Chrysler’s US dealers sold 1.4 million service contracts in 2012

Article by Anita Panait, on February 11, 2013

Chrysler Group’s dealers in the United States sold 1.4 million service contracts in 2012, equivalent to a 16-percent increase over 2011, according to Pietro Gorlier, head of Mopar brand. Gorlier remarked that service contracts are valuable since each generates at least three service visits to a dealership, leading to a minimum of 4.2 million future visits, based on averages.

He added that the figure means that Chrysler’s dealers are selling in their service lanes. Chrysler’s service contracts range from a package of three future oil changes worth $50, to seven-year bumper-to-bumper warranties priced at around several thousand dollars. Service contract sales are considered important since they entice customers to visit a dealership rather than having their vehicles serviced at an independent service provider.

Gorlier remarked that service contract sales help solidify the relationship between the customer and the dealer. Since 2009, Gorlier has been pushing Chrysler dealers to extend weekend service hours and to sell more Mopar parts and accessories. This way, they could maintain service department revenues despite waning warranty claims.

On the other hand, Mopar – Chrysler’s parts, service and customer care unit – has released to dealers a tablet-computer application dubbed “Wi-Advisor” that allows service writers to download service history from Chrysler as well as get diagnostic information from the vehicle and show it to the customer.

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