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 requires at least 5 years of automotive service and/or parts experience, and 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.