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 along with 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 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 which means that the independent will get little chance to work with that car for one 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 the difference.
Additionally many dealers such as Porsche and Saab in order to 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 an effort to keep on top of the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and now have become even more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to hire and retain these highly skilled employees. The automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 a whole year with benefits while a private shop owner would have to gross during a $1,000,000 one year to make that as well as have to pay for their own benefits and social equity.
Because of this economic realities many independent owners are at this moment closing their shops and going 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 problems.
Additionally, any time a diagnosis is comprised and a part needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding within the repair time and increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical data is proprietary while independents claim the information should be available to anyone that owns or fixes that 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 23, 2019