"I'm new to service, but I know parts," he said.  "I have been able to take my knowledge of parts and transfer them to the service end of the business.  My goal has been to reduce the walls between the two departments so that we can communicate and work well together."

Hernandez, 45, said he has been able to run an efficient service department by trusting his people and relying on the strong reputation his dealership has worked hard to build over four decades. 

   
"In parts, if you can maintain a 20 percent margin on the wholesale level, you'll make money," he said.  "In service, there are a lot more variables.  We're lucky because we have some great techs and service writers who have been here a long time.  They've helped us develop a very loyal customer base that will always bring their cars here."

Hernandez said he has learned a lot about how parts and service departments view each other and interact since he took on the responsibility of running the service department at Mossy Nissan.

"I've gained a different perspective about how service looks at parts," he said.  "There have traditionally been walls between parts and service, and I can now see how they develop over time.  But, I've been able to knock those walls down, I believe, which has led to improved profitability within both departments."

Hernandez said he started his automotive career in 1982 with San Diego Nissan, working his way up through the ranks before becoming the parts manager at Mossy Nissan National City 10 years ago.

"I was a parts driver and then I worked in shipping and receiving," he said. "Then I became a counterperson.  It was a good way to learn the business from top to bottom."

Mossy Nissan carries $850,000 in parts and employs 20 people in its parts department, Hernandez said, including 10 counter people, five drivers, three shipping/receiving clerks and two office personnel.  Last year, the department did $3 million in wholesale and $650,000 in retail, making it the top wholesale performer among the six other Mossy Nissan locations in San Diego County, Hernandez said.

Mossy Nissan's parts numbers have stayed strong, Hernandez said, because the dealership continues to provide the same high level of service while getting more aggressive in asking for customers' wholesale business.

"During tough economic times, you have to change your approach a little, which we have," he said.  "We've become more proactive in serving our shops, and we've also done whatever we can to price-match the parts stores we compete with."

Having multiple Nissan dealerships in the area helps Mossy Nissan get parts that otherwise might have to be ordered from the manufacturer, Hernandez said.

"With six other locations, we're able to fill most orders efficiently," he said.  "If we don't have a particular part, one of the others will.  It offers us access to more than $4 million in parts, so there aren't too many orders we can't fill."

 Hernandez cites customer service and product knowledge as the two main reasons for his parts department's success. 
"All of our counter people have been with us for 15 or more years," he said.  "Because of their experience and knowledge, we're able to take our customers' orders accurately and get them the correct parts quickly.  We're able to reduce their downtime and help them turn vehicles around fast."

Another key to the dealership's success has been the ability to retain its employees, Hernandez said.  "We keep our people," he said.  "We have created an environment around here where they want to stay because we give them flexibility and treat them with respect.   The end result is that they have a sense of pride in their work and want to be the best."

On the service side, Mossy Nissan operates out of a 20,000-square-foot facility featuring 25 bays, Hernandez said. "We're in the process of adding six bays for an express lube center," he said.  "It's going to be a great addition and a big benefit to the dealership.  Now, we can get customers in and out quickly when they need basic service.  We're also going to be able to up sell them other things their vehicle might need, based on the multipoint inspections we'll perform with each express visit."

The service department at Mossy Nissan employs 46 people, including 25 technicians, six service advisers, five re-conditioning personnel, five office personnel, and five porters, he said.

The technicians at Mossy Nissan work in six teams, with the most seasoned or Master Technicians leading each unit, Hernandez said.  The team leaders work with the service writers to meet the dealership's production quotas, driven by commissions and other performance-based compensation, he said. 

"The team concept works very well because it promotes a sense of accomplishment and accountability," he said.  "It also builds a feeling of competition, which is healthy."

Last year, Mossy Nissan's service department did $3.8 million in sales, Hernandez said.  "We're hitting our numbers and it's been on the increase," he said.  "2007 was better than 2006, and we're doing very well so far this year."