Fixed Ops Journal - June 2018 - F12
FIXED OPS JOURNAL
Advanced vehicle technology could give
edge to dealership body shops in collision repair contest
CRASH PROGRAM
N
RICHARD TRUETT
rtruett@crain.com
ew-vehicle dealerships have
shown they not only can compete
with independent shops on sales
of products such as replacement
tires, but also can win significant
market share. The time may be
right for more dealerships to
move into collision repair.
The growing complexity of cars
and trucks, with advanced safety
electronics and lightweight materials, has owners increasingly
looking to franchised dealerships to fix their vehicles. These dealerships
offer trained service technicians who use factory-certified replacement parts and factory-specified tools. Nearly two of every five
franchised dealerships operate collision repair centers, the National Automobile Dealers
Association reports.
According to the Auto Care Association, a
trade group that represents aftermarket service providers, almost half of consumers take
their collision-damaged vehicles to franchised dealerships for repairs when the vehi-
PAGE 12
JUNE 2018
Body of evidence
Trends that affect body shop profitability
From 2010-16, the U.S. auto industry
logged 7 straight years of vehicle
sales increases. New-vehicle
dealerships have their best shot at
fixing collision-damaged vehicles
when they are newer.
An increase in the number of miles
driven - partly resulting from cheap
fuel - means more accidents. Since
2014, the number of property
damage claims paid by auto insurers
has risen. In 2016, a property claim
was filed for 3.6 of every 100
registered vehicles.
The number of U.S. collision repair
centers declined from 45,889 in
2003 to 41,047 in 2016. More
independent shops (2,531) closed
than dealership centers (2,311).
Source: Auto Care Factbook 2018, Auto Care
Association
cle is two years old or less. But after three
years, customers start drifting to large national body shop companies and local mom-andpop shops.
The revenue dealers lose to the competition
is staggering. The U.S. collision repair industry
booked sales of $45.8 billion in 2016, the most
recent year for which figures are available, the
association says. Franchised new-vehicle
dealerships captured only about 15 percent of
that business, roughly $6.9 billion.
But dealers are poised to win a greater share
of collision repair business, industry experts
say.
"As the cars get more sophisticated, the
owner has a greater desire to bring it back to
the place it came from," says Clint Marlow,
Allstate Insurance's claims director in innovation and customer experience.
Advantage: Dealers
Advanced electronics such as radar, lidar
and camera-based vision systems are the
building blocks of autonomous vehicles. A
new-vehicle chassis is getting more aluminum, cast parts, ultra-high-strength steel,
magnesium and similar materials than before.
Table of Contents for the Digital Edition of Fixed Ops Journal - June 2018
Contents
Fixed Ops Journal - June 2018 - Intro
Fixed Ops Journal - June 2018 - F1
Fixed Ops Journal - June 2018 - F2
Fixed Ops Journal - June 2018 - Contents
Fixed Ops Journal - June 2018 - F4
Fixed Ops Journal - June 2018 - F5
Fixed Ops Journal - June 2018 - F6
Fixed Ops Journal - June 2018 - F7
Fixed Ops Journal - June 2018 - F8
Fixed Ops Journal - June 2018 - F9
Fixed Ops Journal - June 2018 - F10
Fixed Ops Journal - June 2018 - F11
Fixed Ops Journal - June 2018 - F12
Fixed Ops Journal - June 2018 - F13
Fixed Ops Journal - June 2018 - F14
Fixed Ops Journal - June 2018 - F15
Fixed Ops Journal - June 2018 - F16
Fixed Ops Journal - June 2018 - F17
Fixed Ops Journal - June 2018 - F18
Fixed Ops Journal - June 2018 - F19
Fixed Ops Journal - June 2018 - F20
Fixed Ops Journal - June 2018 - F21
Fixed Ops Journal - June 2018 - F22
Fixed Ops Journal - June 2018 - F23
Fixed Ops Journal - June 2018 - F24
Fixed Ops Journal - June 2018 - F25
Fixed Ops Journal - June 2018 - F26
Fixed Ops Journal - June 2018 - F27
Fixed Ops Journal - June 2018 - F28
Fixed Ops Journal - June 2018 - F29
Fixed Ops Journal - June 2018 - F30
Fixed Ops Journal - June 2018 - F31
Fixed Ops Journal - June 2018 - F32
Fixed Ops Journal - June 2018 - F33
Fixed Ops Journal - June 2018 - F34
Fixed Ops Journal - June 2018 - F35
Fixed Ops Journal - June 2018 - F36
Fixed Ops Journal - June 2018 - F37
Fixed Ops Journal - June 2018 - F38
Fixed Ops Journal - June 2018 - F39
Fixed Ops Journal - June 2018 - F40
Fixed Ops Journal - June 2018 - F41
Fixed Ops Journal - June 2018 - F42
Fixed Ops Journal - June 2018 - F43
Fixed Ops Journal - June 2018 - F44
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