If you see fewer auto repair shops near 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 which means that the independent will get little chance to handle that car for the most important 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 inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot 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 similar to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have always competed for skilled labor and already have become a great deal more aggressive. With fewer folks entering the auto repair profession and opting instead for careers regarding example health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to utilize and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a year with benefits while an unbiased shop owner would ought to gross a lot more $1,000,000 every year to make that and have absolutely to obtain their own benefits and social basic safety.
Because the hands down economic realities many independent owners are currently closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, if a diagnosis appeared and a portion needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding in the repair and also increasing service delivery. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical information is proprietary while independents claim the information should be around to anyone who owns or fixes build 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 21, 2019