Facebook ads help dealership’s sales

A well-timed decision to shift from radio and TV ads to Facebook drove a surge in sales for Power Ford, helping the Albuquerque, N.M., dealership connect with homebound consumers as the coronavirus pandemic hit.

After a management change in mid-2017, the dealership moved thousands of advertising dollars to the social networking site. By partnering with Dealers United, a vendor that helps dealers with online data and advertising, Power Ford began paying for targeted ads showcasing its vehicles to nearby consumers who are in the market to buy. The ads pop up on their news feeds based off their recent online search history.

The results have been impressive.

In 2019, the dealership increased sales 8 percent year over year — vs. a 3.2 percent decline in its local market — and spent 21 percent less on advertising. It sold 1,576 new vehicles last year.

Once a bit player in its market, Power Ford has been the top-selling For…

Read more
  • 0

COVID-19 moves pickup and delivery into mainstream brands

Thanks to COVID-19, the era of pickup and delivery is here.

Before the pandemic, a growing number of stores selling mainstream brands were slowly rolling out pickup and delivery options for their service customers.

But now it's pedal to the metal as pickup and delivery of customers' vehicles has emerged as one of the most effective ways fixed ops directors can keep their service bays busy while reducing the risk of exposing service advisers, techs and cashiers to the virus.

An added bonus: Pickup and delivery means fewer customers hanging out in lounges waiting for their vehicles to be fixed, further helping stores remain virus-free.

In late March, Ford began subsidizing dealerships that pick up and deliver customer vehicles. Customers are not charged for pickup and delivery. Ford covers dealers' costs by paying them $50 per repair ticket on cars picked up, serviced and returned. In May, more than 2,800 Ford stores …

Read more
  • 0

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.<…

Read more
  • 0

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…

Read more
  • 0

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…

Read more
  • 0

Service customer denied award

The Texas Court of Appeals has refused to reinstate a $25,236 jury verdict in favor of a service customer whose 2006 Chevrolet Equinox was hit by another vehicle backing out of a service bay.

The three-judge panel unanimously found that Millicent Edwards failed to provide evidence that Lynn Smith Chevrolet, in the suburban Fort Worth city of Burleson, was responsible for her injuries from the January 2014 collision.

According to the April opinion, Edwards was at the dealership for an oil change. "As she left, she noticed that the oil light was still on so she flagged down an employee. While they were talking, another car backed out of the service bay and hit her car."

A jury found in favor of Edwards, but the trial judge overturned the award. The Court of Appeals also sided with the dealership, saying, "There is no evidence that a Lynn Smith employee ... was driving the car that struck Edwards's." In fact, it continued, Edwards t…

Read more
  • 0

Dealerships will need technicians as pandemic subsides, business returns

Some technicians at franchised dealerships have been laid off, and those lucky enough to still be turning wrenches likely aren't getting the work they did before the pandemic.

Whether they're not working or barely working, techs still have bills to pay — rent, car and tools, for starters. And now, faced with the prospect of working on vehicles that might have traces of the virus, some might not be too eager to return to their service bay.

But concern over the auto retail industry's critical need for more service technicians has temporarily taken a back seat as dealership service business recovers from a steep decline as a result of the coronavirus shutdowns. Once that recovery occurs, the focus will return to the tech shortage, experts say.

"I think the shortage is still a shortage," Mike Campbell, vice president of service and quality for Subaru of America, told Fixed Ops Journal.

Through April, Subaru's 634 U.S. d…

Read more
  • 0

Employees will find new processes and mindsets are required post-COVID

In the "new normal" world imposed by the COVID-19 pandemic, technicians at Patriot Subaru of Saco, near Portland, Maine, now work firefighter shifts — three 11-hour days a week. Plus they work only in every other bay to maintain social distancing.

And at Hansel Auto Group in California, technicians now diligently — not occasionally — video record their multipoint walkaround inspections to better communicate virtually with customers.

As these changes show, furloughed fixed ops employees who return will likely find their jobs are quite different from the ones they left. Furthermore, the work will demand new skills and mindsets, including more technical proficiency and an ability to adapt to change.

"Yesterday's normal is never coming back," says Adam Arens, CEO of Patriot Auto Group, which operates three rooftops in Maine, Massachusetts and New Hampshire. "That's why we're diligently looking way down the road trying to figure out …

Read more
  • 0

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…

Read more
  • 0

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…

Read more
  • 0

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.

Read more

  • 0

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,…

Read more
  • 0