Monday, June 1, 2009

Fortunes to be made by recycling Technicians from GM and Chrysler dealerships closing.





It’s no wonder why GM and Chrysler had to file bankruptcy because their understanding of the vehicle maintenance market is whacked. About 15 years ago, the big three automakers found they were loosing billions of dollars to aftermarket service centers such as Midas, Sears, Pep Boys and so on. They have spent fortunes building brands to cater to customers with maintenance service needs such as Mr. Goodwrench, Chrysler 5 Star and Ford Quick Lane. Now mind you for dealers to get a technician up to a certified level requires an investment of $10k to $30k dollars and to get one to Master Certified you’ll invest up to $50,000.00. I use these numbers and I know they are real because I have spent the past 30+ years-managing dealership service operations. I have worked with nine different manufactures in my career. These figures represent the amounts a dealer spends for schools, expenses, wages and lost productivity while tech is training. Having said all that here is my point. General Motors and Chrysler are shutting down dealerships that are staffed to rigid factory requirements. This means to be paid for warranty claims you must have your staff trained to a certain level, so many certified technicians and so many Master technicians and Certified Service Advisors. Now with obviously very little thought the management at GM and Chrysler has decided to just flood the aftermarket field with trained experienced talented factory trained employees. This means most of the aftermarket service centers can scoop up these highly trained very experienced technicians and advisors for not one dime. Yea it takes a real backward thinking individual to make the decision to just dump one of the biggest assets the dealer body had for generating income and profit. It will take years for GM and Chrysler to regain the market share they are just giving away without a thought. The one unseen benefit I see is coming from Ford Motor Company and their Quick Lane operations. Ford has focused on the aftermarket maintenance market and has grown to over 500 service centers as of early 2009. Quick Lane is just another of the good ideas coming from Americas better idea company. I would suggest any orphaned GM or Chrysler Technician and service advisors take the time to find their local Quick Lane and make application for employment. We can expect the aftermarket to pick up most of these unemployed professionals. While we all have had to make adjustments in the way we do business during this economic down turn, it’s good to know America still has one forward thinking corporation in Ford making it through tough times without having to ask for tax payer hand outs ( that will never be re-paid). The American public should reward Ford and its dealer body by being loyal to Ford while America’s automaker Ford responds to the American public building the vehicles they want rather than what some know nothing inexperienced bureaucrat wants you to buy and drive.

2 comments:

Anonymous said...

Very well thought out. There will be a lot of "trickle down effects" to this single move.

Hardcore Conservitive said...

This career will provide a good life without collage expenses,