Auto Damage Experts

It’s official: Ford plans to cut F-150 Lightning production by *50%* in 2024 due to “changing market demand”. (via Auto News)

Dealership service centers have lost some ground: Service lane visits are down nearly *20%* since 2021. Here's one reason why: The average price per service visit has increased *45%* since 2021. But why would prices rise *that* much? For starters, dealerships have dealt with service technician shortages for well over a decade. And in case you needed a quick economic lesson: Fewer techs to perform work = higher costs Now couple that with: - pandemic-induced parts shortages - higher inflation - dealership EV infrastructure upgrade costs... And, well, maybe a big increase in price per service visit isn't too surprising. Here's the bottom line: I'll be watching the movement of service center rates very closely over the next 12 months. Why? Because service centers are the bread and butter of dealerships and an important economic indicator of the health of consumers. Don't believe me? Just Google the term "service center absorption". Or, if you're lazy, I'll send a free explainer on Service Absorption in next week's CDG Newsletter (link in bio) How do you think this all plays out? (Data source: Cox Automotive)