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Data Base Development of Automobile and Light Truck Maintenance 6 . 1 1 HL DOT-TSC-NHTSA-78-25 I , 18.5 “ORT NOS. , HS-803-376 . a34 no DATA BASE DEVELOPMENT OF AUTOMOB I LE UUT- AND LIGHT TRUCK MAINTENANCE T8G - Appendixes A-D NHTSA- VOLUME I Text and 78-25 V.1 Donal d A . H urter Nancy G. G a rdel 1 a Philip G . G ott thur D L i t tie Inc Acorn Pa r k a m b r i d g e MA 02140 < Of TRj., DOCUMENT IS AVAILABLE TO THE U.S. PUBLIC THROUGH THE NATIONAL TECHNICAL INFORMATION SE R VICE, SPRING FI ELD, VIRGINIA 22161 Prepared for U.S. DEPARTMENT OF TRANSPORTATION NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION Office of Research and Development Washington DC 20590 NOTICE This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The United States Govern- ment assumes no liability for its contents or use thereof. NOTICE The United States Government does not endorse pro- ducts or manufacturers. Trade or manufacturers' names appear herein solely because they are con- sidered essential to the object of this report. Technical Report Documentation Page 1 , Report No. 2. Government Accession No. 3. Recipient's Catalog No. HS-803-376,1 4. Title and Subtitle 5. Report Date August 1978 DATA BASE DEVELOPMENT OF AUTOMOBILE AND LIGHT TRUCK MAINTENANCE 6. Performing Orgonization Code VOLUME I - TEXT AND APPENDIXES A-D 8. Performing Orgonization Report No, 7. Author^ s) nnT -TCr-MUTQ A t J-J C/ ^ X L_J C/ 1 i X jV /O Donald A. Hurter, Nancy G. ^ 9. Performing Organization Name and Address po. Work Unit No. (TRAIS) HS827/R8408 Arthur D. Little, Inc.* Acorn Park |1 1 . Contract or Grant No. 0EC13 la/b 1047-1 Cambridge MA 02140 DOT/TSC |i 3. Type of Report and Period Covered 12. Sponsoring Agency Name and Address Final Report U.S. Department of Transportat; Liinaty June 1975 - National Highway Traffic Safety AdministratioiT December 1977 Office of Research and Development 14. Sponsoring Agency Code Washington DC 20590 15. Supplementary Notes U.S. Department of Transportation *Under Contract To: Research and Special Programs Administration Transportation Systems Center Cambridge MA 02142 16. Abstract This volume describes the development of the life cycle maintenance costs for 212 sales—leading 1970 through 1975 passenger cars and light trucks. These costs pro- vide a data base for the Department of Transportation^ which describes the costs for parts and labor for performing both the scheduled (manufacturers recommended) and typical unscheduled (replacement of worn out parts) maintenance for each of these 212 vehicles. The actual data base is contained in Appendices E and F which are bound separately in Volumes II and III. This report also describes where the service work is performed during the vehicle life cycle. In addition, the automotive service industry has been characterized. This character- ization includes the facility (building) costs, land requirements, tools and equip- ment requirements, inventories investment costs and operating capital required to operate a service establishment. The major types of service facilities which perforir most of the commercially done repair work were characterized. These establishments are representative of the 29,600 new car dealers, 86,200 gasoline service stations, 30,650 independent repair garages, and 12,280 specialty shops in existence in 1975. The policies used by the service industry in pricing replacement parts are also presented. The report details the price discounting policies of the industry parts suppliers, including the automobile manufacturers and aftermarket parts manufac- turers, as well as those of the parts distribution system (jobbers, new car dealers, oil companies, and specialty shops). 17. Key Words 18. Distribution Stotement Service, Repair, Data Base Scheduled Maintenance, Unscheduled Maintenance, DOCUMENT IS AVAILABLE TO THE U.S. PUBLIC THROUGH THE NATIONAL TECHNICAL Pricing Policies, Service Facility INFORMATION SERVICE, SPRINGFIELD. Requirements, Investments VIRGINIA 22161 19. Security Classif. (of this report) 20. Security Classif. (of this poge) 21. No. of Poges 22. Pric« 148 Unclassified Unclassi f ied 1 (8-72) Form DOT F 1700.7 Reproduction of completed page authorized ' ""r. ( "k;!*'' PREFACE This development and analysis of the Repair and Service Maintenance Data Base was performed for the U.S. Department of Transportation, Transportation Systems Center by the Automotive Technology Group at Arthur D. Little, Inc., under Contract Number DOT-TSC-1047 . The work was done under the guidance of Mr. Sanuel F. Powel, Ms. J. H. DeBlois, and Mr. James Kakatsakis, Technical Monitors at DOT/TSC. The Program Manager was Mr. Donald A. Hurter, assisted by Mrs. Nancy Gardella and Mr. Philip G. Gott. We would like to thank the Chilton Publishing Company, and in parti- cular, Mr. James Milne, as well as many others in the automotive industry for their contribution to the development of the vehicle maintenance data base. This is a three-volume report - Volume I presents a data base of the automobile and light truck service and repair industry and the current maintenance requirements of 212 domestic and foreign cars and light trucks through the years 1970-1975. Volume II includes the total cost summaries of Scheduled and Unscheduled Maintenance and Appendix E, Scheduled Maintenance Data Sheets. Volume III includes Appendix F, Unscheduled Maintenance Data Sheets. i i i ! S S e l I ~5 Vj 3 C 3 \ = a » a « ^ Itl i III!! [Hi Hi s E S « ^ <4 M , 8 «( »; o o ^ '^ CB I « |b. * S fils ifill llil Hi I B E E £ 1 ~E i a FACTORS CONVERSION T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T T|T METRIC 9 8 7 « 6 4 3 2 1 inch«t « n S S e i S a E E E .EE M « «» «• C t . r . $ £ t ^ E t f ill Caltiui is I i ! ! H I i (atUf $/* MI C « i -E-i Vi fll oasl'fc'V IV CONTENTS Page Section 1. EXECUTIVE SUMMARY 1 1.1 Introduction 1 1.2 Repair and Service Industry Pricing Policies 1 1.3 Vehicle Maintenance Data Base 3 1.4 Where the Maintenance is Performed 4 1.5 General Trends in the Population of Service Establishments 4 2. INTRODUCTION 6 2 . 1 Background 6 2.2 Purpose 6 2.3 Scope 6 3. OVERVIEW OF THE REPAIR AND SERVICE INDUSTRY 9 4. REPAIR AND SERVICE ESTABLISHMENT CHARACTERISTICS 11 4.1 Replacement Costs of Each Establishment Type 11 4.1.1 Facility Costs 11 4. 1.1.1 New Car Dealership 11 4. 1.1. 2 Gasoline Service Station 14 4. 1.1. 3 Independent Repair Garage 14 4. 1.1. 4 Specialty Service Shops 14 4.1.2 Land Costs 14 4.1.3 Tools and Equipment Costs 15 4. 1.3.1 New Car Dealership 15 4. 1.3. 2 Gasoline Service Station 15 4. 1.3. 3 Independent Repair Garage 15 4.1. 3.4 Specialty Shop 17 4.1.4 Establishment Count 17 4. 1.4.1 New Car Dealership 17 4. 1.4. 2 Gasoline Service Station 17 4. 1.4. 3 Independent Repair Garage 17 4. 1.4. 4 Specialty Shop 18 V CONTENTS (continued) Section p ^ 4.2 Service Establishment Investment Costs by Facility Type 18 4.2.1 Inventory 18 4. 2. 1.1 New Car Dealership 20 4. 2. 1.2 Gasoline Service Station 20 4. 2. 1.3 Independent Repair Garage 20 4. 2. 1.4 Specialty Shops 20 4.2.2 Operating Capital 20 4.3 Total Service Establishment Costs 22 4.4 Other Considerations 22 4.5 Summary 24 5. REPAIR AND SERVICE INDUSTRY PRICING POLIGIES 25 5.1 Introduction 25 5.2 Methodology 25 5.2.1 Parts Selection 25 5. 2. 1.1 Proprietary Parts 25 5. 2. 1.2 Non-Proprietary Parts 26 5.2.2 Vehicle Selection 28 5.3 Results and Analysis 28 5.3.1 Parts 28 5. 3. 1.1 List Prices 28 5. 3. 1.2 Parts Discount 33 5. 3. 1.3 Stocking and Redistribution Allowances 42 5. 3.1.4 Overall Effect of Allowances 51 5.3.2 Labor 52 5.3.3 Specialty Shops 54 6. VEHIGLE MAINTENANGE 57 6.1 Introduction 57 VI CONTENTS (continued) Section Page 6.2 Scheduled Maintenance 57 6.2.1 Methodology 57 6.2. 1.1 Maintenance Items 57 6 . 2. 1.2 Parts Cost by Source 59 6 . 2. 1.3 Labor Hours 50 6 . 2. 1.4 Labor Rates by Facility 61 6.2.2 Summary 55 6.3 Unscheduled Maintenance 07 6.3.1 Methodology O 7 6 . 3. 1.1 Component Replacement: Frequency and Probability gq 6 . 3. 1.2 Cost Component 7 g 6 . 3. 1.3 Labor Hours gO 6 . 3. 1.4 Labor Rates by Establishment Type g 2^ 6 . 3. 1.5 Summary g^ 6.3.2 Unscheduled Maintenance by Make and Specific Model gj 7. ESTABLISHMENTS NORMALLY PERFORMING MAINTENANCE 82 7.1 Introduction g 2 7.2 Where Maintenance is Performed g 4 7.2.1 By Type of Car g 4 7. 2. 1.1 Luxury Cars and Imported Cars 84 7. 2. 1.2 Domestic Standard, Intermediate and Compact Cars 84 7.2.2 By Year 84 7.3 Analysis of Aftermarket Sales by Service Facilities 89 7.3.1 Based on Dollars Spent 89 7.3.2 Based on Number of Purchases 90 7.4 Future Considerations for Maintenance Facilities 9 q vii CONTENTS (continued) Page Section 7.4.1 Sophisticated Equipment 90 7.4.2 Periodic Motor Vehicle Inspection (PMVI) 90 7.4.3 "Gas Only" Service Stations 93 7.4.4 Do-It-Yourself Market 93 References 94 Appendices Appendix A - Report of Inventions Appendix B - Unscheduled Maintenance Sources Appendix C - List of Cars Appendix D - Tools and Equipment Appendix E - Scheduled Maintenance Data - Volume II Appendix F - Unscheduled Maintenance Data - Volume III Vlll LIST OF FIGURES Figures Page 5.1 Normal Aftermarket Parts Costs To Various Service Establishments Expressed As % Of List Price 43 5.2 Specialty Shop Service Charge Breakdown Two Methods Of Analysis 56 6.1 Recommended Labor Time Related To Safety And Emissions Operations 65 7.1 Total Market For TBA Parts And Service 83 7.2 States with PMVI Programs 92 IX LIST OF TABLES Table Page 4.1 Replacement Costs Of Service Establishments 12 4.2 Specialty Shop Replacement Costs 13 4.3 Tools And Equipment Cost Summary By Establishment Type 16 4.4 Total Investment Costs Of Service Facilities 19 4.5 Specialty Shop Investment Costs 21 4.6 Operating Capital Requirements 23 5.1 List Prices - Dealer vs.
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