Fixed Ops

Investment in time, training and resources regarding the latest trends in EV and hybrid vehicle development are the main barriers to entry for shop owners. But the tools to complete relevant training and the actual products needed to learn more...

“My guess is that (EVs) might not need as frequent routine service, but when it is needed it will cost more,” says auto analyst Maryann Keller.

Ohio dealer Rick Ricart predicts auto retailing’s “next revolution” will occur in fixed operations.

“Only 34% of consumers are always satisfied with their auto-service provider,” says Upswell’s Nelson Rodenmayer.

Dealership service-bay revenues are down as people work from home and venture out less often. But as vaccines are administered and people become more comfortable traveling, dealership groups are optimistic about better business in the second half.

The pandemic has accelerated many changes. Some customer-centric services, such as vehicle “concierge” or pick-up and delivery, went from a convenience to the price of admission for most fixed operations.

Vehicle service work provides on average 48% of a dealership’s gross profit, says Juan Flores of Kelley Blue Book.

Despite record 2020 dealership profits from car sales and Finance & Insurance products, there’s less demand for parts and service because COVID-19 has reduced wear and tear on vehicles, Lithia, Asbury and Group 1 report.

RevolutionParts’ annual Parts eCommerce Report says parts sales processed through the company's online platform grew 28% in 2020, from $328 million to $421 million.

Panelists say dealers are offering what’s now a familiar menu of pickup and delivery and sanitizing customer vehicles, as well as new approaches where dealers get more value from customer data.