If you see fewer auto repair shops in your town 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 kind 100,000 mile warranty so that you can the independent will get little chance to improve that car for the most important 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers regarding 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 may also be won together with dealers: the dealers often competed for skilled labor and will have become a great deal more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers with regard to health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to hire and retain these competent employees. A great automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 one year with benefits while a self-employed shop owner would require gross within the $1,000,000 one year to make that and have to reimburse their own benefits and social protective measures.
Because the hands down economic realities many independent owners have started closing their shops and going to be suitable for 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 rrssues.
Additionally, in the event the diagnosis is comprised and a fraction needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair period and increasing customer support. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee showdown. 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 tools.
The manufacturers claim that their technical information is proprietary while the independents claim the information should be for sale to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777