Transformation as Strategy: Inside the Shift: How New Mobility Is Rewriting the Aftermarket

00:00:06: Hello, everyone.

00:00:06: And welcome to Transformation as Strategy a podcast brought you by the experts at Rollenberger Americas where we explore fresh perspectives and practical strategies to help business owners create a lasting competitive edge.

00:00:19: I'm your host Mackenzie Puddesi.

00:00:21: The topic for this episode is the aftermarket trends shaping the automotive industry in twenty-twenty six.

00:00:27: Joining me today's conversation is Nuri Freitas head of North America Aftermarket

00:00:34: really happy to be here.

00:00:35: So, to start us off could you tell us a bit more about your RolandBerger Americas and how you might define aftermarket?

00:00:43: Absolutely!

00:00:43: I've been working for RolandBergers since the year of two thousand eight years ago in Brazil which is where i started.

00:00:50: then i had this team work in Europe Germany and since spring fourteenth being the US.

00:00:56: as said now we need the automotive after market practice.

00:01:01: Automotive aftermarket is something that can be defined in many ways, but the way I like to say it which i think is the simplest.

00:01:07: Is anything happens with a car?

00:01:11: After he has been sold his automotive after market right so you can't think about your need no tires do have a squeaking brake and then you need new brakes.

00:01:20: or if was a cold day and they knew couldn't prank your engine unit of battery are you might not being involved in collision anything that would require, right?

00:01:30: A rock hit your windshield and created a crack.

00:01:33: So all of that is aftermarket And this is very complex like value chain as a whole because you have the vehicle manufacturers You have the dealers...you have the suppliers..You have distributors....and then where I'm saying magic happens which are repair shops, collision shops, quick loop chains.

00:01:52: As you can see it's something i am really passionate for But hopefully there was a simple description of the aftermarket.

00:02:02: Well, yeah no that's great.

00:02:03: I think That's like a great way to sum it up and we can dig into some Of those nuances here together today.

00:02:09: So thanks for setting this stage on that.

00:02:12: now We know that CES conference kicked off was some interesting new developments in the tech and AI spheres.

00:02:21: But when it comes to automotive aftermarket, what were some of key takeaways or trends that you saw?

00:02:26: Anything that could have a meaningful impact on the automotive after market industry this year or next few years?

00:02:34: No absolutely so.

00:02:35: CS has happened over two months ago And every single year at the conference we always get know a lot of like innovation.

00:02:47: A lot of no things, the interesting thing for automotive aftermarket itself is that this year CS has disappointed at least I was disappointed with them because they were not bringing in a lot off innovation.

00:03:00: and then we're directly impacting the market right?

00:03:04: A few years back you had for example Amazon really showing all of their home services so people could buy parts on amazon have service performed or at a shop of their preference.

00:03:17: So lots of like really innovation that we're bringing in lot of convenience to consumers.

00:03:23: and then this year, that hasn't happened you had a few companies.

00:03:27: they were bringing very niche products today aftermarket but nothing there was like let's say mind blowing change That would cause the Aftermarket to really move.

00:03:41: One exception, right?

00:03:43: But again this is something that you have to extend the scope of how we consider aftermarket.

00:03:49: Is that?

00:03:49: what we saw a lot at CS was these autonomous mobility companies.

00:03:55: so you had Of course Waymo as being the biggest one and there were A few other startups offering The service or the technology.

00:04:05: And why that can be Something very important today Aftermarket right, is because that can change the power dynamics of the aftermarket.

00:04:16: If you have for example just use an example if I have a taxi fleet or Uber or Lyft You'll have different drivers and owners in lot of time And each owner they make their own decisions on which parts to buy where to take vehicles to be serviced.

00:04:36: everything around there are market needs As we migrate to a bigger company, so think way more.

00:04:43: for example the power changes because now they vehicles that are coming back to a base every single night.

00:04:50: When when there not being used and because you have large enough fleet?

00:04:56: You can actually get.

00:04:57: companies don't have more power.

00:04:59: They could actually choose the parts their going to buy.

00:05:01: lot of times they're performing this service themselves.

00:05:04: when I see them self says he had like usually workshop at their location, and you can see that changes the power dynamics.

00:05:12: One thing that's super interesting is that Waymo of course think about being biggest player now.

00:05:19: Tesla with a RoboCAD is something trying to get a share off that market as well... Every single OEM or every single vehicle manufactured.

00:05:32: they are also thinking how it could get piece-of-the-pie or most of i would say to be a little bit more careful, most of the vehicle manufacturers and if every single vehicle manufacturer now they will have a fleet of autonomous vehicles going across.

00:05:50: The major cities in the west globally as well like we are talking about the last now you can see that Again, the power dynamics of the aftermarket would change.

00:05:58: The VMs.

00:05:59: they will capture a little bit more off this segment which is now like the biggest portion of the market.

00:06:04: but it's a relevant part on that because those cars drive a lot and places where their vehicles are serviced could be changed as well.

00:06:15: That's good point.

00:06:16: if there driving all time probably service needs to take into account often more chance for damage or wear down.

00:06:26: I'm curious.

00:06:27: so then you're saying the magic sort of happens in the workshop.

00:06:32: So if a lot these workshops are now being housed does that significantly change?

00:06:40: Obviously yes, there's.

00:06:41: this apply and they're choosing to buy hundred parts from one producer rather than not been broken up by bunch individual owners.

00:06:48: but do those negotiations contracts changed a lot by being in house

00:06:55: absolutely and I think that the best comparison, right?

00:06:59: Or proxy for what might happen is if we look at a commercial vehicles.

00:07:04: When am i thinking about commercial vehicle and bigger trucks?

00:07:08: So most of this service adds those long hauled trucks.

00:07:14: They are also happening in the base.

00:07:17: they're performed by the fleets Right And then you see which parts they buy like how much the margins they are distributed across that value chain.

00:07:28: You can see this is very different from traditional repair and replace when you have me taking our vehicles to be serviced, right?

00:07:38: The profit pools change, power dynamics changes... We're seeing it now!

00:07:45: Go talk with any commercial vehicle fleet operator neighborhood repair shop, you will see that things are completely different.

00:07:57: Interesting.

00:07:58: well That'll be something to keep a pulse on for the next couple of years here as that grows and shifts.

00:08:05: I want to dig in a little bit more about EVs In general.

00:08:08: imagine most of those autonomous vehicles or EV's But how does the aftermarket for EV vary from your typical gasoline vehicle?

00:08:19: This has been like the million dollar question i think for a long time.

00:08:23: Let me start talking a little bit about the changes in penetration of EVs, right?

00:08:30: So if we go back a few years when EV technology was still really new people said that technology will never mature and then people not accept.

00:08:41: And then Tesla came with the Model S to change their market a lot since they had really steep growth.

00:08:49: If you look at it now three, four years.

00:08:54: The entire market was expecting that like five years down the road would have half of vehicles being sold to new vehicles being EVs.

00:09:03: and although the share of EV's in the vehicle park takes a while for them cause an impact on their aftermarket if you had fifty percent off new vehicles so being EV'd then it impacts much quicker.

00:09:23: What has happened is because of policy changes and the end-of-the-government incentive for people to buy EVs, share of EVs being sold in US as stagnated.

00:09:39: And actually it's expected drop this year versus last year potentially going back up slowly into next coming years.

00:09:49: So all those changes that entire industry what getting prepared to deal with.

00:09:54: They are going to happen, but too much is smaller.

00:09:59: extend and in like the companies that we was to call they're going to be the last main standing because internal combustion engine vehicles or ice vehicles there going to reduce their share of it very quickly.

00:10:12: That has extended right?

00:10:14: The period which actually will be servicing them as extended a lot Right I think.

00:10:19: this first important thing thing to mention.

00:10:22: Now answering your question, right?

00:10:26: And this is again it's a three-question because the answer depends on which product category you are talking about and the answer very drastically different.

00:10:38: I'll start with some obvious ones.

00:10:40: but if you compare like what they need for oil, engine oil of course have an internal combustion engine needed.

00:10:51: So that's a category it drops, right?

00:10:54: It is zero or one.

00:10:56: If you go in the other hand to tires actually the tires in EVs they wear out faster than the tires on internal combustion engine vehicles.

00:11:08: There are multiple reasons for this but one of them The biggest ones would be if there was an instant torque and then ends up wearing the tire faster.

00:11:17: And another reason The compounds of the EV tires, they are slightly different because you don't have an engine noise.

00:11:24: So it needs to be more cautious about how the tyres are making and that changes their way those tyres will wear.

00:11:33: so if your playing in a tyre space You see EV as opportunity not risk They're less obvious product categories right?

00:11:41: If u think about brakes people say yes every single EV has a brake And they do with that set Because you are transforming and I'm like going very technical because your transforming kinetic energy from the car moving back into electricity.

00:11:57: And then it's starting in the battery, You don't need to wear your brake pads.

00:12:02: so that consumption of break pads and break rotors and even like break calipers they replacement rate off those products.

00:12:10: They drop a lot if you have an EV, and not only that.

00:12:13: If you have a hybrid.

00:12:16: we've been seeing already pretty big drop in the replacement rate of those products.

00:12:23: so I know i'm giving like a complicated answer here but this is very complicated question.

00:12:29: overall the expectation is that cost to maintain an EV will be lower than that nice vehicle With exception that we don't know what's going to happen with the high voltage batteries.

00:12:46: Because as of now, they are very expensive to be exchanged in a car or replaced it.

00:12:54: and then if you add the cost for battery at costs than actually having an EV in long term can even higher on how frequently, and when you need to change the batteries.

00:13:12: If your going have to change their batteries that's going impact what we call total cost of ownership or TCO off a vehicle.

00:13:21: Fascinating!

00:13:22: Imagine there are lots projections assumptions but as technology advances changes... We just kind looking at moving target?

00:13:32: I think i know me right again.

00:13:34: this is arrange depends on the vehicle manufacturer, it depends on car but without considering that high voltage battery.

00:13:43: The expected cost of maintaining an EV is between thirty and forty percent lower than that off a nice because you have fewer moving parts And...the entire system Is considered simpler right?

00:14:04: Before we move on just to small personal anecdote I had rented a car and was driving from France, then through the Alps of Switzerland to Italy.

00:14:13: And i had put in the map where we were going that as like.

00:14:17: there's no way we're gonna get there.

00:14:18: it's like forty kilometers away!

00:14:21: We only have maybe twenty percent battery.

00:14:24: but because is all downhill

00:14:26: you charge your batteries

00:14:28: more?

00:14:29: No its

00:14:30: impossible!!

00:14:32: But sure enough just kept going up kind of magic.

00:14:36: this is yeah

00:14:37: that's interesting as i was driving like down one of the colorado passes and I had a plug in hybrid.

00:14:43: And the same thing happened once they got down there, I have longer range day when I started.

00:14:48: so yes it's magical right.

00:14:49: then you were really recovering their energy.

00:14:53: uh putting them back into batteries or you can use if

00:14:57: its fantastic All right, so we've covered EVs and some of those key industry trends that you're seeing there.

00:15:03: But I also understand the last year you conducted an automotive aftermarket pulse twenty-twenty five study.

00:15:10: could you share what the scope of that study was with us?

00:15:14: Absolutely absolutely.

00:15:16: So this is something that i'm really passionate for.

00:15:21: um let me first talk about like why are we created as a study?

00:15:24: And then i'll talk to you.

00:15:28: So the automotive aftermarket lacks information that you can trust and it lacks historical information.

00:15:39: That will allow to track trends, right?

00:15:43: There are few data providers there a few data points but overall like if your thinking about consumers and workshops BtoB, BtoC how those two things they related with each other what's happening in the industry creates impact that really changes the industry.

00:16:04: This is something we felt as a company wasn't really in existence, right?

00:16:11: So it said to create something so we can start tracking every single year.

00:16:16: That was how the automotive poops study was created.

00:16:22: It has been years since doing this.

00:16:24: already We expanded from covering five countries our thirteen countries in Americas, Europe and Asia.

00:16:33: We are covering China so more countries to come but we're slowly adding more countries.

00:16:38: But one thing that would want you make sure this study will allow us And every single person reading the research is still compare how things evolve year over year.

00:16:48: So it created a set of as fixed possible questions because if they change at times we need to change them in a way that every single year we can track.

00:16:59: So now, we can go back to twenty nineteen and see how people would answer Are you comfortable taking your car?

00:17:05: To an independent repair shop or EV for Independent Repair Shop like the share of People That They're Comfortable In Twenty Nineteen is completely different from that Of Twenty Twenty-Five.

00:17:16: And then already talked about a little bit of this study.

00:17:18: so We are covering thirteen countries survey.

00:17:26: that happens usually summer time here in the

00:17:29: U.S.,

00:17:30: but it's a local, so at places its winter.

00:17:33: and we ask six thousand consumers and six hundred shops... So you're covering BQB and BQC?

00:17:42: And then there are like a multitude of questions where would want to know which parts they buy why they buy those parts when I take their vehicles service what other impressions around Tony was driving about if he and a lot of other things.

00:17:57: And then the other thing we've started doing as well is every single year, like things change in new trends they come up.

00:18:05: so every year We have a special topic.

00:18:08: last year The topic that we talked about.

00:18:10: it was convenience.

00:18:12: So...we wanted to know what kind of convenient services people were looking for when servicing their vehicles or trying to service their vehicles and then what they are getting from other industries, right?

00:18:29: Or we have an example here.

00:18:30: Like it's super convenient.

00:18:31: if you want to buy a coffee now You can buy the app just like go today store and pick up who will be ready to go.

00:18:38: There are things that They're very hard in The vehicle repair cycle.

00:18:45: So we were really interested know about convenience.

00:18:47: And there was like fascinating.

00:18:49: We had like Super fascinating set of insights.

00:18:51: Yeah,

00:18:51: no it sounds like you have a great sample size.

00:18:55: You're covering a lot of countries BWB to see.

00:18:59: So before we dig into the convenience factor which I'm curious about what were just some of The key takeaways from the twenty-twenty five study that you guys found?

00:19:07: Absolutely so I'll keep i think two in my eyes at least like then most important ones.

00:19:16: um so What has happened?

00:19:20: In industry and this is almost global, but I'll focus on the US right now is that people's disposable income grew less than they cost of maintaining their vehicles.

00:19:36: Right?

00:19:38: And this has... This is due to labor increase.

00:19:44: so really like the salaries increased and then costs for the parts, a few years back we had supply chain issues lots of things, they really happen.

00:19:54: Right?

00:19:55: And that has created a need because if you need your vehicle is still functioning so you can commute to work or school where it can do the work.

00:20:04: then whatever we have to deliver You need to repair the vehicle If there's a problem right and but now if you have less money To Do It Or at least like as a percentage Of Your Income You Have Like A Lower Percentage.

00:20:20: Now you have to stop thinking about having trade-offs, right?

00:20:24: And then this is one a clear trend that we've seen.

00:20:27: So as I mentioned before which are with track the quality of the parts that people they buy The quality off the parts at the consumers They want to have in their vehicles as they're being repaired.

00:20:43: and if You go through the BQB's the quality often parts than the repair shops or the manager offer repair shop or the technician recommends, right?

00:20:53: So those are two things that we track.

00:20:55: And then we can clearly see what there is a trade down.

00:21:02: Usually in the automotive aftermarket you have good-better best structure and always has parts of different qualities.

00:21:10: so usually like OEM part original one people call it OE equivalent.

00:21:20: And then the share of consumers and the share off workshops that they trade down one or two levels has increased a lot.

00:21:29: Right?

00:21:30: This is because again, there are shorter on cash.

00:21:33: my vehicle needs to keep moving.

00:21:35: I don't have this same money so i'm going make those trade-offs.

00:21:38: So it was super interesting.

00:21:40: The other way you can save money actually changing channel where perform your repair.

00:21:47: There is a magical number here, right?

00:21:49: Like people usually like if you are around the three to five year mark when you need to go through that change for the first change of tires in your vehicle.

00:21:59: That's usually when you go out off the OEM channel The OEMs.

00:22:04: they have like In general okay more expensive tire offers installed in your car.

00:22:09: then independent aftermarket and then people go take their vehicles to the independent aftermarket because there's a lot of price transparency on tires, And they end up having good experience.

00:22:20: A lot of those consumers never get back to OEM right?

00:22:26: So this is like an major point once you see that jump from the OEM chart in the independent market.

00:22:33: so as the vehicle are newer You have more people going into the OEM As the vehicles age.

00:22:42: So the other thing that this survey showed as well is, they speed in which people go out of their OEM channel has accelerated.

00:22:51: Because when you are using cheaper parts and on average the labor rate it's much lower than independent aftermarket then it isn't there yet.

00:23:06: And Nuri do you believe just pure economics or there are other factors that you guys are spotting, think might be causing the shift to happen.

00:23:17: What's behind this?

00:23:18: Economics I think is one of let's say major drivers.

00:23:23: but if you go and rank why people choose their channel they chose to repair their vehicles.

00:23:30: The first two reasons... They're not price!

00:23:38: And I had a great experience in the past at that location or with that mechanic, are we that person?

00:23:45: Right.

00:23:46: So you probably know what i'm going to now.

00:23:51: as I mentioned right once You go today independent aftermarket if they change If these stores can be a mom and pop our chain is there really being careful and catering Taking good care of their customers then the experiences Good!

00:24:06: like seventeen thousand dealers in the country and you have a hundred thousand ish independent repair shops across the country.

00:24:17: so of course it's much more convenient its closer to your life most of the cases will be close or two u as a consumer to take your vehicle to an independent repair shop.

00:24:28: And then you go there you have good experience.

00:24:31: by the way i paid less than i think you can see.

00:24:34: all those things they compound right?

00:24:37: So this is why the OEMs, they've been fighting a lot.

00:24:40: Again different OEM's have different strategies.

00:24:43: some are more successful than others.

00:24:46: and if you want to capture... I know we're in a tangent here but If You Want To Capture Like More Of The Share The OEMS They Really Have To Nail That Service Experience Because There Will Be In The Largest Majority Of The Case More Expensive Than The Independent.

00:25:05: I like that.

00:25:06: So let's dig in a little more into the convenience factors, that you'd uncovered in the report there because we talked about service and kind of.

00:25:15: a few years back Amazon had this option where they could ship apart order online comfort-of-home then get it put on or installed as needed.

00:25:28: so what are other things?

00:25:30: Are seeing those perpetuate?

00:25:32: Yeah, this is

00:25:36: for me a very interesting question.

00:25:40: So why convenience?

00:25:43: It's important right.

00:25:43: I think we as consumers or even like human beings We want convenience As much as possible.

00:25:52: and then people started to have great experiences outside of the automotive industry.

00:25:59: i gave big sample of Coffee.

00:26:01: you can really order coffee go in pick it up You can have it delivered, but its not only that.

00:26:07: Even like grocery stores you could place an order drive by and someone brings the...like the grocery bags to your car put in your trunk.

00:26:16: a lot of that has changed during Covid because actually we had to be super creative as society to deal with this situation.

00:26:25: But alot people were blocked or they weren't comfortable using those tools on internet e-commerce in general, they said whoa this is like something really convenient and it's not more expensive.

00:26:40: And I want that.

00:26:42: so This is the first thing.

00:26:43: The second thing and its a small share but It's still something than what we could see that it's relevant.

00:26:50: if you go now to let's say three biggest EV OEMs In the US of course You have Tesla as the biggest.

00:26:57: then Then you Have Rivian.

00:26:58: Than Then You Have Lucid.

00:27:01: Most Of The Service that they are providing, or at least their goal is supposed to be mobile.

00:27:10: Meaning whenever possible if it's not something super complex They're going to drive your place and perform the service for you.

00:27:20: See how convenient this is?

00:27:21: You either go home Or someone comes, solves a problem, goes away.

00:27:27: Just get notifications saying your service has been performed it was covered at the warranty or your credit card has been charged.

00:27:35: And now imagine that you have a Mike Sanpo Tesla and another vehicle, not an EV.

00:27:43: You need to call the dealer.

00:27:45: The dealer tells you only availability is three weeks down the road and will be six thirty AM.

00:27:53: otherwise you'll have to wait six weeks.

00:27:56: And this is reality, again not every single OEM but a lot of the OEMs.

00:28:00: they have that problem.

00:28:01: They have availability problems like see the comparison in level service.

00:28:06: so people had their experience and said I want it right?

00:28:13: So those two things are driving the desire for consumers.

00:28:22: now if you go to other side or business This is something that I really think it's fascinating, right?

00:28:28: If you are a repair shop chain and You found a profitable way to operate either more either mobile services or pick up And return for example services like the likelihood of you having an higher average ticket Is much much higher.

00:28:50: Because if you are waiting at the dealer or had a repair shop and someone like let's say when they're to change tires, okay?

00:28:57: Simple example.

00:28:58: And then some one comes back to us and I took out your tires.

00:29:01: You need to change brakes.

00:29:02: Your suspension is leaking.

00:29:05: It will look like you need To leave your car here.

00:29:08: it come back tomorrow Or we'll take five hours using note that can he to get back work where i need to do something.

00:29:15: don't Do it how.

00:29:16: come back later now.

00:29:18: see the other extreme, someone went into your home picked up a car brought to their retail shop and then made a video which is what's happening now explaining exactly why that problem is.

00:29:30: And making a professional recommendation.

00:29:32: you don't need a car right so people are much more likely to actually accept them.

00:29:39: I'm not saying like in workshops they do anything wrong The largest majority of workshop when we make recommendations because it really needed but now likely to actually accept it.

00:29:50: So you see there is like a dual benefit, the consumer has a benefit and then their workshops that they are implementing in that we have the benefits as well with an average ticket right?

00:30:00: You'll see those things are interesting again In the automotive pools We've uncovered that yes people They're really interested more convenience.

00:30:11: From a bit-to-bit perspective, we saw that a lot of the workshops they are already offering or they're thinking about offering those services.

00:30:20: It's not easy to make it profitable.

00:30:23: I didn't need to be super careful with that when you were workshop our workshop chain right.

00:30:28: and what is interesting here as well?

00:30:30: Is there like A good chunk off the consumers that they said i'm looking for those services.

00:30:38: They are even willing to pay a premium for them.

00:30:41: It might not be a huge premium, maybe like five percent or ten percent.

00:30:44: But you can see the opportunities right?

00:30:46: Like people they value convenience enough that we need to pay something for them.

00:30:53: so I think all of this together is really should make their repair shops and suppliers and OEMs thinking about how it's offering

00:31:06: more and more of those services.

00:31:08: I totally relate.

00:31:09: Like, like...I can just imagine myself in that decision-making moment and i'm like yeah no..like i'm ready to go or i don't want to wait longer.

00:31:18: so many of those things are something ...i feel like i would actually do Yeah.

00:31:25: So uh because of all these you know rising expectations around customers and convenience And how this is shift um what are the sort of things over The next few years here?

00:31:37: That's or the service models perhaps that need to evolve, to meet those expectations.

00:31:42: What's really going to differentiate sort of leaders over these next few years from the laggards?

00:31:47: Are there any tips?

00:31:50: Absolutely and again if we go back how complex the automotive aftermarket is right I'll try give an answer at least like some steps off value chain.

00:32:01: so If you are a supplier managing complexity is something that will be absolutely critical.

00:32:11: Why?

00:32:11: Because be it EV or be it hybrid, the number of parts you need to carry... The number of part needs to forecast demand for and help distributors carry inventory for is going to increase.

00:32:29: It has been increasing.

00:32:31: then speed up increased accelerated all right.

00:32:35: so dealing with I think it's one of the crucial things.

00:32:38: We have talked to many of our clients, and yes they said like we are seeing a challenge!

00:32:43: And its not only production or commercial challenges but also financial challenges as well because now they need to carry themselves more inventory so that you can work in capital volume right?

00:32:56: If you go into the next step of the value chain... So suppliers send their parts through retailers & distributors.

00:33:03: It is something highly related too.

00:33:07: It's that the type of vehicles, they are in each region off-the country.

00:33:14: They're getting more and more diverse right?

00:33:17: If we go to California for example you have many more EVs than if your like in Montana or other states.

00:33:24: I know that their dimension is very different but i'm just like adding two extreme examples Right!

00:33:29: And what do need carry?

00:33:31: how fast.

00:33:32: u need to adapt Your inventory,your supply chain is also crucial for that.

00:33:37: So, that relates to the complexity I was talking about.

00:33:41: Still if we stay in retail segment of market now and it's related convenience how can retailers cater to this segment?

00:33:54: They want to make a purchase online.

00:33:57: they need create ways to supply those products.

00:34:01: what really interesting.

00:34:02: right when you think like before retailers, they ask a lot of the online or e-commerce sales.

00:34:10: They actually picked up in store but it's super interesting that this sale was generated online so people were sure that they would find the part they needed at their store and then just go there pick it out as you can see back its convenience right?

00:34:26: So those two things managing our supply chain complexity And making sure that you are catering to that segment That's something that's crucial.

00:34:37: If we keep going the value chain now, and as I mentioned before where the magic happens right?

00:34:42: So i think that the biggest challenge for the workshops Right Now is they need to get better trained.

00:34:48: so The vehicles are getting more complex And it's not only electric vehicles who have ATAS All those driving assistance systems and then calibrating them.

00:34:59: It's not that simple.

00:35:00: you need specialized equipment.

00:35:01: You really specialize in specialized training.

00:35:03: If we go back to EV, you need again specialized tools.

00:35:07: And if you're not careful those betters they are high-voltage They can like hurt someone.

00:35:12: so you needs to have additional equipment.

00:35:14: So the first thing in the repair shop space or step of the value chain is improve their way Or increase that focus and training.

00:35:25: Make sure that you have people there Those shops.

00:35:28: they've been facing a huge shortage of technicians.

00:35:31: We don't think it's going get better.

00:35:33: So training will be crucial so you can actually in the end increase productivity of workforce.

00:35:40: And then last one is really around convenience, it's like find a way to provide this service provided convenience that your customers are looking for right?

00:35:52: Very interesting concepts which might seem simple but A lot of those stores they're open.

00:35:59: let say seven two six and if we were working during time It can be very hard for you to drop off the car.

00:36:07: So some companies, they've started thinking and creating ways that it could actually have like a after hours key drop-off your gold drop of your car leave the key in a safe place get an Uber or live to go back home.

00:36:21: And then the same thing for the pickup.

00:36:23: They have a safe box.

00:36:24: They send you are cold You enter the code?

00:36:26: Get your key new girl right.

00:36:28: he does not need to be like something overly complicated.

00:36:31: Yes mobile services grade And it's something that the consumers, they value a lot.

00:36:36: Pick up and return is great as well with what their customers love once you offer them.

00:36:42: but simpler solutions that he wouldn't need to be like change or hire new people Or change drastically The way you perform your day-to-day operation are things that the consumer will value.

00:36:55: It can help increase the retention rate and the loyalty of the consumers.

00:37:00: That would keep coming

00:37:04: back.

00:37:04: Nura, I think you've given us a lot of nuggets of wisdom.

00:37:07: A lot of really valuable things to think about here and that people out there in the industry can take advantage off.

00:37:12: but question we like to ask all our experts on this show is what's one piece just want advice would give.

00:37:19: two businesses are looking at stay ahead curve compete based trends were seeing automotive aftermarket industries for twenty-twenty six

00:37:31: interesting questions And I think this is true for every single company.

00:37:36: You really need to manage your costs so you can make the right investments, stay ahead be in the product we are producing or service provided by customers.

00:37:49: Excellent

00:37:52: that's very smart.

00:37:54: Well, thank you Nuri.

00:37:55: That about wraps up our discussion for today.

00:37:58: it's been a great conversation.

00:37:59: I truly appreciate all of your insights and strategies to help business owners navigate this ever-evolving landscape.

00:38:05: so Thank You So Much For Your Time!

00:38:12: For our listeners out there, if you'd like to learn more about what Nuri and the team at Rollenberger Americas are working on visit www.rollenburger.com.

00:38:21: And If your a fan of this show please share it with your colleagues!

00:38:24: Of course be sure follow us on Apple Spotify or Podigy.

00:38:29: We'll see ya next time.