Further Investment in Fixed Ops, EV Service Training Safety, Pop-ups Here To Stay

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Let us be the first to welcome you into a fresh Fall week as we survey what Dealers are doing across the country by investing in fixed ops. We also talk about a cogent warning for EV service safety, as well as the pop-up retail trend that will be sticking around well past the holidays. 

• As new car supply continues to struggle and the used market is riding the pricing roller coaster, many Dealers continue to invest in fixed ops to take hold of the opportunity to gain market share and to build resiliency into their future profit model 
  • Many dealers like Brian Godfrey of Pat Milliken Ford in a Detroit suburb has immediate need for multiple techs and additional bay space as sales continue to rise by double digits
    • Can only handle existing customers 
  • Customer service and retention remain the focus of keen operators as they know data shows over 70% of customers choose non-dealership repair shops once warranties expire
  • Shortage of new cars will exacerbate the issue over the next 36 months
  • Publics and privates are seeing sales growth and adding capacity
    • Group 1 is up 16% YoY through through the first half 
    • #1 Cochran Automotive in the Greater Pittsburgh Area is adding 27k sq ft to expand wholesale parts business
    • Adam Simms, owner of Price Simms in the San Fran Bay Area built a commercial fleet center that is seeing continued growth.  "I'm very bullish on the small commercial fleet business," Simms adds "can't invest enough money" in service and parts

The new EV service game is about training, procedure, critical thinking, and safety as a new battery (pun intended) of testing systems can solve electrical problems and avoid the pinnacle issue that will stop an EV, ‘energetic failure’. 

• Different than ice procedures where there are few ways to get in fast trouble while diagnosing or repairing a vehicle, EVs require extra caution due to extreme voltage at multiple points
• PPE, ABC fire extinguishers guard against shock and small fires, but ignoring thoughtful procedure can lead to electrocution the ominous ‘thermal runway’
  • Thermal runaway is when a battery cell short circuits and heats up leading to a chemical reaction that is near impossible to stop like in this video of parked electric busses 
  • The encasement of battery cells in several layers of aluminum make it difficult to direct suppression at the seat of the fire
• Physical damage is one of the primary causes while overcharging can also be an issue leading us back to proper equipment, procedure, and critical thinking being essential to continue servicing EVs safely
  
  
• In an oxymoronic kind of way, Pop-up retail stores are becoming fixtures of the post pan

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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