12 Questions
True or false:The automotive service industry is not an important sector in the world economy.
False
True or false: Skilled personnel and proper resources are not necessary for automotive service.
False
True or false: The service manager is not responsible for coordinating the operations of the service system.
False
True or false: The number of cars and trucks registered in the United States is less than 100 million.
False
True or false: The automotive service industry does not face a shortage of trained technical workers globally.
False
True or false: The automotive service industry has four major market segments.
False
True or false: New car and truck dealerships only focus on retail sales of repairs and maintenance.
False
True or false: The majority of automotive technicians in the United States are employed in new car and truck dealerships.
False
True or false: Service managers and other first-line supervisors of technicians hold more than 3% of the jobs in the automotive service industry.
False
True or false: Fleet service operations maintain and repair only vehicles owned or leased by individuals.
False
True or false: Large chain operations generally work on all makes and models of vehicles.
False
True or false: The volume of warranty repairs has increased in recent years, and dealerships have shifted their focus away from the retail service business.
False
Study Notes
- The automotive industry is a major force in the world economy, from natural resources to service and repair.
- Automotive service plays an essential role in supporting the industry, requiring skilled personnel and proper resources.
- The service manager is responsible for orchestrating and coordinating the complex operations of the service system.
- The worldwide market for automobiles continues to grow, with over 275 million cars and trucks registered in the United States alone.
- There is a global shortage of trained technical workers in the automotive service industry.
- The automotive service industry has five major market segments: new car and truck dealerships, automotive repair and maintenance shops, automotive parts, accessories, and tire stores, and fleets.
- New car and truck dealerships account for almost half of the total automotive service market and specialize in warranty repairs for their franchised brand.
- The majority of automotive technicians in the United States are employed in independent repair shops.
- The automotive service industry accounts for over 69% of the total jobs in the automotive industry, including body repairers, parts specialists, and other skilled workers.
- Service managers and other first-line supervisors of technicians hold less than 3% of those jobs but are responsible for guiding and directing the other 97%.
- Dealership service departments focus on warranty repairs for their manufacturer's products and have shifted to retail sales of repairs and maintenance.
- Independent automotive repair and maintenance shops are not tied to any specific manufacturer and focus on customer-paid work.
- Automotive parts, accessories, and tire stores are part of a larger network of shops and generally work on all makes and models of vehicles.
- Fleet service operations maintain and repair only vehicles owned or leased by the company or agency and specialize in working within their unique market.
- Service departments are only one profit center among several in automotive parts, accessories, and tire stores and fleet service operations.
- Independent repair organizations face challenges in accessing technical information and training due to limited access to manufacturer information.
- Large chain operations tend to limit their range of work and specialize in working within their unique market.
- Dealerships are a group of diverse operations that work under one roof, including new vehicle sales, used vehicle sales, service, parts, body shop, and car leasing.
- The volume of warranty repairs has significantly declined in recent years, and dealerships have shifted their focus to the highly competitive retail service business.
- Automotive repair and maintenance shops comprise the single largest segment of the U.S. auto repair industry, employing 42 percent of technicians.
Test your knowledge of the automotive service industry with our quiz! From the major market segments to the roles of service managers and technicians, this quiz covers a wide range of topics. Challenge yourself to remember important statistics and industry trends, and see how much you really know about the world of automotive service. Keywords: automotive industry, service manager, market segments, technicians, repair shops, dealership, warranty repairs.
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