Mobile recall fixes help keep dealership rolling

Ed Roberts added his second mobile service van on March 11. It has become an $80,000 tool for picking up recall work at Bozard Ford-Lincoln in St. Augustine, Fla.

When the first one arrived late last year, Roberts expected it to primarily serve the dealership's fleet customers. But things have tilted toward individual clients, with about half of the orders involving recall work.

Apparently, customers who have a hard time getting around to taking their vehicles to the dealership for recall fixes are more than willing to have the repairs come to them.

"It's probably the most-accepted program I've ever put together in fixed ops," says Roberts, 46, speaking of his mobile van effort.

That includes work at six dealerships in a two-decade career. The last eight have been at Bozard, where he's the parts and service director overseeing a 96-bay shop and the two mobile units.

Roberts says his team is systematic and…

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Germ-free cars are nice, but nothing tops low price

When states across the country issued stay-at-home orders during the coronavirus pandemic, most service customers parked their cars and put off needed repair work even though many dealership service lanes were considered an essential service and therefore stayed open.

Now that many states are slowly reopening, will service customers begin booking appointments at their dealerships?

Customer surveys during the pandemic showed some reluctance on the part of consumers to reengage with advisers and techs on the service drive. Some worried about how clean their vehicle would be after the repair work was completed, and others expressed a desire to avoid face-to-face interactions.

In mid-May, Fixed Ops Journal asked DealerRater to poll service customers on what their most important considerations would be when they now take their vehicles in for repairs at their dealership.

Half of the nearly 12,000 respondents said price sti…

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Collision repairs have tanked, but that doesn’t mean it’s time to sell

For years, the body shop has been a profitable component of the fixed operations at Westside Lexus in Houston, the first Lexus dealership to be named a certified collision center of the year by Toyota Motor Sales USA Inc.

Westside Parts and Service Director Robert Parnell says the collision shop generates profit from labor and materials, and selling replacement parts bolsters the bottom line in the parts department. The dealership also does a good business in repairing Lexus vehicles under direct-repair programs with insurance companies.

"We're very happy to be in the body shop business and always have been. I can't imagine that ever changing," he says. But collision repair business at Westside and at dealerships across the country has fallen dramatically — 50 percent or more at some shops — after stay-at-home directives during the coronavirus pandemic sharply curtailed traffic, and as a result accidents, on city streets and state highways.<…

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Automakers, dealerships see mobile service as investment in customer loyalty

The new High-Roof Transit van that arrived at Gus Machado Ford Hialeah, near Miami, in early March was supposed to deliver service to the dealership's fleet customers.

Then the COVID-19 pandemic hit. Big contracts, such as one with Miami-Dade County, went dormant. Parts and service director Amable Valle turned his attention to taking repairs to individual customers' driveways.

The dealership sent emails to customers, posted videos on its website and publicized its mobile service van on social media. General Manager Victor Benitez appeared on Spanish-language TV to tout the vehicle disinfection that comes with mobile repairs.

And while it's been a challenge luring some customers, especially older people wary of allowing visitors onto their property, Valle is convinced he's found a way for his service department to broaden its reach.

"We already do pickup and delivery, too," he says. "It's just another thing we can pro…

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This could be a great time to hire women in service — here’s how

Increasing gender diversity is an ongoing challenge in fixed operations. But the coronavirus pandemic just might offer a make-lemonade-from-lemons moment, especially if many furloughed employees don't return, observers note.

To capitalize on the potential opportunity, two female executives at auto groups with enviable levels of female employment, Liza Borches and Vanessa Delegas, suggest leveraging referrals, making job requirements less technical and using social media.

Borches says most women don't have the automotive industry on their list while job hunting. But it's important for a dealership's service drive to reflect its customer base in regard to age, gender and race.

"We can't wait for women to apply for positions; we need to pull them in," says Borches, CEO and dealer principal of Carter Myers Automotive in Charlottesville, Va. "That means we must be more intentional about recruiting. Contact women we know who are vendo…

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Nissan readies Rogue — pandemic or not

Much is riding on the 2021 Nissan Rogue, expected to arrive in U.S. stores this fall. But its journey — through the terrain of a global pandemic — could be bumpy.

The redesigned Rogue compact crossover is scheduled to debut on June 15 as the linchpin of Nissan's plan to turn around its struggling U.S. business.

Nissan Division sales dove 30 percent in the first quarter, compared with a 12 percent slide for the industry. Chronic product discounting and a reliance on residual value-hurting fleet sales have dinged the brand's reputation, leaving dealers struggling to find customers.

The third-generation Rogue — the first of five new or redesigned Nissan models that will enter production in the next year — is being looked to as a way for the automaker to change the storyline.

But no one expected the plot twist of the COVID-19 pandemic upsetting business plans and consumer attitudes just as the Rogue arrives.

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Munoz sharpens Hyundai’s focus on retail

Jose Muñoz is not just the CEO for Hyundai North America. He is also the global COO for parent Hyundai Motor Co. As such, Muñoz has a seat at the table in developing long-term strategies for the Korean automaker.

The choice of Muñoz, who joined Hyundai in May 2019, took the industry by surprise. Three and a half months earlier, he had abruptly resigned as chief performance officer for Nissan Motor Co., which was sliding into crisis after the arrest of its now-former chairman, Carlos Ghosn.

Muñoz's tenor at Hyundai has been that of a man in a hurry. The automaker has a bold plan to reach U.S. volume of 1 million by 2025. Sales last year were up 4.7 percent to 710,004, including sales of the luxury Genesis brand. Hyundai also wants to be a global leader in green-car technologies such as hydrogen fuel-cell vehicles and pure EVs.

Muñoz, 54, spoke this month with Staff Reporter Laurence Iliff. These are edited excerpts.

Q: After 13 months on the job,…

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Retailers deal with fallout over racist employee posts

The chilling 54-second cellphone video begins with a child-size pair of expensive sneakers being placed on the front seat of a car. The voice on the video said he put them in plain view to "set up a trap for these looters." The car door closes and the camera pans to a nearby home's upstairs window. "But little do they know that's my window right there into my room," the voice on the video says. "Sniper tower."

It had been five days since the death of George Floyd in Minneapolis while in police custody when this video surfaced. Protests — and some looting — had broken out in several U.S. cities, including Scottsdale, Ariz., where the video was shot.

As it continues, now from inside the upstairs bedroom, the man turns the camera on himself as he is holding an assault rifle and wearing an AutoNation Inc. polo shirt. "Fear nothing," he says.

The man, Raymond Trzaskos, was quickly identified on social media as an employee of AutoNatio…

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Hertz wins court approval to offer potentially worthless stock

WILMINGTON, Del. -- Hertz Global Holdings Inc. won court approval for its plan to raise cash by selling new shares that the bankrupt car-rental company concedes could end up being worthless.

Judge Mary Walrath ruled during a bankruptcy court hearing that Hertz can go ahead with the offering, which the company has said could bring in as much as $1 billion. It’s seeking to take advantage of the recent improbable rally in its shares to help resolve the massive debts that forced it into bankruptcy.

Hertz based its request to the court on a nearly tenfold increase in its stock from 56 cents on May 26 to $5.53 on Monday. The stock has slid since then, closing Friday's trading at $2.83. That was up 37 percent but the shares were down 10 percent to $2.55 in after-hours trading. Hertz attorney Tom Lauria said the company will seek to begin the sale as soon as possible before the opportunity slips away.

“We are trying to move very swiftly,” he said.

Ba…

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Key Mexican state for VW, Audi not ready to reopen auto production

MEXICO CITY -- Mexico's Puebla state, where German automaker Volkswagen and its luxury brand Audi have major plants, said it is not ready to reopen its automotive sector due to ongoing concerns about the spread of the coronavirus.

Puebla's Governor Miguel Barbosa signed a decree on Friday stating that the conditions for the return of the automotive and construction sectors are not favorable, according to a statement published on the state's Twitter account.

Barbosa, an ally of President Andres Manuel Lopez Obrador, has said he wants to reopen the state's economy but not if that means people's lives will be at stake.

The Mexican unit of Volkswagen Group had previously said it was ready to resume operations in Puebla and the state of Guanajuato on June 15.

Mexico has registered 133,974 official coronavirus cases and 15,944 deaths, though the government says the real number of infections and deaths is significantly higher.

Most Mexican ca…

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Toyota names new HR chief, appoints Hughes to new role

Toyota Motor North America is elevating one of its top human resources executives to become its new chief HR officer and creating a position for the former chief HR officer to lead business revolution and transformation.

The automaker said Friday that Cheryl Hughes, who has been chief HR officer since January 2016, including having a key role on the small committee that oversaw the automaker's move from California to Texas, will now be in a newly created position: group vice president for business revolution and transformation. Toyota says that in the new role, Hughes "will be responsible for creating and steering initiatives that will help reshape TMNA's business, culture and workforce."

To replace Hughes, Toyota has elevated Craig Gruzca to chief human resources officer from his previous post as group vice president for corporate shared services and human resources. Toyota said Gruzca will perform both functions simultaneously.

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Lexus reschedules IS debut for Monday

Lexus is rescheduling for next Monday the online reveal of the redesigned 2021 Lexus IS sedan in the wake of ongoing civil unrest in the U.S. over the death of George Floyd in Minneapolis.

Lexus on June 5 said it had "respectfully postponed" the debut, originally scheduled for last Tuesday, without citing a specific reason, though Toyota Motor North America issued a statement June 3 decrying "unacceptable bigotry and a lack of education around the COVID-19 virus to more recent societal issues of violence, killings and racism against African Americans in Minnesota, Kentucky, Georgia and elsewhere."

As it had planned previously, Lexus will introduce the redesigned luxury sports sedan at its headquarters in Plano, Texas. It can be viewed here beginning at 7 p.m. EDT Monday.

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