If you see fewer auto repair shops in your town 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 some sort of 100,000 mile warranty meaning that the independent will get little chance to improve that car for the first 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such to be a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot to keep on top of 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 but not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers often competed for skilled labor and now have become a great deal more aggressive. With fewer folks entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents you ought to hire and retain these highly skilled employees. The automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 a whole year with benefits while an unbiased shop owner would require gross a lot more $1,000,000 every year to make that and get to obtain their own benefits and social safe practices.
Because of these economic realities many independent owners are currently closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, any time a diagnosis appeared and a fraction needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding up the repair period and increasing customer satisfaction. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical information is proprietary while the independents claim the information should be for sale to anyone who owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777