The auto industry is no stranger to recalls. Unfortunately, automotive electronic defects are fairly common, and they present challenges for drivers and auto dealers alike.
Recalls in 2016 were up approximately 6% from 2015, from 868 to 927, with over 50 million vehicles recalled in the United States. Honda has had the largest amount of vehicles recalled between 2015 and 2016, with nearly 14 million. Just last month, in November, Honda expanded its list of models that may have received improperly installed Takata airbag inflators. While the exact number of vehicles affected remains undetermined, in recent weeks, fatal consequences associated with the recall have come to the public’s attention.
When an automotive electronics recall occurs, auto dealerships have to invest large amounts of time, energy, and manpower into not only repairing the defective vehicles, but also managing the drivers who are inconvenienced by the recalls. That is why it is crucial during these periods for auto dealerships to hold together service deliverability, in order to remain profitable and ensure both vehicles and drivers are taken care of.
When recalls occur, one major factor for a dealership’s success is its ability to excel in service deliverability. At the dealership level, service deliverability can be defined as a dealership’s capability to provide meaningful actions, such as maintenance and repairs, or managing inconvenienced drivers, which allow end users to get back up and running as quickly and safely as possible.
When service deliverability is employed effectively, auto dealerships can remain successful, even during recalls. Success can be measured by a variety of conversions, including turn time, or the amount of time it takes to get a vehicle in and out, and CSI scores, which use a variety of metrics to derive a value, such as the fairness of charges, friendliness of employees, and the expertise of a multipoint inspection done by a trained specialist.
During automotive electronics recalls, service deliverability is compounded by the amount of additional time, energy, and manpower that dealerships must invest to manage both the vehicles and drivers. For instance, because most recalls require VIN specific orders to repair, there are often shortages in product availability, creating backorders and reducing a dealership’s turn time.
The degree to which dealerships’ capability to deliver services effectively and efficiently is compromised is largely dependant on the scale of recall. The Takata airbag recall, for example, will require much more additional investment at a dealership level in terms of outreach and maintenance than a smaller recall would require.
When recalls occur, dealerships not only have to handle the vehicles and drivers inconvenienced specifically by the recall, but also other regular customers who need repairs and services. During recall periods, resources are stretched thin, and often result in reduced turn times, and, potentially, lower CSI scores for dealerships. Therefore, auto dealerships need to figure out ways to optimize resources, such as time, energy, and manpower, in order to remain successful and hold together strong levels of service deliverability.
In order to maintain strong levels of service deliverability during a recall, it is imperative for auto dealerships to excel in three areas: outreach, accommodation, and repairs. Here are 3 quick tips for auto dealers to help facilitate and optimize service deliverability when an automotive electronics recall occurs.