Fixed Ops Journal - December 2020 - F12

FIXED OPS JOURNAL

The climate is right ... the political climate, that is

ELECTRIC
continued from Page 11

David Foutz, vice president of sales for Cox
Automotive's Xtime. They need to parlay that
advantage into making BEV drivers service
customers for life.
Fixed ops directors, Foutz says, " need systems that improve the customer experience
and drive efficiency in the shop. If they adapt
to the new customer behavior in digital ways,
then by default they will be more adaptive to
the new demands EVs present. The average
RO will decrease for EVs versus combustion
engine vehicles, so dealers must offset that in
retention and the number of repair orders.
" If independent shops lag readiness
to service EVs, then dealers could
grow their retention during this transition, and if the dealer gets great at
customer service, they can keep those
customers beyond the warranty period and redefine the trust and transparency consumers want, " he says.

to relax pollution standards.
In September, California Gov. Gavin Newsom signed an executive order banning the
sale of internal combustion engine passenger
vehicles in the state after 2035. California is
the U.S.'s largest market for new-vehicle sales.
Several other states have adopted California's
stricter air pollution regulations and could
follow its lead on this initiative.
Forecasts by Bloomberg New Energy Finance show that battery prices could drop to
packs from all brands of BEVs will prosper in
several ways. It starts, she says, with the service department treating the battery pack the
same way it does a gasoline engine.
" Every time a vehicle comes in for service, an
inspection should include a battery diagnostic, " she says. " It should include a perspective
on how that battery is degrading. It could include a perspective on the value of the vehicle
and when might be a good time to trade it in. "
Battery pack diagnostic expertise also has
implications for a store's used-car department. Stores that certify the battery pack in a
secondhand BEV to be in good condition
could offer that car with a warranty and eliminate the chief concern used-car buyers have
with secondhand BEVs. " Based on
the research we have done, we know
83 percent of consumers are skeptical
of the batteries in used BEVs, and the
residual values show that skepticism, "
Malloy says.

Service BEVs from startups

Manufacturers such as Rivian and
Lordstown
Motors, like Tesla, will not
Malloy: Befriend
have dealership networks. Instead,
Russell Hensley, who co-leads the the startups
they plan to open their own service
mobility practice at McKinsey & Co.,
centers. But franchised dealers still might have
advises fixed ops directors to look beyond
a shot at servicing at least some of these vehiCOVID-19 and begin targeting the new genercles for wheel services and collision repairs.
ation of fleet vehicles that are in high daily use
" These new OEMs need a distribution and
from ride-share services, parcel delivery comservice network, " Malloy says. " I think that is a
panies and from independent drivers working
role certain dealers and traditional OEMs
for such outfits as food delivery services. " That
could step into. They have the assets that the
will be a fleet of vehicles that will be relatively
new EV OEMs need. "
high in volume, certainly in urban settings, "
Hensley said.

Pivot to fleet maintenance

Own the battery pack
Lea Malloy, head of R&D at Cox Automotive
Mobility, says she believes fixed ops directors
who are aggressive in investing in the tools
and techs to diagnose and service battery

PAGE 12

DECEMBER 2020

Open a body shop

Dealers faced with excess fixed ops capacity
in the BEV era could offer collision repair services. And that's something under consideration by Roberts, the fixed ops director at
Bozard Ford-Lincoln.

$100 per kilowatt-hour by 2023 - putting a
BEV powertrain at the same cost as a gasoline-engine vehicle.
Battery prices, Bloomberg reported, have
declined from $1,100 per kilowatt-hour in
2010 to $156 last year. During this same time,
the nation's public charging infrastructure has
grown to the point where nearly every city has
round-the-clock chargers available in parking lots and elsewhere.
- Richard Truett

ecent political events could result in
more BEVs in showrooms sooner
than originally planned.
President-elect Joe Biden has
said rejoining the Paris Agreement is one of
his first priorities when he takes office next
month. Biden is expected to be at least as aggressive in enacting legislation aimed at
curbing greenhouse gases and harmful
emissions than the Obama administration.
The outgoing Trump administration worked

" These new OEMs need a
distribution and service
network. I think that is a role
certain dealers and traditional
OEMs could step into. They
have the assets that the new
EV OEMs need. "

LEA MALLOY, Cox Automotive Mobility

" I would like to have a body shop. Will it
come to a point when we convert? It's certainly
a possibility, " he says. " About 40 percent of the
tow-ins that come into a body shop end up being totaled. When a customer comes to clean
out his vehicle after it's been totaled, you want
him to come and shop with you instantly. "

Explore recycling revenue
Lithium ion batteries are loaded with valuable precious metals that can be recycled.
Malloy recommends fixed ops directors stay
informed on how the battery pack recycling
industry emerges as BEVs take a bigger share
of the market.

Nurture customers
Less frequent service visits will make it
more critical to keep in contact with customers. Malloy recommends using text messages
and mobile phone applications to keep in
touch.
" Loyalty and service retention digital platforms will go a long way, I think, to maintain
relationships with customers when you may
not see them all the time, " she says. " The forward thinking fixed ops departments that can
demonstrate to EV drivers that they are prepared to support their vehicles will be the
ones that will win out. " 

Fixed Ops Journal - December 2020

Table of Contents for the Digital Edition of Fixed Ops Journal - December 2020