Fixed Ops Magazine - 2022 Vol19 02 - 60

ADMINISTRATION DEPARTMENT BY DAVID BOYLE
A
CRYSTAL
BALL
... to view the future of Parts and Service
W
hat does the future of auto service look
like? There is a lot of speculation about
how electric vehicles, autonomous vehicles,
ride-sharing platforms, direct-selling models like Tesla,
and more will affect the retail auto sector. Personally, I
think it is safe to say that the next decade is going to
be driven by change and I also believe it will be change
like we have never seen before. What I find particularly
concerning, however, is that we are not talking enough
about the impact these changes will have on parts and
service. And because dealers rely heavily on fixed ops
for their profitability, this conversation needs to come
to the forefront, and quickly.
CHANGES UP TO THIS POINT
Those in the business for any length
of time have experienced the shift
from the glory days-where shops
were filled with warranty work-to
now, where shops mostly see scheduled
maintenance and light repairs.
This was a long, tough transition for
60
most dealers. But what we are seeing today will end
up being even more difficult. Cost of ownership and
vehicle quality have continued to erode maintenance
to a fraction of what it was. And while some OEMs have
seen a slight (albeit inconsistent) uptick in warranty
work (often due to recalls), we should know this is a
scenario that won't continue long term.
WHAT'S NEXT?
Cost of ownership and
vehicle quality have
continued to erode
maintenance to a
fraction of what it was.
What we all need to be asking is, " What's next? " Scheduled
maintenance is going to continue to go away and
the cause will not be electric vehicles.
For those of you who think that
EVs will not be a major contributor
to service revenue in your lifetime,
you are probably right. However,
that does not mean the transition
will not spell trouble for your service
department. Cost of ownership is at
the forefront of what is driving the
reduction in maintenance work. I believe
we will see a day (before the

Fixed Ops Magazine - 2022 Vol19 02

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2022 Vol19 02

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