Service department turnover issues go beyond pay

One of the biggest issues for dealership service departments is keeping the staff happy and in place. But technician and service adviser retention is especially difficult because of compensation issues and long hours. In 2021, 28 percent of techs and 40 percent of advisers left their brand.

This year, Carlisle & Co.'s annual Automotive Service Manager Survey asked service managers across North America to share retention strategies for technicians and advisers. The Massachusetts automotive aftermarket research and strategic consulting company received more than 11,000 responses.

While pay is especially an issue for techs, there are a few other reasons they and service advisers leave dealerships. Service managers reported trying to improve the pay issue with bonuses and other compensation. They also are showing both technicians and advisers a career path and striving to improve the culture and work environment on the service drive.

Read more

  • 0

Dealerships fuel engagement with social media

Henson Brand Dealerships is using its social media pages to earn customers' business — and attention — for the long haul.

Some of those customers are getting their vehicles for free as a result.

Henson Chevrolet-Buick-GMC, Henson Chrysler-Dodge-Jeep-Ram and Henson Ford in Madisonville, Texas, began monthly car giveaways in 2019. The stores heavily promote the giveaways on social media, requiring followers to share posts and tag the dealerships to be eligible to win a used vehicle.

The dealerships also run live infomercials on Facebook, encouraging customers to call a number on their screen if they are interested in a certain vehicle, and host live giveaways and games with cash and other nonautomotive products as prizes.

The stores have invested about $100,000 in production equipment and hired producers, marketing specialists and communication reps to enhance the social media strategy. The dealerships post about 160 times a week and …

Read more
  • 0

Rivian R1T electric truck ‘way underpriced,’ but room to improve, expert says

The Rivian R1T, one of the first electric pickup trucks on the market, is "way underpriced," according to a manufacturing expert known for his sometimes blunt assessments of electric vehicles from Tesla Inc. and others.

The R1T also could use some engineering and production changes to reduce its manufacturing cost, according to Sandy Munro, head of Michigan-based Munro & Associates, which tears down vehicles and advises automakers on how to improve them.

Known for his blunt YouTube assessments, Munro, a former Ford manufacturing engineer, says the R1T has "buckets of cost reduction opportunity" -- not unusual for a brand-new vehicle from a first-time manufacturer.

But the R1T, which starts at $67,500, "should be selling for $100,000 -- it's way underpriced for what it is and what it does," says Munro during a walkaround of the dismantled vehicle at his company's Auburn Hills headquarters.

That is good news for a company that just went public …

Read more
  • 0

At Indy 500, Honda’s simulator puts editor through the paces

INDIANAPOLIS — It was the chance of a lifetime, squandered on the wrong guy.

The Friday before the famous 500-mile race at the Indianapolis Motor Speedway is Carb Day — that stands for carburetion, not the carbohydrates in 12-ounce cylinders that racing fans wheel to the bleachers in coolers.

As things were winding down, Honda held a little drawing for the journalists present: One of us would get to experience the company racing program's Driver-in-the-Loop simulator at the Indianapolis arm of Honda Performance Development. Like a flight simulator, it's used to train drivers on a specific course or to virtually test new equipment or other strategic adjustments, such as how much downforce to apply under various conditions. It's basically the ultimate driving video game — designed and managed by a company still inspired by racing roots that go back to its founder.

It's what Formula One veteran — and "Formula 1: Drive to Survive" darling — Romain Grosjean…

Read more
  • 0

Supporting the shift to EVs is an economic, climate winner

From forest fires driving residents out of California to freezing water pipes in Texas to a scorching heat wave putting lives at risk in India, our planet is warming and the daily impacts of climate change are becoming more difficult to ignore. In addition to impacting how we live, climate considerations are driving changes in how we conduct business and shaping the future development of major industries around the world.

Consider the most recent United Nations climate report, which reminds us of what's at stake for the global automotive industry — and by extension, what's at stake for Michigan and similarly situated states and provinces. While worldwide greenhouse gas emissions from transportation grew at an average of 2 percent a year between 2010 and 2019, the U.N. report highlights hopeful signs of progress.

For example, electric vehicles are the fastest-growing segment of the auto industry. Nearly 9 percent of new vehicles sold last year…

Read more
  • 0

David Woessner on mobility’s new reality (Episode 151)

The investor and adviser at FutureOf details the financial straits facing many electric vehicle companies, explains why autonomous vehicles remain a long-term endeavor and explores the mobility opportunities that remain.

How do I subscribe?

Apple Podcasts: “Shift: A podcast about mobility” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe.

Spotify: "Shift: A podcast about mobility" can be streamed through Spotify on your desktop, tablet or mobile device. Click here to subscribe.

Google Play: "Shift: A podcast about mobility" is available on Android devices through the Google Play store. Click here to subscribe.

Read more
  • 0

Musk bans employees from phoning it in

Elon Musk says he no longer owns a home. He's also not a fan of working from one.

The Tesla CEO told employees in a pair of emails last week that they are no longer allowed to work remotely every day and would be dismissed if they spend too little time at the office.

"Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla," Musk wrote May 31. "This is less than we ask of factory workers."

Musk sent a similar proclamation to workers at SpaceX and said he would consider exceptions for "particularly exceptional contributors" who can't meet his mandate. Without his personal approval, he warned, "if you don't show up, we will assume you have resigned."

Musk referenced the months he spent sleeping at Tesla's Fremont, Calif., plant as the company was preparing to launch the Model 3 sedan in 2018, saying that without his constant presence there, "Tesl…

Read more
  • 0

Dealer declines to buy 3-wheeled Honda after crash

After crashing into a freeway wall, an Indiana man tried to get rid of the evidence by driving his damaged SUV straight to a nearby dealership and asking the store to buy it from him, according to police.

When Jordon Mattingly arrived at D-Patrick Honda in Evansville, his vehicle was missing a tire and had clear signs of having been in a recent collision, the Evansville Courier & Press reported.

Mattingly, the 30-year-old son of former MLB player Don Mattingly, appeared "super drunk," a witness at the dealership told police, and had minor injuries to his shin and forehead.

He told police that the damage to his vehicle was caused by hitting a pothole two days earlier and that he had gone to the store to sell it and buy a new one.

Mattingly had reportedly arrived at the dealership about 15 minutes after a caller reported seeing a silver Honda matching his vehicle driving erratically and hit a nearby freeway wall at abo…

Read more
  • 0

Liebert out after another short stint as a CEO

Carl Liebert's career in the real estate business lasted just 20 months, but that's still more than four times as long as he survived in auto retailing.

Liebert, who was ousted from AutoNation in 2019 after 133 days as its CEO, took the top job at Keller Williams parent Kwx in October 2020. Keller Williams last week said Liebert was leaving, effective immediately, to "pursue other opportunities."

Just as he was at AutoNation, Liebert had been a industry newcomer and the successor to a beloved, longtime leader stepping aside to be chairman. At Keller Williams, that leader, co-founder Gary Keller, has been reinstalled as the top executive while the firm examines its future needs.

AutoNation called Liebert a bad fit for the role and handed him a nearly $4 million severance package on the way out the door. It wasn't clear last week whether Liebert was leaving Keller Williams with such a generous golden parachute, though the firm avoided any negative public…

Read more
  • 0

GM cobalt supplier admits to bribery

Glencore, a key supplier of cobalt to General Motors for its upcoming electric vehicles, admitted to bribery and market manipulation and said it will pay about $1.5 billion to settle U.S., U.K. and Brazilian probes that have hung over the commodities giant for years.

The settlements will help remove a question mark that has long overshadowed the trader's business but show how far the company, founded by U.S. fugitive Marc Rich, has been willing to go in pursuit of profit. Rich fled to Switzerland in 1983 and died there in 2013.

Glencore units agreed to plead guilty to a list of charges that range from bribery and corruption in South America and Africa, to price manipulation in U.S. fuel-oil markets.

"Bribery was built into the corporate culture," Manhattan U.S. Attorney Damian Williams said at a May press conference. "The tone from the top was clear: whatever it takes."

Glencore paid more than $100 million in bribes to government officials in Braz…

Read more
  • 0

New Lexus RX, RZ spindle design ushers in new era

TOKYO — No more controversial mugs for Lexus—

The premium brand's polarizing spindle grille — derided as the Darth Vader death mask by some critics — is getting a face-lift for a kinder, gentler look thanks to the brand's shift to electrification.

With no engine to cool in Lexus' upcoming line of electric vehicles, there is no need for a gaping front air intake — or the brand's trademark gaping grille to shield it.

Lexus global design chief Koichi Suga told Automotive News that the makeover is already underway, with the new RZ full-electric crossover unveiled in April and the soon- to-arrive redesigned 2023 RX crossover revealed last week in Japan and at a media event at Toyota Motor North America's headquarters in Plano, Texas.

Lexus is sticking with the spindle motif. But going forward, it will be structurally incorporated into the solid body paneling. Say so long to the spindle grille; say hello to the "spindle…

Read more
  • 0

Elon Musk’s warning about recession seen as ‘canary in the coal mine’

Tesla Inc. CEO Elon Musk's "super bad feeling" about the economy could be the auto industry's "canary in the coal mine" moment, signaling a recession for an industry whose bosses have shown no signs of concern.

Musk said the electric carmaker needed to cut about 10 percent of its workforce in an email to executives seen by Reuters. He later told staff that white-collar ranks were bloated and he would keep hiring workers to make cars and batteries.

Musk's warning is the first loud and public dissent in a united stance by the auto industry that underlying demand for cars and trucks remains strong despite two years of global pandemic. One executive this week called demand "sky high."

"Tesla's not your average canary in the coal mine. It's more like a whale in the lithium mine," Morgan Stanley analyst Adam Jonas said in a research note, referring to the metal used in EV batteries.

"If the world's largest EV company warns on jobs and the economy, inve…

Read more
  • 0