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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem may 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 getting 100,000 mile warranty so that you can 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 up 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 are now being forced to give courtesy rides to customers in an effort to keep on top of the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers constantly competed for skilled labor and already have become even more aggressive. With fewer conserve entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to work with and retain these competent employees. The automotive technician, would you rather work in Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician may well $100,000 twelve months with benefits while an unbiased shop owner would ought to gross within a $1,000,000 twelve months to make that and have absolutely to reimburse their own benefits and social equity.
Because of these economic realities many independent owners are at this moment closing their shops on and on to be employed by 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 crises.
Additionally, if a diagnosis is made and a part needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding inside the repair period and increasing customer care. Big advantage Cadillac and Bmw.
But it is not just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical data is proprietary while independents claim the information should be for sale to anyone that 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