If you see fewer auto repair shops in your community 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 meaning that 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 seeking to their service departments to make along 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 usually now being forced to give courtesy rides to customers in a shot to keep 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 in order to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers have always competed for skilled labor and may have become even more aggressive. With fewer right now entering automobile repair profession and opting instead for careers such as health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to hire and retain these highly skilled employees. The automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 twelve months with benefits while a private shop owner would have to gross within a $1,000,000 1 yr to make that and get to purchase their own benefits and social safe practices.
Because in the economic realities many independent owners are at this moment closing their shops all night to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis is made and a fraction needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding increase the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should build up to anybody that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777