New Jersey Automotive March 2015

March 2015$595

THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org)AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

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2 | New Jersey Automotive | March 2015

New Jersey Automotive | March 2015 | 5


INDUSTRY UPDATE by Joel Gausten15 Senator Calls for Department of Justice DRP Probe

VENDOR SPOTLIGHT by Jacquelyn Bauman18 Staying Ahead of the Curve: Metropolitan Car-o-liner Continues to Adapt to an Evolving Industry

20 LOCAL NEWS Mobile Repair Backlash Escalates AASP/NJ Veteran Edits Collision Industry Textbook

NATIONAL NEWS24 Consent Decree, Litigation Under Siege in FL28 Edmunds Releases Controversial Report on Aluminum Repair Costs

LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.30 Divorce Law: A Primer

COVER STORY by Joel Gausten34 NORTHEAST: ITS SHOWTIME!38 NORTHEAST 2015 Seminar Schedule

NO BRAKES by Ron Ananian43 The Unvarnished Truth

52 AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY Legal Update Wharton Insurance Briefs

55 NEWS FROM FORD

THE LIST57 What Are You Most Looking Forward to at NORTHEAST 2015?

P.O. Box 734 Neptune, NJ 07753

EXECUTIVE DI REC TORCharles Bryant732-922-8909 / [email protected]

2013 - 2015 OFFICERSPRESIDENTJeff McDowell, Leslies Auto Body732-738-1948 / [email protected]

COLLISION CHAIRMANDave Laganella, Peters Body and Fender201-337-1200 / [email protected]

MECHANICAL CHAIRMANKeith Krehel, Krehel Automotive Repair, Inc.973-546-2828 / [email protected]

TREASURERTom Elder, Compact Kars, Inc.609-259-6373 / [email protected]

SECRETARYThomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / [email protected]

BOARDJerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / [email protected]

Sam Mikhail, Prestige Auto Body908-789-2020 / [email protected]

Ted Rainer, Ocean Bay Auto Body732-899-7900 / [email protected]

Anthony Sauta, East Coast Auto Body732-869-9999 / [email protected]

Randy Scoras, Holmdel Auto Body732-946-8388 / [email protected]

Anthony Trama, Bloomfield Auto Body973-748-2608 / [email protected]

BOARD ALLIEDJoe Amato, The Amato Agency732-530-6740 / [email protected]

Mike Kaufmann, Advantage Dealer Services973-332-7014 / [email protected]

PAST PRESIDENT ATTENDINGTom Elder, Compact Kars609-259-6373 / [email protected]

PUBLISHERThomas Greco ([email protected])DIRECTOR OF SALESAlicia Figurelli ([email protected])EDITORJoel Gausten ([email protected])MANAGING EDITORJacquelyn Bauman ([email protected])ART DIRECTORLea Velocci ([email protected])OFFICE MANAGERSofia Cabrera ([email protected])CONTRIBUTING EDITORSCharles Bryant Tom Greco Jeff McDowellMitch Portnoi Dave Laganella Ron Ananian

Published by: Thomas Greco Publishing, Inc.244 Chestnut Street, Suite 202, Nutley, NJ07110Corporate: (973) 667-6922 / FAX: (973) 235-1963

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VOLUME 45, NUMBER 3 | March 2015

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

16 MECHANICAL CHAIRMANS MESSAGE 62 NJA ADVERTISERS INDEX

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEYAUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVEare copyright 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Images courtesy ofwww.thinkstockphotos.com

The Alliance of Automotive Service Providers/New Jersey

Joe Amato, Sr.Ron AnanianJim Bowers

Charles BryantDon ChardGuy CitroEd Day

Dave Demarest

Tom ElderBob Everett

Thomas GrecoRich Johnson Wes KearneyNick KostakisJim KowalakJoe Lubrano

Michael LovulloSam MikhailRon MucklowGeorge PetraskRuss Robson

Jerry RussomanoGeorge Threlfall

Cynthia TursiLee VetlandPaul VigilantRich WeberBrian VesleyGlenn VillacariStan Wilson

HALL OF FAME

CONTENTS


OUT OF BODY (AND MECHANICAL) EXPERIENCES

As show managers of NORTHEAST, we rarely get theopportunity to take advantage of all that the show has tooffer. As I just mentioned to one of my co-workers, there re-ally isnt any time to create memories because for us, theweekend is basically made up of work and stress and workand stress and work and stress. So this year, I figured Id take a step away and ap-proach the show from an attendees point of view - at leastfor this article - and show you how I would get the most outthe NORTHEAST experience. By all means, feel free to fol-low this guide. First up, on Thursday, March 19, I would head over tothe Meadowlands Exposition Center (MEC) to check outthe NASTF Spring General Meeting. This will be their firsttime at the show, and I would be interested to see what the

group is all about. When the meeting breaks up, Id hop onRoute 3 west and make my way to the best hot dog joint inthe world, Rutts Hut in nearby Clifton, for a dinner made upof three wellers, a frenchy well, a beef barb and quart ofMarvis. Then Id head to where Tony Soprano was lastseen, Holstens in Bloomfield, for their delicious homemadeice cream before heading home to rest up for a very busyweekend. Friday afternoon, Id leave the shop early and sit in onthe 2015 NORTHEAST East Coast Resolution Forum (co-hosted by AASP/NJ and SCRS), where I could find outwhat was going on around the country from dozens of in-dustry leaders from all points - east, west, north and south.At 5:30, Id look in on Tony Passwaters How Have WeGotten Where the Industry is Today? presentation before

by THOMAS GRECO, PUBLISHER

BEST IN SHOW


getting a prime seat for the highly anticipated showdownbetween Larry Montanez and Kristin Felder. Having EdKizenberger as the refereeI mean moderatorwill onlyadd to the fun. After that, Id hit the show floor to take my first look ateverything and anything thats new, stopping by theAASP/NJ booth to see what demos are going on. Home by11. Not bad for a Friday night. Saturday morning, Id get to the show by 8:30 to get ajump on the crowds and spend the morning attending asmany seminars as I could from the many offered, includingtwo I-CAR classes, Larry Montanezs Estimating and Diag-nosis of Structural Damage on Aluminum-Intensive Vehi-cles and Joining Methods and AASP/NJs ExecutiveDirector Charlie Bryants cant-miss Steering: A Legal Per-spective. After lunch, Id stop by the booth of NORTH-EAST Platinum Sponsor, BASF, and get an autograph andpicture with the one and only Ryan Friedlinghaus beforefinding out how to Stop Leaving Money on the Table! fromJohn Niechwiadowicz and Jerry McNee. After that, it wouldbe time to hit the show floor once again, checking out thegreat deals on products and equipment and stopping off atthe new Hands-On area to see the incredible custom

paint work of Javier Soto, take a shot at winning a TV at thevirtual welding contest and find out about custom wrappingfrom Wrapmasters East. After a quick freshening up, Id head five miles east tothe city that never sleeps. You have your pick of incrediblerestaurants in New York, but mine would be the legendaryPeter Luger Steak House. Theres a reason theyre knownas the Worlds Best. See for yourself. Next up? The neonlights of Broadway. Again, with so much to choose from, itshard to make a decision. But you KNOW Im going to seeJersey Boys. You can take the boy out of Jersey, but Once Im out of the play, its time for a drink and a latemeal, so Im heading to the Spotted Pig. Best burger andfries ANYWHERE. Sunday, Im back at NORTHEAST with my credit card.This is my buying day. I walk the floor one more time, final-izing deals and payments. Im home by late afternoon, re-laxing and feeling fulfilled, knowing I got the best myindustry can give me in three short days. So thats how Id do it. Take any part of this and do withit what you want. Just make sure not to miss NORTHEAST2015.

NJA

If you keep up with industry hap-penings and updates even a little, itwas nearly impossible to miss thenews of the collision repair industry

being featured on CNN just a few shortweeks ago. On February 11, AndersonCooper 360 aired a special seg-ment, Are Cheap Repairs Part of an

Insurance Scheme? (In case youmissed it, the segment can be viewedonline in its entirety at http://tinyurl.com/CNNCheapRepairs). This specialreport was explosive for our industryand exposed to the general publicsomething we repairers have known fora very long time: The intrusion of out-side parties into the repair process cansometimes have dire consequencesfor consumers. It also did a good jobof detailing legal actions that someshops are taking against insurers thatfail to operate with the true customersbest interest in mind. Its important to note that the CNNreport did a bit of generalizing inspots. There are good DRP shopsout there, just as there are bad shopsthat are not on Direct Repair Programs.However, by and large, the informationpresented painted a very interestingpicture of the insurer-shop relationship,and left an opening for much more in-formation to come in the future. Imsure that this is just the tip of the ice-berg, especially as industry memberslegal fights continue to crop up acrossthe country. I would advise anyonereading this to spread the word to yourcustomers. Display the Web link listedabove somewhere prominent in yourshop - the counter, a customer waitingroom monitor, even stapled at the topof your final bills - and inform them thatthis story aired. We need more peopleto see this coverage. The more mo-torists who are made aware of what ex-actly goes into the repair process - andwhos trying to commandeer it - thebetter.


PRESIDENTS MESSAGE

THE TIP OF THE ICEBERGby JEFF MCDOWELL

NJA

On February 11, AndersonCooper 360 aired a program that hasthe entire industry standing at atten-tion. CNNs Drew Griffin investigatedclaims that some insurance compa-nies are skimping on repairs for dam-aged vehicles in order to pad theirprofits. The majority of collision industrymembers saw this report on Ander-son Coopers show as a good start.Others felt that the show was one-sided, inaccurate or even completelywrong and stated that certain retrac-tions should be made. I will be thefirst to admit that certain issues needto be clarified further and that theshow was a bit harsh, as some put it. Yet, in my opinion, it needed to beharsh. You have one industry control-ling another industry to the pointwhere peoples lives are at stake, allin the name of a profit. To sugarcoatthis would be to condone these prac-tices, and that should never be done. The Automotive Recyclers Asso-ciation (ARA) responded that the seg-ment was one-sided, unbalanced andincluded many mischaracterizationsand misrepresentations about thequality of recycled OEM parts thatARA member facilities proudly sell. Icant blame the ARA for sticking upfor their members and wanting to clar-ify the issues. The problems that thecollision industry is faced with shouldnot be painted with a one-size-fits-allbrush. There is a place in our industryfor used automotive parts. However,when an insurer starts insisting onused suspension parts and othersafety-related items, a line has to bedrawn in the sand. Parts that play amajor role in the function of an auto-mobile and safety of passengersshould always be replaced with newparts. A State Farm representative re-sponded to the CNN report, claimingthat his company only uses cosmetic

used and aftermarket parts. That issimply untrue. State Farm and quite afew other insurers write for used sus-pension parts on a regular basis. Iknow this because I run a Hot Lineand get these calls all the time. CAPA responded to the report,basically claiming that the answer tothe aftermarket parts issue would beto use only CAPA-Certified Parts. Inrunning the Hot Line for the collisionassociations in New Jersey for over20 years, I have found that calls

come in reporting the same problemswith CAPA Certified Parts as non-CAPA Certified Parts (i.e., they dontfit, they dont weigh the same, theydont have the rust protection thatOEM parts do, they have missingwelds, etc.). In February 1999, Con-sumer Reports did a front-page com-prehensive report on aftermarketparts entitled Shoddy Auto Partsthat pointed out these issues. Thereport showed many examples, in-cluding the fact that CAPA certifica-tion does not fix the problems withaftermarket parts. Also, I can providelinks to many examples of aftermarket

parts not fitting (including CAPA-Certified Parts) upon request. On the issue of artificially sup-pressed Labor Rates, simply put, theLabor Rates have been artificiallysuppressed for so long that the rateswill need to be doubled or tripled inorder to catch up to where theyshould be in todays market. A primeexample of how to substantiate this isto look at the mechanical Labor Ratesin New Jersey, which are betweendouble or triple the auto body rates.

The reason for this is not that it costsmore to open and run a mechanicalshop than an auto body shop. Thereason the mechanical rates are somuch higher is because the rateshave been established by seekingtheir own level, without an insurerstanding between the shop and thecustomer. Another way to substantiate theneed to double or triple the rates isto look at what one of the top-rankedinsurers in New Jersey just did a fewmonths ago. On December 10, NewJersey Manufacturers InsuranceCompany (NJM) announced that they


EXECUTIVE DIRECTORS MESSAGE

CNN Brings National Attentionto the Issue of Steering by CHARLES BRYANT

Image courtesy of www.cnn.com


have adjusted the Labor Rates to dou-ble or triple what they previously paidon certain cars for shops that havemade the investment in the equipment,training and certification necessaryto repair these vehicles safely andproperly. There is no doubt that the majorlawsuits in both New Jersey andaround the country played a major partin this landmark decision. However,NJM should be commended for beingthe first insurer in New Jersey to ac-knowledge that the artificially sup-pressed Labor Rates that insurers havebeen paying for collision repairs aresimply not adequate to compensatecollision shops to repair cars safelyand properly. Another subject that hit homeregarding the CNN report was DirectRepair Programs. Many DRP shopsfeel that the report painted the picturethat no DRP shops do not repair vehi-cles properly. To that I ask, are DRPshops the problem in the collision in-dustry? Absolutely not; steering is theproblem. With that said, are thereproblems with the guidelines thatinsurers require shops to meet in orderto get on and stay on Direct RepairPrograms that need to be addressed,as well as other issues directly relatedto the DRP systems? Absolutely. Again, the problems that thecollision industry face should not bepainted with a one-size-fits-all brush.Not all shops on DRPs even want to beon the programs. Some of those on theDirect Repair Programs are on them asa defense mechanism in order to keeptheir own work from being steeredaway from their shop. In other words, ifcertain shops refuse to participate inthe programs, you can rest assuredthat their work will get steered awayfrom them. Even though many of the DirectRepair Programs have restricted repairguidelines that dont pay for all thenecessary procedures required to re-pair vehicles safely and properly, manyof the shops still repair the vehiclessent to them through the DRP correctlyand waive getting paid for the thingsthat the DRP guidelines do not allow

continued on page 47

EXECUTIVE DIRECTORSMESSAGE

Senator Calls forDepartment ofJustice DRP Probe

Following a February 11 CNN investi-gation (http://tinyurl. com/CNNCheapRepairs) uncovering new evidence thatauto insurance companies may be directingrepair shops to use cheaper and possiblymore dangerous parts, US Senator RichardBlumenthal (D-CT) has sent a letter toAttorney General Eric Holder, urging theDepartment of Justice (DOJ) to investigate.

Contrary to what consumers may beled to believe by their insurers, repair shops

preferred by insurers do not necessarily equate with quality re-pairs, Blumenthal wrote in the February 13 letter. It seems tobe common knowledge among auto repair shops that the best wayto land a coveted spot on an insurers preferred list is not neces-sarily by delivering consistent, quality service, but by agreeing tocharge below-market Labor Rates and use cheaper, salvaged,used or even counterfeit parts of questionable quality and safety. Additionally, Blumenthal requested the DOJ determinewhether insurers are in violation of the 1963 Consent Decree orany other federal laws:

According to a 1963 consent decree with the DOJ, a numberof insurers were ordered to stop: sponsoring any appraiser;directing, advising or otherwise suggesting any person orfirm do business with any independent or dealer-franchisedautomotive repair shop; exercising control over the activitiesof any appraiser; and fixing or otherwise controlling theprices charged by automotive repair shops for the repair ofdamage to the vehicle or for labor in connection therewith,by use of a flat rate. Over 50 years have since passed, andconsumers and auto repairers possibly remain victims of thevery same misconduct insurers were directed to stop doingdecades ago.

I urge the DOJ to investigate and make a determination as towhether such practices violate the 1963 consent order or anyother current federal laws. As you investigate this matter, Iurge you to use your authority to investigate the contents ofcontracts between insurance companies and facilities listedin their direct repair programs or preferred lists. I wouldalso like to request an update regarding DOJs understand-ing of the current signatories of the 1963 consent decree andwhether they continue to be bound by the consent decree inlight of business transactions in the years since the decreewas signed.

More responses to the CNN report can found on pages 10and 12 of this issue of New Jersey Automotive.

INDUSTRY UPDATE

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MECHANICAL CHAIRMANS MESSAGE

THEY DONT BUILD THEMLIKE THEY USED TO!

by KEITH KREHEL

Recently, I thought back to my first car, a 1968 Pontiac Firebird. The car was pretty neatand I truly enjoyed it, as it was equipped with a 350 V8, four-speed transmission and Hurstlinkage. (Unfortunately, it didnt have air conditioning.) I bought it used in 1974 for $575. Ipresently drive a 2004 Chevy Impala, and I got to thinking about how they matched up toeach other overall, since there is a 36-year difference in technology. By giving a brief com-parison of the two cars, system by system, I think you will see how far modern automo-biles have progressed.

Brakes There is a huge advantage to theImpala when comparing the 68 Fire-birds four-wheel drum versus the Im-palas four-wheel disc brakes. Stoppinga heavily powered sporty car like theFirebird was a challenging task, and thefactory four-wheel drum brakes didpoorly. Heres why I say this:

Drum brakes tend to pull, especiallyafter the first brake job. After that, thedrums become different diameters dueto machining.

Drum brakes performance deterio-rated quickly upon heavy braking, as thedrums held the heat.

Water especially affected drum brakes,and I remember not being able to stopat a red light once after passing througha flooded road. Even though I was cau-tious and going at a slow speed (maybe20 mph), I could not stop the car evenwith applying full effort on the brakepedal.

Drum brakes are problematic, relativelyhard to install and had a lot of smallparts that could go wrong. I am stillamazed how many times I have comeacross primary and secondary shoesswitched or mismatched side to side.This does not bode well for the profes-sionalism in the field, and stopping thiscar straight at high speed could be ahandful.

Tires Another win goes to the Impala,which is equipped with radial tires ver-sus the bias-ply (red line) factory tires onthe Firebird. Although the Firebird was faster,turning the car at a decent speed waschallenging, as the car was equippedwith the bias-ply tires. It would be inter-esting to see which car would be fasteron a tight road course with a lot of turns.

Radial tires allow the Impala, which isbasically a family car, to out-handle asporty performance vehicle. Besides su-perior handling, radial tires last signifi-cantly longer, provide a better ride andare much better in snow.

Emissions The Impala wins again. The emis-sions on the Firebird equipped with acarburetor were brutal compared to themodern fuel injection of the Impalaequipped with a catalytic converter.

Fuel Mileage The fuel mileage of the Impala isabout double that of the Firebird. An-other advantage became apparent tome on a trip to California in my Firebirdwhen I traveled to higher elevations. TheFirebird ran poorly and emissions wors-ened, as it was only set up to run at sealevel. The higher elevations I traveledthrough created drivability issues; mod-ern fuel-injected cars automatically ad-just to higher elevations seamlessly.

Maintenance Of course, it is the Impala. Modernfuel injection and ignition systems pro-vide reliable operation before a tune-upup to 100,000 miles, not including airand fuel filters, while the Firebird neededa tune-up every 10,000 to 12,000 miles.Points, plugs and condenser, anyone?Oil changes are also less frequent, as5,000 miles with a mineral-based oil isnow the norm versus the 3,000 miles ofyesteryear.

Safety The Impala - and this ones not evenclose. Anti-lock brakes combined withfour-wheel disc brakes allow the car tostop quickly and safely, even if thebrakes are over-applied. While theFirebird did have two seat belts for bothfront seats (lap and shoulder), they were

individual belts and prevented anymovement by the front occupants, somost people would not use the shoulderbelts. The Impala, on the other hand, hasmodern one-piece belts that allow move-ment most of the time.

Traction The Firebird was horrible in thesnow, as most rear-wheel drive automo-biles were. Combine this with bias-plytires, and things could get dangerous.Modern front-wheel drive vehiclesequipped with traction control and radialtires provide sure-footedness, allowingme to drive through light snow safely.Some of the older readers of this article(Hi, Mom) can remember how snow-storms used to polarize the area andbring traffic to a crawl. I remember as achild, a lot of neighborhood moms wouldnot operate a car in even the slightest ofsnowstorms.

Durability There used to be a day when100,000 was a lot of miles on a car. Now,I regularly expect 250,000 to 300,000 outof a regularly maintained vehicle. Theautomobile bodies themselves are hold-ing up much better as well, even thoughroad salt usage has increased dramati-cally over the years in our area.

Paint and Appearance Modern cars with clearcoat overpaint hold up very well and without a lotof maintenance. Im not sure if I evereven waxed the Impala and it still looksgreat.

Really theres no comparison be-tween the two vehicles, as one is headand shoulders above the other (nottalking style). No, they dont make themlike they used to, but we should all begrateful.

NJA

VENDOR SPOTLIGHT by Jacquelyn Bauman

Regardless of what business yourein, there are two ingredients that areessential to success: equipment andtraining. In the automotive repair industry,this is especially true, as the lives of yourcustomers depend on your ability to stayup-to-date with changes in both toolingand technique. Luckily, for body shopowners in the Northeast, MetropolitanCar-o-liner helps fulfill these needs. Metropolitan Car-o-liner is always on the forefront of a constantly evolvingindustry, ready to take on new needs andchallenges as they arrive.

Metropolitan Car-o-liner has alwaysadapted to the changes in the collisionrepair industry, says President DaveDemarest, Jr. We supply the latest equip-ment and training so our customers canprovide safe and profitable repairs. On the eve of GMs first mass-marketed, US-built uni-body vehicle al-most 35 years ago, the company firstopened its doors in Northvale, NJ. It uti-lized a small space within Stateline AutoBody, the shop belonging to Dave De-marest, Sr. Dave Sr. was introduced to theinternational Car-O-Liner through his

shops relationship with Volvo. He had theopportunity to evaluate the companysnew frame repair bench and immediatelysaw the value in providing Car-O-Linerproducts to his market. A number of things have changedsince then. Aluminum has replaced uni-body as the newest thing in collision re-pair, and the company now operates out ofa 9,200-square-foot facility in Mahwah double the size of its previous location andboasting a larger warehouse, training facil-ity and office space.

STAYING AHEAD OF THE CURVE: METROPOLITAN CAR-O-LINER CONTINUES TO

ADAPT TO AN EVOLVING INDUSTRY

The new Metropolitan Car-o-liner facility isalmost double in size of its previous location to

meet increased industry demand.

The Metropolitan Car-o-liner team: (back row, left to right) Dave Demarest Sr., Stalyn Deleon, Dennis Farrell, Dave Demarest Jr., Anthony Cetani, Mike Casey,Blake Darling, Tim Garner and Mike Demarest. (Front row, left to right) Cheryl Formicola, Kathy Demarest and Jon Santiago.

Metropolitan Car-o-liner is approvedby a number of important carmakers, in-cluding Audi, Bentley, BMW, Buick,Cadillac, Chevrolet, Chrysler, Daewoo,Dodge, Ford, GMC, Hyundai, Infiniti,Isuzu, Jaguar, Jeep, Kia, Lexus, Lincoln,Mitsubishi, Nissan, Saab, Tesla, Toyota,Volkswagen and Volvo and its no se-cret why the Car-O-Liner brand is sowidely respected across the industry. Were proud that Car-O-Liner hasthe OEM equipment approvals of almostevery manufacturer, including those withcertified structural aluminum programs,Dave Jr. explains. With Fords new F150aluminum body pickup, repairs, equip-ment and training will be new to many inour industry. When it comes to improving thecollision repair process, MetropolitanCar-o-liner doesnt solely provide shopswith the right tools and equipment theyneed to thrive: they also help to improveknowledge through training. Since 2003,Metropolitan Car-o-liner has been anI-CAR volunteer training site. Just fouryears later, it was recognized for trainingover 2,500 technicians, appraisers and ad-justers. With its size, the new facility lendsitself to the hybrid boardroom and class-room dynamic that Car-O-Liner providesin its training. It was important to find a new loca-tion that could accomodate larger trainingclasses, said company owner and founderDave Demarest, Sr. at the opening cere-mony for the new facility. As it is, our industry is plagued by improper repairs.Were trying to rectify that gap we see inour field before it gets any worse. Hewent on to laud the individuals who arewilling to stand at the front lines of theirindustry and learn. The industry is changing, and itsgreat to see technicians who are willing togrow with it. This is your livelihood. Itsimportant to stay educated on the trendsoccurring in your line of business. Shop owners need to keep abreast ofchanges in vehicle construction and recon-struction, says Dave Jr. They are goingto see increased use of aluminum, higherstrength steels and alternative materials.

Considering Metropolitan Car-o-liners dedication to improving the indus-try, its no surprise that its an activeparticipant in the NORTHEAST Auto-motive Services Show since the first year.For the 38th annual event on March 20-22at the Meadowlands Exposition Center inSecaucus, Metropolitan Car-o-liner is al-ready planning one of the biggest boothsat the event. Check out Metropolitan Car-o-liner at NORTHEAST 2015, booths 117

and 217, and register for their Saturdaymorning presentation by Larry Montanez,Estimating and Diagnosis of StructuralDamage on Aluminum-Intensive Vehiclesand Joining Methods at www.aaspnjnortheast.com/seminars-demos.shtml

NJA


For more information onMetropolitan Car-o-liner, visit theirwebsite at www.metrocol.com.


LOCAL NEWS

Mobile RepairBacklash Escalates Since addressing the controversy surround-ing mobile repairers in our August 2014 coverstory (Lot Lizards And Broken Laws), New Jersey Automotive continues to receive regularreports from readers that a number of these unlicensed businesses are still doing work atdealership parking lots and other outdoor areas,failing to take the proper safety and equipmentprecautions necessary to perform a proper job. One Bergen County-based shop owner specializing in high-end repairs tells us thatquite a few of the dealers that send him workalso welcome unlicensed repairers to set upmakeshift operations in their lots even in thesecurrent cold weather conditions. If I had an $80,000 car and I look outsideand see somebody painting it, Id think twiceabout using that dealer, he says. These guysarent using flex additives or anything. It mightseem good at first, but then six months down theroad, the paint is just flying off the bumper. Youhave guys coming in with broken-down vans, oreven guys in double-wide trailers pulling cars inand spraying them. It doesnt seem like its legal.How are these guys allowed to spray outside? Anunsuspecting customer doesnt realize [the kindof work thats been performed], but when yousee it as a professional, it stands out. Also, whatare they doing with their waste? Id like to see it stopped or regulated, addsanother reader, who says he wants to see theMotor Vehicle Commission at least send outwarning letters to these mobile operators. Itsjust not a fair playing field when I have to pay fora building and all thats involved in a legitimatebusiness, and all this guy has to do is pay for hisgas and his materials to work out in the open air.If a guy goes out and does four or five bumpersa day with no overhead, hes making a decentliving, but you cant open up a shop and justpaint cars and not have a license. If you are experiencing issues with mobile repair businesses in your area, please contactNew Jersey Automotive Editor Joel Gausten at(973) 600-9288 or [email protected].

Celebrating his 13th year as anautomotive educator in 2015, former NewJersey shop owner and past AASP/NJBoard member Bob Magee does muchmore than simply teach from a textbook he helps create it. Recently, Magee (who teaches Automotive Engineering & Design atBergen County Technical High School inTeterboro) served as one of the editors forthe sixth edition of Auto Body Repair Tech-nology, an extensive book used in collisionrepair classes around the world. He previously served in the same capacity for the fifth edition,published in 2008. Magees entry into the world of book editing began after he inquired about making some changesto the then-current book used at his school. When I first came here and was told I had teach out ofthe book, I looked at it and thought, This book is so outdated.Why would I teach out of it? he remembers. I emailed thecompany and said, Im supposed to be teaching out of yourbook, but there are so many mistakes and things that are outdated in it. What would you suggest? They replied thatsince I was so knowledgeable on the subject, I should try editing one of their chapters. Before long, Magee was going through every line andphoto in that chapter, suggesting substantial revisions alongthe way. They sent me a letter basically saying they never had somuch input on one of their chapters before, he says. Thatswhen they asked me if I wanted to do the whole book. In addition to having an impact on the fifth edition of AutoBody Repair Technology in 08, he also edited part of JamesDuffys Collision Repair Fundamentals book, going as far asreceiving sole author credit for that titles accompanying In-structors Manual. Unsurprisingly, Magees involvement in thebooks has led to positive feedback from the various senators,freeholders and other officials who visit the school. Even after more than a decade away from everyday life ina professional repair facility, Magee is still committed to doingthings right, As he says, You can take me out of the body shop, butyou cant take the body shop out of me!

AASP/NJ VeteranEdits CollisionIndustry Textbook

NJANJA

As reported in last months New Jersey Automotive asthe issue went to press, a controversial January 21 order issued in A&E Auto Body, Inc., et al. v. 21st Century Cen-tennial Insurance Company, et al. (one of the more than 20antitrust suits currently consolidated in the Middle Districtof Florida) has introduced a serious roadblock in front ofthe industrys efforts to address insurer abuse in court anddelivered a high-profile blow to the effort to enforce the1963 Consent Decree. In his ruling, US District Judge Gregory A. Presnelldismissed one of the seven counts in the A&E case,quasi-estoppel, with prejudice, meaning that the plaintiffscannot refile a revised argument for it. Quasi-estoppelprevents one party from taking a position inconsistent witha position that was previously advocated, regardless ofwhether the party to be estopped intended to misrepresentor conceal facts. Although Florida courts have long recog-nized that equitable estoppel serves as a defense, JudgePresnell stated that it was unsuitable as a plaintiff argument:

In Count III, the Plaintiffs seek to have quasi-estoppel ap-plied in regard to the repair estimating databases...ThePlaintiffs allege that the Defendants have relied upon andasserted the validity/authority of the databaseswhen it hasbeen to their respective advantage but that, in other in-stances, the Defendants have refused to compensateand/or fully compensate Plaintiffs for materials expendedand work performed, including labor and labor rates, uponreliance of these very same guides, claiming that they areunnecessary to complete the work at handThe Plaintiffsseek to have the Defendants estopped from denying the ap-plicability and reasonableness of the repair databasesHowever, while Florida courts recognize the doctrine ofquasi-estoppel, they do not recognize it as a cause of action.The Plaintiffs do not seriously attempt to argue to the con-trary, and do not cite any cases in which a Florida court haspermitted anyone to bring suit on the grounds of quasi-estoppel. The Courts research has also failed to uncoverany such cases.

Regarding the Consent Decree, Judge Presnellcommented in his order that the much-discussed 1963agreement is undeserving of consideration in the currentlegal battle unfolding in his state:

In the Amended Complaint, the Plaintiffs repeatedly refer to aconsent decree entered in a 1963 suit between the UnitedStates on one side and three insurance trade associationson the other. (Doc. 167-5). Although some of the practices atissue in the consent decree are alleged to have occurred inthe instant case, none of the parties in this case were partiesto the 1963 case, and the Court does not find the 1963 con-sent decree to have any relevance to the instant case.

The full text of Judge Presnells decision can be readat http://www.repairerdrivennews.com/wp-content/uploads/2015/01/gov.uscourts.flmd_.294598.291.0-01-21-15.pdf. On February 10, the plaintiffs filed a 92-pageamended complaint to address the remaining counts ofthe case previously dismissed by Judge Presnell withoutprejudice. These include boycott and price-fixing in viola-tion ofthe Sherman Antitrust Act, conversion, quantummeruit, tortious interference with business relations andunjust enrichment. In this revised complaint (available in full at www.repairerdrivennews.com/wpcontent/uploads/2015/02/gov.uscourts.flmd_.294598.296.0.pdf),the plaintiffs make their intentions behind their suit clear:

In the American marketplace, there are two types of bodyshops. There are shops who strive to serve the customer, theowner of the car, and there are those shops who believe theinsurance company is their customer. The defendants havesuccessfully created a market system that rewards thebody shops that will cut corners so they can increase profitsand punishes body shops who are unwilling to compromisethe quality or safety of the American consumers repair.

The whole intent of antitrust actions was and is to increasecompetition for the sole benefit of the American consumer.Defendants actions have violated the letter and the spirit ofthe law. Instead of providing the best quality repairs for thelowest cost, they have fixed the costs to theirutmost benefitand forced the market into a race to the bottom in terms ofquality to the customer.

According to a February 10 report by www.RepairerDrivenNews.com, insurers that have been sued in Ari-zona, Alabama, California, Illinois, Kentucky, Michigan,New Jersey, Oregon, Pennsylvania, Virginia and Washing-ton have until February 20 to respond to the complaintsfiled against them by shops in their states. Judge Presnellwill be the one to hear these cases. New Jersey Automo-tive will update readers on this story as it develops.


Consent Decree,Litigation UnderSiege in FL

NATIONAL NEWS

NJA

With the much-discussed aluminum-intensive 2015 Ford F-150now hitting Americas roadways, consumers and auto body pros alikeare curious just how the vehicle will compare to steel-body vehicleswhen it comes to repair lengths and costs. Edmunds.com recently putthe new F-150 to the test with very controversial results. In a two-part video/three-part story posted at www.edmunds.com on January 26, Edmunds Associate Editor TravisLangness struck the right quarter panel of a brand-new, $52,000 F-150 truck twice with an eight-pound sledgehammer. In addition tocausing damage to the panel, the hits resulted in a crack in the righttaillight lens that didnt affect the actual lights functionality. Langness took the damaged truck to a local dealer, Santa Mon-ica Ford-Lincoln, for a quote and repairs. He was originally quoted$2,082.73 and seven to 10 days to complete the repair the panel,which the dealer predicted would take at least 20 hours. Additionally,he was quoted $60 an hour for the work instead of the dealers usual$120/hour aluminum rate because he was paying out of pocket. Ac-cording to Langness, the dealers service manager said the job wouldtake twice as long as steel. Less than a day after dropping off the truck, Langness receivedbad news from the dealer: The taillight which included a blind-spotsensor was only sold as a complete unit. This brought the amountto replace the light from $106.28 for a standard light to $887.25 forthe F-150 unit. When the repair was finally completed, the job took 24.4 hoursand cost $2,938.44 (including body labor, parts, paint labor/suppliesand sales tax). Twenty of those hours were for the actual aluminumbody panel, while the remaining 4.4 hours were for removing themolding and other procedures. Based on these figures, Edmunds tookthe discussion even further:

If we go with the theory that our service advisor presented...andassume fixing a steel panel would take half the time, it works outto just 14.4 hours of labor. [If you work that into the estimate],youll get a total of $2,338.44. Thats $600 less. Assuming thatthe Labor Rate for aluminum was the $120 an hour the serviceadvisor told us, and going with our quoted time of 20 hours[for] body labor to pound that panel out [plus the other workthey did], were looking at $4,138.44. Thats a difference of$1,800, a price increase of nearly 77-percent versus the cost ofrepairing a steel panel for 10 hours at $60 per hour...Imagineyouve got a $500 or even $1,000 deductible on your insurancepolicy. You hit a tree, tell the body shop guy you have no ideawhat happened, but insurance is paying to fix it. Your insurancepremiums may go up, but the remainder of the cost is passedalong to your insurance company. In this scenario, the associ-ated insurance cost for owning an aluminum-bodied vehiclelikely goes up too. Maybe it already has. Theres plenty to specu-late about when it comes to the new 2015 Ford F-150, andweve got a year to keep testing out our theories, but there are afew things we know for sure. One: It takes more time, unique

tools and specialized training to fix aluminum body panels. Two:Those repairs, whether through higher Labor Rates or longerservice times, cost more money than repairing steel.

Naturally, the manufacturer of the F-150 was quick to respond tothe Edmunds story. In a Ford earnings call on January 29 (availableas a transcript at www.thestreet.com/story/13028379/15/ford-motor-f-earnings-report-q4-2014-conference-call-transcript.html), FordPresident/CEO Mark Fields stated that the large discrepancy betweenaluminum and steel repair noted in the report was the result ofdealer error:

We saw the [Edmunds] report and unfortunately... the dealerwas incorrect. The amount of time to repair based on the stan-dards that we have developed and also shared with the dealers,it would have been about half the time, so it wasnt quite cor-rect..[O]verall in terms of what weve done, we trained over 750 dealers to be certified. Unfortunately this dealer that [Edmunds]went to was not one of them.

As sales of the 2015 F-150 continue to escalate, the company isworking to inform consumers of the benefits of utilizing certified/rec-ognized repair facilities. According to Ford Truck CommunicationsManager Mike Levine, anyone who purchases an F-150 or any Fordvehicle is encouraged at the time of purchase to register atwww.owner.ford.com to receive regular information about their ve-hicles. Additionally, the site offers a special search feature that allowscustomers to specifically look for F-150-certified/recognized shops intheir area that can perform aluminum structural repairs. (To samplethe search function without having to register, go to www.owner.ford.com, click on Parts & Accessories, select Why Ford CollisionParts and use the Locate a Dealer function to search by zip code.Then, use the Advanced Search Filters at the bottom to find areadealers and independents in the F-150 Aluminum Repair category.) Responding to the issues raised by the Edmunds report, Levineis adamant that the video and article do not reflect the everyday reali-ties of repairing these vehicles. The repair should have taken less than 10 hours, which is com-parable with the time it would have taken to repair a steel vehiclewith similar damage, he says. One incident with one vehicle at aparticular dealer in California is not representative of how things willbe for all customers. Additionally, Levine says that the insurance industrys responseto the aluminum-intensive F-150 has been calmer than some havesuggested. When the truck was introduced, we said that [insurance rates]would be comparable to the previous truck and other full-size trucksin the segment, he offers. [For example,] State Farms make andmodel rate for the all-new F-150 is in line with that of the 14 F-150 and that comes direct from State Farm.

Calls by New Jersey Automotive to Santa Monica Ford-Lincolnfor their side of the story were not returned at press time. The Edmunds report can be viewed at www.edmunds.com/ford/f-150/2015/long-term-road-test/2015-ford-f-150-aluminum-body-repairs-part-1-with-video.html.

Edmunds ReleasesControversial Reporton Aluminum Repair Costs

NATIONAL NEWS

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LEGAL FEATURE by Mitchell Portnoi, Esq.

In New Jersey, a no-fault divorce may be filed if the partieshave not lived together as husband and wife for 18 months pre-ceding the filing, and both remain as occupants of the state andreside in New Jersey. A divorce based on fault (domestic vio-lence, adultery, etc.) may be filed at any time. The issues in-volved in a divorce may include child custody issues, equitabledistribution issues, visitation and spousal support, among others.The law has evolved and has become extremely complicatedwith respect to these issues. While two reasonable adults canoften resolve many (if not most) of the issues surrounding a di-vorce, the hostilities involved in many of these situations do notallow the parties to get to the point of rationally resolving themyriad of problems that need to be addressed. The courts in New Jersey, as well as many other states,have set up programs where matrimonial litigants can mediateand/or arbitrate the issues that come up in a divorce action. Infact, child custody and visitation issues (as well as child sup-port) are set up for a mandatory mediation session immediatelyupon a case being filed if there are minor children involved. The

DIVORCE LAW: A PRIMER

courts will act in the best interests of the child once requestedto make decisions regarding custody, visitation and the like.Courts will look to the behavior of the parties and attempt to always keep the childs welfare at the forefront. The most complex issues that matrimonial courts deal withinvolve equitable distribution of the marital assets of a divorce.The issues can be how to address assets given (inherited) by oneof the parties to a divorce or how to address the debts of one orboth of the parties. The issues may involve the appreciation of an asset which was acquired by one of the litigants prior to themarriage. Should the spouse be allowed to share in the apprecia-tion that took place during the marriage? Some states differentiatebetween active and passive appreciation as to determine whetherthe spouse will partake in the benefits of the appreciated propertyor asset (possibly a business). The purpose of this article is to advise that the issues in-volved in a divorce can be extremely complicated and often needthe assistance of competent legal counsel. The firm of Post,Polak, Goodsell et.al. has been handling complex matrimonialmatters for 30-plus years and ranks among the leaders of the matrimonial bar in New Jersey. Please contact us regarding yourmatrimonial needs.


NJA

COVER STORY by Joel Gausten

Its almost here. On March 20-22, the 38th installment of the NORTH-EAST Automotive Services Show will arrive at the Mead-owlands Exposition Center in Secaucus. With a host ofspecial events being added almost daily, our press timeimpression was that this will undoubtedly be the most extensive show of its kind in automotive industry history.Unsurprisingly, a vast array of vendors and nationalgroups have signed on to be a part of this game-changingweekend. Counting down the days until NORTHEAST hits theregion, Platinum Sponsor BASF is looking forward to introducing attendees to R-M Onyx HD, a family of low-VOC finishes that can be mixed as either a waterborne orsolvent-borne system. It is easy to apply and offers a fast-drying systemthat meets strict VOC regulations, offers BASF MarketingServices Manager Tina Nelles. The features of R-M OnyxHD provide the benefits of decreased processing timeand reduced material cost. Customers can visit www.refinish.basf.us/rm to gatheradditional information and speak to a sales team memberon how these and other products can help make theirshop more efficient and profitable. Not surprisingly, the system has already attracted alegion of fans - including none other than West CoastCustoms Ryan Friedlinghaus, who will be making a special guest appearance at the show on March 21, from 10am-2pm. Having Ryan attend was a great fit based on our decision to showcase R-M Onyx HD at the show, offers

Nelles. Ryan is based out of Burbank, CA and utilizes R-M Onyx HD to meet the strict VOC regulations. Although Web networking and communication havegrown considerably in this industry in recent times, BASFstill appreciates the great opportunities provided by attending NORTHEAST in person. Trade shows are still highly important in our market-ing plan, as they offer BASF the opportunity to strengthenour brand message and have direct interaction with ourtarget market to greater understand their needs and challenges, allowing us to focus our efforts on improvingthe customer experience, Nelles says. NORTHEASTcontinues to grow, and our presence at the show is a keymarketing activity that offers us the opportunity tostrengthen our relationships with customers andprospects and highlight the total solutions that R-M and Glasurit offer the industry. After scoring big at last years NORTHEAST with theirunforgettable F-150 display and training opportunities,Gold Sponsor Ford anticipates another great year atAASP/NJs flagship event. NORTHEAST 2014 provided us with a great venue topromote the reparability aspects of the new F-150, as well as to speak directly with repairers about many Ford-approved repair procedures, offers Ford Senior Damage-ability Engineer Gerry Bonanni. We were very pleasedwith the shows attendance, which is why we plan to return in 2015. We thought it was important to be at theforefront of the trucks launch and answer techniciansquestions face-to-face. NORTHEAST is a great opportu-nity to convey that information to them directly.



Ford will use its presence at NORTHEAST to alsospotlight www.TakeAGoodLook.com, an online campaignto help consumers understand why using OEM parts mat-ters. The new website helps consumers navigate the colli-sion repair process and identify the right insurance policy,the right repairs and the right parts. The site is intendedto be an easy resource for shops to help inform theircustomers that not all collision replacement parts arecreated equal. (For more information on www.TakeAGoodLook.com, see page 55.) While hundreds of vendors display their impressiveproducts, industry leaders and participants from acrossAmerica will convene at NORTHEAST for a series of na-tional association meetings. March 20 will see the firstAASP National Board meeting of 2015, with representa-tives from state affiliates gathering to set the agenda andtone of the nationwide group in the months ahead. A good part of the meeting is simply a businessmeeting reviewing financial statements, membership re-ports, benefit reports, et cetera, explains AASP Adminis-trator Judell Anderson. The Board also discusses currentindustry issues and determines how and if AASP Nationalmight contribute to the dialogue. One of the more interest-ing parts of the meeting is the affiliate roundtable ex-change, where each affiliate shares the activities andinitiatives that they have recently undertaken. This sharingof ideas and best practices that each affiliate can draw onis invaluable. In Andersons mind, NORTHEAST is an ideal venue forthis kind of AASP business. The NORTHEAST Show is a great event, and drawsthe attendance of affiliate representatives [many of whomare on the eastern seaboard], regardless of whether thenational meeting is held there or not, she says. It justmakes sense to combine the two in terms of convenienceand affordability. Theres also the added benefit of beingable to connect with other industry organizations and ex-hibitors in a more accessible venue. Prior to the start of NORTHEAST, the National Auto-motive Service Task Force (NASTF) will use the Meadow-lands Exposition Center to host Spring Board and GeneralMeetings on March 19. Teresa Bolton (ASE) will moderateValidation of Collision Repair Workmanship: What ShouldOEMs Consider? What Do Shops Hope to Avoid? Thisspecial collision-focused panel will feature Farzam Afshar(VeriFacts), John Bosin (I-CAR), Aaron Clark (AssuredPerformance), Gary Ledoux (American Honda) and GaryWano (G.W. & Son Auto Body). The collision panel discus-sion is early on the agenda for the NASTF Spring 2015General Meeting, which begins at 1pm. While pre-registra-tion at www.nastf.org/Spring2015RegForm is not requiredto attend the NASTF General Meeting, it is encouraged.More information about NASTF General Meetings isavailable at www.nastf.org/GeneralMeetings.

NASTF Executive Director Skip Potter is excited tobring his organization into the world of NORTHEAST. I have two objectives for being there, he shares.One is to get the word out about NASTF to those who arein that region. Number two is to continue the NASTF dis-cussions that have taken place for the last 15 years. Emphasizing their commitment to supporting the na-tional collision repair industry, AASP/NJ will once againco-host the NORTHEAST East Coast Resolution Forum &Leadership Meeting with the Society of Collision RepairSpecialists (SCRS). A NORTHEAST mainstay for decades,the afternoon gathering (held this year on Friday, March20) welcomes industry leaders and participants fromacross the country for an in-depth, interactive discussionon the current state of the collision repair industry. TheEast Coast Resolution Forum has always provided an ex-ceptional outlet for auto repair industry market leadersand influential representatives to network and learn fromother state and regional collision repairers or associationsfacing very similar issues. For SCRS Executive DirectorAaron Schulenburg, being an active part of this annualevent provides his association an opportunity to connectwith state affiliates and address some of the common is-sues affecting all segments of the industry. Any time shops and leaders in a market have an op-portunity to sit down and talk through the evolution of is-sues, it is valuable to the industry, he says. Oftentimes,the issues stay the same, but the nuances to themchange. Open discussion amongst industry leaders is areally healthy thing that helps to address some of thosechanges. Obviously, theres been a lot of activity over thepast year that has opened a lot of peoples eyes. Thereare regulatory changes, while the legal landscape ischanging with the filing of a lot of these cases. There are alot of association activities that have helped to inform andrepresent members in different markets, so the Forum dis-cussion allows all that to be put on the table as we look atpotential solutions. The East Coast Resolution Forum will again be mod-erated by longtime participant Ed Kizenberger, executivedirector for the New York State Auto Collision TechniciansAssociation (NYSACTA) and the Long Island Auto BodyRepairmens Association (LIABRA). After seeing the Forumevolve greatly over the last several years, Kizenberger iscontinually impressed by the variety of representation offered at the annual event. When we first started out, it was New York, New Jersey, Pennsylvania, Connecticut [and] Rhode Island, herecalls. Then we started to get people from Vermont andthe Washington DC area, and people as far west asChicago. Last year, we even had people as far away asOklahoma. Obviously, they see some value in that portionof the show, and it obviously benefits the show as a wholeby having a more diverse crowd attend.


COVER STORY

Away from the show floor and national association events, NORTHEAST gives attendees achance to expand their understand-ing of the industrys most controver-sial news and issues. On March 20,New Jersey Automotive contributorLarry Montanez (Lange TechnicalServices /P&L Consulting) will face offagainst Kristen Felder of CollisionHub(www.collisionhub.com) during

Industry Showdown: Montanez &Felder Tackle the Issues. Felder andMontanez will be discussing and de-bating the latest issues affecting au-tomotive repair, including training,insurer-mandated parts procurement,autonomous cars, paint and materialsreimbursement, cycle time, lawsuits,consolidation, post-repair inspectionsand, of course, aluminum. The pres-entation will end with an open-mic

forum, during which attendees can ask the experts anything andeverything. Considering that Montanez andFelder are two of the industrys mostvocal personalities, what should read-ers expect when they walk into theroom? The truth, answers Montanez.Were going to try to cover all differ-ent aspects of whats going on in thecollision repair field. Im going to answer questions truthfully and giveas much information as I can. Formerly a corporate trainer forState Farm and DRP director for Nationwide, Felder will discuss therole of the insurance industry at theevent. Based on her experience onboth sides of the table, she hopes to offer perspectives that might counteract some of the common misconceptions that exist betweenshops and carriers. [Adjusters] want nothing morethan what [shops] want, she insists.They want a happy customer, andthey want a car thats repaired prop-erly. Where we come into odds is thedefinition of whats proper. An insur-ance adjusters version of proper anda particular body shops version ofproper are two different things, andthats where we part ways. When not participating in the Industry Showdown, Felder willmaintain an active presence atNORTHEAST by interviewing atten-dees throughout the weekend for CollisionHub. Although she regularlytravels around the country to coverthe industry at-large, she feels thatthere is something truly unique aboutspending time in this area. What I enjoy the most about [thismarket] is that its a really passionateowner base, she says. You neverhave to wonder about what the peo-ple of the Northeast think or feelabout anything. Montanezs involvement inNORTHEAST also extends beyondthe Friday night debate. On March 21,he will lead Estimating and Diagnosis


and

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

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of Structural Damage on Aluminum-Intensive Vehicles & Joining Meth-ods, an early morning presentationfacilitated by Metropolitan Car-o-linerthat will cover the differences in howaluminum and steel vehicles absorband manage collision impact forcesand energy. The class will also coverattachment methods and welding differences. Montanez is hopeful thatattendees will take advantage of hiscourse as well as what will be avail-able elsewhere on the NORTHEASTfloor to help them make a smoothand safe transition from steel to aluminum repair. I think aluminum is misunder-stood in terms of what needs to beinvested and purchased, he offers.Thats primarily because of the misunderstandings of salespeopleand collision repair personnel whothink they know what theyre doing.As time goes by, youll see more andmore issues with aluminum coming

out, and whos doing what. Its probably going to get a little bit uglierbefore it gets better. By going toNORTHEAST, technicians and shopowners will have some hands-onclasses and programs that will assist them in understanding whatsavailable to them in the market. On March 21, AASP/NJ ExecutiveDirector Charles Bryant will join notedindustry attorneys James Mackevich,Joshua S. Bauchner and Mitch

Portnoi for Steering: A LegalPerspective. The 60-minute discus-sion will shed a much-needed light onthe possible legal solutions to colli-sion repair claim issues. Beyond addressing the ever-pre-sent steering issue, NORTHEAST willprovide a platform for repairers to dis-cuss a variety of other dilemmas im-pacting their success in the field. OnMarch 20 and 21, AEII President TonyPasswater will preside over How


COVER STORY

Have We Gotten Where the Industry is Today?These are two one-hour sessions that will takean honest look at the strategies, practices andtactics that the insurance industry has imple-mented to direct the collision industry to whereit is today. The insurance industry has been continu-ally taking advantage of the collision repairers,but its been in a slow, methodical manner, so alot of people didnt know it was happening,Passwater says. This seminar explains wherethe industry has been and what has been happening to them. In addition to exploring issues including insurer-mandated parts procurement and themultitude of lawsuits springing up throughoutthe country, the talk will focus on the implica-tions and historical significance of the 1963Consent Decree. Like many industry advocates,Passwater is encouraged by the high level ofaction and dialogue currently occurring withinthe collision repair community. In his mind, thispositive trend is the result of advancements inhow people communicate over the Internet. Weve always been isolated; weve alwaysbeen told, You are the only one, he observes.It wasnt until fairly recently that there werecrusaders who were standing up for whatsright and were trying to do something about itin their own areas. Now all of a sudden, the in-formation is there, and theyre seeing there is agroup of people in many different parts of thecountry fighting the same issues and trying todo the right thing. This spirit of industry collaboration carrieson in other events scheduled throughout theNORTHEAST weekend. A full listing is availableto the right. For more information, visitwww.aaspnjnortheast.com, the NORTHEASTAutomotive Services Show on Facebook, theNORTHEAST Automotive Services Show onYouTube page (www.youtube.com/AASPNJNORTHEAST) or follow the show on Twitter@AASPNJNORTHEAST. NJA

AASP/NJ would like to thank thisyears NORTHEAST 2015 sponsors:

BASF (Platinum Show Sponsor), Ford (Gold Show Sponsor), AxaltaCoating Systems (Door Prize

Sponsor), Innovative Solutions / ProSpot (Lanyards Sponsor), Mitchell International (Seminar Sponsor),Harbortouch (General Sponsor)

AND THIS IS WHERE OUR STORY BEGINS... A 2000 Jeep Grand Cherokee showed up on our doorstep lastmonth; the owner was the daughter of someone who was quicklybecoming a regular customer. We had been doing something rightfor the parents, and now they trusted us to do the right thing bytheir daughter. It was a pretty strong indicator we were doing ourjobs well. The Jeep was in for a visual look-over and four-wheel brakeinspection. As a recent college grad, the daughter was about tobegin a daily 45-minute ride to work. Please tell me what it needs, she requested. After our com-prehensive two-page evaluation and vehicle checklist, the answerwas two words: A LOT With just over 140,000 miles on it, the Jeep had seen betterdays. The power steering line was leaking, the engine had severalsmaller oil leaks and the trans was so low it didnt show fluid onthe dipstick (but still seemed to shift okay). Of course, the panwas so rusted that it was porous and leaking fluid. The main leftside brake line had a rust blister in it that said, Hey, Im a zit.POP ME! The left rear track arm rubber support bushing wasMIA, while the left rear-axle seal was providing a form of rustproofing to the left side inner fender well and floor pan. Belts,hoses, tune-up and service parts, brakes, tires...It really needed ALOT! So thats just what we told the owner: Take the money youwere going to spend and use it as a down payment on a new car

because on top of all the mechanical repairs, the lower rockerpanels were so rotted you could drive your fist through them.

THE BOTTOM LINE IS... Vehicle owners have a responsibility to maintain their cars,but they first need to find a mechanic or repair shop they trust one they can talk to and who talks to them. As a repair shopowner and technician for over 40 years, I believe it is my obliga-tion to keep customers safe. That sometimes involves telling themits time to move on. Its more than a question of honesty; itsself-respect and morality on the part of the repair shop. However,part of the problem with that line of thinking is that some peoplecant handle the truth. They dont have enough smarts to knowa good shop from bad, a crook from a preacher. Somehow, all ofus get lumped into the same barrel. The road knows no self-pity. Traveling down it in a two-ton missile and suffering a failure can only lead to a problem forthe vehicle owner and me, the guy who tried to repair it last. Butremember this: If vehicle owners choose not to listen to the me-chanics evaluation, then the road they choose is of their ownmaking. Keep records and supporting test/evaluation results onfile should the need arise. Remember, you cant make a wrong turn down the rightstreet. Always know where youre going and how you are gettingthere if you want to survive and prosper in auto repair.

Til next time, Im Ron Ananian, The Car Doctor, reminding youthat Good mechanics arent expensive; theyre priceless.Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heardweekly in 140 markets on his nationally syndicated radio talk show. He is aworking technician and former AASP/NJ Board member. Beyond his radioshow, Ron writes and speaks for the automotive industry at trade shows andevents. Visit The Car Doctor online at www.cardoctorshow.com.

THE UNVARNISHED

TRUTHI often wonder how cars get into such a state of disrepair.I also wonder if people realize the danger theyre in.Lastly, I wonder if it matters. Ignorance must be blisswhen it comes to maintaining a vehicle correctly andsafely. I think about the obligation of the repair shop. If someone brings you a vehicle for repair, are you obligated to decide if its worth repairing? Morals andauto repair...perhaps its an odd combination.

NJA

Meet the Car Doctorduring his LIVEbroadcast atNORTHEAST 2015Saturday March 212-4 pm

NO BRAKES by Ron Ananian


for. The problem with that is that theinsurers attempt to use those guide-lines against the non-DRP shops as astandard. At the same time, there are othersin our industry who repair vehicles ex-actly the way that the DRP guidelines

call for, and this is the problem. The real issue is not DRP shops.The real problem is steering, betterdescribed as the root of all evil. Steer-ing is the basis of many of the currentproblems in the collision industry. Atthe present time, insurers come into

non-DRP shops, attempt to get them torepair vehicles for ridiculous amountsand fail to pay for needed and neces-sary operations to repair vehiclessafely and properly. If the non-DRPshop refuses to go along with them,the insurer does everything in theirpower to convince, persuade or evenintimidate the vehicle owner to take thevehicle to one of their DRPs, wherethey claim the DRP will repair the vehi-cle for the amount of their estimate.But mysteriously, when the vehiclecomes out of the DRP shop, the finalbill is usually as much or often evenmore than the non-DRP shop was ask-ing to repair the vehicle. What makesthis work is the fact that the DRP be-comes the appraiser for the insurerwhen the vehicle gets to the shop. Theshop is then allowed to add hours tothe estimate in order to compensatefor the restricted guidelines and windup with a final estimate that will allowfor a reasonable profit. The point of steering is not actuallyto get the customer to go to a DRPshop. The point is to get the non-DRPshop to buckle and take whatever theinsurer is willing to pay in fear of hav-ing the job steered away. This wholesystem is a well-thought-out scam puttogether by the insurance industry,and it needs to STOP NOW! The bottom line is that this storyneeded to be told. Although I have toagree that it may have fallen short ofgetting into the full details of the prob-lems (and it may have unfairly paintedsome of the players in a not-so-goodlight), this effort needs to be kept alive.More shows like this need to be airedso the full story can finally be seenand those who were painted in a poorlight should get the opportunity toshare their side of things. One thing isfor sure: AASP/NJ will be watchingand doing all in our power to keep theattention on the injustices that our in-dustry is faced with on a regular basis.With that said, once again I will remindeveryone that there is strength in num-bers and there could not be a bettertime to join the AASP/NJ. I can bereached at (732) 922-8909.

EXECUTIVE DIRECTORS MESSAGE continued from page 14


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ARANJ 2015Officers

President Bob Dirkes

Dirkes Used Auto Parts609-625-1718

[email protected]

1st Vice PresidentIan Szoboszlay

Ocean County Auto732-349-0332

[email protected]

2nd Vice PresidentDarryl Carmen

Lentini Auto Salvage908-782-6838

[email protected]

3rd Vice PresidentJoe GoodmanLeesville Auto732-388-0783

[email protected]

Executive DirectorBrian Snyder

Auto Recyclers of NJ609-714-2339

[email protected]

ARANJ 2015Board of Directors

Mike RonayneTilghmans Auto Parts

[email protected]

Mike YeagerEL & M Auto

[email protected]

Rodney KrawczykAce Auto Wreckers

[email protected]

Mike CaputoLacey Used Auto Parts, Inc.

[email protected]

Bert WitcraftAuto Express856-728-8367

Ed SilipenaAmerican II Autos

[email protected]

Harry ShoverPorchtown Auto856-694-1555

Norm VachonPort Murray Auto

[email protected]

ARANJ The Automotive Recyclers Association of New JerseyLegal Update New Jersey Supreme Court Settles Spill Act Statute of Limitations Dispute

Historically, property owners and their attorneys operated under the belief that no statute of limita-tions applied to contribution actions under New Jerseys Spill Compensation and Control Act (Spill Act),N.J.S.A. 58:10-23.11, et seq. In August 2013, in Morristown Associates v. Grant Oil Company, the Appel-late Division of the New Jersey Superior Court deviated from this popular and widespread opinion byholding that the six-year statute of limitations applicable to property damage claims under N.J.S.A. 2A:14-1 also applied to private contribution actions brought under the Spill Act. The Appellate Divisions decisionwas only temporary; on January 26, the New Jersey Supreme Court reversed the Appellate Division andconclusively held that no statute of limitations applies to contribution claims under the Spill Act. In order to fully understand the Supreme Courts decision, it is important to first understand the rea-soning applied by the Appellate Division. In finding that the general statute of limitations for property dam-age applied to Spill Act contribution claims, the Appellate Division concluded that the Act itself did notcontain a statute of limitations provision. Referring to other cases in which statutes were silent as to theapplication of a statute of limitations, the Appellate Division determined that the six-year general statute oflimitations contained in N.J.S.A. 2A:14-1 applied. The Appellate Division further noted that this determina-tion was consistent with Federal case law on the issue and with the Comprehensive Environmental Re-sponse, Compensation and Liability Act (CERCLA), which expressly provides for a six-year statute oflimitations for cost recovery actions. In reaching this decision, the Appellate Division considered, but ultimately rejected, two prior Appel-late Division decisions to the contrary. First, the Appellate Division distinguished the decision in PitneyBowes, Inc. v. Baker Industries, which found that a 10-year statute of repose did not apply to a Spill Actcontribution claim because it involved a statute of repose instead of a statute of limitations. Second, theAppellate Division dismissed the decision in Mason v. Mobil Oil Corp., which explicitly held that a statuteof limitations did not apply to Spill Act contribution claims because it was unpublished and therefore notprecedential. Upon examining the record, the Supreme Court reached a conclusion contrary to the Appellate Divi-sion. On appeal, the Supreme Court disagreed that the Spill Act was silent as to the statute of limitations.The Supreme Court pointed to the language, which states that [a] contribution defendant shall have onlythe defenses to liability available to parties pursuant to [N.J.S.A. 58:10-23.11g(d)]. The defenses to liabil-ity provided in N.J.S.A. 58:10-23.11g(d) include an act or omission caused solely by war, sabotage orGod, or a combination thereof. The statutes of limitations defense is not included as one of the enumer-ated defenses in the statutes. Since N.J.S.A. 58:10-23.11g(d) does not include the statute of limitations defense, the Court found that there was legislative intent to exclude it as a defense The Supreme Court also noted that its decision was supported by the longstanding view that the SpillAct is remedial legislation designed to cast a wide net over those responsible for hazardous substancesand their discharge on the land and waters of this state. In other words, it allows those responsible forcontamination to be held responsible without being afforded a defense grounded in the simple passageof time. Further, the Supreme Court acknowledged that the historic understanding in this State is that no statute of limitations applied to Spill Act contribution claims, and reasoned that the Legislatures acquiescence to this understanding lends further support to the Courts decision. As a result of the Supreme Courts decision, there is no time limit for the owners of contaminatedproperties to seek contribution from the parties responsible for the contamination for conducting the remediation. As a result, those property owners who have focused on completing remedial activities before pursuing contribution can continue on that course without the fear that they will be left without recourse. For further information, please contact James Aversano III, Esq. or Matthew J. Krantz, Esq. at (609) 631-0600.

Wharton Insurance Briefs An ARA Member Workers compensation can be an open checkbook if you are not diligent about managing it.One major way to help control costs is to develop a positive employee attitude toward safety. You canaccomplish this by doing the following:

As always, please feel free to contact us to discuss this or any other insurance concern.Mario DeFilippis, AAI, Vice President

800-221-0003 (1320) 908-513-8588 (cell) [email protected]


Set a good example by practicing good, safe work habits. Allow employees to report unsafe work practices without fear of reprisal. Be accessible to employees.

Set up and attend regular safety meetings. Make sure good housekeeping rules are followed at all times. Enforce safety rules.

NEWS FROM FORD

Not all collision replacement parts are created equal. Most people in the industry know that the right parts for any ve-hicle are the OEM replacement parts made by the vehicle manufac-turer. With so many different aftermarket parts available, Fordrealized that people needed to be educated about why the rightparts matter. The goal of this site and campaign is to help consumers bemore prepared before an accident even happens. It does this byeducating them about how OEM replacement parts are specificallyengineered to provide the same quality, durability, fit and finish asthe parts made to build the vehicle. As youll see, the site also goesinto the differences between OEM and aftermarket, salvage or re-conditioned parts, plus the overall collision repair process and theinsurance information they need to help keep their Ford a Ford.

Drivers have the right to get the right parts. The site focuses now on three main areas:

At Your Insurance details questions people need to ask their insurers about OEM parts coverage. It also reminds consumers that they have rights when making a claim. Those include:

Which body shop they use Which parts are used to replace damaged parts They dont have to release their vehicle to a body shop before they are ready. They should get estimates completed before starting any repairs.

At Your Parts defines the different types of OEM and aftermarket parts available to help drivers be better-informed consumers, including a robust list of non-OEM parts that might show up on an estimate or invoice and how they differ from one another:

A/M - Aftermarket/Automotive replacement parts QRP - Quality Replacement Parts CP - Competitive Parts LKQ - Like Kind and Quality Salvage Reconditioned - Recon Recycled

At Your Repairs lists tips for finding the right repair shop to perform collision repairs. Those include

looking into the Ford National Body Shop Network; asking their dealer if they have a collision shop and if they use OEM parts; asking about training, certifications and qualifications; and knowing that no one - not even their insurance company - can force them to go to a specific shop.

Through this abbreviated version of the site, you can see how Ford is working to help empower consumers by arming them with important information that any driver should know. Be sure to check out the new campaign from Ford and visitwww.TakeAGoodLook.com, then check back often for new content throughout the year.

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Ford has created a campaign to help consumers understand why using OEM parts matters. The newwww.TakeAGoodLook.com helps consumers navigate the collision repair process and get the rightinsurance policy, the right repairs and the right parts, but its also intended to be an easy resource for shopsto help inform their customers.



I just like talking with guysfrom other shops. I like knowingwhat theyre doing and how itsdifferent from [what my shop isdoing]. I think thats where Ilearn the most.

My favorite part ofNORTHEAST is hearingfrom experts and gettingthe information from thesource. Theres so muchinfo floating around outthere that its hard toknow whats true andwhats not. At the show, I get the info right fromthe horses mouth.

This will be my first time at theshow, so Im not sure what to expect. I guess Im looking forwardto seeing what the vendors have to offer that I havent seen yet.

We reached out to some of our readers to find out whattheyre most excited for at the largest regional show ofits kind.

THE LIST Its nice talking with people who know what Im goingthrough. Sometimes when I talk to people about what[we face as auto repairers], its like they dont believeme. Either that or theyre just sick of hearing me saythe same [stuff] over and over again. When Im here, I can go over things with people who understand.

Im looking forward to seeing my friends.I used to work in a shop in Parsippany, butI had to move down to Mount Laurel to becloser to my family a few years back. Theyre going to be at the show. I cant wait to BS with them.

READY TO MAKE YOUR OWN FAVORITENORTHEAST MEMORY?For more information on NORTHEAST, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show YouTubepage (www.youtube.com/user/AASPNJNORTHEAST) or on Twitter @AASPNJNORTHEAST /#NORTHEAST2015. For more information on AASP/NJ, please visit www.aaspnj.org.

What are you most lookingforward to at NORTHEAST 2015?

I like that its a day out of the shop. Even thoughIm kind of working, its like a working day off.

Im signed up for the I-CARAluminum class on Saturday,which Im really excited for.

I was just looking at the schedulethis morning. I cant wait for LarryMontanezs presentation on Saturday morning. I always learn a lotfrom his interviews and seminars,and hes always entertaining.

Getting to see the new tools. Plustheres a lot going on in our market. Iknow my guys are concerned with alu-minum. They did a pretty nice job lastyear with addressing the PartsTraderissue, so Im hoping we can get someanswers at the show.


Acme Nissan................................................26Amato Agency..............................................42Audi Group ................................................32-33Auto Body Distributing Co............................29Axalta Coating Systems ..............................6BMWGroup ................................................44-45Bridgewater Acura........................................25Cadillac of Mahwah......................................4CCC Comp-Est ............................................37Classic Audi ................................................10Clinton Acura................................................48Continental Auto Parts ................................15Cosmos Recycled Auto Parts ......................37Cycan Industries ..........................................31Empire Auto Parts ........................................62Flemington Audi ..........................................5Flemington Group ........................................IBCFred Beans Parts ........................................21Future Cure..................................................47Glen Toyota..................................................OBCHyundai Group ............................................27JMK BMW....................................................11JMK Saab/JMK Fiat ....................................60Klean Frame ................................................62LKQ..............................................................60Maxon Mazda ..............................................46Maxon Hyundai ............................................53Mazda Group ..............................................61Mercedes Benz of Freehold ........................48Metropolitan Car-o-liner ..............................19Mike Kaufmann Dealer Group ....................36Mini Group ..................................................54Mitsubishi Group..........................................51Mopar Group................................................13NORTHEAST 2015 ..................................41NU-CAR...................................................22-23Paul Miller Audi ............................................59Porsche Group ............................................56PPG ............................................................3PPGMS........................................................30Prestige Motors............................................31Princeton BMW............................................17Princeton Mini ..............................................9Saw Mill Auto Wreckers ..............................56Sherwin-Williams ........................................50Subaru Group ..............................................49Town Audi ....................................................8Toyota Group ..............................................58Toyota of Hackensack..................................IFCValtek ..........................................................14VIPHonda....................................................25VWGroup ....................................................40Wheel Collision Center ................................14

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New Jersey Automotive March 2015