Now is Not the Time for Collision Repairers to Give Up on OEM Certifications

I’ve recently started to get a lot of phone calls and questions from shops when I’m doing seminars asking, “Mike, should I renew my shop’s OEM certifications?”

I say the answer is absolutely yes. Here’s why.

The forecast for OEMs is that a key future revenue stream is going to be app-based subscriptions. It’s going to be a little like what GM has done with OnStar, or how SiriusXM radio operates. As I’ve researched this, here are some quotes I’ve heard or read:

“At least five automakers—Audi, BMW, Cadillac, Porsche and Tesla— are rolling out a subscription model for certain options, meaning consumers would pay monthly or annual fees to use features such as active driving assistance or voice recognition, even if those features are already built into the car,” according to Consumer Reports in December 2021. “Industry analysts tell Consumer Reports that subscriptions could become a more mainstream way for automakers to deliver features.”

“How would you feel about paying $5 each month for the ability to lock and unlock your car from a distance through an app? What about a $25-per-month charge for advanced cruise control or $10 to access heated seats? As vehicles become increasingly connected to the internet, car companies aim to rake in billions by having customers pay monthly or annual subscriptions

to access certain features,” Insider reported in February.

“We have 50-some value-added products and services that we’ll be rolling out over the next 36 to 48 months,” Steve Carlisle, president of GM North America, said in February.

I’m not sure how consumers are going to feel about such subscriptions, but I think it is important for collision repairers to understand drivers are going to increasingly be tied to the automakers’ apps.

Well, guess what is also likely to be inside those apps? A shop locator helping drivers connect with that automaker’s network of certified shops. I think that bodes well for collision repairers with OEM certifications.

Here’s another thing to think about: Remember when aluminumintensive vehicles were being more widely rolled out? Some automakers began restricting the sale of certain parts for those vehicles to their certified shops, to better insure major repairs on those vehicles were only done by shops with the equipment and training to do the repairs properly.

With ADAS and the ramp up of electric vehicles, collision repair work is only going to become increasingly complex. I think we’re going to see more automakers restricting more parts sales only to certified shops.

Headlines such as this bode well for certified collision centers as consumers are increasingly tied to automakers’ apps—which likely include a body shop locator for those drivers

“I think as we see this OEM subscription model come into play, it’s going to be really good for certified collision shops.”

— MIKE ANDERSON

COLLISION ADVICE

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