Evergreen Ford Lincoln

Integrated KPI Review & 90-Day Operating Plan

PREPARED BY: BABAK MOHAMMADI FOCUS: CLARITY + EXECUTION

📈 Executive Summary: Strong Base, Uneven Execution

This is not an effort problem. It is an execution gap inside a business with real strength. New Vehicles, Service, Parts, and F&I are carrying the load, but too much of that performance is getting offset by Used and Body Shop results.

We also have clear market opportunity on the Ford side that we are not capturing consistently. The demand is there. Our job over the next 90 days is to tighten structure, clarify standards, and execute the same way every day so more of the available gross stays here.

Operating Approach

My approach is simple: train the team on clear process, define what good execution looks like, and inspect it daily with the right tools. When expectations are clear and routines are consistent, results stabilize. We will focus on a few critical operating disciplines, coach to them every day, and hold the line until the gains show up in the numbers.

YTD Selling Gross

$1.288M

Strong earning base to build from.

YTD Fixed Expense

$1.791M

Sets the bar we have to cover consistently.

March Selling Gross (Used)

-$45.5K

Most immediate performance recovery target.

YTD Structural Reality: Gross vs. Expense

1. Strengths (What’s Working)

We need to protect what is already working. New vehicle gross quality is up (+$291K YTD selling gross). Trucks and Lincoln SUVs remain margin engines. Service is productive, and F&I performance is steady.

Core Margin Engines (GPV)

These lines are strong profit producers. We need to validate where F-150 margin position is helping us and where it may be costing us local share.

Service RO Mix (YTD)

Balanced mix supporting 5,400+ main-shop ROs and $1.58M in core sales.

🔧 Service Performance: Customer Pay as the Core Driver

Customer Pay recorded 782 repair orders and $234,742 in sales in March. Year to date, Customer Pay recorded 2,176 repair orders and $665,700 in sales. Gross profit was $159,058 in March and $457,570 year to date, with gross profit percentages of 67.8% in March and 68.7% year to date.

March CP ROs

782

Sales: $234,742

YTD CP ROs

2,176

Sales: $665,700

March CP Gross %

67.8%

Gross: $159,058

YTD CP Gross %

68.7%

Gross: $457,570

March Sales by Pay Type

Customer Pay: 782 ROs / $234,742 • Warranty: 612 ROs / $173,280 • Internal: 508 ROs / $117,826

YTD Sales by Pay Type

Customer Pay: 2,176 ROs / $665,700 • Warranty: 1,577 ROs / $546,641 • Internal: 1,654 ROs / $376,333

YTD Sales by Pay Type

Customer Pay: 2,176 ROs / $665,700 • Warranty: 1,577 ROs / $546,641 • Internal: 1,654 ROs / $376,333

Labor per repair order for Customer Pay was $300 in March and $306 year to date. Using the Customer Pay labor rate of $225, estimated labor hours per repair order were 1.33 in March and 1.36 year to date.

For March, Customer Pay recorded 782 repair orders and $234,742 in sales, compared with Warranty at 612 repair orders and $173,280 in sales, and Internal at 508 repair orders and $117,826 in sales.

Year to date, Customer Pay recorded 2,176 repair orders and $665,700 in sales, compared with Warranty at 1,577 repair orders and $546,641 in sales, and Internal at 1,654 repair orders and $376,333 in sales.

🔧 Service Performance: Customer Pay as the Core Driver

Customer Pay recorded 782 repair orders and $234,742 in sales in March. Year to date, Customer Pay recorded 2,176 repair orders and $665,700 in sales. Gross profit was $159,058 in March and $457,570 year to date, with gross profit percentages of 67.8% in March and 68.7% year to date.

Labor per repair order for Customer Pay was $300 in March and $306 year to date. Using the Customer Pay labor rate of $225, estimated labor hours per repair order were 1.33 in March and 1.36 year to date.

For March, Customer Pay recorded 782 repair orders and $234,742 in sales, compared with Warranty at 612 repair orders and $173,280 in sales, and Internal at 508 repair orders and $117,826 in sales.

Year to date, Customer Pay recorded 2,176 repair orders and $665,700 in sales, compared with Warranty at 1,577 repair orders and $546,641 in sales, and Internal at 1,654 repair orders and $376,333 in sales.

Labor per repair order for Customer Pay was $300 in March and $306 year to date. Using the Customer Pay labor rate of $225, estimated labor hours per repair order were 1.33 in March and 1.36 year to date.

For March, Customer Pay recorded 782 repair orders and $234,742 in sales, compared with Warranty at 612 repair orders and $173,280 in sales, and Internal at 508 repair orders and $117,826 in sales.

Year to date, Customer Pay recorded 2,176 repair orders and $665,700 in sales, compared with Warranty at 1,577 repair orders and $546,641 in sales, and Internal at 1,654 repair orders and $376,333 in sales.

HR Table: Estimated Labor Hours per RO

Pay Type March Estimated Hours/RO YTD Estimated Hours/RO
Customer Pay 1.33 1.36
Warranty 1.39 1.71
Internal 1.07 1.05

🚩 2. Opportunities (Where We Close the Gap)

These are the fastest paths to improved performance. If we stabilize Used front-end economics and tighten showroom execution, we will capture gross that is already available in our market.

Used PUVR Recovery Target

Volume is steady (162 YTD), but gross % dropped to 4.34%. PUVR recovery is the direct path to reversing the -$45.5K MTD used gross loss.

Ford Locality Containment

We captured 36.9% of our market. Reclaiming even part of the 246 units won by local competitors will move the store quickly.

Core Segment Volume Opportunities

Explorer (50.0%) and Ranger (53.1%) are clear execution opportunities for immediate volume lift.

Body Shop Rebuild

Selling gross dipped to $11K YTD.

233

YTD Body Shop ROs

We need to rebuild body-shop volume to support current overhead and restore fixed-ops contribution.

3. Risks (What We Must Control)

These are the operating risks that can erode margin if we do not manage them with discipline.

🔍 Used Mix Optimization

CPO is currently at 0%. Restarting CPO and reducing wholesale dependence is key to rebuilding front-end gross quality.

🚗 Body Shop Sourcing

We need to confirm whether traffic decline is external (lost DRP/referral) or internal (cycle time/process delays), then correct fast.

💸 Variable Cost Management

New gross quality improved, but advertising ($160K) and floorplan ($257K) must be tightened so more profit reaches the bottom line.

Service Capacity Management

Warranty is running heavier hours per RO. Dispatch discipline has to protect Customer Pay access and advisor throughput.

🚀 4. The 90-Day Operating Plan

Immediate actions, owners, and required data for the next management review.

PRIORITY 1

Used Dept Reset

Target: Used Mgr / GM

Actions:
  • Run a weekly aging and pricing walk with GM sign-off.
  • Relaunch CPO with clear unit targets and daily tracking.
  • Review front-end gross by source, age, and recon position.
  • Pull spend that is not converting to quality retail gross.

📁 Data Req for Next Review:

Aging buckets (0-30/31-60/61+), Avg recon cost/cycle time, Source mix (trade/auction/street).

PRIORITY 2

Body Shop Recovery

Target: Body Mgr / Fixed Ops

Actions:
  • Map every active work source and recent volume trend.
  • Identify exactly where referral and insurance volume dropped.
  • Audit labor per stall, cycle time, and job mix weekly.
  • Hold discretionary spend until throughput normalizes.

📁 Data Req for Next Review:

DRP status, insurance referral breakdown, Keys-to-keys cycle time, Estimate-to-close conversion.

PRIORITY 3

Locality & Showroom

Target: New Dir / GSM / GM

Actions:
  • Test margin position by model to protect gross without losing local deals.
  • Run a weekly leakage review against Sound, AutoNation, and Kirkland.
  • Set model-specific plans for Explorer, Bronco, Ranger, and F-350.

📁 Data Req for Next Review:

CRM response time, Appt set/show rate, Trade-in close ratio, Lost-sale reason by competitor.

PRIORITY 4

Defend Service

Target: Fixed Ops Dir / GM

Actions:
  • Track dispatch mix by day to protect CP access.
  • Coach advisor workflow to hold speed and close rate.
  • Tighten retention and UIO follow-up cadence.

📁 Data Req for Next Review:

ELR by pay type, Dispatch mix by stall/tech, Capacity utilization by day, Advisor close ratio.

🎯 Management Scorecard (30-Day Cycle)

Area Current State 90-Day Target Direction
Used PUVR $641 $900+
Used Selling Gross -$45,546 MTD Break-even or positive
CPO Mix 0% 8% – 10%
Ford Locality Containment 36.9% 40%+
Body Shop Selling Gross $11K YTD Positive monthly recovery
Service Absorption 71.9% 75%+ near term
Service CP Mix 40.2% YTD 🛡 Protect / improve
Core Sales Effectiveness Expl 50%, Rngr 53.1%, Brnc 73.5%, F350 74.5% Improve monthly

Bottom line: the opportunity is already in this business. If we run clear process, coach the standards daily, and hold teams accountable to execution, we will stabilize performance and convert more of our current opportunity into consistent monthly results.