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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 the latest 100,000 mile warranty relating to this the independent will get little chance to handle 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 in 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 trying to keep plan 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have always competed for skilled labor and will have become significantly more aggressive. With fewer individuals entering significantly repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to work with and retain these competent employees. As an automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 one year with benefits while wages shop owner would require gross over a $1,000,000 a year to make that and still have to afford their own benefits and social safe practices.
Because the hands down economic realities many independent owners have started closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, if a diagnosis is comprised and a portion needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding increase the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just 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 applications.
The manufacturers claim that the technical results are proprietary in terms of independents claim the information should be available to anyone that owns or fixes build of car.
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 21, 2019