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SwAMped: www.grecopublishing.com AUT AUT M TIVE TIVE N E W N E W E N G L A N D E N G L A N D SeRviNG The New eNGlANd ColliSioN ANd MeChANiCAl RepAiR iNdUSTRy September 2014 U.S.A. $5.95 MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY The Good (and Bad) News About a Busy Repair Season

New England Automotive Report September 2014

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Official Publication of the Alliance Of Automotive Service Providers Massachusetts (AASP/MA)

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  • SwAMped:

    www.grecopublishing.com

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

    SeRviNG The New eNGlANd ColliSioN ANd MeChANiCAl RepAiR iNdUSTRy

    September 2014U.S.A. $5.95

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    The Good (and Bad)News About aBusy Repair Season

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  • 2 September 2014 New England Automotive Report

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  • New England Automotive Report September 2014 5

    DEPARTMENTS7 | Greco Publishing Names Alicia Figurelli Director of Sales

    PRESIDENTS MESSAGE8 | Frustration at the ADALB Continuesby Paul Hendricks

    LEGAL PERSPECTIVE16 | Get Out Your Window Glass Scrapers!by James A. Castleman, Esq.

    SEMA PREVIEW20 | SCRS Lines Up Robust SEMA Schedule

    NEWS FROM LEXUS24 | Luxury 2.0: Introducing the Lexus NX

    180BIZ FEATURE49 | Kick Fear to the Street!by Rick White

    PUBLISHERS MESSAGE55 | Behind Enemy Linesby Tom Greco

    CONTENTS

    10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR11 | AUGUST 6 ADALB MEETING REPORT12-13 | AASP/MA ANNUAL CASINO NIGHT NOTICE19 | AASP/MA SUSTAINING SPONSORS

    31 | FOR SALE: 1476 PURCHASE ST., NEW BEDFORD, MA61 | AASP/MA MEMBERSHIP APPLICATION62 | INDEX OF ADVERTISERS

    September 2014 Volume 12, No. 8

    ALSO THIS ISSUE

    34

    40

    FEATURES by Joel Gausten28 | National Issues Explored at Detroit Events

    34 | From Aluminum to Google: Changing Technologies Reshape the Industry

    40 | SWAMPED: The Good (and Bad) News Abouta Busy Repair Season

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

    STAFF

    EDITORJoel Gausten ([email protected])

    PUBLISHED BY: Thomas Greco Publishing, Inc.244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

    www.grecopublishing.com

    AASP/MA EXECUTIVE COMMITTEEPRESIDENTPaul HendricksVICE PRESIDENTMolly BrodeurSECRETARYGary CloutierACTING TREASURERMolly BrodeurIMMEDIATE PAST PRESIDENTRick Starbard

    AASP/MA STATEWIDE DIRECTORSCOLLISION DIVISION DIRECTORAdam IoakimASSOCIATE DIVISION DIRECTORDon Cushing

    AASP/MA CHAPTER DIRECTORSN/E CHAPTER COLLISION DIRECTORAlex FalzoneS/E CHAPTER COLLISION DIRECTORKevin GalleraniS/E CHAPTER MECHANICAL DIRECTORMichael PenachoMIDSTATE CHAPTER COLLISION DIRECTORTom RicciWESTERN CHAPTER COLLISION DIRECTORPeter LangoneWESTERN CHAPTER MECHANICAL DIRECTOREd Nalewanski

    PUBLISHERThomas Greco ([email protected])

    MANAGING EDITOR / DIRECTOR OF SALESAlicia Figurelli ([email protected])

    ART DIRECTORLea Velocci ([email protected])

    PRODUCTION Sofia Cabrera ([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

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    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 Eng-land 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 appearingin this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright 2014 by Thomas Greco Publishing, Inc. Images: Cover www.thinkstockphoto.com/Digital Vision,www.thinkstockphoto.com/Pixsooz; pg. 5, 34:www.thinkstockphoto.com/Oksana Kostyushko; pg. 17:www.thinkstockphoto.com/ThinkStock Photos.

    Thomas Greco PublishingInc., publishers of New JerseyAutomotive, New England Automotive Report, Hammer &Dolly, AASP-MN News andWisconsin Automotive News, has named Alicia Figurelli Director of Sales.

    Figurelli, the current vicepresident of the company, willbe adding all sales responsibili-ties for the companys publica-

    tions as well as booth sales forAASP/NJs NORTHEAST Automotive Trade Showand the NORTHEAST Conference Journal. A graduate ofSeton Hall University, Figurelli joined Greco Publishingin 2003 as an editor before gradually moving up to man-aging editor. She was named vice president in 2009. Aconstant for over a decade, Figurelli is a well-known fig-ure familiar with every facet of the industry, bringing experience from editorial, administration and manage-ment to go along with her sales abilities.

    Alicia Figurelli can be contacted at (973) 667-6922 / (973) 235-1963 (fax) or via email at [email protected]. To learn more about Greco Publishing, please visit www.grecopublishing.com.

    Alicia Figurelli

    Save the Dates forNORTHEAST 2015!MARCH 20, 21, 22WWW.AASPNJNORTHEAST.COM

    Proudly Presented by

    Greco publishing Names Alicia Figurelli director of Sales

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    PRESIDENTS MESSAGE

    FRUSTRATioNATTheAdAlBCoNTiNUeSIs anybody even paying attention, anymore?

    Let me begin this months message by saying no, this isnot a printing error. While the column youre about to readmay seem familiar, the truth is that Im simply continuingto voice the frustrations that Im sure many industry mem-bers are feeling at this moment, as the Auto Damage Ap-praisers Licensing Board (ADALB)is once again showingtheir failure to act with our best interests in mind.

    As you will read in Jillian Zywiens Executive Direc-tors Message as well as this months ADALBMeeting Re-port, I am disheartened to note that an attempt to revisitthe digital imaging issue has once again been dismissed.Tom McClements (one of two ADALB Board members rep-resenting the collision repair industry)called into questionthe May 20 Advisory Ruling, which served to consider pho-tos and videos as suitable for personal inspection in the ap-praisal process. For obvious reasons, AASP/MA isconcerned by this decision, as it not only leaves the ques-tion of quality up for interpretation (since a repairersidea of a quality image and an appraisers may varygreatly), but also flies into the face of regulations that havebeen in existence for more than 30 years. Unfortunately, ashad happened when the ruling was argued at the May 20

    meeting, the repair industrys concerns were not heard. De-spite McClements motion to retract the Advisory Ruling(and a second from fellow Board member Joe Coyne), thedecision was ultimately upheld by a majority vote to keepthe ruling as is. The matter was then declared disposedof.

    Another issue we as an association take exception to isthe recent implementation of GEICOs ARX plan operatingin Massachusetts. The approval of this program - which al-lows drive-in claims centers to operate in the Common-wealth - is another direct violation of Massachusettsregulation 212 CMR 2.02, which clearly states that an ap-praiser operating a drive-in appraisal service for an insurerat a repair shop represents a conflict of interest.

    Both AASP/MA and Commerce Insurance have filedcomplaints on this issue to the ADALB. When heard anddiscussed, it became clear to all in attendance that not onlywould our complaint not be addressed that day, but alsothat the efficacy - and, in my opinion, the loyalties - of theBoard itself should be called into question once again.

    Interestingly, though he did recuse himself from thediscussion, one of the ADALBmembers is actually one of

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  • New England Automotive Report September 2014 9

    AASP/MAPresidentPaul Hendricks is

    the owner of Hendricks Auto Body in Uxbridge, MA.

    He can be reached at (508) 278-6066.

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    the appraisers against whom AASP/MAhas filed a complaint. This memberwas also one of those who ruledagainst revisiting the digital imagingAdvisory Ruling. If thats not a con-flict of interest, I really dont knowwhat is. And further, I have to askwhether anybody at the ADALBis re-ally paying attention, anymore! TheADALBwas initially convened in partto facilitate and streamline the rela-tionships between the collision repairindustry and insurance appraisers.Going by the last two ADALBmeet-ings, its questionable at best whetherthe collision repair industry is beingproperly represented, or even takenseriously.

    AASP/MA is working hard totackle the issues affecting our mem-bers. Part of that focus is taking theseconcerns to bodies like the ADALB forresolution. Unfortunately, it seemsthat our requests are either being dis-missed or going unnoticed, and fur-ther, being heard by a body whoseloyalties may not necessarily lie wherethey should.

    Its a frustrating situation, to saythe least, and I hope to be able to pro-vide an update on our predicament ina future message. Until then, I regretto inform you that AASP/MAs frus-trations with the ADALB continue. Inspite of our difficulties, however, Idourge you to pay attention to theADALB. Things are going to surelyheat up, one way or the other. And byall means, make sure you check outthe video coverage of the August 6ADALB meeting by visitingwww.aaspma.org, and making yourown decisions about the intentions ofthis Board.

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  • Happy fall, members!By now, many of you are aware of

    the newly-approved GEICO ARX planoperating in Massachusetts. Whetherinadvertently or advertently, the ap-proval of the ARX plan has created a

    drive-in claims service in eight bodyshops throughout the Commonwealth.According to Massachusetts regula-tion 212 CMR 2.02 (7), it shall be aconflict of interest if any licensed ap-praiser operates a Drive-In Appraisal

    Service for an insurer at a repairshop.

    As such, AASP/MA has filed fivecomplaints on the licensed GEICO ap-praisers operating illegally with theAuto Damage Appraisers LicensingBoard (ADALB). AASP/MA has alsoforwarded the complaints to the Divi-sion of Insurance and the AttorneyGenerals Office. As you will read inthis issues ADALB report, CommerceInsurance has also filed complaintsagainst GEICO Insurance and the li-censed GEICO appraisers.

    After a heated discussion on hear-ing the complaints in an open forum,the Board ultimately decided that theywould be heard in executive session.We expect the Board to take the issueup at their next meeting on September26. Full video coverage of the August6 ADALB meeting is available tomembers on AASP/MAs website,www.aaspma.org. I strongly encour-age you to watch the video in its en-tirety.

    The ADALB Board also discussedthe creation of a document outliningdiscussions they have had relative tothe regulations 211 CMR and 212 CMRsince December, which will be pre-sented at the next meeting. AASP/MAhopes to work with the Division increating that document, and we expectthe Division to schedule a listeningsession for all interested parties ontheir suggested changes to the regula-tions shortly thereafter. Please checkNEAR and our Damage Reportnewsletter for updates as they becomeavailable.

    The Legislature broke for summerrecess on July 31. Although we experi-enced some challenges with our LaborRate Bill, we were successful in killing

    10 September 2014 New England Automotive Report

    A MESSAGE FROM THE EXECUTIVE DIRECTOR

    AASp/MAChallenges GeiCoARXplan, Gears Up For Fall events

    AASP/MAExecutive DirectorJillian Zywien has been a

    senior account executive atLynch Associates for over six

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

    [email protected].

    continued on pg. 58

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  • The August 6 meeting of the Auto Damage Ap-praisers Licensing Board (ADALB) hosted all membersof the board. (Board counsel Mike Powers was presentfor the entire meeting and Rob Whitney entered themeeting prior to discussion on Commerces andAASP/MAs filed complaints.) Tom McClements beganthe meeting by requesting that changes be made to theregular and executive session minutes of the previousmeeting to accurately characterize his position. Follow-ing approval of the minutes, Carl Garcia reported onthe results from the June 17 Part II exam. Seventy-oneindividuals took the exam; 20 failed. Garcia reportedthat these were some of the best results he has seen forthe test. The next exam is scheduled for August 26 atthe Holiday Inn in Taunton, with Garcia hosting a re-view in his shop at 3pm the day prior to the exam.

    After a brief discussion on regulatory changes and

    the process for moving forward, it was decided thatPowers would prepare a document for the next meet-ing outlining the Boards discussions since the Decem-ber 2013 meeting on changes to the regulations.Following the Boards approval of the outline at theirnext meeting (scheduled for September 23), a listeningsession will be scheduled. All interested parties will beallowed to participate in that meeting. In the mean-time, AASP/MA staff will be reaching out to Powers tooffer assistance with the creation of the outline to en-sure all prior discussions are captured.

    Joe Coyne addressed the Board with Old Businessrelative to the recent letters being sent out by insurancecompanies to body shops to ensure compliance withthe removal of inspection stickers. (Metropolitan wasrecently fined $250,000 by the Attorney General for vio-lation of this law.) According to Coyne, this practice has

    not been done in years and was a gift to the bodyshops from former Registrar of Motor Vehicles, JerryGnazzo. He asked that the Board request the AG attendthe next meeting to clarify this issue and advisewhether or not inspection stickers should be removed.Following a discussion on this issue*, Dave Krupa sug-gested the Board contact the Commissioner instead andcopy the AG on a letter relative to this issue, to ask howthe Board should proceed in advising licensed apprais-ers. McClements offered to write that letter for theBoard and present it at the next meeting.

    McClements then asked the Board to retract theirrecent Advisory Ruling on photos/videos being con-sidered personal inspection under New Business. In hisopinion, the Boards recent ruling is in direct violationof current regulations. Garcia reminded the Board thatthey had received a five-page opinion from RobertWhitney on photos/videos being considered personalinspection. After much discussion, McClements made amotion to retract the advisory ruling regarding the def-inition of personal inspection. The motion was sec-onded by Joe Coyne. During the roll call vote, DaveKrupa, Carl Garcia and the Chairman voted in opposi-tion. The Chair declared the matter disposed of.

    Peter DAgostino rose to speak to the Board rela-tive to AASP/MAs paint and materials complaint thathas been before the Board for two meetings. ChairmanCox reviewed the minutes of the meeting and declaredthere was a tie in voting, as he had to leave the Execu-tive session. He agreed to reconsider the complaintduring executive session following the meeting.

    Next on the agenda were the four complaints filedby Commerce Insurance and the five complaints filedby AASP/MA. Joe Coyne made a motion to hear com-plaints in the public meeting. Attorney Whitney ad-vised the Board that hearing the complaints in publicsession would violate state law, but offered that theBoard could return following their executive session.Coyne furthered his position by stating his desire to re-turn from executive session, as the attendees are enti-tled to hear what is going on with this industry-wideissue. Attorney Whitney again stated that Coynes mo-tion would violate state law, as there are serious accu-sations presented in the complaints against individuals.Peter McCue, outside counsel for Commerce Insurance,was recognized by the Board with his desire to remainin public session. Steve Goldblatt, lobbyist for GEICOInsurance, was also recognized with a request for moretime to analyze the complaints against his client, as hehad only received them the night before the meeting.DAgostino of AASP/MA agreed with Attorney Whitney in that the Board should adjourn to

    ADALB MEETING REPORT

    personal inspection Advisory Ruling, GeiCoComplaints discussed atAugust 6 AdAlBMeeting

    *To view video coverage from the August 6 ADALB meeting, please visit www.aaspma.org. New England Automotive Report September 2014 11

    AFTeR MUCh diSCUSSioN, McClements made a motion to retractthe Advisory Ruling regarding the definition of personal inspection. The motion was seconded by JoeCoyne. during the roll call vote, daveKrupa, Carl Garcia and the Chairmanvoted in opposition. The ChAiRdeClARed The MATTeR diSpoSed oF.

    continued on pg. 58

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  • 16 September 2014 New England Automotive Report

    LEGAL PERSPECTIVE

    GeT oUT yoUR wiNdow GlASS SCRApeRS!by James A. Castleman, Esq.

    It was reported at the most recent Auto Damage Ap-praiser Licensing Board meeting that Attorney GeneralMartha Coakley recently fined MetLife Insurance $250,000for failing to have their appraisers remove safety inspectionstickers from damaged motor vehicles. And I have confir-mation from a very reliable source that the Attorney Gen-erals office has been looking into whether appraisers forother insurance companies are removing the stickers, and ifnot, why.

    This seems to be sending shock waves throughout theMassachusetts auto insurance and collision repair indus-tries, as it has been many years since either insurance ap-praisers or body shop appraisers have been routinelyremoving inspection stickers. Yet there is a statute directlyon point that is quite clear as to what it mandates, so per-haps the shock waves resulting from failure to comply withthat statute should have been anticipated.

    The lawThe Auto Damage Appraiser Licensing Law (M.G.L.,

    Chapter 26, 8G) states in part: Whenever an appraiser de-termines that a motor vehicle is damaged such that (a) itmay no longer meet the safety standards established by theregistrar of motor vehicles under section seven A of chapterninety; or (b), it may no longer comply with the motor ve-hicle emission standards established by the commissionerof the department of environmental protection under sec-tion 142M of chapter one hundred and eleven, then the ap-praiser shall remove the certificate of inspection from thevehicle and no new certificate of inspection shall be issuedfor such vehicle unless, upon reinspection of the vehiclepursuant to section seven V of said chapter ninety by anapproved inspection station, such vehicle meets said safetystandards and is otherwise in compliance with motor vehi-cle emission standards.

    There are no exceptions to the rule in the statute.WHENEVER any appraiser determines that a damaged ve-hicle may not meet the requirements for getting a safety in-spection sticker, or may not be able to meet a vehicleemissions test, then that appraiser SHALL remove the vehi-cles inspection sticker, and no new sticker may be issueduntil the car passes a Massachusetts safety and emissionstest at a licensed inspection facility. The ADALBs regula-tions also make it clear that a licensed appraiser must fol-low the requirements of the statute, saying: If, while in theperformance of his or her duties as a licensed auto damageappraiser, an appraiser recognizes that a damaged, re-pairable vehicle has incurred damage that would impairthe operational safety of the vehicle, the appraiser shall im-mediately notify the owner of said vehicle that the vehiclemay be unsafe to drive...The licensed auto damage ap-praiser shall also comply with the requirements of M.G.L.c. 26, 8G, the paragraph that pertains to the removal of avehicles safety inspection sticker in certain situations.

    The statute does allow for tweaking the rule somewhat,since it also provides that [t]he registrar of motor vehiclesshall establish rules and regulations for the enforcement ofthis paragraph. And, the registrar did issue regulationsthat cover how the process of removing inspection stickersis to be administered. Yet the basic requirement for removalof the vehicles inspection sticker by a licensed appraiserremains, and the registrars regulations make it manifestthat licensed appraisers need to comply.

    The Registrar of Motor vehicless TweaksInstead of appraisers just removing inspection stickers,

    and then vehicle operators not being able to operate theirvehicles at all, the registrars regulations require the re-placement of a removed sticker with a special temporaryinspection sticker that is good for 20 days. The purpose ofthis provision is to allow temporary operation of an other-wise drivable vehicle, so that the vehicle owner can drivehome or to their repair shop without having to worry aboutgetting ticketed for operating without an inspection sticker,and without having to pay the insurance surcharge thatwould result from being found responsible for operatingwithout a sticker. While one may question whether thismay inappropriately allow the continued operation of anunsafe vehicle, it does address the reality of what peopleare likely to do, and does only provide for a short windowof temporary operation.

    Temporary inspection stickers are available from theRegistry of Motor Vehicles, and can be obtained by all li-censed auto damage appraisers. Certain vehicle informa-tion must be recorded on them, as well as on a detachablestub that is to be kept by the appraiser or his or her em-ployer for at least one year. There are also prohibitionsagainst selling or transferring temporary inspection stick-ers, or otherwise improperly using them.

    A second tweak made by the registrars regulations isto relieve appraisers from having to perform an exhaustivesafety inspection that would require them to examine allitems that might not pass. Rather, the appraisers obliga-tions apply only to obvious visible safety or emissionsdamage included in the itemization of parts, labor or serv-ice necessary to restore the damage for which the claim isinitiated. So, the appraiser does not have to go beyond thedamage that he or she is actually appraising, and the defecthas to be apparent.

    There also exists a further limitation of an appraisersobligations. The regulations list 10 items that the appraisershould be looking at, and presumably these are the only 10items that have to be addressed:The brakes, exhaust sys-tem, fuel tank, horn, lighting, seat belts, sharp protrudingmetal, steering and suspension, tires and windshield andwindshield wipers.

    The registrars regulations also address, at some length,what an appraiser is required to do if he or she is prevented

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  • from removing an inspection sticker, whether because the caris locked, because the owner does not allow access to the in-terior or for any other reason. In that situation, the appraiseris required to fill out a form (the language of which is set outin detail in the regulations) that essentially tells the vehicleowner their car is unsafe to drive, that Massachusetts law re-quires the removal of their inspection sticker under these cir-cumstances and that the owner has to either arrange to get atemporary sticker or have their car repaired. The form is to bein three identical parts, one of which is to be mailed to theowner, one of which is to be attached to the appraisal andone of which is to be kept by the appraiser.

    Analysis and CommentsThere are a number of matters to consider with regard to

    the inspection sticker removal law:First, the governing statute and regulations apply to all

    appraisers, not just to insurance company appraisers. So, ifyou are an appraiser working for a collision repair shop, thenyou are just as responsible for removing inspection stickerswhen you are writing your appraisals as are insurance ap-praisers when they are writing theirs. You too are subject tohaving your appraisers li-cense suspended or revoked,being fined, or your shopbeing penalized by the Attor-ney General or the Division ofStandards if you are not re-moving stickers.

    Second, please under-stand that this is a safetyissue. Damaged vehicles maybe unsafe to drive. But as longas their inspection stickers areintact, there may be no obvi-ous reason for an owner tostop driving their car or for alaw enforcement officer tostop an operator from drivingdown the road endangering peoples lives.

    With regard to this second issue, I found it interestingthat one of the members of the ADALB, while discussing theissue at the recent meeting, publicly claimed that the inspec-tion sticker law was merely a gift by Jerry Gnazzo to the re-pair industry when he was registrar of motor vehicles. Withall due respect to that ADALB member, Jerry Gnazzo, a for-mer MABA president and subsequent registrar of motor ve-hicles, had nothing to do with it. He was just unlucky enoughto have been the registrar who happened to be in office whenthe RMV regulations were required by law to be issued. Ishould know, because I was involved in developing the lan-guage of the statute and helping to get the Massachusetts leg-islature to enact it.

    It is true that various other members of the collision re-pair industry were instrumental in getting the statute passed,but it was always based on a safety issue, one that came tothe forefront when the Auto Insurance Reform Act was en-acted in the late 1980s. It was then that vehicle damageclaimants were allowed to accept full claim payments fromtheir insurers without any requirement to actually make re-pairs. And on the immediate heels of the passage of the Re-

    form Act, there were a lot of cars seemingly traveling side-ways down the road, with chunks of their fenders protrudinginto oncoming traffic.

    Third, as was pointed out at the ADALB meeting, prob-lems did arise for appraisers who were dealing withclaimants who were not happy about their inspection stickersbeing removed. In my opinion, this was no reason for ap-praisers to stop obeying the law. There are many laws thatmany of us may not like. But we are a nation of laws, and ifwe are going to be good citizens, then we are going to have toaccept the existence of those laws, and either obey them or beprepared to live with the consequences of not doing so. Noneof us are happy to have our cars inspected every year, asmandated by the Massachusetts vehicle inspection laws; yetwe have to get that inspection if we want to continue to beable to drive on public highways. It is also suggested that theproblems that arose between appraisers and claimants couldhave been better dealt with by appraisers and insurers prop-erly educating vehicle owners on what the law requires andthe safety issues being addressed.

    Fourth, I note that the same member of the ADALB whosaw the sticker removal statute as a gift also publicly ex-

    pressed concern that apprais-ers have to incur the expenseof printing the three- partform required by the regis-trars regulations. Again, withall due respect to that ADALBmember, in my opinion thiscomplaint is a lot of bull. Therequired form is easy to fillout, is not particularly longand can easily be printed inthree parts on one page. If thisis the biggest expense that thisBoard member has to be con-cerned with in his business,then he must really be in trou-ble. Most, if not all, businesses

    incur expenses because of regulatory requirements of onekind or another, and we all bear those expenses, or else wefind another line of work.

    Fifth, there may be personal liability for damages thatcould be assessed against an appraiser that fails to remove asticker. After all, if you fail to obey the law and a vehicle op-erator who does not know that his car is unsafe to drive getsinto an accident where someone is injured or killed as a re-sult, then your failure to obey the law may be seen as a con-tributing factor.

    A sixth and final thought to ponder: What are insuranceappraisers who are remotely preparing appraisals based ondigital images going to do about removing inspection stick-ers? Will there be such a thing as virtual inspection sticker re-moval?

    ConclusionIm not sure what the Attorney General is going to do

    about insurers that are not mandating that their appraisers

    New England Automotive Report September 2014

    continued on pg. 62

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  • New England Automotive Report September 2014 19

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

    2014 AASP/MA NEWSLETTER SPONSOR

    AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

    WOLPERTINSURANCE

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  • New England Automotive Report September 2014 21

    SEMA PREVIEW

    One of the most popular events in todays collision re-pair industry, the annual SEMA Show will return Novem-ber 4-7 to the Las Vegas Convention Center in Las Vegas,NV. For a fifth year, the Society of Collision Repair Special-ists (SCRS) will be at the Show to host a series of special Re-pairer Driven Education (RDE) courses designed toprovide attendees with information to successfully navi-gate an ever-changing profession. AASP National willserve as a sponsor of this years RDE festivities.

    On November 4, New England Automotive Report con-tributor Larry Montanez (P&L Consultants) will presentAluminum Repair Procedures, Techniques & Require-ments, followed by his November 6 program, CheckYourself - Departmental Quality Control to Prevent Incor-rect Repairs. On the same day, Mike Anderson (Collision-

    Advice) will present Using Industry Statistics to YourAdvantage, a two-hour course that will look at industrytrends, OEM trends and statistics from the latest sourcesfrom across the country. The seminar will also explore leg-islation, laws and pending court cases that could impactcollision repair businesses. On November 6, Tim Ronak ofAkzoNobel will preside over Surviving the Push for Re-finish Reductions - Spot within Panel Survival Kit. The120-minute presentation will offer a 2014 update on the in-dustry-acclaimed Spot within Panel Survival Kit, de-signed to utilize the databases to deflect requests to alteror reduce refinish times. This years impressive list ofRDE presenters also includes (among many others) Califor-nia-based instructor Toby Chess, Domenic Brusco of PPG,Steven Feltovich of Sherwin-Williams Automotive Finishesand Kristen Felder of Collision Hub.

    SCRS RDE event schedule at SEMA will also featurethe first-ever OEM Collision Repair Technology Summit on

    Wednesday, November 5. This Summit is a completelyunique networking and learning opportunity designed toput SEMA show attendees in a room with a content-richagenda focused on emerging trends and evolution in vehi-cle design, construction and technology as it relates to thecollision repair environment. The format, featuring ele-vated discussions surrounding shop-floor issues, will in-clude high-level speakers, panel discussions, breakoutsessions, hands-on technology displays and organized in-teraction with OEM representatives and others with directimpact on vehicular changes relative to collision repair.This event will give attendees great insight into current andfuture requirements necessary to maintain pace with theautomakers in their repair business and operate within ahighly competitive marketplace.

    SCRS Executive Director Aaron Schulenburg is pleasedto report larger-than-expected registration figures and anincrease in the number of collision repair vendors signingup to be a part of the festivities. This includes not only newnames to the exhibition area, but also newly expanded foot-prints by scores of previous vendors.

    The numbers continue to go up every year, and I thinkthat demonstrates the way this content hits home with re-pairers, he says. We have a great partner in SEMA; theyreally share the vision we have for delivering a home forthe collision industry at this event.

    Other special events during SEMA include the SCRSRDE Welcome Reception on November 4, the AASP Na-tional Board meeting on November 5 and the Collision In-dustry Conference (CIC) and SCRS RDE Sky VillaAfter-party on November 6. For registration informationand a complete listing of RDE events, please visit www.semashow.com/scrs.

    SCRS lines Up Robust SeMA Schedule

    MASSACHUSETTS

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  • NEWS FROM LEXUS

    lexus is about to revolutionize the luxury vehicle world.In late July, members of the automotive media gathered

    in Nashville, TN for a special preview of the all-new LexusNX. Inspired by performance vehicles, the 2015 NX unitesthe engineering input of racers with the impeccable touchof Lexus luxury in a design that steals the show.

    The 2015 Lexus NX debuts with the NX 200t (whichboasts a turbocharged 2.0-liter four-cylinder engine) andthe NX 300h hybrid (which offers a real driving kick,thanks to a new transmission with a kickdown function). Inaddition to offering an aggressive grille and front lowerbumper, the NX F SPORT package features Active SoundControl to enhance the auditory experience and adjust en-gine note volume in the cabin. Special wheels, black exte-rior mirrors, exclusive interior trim and front sport seatsround out the package.

    The new Lexus NX features numerous firsts in a Lexus:

    The all-new 2.0-liter turbocharged gasoline engine hasa combination water-cooled cylinder head, integrated ex-haust manifold and twin-scroll turbocharger;

    A kickdown switch in the hybrid, which, as in conven-tional vehicles, ensures maximum power is deliveredwhen required;

    The front axle adopts a pre-load differential to controldifferential torque. It assists turning on slippery roadsand straight-line stability at high speed;

    Standard energy-efficient LED headlights and tail-lights; and

    Touch-sensitive interior lamp switches in the headliner.

    The Lexus NX uses MacPherson strut front suspensionwith high-rigidity components and low-friction movingparts. A newly designed trailing arm double wishbone rearsuspension separates the coil springs and dampers to opti-mize agility, stability and ride comfort while also providingan unusually low floor for an SUV. Specially reinforced sus-pension components help to minimize the shake and shud-der caused by lateral loads that change the tread width of atire as the wheel reacts to an undulation.

    From its dramatic spindle grille and L-themed head-lights to a body that appears carved from a single chunk ofmetal, there will be no mistaking the 2015 Lexus NX foranything else in its class. Its a look that conveys the func-tionality and performance of a premium, compact perform-ance vehicle. The crouching, muscular stance, in part aresult of providing good ramp-over angles for light-traildriving, is accentuated by having the highest point set backtoward the rear of the roof.

    The cabin design of the Lexus NX combines structuralelements with luxurious yet functional materials and tex-tures. The center console is the undeniable focal point,framed by bold silver-colored architectural elements andfeaturing kneepads on both sides. Leather-wrapped metalover high-contrast metallic colors provides visual depth.The NX dashboard and console continue the Lexus conceptof display and operational zones. Standard dual-zone auto-matic climate control offers an available fuel-saving S-Flowmode that detects a front passenger and directs airflowonly to the occupied front seat or seats.

    In addition to its exciting design, the Lexus NX offersan array of perks that add to a convenient driving

    luxury 2.0: introducing the lexus NX

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  • experience. For example, the 2015 NX is the firstLexus to offer an available Qi wireless chargingtray inside the console box. If a driver has acompatible smartphone or other device, justplacing it in the tray will recharge its battery.Additionally, the cup holders provide enhancedgripping, allowing for convenient one-handedbottle opening while driving.

    Striking an intriguing balance betweensporty and refined, the Lexus NX has been designed to ap-peal to new Lexus owners in their thirties and forties. Al-though an official MSRP was not revealed at the pressevent, the NX is expected to hit the market later this year atunder $40,000.

    After taking various NX prototypes for test drivesthrough Music City, New England Automotive Report EditorJoel Gausten is confident that Lexus has another major hiton their hands.

    The NX effortlessly achieves Lexus goal of offering anexciting vehicle for an ever-growing demographic young

    professionals who seek an attractive balance between tradi-tional luxury and the practical demands of parenthood, hesays. Lexus hopes to sell around 36,000 of these vehicles in2015. Considering all that this vehicle has to offer, I suspectthe sales will be much greater. The NX is a perfect choicefor a segment of the market that has been waiting too longfor a great car like this. Is it possible to be conservative andexciting at the same time? The NX answers that questionwith a resounding yes!

    New England Automotive Report September 2014 25

    Above:The NX preview event featured an intimateperformance by Nashville music stars Brett James(left) and Tim Nichols.

    Far right:Owen Peacock, national product marketing manager for Lexus, introduces the newNX at a special press event in Nashville, TN.

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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    FEATURE

    On July 28 and 29, members of the national automotivecommunity gathered in Detroit for a number of events thatoffered industry participants from various states an oppor-tunity to gain insight into the news and issues affecting thegreater collision repair field.

    Media MattersIn an ongoing effort to better inform and protect the

    motoring public, various industry groups have developedmedia campaigns in recent years to draw attention to criti-cal issues. This is especially true of the Society of CollisionRepair Specialists (SCRS), which used its Open Meeting onJuly 28 to outline many of its recent activities in the publicarena. SCRS continues to be used as a resource by a num-ber of national media outlets looking to learn more aboutthe issues surrounding the collision repair industry and itswork with insurers. In response to these ongoing requests,the association developed a media statement that ExecutiveDirector Aaron Schulenburg says accurately and compre-hensively characterized the mindset of many of the repair-ers out there today who are really trying to do qualityrepair work [under] the pressures that exist in our market-place. A portion of the statement reads as follows:

    The governments pressure on automakers to reduce emis-sions is going to continue to impact vehicle design and in-crease the prevalence of an expansive list of lighter-weightmaterials and advanced technology. This continual evolutionin automotive architecture intends to produce safer, lighter,more efficient vehicles and inherently requires increasingamounts of skill to repair. It is absolutely the industrys obli-gation to react, equip our businesses and train our techni-cians to meet the demands of our changing fleet. The goodnews is that [through] efforts from industry organizationssuch as the Society of Collision Repair Specialists (SCRS), I-CAR and others, the collision repair industry has increas-ingly more robust access to information from the automakerson the proper repair methods that should be used, the neces-sary equipment and the hazards of using certain parts or un-accepted procedures. As our industry invests in this highlysophisticated equipment and intensive, specialized trainingthat are both often make and model specific, the costs of suchinvestments have to be recovered. The biggest challenge fac-ing repairers isnt capability, but rather the downward pres-sure placed on repair businesses to do more, and invest more,perform faster and to do so for a lesser return.

    Interestingly, in theUnited Kingdom(UK), the UK Com-petition Commissionissued a summary offindings after analyz-ing the interactionbetween the insur-ance and collision re-pair market. Theycame to a conclusionthat many repairersin the United Stateshave known for along time; the marketis not working well.

    In fact, they specified that the market is not working well be-cause competition between repairers to obtain busi-ness from insurers is focused on low cost rather thanhigh quality of repair; that is, repairers are insuffi-ciently rewarded for offering a high quality of repair.

    Additionally, SCRS reported on Liberty Mutual remov-ing a commercial, which the association had communicatedconcerns about, from television and YouTube in July. Mem-bers had reached out to the association regarding what theyfelt were condescending, destructive and misleading state-ments about those not involved in the Liberty Mutual refer-ral program. Schulenburg, who said that many of hismembers were disappointed by the approach that wastaken by the carrier to promote their program at the ex-pense of the remainder of the industry, was pleased to re-port that the offending commercial will no longer be seenby the motoring public and that the carrier was very re-sponsive to the industry concerns presented.

    More information on SCRS is available at www.scrs.com.

    The Changing Face of CiCWith 2014 coming to a close, the Collision Industry

    Conference (CIC) will soon welcome a new chairperson tolead the group into the future. At the July 29 CIC in Detroit,it was announced that the past chairs selected longtimeCalifornia collision repair professional and CIC participantRandy Stabler (Pride Collision Centers) to lead the group

    Randy Stabler (Pride Collision Cen-ters, Greater Los Angeles, CA) willtake over as CICChair following theevents November 2014 installment.

    National issues exploredat detroit events

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  • for a two-year term beginning in 2015.He will replace George Avery of StateFarm, who will end his term after theNovember 6 CIC meeting in LasVegas. Stabler is the co-founder ofPride Collision Centers, a multimil-lion-dollar collision repair companylaunched in 1983 that currently boastssix locations in Southern California.He is expected to make his first publicaddress before the CIC body at theNovember meeting.

    homeland Security Steps inJoined by a panel comprised of

    various government representatives(including members of the Depart-ment of Homeland Security), the CICParts & Materials Committee used itsJuly 29 presentation as an opportunityto educate attendees on the very realthreat of counterfeit airbags. Not sur-prisingly, the government is comingdown hard on anyone caught perpetu-ating the use of these dangerous items,which often contain chemicals that canbe fatal if inhaled or absorbed throughthe skin. One counterfeiter in NorthCarolina, Igor Borodin, was caughtwith 1,514 fake airbags and $60,000 in

    cash in 2012. He pled guilty to the dis-tribution of counterfeit merchandiseand illegal possession of explosive de-vices and forfeited $1.7 million in salesproceeds. Borodin was later sentencedto 84 months in federal prison and willbe deported to Russia when his term iscompleted.

    William Hayes, a deputy specialagent for the Department of Home-land Security, advised the CIC body tobe skeptical of any airbag that is being

    sold at a substantial discount. If a legitimate item is $1,000 and

    youre getting it on sale for $400,price is often a very good indicator ofa counterfeit, he said. If its too goodto be true, it probably is.

    More information on the CollisionIndustry Conference (CIC) is availableat www.ciclink.com.

    New England Automotive Report September 2014 29

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    Homeland Security Agent WilliamHayes warned CIC attendees of therisks associated with counterfeitairbags.

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    Building and lot in first class condition, located just north ofdowntown New Bedford, MA. Easy highway access andprominent exposure to Route 18 N & S traffic flows. Included in the sale is an adjoining lot, Map 72-Lot 231. (Also available is one additional listing not adjoined to the property)

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    Recent EnergyStar interior & exterior lighting upgrade w/ exterior car lot LED lighting

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    For more information, please contact Gerald (Jerry) Wheeler, Broker/Realtor, E.J. Pontiff Real Estate(508) 789-2801 cell / (508) 993-1082 fax(508) 961-1671 Office / [email protected]

    This property has many unique features, including:

    1476 Purchase St., New Bedford, MA Iconic Commercial Garage for Sale & Service of Vehicles on High-Traffic Street

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    when president obama made headlines backin July by riding a crash avoidance simula-tor at the Turner-Fairbank highway Re-search Center in Mclean, vA, hedemonstrated the motoring publics growing fascinationwith rapidly developing safety technologies that are revo-lutionizing the way vehicles are made and repaired.These days, its virtually impossible to read up on the au-tomotive world and not come across news on things likeautonomous emergency braking systems (designed tohelp a driver avoid a low-speed crash or to reduce itsseverity), adaptive headlights, electronic stability control(to prevent rollovers) and forward collision warning

    systems with auto braking. of course, there is also themuch-hyped self-driving car from Google. in addition toelevating automobiles to places they have never been be-fore, these technologies are having a dramatic effect oneverything from federal and state government to insur-ance company practices. Closer to home, these advance-ments have also sent shockwaves through the Americancollision repair industry.

    during a special July 29 presentation in detroit bythe Collision industry Conference (CiC) GovernmentalCommittee, Steve Regan of Regan Strategies outlinedsome of the many ways automated technologies are al-ready impacting the automotive field. on the federal

    From Aluminum to Google:Changing Technologies Reshape the industry by Joel Gausten

    FEATURE

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    level, Regan shared that the National highway TrafficSafety Administration (NhTSA) is aggressively in-structing auto manufacturers to implement greater auto-mated technology in cars.

    They want this to be done because their goal issafety, he said. The less accidents, the safer the roadsare going to be.

    on the state level, Regan noted that California, Ne-vada, Michigan, Florida and the district of Columbia al-ready have some form of law on the books regarding theuse of autonomous cars, despite the fact that these prod-ucts have yet to even hit the market. in his mind, this isindicative of an escalating interest in addressing whatcould very well be the future of driving in the UnitedStates.

    Those of us who have workedwith associations or have done anytype of lobbying know how tough itis to get a law passed, so imaginewhats going on when [four] stateshave already passed laws to regulatethe use of these vehicles [when]theyre not for sale at this time, hesaid.

    Naturally, owners of self-drivingcars will still need to insure them.Randy hanson, a claim director atAllstate, opined before the CiC bodythat much discussion and considera-tion needs to take place before his in-dustry is able to fully comprehendand react to how this kind of technol-ogy will affect (among other things)indemnification agreements andproduct liability.

    i dont know if youre going tohave a preponderance of self-drivingvehicles on the road in five years, but there will probablybe some, he said. how do we react to that? how do wemake those transitions from the way we handle claimstoday to the way we handle claims in that type of envi-ronment?

    Cost and sales figures are also major factors in deter-mining how (and if) self-driving cars will impact society.According to study by ihS Automotive (http://press.ihs.com/press-release/automotive/self-driving-cars-moving-industrys-drivers-seat), annual sales of self-driving carsworldwide (including models that would require at leastsome driver involvement) will grow from 230,000 in 2025to 11.8 million by 2035. Additionally, the study claimsthat self-driving technology will add $7,000 to $10,000 to acars sticker in 2025. ihS Automotive expects self-drivingcars (SdC) that include driver control to hit highwaysaround the globe before 2025, while self-driving onlycars are anticipated around 2030.

    Although autonomous braking systems, self-drivingcars and various crash avoidance systems are intriguingsubjects for the collision repair community to consider, itappears that the full implementation of these technolo-gies on Americas roadways will remain little more thanfascinating topics of conversation for at least the next sev-eral years. An award-winning facility owner who over-sees one of the few i-CAR Gold shops in the state,AASp/MA member James Marshall (Marshalls AutoBody, Billerica) has seen only one vehicle with adaptivecruise control (an Audi A8) enter his facility and thatpart of the car hadnt been damaged and didnt even re-quire a repair.

    we try to stay ahead of the curve in making sure theguys [in my shop] are trained for whatevers coming

    down the pike, but we havent seenthe actual application [of these re-pairs] yet, he says.

    in Marshalls mind, aluminum not crash avoidance technology isthe trend that deserves the industrysattention.

    Aluminum repair is going to bethe next big hurdle for all of us toovercome because of the footprint ittakes up inside your facility, he says.[Aluminum-intensive vehicle manu-facturers] want clean-space areas andspecific tools to work on aluminumstructures. Thats going to create anoverhead cost; some people are eithergoing to be able to conform their ex-isting building or maybe put an addi-tion on to adapt space to work on analuminum-body car.

    with the new Ford F-150 andother aluminum-intensive vehicles

    destined to have a substantial impact on tomorrows in-dustry, Marshall is already planning to purchase landnext to his present shop in 2015 and build a second facil-ity (approximately 5,000 square feet) that will devote atleast 1,500 square feet just to aluminum repair.

    even if many of the changes discussed in this featurewont truly start impacting most repair shops for a gooddecade or more, Regan joins a growing list of industrycommentators who are urging repairers to start doingtheir homework now to be prepared for a technologicalrevolution that will be here before they know it.

    As he told the CiC body, its not on the back burneranymore. everybody is talking about it; everyone isthinking about it. Really, thats why we need to talk aboutit.

    During the July CIC in Detroit, Allstates Randy Hanson discussedthe insurance industrys response tothe growth of autonomous vehicles.

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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    COVER STORY

    SwAMped:The Good (and Bad)News About a

    Busy Repair Seasonby Joel Gausten

    And you thought the winter was good for business...

    At the time of this writing, a considerable number of AASP/MA member shops were winding down their most activesummers ever. While this time of year often calls to mind rest and relaxation, shops throughout the Commonwealthworked harder than ever just to keep up with the many vehicles hitting their bays. But is a constantly full repair facility agood thing for an owner, or just another headache? Is a spike in business indicative of changes in how consumers shop forrepairs, or a sign of decreasing opportunities for new technicians? This month, New England Automotive Report reached outto shops to gain different perspectives on how the industry handled one of its most demanding eras.

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    All iN The FAMilyA Massachusetts repair industry institution since 1952,

    Middlesex Auto Body in Natick enjoyed one of its busiestsummers in recent memory thanks to a new account andthe kind of solid reputation that can only be built over sixdecades in the community. A third-generation owner andrepair pro, Jeffrey Williams took over the seven-personbusiness from his father Steve in 2013 and has learned first-hand how consumer loyalty can keep a repair businessgoing strong.

    We have a lot of older customers who know all threegenerations of owners and still come in, he says. We havea job scheduled next week where the people brought theircar to my grandfather, then my dad and now me. Withinthose families, we have the grandparents, the parents andthe kids all as our customers. The kids are in college now,but if theyre still in the area, theyll bring their car here.Weve had cases where theyre going to school in Virginia,get in an accident and call us for a recommendation or ad-vice on how to handle the situation. Just as we have threegenerations of owners, there are families weve been deal-ing with for three generations. My dad put a lot of effortinto educating our clientele base so they understand theprocess and how the insurance companies want to play thegame. When [customers] get into an accident, the first callthey make is to us.

    Along with maintaining a steady workflow, Williamsplans to spend the rest of 2014 working to get the facilityready to handle aluminum repairs a process that has beenhelped along by his membership in AASP/MA.

    The association is going out of its way to make surewe have the resources to make educated decisions for thematerials, equipment and training we need to have for our-selves and our technicians, he explains. Its also good tohave other local owners and shop managers to bounceideas off of. If theres something youre thinking aboutdoing, you can run it by someone who has maybe gonethrough it or who decided against it for a particular reason.When youre making a big decision, the more informationyou have, the better off youre going to be.

    Although the industry presents its fair share of obsta-cles and concerns, Middlesex Auto Body seems to havefound the perfect formula for staying alive and profitablefor more than 60 years.

    It all refers back to customer service, Williams says.You have to listen to what your customers want, makesure that youre taking care of their needs and try to makethe process as seamless and painless as possible.

    New woRK, No helpUnfortunately, a hefty work schedule doesnt necessar-

    ily equal an improved business outlook. For many shops,an increase in repair orders has placed new pressures on anindustry already feeling the weight of low wages and hightechnical demands. Although he has experienced a jump inoverall work, Don Vermette of Vermette Auto Body (Feed-ing Hills) is having difficulty finding employees to handle

    the load. One of the problems I have is that Im on the Con-

    necticut border and Im losing a lot of employees [to] Con-necticut shops that are getting paid $10, $15 more per hourthan Massachusetts, he says.

    Actively looking for new hires, Vermette is facing anever-growing dilemma in the Commonwealth auto com-munity: Finding people willing to work for an employer ina state that gets the lowest Labor Rate in the nation.

    Its to the point where its not even [about] whos thebest employee to have on [our] staff, he says. Just gettinga body to walk through the door is almost impossible.

    Not surprisingly, Vermette says that its not just inde-pendent shops that are staring down at a near-empty laborpool.

    I heard [of] one dealership offering a $5,000 signingbonus for an employee, and theyve been looking for quitea while, he reveals. They still havent [found] the rightemployee.

    The technician shortage comes at one of the most chal-lenging times in automotive repair history. With everythingfrom aluminum-intensive vehicles to autonomous brakingsystems affecting the educational side of the field, how willshops that are making far less than they deserve be able tokeep up with the training to handle the next generation oftechnologically advanced automobiles?

    As Vermette says, If youre too busy and not makingenough money, how do you pay for I-CAR training foryour guys?

    CATChiNG CARS wiTh The NeTLike Vermette, AASP/MA Secretary Gary Cloutier

    (Cloots Auto Body, Westfield) sees his unexpected boost inbusiness (nearly 14 percent over last year, he says) as bitter-sweet. While he has been out straight since March of thisyear without the benefit of a single insurer referral partner,Cloutier sees the constant stream of new work as a re-minder that he doesnt have the number of technicians heneeds to comfortably celebrate this success. In his mind, itsnearly impossible to get young techs to embrace the tradeat a time when you have stories in the news about work-ers at McDonalds who think they should be getting paid$15 an hour to serve hamburgers!

    According to the Bureau of Labor Statistics, the me-dian annual wage for automotive body and related repair-ers was $38,380 in May 2012. The median wage is the wageat which half the workers in an occupation earned morethan that amount and half earned less. The lowest 10 per-cent earned less than $22,530, and the top 10 percent earnedmore than $65,390. Not exactly huge numbers, especiallywhen considering that Massachusetts falls on the lower endof that spectrum.

    Of course, shop owners in todays market also have tocontend with an aging workforce. In a 2013 report preparedfor AASPs Pennsylvania affiliate, AASP-PA Collision Divi-sion Director Gregory C. McVicker elaborated on how thiswill affect the industry in the decade to come:

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  • In 2013, the average collision repairtechnician is 39 years old, accordingto I-CARs Education Foundation.According to the same study, 48 per-cent of the technical workforce fallsbetween the ages of 36 and 55. In ajob with the physical demands of colli-sion repair, the 83,136 technicians inthe US that are between the ages of 36and 55 will start leaving the industryover the next 10 years as they retireand move on to less physically de-manding professions.

    To make matters worse, as the in-surance industry continues to sup-press the Labor Rate in the name ofcost containment, the field will be-come increasingly unattractive toyounger workers as older generationsleave the industry in droves. Who willbe left to fix the cars?

    The system cannot keep going inthe present direction; the numbers justdont support it, Cloutier says. Ithink the system is going to collapse infive to 10 years. Theres no way ofavoiding it. There are fewer peoplecoming in than there are going out.

    To quote the film Titanic (perhapsthe most suitable comparison to bemade here), he adds that the eventualcollapse of the current structure is amathematical certainty.

    As frustrating as his current cir-cumstances may be, Cloutier does seean upside in the fact that he is earningmore and more interest from con-sumers. These days, Cloots AutoBody is typically booked two weeksout and vehicle owners have noproblem waiting. Not too long ago,Cloutier received a call from a poten-tial customer in Granby, CT.

    I havent been this busy sinceback in the early 80s, when I hadseven guys working for me! he says.

    The mystery surrounding theshops consistently filled bays clearsup a little once you consider Cloutiersongoing efforts in marketing to hiscommunity. In addition to promotinghimself online through Facebook anda website, he advertises in area publi-cations and regularly sends out gift

    cards and other promotional items tocustomers. An online search for bodyshops in Westfield reveals that Clootsis the top-rated business of its kind inthat market. Perhaps best of all,Cloutier tells us that more than a fewconsumers have remarked that theywere enticed to use the shop afterreading the five-star reviews left on-line by satisfied vehicle owners.

    If youre not marketing yourself,

    youre going to be a dinosaur, hesays.

    Of course, there is another impor-tant factor behind Cloutiers currentschedule: His shop is currently theonly operational facility in the West-field area that is an active member ofAASP/MA. Where do you thinkCloutier learned about many of themarketing tactics that hes using todrive work to his shop? Membershipindeed has its privileges.

    If youre not part of an associa-tion in the field or trade that youre in,youre a fool, he says. Youre goingto learn something either by going tothose meetings or from another guywhos in a similar situation.

    As evident in this feature, there isplenty of auto body work to goaround these days. Its just a matter ofensuring that shops receive their duefinancial rewards so that this increasein jobs can be celebrated as the victoryit should be.

    New England Automotive Report September 2014 45

    COVER STORY

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    veRMeTTe iS FACiNG AN eveR-GRowiNG

    dileMMA iN The MASSAChUSeTTS AUToCoMMUNiTy: FiNdiNG

    people williNG TowoRK FoR AN

    eMployeR iN A STATeThAT GeTS The loweST

    lABoR RATe iN The NATioN.

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    Youve made the decision to livebigger than you have, and man, you arepumped up! Shortly after this momen-tous event, your inner voice (that littlevoice in your head that tears you downand makes you second-guess yourself)kicks in and introduces you to fear.

    When you push yourself to grow,your brain sees this as risk, and yourfight or flight instinct cuts in. Thiscauses your brain to run all the negativescenarios that could possibly happen: Imight lose my business, my spousemight leave me, my kids wont loveme... get the idea? Depending on theintensity of your response, your pulseraces, your arms and legs can twitch -ready for action, your breathing short-ens and you are ready to survive! Thebyproduct of this fight or flight re-sponse is fear and you can react acouple of different ways.

    The first way to react to your fear isto shrink back, to contract. Its easy toconclude that the risk of failure isntworth the effort and you decide to stayin the safety of your comfort zone. Theproblem with this reaction is twofold.One, the safety you feel in your comfortzone is an illusion. Think of all the peo-ple blindly in their comfort zone whenthe recession hit...did it protect them?NO! They were slapped into reality, un-prepared mentally, emotionally andprofessionally, blaming the economyfor their lack of preparedness. Whenyou are in your comfort zone, you growcomplacent and lethargic while theworld races forward at breakneckspeed. You stop growing. Whatsworse, you dont just stand still andgradually become obsolete; with thespeed of change happening today, youare left standing there, choking on thedust of progress. Two, your comfortzone is going to lead to a life of medioc-rity and what ifs, eventually leading toregret. In hindsight, you will realizethat the fear of failure was nothing com-pared to the regret you feel because youtiptoed through life.

    The second way to react to yourfear is by over analyzing HOW you willachieve your goal. You want to be per-fect, so you gather as much knowledgeas you can, pour over every scrap, over

    analyze, over plan for every conceiv-able scenario...and do nothing. Its likegoing out to your car in the driveway,putting on your seatbelt, starting theengine, and then waiting until EVERYtraffic light is green between your homeand work before you leave! Does thatmake sense? I hope not.

    Instead, recognize the little voice

    for what it is, accept it and keep mov-ing. Standing up, stretching out yourarms as you take a big calming breathin really works to quiet that little voice.Realize that you will be courageous,that you will act not in the absence offear, but in spite of it. The most impor-tant thing you can do after you have

    Kick Fear to the Street!by Rick White

    180BIZ FEATURE

    continued on pg. 58

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  • For the last 52 years, I have lived 20 miles from YankeeStadium, home of the New York Yankees. For the last 52years, I have lived 10 miles from Madison Square Garden,home of the New York Knicks. When the Nets were in NewJersey, their arena was a 10-minute ride from my home.

    But I have a secret: Im a Red Sox and Celtics fan. If you know the way Yankee and Knicks fans are, thats

    equivalent to raising a Confederate flag in the middle ofHarlem. Through all these years, although my loyaltieshave wavered every now and then, I always seem to comeback to the Sox and the Celts.

    It all began when I was about sevenyears old. One of my first baseball memorieswas watching the retirement of Mickey Man-tle on TV. Now, my dad was a Joe Dimaggiofanatic. My brother loved Mantle. By thetime I found an interest in the game, therewasnt much left to root for around here. (Ijust couldnt see myself rooting for a guynamed Horace Clarke.) And the Mets? Thiswas before the 69 miracle. I dont think Iwas even aware of them. So, being an Italiankid growing up in a very Italian household, Ifound myself drawn to guys whose namesended in vowels. And the one who I thoughtwas the coolest was named Conigliaro. I firstbecame aware of Tony C. when I read a story about himgetting hit in the eye and almost killed by a pitch. The factthat he was a big home run hitter - coupled with the ideathat he was tough enough to come back from a devastatinginjury - was enough for me. Plus they had that other amaz-ing guy whose name ended in a vowel, Yaztremski. (Whatdid I know? I was eight!) There was Aparicio (againIwas eight), Tony C.s brother and, of course, Rico Petrocelli!My paisans! Down here, we had names like Mel Stottle-myre, Danny Cater and Jake Gibbs. Madone! I had nochoice.

    I also liked a Red Sox pitcher by the name of Jim Lon-borg. I had a cool game called All Star Baseball, and everytime I started Lonborg, I won. That sealed the deal. I was aSox fan (years later, I found out that the pitcher in theframe behind the bar on Cheers who was supposed to beSammy was actually Lonborg).

    Of course, I was tortured by my friends during ourbackyard wiffle ball games when Id go through a lineupwith all those guys along with George Scott, Mike Andrewsand Reggie Smith. But I didnt care. I had no knowledge of

    Ted Williams or the Curse of the Babe. I just liked the teamwith all the Italian guys.

    It didnt last, though. Those guys were soon gone, re-placed by the likes of Fisk and Rice and Lynn. I couldnt getinto them, especially once the Yankees brought back BillyMartin. Billy was the last in the long line of Italian Yankeelegends, and that tie to the past drew me back closer tohome. I also liked Thurman Munson and Ron Guidry (butNEVER Reggie), so I cant deny that I was thrilled whenthey won the back-to-back series over the hated Dodgers(despite Lasorda!).

    I kind of lost interest completely in base-ball during the 80s. Steinbrenner had startedbuying players, which turned me off com-pletely, but the Sox were no better. I dontcare if he was in a Sox, Blue Jay or Yankeeuniform; I always hated Roger Clemens. Nei-ther team was really any good until the late90s (Im not mentioning Buckner), when theYankees started their last dynasty. I was a fanfor the first year or so, but as always hap-pens, the obnoxious fans turned me away. Ican remember toasting the Diamondbacks forbeating them primarily because of CurtSchilling. And wouldnt you know, soon myman Curt was a Red Sox.

    I started getting back into the Sox during the 2002 sea-son. I liked Pedro, Millar, Damon and especially Varitek.He reminded me of Munson. When Wakefield gave up thathomer to Aaron f-ing Boone in the ALCS, I finally under-stood the pain the rest of New England had felt whenBucky f-ing Dent hit one over the monster in 78. But Iwasnt deterred, especially when they went out and got theYankee-killer, Schilling. His line comparing the mystiqueand aura of the Yankees to dancers in a nightclub is stillone of the best baseball quotes of all time.

    What can I say about 2004 that all of you havent reador thought and spoken? Even though I was in New Jersey,like the majority of you, I thought those idiots were doneafter falling behind 3-0 in the ACLS. The comeback was oneof the most exciting and unfathomable things I have everseen in sports. The bloody sock. Big Papi. Manny. What athrilling ride. And how exhilarating to repeat it again in2007and again, last year. Its been a great time to be aBoston fan.

    Even in the land of the Yankees.

    BehiNd eNeMyliNeSby Thomas Greco, Publisher

    PUBLISHERS MESSAGE

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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  • a number of initiatives that would negatively impact our in-dustry. Among these was SB 476 (an Act relative to auto in-surance repair programs that would essentially allow fordirect repair programs within the Commonwealth).AASP/MAs Legislative Committee and lobbying team willbe meeting this month to discuss our strategies for next ses-sion.

    On a lighter note, to me, fall means two things: Footballseason is here (and I hope the Patriots go undefeated), andAASP/MAs Casino Night is just months away! And thisyear, my favorite fall events will be held at the same place!

    As many of you are aware, our Casino Night event willbe held at the Putnam Club at Gillette Stadium. Much likethe Patriots games, our event will sell out! This year, ourtournament sponsor is Enterprise Rent-a-Car. We have heardsuch positive feedback from our valued members and spon-sor partners about this exciting event, and I am really look-ing forward to seeing you all on November 15.

    If you have not purchased your tickets, please do soTODAY at http://aaspma.org/uncategorized/casino-night-2014-gillette-stadium/. At the time of this writing, a limitednumber of sponsorships are still available. If you have nottaken advantage of our exclusive new offerings, please con-tact the association TODAY!

    Sincerely,

    Jillian ZywienExecutive Director

    discuss the complaints and follow the procedure as pre-sented by counsel. Further, he added that AASP/MAscomplaints were not filed against GEICO the insurancecompany. Before further discussion in executive ses-sion, the Board set their next meeting for September 23at 9:30am.

    Coyne made a motion for the Board to return fol-lowing the executive session, which was seconded byMcClements. The motion was opposed by Krupa andGarcia, resulting in a tie. (The Chair abstained to facili-tate a discussion.)

    Following a brief discussion, a second motion wasmade by Krupa to not return to executive session, sec-onded by Carl Garcia. The Chair voted in the affirma-tive, breaking the tie.Mike Powers reported that CarlGarcia would be recusing himself from the complaintreview, as his shop was cited by both AASP/MA andCommerce.

    The Board did not reconvene following their Execu-tive session; however, AASP/MA will be moving for-ward on our filed complaints by meeting with theAttorney General relative to the GEICO complaints.

    AASP/MA thanks all Board members who at-tended, along with AASP/MA staff. We appreciateyour continued support!

    58 September 2014 New England Automotive Report

    AASp/MAChallenges GeiCoARXplan, Gears Up For Fall eventscontinued from pg. 10

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    August 6 AdAlBMeeting Reportcontinued from pg. 11

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    written down the action steps necessary to achieve your goalis to take IMMEDIATE ACTION within five seconds. Realizethat it takes additional energy to change your state. If youhave been comfortable with the way things have been, andare starting something new, it will take more energy to getyou started than to keep you going. Compare this to drivingand accelerating from a full stop position. Moving forwardrequires more energy than it does to maintain a constantspeed. The term for this extra energy is known as activationenergy. Be aware of this and prepare for it by taking actionwithin five seconds (less thinking, more doing) and knowingyou will need to floor YOUR accelerator to get you whereyou want to be. The cool thing is that once you break throughyour fear a couple of times, you will find it easier to do it inthe future and your confidence will skyrocket. You will alsosee fear for what it really is: A thin curtain preventing mostfrom experiencing the excitement and fulfillment of livingtheir life fully.

    You are capable of SO MUCH GREATNESS! Ignore yourfear, take action NOW, and let that GREATNESS out!

    About Rick white & one eighty Business SolutionsRick White is a managing member of OneEighty Business Solutions (180BIZ), a Vir-ginia based coaching and business solutionsprovider to the automotive and truck repair in-dustries. Ricks clients consider him a trustedadvisor, helping them to increase profits andfree time while reducing stress. If you wouldlike more business tips and thoughts just likethis, please visit our Facebook page at www.facebook.com/180biz.180BIZ provides affordable, down to earth, one-on-one business coachingwith no long-term commitments and a money-back guarantee!To seehow we can help you and your business, please email us [email protected] or call (540) 833-2014.

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

    Kick Fear to the Street!continued from pg. 49

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    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.

    2014 MEMBERSHIP APPLICATION

    BUSINESS INFORMATION:

    Mr. Mrs. Ms.Business Representative Name: ____________________________

    Business Name ____________________________________________

    MEMBERSHIP TYPE

    REPAIRER MEMBER (check one)Collision Repair ShopMechanical Repair ShopBoth, Collision & Mechanical Repair ShopsOther Repair Shop

    SUPPLIER/ASSOCIATE MEMBER (check one)Auto Paint/Crash Parts/Auto Parts/WholesalerEquipment/Tool SupplierManufacturer/Sales AgentServices (Computers, Software, Vehicle Rental, Other)

    LIST OTHER SPECIALTIES ____________________________________

    ________________________________________________________

    What benefits motivated you to join AASP of Massachusetts?

    ________________________________________________________

    PERSONAL INFORMATION:

    Name ____________________________________________________

    Nickname ________________________________________________

    2014 ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2015)

    Total Due .................................................................................$395.00NEW! Political Action Committee (PAC)Donation...............$______

    Check or CashCredit Card: Visa MasterCard

    Card Number: __________________________________________

    Expiration Date: ________________________________________

    Signature: ______________________________________________

    Date: __________________________________________________

    *** PLEASE TYPE OR PRINT LEGIBLY ***

    12 post office Square, 6th Floor Boston, MA 02109phone: (617) 574-0741 | Fax: (617) 695-0173|[email protected]

    FoR oFFiCe USe oNlyCheck Number ______________________________Check date ________________________Check Amount ______________________________date Joined ______________________________Member Number ______________________Next Bill date ______________________________

    Street Address ________________________________________________________________________________________________________

    Mailing Address ______________________________________________________________________________________________________

    Phone Number ( )____________________________________ Fax Number ( ) __________________________________________

    E-mail Address ________________________________________ Web Site Address ____________________________________________

    Enrolled By (Name and Address) ________________________________________________________________________________________

    Street City State Zip

    Street City State Zip

    Just like good tools and equipment, membership in AASP of Massachusetts is avaluable investment. AASP of Massachusetts works for you through

    such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services.

    Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND

    RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

    As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the associationare tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

    MASSACHUSETTS

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    180Biz ..............................................................49American Honda............................................56Audi Group ....................................................30Axalta Coating Systems ..................................4Bald Hill Chrysler Jeep Dodge Ram............27Balise Wholesale Parts Express ....................44Baystate Chrysler/Jeep/Dodge ..................42Bernardi Group ........................................32-33Best Chevrolet ..............................................IFCBMW Group ..............................................38-39BMW/Mini of Warwick ................................46Clay Subaru ......................................................8Colonial Auto Group ....................................54DAgostino Insurance......................................9Empire Auto Parts............................................9Enterprise ........................................................13First Chrysler-Dodge-Jeep-Ram ..................23First Ford ........................................................23First Hyundai..................................................23Ford Group ....................................................59Future Cure ....................................................10Goyettes Inc. Auto Parts ..............................45Honda Group..................................................48Hyundai Group..............................................57Imperial Chrysler-Dodge-Jeep ....................18Imperial Ford..................................................36Infiniti of Norwood........................................52IRA Group..................................................14-15Jaffarian Toyota/Volvo..................................53Kelly Automotive Group............................IBCLinders, Inc. ..................................................29Long Automotive Group ..........................OBCMazda Group..................................................47McLaughlin Chevrolet ..................................23Mopar Group..................................................18NORTHEAST 2015........................................7Nissan Group..................................................26Nissan World of Dartmouth ........................43PPG ....................................................................3Robertsons GMC Truck ................................43Sarat Ford-Lincoln ........................................27SEMAShow 2014 ..........................................20Sentry Group ....................................................6Subaru Group............................................50-51Tasca Group ....................................................37Toyota Group..................................................36Toyota of Nashua ..........................................62Village Auto Group........................................60VW Group ......................................................22Wellesley Toyota/Scion ................................42

    AD INDEX

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

    remove inspection stickers from dam-aged vehicles. But I am sure of whatthe law requires, which is that all li-censed Massachusetts auto damageappraisers must remove a vehiclesinspection sticker when it is deter-mined that the vehicle may no longerbe able to pass a safety or emissionsinspection.

    So to all of you insurance apprais-ers, whether staff or independent,and all of you repair shop appraisers,

    it is time to get that old window glassscraper out of the drawer. Load it upwith a new razor insert, and start re-moving those inspection stickers.

    LEGAL PERSPECTIVE

    Attorney James Castleman is a managing member of Paster,

    Rice &Castleman, LLC in Quincy, MA. He can be

    reached at (617) 472-3424 or atjcastleman@

    prclawoffice.com.

    continued from pg. 17

    MASSACHUSETTS

    BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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