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 and 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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to operate 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 seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot 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 but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers often competed for skilled labor and already have become significantly more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers such as health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to work with and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 a year with benefits while an unbiased shop owner would require gross over a $1,000,000 twelve months to make that and have absolutely to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners are at this moment closing their shops on and on 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, is not diagnosis is made and a fraction needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair time and increasing service delivery. Big advantage Cadillac and Bmw.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should accumulate to anyone who owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777