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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 kind 100,000 mile warranty which means that the independent will get little chance to work with 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 seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep plan 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 to be able to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and now have become a great deal more aggressive. With fewer right now entering business repair profession and opting instead for careers such as health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these competent employees. Regarding automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician earns $100,000 twelve months with benefits while an independent shop owner would ought to gross over a $1,000,000 every year to make that and have absolutely to afford their own benefits and social equity.
Because of these economic realities many independent owners are currently closing their shops and going to work with 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 injuries.
Additionally, each time a diagnosis is made and a fraction needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair and also increasing client satisfaction. Big advantage Cadillac and Bmw.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical facts are proprietary while independents claim the information should be for sale to anyone that owns or fixes build of car.
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 21, 2019