Fixed Ops Journal - December 2020 - F10

FIXED OPS JOURNAL

TAKING CHARGE

Strategies to keep BEVs from zapping your service lane revenue

E

Richard Truett
rtruett@crain.com

d Roberts, fixed ops director at
Bozard Ford-Lincoln in St. Augustine, Fla., has been thinking
a lot lately about how Ford's
first three battery-electric vehicles - the Mustang Mach-E
arriving this month, the E-Transit van coming
late next year and the battery-powered F-150
planned for 2022 - will start to upend his
store's fixed operations business model.
Roberts expects visits to his service department by owners of those battery-electric vehicles and the ones that come after will drop by
50 percent over those customers who drive
traditional gasoline- or diesel-engine vehicles. Not only that, but the dollar per repair
order for EVs also is going to plunge.

PAGE 10

DECEMBER 2020

" We do think about it. We have to prepare
ourselves for it, " says Bozard's Ed Roberts.

A recent study by consulting firm McKinsey
& Co. estimates repair tickets for BEVs will
shrink between 40 and 50 percent. Some of
the reasons for the lower revenue per ticket
include: BEV brake pads could last 100,000
miles or more; BEVs don't require oil changes;
and over-the-air software upgrades will keep
customers out of the service lane.
Roberts figures his technicians might service the average BEV just once a year. Figuring
out how to continue building revenue in this
new reality has been top of mind for him.
" We do think about it. We have to prepare
ourselves for it, " he told Fixed Ops Journal.
At LaFontaine Automotive Group, which operates nearly two dozen stores in Michigan, service directors say they are not worried - yet -
about BEVs lowering fixed ops revenues. But
that doesn't mean LaFontaine is sitting idly by.



Fixed Ops Journal - December 2020

Table of Contents for the Digital Edition of Fixed Ops Journal - December 2020

Contents
Fixed Ops Journal - December 2020 - Intro
Fixed Ops Journal - December 2020 - F1
Fixed Ops Journal - December 2020 - F2
Fixed Ops Journal - December 2020 - Contents
Fixed Ops Journal - December 2020 - F4
Fixed Ops Journal - December 2020 - F5
Fixed Ops Journal - December 2020 - F6
Fixed Ops Journal - December 2020 - F7
Fixed Ops Journal - December 2020 - F8
Fixed Ops Journal - December 2020 - F9
Fixed Ops Journal - December 2020 - F10
Fixed Ops Journal - December 2020 - F11
Fixed Ops Journal - December 2020 - F12
Fixed Ops Journal - December 2020 - F13
Fixed Ops Journal - December 2020 - F14
Fixed Ops Journal - December 2020 - F15
Fixed Ops Journal - December 2020 - F16
Fixed Ops Journal - December 2020 - F17
Fixed Ops Journal - December 2020 - F18
Fixed Ops Journal - December 2020 - F19
Fixed Ops Journal - December 2020 - F20
Fixed Ops Journal - December 2020 - F21
Fixed Ops Journal - December 2020 - F22
Fixed Ops Journal - December 2020 - F23
Fixed Ops Journal - December 2020 - F24
Fixed Ops Journal - December 2020 - F25
Fixed Ops Journal - December 2020 - F26
Fixed Ops Journal - December 2020 - F27
Fixed Ops Journal - December 2020 - F28
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