[clari.biz.economy] GM to enter quick oil change business

clarinews@clarinet.com (JAN A. ZVERINA, UPI Auto Writer) (02/03/90)

	DETROIT (UPI) -- General Motors Corp. said Friday it will enter the
quick oil change business starting in March, following rival carmaker
Ford Motor Co. by about a year.
	About 7,400 of GM's approximately 9,700 U.S. dealers authorized as
``Mr. Goodwrench'' repair centers will be offered the opportunity to
open the service, called Quick Lube Plus.
	At least 1,000 GM dealers are expected to sign up initially for the
program by the time the giant carmaker begins advertising April 2,
company spokesman Robert Tripolsky said.
	Ford opened its quick oil change centers at many of its dealerships
in April 1989, with service guaranteed in 15 minutes or less.
	GM is guaranteeing its facilities complete service from the time of
writeup in 29 minutes or less, or else the next oil change is free.
	When Ford entered the business last year, it estimated there would
be more than 6,000 such outlets by 1992, up from 3,000 in the mid-1980s
as oil companies like Valvoline and Pennzoil entered the business.
	More importantly, GM and Ford view the service as a way to maintain
ties between the customer and the dealership beyond the warranty period,
and to boost owner loyalty that has declined in recent years because of
increased competition.
	``There is a huge customer base of GM vehicles on the road,''
Tripolsky said. ``Second and third owners may never take their vehicles
back to a dealer. We've got to get that relationship back.''
	GM's dealer investment for a quick oil change service will vary
according to the facility.
	``It will be totally up to the needs of dealership,'' Tripolsky
said. ``While some may opt for just the signage and business forms,
others may want to update their equipment.''
	GM's decision to enter the quick lube business comes after a
six-month pilot program that began last April at about 100 GM
dealerships in selected markets.
	Prices were found to average $21.50 for an oil and filter change,
chassis lube and fluid check.
	That compares with an industry average of about 50 cents more, GM
said.