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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 kind 100,000 mile warranty relating to this the independent will get little chance to work on that car for the most important 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort 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 similar to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers constantly competed for skilled labor and already have got become a lot aggressive. With fewer folks entering business repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to utilize and retain these highly skilled employees. The automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a whole year with benefits while an unbiased shop owner would have to gross a lot more $1,000,000 twelve months to make that and still have to afford their own benefits and social protective measures.
Because of these economic realities many independent owners are currently closing their shops all night to work with 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 appeared and a fraction needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding in the repair and also increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical data is proprietary individuals independents claim the information should build up to anyone who owns or fixes help to make 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 23, 2019