Fixed Ops Friday w/ Garry Keyser, Matt Norris, Kevin Proctor | Daily Dealer Live
About this episode
The discussion centers on the growing importance of fixed operations (FixOps) in car dealerships, highlighting how service lanes and commercial service operations are becoming key profit drivers in 2026. Gary Keyser shares his journey from entry-level to president at LB Smith Ford Lincoln and explains their strategic investment in a large Ford Pro Elite commercial service center to meet rising demand. The episode also covers industry news like Scout Motors' legal challenges, GM consolidating its certified pre-owned programs, and recent dealership acquisitions. The conversation emphasizes the evolving automotive landscape and the opportunities in service and commercial vehicle maintenance.
Fixed Ops
"And hey everybody, welcome to Fixed Ops Friday. As we know, the smartest operators in the country are quietly shifting their strategy right now. It's not about selling more cars, although that's part of it. It's about owning the service lane while automotive debates EVs, tariffs, and shrieking front-end grosses. The very best stores in all automotive are building technician pipelines, commercial service operations, and service lanes that actually generate inventory. Because here's the truth most of us don't want to fully admit. The biggest profit opportunity in dealerships today in March of 2026, it's not the showroom, it's Fixed Ops."
Fixed Ops is the part of a car dealership that takes care of fixing and maintaining cars, like oil changes and repairs. It makes a lot of money for the dealership, sometimes more than selling new cars.
Fixed Ops refers to the fixed operations department in automotive dealerships, which includes service, parts, and body shop operations. It is a major profit center separate from new car sales, focusing on vehicle maintenance and repairs.
Scout Motors
"Today in the news, we are leading with an update on Scout motors. Just days after two Volkswagen dealers filed a class action lawsuit alleging Scout's direct-to-consumer model..."
Scout Motors is a car company that sells its vehicles directly to buyers without using regular car dealerships.
Scout Motors is an automotive company focusing on electric vehicles, particularly known for its direct-to-consumer sales model, which bypasses traditional dealership networks.
direct-to-consumer model
"Just days after two Volkswagen dealers filed a class action lawsuit alleging Scout's direct-to-consumer model violates dealer franchise agreements, Scout announced it has surpassed 160,000 vehicle reservations..."
This means the car company sells cars straight to people instead of through car dealerships, which can cause disagreements with dealers.
The direct-to-consumer model is a sales approach where manufacturers sell vehicles directly to customers, bypassing traditional dealership networks. This can disrupt established franchise agreements and lead to legal challenges.
dealer franchise agreements
"Just days after two Volkswagen dealers filed a class action lawsuit alleging Scout's direct-to-consumer model violates dealer franchise agreements, Scout announced it has surpassed 160,000 vehicle reservations..."
These are agreements that let car dealerships sell certain brands of cars in specific areas.
Dealer franchise agreements are legal contracts between automakers and dealerships that grant dealers the right to sell vehicles of a particular brand within a defined territory.
Scout Traveler
"Scout announced it has surpassed 160,000 vehicle reservations for its Terra pickup and traveler SUV."
The Scout Traveler SUV is an electric car made by Scout Motors that is like a big family vehicle.
The Scout Traveler SUV is an electric sport utility vehicle model from Scout Motors, designed to compete in the electric SUV segment.
Scout Terra
"Scout announced it has surpassed 160,000 vehicle reservations for its Terra pickup and traveler SUV."
The Scout Terra pickup is an electric truck made by Scout Motors that people can buy.
The Scout Terra pickup is an electric pickup truck model announced by Scout Motors, targeted at the growing electric truck market.
vehicle reservations
"Scout announced it has surpassed 160,000 vehicle reservations for its Terra pickup and traveler SUV. That's at least 16 million bucks collected at $100 a pop, a figure that is similar to the one cited in the lawsuit as evidence that Scout is already transacting directly with consumers..."
This means people have put money down to save a spot to buy a car later, but they haven't fully bought it yet.
Vehicle reservations are deposits or commitments made by customers to hold a place in line for a future vehicle purchase, but they are not final sales contracts.
certified pre-owned
"General Motors is consolidating its certified pre-owned business under a single platform called CarBravo. Effective June 2nd, all certified used Chevrolet, Buick, and GMC vehicles will move under the CarBravo umbrella, making it GM's sole CPO program for those three brands in the United States."
Certified pre-owned means the used car has been checked and fixed by the car company, so it's more reliable and often comes with a warranty. It’s like buying a used car that’s been approved by the manufacturer.
Certified pre-owned (CPO) programs are manufacturer-backed used car programs that offer inspected, refurbished vehicles with extended warranties and other benefits to provide buyers more confidence compared to typical used cars.
Buick
"all certified used Chevrolet, Buick, and GMC vehicles will move under the CarBravo umbrella, making it GM's sole CPO program for those three brands in the United States."
Buick is a car brand that makes nicer, more comfortable cars and SUVs. GM sells certified used Buicks through their CarBravo program.
Buick is a premium brand under General Motors, offering luxury-oriented vehicles. It is included in GM's consolidated certified pre-owned program called CarBravo.
General Motors
"General Motors is consolidating its certified pre-owned business under a single platform called CarBravo. Effective June 2nd, all certified used Chevrolet, Buick, and GMC vehicles will move under the CarBravo umbrella, making it GM's sole CPO program for those three brands in the United States."
General Motors is a big car company in the U.S. that makes brands like Chevrolet and Cadillac. They also sell used cars that have been checked and approved by them.
General Motors (GM) is a major American automotive manufacturer that owns brands such as Chevrolet, Buick, GMC, and Cadillac. GM offers certified pre-owned programs to support used car sales under its various brands.
GMC
"all certified used Chevrolet, Buick, and GMC vehicles will move under the CarBravo umbrella, making it GM's sole CPO program for those three brands in the United States."
GMC is a brand that makes trucks and SUVs. GM sells certified used GMC vehicles through their CarBravo program.
GMC is a General Motors brand focused on trucks and SUVs. It participates in the CarBravo certified pre-owned program consolidating GM's used vehicle offerings.
Carvana
"this is a direct shot at Carvana, which sold nearly 600,000 units last year and is gunning for three million, three million units this year."
Carvana is a company where you can buy used cars on the internet without going to a dealership. They deliver the car to your home or you can pick it up from special vending machines.
Carvana is an online used car retailer known for its e-commerce platform that allows customers to buy, finance, and trade in cars entirely online, with home delivery or pickup from vending machines.
Chevrolet Tracker
"...the buy sell wire, straight off the CDG buy sell tracker. It's been an active, it's been an active wire fo..."
The Chevrolet Tracker is a small SUV that many people buy because it's not too expensive and works well for everyday driving. It's good for carrying things and people without being too big or hard to park. People talk about it because it sells well and is popular with many drivers.
The Chevrolet Tracker is a compact SUV known for its affordability and practicality, often popular in markets where small SUVs are in demand. It is significant as a versatile vehicle that appeals to budget-conscious buyers looking for a reliable daily driver with decent cargo space. It might be discussed in the context of sales trends or market activity due to its steady presence in the compact SUV segment.
Lithia
"First, Lithia closed on Toyota of Gallatin just north of Nashville on March 2. That's picking up its fourth Tennessee store from the Stumble Automotive. From Stumble Automotive, Lithia CEO says the group is continuing to target high growth markets and the deal brings their total acquired US annual revenue to get this 225 million bucks so far."
Lithia is a company that owns and runs many car dealerships where you can buy cars.
Lithia Motors is a large automotive retailer and dealership group in the United States, known for acquiring dealerships and expanding its market presence.
Volvo Cars
"mobile Alabama stores from CarLock Automotive, Audi Mobile, Volkswagen Mobile, and Volvo Cars Mobile."
Volvo is a car company from Sweden that makes cars known for being very safe and strong.
Volvo Cars is a Swedish automaker known for its focus on safety, durability, and Scandinavian design in its vehicles.
Audi
"mobile Alabama stores from CarLock Automotive, Audi Mobile, Volkswagen Mobile, and Volvo Cars Mobile."
Audi makes fancy cars from Germany that are known for being high quality and having good all-wheel-drive systems.
Audi is a German luxury automobile manufacturer known for its advanced engineering, quattro all-wheel-drive system, and premium vehicles.
Volkswagen
"mobile Alabama stores from CarLock Automotive, Audi Mobile, Volkswagen Mobile, and Volvo Cars Mobile."
Volkswagen is a big car company from Germany that makes popular cars like the Golf and Beetle.
Volkswagen is a major German automaker famous for models like the Golf and Beetle, offering a wide range of vehicles from economy to luxury.
FixOps
""...FixOps has always been our backbone. I mean, we just, we love FixOps, we crush FixOps and this year with moving so much gross out of our main shop, you know, we had to figure out FixOps again...""
FixOps means the part of a car dealership that fixes cars and sells parts. It's important because it helps keep cars running and makes money for the dealership.
FixOps, short for Fixed Operations, refers to the parts of an automotive dealership or service center that deal with vehicle maintenance, repairs, parts, and service operations. It is a critical revenue and customer satisfaction area in the automotive industry.
Ford Pro Elite Commercial Service Center
"So that Ford Pro Elite Commercial Service Center, that's a major commitment. That's a big financial investment."
It's a special kind of Ford repair shop that helps fix work trucks and vans quickly so businesses can keep working without long waits.
Ford Pro Elite Commercial Service Center is a specialized service network by Ford focused on providing dedicated maintenance and repair services for commercial vehicles, emphasizing quick turnaround and reliability for business customers.
Mannheim auction
"And then eager K comes into the text with an update from a Mannheim auction. It says, good afternoon, fellas. Just got done with auction today at Mannheim, New England,"
Mannheim auction is a place where car dealers buy and sell cars in bulk. It's like a big car market for dealers, not regular buyers.
Mannheim auction is a large wholesale vehicle auction company where dealers buy and sell cars, often including fleet vehicles and dealer trades. It's a key marketplace in the automotive industry for wholesale transactions.
service lane acquisition
""...some of the stories that I listened to at NADA, these guys are really acquiring a lot of cars out of their service lane... service lane acquisition is one of those things you almost hear as a buzzword...""
Service lane acquisition means getting used cars from people who come to a shop to fix or maintain their cars. Since the shop knows the car's history, it’s easier to trust the car’s condition.
Service lane acquisition refers to the strategy of acquiring used cars directly from customers who bring their vehicles in for service or maintenance at a dealership or service center. This approach leverages trust and service records to obtain vehicles with known histories, reducing the risk of unknown issues.
transmission
"So what our plans are to start, you know, we struggle with transmission repairs in the Ford world and, you know, any Ford dealers out there listening would probably say, Yeah, that's a true statement."
The transmission is the part of the car that helps it change speeds and move. Fixing it can be hard and take time.
The transmission is a vehicle component that transmits power from the engine to the wheels, allowing the car to change gears and control speed. Transmission repairs can be complex and costly, often requiring specialized service.
recalls
"We reported last year 2025 Ford is the number one most recalled OEM. How are you meeting customer demand and needs for those recalls?"
A recall is when a car company finds a problem with a car and asks owners to bring it in to fix it for free to keep everyone safe.
Recalls are official requests by manufacturers to fix safety or compliance issues in vehicles after they have been sold. They often require free repairs or replacements to address defects.
service revenue
""If there's a dealer listening to Gary that says, Hey, I want to grow service revenue 20% this year in 2026. In your opinion, where should they start? What's starting grounds for that 20% boost in service revenue?""
Service revenue is the money a car dealership makes by fixing and maintaining cars, not just by selling them. This helps keep the business running and cars on the road.
Service revenue refers to the income a dealership or automotive service center earns from maintenance, repairs, and other vehicle-related services. It is a critical part of dealership profitability beyond just selling cars.
Ford F-150 Lightning
"...perspectives. We'll have you back as part of the lightning round at the very end. Thanks, Gary. Yeah, thank ..."
The Ford F-150 Lightning is a big truck that runs only on electricity instead of gas. It can do a lot of work like pulling heavy things and has cool new features that help save energy. People talk about it because it's one of the first electric trucks that many people can buy.
The Ford F-150 Lightning is an all-electric version of Ford's best-selling F-150 pickup truck, representing a significant step in electrifying popular work and consumer trucks. It offers impressive power, towing capacity, and innovative features like vehicle-to-grid technology, making it a key player in the electric truck market. It is often discussed for its impact on the future of electric vehicles and the pickup truck segment.
EV
"That'll be super interesting when you think about impact to EV and EV demand if the price of oil becomes significant through this Iran thing."
EV means electric car. Instead of using gas, it runs on electricity, which is better for the environment.
EV stands for electric vehicle, which is a car powered entirely or partially by electricity instead of gasoline. EVs produce zero tailpipe emissions and are becoming more popular as technology and charging infrastructure improve.
EV charging
"Great America finances, buildouts and remodels including service equipment, collision and repair, body and paint, EV charging, car washes, signage and software."
EV charging means plugging in electric cars to give them power, like charging your phone. It's how electric cars get energy to drive.
EV charging refers to the infrastructure and equipment used to recharge electric vehicles. This includes home chargers, public charging stations, and fast chargers, which are essential for supporting the growing number of electric cars.
Mercedes-Benz
"for a couple of hours here, eager K comes into the comments as Ford's following the Mercedes Benz playbook with mobile service and roadside assistance. He says, I think it's great."
Mercedes-Benz is a fancy car company from Germany. They make luxury cars and offer services like helping customers if their car breaks down on the road.
Mercedes-Benz is a German luxury automotive brand known for its premium vehicles, advanced technology, and strong focus on customer service including programs like mobile service and roadside assistance.
mobile service
"Ford's following the Mercedes Benz playbook with mobile service and roadside assistance. He says, I think it's great."
Mobile service means mechanics come to your car wherever it is to fix or check it, so you don't have to go to a shop.
Mobile service refers to automotive maintenance or repair services provided at the customer's location rather than at a dealership or service center. This enhances convenience and customer experience.
roadside assistance
"Ford's following the Mercedes Benz playbook with mobile service and roadside assistance. He says, I think it's great."
Roadside assistance is help you get if your car stops working while you're driving, like if you get a flat tire or your battery dies.
Roadside assistance is a service that helps drivers when their vehicle breaks down or encounters issues on the road, such as flat tires, dead batteries, or running out of fuel. It often includes towing and minor repairs.
over the air communication
"the Benz program is awesome as well. They do a lot of the over the air communication with the vehicle to help dispatch the vehicles and meet customer need."
Over the air communication means the car can send and receive information wirelessly, like updates or alerts, without needing to be plugged in.
Over the air communication refers to the wireless transmission of data between a vehicle and a service provider or manufacturer. This technology enables remote diagnostics, software updates, and improved customer service.
customer experience
"And again, creating that great customer experience makes it less about price, more about the service and people I think in 2026 are willing to pay for a better experience."
Customer experience means how happy and satisfied people feel when they buy or use a car and get help from the company or dealer.
Customer experience in automotive refers to the overall impression and satisfaction a buyer or owner has with a brand or dealership, including service quality, communication, and support.
Cadillac ELR
"...t do you think? We just talked a little bit about ELR as an important KPI. We've talked a lot about th..."
The Cadillac ELR is a fancy car that uses both electricity and gas to help save fuel. It looks stylish and has lots of nice features, but it was quite expensive and not many people bought it. People talk about it because it was one of the first luxury cars to try using electric power.
The Cadillac ELR is a luxury plug-in hybrid coupe produced between 2014 and 2016, combining electric and gasoline power for improved fuel efficiency. It is notable for its advanced technology and premium features but struggled with high pricing and limited market appeal. Discussions about the ELR often focus on its role as an early luxury electrified vehicle and its impact on Cadillac's electrification strategy.
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