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Parts, Service Revenue Up in Q3 for Big Dealer Groups
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revenue for its franchised dealership segment Parts, Traveled report from the Federal Highway Admin.,
Service and Collision Repair category increased to travel on all U.S. roads was an estimated 273.8 bil-
$338.1 million, a 9.9% increase vs. the year-ago lion miles in August 2021, an 8.3% increase vs. the TAKE BUSINESS TO THE NEXT LEVEL
quarter. year-ago month.
“More than anything, there’s been some pick- The dealer groups say in third-quarter reports
up in customer-pay, because people have been that customer-pay work is on the rebound, but de- • Recieve a 3 month credit on your
getting out more,” David Smith, CEO of Sonic Auto- mand for other categories of service work, such as Hosted PBX phone service when you
motive, Charlotte, NC, says in an Oct. 28 phone in- warranty and collision repair, has been slower to • No upfront charges or
terview. “Due to COVID, perhaps some people were recover. sign up
The nation’s six biggest publicly traded, franchised postponing service they needed to have.” Jeff Dyke, president of Sonic Automotive, says
dealer groups report higher parts and service rev- Separately, Penske Automotive Group, Bloom- in an earnings conference call Oct. 28 that within hidden fees
enue for the third quarter vs. the same quarter a field Hills, MI, says much the same thing in its quar- Sonic’s total service business, customer-pay work 3 MONTHS OF FREE HOSTED
year ago. The companies say customers are getting terly report to the Securities and Exchange Commis- for the quarter was up 21%, but warranty work was
service work done that was put off due to the coro- sion. down about 9% year-over-year. That echoes a trend PBX PHONE SERVICE • Find Me Follow me
navirus pandemic. “We believe the same-store increase in service at several of Sonic’s competitors.
As a group, the six dealer groups combined and parts revenue is related to the lifting of many Meanwhile, an ongoing shift to digital tools
report parts and service revenue was about $2.8 COVID-19 restrictions, resulting in increases in ve- for communications, and for organizing dealership How Hosted PBX Takes You To enables mobile usage
billion, up 10.5% in the third quarter vs. a year ago. hicle miles traveled when compared to the third workflow, is also helping boost business in service The Next Level KEY BENEFITS
That’s on a same-store basis. quarter of 2020,” the company says. and parts, dealer groups say.
For Sonic Automotive, for instance, same-store According to the latest monthly Vehicle Miles Source: WardsAuto
• Allow your team to walk the lot • Consistent call quality

International Survey Measures Consumers’ EV Concerns with their phone by turning your cell
phone into your office phone with our • Competitive pricing
As consumer interest in electric vehicles gath- if it were at price parity with internal-combus-
Communicator app
ers momentum, the automotive industry needs to tion-engine vehicles, but at a 25% price premium, • Phone hardware
address concerns about price and charging infra- that share drops to just 10% of consumers.
structure and move toward digital sales models, Alix Partners notes 48% to 86% of moder- • Includes over 30 advanced calling
according to an international survey by consultan- ately likely and very likely BEV buyers (including
cy Alix Partners. 85% of those in the U.S. and 86% in California) features included
The poll of licensed drivers in China, France, said they expect automakers themselves to ensure
Germany, Italy, Japan, the U.K. and the U.S. (with available charging networks – suggesting any cor- • Consistent call quality and reliability
California’s results analyzed separately) finds “BEV porate business plan relying on governments or things as whether price or vehicle range is more • One service provider,
Believers” – those saying they are “very likely” to other third parties alone to ensure access to public important in a given market,” says Arun Kumar, • Competitive pricing compared to
buy or lease a battery-electric vehicle as their next charging is probably unwise. global co-leader of the advanced mobility practice
at AlixPartners and a managing director at the firm. traditional phone lines
car – have on average more than doubled from a The survey found 42% of BEV buyers would one team to support
similar survey AlixPartners conducted in 2019. To- prefer an online sales and ownership experience, “Meanwhile, dealerships should be thinking
day that number stands at 25% globally, up from compared with just 15% unlikely to buy a BEV. hard about their futures starting right now, be it • We handle support for Hosted PBX and
11% two years ago. This could, over time, “represent an existential adopting all-new business models, undertaking data circuits allowing for your IT team your business
Interest in BEVs increased in each market, challenge to in-person dealerships, as well as new, M&A or being involved in consolidation,” he says.
“For everyone involved in any way in this auto in-
with China rising from 34% in 2019 to 50% today. intensified challenges to automakers,” the consul- to focus on other priorities
In the U.S., interest almost quadrupled, from 5% to tancy says. dustry today, the clock is very much ticking.”
19%, while 34% of those polled in California say- “In addition to getting their cost structures The AlixPartners 2021 Electric Vehicles Con- • Free upgrades to new functionality • 24/7 technical support
ing their next vehicle likely will be a BEV, up from better in line with the amounts that consumers sumer Sentiment Survey of 8,124 licensed drivers
9% two years ago. are willing to pay for electric vehicles, automakers 18 and older was conducted Aug. 17-31, 2021. The
countries represented in the survey accounted for
Growing interest in BEVs is tempered by and suppliers need to prioritize markets based CONTACT OUR TEAM TODAY
several potential hurdles facing the auto industry. on significant differences around the world in EV 85% of BEV sales worldwide in 2020.
These include vehicle cost; the survey found 70% interest and customize their product portfolios Source: WardsAuto
of Americans would be interested in buying a BEV accordingly, including taking into account such 855.663.7464 SALES@ONERINGNETWORKS.COM
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