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 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 kind 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 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 are usually now being forced to give courtesy rides to customers in a feat to keep plan the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers have been competed for skilled labor and may have become a lot aggressive. With fewer folks entering automobile repair profession and opting instead for careers regarding example health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to hire and retain these competent employees. A great automotive technician, would you rather improve Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a whole year with benefits while an unbiased shop owner would require gross within a $1,000,000 1 yr to make that and get to pay for their own benefits and social basic safety.
Because the hands down economic realities many independent owners are usually closing their shops on and on to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, each time a diagnosis is intended and a part of needs replacing the dealer will buy it in stock, not only verifying the identification but greatly speeding within the repair along with increasing service delivery. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical information is proprietary everybody is making independents claim the information should be for sale to anyone who owns or fixes build 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 24, 2019