If you see fewer auto repair shops in your area 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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 at least one 100,000 mile warranty relating to this the independent will get little chance to work on that car for the most important 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab are adding other value added 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 shot to keep plan 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 in order to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers have been competed for skilled labor and may have become significantly aggressive. With fewer folks entering significantly repair profession and opting instead for careers like health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to work with and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s House?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician earns $100,000 a whole year with benefits while wages shop owner would ought to gross during a $1,000,000 every year to make that as well as have to afford their own benefits and social safe practices.
Because the hands down economic realities many independent owners are at this moment closing their shops and going to work with 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 crises.
Additionally, in the event the diagnosis appeared and a portion needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding inside the repair period and increasing customer care. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee showdown. 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 solutions.
The manufacturers claim that the technical details are proprietary individuals independents claim the information should build up to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777