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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will be 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 the latest 100,000 mile warranty which means that the independent will get little chance to handle that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep up with the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers generally competed for skilled labor and now have become significantly more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers regarding example health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these competent employees. Being an automotive technician, would you rather improve Audi or Joe’s House?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician actually make $100,000 twelve months with benefits while an unbiased shop owner would require gross over a $1,000,000 every year to make that and have to reimburse their own benefits and social safe practices.
Because the hands down economic realities many independent owners are currently closing their shops and going to be suitable for 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 problems.
Additionally, each time a diagnosis is intended and a part needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding up the repair and also increasing customer support. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee war. 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 techniques.
The manufacturers claim their technical results are proprietary individuals independents claim the information should accumulate 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