If you see fewer auto repair shops towards you then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will be the auto repair and service market has been shrinking in the last 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a shot to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers generally competed for skilled labor and will have become a lot aggressive. With fewer individuals entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these competent employees. Being an automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 one year with benefits while an unbiased shop owner would to be able to gross a lot more $1,000,000 one year to make that and have to obtain their own benefits and social security.
Because the hands down economic realities many independent owners are now closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is intended and a part needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer care. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical details are proprietary while the independents claim the information should accumulate to anybody that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777