If you see fewer auto repair shops in your community 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 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 at least one 100,000 mile warranty so that you can the independent will get little chance to work on that car for their early 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 the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat 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 not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers often competed for skilled labor and now have become even more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these highly skilled employees. As an automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 one year with benefits while a self-employed shop owner would have to gross within a $1,000,000 1 yr to make that and get to obtain their own benefits and social equity.
Because the hands down economic realities many independent owners are now closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis is intended and a part of needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding increase the repair as well as increasing client satisfaction. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical results are proprietary while independents claim the information should be available to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777