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 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty relating to this the independent will get little chance to improve 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep with 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 for you to independent repair shop prices.
But it’s as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have always competed for skilled labor and may have become significantly more aggressive. With fewer folks entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to work with and retain these highly skilled employees. The automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician actually make $100,000 a whole year with benefits while wages shop owner would ought to gross a lot more $1,000,000 every year to make that and get to purchase their own benefits and social basic safety.
Because from the economic realities many independent owners are usually closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis appeared and a part needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding up the repair along with increasing service delivery. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that the technical facts are proprietary in terms of independents claim the information should be for sale to anyone who owns or fixes help to make of motor.
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