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 also 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer some sort of 100,000 mile warranty so that you can the independent will get little chance to work with 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 in the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers constantly competed for skilled labor and already have got become significantly aggressive. With fewer conserve entering business repair profession and opting instead for careers such as health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician can make $100,000 one year with benefits while a private shop owner would ought to gross within a $1,000,000 a year to make that and have absolutely to purchase their own benefits and social basic safety.
Because the hands down economic realities many independent owners are currently closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis is made and a fraction needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding within the repair and also increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee showdown. 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 equipment.
The manufacturers claim their technical details are proprietary while the independents claim the information should build up 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