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Tuesday, December 15, 2009

Not so fast!

Auto maker moves to regain share of service market.

Beware: This is not just a story about tires and oil changes.

Ford Motor Company is on schedule to open their 600th Quick Lane service center in 2010. Click here to see a story about the project from the Detroit Free Press… or visit the Quick Lane site to see how they compare to your local quick-oil-change store or repair center.

Implications: Yes, consumers are holding on to their cars longer… and that trend bodes well for the automotive service sector. But consumers also continue to live in a time-starved world… which is one reason car dealerships can be frustrated by their share of the service market.

Lots of people perceive going to a fast-lube store as both quicker and easier than going to a car dealership for an oil change or small repair. After all, getting service at some dealerships has traditionally involved making an appointment, dropping-off your car, and then making a return trip later to pick the vehicle up; not to mention the headaches of finding a friend to give you a ride (or two) to the dealership, renting a car, or waiting for a courtesy van.

In a difficult economy, the revenue stream of the service department might be particularly attractive and important for car dealerships and manufacturers alike. (Revenue from vehicle sales has not been quite as robust over the past few years, as you may have heard!)

The rapid oil-change market has seen many new entrants since the 1980s. But with Quick Lane, Ford is positioning itself to say, “Not so fast… we can provide quick service, too.”

How does “service after the sale” stack-up in your industry? Do you find yourself in an industry where people are stretching the buying cycle, and holding on to older models longer? Does the current climate support greater attention to service? Is this a function that you can profitably provide… or are you prepared to leave that revenue to someone else?

Mike Anderson

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