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 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 particular person yourself the independent will get little chance to work with 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 along the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying 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 for you to independent repair shop prices.
But it’s as well as 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 may have become significantly more aggressive. With fewer young people entering significantly repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician actually make $100,000 twelve months with benefits while wages shop owner would have to gross over a $1,000,000 1 yr to make that and still have to reimburse their own benefits and social safe practices.
Because in the economic realities many independent owners have started closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis is intended and a portion needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding within the repair and also increasing customer support. Big advantage Cadillac and Bmw.
But it is not just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical details are proprietary in terms of independents claim the information should be for sale to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777