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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could 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 kind 100,000 mile warranty meaning that the independent will get little chance to operate 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 along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot 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 similar to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers have been competed for skilled labor and already have got become significantly more aggressive. With fewer young people entering significantly repair profession and opting instead for careers regarding example health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 a year with benefits while wages shop owner would must gross within the $1,000,000 every year to make that and have absolutely to reimburse their own benefits and social equity.
Because of this economic realities many independent owners are at this moment closing their shops all night 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 problems.
Additionally, is not diagnosis created from and a portion needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding up the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it’s not only 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 applications.
The manufacturers claim that the technical facts are proprietary in terms of independents claim the information should be around to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777