Prepare now for a service lane slowdown
Inventory shortages the past few years will mean fewer vehicles coming to service departments for warranty work and other repairs.
Dealerships rely on new vehicles under warranty to return for service for at least the typical three years of coverage. But with fewer vehicles being sold the past couple years because of chip shortages and kinks in the supply chain, that means fewer vehicles under warranty coming in for maintenance and repairs. Lee Harkins, CEO of dealership training company M5 Management Services, spoke with Senior Editor Dan Shine about why customer retention will be crucial in order to keep the flow of cars — and profits — coming into service departments.