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 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer some sort of 100,000 mile warranty which means that the independent will get little chance to operate 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 in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such as the loaner car while repairs are being made. Independents are usually now 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 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 but not just competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers often competed for skilled labor and already have got become significantly more aggressive. With fewer folks entering the auto repair profession and opting instead for careers with regard to health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician may well $100,000 a whole year with benefits while a self-employed shop owner would have to gross during a $1,000,000 a year to make that as well as have to reimburse their own benefits and social safe practices.
Because of this economic realities many independent owners are usually closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis is made and a part of needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding increase the repair time and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. 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 applications.
The manufacturers claim that the technical results are proprietary while the independents claim the information should be around 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 24, 2019