Meanwhile, dealer PM work is up

Motor, Sep 2003 by Nash, Tom

Quality improvements across the automotive industry are driving down the need for warranty repairs at dealerships, transforming the nature of the dealer service business.

According to the J.D. Power and Associates 2003 Customer Service Index (CSI) Study released recently, the balance of work at dealerships is tilting more toward regular scheduled maintenance as opposed to repairs. The mix of routine maintenance business has increased from 47% in 1999 to 57% in 2003.

"Less warranty work means that automakers are taking cost out of their products through quality improvements," said Joe Ivers, partner and executive director of quality/customer satisfaction at J.D. Power and Associates. "To replace this declining revenue, dealers must now compete with other service providers, such as independent service facilities, for customer-paid service business, making them more accountable to their customers."