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 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 the latest 100,000 mile warranty meaning that the independent will get little chance to handle 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying to keep on top of the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers constantly competed for skilled labor and will have become significantly more aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician earns $100,000 twelve months with benefits while an unbiased shop owner would require gross during a $1,000,000 twelve months to make that and still have to obtain their own benefits and social security.
Because from the economic realities many independent owners are currently closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis is intended and a fraction needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical information is proprietary in terms of independents claim the information should be for sale to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777