legislatures require the OEM to reimburse the dealership at retail rates for both parts and labor - but you need to stay on top of your annual factory filing. In short, dealers need to make sure they are aligning their most skilled technicians with those repairs that require the most skill. 2. Same-Year Compliance Jumped almost 3X This is the rate of repairs made on recalls that were announced within the same year. The 29.3% reflects the percentage of recalls that have been repaired at the time of the report publishing. This number is not static. Over time, as vehicles are repaired, this compliance rate increases. Because we are publishing this report about the same time every year, it gives us insight on how responsive dealers and consumers have been to recalls. We have never seen rates this high. It is clear that recall repairs were hot in 2020. Was it due to consumers not driving as much and could let go of their car for servicing? Were dealers more attentive to recall revenue opportunities? Was it the availability of mobile repair? Probably all the above. For dealers, the takeaway here is that consumers and your competition have taken notice. If you do not attend to these consumers, your competitors will. 1. Software and Electronics Dominate Today's modern vehicles are more similar to computers and smartphones than machines. While safety is at the heart of these technological innovations, electronic components go bad and software requires updates. The numbers of campaigns and affected vehicles are massive, so we look at this category as the origin of fundamental change in our industry. For dealers, the tool is a laptop - not as much a wrench. Embracing this will open up opportunities to hire tech-savvy technicians - most of whom will 36