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Automotive Oil Change & Lubrication Services

Automotive Oil Change & Lubrication Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide motor oil changes and lubrication services for automobiles and light trucks. Major US companies include Havoline Xpress Lube (owned by Chevron), Jiffy Lube and Pennzoil 10 Minute Lube Center (both owned by Royal Dutch Shell), and Valvoline Instant Oil Change.

COMPETITIVE LANDSCAPE

Demand is driven by the amount of driving that consumers do and by new car sales. The profitability of individual companies depends on convenient location and good marketing. Large chains have an advantage in name recognition, but the operations of individual locations are similar. Small companies can compete successfully by owning favorable locations. The US industry is fragmented: the 50 biggest companies generate about 40% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are oil changes (about 70% of sales) and other preventive maintenance. Some locations provide repair services. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off fluid levels are usually done in 10 minutes or less.


Industry Overview
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

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