wisconsin automotive news summer 2014
DESCRIPTION
The Official Publication of the Wisconsin Auto Collision Technicians Association Ltd. (WACTAL)TRANSCRIPT
www.grecopublishing.com
Summer 2014
Plus:WACTAL Foundation Scholarships
Coachwork AutobodyS.A.F.E. Cars Symposium
The Collision IndustryGoes to Court:
Lawsuits Take on Insurers,PartsTrader
The Official Publication of the Wisconsin Auto Collision Technicians Association Ltd.
CONTENTS
2014-2015 WACTALBOARD of DIRECTORS
PresidentLarry TerrienMJ Collision [email protected]
Vice PresidentMark WilliamsWilliams Auto [email protected]
Secretary/TreasurerRonnie GossGoss Auto Body, [email protected]
DirectorsJames BryhanBryhan's Body & Paint Specialists
Eileen HabermanGlen's Auto Body, Inc.
Randy JohanssonFinishMaster
Art KrolikowskiReedsburg Auto Body Inc.
Mike MiyagawaM & M Auto Body Inc.
Michael TaylorZimbrick Chevrolet-Sun Prairie
Association AdministrationSue [email protected] / [email protected](800) 366-9482
LobbyistJolene [email protected]
Wisconsin Automotive News is published quarterly by Thomas Greco Publishing, Inc., 244Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 toall others. Additional copies of Wisconsin Automotive News are available at $5 per copy.Reproduction of any portions of this publication is specifically prohibited without written per-mission of the publisher. The opinions and ideas appearing in this magazine are not neces-sarily representations of Thomas Greco Publishing, Inc. or of WACTAL. Copyright © 2014 byThomas Greco Publishing, Inc. Cover image © www.thinkstockphoto.com/fergregory; pg. 11:©www.thinkstockphoto.com/YuLi4ka
Summer 2014 Vol. 1 Number 4
PRESIDENT’S MESSAGE........................................................5S.A.F.E. Cars Symposium Offers Insight into Repairers’ Legal Optionsby Larry Terrien
LOCAL NEWS ....................................................................7Grafton “Auto Hawks” Grab National Gold at Ford/AAA Auto Skills Competition
WACTAL MEMBER SPOTLIGHT ................................................13Coachwork Autobody, Allenton, WI
FEATURE STORY ................................................................15The Collision Industry Goes to Court: Lawsuits Take on Insurers, PartsTraderby Joel Gausten
WACTAL MEMBERSHIP APPLICATION ........................................17
WACTAL “RECRUIT-A-MEMBER” PROGRAM ..................................18
ADVERTISER’S INDEXPUBLISHED BY: Thomas Greco Publishing, Inc.244 Chestnut St., Suite 202 Nutley, NJ 07110PHONE: 973-667-6922 • FAX: 973-235-1963ADVERTISING: 800-991-1995 • [email protected]
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EDITOR: Joel Gausten ([email protected])
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3Summer 2014
Summer 20144
I recently attended the S.A.F.E. Cars Educational Symposium in Schaumburg,IL. Hosted by the Alliance of Automotive Service Providers of Illinois (AASP-IL), thetwo-day conference featured breakout sessions, product demonstrations and pre-sentations by speakers including John Eaves, Jr. (attorney at law and founder ofwww.safecars.us), John Mosley (Clinton Body Shop, Clinton, MS), Ray Gunder(Gunder’s Auto Center, Lakeland, FL) and Brent Geohagan (attorney at law,Lakeland, FL), who gave details regarding the lawsuits that have been filedthroughout the country starting in Mississippi.
Mississippi Attorney General and President Elect of the National Association ofAttorneys General Jim Hood was also on hand, and spoke about the effectPartsTrader is having on the industry nationwide. He also provided attendees withdetails on how to contact the Attorneys General in their respective states. PatrickMcGuire, a nationally recognized attorney as well as a well-respected advocate ofcollision repairers, discussed getting reimbursed by insurers and understanding theliability that goes with each and every repair. Also included was a presentation fromFord on the reparability of the new F-150 as well as a discussion on what it takesto become a Ford Certified/Recognized collision repair center.
The event’s two keynote speakers were definitely among the highlights of theevent. On Friday night, former Chicago Bears tight end Desmond Clark spokeabout “what it means to have a great coach and mentor” and how this theme car-ries over into one’s personal life. On Saturday evening, former Seal Team Onemember and Congressional Medal of Honor recipient Michael Thornton gave amoving and inspirational speech about how “The Team is Above Self, Always.” Hespoke about how this principle, which has guided his life, can be used to help thecollision repair industry.
In my opinion, the S.A.F.E. Cars Symposium provided a great deal of valuableinformation for industry members looking to explore their options in getting compen-sation for repairs. If you were not at the event, please turn to page 15 to learn abouthow the collision industry is taking matters into its own hands, and exploring thelegal route to get proper compensation for the safe, quality repairs they provide.
Larry TerrienPresidentWisconsin Auto Collision Technicians Association Ltd. (WACTAL)
PRESIDENT’SMESSAGE
S.A.F.E. Cars SymposiumOffers Insight intoRepairers’ Legal Options
WAN
Summer 2014 5
6 Summer 2014
LocalNEWS
The Grafton High School Auto Hawksrecently did their school and communityproud by taking home the Gold at the 2014Ford/AAA Student Auto Skills NationalFinals. This year’s event, held June 8-11 inDearborn, MI and co-sponsored by AAAand Ford Motor Company, hosted 50teams in a competition series including awritten test and a “hands-on” portion.
2014 GHS graduates Justin Bublitzand Colt Morris competed as a two-manteam and not only achieved the only per-fect score out of all competitors, but did sousing only 60 of their allotted 90-minutetime frame. The team also scored 20 pointshigher than the Second Place competitorson the written portion of the competition!
Morris and Bublitz (who currently pos-sess Youth Apprentice and AYES intern
status as well as passing grades on theirstudent technician certifications) wereawarded scholarships, tools and apparelfor their victory, as well as a grand prizeweek-long stay in Charlotte, NC andDaytona Beach, FL shadowing TrevorBayne’s NASCAR Racing Team.
According to the organization’s web-site, the objective of the Ford/AAA StudentAuto Skills competition is “to encourage tal-ented young people to pursue careers asautomotive service technicians. AAA and
Ford wholeheartedly support this objectiveand are committed to this program as aninvestment in the future of our young peo-ple and improved automotive service forAAA members, Ford Motor Company cus-tomers and all motorists.” For more infor-mation on the competition, please visithttp://autoskills.aaa.com.
Wisconsin Automotive News andWACTAL congratulate Justin and Colt ontheir impressive wins!
Summer 2014 7
Grafton “Auto Hawks” Grab National Gold atFord/AAA Auto SkillsCompetition
Schmit Bros. Ford in Grafton has been sponsor-ing the Grafton Auto Hawks team for 20 years.Pictured L-R: Schmit Bros. Ford General SalesManager Igor Sapozhnikov, President MikeSchmit, Auto Hawks team member JustlinBublitz, team coach Carl Hader, team memberColt Morris and Schmit Service Manager CraigPanzer. Photo courtesy of Mark Justesen / TheNews Graphic.
Summer 2014 8
9Summer 2014
WACTAL Foundation Scholarships
Three Wisconsin high school gradu-ates are recipients of this year’s WACTALFoundation scholarships.
The WACTAL Foundation Inc. isawarding three scholarships this year.Recipients are Travis Guy of White Lake,Alex Henderson of Appleton and JacksonJalowitz of Medford. The recipients will usetheir award to fund their education in colli-sion technology. Travis and Alex will beattending Fox Valley Technical College andJackson will attend Chippewa ValleyTechnical College. Recipients will receiveup to $2,000 toward tuition. In addition tothe award, the recipients will receive a toolset valued at more than $3,000 from Snap-on Corporation headquartered in Kenosha,WI.
The scholarship program is adminis-tered by the Foundation of the WisconsinAutomobile & Truck Dealers Association. Inaddition to the auto collision scholarships,which the WACTAL Foundation sponsors,the Foundation of the WisconsinAutomobile & Truck Dealers Associationoffers scholarship for automotive technolo-gy and diesel.
The application process, whichincludes evaluation testing and interviews,ensures that we attract top-notch individu-als to apply for the scholarships.
The successful continuation of thescholarship program depends on dona-tions. The WACTAL Foundation, Inc. is a501(c)(3) non-profit agency. If you wish tomake a tax-deductible donation, pleasecontact the WACTAL office at (800)366/9472 or [email protected].
VIN Label Update
Trooper Sieber’s presentation on sal-vage vehicle inspections at the WACTALconference caused some controversy,especially regarding statements thatreplacing the door information label is ille-gal. Since that presentation, WACTAL hasbeen working with the Department ofTransportation and State Patrol in clarifyingthe replacement of vehicle labels, in partic-ular the door label. The door information
label provides vital information beyond theVIN. Depending on the make and model,most list paint codes, trim codes, builddate, engine and transmission codes, tiresizes and inflation requirements, optioncodes, federal safety compliance state-ment, gross vehicle weight, bar codes thatneed to be read when doing service work,etc., on the door information label. Theselabels contain information that is locatednowhere else on the vehicle. Not only isthis information vital to the vehicle ownerand repairers, its replacement is requiredto bring the vehicle back to pre-accidentcondition.
WACTAL lobbyist Jolene Plautz andWACTAL president Larry Terrein havebeen working with Mitch Warren with theDOT on this issue and he stated “this typeof labeling has never been considered a‘formal VIN’ as described in statute.”
WACTAL will provide information onthis issue as it becomes available.
Around the State
The May meeting of the CentralWisconsin Auto Body Association(CWABA) featured a presentation on WebMarketing, followed by a video on the newFord F-150. CWABA will meet again inSeptember.
The 8th Annual Indianhead Auto BodyAssociation trade fair was held May 6th atTurtleback Golf & Conference Center inRice Lake. More than 25 vendors partici-pated. More than 60 attendees enjoyed acomplimentary buffet supper, door prizesand more. Indianhead Auto BodyAssociation will resume meetings in thefall.
Pro Paint’s 7th Annual Trade Fair willbe held August 12, 2014 (4-9pm) at TheOrchard in Baldwin, WI. A series of semi-nars are scheduled starting at 10am whichinclude: Collision Shop Best Practices,Proper Gun Set-up & Care, ImprovingTransfer Efficiency & Reducing VOCEmissions, Adjustrite Estimating, and muchmore. For more information or to register,contact Pro Paint (800) 234-6898;www.propaintinc.com.
Obituary
Betty Ratchek passed away May 19,2014 after a hard-fought battle with cancer.Betty is survived by her husband, Jim(Jim’s Auto Body, Burlington, WI); daugh-ters Rene Ratchek (former WACTAL presi-dent) and Andrea (Michael) Stanek; andgranddaughters, Brielle, Reed andMcKenna Stanek.
A well-attended celebration of Betty’slife with photos, family, friends, laughter,love, and a few tears was a testament toBetty’s love of life and love of others. Bettywill live on in our hearts and through theflowers that will grow from the packets ofseeds given to those who attended the cel-ebration. The card attached to the seedpacket read:
Beautiful and boldEnergeticTremendous heartThankfulYou could only love!
Plant these seeds in loving memory ofour Betty Boop!
Our condolences to the Ratchekfamily.
LocalNEWS
WAN
SAVE THE DATE!WACTAL 2015
Spring ConferenceMarch 6-7, 2015
Tundra LodgeGreen Bay, WI
11Summer 2014
SAVE THE DATE!!!WACTAL 2015
Spring Conference March 6-7, 2015Tundra Lodge, Green Bay,Wisconsin
12 Summer 2014
Increase Your Salesand Support the
State’s Most InfluentialAutomotive Repair
Association!
Get In on the Start ofSomething BIG!
Contact Norman Morano1-800-991-1995
WACTALMEMBER
SPOTLIGHTCoachwork Autobody Allenton, WICoachwork Autobody Allenton, WI
13Summer 2014
For over 30 years, Coachwork Autobody hasbeen providing quality collision repair servicesto the West Bend and Allenton area. 2014marks a new chapter in the business, with thefacility becoming a member of the WisconsinAuto Collision Technicians Association Ltd.(WACTAL). Wisconsin Automotive News satdown with co-owners Patrick and PatriciaMcIntee to discuss how they got into the busi-ness as well as the goals and philosophiesthat have kept their shop going strong forthree decades.
Wisconsin Automotive News: Please tell usabout how you got your start in the colli-sion repair industry. Patrick: My father actually owned McInteeAuto Salvage in Slinger back in the ’60s, so Iwas in the auto industry at a very young age. Igraduated from the General Motors TrainingCenter and worked in both a dealer body shopand import shop before opening Coachwork in1980.
Patricia: We started out in downtown WestBend, but in 1982 relocated to our presentspot in Allenton. Over the years, we’ve maderenovations to the place and are now at 8,400square feet, with three combo techs, oneoffice person and one maintenance person onour staff.
WAN: You recently became a WACTALmember. What inspired you to join theassociation?Patrick: We attended WACTAL’s 2014 con-vention in February, and we were veryimpressed with the speakers and topics cov-ered. In addition to all the great informationpresented, it was encouraging to meet andnetwork with so many nice people, and knowthat we all have the same challenges and con-cerns.
Patricia: A big bonus we didn’t know aboutwhen we signed up was that WACTAL mem-bers get a discount on West Bend MutualInsurance. We happened to join the associa-
tion just prior to our policy renewal date -which is with West Bend - so it was perfecttiming and a win-win for us! And Patrick was acharter member of the Eastern Wisconsin AutoBody Technicians Association (EWABTA) backin 1987, so we both have high regard for theimportance of belonging to a trade associa-tion. He also served on the Lakeshore Tech.Advisory Committee for their Auto Body pro-gram.
WAN: What do you when you’re not in theshop?Patrick: I have been pretty passionate aboutracing since the ’70s. Patricia, on the otherhand…
Patricia: Me? Not so much. [laughs] I’d ratherbe golfing!
Patrick: It’s a big hobby of mine. I’ve beenpart of a pit crew for over 35 years, and in2000 started racing my own car at SlingerSuper Speedway. And like Patricia said, welike to do as much golfing as we can as a fam-ily activity.
WAN: What would you say is your favoritething about working in the collision repair industry?Patrick: Honestly, the artistic aspect of theindustry is what keeps me coming to workevery day. Seeing a car go from totallysmashed to good as new provides a realsense of pride in our business. I started out onthe mechanical repair end and switched to acollision focus because of the outward natureof the repairs. It’s amazing to see the transfor-mation of a damaged car to pre-accident con-dition.
Patricia: It’s also very rewarding to work withthe customers throughout the repair process -not only explaining what the job will entail butalso opening their eyes to just how complexthis industry really is. It’s not “just a dent in thedoor” - I love being able to have our cus-tomers walk away not only satisfied with a
quality job, but more educated for the nexttime they have to deal with the collision repairindustry.
WAN: Does the shop participate in anycharity/volunteer organizations or groupsin your community?Patrick: We are involved in a number of chari-table initiatives to help give back to the com-munity. We work with a group called FamilyPromise through the churches in our area,which helps house and feed the homeless. Wealso support The Threshold, Inc., aWashington County-based agency that offersopportunities to individuals with special needs.
Patricia: I sit on the Board for CelebrateFamilies, which is a free annual event inWashington County that features a resourcefair for non-profit organizations and a numberof kid-friendly activities for families to enjoy. It’sa great time - Patrick and some of his friendsbring out a few of the racecars for the kids tosee up close, and they sign autographs. Wealso belong to the West Bend Area Chamberof Commerce. We feel it’s important to get toknow fellow businesspeople as well as themembers of the community we’re serving. Andit gives us a chance to help promote the pro-fessionalism of our industry to the public.
WAN: What would you say is your greatest accomplishment? Patrick: I’m most proud that we’ve been inbusiness and successful for 34 years, andmarried for 42 years.
Patricia: It’s not always easy working side byside with your business partner - especiallywhen you’ve been married to them for fourdecades! - but it’s been a recipe for successwith us. We are fortunate and so happy to bewhere we are all these years later.
WAN
Summer 201414
15Summer 2014
Lawyers and repairers make an intriguing team.With frustration throughout the auto body industry at an all-time high,
recent months have seen an impossible-to-ignore surge in legal casesagainst insurance companies. From pushing against mandated parts pro-curement programs to alleging multi-layered conspiracies to suppressshops’ economic growth, repair businesses are battling their adversaries atan ever-accelerating pace.
The national collision industry’s work in the legal arena reached newheights on April 30, when Crawford’s Auto Center of Downingtown, PA fileda 164-page lawsuit against seven of the nation’s top auto insurers - StateFarm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual andNationwide - alleging that the carriers conspired to control the cost of auto-mobile repairs. The suit argues that the defendant insurers also violated theRacketeer Influenced and Corrupt Organization Act (RICO) by creating arti-ficial “prevailing” rates based on their DRP shops’ use of products by theindustry’s three leading Information Providers (Audatex [AudaExplore],CCC or Mitchell), who have been named as conspirators. The suit, whichalso names USAA, Travelers and American Family as conspirators but notas defendants, was filed in the US District Court for the Northern District ofIllinois, Eastern Division.
According to the suit, the action against the defendant insurers aimsto address their “long-running unlawful conduct to suppress compensationto repair facilities for automotive collision repairs covered by insurance.”The suit claims that the defendant insurers (together with the three conspir-ator carriers) collectively hold 70 percent of the market “and control allaspects of collision repairs, including establishing the industry standards forcompensation paid to repair facilities.” Additionally, the suit alleges that theInformation Providers “serve two masters” - the defendant insurers as wellas “the repair facilities, which must use the estimating programs to performtheir work because the estimates are the only means by which insuredrepairs are paid.”
Crawford’s seeks to have the lawsuit granted class action status,allowing for the inclusion of any non-DRP facilities that “performed automo-tive collision repair work or services on or in connection with a vehicleinsured by, or covered under insurance issued by” any of the seven defen-dant insurers and used a CCC, Mitchell or Audatex estimating program fora repair estimate or supplement since January 1, 2006.
Attorney Steven L. Bloch (Berger & Montague, P.C.), legal counsel forthe plaintiff and proposed classes, says the case has received an “extreme-ly favorable” response from various members of the collision repair industry.
“We’re fully confident in the case that we’ve set forth,” he says. “Weintend to proceed with all due deliberate effort and speed in seeking reme-dy and relief on behalf of the class.”
Although Crawford’s has earned plenty of attention in recent weeks,going up against the insurance industry is nothing new to the MississippiCollision Repair Association (MSCRA). Last summer, MSCRA joineddozens of collision repair facility operators, OEM dealers and other partssuppliers in filing a lawsuit against State Farm and PartsTrader LLC,requesting a preliminary injunction against the defendants from proceeding“with the forced implementation of the PartsTrader program” in the state.Now, nearly a year later, PartsTrader is indeed active in Mississippi (as wellas the other 47 continental states and the District of Columbia), and the
MSCRA suit sits in federal court after State Farm filed a motion to move thematter out of state court. Although PartsTrader is currently operating inMississippi as part of the program’s national rollout, MSCRA PresidentJohn Mosley (Clinton Body Shop, Clinton, MS) insists that the legal fight isfar from over.
“When [the case] is heard in federal court, we anticipate that it will bemoved back to state court, where it belongs,” he says. “We still believewe’ll be successful in stopping PartsTrader in Mississippi.”
Mosley’s current optimism is in line with the stance he and Mississippiattorney John Eaves, Jr. have taken since the first day the complaint wasfiled. Speaking from the audience at a special “PartsTrader Comes to theNortheast: Now What?” presentation last March during the NORTHEAST®2014 Automotive Services Show in Secaucus, NJ, both made their reasonsbehind the suit known to anyone who would listen.
“PartsTrader operates like a virus,” offered Eaves. “It affects theshops, and they put pressure on the vendors and the dealerships. Then,they put pressure on the other shops. It’s a virus that continues to spread;because of that, it affects the entire market whether you are Select Serviceor not. We believe that is a tortious interference with your business relation-ship. This is still the United States of America, and you can still do businesswith anyone you want to.”
“We wouldn’t be having this conversation, and the dealers wouldn’tbe in the position they’re in, if we – the body shop operators – didn’t signon to the program,” added Mosley.
(The request for injunctive relief isn’t Eaves’ only journey into collisionrepair litigation: Last January, he filed a suit on behalf of 21 Mississippishops against a host of carriers including State Farm, Progressive, Allstate,Nationwide, GEICO and USAA. The complaint alleges that the defendants“have engaged in an ongoing, concerted and intentional course of actionand conduct with State Farm acting as the spearhead to improperly andillegally control and depress automobile damage repair costs to the detri-ment of the Plaintiffs and the substantial profit of the Defendants.” Eaveshas expressed his intention to add all 50 states to the cause.)
Despite the industry’s resistance to PartsTrader, the program contin-ues to grow. According to figures released by the company on April 23,more than 7,500 repairers and 8,500 suppliers are active on the system,with OEMs comprising more than 75 percent of the active suppliers.PartsTrader states that they have processed more than 750,000 quoterequests, generating more than 1 million confirmed parts orders.
Currently, PartsTrader is offered without an insurer mandate inMassachusetts and Rhode Island. This raises an interesting question: HasPartsTrader offered enough value to those shops and dealers using it tomake it attractive as a free-market item?
“I would say no,” offers one prominent east coast-based parts manag-er. “Nothing good is coming from this, but this is the way business is going.You’re going to see body shops say, ‘I’m not going to be your DRP any-more,’ and then you’re going to see the smaller guys closing up becausethey’re not going to be able to survive if they’re not DRPs.”
With the collision industry pursuing legal avenues like never before,the remaining months of 2014 are sure to inspire headlines, debate and – ifthese shops are ultimately successful – tremendous change for auto repairfacilities across the nation.
FeatureSTORY
The Collision Industry Goes to Court: Lawsuits Take on Insurers, PartsTrader
by Joel Gausten
WAN
Summer 201416
17Summer 2014
WISCONSIN AUTO COLLISION TECHNICIANS ASSOCIATION, LTD.W226 S1742 State Road 164 S
Waukesha, WI 53186PH: 262-542-7707 or 800-366-9472
FAX: [email protected]
APPLICATION FOR MEMBERSHIP
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I hereby apply for membership in the Wisconsin Auto Collision Technicians Association, Ltd. I promise to abide bythe association’s By-Laws and Code of Ethics. I understand that any signs, decals or emblems provided by theassociation remain the property of the association, and I agree to return them to the association upon termination ofmembership. I understand that the use of the association logo and identification is authorized only as long as mymembership is maintained.
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DUES: Membership dues are based on the number of employees, including active officers, partners & owners.Part-time employees count as 1/2. Annual dues schedule is as follows:
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“Recruit-a-Member”Member Program
For each member an existing WACTAL member recruits, the sponsoring (existing)member will receive a one-time $50 credit toward their membership dues.
There is no limit on the number of members an existing member can recruit.If the dollar amount of the credits exceeds the sponsoring member’s annual dues,
the excess amount will carry forward to subsequent years.
No monies will be paid out and credits cannot be cashed out. Credits cannot be split amongst multiple members.
The sponsoring member’s individual and business name must be listed on the new member’s Application for Membership as the sponsoring member.
If the new member had been a WACTAL memberduring the prior calendar year, no commission will be allowed.
This program can be rescinded or amended without prior notice. In the event theprogram is rescinded or amended, credits for applications received after the change will beprocessed under the new program. No credits will be issued if the program is rescinded.
