As rising vehicle costs and aging car ownership push fixed ops back into the spotlight, dealers need to embrace artificial intelligence (AI) and invest in continuous training to stay competitive. In the latest episode of CBT Now, we’re joined by Dave Foy, founder of Fixed Ops Mastermind and WE ARE, who emphasizes the urgent need for innovation and leadership development in dealership service departments.
As the average age of vehicles in the U.S. exceeds 13 years, Foy emphasized that fixed operations departments can benefit—if they prepare accordingly. According to Foy, he claims, “That means good things for fixed ops departments who are ready to capitalize on it.” As customers hold onto cars longer due to affordability challenges, the demand for service grows, giving dealers a prime opportunity to enhance their operations.
Foy also highlights how AI vastly transforms service advisors’ and technicians’ operations. AI can automate tasks like pre-writing repair orders, preparing customer-specific estimates, translating complex technicians’ notes into customer-friendly language, and managing warranty documentation. These developments, he notes, are not yet years away. “We’re talking 12 to 18 months in advance for this,” Foy explains. This points to the current AI advancements that are unfolding far quicker than the five-to-ten-year timelines the industry is used to.
He also pointed to tools like UVI (Under Vehicle Inspection), which uses AI-powered inspection before a vehicle reaches the service advisors, and evolving scheduling systems that can optimize technicians’ time by analyzing past job performance. For example, instead of blocking a generic two-hour window for brake jobs, future systems may account for specific technician speed and vehicle type, significantly improving shop efficiency.
Notably, Foy dispelled the notion that AI is here to replace staff. “It’s about empowering who we have to be able to be more efficient with their time,” he said. In addition, he called on dealers to reframe their thinking, noting that AI is already a trusted part of everyday life, from GPS rerouting to digital assistants.
Beyond tech, Foy stressed the importance of consistent training at all levels– from advisors and techs to BDC agents and, notably, leadership. Foy notes that at his company, he pushes for daily micro-training and bringing in outside trainers for fresh perspectives. Foy asserts that organizations often overlook leadership development, promoting many fixed ops leaders from within who lack the necessary tools and guidance to manage their teams effectively.
He warned against the short-sighted mindset that views training as an expense. “If the trainer is effective, isn’t it going to bring more money to the bottom line?” Fitzpatrick asked rhetorically, a sentiment Foy echoed throughout the discussion. Even a modest 5% or 10% increase in service department profitability could more than offset the cost of regular training.
“Training is something that we do, not something we did.” – Dave Foy
