Fixed Ops Journal - December 2017 - 15

C O V E R

S T O R Y

ELECTRICAL

STORM

The next generation of low-maintenance EVs is likely to bring
about the greatest changes to dealership fixed ops in decades

E

RICHARD TRUETT
rtruett@crain.com

lectric vehicles account for just six of every
1,000 new cars and trucks sold in the United
States. But it won't stay that way much longer: In 2017, hardly a month passed without a
major global automaker announcing plans to
boost its production of EVs.
If the factories follow through, the number
of nameplates of battery-powered vehicles in
the United States will increase from 14 this year
to 85 by 2025, according to WardsAuto. And by
2030, depending on the projection, battery electric vehicles will
represent any- MORE COVERAGE
where from 10 percent to half
 Some skeptics don't
of new-vehicle sales.
buy the hype of EVs
The potential for EVs to altaking over the world
ter the service business modI PAGE 18 I
el of franchised new-vehicle
dealerships is huge. Experts  Leaf owners'
say everything in the back of experiences may
the store - vehicle repair, forecast the future of
parts, body shops, service EV service I PAGE 20 I
customer retention - will be
disrupted if the coming armada of electric vehicles,
which require less maintenance than traditional cars
and trucks, sells in high volume.
And the time for dealers and fixed operations managers to start preparing for that basic change, industry executives warn, is now.
"With EVs, there will be less dollars available to the
dealer," says Wally Burchfield, vice president of U.S. aftersales for Nissan North America.
Service revenue from regular maintenance of wear
items on EVs would amount to "probably two-thirds to
three-quarters of what an internal-combustion engine

As more new-vehicle buyers opt for EVs, the shift from
gasoline-powered vehicles will affect service shops.

vehicle would be," Burchfield told Fixed Ops Journal.
Nissan isn't the only manufacturer to prepare for the
changes that electric vehicles will bring. Volkswagen says
it is talking to its dealers worldwide about how to keep
them profitable as the automaker ramps up its production of EVs.
How will these changes affect operations in dealership
service departments?
Required service will be greatly reduced for electric vehicles: no oil and filter to change, no fluids in the radiator
to check or flush, no transmission to service, no drive
belts to replace, no air or fuel filters or spark plugs to
change, and regenerative braking systems indefinitely
extending the life of brake pads and rotors.
This year, the consulting firm UBS Research tore down
two similar-sized hatchbacks, a Chevrolet Bolt and a VW
Golf. UBS counted 24 moving parts in the Bolt, compared
with 149 in the Golf.
UBS analysts estimate that aftersales revenue for the
see STORM, Page 16

DECEMBER 2017

PAGE 15



Table of Contents for the Digital Edition of Fixed Ops Journal - December 2017

Fixed Ops Journal - December 2017
Contents
Editor’s Letter
Service Counter
Legal Lane
Big verdict
Ho-ho-ho
Battery charge
Price is right
Tomorrow’s techs
Selling accessories
SEMA dreams
To the rescue
Profit Builder
Richard Truett
On the line
Letters
Real time
Feedback
After hours
Efficiency expert
Longer lasting
Shop Talk
Five Minutes With
Fixed in Time
Fixed Ops Journal - December 2017 - Intro
Fixed Ops Journal - December 2017 - Fixed Ops Journal - December 2017
Fixed Ops Journal - December 2017 - Cover2
Fixed Ops Journal - December 2017 - Contents
Fixed Ops Journal - December 2017 - Editor’s Letter
Fixed Ops Journal - December 2017 - 5
Fixed Ops Journal - December 2017 - Service Counter
Fixed Ops Journal - December 2017 - 7
Fixed Ops Journal - December 2017 - Legal Lane
Fixed Ops Journal - December 2017 - Big verdict
Fixed Ops Journal - December 2017 - 10
Fixed Ops Journal - December 2017 - 11
Fixed Ops Journal - December 2017 - Ho-ho-ho
Fixed Ops Journal - December 2017 - 13
Fixed Ops Journal - December 2017 - Battery charge
Fixed Ops Journal - December 2017 - 15
Fixed Ops Journal - December 2017 - 16
Fixed Ops Journal - December 2017 - 17
Fixed Ops Journal - December 2017 - 18
Fixed Ops Journal - December 2017 - 19
Fixed Ops Journal - December 2017 - 20
Fixed Ops Journal - December 2017 - 21
Fixed Ops Journal - December 2017 - Price is right
Fixed Ops Journal - December 2017 - 23
Fixed Ops Journal - December 2017 - Tomorrow’s techs
Fixed Ops Journal - December 2017 - 25
Fixed Ops Journal - December 2017 - 26
Fixed Ops Journal - December 2017 - 27
Fixed Ops Journal - December 2017 - Selling accessories
Fixed Ops Journal - December 2017 - 29
Fixed Ops Journal - December 2017 - SEMA dreams
Fixed Ops Journal - December 2017 - 31
Fixed Ops Journal - December 2017 - To the rescue
Fixed Ops Journal - December 2017 - 33
Fixed Ops Journal - December 2017 - Profit Builder
Fixed Ops Journal - December 2017 - Richard Truett
Fixed Ops Journal - December 2017 - On the line
Fixed Ops Journal - December 2017 - Letters
Fixed Ops Journal - December 2017 - Real time
Fixed Ops Journal - December 2017 - 39
Fixed Ops Journal - December 2017 - Feedback
Fixed Ops Journal - December 2017 - After hours
Fixed Ops Journal - December 2017 - Efficiency expert
Fixed Ops Journal - December 2017 - Longer lasting
Fixed Ops Journal - December 2017 - Shop Talk
Fixed Ops Journal - December 2017 - Five Minutes With
Fixed Ops Journal - December 2017 - Fixed in Time
Fixed Ops Journal - December 2017 - Cover3
Fixed Ops Journal - December 2017 - Cover4
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