Parts & Service Director

Reports To: Dealer Principal / President / Chief Operating Officer
Department: Fixed Operations
Location: Multi-Store Automotive Group (3 Dealerships)

Position Summary

The Parts & Service Director is responsible for the leadership, profitability, growth, and operational performance of the Parts, Service, and Quick Service departments across a three-store automotive dealership group. This position develops and executes strategies to maximize customer satisfaction, employee performance, operational efficiency, and financial results while ensuring compliance with manufacturer standards and company policies.

The Parts & Service Director serves as the senior fixed operations leader and works closely with General Managers, Service Managers, Parts Managers, and the executive team to achieve group-wide objectives.

Essential Duties and Responsibilities

Financial Management

• Drive profitability and growth of the Parts and Service departments across all locations.
• Develop annual budgets, forecasts, and operating plans for fixed operations.
• Monitor and analyze key performance indicators (KPIs), including:
  • Gross profit
  • Net profit
  • Labor sales and gross profit
  • Effective labor rate (ELR)
  • Customer pay penetration
  • Technician productivity, proficiency, and efficiency
  • Parts inventory turns
  • Obsolescence
  • Warranty performance
  • Service absorption
  • Customer retention
• Review financial statements and identify opportunities for improvement.
• Implement strategies to improve service absorption and fixed operations profitability.

Leadership & Team Development

• Recruit, train, mentor, and develop Service Managers, Parts Managers, Advisors, Technicians, and support staff.
• Establish performance expectations and accountability measures.
• Conduct regular performance reviews and coaching sessions.
• Create succession plans for key fixed operations positions.
• Foster a culture focused on teamwork, accountability, customer satisfaction, and continuous improvement.

Service Operations

• Ensure consistent execution of service processes across all locations.
• Improve customer retention and repair order growth.
• Monitor shop productivity, workflow, technician utilization, and capacity planning.
• Lead initiatives to improve Fix It Right the First Time (FIRFT) performance.
• Oversee warranty administration and compliance.
• Ensure service departments meet or exceed manufacturer standards and customer satisfaction goals.

Parts Operations

• Oversee inventory management, purchasing, stocking levels, and parts availability.
• Monitor and reduce obsolete inventory.
• Improve inventory turns and return on investment.
• Ensure accurate inventory controls and cycle count procedures.
• Develop wholesale and retail parts growth strategies.
• Standardize parts department processes across all locations.

Customer Experience

• Ensure exceptional customer service standards are maintained.
• Monitor CSI and customer feedback metrics.
• Resolve escalated customer concerns promptly and professionally.
• Develop initiatives that improve customer loyalty and retention.

Process Improvement

• Standardize best practices across all stores.
• Identify operational inefficiencies and implement corrective action plans.
• Utilize technology and reporting tools to improve performance.
• Lead continuous improvement initiatives focused on profitability, efficiency, and customer satisfaction.

Compliance & Safety

• Ensure compliance with all manufacturer requirements.
• Maintain adherence to federal, state, and local regulations.
• Promote and enforce workplace safety standards.
• Ensure environmental compliance and proper handling of hazardous materials.

Qualifications

Education & Experience

• Minimum 5 years of automotive fixed operations management experience.
• Multi-store management experience preferred.
• Proven track record of increasing fixed operations profitability.
• Strong understanding of dealership financial statements.
• Experience with manufacturer programs and performance standards.
• Knowledge of parts inventory management and service department operations.

Skills & Abilities

• Strong leadership and team-building skills.
• Excellent communication and interpersonal abilities.
• Financial analysis and budgeting expertise.
• Ability to interpret and utilize dealership performance reports.
• Strong organizational and problem-solving skills.
• Proficiency with dealership management systems (DMS), reporting tools, and Microsoft Office applications.

Key Performance Indicators (KPIs)

The Parts & Service Director will be evaluated on:

• Fixed Operations Net Profit
• Service Absorption
• Customer Pay Labor Sales Growth
• Effective Labor Rate (ELR)
• Technician Productivity, Proficiency, and Efficiency
• Customer Satisfaction Index (CSI)
• Fix It Right the First Time (FIRFT)
• Warranty Performance
• Parts Gross Profit
• Inventory Turns
• Obsolescence Levels
• Employee Retention
• Customer Retention

Compensation

• Competitive Base Salary
• Performance Bonus Program
• Company Vehicle Allowance (if applicable)
• Health, Dental, Vision Insurance
• 401(k) with Company Match
• Paid Time Off
• Professional Development Opportunities

Expected Leadership Traits

• Ownership mentality
• Results-driven mindset
• High integrity and accountability
• Strong coach and mentor
• Strategic thinker
• Customer-focused leader
• Collaborative team builder

This position is responsible for the overall success of the fixed operations departments and plays a critical role in maximizing profitability, customer retention, and operational excellence across all three dealerships.