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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 some sort of 100,000 mile warranty relating to this the independent will get little chance to handle 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 inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such to be a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in hard work to keep with the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers generally competed for skilled labor and now have become a lot aggressive. With fewer individuals entering the auto repair profession and opting instead for careers like health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to rent and retain these competent employees. A great automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 yearly with benefits while an independent shop owner would must gross over a $1,000,000 1 yr to make that and have to purchase their own benefits and social safe practices.
Because of this economic realities many independent owners are now closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, each time a diagnosis appeared and a part needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair along with increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical facts are proprietary in terms of independents claim the information should accumulate 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