ASA Collision Volunteer Leaders Discuss State Farm Pilot with Affiliated Associations

The Automotive Service Association’s (ASA) volunteer leadership, staff and affiliated associations from around the United States continue to share information, comments and concerns regarding the State Farm pilot involving an electronic parts ordering application. The pilot is being conducted in Tucson, Ariz.; Grand Rapids, Mich. (see related adjacent article); Charlotte, N.C.; and Birmingham, Ala.

‘Go-To’ Resource for State Farm Pilot News

All ASA announcements and documents regarding the State Farm pilot are conveniently located on the association’s website, www.ASAshop.org. Click on “Tools & Resources” (in the blue menu bar on the home page), then “State Farm Pilot Program.” (The site is best viewed using the Firefox browser.)

During a conference call held June 12, ASA’s affiliated groups in the Tucson (ASA-Arizona) and Grand Rapids (ASA-Michigan) markets provided comments regarding the direct impact the pilot has had on its members. Other ASA-affiliated associations expressed concerns during the call, asked for clarifications and provided the ASA volunteer collision leadership and staff with recommendations for future actions as ASA continues to professionally advocate on behalf of collision repairers nationwide.

“ASA is fortunate to have grassroots connections throughout the United States through the network of its affiliated associations. Holding nationwide team calls among ASA staff and our volunteer leaders broadens the reach of this conversation and ensures our members’ voices are being heard,” said Denise Caspersen, ASA Collision Division manager.

Congratulations! Congratulations to Sparks Car Care for being awarded the AAA Top Shop Award. Merle Pfeifer, owner of Sparks Car Care, an ASA member-shop in Federal Way, Wash., and Teri Smith, employee, display their award.

Pilot program concerns presented by ASA:

• Reduction in collision repair facility profits based on:
  • Reduction in manufacturer suggested retail price (MSRP) for parts
  • Increased administrative costs
  • Increased cycle time delays
• Increased administrative time based on:
  • Suppliers on pilot report increased administrative time
  • Repairers on pilot report increased administrative time
  • Increased “re-keying” of estimates based on lack of system integration
• Overall concern of the influence insurance agreements have on collision repair processes
• Electronic application will have a negative impact on local repairer-supplier relationships
• The “Price-Perfect” price listing of recycled parts continues to complicate the parts selection process and hinder the efficiency of the repair
• Potential expansion of the “parts search” market beyond the local repairer-recommended suppliers
• Potential expansion of this type of application being applied to other hard products necessary for a proper collision repair
• Cost of the application to the supplier will be passed on to the repairer and the consumer
• Shops in pilot areas expressed a lack of training and understanding of the application
• Pilot shops also found a lack of responsiveness from State Farm and PartsTrader to questions from repairers and suppliers participating in the pilot
• Lack of information regarding how this will benefit the consumer
• Concern of the overall legality of the program

Celebrating 30 Years! Congratulations to S&S Service Center Inc., an ASA member-shop, in Kansas City, Mo., for celebrating 30 years in business! The shop is celebrating the milestone with various promotions, including a trivia contest. Owned by Jerry Holcom, president, the shop prides itself in its motto: “Modern Automotive Repair – Old Fashioned Service.”

ASA will continue to address the piloting of the State Farm electronic parts ordering application on behalf of the ASA membership.

ASA-Michigan Members, Vendors Discuss State Farm Pilot

ASA members and related collision industry vendors in the Michigan area were invited recently by ASA-Michigan, an ASA-affiliated association, to attend a “facts to date” presentation and member discussion centering around the State Farm electronic parts ordering application.

Organized by Ray Fisher, AAM, president of ASA-Michigan, the June 28 meeting was held in Lansing, Mich., at the Lansing Community College. ASA-Michigan provided the forum to present the facts to date about the pilot, along with clear statements of concern from both repairers and suppliers in the Michigan area and around the United States.

“Anytime there is a ‘game-changing’ situation – as this pilot is for the industry – it is imperative that we inform the industry with factual information, allow time to digest that information and work together to provide solutions, on behalf of the membership and potential members. During these challenging economic times we must focus on helping repair facilities generate revenue,” said Fisher.

During the four-hour meeting, Denise Caspersen, ASA collision division manager, spoke about the pilot with an audience of nearly 100 pre-registered ASA members, vehicle manufacturers, staff representatives of the Michigan Auto Dealers Association and vendors. Audience members were encouraged to express their concerns, ask for clarifications to specific questions and provide additional questions to be supplied to State Farm and PartsTrader, the company providing the electronic parts ordering application.

ASA reminds members to share their concerns, comments and experiences regarding the pilot program by contacting Denise Caspersen at denisec@ASAshop.org, or by phone at (800) ASA-SHOP, ext. 106, or (817) 514-2906 (direct).

	Semiannual Retreat ASA-Washington members recently met at the Semiahmoo Resort in Blaine, Wash., for their semiannual retreat and management conference. During the three-day event, members enjoyed educational sessions (top), networking and recreational activities, including golf (bottom).