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McClatchy Tribune
Published on: 07/26/08
Detroit —- You won't see Ford Motor Co.'s trademark blue oval prominently displayed in the company's fast-growing chain of Quick Lane Tire & Auto Centers, which provide a range of routine maintenance services, such as oil changes and tire replacements, with an eye toward speed and no-appointment convenience.
The only hint that Ford even owns the centers —- which service all makes and models and are often in stand-alone facilities —- is that they are likely to be at or near a Ford dealership.
But in the past four years, Ford has doubled the number of Quick Lane centers nationwide —- to 500 —- as the automaker and its dealers try to capture more of the profitable parts-and-service business.
Faced with slumping new-vehicle sales, which are down 14 percent in the United States this year, and declining warranty work, a consequence of higher quality vehicles, Quick Lane is becoming an increasingly important venture for Ford and its dealers.
Even though Ford's Quick Lane concept has been in development for a decade, Ford is rolling it out in earnest. The Dearborn-based automaker last month opened more than two dozen stores through its existing network of more than 4,000 Ford and Lincoln-Mercury dealers.
"We knew we needed to move more aggressively into retail service," Tom Suttles, Ford's Quick Lane business manager, said. "There's a lot of opportunity here."
Doug North, owner of North Brothers Ford in Westland, which opened a Quick Lane center in March, agreed. He has seen a surge in sales, especially to non-Ford customers, after opening his new store.
"In the first week, we had a Kia and a Nissan in," he said. "The tire business has grown dramatically."
North said the new franchise also has given him some protection from the tough economy.
"It tends to be less volatile than the new car business, so it can provide consistent revenue throughout the year," he said. "It can certainly help in difficult times."
Suttles said that Ford is offering the Quick Lane franchises exclusively to its existing dealers, and the company hopes to eventually expand the number of centers to 1,200, although he declined to identify a target date.
About 65 percent of the dealers getting into the Quick Lane business have integrated the center into their existing dealership property in some way, while the remaining 35 percent have created stand-alone stores.
While Ford dealers have always provided the routine services offered at the Quick Lane centers, Suttles said the draw for Quick Lane consumers and the reason for the new brand is the packaging and execution.
The Quick Lane concept, he explained, is similar to that of Jiffy Lube, Midas or even Wal-Mart, which is equipping most of its new stores with a Tire & Lube Express center.
"They're all starting to look alike and offer the same services," Suttles observed.
Suttles noted that consumers have generally disliked getting their car serviced at dealerships, where they have often had to make appointments and face long waits, among other aggravations.
"Your car is taken behind a big wall," he explained. Customers "have a loss of control."
By contrast, Quick Lane emphasizes fast, competent service with convenient weekend and evening hours. No appointment is necessary.
Suttles said Ford is also leveraging its Motorcraft brand for premium parts through the Quick Lane franchise.
Even though Quick Lane is in its infancy, Suttles said it has already proved to be a success for Ford.
Aside from being profitable, Ford is capturing more parts-and-service business in markets where Quick Lane centers have been installed.
However, he said the ultimate gauge has been dealers' interest.
"Despite the economic conditions, dealers are investing in Quick Lane," Suttles said.
Because Ford has now reached a critical mass of Quick Lane stores in some markets —- such as Phoenix, Denver, Tampa and Atlanta —- it can now market the brand regionally. Suttles said Ford might consider marketing Quick Lane nationally once it has more market penetration.
But one of the strongest lures of the Quick Lane franchise, dealers have found, is their exposure to would-be Ford customers.
"We call every customer back after they've been in for service and ask them four to five questions about their experience," North said. "We will certainly ask them if they want to be contacted in the future about new opportunities about savings and incentives."
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