Stellantis CEO: Microchip shortage damaged relationships between automakers, suppliers

Mahesh Shah explains how increasingly sophisticated data-collection and connectivity technologies will transform the automotive industry, in much the same way that cell phones evolved and revolutionized communications.

Before the pandemic, automakers were already facing disruption, including driverless cars, electric vehicles, and shared mobility. But COVID-19 dealt another blow: Automotive was one of the hardest hit sectors in 2020, especially in the U.S. As the virus accelerated, dealerships were forced to close lots and shift to servicing and selling cars online, while supply chain concerns slowed vehicle production. In the midst of these unprecedented challenges, 118-year-old Ford Motor Company began to reinvent itself. Under the leadership of two new executives — Jim Farley as CEO and Suzy Deering as global CMO — the company saw an opportunity for transformation.

This past year has been a record setter for dealers, who have achieved average profit levels 82 percent higher than the previous six-year average, regardless of franchise or location. As a byproduct of this profitability, many dealers are expanding their operations, or have plans to. If you’re embarking on expansion, it’s critical to implement efficient, scalable systems and processes that can handle increased inputs to hit your goals. Sticking to the same old paper processes and inefficient workflow limits productivity, wastes time and stifles growth. Let’s review a few areas where inefficient processes may be lurking.

Robert Brooks, senior fixed operations product manager at Ally Financial, discusses metrics dealers can use to gauge performance of their fixed ops department, how to retain technicians and how service departments can prepare for an uptick in EV adoption.