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 and also 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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for the most important 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 along the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as a loaner car while repairs are being made. Independents are increasingly being 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 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 may have become significantly aggressive. With fewer right now entering the auto repair profession and opting instead for careers regarding example health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician actually make $100,000 twelve months with benefits while an unbiased shop owner would have to gross over a $1,000,000 one year to make that and have absolutely to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners are currently closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis is made and a part needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding in the repair along with increasing customer support. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical information is proprietary in terms of independents claim the information should build up to anyone that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536