If you’re looking for a clear signal about where the most resilient dealership profitability comes from in 2026, listen to Rick Hendrick’s recent one-on-one interview on Presidio’s Full Throttle podcast. In Episode 69, Chairman and CEO of Hendrick Automotive Group and owner of Hendrick Motorsports, Rick underscores a critical theme that echoes across the industry: the growing importance of fixed operations and service profitability.
That’s not a new concept, but in today’s market—where front-end gross is under pressure and consumer affordability is strained—Hendrick’s emphasis on Fixed Ops is a powerful reminder of what truly stabilizes a store’s P&L over the long term.
From One Dealership to One of the Largest Retail Organizations in North America
Hendrick Automotive Group didn’t become one of the largest automotive retail organizations in North America by accident. It started with a single Chevrolet dealership and grew through disciplined leadership, a people-first culture, and an unwavering focus on accountability.
In the interview, Hendrick reflects on how people, culture, and accountability have remained at the center of long-term success. Those pillars aren’t just aspirational; they’re operational. And when you layer in a strong, well-run Fixed Ops department, they become the foundation for a store that can weather economic downturns, industry disruption, and even global events like the pandemic.
Leadership Lessons Through Downturns, Disruption, and COVID
Hendrick’s leadership has been tested repeatedly: through economic downturns, rapid industry shifts, and the unprecedented challenges of COVID. What kept Hendrick Automotive Group resilient wasn’t just navigation—it was preparation.
Part of that preparation is Fixed Ops. Service and fixed operations drive Absorption performance. When new-vehicle gross is tight, service revenue, parts, and maintenance work keep the store profitable. They drive higher Absorption ratios, which in turn increase the store’s Blue-Sky value. That’s the kind of stability which makes a franchised dealership attractive to buyers and keeps the business competitive even when the front end is struggling.
The Growing Importance of Fixed Operations and Service Profitability
This is the core takeaway from Hendrick’s episode: Fixed Ops is not a side department; it’s a primary profit center.
In a market where gross profit per new vehicle has fallen and consumer demand is shifting, service profitability becomes the anchor. Strong Fixed Ops:
- Stabilizes monthly cash flow when front-end volume is inconsistent
- Drives higher Absorption, which improves overall store profitability
- Increases Blue Sky value, making the dealership more attractive when it’s time to sell
- Builds customer retention, keeping buyers in the ecosystem for service, parts, and future vehicle purchases
Hendrick’s message is clear: stores that treat Fixed Ops as a strategic profit center—not just a support function—will outperform in both good and bad markets.
Automotive Retail and Motorsports: A Collaboration That Drives Innovation
Another unique angle in Hendrick’s interview is the collaboration between automotive retail and motorsports. Hendrick Motorsports isn’t just a racing brand; it’s an innovation engine that feeds back into the retail side. That synergy drives better customer experiences, stronger brand loyalty, and new ways to engage shoppers.
For dealers, that’s a powerful reminder: innovation doesn’t always come from new technology alone. It can come from culture, from how you treat people, and from how you connect different parts of your business—retail, service, and even motorsports—to create a cohesive value proposition.
Why Fixed Ops Matters More in 2026
In 2026, dealers are operating in a market defined by:
- Tighter margins on new vehicles
- Shifting consumer demand toward fuel-efficient and value-focused vehicles
- Rising operational costs and labor pressures
- Increased competition from consolidation and digital retailers
In this environment, Fixed Ops is the stabilizer. It’s the department that keeps the store profitable when the front end is soft and the customer is cautious. It’s the reason well-run franchise dealerships remain attractive and command premium valuations.
Rick Hendrick’s interview reinforces what Gordon Wisbach and GW Marketing Services have seen for more than 45 years: dealerships which prioritize Fixed Ops, F&I, and operational discipline are the ones that not only survive but thrive.
What Dealers Should Do Now
If you’re a CMO, dealership owner, or operator, Hendrick’s message is a call to action:
- Review your Fixed Ops performance metrics
Look at service retention, RO velocity, parts penetration, and labor efficiency. Are you tracking what matters? - Treat Fixed Ops as a strategic profit center
Don’t let service become a “back of the house” function. Integrate it into your overall P&L strategy. - Align F&I and Fixed Ops
Strong Fixed Ops supports F&I by keeping customers in the dealership ecosystem. Use service interactions to reinforce F&I value. - Invest in your team and culture
People, culture, and accountability are the foundation. Train your service team, reward performance, and build accountability. - Benchmark against top performers
Compare your absorption ratio, service gross, and retention rates with industry leaders. Where are you lagging?
The Bottom Line
Rick Hendrick’s Full Throttle episode is more than an interview; it’s a roadmap for dealership resilience. The growing importance of fixed operations and service profitability isn’t a trend—it’s a strategic imperative.
For dealers who want to protect margins, increase valuation, and build long-term stability, the message is clear: invest in Fixed Ops, treat it like a profit center, and let it anchor your P&L.
If you’re ready to audit your current business, identify Fixed Ops opportunities, and build a practical roadmap your team can execute, Gordon Wisbach and GW Marketing Services are here to help. We’ve guided hundreds of dealers through successful transitions and strategic positioning, and we’re ready to help you do the same.