Though dealers may think they are far removed from the trade spat between China and the U.S., in fact the steel and aluminum tariffs are increasing the cost of manufacturing vehicles and the tariffs on Chinese imports – the Section 301 tariffs that is – are impacting the cost of imported parts and materials from China. Those increased costs are bound to trickle down to the dealerships.
Though dealership service departments aren’t feeling a big impact yet in the cost of replacement parts, which are impacted by the 301 tariffs, that may not last for long if the tariffs are expanded and increased to 25 percent.
I mention this because, as some of you may know, I also write for Automotive News Fixed Ops Journal. I’m working on a story right now on the impact of the tariffs on service departments. If you have any thoughts on this topic, please drop me an email.
In this week’s issue, I profile the Burlington Automotive Group. It’s growing and doing well. One of its strength is the ability to hold on to employees. Read more about its growth strategy and operations here.
Also this week, Chris Saraceno, who both consults and works in the trenches i.e. at a dealership, returns to ABSR with a look at the habits of a healthy, profitable dealership. Among them: Continuously improve and embrace change. Burlington Auto Group would likely agree – it is testing a subscription program providing vehicles to Uber and Lyft drivers.
And … Transaction News.