Digital Dealer - January 2019 - 38

D E A L E R OP S & M ANAGEM ENT: F ixe d Op er at i ons (Continued from pg. 37)

source of great liability. If
you make claims that you
have particular skills, and
you don't, that is a problem,
even if that person left your
organization. Notte stated
that there will have to be
some movement from electrical/mechanical techs in
service into body shops and
that only 3% of the shops
surveyed have the needed
diagnostic skills currently!
Sublet is another area of
potential liability for a shop.
APN's Clark told the group
that "you have to know your
vendors" and Tracy added
that your vendors must have
insurance with "your name
on it" and that a million dollars of coverage "is nothing
today."
Honda's Kaboos added
that being a certified shop
by Honda doesn't certify
to anyone that the vehicle
was fixed right, only that the
shop has the "ability to fix
it right." Documentation is
critical in proving you fixed
the vehicle correctly and
that includes pictures as the
repairs are completed.
Clark, who previously
owned a body shop, told
everyone that he was "held
responsible for $8 million
over OEM repairs that I
could not prove were done
- it only takes one incident.
If you don't know how to
do it, don't... it's ok to say
you are not qualified to do a
repair."
Notte chimed in that after
39 years of training, in the
last four years I-CAR has
been told that we must have
more education and to know
that the equipment is in-fact
at the shop and able to be
38

JANUARY 2019

used properly to certify it.
Rozint said there is a
need for a "quality cycle
showing repairs were done
right, including pictures
as the work progresses -
need metrics and KPIs to
document the process." He
noted that GM is asking
Mitchell to set up a program
showing that work was done
as instructed.
You must provide the
evidence through photos
showing what was wrong,
and related photos showing
that you repaired each item
correctly, stated Clark. That
may include photos of welds
and the welder used, a log
about what time particular
work was done to be completely accountable.
Tracy then asked
attendees if their job file
would save them or crucify
them? Clark added that his
documentation situation
"changed my life."
Olsen warned that pulling
then clearing codes is not
acceptable. A diagnostic
procedure must be followed
and that includes research
and thorough documentation. "Pulling codes is just a
beginning."
Kaboos cited an example
where airbag deployment
doesn't create a DTC which
lights a dash indicator. "It's
not a malfunction; a DTC is
a fault code, so you have to
go into a secondary report
to determine which sensors
were affected. If the battery
is disconnected, you have
to go through scanning. You
have to read about disconnecting a battery, which
requires more than just a
reconnect."

D I G I TA L D E A L E R . C O M

ADAS RATE

Regarding newer vehicles
needing more diagnostics
and recalibrations, Rozint
noted that outsourcing will
affect cycle times, while the
shop can be paid for this
work. Tracy added that this
type of work should be at a
higher rate and that ADAS
diagnostics should always
be a separate line item. Rozint said that manufacturers
are looking at some type of
record keeping showing every time a car was worked
on and that it is being put in
place.
OEMs need to change
their "wishy-washy language
regarding parts, make
them required and that the
warranty is removed if an
aftermarket part is used."
That's an alteration, according to Tracy.
Rozint stated that any
scan tool a shop purchases
should have "licensed software" only, and that there
are counterfeit scanners
being sold. Kaboos related
that Honda creates and
licenses software to the
aftermarket. Olsen stated
that the bottom line is if your
scan tool cannot retrieve
live OEM data stream information for the technician,
find one that can.
Tracy ended by claiming
that there needs to be "public backlash" to insurance
denying proper repairs.
"They will make their money
back jacking up the rates."
The air was thick throughout the session, and individuals lined up with questions,
which were answered in the
aforementioned paragraphs.
There's a lot on the line for

any collision center regarding repair liabilities, affiliated
with a dealer corporation or
not. I know my own consulting/teaching approach
will be a lot more aggressive
after this emersion, and I
hope I have spelled it out
clearly enough to get you
motivated too.
AAA HANDOUT

It was noted during the
session that AAA has new
information regarding ADAS
performance, and that this
material should be provided
to all customers. I requested this data from AAA and
received excellent explanations of the safety systems
and the related eye-opening
costs for their repairs. If you
would like to see what AAA
provides, email me at Ed@
NetProfitGroup.com and
put on the subject line "AAA
Handout Info Is for Me" so
I know what to send you.
These documents will make
great educational tools for
your staff and semi-informed
insurance estimators too.
ED KOVALCHICK has
traveled the world training and
consulting in fixed operations
with manufacturers and dealers. His extensive background
includes master technician status, independent shop owner,
dealer with all Chrysler & Nissan franchises, and founder of
Net Profit Inc., fixed operations
consulting and training. He is
a graduate of the University of
Louisiana and has served as
state president of the Automotive Service Councils, and
the advisory boards of Wyo
Tech and Virginia College. He
has been a regular columnist
and conference presenter with
Dealer Magazine and Digital
Dealer since 1995. EMAIL:
Ed@NetProfitGroup.com.
http://www.DIGITALDEALER.COM
Digital Dealer - January 2019

Table of Contents for the Digital Edition of Digital Dealer - January 2019
