If you see fewer auto repair shops towards 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 economic.
The global problem will 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 some sort of 100,000 mile warranty relating to this the independent will get little chance to handle that car for the most important 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep on top of 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 similar to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers often competed for skilled labor and may have become significantly more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to work with and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician actually make $100,000 one year with benefits while an independent shop owner would to be able to gross a lot more $1,000,000 a year to make that and have absolutely to obtain their own benefits and social safe practices.
Because of these economic realities many independent owners are at this moment closing their shops all night to work with 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 comprised and a fraction needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding inside the repair as well as increasing customer support. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical information is proprietary in terms of independents claim the information should be available to anyone who owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777