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 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 at least one 100,000 mile warranty particular person yourself the independent will get little chance to improve 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 in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such 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 plan 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 similar to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers generally competed for skilled labor and may have become even more aggressive. With fewer young people entering significantly repair profession and opting instead for careers such as health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician may well make $100,000 a whole year with benefits while wages shop owner would to be able to gross within a $1,000,000 twelve months to make that and have to reimburse their own benefits and social basic safety.
Because the hands down economic realities many independent owners are now closing their shops on and on to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis appeared and a portion needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding in the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical facts are proprietary everybody is making independents claim the information should be for sale to anybody that owns or fixes create 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