If you see fewer auto repair shops near 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 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 the latest 100,000 mile warranty so that you can the independent will get little chance to work with 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 in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying 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 comparable to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have always competed for skilled labor and will have become even more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers such as health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to work with and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician actually make $100,000 one year with benefits while an independent shop owner would require gross within the $1,000,000 1 yr to make that as well as have to obtain their own benefits and social safe practices.
Because the hands down economic realities many independent owners are at this moment closing their shops on and on to enhance 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 rrssues.
Additionally, if a diagnosis is comprised and an area needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding within the repair period and increasing customer support. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical information is proprietary everybody is making independents claim the information should be available to anyone who owns or fixes build 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