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 as well as 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty meaning that the independent will get little chance to work with 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 in the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers have always competed for skilled labor and already have got become significantly more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers such as health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to work with and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician can make $100,000 one year with benefits while a self-employed shop owner would ought to gross during a $1,000,000 twelve months to make that as well as have to afford their own benefits and social security.
Because of these economic realities many independent owners are currently closing their shops all night to work with 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 problems.
Additionally, is not diagnosis created from and a portion needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding inside the repair and also increasing customer care. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical details are proprietary while the independents claim the information should be available to anyone who owns or fixes help to make of automobile.
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