Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Mid-Year Report
  • ADAS
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
April 11, 2005 02:00 AM

Car makers fight for service customers

Gail Kachadourian Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    As parts and service grow as a source of car dealership revenue, auto makers and dealers are pursuing that business more aggressively.

    The average auto dealership had parts and service revenue of about $3.8 million last year, the National Automobile Dealers Association said. That's a slight increase over 2003.

    As vehicle quality has improved, warranty repairs have decreased. So car dealerships have greater capacity for maintenance and light repair work.

    Service and parts work ``is on the increase pretty dramatically'' at Chrysler Group dealerships, said Joe Hilger, Chrysler Group's vice president of global service. The auto maker would not disclose the service retention rate at its stores.

    Chrysler plans to launch a service and parts campaign soon bearing the tag line, ``Service Drive.'' Mr. Hilger would not divulge details.

    Beth Grotz, marketing director of General Motors Corp.'s GM Parts & GM Goodwrench, said roughly three in 10 buyers of new General Motors vehicles return to GM dealerships for service after the initial warranty expires. The auto maker wants to increase that share to four in 10 this year, she said.

    GM's Service and Parts Operations is training staff members at 675 dealerships this year to conduct free vehicle inspections for customers when they bring their vehicles in for service. In the last 18 months, personnel at 661 dealerships has undergone the week-long training.

    The inspection gives owners a vehicle rating report. A red rating identifies a problem that requires immediate attention. A yellow rating suggests a potential problem. A green rating means no problem.

    Ms. Grotz said dealerships that have completed inspection training have shown increases in their nonwarranty repair work.

    Jeff Siegfried, fixed operations director at Friendly Chevrolet Inc. in Minneapolis, said GM's training has helped his store boost its service revenue. About 70 percent of the dealership's gross profit comes from service, parts and body operations, he said.

    ``Going through the motions of the inspection form and making sure we tell the customer what we find has been keeping us from taking on water when we're out in the big sea,'' Mr. Siegfried said.

    GM also is working to help its dealers increase tire sales. The auto maker is giving dealership service departments cards that measure tire tread depth. Service employees wear the cards on lanyards around their necks.

    At least 11 percent of service customers need tires, Ms. Grotz said. And 78 percent of consumers will buy tires from the first person who tells them they need tires, she added.

    GM dealers in Milwaukee and Minneapolis are offering a low-price guarantee on tires, Ms. Grotz said. If customers who buy tires from GM dealerships in those cities see the same tires advertised elsewhere for a lower price within 30 days, they will be refunded the difference.

    GM's service and parts operation has 47 dealer marketing groups nationwide and plans to create another 20 this year. The groups generate ideas to bring customers back to dealerships for service and pool marketing money to advertise these offers.

    Ford Motor Co. is introducing a national sales campaign for parts and service called ``Genuine Challenge.'' The campaign's ads urge customers to compare the quality of service at Ford and Lincoln Mercury dealerships with service offered elsewhere, a Ford spokeswoman said.

    Toyota Motor Sales U.S.A. Inc. is preparing a radio ad campaign for its service operations. The 30-week campaign was to begin in April and will include 44 U.S. markets. The ads will air during drive-time traffic reports.

    Toyota would not disclose the campaign's cost.

    ``Each region will have the flexibility to advertise what they want in their market,'' said Joe Stempkowski, Toyota's national parts and service sales and marketing manager.

    Some Toyota service customers receive coupons for a free oil change if their dealership doesn't complete their oil change, vehicle inspection and tire rotation on time, he added, noting, ``We try to compete with the Jiffy Lubes.''

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Average executive salaries found in Tire Talent report
    2
    Conti rolls out new taglines for Conti, General brands
    3
    Our View: Groups celebrate past by looking to future
    4
    Discount Tire installs RoboTire at Arizona store
    5
    TBC Brands expands Pennsylvania distribution warehouse
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Mid-Year Report
    • ADAS
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION