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 economic.
The global problem is 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 getting 100,000 mile warranty so that you can the independent will get little chance to operate that car for the most important 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 the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort 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 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 all means being won together with dealers: the dealers constantly competed for skilled labor and already have got become a lot aggressive. With fewer right now entering automobile repair profession and opting instead for careers with regard to health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician actually make $100,000 a year with benefits while an independent shop owner would have to gross over a $1,000,000 one year to make that and get to afford their own benefits and social safe practices.
Because the hands down economic realities many independent owners have started closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis appeared and a portion needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary individuals independents claim the information should be available to anybody that owns or fixes that make 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 23, 2019