🚗 Service is back (and dealers are feeling it)

Howdy Fam!

We’ve got a good deal of stuff to talk about today. But, ultimately, we’re always talking about the same thing: Dealers making meaningful connections to people.

We love people more than we love cars, and we love seeing dealers put the two together.

What good is a car without a driver?

So, below we’ve got some news, data, and invitations that will hopefully move your team a step closer to your next loyal customer relationship.

Keep Pushing Back,
- Chris with Paul, Kyle & Kristi

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Tesla’s February picture in Europe is uneven. Across 15 major European markets, Tesla registrations rose about 10% year over year, but the two-month total is basically flat versus last year, meaning the brand is not clearly growing yet. The UK was the biggest red flag: Tesla registrations fell 37% in February to 2,422 units (from 3,852 a year ago) even as the overall UK new-car market rose about 7% to roughly 90K units.

BYD’s early-2026 sales are cooling in its home market. February sales fell about 41% year over year, and January–February sales were down about 36%, with domestic demand especially weak while exports rose. Translation: BYD is still huge, but China’s EV fight is getting more competitive, and growth is harder to “coast” into.

Stellantis leadership is making quality a centerpiece of its turnaround, adding major headcount and putting more engineering and quality resources behind launches after recent reliability and software complaints hurt buyer confidence and dealer momentum.

A new reading from the Cox Automotive Dealer Sentiment Index shows service departments gaining momentum again, reinforcing what many dealers are already seeing day to day. In Q1 2026, fixed operations sentiment came in at 63, up from 61 in Q4. On Cox’s scale, any score above 50 indicates improving conditions.

The rebound is real, though still slightly below last year’s peak readings of 65 and 66 during mid-2025. Even so, the numbers confirm that service remains one of the most stable and profitable parts of the dealership business.

The forward outlook may be the most important signal. Cox reports the future opportunity score jumped to 69, a five-point increase from Q4. That jump reflects growing confidence that service demand will continue rising.

Part of that optimism is tied to the broader sales outlook. Cox continues to forecast about 16M new-vehicle sales in 2026, suggesting the market may remain steady rather than surge. When new-vehicle growth slows, dealerships naturally shift focus toward departments that produce consistent margin and repeat visits.

Service and parts become even more important because they strengthen customer relationships between vehicle purchases.

Automakers are also paying closer attention to service retention. According to Cox analyst Erin Keating, OEMs are increasingly asking dealers why more vehicles in operation are not returning to franchised service departments.

Independent repair shops continue capturing a large portion of maintenance and repair work. That means the opportunity for dealers is not only operational improvement but also stronger communication with customers about where and why to service their vehicles.

More on this with Paul and Kyle here.

Check out this article looking back at some used car strategies from ASOTU CON 2024. Spoiler: it holds up.

Fridays in March are an undercelebrated treat. It’s almost spring, it’s almost the weekend. After winter, “Almost” is close enough for a little celebration.