Manufacturers hone in on servicing to woo customers

Car servicing has become the new battle ground for the automotive industry.

As modern cars get safer and there are fewer differences in technology between the big brands, all that's left to win buyers is what the marketing experts like to call the "customer experience".

Perhaps we shouldn't be applauding this new found interest in customer care (after all, shouldn't this have been happening in the first place?) but nevertheless it's a welcome relief, if a little overdue.

Ford is modelling its showroom and service driveway experience on Apple stores, and last week announced free loan cars for service customers in a national six-month trial.

This week Holden announced capped price servicing on every model since the very first one in 1948, an Australian if not world first dating back 67 years.

Australia is the most diverse and most competitive new-car market in the world

While most owners of classic Holdens will probably continue to do the work themselves or at a local mechanic (or just drive the car into the ground), it's a significant sign of just how serious the battle to keep customers is becoming.

Regular readers will know Australia is the most diverse and most competitive new-car market in the world, with more than 64 brands. There are more new models than there are days in the week.

This puts buyers in the driver's seat, even if it can make decisions a little confusing because there is so much choice.

Meanwhile the ACCC has taken an interest in capped price servicing after finding that certain Kia dealers hadn't capped the price at all.

According to industry figures, service and parts... make up for the majority of a dealer's profit

Certain dealers across all brands have become accustomed to "upselling" customers to pay for service items beyond what is on the rate card. It is worth pointing out that, according to industry figures, service and parts – not new-car sales – make up for the majority of a dealer's profit.

Kia wasn't fined as it acted quickly. But the ACCC is said to now be looking at the CPS schemes of all marques.

We welcome the move. The ACCC might want to start by looking at certain brands that don't include all service items on their menu pricing, or don't list each service as one price.

Presumably in an attempt to take the sting out of some of the prices, some brands split out other fixed elements of the service in another table. Surely that's not helping the customer?