Fixed Ops Journal - December 2020 - F6

FIXED OPS JOURNAL

SERVICE COUNTER
THE PANDEMIC'S TOLL
There were nearly 126 million repair orders
at U.S. new-car dealerships during the first
half of 2020, resulting in total parts and
service sales of $51.94 billion - down
from $64.62 billion a year earlier. Here are
some other figures from the midyear 2020
NADA Data financial profile and the change
from the same period in 2019.

TOTAL RECALL
The number of light vehicles recalled in 2019 - excluding those
called back because of faulty Takata airbags - grew to 28 million,
up 6 million vehicles from the previous year. The number of
individual recall campaigns for light vehicles also increased, to a
record 317, according to the 2020 Automotive Defect & Recall
Report by consulting firm Stout. Other highlights:

 Body blows

As measured by percentage decline in service labor sales, body
shop business suffered the most. Dollars in billions.
Customer mechanical .......$9.14
-15%
Warranty ..........................$4.73
-18%
Internal ............................$3.73
-19%
Customer body .................$1.73
-22%
Sublet .............................$1.62
-20%
Other ...............................$1.76
-22%
Total ..............................$22.71
-18%

 Wholesale declines

As measured by percentage decline in service parts sales,
wholesale and body shop business suffered the most. Dollars in
billions.
Wholesale ........................$8.28
-19%
Customer mechanical .......$7.95
-16%
Warranty ..........................$5.85
-12%
Internal ............................$2.74
-17%
Customer body .................$1.63
-19%
Counter ............................$1.46 -8.8%
Other ...............................$2.91
-20%
Total ..............................$30.82
-17%

 Silver linings

The average dealership saw drops in most parts and service
performance measures, but the dollar value of repair orders rose.
Sales ..................................................$3.1 million
-16%
Number of repair orders written .....................7,545
-22%
Sales per customer repair order .....................$329
+5.8%
Sales per warranty repair order .......................$385
+12%
Number of technicians (including body shop) .......15
-6.3%
Customer mechanical labor rate .....................$131
+6.5%
Total parts inventory ..............................$405,818
-8.1%

PAGE 6

DECEMBER 2020

 Group of 7

There were 7 non-Takata campaigns in 2019 that each affected
more than 1 million vehicles. Together, they accounted for more
than one-third of U.S. recalls. They were:
 GM brakes (3.5 million vehicles)
 Ford automatic transmission (1.3 million)
 Subaru brake lights (1.3 million)
 Ford suspension (1.2 million)
 Nissan backup camera (1.2 million)
 FCA tailgate latch (1.1 million)
 Honda airbags (1.1 million)

 Finished fixes

Percentage of completed recalls
2018 ...............................83%
2017 ...............................78%
2016 ...............................80%

 Problem parts

The top 3 component groupings that had the most vehicles
affected by recalls in 2019:
 Brakes (4.7 million vehicles)
 Powertrain (2.7 million)
 Exterior lighting
(2.5 million)
Fixed Ops Journal - December 2020

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