C6101 - Auto dealerships, heavy duty truck sales and service

Operational Details
Automotive dealerships sign agreements with manufacturers to exclusively sell their product, provide authorized factory parts, warranty service, auto body repairs, and assemble or install factory authorized accessories on their vehicles. The manufacturers ship their products to the dealership by rail, auto truck haulers, or flat bed trucks and they are off loaded at the dealership’s sales yard.

Vehicles are sold from a lot, or show room. Customers may also special order from the manufacturer, but the products must be sold through a retail dealership. Warranty servicing requires periodical check ups of the power train and other parts under warranty, plus prescribed oil changes and greasing. It is also common for dealerships to operate a lease division, which is similar to new vehicle sales. Some may sell recreational vehicles as a supportive activity to their overall operations.

Workers in this industry includes: sales personnel, receptionists and administrative staff, drivers to pick up and deliver customer’s vehicles, auto mechanics, autobody workers, parts personnel, car wash personnel etc. Dealerships have the ability to service and repair vehicles when it is off warranty and the customer must pay for the repairs personally. This service is seen as a marketing tool to encourage prospective customers to purchase newer models, yet recognizing it is important older models continue to function well so that the good name of the brand is protected.

Occasionally a customer may ask the dealership to install mud flaps, running lights, a head ache rack (a row of lights on top of the cab of a vehicle), detail tape etc. In addition, engines or parts of the power trains may be replaced under warranty.

Should a dealership default in any area of service, or if there are numerous complaints made to the manufacturers’ representative, the dealership may lose their franchise or dealership. Dealerships sell on behalf of the manufacturer and once a product is sold, and financing put in place, the dealership must send the manufacturer their share of the sale. Inventories are spot checked by the manufacturer and certain sales conditions put in place, whereby if a certain model sales exceeds expectations, a bonus is paid to the dealership.

Heavy duty truck sales includes highway haulers and tractor units that are used to haul heavy loads on and off the highway. They are recognized by having the ability to haul trailers of various types by being hooked up to a fifth wheel assembly attached to the truck frame.

The vast majority of heavy haul vehicles are sold by truck dealerships representing specialized truck manufacturers including Mack Trucks, Peterbuilt etc. Often the engines are Caterpillar or Cummins and have been built to work under heavy load conditions. The same dealership conditions apply, in that factory authorized parts can only be sold and/or used in repairs. Employers in this industry employ heavy duty and diesel mechanics who specialize in working on engines of heavy equipment and trucks.

SIC Codes
000000262 - Auto dealership
000000264 - Heavy duty truck sales and service