Fixed Ops Journal - June 2018 - F41
FIXED OPS JOURNAL
Compiled by Anisa Jibrell
Send suggestions for future
Shop Talks to foj@autonews.com
SHOP TALK
We asked fixed ops managers: Generally, is it better for a service department
to operate its own body shop or outsource its collision repair work? Why?
"It is best to outsource. Dealing with manufacturers
and their policies, it is getting tougher to stay
profitable as a body shop. The manufacturer requires
expensive, specific tooling for aluminum vehicles to be
a certified body shop. Insurance companies are
starting to mandate strong pricing policies for parts
and labor to cut costs. Probably worst of all is the slow
paying by the insurance companies that forces body
shops to carry large accounts receivable balances. We are noticing at
our dealerships that insurance companies are pushing a lot more
[damaged] aluminum vehicles to a total loss due to the cost of parts."
"It's good to have your own body shop inhouse. You have control over the quality of
work and employees and cost of labor and
training. Having the body shop in-house can
help cover your fixed expenses, which will
increase your fixed absorption rate. If you're
in a dealer group with other stores, you can
pretty much internalize all repairs at one
location. You can also market aggressively
based on the size of your group. It could be
a really good profit center, as opposed to
having to create liability by outsourcing your
repairs. A well-run body shop in a dealer
environment can be very profitable and can
also help absorb a lot of the expenses the
dealership has."
DANIEL NEGALHA
Fixed operations director
McGovern Automotive Group, Brockton, Mass.
RALPH RODRIGUEZ
Fixed ops director
Pendragon North America, Irvine, Calif.
"If it's
outsourced or
an outside shop,
they're going to
send me a bill
every time a car
shows up at
their doorstep.
... Because we have intercompany
relationships with the body shop, if
we need a favor, we take it over
there. If [a vehicle] just needs a
buff or something like that, they're
more apt to help us out."
MARK LESTICO
Director of fixed operations
Cerritos Acura, Cerritos, Calif.
"By repairing the cars here,
you have better control over
the quality, which results in
better customer satisfaction
and retention. A big factor in
running a body shop is to
make sure that you repair
the vehicle using the
manufacturer's required or
recommended procedures,
so we can monitor that. If
you give that vehicle to XYZ
Auto Body down the street,
you don't know how he's
fixed it, and ultimately, you're
putting your name on that
car. When people sublet body
work, they're still liable."
JIM KOWALAK
Director of operations
Daytona Toyota, DeLand Kia,
Palm Coast Ford (Fla.)
JUNE 2018
PAGE 41
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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