If you see fewer auto repair shops towards 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 relating to this the independent will get little chance to work on that car for their early 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort to keep lets start work on 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 in order to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have always competed for skilled labor and already have got become significantly aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to utilize and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician earns $100,000 a whole year with benefits while an unbiased shop owner would to be able to gross during a $1,000,000 one year to make that and have absolutely to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners have started closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, is not diagnosis appeared and a fraction needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding increase the repair as well as increasing client satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical data is proprietary individuals independents claim the information should build up to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
https://g.page/excel-auto-repair-sales
Posted on:
August 21, 2019