Volvo provides free kits to relieve debt burden for new techs
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December 13, 2020 07:00 PM

Volvo provides free kits to relieve debt burden for new techs

Alex Kwanten
Fixed Ops Journal
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    Reimbursement for tuition is a more common incentive, but Volvo found tool debt was a significant problem. “It’s a real barrier to entry,” says Scott Doering, Volvo’s vice president of customer service.

    Volvo hopes to recruit 225 new technicians by 2023, and the need is urgent.

    The automaker has 1,765 active techs, but "they're starting to retire, putting extra pressure on us," says Scott Doering, Volvo's vice president of customer service.

    To help with recruiting, the automaker launched its Volvo Technician Tool Program in August. New techs are given access to a 72-piece set of tools used in 80 to 85 percent of tasks. Volvo and individual dealerships split the $4,700 cost.

    Tools of the trade

    Volvo has 1,765 active techs and hopes to hire 225 new ones by 2023. In August, the brand launched the Volvo Technician Tool Program to help with recruiting. The program at a glance:

    • Provides techs free access to a 72-piece set of tools
    • $4,700 cost is split between Volvo and the dealership
    • Potential cost savings to techs is about $20,000
    • Techs get access to tools for as long as they work at dealership
    • Dealership maintains set and replaces worn-out pieces

    While tuition reimbursement and other incentives are more common, Doering says conversations with dealers and officials at Universal Technical Institute, the automaker's primary technician training partner, convinced Volvo that tool debt was a significant issue for new techs.

    "When we discussed admissions challenges, they were very clear. The cost of education is one thing, but then we ask students to take on this tool burden," Doering says. "It's a real barrier to entry."

    The set isn't owned by the technician, but access is free as long as they work at their dealership, which is responsible for maintaining and replacing worn-out pieces. Volvo estimates the set can save techs up to $20,000 over the course of their tenure with a single store. Volvo says its techs average 11 years at each dealership where they work and 24 years with the company, five above the national average, according to Carlisle & Co.

    Enterprising dealers have offered some tool cost assistance over the years, but it's rare for automakers to help directly. Denver's Rickenbaugh Auto Group previously provided discounted tools but found Volvo's solution better for everyone.

    Even though there's an evaluation period for techs, Rickenbaugh Vice President Nick Pacifico says the dealership plans to let them keep the tools. "We're making an investment in training that individual through their career path so that they never have a reason to leave," he says.

    The tool program, Pacifico says, helps create loyalty. "It says that the brand actually cares about the technician."

    This, Pacifico says, can make a difference in winning over a student who may also be looking at programs from other manufacturers.

    Only Fiat Chrysler Automobiles currently offers a similar "toolbox" as part of its training programs, though Ford offered a similar program in 2019. A spokesperson told Fixed Ops Journal that Ford is looking into reviving its tool kit program. Other manufacturers offer less structured allowances, which may or may not be used for tools.

    Bob Bauman, director of the automotive technology program at Gwinnett Technical College in Lawrenceville, Ga., says many dealership partners provide some sort of tool assistance, and the school partners with Snap-on for student discounts. Still, more direct manufacturer assistance would be welcome.

    "When parents see the cost of tools, it's like throwing cold water on things," Bauman says. "If we can show them these incentives, it's going to get students into our programs and keep them going."

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