If you see fewer auto repair shops in your community 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 economic.
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 the latest 100,000 mile warranty which means that the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in hard work to keep plan the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and will have become significantly more aggressive. With fewer right now entering significantly repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to rent and retain these highly skilled employees. A great automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician can make $100,000 a whole year with benefits while a self-employed shop owner would must gross during a $1,000,000 twelve months to make that and have absolutely to pay for their own benefits and social safe practices.
Because of this economic realities many independent owners are now closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, any time a diagnosis is made and a portion needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding up the repair along with increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not 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 techniques.
The manufacturers claim that the technical facts are proprietary individuals independents claim the information should build up to anyone who owns or fixes that 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