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 also 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 at least one 100,000 mile warranty which means that the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins go 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 have 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 trying to keep lets start work on 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 for you to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have been competed for skilled labor and already have become significantly aggressive. With fewer conserve entering business repair profession and opting instead for careers with regard to health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to hire and retain these competent employees. As an automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician can make $100,000 one year with benefits while an independent shop owner would must gross a lot more $1,000,000 every year to make that as well as have to pay for their own benefits and social equity.
Because from the economic realities many independent owners are now closing their shops on and on to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis created from and a portion needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair time and increasing customer support. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical information is proprietary while the independents claim the information should be available to anyone that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777