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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 operate that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep up 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 in order 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 have been competed for skilled labor and now have become even more aggressive. With fewer right now entering automobile repair profession and opting instead for careers such as health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to utilize and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician can make $100,000 yearly with benefits while an independent shop owner would must gross within a $1,000,000 one year to make that and have to obtain their own benefits and social protective measures.
Because in the economic realities many independent owners have started closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis is made and a part of needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding increase the repair as well as increasing customer support. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. 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 techniques.
The manufacturers claim that their technical information is proprietary everybody is making independents claim the information should accumulate to anyone that owns or fixes that make of automobile.
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 24, 2019