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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 kind 100,000 mile warranty relating to this 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 in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful 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 plan the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers often competed for skilled labor and may have become a great deal more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers regarding example health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents you ought to hire and retain these highly skilled employees. Being an automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician can make $100,000 one year with benefits while an independent shop owner would ought to gross within a $1,000,000 one year to make that as well as have to purchase their own benefits and social security.
Because from the economic realities many independent owners are now closing their shops and going to enhance 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, is not diagnosis appeared and a fraction needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical facts are proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777