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 could 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 handle that car for one 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 already been adding other value added benefits such as a 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 for 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 is actually worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have always competed for skilled labor and already have got become a great deal more aggressive. With fewer folks entering automobile repair profession and opting instead for careers with regard to health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to rent and retain these highly skilled employees. Being an automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician can make $100,000 twelve months with benefits while a self-employed shop owner would require gross within the $1,000,000 twelve months to make that as well as have to purchase their own benefits and social basic safety.
Because in the economic realities many independent owners are now closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, is not diagnosis is made and an area needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding increase the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical data is proprietary in terms of independents claim the information should accumulate to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777