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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 so that you can the independent will get little chance to handle that car for their early 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 inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep lets start work on 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers often competed for skilled labor and already have got become a great deal more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers like health and technology, fundamental 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. As an automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician may well $100,000 twelve months with benefits while wages shop owner would must gross within a $1,000,000 twelve months to make that and get to pay for their own benefits and social equity.
Because of these economic realities many independent owners are now closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, if a diagnosis is comprised and a part of needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical details are proprietary while independents claim the information should be for sale to anyone who owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777