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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 which means that the independent will get little chance to handle that car for one 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 up the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such to be a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort 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 comparable to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers generally competed for skilled labor and may have become significantly aggressive. With fewer folks entering the auto repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to utilize and retain these competent employees. Being an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician may well $100,000 a whole year with benefits while a private shop owner would require gross over a $1,000,000 1 yr to make that and have to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are now closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, any time a diagnosis is comprised and a portion needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding within the repair as well as increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical information is proprietary while independents claim the information should be available to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777