Invest in EVs now “to make a lot of money” says LKQ Euro Car Parts boss

Garages that invest in EV equipment and upskill staff now “will have the opportunity to make a lot of money”, the boss of LKQ Euro Car Parts has told CAT.

“If I was a garage owner right now I’d be thinking about trying to move out of the older competitive ICE world where people are quoting £10 difference on a repair into something where you’re competing with a dealer who’s charging much more,” said Kevan Wooden.

“There’s this whole opportunity where if someone comes in and has been quoted four or five grand from a dealer, you can create a repair for a grand. You could probably have a great price point for an independent garage. And make a lot more money than you do on today’s ICE cars.”

Those daring the move will need to pivot their businesses. Whereas today some garages are able to work on as much as 50 different brands, those wanting to move into electric will need to focus “on about two or three”.

This is down to kit being expensive, especially the “right” kit, said Wooden. “This is the main barrier”.

This shouldn’t be viewed negatively, however, as although garages will be doing less volume, “what volume they do they’ll be getting a great price point for it”.

He added: “I think those who want to invest in EV and get that equipment on board and learn on it will have the opportunity to make a lot of money.”

One of the key areas where independents can really capitalise on is batteries, he said, with dealers quoting as much as £20,000 to replace packs “that just need to be opened safely to replace a module to give it considerably more life”.

“Safely” is the key word there, said Wooden, as proper training will be just as important as the correct tooling due to electric vehicles bringing new dangers and safety issues.

“Training is key”, he said. “It is all going to be about skills in the future”.

This is an area LKQ has already invested heavily in: its LKQ Academy provides a good income stream for the firm.

But Wooden said EV upskilling goes beyond just making some cash for the firm and instead “secures the future” of the industry.

“We are all working towards the same goal; everybody’s got to win in this,” he said, adding “we are here to help”.

Regardless, those not looking to make the jump yet won’t be left behind. “This is a huge change, but the pace is slow so garages don’t have to panic,” he said.