Page 42 - Summer 2024

Continued from page 41.
Mitigating the Impact of the EV Transition

While the transition to EVs is inevitable, the anticipated “hit” to service departments is not as immediate as
initially thought. The slower-than-expected adoption rate means that traditional service department needs will
remain substantial for the foreseeable future. This gives dealers time to adapt and prepare for the eventual Y O U D O N ’ T N E E D T O N A V I G A T
Y O U D O N ’ T N E E D T O N A V I G A T E E
increase in EVs without experiencing a sudden drop in service income.

But dealers can take proactive steps now to mitigate any future impact. By adopting flexible and forward- WARRANTY REIMBURSEMENTS
thinking strategies, such as enhancing warranty rate reimbursements and investing in technician training,
dealerships can create a financial buffer. This buffer can fund necessary adaptations for the future, ensuring
ALONE
that your service department remains competitive and profitable regardless of market changes.

Enhancing Service Department
Competitiveness

One of the key benefits of increased revenue from warranty rate
reimbursements is the ability to invest in training and retaining
highly skilled service technicians. As automotive technology
evolves, particularly with the introduction of EVs, having a well-
trained service team becomes a critical competitive advantage.

Increased funding can be used to attract higher trained
technicians and provide advanced training for techs, ensuring
they are proficient in both traditional and electric vehicle
maintenance and repairs. This dual capability not only improves
the quality of service but also attracts more customers who
trust your dealership with their vehicles, whether they are
conventional, hybrid or electric.

Implementing best practices for fixed operations is also essential
for maximizing efficiency and profitability. By combining best
practices with the financial boost from optimized warranty rate
reimbursements, dealers can ensure a robust and profitable
fixed operations department.

Conclusion

Dealers may be collectively letting out a sigh of relief that the EV demand hasn’t reached the forecasted levels, FORMULA AUTOMOTIVE HELPS DEALERS NAVIGATE THE WARRANTY
42 but preparing now for that eventuality is still advised. Warranty rate reimbursement submissions and investing REIMBURSEMENT SPACE BY LEVERAGING STATE LAW TO REALIZE INDUSTRY-BEST

in service department improvements are key to maintaining profitability amidst the growing EV trend. While RESULTS. THAT’S IT. IT ISN’T WATERED DOWN WITH ANYTHING ELSE.
the shift towards electric vehicles poses challenges, it also presents opportunities for those who are prepared.
Formula Automotive is committed to helping dealers optimize their warranty rate reimbursement plans,
providing a significant boost to fixed operations gross profits. This increased revenue can then be used to
attract and retain better-trained service technicians, ensuring your dealership stays ahead of the competition.

Contact Formula Automotive today to optimize your warranty rate WARRANTY REIMBURSEMENT
reimbursement plan and secure your dealership’s future.
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