on the line because an in-surance company wouldnt pay anextra $50 for a part. Im the cus-tomers best advocate; its my job tolook for things that are wrong. I treatthe car like its my mothers car,every time.

Despite how thorough Cloutieris in investigating the damage on avehicle, he always makes sure totake extra precautions in the case ofa legal proceeding. He provides theexample of a recent customer whosevehicle was written for a hood latch assembly. As the hood latch assembly was not in bad shape,

Cloutier refunded the customer the money, had the cus-tomer sign and date a form, gave the customer a copy ofthat form and kept one for himself. This level of meticu-lous documentation is a precaution that he insists mustbe taken.

If his hood opens up, I can show that he didntwant it fixed, he explains. I try to cover my butt in allsituations so that no one can say that Ive committedfraud. You have to take a proactive approach to this be-cause everyone is so sue happy these days.

In regard to who is liable for repairs, Parker urgesshops to remember their position in the contract betweenthe insurer and the consumer.

The only way an insurer has a right to dictate how arepair is made is if they choose to repair the car them-selves, Parker explains. However, this would make theinsurer liable for the repairs, so instead they settle inmoney with the vehicle owner. In 1964, there was a casein Alabama against State Farm [State Farm Mutual Auto-mobile v. Dodd] where State Farm was found liable forwrongful death after the suspension snapped in a vehiclethat they had elected to repair. Thats when everythingchanged. In order to avoid liability, they allow the


COVER STORY

continued on pg. 58

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Its here. how prepared are we?Its been almost a year since aluminum hit the market

like never before in the form of one of the nations most pop-ular automobiles, the 2015 Ford F-150. As a result, many arelooking at the impact this has had on the industry. With all ofthe hype and information swirling around for the past 12months, it is interesting to take a step back and look at the re-sulting trends that have affected the field.

Aluminum is on the road, and perhaps it has alreadybeen in a shop in your area. So what has been the response?Unfortunately, according to a number of industry experts, theresults are disappointing.

According to Assured Performances Advanced RepairCapable Certified Shop Locator (available at certifiedbodyshop.info/insured), out of 15 Assured Performance recog-nized aluminum-capable repair shops in Massachusetts, onlythree are Ford Aluminum Certified.

Even though I-CARs 2015 Ford F-150 class (FOR06) wasthe most popular course in 2014, I-CAR President and CEOJohn Van Alstyne revealed at the April Collision IndustryConference in Atlanta that only 34 percent of todays industrypartakes in available training.

Although there are numerous forms of training on themarket (including programs offered by various originalequipment manufacturers), Mark Allen, collision programsand workshop equipment specialist at Audi of America,warns that being certified to do repairs on one OEMs aluminum-intensive vehicles doesnt mean that one is

qualified for all aluminum repairs. The introduction of the 2015 Ford

F-150 has raised interest in the Audi alu-minum certification program because

we have a reputation for havingdone the training for a long time,

he says. I applaud efforts likethose, but one brand doesnt neces-

sarily apply to another brand.This confusion over

where to turn for trainingis a problem on which

Allen blames the overdoseof information flooding the

market.

Equipment manufacturers are saying this, OEMs aresaying that and repairers are saying something completelydifferent, he observes. The industry is getting a lot of mixedmessages. There are a lot of people trying to do the right thingby getting the information out there, but its not united,which is where I think we need to do better. People dont real-ize that there are so many different types of aluminum, asmany as there are steel [and] as many as there are carbonfiber. You cant throw an agnostic blanket of knowledge outthere. Its not right. There are specific things OEMs do withtheir cars and with their design qualities based on the materi-als theyre using. You have to follow those specific repair pro-cedures. The problem is, the industry is in the dark aboutwhere to find the information and how to follow it.

While many in the industry are disappointed with theoverall national reaction to aluminum, the response closer tohome is starting to pick up. One of Massachusetts most popular equipment providers, Kevin Lombard of LombardEquipment, Inc., believes that the introduction of aluminumrepresents a new era for the collision repairer.

Theres been a big change in the overall attitude of mycustomers, he explains. A lot of shops are excited about thenew changes. I went to three seminars this weekend aboutaluminum, and each one of them had over 100 people there.This has pushed shops to look at their business, get tested, getcertified and step up to do better work.

For shops that are interested in becoming aluminum certified but who are unsure how to start, Allen suggests beginning with a bit of reflection.

As with most self-improvement, the answers on whereto begin have to come from within, he says. Shops need tolook at their core; they need to examine what cars they repairand the level of training they currently have. Based on the re-cently released I-CAR figures, the first move for a lot of shopsshould be to get involved in training. I suggest taking an ASEtest as an evaluation; it might be humbling, but it will pointout the areas of necessary growth. Failure isnt negative itswhere you can improve. Once you get the training, then youlook into equipment and tooling. At that point, youll be moreguided and more likely to make the right choices.

When it comes to the first investments, if a shop wantsto be conservative, they should start with basic things like analuminum dent pulling system, says Lombard. If a panelcomes in with a dent, they can start by just working with thepulling system. If they want to move forward, my next sug-gestion is usually a pulse aluminum welder. The move to alu-minum doesnt have to happen all at once, and this is a verypalatable way to start. This isnt just a passing phase.

An AluminumRetrospective:Where Are We Now?

MASSACHUSETTS


EQUIPMENT AND TOOLING


by Jacquelyn Bauman

Not many people buy their first car at12 years old. But for Medford-based shopowner Alan LaRose (A&P Collision Cen-ter, Medford, MA), its the reason he iswhere he is today.

Tinkering around on that 1964Pontiac LeMans started out as a hobbyfor LaRose, but it quickly became apassion. He turned his love of carsinto a career when he started as a serv-ice advisor at a Volvo dealership,eventually working his way up toservice manager.

I had thought about opening upmy own shop for a while, LaRosesays of his decision to leave workingfor someone else behind. When Ifound a good location, I decided togive it a try.

In 2010, A&P Collision Centeropened its doors for the first time. Theshop services drivers within a 30-mileradius and prides itself on following acustomer service-focused businessmodel, a philosophy that helped itgrow from a 3,800-square-foot shop to7,600 square feet this past September.

My favorite thing about the workthat I do is trying to help people outafter theyve had an accident, LaRoseexplains. When theyre upset andlooking at their damaged car, I tellthem well return it better than what itlooked like before the accident. Wecalm them down and make them feelbetter. When they see the car at theend, they always appreciate it.

I think its more than likely ourcustomer service that sets us apartfrom other shops, he continues. Ibend over backwards for my cus-tomers. The happier they are, the morerecommendations you get.

He credits this dedication to cus-tomer service to Andy Ioakim ofHogan & Van Auto Body (with whomhe worked for a few years before start-ing his own business) and past em-ployer Kris Ogonowsky of MaacoCollision Repair in Somerville.

Although LaRose has found suc-cess through his customer-minded ap-proach, he is finding business growthdifficult due to the inability to get new

life into the industry. After looking fora new employee to add to his six-per-son team for over a year, he hasstarted to become frustrated.

Finding personnel is the biggestchallenge, he admits. People dontwant to get into this industry if youcan make the same money sitting behind a desk and you dont have toget dirty.

It is for this reason and more thatLaRose recently joined AASP/MA.Having worked for a number of mem-ber shops in the past (as well as main-taining a close relationship with theIoakims), he is well aware of the bene-fits of being a member.

It helps a lot, he states. I see allof the different things going on withlaws and insurance companies. [Cur-rent AASP/MA Vice President] AdamIoakim has come here and explainedthings that the association is doing tohelp the industry. We need to geteveryone on the same page to fix thecars correctly and get new people intothis business.

LaRose believes these conditionswill improve within the next few yearsif the industry continues to work to-wards positive goals.

If we get the Labor Rate changedand work on enforcing some of thelaws that insurance companies shouldbe obeying but are disregarding, Ihope we can get things in this indus-try straightened out, he expresses.

As for his day-to-day business,LaRose adheres to a simple philoso-phy for success.

Be proud of your work and standbehind it, he says. Do what youresupposed to do to repair the car properly and keep your customer satisfied.

A&P COLLISION CENTERAASP/MA MEMBER SHOP SPOTLIGHT

MASSACHUSETTS



by Jacquelyn Bauman

A&P Collision Center is proud of their new 7,600-square-foot facility.

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the associations bylaws and code ofethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions,logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

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(3#s on back for Visa, 4 on front for AMEX)

*Additional authorization form needed. Please contact AASP/MA Office.



AP Media ........................................................40Audi Group ....................................................20Audi Shrewsbury ..........................................55Axalta Coating Systems ..................................4Bald Hill Chrysler Jeep Dodge Ram..............8Balise Wholesale Parts Express ....................35Baystate Chrysler/Jeep/Dodge ..................49Bernardi Group ........................................30-31Best Chevrolet/Best CDJR..........................IFCBMW Group ..............................................24-25BMW/Mini of Warwick ................................17Clay Subaru ....................................................49Colonial Auto Group ....................................29Empire Auto Parts..........................................40Enterprise ..........................................................9First Chrysler-Dodge-Jeep-Ram ..................47First Ford ........................................................47First Hyundai..................................................47Ford Group ....................................................43Future Cure ....................................................41G&M New England LLC ..............................46Honda Group..................................................27Hyundai Group..............................................57Imperial Ford..................................................43Infiniti of Norwood........................................21Ira Group....................................................12-13Kelly Automotive Group............................IBCKia Group........................................................36Linders, Inc. ..................................................58Long Automotive Group ..........................OBCMazda Group..................................................11Mercedes-Benz of Shrewsbury ....................55Mopar Group..................................................37Nissan Group..................................................42PPG ....................................................................3Robertsons GMC Truck ................................46Sarat Ford Lincoln..........................................23Sentry Group ....................................................6Subaru Group............................................50-51Tasca Group ....................................................33Toyota Group..................................................54Village Auto Group........................................16VW Group ......................................................56Wagner BMW of Shrewsbury ......................55Wagner Kia of Shrewsbury ..........................55Wellesley Toyota/Scion ................................47

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continued from pg. 46customer to go to the shop of his orher choice. Its important for shops tobe aware of this.

Regardless of the ultimate impactthis case in Vermont will have on theMassachusetts repair industry, it isgood business practice to always beprepared for potential liability in yourline of work. Guard yourself with lia-bility insurance, be conscientious

about documentation and speak withlegal counsel as soon as possible inthe event of litigation. Additionally,being a member of AASP/MA pro-vides opportunities to learn aboutthis and many other topics regardinghow to protect yourself and yourbusiness, and also offers the networknecessary to answer any questionsyou may have.

MASSACHUSETTS


COVER STORY

Documents

New England Automotive Report November 2015