If you see fewer auto repair shops in your area 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 may 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 kind 100,000 mile warranty meaning that the independent will get little chance to handle that car for site to website 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 inside the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying to keep up with the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have been competed for skilled labor and already have become significantly more aggressive. With fewer folks entering automobile repair profession and opting instead for careers such as health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to work with and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician can make $100,000 a year with benefits while wages shop owner would ought to gross during a $1,000,000 1 yr to make that and have to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners have started closing their shops all night 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 problems.
Additionally, is not diagnosis is intended and a fraction needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding increase the repair time and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee struggle. 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 equipment.
The manufacturers claim that the technical details are proprietary while the independents claim the information should accumulate to anybody that owns or fixes help to make of automobile.
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Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536