New England Automotive Report May 2016

May 2016U.S.A. $5.95

MASSACHUSETTS

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Serving the New England

Collision and Mechanical

Repair Industry

www.grecopublishing.com

2 May 2016 New England Automotive Report

CONTENTSMay 2016 • Volume 14, No. 5

ALSO THIS ISSUE

COVER STORY32 | STOPPING THE AIB:

REPAIRERS ANDTOWERS JOIN FORCES TO PROTECTCONSUMERS

New England Automotive Report May 2016 5

DEPARTMENTS

PRESIDENT’S MESSAGE by Molly Brodeur

8 | What Are You Waiting For?

LEGAL PERSPECTIVE by James A. Castleman, Esq.

20 | Sending Timely Initial Lien Notices

NATIONAL FEATURE by Joel Gausten

26 | AASP/MA at NORTHEAST®: Area Shops Travel to

the Country's Biggest Regional Show

TECH CORNER by Jacquelyn Bauman

40 | Technology Benefits and Detriments:

Virtual Steering and Connected Cars

MEMBER SHOP SPOTLIGHT by Jacquelyn Bauman

48 | Harris Auto Body

7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR14 | AASP/MA PLANNED YEAR15 | AASP/MA SPONSORS49 | AASP/MA MEMBERSHIP APPLICATION54 | INDEX OF ADVERTISERS


May 4, 2016Steering & Suspension Damage Analysis

May 10, 2016Hazardous Materials, Personal Safety & Refinish

Safety

May 12, 2016Welded & Adhesively Bonded Panel Replacement

May 26, 2016Aluminum Exterior Panel Repair & Replacement

in Massachusetts

All classes held at Fuller Auto Body, Auburn, MA

For more information, visit i-car.com

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

STAFF

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 COMMITTEEPRESIDENT

Molly Brodeur

VICE PRESIDENT

Adam Ioakim

SECRETARY

Gary Cloutier

TREASURER

Kevin Gallerani

IMMEDIATE PAST PRESIDENT

Paul Hendricks

AASP/MA STATEWIDE DIRECTORSCOLLISION DIRECTOR

Rick Starbard

AASP/MA DIRECTORSAlex Falzone

Kevin Kyes

Michael Penacho

Darlene Andrade

Tom Ricci

Ray Belsito, Jr.

Peter Langone

PUBLISHERThomas Greco ([email protected])

DIRECTOR OF SALESAlicia Figurelli ([email protected])

EDITORJoel Gausten ([email protected])

CREATIVE DIRECTORLea Velocci ([email protected])

MANAGING EDITORJacquelyn Bauman ([email protected])

PRODUCTION Donna Greco ([email protected])

WWW.AASPMA.ORG

AASP/MA EXECUTIVE DIRECTORJillian M. Zywien

12 Post Office Square, 6th Floor • Boston, MA 02109

Phone: (617) 574-0741 Fax: (617) 695-0173

Email: [email protected]

MASSACHUSETTS


New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2016 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com


LET US TURN THEMAROUND!

Contact New England

Automotive ReportSales DirectorAlicia Figurelli

973.667.6922 /[email protected]


There is an entity out there, organizing on the frontlines of this industry, that is working towards makingyour business better. Don’t you want to be a part of that?Whether it’s through legislative action, training or bring-ing shop owners together to network and brainstorm so-lutions to industry-wide problems, AASP/MA isworking on your behalf – and we can’t reach our goalswithout you.

If you are already a member, let me first offer youmy thanks. It is your support that helps to make our ob-jectives accessible. However, are you doing all that youcan as a member to help make this field a better place forall of us? For example, do you have a shop in your townor the next town over that you have a rapport with that isn’t a part of our organization? Bring them a copyof New England Automotive Report, show them everythingwe’re doing for collision repairers and get them involved.

Everything we’ve been able to accomplish with theADALB in the past nine months has been phenomenalfor us. We’ve filed complaints, stirred the pots and re-ceived answers to a number of questions that have beenplaguing the industry for a while. We can’t continue todo that if we don’t have members. Do you engage withus? Do you go to meetings to have your voice heard? Doyou have concerns you want addressed? We’re a re-source for you. The Board of Directors is always avail-able to anyone who wants to pose a question. We’re arobust organization that is committed to leveling theplaying field and fighting for what is right. We’re thewatchdog for your business. If you don’t have a watch-dog – someone looking out for you – things can get outof control.

We have a lot on the table right now. We’re currentlyworking on consumer-focused legislation to protect our

PR

ES

IDE

NT’S

MESSAGE

WHAT ARE YOUWAITING FOR?

MOLLY BRODEUR


customers from the manipulation ofinsurers in such aspects as steering,aftermarket parts and vehicle war-ranties. We are advocates for the in-dustry and advocates for our clients.We need you to help us by being apart of it.

If you’ve been waiting for a sign,this is it. If you need a call to action,here it is. Join our ranks and help usmake the collision repair field a bet-ter place for shop owners, techni-cians and, most importantly, ourcustomers. Contact Executive Direc-tor Jillian Zywien for more informa-tion on becoming a member ofAASP/MA. Email her at jzywien@

aaspma.org or give her a call at (617)574-0741. To find out more about theassociation, go to aaspma.org.

MASSACHUSETTS


AASP/MA PRESIDENT MOLLYBRODEUR is the Chief Operating Officer ofAl Brodeur's Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 [email protected].


AASP/MA EXECUTIVE DIRECTOR JILLIAN ZYWIEN hasbeen a senior account executive at Lynch Associates for over seven years. She

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

A MESSAGE FROM

THEE

XE

CU

TIV

E D

IRE

CTO

R

WHAT AASP/MA HASPLANNED FOR YOU!

JILLIAN ZYWIEN

Dear Members,At the time of this writing, there is new snow on the

ground and spring is taking its sweet time getting here,but that hasn’t stopped AASP/MA from working for you.Over the next few months, we look forward to seeing youat our upcoming events and sharing our exciting newsand progress.

As mentioned in previous issues of New England Au-

tomotive Report, the association has dissolved our Chapterstructure. However, this has not prevented AASP/MAfrom visiting every part of the state. This month, we aretraveling to the middle of Massachusetts for our popularBBQ event. This gathering is focused on bringing youremployees and families together for a night of relaxationand fun. It is not often that you are able to get out of theshop to simply enjoy time with your fellow employees.The BBQ is an opportunity for coworker bonding and ca-maraderie. As an added bonus, you can bring your fami-lies. Kids are also welcome to attend. We understand howbusy your lives can be. Juggling work and family is espe-cially difficult, and AASP/MA wants to help. Plan to at-tend our BBQ to win some fantastic prizes and spendtime with your employees (who work so hard) and yourfamily (who works hard to support you). For more infor-mation on the BBQ, please visit aaspma.org.

In the past, our BBQ has raised funds to supportAASP/MA’s Scholarship Fund. At the direction of yourBoard of Directors, we are redirecting the funds to sup-port the association’s legislative and legal efforts. As youare all aware, the association has filed five legislativematters this year, and we are working through languagechanges to 212 CMR and fighting on the industry’s behalfto prevent AIB policy adoptions. We hope you will sup-port our initiatives by participating in this importantfundraiser.

Later in May, AASP/MA will be in Western Massa-chusetts for our Statewide Meeting. Over the wintermonths, we had members audited by OSHA; unfortu-nately, some of those members were assessed significantfines. It is important that all members are followingOSHA guidelines and recertifying their shops on a regu-lar basis. This month’s meeting will feature an OSHA

representative who will outline common mistakes andeducate members on corrective action. This is an impor-tant seminar you do not want to miss. You will be kickingyourself when OSHA comes knocking at your door. Getprepared today.

Also coming this summer is the AASP/MA AnnualGolf Outing. We are moving locations this year to allowfor more participation. Our previous venue had a strictlimit on golfers, but we have been given a bigger fieldthis year to allow for additional players. If you are not abig golfer, you can still participate in the event. Followingthe day of golf, we have an awards ceremony and ban-quet where we encourage participants to invite their em-ployees, fellow shop owners and spouses. Come to thebanquet and find out who took home the big prize andwho is crying into their new golf towels. The awards cer-emony will also feature our prize raffle. Some of lastyear’s prizes included a tablet, a Fitbit wireless wrist-band, a lottery tree and a waterproof Bluetooth speaker.You can also purchase a ticket to win a Rob Gronkowski-signed jersey.

I encourage you to participate in these events. We arecreating a community that is building the success of the

auto repair industry. The stronger you make us become,the better our chance for success. I would encourage eachmember to bring a non-member with you to any upcom-ing event. Show them what we are about, and I guaranteethey will want to be a part of the only association work-ing on behalf of the industry in the Commonwealth.

Sincerely,

Jillian ZywienMASSACHUSETTS





MASSACHUSETTS

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY PLANNED YEARJANUARY MARCH

MAY JULY

For more information, visit aaspma.org

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

Check New England Automotive Report for updated event information throughout the year.

January 6Board of Directors

MeetingStatewide Meeting

March 22Board of Directors


July 26

Board of DirectorsMeeting

September 23

AASP/MAClambake

November 12

AASP/MA CasinoNight & Annual Meeting

May 24Board of Directors


July 20AASP/MA Golf OutingBlackstone National

Golf Course

September 27Board of Directors


November 15

Board of DirectorsMeeting


SEPTEMBER NOVEMBER



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SENdINg tIMElyINItIAl lIEN NotICES

by James A. Castleman, Esq.[LEGAL] PERSPECTIVE

I got three telephone calls this weekall dealing with aspects of the sameissue, but from differing perspectives.

The first call was from a longtimeclient whose son had been chargedwith a serious crime. The police hadthe son’s car towed to search it for evi-dence. After the search, the car wastowed to the carrier’s storage yard. Itwasn’t until six months later, however,that the carrier sent out the first noticeof its tow and storage lien. My client,who did not want to pay for sixmonths of storage and who had notknown where the car was, was furiousthat the carrier had taken so long tosend a notice. He called me to askwhether the tow yard was required bylaw to give more timely notice.

The second call I received wasfrom a tow carrier that had conducteda police-ordered tow nine months be-fore, but was just getting around tosending its first notice of its tow andstorage lien. The carrier had expectedto be contacted by the car owner, buthad not. After finally sending out thefirst lien notice, it received an angrycall from the car owner, who claimedthat he had not known where the carwas. The carrier now wanted to knowif it had a problem because it hadwaited so long to start tow lien en-forcement proceedings.

The third call that came in wasfrom a body shop that had repaired acar, but whose customer had died be-fore he had paid for the repairs orpicked up the vehicle. It was now al-most a year later, and the shop ownerhad called the vehicle owner’s financecompany to see if they would pay thebill and repossess the car. They re-sponded that they hadn’t knownwhere the car was, had received noprior notice and would only agree to

pay 30 days of storage. The shopowner asked me whether the financecompany had any right to try to limitthe storage bill.

All of these matters demonstrateproblems that arise when there is adelay in giving a first tow carrier orgaragekeeper’s lien notice. To avoiddifficulty, earlier notices should havebeen given in each situation. But hadthe tow carriers and repair shop vio-lated any legal time requirements forenforcement of their liens? The an-swer is not entirely clear. If you are atow carrier or collision repair shop,here are suggestions on how to giveproper first lien notices and why eachsuggestion should be followed:

If you are enforcing a tow andstorage lien for a police-ordered tow,you should give your first notice oflien as soon as possible. For police-or-dered tow liens, the governing statuterequires the ordering officer to furnishthe carrier with the name and addressof the registered owner of the vehicleat the time that it is placed with thecarrier. If the officer does not knowwho the owner is, then he or she is re-quired to obtain the information and“forthwith” provide it to the carrier.The carrier is then supposed to sendout its first required lien notice “uponreceipt of the information.” Since the re-quirement is to send the notice “uponreceipt” of the owner’s contact infor-mation, it would appear that such no-tice is required to be sent quickly. Fora recovered stolen vehicle, anotherstatute specifically requires the carrierto send the first lien notice within fivedays of being provided with theowner’s identity.

For a garagekeeper’s lien, youshould also send your first lien noticeearly. There is no language in the

garagekeeper’s lien statute that sets atime within which notice must begiven, but the lien statute only allowsa lien for a shop’s “proper” charges. Ifyou wait too long to give your firstnotice, your charges may no longer be“proper.”

In all cases, you should send no-tice to the owner of the vehicle and toany secured lender. On their face, nei-ther the police-ordered tow statute northe garagekeeper’s lien statute re-quires notice to a lienholder. Butunder both statutes, you have a lienthat is superior to that of the financecompany, and a sale of the vehiclewipes out the finance company’s lien.Giving notice to the lender serves twoimportant purposes: (1) It encouragesthem to pay your charges directly, inorder for them to protect their interestin the car; and (2) It protects you fromlater claims by the finance companythat you deprived it of its propertyrights in the car without due processof law – which is a constitutionalrights issue.

Independently verify who the ac-tual vehicle owner and lienholder are.While a police officer ordering a towis required to give a tow carrier thename and address of the “registeredowner” of a vehicle, and while a re-pair shop may have a copy of a car’sregistration, it is still wise to verifywho the titled owner of a vehicle isand what secured lender may exist. Itis better to be safe than to have yoursale of a vehicle invalidated becauseyou did not give notice to the properparties. The information is not avail-able to the general public, but it isavailable to tow carriers and repairshops claiming a lien by filling out anRMV Request for Personal Informa-tion form (available on the Registry’s

continued on page 23



website) and sending it in with a check for$5. Ordinarily, you will receive back a“screen print” with the requested informa-tion in just a few days.

Send all lien notices by certified mailand by regular mail. The police-orderedtow lien statute requires that the lien noticebe sent (but not necessarily received) by“registered” mail, which includes certifiedmail, return receipt requested. Sometimes,however, people who have had their carstowed do not accept certified mail, sosending a copy by regular mail makes itmore likely that they will receive the no-tice. The garagekeeper’s lien statute onlyrequires that the notice be “delivered,”which includes regular first class mailing.But if you send a copy by certified mail,and the vehicle owner signs for it, then youhave proof of receipt of the notice.

MASSACHUSETTS

Attorney James Castleman is a managing

member of Paster, Rice & Castleman,

LLC in Quincy, MA. He can be reached

at (617) 472-3424 or at

[email protected].


continued from pg. 20

[LEGAL] PERSPECTIVE


On March 18-20, the New Jersey affiliate of AASPhosted thousands of collision repair professionals fromacross the country at the Meadowlands Exposition Centerin Secaucus, NJ for the 39th Annual NORTHEAST Auto-motive Services Show. NORTHEAST 2016 delivered noth-ing but excitement, boasting a jam-packed show floor andthe biggest slate of seminars and presentations ever foundat a regional show. Not surprisingly, the event drew con-siderable support and participation from shops and ex-hibitors throughout the New England automotive repaircommunity.

With so many industry members hitting the NORTH-EAST floor over three days, theshow provided an incredibleplatform for vendors to show-case their products and serv-ices. Being at the show madeperfect sense to BASF AccountRepresentative Ken Robbins,who made his trip down to Se-caucus for a third year to be apart of the festivities.

“It’s nice having a tradeshow on the east coast on the

weekend,” he says. “[Shops] can take just Friday off, or godown on Friday or Saturday and see a lot of the new prod-ucts that are out from all the manufacturers in the automo-tive trade. They don’t need to take four or five days off andfly out to Las Vegas.”

As he explains, Robbins and the BASF team enjoyedconsiderable foot traffic by attendees – especially bodyshop owners looking to learn as much as possible.

“Over the last two years, I have seen more shops fromMassachusetts and even southern New Hampshire makethe trip down to the show,” he offers. “They realize it isworth going to [NORTHEAST]; it’s always a great turnoutfor the vendors and the spectators going to check thingsout.”

An avid NORTHEAST exhibitor since the ’90s, KevinLombard of Lombard Equipment was greatly impressed bywhat this year’s show had to offer.

“This was probably one of the best [shows] for traffic inthe last 10 years!” he says.

In Lombard’s mind, NORTHEAST presents a host ofincentives for shop owners in Massachusetts and surround-ing states.

“There are a lot of guys in New England who are inter-ested in new equipment, aluminum and new technologies,”


by Joel Gausten

AASP/MA at NoRtHEASt:Area Shops travel to the Country’s Biggest Regional Show

AASP/MA Vice President Adam Ioakim represented the association at the 2016 East Coast Resolution Forum &Leadership Meeting.


he explains. “[This show] is very convenient in that guyscan drive four or five hours at the most and be at a reallygreat show that’s growing every year.”

With nearly 15 trips to NORTHEAST under his belt,AASP/MA Collision Director Rick Starbard knows to ex-pect the very best from the experience. This year, he was es-pecially interested in checking out “Body Shop Certificationand You: An OEM Panel Discussion,” a special panel heldon March 19 and moderated by Aaron Clark of AssuredPerformance Network. The discussion featured insightsfrom representatives from Audi, Nissan, American Honda,Fiat Chrysler Automobiles and Ford Motor Company onwhy their respective companies launched their individualbody shop certification programs. As an Assured Perform-ance facility owner, Starbard was pleased to see such an in-depth exploration of the topic available to show-goers.

“People have a lot of questions regarding OEM certifi-cations, so that gave people a chance to listen to what [themanufacturers] are looking for and what is or isn’t on theprogram,” he says. “I thought that was well done.”

After learning about the show from his business grouppartner (and NORTHEAST presenter) Jerry McNee, JimMarshall of Marshall’s Auto Body Experts in Billerica madehis first-ever trip to the gathering. To say he was excited bywhat he saw there would be an understatement.

“This has been a great trade show!” he told New Eng-land Automotive Report from the floor on March 19. “Thepeople are professional in repping their products, butthey’re not leaping at you while you’re trying to walkdown the aisle. You get time to look and browse withouthaving to take your wallet out.” (The low-pressure atmos-phere worked, as Marshall left the show a proud owner ofa new truck bed lift from first-time NORTHEAST exhibitorProLine Tool & Supply, LLC.)

Western Massachusetts-based members Andre Mar-coux (Western Mass Auto Body, West Springfield) and DonVermette (Vermette Auto Body, Feeding Hills) made a dayof NORTHEAST, traveling down to New Jersey early thatSaturday morning to take in as much of the show as they

could. Marcoux brought along his technician, Chris Roy;Vermette was joined by his son, Paul.

“I had such a great time; I really enjoyed it,” offersMarcoux, who actually used to exhibit at NORTHEASTyears ago when he worked with Lombard Equipment. “Itwas nice to connect with a lot of people who I haven’t seenin a while.”

Marcoux was among the many industry members whotook in “Competing with the Talking Car – Virtual Steer-ing,” a March 19 seminar presented by Steve Feltovich fromSherwin-Williams that explored how autonomous vehiclesand other developments are already reshaping the repairworld.

“It makes you wonder where you want to be andwhich side you want to be on,” Marcoux says. (More infor-mation on this topic is available on page 40.)

For Roy, attending NORTHEAST for the first time thisyear allowed him an inside look into the present and futureof the collision repair profession.

“My impression was, ‘Wow!’” he says of NORTHEAST.“This trade is evolving; if you’re not going to evolve withit, it’s going to run right over you. You have to be up todate on certain things.

“I liked [the show] because it showed new and upcom-ing trends,” he adds. “That’s especially important in ourtrade because we’re always changing. Aluminum repair isaround the corner, so it’s interesting to see how many ven-dors are coming out with equipment.”

At 26, Paul Vermette is working to learn as much as hecan before someday taking over the family business fromhis father. Looking back at his first-ever NORTHEAST ex-perience, he was amazed by how much knowledge and ex-perience he gained in a single day.

“I was very impressed overall with the way that theshow was put together,” he says. “There was a lot of greatinformation that I found there. It was a very professionalatmosphere without it being uptight. It showed me howmuch there is to running a shop and how many avenuesthere are to go down to try to advance the shop.”

Left to right: AASP/MA members Dan Lamontagne,Rick Starbard and Mike Boucher

Kevin Lombard (Lombard Equipment) with AASP/MA’s Jim Marshall


Like many attendees, Paul took advantage of the op-portunity to try out an aluminum welder at ProSpot Inter-national’s extensive display on the show floor. Connectingwith this prominent equipment manufacturer was a memo-rable experience for the future shop owner.

“They had a really great setup,” he says. “ All of theirtools were phenomenal, and they had very helpful reps. Itreally made me want to try their products further.”

While walking the aisles at the Meadowlands Exposi-tion Center was indeed intriguing, Don is quick to remindreaders that if you have the right people riding with you,much can be gained before and after a show like this.

“A lot can be learned just through the drive down andthe drive back,” he observes. “You talk about what equip-ment and techniques work in other shops. You may havesomething that’s working at your business, and you canshare that with others. So many shop owners just stay intheir shop and work, but they’re missing the boat on a lotof stuff.”

Dan Lamontagne (White Lightning Auto Body,Williamsburg) and Mike Boucher (Custom Auto Body, EastLongmeadow) also rode down together to NORTHEAST tostay current on what’s happening in their trade. Both wereblown away by the “Who Pays for What?” seminar givenby high-energy industry speaker Mike Anderson (CollisionAdvice). The Axalta Coating Systems-sponsored talk drewa standing-room-only crowd eager to hear more about thequarterly “Who Pays for What?” surveys conducted byCollision Advice and John Yoswick of CRASH Network.This special project offers clear, third-party insight intowhat shops charge for in the marketplace – and things theircompetitors are charging for that their facilities might notbe at this time.

“That was the best seminar I’ve ever been to,” com-ments Lamontagne. “Mike knows how to wind up an audi-ence; I thought he was excellent. If everybody who did apresentation could do it like he did it, the world would be abetter place.”

“That guy’s like the Energizer Bunny!” adds Boucher,who also used NORTHEAST to purchase tools and equip-ment from at least six different vendors. “He had some ex-cellent food for thought about asking insurance companiesfor things. I’m completely behind the idea that in this colli-sion repair environment, you have to dig for every dimeyou can find. You have to be as inventive as possible aboutthe things you ask for. The Survey that he does shows youwhat shops in and around your area or across the countryare asking for with regard to collision repairs, and it alsoshows you from the percentages how many things peoplenever ask for.”

Prior to the official start of NORTHEAST 2016, industryrepresentatives from across the country gathered for the an-nual East Coast Resolution Forum & Leadership Meeting.Co-hosted by SCRS and AASP/NJ and moderated by EdKizenberger (LIABRA/NYSACTA), the afternoon eventshowcased open and candid dialogue between state associ-ation representatives regarding their individual efforts to

address common issues. During his presentation, SCRS Ex-ecutive Director Aaron Schulenburg urged his industrypeers to focus on being proactive instead of reactive in re-sponding to matters affecting the collision repair field andcommunicating with others to find solutions.

“[That is] not just putting out a press release or indicat-ing activities within your marketplace; utilize the resourcesto connect the dots and draw attention to them by sharingthat information and turning them into stories that educateothers in different states,” he said. “You have an opportu-nity to take what could be issues that are locally isolatedand prevent them from occurring in other places by beingmore proactive and communicating. We have so muchmore at our disposal today that wasn’t there before; wehave so many more places where we can tell the story fromthe perspective of the repairer...If you’re in this room andthinking, ‘Maybe I’m not doing that,’ please consider howyou could or should.”

This year’s Leadership Meeting was of particular inter-est to AASP/MA Vice President Adam Ioakim (Hogan AndVan Auto Body, Medford), who traveled to Secaucus withhis brother, George, to be a part of the annual industrysummit.

“You can’t put a price on the information that is ex-changed,” Adam says. “You have other associations andother shops that are attempting legislation or finding newways of handling things. They are there to exchange infor-mation to see what else is going on across the country, andit’s very valuable from an association standpoint. Whyreinvent the wheel when someone else may have alreadytried or is trying something? You can build on that informa-tion going forward with your own association or your ownshop. Sometimes we get caught between our four wallsbeing as busy as we are, and I think the Leadership Meet-ing is a great opportunity to get outside that box.”

“If you get together with successful shop owners fromother places who have been in the industry for a long time,they can offer input that you can’t just get on a daily basisfrom talking to local shop owners,” adds George. “When

Left to right: Chris Roy (Western Mass Collision, AASP/MA),James Gray (Sherwin-Williams), Don Vermette (Vermette Auto Body,

AASP/MA), Paul Vermette (Vermette Auto Body)

continued on page 54




by Joel Gausten


Industry associations can make a difference.Due to overwhelming pressure from the Alliance of Auto-

motive Service Providers of Massachusetts (AASP/MA) andthe Statewide Towing Association of Massachusetts (STA), theAutomobile Insurance Bureau (AIB) withdrew the eighth edi-tion of its controversial standard auto policy in mid-March.

As regular readers of New England Automotive Report havelearned in recent months, the withdrawn AIB policy containeda number of areas of great concern for insurance consumers aswell as the state’s collision repair and towing industries. In aneffort to get automotive business owners up to speed on recentevents, AASP/MA Executive Director Jillian Zywien welcomedexecutive team member Peter D’Agostino, STA Executive Direc-tor Kim Lowell and auto body industry Attorney James Castle-man for an extensive discussion on the AIB’s auto policycoverage reductions at a special Statewide Meeting held March22 at Greater Lawrence Technical School in Andover.

Originally submitted to the Division of Insurance in May2015, the AIB policy was approved by the Massachusetts Divi-sion of Insurance in October. Insurers are not required to adoptit, but some carriers in the state have chosen to implement therevisions into their auto policy coverages.

As word of insurers adopting the AIB policy began tospread, AASP/MA and STA united for an extensive effort to ad-dress their concerns with the new plan.

“We went to the Legislature and briefed several representa-tives and senators, all of whom agreed to sign on a letter to theAG asking her to investigate the AIB policy,” D’Agostino ex-plained. “We went to the DOI and launched our complaintswith them, then we went to the ADALB and requested that theysubmit a letter to the DOI stating that they believed their regula-tions were being violated by the implementation of this policy.The ADALB unanimously voted to send that letter to the DOIstating just that.”

Due to considerable pressure by AASP/MA and STA, theAIB eventually withdrew its latest policy – the first time in his-tory it had ever done so. D’Agostino noted that AASP/MA andSTA were not the only entities surprised by the AIB’s suddenchange of heart.

“When I called the DOI to ask them how they were goingto handle the policies that they already approved under theeighth edition, the director of the program said she didn’t know.I believe this is because nobody had withdrawn their policy likethis before,” he said.

According to D’Agostino, AASP/MA’s position on thematter is “if the underlying document has been withdrawnas no longer valid, all the documents built on it should beinvalidated.”

Despite this potentially positive turn of events, Lowell cau-tioned that the AIB’s withdrawal came after some insurers hadalready adopted the policy.

“The [concern for the consumers is] some companies havealready adopted the eighth edition and are enforcing it,” she said.

To make matters even more complex, the AIB has recentlyfiled a new version of its proposed policy for DOI review. Al-though AASP/MA has requested a copy of this filing,D’Agostino noted that getting full disclosure of this informationhas been a difficult undertaking.

“The process of getting this policy approved is a completelyprivate process,” he explained. “It’s between a private entityand the Commonwealth; there is no ability for public input.”

While AASP/MA is working to address a multitude ofproblems with the AIB, the STA is facing an uphill battle of itsown.

“[The AIB’s previous policy] said, ‘We will only reimburseconsumers for a rate established by regulation or law,’” ex-plained D’Agostino. “In the Commonwealth of Massachusetts,that’s only two things – a $90 hook fee and $35 a day for stor-age. By saying they will only reimburse you for something es-tablished by regulation or law, it eliminates the reimbursementfor anything else.”

“Under the new policy, the insurance companies havedeleted any coverage whatsoever for any kind of recovery or re-moval of a vehicle,” added Lowell. “If you’re a tower, you’renot going to get paid [by the insurance company] under thatsection if the insurance company has adopted this eighth edi-tion.” Additionally, the consumers will be stuck paying thosecosts out of their own pocket.

To help educate affected parties on the potential effects ofthe AIB’s changes, the STA has prepared a consumer informa-tion handout for members to give people when they visit theshop. Additionally, the group has an information packet avail-able for police departments and agencies in the Commonwealthto better familiarize them with issues facing the towing indus-try. Already gearing up for the next round, AASP/MA and STAplan to send their oppositions to the previous 2015 policy to theRating Bureau for their reference.

“Last time, we didn’t get the opportunity to send those ob-jections directly to the people who approved it,” D’Agostinosaid.

Above all, he encouraged attendees who might encounterproblems with insurers over adoption of the withdrawn policyor the soon-to-be-new AIB policy to inform insureds of exactlywhat the insurance industry is trying to accomplish with thesepolicy revisions.

“We need to start saying [to customers], ‘This is a reductionin your coverage by your insurance company, not an increase inmy rate to repair or tow your vehicle,’” he said.

Unsurprisingly, Castleman agreed that widespread im-plementation of the AIB’s most recent policy would havebeen “quite disastrous” for shops and consumers in theCommonwealth. Addressing meeting attendees later in theevening, he outlined a number of observations and issues hehad with the AIB’s intentions to change auto insurance in Massachusetts. One obvious area of concern for him was theaddition of language to the policy that would establish that “the

Left to Right: AASP/MA's Peter D'Agostino updated members on efforts to prevent the AIB's policy changes.

Attorney Jim Castleman offered insight into why the AIB's policy would be problematic for repairers.STA's Kim Lowell cautioned that some insurers have already adopted the AIB's changes.


cost to repair the auto is the competi-tive price, which we secure from a li-censed repair facility under our directpayment plan.” In his opinion, theAIB is overstepping its bounds ineven suggesting that this proposal betaken seriously.

“Under Massachusetts case law,the reasonable cost is what the gen-eral market charges – not the reducedamount that an insurer’s contractprovider would charge in exchange forreceiving a volume of work from the in-surer,” he said.

Additionally, he noted that ADALB’s regula-tions state that it is illegal for an insurer to get a competitiveprice on a repair from a shop unless that facility has seen thecar.

“How are they going to be able to tell what their referralshop would pay for that?” he observed. “Are they going tobring their referral shop appraisers around to an independentshop? I suspect this is going to continue to be a big issue.”

Rental car reimbursement was another controversial areaof the AIB policy, with the proposed language attempting toestablish that insurers “will pay only for a period of timewhich is reasonable for having your auto repaired or replaced.If your auto is deemed by us to be a total loss, reimbursementfor rental charges and transportation expenses will end threebusiness days after we offer to pay the actual cash value under[collision, limited collision or comprehensive coverages].”

“The intent is obvious; [it is] to unilaterally limit the timefor which they’re going to pay for substitute transportation,”Castleman said.

The collision repair industry’s escalating use of the As-signment of Rights as a remedy for reimbursement issues wasmade a considerable target in the proposed policy, with theAIB attempting to incorporate language stating that underCollision, Limited Collision and Comprehensive coverage, “anassignment of interest under this policy will not bind us with-out our knowledge or consent. Any improper assignmentshall be void and invalid. The assignee shall acquire no rightunder this contract and we shall not recognize any such as-signment...” Castleman argued that while an insured’s insur-ance policy couldn’t be transferred per Massachusetts law,nothing prevents him or her from assigning a claim to anotherparty.

“Once a claim has been made, an insurer cannot preventthe assignment of that claim to a third party, no matter whatthe policy says,” he stated.

With another AIB policy already being proposed, Castle-man urged attendees to remain vigilant in bringing their con-cerns before the DOI.

“The Division of Insurance has not written a policy since2008. There’s been a change in staff; the knowledge base is dif-ferent up there,” he said. “Hopefully, AASP/MA and STA willbe effective in getting the powers that be to realize that thesechanges are major [and] are anti-consumer.”

Although AASP/MA and STAwere victorious in getting the previ-ous AIB policy withdrawn, bothgroups recognize that the fight hasjust begun. Members of the auto bodyindustry in Massachusetts can rest as-sured that their association will not bea passive observer of whatever theAIB plans next.

As D’Agostino said, “We have tostop accepting what they say we can

charge as a company...I understand theimplications of trying to get that paradigm

shift to occur, but we have to start somehow orwe’re going to have to accept what they give us.”

Here are some other elements of the AIB policy thatAASP/MA wants to you know about:

damage to Someone Else’s Property: The model AIB policyincludes new language stating, “The amount we will pay doesnot include compensation for physical damage to your auto ortowing or recovery of your auto...” If a consumer’s vehicle isin an accident in which there is property damage (for example,the vehicle hits a fence, guardrail, sign, house, lands in a poolor skids off the roadway and becomes stuck), under the previ-ous standard policy, the recovery/extrication, clean up andtowing of the vehicle would have been covered under theCompulsory Section - Damage to Someone Else’s Property.This change will leave motor vehicle owners responsible forall costs associated with removal of their vehicle AND restora-tion of the property to pre-accident condition.

Bodily Injury. The model AIB policy includes new languagethat “[i]nsurers will not pay punitive or exemplary damages.”This new language has troubling implications for both indi-viduals who have caused accidents and, more importantly, in-dividuals injured as a result of an accident.

Increased liability. Consumers, who are accustomed to theirinsurance indemnifying or covering them for certain damagesincurred as a result of an accident, may no longer have thosesame protections. A large reason for mandating insurance inthe first place is to ensure that motor vehicle owners are able topay for any injuries caused or, alternatively, for injuries re-ceived. The model language will cost consumers more moneyin the event of an accident.

To add your voice to this critical effort, please joinAASP/MA today and be part of the discussion. For the mostup-to-date information on the AIB policy, contact AASP/MAat (617) 574-0741.

As word of insurersadopting the AIB policy

began to spread, AASP/MAand STA united for an

extensive effort to address their concerns

with the new plan.

MASSACHUSETTS






In the 1980s, young actor David Hasselhoff, playinghigh-tech modern crime fighter Michael Knight, introducedthe world to KITT – a talking, technologically advancedPontiac Firebird Trans Am. To viewers 30 years ago, thispremise was purely science fiction.

As time has progressed, however, we have slowly seenscience fiction become closer and closer to science fact. Forthose in the collision repair industry dealing with Blue-tooth systems, built-in GPS programs, interactive stereosand more, cars in their bays are looking more and more likeKITT every day. But what does this mean for the repairer –or the consumer?

On March 19 at AASP/NJ’s 39th Annual NORTHEAST®

Automotive Services Show in Secaucus, NJ, Sherwin-Williams’ Steve Feltovich presented attendees with a seminarcalled “Competing with the Talking Car – Virtual Steering.”During this discussion, Feltovich explained to attendeesthat today’s car has the computing power of 20 personalcomputers, features about 100 lines of programming codeand processes up to 25 gigabytes of data an hour. While youdon’t have to be a computer programmer to make every re-pair on vehicles these days, it is important to make sure allof these systems are being taken care of in addition to anyphysical repairs being made.

Feltovich shared more of his thoughts with New Eng-

land Automotive Report following the seminar.

“Scanning is one of the most important parts of the re-pair today,” he said. “The customer is paying extra for cer-tain convenience features in [his or her] vehicle, not tomention all of the safety features that are becoming stan-dard. Whether these systems are damaged in the collisionor during a repair, you need to know.”

Pre-scanning vehicles is becoming increasingly impor-tant, especially since the connected car market is projectedto reach $98.4 billion by 2018. Autonomous, self-drivingcars are likely to be commonplace by around 2025.

“If you can’t reset the backup sensors in that Toyotayou have in your bay right now, you’re going to be in bigtrouble when an autonomous vehicle drives in just a fewyears down the road,” Feltovich shared. “The future iscloser than you think.”

Another issue that the connected car presents for re-pairers is what Rick Tuuri, vice president of industry rela-tions for AudaExplore, calls “virtual steering” – a term toexplain the technology that will directly connect a driverwho has been in an accident to an OEM-certified facility atthe first notice of loss.

During his seminar at NORTHEAST 2016, industrygiant Mike Anderson of Collision Advice depicted a hypo-thetical situation in which a driver gets into an accidentand an OnStar-like system alerts the police, emergencymedical services, a tow truck...and notifies an OEM-certi-fied auto body shop if that driver doesn’t already have onein mind.

In an industry where steering by insurance companiesis already one of the largest issues facing repairers today,bringing this kind of technology into the mix adds a wholenew depth to the problem.

“My advice for shops today is to start making invest-ments,” Feltovich says. “Invest in a scanning system to takecare of the cars already in your shop now, and start gettingyourself certified by an OEM to keep the cars coming intoyour shop down the road.”

by Jacquelyn Bauman

tECHNology BENEFItSANd dEtRIMENtS: vIRtUAl StEERINg ANd CoNNECtEd CARS

[TECH] CORNER

MASSACHUSETTS











Many businesses come and go in 40 years, butHarris Auto Body in Worcester is thrivingeven after two generations of ups and

downs. Founded by Doug Haddad, the shop is currently

operated by his son, Alex, who got his start there bycoming to work after a full day of school.

“The bus home would drop me off at the shop in-stead of at my house,” he says. “I would do most of thethings you could let a 12-year-old do around the shop. Iswept, helped customers, answered phones and madelunch runs.”

Eventually, Alex was able to get into the shop andrise through the ranks, first working as a painter, then atechnician and eventually as an appraiser. Less than fiveyears ago, he took over the reins after his father retired.Although he dove in headfirst, he wasn’t truly preparedfor the rollercoaster ride.

“It’s never cut and dry when a business changeshands,” he says. “Even though my father had beenteaching me how to run the shop for a while, there arestill many things that can’t be taught – they have to sim-ply be experienced. I’m really proud of where we’vegotten in just that half of a decade. The shop is seeinggrowth, and that’s my main goal.”

Alex notes that the shop’s technicians are ASE-certi-fied and keep on the cutting edge of equipment, partsand products. They boast top-of-the-line frame measur-ing equipment and a downdraft paint booth, and theyuse OEM parts in every situation they can. As can be ex-pected, the reason for this is a focus on customer service– of which Alex is very proud.

“We have a lot of colleges in our area,” he explains.“A lot of the customers we have coming in here are 18,19 years old. They’re panicked and out of sorts after anaccident. For most of them, it’s their first [collision] andthey don’t really know how to handle it without thehelp of their parents. And a lot of them are from out ofstate. We work extra [hard] to make sure that these peo-ple are taken care of and that they get their vehiclesback in a timely manner with the least amount of stresspossible.”

Alex points out that one of the biggest challengesfacing his shop today is dealing with insurers, particu-larly when handling so many out-of-state customers.

“They really do make doing business very stifling,”he says. This is the reason why he recently joinedAASP/MA.

“My brother Adam owns a shop in Everett [calledAccurate Collision], and told me about the things theassociation is doing for shops in Massachusetts,” he ex-plains. “I figured instead of just sitting back and com-plaining about my problems, I might as well getinvolved in actually looking for a solution.”

He suggests that any shop that is curious about bet-tering the industry consider joining the association.

“I haven’t been a member for very long, but thisdefinitely has provided me with the opportunity to talkto other shop owners in a way that I wouldn’t have if Iwas on my own,” he says. “The networking is an in-stant benefit that I think all shops in Massachusettsshould at least look into.”

MASSACHUSETTS


by Jacquelyn Bauman

[MEMBER SHOP] SPOTLIGHT

HARRISAUTO BODY


As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of

ethics. 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.

2016 MEMBERSHIP APPLICATION

*** PlEASE tyPE oR PRINt lEgIBly ***

12 Post office Square, 6th Floor • Boston, MA 02109

Phone: (617) 574-0741 | Fax: (617) 695-0173|[email protected]

Primary Contact Name: ________________________________________________________________________________________________

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E-mail Address ________________________________________ Web Site Address ____________________________________________

Street City State Zip

Street City State Zip

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


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

MEMBERSHIP TYPE (check one)

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Allen Mello Chrysler Dodge Jeep Ram ........19

Audi Group ....................................................25

Audi Shrewsbury ..........................................41

Axalta Coating Systems ..................................4

Bald Hill Chrysler Jeep Dodge Ram..............8

Balise Wholesale Parts Express ......................6

Baystate Chrysler/Jeep/Dodge ..................44

Best Chevrolet/Best CDJR..........................IFC

BMW Group ..............................................16-17

BMW/Mini of Warwick ................................12

Clay Subaru ....................................................44

Collision Equipment Company ....................9

Colonial Auto Group ....................................24

Database Enhancement Gateway ................18

Empire Auto Parts..........................................10

Enterprise ........................................................51

First Chrysler-Dodge-Jeep-Ram ..................51

First Ford ........................................................51

First Hyundai..................................................51

Ford Group ....................................................35

Honda Group..................................................37

Hyundai Group..............................................53

Imperial Ford..................................................40

Infiniti of Norwood........................................29

Ira Group....................................................12-13

Kelly Automotive Group............................IBC

Kia Group........................................................30

Linder’s, Inc. ..................................................54

Long Automotive Group ..........................OBC

Mazda Group..................................................47

Mercedes-Benz of Shrewsbury ....................41

Mopar Group..................................................39

Nissan Group..................................................50

Polyvance ........................................................36

PPG ....................................................................3

Robertsons GMC Truck ................................45

Sarat Ford Lincoln..........................................45

Sentry Group ..................................................31

Subaru Group............................................42-43

Tasca Group ....................................................22

Toyota Group..................................................21

Village Auto Group........................................38

VW Group ......................................................52

Wagner BMW of Shrewsbury ......................41

Wagner Kia of Shrewsbury ..........................41

Wellesley Toyota/Scion ................................23

Wheel Collision Center ................................23

AD INDEX

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

continued from pg. 28

you talk to guys from Oregon, NewJersey, Connecticut and all over, thereare things that they can offer us, andthere are things that we can offerthem. It serves us all well.”

Bolstered by the active supportand participation of AASP/MA mem-bers, NORTHEAST 2016 proved thata great show is worth the trip. If youhave yet to experience this one-of-a-

kind weekend, you know where youhave to be next March.

For news and updates on the 2017installment of NORTHEAST, visit aaspnjnortheast.com.

MASSACHUSETTS


[NATIONAL] FEATURE

New England Automotive Report May 2016

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