Automotive News Canada - December 2022 - S20

FROM THE
20
FEBRUARY
EDITION
FROM THE
MARCH
EDITION
FROM THE
BEST PRACTICES 2022
Fix-ops at odds
with EVs, unless . . .
APRIL
EDITION
EDITION
FROM THE
MAY
Repair needs will shrink,
so dealerships need to
stress customer loyalty
to retain their business
over the long haul
By STEVE MERTL
VANCOUVER CORRESPONDENT
AUTOMOBILE DEALERS ARE SEEING
early evidence that electric vehicles
will change the service landscape and
the way they compete with independent
shops.
With fewer major moving parts -
no pistons, crankshafts, valvetrains or
multispeed transmissions - EVs are
expected to spend less time in service
bays for maintenance or repair. That
means dealers will have to adopt fresh
strategies to keep that business once EV
warranties expire.
" Generally speaking, our mission
to dealers is to reduce the focus on dollars
per visit and increase the focus
on retention, " said Andrew Harkness,
Nissan Canada's director of aftersales
and quality assurance.
Dealers such as suburban
Vancouver's Morrey Nissan, which has
sold the Nissan Leaf EV since its 2011
launch, have absorbed that message.
" There's no doubt we're going to
have to pivot, like we are in every corner
of our business, into operating
in different ways, " General Manager
Jarrett Morrey told Automotive News
Canada.
LESS TIME IN THE SHOP
Although only a small percentage
of vehicles on the road are electric,
predictions that they will make fewer
Nissan's experience with the
Leaf EV suggests customers
want dealerships to service their
vehicles as opposed to going to the
aftermarket. PHOTO; NISSAN
EDITION
FROM THE
of the Canadian Automobile Dealers
Association (CADA), which represents
3,200 franchised dealerships.
EDITION
FROM THE
Anecdotal feedback from dealers in
British Columbia and
FROM THE
AUGUST
EDITION
FROM THE
SEPTEMBER
EDITION
FROM THE
OCTOBER
EDITION
FROM THE
Quebec is reinforced by
data compiled by U.S.based
Consumer Reports.
A 2020 study based on surveys
of U.S. and Canadian
EV owners found that EVs and plug-in
hybrids had 50-per-cent lower average
lifetime repair and maintenance costs
per mile compared with internal combustion
engine (ICE) vehicles.
" Generally, consumers are going to
wind up saving money when it comes
to repair and maintenance, " said Jake
Fisher, Consumer Reports' senior director
of automotive testing.
" Long term, all things being equal,
electric vehicles are going to be much
better when it comes to problems and
repair. "
That squares with Harkness's experience
so far with the Leaf. Dealers normally
see the Leaf once a year, " someNOVEMBER
EDITION
JULY
times
less, " though some come in to
have winter tires mounted, he said.
LEAF LOYALTY
But Harkness and others said that
fixed-ops managers should not be
alarmed. With the Leaf, for example,
total customer retention over 10 years
is about the same as for ICE vehicles,
he said.
" We'll get a little less of the business
upfront, " Harkness said, referring to
an EV's longer service intervals. " But
we'll get the customer a little later in
life when they require a little bit more
repair as the vehicle ages. "
CADA's Reuss agrees, noting that
most owners seem to prefer returning
to the dealership for ongoing service, at
least for now.
" The overall impact on those dealerships
is neutral, if not positive, because
what they are not getting on a per-unit
basis, they are getting because every
single EV is coming back to them, " he
said.
Dealer Morrey echoed that view.
" With the Leaf specifically to date,
we've experienced a high, high amount
of loyalty. Retention is strong because
for sure the consumer's relying on the
dealer to manage and help with all
aspects of the vehicle, as opposed to
going aftermarket. "
Independent shops will expect to
compete for that business eventually
as EVs age, said Jean-François
Champagne, president of the
Automotive Industries Association,
which represents the aftermarket.
" Survey after survey shows
Canadians want to have options. "
Consumer Reports finds EVs among
the least reliable vehicles, said Fisher,
" not because of their electric powertrains
but because of the other compoJUNE
and
less costly shop visits are being
borne out, said Tim Reuss, president
Automotive News Canada - December 2022

Table of Contents for the Digital Edition of Automotive News Canada - December 2022
