July 17, 2026 | Subaru’s Todd Lawrence and Jim Pernas talk service department challenges; Honda discontinues electric Prologue
About this episode
Honda plans to discontinue the electric Prologue next year, and the hosts also note how tariffs have delayed Foxconn’s U.S. EV plans. The conversation then shifts to Subaru, where Todd Lawrence and Jim Pernas dig into why service departments are under pressure as customers keep cars longer and become more cautious about big-ticket repairs. Subaru leans on the Subaru Love Promise, a “loyalty loop,” and fixed-operations follow-up—especially when parts shortages and supply-chain priorities complicate service.
Honda Prologue
"... on the show, Honda will discontinue the electric prologue next year. Foxconn, the Taiwanese iPhone maker ex..."
The Honda Prologue is an all-electric SUV made by Honda. It runs on a battery instead of gasoline. The podcast mentions Honda plans to stop selling it after a period, so it’s a car people may want to understand in terms of future availability.
The Honda Prologue is Honda’s fully electric SUV, positioned as the brand’s entry into battery-electric driving. In the podcast context, it’s being discussed because Honda plans to discontinue the electric Prologue after a short run, with production and business details tied to partners such as Foxconn. That makes it a notable topic for anyone tracking how quickly automakers can pivot their EV plans.
hybrid
"It plans to launch 15 new hybrids by March 2030, primarily in North America, with the first hybrids due next year."
A hybrid uses two power sources—an engine plus an electric motor. The goal is usually better efficiency than a regular gas-only car.
Hybrids are vehicles that use both an internal-combustion engine and an electric motor/battery. They’re often positioned as a bridge technology to reduce fuel use and emissions while automakers ramp up electrification.
Volvo EX-60
"a Volvo executive said the company is expecting to rebuild its cash position and increase sales with new products such as the EX-60 mid-size electric SUV."
The Volvo EX-60 is a new electric SUV Volvo is planning. It’s the kind of car people shop for when they want an EV that’s not too big—more like a mid-size crossover.
The Volvo EX-60 is an upcoming mid-size electric SUV from Volvo. It’s notable because it represents Volvo’s next step in scaling its all-electric lineup and competing in the growing EV crossover segment.
electric SUV
"increase sales with new products such as the EX-60 mid-size electric SUV."
An electric SUV is an SUV that runs on electricity from a battery. Instead of using gas like most SUVs, it uses an electric motor.
An electric SUV is a sport-utility vehicle powered primarily by an electric motor and battery rather than a gasoline engine. EV SUVs are a major battleground because they combine family practicality with electrified powertrains.
service departments
"Affordability concerns are a new challenge for service departments. [167.6s] Subaru is leaning on customer loyalty and the Subaru Love Promise to keep customers coming back."
A service department is the dealership’s repair and maintenance shop. It’s where you go for things like scheduled maintenance and fixing problems.
A dealership service department is the part of a car store that handles maintenance and repairs for customers’ vehicles. When affordability becomes a challenge, it can affect how many customers can pay for work and how profitable the shop can be.
Subaru Love Promise
"Subaru is leaning on customer loyalty and the Subaru Love Promise to keep customers coming back. [174.2s] Todd Lawrence is Vice President of Loyalty and Aftersales at Subaru,"
The Subaru Love Promise is Subaru’s program to keep customers coming back. It’s basically Subaru’s way of rewarding owners and encouraging them to use the dealership for service.
The Subaru Love Promise is Subaru’s customer-retention program aimed at keeping owners engaged and returning for service. It’s used to build loyalty by offering benefits or assurances that encourage repeat visits to the dealership.
customer loyalty
"It seems to me at least like that top brand that there's a service customer loyalty there. How has Subaru built that over the years?"
Customer loyalty just means people keep coming back to the same brand or dealership. In car terms, it’s when you return for service instead of going somewhere else.
Customer loyalty means customers keep choosing the same brand or dealership over time instead of switching to competitors. In automotive service, it often shows up as repeat visits for maintenance and repairs.
tire rotation
"No business is too small for our retailer, whether it's an EV tire rotation, and no business is too big, whether it's a major transmission or repair."
Tire rotation means moving your tires to different spots on the car so they wear evenly. The EV part suggests EVs may need extra attention to tire wear patterns.
Tire rotation is the scheduled swapping of tires between positions to even out wear. Mentioning it as an EV tire rotation implies EV-specific service scheduling or guidance, since EVs can wear tires differently due to instant torque and vehicle weight.
major transmission
"No business is too small for our retailer, whether it's an EV tire rotation, and no business is too big, whether it's a major transmission or repair."
The transmission is what helps send power from the engine to the wheels. A “major transmission” repair means it’s a big, costly job compared with routine service.
A transmission is the drivetrain component that manages how engine power is delivered to the wheels. Calling it a major transmission repair highlights that service-department work can range from routine maintenance to expensive drivetrain jobs.
warranty expires
"And from your perspective, I think dealerships struggle with customer retention. That's the warranty expires. A lot of people go to an independent shop."
Warranty expires means the free/covered repair period from the manufacturer is over. After that, repairs usually cost more, so some people switch to cheaper independent mechanics.
When a vehicle warranty expires, the manufacturer’s coverage for many repairs ends, so owners may pay out of pocket. That often drives customers to consider independent shops instead of the dealer service department.
supply chain
"coming out of the pandemic slowly and supply issues, parts issues, supply chain stuff. [733.0s] What was that like to kind of like jump into that fire a little bit?"
The supply chain is the whole process of getting car parts from factories to warehouses and then to dealerships. If it gets slowed down, shops can’t get parts in time to fix cars.
In auto manufacturing and dealerships, the supply chain is the network of suppliers, shipping, ports, and warehouses that gets parts and materials to factories and then to vehicles and service departments. When it’s disrupted, dealerships can’t get the parts they need quickly, which affects repairs and vehicle availability.
parts shortages
"I had no idea. I mean, it was baptism by fire, supply chain problems, getting vessels from Asia over here was a challenge. There were parts shortages, galore, and we again, we listened,"
Parts shortages are when repair shops can’t get the replacement parts they need. That can delay repairs because the car can’t be fixed until the right part arrives.
Parts shortages mean dealerships and repair shops can’t get enough replacement components (like sensors, body parts, or drivetrain parts) to complete repairs. In the pandemic era, shortages were driven by disrupted logistics and limited production of certain components.
semiconductor crisis
"There certainly are plenty of challenges now in the supply chain, not nearly as bad as 21 and 22 and the semiconductor crisis and all of that. Don't get me wrong, but there are challenges."
Cars use computer chips for lots of functions. During the semiconductor crisis, there weren’t enough chips, so car production and parts availability got delayed.
The semiconductor crisis refers to the global shortage of computer chips used in modern vehicles. Because many vehicle systems depend on these chips, shortages can slow production and also affect which vehicles and parts are available for service.
fixed operations
"where maybe the sales are going to be down a little bit, margins are compressed. Again, fixed ops is kind of turned to, looked to to carry a dealership. How have you over the years"
Fixed operations is the dealership’s service business—repairing and maintaining cars and selling parts. If new-car sales drop, service usually becomes a bigger part of the dealership’s income.
Fixed operations (often shortened to “fixed ops”) is the dealership’s ongoing service side—things like maintenance, repairs, and parts sales—separate from new-vehicle sales. When sales slow, fixed ops becomes more important for keeping the dealership financially healthy.
fixed ops absorption
"[872.4s] Yeah, great question. Fixed operations absorption is a critical measure that our"
Fixed operations absorption is a way to measure whether the dealership’s service department is doing enough business to cover its costs. If it’s “absorbing” costs well, the service side is financially working.
Fixed operations absorption is a dealership performance metric that measures how well the service department covers its operating costs (often by converting labor and parts revenue into profit/coverage). It’s used to judge whether the service side is strong enough to support the dealership overall.
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