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Episode #1253: Today we’re digging into why fixed ops is carrying the dealership profit load, how dealer-focused AI just landed serious funding, and why Ford teaming up with Carhartt is about a lot more than merch.
- With new-car sales slowing, aging vehicles and a technician shortage are putting service departments squarely in the profit hot seat. Dealers are leaning into mobile service, tech, and creative staffing strategies to protect margins and make every service lane interaction count.
- Service departments drive 85–90% of revenue for many dealers
- Vehicle age hit 12.8 years in 2025, boosting service demand
- Mobile service is gaining traction despite $100K startup costs, while AI and video tools improve efficiency—but dealers must balance tech with personal service.
- “There is not a department in any dealership in America more important than the service department,” said Tom McCollum, chairman of the Audi National Dealer Council.
- As dealerships increasingly lean on conversational AI to handle customer communication at scale, book more appointments, and squeeze more revenue out of every lead, Mia Labs has raised a hefty Series A round.
- Mia Labs raised $20 million, bringing total capital raised to $29 million
- The platform now serves 350+ franchise dealerships and enabled more than $45 million in dealer revenue in 2025 alone.
- Mia’s AI has powered over 1 million customer conversations, booked 130,000+ sales and service appointments, and saved 1.5 million human-hours.
- The company has new product launches teased for NADA 2026, with CEO and co-founder Brian Hoang saying “We’re building the most sophisticated AI super employee in the automotive space,”
- Ford is teaming up with Carhartt in a multiyear partnership that blends brand, philanthropy, and workforce development. The goal: get more people into skilled trades, support technicians, and celebrate the work ethic that keeps dealerships, trucks, and communities moving.
- The partnership includes co-branded gear, uniforms for technician trainees, and a Carhartt edition 2027 Ford Super Duty with design cues inspired by real job-site textures.
- Ford, Carhartt, and partners are backing technician training through scholarships, tools, and support programs aimed at lowering barriers to skilled trades careers.
- “This is such a great match because we’re all committed to making sure workers have the best equipment and gear that they can get,” said Ford CEO Jim Farley.
- This episode of the Automotive State of the Union is brought to you by Amazon Autos: Meet customer
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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