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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will be 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 the latest 100,000 mile warranty particular person yourself 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep up 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 as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have been competed for skilled labor and now have become even more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers regarding example health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to rent and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician earns $100,000 twelve months with benefits while a private shop owner would have to gross a lot more $1,000,000 every year to make that and get to reimburse their own benefits and social security.
Because of this economic realities many independent owners are at this moment closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, is not diagnosis is made and an area needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding within the repair along with increasing customer satisfaction. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical details are proprietary everybody is making independents claim the information should accumulate to anyone who owns or fixes that make 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 23, 2019