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For 40 years, Derek Kaufman has worked in the Transportation Industry with positions ranging from VP Marketing and Product Planning for Freightliner Trucks, SR VP of Sales, Marketing and Customer Support for Hino Trucks, President of Diesel Technology Co, a subsidiary of Penske Corporation, VP of Fixed Operations for Smart USA and CEO of Mission Motors Company.

Derek is also an entrepreneur. He founded C3 Network, LLC in 1997 to help clients launch new products in the transportation industry.

Today, Derek is a Managing Partner at Schwartz Advisors, LLC doing Mergers & Acquisition support and company growth work in the auto and heavy-duty aftermarket. He continues his role as President of C3 Network.

Derek serves on the boards of several companies and is a regular conference speaker at auto aftermarket and trucking conferences. Listen to Derek's previous episodes HERE.

Talking Points:

  • BEVs or Battery Electric Vehicles have only battery power – no engine at all
  • PHEVs are Plug-in Hybrids – they have battery packs that can be charged from the grid and have enough battery power to propel the vehicle for a certain number of miles before their internal combustion engine kicks in to keep the vehicle moving
  • Mild and Micro Hybrids – these are hybrid vehicles where the ICE engine drives an alternator to build up a battery pack. In mild hybrids, the motors can add power to the ICE power train. In micro hybrids like stop-start systems you have a battery that will drive a starter to bring the ICE engine back on after it stops to save fuel at an intersection.
  • In the USA, about 2.1% of our sales were full BEVs in 2019. To put that in perspective, the number one country in the world for BEV sales was Norway at 49% -- a strong market for Tesla
  • Number 2 was Iceland at 19%, then you fall down 8.2% for number 3 Sweden.
  • China is driving hard for BEVs but they were only at 4.2% last year.
  • It is interesting to note that if California was its own country – and lots of people would say it is – it would be right up with Sweden at over 8% BEV sales in 2019. If you go to San Diego, or sections of LA or the Bay Area – you would think that Tesla has a 30% market share – California is the epicenter of their sales.
  • Our estimate is that only .22% of cars in shops are BEVs today and that only grows to under 4% in the next ten years.
  • The European Union is all in on electric drive – and they are driving the market by imposing a 95 gram per kilometer CO2 emission limit on vehicle manufacturers.
  • You have everyone trying to sell cars in Europe rushing to add BEVs to their product lines even though the consumers in that market are continuing to buy high powered ICEs and even turning now to SUVs. So BEVs are going to be money-losing propositions for a lot of years for OEMs in Europe.The UK just announced a ban on ICE gas and diesel engines as of 2035 – that was pulled up from 2040
  • France has a ban slated for 2040 – but Paris is blocking ICE cars by 2030
  • China isn’t doing a nationwide ban but is talking about regional bans – and they are making it really difficult or impossible to build any new ICE production capacity in the country.
  • The US has been lagging other countries for a number of reasons – our geography makes the whole issue of battery range a tougher issue than in a lot of the European countries where you have less chance of even reaching a car’s range limitWe’re a light truck and SUV country – over 70% of new car sales are light trucks in this country so I think the adoption of BEVs will change once those vehicle designs include electric drive.
  • So we’re projecting a slower climb for the USA – the Schwartz Advisors model is showing 16% BEV sales by 2035.
  • Rivian as a true inflection point for BEVs in this country and maybe in the world.R.J. Scaringe in Detroit has done a tremendous job of attracting both people and investment for his company. He has people like Mark Vinnels the former director of engineering for McLaren and Jeff Hammoud who was the Chief Designer of the Jeep Cherokee and the new Wrangler – he has raised $2.85 billion dollars from companies like Amazon, Ford, Cox Automotive and T. Rowe Price – he bought the Mitsubishi assembly plant in Normal Illinois and is ramping up production now.
  • The Rivian design is unique too – both a pickup truck and an SUV and both are built on what is called a skateboard – that’s a platform that keeps the electric drive motors and battery very low on the frame which allows a lot of flexibility of what kind of body can be put on the chassis.
  • Amazon invests $700 million in Rivian and turns right around and orders 100,000 Amazon Prime delivery vans using the Rivian drive system.
  • Rivian is actually moving from aspirational to inspirational – they’re going to show how electric drive can take you off-road – or offer contractors electric-powered tools – they are going to make BEVs really multidimensional – and I think that will be a turning point.
  • Tesla has been brilliant at establishing the BEV as not only a viable product but as a truly desirable design – they have understood the aspirational approach of Tesla owners to make this world a better place.
  • Because of Covid19 Chinese companies will now have a harder time launching new products in the USA – but the Byton design is really interesting.Daniel Kirchet has a long history of running automotive companies in China – He was Managing Director of Infiniti China, President of Dongfeng and the VP of Sales of BMW Brilliance which is the China-based BMW production company – he is now running a company that is launching an SUV this year called the M-Byte – it is a beautiful car with a really good electric drive system 
  • JCI’s battery range included lithium-ion batteries for BEVs but the vast majority of their product line was associated with micro and mild hybrids – they spent a lot of time at conferences showing a chart that had hybrids taking over the market with BEVs representing under 15% of global production. But a few things could be changing that scenario.A series of breakthroughs in technology
  • New range estimates for the best BEVs are now over 400 miles
  • New fast chargers are building batteries up to 80% of a full charge in under 30 minutes – but there are many reports of graphene applications allowing much faster charging
  • If battery charging times begin to approach the time it takes to fill a gas tank, Derek say all bets are off on hybrid growth
  • At the end of the day, hybrids are expensive to produce for OEMs and may make it really hard for them to earn profits
  • Just one year ago, we were talking about vehicle manufacturers investing a combined $90B in BEV programs. The latest number is something like $300B led by Volkswagen
  • Tesla gets all the BEV headlines in the USA they have led the way for sure – but if you want to talk about scale, you need to talk about the VW MEB program.They have created a modular component platform called Modularer E-Antriebs Baukasten in German. Translate that to English as Modular Electric Propulsion Platform or MEB
  • Components can be mixed and matched to configure different vehicle form factors.
  • VW is licensing the technology to other OEMs. Ford, for example, will be using VW components in future BEVs.
  • VW is projecting 70 new BEV models to be introduced in the next 10 years with over 22 million vehicles produced in that time
  • But there are a lot of factors in figuring the well to wheel green house gas impact of various power sources. The BEV vehicle does not pollute as it idles, it doesn’t increase its emission level as it accelerates, it does not put out particulates that are a really big issue in urban centers.We really don’t talk about power sources and their relationship to climate change very consistently or accurately. 
  • If we really wanted to make every BEV a truly clean vehicle, we would be generating all power with the new nuclear power designs or maybe we would be converting faster to hydrogen fuel cells.
  • Hyundai, Honda, and Toyota have all developed hydrogen fuel cell designs and recently, BMW has announced a hydrogen vehicle. So maybe we should be shifting our percentage curves in that direction in the future

Resources:

  • Thanks to Derek Kaufman for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser and many more. Mobile Listening APP's HERE
  • Find every podcast episode HERE.
  • Every episode segmented by Series HERE.
  • Key Word Search HERE.
  • Love what we do? Buy Carm a cup of coffee HERE.

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Gold Certification recognizes top tier NAPA AutoCare's with a high level of participation in the AutoCare program. The program was built by AutoCare Centers for AutoCare Centers to provide a consistent consumer experience, maximize technology leverage, and reward NAPA’s most committed partners. In other words, Gold Certified AutoCare Centers are the standard-bearers for the AutoCare brand nationwide. Simply put, the Gold Certified NAPA AutoCare program, powered by your local shop brand, will separate you from the rest helping you boost your bay counts and your average repair orders.

Learn more about NAPA AutoCare, Gold Certification, and the hundreds of other benefits the NAPA family has to offer by talking with your servicing NAPA store or visit www.NAPAAutoCare.com

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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      Tune in now to discover actionable tips and fresh ideas to make your April marketing a success. Don’t miss this chance to fill your bays and grow your Shop!
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      Lagniappe (Books, Links, Other Podcasts, etc)
      https://www.daysoftheyear.com   
      https://www.nationaldaycalendar.com/ 
      https://shopmarketingpros.com/ep-118-doing-video-every-day-for-a-month/ - Doing Video Every Day For A Month
      https://shopmarketingpros.com/how-doing-video-every-day-can-transform-your-auto-repair-shops-marketing-strategy/ 
      Show Notes with Timestamps
      Introduction to April Marketing (00:00:10)  The hosts introduce the episode and discuss the focus on marketing strategies for April. Spring Car Care Month (00:02:43)  April is highlighted as Spring Car Care Month, emphasizing vehicle maintenance and customer education. Car Care Clinics (00:03:11)  Hosts suggest hosting car care clinics to engage customers and educate them about vehicle maintenance. Vida: Video Every Day in April (00:04:55)  Discussion on the importance of video marketing and committing to daily video creation for engagement. Celebrating National Pickleball Month (00:07:44)  Hosts encourage engaging posts related to National Pickleball Month, even if not directly automotive. Honoring EMS Week (00:08:12)  Discussing ways to celebrate and honor first responders during EMS Week with discounts or special offers. Tax Return Promotions (00:09:55)  Promoting services around tax returns, encouraging customers to invest in vehicle maintenance with their refunds. April Fool's Day Marketing (00:10:48)  Ideas for fun social media posts and jokes to engage customers on April Fool's Day. National Ride Your Horse to a Bar Day (00:14:09)  Hosts humorously discuss the quirky holiday and encourage creative marketing ideas around it. National 4x4 Day (April 4) (00:14:45)  Celebration ideas for off-road enthusiasts and engaging posts for customers. World Rat Day (April 4) (00:15:18)  Discussion on celebrating the impact of rats on auto repairs. National Rita Roadmap Day (April 5) (00:16:12)  A fun take on roadmap reading skills among staff. International Pillow Fight Day (April 5) (00:16:27)  Humorous suggestions for a pillow fight as social media content. National Grilled Cheese Sandwich Day (April 12) (00:17:05)  Ideas for a grilled cheese challenge at the shop. State Pride Days (April) (00:17:28)  Encouragement to celebrate local state days and community engagement. Tax Day and National That Sucks Day (April 15) (00:18:08)  Creative marketing ideas related to tax day and repairs. National Auctioneers Day (April 17) (00:19:08)  Fun activities like staff auctioneering for customer engagement. Easter (April 20) (00:19:40)  Ideas for Easter celebrations and community involvement. Girl Scout Leaders Day and Earth Day (April 22) (00:20:24)  Promoting community ties with Girl Scouts and environmental awareness. Clean Comedy Day (April 28) (00:21:38)  Encouraging clean jokes and humor among staff. Viral Video Day (April 29) (00:22:17)  Encouragement to create engaging videos for social media. April Showers Bring May Flowers (00:23:38)  Marketing strategies related to spring maintenance and vehicle care.
      How To Get In Touch
      Group - Auto Repair Marketing Mastermind
      Website - shopmarketingpros.com 
      Facebook - facebook.com/shopmarketingpros 
      Get the Book - shopmarketingpros.com/book
      Instagram - @shopmarketingpros 
      Questions/Ideas - [email protected] 
      Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, Google Podcasts, and many others


      Tune in for another episode next week. Until then, go fill those bays!
      Talking Points


      General Topics for April:
      April showers bring may flowers - wiper blades, Aquapel, tires Continuing the theme from March Spring maintenance and cleaning Pot holes - winter damage Change back to summer tires Continue with the tax refund talk
      Days of the Year - Monthly Themes
      April is the first of the two National Car Care Months VEDA - Video Every Day in April


      Days of the Year - Weekly Themes
      National EMS Week


      Days of the Year - Daily Themes
      4/1 April Fools Day 4/2 National Ride Your Horse to a Bar Day 4/3 National Burrito Day 4/4 World Rat Day ⅘ International Pllow Fight Day ⅘ National Read a Road Map Day 4/12 National Grilled Cheese Sandwich Day 4/15 National That Sucks Day 4/17 National Auctioneers Day 4/20 Easter 4/22 National Jelly Bean Day 4/28 Clean Comedy Day 4/29 Viral Video Day














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      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thank you to our friends at RepairPal for providing you this episode. RepairPal’s Certified
      Network of shops are trusted by millions of customers each month. Learn more at
      RepairPal.com/shops
      Are you ready to convert clients to members? App fueled specializes in creating custom apps tailored specifically for auto repair businesses. Build client loyalty. Get started today with your own customer loyalty app. Visit Appfueled.com
      Are your customers getting the right first impression of your shop? In this episode, Brian and Kim Walker explore how to make every touchpoint count, from your website and Google Business Profile to your waiting area and phone calls.
      With personal stories and practical tips, they’ll guide you through the customer journey, sharing ways to improve everything from cleanliness to communication. You’ll even hear about Kim’s checklist for first impressions and why small details—like a fresh-smelling lobby or updated photos—make a big impact.
      Get ready to see your shop through fresh eyes and take steps to leave a lasting impression. Tune in now!
      Thank you to our friends at RepairPal for providing you this episode. RepairPal will help you
      grow your auto business and you can learn more at RepairPal.com/shops. 
      Are you ready to convert clients to members? App fueled specializes in creating custom apps tailored specifically for auto repair businesses. Build client loyalty. Get started today with your own customer loyalty app. Visit Appfueled.com
      Lagniappe (Books, Links, Other Podcasts, etc)
      https://www.autoops.com/ - Online Scheduling for Auto Shops
      https://shopmarketingpros.com/ep-131-branding-your-shop-as-a-concierge-auto-repair-shop/ - Branding Your Shop As A Concierge Auto Repair Shop
      https://shopmarketingpros.com/ep-108-part-4-a-service-advisors-take-on-customer-retention-with-michael-doherty/ - Part 4 – A Service Advisor’s Take on Customer Retention with Michael Doherty
      https://remarkable.com/ - Remarkable notebook
      Show Notes with Time Stamps
      Introduction to the Podcast (00:00:01)  The podcast episode begins with an introduction to the Auto Repair Marketing Podcast.   Welcome and Topic Introduction (00:00:10)  Brian Walker welcomes listeners and introduces the topic of making great first impressions in auto repair.  Secret Shopper Concept (00:01:03)  Kim discusses the idea of offering secret shopper services to evaluate first impressions in auto repair shops.   Frog in Boiling Water Analogy (00:01:20)  Brian uses an analogy about a frog in boiling water to illustrate how business owners can overlook issues.   Personal Experience with Shop Cleanliness (00:02:26)  Kim shares a personal story about noticing cleanliness issues in her shop after sitting on the floor.   Origin of the Episode's Topic (00:03:13)  Kim explains that the episode's topic originated from a class she taught about hosting events in auto repair shops.   Creating a First Impression Checklist (00:04:08)  Kim mentions her intention to create a first impression checklist based on customer journey insights.   Importance of Online Presence (00:04:51)  Discussion shifts to how potential customers first experience a business online, including websites and Google profiles.   The Grunt Test (00:06:39)  Brian explains the "grunt test," where a stranger should easily understand what a website is about.   Evaluating Website Impressions (00:08:04)  Kim emphasizes the importance of assessing what feelings a website evokes in potential clients.   Social Media's Role in First Impressions (00:10:12)  The conversation covers how social media contributes to first impressions and customer perceptions.   Content Strategy and Audience Alignment (00:12:08)  Brian shares a client's unconventional marketing strategy and the importance of aligning content with audience expectations.   Google Business Profile Importance (00:12:59)  Kim highlights the significance of maintaining an accurate and complete Google Business Profile for attracting customers.   Customer Experience in a Hurry (00:14:01)  Kim discusses how potential customers often search for auto repair services quickly, emphasizing the need for accurate information. Improving Waiting Area Appearance (00:15:02)  Discusses the importance of updating photos of the waiting area to enhance customer impressions. The Importance of Phone Etiquette (00:15:38)  Emphasizes listening to phone calls to ensure service advisors are friendly and professional. First Impressions Over the Phone (00:16:38)  Highlights how the tone and manner of answering calls can significantly impact first impressions. Customer Experience During Calls (00:17:18)  Explores the importance of a welcoming greeting and attentive service during phone interactions. Listening to Recorded Calls (00:19:22)  Encourages shop owners to review recorded calls to improve customer service quality. Customer Experience in Shops (00:21:36)  Discusses a personal anecdote about poor customer service and its impact on first impressions. Evaluating Online Scheduling Experience (00:24:26)  Stresses the importance of user-friendly online scheduling systems for customer satisfaction. Drive-By Assessment of Shop Appearance (00:26:23)  Encourages shop owners to evaluate their business from a customer's perspective for first impressions. Parking Lot and Vehicle Presentation (00:27:27)  Discusses the significance of a tidy parking lot and appropriate vehicles for attracting customers. Signage and Branding Consistency (00:29:03)  Highlights the importance of maintaining updated and clear signage to reflect the brand accurately. The Story of the Old Shop (00:29:52)  Brian shares a humorous anecdote about visiting an old shop and its rundown appearance. The Importance of Cleanliness (00:30:46)  Discussion about how exterior cleanliness impacts first impressions in auto repair shops. Creating a Welcoming Atmosphere (00:31:27)  Kim emphasizes the significance of the waiting area’s atmosphere and sensory experiences for customers. Sensory Experiences Matter (00:31:47)  Exploration of how smell and touch affect customers' perceptions in an auto repair shop. Comparing Experiences (00:34:29)  Kim discusses how customers compare their experiences to other businesses like Chick-fil-A. Details Matter (00:35:28)  Highlighting the importance of small details in creating a positive customer experience. Creating a Family-Friendly Environment (00:36:55)  Discussion on accommodating families and making kids feel welcome in the shop. Comfort in the Waiting Area (00:38:39)  Brian stresses the need for comfortable seating and a welcoming environment for customers. Responsibility for Cleanliness (00:39:23)  Discussion on who is responsible for maintaining cleanliness in the shop. Bathroom Cleanliness (00:40:20)  A personal story about the poor state of a customer-facing bathroom and its impact. Thoughtful Amenities (00:41:24)  Kim talks about providing thoughtful amenities for female customers in the bathroom. Impression of Cleanliness (00:43:19)  Discussion on the importance of maintaining high standards of cleanliness in customer-facing areas. Shop Area Cleanliness (00:44:11)  Importance of maintaining a bright, clean, and organized shop environment for clients and staff. Efficient Shop Layout (00:45:02)  Discusses the necessity of an efficient layout to enhance workflow and client experience. Client Interaction (00:46:05)  Emphasizes tailoring conversations with clients based on their vehicle ownership goals. Permission for Inspections (00:47:58)  Importance of asking for permission to perform inspections to enhance client trust and experience. Client Follow-Up (00:48:59)  Discusses the significance of following up with clients post-service to ensure satisfaction. Team Appearance (00:49:48)  Highlights how professional attire of staff can impact first impressions on clients. Importance of First Impressions (00:50:45)  Stresses that consistent positive impressions lead to long-term client relationships and referrals. Final Thoughts and Checklist (00:50:46)  Introduction of a PDF checklist for staff to enhance awareness of shop cleanliness and organization.
      How To Get In Touch
      Group - Auto Repair Marketing Mastermind
      Website - shopmarketingpros.com 
      Facebook - facebook.com/shopmarketingpros 
      Get the Book - shopmarketingpros.com/book
      Instagram - @shopmarketingpros 
      Questions/Ideas - [email protected]
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
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      Discover how to leverage upcoming opportunities like St. Patrick’s Day, tax refund season, and National Days such as 'Check Your Batteries Day' and 'Chocolate Chip Cookie Week.' Whether you’re gearing up for alignments after pothole season, celebrating your team, or engaging your community, this episode is full of tips to help you plan your marketing with confidence.
      Tune in now to get ahead of the game and make March your shop’s most successful month yet!
      Thank you to our friends at RepairPal for providing you this episode. RepairPal is the key that unlocks more business for your repair shop. Learn More at RepairPal.com/shops. 
      Are you ready to convert clients to members? App Fueled specializes in creating custom apps tailored specifically for professional auto repair businesses. Visit Appfueled.com   to get started today. Keep your shop top of mind on the mobile device they love.
      Lagniappe (Books, Links, Other Podcasts, etc)
      https://shopmarketingpros.com/ep-129-preparing-for-februarys-marketing/ https://www.daysoftheyear.com   
      https://www.nationaldaycalendar.com/ 
      https://automotivetrainingevents.com/event/vision/ - VISION Hi-Tech Training & Expo 


      Show Notes with Timestamps


      How To Get In Touch
      Group - Auto Repair Marketing Mastermind
      Website - shopmarketingpros.com 
      Facebook - facebook.com/shopmarketingpros 
      Get the Book - shopmarketingpros.com/book
      Instagram - @shopmarketingpros 
      Questions/Ideas - [email protected] 
      Click to go to the Podcast on Remarkable Results Radio
    • By Changing The Industry
      Episode 200 - Balancing Customer Service & Profitability in Auto Repair With Rick White & Mike Himes
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