Sean Reyes

Company: Recall Masters

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Sean Reyes

Recall Masters

Mar 3, 2022

We all Share Responsibility to Ensure Vehicles are Safe

When it comes to vehicle manufacturing, there is an implied responsibility for the safety of the vehicles produced. That’s the exact reason manufacturers issue service bulletins and notices for the smallest of items --even if they aren't safety-related. While these defects are typically voluntary, they can also become government-mandated safety recalls issued by the NHTSA. That's exactly how the process was intended to play out, stemming from an agreement between the federal regulators and manufacturers more than a half-century ago. In rare instances, the Federal government has had to step in to ensure consumer safety when the defect presents a grave and immediate threat. Take the Takata airbag recall as an example.

 

But something has caused lawmakers to question whether the system is providing all the safeguards that consumers require. Whether due to the complexity of today’s high-tech vehicles, or the dipping volume of NHTSA campaigns, local government oversight is applying more pressure on manufacturers to safeguard their constituents. What happens when auto manufacturers make decisions on a state-by-state basis? Well, there was a time when the emissions levels were different from state to state. Manufacturers were producing vehicles designed for different states. That, however, got dicey for consumers and inefficient for manufacturers. For example, a consumer brought a car in Oklahoma and then decided to move to California. If standards for emissions in California differed, the consumer could not register their vehicle in California nor pass any inspection. On the manufacturer’s side, it was a logistics nightmare keeping track of where to ship certain vehicles. As a result, manufacturers decided to make all vehicles meet the standards of the strictest state (which was California).

 

A push to serve in the best interest of the consumer is now taking shape in the automotive industry via Right to Repair laws. These laws were passed in states such as Massachusetts, forcing automakers to provide access to vehicle data ports, repair manuals, and more. This is nothing new, as similar laws have been passed in other countries. At first glance, it's hard to argue against laws that allow consumers greater access to repair options, parts, and product information. However, upon close inspection, the laws challenge modern manufacturing and overlook the technological complexity of today’s vehicles.

 

According to an article on Wired, in 2020 voters in Massachusetts passed a law stating that automakers had to provide access to a vehicle’s computer systems. These days, modern vehicles are computers with four wheels The law, which went into effect earlier this year, triggered Subaru and Kia to disable telematics systems in vehicles sold in Massachusetts. First Subaru, then Kia followed suit. Which manufacturers are next?

 

What does that mean for consumers buying vehicles in Massachusetts? It means their vehicles no longer have features including remote start, emergency assistance, or automated messages when tires are low, or the vehicle needs an oil change. To me, these all seem like safety issues for those owners. Imagine being stuck in the snow in the middle of nowhere and unable to use the vehicle’s manufacturer-provided emergency system.

 

The article outlines an example whereby a couple bought a Subaru and only later figured out that these features were disabled. Had they purchased the vehicle in a state just 1-mile away, they wouldn’t have had this issue. Automakers argue that simply providing access to the underlying technology presents a safety concern. According to a spokesman from Subaru, “This was not to comply with the law – compliance with the law at this time is impossible – but rather to avoid violating it.”

 

Now everyone is suing everyone. Automakers argue that the federal government should have jurisdiction over these matters, not the states. Consumers and independent shops are arguing that Subaru and Kia are misleading consumers with features that are not readily accessible to individuals in certain states. In Massachusetts, at least, dealerships are also paying the price as consumers are buying fewer vehicles because of this spat and legal action.

 

Regardless of the outcome, all vehicles should be safe to drive. It seems to me that federal and state legislators never bothered to consult Subaru, Kia, or any other automotive industry professional before taking this dramatic course of action. The response – disabling certain features – could also mean that vehicles are less safe for consumers to drive. In addition, manufacturers are also threatening their brand integrity by not providing drivers with the features they believed were included with the vehicle purchase. I would certainly be interested in seeing an actual sticker for a new vehicle on a dealership in Massachusetts lot to see if it actually informs these would-be car buyers that the telematics system has been disabled.

 

Time will tell what the final outcome will be as these lawsuits wade their way through state and federal courts. Until then, we can only hope that nothing happens to these car buyers that causes them harm due to this untenable situation, as that will simply lead to even more lawsuits.

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Feb 2, 2022

U.S. Government Scrutinizes Vehicle Safety

The U.S. Department of Transportation is headlining a new national strategy aimed at significantly reducing crashes and injuries on all U.S. roadways. This comes as part of President Joe Biden's bipartisan 1 trillion dollar infrastructure bill passed in November 2022. Some question whether the broader “Build Back Better” has any chance of ever passing. But it's clear that vehicle safety is up front and center for the Biden Administration. U.S. traffic deaths were up 18% in the beginning half of 2021, compared to the first half of 2020, and the U.S. Government believes that a “bold paradigm shift” enacted by their action plan could bring roadway fatalities and injuries down to almost zero.

 

Department of Transportation Secretary Pete Buttigieg scrutinized the lack of vehicle safety. “We're going to count on technology and auto companies to work with us…”, Buttigieg declared at a department event last month. "But it's also clear that technology alone will not save us." 

 

And it appears that legislators and other vehicle safety advocates agree. Jason Levine, the previous head of the Center for Auto Safety (CAS), departed his role at the agency for a government position as director of the Office of Communications at the U.S. Consumer Product Safety Commission. At CAS, which was founded in 1970 by recall pioneer Ralph Nader, Levine railed against the auto industry for unsafe practices, including the sale of used cars with open recalls. His government appointment could not come at a more opportune time.

 

It's not just a coincidence that legislators are now focusing on the transportation and automotive industry. The new funding from the infrastructure bill is shifting the focus on recalls from prevention and education to action. In May 2021, US Senator Richard Blumenthal (D-CT) introduced S. 1835, a bill to prohibit the sale of used cars with an open recall. As the administration bolsters resources that can effectively lobby for increased safety guidelines, Blumenthal's bill looks to be gaining steam. Consumer groups are also onboard.

 

Rosemary Shahan, president of Consumers for Auto Reliability and Safety (CARS), recently wrote to Automotive News, stating that the bill "would set an industrywide standard requiring all dealers to ensure that safety recall defects are repaired before the sale of used vehicles at retail, while allowing dealers to sell unprepared recalled vehicles at wholesale."

 

While similar legislative efforts have fallen short in the past, the current political climate and political weight of a Democratic Congress may set our industry on a course where recall compliance is no longer an option. Dealerships that proactively manage and repair recalls will not only meet these new laws but will also have a competitive edge over dealers that have largely ignored recalls on their pre-owned inventory.

 

All the indicators suggest that the days of selling used cars with open recalls are ending, at least for dealerships. It's always been a risky exercise for any dealer that wants to avoid potential liabilities but soon could also carry hefty NHTSA fines. A lot can happen and will need to happen before the storm clouds are overhead. What's important for dealers to know is that comprehensive recall management is available to all dealers. 

 

It begins with monitoring the new and pre-owned inventory on your lot and extends to vehicles that you may consider taking in at trade-in. This is especially critical for off-brand makes, where STOP SALE notices or the lack of a remedy/parts are not readily visible to dealers. The knowledge gap not only poses a risk for unsuspecting shoppers but could also be detrimental to the store’s financial health. Consumers are scanning VINs online and performing their own recall checks. If your team isn’t transparent about recalls, expect savvy customers to question your integrity.

 

Whatever legislative actions should come forth is not within your dealership’s immediate control. What is within a dealer’s grasp is the commitment to monitor its inventory regularly for dangerous recalls.

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Jan 1, 2022

The Dilemma of What Autonomous Vehicle Safety Really Means

An interesting “Catch-22” currently exists in the automotive technology space, as covered in a recent article in the New York Times. It’s been known for a while that a controversy exists regarding Tesla’s self/automotive driving feature. There have been deaths and more than a few accidents, along with several lawsuits. Technology is cool. I get it. And this feature is novel – and convenient. But these cars are driving on public roads next to vehicles and drivers that don’t have these features while Tesla drivers get more comfortable and, presumably, pay less attention to the road.

 

According to the New York Times, in June, the National Highway Traffic and Safety Administration (NHTSA) issued an order mandating that all accidents involving vehicles with self/autonomous vehicles must be reported. Most people assumed this was only directed at Tesla. The truth is the order named 108 carmakers and technology companies currently offering autonomous driving features! This order is much more expansive than the average consumer could possibly imagine!

 

Thus, the dilemma posed in the article: “Does regulation make us safer, or will it slow the adoption of technology that makes us safer?”

 

On the one side, the argument is that regulations applied to self/autonomous cars ensure that owners of the vehicles are safer while driving, along with others sharing the road. Drivers (even bad ones) are much better at conducting regular driving-related activities such as paying attention to their surroundings, knowing when it’s safe to pass a vehicle, or when to apply the brakes and gas back and forth for heavy traffic or a traffic light. We can intuitively assess bad situations and react more appropriately than an engineered mixture of algorithms, computer chips, and programming.

 

On the other side is the argument that the evolution of technology will make vehicles inherently safer for everyone. By stifling creativity and technological advances, heavy regulation will handcuff manufacturers and technology companies, resulting in further delays. To effectively experiment with new technologies, vehicles need to be tested in real-world conditions. This requires that they are on the road with other vehicles. Of course, according to the article, there will always be a human in these vehicles with "experimental" features to observe, notate any hiccups and, ultimately, take control of the vehicle if necessary. Kind of like a student driver. The driving instructor's vehicle typically has a steering wheel, gas pedal, and brake on both the driver's AND the passenger's side in case the instructor needs to take over.

 

Which do you think would be safer? More regulation that requires these technology-filled vehicles to pass certain tests before going on the road?

 

OR

 

Allow the manufacturers and technology companies the freedom to test and experiment with new features in real-life driving situations on public roads along with drivers and passengers in regular vehicles for the sake of science, technological evolution, and improved safety?

 

I’d be interested in knowing which YOU agree with.

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Nov 11, 2021

The Competition for Technicians is Heating Up

Most dealerships already find it difficult to recruit technicians. With the influx of warranty and safety recall repairs expected to increase, and as manufacturers pump out more electric vehicles, the need for experienced techs will explode. Some dealerships have found creative ways to recruit technicians – mostly for quick service – because they can be trained on the job. Strategies such as placing recruiting messages on oil and air filters have garnered some success because, when customers take their vehicle in for an oil change at some retail lube-only express facility, it’s usually the quick service technician who is removing the oil filter. And, so these techs see a message like, “Do you want to make more money? If so, call us!”

 

While this could be a clever way to find those quick service technicians who can be trained to handle more complicated repairs on the job, what if there were no master technicians, or even experienced ones, to do this training?

 

According to a recent article in Automotive News, some experienced techs – including those with lots of experience – are leaving the dealership environment to work for companies such as YourMechanic, where the future of vehicle servicing is taking shape. These experienced technicians feel they are at a ceiling in their dealerships as far as making more money, flexible schedules, and the wear and tear on their bodies from working in a dealership environment.

 

This type of work could be viewed as similar to an Uber driver (for an easy analogy). Because the technician can choose their own schedule and control their income while lacking any pressure to handle the heavy load and fast pace of a dealership. And they are not expected to continuously upsell services to customers.

 

Some dealers offer similar services, such as small jobs akin to quick service at a customer's home or office. This, however, can be costly and, from what I've seen, not that many dealerships currently offer this level of service.

 

If these services are indeed thriving, it may be worth your time to investigate and consider incorporating convenience into your offerings, if you don’t already do this. Assuming that these services can provide increased pay, flexibility of schedule, and decreased pressure for your technicians, while, at the same time, providing the “convenience” factor for your customers, technicians may start flocking to your dealership.

 

Fewer students are choosing the career path of automotive technicians, and many dealerships are forced to be increasingly competitive to attract the experienced technicians already out there. As these new companies keep popping up, it will create an even larger void for dealership service departments. It's obvious that these new servicing models not only appeal to consumers, but they're also luring technicians out of your service bays. If our industry doesn't adapt, the talent pool will slowly drain from our service departments.

 

And that will not bode well for service revenue, manufacturers, and customers.

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Oct 10, 2021

Are Two Separate BDCs Better than One?

Many dealers feel they need both a sales and a service BDC based on advice from numerous industry trainers. The thought process is that the sales BDC’s job is to set appointments for sales customers and the service BDC sets appointments for service customers. But what if you combined the two to create a single service BDC? Service is the largest percentage of dealership revenue. It makes sense to have a service BDC. But not many dealers want to dissolve their sales BDC.

 

In a recent article in Automotive News, a dealership in Michigan moved its entire BDC to the service department and simply installed an Internet Manager for sales-related issues. It is certainly important to acquire inventory right now but, in addition, dealerships want to bolster service revenue as well.

 

This dealership’s decision to move the BDC to the service lane solved a myriad of issues. First, it saved money by no longer having two separate BDCs. Second, the dealership was able to train its BDC agents in how to schedule service and also identify vehicles that need additional service outside of any issue the customer originally called about. A system has also been set up so an Internet Manager can jump in should a customer be interested in potentially trading and/or selling their current vehicle for a new one.

 

According to the article, “The new approach has led to about 330 BDC-scheduled appointments per month, about 100 more than it got previously, and Internet sales close rates have doubled to nearly 20 percent.” Those are pretty impressive results from simply using their existing BDC differently. In addition, the dealership “has sold eight to 10 vehicles from the service lane and buys about 20 vehicles from service customers each month.”

 

These are similar to the numbers we see with clients at Recall Masters. By combining staff resources, utilizing systems more efficiently, designing new ones that further remove waste, sharing best practices and consolidating a stellar customer service experience, the strategy is paying off.

 

The dealership spends the same amount of money in employee expense, gets the inventory they desire in this hyper-competitive market, and the customer gets a new (or new-to-them) vehicle. And, just like dealerships have always done, they are offering incentives for customers that trade-in their used cars. Because of the lack of new vehicle inventory, the dealership gives the customer the option to get out of their existing vehicle and have a guaranteed “bonus” in the future.

 

This is a great idea because not only does the dealership gain inventory they can repair any warranty or recall repairs on, but they can also build brand loyalty from those customers who did not think they could trade in their vehicle at that time.

 

A service call center is relatively easy – and inexpensive – to implement. By combining the sales and service BDC into one entity, the dealer captured more service business, gained more inventory without fighting other dealers at auction, and, as a result, saw more service and sales. If this dealer can do it and see those results, there is no reason why any dealer – from the smallest to the largest – can’t deploy the same strategy and boost their bottom line.

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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1 Comment

Craig Polito

Acp Consulting Group

Mar 3, 2022  

Sales BDC and Service BDC are 2 different mindsets. I have always said your can have a Sales and Service BDC co exist in the same room , but never cross pollinate the processes. Sales BDC handels, Phone up's , Email leads, unsold follow up , equity mining etc. Service BDC handels, incoming service appointments, SOP outbound calls, recall outbound calls, denied work outbound calls etc. Two different skill sets. Part time job, part time results, Full time job full results.

Sean Reyes

Recall Masters

Sep 9, 2021

Looking for your Next Technician? Here’s a Great Idea!

An interesting idea published in Automotive News shares how some Texas dealers are gaining more technicians while helping people in need, namely military veterans. These Texas dealers created a 500-hour training program titled "Ford's Technicians of Tomorrow,” that launched in the Fall of 2020. It trains these military veterans in shop safety, warranty fundamentals, technical writing, and express service. The training results in certification as a chassis master by Ford and each graduate also receives tools valued at $4,000. 

 

Participating dealers sponsor these students who agree to work at one of the sponsoring dealerships to further their training and knowledge while employed in a full-time position, which inevitably leads to increased shop capacity. The sponsorships are also seeded by participating dealerships, Ford Motor Company, and the Texas Workforce Solutions of Central Texas.

 

This model could be an amazing opportunity for dealerships in other states to gain technicians and incorporate them into their company culture while increasing their capacity to service customers. Warranty work is typically less desirable than customer pay (CP) opportunities. Dealerships need revenue and the service department is held accountable for its department’s profit so many dealerships choose more lucrative ROs over warranty and recall work. This explains why some dealers are turning to recalls, which are considered warranty work, but consistently match in CP revenue. In addition, 49 states have passed legislation that mandates OEMs reimburse at the full retail rate for parts and service, as long as the dealership applies for the adjustment.

 

This program in Texas brings in technicians that have been trained thoroughly before joining the team, so dealerships also gain a technician certified by the OEM. And it provides an opportunity to help our former military service personnel in the process.

 

I also thought this was a great point made by Sam Pack, who owns four dealerships that participate in the program. In the article, he stated, "They're more mature candidates. They generally have families, are very punctual and very disciplined." Who doesn’t want a technician like that, much less an employee in general?

 

Technicians are getting increasingly hard to find and dealerships are up against their competitors trying to “outbid” each other and recruit at a higher cost. Why not gain trained technicians and do a good deed for those who have served our country at the same time? It creates a whole new pool of automotive technicians. And now you don’t have to rely so much on future generations to enter the automotive technician job pool. Consider forming a similar opportunity in your state. It’s working for Texas dealers. Why can’t it work for your state?

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Sep 9, 2021

Do the Work to Secure Retail Rates and You’ll Save Technicians from Defecting

At the end of July 2021, a new law passed in Illinois requiring dealerships to pay retail rates to technicians for the actual time and labor it takes to repair vehicles that are under warranty. The justification being that technicians are highly trained workers and should be paid wages that mirror the high-tech compensation of other industries. This could be both good and bad for dealerships if this trend spreads to other states in the nation.

 

1.    Dealerships in states that have passed legislation requiring manufacturers to pay retail rates for warranty and service repairs won’t be affected IF they also passed that labor rate increase to their technicians. Dealerships that have NOT passed the increase to their technicians will need to. As such, dealerships will see a drop in their net service revenue or risk losing some technicians to competitors.

 

2.    Dealerships in states that have NOT passed legislation requiring manufacturers to pay retail labor rates for warranty and recall repairs will be forced to pay their technicians retail labor rates while the dealership continues to receive manufacturer-mandated rates. This will REALLY hurt dealerships since they may end up having to pay more to the technicians than what they are receiving from the manufacturer or, at the very least, get close to breaking even.

 

This Illinois legislation should ultimately force Automobile Dealers Associations in states that have NOT passed similar legislation to do so, as dealers will be seeing a decrease in service penetration. Most dealers are surprised when they learn that a factory submission isn't their only choice. In fact, 49 states have some type of legislation in place that allows dealers to perform a statutory labor rate submission. The purpose of a statutory submission is for a dealer to achieve warranty labor compensation at its retail rate, which is a market-driven rate based on its warranty-like customer-pay repair transactions. Any dealer who is submitting for a labor rate increase should be evaluating its factory protocol and its statutory protocol to determine which is most advantageous.

 

Technicians are in high demand. Increasing their wages based on the work they perform rather than what the manufacturer will pay should benefit dealers by attracting more technicians, thus alleviating some of the demand versus supply issue.

 

In addition, it could encourage young individuals to choose to train to be an automotive technician. This then increases the available workforce, increases supply, and makes it easier for the dealerships to find new technicians. This, of course, is a long-term result. It won’t be instantaneous for the younger workforce to join the labor pool and discover that being an automotive technician is a lucrative position.

 

 Keep in mind that software and electronics recalls were the largest category of recalls, affecting 7,541,325 vehicles from 77 NHTSA recall campaigns. These are exactly the types of recalls that more tech-savvy technicians – many of whom can be new to our industry – can tackle without years as a master technician. This is how we’re going to resolve a technician shortage while also generating more revenue.

 

Remember, the consumer probably has little knowledge of or interest in any of this. They simply want the dealership to fix their vehicle and ensure it is safe, regardless of whether it's routine maintenance, customer-pay, warranty or recall repairs.

 

It is likely to be quite a balancing act. What are your thoughts on what this will mean for the future of service departments and technicians?

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Sep 9, 2021

Is it Time to Prepare your Dealership for the New Market?

In the last month or so, several automotive manufacturers have announced production cuts. One would think that is perhaps counterintuitive in the sense that, with a market severely lacking new vehicles, shouldn’t OEMs ramp up production rather than decrease it?

According to the Wall Street Journal, Ford recently announced plans for “permanent reductions” of new vehicles and is also planning to push consumers into custom building their vehicles. According to the article, the factory will then build those specific vehicles rather than sending “hard-to-sell models that end up collecting dust and lead to profit-sapping discounts.”

Whether Ford is referring to huge rebates on their end, or if they believe they are helping their franchises, is still undetermined. Due to franchise agreements, Ford can’t “sell” vehicles direct to the consumer. But, to many, the process feels like a little end-around for OEMs to control dealerships’ inventory and availability.

The service “disrupters” are also increasing in number. A recent article in TechCrunch illustrates a fairly new service disrupter that has come on the scene - RepairSmith. Their primary offering is to provide automotive service to consumers right in their driveway. Not only is this a disrupter to franchise dealers, but also independents such as Jiffy Lube! RepairSmitth CEO, Joel Milne, states in the article, “We’re trying to disrupt probably the biggest retail industry that’s untouched by a tech.”

Service pick-up and delivery has been discussed for years – even pre-COVID. Some dealerships implemented it, but most didn’t. In the blink of an eye, it seemed that an at-home auto service where a customer (or their vehicle) never has to leave the driveway was unveiled. But this level of service costs the dealership much more than a simple pick-up and delivery service, as it requires more than a couple of drivers along with the loss of a technician, who are in short supply, for an extended period. Even if you simply factor in the transport time, that's a technician that could have completed the job at the dealership then immediately started on another one.

Do you think the combination of decreased production of new vehicles by automotive manufacturers, the continued market share increase from retail sales by Carvana, etc, and the introduction of service repair disrupters will hurt car dealerships? It’s hard to imagine that these new service models won’t. Car dealerships will be left with nothing other than the buying and selling of used vehicles at increasingly higher prices, while manufacturers control inventory, and service revenue is decreased by this new disruptive industry service.

It's only a matter of time before more disrupters appear on the scene to steal more market share from traditional dealership models. What are you doing to prepare and be competitive in these new market conditions?

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Jul 7, 2021

Don’t Lose Service Profits Due to Master Tech Scarcity

We’re not alone when it comes to a labor shortage. Data released in July by the US Bureau of Labor Statistics indicates job openings hit a record high in May. The increase largely reflects more vacant positions in the healthcare, education, accommodation, and food services sectors. But few industries have been as directly affected and had revenues hit as much as the automotive industry with the scarcity of technicians. Don't surrender. Much like the pandemic, this is another opportunity for your dealership to innovate!

Let’s start with some facts.

The availability of vaccines paired with a broader reopening of the economy has spurred a snapback in economic activity in recent months. But consumer demand has largely outpaced the ability of businesses to hire. In short, the business is there! 

Many dealers are missing out on a great profit center that is a win-win for consumers and dealers alike, and that is recalls. We’ve got more vehicle owners affected by recalls than dealers can take on due to a lack of technicians and/or service bays. It’s real – very real.  However, buried beneath the obvious discomfort is a workforce ready to get off the bench from binge-watching Netflix. 

The problem is that sadly, too many dealers feel that only their master techs or service bays with lifts can handle these recall repairs, so they are turning down service business unnecessarily. It can be quite profitable when you consider that several states have passed legislation making warranty and recall work billable at retail rates – Tennessee being the latest one, effective July 1, 2021. And it is something your customers need and want!

Let me show you the face of your future technicians. How do I know? Because my son is considering being an automotive technician as we speak. Sure, he’s my son and I’m going to brag a little. However, I also envision hundreds of thousands of kids in similar situations.  They're young, smart, ambitious, tech-savvy, and have grown up on a steady diet of watching others live extravagant lives through social media. The good news is that they want to make money. However, you also need to recognize that this generation is not immediately drawn to what they consider "blue-collar" careers -- or getting grease and oil under their fingers – stereotypes that don’t always hold true. 

At the risk of dating myself, I grew up with cars. I took four years of auto shop and spent it rebuilding a 1968 Chevelle from the ground up. With all that love for cars and experience under the hood, even I didn’t end up as a technician. So, when I look at my son and realize that this generation doesn’t have the same fascination with getting under the hood, it’s no wonder we’re short on techs. However, what drew my son to this career path is a combination of several attributes that we need to leverage as an industry. 

  1. 1. Today’s cars are just really big computers that roll. Tomorrow's technician has a passion for technology, computers, smartphones, robotics, and everything that yesterday’s grease monkey didn’t have. We’re going to need both skillsets in the service center of the future.
     
  2. 2. The money is good. Compare the starting pay for a marketing position to an automotive technician. Shops are climbing tall fences to secure talent coming out of tech schools, bringing significant signing bonuses with them.
     
  3. 3. Tomorrow’s techs crave more flexibility. It’s happening in offices too – they don’t want to be stuck in a cubicle. For service departments, highlight opportunities with your mobile repair team, or outdoor service environments where a lift is not required, and you can offer a more interesting work environment.
     
  4. 4. Remove barriers to entry such as having to invest in every tool under the sun. More repairs require laptops, so new techs may be turned off by spending money on tools such as ratchet extenders, ball-joint splitters, and other lesser-used tools.
     
  5. 5. Create a culture where new recruits can immediately feel part of the team. Discourage cultures that encourage bullying. True, most of us paid our dues. However, in this new era, the teasing and jokes may intimidate younger staff and foster an unhealthy environment that pushes them out. There’s no room for pranking in a shop.
     
  6. 6. Promote quickly. Let’s get beyond how us old guys used to do it. Truth is, we should be encouraging all races, sexual orientations, and genders to look at our industry. And, once they arrive, show them the blueprint for promotion. Reward them for ongoing training and development, as well as a willingness to play an active role in the team. This generation wants to belong and craves recognition.   

If you are short on experienced technicians and competing to hire more of them, consider hiring inexperienced technicians that can be quickly trained to complete software, electronics, and airbag repairs that don't require a master technician or a bay with a lift. And also consider changing your staffing strategy so it is not just a matter of hiring more inexperienced people for these tasks, but it can also help to allocate technicians appropriate to the repair at hand, in some cases freeing up a master tech. Even more promising for the dealership is the chance to recruit and nurture the next generation of technicians who want to earn significant income earlier in their careers.

Consumers come to your dealership to get a problem solved. Rather than being the one that says "No" what if you were the one that said "Yes?" Do you think that would make an impression on the customer? What happens when a customer has a good experience with a dealership? They tend to keep coming back! That can easily lead to future revenue for a service department albeit warranty, recall, or customer pay work. In addition, when it comes to recalls you have no competition from the independent facilities as they cannot do recall repairs

Showing a customer that you care, providing the service they want (and need), and ensuring that they leave the dealership feeling confident the vehicle they are driving is safe for them and their family, goes a long way towards building trust and customer loyalty. Your staff is an extension of your dealership. Provide a safe and healthy environment for recruits and it will show up in your service drive with consumers and in the quality of the work.

Let’s stop blaming staffing shortages for leaving consumers without solutions to their dangerous recalls. It’s going to take out-of-the-box strategies and a culture that attracts tomorrow’s talent.

 

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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Sean Reyes

Recall Masters

Jun 6, 2021

Privacy or Safety -- Why Should We Choose Which Is More Important?

When it comes to vehicle recalls, I have always believed that safety comes first. One major challenge is the millions of vehicles on the road with open safety recalls and, with many vehicles changing hands privately, it is a monumental effort to identify those owners and notify them about an open safety recall and the risk to them, their families, and fellow drivers.

And then consider owners who never transfer a title or registration and continue to drive the vehicle on the original owner’s plates. Legislation is already being passed in at least one state which gives vehicle owners more time to transfer registration due to COVID. If the registered owner of the vehicle no longer “owns” it, they will probably simply trash the recall notice -- if they get one at all.

So, what can be done to identify those drivers and their vehicles?

Well, there has been quite a bit of buzz recently about technology such as tracking smartphones, CCTV cameras, facial recognition technology, and license plate readers -- to name a few. The problem, according to law enforcement, has always been that, while they have all this data, it is not connected in any way. Not anymore. Technology now exists which combines multiple data sources into one. Something that would take observers or investigators hours or even days to combine and analyze can now be done in seconds via this software. The military has been using it for a while and even a few municipalities in our country. Sounds scary, right? The makers of this software agree, but it exists, and Pandora’s box has been opened.

There are no current laws that prohibit this exchange of data. Should this become the standard -- the ability to track any individuals while they travel on public roads? There are even more invasive aspects of this technology. However, it’s possible to also use this same technology and data to save lives at risk of a dangerous recall.

Combining the license plate readers with facial recognition could match up who is driving a vehicle versus who it is registered to. Through those datasets, the government, services like ours, and even dealerships could reach out and notify the right person – that 2nd and 3rd generation owner, along with those who haven’t registered or transferred title to a vehicle.

I’m not advocating this specific solution or that the lines of individual privacy aren’t blurred here, but it is an intriguing conversation to have. In the name of public safety, I wouldn’t rule out developing technology. This may sound dystopian or something out of George Orwell’s book “Big Brother,” but it exists right now and is already being used. Absent a legal challenge, more states, cities, counties, and the Federal government will continue to adopt and install these systems. If we know that the technology exists and that it is already in use, it’s possible that NHTSA would deploy this strategy to instantly connect the dots and increase safety recall repair completion rates.

Do you think the use of this technology to keep the roads and drivers safe is warranted? Or is too intrusive when it comes to an individual’s privacy? I value your opinions on this topic!

Sean Reyes

Recall Masters

Chief Marketing Officer

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.

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