Driven by the EPA, the economy, the price of fuel, the “green” movement, and consumer demand, the automotive industry continues to be pushed to manufacture more fuel-efficient vehicles.
This is not breaking news; it has been a fact for the past 40+ years. In part, the push is a political issue (keeping the government out of – or more involved in – American business…depending on your perspective); in part it is a national security issue (reducing our oil dependence on foreign nations and governments); in part it is an environmental issue (reducing our carbon footprint); and in part it’s a financial issue (the less you spend on fuel, the more you have to spend on other stuff).
For parts and service departments, the national conversation about improved fuel economy is an open door of opportunity to increase gross profits while saving vehicle owners’ money and helping the environment—it’s a triple win!
A clean fuel system is an efficient fuel system that lowers the consumers’ “pain at the pump” while helping the environment and providing a fresh source of revenue for the dealership—it’s a triple win!
Fuel injection and air induction system cleaning services come in a variety of application methods depending on make, model, and fuel system configuration. Many vehicle manufacturers acknowledge the importance of a clean fuel system and recommend routine maintenance to that end.
Direct injection engines have greatly increased fuel economy without sacrificing Americans’ thirst for power and performance. When you combine direct injection with variable valve timing and low-tension piston rings, you get a high-performance, fuel-efficient marvel…If you keep the system clean!
Therein lies the service opportunity: 1) Cleaning up dirty fuel and air induction systems and 2) keeping them clean.
More on the service later; for now, I want you to look at some interesting trends about fuel economy and missed predictions.
In 2012, the federal government projected the cost of gasoline in 2018 to be $3.65 per gallon. The actual average price of gasoline in 2018 was $2.47. Additionally, they predicted the American vehicle mix to be 62% cars and 38% trucks, when in reality in 2018 it was 32% cars and 68% trucks. (Source: 2012 EPA and NHTSA 2018 Projection as cited by NADA in Automotive News).
NADA makes a great point in an Automotive News advertorial when they observe that the EPA mandates OEMs to manufacture fuel-efficient vehicles, but they don’t mandate that consumers buy them. NADA goes on to say that affordability is the biggest factor driving Americans when purchasing a vehicle.
Retail customers, when faced with fuel efficient vehicles that are out of their price range, can always keep their existing car… or go with a pre-owned vehicle. And many are choosing the latter option. The ratio of new to used vehicles continues to drop…thus fewer new vehicles will be sold in 2019 vs 2018.
Again, therein lies the service opportunity: 1) an aging fleet that has seen fuel system deposits build up over mileage and time, 2) more of those aging vehicles on the road and 3) staying on the road longer. (Older vehicles need more fuel injection and air induction services!)
There have been a lot of headlines and a lot of hype about EVs…totally electronic vehicles. While the number of EVs are increasing each year, it will be a long, long time before EVs take over.
But hybrids are another story and that’s where your service department needs to focus. Hybrid technology continues to improve with better storage systems and shorter engine run times.
Shorter run times means greater chances for fuel and water to enter the crankcase due to blowby and condensation.
Hybrid fuel efficiency continues to increase, fuel consumption continues to decrease, therefore gasoline is stored in the tank longer. Gasoline oxidizes, absorbs moisture, and generally degrades the longer it is stored.
Therein lies the service opportunity: 1) Hybrids need unique preventive maintenance services to meet the above needs. 2) Across America, E-10 (gasoline with an ethanol content of 10%) is rapidly being replaced with E-15. Fuel oxidation, moisture absorption, corrosion, and deposit formation are going to increase. 3) Hybrid owners are environmentally conscientious and financially savvy to the economic benefits of a vehicle that sips fuel.
Now is the time for your service department to make hybrid-specific products and services available to this growing consumer base. Fuel and oil stabilization services, ethanol-proofing fuel services, and injector cleaning services are just a few of the new technology services you can offer to hybrid owners.
Every dealership in America has a fuel injection and an air induction service op code. Everyone says, “Oh yeah, we do fuel services.”
I recently did an analysis on a small dealership group that had seen 20,000 customers pay vehicles in the first 6 months of 2019. They have done a combined total of 400 fuel services: that’s a disappointing penetration of 2%. Look at it this way: 100% of the vehicles use fuel, yet only 2% got a fuel system service.
The bad news is they haven’t been selling fuel system services. The good news is they haven’t been selling fuel services – meaning that 98% of the cars they see for the rest of the year need one!
Run your numbers and see how your service department is doing. Now’s the time to promote fuel services in your dealership.
Just to clarify, a fuel injection service cleans the injectors, combustion chamber, and intake valves (on port fuel injection systems). An air induction service cleans the throttle plate, air intake, and plenum. (Special equipment and chemistry is needed to clean intake valves on direct injection engines because the fuel does not “wash across” the intake valve).
Modern fuel systems are extremely complex, but one thing is easy to understand. If you keep the air passageways clear and the fuel passageways free of deposits, the vehicle will perform at peak efficiency!
Your “green” customers can be even greener, your “thrifty” customers can recognize greater financial savings, and your “power and performance” customers can get more power when they follow your maintenance recommendations. Savvy managers make sure their advisors know how to sell service to each group.
Happy sales to you!