MSOs are taking another look at fleet work, according to Search Auto Parts.
Mike Quinn said he saw a shift among some fleet managers over the last decade he operated an MSO collision repair business.
“In the past, a lot of fleet managers were more about wanted cars slapped together and the cheapest repair,” said Quinn, who sold his 7-shop Arizona-based chain in 2011. “Invariably that hurt them when they’d sell or trade in the vehicles. So I think over time more of them now want the repairs done right.”
Some MSO operators still view fleet work as the lifeblood solely of smaller operations with a single low-visibility location. But as frequency continues to decline, as MSOs’ capacity continues to increase and as insurance-paid consumer work becomes increasingly controlled with tighter margins, some MSOs are giving fleet work another look – and liking what they see.