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 along with 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 at least one 100,000 mile warranty so that you can the independent will get little chance to operate that car for site to website 5-10 years it is owned.
As new car sales margins have gone 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 happen to adding other value added benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in hard work to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for 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 that is worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers generally competed for skilled labor and now have become significantly aggressive. With fewer young people entering significantly repair profession and opting instead for careers such as health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to work with and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 yearly with benefits while a self-employed shop owner would ought to gross a lot more $1,000,000 a year to make that and have to purchase their own benefits and social equity.
Because of these economic realities many independent owners are usually closing their shops all night 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 crises.
Additionally, is not diagnosis is intended and a part of needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding within the repair along with increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical data is proprietary everybody is making independents claim the information should accumulate to anyone who owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777