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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may 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 at least one 100,000 mile warranty so that you can the independent will get little chance to work on that car for their early 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 the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep on top of 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers have always competed for skilled labor and already have become significantly more aggressive. With fewer right now entering significantly repair profession and opting instead for careers like health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 yearly with benefits while wages shop owner would to be able to gross during a $1,000,000 every year to make that and have absolutely to reimburse their own benefits and social equity.
Because from the economic realities many independent owners are currently closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis is made and an area needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding inside the repair as well as increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee world war. 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 solutions.
The manufacturers claim their technical facts are proprietary in terms of independents claim the information should accumulate to anyone that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777