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 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 some sort of 100,000 mile warranty so that you can the independent will get little chance to improve that car for one 5-10 years it is owned.
As new car sales margins have gone 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 already been adding other useful benefits such as the loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep plan 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 not worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and may have become significantly aggressive. With fewer conserve entering the auto repair profession and opting instead for careers with regard to health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to work with and retain these competent employees. A great automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 one year with benefits while an independent shop owner would require gross a lot more $1,000,000 every year to make that as well as have to afford their own benefits and social equity.
Because of these 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 repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis is made and a part needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair time and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical data is proprietary everybody is making independents claim the information should build up to anyone that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777