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 economic.
The global problem may 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 kind 100,000 mile warranty meaning that the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins have gone 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 have been adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep up with 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 for you to independent repair shop prices.
But it’s not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers often 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 like health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents you ought to hire and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician can make $100,000 a whole year with benefits while a private shop owner would to be able to gross within the $1,000,000 one year to make that and still have to purchase their own benefits and social protective measures.
Because of these economic realities many independent owners have started closing their shops on and on to work for 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 injuries.
Additionally, is not diagnosis created from and a part of needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding increase the repair as well as increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical results are proprietary in terms of 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