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 could 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 getting 100,000 mile warranty relating to this the independent will get little chance to operate that car for site to website 5-10 years it is owned.
As new car sales margins go 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 are adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in hard work to keep up with the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers generally competed for skilled labor and now have become even more aggressive. With fewer conserve entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician can make $100,000 a whole year with benefits while an unbiased shop owner would require gross within the $1,000,000 every year to make that as well as have to pay for their own benefits and social equity.
Because of these economic realities many independent owners are usually closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, any time a diagnosis is comprised and a part of needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical data is proprietary while independents claim the information should be around to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777