Automotive News Canada - April 2020 - v2 - F6

FIXED OPS JOURNAL

SERVICE COUNTER

 Outlook after virus

In March, the Automotive News Data
Center polled more than 300 dealers in
the U.S. and Canada to gauge how
business was faring during the
coronavirus pandemic and how they think
their stores will be impacted.
Nearly all survey respondents (92%)
said they expect business to be worse in
2020 than 2019, and nearly the same
amount (91%) forecast a revenue decline
of 10% or more. Additionally, 68% of
dealers surveyed believed automobile
dealers were "slightly to not at all
prepared" to respond to and weather the
impact of COVID-19.
The survey also asked respondents
questions regarding their fixed
operations. Here are a few questions and
answers.

Q: How likely are you to temporarily

close showrooms, focusing on digital
sales and service at the dealership?
Very to somewhat unlikely ...............48%
Very to somewhat likely ...................32%

Q: Where do you see the most

opportunity for growth?
Before coronavirus:
Used-vehicle sales ..........................45%
Service ..........................................27%
New-vehicle sales ...........................18%
After coronavirus:
Service ..........................................51%
Used-vehicle sales ..........................17%
Factory-to-dealer incentives .............12%

Q: Why will the coronavirus have an

impact on your service and parts
department? Select all that apply.
Customers deferring services ..........89%
Declining access to replacement
parts .............................................36%
Staffing shortages ..........................22%

Source: Automotive News Data Center

PAGE 6

APRIL 2020

 Customer satisfaction up again, before virus

Customer satisfaction when it comes to dealership service has been growing the past few
years. As the COVID-19 pandemic casts uncertainty across the industry and potentially
disrupts auto parts supply chains, those gains might be in jeopardy. The J.D. Power 2020
Customer Service Index Study overall satisfaction increased to 837 (on a 1,000-point scale),
marking the fifth consecutive year of improvement. As the crisis continues, however, meeting
customer expectations for prompt service and repairs may be hampered due to a lack of
parts.
 Overall CSI Satisfaction Score
(on 1,000-point scale)
Luxury ........................................864
Mass market ...............................831
 CSI score when parts unavailable
Luxury .........................................709
Mass market ...............................690
 Those who said they "definitely
will" return for paid service
Segment average:
Luxury ........................................63%
Mass market ..............................58%
When parts not available:
Luxury ........................................30%
Mass market ..............................26%

 Highest-ranked brands based on
satisfaction with dealer service
Luxury:
Lexus .....................889
Cadillac ..................882
Porsche ..................882
Infiniti .....................875
Lincoln ...................872
Mass market:
Buick ......................861
Chevrolet ...............852
GMC ......................847
Mitsubishi ..............846
Toyota ....................843
Source: J.D. Power 2020 Customer Service Index Study

 Top reason for delaying repairs: High cost

Every day, millions of vehicles are being driven around that need repairs. The most common
delayed repairs are oil changes, tire changes and brake pad replacement. These necessary -
and uncompleted - repairs or maintenance represent billions of dollars in missed revenue
for service departments. IMR Inc. surveyed vehicle owners in August to get the reasons
behind these delayed repairs.
Reason for delayed maintenance
Total
Cost of repair is too much ...............................37.5%
Couldn't find a convenient time ........................20.2%
Repair isn't important to driveability of car ........17.8%
Other reasons ..................................................9.8%
Repair takes too long/can't be without car .........4.7%
Part not available .............................................3.9%
Don't plan on owning vehicle much longer ..........3.5%
Want to get second opinion ...............................2.6%
Source: IMR Inc., 2020 Auto Care Factbook
Automotive News Canada - April 2020 - v2

Table of Contents for the Digital Edition of Automotive News Canada - April 2020 - v2
