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 along with 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 at least one 100,000 mile warranty so that you can the independent will get little chance to handle 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 in order to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab in order to 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 with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers generally competed for skilled labor and will have become a lot aggressive. With fewer folks entering the auto repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to utilize and retain these highly skilled employees. The automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician actually make $100,000 a year with benefits while an unbiased shop owner would have to gross during a $1,000,000 twelve months to make that as well as have to pay for their own benefits and social security.
Because from the economic realities many independent owners have started closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis appeared and a portion needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding inside the repair as well as increasing customer support. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical details are proprietary in terms of independents claim the information should be around to anyone that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777