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 economic.
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 some sort of 100,000 mile warranty so that you can the independent will get little chance to work on 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 being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot 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 to be able to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have always competed for skilled labor and already have become significantly more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to work with and retain these highly skilled employees. Being an automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician can make $100,000 one year with benefits while an unbiased shop owner would to be able to gross over a $1,000,000 twelve months to make that and have to afford their own benefits and social protective measures.
Because in the economic realities many independent owners are currently closing their shops on and on to be suitable 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 rrssues.
Additionally, each time a diagnosis is comprised and a part needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding inside the repair time and increasing service delivery. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee war. 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 solutions.
The manufacturers claim their technical data is proprietary individuals independents claim the information should be for sale to anybody that owns or fixes help to make of motor.
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 24, 2019