That has to change. That is not a good retail experience. And you know, for us in general is what can we do to change that? You know, we have to be better.
After 200 years in business and with a name well known for motor oil, can this company survive and flourish in a possible 80 future? Today, I'm speaking with Chad Brooks, head of dealer development at Valvoline, an international brand that's creating a service site technology platform for car dealerships. We discuss how car dealers are evolving their service departments to retain more customers. The implications of being acquired by a 7.5 trillion dollar company. Yes, that's with a T. Battery replacement and anxiety affecting used EV sales and much more. Don't forget to click subscribe so you never miss an episode.
What's up everyone? This is Car Dealer Ship Guy. You're listening to the Car Dealer Ship Guy podcast, which is my effort to give you access to the most unbiased and transparent insights into the car market.
But before we dive into the show, this episode is brought to you by CDK Global. CDK Global has been empowering nearly 15,000 dealers with the tools and technology they need to build deeper relationships with customers. Their team is keenly aware of the state of dealership technology and while many vendors promise seamless experiences between your CRM, DMS, digital retail and fixed ops, most of these bolt-on solutions tend to break workflows and cause more harm than good. That is why CDK has launched a new dealership experience platform. This new integrated software consists of everything you need to operate a dealership officially while delivering an unparalleled experience to your customers. Basically, everything working together, not separate, one system to run your dealership as opposed to 10. CDK developed it with an outside-in approach listening to dealers every step of the way. You can learn more about CDK's dealership experience platform by visiting CDKGlobal.com/slash-DXP or clicking the link in the show notes below.
This episode is also brought to you by Valvoline. I'd like to thank Valvoline for coming on as a guest and also supporting this podcast. Chat Brookes on the CDG podcast. Chat, welcome. Excellent. Thank you so much for having me. I've been a huge fan for quite some time now and we're really excited to be a part of it. Thank you for having us today. My man. Enjoyed linking up at NADA. That was a fun time. Incredible experience, man. Awesome. Weekend. We had a great turnout. Obviously, you had a great turnout coming out and showing your face for the first time. How was that for you? It was very different. Let's put it like that. I'm used to being behind the screen. It was, we were like 10 minutes before and there was the video premiere that I had. And there was no one there. And the team was like, come into me. What's going on? I was like, don't worry. I told everyone to comment. This exact time. It was like five minutes later. And then suddenly people arrived. It was kind of like this cliffhanger. You're like, wait, is this real life or is this all just like internet and fugazi? But it worked out. Thank God. Lots of very supportive people in the community. And seriously, it just left with lots of gratitude for the community and for what we're able to do with this platform. So overall, really enjoyed it. Awesome, man.
Now, one more question. If you don't mind, everybody had the question on their hands of why now, you know? That was definitely the biggest question. And so, there's a couple of reasons. First of all, CDG started as a social media account. A lot has changed since, right? CDG is a business, you know, we're a team, we're growing. And something that I sort of felt misunderstood. Like I would go, I would go into these conversations with people and they'd be like, oh, so why are you anonymous and why this? And the truth is like, it's like, do I start explaining, oh, well, you see Mr. Person, I launched as an anonymous Twitter account, but then I evolved into a business and it grew faster than I expected. And it was like, it's so much, by the way, along the way, I had this venture back business. Like, there's like all this stuff. And I sat there one day and I said, like, how do I explain the story? Like, I've never created a video document. Like, I was, how do I explain the story? And so anyways, that was the, that was what led me to do that. I said the best way to tell a story in a very intimate fashion is to create a video and to do it authentically. But hey, less about me, more about you, because I want to hear your story. And I appreciate you asking.
I saw recently that you, Valvoline, you became involved with F1, you're sponsoring the Aston Martin team, a brand partnership, a technical partnership. Can you just tell us a little bit?
Absolutely. Yeah. I know we're super excited. Obviously, you know, we were partnered with Aramco who took Valvoline. We got purchased out in 2023. And the partnership, obviously, you know, we're, we're big in an ass car vented for a long time and having this opportunity to join Aramco and be a part of that experience with the Aston Martin team and join F1 is, is insane.
I mean, I'm a huge fan. I'm couldn't be more excited. Aston Martin is a fantastic brand to be partnered with, obviously with Aramco. On the technical side, you know, we were doing a lot. We're, we're part of the research and development and really working in providing them with some lubricants to help those cars run a little bit, a little cleaner, a little faster. So fantastic partnership also gives us more of a global reach, right?
I mean, F1 really does cover the entire world. And it's, it's one of the largest, if not the largest sports.
我的意思是,F1真的覆盖了整个世界。它是最大的,如果不是最大的体育项目之一。
So we're super excited and hoping to help continue to build that brand with Valvoline. Yeah, did they, did they get you down there for some, for some of the races?
Actually, I was able to attend the race in, in Las Vegas this past year. And what an incredible experience. I mean, just, you know, shutting down, you know, downtown Las Vegas was, was incredible. And, you know, having to put on a lot of miles walking, but overall, I thought the experience was incredible. They had so many different, different items going on and such a cool experience overall.
You know, everybody we spoke to that was there, just had an incredible time and look forward to hopefully hitting up a couple more tracks this coming year for sure. Love to hear it.
You've been at Valvoline. I saw for almost two decades, right?
你一直在Valvoline工作。我看你在那儿快两十年了,对吗?
Very, very impressive tenure, which you just don't see too often nowadays.
非常非常令人印象深刻的任期,在现今很少见到。
Just start us back with, you know, growing up, like why automotive?
可以从我们小时候开始,你知道,为什么选择汽车行业?
How did you even get to, you know, to this industry?
你是怎么进入这个行业的,你懂的,就是这个行业?
Yeah, great question.
是的,好问题。
So obviously, been with Valvoline, you know, almost 19 years. I've been in an incredible journey.
所以很明显,我已经与Valvoline一起度过了将近19年。我经历了一段不可思议的旅程。
Started in my career actually in Canada.
实际上,我是在加拿大开始我的职业生涯的。
So my father actually grew up in the automotive.
所以,我的爸爸实际上是在汽车行业中长大的。
这句话的意思是,我的父亲在汽车行业中成长和成才。
I've been around it my entire life.
我一辈子都在它周围。
I mean, going back to being 16, you know, driving parts trucks.
我的意思是,回到16岁的时候,你知道,开着卡车送货。
You know, I did that through college as well, just for some, some spare side money.
你知道的,我在大学期间也这样做,只是为了赚一些零花钱罢了。
You know, got me through college and then had an opportunity to join Valvoline in 2005 was a was a great experience. I was just a territory business manager in Ontario, and then kind of drifted towards the national downside.
And in 2014 had an opportunity to move to North Carolina and kind of spearhead and help support the Hendrick account, which was honestly one of the best experiences I've had.
I mean, moving countries, obviously, my family was a little bit stressful at times, but having that opportunity to join and be a part of Hendrick and be a part of that day to day learning about dealerships in the front and the back end and training side and, you know, that that entire process and even being a part of NASCAR and on the motorsport side was incredible.
Like, what were the biggest lessons you cleaned from that experience?
你从这次经历中学到的最重要的教训是什么?
Yeah, I think, you know, that gave me an opportunity on the back end to really learn more about dealerships, learning about what technicians struggles are and where the business is going and, you know, working with advisors every day and learning what their day to day looks like and how busy they can be in a day and try to see what those pain points were and also helping them grow.
I mean, we're at Valvoline in general, we list ourselves as more of a true partner and not a supplier.
我指的是,总体来说,我们在 Valvoline 是更像是真正的合作伙伴而不是供应商。
So being in the trenches day to day with dealerships was a lot of fun and a great journey and kind of set me on my path towards where I am today.
每天与经销商一同奋斗在一线,这是一段非常有趣且充满挑战的旅程,也确立了我今天的发展路径。
Now, now take us back.
现在,现在带我们回去。
Look, Valvoline is, I believe a 200 year old entity, right?
看,我相信Valvoline是一个成立已有200年的机构,对吗?
It's been around for centuries, clearly.
这个东西已经存在了好几个世纪,显而易见。
When you think about just the future, right, where the world is headed and EVs, ICE, just the oil, I mean, all that stuff that's, you know, happening in the world right now, how is Valvoline, how is the company reinventing itself?
Obviously, everybody understands that EVs are here, they're here to stay, right?
显然,每个人都明白电动车已经到来了,并且将会长久存在,对吧?
I mean, we're definitely joining forces and getting on board with that.
我的意思是,我们肯定会联手合作并参与其中。
And what a lot of people don't realize is we actually are one of one of the largest coolant companies on the planet.
而很多人没有意识到的是,实际上我们是全球最大的冷却剂公司之一。
I mean, we do a ton of OEM business with a lot of different OEMs as well as supplying on the EV side.
我的意思是,我们与许多不同的原始设备制造商进行了大量的OEM业务,并在电动汽车方面进行供应。
So we've definitely developed and, you know, have been more strategic on where we're going and what that future has. I think one big step we've had of the last recent year and a half, almost two years now was on the dealership side. And, you know, our brand and butter for a long time was quick lube and tire stores. I mean, that's where we were strong. We've been strong, national account.
You know, that that was our, our, where we, where we kind of grew our business and grew our brand for so long. And we were good on dealerships. I think, you know, that was never really a big focus for us. And about two years ago was when, you know, I was given the opportunity to kind of spearhead and let's dive in and find out what we're missing and where we need to go as a company to continue to build in there.
You know, now I have my own sales team. We have our own sales executives. We have a full team of training staff in the field right now working with dealerships and we've really developed ourselves to be, you know, not a supplier, but like a true partner, you know, being consultative and going in and working with them, finding pain points. It's been an incredible experience. I mean, that that's where I see, you know, obviously, the future going is how can we continue to develop programs and, and build ourselves to be stronger and build a brand and continue to grow, obviously. Yeah.
So they can look one level deeper there. Like what are you doing on the server side? Because that is a transition for what you should just be right. Like when you think, Valvoline, many times you think, yeah, like quick loop, oil, what are you really doing on, on that server side? How are you working with dealers?
Yeah, absolutely. So, Valvoline, we're known as an oil company, right? And we're so much more than that. I mean, we have a full line of, like I mentioned earlier, coolants. We've got a full preventant maintenance line. We've even gone towards, you know, shifting towards customer retention, which is a huge one for the dealership world. So we've got programs driven to help support customer retention, you know, whether that's through some rewards. We've got mailers, we've got techs programs. We're really building that section out to be different than, you know, just a standard oil company, whichever one thinks who we are.
Obviously, we've got intense warranties out there that we can help support bring that retention back as well. And what we're seeing the shift in dealerships is really towards, you know, the customer retention as well as the customer experience. And our team, our field training staff and our teams in general and our executives are trained to be able to go in and help support these dealers and help continue to build that out. And then we have our full programs to help support that on the back end. If you don't know, actually, a new area we've really ventured into is the service lane technology. I mean, you would have thought Valvoline would actually get into the tech side. So that's been a super exciting venture for us and shift in the business for sure.
Yes. So tell me more about the tech side, right? Not something that you would typically expect an oil company pivoting or not pivoting, but introducing technology. How is that working out for you? Right? What did you introduce? Like, what are you doing with dealers on that side?
Yeah. So I mean, originally, you know, with us being a true partner and working with dealers, we're trying to find areas that we need dealerships in general need to improve on. And one area was really just, you know, in regards to advisors, every single advisor sells a different way and we're trying to streamline that. So originally, what we were trying to do was just build out a basic menu, you know, something that the advisors could have and create that communication and education with their customer. I think that's what we're missing.
You know, consumers come in with their keys, drop them off. They really don't understand their vehicle there that well. So how can we be better and how can we better educate them so that they understand their vehicle and understand what services are recommended and potentially need to be performed versus, you know, waiting for the MPI to come back to the multi-point inspection, you know, when you get that list of all the good, bad and the ugly on that vehicle, why are we selling off of that? We've been doing business the same way for 35, 40 years of just selling off of that, that multi-point inspection. I mean, we wanted to be a leader. We wanted to change that. We want to change the direction.
So we dove in, we said, you know, if we're going to do it, we're going to do it right. And we created a full tech program that is a full service lane technology that actually implements into their current system. So when the car comes in, you know, we're scanning VINs, we're pulling up menus based off of mileage. We're doing walkarounds with the customer as soon as they get there, we're making recommendations now versus waiting till the end. And that really changes the flow and brings that customer into the conversation. Instead of waiting to just try and sell them stuff, we want them to be able to learn more about their vehicle and what those services mean and how we can continue to help grow that side of the business.
Yeah, and build trust with the customer. It's all about trust. I mean, even our end, you have to get that customer to trust you. And that helps build that retention. One of our coolest parts, I think of that system is definitely communication parts. So when they come in and they check in, they actually will get a text message that shows where they are in their service intervals. So it shows a check in, can tell you if the parts are ordered, tell you when the technician sees the vehicle, we're setting them status updates throughout the day. And that prevents them from always wondering, you know, where is my car?
You know, and a funny story going into that, coming from a consumer side, you want to talk about experience. My daughter actually has a vehicle that we had service. She lives in North Carolina was actually going to come down to Florida. I was supposed to fly up to drive her back. Unfortunately, the vehicle had a warranty issue. So they call me as I was about to board a flight and said, Hey, you can't drive this. Secondly, we can't rent you a car because you're leaving state. So I had the last minute book, my daughter to fly home. So her vehicle stayed where she goes to school. Through that process, you know, they had a warranty part that said probably take about 30 days to get, obviously being in the business, know a few other dealers and called around and found a part, you know, as we do. So I actually called the dealership left the voicemail, Hey, give me a show back. I think have a solution. No call back called again, no call back call for status update, no call back. They send me a text message from the original, well, when we drop the vehicle off, message there three times no call back. Now we go three weeks later and I get a call saying, you know, voicemail is actually flying that day. I get a voicemail saying, Hey, your vehicle's ready. The day of I call the same thing. Hey, just wanted to follow up. Like when can my daughter come pick up the vehicle? No call back. I mean, the experience unfortunately was how it is, right? You call and leave voicemails and they're busy. They're living that life being being, you know, in a very busy world and I fork stand never received a call back to this day. I still haven't received a call back.
Now she did get her vehicle back. So everything is good there. But I mean, that has to change. Like that is not a good retail experience. And you know, for us in general is what can we do to change that? You know, we have to be better as as a whole group, especially if we want to be more involved into the retail side. And that's what we've done is we built programs around that to clean up communication and really like help support that customer journey and build that trust and build that retention. I think we'll all we'd all agree that service definitely picking up phones and services historically been a big challenge for the industry.
And you're right, people are busy. So it's not out of obviously bad intent. It's it's always like a staffing thing. Like you what's your insight into the biggest opportunities for service revenue just for the service side of the business. Look, the industry is we know that we're heading into a time period with more new car inventory, which is going to lead to margins margins compressing on the new side. We've already seen that, but it's it's only going to accelerate.
Used is staying pretty strong because of the fact that you know, we still have relatively historically low supply and new leases that over the last three years, you know, there was much fewer leases or new leases put on put on the streets, which has led to a situation now where for the next year and a half, we're going to have this sort of, you know, lease return cliff that the industry needs to grapple with. So these are the two things, but talk to me about service now, right? Were you seeing the biggest opportunities on the service side?
Yeah, I mean, working with owners and GMs, you know, and service directors, we have that conversation almost on the daily of, you know, what are we seeing? What can we do to help that? I think what we're what we're seeing is, you know, when you talk about a shift, we're the preventative maintenance side. I think, you know, cars aren't breaking down like they used to, right? You know, you don't get a lot of the services coming in or mostly oil changes.
How do we build transparency from the beginning to the end on the customer side, right? How do we build trust and loyalty back? You know, we rely so much on the technician making that recommendation and a lot of them sometimes, you know, they don't make those recommendations. They look at some things and see that, you know, hey, this is good to go. But in reality, you know, why are we waiting for stuff fluid specifically to be dead, you know, to be dark, you're pulling it out and it's dark, it's already gone. How do we change that? And, you know, Bavlin has built a program where we actually have a warranty built in that if they do the service interval really every 30,000 miles, they're covered under those components. So how do we build that at the front end to help educate customers that, hey, listen, if you do this service and you're keeping this vehicle, we will provide you a warranty that if anything does happen, we're going to back that. And that's a huge opportunity is being able to, like we said earlier, being able to build that at the front of the house versus waiting for that MPI. That's a huge opportunity and building advisors and trying to bring transparency and build that communication from the minute the customer comes into the minute they leave. We're missing a lot of that now. You know, the experience you get from advisor A, B and C is different. How do we streamline that? How do we build more consistency between that and have a better customer experience through the entire process?
Well stated, I want to ask you a more, you know, kind of internal question within Vavlin, but what's the sentiment regarding EVs? Like our EVs perceived as a threat within the company. How do you guys think about that?
Believe it or not, we don't actually, we're, you know, we know it's coming. I mean, there's no, there's no hiding around that. I think, you know, that's where we're learning to develop more products to be supportive of the EVs, especially on the cool side. Like I mentioned, you know, we're a global product for coolants. We're doing a lot of OEM factory fill for EVs as well. A lot of research and development, I think going transitioning into service lane technology, like we're building programs as we continue to develop them out. But I mean, we also are involved in other businesses, right? I mean, from the commercial side to industrial side, heavy duty side, I mean, we're a very big company. So just that little bit, you know, if you want to call retail side for the oil business, as it continues to shift in and downfall, we're prepared. I mean, we're not afraid where we know it's coming and we're supporting it, right?
Tell me more like when it comes to your dealer interactions and, you know, dealers transitioning to servicing EVs, what are you seeing there? What sentiment on the street from what you're seeing?
Yeah, I mean, you know, talking with these dealerships, you know, you get, you kind of get a little bit of both worlds, right? I mean, as you know, investing into EV to be able to service these vehicles is substantial. So, you know, a lot of dealers are either in or they're out. The ones that are going in are having to make some pretty big investments to be able to service these vehicles, right?
You see a lot of them starting to transition through that, I think, as of recent, you see that more now than we probably did a year or two ago. You know, Tesla took off and has just made a massive impact on the industry. And, you know, I think the other OEMs specifically domestic are trying to catch up. I don't know if they will catch up. I don't think that, you know, you see the consumer base, there's there's still a lot going on in EV and the technology is there, but, you know, a battery technology still needs to improve. And in general, I think the, you know, sustainability of, you know, people being able to go long hauls on these EVs still scares people. So, it's still in that like, in an early stage, I think that is the future. It's coming, right? And it's what can we do to prepare for that?
But on the road, for sure, you do hear a lot of, you know, how do we invest? Where do we invest? Where's the business going? And as we see new vehicles starting to be, you know, getting more stock of them, you're starting to see some stuff sitting right now. So it's kind of in that little stagnant period, I think right now where we're, there's a lot going to change in the next year or two for sure. And on the used car side, like, you know, a lot, this is really never talked about, but are people willing in five years to buy a used Tesla that, you know, maybe that battery power isn't what it used to be. Are they going to be willing to invest in and putting new batteries in these? I think if we, until we see a true decrease in the battery cost of replacement, I think it's, we could see a struggle coming. But I think technology is changing, right? These batteries are going to be that are coming out are going to be lighter, they're going to be faster, they're going to be easier to swap out. But that's definitely the future.
Yeah, I think on my end, like I've seen some, some frustration just with a more so on, like practically speaking, on the cost of investment, you know, if you look at like Chevy dealers, right, these big investments followed by Chevy GM then stating very recently that they're going to, you know, reassess their EV strategy, go more hybrid. So it's sort of like bittersweet in the sense that it's like, well, you know, I've been investing in preparation of this, but now we're, you know, we're sort of a change in strategy, which is likely good for sales in the short term, but I've already put some money behind it. So it's, it's, it's a bit of a weird situation.
Yeah, if you look at Toyota, I mean, Toyota's, you know, they're, they're the leading charge in hybrid, right? I mean, they, they can't, they're still on a waitlist and some dealerships trying to get hybrids to come in. So, you know, you see that, that mixed approach and see Toyota as, as a powerhouse, really shifting and stating, you know, standing their ground on that, you know, that's really where I think the future will go. But like I said, the technology with EV is incredible. I mean, the inside of these cars and what they've been able to do in such a short period of time is awesome. And I do believe it's here to stay.
Yeah. And you're right on the Toyota front. I've just long been a, been a fan of their, the way they operate. I have no, I have no incentive to do that. I mean, I have no relationship to Toyota indirectly or directly. But I think just their prudence and the way they operate is just very strategic. You know, I had Doug Iro, president of Longo Toyota on the podcast. And he was talking about how they still have like 6,500 or so deposits on vehicles at peak, you know, pandemic times. They have like 15,000. So it's just remarkable to demand for that product and how well it's doing.
Absolutely. No, that was a great broadcast, by the way. My man, I don't think many people would know this. I didn't know this, but Valvoline, you know, you were purchased by Aramco, right? The most valuable company in the world. For anyone that is like, like, big numbers, $7.5 trillion market cap as of this recording. So pretty remarkable.
Absolutely. I mean, being purchased by literally the largest company on the planet is exciting. I'm not going to lie. I mean, what they can do to help us be better at what we do, you know, whether that's globally, you know, strategically through our, you know, research and development that there's a huge opportunity there. I mean, we knew something was coming, but I mean, to be partnered with Aramco is, is incredible. I mean, I couldn't be more excited about it myself, you know, them being able to step in and really help us become the brand that we are now, but the brand that we can be in the future.
I know they've got some massive goals for us. You know, utilizing us as a global product, you know, being around for 200 years, we've got the name, we've got the brand, you know, they're going to use us and strategize to be able to help build their brand out as well and put them, you know, at a different level. And they want Valvoline to be the number one in the world. And I know that strategically, we will be. I mean, there's no question about it. They've got the plan, they've got the goals, they've got the infrastructure. And we're excited. I'm excited. Like I've been, I've been with Valvoline a long time to be able to have that type of excitement. You better be excited. You've been there for almost two decades. If you weren't excited, I'd be concerned for you.
Yeah, no, it's awesome. It's, it's a great thing to have. I mean, being able to be backed by, once again, the largest chemical and oil company on the planet is insane. So we're super excited. And, you know, the main reason they purchased was really for the brand. I mean, having Valvoline is that brand logo, that red, white and blue, you know, we're known across the globe. There's some areas where we're not so popular, but that's where they're going to help support us to, to get us to that next level for sure.
Well stated, my friend, I'm rooting for you. Keep, keep pushing the industry for better. It's really, really cool to see. And this was really great conversation, Chad. So thank you, man. If anyone wants to learn more, we're going to throw up the link in the show notes below so you can learn more about everything that Chad is working on, Valvoline, all the different services and the technology.
So Chad, thanks for coming on. This was great. Absolutely, man. Thank you so much for your time. It's been a pleasure. All right. Hope you enjoyed that episode. Please give the podcast a rating. Consider subscribing to the show and check the show notes for links to what we talked about. Thanks for tuning in. I'll see you guys next time.