The impact of the novel coronavirus on consumers and the auto retail sector will change the way we do business for more than just the short-term. The change will be long-lasting.
History is unfolding right before our eyes. Little did we know that when we turned our clocks ahead this spring, thinking we were adjusting to Daylight Savings Time when we were in fact advancing into the Twilight Zone.
The COVID-19 pandemic has reached incomprehensible global proportions in such a short period of time, catching citizens and businesses around the world totally unprepared. Our global vulnerabilities quickly surfaced. The world we live in will never be the same. The effects of this pandemic could be with us for generations to come. Governments and citizens will permanently change behaviours for the longer-term protection of humans.
Emerging from the emergency lockdown of an entire economic base will be carefully crafted to avoid the resurgence in the form of second and third waves. Make no mistake, to avoid complete economic collapse, economies must begin to start their engines soon. Governments can only provide the massive support to citizens at current levels for so long. However, restarting the economic engine gradually will resemble more of a bicycle race than an open field NASCAR event.
Our dealerships will not escape unscathed. Even those stores that have been able to offer limited vehicle servicing will find ramping up operations to be a significant challenge. Initially, personal distancing, sanitization, expanded health and safety procedures, along with employee and product shortages, will offer significant alterations to the way we do business. Safe human interactions will permanently slow things down from the normal hectic pace within some dealerships.
There are some positives on the horizon, however. Off-lease vehicles must be dealt with. This creates a demand for new vehicles and provides an additional supply of used vehicles. Winter tires must be changed over creating a demand for dealership fixed operations services. Controlling the herd will present its own unique health and safety measures as operating procedures get rewritten to account for the new realities.
Laid-off workers will be gradually recalled. If revenues continue to meet the 30 per cent test compared to 2019, dealerships should be able to apply and re-apply for the 75 per cent wage subsidy. The eligible period starts March 15, 2020 and runs for 12 weeks. At this point it looks as though dealers will need to re-apply monthly, creating additional short-term administrative burden. The reward will outweigh the additional effort.
Initially we will not open customer waiting areas, children play areas and food services, and we may totally change our fixed operations check-in procedures. We might offer pick-up and delivery or timed curbside drop-off. At a minimum we will instruct service customers to park in designated numbered parking areas where a service advisor, tablet in-hand, will greet them — thus ensuring the respect for physical distancing between customers.
Some dealers might consider altering the start time for service advisors and technicians initially to spread out the customer concentration and workload. One thing dealerships have is unused physical capacity. Rethinking the use of that capacity might help with health and safety practices for the ultimate benefit of employees and customers.
Perhaps 60 per cent of fixed operations staff will work from 7:00 a.m. until 3:00 p.m., and the remaining 40 per cent will start at 1:00 p.m. and work until 9:00 p.m. Same number of people, same number of customers, same number of productive hours, but very different physical distancing possibilities.
An added consideration is children being home and not at school. A time shift in hours might be welcomed by some of your employees.
Many provinces have ordered that in-person showrooms remain closed. This shifts the vehicle sales process to online with perhaps at-home test drives, where our sales staff meet the prospective customer at a prearranged location.
The demand for vehicles from customers with expiring leases and loans will create a vehicle demand flow. Again, the process will change based on health and safety practices and procedures.
In all likelihood, as business gradually increases, you will need to rethink your showroom display of vehicles in light of enhanced health and safety concerns. Fewer vehicles might make sense, to maximize the possibility of physical distancing and to minimize regular sanitizing of vehicles. Also the proximity of desks with customer seating may need to be altered to accommodate proper physical distancing.
Some dealers might consider altering the start time for service advisors and technicians initially to spread out the customer concentration and workload.
With concern shifting to asymptomatic and presymptomatic COVIS-19 states, face masks could be required in order to protect customers and fellow employees. The face mask does not protect the person wearing it but rather stops their droplets from spread to others.
Wearing the mask could alter the rate of spread to others. Customers might also be asked to wear face masks or even demand that your staff wear facemasks to make them feel more comfortable.
I believe sanitizing stations are here to stay and will become an important part of our social etiquette. Human temptation will be to get back to the old ways as quickly as possible. Unfortunately, the pandemic has taught us that the old ways need to change for us to remain safe and healthy.
And unfortunately this pandemic (and various reactions to it) have created an environment of distrust. We will all need to alter the way we do business to regain our customers’ trust and regain their loyalty. You can’t assume that you had their loyalty before and therefore it’s automatic that they will view you and your dealership the same way.
The world has changed and people have changed their personal value systems upon which they will measure you. The shift to new normal will be challenging, but in the end I believe we will all get through this once health officials get a handle on the spread and treatment. Stay safe and remain healthy, and use this time wisely to prepare for a new normal.
