Since its inception, Metalia has been involved with the production and design of storage solutions for service bays and mechanical maintenance areas.

But the Chambly, Que.-based company has launched a new heavy-duty workstation that isn’t just durable — it also looks good.

Pierre-Olivier Benoit from Metalia’s marketing department said the thinking behind the new WRS workstation series is to keep the workspace as clean, efficient and organized as possible, with the end goal of having a service department that looks good and can be shown to customers.

One notable aspect of this new WRS series is the surprising weight capacity of the drawers: almost 200 kgs (440 lbs), 10 per cent higher than the industry standard.

One notable aspect of this new WRS series is the surprising weight capacity of the drawers: almost 200 kgs (440 lbs), 10 per cent higher than the industry standard.

Other key details include a new, patented, aluminum handle design which incorporates a digital lock; full height drawer sidewalls; an eight digit code digital locking system offering keyless benefits; rolled edge drawer faces and the possibility of incorporating efficient lighting for work surfaces and inside drawers.

As part of this big launch, a fully redesigned website is in the works. It features web-based 3D configuration tools that allow customers to tailor specifications and visualize their own installation.

The company has also recently opened a production plant in Mexico that will give the company a strong competitive advantage in the Mexican and Southern U.S. markets.

But much of the final assembly work remains in Canada, offering Metalia and its customers the best of both worlds.

The post Super station! appeared first on Canadian Auto Dealer.

That’s newsworthy, partly because the brand carries a strong image. But in reality, this is just one more vehicle being added to the now lengthy list of models that are either fully electric or use some form of electrified powertrain.

Add to this all of the new technologies available in our vehicles, and it becomes clear that service departments need to get up to speed with the new service and repairs required for these technologies.

Manufacturers are offering special training to keep up with specific repairs and general maintenance for each model, but does your team fully understand how these technologies work?

Your technicians have a good understanding of how a gas engine works and the basics of how to change an ECU, but electronic components are a whole different story. It’s tough to describe the necessary repairs if they sound like a foreign language.

In this new age of electronics, guesswork is costly — both for the dealership and for the customer.

When it comes to technicians, ensuring new hires have a strong understanding of electricity and electronics is now essential, while extra training for your current team is going to become an ongoing requirement.

Don’t wait for your OEM to come up with a solution. You need to take the lead and get ready now.

These new vehicles are not revolutionary, but they do represent a technical evolution that requires an extra set of skills.

In mid-November, Scott Keogh, Audi of America President, announced the company’s commitment to achieve at least 25 per cent of U.S. sales from electric vehicles by 2025.

This also rings true for Canada, and many insiders I have spoken with say they are committed to making those targets or even setting the bar higher.

It is up to you to make sure your dealership is ready at all levels.

The post Electrify your team! appeared first on Canadian Auto Dealer.

The Internet has opened up endless possibilities for leads.

But that doesn’t mean digital has replaced some more traditional sources — like the telephone.
A phone lead is still a lead.

When the phone rings, dealers need to be prepared to answer.

According to recent studies, most dealers will identify themselves properly on the phone around 70 per cent of the time. But they only have a 30 per cent chance of getting customers back on the phone a second time.

Maggie Gormley, who handled marketing with Dominion Enterprises, said it best: “If you are not answering their questions immediately, you can almost guarantee the prospect is calling a different dealership after they hang up.” It’s also an issue for the service department.

CallSource Automotive did a study early in 2015 which analyzed data across 2,464 phone calls. The research identified six key behaviours that, when successfully performed, were crucial in increasing service call-to appointment ratios.

“We were surprised that in nearly 30 per cent of the calls, key, obvious actions were not implemented by service department call handlers,” said Andrew Price, President of CallSource Automotive. This study is a wake up call for dealers into the state of automotive service department call handling, and we hope this insight will be used by dealers to immediately improve their call-to-appointment ratios.”

The CallSource research also found on average 20 per cent of incoming service calls are mishandled at the dealership, usually resulting in the customer taking their business to a competing store.

All this leads to the importance of having a team equipped with the right tools.

“The phone is essential to a dealership’s bottom line,” said Daniel Racine, General Director of Quebec-based Activix, which specializes in automotive phone and email contact management.

“Dealership personnel need to be active and dynamic on the phone and can’t simply wait for a walk-in. They also need to be proactive in calling back quickly, calling back often and calling previous customers,” said Racine.

But first, dealers need to know how to handle phone calls. That involves training.

“Some companies offer training that includes pre-written scripts, but we prefer to focus on the items that need to be addressed and let the sales or service person say it in their own natural way,” said Racine.

“This allows the personality to shine through and results in a more efficient phone conversation. But first of all, the dealer needs to track and measure the team’s performance and then make sure coaching happens for the weaker areas.”

Racine said dealer principals and general managers should have access to a phone tracking system that measures phone call performance. “This will help identify who needs coaching in which areas, but will also help prioritize who should receive which phone calls,” said Racine.

Most studies also show that call volume is now outpacing Internet leads, with a ratio going up to four to one in some studies.

“The message is clear: consumers want the immediate gratification of a phone call — but, sadly, at least 40 per cent of those callers aren’t getting any kind of gratification when dialing a typical dealership,” said Price.

“A situation that is costing dealerships as much as $44,000 in lost revenues every month.”

The post Ringing off the hook appeared first on Canadian Auto Dealer.

CASTROL HAS DEVELOPED

The system is called Nexcel, and it allows a vehicle’s oil to be changed in around 90 seconds. That’s more than 13 times faster than a conventional 20 minutes oil change.

Oil cells are collected after use, avoiding waste from used oil, said Castrol. This oil can then be re-refined into high-quality lubricants, added the company.

The Aston Martin Vulcan track-only supercar will be the first vehicle to feature Nexcel technology. Castrol expects vehicles equipped with the Nexcel system to go into production within five years.

“We believe this is the biggest leap forward in oil change technology in the history of the combustion engine,” said Paul Waterman, CEO of Castrol, in a written release.

“Castrol’s engineers are leaders in their field and have come up with a really innovative piece of technology. It’s the result of almost three years’ work but as soon as people see the benefits in emissions and servicing as well as the substantial environmental benefits, they will ask why it hasn’t been done before,” Waterman added.

Castrol said the Nexcel system has been tested on a range of engines, from small city cars to cutting-edge high powered racing engines, in the most extreme of conditions. The technology functioned smoothly even under severe braking.
Additionally, the system’s oil flow has been tested up to 600 litres a minute — 10 to 20 times more flow than seen in a conventional passenger car engine.

Castrol said it’s currently in discussions with several other vehicle manufacturers about the new product.

The post Castrol develops new oil technology appeared first on Canadian Auto Dealer.

This provides assurance that the program conforms to vehicle lift safety standards currently in place and all conformity assessment requirements for bodies certifying products, processes and services, according to ALI.

The accreditation is the result of a detailed analysis and evaluation by ANSI auditors that examined the Lift Inspector Certification Program’s materials and processes, as well as ALI’s policies and procedures.

The ALI Lift Inspector Certification Program qualifies and certifies inspectors who demonstrate they are capable of properly inspecting any type of vehicle lift.

Since the program was launched in the fourth quarter of 2012, more than 350 inspectors have earned certification. More than 400 additional inspectors are said to be currently working their way toward certification, according to ALI.

The Lift Inspector Certification Program is the second ALI initiative to be accredited by ANSI. The Lift Certification Program earned accreditation in 2001, and it continues to be regularly evaluated by ANSI. Both accreditations are valid in Canada and in the U.S.

The post ALI program earns accreditation appeared first on Canadian Auto Dealer.

VEHICLE LIFTS

With this in mind, Rotary Lift put together a list of essential safety tips for lift buyers and operators:

1. Take Automotive Lift Institute (ALI) the online Lifting It Right course. Once purchased, technicians can complete this lift safety training class online at any time within 90 days.

2. Train every technician on the proper operation of all the lifts in your facility.

3. Perform daily safety inspections before using any lift.

4. Have your lifts inspected annually by an ALI Certified Lift Inspector.

5. When buying a new lift, always look for the gold ALI lift certification label. It’s proof the lift has been independently tested and ALI-certified to meet industry safety and performance standards.

6. Make sure the lift’s locks are engaged before starting vehicle service.

7. Always match the vehicle and job to be performed with the appropriate lift.

8. Use jack stands when removing heavy components. Removing heavy parts can cause the vehicle’s centre of gravity to shift, and may make it unstable.

9. Use a wheel lift to prevent back strain when removing and installing heavy wheels.

10. Insist on OEM replacement parts when maintaining your lift.

The post Safe lift appeared first on Canadian Auto Dealer.

Since 1946, Hunter Engineering Equipment has come up with new ways to improve service bays for dealers.

“The core business of Hunter is alignment, alignments lift racks, tire changers, wheel balancers and vehicle inspection systems,” said John Peron, Director of Canadian Operations for Hunter Engineering Equipment.

To amp up its Canadian operations, Peron said Hunter opened a new state-of-the-art facility in Aurora, Ont. about 14 months ago.

Previously based out of Newmarket, Ont. in a 15, 000 sq.ft. building, Hunter now has access to over 45,000 sq.ft. of space, including warehouse and offices, along with a training facility.

Set up as a working training centre, the area allows up to 20 students to be work with the tools, and can hold up to 75 people in a special media conference and classroom.

Part of the training centre is an area Peron is proud of: the Power Bay.

This section showcases every type of tool offered by Hunter. It’s linked to a waiting room, replicating a dealership’s full service bay, with an adjoining customer service area.

This setup opens up efficient training possibilities, said Peron.

He added Hunter’s partners and customers can use the media conference and classroom for their own meetings, with or without the company present.

“We believe in partnerships as in helping our partners in any way we can,” said Peron. “Giving them access to our top-notch facilities is one of many ways we are happy to help.”

These new installations mean Hunter’s Canadian division can now provide training in Aurora, rather than share the main corporate facilities located at the company’s headquarters in St. Louis, Mo.

While the new facilities are exciting, Peron is most passionate about the inspections equipment that’s become popular with dealerships.

“These inspection racks allow a service department to highlight in less than three minutes the state of a vehicle’s brakes, tires, alignment and regulatory safety items like head or tail lights,” said Peron.

“All this while the car enters for a simple oil change. This allows a good and fruitful conversation between the service advisor and the customer.”

For Peron, all of Hunter’s solutions are about providing quality tools, servicing the customer quickly, and supporting dealerships.

“To this effect, the company has a four-48 policy,” said Peron. “If a problem occurs, we will be on site to assess the problem within four hours and guarantee the equipment will be back up and running in less than 48 hours. To do so, our service representatives carry inventory in their trucks and we have over a million dollars worth of inventory in our warehouse, ready to ship.”

The post Poised for growth appeared first on Canadian Auto Dealer.

Fixed-ops. A term used to refer to an aspect of the dealership many do not seem to understand. Isn’t a dealership’s primary role to sell, whether it’s product or service?

The truth of the matter is there is a lot of selling happening on the fixed ops side. It shouldn’t be a secret anymore that profit margins in this area of the dealership are nothing to be sneezed at.

We believe at Canadian auto dealer it’s time to shed more light on this important profit centre, hence this section of the magazine.

Yes, tools will be part of the mix.
This will include the physical tools found in the tool chest, the tool chest itself and also management tools every fixed ops manager and dealer principal needs to help make this department run smoothly. I love fixed ops and have an affinity for the service side of the business. I still have grease under my fingernails from spending time under vehicles.

Most of all this renewed section will aim to provide tips on how to run your fixed-ops smoothly, and it will have a look at management tools and best practices that could help you get the most out of this department. And yes, we will throw a wrench in there once in awhile.

Feel free to contact me directly if you think of aspects you need us to cover, tips on how to run fixed ops efficiently that you wish to share, or if you just want to say hello.

The post At your service appeared first on Canadian Auto Dealer.

It’s been a great year for certified pre-owned (CPO) sales for many dealerships. OEMs are also reporting steady increases in CPO sales.

In a conference call, AutoCanada’s President and Chief Executive Officer, Tom Orysiuk, said he sees great growth in the Canadian used market.

“The used market is something long-term that is going to improve in Canada, and it’s going to be a good opportunity for the entire dealer body,” said Orysiuk. “It will be something that will gradually build over the next couple of years.”

This growth means that managing this side of the business is becoming even more important.

NOT BEING SHY ABOUT CPO
Canadian auto dealer caught up with Brad Dickerson and David Wilke of LGM Financial Services (LGM) to get their take on how dealers can better manage their CPO inventory.

“Vehicles need to be prepared, cleaned, reconditioned and ready to sell as CPO units upfront,” said David Wilke, LGM’s manager, national training. “It may be a used vehicle, but it is seen as a new one for the customer and dealers need to present it as such!”

First impressions count, and this also rings true with cars. “Speaking of first impressions, dealers need to make sure vehicles are seen and identified as such,” said Brad Dickerson, LGM’s manager, OEM relationships. “This includes proper signage across the dealership, accessible information, window tags, window vehicle description and point of sale material,” he said.

“Customers need to be able to identify right away which inventory is certified as CPO and what it entails. We have seen the best successes with CPO when a culture of proper presentation is established in the dealership.”

Vehicles must be prepared, cleaned, reconditioned and ready to sell as CPO units upfront. It may be a used vehicle, but it is seen as a new one for the customer and dealers need to present it as such.

The CPO push has to be throughout the organization and not just in the sales ranks. “Every dealership employee needs to buy into it,” said Wilke. “And it is always best when everything pertaining to the CPO unit is shown right from the start, allowing customers to understand the value that comes with this CPO certification.”

FINDING POTENTIAL UNITS
The presentation of these CPO units is important, but a lot needs to be done before the dealership even has a unit ready on the lot — and this applies to regular used inventory, as well as for CPO. Dealerships need to have a solid sourcing strategy and a fast and efficient way to handle the units once they reach the dealership.

“Call-in trade-ins between stores if you are part of a dealership group,” suggests Wilke. “This will allow you to have an edge and first dibs on quality vehicles that have potential. Whether you are part of a dealer group or not, build relationships with other dealerships in your area; having access first to vehicles of your brand they took on trade-ins will save you the wholesale or auction steps, saving your dealership both time and money.”

Getting great units to build your CPO inventory can pay big dividends, and this might cost a little more. “Whether they come from your neighbouring dealership or a straight trade-in, the little bit extra you offer will be more than compensated by the profit you will make off a good unit,” said Wilke.

WORKING TOGETHER
To maximize your profits, you need to turn the vehicles more quickly, and that means getting the service department to see this as a priority, too.

“We unfortunately see too often in-fights between the service department and the used sales manager,” said Dickerson. “Developing a beneficial relationship between service and sales is mandatory for success in used sales. Service needs to realize that the used department is its best customer and they need to work hand in hand to get units ready for sale promptly. Of course, paying customers are paramount, but overly long waiting times for used units to be ready for sale can’t happen.”

And reconditioning costs also need to be kept in check. Service need to do what’s needed on the vehicle, but they shouldn’t be viewing this as an opportunity to boost service hours and revenues. “Service needs to understand that the list of items to inspect in order to certify a CPO vehicle as such is just that, an inspection list — not a shopping list,” said Wilke.

“Pay plans need to address this situation,” said Wilke. “We see great results where dealer principals have integrated some form of profitability sharing between service and sales for used units, which helps both sides understand the needs of the other.”

To maximize your profits, you need to turn the vehicles more quickly, and that means getting the service department to see this as a priority, too.

AS ALWAYS, TURNOVER IS IMPORTANT
No dealer principal likes to see a high turnover of its employees, but the opposite is true for inventory.

“The priority should be to take care of a unit and get it ready for sale within 48 hours of reaching the dealership,” said Wilke. “This includes cleaning, reconditioning and properly marketing the vehicle on the websites the dealership deals with, not forgetting the manufacturer’s CPO site if your specific brand has one.”

The post Hidden Gems appeared first on Canadian Auto Dealer.

Dealers are always looking to learn about the ways they can improve their business. New technologies and forums have made it easier for dealers to communicate with one another. They can listen to other dealers speak at industry events or network in informal settings.

But for those dealers who want to make it to the top, a performance group remains a viable option.

Behind closed doors, a group of dealer principals meet on a regular basis to assess their dealership’s performance based on hard data and other variables. They can talk freely about any issues, learn from others on how to overcome them, or offer expertise where they do well.

Chris Bolger knows performance or dealer 20 groups well. Now Tricor Automotive Group’s Vice-President of Special Projects, Bolger led performance groups for 18 years with Performance Incorporated through CDK Global.

While Bolger is no longer involved with these groups, he continues to be a strong advocate for them.

When these sessions were first formed, the pricing model was based on a flat fee for the group, so it was figured that grouping 20 dealers together to share the fee would be cost effective. That’s how the name dealer 20 groups came about.

But performance groups have evolved over time, and today, the fee-based structure is most often a flat monthly fee charged per dealership. Today, the group size has also shrunk.

According to Bolger, the ideal size for such a group is between 12 and 14 dealers. “This size allows for great exchanges between participants, but also allows a diverse knowledge base around the table, helping drive great results,” said Bolger.

“I have seen a trend in the last few years towards smaller groups of four or five dealers, but with dealer principals coming to these meetings with a few managers, for a total discussion group of 15 to 16 people. This also works fairly well.”

Once dealers are in one of the groups, the first thing to do is “get naked!” said Bolger. “It may scare a few, but it is important that each participant share their actual financial situation,” he added.

“You may think you are doing well in one area, but are actually mediocre, while you may struggle in another area and realize your results are better than those of other participants. This brings in a lot of beneficial exchanges, often exchanges that would never have been sparked electronically,” said Bolger.

Bolger added it’s important to group similar information on a comparison sheet so that dealers can get a full understanding of where they stand in a particular segment against their peers.

Being part of the group isn’t limited to a day or two of meetings, said Bolger. Some of the best dealers have been part of groups for years, he added.

Dealer principals have to be ready to learn from others, but also share and open up about what and how they handle things so others can either benefit from the info or suggest solutions that work for them.

Bolger said dealer principals should be networking and developing relationships with their fellow dealers on a regular basis, and feel comfortable consulting with each other when needed.

But these groups aren’t for everybody, said Bolger. “I have observed, and this rings true in many other facets of life, that roughly 20 per cent of dealers are individuals who learn quickly by themselves are usually found at the top,” he said. “Another 10 to 20 per cent are simply stuck in their own ways and will never improve, or if they do, it is very slowly or painfully. The 60 per cent in-between and the top 20 per cent will realistically benefit from performance groups and should seriously consider joining one.”

In order to get the most out of performance groups, Bolger said dealers need to set their egos aside.

“Dealers need to understand they do not have all the answers and can only improve if they are willing to show what is really happening with their business. Dealer principals have to be ready to learn from others, but also share and open up about what and how they handle things so others can either benefit from the info or suggest solutions that work for them,” said Bolger.

The post Reach for the top appeared first on Canadian Auto Dealer.

PAYMENT PROCESSING or merchant services is crucial to a dealership’s daily operations, yet it can cause a huge headache to manage.

But Merchant Broker said it can take away some of that stress.

“We realized various businesses did not fully understand how merchant services work and the options available,” said Alexander Taskey, Executive Director and one of the founding members of this Canadian company, “so we created our brokerage firm with the goal of educating and counseling our customers while offering access to all major providers of merchant services.”

Taskey said the company has created a win-win formal qualification process that allows payment processors to bid for a dealer’s business weighing price, service contracts, product offerings, compliance and security.

“Our role is not a hard selling one like other calls you may frequently get. We are much different and unbiased to which provider suits your needs best. We work with you,” said Taskey. “Our main objective is to find the proper merchant services provider for the business.”

The company has created a win-win formal qualification process that allows payment processors to bid for a dealer’s business weighing price, service contracts, product offerings, compliance and security.

To do this, Taskey said Merchant Broker holds a discovery meeting in which the company wades through a list of questions with the dealer, weighs all of the pros and cons of the existing relationship, and then picks the option that makes the most operational and financial sense.

“As advisors, 75 per cent of our role is education,” said Taskey. “Once a solution is selected, we manage the implementation and act as ongoing advisors as needed by the dealership.”

Operating in a highly regulated industry, Taskey said he makes sure all of his employees are certified payment professionals.

That also means each new employee spends a minimum two week training period with Taskey to become a full-fledged team member. “We don’t just hire anybody that needs a job,” he added.

The cost structure works just like that of an insurance broker, said Taskey. “Merchant Broker is paid by the processor company, meaning there is no fee for the dealership. On the other hand, we help dealerships lower their yearly credit card processing fees by five to 45 per cent.”

Merchant Broker will also follow strict compliance standards.

“The information provided to us by businesses is confidential and the financial information being handled by dealerships during a transaction is also highly confidential. We make sure every aspect is handled following the highest compliance standards,” said Taskey.

The post Merchant services management appeared first on Canadian Auto Dealer.

In most Canadian dealerships, the sales department is focused exclusively on its own performance. The same is true on the service side.

From the outside, it often looks like two separate businesses are sharing a roof and a name, but nothing else.

This becomes really problematic when the sales and service departments fight or plot against one another.

Some dealer principals and general managers have been living with this dynamic for so long they accept it as is.

But other dealerships around the world find ways to integrate the two departments.

In some Australian dealerships, for example, a single contact person inside the dealership is responsible for sales, parts and service, and for helping bridge the divide between them.

That way, customers become accustomed to working with an individual at the dealership and can develop greater trust with the business. This approach can benefit the customer and the dealership as a whole.

One dealership in Belgium takes a more consultative approach. The Mons Automobiles S.A. dealership follows a traditional sales and service department that’s similar to Canada, but the dynamic between the departments is different.

At this dealership, a salesperson and service advisor would meet together with the customer on a regular basis. After these meetings, the sales and service departments would walk away knowing the customer’s financial situation and any service requirements that might be needed over the foreseeable future.

This approach helps to educate the customer and also establish trust. In some cases, these meetings led to vehicles being sold four to six months in advance.

Can we adopt a similar attitude in Canada? It’s not so simple.

Mark O’Brien, Senior Director of Dealer Solutions at Dealertrack Canada, identifies some of the biggest problems with how traditional dealerships are run in Canada.

“One issue is the siloing of the sales/service departments, and how compensation is paid to each. And as much as the dealership might wish differently, the first instinct is always to follow the compensation plan,” said O’Brien.

For O’Brien, fostering a better relationship between the two departments starts with a simple vehicle appraisal.

“There is no dispute that sales should turn the customer over to service post purchase. Once the service burden on the customer becomes too much, the service should turn that customer back over to sales,” says O’Brien.

Some dealerships are trying to do this with the aid of data mining tools that draw information from the Dealership Management System (DMS) and calculate equity on the customer’s existing vehicle based on the equity position.

A simple and efficient appraisal process can also play a key role. An electronic appraisal or app can streamline the appraisal, said O’Brien. He says Dealertrack Canada’s Inventory+ tool has mobile capabilities that can perform complete appraisals in seconds.

One best practice which can be effective is if the dealer attaches an appraisal value for the customer’s vehicle to the service work order when the customer picks up their car.

“Imagine a customer that doesn’t want to trade their car, but is surprised by the valuation,” says O’Brien. “This can put them back in the cycle faster.” The sales and service departments now have an incentive to work together, he added.

There’s still a lot of work to be done for sales and service to exist in harmony, but some of the new technologies that provide greater visibility into the owner’s situation can help narrow the divide.

The post The great divide appeared first on Canadian Auto Dealer.