Fixed Ops Friday w/ Bob Keuhl, John Bishop, and Vince McIssac | Daily Dealer Live
About this episode
The discussion centers on the critical role of fixed operations in dealership profitability amidst challenges like technician shortages, tighter margins, and evolving OEM investments. Bob Keele from Ziggler Auto Group shares innovative approaches to recruiting and training technicians through local educational partnerships and internal academies, achieving high retention. The episode also covers shifting used car market dynamics, OEM capital allocation towards EVs and hybrids, Stellantis' financial struggles, and the impact of AI on dealership website traffic and SEO strategies. The conversation highlights the importance of human-led content and strategic fixed ops management to drive dealership value and employee engagement.
Fixed Ops
"And hey everybody, welcome to Fixed Ops Friday. If your service department isn't carrying your dealership right now, you might be doing it wrong."
Fixed Ops means the part of a car dealership that fixes and services cars, like oil changes and repairs, which helps the dealership make money even after selling cars.
Fixed Operations (Fixed Ops) refers to the service and parts departments of a car dealership, which provide ongoing maintenance and repair services, generating steady revenue beyond vehicle sales.
vehicle fleet
"So say industry experts and today's guests. The vehicle fleet is older than ever before."
A vehicle fleet is all the cars and trucks a company or dealership has, which need regular care and fixing.
The vehicle fleet refers to the total number of vehicles owned or managed by a company or dealership, often used in the context of service and maintenance needs.
front-end margins
"Front-end margins are tighter than they've been in years and OEM pressures, well, they're not easing."
Front-end margins mean how much money a dealership makes when selling cars, before making money from fixing or selling parts.
Front-end margins refer to the profit a dealership makes on the sale of new or used vehicles before additional revenue from service or parts.
OEM pressures
"Front-end margins are tighter than they've been in years and OEM pressures, well, they're not easing."
OEM pressures mean the rules and demands car makers put on dealerships about how they sell and fix cars.
OEM pressures refer to the demands and requirements from Original Equipment Manufacturers (car makers) that dealerships must meet, often affecting pricing, parts availability, and service standards.
video MPI
"And some techs need to be re-engaged. Video MPI is sometimes treated"
Video MPI means the mechanic makes a video showing what parts of your car need fixing so you can see it yourself.
Video MPI stands for Video Multi-Point Inspection, a process where technicians record videos of a vehicle's condition to show customers, improving transparency and trust.
used car
"As of last quarter, three-year-old units averaged $30,699 and sat 45 days. That's the slowest fourth quarter turn since 2017. This according to our friends at Edmunds. Meanwhile, current model year used cars quietly became the value leaders."
A used car is a car that someone else owned before you. It usually costs less than a brand new car because it's older and has been driven before.
A used car is a vehicle that has had one or more previous owners. Used cars typically sell for less than new cars and their value depends on factors like age, mileage, and condition.
current model year used vehicles
"Meanwhile, current model year used cars quietly became the value leaders. 2025 model year used vehicles sold for about $6,370 less than their new equivalents and they made up roughly one in every 12 used sales."
These are cars that are almost brand new but have already been sold to someone else. They usually cost less than brand new cars but still look and drive like new.
Current model year used vehicles are cars that are from the most recent model year but are already sold as used, often with very low mileage. They tend to offer significant discounts compared to new cars of the same model year.
mileage
"That's a high ratio, but mileage is doing the real work here. About 60% of current model year used units sold had under 10,000 miles. Once mileage pushed past 15,000, discounts widened to 10 grand or more."
Mileage means how far a car has been driven. Cars that have been driven less usually cost more because they have less wear and tear.
Mileage refers to the total distance a vehicle has been driven, usually measured in miles. It is a key factor in determining a used car's value and condition.
near new category
"That spread is what makes the near new category compelling if it's merchandise correctly. What's the bottom line here? Well, the used car quote unquote sweet"
Near new cars are used cars that are almost like new because they haven't been driven much and are very recent models. They often cost less than brand new cars but still look and feel new.
The near new category refers to used vehicles that are very recent model years with low mileage, often offering a good balance of value and condition compared to brand new cars.
capital spending (cap spending)
"developing projects and investments amounting to a billion or more. Now account for 43% of all cap spending and that's up 18% from a decade ago."
Capital spending is the money car companies spend to build new factories or make new cars.
Capital spending refers to the money companies invest in long-term assets like factories, equipment, or new vehicle platforms.
next gen platforms
"directed towards next gen platforms, including battery electric vehicles, hybrid and advanced battery manufacturing and large scale retooling of"
Next gen platforms are the new ways car companies build cars to include things like electric batteries and better parts.
Next generation platforms are new vehicle architectures designed to support advanced technologies like electric drivetrains and improved manufacturing processes.
hybrid
"including battery electric vehicles, hybrid and advanced battery manufacturing and large scale retooling of"
Hybrids are cars that use both gas and electricity to save fuel and pollute less.
Hybrid vehicles combine an internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions.
battery electric vehicles
"including battery electric vehicles, hybrid and advanced battery manufacturing and large scale retooling of"
Battery electric vehicles are cars that run only on electricity from batteries, not gas.
Battery electric vehicles (BEVs) are cars powered entirely by electricity stored in rechargeable batteries, with no internal combustion engine.
internal combustion engine
"existing internal combustion engine plants. However, the availability of skilled labor permitting speed and whether a region can actually scale infrastructure are the limiting factors."
An internal combustion engine is the kind of engine that burns fuel inside the car to make it go. It's what most cars have used for a long time before electric cars became popular.
An internal combustion engine (ICE) is a heat engine where the combustion of fuel occurs with an oxidizer in a combustion chamber, producing power to move the vehicle. It is the traditional engine type used in most cars before the rise of electric vehicles.
Stellantis
"Speaking of revenue and other automaker news, Stellantis posted a, get this, $26.2 billion net loss for 2025, including $23.8 billion in the second half alone,"
Stellantis is a big company that makes cars. It was created when two car companies joined together and now owns many well-known car brands.
Stellantis is a multinational automotive manufacturing corporation formed in 2021 by the merger of Fiat Chrysler Automobiles and PSA Group. It owns many popular brands including Jeep, Ram, Dodge, Peugeot, and Fiat.
EV investments
"Much of the financial hit stems from pulling back on EV investments and the losses wiped out U.S. profit sharing for union workers for the first time in 15 years."
EV investments mean the money car companies spend to make electric cars and the parts they need. It's important because electric cars work differently than regular gas cars.
EV investments refer to the financial resources automakers allocate to develop electric vehicles (EVs), including research, development, manufacturing, and infrastructure. These investments are critical for transitioning from traditional internal combustion engines to electric powertrains.
Jeep Cherokee
"...North American orders and the return of the Jeep Cherokee now back in Mexico production. On top of that, R..."
The Jeep Cherokee is a smaller SUV that can drive well both on regular roads and rough paths. It's being made again in Mexico and sold in North America, showing that many people still want this kind of car. It's popular because it’s good for everyday use and adventures.
The Jeep Cherokee is a compact SUV known for its off-road capability and comfortable ride. The mention of its return to production in Mexico and its presence in North American markets indicates its ongoing relevance and demand. This model is often discussed in the context of Jeep's global production strategy and market availability.
Ford F150
"what they have already and start by fixing that foundation instead of getting distracted by every shiny new AI toy. Buyers are moving away from keyword searches like quote F-150 near me and they're opting for conversational prompts asking AI which vehicle better fits their lifestyle."
The Ford F-150 is a very popular big truck that many people use for work and daily driving because it's tough and reliable. People are talking about it because instead of chasing new fancy gadgets, they want to fix and improve what they already have. So, the F-150 is seen as a solid choice that doesn’t need every new feature to be useful.
The Ford F-150 is a full-size pickup truck known for its durability, versatility, and strong sales in the North American market. It is often discussed due to its role as a foundational vehicle for many buyers who prioritize reliability and utility over the latest tech trends. The mention highlights a shift in consumer focus from flashy new features to improving existing, proven models.
repair orders
"and then also bring back a minimum of 10 repair orders that they worked on and worked on that specific area of the vehicle."
A repair order is like a work ticket that shows what fixes or maintenance a car needs or has had. It helps the shop keep track of the work done on a car.
Repair orders are documents used in automotive service shops that detail the work requested, performed, and parts used on a vehicle during maintenance or repair. They help track the service history and ensure accountability.
NASCAR
"not everybody in automotive gets to do, is we get to go to NASCAR races and it's cool as heck to be able to be there whether it's Daytona, whether it's Atlanta, wherever..."
NASCAR is a type of car racing where drivers race specially built cars on oval tracks at very high speeds. It's very popular in the US and has many fans.
NASCAR is a popular American motorsport series featuring stock car racing, known for high-speed oval track races and a passionate fan base.
Daytona
"Anyone who was watching Daytona, it was a heartbreak into the final lap, white flag."
Daytona is a big race track where important car races happen, especially NASCAR races that many people watch.
Daytona refers to the Daytona International Speedway, a famous racing track in Florida known for hosting major motorsport events like the Daytona 500 NASCAR race.
service departments
""...how critical in 2026 service departments are across the nation. They're the lifeblood of a car dealership...""
Service departments are the part of a car dealership where you take your car to get fixed or maintained, like oil changes or repairs.
Service departments in car dealerships handle vehicle maintenance and repairs, playing a crucial role in customer retention and dealership profitability.
CSI
"...effective labor rate, CSI, which is the big one with advisors, and we celebrate our President's Circle..."
CSI means how happy customers are with the people fixing their cars or helping them at the service center.
CSI stands for Customer Satisfaction Index, a metric used by automotive service departments to measure customer satisfaction with service advisors and technicians.
Cadillac ELR
"...ind of our last topic we'll hit today is raising ELR. Talk to us about what is ELR? Why is it an impor..."
The Cadillac ELR is a fancy car that uses both gas and electricity to help save fuel and reduce pollution. It was made for a few years and is special because it tries to be both powerful and better for the environment. People talk about it because it shows how Cadillac started making greener cars.
The Cadillac ELR is a luxury plug-in hybrid coupe that was produced between 2014 and 2016, combining electric and gasoline power for improved fuel efficiency. It is significant as Cadillac's attempt to enter the eco-friendly luxury market, though it had limited sales due to its high price and niche appeal. Discussions about the ELR often focus on its technology and its place in Cadillac's electrification history.
Cox Automotive
"So Cox Automotive recently came out and said, fixed ops is one of the biggest opportunity points in automotive in 2026."
Cox Automotive is a big company that helps car dealers and makers by giving them information and tools to sell and service cars better.
Cox Automotive is a large automotive services company that provides data, software, and services to dealerships and manufacturers. They offer market insights and analytics for the automotive industry.
aftermarket
"The aftermarket guys are always nipping at our heels and they are, they're always out there looking to take some of our business."
Aftermarket means parts or services for your car that come from companies other than the car maker, usually used to fix or upgrade your car after you buy it.
The aftermarket refers to the market for vehicle parts, accessories, and services provided after the original sale of the vehicle, often by third-party companies rather than the original manufacturer.
multi point inspection
"doing a solid multi point inspection, telling them what is going on with their vehicle and offering solutions when they have problems."
A multi point inspection is when a mechanic checks many important parts of your car to make sure everything is working well and to find any problems early.
A multi point inspection is a thorough check of a vehicle's key systems and components to identify any current or potential issues, often performed during routine maintenance visits.
Volkswagen
"...service director Volkswagen of Clarksville, Indiana, John Bishop. John, welcome to the show..."
Volkswagen is a big car company from Germany that makes many types of cars. You might have seen popular models like the Golf or Passat.
Volkswagen is a major German automotive manufacturer known for producing a wide range of vehicles, from compact cars to SUVs. It is recognized globally for models like the Golf, Passat, and Tiguan.
OEM repair facilities
"We're seeing a lot of defection to non OEM repair facilities, places like Jiffy Loop for basic services and whatnot."
OEM repair places are official shops that fix your car using parts made by the car's maker, so your car stays like it was originally.
OEM repair facilities are authorized service centers that use Original Equipment Manufacturer parts and follow manufacturer guidelines for vehicle repairs and maintenance.
KPI
""Stop looking at the numbers and the KPIs and focus on the customers. Do they feel value when they're here?""
KPI means a way to measure how well a business or team is doing at important tasks. In a car service shop, it helps see if things are going well or need fixing.
KPI stands for Key Performance Indicator, which is a measurable value used by businesses, including automotive service departments, to evaluate how effectively they are achieving key objectives.
effective labor rate
""What do you think is the most misunderstood or overvalued KPI in a service department this year? Effective labor rate. Okay. You're against effective ELR. Okay. Yeah. I mean, hands down.""
Effective labor rate is how much money a car shop makes on average for each hour of work they sell. It helps them see if they're charging and working well.
Effective labor rate is a metric used in automotive service departments to measure the average revenue earned per hour of labor sold, reflecting both labor rates and efficiency.
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