If you see fewer auto repair shops in your area 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 will 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 meaning that the independent will get little chance to improve that car for site to website 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 already been adding other useful benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep plan the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and already have got become a lot aggressive. With fewer conserve entering the auto repair profession and opting instead for careers like health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to hire and retain these competent employees. Being an automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician can make $100,000 a year with benefits while wages shop owner would require gross over a $1,000,000 1 yr to make that as well as have to reimburse their own benefits and social equity.
Because from the economic realities many independent owners are usually closing their shops on and on to be employed by 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 crises.
Additionally, any time a diagnosis is intended and a fraction needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding up the repair period and increasing service delivery. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical facts are proprietary while independents claim the information should be available to anyone that owns or fixes that make of motor.
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Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777