If you see fewer auto repair shops in your area 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 at least one 100,000 mile warranty so that you can 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 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 the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in hard work 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 to be able to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to rent and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician earns $100,000 one year with benefits while a private shop owner would ought to gross over a $1,000,000 one year to make that and have to obtain their own benefits and social safe practices.
Because of these economic realities many independent owners are at this moment closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, each time a diagnosis is intended and a part needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding up the repair along with increasing service delivery. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst 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 build up to anyone that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777