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 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 at least one 100,000 mile warranty which means that 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 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 in order to adding other value added benefits such to be a loaner car while repairs are being made. Independents 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 for 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 is worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have been competed for skilled labor and now have become significantly more aggressive. With fewer young people entering the auto repair profession and opting instead for careers like health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to rent and retain these highly skilled employees. The automotive technician, would you rather improve Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a year with benefits while a private shop owner would have to gross within a $1,000,000 twelve months to make that and have to afford their own benefits and social security.
Because the hands down economic realities many independent owners are usually closing their shops and going to work for 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 health issues.
Additionally, each time a diagnosis is made and a part of needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding inside the repair time and increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical details are proprietary in terms of independents claim the information should build up to anyone who 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