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Episode #1124: Today we break down the latest Fixed Ops Golden Metrics, showing where service departments are winning and where there’s room to grow. We also look at how dealer inventory has returned to pre-tariff “normal” levels, and why Atlantans are playing cancellation games just to ride in a Waymo robotaxi.

• The Fixed Ops Golden Metrics 2025 report from Reynolds and Reynolds highlights how service departments are stacking up in hours, labor rates, and RO profits—plus the big gains from technician efficiency tools.
  • Dealers are grouped two ways—by urban classification (Major Urban, Metro, Community, Rural) and by 5 volume classes based on monthly customer-pay ROs: Class 1: <300 and Class 5: >1,200.
  • High-volume Class 5 stores topped 3,000 hrs/month. Major Urban averaged 1,613 hrs/month vs. Rural at 490.
• Major Urban led profit per RO at $414, Rural just $225. Class 1 averaged $400, dropping to $243 in Class 5.
• Using recommendation software added +0.5 hrs/RO, +$18 ELR, and +$62 profit/RO—worth $9K more profit/month for a 150-RO store.

• After months of tariff shocks and supply swings, dealer lots look familiar again. The average automaker now has a 73-day supply of new cars — right on the industry’s long-term target.
  • Lots once ran as high as 89 days of supply during early tariff panic.
  • Inventories plunged to 66 days when 25% tariffs first hit but have since recovered.
  • Despite costs, prices rose just 1.5% YoY as automakers and dealers absorbed tariffs.
  • Some brands buck the trend: Toyota/Lexus are tight with just over a month of supply, while Ram and Land Rover sit on four months’ worth.

• Waymo has expanded beyond its California and Arizona roots, bringing robotaxis to Atlanta. But there’s a catch: you can only hail one through Uber, and it’s not guaranteed.
  • Riders can select “Prefer Waymo” in the Uber app, but often get matched with human drivers.
  • Some Atlantans cancel ride after ride—one reporting 20 cancellations on average—just to snag a Waymo.
  • Waymo has only dozens of vehicles in the city now, with plans to grow to hundreds in coming years.
  • Riders can improve their odds by staying inside the 65-square-mile service zone, avoiding highways, and riding outside peak times.
  • As one rider put it, “The fact that it’s so challenging to get has turned it into a game.”

0:00 Intro with Paul J Daly and Kyle Mountsier
1:08 We'll be at the NAMAD Annual Meeting next week
1:45 Webinar on Dealer Reputation Tomorrow
2:26 Fixed Ops Golden Metrics from Reynolds and Reynolds

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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