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 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 meaning that the independent will get little chance to operate that car for the first 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 up the difference.
Additionally many dealers such as Porsche and Saab in order 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 an effort to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers generally competed for skilled labor and already have become a great deal more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers like health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to hire and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician may well make $100,000 one year with benefits while an independent shop owner would to be able to gross during a $1,000,000 1 yr to make that and get to obtain their own benefits and social safe practices.
Because of these economic realities many independent owners are currently closing their shops and going to work with 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 injuries.
Additionally, in the event the diagnosis is intended and a fraction needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding increase the repair period and increasing customer care. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777