If you see fewer auto repair shops near 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem may be the auto repair and service market has been shrinking in the last ten or fifteen 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 work with that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort to keep up with 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers constantly competed for skilled labor and now have become a great deal more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers like health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 twelve months with benefits while wages shop owner would require gross a lot more $1,000,000 a year to make that and have absolutely to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are currently closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis is made and a fraction needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair along with increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical results are proprietary while independents claim the information should be for sale to anybody that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777