MAGAZINE LEADERS IN THE SALE OF QUALITY
PARTS
Targeted Chrysler dealers plan appeal to auto task force Page 3
June 2009
Marketing 201 Pages 6-8
Five Simple Things You Can Do Every Day to Improve Your Bottom Line Page 16
Also In This Issue
A Message from MMG President Brent Hoge The Challenge of Change LearnStuffNow Announces LSN Learning Network SCRS Asks U.S.A.G. to Investigate Violations SCRS Applauds Free OEM Information Ford and LKQ Settle Disputes Mechanic Charged in Fatal Brake Failure OEConnection Tracy Industries Reynolds & Reynolds Snap-On Business Solutions US Driving Declines, Gas on the Rise Vinal Tech Hosts SkillsUSA Competition 2009 MMG Guild Committees
Page 2 Page 4-5 Page 9 Page 10 Page 11 Page 12 Page 17 Page 18-19 Page 20-23 Page 24 Page 25-27 Page 28 Page 29 Page 30
Mopar Masters Guild Magazine
June 2009
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A Message from the desk of Brent Hoge Mopar Masters Guild President The recent events involving the auto industry have given me a reason to pause. Since the last newsletter, Chrysler announced the list of the dealers that were to be closed and the bankruptcy court has approved the sale of Chrysler’s assets to Fiat to form the new Chrysler Group LLC. The first was a sign of the end of the old, and the second a rebirth and the future for our business. When the announcement came out of the dealers that were being closed I was in shock. I likened the day to Black Tuesday in 1929 or Black Monday in 1987. It was a feeling as if the industry was collapsing around me. I read the list and was surprised at many names on there. The guild will miss the presence of members that were lost to these cuts. However, many of these members will only be absent for a short period. They are very strong and hard working individuals who will be back within our ranks in the very near future. And remember, once a Master, always a Master. As time has gone on I have seen the first signs of the reemergence of a “New Chrysler” and the future that is before us. The restructuring of Chrysler will present us with new opportunities and a stronger company going forward. As guild members we need to come together and work with the “New Chrysler” to make it better business for all. In these transitory times our supporting vendors may feel left out in the cold, but the guild is committed to continue on and we will remain as strong as ever. The continuing goal of our partnerships will be to improve the way we all do business.
Brent
Mopar Masters Guild Magazine
June 2009
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Targeted Chrysler dealers plan appeal to auto task force Dave Guilford Automotive News May 18, 2009 - 12:01 am ET UPDATED: 5/18/09 3:20 p.m. ET
Dealers who would lose franchises under Chrysler LLC's plan to eliminate 25 percent of its U.S. retail network will ask the Obama auto task force to intervene on their behalf. "We're not a liability, we're an asset," said dealer Wade Walker of Montpelier, Vt., the leader of the Committee of Affected Chrysler Dealers. Walker, owner of Walker Motors, said lawyers for the group will file information with the task force on Tuesday. The hope is that the task force, which is overseeing the bailout of Chrysler and General Motors, will force Chrysler to abandon its plan to ax franchises of 789 dealerships, he says. Their main argument will be that Chrysler's dealer-reduction plan will permanently hurt company revenues. "Chrysler will never be able to sell as many automobiles," Walker said. He said about 500 dealers joined a committee conference call with attorneys today. The committee will also file a motion in U.S. Bankruptcy Court in New York to argue against Chrysler's request to cancel the franchise agreements. The committee will join Chrysler's national dealer council in opposing Chrysler's plan. The dealer council filed a motion on Saturday arguing against the automaker's request to end operations at 789 dealerships by June 9, citing their importance in generating revenue, and asking that all legal protections they would have outside of bankruptcy court be respected. Bankruptcy Court Judge Arthur Gonzalez is scheduled to hear objections to Chrysler's request on June 4. The dealer council's motion says maintaining a dealer network is vital to the future success of Chrysler, and that dealers generate revenue for the automaker, while bearing "the risk on unsold cars and cars in transit from the factory." The motion states that dealers on average own $4.9 million in new car inventory, and have invested about "$2.5 million per dealer" in facilities. "Fewer dealers will mean less inventory available to the public. Lower inventory reduces the chances that a customer will find the car they are looking for and therefore hurts sales." Finally, the Chrysler National Dealer Council asks Judge Gonzalez to give dealers the right to all redress they would have outside of bankruptcy court, including state franchise-protection laws. Chrysler is asking the judge to allow the company on June 9 to halt operations of dealerships on the rejected list. Chrysler will not buy back the inventory and parts of the rejected dealerships. Instead the automaker will recommend dealerships that might be willing to buy the inventory. Chrysler wants to move the 44,000 vehicles at the targeted dealerships to surviving stores rather than see them go to auctions and used-car lots.
Mopar Masters Guild Magazine
June 2009
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The Challenge of Change By Dr. John C. Maxwell The history of Henry Ford and the Model T illustrates a fundamental truth about leadership: Leaders never outgrow the need to change. On his way to dominating the automotive market with the Model T, Henry Ford embodied innovation and progress. By pioneering the assembly line, Ford slashed the amount of time needed to manufacture an automobile. He installed large conveyor belts in his factory, allowing workers to stay in one place rather than roaming around the factory floor. He also shortened the workday of his employees from nine hours to eight hours so that his factories could operate around the clock. The efficiencies Ford introduced allowed cars to be manufactured at a fraction of their previous costs. In under a decade, automobiles went from being luxuries affordable only to the wealthiest Americans, to being standard possessions of the average American family. Ford profited handily from the popularity of the Model T, and Ford Motor Co. grew into an empire. However, the dominance of Ford Motor Co. was short-lived. As competitors changed their operations to copy Ford’s concept of mass production, Henry Ford made a tremendous leadership blunder. With cars rolling off assembly lines like never before, consumers began to demand a variety of colors. However, Ford stubbornly refused, uttering the famous line, “The customer can have any color he wants so long as it’s black.” In Ford’s mind, producing multiple colors was foolhardy since black paint dried the fastest and could be used most efficiently. Amazingly, Ford did not comprehend the human preference for variety. Customers flocked en masse to other producers who catered to their color preferences, and Ford Motor Co. never regained its grip on the market. For so long, Henry Ford had focused on moving from inefficiency to efficiency that he refused to move in the opposite direction—from efficiency to inefficiency—even when doing so would have been wise and profitable. Ford’s genius in sparking change had catapulted him to the pinnacle of American commerce, but later, his inability to change cost him dearly. I’d like to overview the central challenges faced by leaders when they try to make changes in their lives. In doing so, I have drawn upon the wisdom of my friend, Sam Chand, author of the book “LADDERShifts” and a prominent thinker in the field of leadership and change. Issues that make change a challenge: Critics Along the journey of leadership, you’ll meet all sorts of people, and I guarantee you’ll bump into a few (Continued on page 5)
Mopar Masters Guild Magazine
June 2009
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critics. Early in my career, I didn’t know how to handle disapproval, and I bent over backward to keep everyone happy. In spite of my best efforts, I failed. Some of my people still didn’t like me. Trying to appease everybody invites trouble. Appeasers end up being average because they always gravitate to the middle of the road. They’re afraid to make waves, and therefore, they avoid changes. My leadership began to take flight when I allowed myself to press people to change—whether they thanked me or cursed me. People you have outgrown As we climb the levels of leadership, we come to the sad realization that most people aren’t committed to personal growth. Friends who once shared our dreams begin to settle for second best. Members of our inner circle quit when the journey gets hard. If we are to change ourselves for the better, then we need to change the company we keep. Eventually, we must change our relationships by disengaging from the people we’ve outgrown. Disassociating from colleagues can be especially painful given your history together, the contributions they have made in your life, and your personal feelings toward them. Disengaging is painful because you care about them. It’s painful because they may not understand why you’ve drifted away from them. It’s painful all the way around, but remember, unless you are willing to endure these pains, your own growth as a leader will be limited. Leaders only grow to the threshold of their pain. The Weight of Responsibility When we’re young, leadership has an idealistic appeal. We yearn to be in charge and out front, making the decisions. However, the reality of leadership involves the heavy burden of responsibility. Missteps by a leader can affect people’s livelihoods or an organization’s sustainability. The fear of getting it wrong can paralyze a leader. If we, as leaders, want to make significant changes to increase our impact, then we must be willing to shoulder progressively greater loads. Although added responsibility gives us a greater opportunity to exercise leadership, it also magnifies the consequences of our mistakes. To be a change agent, a leader must be willing to take ownership of key projects and pivotal decisions. Personal inadequacies As we grow in our leadership, we advance into uncharted territory—areas beyond our comfort zones. Such occasions give us growing pains by confronting us with our inadequacies. Our wisdom fails to solve a problem, or we stumble into a situation requiring more wisdom than we possess. Facing our limitations can be daunting. At times, we’d rather stick to familiar roads than blaze a new trail and risk failure. Ultimately, pushing our personal boundaries is the surest way to grow, improve and expand the scope of our influence. John C. Maxwell is an internationally recognized leadership expert, speaker and author. To learn more about or to contact him, visit www.johnmaxwell.com
Mopar Masters Guild Magazine
June 2009
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Marketing 201 As times continue to carry on with a great deal of uncertainty for us all, we must seek out new ways to market and sell our product. In Marketing 101 (which was in the last issue of the Mopar Masters Magazine) we discussed how to build a Marketing Plan. It entailed four components that would help you to get your personalized marketing plan started. The first was determining who will lead on the marketing plan or programs that you put into place. After you have established key personnel, who know the goal of the parts department; the second step was to identify your target market. Identifying your target audience is key in getting your marketing to the right people. We can send out fliers and make calls all day but if they are to a generic list of people we may not see the result we were looking for. The third step to your plan was to hold a brainstorming session with all the people in your department. I believe that it is important to get all of your parts people involved in the brainstorming, whether or not their specialty is marketing, everyone has ideas and everyone can add value. The ideas in the brainstorming session can add to your marketing plan by giving your parts department direction on the areas that you should be marketing to. The last step to your marketing plan was marketing communications; how will your department put themselves out there? These are the specifics you will be marketing; for example, fliers, phone calls, online, events, etc. With a Marketing plan in place a parts department can begin their journey to success. In Marketing 201 we will hone in on the skills it takes to separate your department and more specific ways of branding the Mopar name and your dealership! What a perfect time to brand the Mopar name and differentiate ourselves from the other vehicle manufacturers. We all heard the bankruptcy news on Thursday, which leads us to believe that all of our current and potential customers have heard the same. But that’s ok, because we as parts professionals now have the great responsibility of showing our customers that; yes we have had some tough times, but we are here to stay! If we can protrude our loyalty and dedication to our jobs in front of our customers, they will regain their faith and loyalty as well. How do we do this you ask…WE HAVE TO CHANGE THE WAY WE DO BUSINESS!!! We have to become customer focused, reaching out to them instead of waiting for them to come to us like it used to be. Many other changes must be made to differentiate our parts departments. I will provide a list below with examples that I hope we all can learn from and grow the business with. More importantly I hope we can change the perceptions and create an even larger following of loyal customers. 1. ANSWERING THE PHONE: How many times have you called a dealership parts department and the phone rang at least 5 times before any one picked up? Or maybe you have called and got someone’s voicemail? Or the classic, you call and someone does answer but this is what they say, “Parts”, or “Parts, hold”. As a customer on the other end are these good ways to enhance their perception of your dealership parts department? If we all took a step back and put ourselves in the customers shoes we may have a whole different approach to answering the phone and servicing the customer. We want to give the customer a world class experience each and every time they call us. The customer should be in awe of what he heard on the other end of the telephone and wanting to refer his friends to you and your parts department. So how can we do this and guarantee a lasting relationship with each customer that calls? First, we can all strive to answer the phone on the first ring. If all advisors in your department have this goal set then it’s easy to accomplish. Customers will take notice of the quick response to their call and feel that they are a priority of the service you offer. Secondly, create a greeting. “Mopar Parts, this is Claire, I can help you”. This greeting establishes that you are a parts department, what kind of parts you sell, who you are speaking with and that the person is eager to help you. Now we all can say this same greeting yet it can be extremely different. Voice inflection is key to any greeting, or conversation we have with our customers. Say it with a smile! This may be a little easier for the girls to do, as it may be weird for the guys but it is well worth it. (Continued on page 7)
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June 2009
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Calling and speaking to someone who sounds happy as opposed to a drab voice on the other end can make all the difference in who that customer will buy from. Some may come back and say that they have off days and that they may just not feel like smiling. I am here to tell you to leave the baggage at home. If you want to be a successful parts department with successful advisors then control your attitude, reach down and pull the boot straps up to bring that smile out and protrude it through the phone. Your customers will notice! Third, are we establishing a relationship while on the phone? Research says that most people will make a decision about you in the first 30 seconds of speaking with you. If we know this then it is imperative to bring our smiling “A” game to the phone conversation every time. If we do this then there is a higher chance that our wholesale or retail customer will call you back for that second need. So what should we do? Make conversation with the customer. Ask them about their day, their week, their weekend plans. Ask them if they have ever purchased from you before, if they have thank them for giving your department another opportunity. If this is their first experience with you, thank them for calling and reintroduce yourself. Ask the customer their name; people love to hear their own name and if you can say it several times during the conversation it makes them feel good and that you care. When getting off the phone with a customer thank them again for their business and tell them you appreciate their call. A lot of times we take for granted the business we have and do not show enough appreciation. By sincerely thanking a customer, it can reinforce your good will and dedication to servicing their needs. The last item that must be mentioned is asking for the sale. Many times, we as parts advisors are in such a hurry to move onto the next phone call or person standing in front of us that we give little thought to the simple words of, would you like to purchase that part? Day in and day out we all have retail customers calling us and price shopping us against the next dealer so how can you keep them your own? By asking them if you can put the part aside or in will call for them. Most advisors simply price out the part to the retail customer, and after the customer hears the price the conversation is over. All it takes is to simply ask for the sale! Customers do not want to shop around unless given a reason to and by not asking them the simple question it gives them every reason to go elsewhere. 2. Team up with local clubs and Participate in outside events: Mopar has a great following of vehicle specific clubs and most of them these days are easy to find online. By gathering a list of these local car clubs in your area you can make contact with club presidents and invite them to be a “club member” of your parts department. As a parts team establish “club member” benefits that you can present to the car club members as a perk of using your dealership. Some benefits could be; using your dealership to host their monthly meetings, helping them with fundraising activities, participating in car shows that the clubs put on, discounts on service and parts when they bring their cars into you and much more. Car Clubs are great to get involved with because they typically know so many other people with similar vehicle interests and when you provide them with great service they will refer you as a preferred dealership to use. Along with becoming actively involved with your local car clubs it is also very important to participate in outside events. Outside events may include: car shows, racing events, swap meets, 4wheeling excursions, charity fund raisers, etc. By having a team of individuals in your department that is dedicated to attending these events, it can establish a presence for your parts department that no one else in the market has. Not only does it create a familiarity for your parts department and people but also enhances brand loyalty. Ultimately we want to continue to keep the brand loyalty strong with our current customers and create awareness with potential customers. When working the outside events have your best people there. The staff on hand must be people who are willing and able to talk to potential customers walking by your booth. Create memorable give aways that have your dealership name and logo on them. For example, at many of the events we attended we created fake tattoos with our dealership name and the brand logo on them. People were lined up to be tattooed. Another thing to bring to the events is any of the Mopar gear that is available. Again this creates awareness to the brand and who you are representing. 3. Offering services no one else does: Does your parts department have something that sets you apart from the rest? If so then you are on the right track to success! If not, it’s never too late to develop a service or (Continued on page 8)
Mopar Masters Guild Magazine
June 2009
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offering that you can provide to your customers that separates you from the others. Like we talked about previously, it is imperative that we change the customer’s perceptions. We want all customers to have received the best service levels when they come to a Mopar dealership and to create a loyalty that no other manufacturer can duplicate. Some ideas of differentiating your dealership are: a. Mobile Programming: Independent repair shops are not as well equipped for every vehicle that comes through their door and rather than create a hostile environment of “the dealership is the only place to take it”, why not help your wholesale shops by providing them with a mobile programming service. Anytime they have a PCM, BCM, ECM or any module that they purchase from you and need to have programmed, you do it for them. Create a service where you train a parts employee to program these modules. They can set up scheduled times to go out to the wholesale shops to program these components that they have purchased from you. You can also charge a service fee for coming to their place of business for the programming. This also works great for keys as well. Retail customers who are stranded someplace in need of a new key and the only other option is to have the vehicle towed back to the dealership. Offer a mobile key programming service to them; you will establish a customer for life. b. Technical Support: Many customers call in for answers to car questions they are having trouble solving. They are calling us for a reason, they believe us to be the specialist; show them that we are. Team up with key personnel in the dealership service department that can be a contact person to answer any of these technical questions. Anytime a retail or wholesale customer has a question forward this call to this resource that can help guide them to the answer or can encourage them to bring the vehicle into the service department for further diagnosis. c. Training: Isn’t there always something new to learn? Whether it is a new vehicle that has come out, new service technique or a procedure on vehicle use there is someone out there that has a desire to learn. Many dealerships are equipped with a facility that enables them to host a training seminar on the latest and greatest from Mopar. Owners of independent repair facilities are always eager to provide more training to their employees. If we as a brand can establish more technical training and not be afraid of sharing our knowledge with others then we can create a loyalty with many more customers. Gather up some of the independent repair facilities in your area and invite them to a night of technical training lead by your Mopar Master techs. Teach them specific procedures for any of the Mopar vehicles, go over common problems that they may run across and most importantly establish a relationship with these shops. By doing so you can increase your referrals to the dealership as a whole, whether it be for parts, sales or service. Another great training experience is to teach new car owners about their vehicles. For example, new wrangler owners may love the thought of taking their vehicle off road and being adventurous with their new Jeep, but may have no clue about 4‐wheeling. Host a seminar for new Jeep owners on all the aspects of 4‐wheeling. Show them how to air down, teach them the terminology and point out the importance of trail safety. Maybe you could even organize a trail ride with some of your new Wrangler owners. On the outing would be a great time to establish relationships and again create the brand loyalty! I hope that from this article we can enhance our parts department service and create a larger brand following to provide us all with jobs for many years to come. As always any questions , comments or feedback please call me or email. I’d love to hear your input! Submitted by Claire Cummings Business Development Manager GO Chrysler Jeep West 888-382-4829 cummingsc1@autonation.com
Mopar Masters Guild Magazine
June 2009
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LearnStuffNow Announces the LSN Learning Network The Industry’s First Fixed-Operations Virtual Community WEST BLOOMFIELD, Michigan-March 30, 2009-LearnStuffNow today launched the all-new LSN Learning Network, a global community of parts and service management professionals intent upon sharing their collective knowledge, experience and insights. Members have a single purpose, to evolve and grow their businesses in ways that keep them ahead of the competition. LSN is a whole new business-networking model structured to overcome traditional limitations and inefficiencies. It's an Internet-based network linking its members together to form a global community with shared challenges and goals. It's member-driven; no corporate spin, no consultant sales pitches. The network is a subscription-based service for English speaking Parts and Service Managers and Fixed-Operations Directors working in automotive and light-duty truck dealerships around the world. Key features include: • • • • • • • •
Facilitated Management Webinars Management Webinar Archive Facilitated Mastermind Performance Groups Excel Spreadsheet Repository DMS Report Generator Repository Policies and Processes Repository LSN Blogs Community Forums
Learning and collaborating with others is easy and convenient. All a member needs is a PC, headphones with a built-in microphone, and a DSL or higher speed connection to the Internet. Instructor-lead Webinars are 90-minutes in duration and center around four themes: People, Products, Processes, and Profit. Voice-Over-Internet protocol allows participants to speak directly with their facilitator and other members attending the class. Members can take as many classes as they want as often as they want. Classes are archived and available 24/7/365. Mastermind Groups help members accomplished more in less time by working with others who share a common purpose. These interactive meetings are 3-hours in duration and also use Voice-Over-Internet protocol. Members can attend as many meetings as they want as often as they want. Since knowledge sharing is a core community value, more network time is devoted to Mastermind Groups than any other feature. To learn more about this community and how its members are helping each other stay ahead of their competition, visit them at http://LearnStuffNow.com
Mopar Masters Guild Magazine
June 2009
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SCRS Asks U.S. Attorney General to Investigate Antitrust Violations The Society of Collision Repair Specialists (SCRS) announced that it is joining the efforts of a number of collision repair organizations across the country in its request to the Department of Justice, and U.S. Attorney General Eric Holder, to investigate violations of federal antitrust laws by automobile insurance companies. "Stemming from the circulation of a petition designed for leaders of state associations, SCRS felt compelled to offer our support of the efforts underway," stated Barry Dorn, SCRS Chairman. In April, the Auto Body Association of Connecticut began circulating a petition requesting that Attorney General Holder investigate insurers, appraisers and direct repair shops that may be conspiring to depress labor rates, steer work, organize boycotts and commit other violations. "Our board believed that a letter from the only national trade association dedicated to representing the collision repairer which articulated similar perspectives as those outlined in the petition would help to highlight the importance of the issues raised," said Dorn. SCRS Executive Director Aaron Schulenburg added, "SCRS has long claimed that our members and affiliate associations are the heartbeat of our organization. We are very confident in our approach and support of this issue because direct correspondences with those members have confirmed the importance of such efforts, and we believe that grassroots efforts such as those that demonstrate the unified voice of the collision repairer are an imperative element in moving this industry forward." SCRS also pointed to a speech delivered on May 11 by Christine A. Varney, Assistant Attorney General of the Department of Justice Antitrust Division, who said the current administration is going to step up enforcement of antitrust law. The NY Times reported that Varney is hoping to encourage smaller companies in an array of industries to bring their complaints to the Justice Department about potentially improper business practices and that some of the biggest antitrust cases were initiated by complaints. (Source: www.collisionweek.com)
Mopar Masters Guild Magazine
June 2009
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SCRS applauds free OEM information availability Prosser, Wash.--The Society of Collision Repair Specialists (SCRS) has again extended its and the industry's appreciation to automakers for their increasing flow of collision repair information to all who need it. Chrysler LLC and General Motors Corp., as well as the OEM Roundtable, have made great strides in providing easy and organized access to technical collision repair information through www.oem1stop.com, SCRS said, adding that they went beyond normal customer service by providing their collision repair information free to everyone. Having access to the technical collision repair information is no longer a luxury but a necessity in today's collision repair facility, SCRS noted. It is often difficult to obtain that information without heavily investing in the ability to access it, the society said. "Chrysler and General Motors have continued to go above and beyond in their commitment to their customers and the collision industry at large," said Farzam Afshar, SCRS past chairman and CEO and co-founder of VeriFacts Automotive. "When an OEM provides the technical information the industry needs to repair the vehicles properly at no additional expense, it is an invaluable service to all SCRS members and collision repair centers around the country," Afshar said. "Today's vehicles and technologies don't afford the opportunity to perform repairs in the same manner we always had in previous years," said Gary Wano, SCRS Chairman and owner of G.W. and Son Auto Body Shop Inc. "We need access to the most current information to ensure that repairers are performing the most proper and safe repairs to our customer's vehicles," Wano said. "These companies and any organization within the industry that works together to expand the knowledge and ability to perform the most accurate repair possible should be wholeheartedly commended for their service to the industry." SCRS said it encourages all manufacturers to consider opportunities that would consistently provide free and accessible methods of obtaining technical information to the industry.
CT Association Petitions US Attorney General to Stop Antitrust Violations The Auto Body Association of Connecticut is launching a national petition to the United States Attorney General Eric H. Holder, Jr. requesting that his office investigate violations of federal antitrust laws by insurance companies serving the private passenger automobile industry. According to William Romaniello, III, Connecticut shop owner and legislative director for the Auto Body Association of Connecticut (ABAC), the petition is part of a national campaign to stop anticompetitive practices by insurers in the collision repair industry. The petition, being handled by a New Haven, Connecticut attorney, alleges that insurers, appraisers, and even some direct repair shops, are systematically conspiring to depress labor rates, steer work, organize boycotts and commit other violations. "‌insurer control over appraisers has become so commonplace and incestuous that many appraisers are literally on the payroll and employed by insurers," the petition states. The petition characterizes the collision repair market as "out of control" and says "consumer rights are being trampled." The petition asserts, "The repair industry and the millions of consumers serviced by it are suffering from the lack of legal enforcement." "Our attorney general was present at the Society of Collision Repair Specialists (SCRS) meeting this week in Hartford," Romaniello said. "He informed the room he was personally aware of the concerns facing our industry and let the attendees know he has had conversations with other attorneys general in regards to our concerns." The petition, designed for repairer association leaders to sign, is the first of two petition drives planned by the association. A second petition is being drawn up which will be for all participants within and around the collision repair industry, Romaniello explained.
Mopar Masters Guild Magazine
June 2009
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FORD MOTOR COMPANY AND LKQ CORPORATION SETTLE PATENT DISPUTES DEARBORN, MI and CHICAGO, IL
A settlement agreement was reached today between Ford Motor Company (NYSE: F) and LKQ Corporation (NASDAQ: LKQX) -- a distributor of new non-OE aftermarket, recycled salvage and remanufactured OE parts -- in litigation filed by Ford Motor Company to protect its design patents on genuine Ford collision parts. The settlement provides that LKQ will not challenge the validity and enforceability of Ford's design patents during the term of the agreement. The settlement ends two legal actions: The first involving replacement collision parts for Ford's F-150 pickup truck, which had advanced to the Federal Circuit Court of Appeals; the second involving replacement collision parts for the Ford Mustang, which was before the US International Trade Commission (ITC). Details about the agreement are confidential and will not be disclosed. "The settlement protects U.S. jobs and provides consumers with choices when repairing their vehicle," said Darryl Hazel, president, Ford Customer Service Division (FCSD). Hazel added that the settlement will benefit both companies and their customers in the following ways: • Ford's enormous Intellectual Property investment is protected. • Ford will continue its US investment, especially in Southeast Michigan, to design, engineer and produce genuine Ford collision parts for sale through its US dealer network. • LKQ will be the only distributor of non-Original Equipment aftermarket copies of genuine Ford collision parts protected by design patents. LKQ will pay Ford a royalty for each such part sold during the agreement’s term, which extends through September 30, 2011 subject to renewal upon mutual agreement of Ford and LKQ. • Competition in the market will continue by ensuring consumers have the right to choose between Original Equipment and non-OE aftermarket parts. • Ford and LKQ will work together to stop infringement of Ford's design patents. Hazel stressed that the settlement does not endorse the quality or use of non-Original Equipment aftermarket replacement parts sold by LKQ Corporation. FCSD and LKQ will continue to compete vigorously. "The agreement we reached is beneficial to both Ford and LKQ," said Joseph Holsten, President and Chief Executive Officer of LKQ. "As the sole distributor of new non-Original Equipment aftermarket parts protected by Ford design patents, we will have the sole right to sell these parts in the United States for all of Ford's models."
Mopar Masters Guild Magazine
June 2009
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SCRS Supports Distinction Between Estimate and Visual Inspection The Society of Collision Repair Specialists (SCRS) said the association is in full support of any effort that would require claimants to receive written disclosure that any damage assessment provided by the insurer is a visual inspection only and not a written estimate of repair costs, and that the actual cost of repair may differ from the insurer's damage assessment. "We believe this is in the best interest of the consumer because currently, the insurer damage assessments are based only on a 'visual inspection' of the damage, and in many cases a visual inspection alone cannot identify the full extent of actual damage and cost of the repair. Legislation currently pending in California is proposing just such a disclosure to consumers. With a hearing scheduled for April 22, California Assembly Bill 1179 would make a legal distinction between a repair estimate, defined as the document written by an automotive collision repair professional, and a damage assessment defined as the document written by an insurance appraiser. As evidenced by the following position statement issued by SCRS on Wednesday, the association is in clear support of this idea: "We contend that only the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and true cost of the vehicle damage repair. Both the auto body repair facility and the technician have the appropriate training and equipment that allow for a detailed analysis of the damage. By requisite of the training and investment in the equipment, it is the auto body repair shop who is able to disassemble or 'tear down' the vehicle, when applicable; thereby allowing the repair professionals to capture enough information to document a thorough written estimate of repair that reflects the true extent of the damage and the cost to repair the vehicle's damage. "SCRS believes a written disclosure to the insurance company's claimant that the insurance assessment is not a written estimate for repair, but is in fact a damage assessment that may not reflect the actual cost of the repair is a positive step forward for the consumer and the small businesses throughout the country that perform these types of repairs for the consumer. California Assembly Bill 1179 would, in addition, require insurers to disclose in writing to claimants that repair costs may in fact be higher than indicated by any damage assessment prepared by the insurer. The bill is assigned to the Assembly Committee on Insurance.
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June 2009
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Our Supporting Vendors Support those who support you
Mopar Masters Guild Magazine
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Our Supporting Vendors Support those who support you
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Five Simple Things You Can Do Every Day to Improve Your Bottom Line 1-Pick up the phone. One of your most powerful selling tools is sitting right there on your desk. Pick up the phone and make a new call to a new potential lead. Successful people who are in the top-ten percent of any organization will tell you that this habit is vital for finding new leads and turn them into customers. Not every call is going to result in a new sale. And sales are not the only reason why you need to pick up that phone every day. Talking to people builds your confidence and teaches you to fine-tune your listening skills. Both of those will help you go a long way to meeting your goals.
2-Go to a networking event. Whether it’s a sales seminar or a charity golf tournament, a networking
event is your opportunity to show your face in the community and to meet new people. To be clear, no one is there to buy anything, so NO PITCHING! People at networking events are most definitely keen on making new connections…and new connections can lead to some great relationships. Make time for events in your business calendar, and always be on the lookout for new ones by subscribing to email distribution lists for social events in your area or by joining business- or trade-related groups on social networking sites like Facebook or LinkedIn.
3-Send an email. The third thing you can do to hone your prospecting skills is to send an email to a pro-
spective customer to follow-up on an earlier discussion. It costs you nothing but a few minutes of your time and the mere act of reaching out to someone helps to cement the relationship you have with that person. Don’t fall victim to the “out of sight, out of mind” principle. Stay on your prospect’s radar. Remember that for every 30 days your prospects goes without hearing from you, they lose 10% of their potential value to you. E-mails should be very Brief and to the point
4-Rekindle... Maybe there’s a reason why that’s happened. A quick note or phone call is often all it
takes to rekindle that business relationship you once had with a client and that can result in some pretty exciting leads. Reviving lost customers can be a profitable way to generate business now. Talk with your coworkers at least once a week, find out who hasn’t called in a while, and call them!
5- Call a satisfied customer. Call a customer that you know who is really happy with your services. You can call just to say hello, you can share with them a business-related tip, a link to a great news article you just finished reading, or you can even take the opportunity to ask for a referral or a testimonial.
Satisfied customers-especially those that you have recently started to work with-have already seen the benefits of the product you sell or the service you provide. Staying in touch and remaining familiar face or voice is how you reinforce that positive experience.
Keep a list of your customer base and say thanks once in a while, a gift is always good, lunch ,movie tickets, whatever! Keep it simple. Submitted by Dan Murphy Retail/ Wholesale Parts Santan Honda Superstore of Chandler
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June 2009
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Mechanic charged in fatal brake failure By DANIEL MALLOY Pittsburgh Post-Gazette
Investigators first traced the cause of a fatal crash in Pittsburgh to the brakes, then to the fluid cap, then to the mechanic who left the cap unscrewed. Last week, the mechanic was arrested and charged with involuntary manslaughter, setting in motion what legal experts say is a remarkable case. "I have not heard of anything like that," said Duquesne Law School professor Bruce Antkowiak, a former federal prosecutor and criminal defense attorney. "It's a law school test case." Mark Fabian, 33, faces a preliminary hearing that prosecutors said will be scheduled for March 27 on charges that he caused the death of Colleen Visconti and injuries to three others. The Sept. 3 crash happened when the brakes failed on a minivan transporting Visconti and two special-needs students home from the Pioneer Education Center. The van crashed into a tree. Visconti, 53, died Sept. 12 of complications from the abdominal injuries she suffered in the crash. Students Walter Chancellor and Tyler Blazier were treated for head and facial injuries at Children's Hospital. According to a criminal complaint, driver Jennifer Logan, who fractured her leg in the wreck, told investigators that she noticed problems with the brakes on the Dodge Caravan earlier in the day. She took it to the Lawrenceville garage for A-1 Van Service, which owned the van. Fabian was assigned to work on the van, and he told officers from the collision investigative unit that he did a thorough job. But officers presented evidence to the contrary. According to the complaint, investigators found an obvious crack in the right rear brake and dust on both rear brakes, suggesting they had not been examined. The most crucial piece, though, was the master cylinder filling cap, which was not reattached after being unscrewed. Investigators determined that the cap's absence allowed brake fluid to drain from the car, rendering the brakes lifeless. Logan said that as she went down a hilly street, she pressed the pedal all the way down, but it had no effect. Investigators found a trail of brake fluid from the top of the hill to the crash site. Fabian insisted that he never opened the hood and wasn't responsible for the misplaced yellow cap. But investigator Michael McNamara noted in his report that when confronted with the physical evidence, Fabian became evasive and avoided eye contact. McNamara concluded that Fabian lied on a work order claiming he had inspected the vehicle and lied about the cylinder cap. "Mark Fabian's failure to place this vehicle out of service is the cause of this crash," McNamara wrote. To convict Fabian, prosecutors must prove that his actions -- or inactions -- caused the wreck, and those actions were "reckless or grossly negligent." Criminal defense attorney and former Allegheny County prosecutor Patrick Nightingale said that's a tough standard to meet. "Is the commonwealth going to prove beyond a reasonable doubt that this guy's mistake was so egregious that it merits criminal responsibility?" Nightingale said. "It's going to be very interesting and potentially very defensible." Pay attention to details!
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US Driving Declines Another 3.1 Billion Miles, Gas on the Rise Latest figures show more declines even before gas prices started recent rise. Total travel on all U.S. roads and streets in March was down 3.1 billion vehicle miles compared to March 2008 with total vehicle-miles traveled (VMT) for the month estimated to be 245.1 billion miles. Latest government figures from the U. S. Department of Transportation also show that cumulative travel for 2009 year to date is lagging 11.6 billion vehicle miles behind the levels hit at the same time last year. The cumulative estimate for the year is 683.7 billion vehicle miles of travel, a drop of 1.7 percent from 2008. On a regional basis, the new data show the South Atlantic and West regions to be the only areas to experience a decrease in overall driving while the other three regions actually experienced a slight increase. The biggest regional decline was recorded by the South Atlantic, at 3.4 percent fewer VMT compared to March 2008. On an individual state basis, Vermont, Montana and Virginia experienced the largest driving declines in March with percentage drops exceeding five percent. At the other end of the spectrum, Ohio, Kentucky and Massachusetts all saw driving increases exceeding three percent. According to the Energy Information Administration (EIA), the retail price of regular unleaded gasoline finished the month of March at $1.96 per gallon, up just four cents from the prior month and 30 cents below year ago prices. As recently as its latest report on May 12, the EIA was still predicting gasoline prices to average near $2.21 per gallon during this summer driving season (April through September). The EIA also lowered its estimate of average gasoline prices for the year to $2.12 per gallon in 2009, that's down 4 cents per gallon from April's projection. Last month, the EIA predicted that the price of regular unleaded gasoline would peak at $2.30 per gallon over the summer. Just as the Memorial Day weekend comes to a close, the AAA Daily Fuel Gauge Report is already showing average U.S. gasoline prices to be $2.42 for a gallon of regular unleaded.
THE GUILD MOTTO
“THE EXCHANGE OF INFORMATION BY LIKE SIZE DEALERS IN A NON COMPETITIVE ENVIRONMENT� This is the reason the Guild exists. The strength of our existence relies not on the voices of a select few, but on the combined knowledge of all. With this in mind, everyone should remember to become as pro-active as possible. The Guild is YOURS, be proud of it and be part of it!
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VINAL TECH HOSTS ANNUAL SkillsUSA COMPETITION Once again Vinal Technical School in Middletown, CT. was the host site for the Annual Skills USA Competition. Nine participants from HH Ellis Tech, Platt Tech and Kaynor Tech assembled to compete in areas of Auto Body repair consisting of metalworking, welding and painting along with the issues of safety involved with their work. Tom Vicino, owner of Superior Auto Body in Westbrrok, CT, served as Chairman for this event. Tom tells us that they are looking for participants to excel in the basics of auto body repair so that they will be able to join businesses as entry level techs. These students were told that they would someday be working on automobiles which have become “high-tech computers on wheels” which will offer the students a good future in our industry. Each student was assigned to repair a hail size dent in a fender, paint another portion of the fender and then move to the welding area to weld several metals. Don Cushing, Wholesale Marketing Manager from Bald Hill Chrysler Dodge once again contacted executives at the Mopar Parts Division of Chrysler and was able to get the fender panels that the students repaired and painted. Don tells us that he & his company are happy and honored to be involved with future auto body technicians! Along with Tom Vicino as judges in this year’s competition were: George Atwood, Atwood’s Auto Appearance in Deep River, Tyler Rook, Victor Auto Body Works, in Middletown, and Mark Wilkowski, Stanley’s Auto Body in Waterbury. Ray White, Auto Body Instructor from Vinal Tech was served as an overseer. A big “thank you” to these gentlemen who took time from their own busy schedules to attend and judge this great event! SkillsUSA is a national organization serving high school and college students and instructors who are enrolled in training programs in technical, skilled and services occupations, including health occupations. If you have any questions about Connecticut SkillsUSA, you can contact Heidi Balch, the state director, by telephone at: (860) 807-2138 or by e-mail at: Heidi.Balch@ct.gov.
Mopar Masters Guild Magazine
June 2009
2009 Mopar Masters Guild Committees President Vice President Treasurer Secretary Executive Committee
Brent Hoge
Larry Miller Chrysler Jeep Dodge
Steve Hofer Mike Mulkins
Park Chrysler Jeep Go Chrysler Jeep West
All of the above and: Gerry Oakes Paul Allred Rick Monteiro Marvin Windham Alan Yancey Roy Benner Dan Hutton
Baxter Chrysler Jeep Metrolina Chrysler Jeep Dodge Jack Powell Chrysler Dodge Don Drennen Motors Hayes Chrylser Dodge Jeep Allen Samuels Dodge Tom O’Brien Chrysler
Membership Committee Brent Christensen (West) Ole Olson (North) Doug Price (East) Robbie Jackson (South)
Ken Garff West Valley CJD Elk River Chrysler Security Dodge Chrysler Salsbury’s Dodge City
Vendor Chairmen
Paul Allred Gerry Oakes
Metrolina Chrysler Jeep Dodge Baxter Chrysler Jeep
Newsletter Chairs
Don Cushing Mike Mulkins Claire Cummings
Bald Hill Dodge Chrysler Go Chrysler Jeep West Go Chrysler Jeep West
Performance Group
Ole Olson
Elk River Chrysler
Finance Committee
Roy Benner Brent Hoge
Allen Samuels Dodge Larry Miller Chrysler Jeep Dodge
Reynolds & Reynolds
Paul Allred Tom Watson John Gilbert Rick Cutaia
Metrolina Chrysler Jeep Dodge Performance Chrysler Jeep Dodge Preston Chrysler Jeep Rick Hendrick Dodge
ADP
Roy Benner Steve Hofer Mike Mulkins Casey Brown
Allen Samuels Dodge Park Chrysler Jeep Go Chrysler Jeep West Allen Samuels Dodge Katy
Snap-On
Dan Hutton
Tom O’Brien Chrysler
OEConnection
Brent Hoge
Larry Miller Chrysler Jeep Dodge
Dealer Tire
Mike Mulkins Go Chrysler Jeep West Steve Hofer Park Chrysler Jeep (Dan, Brent, Mike and Steve are the Chairs for Snap-On, OEConnection and Dealer Tire)
Tracy Industries
Mike Mulkins Steve Hofer Brent Hoge Claire Cummings
NADA 2010 Planning
TBA
Website Chairmen
Marvin Windham Don Cushing
Go Chrysler Jeep West Park Chrysler Jeep Larry Miller Chrysler Jeep Dodge Go Chrysler Jeep West
Don Drennen Motors Bald Hill Dodge Chrysler
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