Value Added Products Have Never Been So Needed By the Automotive Trade

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The automotive industry has taken a great hit and the future is uncertain. Guest writer, NIGEL, from our sponsor X-1R, gives us his perspective as an insider.

If you are in the business of servicing cars, there has never been a greater need for you to actively sell quality VAPs (Value Added Product) of the like that X-1R sells. To put it simply, these could ultimately make the difference between the survival or closure of the business where you work.

The word of the day seems to be ‘lockdown’ as the world goes into overdrive to try and stop the coronavirus by putting into place restrictive movement orders, designed in a perhaps forlorn attempt to stop the spread of a very nasty little bug that goes by the name of Covid-19. We will not ever truly know if the somewhat draconian measures were effective or necessary, but what we can tell you right now is that millions of ordinary people are staring into the face of financial oblivion due to the stop-work orders issued by so many governments around the world.

Initial reports coming out of China, where some semblance of normality seems to have returned in some areas, indicate that the sales of new cars have dropped by 79%. Just 310,000 cars have been sold in the territory compared to over 1.2 million for the same period last year, and sales are at the same level as last seen in 2005. Even new energy vehicles followed the same trend and sales of these contracted for the eighth month in a row.

Last year, sales fell globally by almost ten percent and global production is expected to fall by at least 16% in 2020. This, of course, will leave those at the dealership level in a tough place as well. It doesn’t take a rocket scientist to figure out that fewer sales translates pretty directly into fewer service and thereafter reduced revenues and ultimately reduced numbers of jobs.

It is not “if” there is going to be a recession, but how deep and how long the recession is going to be that is the real question. If you are in the business of servicing cars, you will need desperately to be able to retain your customers who will be retaining their cars that little bit longer. To do this, you need to supply excellence to your customers by selling products backed by globally recognised engineering organisations that will allow your customers to enjoy their driving that little bit more.

X-1R is backed by NASA, of course. Yes, we do have rocket scientists working for us and we have a range of products that are proven to not just improve fuel consumption and reduce pollution, but will also make the customer’s car that little bit smoother and more pleasurable to drive. Our field managers are also really good at suggesting ways for you to improve customer retention that does not necessarily involve our products, so it really could be a good time to talk to us. We truly are in this with you.

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