Fixed Ops Journal - August 2016 - (Page 59)

FIXED OPS JOURNAL 5 Interviews by Richard Truett minutes with ... ■ Eric Johnston, vice president of customer service, Jaguar Land Rover North America On how this year's expected increase in parts and service volume - because of the new Jaguar F-Pace crossover and XE sports sedan - is changing JLR's fixed ops business We've done a lot to prepare for this. In the last two years, we started renovating our training centers. We completed one in California and we are about to start one here in Mahwah, N.J. We don't have a problem with [parts] capacity. We do have some flexible space where it is easy to expand that side of the business. We still run separate networks for Jaguar and Land Rover. The next step is increased technician training. On helping dealers cope For retailers, we conducted capacity studies last year. We calculated how many hours they need to be open. For the most part, we want our retailers to have extended and Saturday hours. That adds a lot of capacity. We basically want anyone to be able to get a Johnston service appointment at a Land Rover store within three days and have a loaner car available if they have to leave their vehicle overnight. On improving customer experience We mystery-shop all our stores . We call and ask how long it takes to get an appointment. Was the call noise-free? Was it answered within a couple of rings? We are also concerned about pricing, so we'll call our dealers and competitive dealers and see if we are in line. On catering to owners of classic and collectible Jaguars and Land Rovers We are expanding our classic business. We have a lot of part numbers in our system now, and we have some retailers we supply who are very big into this. Our goal is to expand it so more retailers have that opportunity. It's a big business for both brands. Our goal is to support that business. We keep track of parts we can't supply. We have a way to contact old suppliers, and we make a decision to restart production for a small batch of parts to satisfy demand. On Ford moving the F-150 to aluminum construction and the increasing number of body shops that can repair aluminum-bodied vehicles It's not really a factor. They're still body-on-frame vehicles, and the method of attaching the panels to the vehicles remains the same. We are dealing with a different set of specialists. The body shops certified by us tend to be shared with other models of aluminum vehicles made by other European companies. And they don't usually repair F-150s. Although the [manufacturing] technology is the same, it doesn't have a big impact on us. ■ ■ Frank Ferrara, vice president of consumer satisfaction, Hyundai Motor America On the biggest challenge for fixed ops during Hyundai's decadelong growth spurt It's finding the right people, and training and retaining them. The job of the service manager or the service adviser has gotten a lot more complicated over the last 10 years. You have vehicle technology you need to understand. You add tablets to the service drive, more digital inspection equipment, loaner car programs, Wi-Fi, cybersecurity issues, etc. These are things that 10 years ago didn't exist. It's gotten a lot more complicated for technicians, advisers and managers, and we don't have a lot of people wanting to come into this business. On dealers' No. 1 unmet need in improving customer retention The biggest issue is trying to get three- to fiveyear owners back in. Oftentimes our dealers are price competitive - we could do better - but the customer has a perception that the afterFerrara market is cheaper. The second part of the problem is cost management. We put a lot on the dealer in terms of facility and training of personnel and topflight equipment. Over the last few years we've talked to dealers about getting into a multishift [service] operation, two or three shifts and to be open Saturdays and Sundays so you can spread the overhead cost. The other piece of driving cost down is automation. Tablets help you sell more. They help the customer feel better about the visit. It demonstrates technology and some of the benefits the dealer can offer, and so we are on a big push to do that. On providing genuine factory replacement parts for vehicles more than 10 years old We will provide parts as long as there is demand. In some cases there is legislation that forces us to have parts available. It gets to be a bit of a challenge, with complexity increasing and we have a broader product lineup. But we are absolutely committed to doing that. Our parts partner is Hyundai Mobis. They are our third-party parts supply company. They are adding parts warehouses around the country to keep up with demand. On the challenges of moving into the luxury market with the new Genesis brand. Luxury customers' expectations are very high. We see that with the Equus, which we've been selling for three years. Our Genesis lineup has attracted people from Lexus and BMW. We are putting in place lots of customer-handling requirements for the dealers, lots of special stuff. The new G80 Genesis sedan will be sold by more than 800 dealers. Executing that luxury experience is a challenge. ■ AUGUST 2016 PAGE 59

Table of Contents for the Digital Edition of Fixed Ops Journal - August 2016

Fixed Ops Journal - August 2016
Contents
Editor’s Letter
Service Counter
Legal Lane
Treading confidently
'Tis the season
Profit Builder
Valet service
Richard Truett
OEConnection
Changing oil:
Photo story
Trade-off
Toyota way
Feedback
Lone star
Airbag recall
Forging links
Top 50
5 Minutes With
Shop Talk
Fixed in Time

Fixed Ops Journal - August 2016