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 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 getting 100,000 mile warranty which means that the independent will get little chance to work on that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep plan the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have been competed for skilled labor and already have got become significantly more aggressive. With fewer right now entering the auto repair profession and opting instead for careers regarding example health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these highly skilled employees. The automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician can make $100,000 a whole year with benefits while a private shop owner would require gross within a $1,000,000 a year to make that and still have to reimburse their own benefits and social security.
Because from the economic realities many independent owners are usually closing their shops on and on 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 injuries.
Additionally, each time a diagnosis appeared and a part of needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding within the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical data is proprietary individuals independents claim the information should be around to anyone who owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777