Six robots roll around inside four service departments at McGovern Automotive Group to help deliver parts, moving about 2 to 3 mph. (That’s about how fast a human walks, according to Google).
And, they’re proving their worth, according to Danny Negalha, corporate fixed ops director for the New England-based group.
Driving the news: The robots cost about $1,600 a month to rent, which Negalha pointed out is less expensive than adding another support person to run parts.
“And when you see the uptick in terms of revenue, it more than offsets the cost of the robot,” Negalha told Daily Dealer Live host Sam D’Arc.
The first robots were deployed about eight months ago at the highest-volume locations and/or the spots with the greatest distance from the parts counter to the tech bays.
One of the group’s bigger stores, for example, is 100,000-square feet with more than 40 service techs: the perfect environment for a rolling friend, such as Brembo, named after the brakes, to help out. (Because yes, they do name the robots, Negalha confirmed to CDG News).
By the numbers: Since deployment, Brembo and his pals have logged about 16,000 deliveries covering about 534 miles across that handful of stores. That’s roughly the distance from Boston to Richmond, Virginia.
With that, revenue per repair order is up about 3% to 4%. Negalha said the robots' efficiency is impressive and has another upside.
“It’s also taken a lot of miles off my technicians’ legs, which keeps them in the bays, which keeps them more productive,” Negalha said.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
Nuts and bolts: The robots aren’t all business. They also play music, with the style depending on the store, Negalha said. The range is everything from Ozzy Osbourne to Dua Lipa.
They’re aware, too: When a bay is occupied, they'll stop, back up, wait roughly 30 seconds, and reroute.
They also signal their presence to techs using flags, so nobody accidentally backs into them or similar.
Looking ahead: Robots aren't the only automation McGovern is rolling out. A fully robotic tire machine that mounts, balances, and performs brake inspections with the car staying on the lift has just cleared its pilot phase.
McGovern expects to launch it within the month, making it the third dealership in New England to deploy the technology.
Pilot results showed faster tire throughput per day and meaningfully reduced technician injury liability by eliminating the lift-to-tire-center transfer.
McGovern white-labeled its own tire brand and built a buy-three-get-one program for periods when OEM promotions aren't running, and got aggressive on pricing for high-mileage vehicles it wants to keep out of independent shops.
Customer-pay accounts are up 121% year over year, and the service lane is now actively feeding the used-car department with trade-ins.
“The recurring stream of customer pay when it comes to those—the brakes, the suspension, the alignments—those are retention components that we don't want the independents to take,” Negalha said.
The takeaway: McGovern is strategically using/experimenting with technology such as the robots and tire machine to help the human employees, not replace them. In fact, just four years since implementing a plan to attract and retain more service techs, the group now employs about 690 total.
A quick word from our partner
You already have demand in your market. The question is where it went.
Stream Companies’ Missed Opportunities Report shows exactly where customers bought from your competitors and where your dealership left sales on the table.
With market-level insights, you can identify gaps, refine your strategy, and capture revenue you’re already missing.
Stop guessing. Start seeing where you should be winning.
