If you see fewer auto repair shops in your town 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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 the latest 100,000 mile warranty which means that the independent will get little chance to work with that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep with 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 to be able to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers generally competed for skilled labor and already have got become a great deal more aggressive. With fewer right now entering business repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to utilize and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician may well make $100,000 a whole year with benefits while wages shop owner would ought to gross a lot more $1,000,000 1 yr to make that and have to afford their own benefits and social equity.
Because in the economic realities many independent owners have started closing their shops and going to be employed by 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, in the event the diagnosis appeared and a part of needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical information is proprietary while the independents claim the information should be around to anyone who owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777