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 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 10 or 15 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 relating to this the independent will get little chance to work with that car for the first 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 in the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in hard work to keep on top of the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers generally competed for skilled labor and now have become a lot aggressive. With fewer young people entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these competent employees. Being an automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 yearly with benefits while an independent shop owner would require gross during a $1,000,000 1 yr to make that and get to reimburse their own benefits and social protective measures.
Because of these economic realities many independent owners are now closing their shops on and on to be suitable for 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 injuries.
Additionally, each time a diagnosis is intended and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding inside the repair and also increasing customer care. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical facts are proprietary while the independents claim the information should accumulate to anyone that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777