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 and also 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty meaning that the independent will get little chance to operate that car for their early 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep with 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 may also be won by the dealers: the dealers have always competed for skilled labor and may have become significantly aggressive. With fewer folks entering effect on repair profession and opting instead for careers regarding example health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to rent and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician earns $100,000 twelve months with benefits while an independent shop owner would require gross over a $1,000,000 twelve months to make that as well as have to purchase their own benefits and social security.
Because of these economic realities many independent owners are at this moment closing their shops and going to be employed by 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 intended and a fraction needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical facts are proprietary individuals independents claim the information should be available to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777