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 economic.
The global problem is 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 particular person yourself the independent will get little chance to work with 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 seeking to their service departments to make along 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 forced to give courtesy rides to customers in hard work to keep plan 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 similar to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have been competed for skilled labor and may have become a great deal more aggressive. With fewer right now entering automobile 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 around the globe becoming tougher for independents to hire and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician earns $100,000 a whole year with benefits while wages shop owner would require gross a lot more $1,000,000 every year to make that and have absolutely to obtain their own benefits and social protective measures.
Because of this economic realities many independent owners are currently closing their shops and going to enhance 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 crises.
Additionally, any time a diagnosis is made and a fraction needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding in the repair period and increasing service delivery. Big advantage Cadillac and Mercedes.
But it is not 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 results are proprietary individuals independents claim the information should build up to anybody that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
