If you see fewer auto repair shops towards 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem may 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 so that you can the independent will get little chance to work with that car for the most important 5-10 years it is owned.
As new car sales margins have gone 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 have been adding other useful benefits such as 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 regarding example 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 naturally worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers often competed for skilled labor and now have become a lot aggressive. With fewer conserve entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents you ought to hire and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 twelve months with benefits while an unbiased shop owner would require gross within a $1,000,000 a year to make that as well as have to afford their own benefits and social basic safety.
Because of this economic realities many independent owners are at this moment closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, in the event the diagnosis is made and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing service delivery. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical data is proprietary while the independents claim the information should build up to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777