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MEETINGS with Jeep dealers soon after the appointment of Kevin Flynn as boss of Fiat Chrysler Automobiles (FCA) Australia are already producing results, with the company saying that put a dose of salts through its parts policies and saw it place an emphasis on using service departments to keep Jeep owners attached to the brand.

Apart from addressing problem cars (see separate story), Mr Flynn got the message that parts prices were too high and that Jeep owners were off the road for too long waiting for parts.

In an exclusive interview with GoAutoNews Premium, Mr Flynn said: “When I went to see the dealers in the first few months it was clear that there were concerns over the level of back-up that we were giving, there were concerns over the way we were interacting with customers and there were concerns around parts pricing. So all of those things have received a lot of focus.

“As a result we have specifically changed internal processes and responsiveness, we are a lot more customer-centric and our frontline call centre is absolutely now a barometer of what is going on and of what we need to react to.

“There is a lot more co-operating within the whole organisation on key issues and not just in aftersales.

Mr Flynn said that the model range had been simplified with a reduction from 39 models to 25 and this made ordering easier and reduced the number of difficult models in stock.

“Parts availability is being worked on to (improve) the back-order situation,” he said. “We are monitoring that very, very carefully. So the number of back orders at any one time results in a number of vehicles off the road and for what duration.

“So we have set ourselves some really stringent KPIs to really pull that down.

Kevin Flynn

“On parts, we have taken nearly 17,000 part numbers we sold during the course of last year across Chrysler Jeep and we have done a full analysis on the pricing. We have taken a number of key points as a reference and we have changed our price points wherever it was necessary.

“So we set a parameter and anything that was above that parameter (was cut). Ninety per cent of the dealers’ parts revenue was from those parts so that was the area that was causing concern and that was the area we needed to (fix).

“That is done, live in the market now. All the pricing infrastructure has been changed and all the dealers are up to speed.”

Mr Flynn said dealers would need to get more people through their service lanes to make up for the lower prices and that lower parts prices were part of the strategy of using the dealers’ service departments as an avenue for attracting and retaining customers.

“So the job there is to actually attract back customers that we have lost over the years,” he said.

Mr Flynn said Jeep has sold more than 100,000 vehicles in the past five to six years “so we want to make sure that we are holding on to that five-to-six-year parc for longer and to do that we need to give them reasons to do so”.

As part of that, the company has introduced capped-price service across the range that starts at $399 a service.

“That is by no means ground-breaking but it was something that was important for us. Number one: it is affordable; and two, it is predictable. So that gives people peace of mind,” he said.

“As long as we are doing the right quality work supplying parts at a competitive price then we are providing a reason to stay with us against finding alternative places for servicing. So we want to keep all the new customers we are selling (to) and I want to keep the people who are with us from five- and six-year parc and give them reasons to stay.

“So that means lifelong roadside recovery, for example. You service with us, that is what you get.

“So we have a job to do and we have to rebuild that trust for people to give us another crack.”

Mr Flynn said he was keen for dealers to provide more distinctive customer identity in Jeep.

“We would like to find a way to get more dedicated focus. That is going to be very important,” he said.

“However, having been a dealer, the first thing I want to see is people coming into my showroom and some increase and lift in business. So we are doing things about that now.

“But in terms of changing infrastructure, it is not our desire at this point. We need to see an actual upturn and moving in the right direction (before CI upgrades are required).

“And then with the need for more dedicated space for Jeep in Jeep dealerships, then we can have a more singular approach; what it looks like, what it feels like and how it operates.

“We have shown the dealers what that looks like but that is not my priority. Today the answer is not a refreshed CI. The answer to life right at the moment is a rekindled trust in what we are and that we are there for our customers.

“Once we start proving that then all these nice tactile elements and what you see can be addressed.

“It would be cart before horse if we think we can fix things purely by putting a bit of paint over where we were before.”

By John Mellor

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