Fixed Ops Friday w/ Tully Williams, Colin Speer, Frank Knox | Daily Dealer Live
About this episode
This episode dives into the latest automotive industry news, focusing on the challenges faced by major players like Ford and CarMax, particularly regarding electric vehicle production and leadership changes. Tully Williams, a Fixed Ops expert, shares insights on improving used car turnaround times and the importance of collaboration between fixed and variable operations. The discussion also highlights the role of AI in enhancing vehicle acquisition strategies and the significance of transparency in customer interactions. With expert guests providing valuable perspectives, this episode is packed with actionable insights for dealership operations.
Fixed Ops
"...where today is it's Fixed Ops Friday..."
Fixed Ops is a term used in car dealerships that means the parts and service departments. It's important because it helps the dealership make money by fixing cars and selling parts.
Fixed Ops, short for Fixed Operations, refers to the parts and service departments of a dealership. This area is crucial for generating revenue and maintaining customer relationships through vehicle maintenance and repairs.
electric pickup
"...cancel production of its Ford F-150 Lightning electric pickup..."
An electric pickup is a truck that runs on electricity instead of gas. This means it uses batteries to power the engine, which can be better for the planet.
An electric pickup refers to a pickup truck that is powered entirely by electric batteries rather than traditional gasoline or diesel engines. These vehicles are designed to provide similar capabilities as conventional pickups while being more environmentally friendly.
EV
"...production of its Ford F-150 Lightning electric pickup, this according to The Wall Street Journal..."
EV means Electric Vehicle. These are cars or trucks that run on electricity instead of gas, making them better for the environment.
EV stands for Electric Vehicle, which refers to any vehicle that is powered by electricity instead of gasoline or diesel. EVs are known for being more environmentally friendly and often have lower operating costs compared to traditional vehicles.
Ford F150 Lightning
"biggest industry headlines. And first up today, a shocker from Ford. Ford is reportedly weighing whether to cancel production of its Ford F-150 Lightning electric pickup, this according to The Wall Street Journal. Production of the EV pickup has been idled since October after a fire at a"
The Ford F-150 Lightning is an electric version of the popular Ford F-150 truck, which means it runs on electricity instead of gasoline. It's important because it shows how car companies are trying to make more environmentally friendly vehicles. The talk about possibly stopping its production suggests that there are some challenges or issues with making these electric trucks.
The Ford F-150 Lightning is an all-electric version of Ford's best-selling F-150 pickup truck. It represents a significant shift towards electric vehicles in the pickup segment, showcasing Ford's commitment to electrification and innovation in the automotive industry. The discussion around its potential production cancellation highlights the challenges faced by automakers in the transition to electric vehicles.
EV (Electric Vehicle)
"Ford's EV division continues to hemorrhage money, losing, get this, $3.6 billion dollars this year alone. Zooming out, Ford's potential EV retreat is far from isolated."
An EV, or electric vehicle, is a car that runs on electricity instead of gasoline or diesel.
An electric vehicle (EV) is a type of vehicle that is powered entirely or partially by electricity, using electric motors instead of internal combustion engines.
Stellantis
"Stellantis already canceled its all-electric ram. Tesla, Cybertruck sales have collapsed and Rivian is laying off workers amid huge losses."
Stellantis is a big car company that makes many different brands of cars, like Jeep and Dodge.
Stellantis is a multinational automotive manufacturer formed from the merger of Fiat Chrysler Automobiles and PSA Group, producing various brands including Jeep, Dodge, and Peugeot.
Tesla Cybertruck
"...is already canceled its all-electric ram. Tesla, Cybertruck sales have collapsed and Rivian is laying off wor..."
The Tesla Cybertruck is a new electric pickup truck that looks very different from regular trucks, almost like something from a sci-fi movie. It's important because it's part of Tesla's efforts to create electric vehicles, but there are concerns that not enough people want to buy it. This has led to worries about whether Tesla will keep making it.
The Tesla Cybertruck is an all-electric pickup truck known for its unique, futuristic design and advanced technology features. It has garnered significant attention since its unveiling, but recent reports indicate that sales have not met expectations, leading to discussions about its future in the market. The Cybertruck's performance and design are often compared to traditional trucks, making it a focal point in the conversation about the future of electric vehicles.
CarMax
"Next up today, there's been a big leadership shake up at CarMax. CEO Bill Nash is stepping down December 1st after the used car giant posted weak preliminary results for the third quarter."
CarMax is a company that sells used cars and is known for making the buying process simple and straightforward.
CarMax is a leading retailer of used cars in the United States, known for its no-haggle pricing and wide selection of vehicles.
transparent pricing
"However, buyers who are unhappy with their trading values, but did not receive a thorough explanation just to find the amount and had higher overall satisfaction scores. Bottom line, customer trust is becoming the ultimate currency as costs rise."
Transparent pricing means that car buyers know exactly how much they will pay for a car, including any extra fees. This helps customers feel more confident and satisfied with their purchase.
Transparent pricing refers to the practice of clearly communicating all costs associated with a vehicle purchase, including fees and trade-in values. This approach builds trust between dealers and customers, leading to higher satisfaction scores.
automotive chip crisis
"And finally, up today, we bring an update to the unfolding automotive chip crisis. It's not Doritos or Lay's."
The automotive chip crisis is a situation where car manufacturers are having trouble getting the computer chips they need to build cars. This has caused delays and made cars more expensive.
The automotive chip crisis refers to the global shortage of semiconductor chips that has significantly impacted vehicle production and sales. This shortage has led to delays in manufacturing and increased vehicle prices due to limited supply.
Nexperia
"it's those that go into making the vehicles we sell involving semiconductor chip maker Nexperia. Earlier this week, Nexperia told its customers it still had no clarity on if or when shipments..."
Nexperia is a company that makes tiny electronic parts, like chips, which are important for cars to work properly.
Nexperia is a semiconductor company that specializes in producing components essential for various electronic applications, including those used in automotive manufacturing.
Honda
"...and automakers, including Volkswagen, BMW, and Honda are already planning to restart production."
Honda is a car brand from Japan that makes reliable and popular cars, like the Civic and Accord.
Honda is a Japanese automotive manufacturer recognized for its reliable cars and motorcycles, including popular models like the Civic and Accord.
BMW
"...and automakers, including Volkswagen, BMW, and Honda are already planning to restart production."
BMW is a well-known car brand from Germany that makes luxury cars, famous for their sporty performance.
BMW, short for Bayerische Motoren Werke, is a German luxury vehicle manufacturer known for its performance-oriented cars and motorcycles.
Volkswagen
"...and automakers, including Volkswagen, BMW, and Honda are already planning to restart production."
Volkswagen is a car brand from Germany that makes many popular cars, like the Golf and the Beetle.
Volkswagen is a German automotive manufacturer known for producing a wide range of vehicles, including the iconic Beetle and Golf models.
Bosch
"Parts suppliers like Bosch and Amovio say shipments have started flowing and automakers, including Volkswagen, BMW, and Honda are already planning to restart production."
Bosch is a big company that makes parts for cars, like brakes and engines, helping them run better and safer.
Bosch is a leading global supplier of technology and services, including automotive components such as braking systems, fuel systems, and electronic control units.
trade-ins
"if it's not a customer trade-in, and then getting it through service, and then getting it out into the world. Yuli, do you agree? I do."
A trade-in is when you give your old car to a dealership to help pay for a new one. It makes buying a new car easier because you can lower the price you have to pay.
Trade-ins refer to the practice of exchanging a used vehicle as part of the payment for a new or used vehicle. This process can simplify the purchasing experience for customers by reducing the amount they need to finance or pay upfront.
service advisor
"I'm curious, do you have separate internal departments in each rooftop? I mean, maybe you do it on a case-to-case basis, but you have dedicated teams to, you know, those trade-ins?"
A service advisor is someone at a car dealership who helps you with your car repairs. They explain what needs to be done and keep you updated on the work being done.
A service advisor is a professional at a dealership or repair shop who acts as a liaison between customers and the service department. They help customers understand the services their vehicles need and manage the repair process.
technicians
"If you let your service advisors or your overall technicians work on it, all use cars get pushed off."
Technicians are the people who fix cars. They know how to repair different parts of a vehicle and make sure everything works properly.
Technicians in the automotive context are skilled professionals who perform maintenance and repairs on vehicles. They diagnose issues, replace parts, and ensure that vehicles are safe and operational.
pay plan
"if you have a dedicated service advisor, we call our internal advisor that's paid on days in shop, not gross or hours, and he has his dedicated technicians that work for that person."
A pay plan is how someone gets paid for their work. In car dealerships, it can depend on how many cars they fix or sell.
A pay plan in the automotive industry typically refers to the compensation structure for employees, particularly service advisors and technicians. It can be based on various factors such as hours worked, sales made, or customer satisfaction metrics.
parts issues
"If there is a problem with a car, the world should blow up, and we need to figure"
Parts issues happen when the parts needed to fix a car are missing or broken. This can slow down the repair process and make customers unhappy.
Parts issues refer to problems that arise when the necessary components for vehicle repair or maintenance are unavailable, delayed, or defective. This can significantly impact the efficiency of service operations and customer satisfaction.
F&I product
"...sell them a great F&I product that drives repeat referral business. And then when that car comes back in, those things are now going to be covered for the extended warranty..."
F&I products are services related to financing and insurance that dealerships offer when you buy a car. They can include things like loans, insurance, and warranties to help protect your purchase.
F&I stands for Finance and Insurance, which refers to products and services offered to customers during the car buying process, such as financing options, insurance, and extended warranties. These products can enhance the dealership's revenue and improve customer satisfaction.
extended warranty
"...those things are now going to be covered for the extended warranty. Guess what happens? The customer's happy..."
An extended warranty is like extra insurance for your car that covers repairs after the original warranty ends. It helps protect you from high repair costs if something goes wrong.
An extended warranty is a service contract that provides additional coverage for a vehicle beyond the manufacturer's warranty. It can cover repairs and maintenance for a specified period or mileage, offering peace of mind to the vehicle owner.
EVs
"...what do you say to somebody who's in the Midwest, they've got EVs, they've got to sell those EVs..."
EVs are electric vehicles that run on electricity instead of gasoline. They are better for the environment and are becoming more common as technology improves.
EVs, or electric vehicles, are cars that are powered entirely or partially by electricity instead of traditional gasoline or diesel fuel. They are becoming increasingly popular due to their environmental benefits and advancements in battery technology.
Porsche
"...I'm not sure if a Porsche customer wants us to go to their tile driveway and jack their car up and fix it, but they pick up and delivery works there."
Porsche is a famous car brand from Germany that makes fast and luxury cars. They are known for models like the 911 and the Cayenne.
Porsche is a German automotive manufacturer known for its high-performance sports cars, SUVs, and sedans. The brand is synonymous with luxury and performance, often appealing to enthusiasts and collectors.
Carvana
"...We know where Carvana was not so long ago when their stock was $6, $7 a share..."
Carvana is a company where you can buy and sell used cars online. They even have a special vending machine where you can pick up your car after buying it.
Carvana is an online used car retailer that allows customers to buy and sell cars through a digital platform, offering home delivery and a unique car vending machine experience.
recondition
"...making sure that they're buying the right inventory one, but getting that inventory recondition and through the shop makes all the difference..."
Reconditioning is when a used car is fixed up and cleaned to make it look and work like new before being sold.
Reconditioning refers to the process of repairing and refurbishing used vehicles to bring them up to a certain standard before they are sold. This can include mechanical repairs, cleaning, and cosmetic improvements.
automated offer
"...I didn't know my car was worth this much. But now that I have the offer in hand, now I'll talk to you. Yeah, but so I'm just thinking this through logically, right? So Carvana sends out their automated offer..."
An automated offer is a price that a company gives you for your car based on information you provide, like its make and model. This happens quickly and doesn't require someone to look at the car in person.
An automated offer is a price quote generated by a system or algorithm, often used by companies like Carvana to provide quick estimates for vehicle trade-ins or sales without the need for a physical inspection.
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
Help improve this episode
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.