If you see fewer auto repair shops towards 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 and 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty so that you can 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 have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot to keep with 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 in order to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have been competed for skilled labor and may have become significantly more aggressive. With fewer right now entering automobile repair profession and opting instead for careers with regard to health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to rent and retain these highly skilled employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 a whole year with benefits while a self-employed shop owner would must gross a lot more $1,000,000 twelve months to make that and have to afford their own benefits and social security.
Because from the economic realities many independent owners are now closing their shops on and on to enhance 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 problems.
Additionally, each time a diagnosis is intended and an area needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding inside the repair time and increasing service delivery. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical facts are proprietary individuals independents claim the information should be around to anyone that owns or fixes create of automobile.
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 24, 2019