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 will 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 at least one 100,000 mile warranty which means that the independent will get little chance to work on that car for the most important 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep 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 similar to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers constantly competed for skilled labor and may have become a great deal more aggressive. With fewer folks entering the auto repair profession and opting instead for careers such as health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to work with and retain these highly skilled employees. The automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician actually make $100,000 one year with benefits while wages shop owner would require gross within the $1,000,000 twelve months to make that and have absolutely to purchase their own benefits and social safe practices.
Because of these economic realities many independent owners are currently closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis is comprised and a part needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding in the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee war. 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 applications.
The manufacturers claim that their technical facts are proprietary while the independents claim the information should be available to anyone who owns or fixes build 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 23, 2019