If you see fewer auto repair shops near 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 business.
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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to improve that car for site to website 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort to keep lets start work on 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 for you to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have been competed for skilled labor and now have become a lot aggressive. With fewer individuals entering the auto repair profession and opting instead for careers such as health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to rent and retain these competent employees. As an automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician earns $100,000 twelve months with benefits while a private shop owner would ought to gross a lot more $1,000,000 every year to make that and have absolutely to reimburse their own benefits and social security.
Because the hands down economic realities many independent owners are at this moment closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is made and a part of needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding in the repair along with increasing customer support. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical details are proprietary everybody is making independents claim the information should be available to anyone who owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536