This is a recurring theme that I have used for the last 6 years. For our purposes today, I would like to focus on the concept of Service Readiness

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1 This is a recurring theme that I have used for the last 6 years. For our purposes today, I would like to focus on the concept of Service Readiness and ways automakers can help aftermarket shops become fully service ready for our customers and help Toyota provide an outstanding ownership experience for the life of our products. 1

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3 What is Service Readiness and why is it important? Service Readiness is the act of having received the service training, information, tools and parts necessary to perform any diagnosis, repair and/or adjustment that might be required to support a product, in advance of product arrival for repair. Service Readiness is one of the most important functions performed by Service Technology groups at automakers and preparations for retail sale of a new product begin more than a year in advance of the day the first sale. When the first vehicle rolls off of the dealer s lot, technicians must be equipped with the knowledge, information, software and tools to perform any action that might be required to repair the vehicle. <0:50> 3

4 What are the real keys to successful auto repair in the 21st century? There s lots of talk about the availability of service information and scantools, but there has been very little discussion about Service Readiness in the aftermarket. The fact is, only a small percentage of aftermarket shops are truly service ready for their customers these days. 4

5 Why is Service Readiness such a big issue these days? In a word, technology! 5

6 So how is Toyota addressing the Service Readiness challenge for our aftermarket service providers? With a support model strikingly similar il to our dealer model 6

7 Automaker service information websites have transformed the access model for service and training i information resources. For a nominal fee, typically around $20 for a multi-day access subscription, technicians have access to the entire service support library that franchised dealers have. This subscription type is available on-demand as needed. Savvy shop operators have learned how to build costs like this into the price of each repair, similar to the way that environmental disposal fees are managed. <0:45> 7

8 And then there are emerging business models for diagnostics <click1> Techstream Lite is the same diagnostic software suite that runs on our $6K factory scantool, but it is designed to run on your laptop PC connected to the vehicle with an inexpensive, off-the-shelf J2534 pass-thru interface. <click2> And, we have developed a short term diagnostic software subscription model, available on-demand, priced so that costs can be passed along in the price of a repair. <click3> Finally, because we understand that every now and then, technicians want a subject matter expert to help answer perplexing questions, we added Technical Assistance support to put techs in touch with Toyota specialists. This service is included in the cost of our Professional Diagnostic subscription. It is our goal to maintain a complete service support resource portal to everything independent shops need to provide our mutual customers with an ownership experience worthy of the product itself. After all, from our perspective, the best time for a Toyota customer to be in love with the brand is the time that the vehicle is approaching its natural end of life. <1:30> 8

9 Even when you have access to the right tools and information, there are times when you need support from a subject matter expert. All TIS Professional Diagnostic subscribers get the extra benefit of our aftermarket focused technical assistance system. This feature grants access to the Identifix Direct Hit database for Toyota, Scion and Lexus and one free tech assist hotline call. Any shop with this suite of resources can be service ready for any Toyota, Scion, Lexus customer with a minimal investment and little risk of not being able to accurately complete a diagnosis and repair. 9

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16 Here are a few things we can and should be doing to ensure a future for OSD 16

17 Just as Service Readiness is critically important for automakers and our dealerships, it is equally important for any independent shop that expects to provide quality support for its customers. If a shop expects to be able meet customer expectations and make a profit, its technicians must be equipped with the knowledge, information, software and tools to perform any action that might be required to get their customers back on the road again. It is in this context t that t I come to the following conclusions <0:30> 17

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19 Our industry is challenged with unprecedented technology advance Our technician workforce has to change the way it thinks and acts. The consuming public has to be trained to understand that fixing cars of the 21 st century is more complex and expensive than it once was but that any committed independent shop is capable of fixing these cars. The only way our industry will ever meet these challenges is by working together in a cooperative partnership targeted squarely at better technician education, service readiness and public awareness. I know that we are all up to the task all you have to do is <Click1> get involved and support the National Automotive Service Task Force! <0:30> <Total elapsed time = 15:00> 19

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