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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 kind 100,000 mile warranty which means that the independent will get little chance to improve 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such to be a loaner car while repairs are being made. Independents are usually 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 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 that is worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers often competed for skilled labor and will have become a great deal more aggressive. With fewer conserve entering effect on 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 it becoming more difficult for independents to hire and retain these competent employees. A great automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 one year with benefits while an unbiased shop owner would must gross within the $1,000,000 one year to make that and have to purchase their own benefits and social safe practices.
Because the hands down economic realities many independent owners have started closing their shops and going to be suitable for 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, in the event the diagnosis is comprised and a fraction needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer support. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee showdown. 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 tools.
The manufacturers claim that their technical information is proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes help to make of car.
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