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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may 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 so that you can the independent will get little chance to work with 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep plan the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have been competed for skilled labor and will have become significantly aggressive. With fewer folks entering effect on repair profession and opting instead for careers regarding example health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to rent and retain these competent employees. As an automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ An excellent end dealer technician earns $100,000 twelve months with benefits while an independent shop owner would require gross within the $1,000,000 1 yr to make that and still have to obtain their own benefits and social security.
Because from the economic realities many independent owners have started closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, is not diagnosis is intended and an area needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding within the repair and also increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical data is proprietary individuals independents claim the information should be for sale to anyone that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777