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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 particular person yourself the independent will get little chance to work with 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 looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added 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 up with the dealers since customers now expect this service.
Furthermore dealers such as 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’s the worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers constantly competed for skilled labor and already have become a lot aggressive. With fewer conserve entering automobile repair profession and opting instead for careers with regard to health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 yearly with benefits while an unbiased shop owner would have to gross within a $1,000,000 a year to make that and get to reimburse their own benefits and social basic safety.
Because of these economic realities many independent owners are usually closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, each time a diagnosis is made and a part of needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding inside the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical results are proprietary individuals independents claim the information should accumulate to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777