Nathan Shaver Explains Why Fixed Ops Is Driving Dealer Growth

As dealers navigate affordability challenges, evolving compliance expectations, and increased global competition, fixed operations have become more important than ever. In this episode, Nathan Shaver, Managing Partner at Shaver Automotive Group, shares how his dealership is adapting to changing market conditions while remaining optimistic about the future of Stellantis brands.

Shaver discusses why service departments have become a key driver of profitability and customer retention, how pricing transparency is reshaping dealership operations, and why he believes Chinese automakers represent the industry's next major competitive challenge. He also explains how dealers can strengthen long-term customer relationships by focusing on the entire ownership journey rather than individual transactions.

Key discussion points:

• Why fixed operations and service retention are becoming critical profit drivers
• How the service lane can help dealers source used vehicle inventory
• The growing importance of pricing transparency and FTC compliance
• Lessons the auto industry can learn from past pricing practices
• Why Chinese automakers are the competitive threat Shaver is watching most closely
• How Stellantis brands are positioning themselves for long-term success

Shaver offers practical insights on balancing compliance, customer retention, and future growth while preparing for an increasingly competitive automotive landscape.

Inside Automotive with Jim Fitzpatrick is powered by CBT News, your go-to source for the latest news, trends, and insights in retail automotive. Subscribe for more interviews with top industry leaders, dealership innovators, and experts shaping the future of automotive.

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Transcript

Welcome And A Five-Generation Start

Jim Fitzpatrick 0:06

Welcome to Inside Automotive with Jim Fitzpatrick. Dealers are juggling a lot right now. Customers are keeping their vehicles longer. Fixed stops is becoming more important than ever. And Stellantis retailers are navigating a changing landscape. Joining us now is Nathan Schaefer, who is the managing partner at Shaver Automotive Group and fifth generation dealer. Five generations. Wow. So thank you so much, uh Nathan, for joining us on the show today.

Nathan Shaver 0:33

Pleasure to be here. Thanks for the opportunity.

Jim Fitzpatrick 0:35

I might also add that you're probably your greatest accomplishment, the one you're most proud of, is that you were awarded the uh 40 under 40, CBT News is 40 under 40. But uh so congratulations again on that. I know you've got a lot of other accomplishments to be proud of, but I thought that was worth mentioning. So thank you for joining us on the show. So there's a lot to uh to talk to you about. First, first and foremost, let's let's touch a little bit on this uh fifth generation. Um, the idea that you're five generations in in retail automotive. Uh talk to us a little bit about that.

Nathan Shaver 1:06

Sure. You know, I think it's one of the really special dynamic parts of our industry, right? Not every industry uh has this uh family legacy component of it. And it's something that's always been special to me. You know, Sundays we're uh grabbing donuts, going to church, and going to the dealership. You know, so before I had a driver's license, I was always immersed in automotive retail culture. And before I knew what selling a car meant or what, you know, the uh all the things we do every day really uh entailed, it was just wanting to kind of be like other members of my family. So family legacy, that's always been a really special part of the car business for me.

Jim Fitzpatrick 1:45

Yeah, that's pretty cool. Very, very cool. And um, you were part of the bigger group, right? Um, and uh talk to us about that. And then you broke off uh to open up your own uh Stellana store, right?

Nathan Shaver 1:57

Sure, yeah, yeah. The Nori Shaver group is uh the most prominent uh in the you know the Shaver network of dealers. Uh that my dad is a partner of that group, taught me everything that I know. I spent 15 years in that organization uh uh eclipsed with a general manager role at one of their Chrysler Jeep Dodge Ram franchises. Okay. And uh just how fate had it, this opportunity came up. And, you know, with their mentorship and and feedback, we reviewed the options on the table at that time. This was a great opportunity for me. So, you know, I jumped in the deep end and it's been a really fun uh chapter in my career, and uh uh have no regrets.

Jim Fitzpatrick 2:34

Yeah. So talk to us about Stellantis. Uh that's been a concern for the last few years uh for the dealers that we uh speak with here at CBT News and the industry as a whole. I mean, it uh it's really been under the microscope. There's been a lot of um dealers out there that have actually said, hey, that now's a good time to to maybe release our franchise and sell it to somebody else. And uh, but but you uh were pretty bullish on it and took it on.

Going All In On Stellantis

Jim Fitzpatrick 3:00

So how do you feel about the the franchise today?

Nathan Shaver 3:03

I've been with Stillantons uh since the day I got my sales license. So, you know, I'm I'm a little biased. But I think Jeep and Ram in particular are really special, unique brands with uh a lot of staying power. Yes, we've had some headwinds, but I think in 2026, especially, some some decisions in 25, they're making all the right moves. So I I'm bullish.

Jim Fitzpatrick 3:26

Yeah, yeah. As we sit here today, uh it's just been announced that there's been an incredible recall, a pretty large recall on the Jeep product. Um, where does that stand and what's your take on that?

Nathan Shaver 3:37

Recalls are bittersweet. They can be challenging to navigate. Customers aren't fans, obviously, you know, so it can have some negative impact short term on brand new reputation and customer satisfaction, but it's also an opportunity to step up for customers when they need you. So, you know, as customers slip through the cracks, and you know, as an industry, we're so focused on retention. I I think recalls are a great way to play offense and um to reconnect with your customer base.

Jim Fitzpatrick 4:06

Sure, sure. This is one more reason, too, that uh the franchise network proves itself and and proves that it works to take care of consumers um when needed and where it's needed in a situation like this when there is a major recall. Um I'm not so sure that if the company was owned by the manufacturer, the OEM, um to handle this, that it would be done the same way, right? This is just one more reason that the franchise network works.

Nathan Shaver 4:33

Well said. And nothing to add. I agree.

Jim Fitzpatrick 4:36

Yeah, yeah, for sure. So let's talk a little bit about the uh changing consumer expectations out there. Um, you know, affordability still is a major issue out there. And uh uh, however, that said, dealers are pivoting, they're doing what they can to deliver cars, also to take care of cars that are still on the road. It's an aging uh automotive group out there. Now we're talking about uh in north of 12 years at the average length of vehicles on the road. Um, so there's a lot happening in that area. But talk to us about the consumers that you're dealing with today and what their expectations are of

Recalls, Franchise Strength, Customer Trust

Jim Fitzpatrick 5:10

the dealers that they're working with and the industry as a whole.

Nathan Shaver 5:14

We got to roll at the punches. So there's definitely some headwinds in uh the sales department and dealerships, but uh, you know, that's why we can pivot to the other departments. I actually spent 15 years, the first 15 years of my career in variable ops, and this uh recent uh passion for fixed ops is relatively new. That's where I think the business is. So, you know, as uh, you know, uh your audience is aware, the cost of vehicles is going up, the cost of monthly payments is going up, negative equity is a challenge, um, getting loans approved is a challenge, and people are keeping their cars longer. Right. So yeah, you know, buying a vehicle is a uh more important decision for customers.

Jim Fitzpatrick 5:57

For sure, for sure. And of course, dealers are still dealing are challenged with the retention. Uh many people, uh 60 or 70 percent, leave the dealership and go to independence to have their vehicles serviced. Is there anything that you're doing about that at your store to try to bring that customer either back or keep them long term?

Nathan Shaver 6:17

Yes, this is something we're thinking about a lot internally and something I'm really focused on. Um, trying to instead of whatever touch point with the customer being the central point and really being transactional, I think we need to evolve to being there for our customers throughout the lifecycle of the product from sales to post-purchase through the uh the warranty period ending. And then hopefully, if they had a good experience when they trade that car back into us or buy their next vehicle. Uh, as an industry, I think we're really just focused on this moment to sell this car right now or this service visit right

Affordability Headwinds And The Fixed Ops Pivot

Nathan Shaver 6:55

now. Right. But what our customers are really craving is a dealer partner that provides automotive services for them whenever they need it, whatever it happens to be in that moment. That's the direction we're trying to move at my store.

Jim Fitzpatrick 7:09

Yeah, that's great. Having said that, uh uh, are you um uh a a dealership that provides mobile service to the customers?

Nathan Shaver 7:18

Uh it's something we're experimenting with, uh something that I believe in. Okay, but the consumer side has its challenges. We haven't quite figured it out yet. We're we've had some success recently with fleet mobile repairs, and we are trying to provide mobile services to customers like recalls and maintenance.

Jim Fitzpatrick 7:36

Right.

Nathan Shaver 7:37

But um I think the business models, we're still trying to figure it out.

Jim Fitzpatrick 7:43

Okay. Okay, good. The um the the many dealers have told me that their service drive has turned into the service slash acquisition drive. Many used cars now are being acquired through the service lane. Uh you're I see you shaking your head on that. Talk talk to us about that.

Nathan Shaver 8:00

If you're not putting a value on every car that comes through your service drive, you're missing an opportunity. You know, it's it's an it's uh a great channel for us, but you know, just in general for dealers to pick up another 10 vehicles that it perform like trades or like street purchases. And they're they're all OEM vehicles, so that it's usually a nice mix of cars.

Jim Fitzpatrick 8:23

Yeah, yeah, no question about it. And uh and it really is amazing how many uh vehicles dealers are able to acquire from the server drive simply by offering that appraisal, right?

Nathan Shaver 8:34

Customers love it, doesn't cost money to acquire those leads. Yeah, and uh, you know, it's an effective way to buy some cars.

Jim Fitzpatrick 8:42

Yeah. A number of stores that I've spoke that I spoke to during COVID said they turned their sales department into a buying department uh so that they were they would say to their, you know, their teams, look, if you can go out, work the customers that we have in our database, reach out to them if we can buy their car, then we'll give you a spiff or a commission on doing that, as well as selling vehicles too. Um have did you do that? And and and and if you did, did that continue?

Nathan Shaver 9:08

I've I've tried every type of configuration you can imagine. We've had a devoted buying center. Right now, uh our sales team can buy and sell vehicles, and it's it's working

Mobile Service Experiments And Retention Mindset

Nathan Shaver 9:20

pretty well for us.

Jim Fitzpatrick 9:21

Yeah, that's pretty good. That's pretty good. Now, the FTC recently sent out 97 letters. It made a huge splash in the auto industry, and uh it's gotten many dealers very, very concerned about the pricing, the transparency that they're offering to consumers in their marketing of their vehicles. Um, where do you where do you stand on that?

Nathan Shaver 9:42

California's compliance landscape um is usually a national leader, right? So we they they've had a pretty high bar historically. So I think we did a good job before the warning letters. We're actively reviewing them, talking about them internally, and watching what the industry does. I think in general, we're all still kind of trying to react and step up. It's it represents it's it's it's a signal to me that um standardization or simplification is what consumers want.

Jim Fitzpatrick 10:15

Yeah.

Nathan Shaver 10:16

And that that that's I think in general, I think it'll be a good thing.

Jim Fitzpatrick 10:19

Yeah, and and uh there's a number of dealers that I've spoken to that share your sentiment on that, to feel as though this is what the industry has needed. It needed somebody to step in and say, okay, everybody's got to be reading off the same sheet of music on this on this pricing issue to take better care of consumers, because I think into large degree, and I've said this before on the show, that we kind of did it to ourselves in this industry. The games that we have played over the years in pricing, that the fact that you know you'll advertise one price and yet it needs three different types of rebates that the customer probably doesn't qualify for, and it doesn't maybe include a dealer

Service Lane Appraisals That Source Used Cars

Jim Fitzpatrick 10:55

fee or a dock fee in there. And uh that gets consumers upset. I mean, really at the end of the day, this was a huge complaint uh situation for the FTC and many uh consumer uh groups around the country, uh especially the ones that are uh operated by the the different states, right?

Nathan Shaver 11:15

Um yes, definitely. I agree. I you know, I I I do believe in dealers' right to market and to price their cars the way that they want for their uh, you know, regional place of doing business. But at the same time, if a consumer can't simply explain the breakdown of what they're paying for, we as an industry could probably do a better job.

Jim Fitzpatrick 11:37

Yeah.

Nathan Shaver 11:37

And I think it depends on how you look at the transaction. Is this an opportunity to create a long-term relationship with the customer where you're providing the service to make it easy for them to make a large complicated purchase? Or are you just trying to, you know, the uh maximize the opportunity in front of you today?

Jim Fitzpatrick 11:55

Yeah, for sure. Did you have to do anything, or are you doing anything different today than in the past as it relates to making sure that the store is compliant

FTC Pricing Letters And Compliance Reality

Jim Fitzpatrick 12:05

and that all of your people understand the situation?

Nathan Shaver 12:08

Of course. Compliance is something we take seriously. You know, I have a third-party compliance company do a quarterly audit, and of course, this is a major topic recently. Uh, for the FTC pricing issue in particular, right now we are waiting, seeing what the major listing platforms are choosing to do, seeing what the major uh automotive groups are choosing to do. And we just want to be deliberate. I want to make sure that the processes that uh we choose to alter are the the right ones.

Jim Fitzpatrick 12:39

Right, right. Yeah, good call. Um, now you're calling, I mean, you're you run your operation in California. Everybody knows that uh your gas prices are not cheap out there. In fact, what what is it today? What's the average price of gas in California today?

Nathan Shaver 12:54

You know, I can't keep up with it. It's going up and down so quickly, but definitely a more common topic for uh the customers that come into our showroom recently. And you know, uh my state definitely has an affinity with uh EVs and the customers reviewing uh EVs and hybrids uh and all the powertrain options, definitely influenced by gas prices.

Jim Fitzpatrick 13:16

Yeah, no, no question about it. And uh I think your state uh obviously it it always leads the country in EV sales. I think you're probably at uh eight or nine or ten percent, maybe, is or even higher uh EV sales?

Nathan Shaver 13:30

Since the uh the Wrangler 4XE uh you know stopped being available, I've been paying less close attention. So to be uh 100% honest with you, I I don't know as of uh Q226.

Jim Fitzpatrick 13:42

Okay, okay, gotcha. Um what what uh from getting back to the Stallanis uh situation, what would you like to see Stallanis do over the course of the next year or so to to right the ship? Or or do you feel as though they're already on the path of doing so?

Nathan Shaver 13:59

I do believe in the decisions that have been made recently. You know, um I've had a lot of success over the years with the leadership team in place right now. So that trust and that faith has you know has already been built on things we've done uh uh many years uh ago. Um I think expanding market share is gonna require getting back into different segments, which they're doing. I think uh paying close attention to uh MSRP creep is another thing that they're making the right decisions on. And you know, simplifying uh rebates as well.

Jim Fitzpatrick 14:35

Yeah, yeah, for sure. Um what are what are the things that keep you up at night,

California Gas Prices, EV Interest, MSRP Creep

Jim Fitzpatrick 14:40

if any, about either your operation or the industry as a whole?

Nathan Shaver 14:45

China.

Jim Fitzpatrick 14:46

China, really. Okay, and and what do you mean by that? The China, the the threat of Chinese vehicles coming into the US?

Nathan Shaver 14:53

Yeah, yeah, and just seeing the impact they're having on our business globally. You know, I uh I'm not old enough to have navigated the business when um you know some of the Japanese players came into the US and made uh you know a large impact on our market. But just just to see what some of the large players in China are have been doing and achieving the last couple years, um, I do think it's a matter of time until we figure out um those brands' place in our market.

Jim Fitzpatrick 15:22

Yeah, yeah. Do you think that that the Chinese vehicles could be allowed in with certain guardrails um and to to you know when I was around, I was selling cars at Toyota and and started my career at Toyota in the early 80s when this was a very, very hot issue because the domestics felt that that point in time you let these Japanese vehicles in, they're better on gas, it's a quality vehicle, it seems as though consumers want them, they're less expensive than the domestic brands, and it was a real threat at that time. Of course, the Japanese is not the same as the Chinese because, as you know, the Chinese uh vehicles are being subsidized by the manufacturers. However, that being said, could you see a time that they're allowed in with the guardrails that say, look, let's put a tariff on them, let's make sure they're sold through a franchise system, maybe get

China’s EV Threat And The Long EV Timeline

Jim Fitzpatrick 16:10

a commitment out of the one of the manufacturers, maybe BYD to build a plant here and employ Americans, uh workers for that plant. Is is that do you see where that could come together, or are you just they shouldn't be in here?

Nathan Shaver 16:24

I could see it going either way, but I know that if that were to occur or the way that that evolves, it's gonna have a major impact on the future of our business here in in uh the States.

Jim Fitzpatrick 16:35

Yeah.

Nathan Shaver 16:36

It it does seem in the short term it could be very painful for some of the incumbents, uh, but we look historically at other manufacturers coming to the country and you know, look how it's gone.

Jim Fitzpatrick 16:48

Yeah, yeah.

Nathan Shaver 16:49

When when you say the look how it's gone, do you mean that they've taken market share or Yeah, they they they've uh they've they've come into the United States and done really well and found their place with the US uh consumer base?

Jim Fitzpatrick 17:03

Yeah, yeah. Now a number of them all have factories here, you know. Uh I think almost all of them, all the Japanese vehicles and and many of the Korean. Um do you see where that might be a big plus if the Chinese were to agree to an arrangement like that?

Nathan Shaver 17:17

Yes, definitely. Maybe we could take something out of the Chinese playbook where you know we can learn some of the things that they've been doing well recently uh about manufacturing electric vehicles, like when some of the more established OEMs went to China and they learned from that.

Jim Fitzpatrick 17:32

Yeah, yeah. Um I read on uh some reports recently that uh where I was surprised to learn that over the last 20 years, uh GM sold 50 million uh vehicles in China over the course of the last 20 years. So the relationship between the US and China in the area of automotive has been really a very rich one, hasn't it?

Nathan Shaver 17:56

Once upon a time. Yeah. But you know, how that story evolved was that it dropped slowly, incrementally over the years as they were able to get their footing in the business themselves. Yeah. And they've done a, you know, uh really impressive job building up a vertically integrated electric vehicle industry.

Jim Fitzpatrick 18:13

Yeah, there's no question about it. I think there'd be a lot more people driving electric vehicles if they could do a five-minute or six-minute charge as we're seeing now coming out of China. And if the you know the range was four uh north of four hundred miles on a charge, um would you agree with that? That if we had that kind of technology, people might be more prone to buying buying them.

Nathan Shaver 18:32

Definitely. Yeah, the the the future's EV. It's just gonna take longer than uh I think a lot of us uh originally thought.

Jim Fitzpatrick 18:39

Sure, sure. Will we see any uh acquisitions in the years to come uh from your

Growth Plans And Closing Thoughts

Jim Fitzpatrick 18:45

group?

Nathan Shaver 18:46

Maybe, hopefully. Yeah, you know, uh uh we're focused on uh uh uh building what we're working on right now. There's still a lot of opportunity to do things better on the ground, but um, if the right opportunity presented itself, you know, it's something we'd love to explore.

Jim Fitzpatrick 19:02

That's great. That's great. Nathan Shaver, who is the managing partner at Shaver Automotive Group, thank you so much for joining me on the show here at CBT News. I very much appreciate it. Love to do a follow-up with you because you're it seems like you're on the move.

Nathan Shaver 19:15

Thank you for the opportunity. It was a lot of fun to chat. Great, thanks. Until next time. Thanks. Thanks for watching Inside Automotive with Jim Fitzpatrick.