Parts & Service Director

Reports To: Dealer Principal / President / Chief Operating Officer
Department: Fixed Operations
Location: Multi-Store Automotive Group (3 Dealerships)

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.

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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.

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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.

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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

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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.