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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may 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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to improve that car for the first 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 happen to adding other useful benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort 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 comparable to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers constantly competed for skilled labor and already have become significantly more aggressive. With fewer conserve entering effect on repair profession and opting instead for careers like health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to rent and retain these highly skilled employees. As an automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well make $100,000 one year with benefits while a self-employed shop owner would must gross within the $1,000,000 a year to make that and have to reimburse their own benefits and social safe practices.
Because the hands down economic realities many independent owners are now closing their shops and going to enhance 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 health issues.
Additionally, is not diagnosis created from and a part of needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding within the repair period and increasing customer care. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee conflict. 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 tools.
The manufacturers claim their technical data is proprietary everybody is making independents claim the information should be available to anyone who owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777