Evergreen Ford Lincoln

Integrated KPI Review & 6-Month Operating Plan

PREPARED BY: BABAK MOHAMMADI FOCUS: CLARITY + EXECUTION

📈 Executive Summary: A Structural Imbalance

What stands out to me is not a lack of effort or capability. It is a structural imbalance in the operation. There are areas of the business that are producing and contributing—New Vehicles, Service, Parts, and F&I—but too much of that gain is being absorbed by underperformance in Used Vehicles and the Body Shop.

The same pattern shows up on the sales side. The Ford market opportunity is there. Demand exists. The issue is that the dealership is not capturing that opportunity as effectively as it should, and that leaves meaningful gross on the table. To me, that points back to structure, clarity, and execution—not potential.

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.

Process

Clear Standards

Execution

Daily Discipline

Results

Stable Margin

Continuous Alignment

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 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 Core

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 percentages of 67.8% (March) and 68.7% (YTD).

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

Service Mix vs. Capacity Consumption

March and YTD view of pay-type sales mix versus estimated total shop hours consumed.

Sales by Pay Type (March vs YTD)

Est. Hours Consumed by Pay Type

YTD Sales by Pay Type

Sales Mix vs. Capacity Break

Customer Pay YTD: 2,176 ROs / $665,700

Warranty YTD: 1,577 ROs / $546,641

Internal YTD: 1,654 ROs / $376,333

⚠ Key Insight:

Labor per repair order for Customer Pay was $306 YTD. Using the CP labor rate of $225, estimated labor hours per RO were 1.36 YTD, compared to Warranty at 1.71. Sales mix and capacity mix are not the same.

🚩 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 strict daily 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 6-Month Operating Plan

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

PRIORITY 1

Used Dept Reset

🎯 Target: Used Mgr / GM

  • 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

  • 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

  • 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

  • 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 (6-Month Stretch Targets)

Area of Focus Current State 6-Month Stretch Target
Used PUVR $641 $1,750
Used Selling Gross -$45,546 MTD $175K–$225K MTD
CPO Mix 0% 50%
Ford Locality Containment 36.9% 50%+
Body Shop Selling Gross $11K YTD $55K MTD
Service Absorption 71.9% 95%
Service CP Mix 40.2% YTD 48%–50%
Core Sales Effectiveness Expl 50.0%, Rngr 53.1%, Brnc 73.5%, F350 74.5% Explorer 90%+, Ranger 90%+, Bronco 95%+, F-350 90%+

The opportunity in this business is meaningful, but these targets assume a much tighter operating model: stronger used-car economics, a true CPO restart, materially better home-market containment, a restored body-shop contribution, and a fixed-ops mix led more heavily by customer pay. If we create clarity around the standards, coach the process daily, and execute with consistency, these targets become stretch but reachable.