Chapter Two

Classroom Manual

The Automotive Business

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Objectives

• Discuss businesses supporting the automotive industry

• Describe main differences between dealerships, independents, franchises, and service stations

• Discuss how departments can increase business

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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

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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

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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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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

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Local Automotive Repair Business

• Dealership Operations– Typically independent ownership in

conjunction with a vehicle manufacturer– Must meet standards set by manufacturer

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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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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

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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

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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

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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

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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

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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

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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

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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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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

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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

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/

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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/

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Society of Automotive Engineers (SAE)

• Provides technical support to governments, manufacturers, repair shops, and technicians

• Fee for services

• http://www.sae.org/

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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

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Summary• Management is responsible for all

operations

• Employees share legal responsibilities

• ASE provides national certifications

• Other groups provide specialized training certifications