If you see fewer auto repair shops in your community 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 getting 100,000 mile warranty so that you can the independent will get little chance to work on that car for their early 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 inside 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 think you are forced to give courtesy rides to customers in a feat to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers regarding example health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to work with and retain these competent employees. The automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician may well $100,000 a year with benefits while an unbiased shop owner would have to gross during a $1,000,000 1 yr to make that and get to pay for their own benefits and social security.
Because from the economic realities many independent owners are usually closing their shops on and on to work for 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 problems.
Additionally, in the event the diagnosis is comprised and a part needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding inside the repair as well as increasing customer support. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical details are proprietary in terms of independents claim the information should be around to anyone that owns or fixes help to 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