Fixed Ops Journal - October 2019 - F10
FIXED OPS JOURNAL
SPECIAL REPORT
BREAKING
THE CHAINS
"
In service war, dealerships enlist transparency, technology, mobility
s new-vehicle sales flatten, dealerships must rely even more on
their fixed operations to stay in
the black. That makes their traditional competition with independent and chain-store service
providers all the more urgent.
Among the weapons dealers
are wielding in the war for service business: mobility, price
transparency and updated digital technology.
Fixed operations generated 12
percent of revenue at franchised dealerships
last year, but about half of their gross profits,
the National Automobile Dealers Association
reports. Dealerships capture one-third of service business in the United States - a nearly
PAGE 10
OCTOBER 2019
"I don't think it's a race to
the bottom to the lowest
price. I think it's the
fairest price, and that's
wrapped up in the value
perception."
"
A
RICK POPELY
foj@autonews.com
JIM ROCHE, vice president, Cox
Automotive
$400-billion-a-year industry that is poised to
grow as the average age of cars and trucks on
the road, now a record 11.8 years, continues to
increase.
New-car dealerships claim a bigger share of
service business than any other category of
provider. But looked at another way, two of every three service visits are to independent
shops, quick-lube chain stores, tire dealers
and other competitors. The percentage of
consumers who use dealerships for maintenance and repairs drops steeply as factory
warranties expire.
The most recent Cox Automotive Service Industry Study, released last year, reports that
dealerships' share of service business falls
from 56 percent of cars and trucks that are 2 to
5 years old to 29 percent for vehicles that are
older than 5 years. That is, nearly threefourths of the vehicles most likely to need customer-paid repairs and maintenance are serviced somewhere other than a dealership.
According to the Cox study, four of the top
see WAR, next page
Fixed Ops Journal - October 2019
Table of Contents for the Digital Edition of Fixed Ops Journal - October 2019
Contents
Fixed Ops Journal - October 2019 - Intro
Fixed Ops Journal - October 2019 - F1
Fixed Ops Journal - October 2019 - F2
Fixed Ops Journal - October 2019 - Contents
Fixed Ops Journal - October 2019 - F4
Fixed Ops Journal - October 2019 - F5
Fixed Ops Journal - October 2019 - F6
Fixed Ops Journal - October 2019 - F7
Fixed Ops Journal - October 2019 - F8
Fixed Ops Journal - October 2019 - F9
Fixed Ops Journal - October 2019 - F10
Fixed Ops Journal - October 2019 - F11
Fixed Ops Journal - October 2019 - F12
Fixed Ops Journal - October 2019 - F13
Fixed Ops Journal - October 2019 - F14
Fixed Ops Journal - October 2019 - F15
Fixed Ops Journal - October 2019 - F16
Fixed Ops Journal - October 2019 - F17
Fixed Ops Journal - October 2019 - F18
Fixed Ops Journal - October 2019 - F19
Fixed Ops Journal - October 2019 - F20
Fixed Ops Journal - October 2019 - F21
Fixed Ops Journal - October 2019 - F22
Fixed Ops Journal - October 2019 - F23
Fixed Ops Journal - October 2019 - F24
Fixed Ops Journal - October 2019 - F25
Fixed Ops Journal - October 2019 - F26
Fixed Ops Journal - October 2019 - F27
Fixed Ops Journal - October 2019 - F28
Fixed Ops Journal - October 2019 - F29
Fixed Ops Journal - October 2019 - F30
Fixed Ops Journal - October 2019 - F31
Fixed Ops Journal - October 2019 - F32
Fixed Ops Journal - October 2019 - F33
Fixed Ops Journal - October 2019 - F34
Fixed Ops Journal - October 2019 - F35
Fixed Ops Journal - October 2019 - F36
Fixed Ops Journal - October 2019 - F37
Fixed Ops Journal - October 2019 - F38
Fixed Ops Journal - October 2019 - F39
Fixed Ops Journal - October 2019 - F40
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