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 economic.
The global problem could 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 at least one 100,000 mile warranty particular person yourself the independent will get little chance to handle 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 seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying to keep lets start work on 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 similar to independent repair shop prices.
But it’s as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers often competed for skilled labor and now have become significantly more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers with regard to health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to utilize and retain these highly skilled employees. A great automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician may well $100,000 a year with benefits while an independent shop owner would to be able to gross within the $1,000,000 every year to make that as well as have to purchase their own benefits and social equity.
Because of this economic realities many independent owners are currently closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, is not diagnosis created from and a part of needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding up the repair and also increasing service delivery. Big advantage Cadillac and Rolls royce.
But the goal wasn’t 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 techniques.
The manufacturers claim that their technical information is proprietary in terms of independents claim the information should be around to anyone that owns or fixes create of motor.
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