The New Modern - Fixing the Auto Repair Industry with Lou Trottier
/In conversation with experienced entrepreneur and mechanic Lou Trottier about fixing the the auto repair industry in the new modern world.
1. Prior to COVID-19, what was the ratio of cars you serviced between new (less than 5 years old) and older cars?
Prior to Covid our ratio was 60-40 new to old. That has not changed.
2. Once this passes, do you think consumers will be buying new/used cars, or will they spend money on injecting a longer life into their existing cars and why?
I believe they will be injecting life into their older, payment free autos. When someone’s finances declines/collapses, then they take a hard look at their output of cash and limit their recurring monthly expenses.
“I think immediately there will be a surge in local road trips until the uncertainty of being confined in a small space (airplanes) is put to rest. ”
3. Will the changes you've implemented during COVID-19 be carried forward once we're past this entirely, or will there be adjustments that allow fewer people in your waiting area compared to pre-COVID-19?
I’m sure immediately there will be a decline in sitting in the waiting area. I think customers will do that all on their own as they wish to limit their interaction with strangers.
4. Despite a deep reduction in cars on the road now, you've managed to keep your doors open. What's the most common type of service you've done for customers?
Repairs types have been pretty consistent pre/post covid. Right now (spring season) its seasonal maintenance. I am an advocate for winter tires and at least 60% of my clientele is on winter tires. Naturally they have to come off.
5. What's your realistic prediction of the future of the automotive industry as a whole?
In the short term, there’ll be a surge in the used car market and a decline in the new car market. However new car manufacturers will be forced to roll out huge deals to stimulate sales so I expect a decent rebound after the initial wave.
“There are approx 60% less cars on the road which translates into that many fewer kilometres being driven. As a result, there’s less need for vehicle maintenance.”
6. How have you specifically been impacted by COVID-19 via All About Imports?
There are approx 60% less cars on the road which translates into that many fewer kilometres being driven. As a result, there’s less need for vehicle maintenance. People who are working from home are in very little need of car repair maintenance.
7. Do you feel that road trips/day trips will have an increased popularity given the volatile condition of the airline/cruise industry?
Airlines will be quick to offer cheap vacations I imagine, however I think immediately there will be a surge in local road trips until the uncertainty of being confined in a small space (airplanes) is put to rest.
8. Will some of the smaller repair shops make it through this and why?
I’m sure there will be casualties, no doubt. Because we were deemed an essential service should make my industry a little less affected than other industries that were deemed non-essential.
9. If you personally were in need of a replacement vehicle, would you get a brand new or used vehicle? Being a mechanic means flexibility. However, having my income drastically reduced over this period means I too will be watching my pennies.
10. With the majority of the public negatively affected financially, do you think people will take a more hands on, Do-It-Yourself approach to changing their own tires, oil and smaller repairs?
There’ll be a little Do-It-Yourself increase. The skills required have been washed out of our society over the last 25 years.
“A certain percentage of transit commuters will switch back to their cars until the certainty of confined spaces is eased. ”
11. You've earned a very strong reputation over the past two decades with a plethora of regular clients. In tomorrow's world, will your new clients be swayed by your quality/reputation or prices?
My core client will likely not be swayed. There is a certain small percentage of clients that I have that bounce from shop-to-shop trying to o source the best deal. I expect little change here.
12. Looking back to mid-March when this began, did your initial reaction to this line up with what's unfolded so far?
I thought that this would only last a couple of weeks. I under estimated the duration for sure.
13. On a day-to-day scale, similarly to air travel, local transit can involve a higher risk situation. Do you feel that those who currently/used to take transit will transition into driving themselves?
Yes, I believe a certain percentage of transit commuters will switch back to their cars until the certainty of confined spaces is eased.
14. If a person(s)/family opt for a new car, do you think they'll buy luxury or non-luxury brands?
That is completely relevant to free cash flow. Not sure if there will be any noticeable trends here other than proportionate declines in new car sales.
15. What's one thing that was a constant in your industry that won't be here in tomorrow's world?
The non-social distancing rules for sure.
Lou began his automotive training with Honda Canada’s Pilot class of ’93 HAP (Honda Apprenticeship Program). Upon graduation Lou distinguished himself academically and received two prestigious awards. The first being from Honda Canada for achieving the highest mark in the program and the 2nd from Centennial College. The Ray Thompson award was also given to Lou for Outstanding Education Excellence. Lou is proud to be a weekly contributer to the Globe and Mail every Saturday in the Globe Drive section.
Connect with him here.
