Coronavirus Causes Mayhem in the Auto Industry: Update

Corona Virus

Since the publishing of our last article on the novel Coronavirus, COVID 19, we have seen it go from pausing life in China to rapidly halting everyone’s day to day life around the world. We went from pondering the impact of shutting down Chinese factories to Amazon Prime isn’t delivering in a day? Wait, 30 days? Wait, toilet paper is unavailable? WTF 2020.
 
These days you’d be hard pressed to find an open car dealership, but their service bays are still open. The lack of focus from federal leaders has left everyone around the country wondering what’s next as they attempt to mitigate the waves of a halted economy.Have you filed for your Disaster Loan Assistance Yet?
Submit your application todayAs we try every trick in the book to keep our heads above water, the waves are still unpredictable and without a clear end in sight. As of this writing, we are not quite sure what’s happening as the unseen enemy is just getting started it seems. In the following months , we’re going to talk about how the auto industry is handling this pandemic, and how you can take this time to focus and reset your business. Make no mistake about these recent events, they are tragic; but within this tragedy, there are amazing opportunities for you and your business.
Read about our Pandemic To Do List.
    First and foremost, the issue of closing factories has made its way across the world. Industry giants across the world are accumulating idle factories all across the globe and leaving many people out of work. However, some of the United States’ top brands like GM, Tesla, and Ford are all trying to find ways to repurpose their facilities geared towards fighting the pandemic that is causing them all to lose business. President Trump announced that these brands will help the country by producing ventilators used to help patients who are suffering from critical cases of the Coronavirus. Another giant, Fiat Chrysler Automotive stated that it would be utilizing one of it’s factories located in China (someone ring an irony bell here) to begin to make over 1 million masks per month to protect people from being exposed to this extremely contagious virus. This type of mobilization of the American auto industry is similar to what has been seen during the WW2 era where these big brands worked hard to help the nation during a time of hardship.
  The next thing that is a major concern is the cash flow of the industry that now has come screaming to a halt. The hope is that government bailouts will assist these brands make it through a time of no production and no cars being sold. In South Korea, the auto industry is at the heart and soul of the country, accounting for 12% of the country’s workforce. With Europe and the United States making up 70% of the nations exports, the country is in trouble as it is becoming more apparent by the day that it will be quite some time for supply chains to bounce back. South Korea as a nation has come up with a $39 billion stimulus package that will try to help the country’s economy pumping during this time of uncertainty. The United States recently just reached a $2 Trillion economic bailout with $500 Billion in emergency loans to businesses. We only hope that some of that money is used to keep the service facilities that support local communities, alive and well.
 
   One the other hand, German auto giant Daimler has actually insisted on not receiving any financial aid during this time of crisis and ensures everyone that they will be just fine without it (shocking coming from a company that had its market value drop over 46% since January 2 of 2020.Here are some links to help you stay up to date on what is going on around the world and in our communities.
 
General Information:

John Hopkins University Coronavirus COVID-19 Global Cases Map
World Health Organization Coronavirus COVID 19 Information
Latest updates from the Centers for Disease Control and Prevention

 
What you can do:
CDC Steps to Prevent Illness

Subaru EyeSight Research Report

Subaru logo

March 2020
 Research Project: Understanding the failure rate of an uncalibrated windshield (After Replacement)
 Investigator: Ricardo Da Cruz
 Prepared by: Ricardo Da Cruz
Statement of Purpose:
This case study is designed to examine how the Eyesight system(s) available in current Subaru models react to not being calibrated after windshield replacement.
Research Questions:
The study examines three major questions: 
1.     What is the failure rate for object recognition prior to calibration?
2.     What is the failure rate for object recognition after calibration?
3.     What differences exist between OE and Autel?TL;DR:
Uncalibrated
51.6% Failure rate at night
10.0%-33.3% Failure rate during day (Percentage range is dependent on on data points below)
Uncalibrated runs, day or night, were plagued by inconsistent system crashing while failing.
Calibrated
0% Failure rate at night – 97% Accuracy Calibration
0% Failure rate during day – 98% Accuracy Calibration
Calibrated runs crashed system significantly less than uncalibrated.
OE Manufacturer information is mandatory when performing these services, regardless of tools used.
What does this mean??
If you replace a windshield and don’t have it calibrated, your Eyesight system in your Subaru is likely 50% less effective at night and at least 10% less effective during the day.Study Methodology:
To place a recognizable target in the path of the vehicle. Record and observe how the vehicle would react when presented with different external circumstances. Record findings at night and day.
Testing was carried out in an area awaiting redevelopment with ample room to bring a vehicle to speeds required for the Eyesight system to function as needed.
Testing was conducted with a variety of cruise control and non-cruise control variables. Vehicle would be driven at varying speeds at the target with documentation of each test pass.
All driving was recorded.
Tools Used:
2018 Subaru Impreza – Accident vehicle with windshield replacement. No codes stored; no calibration performed prior to testing.

Service Management Software: CAR
Subaru OE Information Subscription – 3 times.
Identifix
Autel Scan Tool w/ADAS Subscription
ADAS Hardware w/Calibration Target & Hardware
Battery Tender
Target – was designed/built inhouse. Made of simple materials that could be found at any Target and Home Depot. Designed to limit any potential vehicle damage caused by impact. Made to represent a person approximately 12 years or older in height. Needed to be replicated in less than an hour if broken beyond repair. Materials available upon request.1.     Nighttime testing, No Calibration:
Conditions: Cold, Clear, 9pm

61 test runs
47 center line passes
24 clear passes, all center line
20 clear fails, 18 center line fails, 2 Left Bias (LB) or Right Bias (RB)
 4 center line swerves, late warnings, swerved – High speed
1 Moving target, high speed, good warning time
6 All Systems Down – 2 at night
38 Night Runs: Failure test here was object recognition
23 Day Runs: Failure test here was object recognition
31 night runs at center, 16 fail 51.6% | 15 pass. 48.4% 

2. Day Time testing, No Calibration:
Conditions: Cold, Clear, 9am

16 day runs at center, 6 that are questionable because of much higher speeds
Removing those 6, has 10 remaining, 2 fail, one is questionable based on the results from calibration sample tests, the other is no longer question based on those same results.
10.0% failure rate assumed in this calculation, 90.0% passing rate assumed – I wonder if this has to do with the percentage rates you get on the machine when calibrating?
Leaving the 6 but removing 1 (included in the original 6 count) where the target moved (wind), 15 successful day runs at center. 10 passing, 5 failing for target hits.
33.3% failure rate assumed in this calculation, 66.7% passing rate assumed

3. Nighttime testing, CALIBRATED:
Conditions: Cold, Cloudy with Light Rain, 7pm – It got boring…
11 runs done, object recognition was 100%.
4. Day Time testing, CALIBRATED:
Conditions: Cold, Clear, 11am
21 runs done, object recognition was 100%.
Last 5 runs were done at 30mph+ on cruise control.
5. OE Information & Setup Findings

A little difficult to navigate if you’ve never used, much like all other OE systems.
Instructions were thorough, though difficult to attain a 100% reading.
Lack of information on understanding exactly what is the % reading and what it means.
OE Software is out of reach because of price.

6. Autel Information & Setup Findings

Calibration frame setup is not the best system for efficiency.
Subaru target does not line up with center of calibration frame.
Height leveling is a painful exercise that’s inaccurate and wastes time overall.
Target height is not the same as Subaru spec of 1000mm.

Video & Photo Documentation Available Upon Request.From our research in general the following is clear:
1.     The market still does not understand these systems, how to price their repair, or what’s really at stake or involved.
Calling 4 facilities yielded the following results. 

Subaru Dealer #1 – $465 for Eyesight calibration, blind spot calibration is done at the same time according to this dealer. 
Subaru Dealer #2 – $165 for Eyesight calibration and didn’t know what blind spot was, but came back on the phone and said the same exact price for all the services. $165 each.
Local collision facility – $250, claimed to “do a lot of work for Safelite”. Did not ask about blind spot. 
Safelite – $600

This information may not be used or republished without written consent.

Coronavirus Causes Mayhem in the Auto Industry

Crashing Stock Market

Over the past two months the coronavirus has gone from a slight concern to a global epidemic that has seen thousands get affected across numerous countries. As China dashes to contain the rapidly spreading virus, building one hospital in 10 days, it not only affects the people of China but is also having a major impact on the auto industry as well. Some of the biggest car brands in the world have made a major investment into their supply chain in the industrial nation.  Meanwhile parts of China have been placed on lockdown, some areas since January, companies and investors alike are becoming unsettled.
Auto Industry heavyweights from across the globe have major production in China, as the country makes more cars than any other country around the world. The likes of Volkswagen, Toyota, Daimler, General Motors, Renault, Honda and Hyundai all have planted their flag in the automotive hub and for the most part the relationship has been fruitful with these brands as they are able to cut production costs. Workers in China earn around $10 per day  opposed to the places most of these brands are from like, for example, America where the average minimum wage for an auto worker earns anywhere from $28-38 per hour ; a sizable difference in net profit and bigger earnings they bring to their investors.  One System, Fully Mobile, No More Fuss
Bringing You Into The New Automotive Era Starting @ $69.99
Digital Vehicle Inspection Reports
Included standard with every single account.  No extra fees or subscriptions. Learn More
Digitized Estimates, Authorizations & Invoices
Are you ready to eliminate the paper mistakes of the 20th century?  Go paperless with CAR’s service workflow and never go back. Learn More
Customer Communication
Built directly into our platform, not an afterthought that costs you extra monthly.  Standard with the basic subscription. Learn MoreSince China usually had most of its plants closed during this time of year because of the Lunar New Year holiday anyway, the industry has not yet felt the full effect of these closed factories. However, Hyundai has shut down factories in South Korea solely based on the fact that they cannot operate without the parts from China. A staggering 29% of Hyundai’s parts originate from China. The same thing is happening in Europe as Fiat Chrysler said that it has one of its plants is at risk if China is not back on track within the next couple of weeks. That being said, according to S&P Global Ratings, the outbreak is going to force carmakers in China to cut production by 15% in the first quarter, greatly hindering the global supply chain of many companies. GM CEO Mary Bara described the situation as “fluid” during the company’s capital markets day as she tried to put shareholders’ minds at ease amid the building panic of the overseas market.    Having over 60 million people living in lockdown alongside factories being shut down, is certainly enough to give anyone a moment of pause.  This is going to affect the biggest global brands in some way, but one automotive brand in particular has been put into an especially big predicament is Volkswagen. The German brand has put a lot of its eggs into one basket as 40% of the company’s production comes from 24 of its chinese factories.  Almost like they said, “Hey Hyundai, hold my beer while I show you what it really takes to put yourself at the mercy of others.”

Tesla’s Big Gamble

Tesla Factory

For years Tesla’s value has been skipping up and down like a heart monitor, volatility that is a result of emerging technology finding its footing in a crowded automobile market. Tesla’s new Gigafactory in China has the fire power to launch them from a luxury brand to a mass produced brand but also the combustibility to send them plummeting. Tesla has put itself in a great position in the American market; consuming a portion of luxury brand sales from Mercedes Benz, BMW, and Audi’s customer base. Depleting the bottom line from their luxury sales profits and forcing their budgets to expand into the electric market much faster than any of them would have likely wanted. Tesla’s commitment to the Chinese market, seems smart for the immediate future of the company trying to expand its reach. As Beijing weighs on slapping US automakers with a 50% import tax, Tesla would be mostly shielded from this with their new Gigafactory plans in China. You may also note that Tesla has a Gigafactory in Nevada where it produces the Model 3 electric motors and battery packs, in addition to Tesla’s energy storage products, Powerwall and Powerpack.China, having one of the largest automotive markets in the world, seems like an ideal location for Tesla to branch out and thrive. However, auto sales in China fell yet again for the 15th month out of the last 16 months. Many analysts have predicted this slide in the Chinese auto-market and we seemingly now are witnessing this decline as they struggle to offload inventory. Will Tesla’s China bet be the catalyst that finally crack pry’s strong market share numbers from other American giants GM, Ford, and Fiat Chrysler or will this gamble have been to big to bounce back from?Only time will tell as the EV wars push the envelope of vehicle manufacturing into realms that has automakers, salespersons and the individuals that service them…. At the edge of their seats.

CAR Update: February 2019

Ipad

January 2019 System Updates & NewsOn The Lot:
You can now mark a vehicle “On The Lot” and it’s to be treated as… “In My Possession”.  It helps unclutter the service request que considerably and allows you to quickly wrap your head around what’s going on at the moment.  We are still ironing this out, but the time is saves everyone at the shop here is noticeable to say the least.
You can now mark a vehicle “On The Lot” and it’s to be treated as… “In My Possession”.  It helps unclutter the service request que considerably and allows you to quickly wrap your head around what’s going on at the moment.  We are still ironing this out, but the time is saves everyone at the shop here is noticeable to say the least.
Inventory is now Live:
Inventory comes complete with the ability for you to import and export all of your parts through it’s own uploading system.  In addition to that, parts that are ordered through PartsTech are automatically entered into your inventory and start to count towards monthly totals that help you establish trends in parts you use the most.  There’s also a functional return que.  So if you order a part through PartsTech and remove it from an invoice, the system asks you if you are keeping it in inventory of if you are putting it in the “Return Que”, aka the return shelf.  This also has it’s own ability for you to mark parts as returned to a particular vendor, even allows for you to upload a photo of the return ticket the vendor leaves you with.
 
Inventory also comes with a “tagging” system.  The tagging system will allows you to basically organize your inventory according to your business.  So you can label your shelves like, “A2B”.  Shelf A, Row 2, Column B.  Maybe you have a particular high priced part in your office.  You can tag it with “Office”.  The possibilities are literally endless and it’s a simple system to implement.
Inventory comes complete with the ability for you to import and export all of your parts through it’s own uploading system.  In addition to that, parts that are ordered through PartsTech are automatically entered into your inventory and start to count towards monthly totals that help you establish trends in parts you use the most.  There’s also a functional return que.  So if you order a part through PartsTech and remove it from an invoice, the system asks you if you are keeping it in inventory of if you are putting it in the “Return Que”, aka the return shelf.  This also has it’s own ability for you to mark parts as returned to a particular vendor, even allows for you to upload a photo of the return ticket the vendor leaves you with.
 
Inventory also comes with a “tagging” system.  The tagging system will allows you to basically organize your inventory according to your business.  So you can label your shelves like, “A2B”.  Shelf A, Row 2, Column B.  Maybe you have a particular high priced part in your office.  You can tag it with “Office”.  The possibilities are literally endless and it’s a simple system to implement.
Employee Management is Enhanced:
We have built in some features to better control employee timers and control the session of each individual who is working on filling out tickets.
We have built in some features to better control employee timers and control the session of each individual who is working on filling out tickets.
Reduced Repetitive Steps:
We have added functionality that auto fills the state, timezone and customer type for each customer as well as the vehicle license plate state.  Saving you a few seconds each time from having to select them.
We have added functionality that auto fills the state, timezone and customer type for each customer as well as the vehicle license plate state.  Saving you a few seconds each time from having to select them.
Consolidated Closing of Service Requests:
A work in progress to help speed up some of the quicker/shorter service requests.  There are other additions to this coming this month as well.
A work in progress to help speed up some of the quicker/shorter service requests.  There are other additions to this coming this month as well.On the docket for this month is…

Price Matrix – Linear
Plate To Vehicle Information
Diagnostic Time Option When There Are Rejected Jobs
Learn While You Use – A help feature is being built in to help you accomplish basic steps to help you adjust to a new system.

Price Matrix – Linear
Plate To Vehicle Information
Diagnostic Time Option When There Are Rejected Jobs
Learn While You Use – A help feature is being built in to help you accomplish basic steps to help you adjust to a new system.

Electric Vehicle Revolution: How This Affects Your Shop

Car Battery

Now, we have talked about how electric vehicles are affecting the big companies and the government but now let’s tie it all together how this all boils down to affect your shop. New vehicles require new tools and more training, this is not a secret. What you may not be aware of however is the magnitude of the changes these electric vehicles pose for you and your shop. As I mentioned previously both the corporations and countries around the globe all plan on going electric and it will be up to you to make sure you are prepared.The first thing you need to do is make sure that you are properly trained to work on these new battery powered vehicles. While you may believe that you are skilled enough vehicle technician and do not need additional training that is most likely not the case. According to the UK’s Institute of the Motor Industry 97% of active mechanics are not qualified to work on electric cars. This is a staggering number and just reaffirms what we have been discussing, this is not the end of the world however as there is a numerous training programs you can take part in for little or no cost to you. Even if you decide against taking these courses here are some things that the new wave of mechanics in the industry are going to be trained in:Advanced Energy Storage
Advanced Energy Storage is an introduction to energy storage systems for electric vehicles. It covers the fundamentals of energy conversion including thermodynamics, chemical energy storage in fuels and hydrogen, electrochemical systems for storing energy, battery chemistry in charging and discharging batteries, and the sustainability of advanced energy storage systems. This course also compares the environmental effects of current fossil-fueled energy systems and conversion processes with more sustainable systems using renewable energy and more efficient conversion processes.
Advanced Energy Storage is an introduction to energy storage systems for electric vehicles. It covers the fundamentals of energy conversion including thermodynamics, chemical energy storage in fuels and hydrogen, electrochemical systems for storing energy, battery chemistry in charging and discharging batteries, and the sustainability of advanced energy storage systems. This course also compares the environmental effects of current fossil-fueled energy systems and conversion processes with more sustainable systems using renewable energy and more efficient conversion processes.
Automotive Systems
Automotive Systems is an introduction to today’s automobiles, including Hybrid Electric Vehicles. Topics include exposure to various pieces of automotive shop equipment and details of the automotive service business. A working knowledge of basic automotive components and general maintenance necessary for vehicle operations will be emphasized. This course also promotes a basic understanding of alternative fuel and HEV vehicle technology.
Automotive Systems is an introduction to today’s automobiles, including Hybrid Electric Vehicles. Topics include exposure to various pieces of automotive shop equipment and details of the automotive service business. A working knowledge of basic automotive components and general maintenance necessary for vehicle operations will be emphasized. This course also promotes a basic understanding of alternative fuel and HEV vehicle technology.
Electric & Hybrid Vehicle Technology
Electric and Hybrid Vehicle Technology provides an overview of electric and gas-electric hybrid vehicle fundamentals. It describes the fundamentals of the operation, diagnosis, and repair of electric and hybrid vehicles. Topics covered include EV and HEV batteries, fuel cells, electric motor controllers, invertors, and auxiliary accessories.
Electric and Hybrid Vehicle Technology provides an overview of electric and gas-electric hybrid vehicle fundamentals. It describes the fundamentals of the operation, diagnosis, and repair of electric and hybrid vehicles. Topics covered include EV and HEV batteries, fuel cells, electric motor controllers, invertors, and auxiliary accessories.
Electric Vehicle Data Acquisition, Sensors and Control Systems
Electric Vehicle Data Acquisition, Sensors, and Control Systems emphasizes the sensors, microprocessors, and digital communications systems used in modern vehicles to optimize vehicle performance. Topics include a review of electrical and electronics theory, transistors, gates, vehicle network theory, vehicle embedded controllers and communications protocols, sensors, actuators, the major systems in internal combustion and electric drive or electric assist vehicles, vehicle emissions and emissions control systems, and selected topics in power control. Using network analysis tools, the student will gain a broad knowledge of the networks and communications used in modern automotive systems.
Electric Vehicle Data Acquisition, Sensors, and Control Systems emphasizes the sensors, microprocessors, and digital communications systems used in modern vehicles to optimize vehicle performance. Topics include a review of electrical and electronics theory, transistors, gates, vehicle network theory, vehicle embedded controllers and communications protocols, sensors, actuators, the major systems in internal combustion and electric drive or electric assist vehicles, vehicle emissions and emissions control systems, and selected topics in power control. Using network analysis tools, the student will gain a broad knowledge of the networks and communications used in modern automotive systems.
Electronic Technology
Electronic Technology is an entry level course on the theory of series, parallel, and series-parallel D.C. Circuits. It is the first part of a two-part electronics course. Topics included in this course include using meters to measure and evaluate signals and voltages, identifying basic electronic components of actual and schematic symbols, and analyzing and solving circuits using the Superposition Theorem and Ohm’s, Watt’s, and Kirchhoff’s Laws.
Electronic Technology is an entry level course on the theory of series, parallel, and series-parallel D.C. Circuits. It is the first part of a two-part electronics course. Topics included in this course include using meters to measure and evaluate signals and voltages, identifying basic electronic components of actual and schematic symbols, and analyzing and solving circuits using the Superposition Theorem and Ohm’s, Watt’s, and Kirchhoff’s Laws.
Introduction to Electric Vehicle Propulsion Systems
Introduction to Electric Vehicle Propulsion Systems is an introductory course that provides practical training in the theory and design of battery-powered electric vehicle propulsion systems. Topics include the rationale for electric vehicles, safety, battery technologies, basic battery testing, electric machine (motor) types, electric machine operation, power management, power inverters, DC to DC converters, and accessory systems. This course also covers potential future technologies in electric vehicle propulsion systems.
Introduction to Electric Vehicle Propulsion Systems is an introductory course that provides practical training in the theory and design of battery-powered electric vehicle propulsion systems. Topics include the rationale for electric vehicles, safety, battery technologies, basic battery testing, electric machine (motor) types, electric machine operation, power management, power inverters, DC to DC converters, and accessory systems. This course also covers potential future technologies in electric vehicle propulsion systems.The new wave of electric vehicles coming in is far different than other big changes in the industry lately. These fixes aren’t just about new tools like when power steering was introduced rather it is a pivot from less physical tools and more diagnostic tools on your computer/ mobile device. The reasoning behind this logic is think about what jobs electric vehicles do not require, there’s no fluids drain, no oil to change, no transmission system to fix, and no spark plug to change. They have far less moving parts than a vehicle that runs on fossil fuel which changes what your shop will focus on to thrive as a business. For instance there was a test done where a Tesla Model S, Mercedes S-Class, and a Lincoln Town Car all drove 300,000 miles and then tallied the maintenance costs after the fact. At the end of the trip the Tesla only needed $6,900 worth of work while the Mercedes and Lincoln needed $52,000 and $28,000 respectively. While a lot of your usual jobs would be cut down significantly there are still a bunch of jobs that would need to be done (brakes, tires, axles, framework) and on top of that opportunity for new jobs like replacing damaged batteries and control circuit boards, and performing diagnostics on a vehicle’s control panel. This means you are going to have to train yourself to be more like an IT person with a car lover’s mind.My last issue I would like to bring up is the threat of these electric car companies boxing out local repair shops from working on their vehicles. Not only does Tesla claim that 80% of all repairs can be done without having to go to a service center but they are doubling down and have hired and trained their own technicians within their company that can go and repair their customer’s vehicle right from their driveway! As I mentioned earlier there has been a pivot from having to repair the hardware to focusing in on the software. These vehicles are beginning to have solutions to problems available from “over the air” updates meaning issues can be solved the same way your phone fixes a bug.
This is not an article to tell you that your business is in danger but rather it is to let you know that we are at a turning point in the automotive industry and it is time to prepare your staff and yourself for the new set of problems you will be faced with. Over the next 20 years someone won’t come in complaining their exhaust pipe is making a strange noise or their engines making a pinging sound but rather they will be asking about their battery cells or will need help boosting their transformer converters.The question isn’t about whether cars will need to be repaired anymore, people still are going to find ways to create problems with their car the question is will you be ready to offer them a solution.Check out the rest of this series to find out how your shop will be affected by this new wave of vehicles.Government 
Industry 

Electric Vehicle Revolution: Industry

Tesla Charge Point

It has become clear that since the beginning of the new millennium there has been a shift in the automotive industry. The first big change came when the assembly line was created leading to more vehicles on the road for much cheaper. Then there was the electronic fuel injection which improved vehicle’s engine efficiency. Now, since the start of the 2000’s, the newest big wave in the auto industry is electric vehicles. We have seen this shift coming for a while, from the introduction of hybrids to touch screens being standard equipment, you would be naive to think it’s a passing fad. Both the businesses and consumers are pouring money into these new vehicles because they understand that now is the time to go electric!Growing Investments by International Brands
Over the course of the next 20 years you will begin to see a lot more electric vehicles on the streets and this can be seen now with the investments that are going into this technology today. It isn’t a secret that the heavy hitters in the business are dumping billions of dollars into the electric market to not only keep up with their consumers needs, but also because of pressure from the government. Ford for instance is investing $11 billion by 2022 to convert 40 of their models to either be hybrid of fully electric. It isn’t just Ford that is pouring money into these vehicles; Mercedes looks to spend $11.7 billion to try and have 10 purely electric vehicles and 40 hybrids while Volkswagen looks to invest $40 billion by 2030 to build electric versions of its 300-plus global models! According to Bloomberg’s “Electric Vehicle Outlook” they are projecting that by the year 2040 55% of all new car sales and 33% of the global fleet will be electric compared to the current less than 1%.
This is not only going to increase the output of electric vehicles on the road but also increase the amount of money being pumped into this market as well. Within the next ten years the global electric vehicle market is going to increase to $912 billion. With this amount of money being spent on the production of electric vehicles, it is obvious that there is a ton of business opportunity as well. According to Reuter the electrification of vehicles has attributed to the creation of 250 startups that are attracting more than $20 billion in venture capital. On top of these, there are an additional 50 electric vehicle startups that are trying to strike while the iron is hot and while people are still dumping money into this industry.
Over the course of the next 20 years you will begin to see a lot more electric vehicles on the streets and this can be seen now with the investments that are going into this technology today. It isn’t a secret that the heavy hitters in the business are dumping billions of dollars into the electric market to not only keep up with their consumers needs, but also because of pressure from the government. Ford for instance is investing $11 billion by 2022 to convert 40 of their models to either be hybrid of fully electric. It isn’t just Ford that is pouring money into these vehicles; Mercedes looks to spend $11.7 billion to try and have 10 purely electric vehicles and 40 hybrids while Volkswagen looks to invest $40 billion by 2030 to build electric versions of its 300-plus global models! According to Bloomberg’s “Electric Vehicle Outlook” they are projecting that by the year 2040 55% of all new car sales and 33% of the global fleet will be electric compared to the current less than 1%.
This is not only going to increase the output of electric vehicles on the road but also increase the amount of money being pumped into this market as well. Within the next ten years the global electric vehicle market is going to increase to $912 billion. With this amount of money being spent on the production of electric vehicles, it is obvious that there is a ton of business opportunity as well. According to Reuter the electrification of vehicles has attributed to the creation of 250 startups that are attracting more than $20 billion in venture capital. On top of these, there are an additional 50 electric vehicle startups that are trying to strike while the iron is hot and while people are still dumping money into this industry.
Increasing Interest by Consumers
On top of businesses spending billions of dollars on electric vehicles many consumers are looking to invest in electric vehicles as well. According to Consumer Report 31% of Americans are going to be looking to purchase an electric vehicle next time they are in the market for a new car. It is no mystery that it is much cheaper to own a hybrid vehicle as you eliminate the need to fill up your car regularly with gas. For example take a 2019 Nissan Leaf, its average rated efficiency at 99 mpg would cost you $4.08 in kilowatt/hours to go 100 miles vs. a car that is 25 mpg that would run you $10, since the average price of gas in the United States is $2.50. This is why ⅔ of the people that said they would be purchasing an electric vehicle said they would be getting one for the long term return on investment. While this increased demand has resulted in the amount of tax incentives going down a bit, you have to think of the bigger picture. You have to think about the amount of money you will save when more and more of these vehicles go on the market for resale. On top of the money that you will be saving on purchasing one of these vehicles as used, you can still get tax credits on top of the incentives the government offers. These government incentives are due to them trying to reduce the amount of carbon emissions being produced (we get into this in the “Government” addition of this series).
On top of businesses spending billions of dollars on electric vehicles many consumers are looking to invest in electric vehicles as well. According to Consumer Report 31% of Americans are going to be looking to purchase an electric vehicle next time they are in the market for a new car. It is no mystery that it is much cheaper to own a hybrid vehicle as you eliminate the need to fill up your car regularly with gas. For example take a 2019 Nissan Leaf, its average rated efficiency at 99 mpg would cost you $4.08 in kilowatt/hours to go 100 miles vs. a car that is 25 mpg that would run you $10, since the average price of gas in the United States is $2.50. This is why ⅔ of the people that said they would be purchasing an electric vehicle said they would be getting one for the long term return on investment. While this increased demand has resulted in the amount of tax incentives going down a bit, you have to think of the bigger picture. You have to think about the amount of money you will save when more and more of these vehicles go on the market for resale. On top of the money that you will be saving on purchasing one of these vehicles as used, you can still get tax credits on top of the incentives the government offers. These government incentives are due to them trying to reduce the amount of carbon emissions being produced (we get into this in the “Government” addition of this series).
Investing in Your Electric Vehicle
Once you own one of these vehicles, the last thing you need is to install a charging station in your home and you will have an unlimited power source for your vehicle. A Level 2 Electric Vehicle Charger will cost you around $350-$700, and then a couple hundred extra to have the device installed into your home by an electrician. This part is up to you, the more money you spend on the charging station and installation, the less time you will spend charging your car at charge stations and save yourself time and money.
Once you own one of these vehicles, the last thing you need is to install a charging station in your home and you will have an unlimited power source for your vehicle. A Level 2 Electric Vehicle Charger will cost you around $350-$700, and then a couple hundred extra to have the device installed into your home by an electrician. This part is up to you, the more money you spend on the charging station and installation, the less time you will spend charging your car at charge stations and save yourself time and money.If you personally are still not a believer in the electric vehicle movement let the money give you all the proof you need. Hundreds of billions of dollars are being poured into producing and improving electric vehicles, if these big companies like Ford and Volkswagen did not believe in this movement than trust me, they would not be putting tens of billions of dollars on the line trying to beat out their competitors. Not only are the big companies spending money on electric vehicles but you can see for yourself the staggering increase of electric vehicles hitting the road everyday on your commute to work. A few snowflakes are beginning to turn into an avalanche; a small trend turning into an entire industry of its own and is beginning to make headway as the future of transportation.Check out the rest of this series to find out how your shop will be affected by this new wave of vehicles.Government 
Service Facility 

Electric Vehicle Revolution: Government

Charge Point with U.K Flag

With the importance of carbon emission reduction in the spotlight, you are sure to have come across several news stories or articles within the last five years. But, what does that actually mean for the US and the future of transportation and vehicles? According to the EPA, in 2016, the biggest culprit of CO2 emissions was transportation, accounting for over 28% of 2016 greenhouse emissions. Governments around the world are implementing laws and increasing incentives to encourage people to purchase more environmentally friendly vehicles. With advancements in technology and an increase in popularity, people now have access to electric vehicles with longer battery life and convenient public charging stations. If we follow the lead of other countries who have forward-thinking rules and policies, such as Norway and Netherlands, it is clear where this road will take us.North America Making Strides
For starters, let’s take a look at some of the policies in North America. Two out of the three countries (Canada and Mexico) have begun implementing a tax on carbon; a way to encourage a transition to more environmentally friendly means of operating vehicles. Not only does it raise awareness and help the environment, it also increases the country’s tax revenue. In an article published by C2ES, a 2017 study by the US Department of Treasury, estimated “a tax of $49 per metric ton of carbon dioxide could raise about $2.2 trillion in net revenues over 10 years” for the US. Adding a carbon tax can be an effective way to dissuade people from continuously purchasing fuel guzzling vehicles. In the United States, tax credits for the purchase of electric vehicles range from  $2,500-$7,500 , depending on the size of the vehicle and its battery capacity. Even though the United States is viewed as a powerhouse in the automotive industry, Europe and China are actually are ahead in electric vehicle sales.
For starters, let’s take a look at some of the policies in North America. Two out of the three countries (Canada and Mexico) have begun implementing a tax on carbon; a way to encourage a transition to more environmentally friendly means of operating vehicles. Not only does it raise awareness and help the environment, it also increases the country’s tax revenue. In an article published by C2ES, a 2017 study by the US Department of Treasury, estimated “a tax of $49 per metric ton of carbon dioxide could raise about $2.2 trillion in net revenues over 10 years” for the US. Adding a carbon tax can be an effective way to dissuade people from continuously purchasing fuel guzzling vehicles. In the United States, tax credits for the purchase of electric vehicles range from  $2,500-$7,500 , depending on the size of the vehicle and its battery capacity. Even though the United States is viewed as a powerhouse in the automotive industry, Europe and China are actually are ahead in electric vehicle sales.
How Europe Measures Up
When you think of Europe’s involvement in the automotive industry, your mind may initially go to the U.K or Germany. In reality, Norway and the Netherlands lead the European nations in their transition to becoming fully electric and eliminating the need to import or use any fossil fuel based vehicles. Norway has had a huge influx in its electric vehicle market, having sold more electric than gas powered vehicles, making the government’s plan to go “zero emission” by 2025 very likely. In a similar fashion, the Netherlands is pushing to go emission free in a few years, leading the pack in electric vehicle sales. The Netherlands waives registration fees for those purchasing electric vehicles. France, another EV friendly European country, offers a $6,500 bonus for purchasing purely electric vehicles and a $4,500 incentive for anyone bringing their diesel-powered vehicle to be scrapped. On top of these incentives, they are doubling down and aim to have 100,000 public charging stations by the year 2020. Lastly, one of the global giants of the automotive industry, the U.K, has been going all in on electric vehicles over the past few years. The U.K plans on spending $530 million in funding for companies that install charging points, helping them further establish a solid electric-car infrastructure. These policies have led to a huge upswing in EV sales as Europe doesn’t want to be left behind.
When you think of Europe’s involvement in the automotive industry, your mind may initially go to the U.K or Germany. In reality, Norway and the Netherlands lead the European nations in their transition to becoming fully electric and eliminating the need to import or use any fossil fuel based vehicles. Norway has had a huge influx in its electric vehicle market, having sold more electric than gas powered vehicles, making the government’s plan to go “zero emission” by 2025 very likely. In a similar fashion, the Netherlands is pushing to go emission free in a few years, leading the pack in electric vehicle sales. The Netherlands waives registration fees for those purchasing electric vehicles. France, another EV friendly European country, offers a $6,500 bonus for purchasing purely electric vehicles and a $4,500 incentive for anyone bringing their diesel-powered vehicle to be scrapped. On top of these incentives, they are doubling down and aim to have 100,000 public charging stations by the year 2020. Lastly, one of the global giants of the automotive industry, the U.K, has been going all in on electric vehicles over the past few years. The U.K plans on spending $530 million in funding for companies that install charging points, helping them further establish a solid electric-car infrastructure. These policies have led to a huge upswing in EV sales as Europe doesn’t want to be left behind.
World Leader in Electric Vehicle Production
We’ve looked at North America and Europe, but the country leading the world in the shift to electric vehicles is China.  China is producing more electric vehicles than every other country in the world combined! As one of the most highly polluted countries in the world, China is looking to electric vehicles as a necessity in combating this problem. A $17,000 subsidy for each vehicle purchased seems to do the trick, convincing people to buy electric.  Not only are they selling electric vehicles at an impressive rate, they also make up about 35% of the world’s electric vehicle production. As China continues to climb the electric vehicle ladder, other countries around the world are sure to follow.
We’ve looked at North America and Europe, but the country leading the world in the shift to electric vehicles is China.  China is producing more electric vehicles than every other country in the world combined! As one of the most highly polluted countries in the world, China is looking to electric vehicles as a necessity in combating this problem. A $17,000 subsidy for each vehicle purchased seems to do the trick, convincing people to buy electric.  Not only are they selling electric vehicles at an impressive rate, they also make up about 35% of the world’s electric vehicle production. As China continues to climb the electric vehicle ladder, other countries around the world are sure to follow.With a shift to electric vehicles well under way and generous government incentives being offered, fossil fuel based vehicles will likely be phased out over the course of the next 10 years. A few European nations have already vowed to be “zero emissions” in the next decade and it is only a matter of time before others follow suit. We predict that by the year 2025 every household in America will have at least one electric vehicle and by the year 2040 you will need a special license to drive a non-autonomous vehicle.
Check out the rest of this series to find out how your shop will be affected by this new wave of vehicles.Industry 
Service Facility

Data, Blockchains, & The Future Of The Automotive Industry

Most automobiles made today have the ability to store insane amounts of information about you and your driving habits. Thought it was just your smart phone, think again.

A vehicle’s engine computer has the ability to store vast amounts data about your driving habits. Remember those Prius’s with the gas pedals that kept getting stuck? How do you think they were able to verify if you had the problem? There has been a swarm of controversy about who owns this data, as the only people who have access to it presently are the vehicle manufacturers and they aren’t inclined to part with it, because the law doesn’t say they have to.
So in 2009 they were able to broadly recreate a “stuck accelerator pedal” scene, today they are putting clauses in your lease that they will track you as you use the vehicle. How do you feel about the manufacturer of your car having access to “determine where you shop, the weather on your street, how often you wears his seat belt, what you were doing moments before a wreck — even where you like to eat and how much you weighs.” ? A little creepy considering smart phones already know way too much about us.Where does blockchain fit into this? Well, blockchain is another concept that’s foreign to most of society but will inevitably make its way to your door sooner rather than later. To oversimplify blockchains explanation for this article, blockchain is as the name suggests. A chain (connection) of blocks (data) will have a set of security keys that enable it to be accessed. Blockchain will play a role in the security of how your data gets distributed in the future. Well, after the elected officials finally start doing their jobs by protecting the very people who elect them. So as law unlocks the data from OEM Manufacturers, blockchain will be the technology that allows you to grant access to your technician or auto repair facility. The industry is wrestling with who owns your data… you or the vehicle manufacturer.Almost all those statements are usually followed by a response that asks the most important question that most of us can’t answer… “Can you provide me with your receipt please?”. Most people get their vehicle repaired and stuff their receipt in their glove box, car door, jacket or pant pocket, pocketbook, backpack… etc. We’re all notorious for it and we only realize our mistake when it starts to cost us money. Then when it’s about to cost us money, and it’s never less than $100, we frantically spend hours tearing through our cars and homes looking for them. We might even call places we think we got the car fixed, asking them if they have records.At CAR, we are very excited to see how the data can be accessed and synced to your already robust vehicle profile. We are confident that our approach to your vehicle data will prove to be integral in the future of vehicle management. We are preparing our auto repair software platform for the blockchain wave and we welcome the Auto Care Association’s push to standardize the use of personal driving data of millions of Americans. In short, we’re excited about the future of vehicle management and want to be the auto repair software that leads the way with you as the focus, whether you’re the consumer looking for trusted businesses or businesses looking for secure ways to operate.CAR Logo welded together by the folks at GYS for us @ AASP NJ 2018!

BIG “Thank you” to Chris S, Mike H, Johnny P, Craig B and the rest of the crew from GYS! 
Come experience the difference of advising and not the pressure of selling. Come experience ‘The Future Of Vehicle Management”… only through CAR.
 Looking To Open Up An Auto Repair Facility?
We’ve all been there, tired and frustrated with our boss.  You get the feeling that you can absolutely do this better than they can… and you want to do this better than they do it.  So you start to dream about what it would be like if you ran your own auto facility. Funny thing about our dreams, they don’t account for the brick walls you’ll run into.  Lucky for you and your dreams, we account for quite a few of them in this article. 
We are going to lay out the challenges, that we are aware of, that ‘soon to be shop owners’ may face and need to consider.  Please note that our experience, is from a densely populated area, local laws might make it harder or easier to accomplish some or all of these tasks.  This is meant to be used as a guide on what to expect and the type of research to do when trying to open a shop in your local area.
Where It All Starts

Budget:  All of this costs money to start.  The less you plan for, the more expensive things get. You can save significant time and money finding an existing facility that is abandoned or is for sale already and has the equipment you need to get you started.
Patience:  Nothing happens at the speed of light these days, unless you’re using CAR on your mobile device.  A lot of time is spent waiting on the input or response of others. Pick a method to manage all of the tasks.  We outline how to build a team with your gmail account. You can also organize everything in your plan to open a business with Gmail using the same logic to track tasks, save documents and have mobile access to everything.
Research: You want to survive the first 5 years?  Get used to asking a ton of questions, to anyone who will help you or hear you out.  Ask questions about everything, and most importantly… ask yourself and do your own homework.

 
Questions to consider asking yourself, others, and/or Google:

How many shops are in a 4 mile radius?
What’s the population in the 3 surrounding towns, plus the one I’m in?
How many households?
How much money do I have for this investment into my future? The sub questions here are insane.  What’s my projected monthly expenses? How long can I survive after having setup the business?
Are there other people I can partner with in this endeavor?
Does this location have parking?
What’s the crime like in this area?
What’s the traffic like? Go there, morning, noon and night… get to know your potential new neighborhood before you sign on the dotted line.

Now that the easy stuff is out of the way.  Let’s dig in.
3 Steps To Start Adding Value
Take note of things you’ve been waiting to address and haven’t.
Start with this, when you walk into your auto repair facility… walk around for 10 minutes and jot down all the things you’ve always wanted to do or need to be immediately done and aren’t done. Just ten minutes, set a timer on your phone and then spend 5 minutes jotting them down. You can use your shops Gmail account for this.
Start with this, when you walk into your auto repair facility… walk around for 10 minutes and jot down all the things you’ve always wanted to do or need to be immediately done and aren’t done. Just ten minutes, set a timer on your phone and then spend 5 minutes jotting them down. You can use your shops Gmail account for this.
Take note of how much time certain sequences take to accomplish.
As silly as this is seems, take note of how slow your computer might be. Time to turn on? Time to load websites? Frequent crashes?
As silly as this is seems, take note of how slow your computer might be. Time to turn on? Time to load websites? Frequent crashes?
Stop for 30 minutes at the end of the day and review the two items above.
You may think to yourself, why do I want to waste my time learning how much of my time is wasted? But then you just realized how that makes sense.
You may think to yourself, why do I want to waste my time learning how much of my time is wasted? But then you just realized how that makes sense.
Your Team

Let me start by saying, they are not your employees. Treat them as such and they will treat it as a job not a career. I can’t stress how important this aspect it.  The world is changing at an alarming rate and this industry is no exception right now.  If you want to ensure longevity you need to prepare to share the burden and some of the benefits, in order to attract employees that build a team.
A lot of people let their ego drive their initiative to do more.  Sometimes it can work out but more often than not, it burns people out and you’re left alone wondering why you can’t “find good help”.  As a business owner, I made the choice to involve our team members in all company decisions. This doesn’t mean they have the final say, this means they have a say.  When your team members have a say, they are more vested in everyone’s success.
In addition, we are going to make an assumption here.  We need to in order to provide a good example. We are going to assume that you, the person reading this article, have technician experience and you want to open a shop because you can and will do things better.  First, congrats. That feeling is amazing. Second, research till you question everything…. THEN, execute.
If you are the good technician, you are going to need at least ONE more team member to start.  That team member will inevitably become the shop manager if you can do this correctly. Here are the responsibilities that you are NOT aware of as a technician.

Who’s going to answer phones?
Who’s going to monitor your social media?
Who’s going to deal with happy and/or irate customers?
Who’s going to follow through on parts orders?
Who’s going to make estimates and get customer authorizations?
Who’s going to keep your paperwork in order so you can review it on weekends?

If you’re a technician and you’re serious about opening up a business in this industry in today’s world… the very first hire needs to be someone who is going to keep the business moving, according to your vision.  You can not focus on being great at repair and running a front office. You can try to do both for a while, but you will eventually burn yourself out. The amount of mental energy it takes for you to switch from one role to the next, is exhausting beyond measure.
Your team and your vision to build this team… is your greatest long term asset. Please note, this is not the definitive guide on how to open an auto repair business. This is merely a guide to get you to start thinking about the things you will need to worry about to run a successful business in nearly every industry… but especially the auto repair industry.Organize These Thoughts:
We recently wrote about how you can take a Google Gmail address and turn it into a team foundation to give your team the tools they need to get things done.  Here’s yet another element you can use that method, with Tasks, it will help you keep yourself and team members accountable to distribute the workload around maintaining your facility.
My Computer Is Fine! So What If It’s A Little Slow?:
So you think that it’s ok that your computer is a little older and slower, but I bet you didn’t realize that investing as little as $600 can get you 1 hour of lost time back, per day!  Let’s see if you qualify for the hour of productivity lost per day.  Let’s time how long your computer takes to turn on.
Turn on your computer.  If it’s already on, shut it down and turn it back on.  Time this sequence.  Does it take 30 seconds, 3 minutes or 8 minutes?  Hear a lot of noise when this happens?  Don’t want to turn off your PC because of fear it won’t turn back on. If your PC takes longer than 30 seconds to get to the login screen, you would benefit greatly from newer hardware.  If you can’t get to the internet within 2 minutes of turning your PC on, you need to change things.  It’s not 1989, it’s almost 2019.
Ok, So I Did The Three Steps, Now What?:
We’re going to work with an assumed set of tasks, to help you understand the exercise. Below is a made up list of things we found that needed attention.

So your 10 minute walk around yielded 15 things that you need to do around the shop or want to do. This is the easiest to resolve, use Tasks in your Team’s Gmail account and assign these responsibilities to yourself and your team.
Your PC takes 6 minutes before you can get to the internet. This may require a little more effort to resolve, we will cover “how to choose an effective PC for my shop” in a separate article.
Your coffee maker takes 4.5 minutes to brew a cup of coffee. This is absurd right.  Who times a cup of coffee!! Well, upgrade your coffee machine and get your coffee in 2 minutes.  Giving you back 2.5 minutes a day and 50 minutes a month.
Your average time for parts research (buying or researching) on the phone is 15 minutes.  This is a complex task to tackle and we will discuss how you need a combination of hardware and software to really become effective at this.
You spend more time squinting at your monitor than you do reading or writing on it. Between Costco and Amazon, there are plenty of opportunities to upgrade for reasonable rates, consider it.  It’s going to make your life easier.Here’s what I’d like you do.  Evaluate that list.  Top to bottom and let’s figure out how to eliminate it.  We can break any of the timed sequences into these questions:

How long to resolve the problem? For instance, if you need to take the heaping pile of scrap to the yard, time how long to fill the truck, clean the area, go to the scrap yard and dump it, reorganize the scrap pile so it’s better contained next time. Let’s assume this is a 4 hour endeavor.
How much is it going to cost? Well if you have a shop truck, it’ll cost you 4 hours of time in one block, or 30 minutes of time in 8 blocks.  The choice is ultimately yours, how you want to break that down and delegate it among your team.  Maybe you must rent a truck, or maybe… it’s as easy as calling a scrap collector to come and haul most of it for free.
What is the benefit? Well a clean shop always presents well to customers and potential customers.
Do I get time back? Well, no this one costs you time but brings you organization.
Is it worth the time? To look clean, I think we’re going to go with a ‘Yes’ here.

As with all the advice on our site, this is not the end all.  We are merely giving you ideas that helped us move out of ruts and turn things around in our own business.  All of our writing, suggestions, and solutions come from running an auto repair facility in Linden NJ.  But we know that solutions aren’t a one size fits all.  However, we have learned that most of our solutions came from reading about different things… and trying them! So we encourage you to do the same and share your stories about your experiences.Follow through with this article by reading about our other experiences in the auto industry, where we pass on lessons about running a business in 2018. This is focused on the auto repair industry, but there is plenty here that can be applied forward to help other businesses get off the ground and noticed locally.  Even though the businesses may differ significantly, the challenges of getting noticed and operating efficiently are similar.

Part 1 – Challenges Of The Auto Repair Business In 2018 Part 1
Part 2 – Auto Repair Business Marketing Challenges In 2018 Part 2
Part 3 – Advertising For Auto Repair Businesses In 2018 Part 3
Part 4 – Software For Your Auto Service Facility In 2018 Part 4
7 Basic Steps Of The Auto Repair Process