Changes to Toyota shop certification may interest those who’d like to participate
I’d heard there’d been some changes to the Toyota Certified Collision Center program – changes that could be of interest not only to dealerships but also non-certified independent shops – so I wanted to get the details directly from the source. Toyota’s George Irving and Eric Mendoza were kind enough to spend an hour with me – virtually, of course – to help bring me up-to-speed on the program.
As the national manager of service and collision operations for Toyota Motor North America, George is clearly proud of the success and longevity of the company’s certified shop program, which is approaching its 25th anniversary.
“I’ve been in the auto industry since 1989, and there are not many programs that have lasted 24 years,” George told me. “That really shows that the dealers are getting value out of the program. We take great pride that it has grown and improved over the 24 years.”
Eric, manager of collision operations for the automaker, shared one key way the program has evolved this year, which could help more shops meet the eligibility requirements to become a Toyota Certified Collision Center.
“We’ve lowered the legal entity ownership requirement for the program,” Eric explained. “Previously, a collision center had to be at least 51 percent owned by the Toyota dealer legal entity. We officially lowered that to down to 15 percent. We want to broaden the net for dealers who are invested in collision businesses.”
That means a fully independent body shop still isn’t eligible for Toyota certification. But it does open the door to a shop that may be largely owned by someone else – such as a relative of the dealer or even just an existing shop owner – as long as a dealer has at least a stake in the business.
“The key there is that the dealer is invested in the collision center business,” Eric said. “They have ownership of the entire customer experience, from when customer buys the vehicle from the dealer, to when they return for service and maintenance, and that we don’t lose them when the customer gets into an accident. Whether that accident results in a repair, or results in a total loss, a dealer with an investment in, and understanding of, the collision business, can make sure the collision center delivers a good repair experience on the brand’s behalf, or brings that customer back to the dealership for their purchase of a Toyota replacement vehicle.”
So could a dealership gain 15 percent ownership in an offsite shop – maybe one in a different city – and have that shop earn the certification? George told me there are no specific mileage limits as to how close the shop needs to the dealerships.
“However, to be in our program, it must be in the ‘primary marketing area’ of the dealership,” he said. “A dealer in Texas cannot certify their cousin’s shop that they have invested in out in California.”
George showed me the new logo, website and signage the program has rolled out this past year, which led me to ask: Does an independent shop with dealer investment need to use the dealerships’ name in order to be certified and use the program’s signage? Not necessarily, George said.
“But if you’re going to use the Toyota brand on the outside of the building, it needs to comply with Toyota standards, and you can’t dual brand with another business,” he said.
Is there a limit on the number of shops Toyota will certify under the program?
“At this stage, we don’t need to limit the number,” George said. “Where the accidents occur is where we need the shops, and the good news is that’s kind of where we have dealerships. We’d like to have full nationwide coverage, and we’re pretty close.”
I’ll share more in my next column about what Eric and George told me about the program, along with what impact, if any, the pandemic has had on Toyota training and its replacement parts supply chain.