If you see fewer auto repair shops in your community 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 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 the latest 100,000 mile warranty which means that the independent will get little chance to improve that car for site to website 5-10 years it is owned.
As new car sales margins have gone 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 useful benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a shot to keep on top of 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 in order 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 together with dealers: the dealers have been competed for skilled labor and may have become a great deal more aggressive. With fewer young people entering business repair profession and opting instead for careers such as health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to work with and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician may well $100,000 a whole year with benefits while an independent shop owner would to be able to gross during a $1,000,000 one year to make that and have absolutely to obtain their own benefits and social security.
Because in the economic realities many independent owners have started closing their shops all night to work with 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 health issues.
Additionally, each time a diagnosis created from and a fraction needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding up the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not just 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 equipment.
The manufacturers claim that the technical information is proprietary in terms of independents claim the information should be available to anyone that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777