1. Chapter Two Classroom Manual The Automotive Business

2. 2 Objectives Discuss businesses supporting the automotive industry Describe main differences between dealerships, independents, franchises, and service stations Discuss how departments can increase business

3. 3 Objectives Discuss general duties and responsibilities of service manager Discuss legal and ethical responsibilities of a business and its employees Discuss role of accrediting agencies within the automotive industry

4. 4 Introduction Employees –Must work effectively within the organization –Must know the company’s organization, department duties, intra-company relations, and profit protection methods –Must practice ethical procedures

5. 5 Global Automotive Business Yesterday’s automotive shops were much smaller than today’s businesses Small shops are the exception, not the rule today Modern repair businesses have every type of employee position

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7. 7 Local Automotive Repair Business Local repair shops provide –Great tax income to governments –Many employment opportunities –Community support Personal and property taxes Public activity support

8. 8 Local Automotive Repair Business Dealership Operations –Typically independent ownership in conjunction with a vehicle manufacturer –Must meet standards set by manufacturer

9. 9 Local Automotive Repair Business Dealership Operations –Franchise license may be revoked if standards are not met –Technicians typically work only on the makes and models sold as new vehicles

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11. 11 Local Automotive Repair Business Independent Repair Facilities –Concentrate on vehicle repairs and service –Some parts stock is on hand –Most parts come from aftermarket supplier –Technicians trained to work on all makes and models

12. 12 Local Automotive Repair Business Other Automotive Repair Businesses –Franchise repair businesses Licensed by either national or regional chains Owners must follow policies of the franchising company Typically set up to perform only certain types of repairs or maintenance

13. 13 Local Automotive Repair Business Other Automotive Repair Businesses –Local service stations Typically handle brakes, tires, minor tune-ups, and light repairs –Other local businesses Handle repairs of only certain systems

14. 14 Managers and Administrative Offices Managers –Work together to assure first-class service Service Departments –Manager is responsible for service writers, technicians, and other staff –Parts manager is responsible for parts staff

15. 15 Managers and Administrative Offices Technician Training and Certification –Performed by educational facilities Legal Responsibilities –Technicians must be aware of legal aspects of their job –Legal aspects can be related to ethical practices and also to proper repairs

16. 16 Managers and Administrative Offices Business Ethics –Industry viewed with high esteem–service and sales are the exceptions Mainly due to high cost of vehicles and repair –Customer education is key in overcoming this stigma

17. 17 National Institute for Automotive Service Excellence (ASE) ASE tests are based on technician’s knowledge Must have two years of work experience and complete a written test Master Automotive Technician status only happens after passing eight automotive tests

18. 18 National Automotive Technicians’ Education Foundation (NATEF) NATEF is a division of ASE Certifies automotive training programs Ensures ASE standards are taught in the programs Programs certified for five years with an update at the halfway point www.natef.org

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20. 20 Automotive Youth Educational Systems (AYES) Directed toward high school students Supported by most vehicle manufacturers and automotive based organizations Provides some funding, equipment, and expertise support to the school Provides internships and employment opportunities for students

21. 21 Automotive Transmission Rebuilders Association (ATRA) Offers certification to technicians Annual test offered at test centers Test is brand and model specific Designed for experienced transmission technicians http://www.atra.com/

22. 22 Mobile Air Conditioning Society (MACS) Designed for automotive air conditioning technicians Offered to technicians EPA requirements require technicians must be trained to handle refrigerants http://www.macsw.org/

23. 23 Automotive Engine Rebuilders Association (AERA) Provides technical, product, and educational support to technicians and shops Offer financial grants to aid in education http://www.aera.org/

24. 24 Society of Automotive Engineers (SAE) Provides technical support to governments, manufacturers, repair shops, and technicians Fee for services http://www.sae.org/

25. 25 Manufacturer and Vendor Training Conducted by schools supported by vehicle manufacturers –Post-secondary schools Updating certificates –On-line classes –Computer-based training –Manufacturer’s site

26. 26 Summary Management is responsible for all operations Employees share legal responsibilities ASE provides national certifications Other groups provide specialized training certifications